City Council
July 21, 2026
TEFRA Tax Exempt Multifamily Housing Revenue BondsUCA and UCE Apartments 1 Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) TEFRA
Federal law requiring a public hearing before tax exempt bonds can be issued Ensures the public hearing
Requires approval by elected governing body
Creates no financial obligation or liability for the City. 2 California Statewide Communities Development Authority (CSCDA) A Joint Powers Authority (JPA) that issues tax exempt bonds Provides financing for affordable housing
Serves as a conduit bond issuer
The developer, not the City, is responsible for repaying the bonds. 3 Project Overview UCE and UCA Apartment Homes - TEFRA Financing 4 Foothill Affordable Housing Foundation
Acquisition and preservation of two multifamily communities adjacent to CSUF UCE : 147 units 600 Langsdorf Drive
UCA: 248 units 2404 Nutwood Avenue
Total: 395 existing units preserved as affordable housing CSCDA 501(C)(3) tax exempt conduit bond financing.
Affordability and Preservation Plan
5 55-year regulatory agreement
Conversion from market rate to income restricted housing 40% of units 60% AMI
60% of units 80% AMI
Conversion of 395 market rate units to 100% restricted affordable housing units.
Property Tax and TEFRA Context
TEFRA approval does not create a tax exemption
No change to assessed value or tax roll
Federal procedural requirement only
Any exemption (e.g., Welfare Exemption) determined by County Assessor City has no role in tax exemption determinations.
6 Project Summary
Preserves 395 existing apartment homes as affordable housing Establishes a 55-year affordability covenant with income restrictions City limited to satisfying the federal TEFRA approval requirement City does not approve the development or create any financial obligation No impact to the City’s general fund, credit or assets
TEFRA does not grant a property tax exemption
Community benefit – expand multifamily housing and supports Housing Element. 7 Recommended Action
Adopt the TEFRA Resolution authorizing CSCDA to issue tax-exempt conduit bonds not to exceed $180 million for the acquisition and preservation of UCE and UCA Apartment Homes 8