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RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE amending Council Policy 1 -16 for the Issuance of
Multifamily Housing Revenue Bonds
WHEREAS, City of San José (“City”) Council Policy 1-16 for the issuance of multifamily housing revenue bonds (“Policy”) was adopted by the City Council to facilitate the development of affordable housing project in San José and address bond financing related matters including permitted issuers, the City’s financing process, City fees, credit considerations and refunding or restricting of outstanding bonds; and
WHEREAS, the Policy currently requires the City to be the issuer of all bonds financing multifamily housing rental projects, unless an exception applies; and
WHEREAS, the City has been asked from time to time for special circumstance exceptions that would permit bonds to be issued by external agencies, such as California Housing Financing Agency and California Municipal Finance Authority, which are established conduit issuers of multifamily housing revenue bonds; and
WHEREAS, such exceptions require City Council approval; and
WHEREAS, on April 29, 2025, City Council approved amendments to the Policy, and directed staff to return with a more comprehensive review to ensure it reflects current industry practices and the City’s affordable housing production goals; and
WHEREAS, the proposed policy revisions will streamline and modernize Council Policy 1-16, Policy for the Issuance of Multifamily Housing Revenue Bond (Policy), to reduce administrative burden for affordable housing developers and improve staff’s ability to efficiently process bond transactions while maintaining compliance with applicable federal and state requirements;
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NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
The revised City Council Policy 1-16, entitled “Policy for the Issuance of Multifamily Housing Revenue Bonds,” attached hereto as Exhibit “A” and incorporated herein by this reference as though fully set forth herein, is hereby approved and shall, as of the date and time of adoption of this Resolution, replace City Council Policy 1-16, approved by the City Council on April 29, 2025.
ADOPTED this _____ day of ___________, 2026, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
City Clerk
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EXHIBIT “A”
City of San José, California
COUNCIL POLICY
TITLE POLICY FOR THE ISSUANCE OF
MULTIFAMILYHOUSING
REVENUE BONDS
PAGE
1 of 16
POLICY NUMBER
1-16
EFFECTIVE DATE June 11, 2002 REVISED DATE [April XX, 2026]
APPROVED BY COUNCIL ACTION
June 11, 2002, Item 3.7, Resolution No. 71023; December 6, 2005, Item 3.5, addition of TEFRA Fee and amendment of Annual Monitoring Fee policy; Reaffirmed March 27, 2018, Item 4.1, Resolution No. 78538; April 29, 2025, Item 3.5(a), Resolution No. RES2025-100; April 28, 2026, Item 3.5, Resolution No. RES2026-XXX
GENERAL MATTERS
I. ISSUER
Bonds financing multifamily housing rental projects (a "Project" or "Projects") within the City of San José (the “City”) may be issued by the City or external conduit issuers authorized by the State of California or organized under the Joint Exercise of Powers Act, as codified in California Government Code Section 6500.
A. Non-City Conduit IssuancesIssuers
Where the City is not the issuer of bonds, it shall be the City's policy to require:
1. the non-City issuer to assume full responsibility for issuance and ongoing compliance of the bond issue with federal tax and state laws;
2. the City to serve as the co -administrator of the bond regulatory agreement for the purposes of monitoring the Project Sponsor’s performance which includes, but is not limited to, the following obligations on part of Project Sponsor and non-City issuer:
a. the Project Sponsor shall deliver to the City all necessary notices, certificates, and reports, as required for the bond administrator under the regulatory agreement. b. the City shall have the same rights accorded to the non-City issuer under the regulatory agreement, including, but not limited to, notice, cure and enforcement rights.
c. the Project Sponsor and the non-City issuer shall provide the City with information requested in connection with the Project Sponsor’s duties and responsibilities
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under the regulatory agreement, ensuring the affordability of the Project and the maintenance of the Project in a safe and habitable condition.
3. The Project Sponsor shall indemnify, hold harmless and defend the City, as the co - administrator of the regulatory agreement, against liability events arising out of or based upon the regulatory agreement.
B. TEFRA Hearing
Where feasible, the City shall seek to hold a public hearing required under Section 147(f) of the Internal Revenue Code of 1986, better known as the Tax Equity and Fiscal Responsibility Act (“TEFRA”) hearing, for such Project.
