BACKGROUND
The Borrower has requested that the CMFA adopt a plan of financing providing for the issuance of multifamily housing revenue notes or bonds (the “Bonds”) in one or more series at no time to exceed $85,000,000 in outstanding aggregate principal amount, to finance the acquisition, construction, improvement and equipping of a multifamily rental housing project, plus ancillary and subordinate facilities located at 3440 Westbrook Blvd. and 1040 Lower Bank Drive, Roseville, California, to be known as Terracina at Westpark, which Project will be operated by the Borrower.
In order for all or a portion of the Bonds to qualify as tax-exempt Bonds, the City of Roseville must conduct a public hearing (the “TEFRA Hearing”) providing for 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. 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. 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.
California Municipal Finance Authority
The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities, including the City of Roseville, have become members of CMFA.
The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt Bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, or moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not Bonds of the City or the State of California but are to be paid for solely from funds provided by the Borrower.
Participation by the City in the CMFA does not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution, no other participation or activity of the City or the City Council with respect to the issuance of the Bonds will be required.