City holds Public Hearing on Jubilo Village financing plan
The city council must approve the issuance of up to $65 million in bonds to finance the 93-unit affordable housing project.
The Culver City City Council will hold a public hearing at its regularly scheduled meeting tonight on a plan for the California Municipal Finance Authority (CMFA) to issue up to $65 million in bonds to provide funds for the 93-unit Jubilo Village Affordable Housing Project. As part of the Tax and Equity Fiscal Responsibility Act (TEFRA) of the Internal Revenue Code of 1986, municipalities are required to hold a public hearing when developers seek tax-exempt financing — such as bonds and a proposed tax-exempt loan that developer Community Corporation of Santa Monica (Community Corp.) is seeking from City National Bank — to finance projects within their borders.
Culver City initially approved the use of bonds from the California Municipal Finance Authority (CMFA) for this project last October, but that authorization officially expires Tuesday, one year after the initial approval. As the governing body where the project site is located, the city council is given the final say on whether the current plan between Community Corp. and the CMFA to finance Jubilo Village is acceptable. Culver City will not be responsible for repaying any debts incurred by bonds issued for the project.
The CMFA includes over 350 municipalities in the state, including Culver City. It has contributed $50 million directly to local governments and 501(c)(3) nonprofit organizations over the past twenty years and assisted in providing more than $3.4 billion in financing to projects in the 2023-24 Fiscal Year.
While many of the awards given by the CMFA are less than the $65 million that Community Corp. capped its request at, the size of bond they are asking for is not unprecedented. Some of the most recent bonds issued by the CMFA for larger affordable housing projects are for similar or even greater amounts.
These recent bonds include a $77.5 million issuance for a 131-unit project comprising a four-story building and six separate three-story buildings in Petaluma, $60.5 million for a 92-unit affordable housing project in Walnut Creek, and just over $46 million for a 106-unit affordable housing complex in Merced.
Closer to home, developer West Hollywood Community Corporation — who may be bringing a project to the former Martin Retting Gun Store site in Culver City — received almost $38.5 million for a 100% affordable 89-unit project in West Hollywood.
Christian May-Suzuki
Developers can use CMFA financing to cover the majority of project costs, including land purchase, project design, construction, rehabilitation, improvements, equipment purchase/installation, and legal fees. According to the resolution presented Monday, the funds will be used for "the acquisition, construction, development, and equipping" of the project.
As part of the agreement between the city and Community Corp., the city has only committed $20 million to the project, including a $16 million residual receipts loan. However, the city council is required to approve the project's financial plan as the "applicable elected representative" of the jurisdiction where the project site is located.
Christian May-Suzuki
The public hearing allows members of the public to weigh in on the use of the tax-exempt loan, with four speakers taking that opportunity last year. At that October 28, 2024, meeting, city attorney Heather Baker noted that the item is very narrowly tailored to focus on the financing agreement between Community Corp. and the CMFA.
"The council isn't really considering the project itself tonight," Baker said at that meeting.
Tonight's City Council meeting is scheduled to begin at 7 p.m. at the Mike Balkman Council Chambers at City Hall or online on the city's official YouTube channel. To request to speak at the Public Hearing, click here.
Comments ()