The Director of Finance will hold TEFRA hearings for Projects with bonds issued by non - City conduit issuers.
II. FINANCING TEAM
The City shall select the financing team for all multifamily housing revenue bonds issued by the City. The Finance Department is responsible for selecting the municipal advisor, trustee and the investment banker/ underwriter (assuming a negotiated public sale of bonds). The City Attorney's Office is responsible for selecting the bond counsel firm. The municipal advisor, investment banker and bond counsel shall be selected from approved lists determined from time to time by a request for qualifications/proposal process.
III. COORDINATION AMONG CITY DEPARTMENTS
The City recognizes that the issuance of housing bonds entails a coordinated effort among the Housing Department, Finance Department and City Attorney's Office. The Housing Department shall ensure that the Finance Department and the City Attorney's Office are provided with regular updates on projects that may involve the issuance of bonds.
THE FINANCING PROCESS
The following financing process applies when the City issues multifamily housing revenue bonds.
I. INITIAL MEETING WITH PROJECT SPONSOR
A. Prior Due Diligence
Prior to arranging an initial meeting with the Project Sponsor, the Housing Department shall perform initial due diligence on the Project Sponsor, including whether the Project Sponsor has ever failed to use an allocation from CDLAC and whether the Project Sponsor has failed to comply with the terms of any other City financings or City loans.
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B. Determination of Readiness
Following the initial meeting, City representatives shall determine if the project is in a state of sufficient "readiness" to proceed with the CDLAC application process. This includes the status of the project in terms of the development process. In general, a project will be deemed "not ready" if the discretionary planning approvals will not have been completed by the time of the CDLAC application.
C. Selection of Financing Team
Following a determination of readiness, the Finance Department shall recommend the municipal advisor and underwriter (if applicable) and City Attorney shall recommend the bond counsel, as the case may be, for each project.
II. DEPARTMENTAL APPROVALS
Pursuant to the Delegation of Authority by the City Council, both the City's Directors of Finance and Housing must approve each Project, the financing, and the filing of a CDLAC application before the City can make an application to CDLAC for private activ ity bond allocation. The approval of the Directors of Finance and Housing shall be evidenced by a jointly signed "Notice to Proceed" addressed to the Project Sponsor. The Notice to Proceed shall describe the project, identify the developer or Project Spons or, the affordability mix, the proposed plan of finance and the amount of bond funding requested.
A. Inducement Declaration
The City Attorney's Office will be responsible for preparing a joint declaration by the Directors of Finance and Housing. The declaration will:
1. Memorialize the City’s official intent to issue tax-exempt bonds and reimburse expenditures for the acquisition, construction/rehabilitation and development of a Project with the proceeds thereof for purposes of U.S. Treasury Regulations Section 1.150-2;
2. Authorize the filing of a CDLAC application; and
3. Authorize the execution of a Deposit and Escrow Agreement.
B. TEFRA HEARING
The TEFRA hearing will be held before the Director of Finance on the date specified in the TEFRA Notice. The Director of Finance has the discretion to have the TEFRA hearing held by the City Council.
III. CDLAC APPLICATIONS
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A. Description
Before the City is legally able to issue private activity tax -exempt bonds for a project, an application must be filed with CDLAC and an allocation of the State ceiling on qualified private activity bonds must be approved by CDLAC.
B. City to File
The City is the applicant to CDLAC for each project to be financed with tax-exempt bonds issued by the City. The Housing Department will file all applications to CDLAC on behalf of Project Sponsorsproject sponsors.
C. Project Sponsor to Prepare Application
Each Project Sponsors project sponsor shall take responsibility for preparing the CDLAC application for its project with input from City representatives, the City's municipal advisor and bond counsel.
D. Deposit and Escrow Agreement
The City will not file a Project Sponsor's CDLAC application unless the Project Sponsor executes a Deposit and Escrow Agreement and makes the necessary deposits specified in this Agreement. The Deposit and Escrow Agreement shall contain the items identified below. It shall be the responsibility of the Housing Department to see that all requirements under the Deposit and Escrow Agreement are met.
1. CDLAC Performance Deposit
The Deposit and Escrow Agreement must require the payment of the CDLAC performance deposit, provided that current CDLAC rules require the payment of such deposit to the issuer.
