POLICY FOR THE ISSUANCE OF MUL TIFAMIL Y
HOUSING REVENUE BONDS
COUNCIL POLICY 1-16
JULIA H. COOPER, DIRECTOR OF FINANCE
LUZ COFRESÍ-HOWE, ASSISTANT DIRECTOR OF FINANCE
QIANYU SUN, DEPUTY DIRECTOR OF FINANCE – DEBT & TREASURY MANAGEMENT
RACHELVANDERVEEN, ASSISTANT DIRECTOR OF HOUSING
COUNCIL AGENDA: MARCH 21, 2023
ITEM: 3.4
FILE: CC 23-407
POLICY OVERVIEW
• Adopted by the City Council to address financing matters for multifamily housing projects located in the City
• Staff reviews the Policy periodically to be consistent with the City’s debt management objectives and industry development
• California Debt Limit Allocation Committee (CDLAC) requires the Policy be reviewed by counsel having expertise with relevant federal and state laws
2 PROPOSED AMENDMENT - GENERAL
MA TTERS
• TEFRA Hearing Fee
Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing Fee of $5,000 was established in 2005 and has not been increased since
Amendment provides a path to increase the fee as adopted in the City’s Schedule of Fees and Charges through City Council’s annual approval process • Annual Monitoring Fee
Policy allows for reduction in annual monitoring fee for non-profit or government agency project sponsors
Amendment clarifies that the City may grant reduced annual monitoring fee when none of the general partners of the project developer are for-profit 3 PROPOSED AMENDMENT – CITY FEES
• Clarify requirements for special circumstance exceptions Policy allows bond issuance by another agency under limited circumstances upon City Council approval
Amendment requires the project sponsor notify the City of special circumstance exception at least 4 months before the California Debt Limit Allocation Committee (CDLAC) application deadline, to allow staff time to review and seek City Council approval
• Correct the regulatory reference of TEFRA Hearing
Tax Equity and Fiscal Responsibility Act was passed in 1982 and public approval requirement was imposed in 1986
Amendment accurately references the Internal Revenue Services code. 4 RECOMMENDA TION
1) Accept the report recommending amendments to the Council Policy 1-16, Policy for the Issuance of the Multifamily housing Revenue Bonds
2) Adopt a resolution amending Council Policy 1-16, Policy for the Issuance of the Multifamily housing Revenue Bonds
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