Memorandum — San Jose City Council, June 17, 2025

TO: HONORABLE MAYOR

AND CITY COUNCIL
FROM: Maria Öberg
Erik L. Soliván
SUBJECT: See Below DATE: May 27, 2025
Approved Date:
6/4/25
COUNCI
L DISTRICT: 5
SUBJ
ECT: Approval of the Issuance of Multifamily Housing Revenue Notes and the Loan of the Proceeds Thereof for the Financing of the 525 North Capitol Development and Other Related Documents
RECO

MMENDATION
Adop
t a resolution:
(a) A
uthorizing the issuance of a (1) tax-exempt multifamily housing revenue note designated as “City of San José Multifamily Housing Revenue Note, Series 2025B- 1” in a principal amount not to exceed $62,535,038 and (2) a taxable multifamily housing revenue note designated as “City of San José Multifamily Housing Revenue Note, Series 2025B-2”, in a principal amount not to exceed $10,000,000, collectively referred to as the “2025B Notes”;
(b) A
pproving the loan of the 2025B Notes proceeds to 525 Capitol LP, a California limited partnership, to finance the acquisition and development of a 160-unit multifamily development known as 525 North Capitol, located at 525 North Capitol Avenue in the City of San José;
(c) A
pproving in substantially final form the Funding Loan Agreement, the Borrower Loan Agreement, the Regulatory Agreement and Declaration of Restrictive Covenants, and related documents collectively, the 2025B Note Documents; and (d) A
uthorizing and directing the City Manager, Director of Housing, Director of Finance, Assistant Director of Finance, Deputy Director - Debt and Treasury Management or their designees, to negotiate, execute, and deliver the 2025B Notes Documents together with any and all documents necessary to execute and deliver the 2025B Notes, complete the transaction and implement this resolution, and ratifying and approving any action heretofore taken in connection with the 2025B Notes.

COUNCIL AGENDA: 6/17/25
FILE: 25-7 17
ITEM: 3.6

HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Approval of the Issuance of a Tax-Exempt Multifamily Housing Revenue Note and the Loan of the Proceeds Thereof for the Financing of the 525 North Capitol Development and Approving Other Related Documents

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SUMMARY AND OUTCOME

In accordance with the City’s Policy for Issuance of Multifamily Housing Revenue Bonds,1 Community Development Partners, a California nonprofit public benefit corporation (Sponsor), has requested that the City of San José issue:

1) A tax-exempt multifamily housing revenue note designated as “City of San José Multifamily Housing Revenue Note (525 N Capitol), Series 2025B-1” (Tax- Exempt 2025B-1 Note), in a principal amount not to exceed $62,535,038 and 2) A taxable multifamily housing revenue note designated as “City of San José Multifamily Housing Revenue Note (525 N Capitol), Series 2025B-2” (Taxable 2025B-2 Note), in a principal amount not to exceed $10,000,000, collectively referred to as the “2025B Notes”.

Approval of the recommended actions will enable the issuance of the 2025B Notes to finance a portion of the costs to acquire, construct, and develop the 525 North Capitol development located at 525 North Capitol Avenue (Development), a 160-unit affordable housing project, including two units serving as unrestricted manager’s units and 158 units restricted to lower income households,2 which will remain affordable for a period of at least 55 years from the completion of construction. The Development will be subject to affordability restrictions imposed by the California Tax Credit Allocation Committee.

The proceeds of the 2025B Notes will be loaned to 525 Capitol LP, a California limited partnership (Borrower), an entity formed by Community Development Partners. The Borrower will use these proceeds and other funds to finance the Development.

BACKGROUND

Borrower

The Borrower is a California limited partnership consisting of the following entities:

(1) Administrative General Partner: 525 Capitol CDP LLC, a California limited liability company created by Community Development Partners.
(2) Managing General Partner: FFAH V 525 Capitol, LLC, a California limited liability company created by Foundation for Affordable Housing, a California not for profit public benefit corporation.
(3) Limited Partner: CREA, LLC, or entity formed by CREA.

1 City Council Policy #1-16 Policy for the Issuance of Multifamily Housing Revenue Bonds 2 Lower-income households as defined in accordance with the California Health and Safety Code section 50079.5.

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Community Development Partners requested that the City issue the 2025B Notes and loan the bond proceeds to the Borrower for the purpose of financing the Development.

