AgdaPkt 2018-09-10 Joint SA PFA - Laserfiche WebLink

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7.A. - Page 2 Bradford Street in the City of Redwood City, and to be owned and operated by the Borrower. ANALYSIS In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Redwood City must conduct a public hearing (the "TEFRA Hearing") providing for the members of the community an opportunity to speak in favor of or against the use of tax- exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Notice of the hearing was published in the Daily News on August 7, 2018, consistent with TEFRA's noticing requirements. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project. California Municipal Finance Authority The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 300 municipalities, including the City of Redwood City, have become members of CMFA. The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA's representatives and its Board of Directors have considerable experience in bond financings. ALTERNATIVES The City Council could decide not to adopt the resolution which would prevent MidPen from accessing essential bond financing to support the development and construction of new affordable rental housing for seniors. FISCAL IMPACT The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.