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Date: August 25, 2026
STAFF REPORT
City of Lancaster
PH 1
8/25/2026
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 Maison’s Sierra Phase 2B Affordable Rental Housing
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 Maison’s Sierra Phase 2B, LP (the “Borrower”), to provide for the financing of a multifamily affordable rental housing development to be located at the intersection of West Avenue H-2 and Schamise Street; such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following).
G.C. Section 84308: No
Fiscal Impact:
None. The bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower.
Background:
The CMFA was established on January 1, 2004, pursuant to a Joint Exercise of Powers Agreement to promote economic, cultural, and community development throughout California by facilitating the financing of public benefit projects. CMFA assists local governments, nonprofit organizations, and private entities with the issuance of taxable and tax-exempt bonds for projects that improve the quality of life in California communities. With more than 350 member municipalities, CMFA has extensive experience serving as a conduit issuer for a wide range of public benefit financing programs. 2 4
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The Borrower has requested that CMFA serve as the municipal issuer of tax-exempt revenue bonds in an amount not to exceed $40,000,000 to finance or refinance the acquisition, construction, improvement, and equipping of a multifamily affordable rental housing development, called Maison’s Sierra Phase 2B Affordable Rental Housing Project (Project), to be located near the intersection of West Avenue H-2 and Schamise Street in the City of Lancaster (see Exhibit A for the Project site map).
The Project consists of a 132-unit, 100% affordable community that is comprised of 2- and 3-bedroom one-story full duplexes and single-unit homes (half duplexes) for individuals between 30-70 % of the area median income (AMI). The Project is intended to expand the City's supply of affordable housing and provide quality residential opportunities for low- and moderate-income households.
Pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended, tax-exempt private activity bonds may not be issued unless the governmental jurisdiction in which the Project is located conducts a public hearing, commonly referred to as a TEFRA hearing. The TEFRA hearing provides members of the public an opportunity to comment on the proposed issuance of the bonds and the Project. Following the public hearing, the City Council must approve the issuance of the bonds in order for the bonds to qualify as tax-exempt.
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, or moral obligation, liability, or responsibility for the Project or the repayment of the Bonds for the financing of the 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.
As part of its conduit financing program, 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 Lancaster, it is expected that a portion of the issuance fee attributable to the City will be granted by the CMFA to the general fund of the City. Such grant may be used for any lawful purpose of the City.
The proposed financing will support the development of additional affordable housing opportunities within the City, helping to address the growing demand for quality, affordable residential units while advancing the City's housing goals.
BB/ ah
Attachments:
Resolution No. 26-___
Exhibit A- Sierra 2B Site Map