October 21, 2025
Community Development
DATE: October 21, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Jesus Morales, Housing Manager
Subject:
Approve the Issuance of Bonds by the California Municipal Finance Authority for the TBV Villas at Renaissance
Apartments Project
FINANCIAL IMPACT: The proposed Tax Equity and Fiscal Responsibility Act (“TEFRA”) revenue bonds (“Bonds”) to be issued by the
California Municipal Finance Authority (CMFA) for the
Project will be the sole responsibility of TBV Villas
Partners, LP (the “Borrower”), and the City will have no financial or legal obligation for the Project or the
repayment of the Bonds. 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.
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public
benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the 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 Richmond, it is expected that a portion of the issuance fee attributable to the City will be granted by the CMFA to the City. Such funds may be used for any
lawful purpose of the City.
AGENDA
REPORT
October 21, 2025
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
The California Municipal Finance Authority (“CMFA”)
requests that the City Council consider adopting a
resolution approving the issuance of Tax Equity and
Fiscal Responsibility Act (“TEFRA”) revenue bonds, in an amount not to exceed $48,000,000, for the benefit of TBV Villas Partners, LP, or another ownership entity created by GLI-SUG Joint Venture LLC, a California limited liability company, its general partner (the “General Partner”), or by another affiliate of the Sponsor (such limited partnership or other ownership entity, the “Borrower”) (such LLC or other ownership entity being referred to herein as the “Borrower”) as part of a plan to finance or refinance the acquisition, rehabilitation, improvement and equipping of a
multifamily rental housing project located at 1827 San
Joaquin Avenue, Richmond, California (the “Project”).
RECOMMENDED ACTION:
ADOPT a resolution approving the issuance of up to
$48,000,000 in Tax Equity and Fiscal Responsibility Act (“TEFRA”) revenue bonds by the California Municipal
Finance Authority (CMFA), a joint powers authority and
public entity of the State of California for the sole purpose of satisfying TEFRA for the finance and refinancing of the acquisition, construction, development, and equipping of a 105-unit qualified residential rental project located at 1827 San Joaquin Avenue in Richmond (the “Project”) –
Community Development (Lina Velasco/Jesus Morales
510-620-6841).
California Municipal Finance Authority (CMFA)
The California Municipal Finance Authority (CMFA) was created on January 1, 2004, as a Joint Powers Authority. The CMFA was established when several California municipalities entered into a Joint Powers Agreement, pooling their authority to issue tax-exempt and taxable bonds and other financing tools. Its main role is to provide access to low-cost financing for economic development, affordable housing, and public benefit projects throughout California. To date, over 320 municipalities, including the City of Richmond, are members of CMFA.
Project to be Financed
The Borrower (“TBV Villas Partners, LP”) requests that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $48,000,000 (the “Bonds) of tax-exempt revenue bonds. The proceeds of the Bonds will be used to finance and refinance the acquisition, construction, development and
October 21, 2025
equipping of a 105-unit qualified residential rental project located at 1827 San Joaquin Avenue (the “Project”) in the City of Richmond.
The Project was approved pursuant to California Senate Bill (SB) 35 as a qualifying affordable mixed-use development, consisting of 105 total dwelling units and approximately 7,500 square feet of ground floor commercial space. The Project to be financed include two phases:
o Phase 1: 93 residential units and approximately 7,500 square feet (SF) of ground floor commercial space within a 5-story building consisting of the below units types:
1-Bedroom Units: 7
2-Bedroom Units: 32
3-Bedroom Units: 53
4-Bedroom Units: 1
o Phase 2: 12 residential units within a 3-story building consisting of the following unit types:
Studio Units: 4
2-Bedroom Units: 8
Except for the manager’s unit, 100 percent of the total units will be rented to lower- income households earning up to 80 percent of the Area Median Income (AMI). A regulatory agreement ensuring the units are affordable for a minimum term of 55 years will be executed.
TEFRA Hearing- August 27, 2025
As required by the Tax Equity and Fiscal Responsibility Act of 1982 (as set forth in Section 147 (f) of the Internal Revenue Code of 1986), in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City must conduct a public hearing (the “TEFRA 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. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. City and CMFA staff held a public hearing on August 27, 2025, at 3:00 PM that was held via toll free number and was published in the West County Times. At the TEFRA hearing, no comments were submitted for consideration. The City Council must, in its discretion, decide whether to provide its approval of the issuance of the Bonds by CMFA for the financing of the Project.
SYNERGISTIC POLICIES:
Housing Element Program 1.K: Housing for Extremely Low-Income Households encourages the City to undertake efforts to assist in the acquisition or development of properties for housing affordable to low-income households including actively assisting and supporting developers with funding applications to support the development of extremely low-income housing, including facilitating funding of site acquisition and project construction through strategies such as issuance of tax-exempt bonds or other
October 21, 2025
financing mechanisms to support land acquisition and/or construction of housing units affordable to extremely low-income households.
CONCLUSION: City staff recommend that the City Council adopt a resolution approving the issuance of bonds by the CMFA for the Project.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution