SUBJECT
Title
APPROVING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $40,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION AND REHABILITATION OF THE QUALIFIED RESIDENTIAL RENTAL 707 BY VINTAGE APARTMENT PROJECT (DISTRICT: 1)
Body
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 $40,000,000 (the “Bonds”), for the benefit of Vintage Housing Holdings LLC, a California limited liability corporation (the “Borrower”). The Borrower has requested that the Authority participate in the issuance of the Bonds to finance or refinance the acquisition and rehabilitation of a 202-unit (including a two manager’s units) multifamily rental housing project located within the County at 707 Broadway, San Diego, California, 92101 (collectively, 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 revenue 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 March 3, 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.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
Adopt a Resolution entitled:
RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO APPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE OUTSTANDING PRINCIPAL AMOUNT NOT TO EXCEED $40,000,000 TO FINANCE AND REFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE BENEFIT OF VINTAGE HOUSING HOLDINGS, LLC (OR AN AFFILIATE), AND CERTAIN OTHER MATTERS RELATING THERETO
EQUITY IMPACT STATEMENT
This financing will help in the creation of quality, affordable housing for 200 low-income households in San Diego County. The bonds issued will be used to finance or refinance the acquisition and rehabilitation of a multifamily rental housing project located at 707 Broadway, San Diego, California 92101. 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 200 low-income households in San Diego County. This financing will contribute to the County of San Diego’s Sustainability Goal No. 2, providing just and equitable access, by increasing investment in underserved communities of San Diego County.
FISCAL IMPACT
If approved, the proposal will result in approximately $991 of unanticipated revenue to be used to reimburse the County of San Diego (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 reissuance 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
Details
ADVISORY BOARD STATEMENT
The Debt Advisory Committee, composed of representatives from 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
The Project is to be owned and operated by 707 by Vintage, LP, or a limited partnership of which Vintage Housing Holdings, LLC (the “Sponsor”), or a related person to the Sponsor is the general partner. Vintage Housing, along with partner Kennedy Wilson, specializes in the development and operation of affordable housing in the Western United States. Through affordable housing tax credits and other state and federal financing resources, they offer apartment homes with a wide range of amenities to income-qualified families and active seniors. Vintage Housing is committed to constructing affordable and family serving properties that provide new opportunities and programs that enhance the lives of families and retired seniors.
Vintage Housing’s apartments for seniors offer quality affordable retirement housing for independent, active seniors ages 55 and older. Additionally, a specified number of units in various locations are made available for seniors with disabilities. Affordable retirement communities are handicap accessible and designed exclusively for seniors and include a wide range of amenities. Their senior living communities are often within walking distance to shopping and public transportation routes.
Project
The 707 by Vintage Apartment project is an adaptive reuse project that will offer 202 units (including a two manager’s units) of 100% affordable housing situated in an 18-story converted office building on 1.04 acres in the heart of downtown San Diego. The project includes 200 unassisted, long-term rent-restricted affordable housing units ranging from 30% Area Median Income (AMI) to 70% AMI, and 2 unrestricted manager’s units. The project will include 200 parking spaces in the adjacent parking garage structure (existing) and 18 stories of Type III housing with a variety of key amenities, including a gym, community space, and service offices.
County Involvement
Section 147(f) of the Internal Revenue Code (the “Code”) requires that an applicable elected body, with respect to the Project, approve the reissuance and delivery of the Bonds following a public hearing therefore. The Board of Supervisors of the County of San Diego (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 February 17, 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 March 03, 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 or refinance the acquisition and rehabilitation of a multifamily rental housing project located within the County.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT(S)
1. RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO APPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE OUTSTANDING PRINCIPAL AMOUNT NOT TO EXCEED $40,000,000 TO FINANCE AND REFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE BENEFIT OF VINTAGE HOUSING HOLDINGS, LLC (OR AN AFFILIATE), AND CERTAIN OTHER MATTERS RELATING THERETO
2. TRANSCRIPT OF PUBLIC HEARING
3. PROOF OF NOTICE OF PUBLIC HEARING
4. CMFA PROJECT APPLICATION FOR BONDS