Council approves TEFRA hearing for LTrudy 2 senior housing financing
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Summary
Council held a TEFRA hearing and approved a resolution allowing up to $25 million in tax-exempt bond issuance to support the LTrudy 2 senior apartment project; the city bears no financial liability for the bonds.
The City Council held a TEFRA hearing July 15 and approved a resolution allowing the issuance of up to $25,000,000 in tax-exempt revenue bonds by the California Municipal Finance Authority to finance acquisition and construction of the LTrudy 2 senior apartment project.
Why it matters: The federal tax rules that govern tax-exempt bonds require a public hearing (TEFRA) by the local government where the project is located. The council approved the TEFRA finding on a unanimous vote; staff and the developer said the action does not place the city on the hook for bond repayment.
City Manager Mark Malone and Community Development Director Nate Farnsworth summarized the project and the purpose of the hearing: the bonds would help the developer, CNC Development, with financing for a senior multifamily rental project that is part of the LTrudy 2 development. Farnsworth emphasized the city's fiscal exposure is limited and that the TEFRA approval is required to meet federal and state legal requirements for tax-exempt financing.
No public comments were received on the item at the hearing; after a brief presentation the council voted 5-0 to approve the resolution to proceed with the financing process.
Next steps: The developer will proceed with bonding and other required financing steps; the city retains oversight through required reporting and the usual planning and permitting process.