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Attached to this report is a copy of the Joint Exercise of Powers Agreement to be <br />executed by a designated signatory of the City. <br /> <br />The Joint Exercise of Powers Agreement provides that the CMFA is a public entity, <br />separate and apart from each member executing such agreement. The debts, liabilities <br />and obligations of the CMFA do not constitute debts, liabilities or obligations of the <br />members executing such agreement. <br /> <br />The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the <br />Borrower, and the City will have no financial, legal, moral obligation, liability or <br />responsibility for the Project or the repayment of the Bonds for the financing of the <br />Project. All financing documents with respect to the issuance of the Bonds will contain <br />clear disclaimers that the Bonds are not obligations of the City or the State of California, <br />but are to be paid for solely from funds provided by the Borrower. <br /> <br />The Joint Exercise of Powers Agreement expressly provides that any member may <br />withdraw from such agreement upon written notice to the Board of Directors of the <br />CMFA. In the case of the proposed bond financing for the Borrower, the City following <br />its execution of the Joint Exercise of Powers Agreement, could, at any time following the <br />issuance of the Bonds, withdraw from the CMFA by providing written notice to the Board <br />of Directors of the CMFA. <br /> <br />By adopting the resolution and executing the Joint Powers Agreement with the CMFA <br />the City would be supporting MidPen’s re-syndication and long term preservation of <br />affordable housing. This action would assist in furthering the City’s affordable housing <br />goals identified in the Housing Element and Consolidated Plan. <br /> <br />ALTERNATIVES <br />The City could decide not to adopt the resolution and execute the Joint Powers <br />Agreement which would prevent MidPen from accessing essential bond financing to <br />support existing affordable housing. <br /> <br />FISCAL IMPACT <br />There are no costs associated with membership in the CMFA and the City will in no way <br />become exposed to any financial liability by reason of its membership in the CMFA. In <br />addition, participation by the City in the CMFA will not impact the City’s appropriations <br />limits and will not constitute any type of indebtedness by the City. Outside of holding <br />the TEFRA hearing, adopting the required resolution and executing the Joint Exercise of <br />Powers Agreement of the CMFA, no other participation or activity of the City or the City <br />Council with respect to the issuance of the Bonds will be required. <br /> <br />The Board of Directors of the California Foundation for Stronger Communities, a <br />California non-profit public benefit corporation (the “Foundation”), acts as the Board of <br />Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a <br />portion of the issuance fees it receives with its member communities and donates a <br />portion of these issuance fees to the Foundation for the support of local charities. With <br />9.B. - Page 4