ADMINISTRATIVE REPORT
MEETING DATE: July 15, 2026 AGENDA CATEGORY: Consent Calendar Public Hearings TO: Honorable Mayor and City Council
FROM: Phillip Burns, Development Services Director
DATE: June 22, 2026
SUBJECT: Public Hearing Tax Equity and Fiscal Responsibility Act on behalf of the Housing Authority of the County of Kern (Ward 2)
1. Conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986 to receive comments relating to the plan of finance for the issuance by the Housing Authority of Kern (Housing Authority) of Multifamily Housing Revenue Bonds in the amount not to exceed $5,500,000 of the Authority’s Revenue Bonds (Bonds) for the purpose of financing rental housing projects.
2. Adopt Resolution approving the plan of finance for the issuance by the Housing Authority of Multifamily Housing Revenue Bonds in an amount not to exceed $5,500,000 for the acquisition and rehabilitation of the project known as Baker Street Village RAD, a 37-unit affordable housing complex located at 1015 Baker Street in Bakersfield California and certain other matters relating thereto.
3. Indemnification Agreement between the City of Bakersfield and the Housing Authority of the County of Kern.
RECOMMENDATION:
Staff recommends that the City Council conduct a public hearing, adopt a Tax Equity and Fiscal Responsibility Act (TEFRA) Resolution and approve the indemnification agreement.
BACKGROUND:
The City of Bakersfield (City) has received a request from the Housing Authority to conduct a public hearing, as required by the Internal Revenue Code, in order to issue, pursuant to a plan of finance, one or more series of its tax-exempt bonds, notes or other evidence of indebtedness in an amount not to exceed $5,500,000 (the “Bonds”) for the benefit of the Borrower pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State (commencing with Section 6500) (the “Act”), the proceeds of which will be used to provide a loan to finance the acquisition and rehabilitation of Baker Street Village RAD (the “Project”) located at 1015 Baker Street. This project is restricted to households earning between 30% and 80% of Area Median Income (AMI).
The Bonds will be tax-exempt private activity bonds for the purposes of the Internal Revenue Code and as such, require the approval of the elected body of the governmental entity having jurisdiction over the location where the project to be financed is located. The City will not be under any obligation to repay the bond indebtedness.
For the Housing Authority to issue such Bonds, the City must: 1) conduct a public hearing allowing members of the public to comment on the proposed Project, and 2) approve the Housing Authority's issuance of Bonds via Resolution. Although the Housing Authority (not the City) will be the issuer of the Bonds for the Project, the financing cannot proceed without the City approving the issuance of the Bonds.
The Housing Authority will issue the Bonds for the benefit of the Project. No financial obligations are placed on the City for project financing costs or repayment of the Bonds.
FISCAL IMPACT:
There is no financial impact on the City of Bakersfield. The tax-exempt revenue bonds are payable solely out of the revenues derived by the Housing Authority from the applicable Project. No financial obligations are placed on the City for project financing costs or debt repayment.
COUNCIL GOAL:
Economic Opportunity for All
Community Character & Quality of Life
ATTACHMENTS:
1. Resolution
2. Indemnification Agreement