Empower individuals & families ● Build community resilience ● Promote housing opportunities ● Enhance quality of life
HOUSING &
HOMELESS SERVICES
Item 7.1
Teresina Apts TEFRA Bond Hearing
HOUSING &
HOMELESS
SERVICES
Teresina Apartments
• 1250 Santa Cora Avenue (E Palomar & La Media)
• Built 2000
• Mixed-income project
• 440 units, 88 affordable to Very Low Income
households
• Purchase pending by Nuveen Global Investments
• 2006 City regulatory agreement to remain in place
HOUSING &
HOMELESS
SERVICES
Tax–Exempt Bonds
• NOT a City subsidy; no City liability
• Low-interest loans repaid with rental income
• Debt financing tool for affordable housing
• Investors are not taxed on interest income
• Regulated through Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
HOUSING &
HOMELESS
SERVICES
Conduit Bond Issuers
Housing Authority Outside Issuers
Default bond issuer for projects in Chula Vista (per
HA Resolution 2024-004)
HA administers issuance, ongoing compliance
Housing Authority collects issuance, compliance
fees
Outside bond counsel, finance consultant heavily
involved
Outside issuer collects fees
Recycled bonds common reason for use of outside
issuers
Outside issuers (CMFA, CSCDA, CalHFA) allowed on
case-by-case basis
Outside issuer administers all oversight functions
HOUSING &
HOMELESS
SERVICES
TEFRA
• Hearing must be held, with opportunity for
public comment
• $100,000,000 maximum bond amount
• Approximately $10MM to be spent on
rehabilitation
• California Municipal Finance Authority
(CMFA) as outside issuer
• Chula Vista Housing Authority does not
have capacity for recycled bonds
HOUSING &
HOMELESS
SERVICES
Recommendation
Approve a plan of finance for the
issuance of tax-exempt bonds for
Teresina Apartments, located at
1250 Santa Cora Avenue