The 2025B Notes will be subject to the State’s annual federal tax-exempt private activity bond volume cap allocated by the California Debt Limit Allocation Committee (CDLAC).

Development Overview

The Borrower is proposing to develop, own, and manage the Development, which consists of a five-story building with 158 rent-restricted affordable studios, one-, two-, and three-bedroom units, and two unrestricted manager’s units on an approximately

0.97-acre site. The construction is anticipated to commence immediately upon the issuance of the 2025B Notes and funding of the tax credit equity and will be completed in approximately 36 months after the issuance. The financing history of this project is provided as Attachment A – Key Financing Dates.

The unit mix and affordability levels by area median income are summarized in Table 1.

Table 1 – Development Unit Mix by Affordability Level

Unit Size
Up To 30% AMI Up To 50% AMI Up To 60% AMI
Manager’s
Units Total
Units Max
Income*
Rent
Limit Units Max
Income*
Rent
Limit Units Max
Income*
Rent
Limit
Studio 31 $38,700 $967 0 $64,500 $1,612 29 $77,400 $1,935 0 60 One-
Bedroom 11 $44,220 $1,105 25 $73,700 $1,842 28 $88,440 $2,211 0 64 Two-
Bedroom 21 $55,290 $1,244 0 $92,150 $2,073 5 $110,580 $2,488 2 26 Three-
Bedroom 8 $64,140 $1,382 0 $106,900 $2,488 0 $128,280 $2,764 0 8 Total 71 25 62 2 160
*Maximum rent and income limits are based on the California Tax Credit Allocation Committee’s occupancy guidelines of 1.5 persons per bedroom.

Construction Schedule

Construction is expected to commence in July 2025 and be completed by April 2027.

City Loan for the Development

On March 26, 2024,
3 City Council approved a loan to the Borrower for eligible development costs of up to $20,000,000 (City Construction Loan). The sources of

3 File: 24-74767, Item #: 8.3, Meeting Date: March 26, 2024, Item Title: Actions Related To Loan Commitments and Land Purchases for Kooser Apartments Located at 1371 Kooser Road and 525 North Capitol Avenue for the Development of Two New Affordable Rental Housing Developments, Web

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funding for the City Loan were the Measure E Real Property Transfer Tax revenue and the Inclusionary Housing Fee Fund. Table 2 displays the City’s funding sources for the total City Loan amount as approved by City Council in March 2024.

Table 2 – City Loan Funding Sources

City as Issuer of Multifamily Housing Notes

In accordance with the City’s policy for the issuance of multifamily housing revenue bonds (Council Policy 1-16), the City may issue tax-exempt multifamily housing revenue obligations in connection with the financing or refinancing of rental housing projects within the City.

Sources of Development Funding

The 2025B Notes will fund a portion of the total Development costs, which are currently estimated to be $131,529,739. Based on the Borrower’s proforma, 4 dated April 23,
2025, during the construction period, the Tax-Exempt 2025B-1 Note will be drawn down over time up to an estimated amount of $62,535,038.

Attachment A – Key Financing Dates, previously referenced in this memorandum, provides background on the project’s financing history, while Attachment B – Sources and Uses outlines the estimated sources and uses of funding for the Development’s construction and permanent phases.

Link: https://sanjoseca.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId= 152fd1a6-3d2e-4bc6-a01b-27e2c1b67118
4 Proformas are financial projections used to evaluate a project’s expected costs, revenues, and financial feasibility.

Funding Source Funding Amount
Measure E Real Property Transfer Tax
revenue (Extremely Low-Income) 1,670,000
Measure E Real Property Transfer Tax
revenue (Low-Income) 13,250,000
Inclusionary Fee Fund 5,080,000
Total $20,000,000

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ANALYSIS

Overview of the Multifamily Housing Revenue Bond Financing Multifamily housing financing historically has involved the issuance of tax-exempt multifamily housing bonds or notes on behalf of private developers of qualifying affordable rental apartment projects. The advantages of tax-exempt financing to borrowers include below-market interest rates and low-income housing tax credits – features that are not available with a conventional multifamily housing mortgage loan.

The 2025B Notes operate in a similar manner to tax-exempt multifamily housing bonds.

The City Charter allows the City to issue, execute, and deliver revenue notes pursuant to California Health and Safety Code Sections 52075-52098. In accordance with this, the City is authorized to issue the 2025B Notes for the purpose of financing the acquisition and construction of multifamily rental housing. Section 52011 of the California Health and Safety Code defines “Bonds” to include notes for purposes of California Health and Safety Code Sections 52075-52098. The Tax-Exempt 2025B-1 Note is subject to the State’s annual federal tax-exempt private activity bond volume cap allocated by CDLAC.

