TEFRA PUBLIC HEARING
DEL NIDO APARTMENTS
850 RUSSELL AVENUE
March 10, 2026
Housing and Community Services
Angela Morgan
Program Specialist
Tax Equity and Fiscal Responsibility Act
(“TEFRA”), and Internal Revenue Code of 1986
• Jurisdictions are required to hold a public hearing and receive public comment.
• Jurisdictions are required to approve the bond issuance prior to an award by the state.
• No fiscal impact on the General Fund – all financial costs and repayment obligations are the responsibility of the borrower.
March 10, 2026
1 Background
• On April 16, 2024, City Council, by Resolution RES-2024-060, approved the issuance of revenue bonds by CMFA in an aggregate principal amount not to exceed $55 million for the Project. • The prior approval on April 16, 2024 (Resolution RES-2024-060), was approved without a plan of finance and has expired.
• The requested $5 million amount remains within the original $55 million authorization, but a new hearing and approval are required under Section 147(f) of the tax code due to the one year expiration of the initial approval.
March 10, 2026
2 Background
Background
Project Site:
• 850 Russell Avenue
• Northwest Santa Rosa
• Corner of Range Avenue
and Russell Avenue
• Built 1971
March 10, 2026
3 Background
March 10, 2026
4 Project
• 206-unit affordable rental housing development
• 30 units targeted to households with income up to 30% of Area Median Income (“AMI”), 8 units targeted to households at 50% AMI, 166 units targeted to households at 60% AMI, and 2 unrestricted manager units
• 59 studios and 145 one-bedroom units
Recommendation
The Housing and Community Services Department recommends that the Council: (1) conduct a public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act and the Internal Revenue Code of 1986, as amended; and (2) by resolution, approve the issuance of tax exempt multifamily housing revenue bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $5 million to finance and refinance a portion of the cost of the acquisition, construction, development, and equipping of Del Nido Apartments, 850 Russell Avenue within the City of Santa Rosa. This item has no impact on current fiscal year budget.
March 10, 2026
5 Questions?