RESOLUTION NO. ________
A RESOLUTION OF THE CUPERTINO CITY COUNCIL
APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF A JOINT
EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY AND APPROVING A PLAN OF
FINANCE FOR THE ISSUANCE OF REVENUE BONDS BY THE
AUTHORITY TO FINANCE AND REFINANCE A QUALIFIED
RESIDENTIAL RENTAL PROJECT FOR THE BENEFIT OF EDEN HOUSING, INC. OR A LIMITED PARTNERSHIP OR OTHER OWNERSHIP ENTITY TO
BE FORMED BY IT, AND CERTAIN OTHER MATTERS RELATING
THERETO
WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”), certain public agencies (the “Members”) have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”) in order to form the California Municipal Finance Authority (the “Authority”), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, the City of Cupertino (the “City”), has determined that it is in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefor by the Authority; and
WHEREAS, there is now before this City Council (the “City Council”) the form of the Agreement; and
WHEREAS, the Agreement has been filed with the City, and the members of the City Council, with the assistance of its staff, have reviewed said document; and WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing the construction or rehabilitation of capital projects; and
WHEREAS, Eden Housing, Inc., a California nonprofit public benefit corporation (the “Developer”), on behalf of a limited partnership or another ownership entity Resolution No. __________________
to be formed by the Developer or an affiliate of the Developer (such limited partnership or other ownership entity being referred to herein as the “Borrower”), has requested that the Authority undertake a plan of finance for the issuance of revenue bonds in the maximum principal amount not to exceed $135,000,000 outstanding (the “Bonds”), to finance and refinance (1) the costs of the acquisition, construction, improvement and equipping of a 234-unit affordable rental housing facility (the “Project”) to be located at 10123 North Wolfe Road, north of Vallco Parkway, on a portion of the site of the former Vallco Mall within the City and to be owned and operated by the Borrower; and (2) pay certain expenses in connection with the issuance of the Bonds; and
WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), requires that an “applicable elected representative” of a governmental unit, the geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of the Bonds, hold a public hearing on the plan of finance for the Project, including the issuance of the Bonds, and approve such plan of finance following such hearing; and
WHEREAS, the Authority has determined that the City Council is an “applicable elected representative” for purposes of holding such hearing; and WHEREAS, the Authority has requested that the City Council approve the plan of finance for the Project, including the issuance of the Bonds by the Authority, in order to satisfy the public approval requirement of Section 147(f) of the Code and, the requirements of Section 4 of the Agreement; and
WHEREAS, notice of such public hearing has been duly given as required by the Code, and this City Council has heretofore held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the plan of finance for the Project and the Authority’s issuance of the Bonds; and WHEREAS, it is in the public interest and for the public benefit that the City Council approve the plan of finance for the Project, including the issuance of the Bonds by the Authority, for the aforesaid purposes;
NOW, THEREFORE, BE IT RESOLVED by the City Council as follows:
Section 1. The foregoing recitals are true and correct.
Resolution No. __________________
Section 2. The Agreement is hereby approved and the Mayor, City Manager or the designee thereof is hereby authorized and directed to execute said document, and the City Clerk or such Clerk’s designee is hereby authorized and directed to attest thereto.
Section 3. The City Council hereby approves the plan of finance for the issuance of the Bonds by the Authority, to finance and refinance the Project. It is the purpose and intent of the City Council that this resolution constitute approval of the plan of finance for the Project for the issuance of the Bonds, (a) by the “applicable elected representative” of a governmental unit having jurisdiction over the area in which the Project is to be located in accordance with Section 147(f) of the Code and (b) by the City Council in accordance with Section 4 of the Agreement.
Section 4. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.
Section 5. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.
Section 6. The executing officers(s), the Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized.
Section 7. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel:
Ronald E. Lee, Esq.
Jones Hall LLP
Resolution No. __________________
4 West 4th Avenue, Suite 406
San Mateo, CA 94402
Section 8. This resolution shall take effect immediately upon its passage.
BE IT FURTHER RESOLVED that this Resolution is not a project under the requirements of the California Environmental Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical change in the environment. In the event that this Resolution is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility that the action approved may have a significant effect on the environment. CEQA applies only to actions which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the proposed action, executing a joint exercise of powers agreement to issue revenue bonds, would have no or only a de minimis effect on the environment as an administrative government fiscal activity that does not authorize a physical change in the environment. The foregoing determination is made by the City Council in its independent judgment.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6
th day of October, 2026, by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
___________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
Resolution No. __________________
ATTEST:
_____________
Lauren Sapudar, City Clerk
________________________
Date