Fremont City Council Meeting: 04/07/26 07:00 PM
3300 Capitol Avenue Div/Dept: Housing
Fremont, CA 94538 Category: Affordable Housing
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5624) DOC ID: 5624
Updated: 4/2/2026 2:54 PM by Dina Lewis Page 1
BOND ISSUANCE FOR CRP ARBOR VIEW APARTMENTS, LP. - Public Hearing (Published Notice) in Accordance with the Tax Equity and Fiscal Responsibility Act (TEFRA) to Consider the issuance of Tax-Exempt Bonds by California Municipal Finance Authority (CMFA) for CRP Arbor View Apartments LP. (Arbor View Apartments)
Contact Persons:
Name: Lucia Hughes David Persselin
Title: Housing Manager Finance Director
Div/Dept: Housing Finance Department
Phone: 510-494-4506 510-494-4631
E-Mail: [email protected] [email protected]
Executive Summary: The California Municipal Finance Authority (CMFA), a joint exercise of powers authority of which the City of Fremont is a member, has been asked by CRP Affordable Housing & Community Development to serve as the conduit issuer of tax -exempt bonds for the Arbor View Apartments affordable housing project (the “Project”) in the City of Fremont. CMFA may not approve the bond financing unless and until the City Council approves the bond issuance after conducting a public hearing (referred to as a “TEFRA hearing”).
The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) mandates a public accountability procedure involving the legislative body of a local agency in which a proposed project to be funded with tax -exempt bonds is located. The TEFRA hearing is intended to provide members of the community with an opportunity to speak on behalf of or against the proposed project. Once the TEFRA hearing has been conducted, the City Council is asked to adopt a resolution approving the issuance of tax-exempt bonds for the project.
The bonds will be issued as limited obligations of CMFA, and the City will have no liability with respect to the bonds or any role to play in the bond issuance other than the TEFRA hearing.
Staff recommends that the City Council conduct a public hearing in accordance with the Tax Equity and Fiscal Responsibility Act and adopt a resolution approving the issuance of tax-exempt bonds for the Project.
BACKGROUND: CMFA has been asked by CRP Arbor View Apartments L.P. (such limited partnership or other ownership entity created by Central Valley Coalition for Affordable Housing, a California nonprofit public benefit corporation, or CRP Arbor View Apartments AGP LLC, a California limited liability company, its general partners, or by another affiliate) (the “Borrower”), to serve as the conduit issuer of tax -exempt revenue bonds in an aggregate principal amount not -to-exceed $25,000,000 (together with a like amount of refunding bonds) (the “Bonds”) for the Project in the City of Fremont. CMFA may not approve the bond financing unless , and until the City Council approves the bond issuance after conducting a TEFRA hearing. The proceeds of the Bonds will be used to finance and refinance the acquisition, construction, development and equipping of a 67 -unit affordable Council Staff Report (ID # 5624) Meeting of April 7, 2026 Updated: 4/2/2026 2:54 PM by Dina Lewis Page 2
rental project to be owned and operated by the Borrower and located at 41868 Osgood Road, Fremont, CA.
DISCUSSION/ANALYSIS: The founders of CRP have owned, operated, developed, and managed over 2,500 rent -restricted units and have experience providing housing to at -risk, special needs, seniors, and other vulnerable populations. CRP has partnered with non -profit, government, and community organizations to support individuals and families in need. CRP is a full -service, vertically integrated real estate firm with experience in multi -family acquisition / rehabilitation, ground-up development and property management.
CRP has built affordable housing developments in both Northern and Southern California; Arbor View Apartments is the first development to be built in Fremont, CA.
Arbor View Apartments is a 100% affordable, 67 -unit new construction development located in the City of Fremont. The project will feature a seven -story, elevator -served building, consisting of five stories of Type IIIA (wood) construction over a two -story Type IA (concrete) podium. Upon completion, the development will provide housing for families earning between 20% and 50% of the Area Median Income (AMI). There will be one unrestricted manager’s unit. Of the 67 units, 17 will be designated for veterans experiencing homelessness. The proposed unit mix includes 19 one-bedroom units, 27 two-bedroom units, and 21 three-bedroom units, with one unit reserved for the on-site property manager.
Amenities will include an outdoor recreational area, laundry rooms, children’s play area, and community space. A Resident Services Coordinator (1.0 FTE) will provide services coordination to all residents and administer ongoing programming pertinent to the site, including adult educational and skills building classes, including financial education, computer literacy, ESL and/or art classes.