2. City of San José Performance Deposit
In addition to the CDLAC performance deposit, the Deposit and Escrow Agreement shall require the Project Sponsor to deposit $50,000 with the City as a City of San José performance deposit. This deposit shall be forfeited in the event that the City, on behalf of the Project Sponsor, receives an allocation but does not issue bonds. The deposit may be applied to pay costs of issuance or returned to the Project Sponsor as soon as practicable. By agreement between the City and the Project Sponsor, the Project Sponsor may designate its City loan as the source of payment in the event of forfeiture.
3. Financing Team Fees
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The Deposit and Escrow Agreement shall identify, if available, the fees of the bond counsel, municipal advisor , and underwriter (if applicable). It shall be the responsibility of the Finance Department and the City Attorney's Office to identify these fees.
IV. CITY COUNCIL APPROVAL
A. Staff Report
The Finance Department, in conjunction with the Housing Department and City Attorney's Office, shall prepare a staff report recommending final City Council approval for a bond issuance by the City. The staff report shall be submitted to the City Manager's Office in accordance with the timing requirements of the then - current City procedures.
The staff report shall specify the approvals that are recommended, provide background on the project being financed, describe the financing structure, describe the financing documents to be approved, identify the financing team participants, and seek appro val of consultant agreements and financing participants that have not previously been approved by Council. The staff report should indicate if a separate City loan is being provided. However, the terms of that loan should be discussed in a separate staff report which, whenever possible, shall be submitted for the same agenda. The staff report shall be signed by the Directors of Finance and Housing.
The staff report should be submitted only after the major transaction terms (e.g., financing structure, security provisions, bond amount, maximum maturity, etc.) are identified and agreed to by the parties. The staff report may note that the bond issuance is contingent upon certain other approvals and may identify certain issues to be resolved at a later time.
B. Substantially Final Documents
The City Council shall approve documents that are "substantially final" documents.
Documents are in "substantially final" form if they identify the final security provisions and financing structure for the transaction. The City Attorney's Office shall determine whether documentation is in substantially final form.
C. Council Meeting
The City Council meeting shall occur on a date after which all approvals from major financial participants (e.g., credit enhancement provider, bond purchaser, tax credit investor) have been obtained. At the discretion of the City Attorney and Finance Department, th e City Council may proceed with its approval process without such other final approvals if: (1) such final approval is likely; (2) the City
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Council's approval is subject to such other party's final approval; and (3) the City Council approval process cannot be delayed without jeopardizing the financing.
V. BOND SALE AND CLOSING
A. Timing
The bond sale and closing may commence only after the City Council authorizes the bond issuance, including the distribution of a Preliminary Official Statement, if applicable.
B. Investment Agreements
If authorized by the Council, the Project Sponsor, through its representative, which may include the underwriter or municipal advisor , may solicit investment agreement providers for the purpose of reinvesting bond proceeds and revenues.
The investment agreement providers must meet the City's requirements and the requirements in the bond resolution and trust indenture for the bonds. Bond counsel and the municipal advisor shall review the investment agreement solicitation forms, the eligible providers, and the investment agreements.
C. Payment of Issuance Fee
The City's issuance fee shall be funded from the Costs of Issuance Fund held by the Trustee.
D. Report to Council
The City Finance Department shall report activities related to multifamily housing revenue bonds in the quarterly Debt Management Report to the assigned City Council Committee and the City Council.
CITY FEES
I. TEFRA HEARING FEE
The City shall charge a fee of $5,000 for the administrative costs associated with holding a TEFRA hearing relating to a Project. The fee shall be payable prior to the date that notice of the TEFRA hearing is published. No separate TEFRA hearing fee shall be charged if the City is issuing the bonds for the Project.
II. ISSUANCE FEE
The City shall charge a fee for the administrative costs associated with issuing the bonds for a Project Sponsor. The fee shall be payable at bond closing and may be contingent
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on the bond sale. The issuance fee shall be based on the total amount of the bonds (both tax-exempt and taxable) to be issued in accordance with the following sliding scale:
$0 to $10 million: 0.525% of the principal amount of bonds issued, with a minimum fee of $3050,000.
Over $10 million: 0.5% of the first $10 million principal amount of bonds; 0.25% of any additional amount.
