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HomeMy WebLinkAboutItem 5.4 Approval of a Plan of Finance Including the Reissuance of Tax-Exempt Revenue Bonds by the California Statewide Communities Development Authority for the Existing Dublin Ranch Senior Apartments and Fairway Agenda Item 5.4 STAFF REPORT CITY COUNCIL Page 1 of 4 DATE: August 18, 2026 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Approval of a Plan of Finance Including the Reissuance of Tax-Exempt Revenue Bonds by the California Statewide Communities Development Authority for the Existing Dublin Ranch Senior Apartments and the Fairway Family Apartments Prepared by: Jason Earl, Senior Management Analyst EXECUTIVE SUMMARY: In 2003 the City of Dublin joined the California Statewide Communities Development Authority (CSCDA) in support of a request from Dublin Ranch Senior Apartments and Fairway Family Apartments for tax-exempt bond financing for these two existing affordable multifamily rental housing projects. Dublin Ranch Senior Apartments and Fairway Family Apartments have requested that CSCDA continue to serve as the municipal issuer of tax-exempt multifamily housing revenue bonds in an aggregate principal amount not to exceed $35,000,000 for Dublin Ranch Senior Apartments and $40,000,000 for Fairway Family Apartments. The bond proceeds will be used to refinance the existing bond debt and capital improvements for both projects. The refunding bonds are considered a reissuance, which requires a new Federal Tax Equity and Fiscal Responsibility Act approval by the City. The City Council is being asked to adopt a resolution to approve the refinancing of the project by CSCDA. The City will have no obligation, liability, or responsibility for the multifamily rental housing projects or the repayment of the bonds. STAFF RECOMMENDATION: Adopt the Resolution Approving a Plan of Finance Including the Issuance of Exempt Facility Bonds by the California Statewide Communities Development Authority for the Purpose of Refinancing the Acquisition, Rehabilitation, Improvement, and Equipping of a Multifamily Rental Housing Project Known as Dublin Ranch Senior Apartments Located at 3115 Finnian Way; and adopt the Resolution Approving a Plan of Finance Including the Issuance of Exempt Facility Bonds by the California Statewide Communities Development Authority for the Purpose of Refinancing the Acquisition, Rehabilitation, Improvement, and Equipping of a Multifamily Rental Housing Project Known as Fairway Family Apartments Located at 4161 101 Page 2 of 4 Keegan Street. FINANCIAL IMPACT: There is no fiscal impact to the City. The bonds to be issued by the CSCDA for the projects will be the sole responsibility of Dublin Ranch Senior Apartments LP and Fairway Family Community LP. The City will have no financial, legal, or moral obligation, liability, or responsibility for the projects or the repayment of the bonds. All financing documents with respect to the issuance of the bonds will contain clear disclaimers that the bonds are not obligations of the City but are to be paid for solely from funds provided by the borrower. DESCRIPTION: Background The Dublin Ranch Senior Apartments is a 322-unit affordable senior apartment community located at 3115 Finnian Way (Figure 1). Fairway Family Apartments is a 304-unit affordable apartment community located at 4161 Keegan Street (Figure 2). Figure 1. Dublin Ranch Senior Apartments Location Map Figure 2. Fairway Family Apartments Location Map In 2003, the City joined the California Statewide Communities Development Authority (CSCDA) in support of Dublin Ranch Senior Apartments’ and Fairway Family Apartments’ request for tax-exempt bond financing for the two projects. The tax-exempt bonds were last 102 Page 3 of 4 reissued on November 15, 2005, when the City Council approved an increased issuance (Resolution Nos. 211-05 and 212-05). CSCDA is a joint powers authority sponsored by the League of California Cities and the California State Association of Counties (CSAC). CSCDA was created by the League and CSAC in 1988 to enable local government and eligible private entities access to low-cost, tax- exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth, and improve the overall quality of life in local communities throughout California. CSCDA comprises more than 530 members, including the City of Dublin, which has been a member since 2003. CSCDA has raised more than $80 billion through more than 2,000 financings since 1988. In May 2026, Dublin Ranch Senior Apartments LP and Fairway Family Community LP requested that the CSCDA serve as the municipal issuer of tax-exempt multifamily housing revenue bonds, as their existing bond terms are about to expire. The proceeds of the bonds will be used for the purpose of making a loan and enabling the two borrowers to refinance the existing bond debt and make some capital improvements to the affordable multifamily housing rental projects. Analysis There are no costs or any financial liability associated with membership in the CSCDA, and the City will in no way become exposed to any financial liability by reason of its recommendation and approval of tax-exempt revenue bonds totaling up to $35,000,000 for Dublin Ranch Senior Apartments, and up to $40,000,000 for Fairway Family Apartments. The proposed refunding bonds will be fixed-rate credit-enhanced for 10 years by Fannie Mae. The refunding and reissuance of the bonds allow the borrowers an interest rate that is approximately 1% lower than taxable financing. In accordance with the Tax Equity and Fiscal Responsibility Act (TEFRA), CSCDA held its own public hearing on July 30, 2026. That public hearing provided members of the community an opportunity to speak on the use of tax-exempt bonds to finance the Project. There were no comments from the public at that hearing. In accordance with Section 147(f) of the Internal Revenue Code and for the purposes of satisfying the requirements of TEFRA, the Internal Revenue Code, and California Government Code Section 6500 et seq., the City Council must provide its own approval of the issuance of the bonds for the financing of the Project. Outside of adopting the required resolution, no other participation or activity of the City or the City Council with respect to the issuance of the bonds will be required. The resolution approving the reissuance of the bonds by the CSCDA for the benefit of Dublin Ranch Senior Apartments is included as Attachment 1. The resolution approving the reissuance of the bonds by the CSCDA for the benefit of Fairway Family Apartments is included as Attachment 2. Minutes from the TEFRA public hearing for Dublin Ranch Senior Apartments and Fairway Family Apartments are included as Attachments 3 and 4. 