DATE:
April 8, 2025
17
TO:
Board of Supervisors
SUBJECT
Title
NOTICED PUBLIC HEARING (TEFRA): REAPPROVE THE ISSUANCE OF FACILITY BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE BENEFIT OF CORALLINA CIC, LP AND ITS SUBSIDIARIES, IN AN AGGREGATE AMOUNT NOT TO EXCEED $6,000,000 (DISTRICT: 3)
Body
OVERVIEW
The County has received a request from the California Municipal Finance Authority ("CMFA" or the "Authority") to conduct a public hearing as required by the Internal Revenue Code and to reapprove the Authority's issuance of one or more series of facility bonds in an aggregate principal amount not to exceed $6,000,000 (the "Bonds"), to finance or refinance the acquisition, construction and development of a multifamily rental housing project to consist of 15 units of affordable housing plus 1 manager's unit located at 6155 Carmel Valley Road, San Diego, California (the "Project").
The Board of Supervisors previously held a Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") hearing and approved a TEFRA resolution for this financing on March 2, 2021 (9). The project has since finished construction and houses tenants earning at or below 50% - 60% Area Median Income. The Corallina at Pacific Highlands Ranch project is seeking a loan extension. Because the project was financed with a loan of tax-exempt proceeds from the Authority to the Borrower, any extensions of that loan are evaluated for consistency with federal tax laws. The current loan extension will cause a reissuance and to maintain the current tax-exempt status, there are specific requirements, including a TEFRA approval.
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. The Borrower is asking the County of San Diego, a member jurisdiction in which the project resides to: (1) conduct a public hearing to satisfy the public...
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