The 2025B Notes are limited obligations of the City, payable solely from loan repayments by the Borrower, and are not secured by the general taxing power of the City nor any other asset of the City.

Requirements for Tax-Exemption

For a private activity multifamily housing revenue bond or note to qualify for tax exemption, federal law requires, among other matters, that one of two restrictions apply:

1) At least 20% of the units in the housing development must be reserved for occupancy by individuals and families whose income is 50% or less of the area median income; or
2) At least 40% of the units must be reserved for occupancy by individuals and families whose income is 60% or less of the area median income.

While this restriction will be incorporated into the Regulatory Agreement for the Tax- Exempt 2025B-1 Note, the Development will also be subject to additional affordability restrictions, including those imposed by CDLAC, the County of Santa Clara Office of Supportive Housing, and the City.

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Structure of the 2025B Notes

Direct Purchase/Funding Structure
The 2025B Notes will be structured as non-rated and non-credit-enhanced obligations that initially will be directly funded and purchased by First-Citizens Bank & Trust Company (First Citizens). Pursuant to the City’s policies regarding non-credit-enhanced bonds, First Citizens will sign an Investor Letter acknowledging that it is a “qualified institutional buyer” or “accredited investor” that is, a sophisticated investor, as required under the City’s Policy for the Issuance of Multifamily Housing Revenue Bonds, who understands and accepts the risks associated with non-rated obligations secured solely by the rental income derived from the Development. The 2025B Notes may only be transferred in amounts representing not less than 15% of the outstanding principal amount of the 2025B Notes and no less than $100,000, to an “Approved Transferee.” An Approved Transferee includes: (1) a Qualified Institutional Buyer under the Securities Act of 1933 which is also a financial institution or commercial bank having capital and surplus of at least $5 billion, (2) an affiliate of First Citizens, (3) a trust or custodial arrangement established by First Citizens, or one of its affiliates, the beneficial interests in which will be owned only by Qualified Institutional Buyers. If the 2025B Notes are transferred to an Approved Transferee, the new holder must sign and deliver a similar Investor Letter to the City and Computershare Trust Company, N.A.

Following completion of construction and lease-up (at conversion), the Taxable 2025B-2 Note will be repaid in full, and the Tax-Exempt 2025B-1 Note will be purchased by Citibank, N.A. (Citibank). Upon the purchase of the Tax-Exempt 2025B-1 Note by Citibank, Citibank will sign the Investor Letter and become subject to the same restrictions that initially applied to First Citizens.

Principal Amounts and Terms

Based on current projections, the estimated maximum par 5 amount of the Tax-Exempt
2025B-1 Note will be $62,535,038 and the estimated par amount of the Taxable 2025B- 2 Note will be $4,737,554. After the Development is constructed and leased up, and conversion to the permanent loan phase occurs (Conversion Date), the Taxable 2025B- 2 Note is expected to be repaid in full and the Tax-Exempt 2025B-1 Note is expected to be paid down to a permanent loan amount estimated at $20,975,000. The source of 2025B Notes repayment on the Conversion Date will be Federal Low-Income Housing Tax Credit proceeds. The Conversion Date is anticipated to occur approximately 36 months after the 2025B Notes closing, subject to two six-month extensions.

The maturity of the Tax-Exempt 2025B-1 Note is expected to be approximately 15 years after the Conversion Date (approximately 18 years after the 2025B Notes closing). The

5 Refers to the principal amount of a bond or the total principal amount of a bond series or issue.

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Tax-Exempt 2025B-1 Note will amortize on a 40-year basis. The maturity of the Taxable 2025B-2 Note is expected to be approximately four years after the 2025B Notes closing.

The Taxable 2025B-2 Note will pay interest only prior to maturity.

Interest Rate

During construction, the interest rate on the 2025B Notes will be fixed, benchmarking on the 30-day term Secured Overnight Financing Rate. The rates will be set ten business days prior to the closing of the 2025B Notes. The Borrower’s proforma as of April 23, 2025, assumes a rate on the Tax-Exempt 2025B-1 Note at 6.64% (0.5% above the then market rate) and a rate on the Taxable 2025B-2 Note at 7.54% (1.30% over the then market rate).

