CITY OF HAWAIIAN GARDENS
CITY COUNCIL
STAFF REPORT
Agenda Item #C1
DATE: November 12, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Ernesto Marquez, City Manager
BY: Elise McCaleb, Community Development Director
California Municipal Finance Authority
SUBJECT: MEMBERSHIP TO CALIFORNIA MUNICIPAL FINANCE AUTHORITY ______________________________________________________________________ RECOMMENDATION:
Adopt Resolution number 033-2025, entitled:
A RESOLUTION OF THE CITY OF HAWAIIAN GARDENS, CALIFORNIA,
APPROVING, AUTHORIZING, AN DIRECTING EXECUTION OF A JOINT
EXERCISE OF POWERS AGREEMENT WITH THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY
SUMMARY
The Joint Powers Authority of the California Municipal Finance Authority (CMFA) is considering the award of a grant to a developer who will convert market-rate housing units into affordable units. The developer is proposing to convert the housing units at the Hawaiian Terrace Senior Apartments into affordable units at up to 80% of the LA County Adjusted Median Income (AMI).
BACKGROUND
The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural, and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities have become members of CMFA.
The CMFA assists local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financing.
Agenda Item #C1
November 12, 2025
The CMFA has been asked to award a grant to a developer who will convert the Hawaiian Terrace Senior Apartments market-rate units into affordable housing units. The CMFA will also potentially be requested to be the issuer of tax-exempt financing for another affordable housing project within the City. Becoming a member of CMFA will help Hawaiian Gardens promote economic, cultural, and community development activities in the City, including the financing of projects by the CMFA.
EXECUTION OF THE JOINT EXERCISE OF POWERS AGREEMENT:
In order for the CMFA to have the authority to serve as the issuer of the bonds for a project, it is necessary for the City of Hawaiian Gardens to become a member of the CMFA. Attached to this report is a copy of the Joint Exercise of Powers Agreement to be executed by a designated signatory of the City.
The Joint Exercise of Powers Agreement provides that the CMFA is a public entity, separate and apart from each member executing such agreement. The debts, liabilities and obligations of the CMFA do not constitute debts, liabilities or obligations of the members executing such agreement.
The Bonds to be issued by the CMFA for a 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 a 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.
There are no costs associated with membership in the CMFA and the City will in no way become exposed to any financial liability by reason of its membership in the CMFA. In addition, participation by the City in the CMFA will not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution and executing the Joint Exercise of Powers Agreement of the CMFA, no other participation or activity of the City or the City Council with respect to the issuance of the Bonds will be required.
The Joint Exercise of Powers Agreement expressly provides that any member may withdraw from such agreement upon written notice to the Board of Directors of the CMFA.
In the case of the proposed bond financing for the Borrower, the City following its execution of the Joint Exercise of Powers Agreement, could, at any time following the issuance of the Bonds, withdraw from the CMFA by providing written notice to the Board of Directors of the CMFA.
FISCAL IMPACT
The City will have no financial, legal, moral obligation, liability or responsibility in becoming a Member of the CMFA. The Board of Directors of the California Foundation Agenda Item #C1
November 12, 2025
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 Hawaiian Gardens, it is expected that that a portion of the issuance fees attributable to the City will be granted by the CMFA to the general fund of the City for projects located in the City.
Such grants may be used for any lawful purpose of the City.
SUGGESTED ACTION
Approve Recommendation.
ATTACHMENTS
A. Resolution No. 033-2025