103 Page 4 of 4 STRATEGIC PLAN INITIATIVE: Strategy 4: Housing Affordability Objective D: Promote and provide outreach to the community on all City programs and services that address housing accessibility and affordability. ENVIRONMENTAL DETERMINATION: The California Environmental Quality Act (CEQA), together with State Guidelines and City of Dublin CEQA Guidelines and Procedures requires that certain projects be reviewed for environmental impacts and that environmental documents be prepared. The proposed tax - exempt revenue bond is exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) as the tax-exempt revenue bond is not a project and would not have a significant effect on the environment and therefore is exempt from the requirements of CEQA. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A notice of the July 30, 2026 TEFRA hearings held by CSCDA was published in The East Bay Times on July 23, 2026 in accordance with the requirements of TEFRA. In addition, the City Council Agenda was posted. ATTACHMENTS: 1) Approving a Plan of Finance Including the Issuance of Exempt Facility Bonds by the California Statewide Communities Development Authority for the Purpose of Refinancing the Acquisition, Rehabilitation, Improvement, and Equipping of a Multifamily Rental Housing Project Known as Dublin Ranch Senior Apartments Located at 3115 Finnian Way 2) Approving a Plan of Finance Including the Issuance of Exempt Facility Bonds by the California Statewide Communities Development Authority for the Purpose of Refinancing the Acquisition, Rehabilitation, Improvement, and Equipping of a Multifamily Rental Housing Project Known as Fairway Family Apartments Located at 4161 Keegan Street 3) Minutes from the TEFRA public hearing for Dublin Ranch Senior Apartments held on July 30, 2026 4) Minutes from the TEFRA public hearing for Fairway Family Apartments held on July 30, 2026 104 Attachment 1 Reso. No. XX-26, Item X.X, Adopted 08/18/2026 Page 1 of 2 RESOLUTION NO. XX – 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE PURPOSE OF REFINANCING THE ACQUISITION, REHABILITATION, IMPROVEMENT, AND EQUIPPING OF A MULTIFAMILY RENTAL HOUSING PROJECT KNOWN AS DUBLIN RANCH SENIOR APARTMENTS LOCATED AT 3115 FINNIAN WAY WHEREAS, the California Statewide Communities Development Authority (the “Authority”) is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of Ju ne 1, 1988 (the “Agreement”), among certain local agencies throughout the State of California, including the City of Dublin (the “City”), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and WHEREAS, Dublin Ranch Senior Apartments LP (the “Borrower”) has requested that the Authority adopt a plan of financing providing for the issuance of exempt facility bonds for a qualifi ed residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to tim e, and at no time to exceed $35,000,000 in outstanding aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, rehabilitation and development of a multifamily rental housing project located at 3115 Finnian Way, Dublin, California (the “Project”); and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, the Bonds are required to be approved by the “applicable elected representative” of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the City Council of the City of Dublin (the “City Council”) is the elected legislative body of the City and is an “applicable elected representative” for purposes of Section 147(f) of the Code; and WHEREAS, pursuant to California Environmental Quality Act (CEQA) and CEQA Guidelines Section 15061(b)(3), the proposed tax exempt revenue bond is not a project and would not result in any physical changes, and it can be seen with certainty that the tax exempt revenue bond would not have a significant effect on the environment, and therefore it is exempt from the requirements of CEQA; and WHEREAS, on July 23, 2026, at least 7 days prior to the date of the public hearing held on July 30, 2026, a notice was published in the East Bay Times, a newspaper of general circulation within the City, that a public hearing regarding the Bonds would be held; and WHEREAS, pursuant to Section 147(f) of the Code, following notice duly given, representatives of the Authority conducted a public hearing on July 30, 2026, regarding the issuance of the Bonds in compliance with the requirements of Section 147(f) of the Code and provided minutes of the hearing; and 105 Reso. No. XX-26, Item X.X, Adopted 08/18/2026 Page 2 of 2 WHEREAS, the Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the Bonds which financed the Project (the “Refunding Bonds”), but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; and WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin finds the above recitals are true and correct. BE IT FURTHER RESOLVED that the City Council hereby approves the proposed plan of finance for the Project that includes the issuance of the Bonds and the Refunding Bonds by the Authority in an outstanding principal amount not to exceed $35,000,000. It is the purpose and intent of the City Council that this resolution constitute approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the Agreement. BE IT FURTHER RESOLVED that the officers of the City of Dublin are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. BE IT FURTHER RESOLVED that this resolution shall take effect immediately upon its passage. