Staff recommends that the City Council: 

1. Conduct a Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax-exempt bond financing by the California Statewide Communities Development Authority (CSCDA) for the benefit of Fiddyment Affordable Partners, L.P., to provide financing for the acquisition, construction, improvement, and equipping of a 94-unit multifamily rental housing project generally known as Hayden Parkway Apartments; and

2.  Adopt a resolution approving the issuance of Bonds by the CSCDA not to exceed $28,000,000, for the benefit of Fiddyment Affordable Partners, L.P., to provide financing for the acquisition, construction, improvement, and equipping of a 94-unit multifamily rental housing project generally known as Hayden Parkway Apartments.

Fiddyment Affordable Partners, L.P. (the Borrower) has requested that the CSCDA serve as the municipal issuer of tax-exempt multi-family housing revenue bonds in an aggregate principal amount not to exceed $28,000,000 (the Bonds).  The proceeds of the Bonds will be used for the purpose of CSCDA making a loan to the Borrower, to enable the Borrower to finance the acquisition, construction, improvement and equipping of a 94-unit affordable multifamily housing rental project located at North Hayden Parkway and Crawford Parkway, in Roseville, California (the Project), which will be owned and operated by the Borrower. 

On June 15, 2022 the Project received an award of private activity bond allocation from the California Debt Limit Allocation Committee.  The Project will contain a mix of one, two, and three-bedroom units ranging from 638 sq. ft. to 1,130 sq. ft., and limited to those earning less than 60% of the area median income.  The Project is organized around a communal, landscaped amenity space, anchored by a one-story community clubhouse complex. Amenities will include a community room, pool, outdoor barbecue, on-site service coordinator, after-school care for school-age children during the school year, and green space for outdoor activities. Construction of these units assists the City in meeting its Regional Housing Needs Allocation (RHNA) from the State of California and offers affordable housing opportunities to the local workforce and community. The City's Affordable Rental Housing Agreement (ARHA) for the affordable units will return to the City Council for action prior to the issuance of building permits for this project.

In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City must conduct a public hearing providing the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project.  Adoption of the attached resolution is solely for the purposes of satisfying the requirements of the Tax Equity and Fiscal Responsibility Act (TEFRA), the Internal Revenue Code and the California Government Code Section 6500 et seq.  Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community.  Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project. 

CSCDA is a joint powers authority sponsored by the League of California Cities (League) and the California State Association of Counties (CSAC).  CSCDA was created by the League and CSAC in 1988 to enable local government and eligible private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California.  CSCDA is comprised of more than 530 members, including the City of Roseville.  CSCDA has issued more than $70 billion through 1,800+ financings since 1988 and consistently ranks in the top 10 of more than 3,000 nationwide public issuers of tax-exempt debt, as measured by annual issuance amount.

There is no fiscal impact to the City.  The Bonds will be issued as limited obligations of CSCDA, payable solely from revenues and receipts derived from a loan to be made by CSCDA to the Borrower with the Bond proceeds. The City bears no liability with respect to the issuance of the Bonds.  Further, the City is not a party to any of the financing documents related to the Bond issuance and is not named in any of the disclosure documents describing the Bonds or the proposed financing.

Environmental review for the Hayden Parkway project is occurring independent of this particular action, which is solely regarding tax-exempt bond financing.  The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060 (c)(3) and §15378. Adoption of the resolution meets the above criteria and is not subject to CEQA. No additional environmental review is required. 

Goal F - Invest in well-planned infrastructure and growth

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Dominick Casey, City Manager