City Council
August 18, 2026
TEFRA Tax Exempt Multifamily Housing Revenue BondsMagnolia Ridge 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
Governing body (City Council) is not required to approve issuance of bonds Creates no financial obligation or liability for the City 2 California Municipal Finance Authority(CMFA)
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 Magnolia Ridge- TEFRA Financing
4 Augusta Communities LLC
Acquisition and preservation of Magnolia Ridge Mobile Home Park 2616 Orangethorpe Avenue
Conversion from market rate to income restricted housing 10 units at or below 50% of Area Median Income
22 units at or below 80% of Area Median Income
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
5 Recommended Action
Adopt or oppose the TEFRA Resolution authorizing CMFA to issue tax-exempt conduit bonds not to exceed $15,705,000 million for the acquisition and preservation of Magnolia Ridge. 6 City Council
August 18, 2026
TEFRA Tax Exempt Multifamily Housing Revenue BondsMagnolia Ridge 7