2 3
4 2
Date: April 28, 2026
STAFF REPORT
City of Lancaster
PH 3
4/28/2026
TN
To: Mayor Parris and City Council Members
From: Patti Garibay, Director – Community Development
Becky Bartlett, Manager – Housing
Subject: Approval of the issuance of bonds related to TEFRA financing for the Sierra Azul Apartments Project
Recommendations:
1. Conduct the public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended.
2. Adopt Resolution No. ____ approving the issuance of the bonds by the California Municipal Finance Authority (CMFA) for the benefit of Lancaster Pacific Associates, LP (Borrower), for the financing of the Sierra Azul Apartments Project.
G.C. Section 84308: No
Fiscal Impact:
None. The bonds to be issued by the CMFA for the Sierra Azul Apartments Project will be the sole responsibility of the Borrower.
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. Its representatives and Board of Directors have considerable experience in bond financing.
On August 18, 2025, the Lancaster Planning Commission approved Conditional Use Permit No. 25- 005 for the Sierra Azul Apartments Project (Project) for the developer, Lancaster Pacific Associates, LP (Borrower). The Project consists of a 228-unit, 100% affordable, multifamily residential 2 3
4 2
development located on the east side of 15th Street West, north of the intersection of 15th Street West and West Avenue K-8 (Assessor’s Parcel Number 3125-009-908). The Project provides a range of amenities, including a clubhouse, pool, tot lots, basketball court, picnic areas with barbeques, dog parks, and laundry facilities.
The Borrower requested that the CMFA serve as the municipal issuer of the bonds in an amount not to exceed $55,000,000 (Bonds) of tax-exempt revenue bonds. The proceeds of the Bonds will be used to: (1) finance or refinance the acquisition, construction, improvement, and equipping of Sierra Azul Apartments; and (2) pay certain expenses incurred in connection with the issuance of the Bonds.
For the Bonds to qualify as tax-exempt bonds, the City of Lancaster must conduct a public hearing providing 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. Public notice was provided to the community.
Through the use of this financing mechanism, the Sierra Azul Apartments will expand access to well- designed, affordable housing while fostering a strong sense of community and improving quality of life for Lancaster residents.
BB/ ah
Attachment:
Resolution No. 26-___