REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:June 24, 2025
Subject:Formation of Community Facilities District No. 2025-2 (Cambern Apartments Services) of the City of Lake Elsinore
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE CITY OF LAKE ELSINORE (CAMBERN APARTMENTS
SERVICES), TO AUTHORIZE THE LEVY OF A SPECIAL TAX ON PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF PROVIDING PUBLIC SAFETY SERVICES.
Background
On March 13, 2025, the City of Lake Elsinore (the "City") approved Residential Design Review No. 2023-09, an Affordable Housing development comprising 76 apartment units, known as the Cambern Apartments. Upon approval of the project, a Condition of Approval was established for the creation of a community facilities district to provide law enforcement, fire, and paramedic services, thereby mitigating the fiscal impacts of the project on public safety services. The Applicant for the development of Cambern Apartments is Cambern Avenue Development Holding Company, LLC (the "Applicant"), which proposes to develop the 4.02-acre vacant property and build a 76-unit affordable housing apartment complex with two (2) two-story residential buildings, a community room and two (2) maintenance buildings. The Applicant has requested assistance from the City to establish Community Facilities District No. 2025-2 (Cambern Apartments Services) of the City of Lake Elsinore (the "CFD No. 2025-2" or "District") to levy special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.
Establishing CFD 2025-2 (Cambern Apartments Services)
Discussion
Cambern Avenue Development Holding Company, LLC is the current landowner. It has provided a Petition and Waiver including a description of the area described in Exhibit "A" of the Resolution of Intention to be included into CFD No. 2025-2 and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit "C." The City has submitted a "Consent and Waiver" form on file in the City Clerk's Office to initiate and conduct proceedings under the Mello- Roos Act of 1982, requesting the formation of CFD No. 2025-2 (Cambern Apartments Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.
The territory proposed to be included in CFD No. 2025-2 is Assessor's Parcel Numbers 377-380- 003 & 377-100-003. The proposed total maximum special tax rate for CFD No. 2025-2 is $150 per Affordable Housing Property per year. The maximum special tax rate is proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 4%.
The next step to forming CFD No. 2025-2 is to publish a notification of the proposed District along with the "Resolution of Intention" and Boundary Map. A public hearing on the matter will take place on August 12, 2025, at which time the Council will formally consider the approval of CFD No. 2025-2.
Fiscal Impact
The rate and method of apportionment establish a maximum tax of $150 per unit per year for Affordable Housing Property, plus an annual escalation of the greater of the CPI or 4%. The District will be required to levy special taxes annually on all taxable property within the District to cover the costs of services and administration of the CFD.
Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution of Intention
Exhibits A-G
Administrative Services