After the Conversion Date, the Tax-Exempt 2025B-1 Note will be reset to a fixed permanent loan rate equal to the 18-year Secured Overnight Financing Rate Swap Index rate plus a spread of 2.30%. The permanent loan rate will be set no more than five days prior to the Tax-Exempt 2025B-1 Note closing. Based on the most recent projection, the estimated permanent loan rate is approximately 6.83%.

Financing Documents

The following is a brief description of the documents the Funding Loan Agreement, Borrower Loan Agreement, Regulatory Agreement, and Declaration of Restrictive Covenants. The staff recommendation requests City Council to approve and authorize the execution of these documents. Copies of these documents will be posted on the City Council Agenda website in advance of the June 17, 2025, meeting.

Funding Loan Agreement
The Funding Loan Agreement is among the City, First Citizens, as funding lender, and Computershare Trust Company, N.A., as fiscal agent (Fiscal Agent). The Funding Loan Agreement will be executed by the Director of Finance or another authorized officer, on behalf of the City. Pursuant to the Funding Loan Agreement, the Fiscal Agent is authorized to receive, hold, invest, and disburse 2025B Notes proceeds and other funds established thereunder; to authenticate the 2025B Notes; and to apply and disburse payments to the Noteholder. The Funding Loan Agreement allows First Citizens to pursue remedies on behalf of itself as the Noteholder. The Funding Loan Agreement sets forth the guidelines for the administration, investment, and treatment of investment earnings generated by each fund and account, and restrictions relating to any subsequent transfer of the 2025B Notes. The Borrower Loan Agreement (described below) obligates the Borrower to compensate the Fiscal Agent for services rendered under the Funding Loan Agreement.

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Borrower Loan Agreement
The Borrower Loan Agreement is among the City and the Borrower. The Borrower Loan Agreement will be executed by the Director of Finance or another authorized officer, on behalf of the City. The Borrower Loan Agreement provides for the loan of 2025B Notes proceeds to the Borrower for the construction of the Development, and for the repayment of such loan by the Borrower. The loan of 2025B Note proceeds will be evidenced by promissory notes (Borrower Notes). The City’s rights to receive payments under the Borrower Notes will be assigned initially to First Citizens, along with certain other rights under the Borrower Loan Agreement; however, certain reserved rights have been retained by the City, such as the City's right to receive fees, notices, and indemnification.

Regulatory Agreement and Declaration of Restrictive Covenants The regulatory agreement and declaration of restrictive covenants (Regulatory Agreement) is between the City and the Borrower. The Regulatory Agreement contains certain covenants and restrictions regarding the Development and its operations, intended to assure compliance with the Internal Revenue Code of 1986. The Regulatory Agreement is executed by the Director of Finance and the Director of Housing, or other authorized officers, on behalf of the City. The Regulatory Agreement requires that the Development units be rented only to low-income residents for a period of at least 55 years after 50% of the units in the Development are first occupied.

Financing Team Participants

The financing team participants for the 2025B Notes consists of:

• City’s Municipal Advisor: Ross Financial
• Bond Counsel: Stradling Yocca Carlson & Rauth LLP
• Fiscal Agent: Computershare Trust Company, N.A.
• Note Purchaser: First Citizens Bank & Trust Company

Payment of all costs associated with the City’s Municipal Advisor, Bond Counsel, and Fiscal Agent is contingent upon the closing of the 2025B Notes financing and will be paid from tax credit equity, and/or Borrower funds.

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Financing Schedule

The current proposed schedule is as follows:

• City Council Approval of 2025B Notes Documents: June 17, 2025 • 2025B Notes Closing (tentative): June 30, 2025
• CDLAC Deadline for Tax-Exempt 2025B-1 Note Closing: July 21, 2025

Public Disclosure Report Relating to Conduit Revenue Obligations

The Borrower has prepared the attached public disclosure report pursuant to California Government Code Section 5852.1, which is provided as Attachment C – Public Disclosure Report to this memorandum, providing good faith estimates of certain costs associated with the issuance of the 2025B Notes.

City Bond Issuance and Monitoring Fees

City Policy for Issuance of Multifamily Housing Revenue Notes

The City’s policy for issuance of multifamily housing revenue notes requires that the issuance fee and annual monitoring fee be calculated as follows:

• Issuance Fee is an amount equal to the sum of (a) 0.50% of the first $10,000,000 issued and (b) 0.25% of the remaining par issued; and
• Annual Monitoring Fee is an amount equal to 0.125% of the original par amount of tax-exempt bonds issued for the 55-year term of the regulatory period.

