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7.A. - Page 1 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />September 10, 2018 <br />SUBJECT <br />Tax and Equity Fiscal Responsibility Act (TEFRA) Hearing - Conduit Financing for the <br />MidPen Arroyo Green Apartments Affordable Housing Project <br />RECOMMENDATION <br />1. Conduct the public hearing under the requirements of TEFRA and the Internal <br />Revenue Code of 1986, as amended (the "Code") <br />2. Adopt the resolution approving the issuance of the Bonds by the California Municipal <br />Finance Authority ("CMFA") for the benefit of MP Bradford Associates, L.P. to provide <br />for the financing of the Project, such adoption is solely for the purposes of satisfying the <br />requirements of TEFRA, the Code and the California Government Code Section 6500 <br />(and following). The resolution authorizes the Mayor or designee to execute and deliver <br />any and all documents which they deem necessary or advisable in order to carry out, <br />give effect to and comply with the terms and intent of the resolution and the financing <br />BACKGROUND <br />From time to time, the City of Redwood City is asked to hold a public hearing associated <br />with a private entity's issuance of tax-exempt private activity bonds. The entity must be <br />located within Redwood City. The bond issuance does not create a financial obligation <br />for the City, other than the cost of staff time to prepare for the hearing. This cost is <br />partially reimbursed through administrative payments to the City. In the past two years, <br />the City Council has held approximately six public hearings associated with tax-exempt <br />private activity bonds issued by public finance entities primarily for affordable housing <br />developers in Redwood City, such as Mid Pen Housing. <br />MidPen Housing Corporation requested that the CMFA serve as the municipal issuer of <br />the Bonds in an aggregate principal amount not to exceed $58,000,000 of tax-exempt <br />revenue bonds. The proceeds of the Bonds will be used for the acquisition, <br />construction, improvement and equipping of a 117 -unit affordable rental housing facility <br />for very low- and extremely low-income seniors, including seniors who are homeless, <br />are homeless veterans, and have mental health needs, to be located at 707-777 <br />