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Date: |
September 15, 2026 |
11 |
Title
Approving the Issuance and Reissuance of Bonds by the California Municipal Finance Authority to Finance or Refinance the Acquisition of and Improvements at Seaward Affordable Apartments (District: 1)
End
Overview
The County of San Diego (“County”) has received a request from the California Municipal Finance Authority (“CMFA” or “Authority”) to approve the Authority’s issuance of exempt facility bonds in an aggregate principal amount not to exceed $20,000,000 (the “Bonds”), for the benefit of Mirka Seaward, LP, a California limited partnership (the “Borrower”) or a partnership of which Mirka Investment, LLC, a California limited liability company (the “Developer”) or a related person to the Developer is the general partner. The Borrower has requested that the Authority participate in the issuance of the Bonds to finance or refinance the acquisition, development, construction and equipping of an approximately 70-unit (including one manager unit) multifamily rental housing project located within the county at 158 W. Seaward Avenue, San Ysidro, California 92173, known as Seaward Affordable Apartments (the “Project”).
The Authority is authorized to assist in financing for nonprofit public benefit organizations or for-profit corporations with a public benefit project wishing to issue exempt facility bonds, including the Borrower. In order to initiate such a financing, the Borrower is asking the County, a member jurisdiction in which the project resides to approve the Authority’s issuance of the Bonds. Although the Authority will be the issuer of the Bonds for the Borrower, the financing cannot proceed without the approval of an applicable legislative body.
Pursuant to Section 147(f) of the Internal Revenue Code, a public hearing was held on August 31, 2026. There were no comments from the public at that hearing.
Today’s recommendations will provide the Authority with the required authorization to pursue its determination to issue the Bonds on behalf of the Borrower for the Project.
Body
Recommendation by Chief Administrative Officer:
Adopt a Resolution entitled:
RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO APPROVING THE ISSUANCE AND REISSUANCE OF CALIFORNIA MUNICIPAL FINANCE AUTHORITY EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000 FOR THE PURPOSE OF FINANCING AND/OR REFINANCING THE ACQUISITION, DEVELOPMENT, CONSTRUCTION, AND EQUIPPING OF A QUALIFIED RESIDENTIAL RENTAL PROJECT TO BE KNOWN AS SEAWARD AFFORDABLE APARTMENTS
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Equity Impact Statement
This financing will help in the acquisition, development, construction and equipping of an approximately 70-unit (including one manager unit) multifamily rental housing project. The obligations will assist the Borrower to offer low-income living arrangements for households in San Diego County.
Sustainability Impact Statement
The proposed action would result in economic benefits for the community by allowing the borrower to serve 69 low-income households in the San Diego County. This financing will contribute to the County of San Diego’s (County) Sustainability Goal No. 2, providing just and equitable access, by increasing investment in underserved communities of San Diego County. The project also incorporates sustainable design features and practices to minimize its environmental impact and promote resource conservation. These initiatives include energy-efficient building systems, renewable energy sources, water-saving fixtures, and eco-friendly landscaping practices, which aligns with the County’s Sustainability Goal No. 7.
Fiscal Impact
If approved, the proposal will result in approximately $991 of unanticipated revenue to be used to reimburse the County for staff costs associated with this non-County financing. There will be no change in net General Fund cost and no additional staff years.
The Borrower will be responsible for the payment of all present and future costs in connection with the issuance of the financing related to the Project. The County will incur no obligation of indebtedness as a result of today’s actions.
Business Impact Statement
N/A
Advisory Board Statement
The Debt Advisory Committee, composed of the Chief Financial Officer, the Auditor and Controller, and the Treasurer-Tax Collector, concurs with this recommendation.
Background
California Municipal Finance Authority (“CMFA” or “Authority”)
The CMFA provides tax-exempt financing for qualified projects located throughout the State of California. The Authority’s mission is to support economic development, job creation, and social programs throughout the State. By assisting nonprofit corporations and/or for-profit entities with various tax-exempt financing programs, the Authority is able to support programs that improve the health and welfare of California residents. The Authority finances a broad range of facilities including nonprofit projects such as education, health care and cultural facilities, affordable multi-family and senior housing, manufacturing facilities and equipment, solid waste, water, wastewater treatment facilities and infrastructure projects and government sponsored financing.
Borrower
Mirka Seaward, LP, a California limited partnership created by Mirka Investment, LLC (“MirKA” or the “Developer”) is a single purpose entity to own the Seaward Affordable Apartments Project.
MirKa with its strategic partners, develops and manages affordable multifamily rental housing communities. MirKa has 16 years of experience overseeing the acquisition, predevelopment, development, construction, operations, and asset management of a multitude low-income affordable housing projects, including but not limited to large-family, senior, and special needs.
In addition to their expertise in project and financial engineering and planning, the team at MirKa has taken numerous projects from conception to completion, assembling and managing multidisciplinary project teams, including architects, engineers, general contractors, attorneys, appraisers, lenders, tax credit equity investors, property managers, supportive service providers, capital providers, community-oriented non-profit organizations, and property management companies.
Project
Seaward Affordable Apartments, situated at 158 W. Seaward Ave, is an affordable housing development located in San Diego, CA. This project seeks to address the critical shortage of affordable housing in the region by offering 70 units (including one manager unit), in a 7-story building, tailored to meet the needs of seniors with low-income levels. Comprising of 25 one-bedroom units, 25 two-bedroom units, and 20 three-bedroom units, the development is committed to ensuring affordability by providing units with varying levels of rent based on an individual's income, 55 units at 60% Area Median Income (AMI), 7 units at 50% AMI, and 7 units at 30% AMI. Additionally, the project includes one dedicated manager unit to support on-site management and operational needs, ensuring a high standard of service and care for residents. Residents will also have access to a range of on-site amenities and facilities, including community spaces for social gatherings and events, an on-site management office, and landscaped outdoor areas for recreation.
County Involvement
Section 147(f) of the Internal Revenue Code (the “Code”) requires that an applicable elected body over the jurisdiction where the Project is located within, approve the reissuance and delivery of the Bonds following a public hearing therefore. The County, as an applicable elected body, is requested to approve the issuance of Bonds. The Borrower shall be responsible for the payment of all present and future costs in connection with the issuance of the Bonds.
The Authority is seeking approval of the resolution from the County pursuant to Section 147(f) of the Code for this issuance.
The Authority published a notice of public hearing in the Union Tribune on August 24, 2026, which is designed to inform members of the general public about public hearings to be held by the Authority, pursuant to Section 147(f) of the Code. The notice listed August 31, 2026 as the public hearing date with respect to the issuance of the Bonds for the Project.
Linkage To The County Of San Diego Strategic Plan
Today’s proposed action supports the Equity: Housing Strategic Initiative in the County of San Diego’s 2026-2031 Strategic Plan by supporting and allowing the issuance of exempt facility bonds by California Municipal Finance Authority for the Borrower to finance and/or refinance the acquisition, development, construction and equipping of a multifamily rental housing project located within the county.
Respectfully submitted,
Ebony N. Shelton
Chief Administrative Officer
Attachment(s)
1. Attachment A - Resolution
2. Attachment B - Transcript of Public Hearing
3. Attachment C - Proof of Notice of Public Hearing
4. Attachment D - CMFA Project Application for Bonds