The Salinas City Council on May 13 held a TEFRA hearing and adopted a resolution to satisfy federal public hearing requirements for tax‑exempt financing proposed by the California Municipal Finance Authority (CMFA) on behalf of Curitas Affordable Housing, Inc.

A. Pedroza, acting assistant finance director, explained TEFRA (the Tax Equity and Fiscal Responsibility Act) requires a public hearing and a governing‑body resolution in jurisdictions where tax‑exempt bonds will finance projects. The CMFA is a joint powers authority that issues tax‑exempt revenue bonds on behalf of borrowers; the city will have no legal or financial obligation for the debt, Pedroza said, and financing documents will include disclaimers that the bonds are not obligations of the city.

Ben Barger, representing the CMFA, told the council the Salinas portion of the overall project (bond proceeds fund acquisition and improvements across multiple municipalities) covers approximately $30 million in local project costs and estimated the project at the Russell Road property would provide housing for about 67 families. The property in Salinas was referenced in the staff report as the California Hawaiian Project at 20 Russell Road (Franciscan Town and Country mobile home park).

Council members asked clarifying questions about the number of homes and the anticipated fee grant to the city. Staff and the CMFA representative said the city is not responsible for repayment of the bonds and that the fee grant to the city could be roughly $15,000 depending on total bond issuance.

After public comment and brief council discussion, the council voted unanimously to adopt the TEFRA resolution required to enable the CMFA to issue the bonds for the project. City staff noted the action was limited to the TEFRA hearing and did not authorize city financial exposure or city debt; the authority to issue bonds and other approvals remain with the CMFA and the borrower.

The council vote was unanimous.