STAFF REPORT
City of Lancaster
PH 1
2/25/2025
TN
Date:February 25, 2025
To: Mayor Parris and City Council Members
From: George N. Harris II, Senior Director/Treasurer-Administrative Services Christopher Aune, Housing Manager
Subject:TEFRA Hearing/Approval of Bonds for Maison’s Sierra Phase 2 Apartments.
Recommendation:
Adopt Resolution No. XX approving the issuance of tax exempt facility Bonds by the California Municipal Authority (CMFA) for the benefit of Maisons Sierra Phase 2, LP (the “Borrower”), to provide for the financing of the Project. Such adoption is solely for the purpose of satisfying the requirements of TEFRA, the Internal Revenue Code, and the California Government Code Section 6500.
G.C. Section 84308: No
Fiscal Impact:
There is no financial impact. The City itself is not issuing the Housing Revenue Bonds, is not obligated to repay the Housing Revenue Bonds, and is not pledging or otherwise committing any of the City’s revenue or other assets to secure repayment of the Housing Revenue Bonds. The Housing Revenue Bonds are payable solely from revenue received pursuant to the terms and provisions of certain financing agreements to be executed by the developer.
Background:
The Borrower requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $45,000,000 (the “Bonds”) of tax-exempt revenue bonds. The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, improvement, and equipping of a multifamily rental housing project located at the vacant lot north of Whit Carter Park, which is located at 45635 Sierra Highway (the “Project”) within the City of Lancaster, California (the “City”).
In order for the Bonds to qualify as tax-exempt bonds, the City of Lancaster must conduct a 1 9
5 4
public hearing (the “TEFRA Hearing”) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.
California Municipal Finance Authority:
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 was formed to assist 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 financings.
Summary:
Therefore, staff recommends the adoption of this resolution in order to approve CMFA’s issuance of the Housing Revenue 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 Housing Revenue Bonds.
Attachment:
Resolution No. XX