III. ANNUAL MONITORING FEE
The City shall charge an annual fee for monitoring the restricted units. The fee shall be in an amount equal to 0.125% of the original principal amount of tax-exempt bonds issued.
Except for non -profit or government agency Project Sponsors, the fee shall n ot be reduced until all of the tax-exempt bonds are retired and the bond regulatory agreement ceases to have validity or is no longer in effect, at which time it will terminate. Upon conversion to permanent financing, a nonprofit or government agency Proje ct Sponsor, may have a reduction in their annual fee to 0.125% of the permanent bond amount after conversion subject, to a minimum annual fee of $7,5005,000.
The City annual monitoring fee shall be paid "above the line," i.e., on a parity with bond debt service and trustee fees. This parity provides the greatest assurance that the City's fee will be paid, although it may reduce the amount that the Project Sponsor's lender may be willing to underwrite. The City may determine, at its sole discretion, to subordinate all or a portion of its annual fee to bond debt service only when the Housing Department has made a substantial loan to the Project, so long as the Project Sponsor provides adequate assurance of the payment of such fees. The City shall not subordinate its fee in circumstances where no City funds are subsidizing the Project.
CREDIT CONSIDERATIONS
I. CREDIT ENHANCEMENT
A. General Policy
It shall be the general policy of the City to encourage the use of credit enhancement for bonds issued by the City. Credit enhancement shall be a requirement for any multifamily bonds that are publicly distributed. The minimum rating on such credit enhancement shall be "A" or higher by Moody's, Standard & Poor's, and/or Fitch.
This policy shall be subject to the exceptions described below.
B. Forms of Credit Enhancement
Credit enhancement may be in the form of a bank letter of credit, bond insurance, surety, financial guaranty, mortgage -backed security (e.g., Fannie Mae, Freddie Mac or Ginnie Mae) or other type of credit enhancement approved by the market.
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If the City has not previously issued bonds with a particular kind of credit enhancement, the Finance Department and municipal advisor shall determine whether such credit enhancement is acceptable and whether marketing restrictions shall be imposed.
C. Project Sponsor Responsibility
It shall be the responsibility of the Project Sponsor to obtain and pay for the costs of credit enhancement. The City will assume no responsibility therefor.
II. NON-CREDIT ENHANCED BONDS
A. General Policy
It shall be the general policy of the City to require bonds that are not secured with credit enhancement to be sold through private placement or through a limited public offering to institutional or accredited investors. As an exception to this policy, the City may authorize the public distribution of non -credit enhanced bonds that are rated at least in the "A" category by Moody's, Standard & Poor's, and/or Fitch, after consultation with the underwriter and municipal advisor. In connection with such authori zation, the City shall consider the sophistication of the Project Sponsor, its financial resources, commitment to the community and other factors.
B. Additional Requirements for Non-Rated Bonds
Non-rated bonds must comply with the following additional requirements:
1. Minimum Denominations and Number of Bondholders
In order to limit the transferability of non -rated bonds, the City shall seek minimum denominations of at least $100,000. In addition, the City may also limit the number of bondholders to further limit the transferability of non -rated bonds.
2. Qualified Institutional Buyer ("QIB") Letter
The bond purchaser in a private placement or limited public offering must certify that it is a qualified or accredited investor ( aan "big boyinvestor letter"). Such letter must be signed by subsequent bond purchasers so long as the bonds remain unrated.
REFUNDING/, RESTRUCTURING/, AND REMARKETING
I. General
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The City has issued both fixed rate and variable rate multifamily bonds. On occasion, the Project Sponsor may ask the City to refund those bonds to lower the interest rate, to remarket the bonds with a new credit enhancement, and/or to remarket the bonds as fixed rate bonds. The Project Sponsor will be responsible for all costs and fees related to the refunding.
II. Optional Refunding
A. Reasons to Refund Outstanding Bonds
A Project Sponsor may ask the City to refund its outstanding bonds for one of several reasons:
1. Lower the interest rate on fixed rate bonds at the call date (through the issuance of fixed rate or variable rate refunding bonds);
2. Substitute a new credit structure that was not expressly provided for in the existing documents; or
3. Restructure the existing debt.
B. Financing Team
The City shall select the financing team to implement the refunding. Where possible and if desired by the City, the financing team shall consist of the bond counsel, municipal advisor and, if applicable, underwriter that were retained for the original financing.
