Empower individuals & families ● Build community resilience ● Promote housing opportunities ● Enhance quality of life
HOUSING &
HOMELESS SERVICES
Item 7.1
Seniors on Broadway TEFRA
HOUSING &
HOMELESS
SERVICES
Seniors on Broadway
• Built 2007
• MAAC Project
• 845 Broadway
• 41 1BR Senior units
HOUSING &
HOMELESS
SERVICES
Rehabilitation
• Accessibility upgrades
• Roof repair
• Plumbing, windows
• Refinancing
• Purchase of land from
school district
HOUSING &
HOMELESS
SERVICES
Tax Exempt Bonds
• Paired with 4% low income housing tax credits
• Interest income is tax-free to bondholder
• Due to favorable tax treatment, bonds command
lower interest rates
• Lower interest rates reduce financing costs
• Bonds repaid through rental income
• Regulated by Tax Equity and Fiscal Responsibility
Act of 1986, as amended (TEFRA)
HOUSING &
HOMELESS
SERVICES
TEFRA Hearing
• Hearing must be held, with opportunity
for public comment
• Originally held on August 13, 2024;
expires after 1 year
• California Municipal Finance Authority
(CMFA) as outside issuer
• Will use recycled bonds; Chula Vista
Housing Authority does not have
capacity
• No City/CVHA obligation or financial
liability associated with bond issuance
HOUSING &
HOMELESS
SERVICES
Recommendation
Approve a plan of finance, including the issuance of
tax-exempt bonds, for Seniors on Broadway