October 20, 2026
Community Development
DATE: October 20, 2026
TO: Mayor Martinez and Members of the City Council
FROM: Lina Velasco, Director of Community Development
Jarod K. Suzuki, Financial Advisor, California Municipal Finance Authority
Subject: Bond Financing for Metrowalk at Richmond Station Affordable Housing Project
FINANCIAL IMPACT: The proposed Bonds to be issued by the California Municipal Finance Authority (CMFA) for the Project will be the sole responsibility of Richmond Metrowalk
Associates, a California Limited Partnership (the
“Borrower”), and the City will have no financial, legal, moral obligation, liability or responsibility 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.
Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities. 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’s
General Fund and may be used for any lawful City
purpose.
PREVIOUS COUNCIL
ACTION:
October 3, 2023
AGENDA
REPORT
October 20, 2026
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 aggregate principal amount not to exceed $55,000,000,
for the benefit of Richmond Metrowalk Associates, a
California Limited Partnership (the “Borrower”). The
Bonds would finance or refinance the acquisition,
construction, improvement and equipping of a 150-unit
affordable multifamily rental housing project, located at Nevin Avenue and 19th Street, Richmond, California
(“Metrowalk at Richmond Station Project” or the
“Project”).
RECOMMENDED ACTION: ADOPT a resolution approving the issuance of the Bonds by the California Municipal Finance Authority (“CMFA”)
for the sole purpose of satisfying Tax Equity and Fiscal Responsibility Act requirements for the benefit of
Richmond Metrowalk Associates, a California Limited
Partnership (the “Borrower”) to provide financing for the acquisition, construction, improvement and equipping of the Metrowalk at Richmond Station Project, a 150-unit
affordable housing development - Community
Development (Lina Velasco 510-620-6841).
DISCUSSION:
Richmond Metrowalk Associates, a California Limited Partnership (the “Borrower”), has requested that the California Municipal Finance Authority (“CMFA”) serve as the municipal issuer of tax-exempt revenue bonds in an aggregate principal amount not to exceed $55,000,000 (the “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 Nevin Avenue & 19th Street, Richmond, California (the “Metrowalk at Richmond Station Project” or “Project”).
California Municipal Finance Authority (CMFA)
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, including the City of Richmond, 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 financing.
October 20, 2026
Project to be Financed
The Borrower requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $55,000,000. The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, improvement and equipping of the Metrowalk at Richmond Station Project at Nevin Avenue and 19th Street in Richmond.
The Project is also the subject of a Disposition and Development Agreement (DDA) between the City of Richmond, Bay Area Rapid Transit (BART), Pacific West Communities, and the Successor Agency to the Richmond Community Redevelopment Agency, in which the City and Richmond Metrowalk associates will enter into a longterm ground lease of the Project site for the Project.
Project Summary
The Project is a proposed 150-unit multifamily rental housing development located at the southwest corner of Nevin Avenue and 19th Street. The Borrower is Richmond Metrowalk Associates, a California Limited Partnership. The Project site is approximately 1.79 acres of land identified as APN 514-050-010-8.
Metrowalk at Richmond Station will provide affordable housing for individuals and families earning up to 60 percent (%) of the area median income for Contra Costa County, with an average affordability of under 50 percent area median income (AMI).
The building will be five stories over a one-level podium parking structure and includes a mix of 22 studio units (approximately 411 square feet), 10 one-bedroom units (approximately 554 square feet), 69 two-bedroom units (approximately 777 and 796 square feet), and 49 three-bedroom units (approximately 1,076 square feet). The community will be developed in one phase. The anticipated construction phase will be approximately twenty-four (24) months and could begin before the end of the year.
The Bonds are proposed to support the acquisition, construction, improvement and equipping of the Project. Aside from the proposed tax-exempt bond financing, the project includes grants funds from the Strategic Growth Council (Affordable Housing and Sustainable Communities grant program), the California Department of Housing and Community Development (HCD) (Infill Infrastructure Grant (IIG) Program) and the Successor Agency to the Richmond Community Redevelopment Agency.
Affordable Housing and Regulatory Requirements
The financing is intended to support a multifamily rental housing project and the City’s broader affordable housing objectives. All units, except the manager’s unit, will be for individuals and families earning up to 60 percent of the AMI for Contra Costa County, with an average affordability of under 50 percent AMI. The regulatory agreement will be for a minimum term of 55 years.
October 20, 2026
Fiscal Considerations
The Bonds will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or repayment of the Bonds. All financing documents will state that the Bonds are not obligations of the City or the State of California and are payable 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 Richmond, it is expected that a portion of the issuance fee attributable to the City will be granted to the City’s General Fund for any lawful purpose.
Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing 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 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 the TEFRA Hearing, reasonable notice must be provided to the community.
The TEFRA hearing was held on September 18, 2026, via telephone using a toll-free number. Notice was published in the East Bay Times on September 10, 2026. No comments were received during the hearing.
Following the close of the TEFRA hearing, the City Council must adopt a Resolution approving the issuance of the bonds by the CMFA, which is the requested action this evening.
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 and facilitating site acquisition and project construction through strategies such as issuance of tax-exempt bonds or other financing mechanisms.
In addition, the bond financing will provide the necessary financing to complete the Subarea 1 project that is the subject of the above-mentioned DDA.
October 20, 2026
CONCLUSION:
In order to support the financing of multifamily rental housing in Richmond and satisfy the federal requirements applicable to the proposed tax-exempt financing, 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