Based on the current estimated aggregate Tax-Exempt 2025B-1 Note par 6 of
$62,535,038 as provided in the Borrower’s proforma dated April 23, 2025, the City’s policy would require an issuance fee of $181,338. The final fee will be based on the final aggregate par issued, subject to a not-to-exceed amount of $62,535,038.

City Annual Bond Monitoring Fee

The Housing Department is charged with monitoring the Development . In general, the City annual monitoring fee typically is equal to 0.125% of the original principal amount of the tax-exempt Note issued. The annual fee may be reduced for not-for-profit developers to an amount equal to 0.125% of the permanent note amount at the conversion date, subject to a minimum annual fee of $7,500. This fee shall apply until the end of the 55- year term of the regulatory period.

6 Refers to the principal amount of a note or the total principal amount of a note series or issue.

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Based on the Borrower’s estimate of a Tax-Exempt 2025B-1 Note par of $62,535,038 as provided in the Borrower’s proforma dated April 23, 2025, the City’s policy would require an annual monitoring fee of $78,169. The final fee will be based on the final aggregate par issued, subject to a not-to-exceed amount of $62,535,038. If the 2025B Notes mature or are redeemed prior to maturity, the City has the option to require the Borrower to prepay the annual fee due for the remainder of the Regulatory Agreement term.

EVALUATION AND FOLLOW-UP

The Housing Department produces periodic information memoranda regarding the use of the Housing Director’s delegation of authority under the City’s Municipal Code; therefore, final note business terms will be summarized in those memoranda. In addition, the Housing Department posts periodic reports on the status of its affordable properties undergoing rehabilitation or construction on its website

7. If the recommended
actions in this memorandum are approved and the Development successfully closes construction financing, it will be included in these periodic reports.

COST SUMMARY/IMPLICATIONS

The Borrower will pay all issuance costs of the 2025B Notes from tax credit equity and/or Borrower funds. The 2025B Notes will not be paid from, nor secured by, the general taxing power of the City or any other City asset.

The City is expected to receive revenue from the issuance of the 2025B Notes in the amount of $181,338 and annual monitoring in the amounts of $78,169. The revenue received will be deposited into the Housing Trust Fund.

COORDINATION

This memorandum has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.

7 Housing Department affordable properties webpage, Web Link: https://www.sanjoseca.gov/your- government/departments-offices/housing/homelessness-program-dashboard

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PUBLIC OUTREACH

The method of notifying the community of the City’s intent to issue the tax-exempt private activity Note is the Tax Equity and Fiscal Responsibility Act hearing. The Tax Equity and Fiscal Responsibility Act Hearing was held on April 30, 2025, before the Director of Finance. The public hearing notice for this hearing was published in the San José Post-Record on April 23, 2025. No public comments were made at the Tax Equity and Fiscal Responsibility Act hearing.

This memorandum will be posted on the City’s Council Agenda website for the June 17, 2025 City Council meeting.

COMMISSION RECOMMENDATION AND INPUT

No commission recommendation or input is associated with this action.

CEQA

Exempt per Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15369, Ministerial Project pursuant to Government Code Section 65913.4, File No.

ER20-109.

PUBLIC SUBSIDY REPORTING

This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.

/s/ /s/
Maria Öberg Erik L. Soliván
Director of Finance Housing Director

For questions regarding the financing plan, please contact Qianyu Sun, Deputy Director of Finance, at [email protected]. For questions regarding the project, please contact Banu San, Deputy Director, Housing Department, at [email protected].

ATTACHMENTS:

A: Key Financing Dates
B: Sources and Uses
C: Public Disclosure Report

Attachment A: Key Financing Dates
The following are the key dates relating to the financing history of the 525 N Capitol development:
• March 26, 2024 – City Loan of up to $26,500,000 for the 525 N Capitol development was approved by the City Council

• April 22, 2024 – The Director of Finance and Director of Housing signed a declaration evidencing the intent to reimburse expenditures with the proceeds of an obligation for the 525 N. Capitol development in an amount not to exceed $69,000,000.

• August 27, 2024 – The City submitted a joint application to CDLAC and the California Tax Credit Allocation Committee.

