1318 4
th Street (FKA PS3)
TEFRA Hearing
August 11, 2026
Item 12-A
August 11, 2026
Item 12-A
August 11, 2026
2 Development Overview
• Proposed 122-unit affordable housing development
• Including 50 residences for permanent supportive housing • Location: 1318 4th Street
• Developer: EAH, Inc.
Upcoming Milestones
• September 2026: Construction Financing Closing
• October 2026: Construction Commencement
Item 12-A
August 11, 2026
Item 12-A
August 11, 2026
3 Purpose of TEFRA Hearing
• Required under IRS and the Tax Equity and Fiscal Responsibility Act (TEFRA) for tax-exempt bonds
• Allows California Municipal Finance Authority (“CMFA”) to issue up to $80M in revenue bonds
• City approval is procedural
• No financial obligation or liability to the City
• Bonds are solely the responsibility of the Borrower
Item 12-A
August 11, 2026
Item 12-A
August 11, 2026
4 Recommended Actions
Staff recommends that the City Council:
1) Hold a public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended; and 2) Determine that the development of affordable housing at 1318 Fourth Street was previously analyzed in the 6th Cycle Housing Element Environmental Impact Report (SCH#2020100575), and the issuance of the TEFRA bond for this project has no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (“CEQA”) Guidelines.
3) Adopt a resolution approving the issuance of bonds by the California Municipal Finance Authority in an amount not-to-exceed $80,000,000 for the benefit of 1318 4th Street LP, to finance and refinance the acquisition, development, construction and equipping of a 122-apartment multifamily rental housing development to be owned and operated by the 1318 4th Street, L.P. and to be located at 1318 4th Street, Santa Monica, CA (Attachment A).
Item 12-A
August 11, 2026
Item 12-A
August 11, 2026