TITLE
Recommendation to receive supporting documentation into the record regarding the Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing; and adopt resolution approving the issuance of revenue bonds by the California Municipal Finance Authority (CMFA) to benefit Southern California Presbyterian Homes, Covenant Manor Multifamily Housing, in an amount not to exceed $15,000,000. (District 1)
DISCUSSION
Southern California Presbyterian Homes, which is doing business as the be.group, is one of the country's largest nonprofit providers of senior living communities and has requested the CMFA to issue bonds on its behalf in an aggregate amount not to exceed $15,000,000. The CMFA is a joint exercise of powers authority, consisting of over 175 California cities, counties and special districts, whose mission is to support economic development, job creation and social programs throughout the State of California while giving back to California communities.
The CMFA will issue tax-exempt debt, which will be loaned to Covenant Manor, LP, to finance the acquisition and rehabilitation of a 100-unit multifamily rental senior housing facility located at 600 E. 4th Street to be known as the Covenant Manor.
The Internal Revenue Code requires that CMFA seek approval from the City Council in order for the bonds to be issued which will benefit facilities within the City. A TEFRA public hearing notification was published in the Press-Telegram on June 26, 2013. The TEFRA hearing was held on July 11, 2013 at 1:00 p.m. The public hearing, required by Federal tax law regulations, was conducted by the City Treasurer in the sixth floor conference room of City Hall. No public comment was presented at the hearing.
This matter was reviewed by Deputy City Attorney Richard Anthony on June 20, 2013 and by Budget Management Officer Victoria Bell on June 24, 2013.
TIMING CONSIDERATIONS
City Council action is requested on August 6, 2013 to facilitate CMFA’s forthcoming debt issu...
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