STAFF REPORT
City of Lancaster
PH 1
11/14/2023
JC
Date: November 14, 2023
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Director – Community Development Lisa Anderson, Analyst - Housing
Subject: TEFRA Hearing/Approval of Exempt Facility Bonds for Village at Beechwood Apartments
Recommendation:
Adopt Resolution No. pursuant to Section 147(f) of the Internal Revenue Code of 1986 approving the issuance by the California Statewide Communities Development Authority (the “CSCDA”) of qualified 501 (c) (3) bonds for a qualified residential rental project for Village at Beechwood (the “Project”).
Fiscal Impact:
There is no financial impact. The City itself is not issuing the Bonds, is not obligated to repay the Bonds and is not pledging or otherwise committing any of the City’s revenue or other assets to secure repayment of the Bonds. The Bonds are payable solely from revenue received pursuant to the terms and provisions of certain financing agreements to be executed by the developer.
Background:
Linc Beechwood Limited Partnership, a California limited partnership (the “Developer”) has requested that the CSCDA adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in an aggregate principal amount not to exceed $12,000,000 (the “Bonds”), to finance improvements of a multifamily rental housing project located at 44063 Beech Avenue, Lancaster, California.
The Borrower requests that the City approve CSCDA’s issuance of the Bonds in order to finance improvements to the above-mentioned project. The Bonds will be tax-exempt private activity bonds for purposes of the Internal Revenue Code and, as such, require the approval of the elected body of the governmental entity having jurisdiction over the area where the project to be financed 1 4
2 4
is located. In order for the City to approve CSCDA’s issuance of the Bonds, the City must conduct a Tax Equity and Fiscal Responsibility Act (“TEFRA”) hearing to allow for public comment on the use of the tax-exempt bond financing. Notice of the TEFRA hearing was published in the Antelope Valley Press, a newspaper of general circulation in the community, on November 1, 2023, and the public hearing is scheduled for November 14, 2023.
The City has a significant interest in the success of these projects. Therefore, staff recommends adoption of this resolution in order to approve the CSCDA’s issuance of the Bonds pursuant to Section 147(f) of the Internal Revenue Code of 1986. Adoption of this resolution does not establish or warrant in any manner the creditworthiness or repayment of the Bonds.
LA/js
Attachment:
Resolution No.