Affordability: As detailed below, all rents will be reduced to an affordable level for extremely low- and very low -income residents. The project is 100% affordable, with a mix of 1-, 2- and 3-Bedroom apartments, and restricted rents for a 55-year term. • 17% (11 Units) restricted to households earning 20% or less of AMI • 14% (9 Units) restricted to households earning 30% or less of AMI • 25 % (17 Units) restricted to households earning 40% or less of AMI • 43 % (29 Units) restricted to households earning 50% or less of AMI • 1 on-site manager’s unit
TEFRA Hearing: TEFRA mandates a public accountability procedure involving the legislative body of a local agency in which a proposed project to be funded with tax -exempt bonds is located. The TEFRA hearing is intended to provide members of the community with an opportunity to speak on behalf of or against the proposed project. Notice of the public hearing must be published in a newspaper of general circulation at least seven days prior to the date on which it is scheduled. To comply with federal tax laws, as well as with CMFA policy, once the TEFRA hearing is conducted, the City Council is asked to adopt a resolution approving the issuance of tax-exempt bonds for the project.
Project Financing: The costs of the project total approximately $61 Million. A large part of the project cost is proposed to be financed through multi -family housing revenue bonds issued by CMFA, with Low Income Housing Tax Credits as another principal funding source.
On February 2, 2023, the California Housing and Community Development Department awarded the project $12.35 Million of Multifamily Housing Program (MHP) and $3.50 Million Council Staff Report (ID # 5624) Meeting of April 7, 2026 Updated: 4/2/2026 2:54 PM by Dina Lewis Page 3
of Veterans Housing and Homelessness Prevention (VHHP) Program funding; these awards represent permanent financing sources that will be funded at permanent loan conversion and are therefore not reflected in the summary below.
Furthermore, on March 15, 2024, the same agency awarded $3.50 Million of Infill Infrastructure Grant (IIG) Program funds which are available as a construction period source of funds. The City of Fremont has no funding in the project.
A summary of the estimated construction period sources and uses of funds for the project is presented below.
Sources of Funds: Uses of Funds:
Tax-Exempt Bond Proceeds: $ 17,446,782 Land Acquisition: $ 2,500,000 Taxable Bond Proceeds: $ 23,479,924 New Construction: $ 36,524,534 Federal LIH Tax Credit Equity: $ 6,066,102 Architecture & Engineering: $ 2,120,000 State LIH Tax Credit Equity: $ 2,914,500 Legal & Professional: $ 325,000 IIG: $ 3,500,000 Construction Period Expenses: $4,959,582 Deferred Sources: $ 7,085,022 Demolition Costs: $ 100,000 Reserves and Misc.: $ 1,965,851
Contingency (Hard & Soft): $ 2,333,198
Impact Fees & Permits: $ 2,345,000
Developer Fee: $ 7,242,427
Costs of Issuance: $ 76,738
Total Sources: $ 60,492,330 Total Uses: $ 60,492,330
FISCAL IMPACT : The Bonds to be issued by CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Fremont, it is expected that that a portion of the issuance fee attributable to the City will be granted by CMFA to the General Fund of the City. Such grant may be used for any lawful purpose of the City. The Borrower will be the beneficiary of the CMFA’s charitable donation through a 25% reduction in issuance fees.
ENVIRONMENTAL REVIEW: The Arbor View housing development was found to be exempt from the requirements of the California Environmental Quality Act (CEQA) per, without limitation, CEQA Guidelines Section 15332 (Infill Development Projects) when the project was originally entitled on November 14, 2022. Additional environmental review under CEQA is not applicable pursuant to CEQA Guidelines Section 15061(b)(3) (Review for Exemption) and/ or 15378(b)(2), (4) and/or (5), each as a separate and independent basis.
The action is a governmental fiscal or administrative action which will have no potential to adversely affect the environment, directly or indirectly.
Council Staff Report (ID # 5624) Meeting of April 7, 2026 Updated: 4/2/2026 2:54 PM by Dina Lewis Page 4
ATTACHMENTS:
• Draft Resolution- TEFRA Arbor View
RECOMMENDATION:
1. Hold a public hearing in accordance with the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA); and,
2. Adopt a Resolution approving the issuance of Multifamily Housing Revenue Bonds by the California Municipal Finance Authority for the purpose of financing an affordable housing project in the City of Fremont to be developed by CRP Affordable Housing & Community Development (“CRP”) and making findings of CEQA exemption.