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Dublin, on this 18th day of August, 2026 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 106 Attachment 2 Reso. No. XX-26, Item X.X, Adopted 08/18/2026 Page 1 of 2 RESOLUTION NO. XX – 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE PURPOSE OF REFINANCING THE ACQUISITION, REHABILITATION, IMPROVEMENT, AND EQUIPPING OF A MULTIFAMILY RENTAL HOUSING PROJECT KNOWN AS FAIRWAY FAMILY APARTMENTS LOCATED AT 4161 KEEGAN STREET WHEREAS, the California Statewide Communities Development Authority (the “Authority”) is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (the “Agreement”), among certain local agencies throughout the State of California, including the City of Dublin (the “City”), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the pur pose of financing multifamily rental housing projects; and WHEREAS, Fairway Family Community LP (the “Borrower”) has requested that the Authority adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $40,000,000 in outstanding aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, rehabilitation , and development of a multifamily rental housing project located at 4161 Keegan Street, Dublin, California (the “Project”); and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, the Bonds are required to be approved by the “applicable elected representative” of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the City Council of the City of Dublin (the “City Council”) is the elected legislative body of the City and is an “applicable elected representative” for purposes of Section 147(f) of the Code; and WHEREAS, pursuant to the California Environmental Quality Act (CEQA) and CEQA Guidelines Section 15061(b)(3), the proposed tax exempt revenue bond is not a project and would not result in any physical changes, and it can be seen with certainty that the tax exempt revenue bond would not have a significant effect on the environment, and therefore it is exempt from the requirements of CEQA; and WHEREAS, on July 23, 2026, at least 7 days prior to the date of the public hearing held on July 30, 2026, a notice was published in the East Bay Times, a newspaper of general circulation within the City, that a public hearing regarding the Bonds would be held; and WHEREAS, pursuant to Section 147(f) of the Code, following notice duly given, representatives of the Authority conducted a public hearing on July 30, 2026, regarding the issuance of the Bonds in compliance with the requirements of Section 147(f) of the Code and provided minutes of the hearing; and 107 Reso. No. XX-26, Item X.X, Adopted 08/18/2026 Page 2 of 2 WHEREAS, the Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority for the purpose of refin ancing the Bonds which financed the Project (the “Refunding Bonds”), but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; and WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin finds the above recitals are true and correct. BE IT FURTHER RESOLVED that the City Council hereby approves the proposed plan of finance for the Project that includes the issuance of the Bonds and the Refunding Bonds by the Authority in an outstanding principal amount not to exceed $40,000,000. It is the purpose and intent of the City Council that this resolution constitute approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the Agreement. BE IT FURTHER RESOLVED that the officers of the City of Dublin are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to, and comply with the terms and intent of this resolution and the financing transaction approved hereby. BE IT FURTHER RESOLVED that this resolution shall take effect immediately upon its passage. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Dublin, on this 18th day of August, 2026 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 108 TEFRA PUBLIC HEARING MEETING MINUTES July 30, 2026 10:00 A.M. CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY This meeting was conducted to meet the required Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Public Hearing for the Dublin Ranch Senior Apartments project. This meeting was called to order on the 30th day of July, 2026 at 10:01 a.m. via toll free telephone by the California Statewide Communities Development Authority. A notice of this hearing was published in the Valley Times on July 23, 2026 (the “Notice”). The purpose of this meeting was to hear public comments regarding the California Statewide Communities Development Authority’s proposed issuance of bonds or notes for financing and/or refinancing the above referenced project. The California Statewide Communities Development Authority representatives present were, Jon Penkower. By 10:05 a.m. there were no other representatives from the public who made themselves available and no public comments were provided, so the meeting was adjourned. I declare under penalty of perjury that this is a true and exact copy of the TEFRA public hearing meeting minutes regarding the above referenced projects held on July 30, 2026 at 10:00 a.m. CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY By: Name: Jon Penkower Title: Managing Director Attachment 3 109 TEFRA PUBLIC HEARING MEETING MINUTES July 30, 2026 10:00 A.M. CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY This meeting was conducted to meet the required Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Public Hearing for the Fairway Family Apartments project. This meeting was called to order on the 30th day of July, 2026 at 10:01 a.m. via toll free telephone by the California Statewide Communities Development Authority. A notice of this hearing was published in the Valley Times on July 23, 2026 (the “Notice”). The purpose of this meeting was to hear public comments regarding the California Statewide Communities Development Authority’s proposed issuance of bonds or notes for financing and/or refinancing the above referenced project. The California Statewide Communities Development Authority representatives present were, Jon Penkower. By 10:05 a.m. there were no other representatives from the public who made themselves available and no public comments were provided, so the meeting was adjourned. I declare under penalty of perjury that this is a true and exact copy of the TEFRA public hearing meeting minutes regarding the above referenced projects held on July 30, 2026 at 10:00 a.m. CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY By: Name: Jon Penkower Title: Managing Director Attachment 4 110