• December 11, 2024 – The City received a private activity bond allocation from CDLAC for the Tax-Exempt 2025B-1 Note and the Borrower received a reservation of 4% Federal tax credits in the requested amount.

• April 30, 2025 – The Director of Finance held a Tax Equity and Fiscal Responsibility Act hearing regarding the issuance of tax-exempt multifamily housing revenue obligations in an amount not to exceed $69,000,000 to finance the construction of the 525 N. Capitol development.

Attachment B: Sources and Uses
City of San José – 525 N. Capitol
Plan of Finance – Uses of Funding at Permanent

Uses Permanent
Acquisition Costs/Land ............................................................. $ 7,273,732 Construction .............................................................................. 80,070,521 Architect & Engineering ............................................................ 3,542,253 Hard and Soft Cost Contingency .............................................. 7,331,547 Construction Interest and Fees ................................................. 12,817,657 Other Project Costs ................................................................... 3,388,911 Reserves…. .............................................................................. 874,546 Financing and Soft Costs…. ..................................................... 1,253,895 Developer Fee ........................................................................... 14,976,918 Total ..........................................................................................

131,529,739

City of San José – 525 N. Capitol
Plan of Finance – Sources of Funding

Source Construction Permanent
First Citizens Tax-Exempt Note ............................................... $ 62,535,038 $ 0 First Citizens Taxable Note .....................................................

Citibank Tax-Exempt Note ....................................................... 4,737,554
0 0
20,975,000
Housing Trust Silicon Valley Loan ........................................... 5,000,000 5,000,000 City of San José Loan .............................................................. 20,000,000 20,000,000 City of San José Land Purchase
County of Santa Clara Loan ..................................................... 6,500,000
8,000,000
6,500,000
8,000,000
Housing & Community Development Infill Infrastructure Grant 4,000,000 4,000,000 Department of Developmental Services Loan ......................... 1,000,000 1,000,000 Solar Credit .............................................................................. 213,159 Federal Tax Credit Equity ........................................................ 2,652,385 53,047,692 Deferred Costs……………………………………………………. 17,104,762
Deferred Developer Fee ........................................................... 4,350,903 Contributed Developer Fee 8,442,985
Total .......................................................................................... $ 131,529,739 $ 131,529,739

Attachment C: Public Disclosure Report

PUBLIC DISCLOSURES RELATING TO CONDUIT REVENUE OBLIGATIONS

Pursuant to California Government Code Section 5852.1, the borrower (the Borrower) identified below has provided the following required information to the City of San José (the City) prior to the City’s regular meeting (the Meeting) of its City Council (the City Council) at which Meeting the City Council will consider the authorization of conduit revenue bonds as identified below.

1) Name of Borrower: 525 Capitol, LP, a California limited company 2) City Council Meeting Date: June 17, 2025.
3) Name of Bond Issue / Conduit Revenue Obligations: City of San José Multifamily Housing Revenue Note (525 N. Capitol), Series 2025B-1 and Multifamily Housing Revenue Note (525 N. Capitol), Series 2025B-2 (Taxable) (the “2025B Notes”)
4) _ Private Placement Lender or Bond Purchaser, _ Underwriter, or X Financial Advisor (mark one) engaged by the Borrower from which the Borrower obtained the following required good faith estimates relating to the 2025B Notes:

a) The true interest cost of the Tax-Exempt 2025B-1 Note, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the new issue of the Tax-Exempt 2025B-1 Note (to the nearest ten- thousandth of one percent): 6.83%
b) The estimated finance charges of the 2025B Notes, which mean the sum of all fees and charges paid to third parties: $5,605,322 consisting of an estimated $686,059 paid upfront, $1,555,633 paid over the term of the 2025B Notes and $3,363,630 paid over the remaining CDLAC compliance period.
c) The amount of proceeds received, or deemed received, by the public body for sale of the 2025B Notes less the finance charges of such 2025B Notes described in subparagraph (B) and any reserves or capitalized interest paid or funded with proceeds of such Bond: $54,454,935. d) The total payment amount, which means the sum of all payments the Borrower will make to pay debt service on the 2025B Notes plus the finance charges of the 2025B Notes 2025B Notes (which total payment amount shall be calculated to the final maturity of such 2025B Notes):
$93,380,994.

This document has been made available to the public for the June 17, 2025, City Council meeting.

San Jose City CouncilJune 17, 2025

San Jose City Council
June 17, 2025