TEFRA Hearing
245 Weddell
Ryan Dyson, Housing Specialist II
City Council, September 15, 2026
2City of Sunnyvale – 245 Weddell TEFRA Hearing – September 2026 • TEFRA = Tax Equity and Fiscal Responsibility Act
Requires public hearing prior to issuance of tax-exempt bonds for a project Must take place in governing body of jurisdiction where project is located Governing body must adopt a resolution approving bond issuance • Legally Required Public notice published on September 4, 2026 in Sunnyvale Sun
TEFRA Hearing
3City of Sunnyvale – 245 Weddell TEFRA Hearing – September 2026 • Developer: Santa Clara County Housing
Authority (SCCHA)
• Existing project: Orchard Gardens
61 affordable units
1 manager unit
• Proposed project: 245 Weddell
(development may be renamed)
121 affordable units
• 31 Permanent Supportive Housing units
2 manager units
245 Weddell Development
4City of Sunnyvale – 245 Weddell TEFRA Hearing – September 2026 • City Housing Mitigation Fund
(HMF) commitment
$7.5M in 2020
$2.5M in 2022
• Under review for building permit
• Estimated Construction Start:
November 2026
245 Weddell Development
5City of Sunnyvale – 245 Weddell TEFRA Hearing – September 2026 • California Municipal Finance
Authority (CMFA) to issue up to
$70M in bonds
CMFA is a joint powers authority
formed to assist local governments
and other entities with bond
issuance
• Bond proceeds are loaned to SCCHA
for the project
• Bond debt is the sole responsibility
of SCCHA
Tax-Exempt Bond Financing
6City of Sunnyvale – 245 Weddell TEFRA Hearing – September 2026 Considerations
Tax-Exempt Bond Financing
• No fiscal impact to the City
City has no financial or legal obligations or responsibilities regarding repayment of debt
All financing documents will carry disclaimers that the loan is not an obligation of the City
City will bear no costs in the issuance of the debt
A portion of the issuance fee is payable to the City (~$20,000) • Integral to the success of this affordable housing project 7City of Sunnyvale – 245 Weddell TEFRA Hearing – September 2026 Staff Recommendation
Recommendation
• Alternative 1
Conduct a public hearing pursuant to the Tax Equity and Fiscal Responsibility Act and the Internal Revenue Code of 1986, as amended, and Adopt the Resolution (Attachment 1 to the report) approving the issuance of the Bonds by the California Municipal Finance Authority for the benefit of 245 Weddell LP , to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Internal Revenue Code and the California Government Code Section 6500 (and following).