HomeMy WebLinkAboutCC 10-06-2026 Item No. 11. Tax and Equity Fiscal Responsibility Act (TEFRA) for The Rise Block 5_Staff PresentationCC 10-06-2026
#11
Block 5 Vallco
TEFRA
Baker Tilly
Presentation
Nicky Vu, Senior Housing Coordinator
October 6, 2026
Block 5/Vallco Rise Tax Equity and
Fiscal Responsibility Act (TEFRA)
Hearing
Tax Equity and Fiscal Responsibility
Act (1982) “The Act”
●Federal law requiring a public
hearing before government can
issue tax-exempt private/non-profit
activity bonds for a project
●Jurisdiction (city or county) for
project location must approve the
proposed financing via resolution
Block 5/Vallco “The Project”
●100% affordable housing
●58 low income, 174 very low
income, 2 manager (234 units
total)
●Eden Housing “The Borrower”
California Municipal Finance
Authority (CMFA) “The Issuer”
●Statewide joint powers authority
●Conduit bond issuer on behalf of
host cities/counties
●Education, medical, affordable
housing
●Up to $135,000,000 in tax-exempt
revenue bonds
The City of Cupertino
●No financial or legal obligations or
responsibilities regarding the
repayment of the debt
●No costs for the issuance of the
debt
●Adopt a resolution to approve the
issuance of bonds
Fiscal Benefit
●CMFA shares a portion of the issuance
fees it receives with its member
communities
●By joining the JPA, the City of Cupertino
will become a member, and therefore
receive a portion of revenues
●Grant from CMFA to the City’s General
Fund
Staff Representatives
●Ben Barker (CMFA, “The Issuer”)
●Dixie Baus (Eden Housing, “The Borrower”)
Motion
●Adopt the resolution, and execute the JPA
agreement, to approve issuance of bonds by
CMFA for the borrower to satisfy the
requirements of TEFRA, the Code, and
Government Code Section 6500.