Elsa Brown, a housing department staffer, opened a Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing on a proposal for the California Statewide Communities Development Authority to issue tax-exempt bonds not to exceed $32,000,000 to finance Casa de Carmen, a mixed-use multifamily rental project at 241 West 2nd Street.

Brown said the developer is Community Development Partners, which has ownership interest in a related entity identified in the transcript as Second NBLP, and that the applicant entity for the bonds is described as Second and BLP. "The developer ... has applied for issuance of $32,000,000 of tax exempt residential rental project facility bonds from the California Statewide Communities Development Authority," Brown said.

Brown summarized the project and target population: "The project will provide 55 units of permanent supportive housing, 1 unrestricted manager's unit, and a navigation center with 110 shelter beds for low income and extremely low income persons." She also noted timing: the residential portion received a temporary certificate of occupancy on 10/30/2025 and the project is estimated to receive its certificate of occupancy for the residential units and navigation center by the end of the calendar year.

Explaining the legal and procedural context, Brown said the TEFRA hearing requirement exists so bonds can qualify as tax-exempt and to allow community input. She noted a prior TEFRA hearing and resolution for the project on 04/05/2022 and said that because more than three years have elapsed a new TEFRA hearing is required for a technical reissuance. "There is no city financial obligation or liability arising from state bond issuance," Brown said, addressing municipal exposure to the proposed financing.

Brown recommended that the city council conduct the TEFRA hearing regarding the proposed issuance and adopt a resolution approving the issuance of bonds by CSCDA for the benefit of Community Development Partners. The transcript of the hearing records the recommendation but does not record a council vote or final action on the resolution. The transcript does not specify the date the hearing occurred.