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Date: |
September 15, 2026 |
10 |
Title
Approving the Issuance of Bonds by the California Municipal Finance Authority to Finance or Refinance the Acquisition of and Improvements at Promenade Apartments (District: 4)
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 $40,000,000 (the “Bonds”), for the benefit of CRP Promenade LP (the “Borrower”) or a partnership of which CRP Affordable Housing and Community Development LLC (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, construction, improvement and equipping of Promenade Apartments, an approximately 95-unit (including one manager unit) multifamily rental housing project located at 3990 & 3972-3986 Cleveland Avenue, San Diego, California 92103 (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 26, 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 OF CALIFORNIA MUNICIPAL FINANCE AUTHORITY EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $40,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF PROMENADE APARTMENTS
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Equity Impact Statement
This financing will help in the acquisition, construction, improvement and equipping of an approximately 95-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 94 low-income households in San Diego County. This financing will contribute to the County’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 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
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
The facilities will be owned by CRP Promenade LP (the “Borrower”) or a partnership of which CRP Affordable Housing and Community Development LLC (“CRP Affordable” or “Developer”) or a related person to the Developer is the general partner.
CRP Affordable was founded with the principles of providing quality affordable housing and strengthening communities. The founders of CRP Affordable have owned, operated, developed, and managed over 2,500 rent restricted units and have significant experience providing housing to at-risk, special needs, seniors, and other vulnerable populations. CRP Affordable has successfully partnered with non-profit, government, and community organizations to support individuals and families in need. CRP Affordable is a full-service, vertically integrated real estate firm with significant experience in multifamily acquisition/rehabilitation, ground-up development and property management. CRP Affordable’s reputation and relationships, earned from a decade in real estate, allow it to provide housing solutions to underserved communities.
Project
Promenade Apartments is a proposed 95-unit new construction multifamily development located in San Diego, CA. The unit mix consists of 33 one-bedroom, 34 two-bedroom, and 28 three-bedroom units including one non-restricted manager unit. The property will target tenants earning between 30% -70% Area Median Income (AMI), 40 units at 70% AMI, 34 units at 60% AMI, 10 units at 50% AMI, and 10 units at 30% AMI. Amenities include a community room, laundry room, leasing area, and tot lot area. LifeSTEPS will provide resident service coordination to the residents of the property. There will be instructor-led adult educational classes such as health and wellness, financial literacy, computer training, and home-buyer education courses.
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 Daily Transcript on August 18, 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 26, 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, construction, improvement 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