Tax Equity and Fiscal Responsibility Act (“TEFRA”)
Public Hearing related to Belmont Family Apartments Presented by: Azalea Renfield, Economic Development and Housing Manager September 12, 2023
What is TEFRA and Why a Public Hearing?
September 12, 2023
TEFRA Hearing – Belmont Family Apartments (803 Belmont Ave) 2 What is TEFRA?
Tax Equity and Fiscal Responsibility Act (1982)
Why a Public Hearing?
TEFRA hearing is an IRS requirement for any non-profit borrower seeking tax-exempt bonds through a conduit issuer, such as CMFA and/or CSCDA.
The hearing is held to allow members of the public to comment, contest, oppose, or support the use of tax-exempt bonds for a non-profit borrower that is providing a public benefit.
The Project-Public Benefit
Developer: ROEM Corporation
803 Belmont Avenue (1.5-acre) property consists of a combination of vacant land and the Bel-Mateo Motel. 125 Affordable Residential Apartments, subterranean parking ancillary space (e.g., community room, gym and office) and open space.
Residential unit mix includes:
52 One-bedroom units
40 Two-bedroom units
33 Three-bedroom units
Development Project Entitlements approved in May 2022; construction permits filed in September 2023; anticipated construction start in Spring 2024.
September 12, 2023
TEFRA Hearing – Belmont Family Apartments (803 Belmont Ave) 3 Roles and Responsibilities
Borrower/Developer:
Belmont Family Apartments & ROEM Corporation
Applied for $85,000,000, of tax-exempt revenue bonds.
Proceeds will be used to finance or refinance the costs of the acquisition, development, construction and development of a multifamily rental housing project located at 803 Belmont Avenue, Belmont, California (the "Project") operated by Belmont Family Apartments.
Bond Issuer:
California Statewide Communities Development Authority (CSCDA) Joint Powers Authority
Sole purpose is to provide California’s local governments with an effective tool for the timely financing of community-based public benefit projects.
September 12, 2023
TEFRA Hearing – Belmont Family Apartments (803 Belmont Ave) 4 City of Belmont’s Role & Responsibility
Must hold a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing and approve the bonds for state and federal tax law in order for the obligation to qualify as tax-exempt bonds Proposed bonds are not an obligation of the City
City will have no financial, legal, or administrative obligations for the debt September 12, 2023
TEFRA Hearing – Belmont Family Apartments (803 Belmont Ave) 5 Staff Recommendation
Conduct the public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986.
Adopt a resolution approving the issuance of revenue bonds by the California Statewide Communities Development Authority (CSCDA) for multifamily housing at the Belmont Family Apartments (803 Belmont Avenue).
September 12, June 26, 2023
TEFRA Hearing – Belmont Family Apartments (803 Belmont Ave) 6 April 25, 2023
Belmont 2025 and Beyond
7 THANK YOU
WWW.BELMONT.GOV