City Council

9.\nCONDUIT FINANCING FOR USA TUSTIN LEGACY 5 & 6 APARTMENTS\nPROJECT Conduct a public hearing under the Tax and Equity Fiscal\nResponsibility Act ("TEFRA") on April 21, 2026 in connection with the\nproposed issuance of revenue bonds by the California Municipal Finance\nAuthority (the "CMFA"), a joint exercise of powers authority and public\nentity of the State of California, in an amount not to exceed $80,000,000,\n(the "Bonds"), to finance and refinance the acquisition, construction,\ndevelopment and equipping of a 334-unit (including four manager’s units)\nmultifamily rental housing project located on an approximately 5.46-acre\nsite generally bounded by Warner Avenue to the north, Compass Avenue\nto the west, Legacy Road to the east and Airship Avenue to the south (the\n"Project") in the City of Tustin.\nRecommendation: Recommend the City Council: 1. CONDUCT A PUBLIC\nHEARING UNDER THE REQUIREMENTS OF TEFRA AND THE\nINTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE");\nand 2. ADOPT RESOLUTION 26-19, A RESOLUTION OF THE CITY\nCOUNCIL OF THE CITY OF TUSTIN APPROVING A PLAN OF FINANCE\nINCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE\nCALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE\nOUTSTANDING PRINCIPAL AMOUNT NOT TO EXCEED $80,000,000\nTO FINANCE AND REFINANCE A QUALIFIED RESIDENTIAL RENTAL\nPROJECT FOR THE BENEFIT OF TUSTIN 738, L.P. (OR AN\nAFFILIATE), AND CERTAIN OTHER MATTERS RELATING THERETO\nRESOLUTION NO. 26-19 RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN APPROVING A PLAN OF FINANCE INCLUDING\nTHE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA\nMUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE OUTSTANDING\nPRINCIPAL AMOUNT NOT TO EXCEED $80,000,000 TO FINANCE AND\nREFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE\nBENEFIT OF TUSTIN 738, L.P. (OR AN AFFILIATE), AND CERTAIN\nOTHER MATTERS RELATING THERETO Fiscal Impact: The Bonds to be\nissued by the CMFA for the Project will be the sole responsibility of the\nborrower, Tustin 738, L.P., and the City will have no financial and legal\nobligations, liability or responsibility for the Project or the repayment of the\nBonds for the financing of the Project. All financing documents with\nrespect to the issuance of the Bonds will contain clear disclaimers that the\nBonds are not obligations of the City of Tustin, the County of Orange, or\nthe State of California but are to be paid for solely from funds provided by\nthe Borrower. The Board of Directors of the California Foundation for\nStronger Communities, a California nonprofit public benefit corporation\n(the "Foundation"), acts as the Board of Directors for the CMFA. Through\nits conduit issuance activities, the CMFA shares a portion of the issuance\nfees it receives with its member communities and donates a portion of\nthese issuance fees to the Foundation for the support of local charities.\nWith respect to the City of Tustin, it is expected that a portion of the\nissuance fee attributable to the City will be granted by the CMFA to the\ngeneral fund of the City. Such grant may be used for any lawful purpose of\nthe City. The Borrower will be the beneficiary of the CMFA's charitable\ndonation through a 25% reduction in issuance fees.