C. Legal/Documentation
New documents shall be prepared to meet the City's then -current legal, credit, financial, and procedural requirements. The City shall follow the documentation process applicable to new bonds. Because the City's primary purpose in issuing multifamily housing bonds is to preserve and increase the supply of affordable housing in the City, if federal or state affordability, income, and/or rent restrictions have changed between the time of the original financing and the refunding bonds, the more restrictive provisions shall apply. If new requirements are more restrictive than existing requirements, the new requirements shall be applied in phases to new tenants over a period of time, not to exceed five (5) years, as determined by the Housing Department staff and the City Attorney.
D. Bond Maturity
Subject to the approval of bond counsel, the final maturity of the refunding bonds may be later than the final maturity of the prior bonds so as to allow the Project Sponsor the longest possible period for repayment under federal law.
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E. Compliance
The City shall not proceed with a refunding if the Project is not in compliance with the current regulatory agreement, continuing disclosure reporting, or arbitrage rebate reporting and payment.
F. Fees
The Project Sponsor shall pay the following City fees in connection with the refunding:
1. Issuance Fee
The City shall charge an issuance fee in accordance with the City's current policy on issuance fees for new projects.
2. Annual Monitoring Fee
The City shall continue to charge the same annual fee for monitoring the Project as for the original bonds. Such fee shall not be reduced even if the refunding bond size is lower.
G. Cash Flow Savings
Cash flow savings from refunding fixed rate bonds at a lower fixed interest rate or a variable rate shall be applied as follows:
1. Projects with a City Loan
A portion of the projected cash flow savings, to be determined by the Housing Department, shall be used to accelerate the repayment of the City loan, subject to restrictions in existing documents.
2. Projects with No City Loan
The City Housing Department shall require the Project Sponsor to provide affordability or other financial concessions to the City as a condition for refunding. Such concessions may include increasing the percentage of affordable units and extending the term of affordability restrictions.
H. City Council Approval
All refunding bonds and related legal documentation must be approved by the City Council in accordance with the procedures set for the issuance of new bonds.
III. DEFAULT REFUNDING
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A. General
In the event of a default on the bonds or the underlying mortgage, a fixed rate bond issue may be refundable in advance of the call date without premium. The issue does not arise with variable rate bonds, as such bonds are callable at any time.
Default refunding bonds are an area of potential sensitivity for the City as it will not want a developer to manufacture a default to take advantage of more favorable interest rates.
B. Financing Team
The City shall select the financing team to implement the refunding. Where possible and if desired by the City, the financing team shall consist of the bond counsel, municipal advisor and, if applicable, underwriter that were retained for the original financing.
C. Confirming the Default
To confirm a default, the City must receive a notice from an independent party, such as the bond trustee. If applicable, notice of cash flow insufficiency is then filed as part of the Continuing Disclosure Certificate. In addition, the City shall retain, at the expense of the Project Sponsor, an independent feasibility consultant to review the default. The City will proceed with the transaction only if a review by staff and the independent consultant indicates that:
1. Net cash flow from the Project is currently insufficient to pay debt service on the outstanding bonds and is unlikely to do so within a reasonable period;
2. The Project is being operated in accordance with reasonable real estate management practices and the net operating income has not been artificially reduced by failing to rent units actively, inflating operating expenses, or other reasons within the control of the Project Sponsor; and
3. The Project Sponsor has provided audited operating statements, Continuing Disclosure filings (if applicable), and arbitrage rebate reports for all years, has cooperated in providing requested information, and has used operating income and other resources to pay debt service.
D. Additional Requirements
1. Indemnification
The City shall be indemnified as to any costs incurred as a result of the refunding. Such indemnification shall come from a party or parties with adequate net worth or other financial capacity and whose assets are not limited to ownership of the Project.
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2. Future Debt Coverage
The analysis of the feasibility consultant shall show that, upon the refunding, the Project's current net operating income will be at least sufficient to pay the revised debt service plus a reasonable coverage ratio (or adequate non-bond proceeds will be available to cover such deficiencies). In other words, the City shall not proceed with the refunding if it will not cure the cash flow problem.
