TO: ADAM PIRRIE, CITY MANAGER
FROM: JEREMY STARKEY, FINANCE DIRECTOR
DATE: MARCH 24, 2026
Reviewed by:
City Manager: AP
SUBJECT:
Title
TAX EQUITY AND FISCAL RESPONSIBILITY ACT OF 1982 HEARING TO APPROVE THE ISSUANCE OF UP TO $16 MILLION IN REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE BENEFIT OF NCRC CLAREMONT LP
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SUMMARY
NCRC Claremont LP (the "Borrower") requests approval of tax-exempt financing in an amount not to exceed $16 million. Financing is being made available through the California Municipal Finance Authority (CMFA). The federal Tax Equity and Financial Responsibility Act (TEFRA) requires that a public hearing be held by the governing body of the jurisdiction in which the project is located, and that the local jurisdiction approves the proposed financing. The City has held such hearings in the past for the Webb Schools, Mt. San Antonio Gardens, Pilgrim Place, Western Christian Schools, Pomona College, Keck Graduate Institute, Claremont Graduate University, Scripps College and Harvey Mudd College. Approval of the proposed financing will not impose any financial responsibilities on the City.
RECOMMENDATION
Recommended Action
Staff recommends the City Council adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $16,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF ST. AMBROSE SENIOR HOUSING AND CERTAIN OTHER MATTERS RELATING THERETO.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Request further information from staff.
B. Take no action.
FINANCIAL REVIEW
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation, acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Claremont, it is expected that 25 percent of the issuance fee will be granted by the CMFA to the City's General Fund. Such grant may be used for any lawful purpose of the City. The Borrower will be the beneficiary of a charitable donation through a 25 percent reduction in issuance fees.
As noted in this report, the City's approval of the issuance of the bonds will place no financial obligations upon the City. The staff cost to prepare this report and administer this program is estimated at $650 and is included in the operating budget of the Financial Services Department.
ANALYSIS
NCRC Claremont LP (the “Borrower”), a partnership of which National Community Renaissance of California (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (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 $16,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement and equipping of a senior multifamily rental housing project located at 830 West Bonita Avenue, Claremont, California (the “Project”).
The project involves the development and construction of a 59-unit affordable housing development for seniors aged 55 and older on a 1.2-acre site adjacent to St. Ambrose Episcopal Church. Of the 59 units, 29 will be for low-income seniors and 28 will be for low-income seniors who have experienced homelessness or are at risk of homelessness. The remaining unit will house an onsite manager. The development will include access to social services provided through partnerships between the developer and the Hope through Housing Foundation and Tri City Mental Health Services. Onsite amenities will include onsite supportive services and case management, a senior-oriented community room, outdoor recreational spaces, technology hub, active and passive landscape areas, and outdoor seating and barbecues.
The CMFA was created on January 1, 2004 pursuant to a joint powers agreement to promote economic cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 320 municipalities have become members of CMFA, including the City of Claremont.
The CMFA was formed to assist local governments, non-profit organizations, and businesses with the issuance of taxable and tax-exempt financing aimed at improving the standard of living in California. The CMFA' s representatives and its Board of Directors have considerable financing experience.
The Joint Exercise of Power Agreement provides that the CMFA is a public entity, separate and apart from each member executing such agreement. The debts, liabilities, and obligations of the CMFA do not constitute debts, liabilities or obligations of the member executing such agreement.
The bonds to be issued by the CMFA will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for 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 an obligation of the City.
Participation by the City in the approval of this financing will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing and 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.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City's strategic and visioning documents and finds that it does not apply to any of the City's planning documents.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
Notice of the public hearing was published on March 13, 2026 in the Claremont Courier. The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Jeremy Starkey
Finance Director
Attachment:
St. Ambrose Project TEFRA Resolution