3. Bond Counsel Review
Bond counsel shall have determined that the original bond and disclosure documents provided adequate disclosure of such a potential redemption and that the provisions of the prior documents have been satisfied.
4. Compliance
The City shall not proceed with a refunding if the Project is not in compliance with the current regulatory agreement, continuing disclosure reporting, or arbitrage rebate reporting and payment.
E. Fees
The fees and expenses of the feasibility consultant, municipal advisor and bond counsel shall not be contingent on their findings or completion of a refunding. The City shall require that the Project Sponsor deposit the estimated fees and expenses with the City prior to the commencement of any analysis.
F. Affordability Restrictions
The affordability requirements for a default refunding shall be the same as those listed under "Legal/Documentation" for an optional refunding.
G. City Council Approval.
1. Initial City Council Approval
The Finance Department, in conjunction with the Housing Department and City Attorney's Office, shall obtain initial City Council approval prior to proceeding with any documentation for a default refunding. Initial City Council approval shall occur after th e independent feasibility consultant performs the initial analysis, a default is confirmed, and it is determined that a refunding will cure the cash flow problem.
2. Final City Council Approval
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The Finance Department, in conjunction with the Housing Department and City Attorney's Office, shall obtain final City Council authorizing the bond issue and execution of the relevant documentation.
H. City Fees
The City shall charge the same issuance fee and annual monitoring fee that it otherwise would in conjunction with a new bond issue.
IV. REMARKETING
A. General
A Project Sponsor may ask the City to remarket outstanding bonds under one of three basic scenarios:(1) converting variable rate bonds to fixed rate bonds; (2) a mandatory tender of bonds; or (3) substituting a new credit enhancement for the bonds in accordance with existing documentation.
B. Financing Team
The City shall select the financing team to implement the refunding. Where possible and if desired by the City, the financing team shall consist of the bond counsel, municipal advisor and, if applicable, underwriter that were retained for the original financing.
C. Legal/Documentation
A remarketing of fixed rate bonds will not require new legal documentation.
However, the City Attorney's Office, in conjunction with bond counsel, may require a new disclosure document. A remarketing of bonds with a new credit enhancement may require amended documentation, as well as a new disclosure document, as determined by the City Attorney's Office and bond counsel.
D. Fees
A remarketing will not result in the payment of additional or revised City issuance or annual fees. However, the City shall charge a fee of $10,000 to $25,000 to the Project Sponsor for administrative costs.
E. Council Approval
All remarketed bonds and any related documentation shall be approved by the City Council prior to any remarketing.
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V. ELIGIBLE PROJECTS
A. Location
Projects must be located within the incorporated limits of the City (unless subject to an inter-agency cooperation agreement or similar).
B. Transaction Size
There is no statutory maximum or minimum. Feasible transaction size shall be determined by economics specific to the proposed project and issuance.
C. Priority Projects
Financings will be scheduled based on readiness -to-proceed. When multiple applications compete for limited volume cap, projects will be prioritized per the Director of Housing. Current priorities include the following:
1. Developments with City subordinate debt or land contribution.
2. Projects leveraging substantial non-City subsidy.
3. Preservation transactions preventing loss of existing affordability.
4. Permanent supportive housing and projects serving persons experiencing homelessness.
VI. TRANSFERS OF OWNERSHIP
Any voluntary transfer of direct or indirect interests of greater than 50 percent, or any change in the managing general partner, requires City consent. The incoming owner must demonstrate three years' experience with affordable housing, acceptable compliance history, and financial capacity. Limited-partner investor exits are excluded.
VII. SPECIAL & POOLED FINANCINGS
The City may participate in multi-jurisdictional or pooled issuances where the Director of Finance and Director of Housing jointly determine that economies of scale provide demonstrable benefit and the City's policy objectives are preserved. Approval by City Council is required.
VIII. ALTERNATIVE BOND STRUCTURES
The Director of Finance, in consultation with the Director of Housing, may consider alternative bond structures not specifically addressed by this policy, provided that such
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alternative structures meet the City's objectives without materially increasing the City's credit risk or compromising public benefits.
Alternative structures proposed by Project Sponsors must be submitted for City review at least 60 days prior to the anticipated CDLAC application filing date. Approval will require explicit findings that the structure achieves equivalent or superior financial and affordability outcomes compared to standard financing structures.