City Council

9. CONDUIT FINANCING FOR USA TUSTIN LEGACY 5 & 6 APARTMENTS PROJECT Conduct a public hearing under the Tax and Equity Fiscal Responsibility Act ("TEFRA") on April 21, 2026 in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the "CMFA"), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $80,000,000, (the "Bonds"), to finance and refinance the acquisition, construction, development and equipping of a 334-unit (including four manager’s units) multifamily rental housing project located on an approximately 5.46-acre site generally bounded by Warner Avenue to the north, Compass Avenue to the west, Legacy Road to the east and Airship Avenue to the south (the Recommendation: Recommend the City Council: 1. CONDUCT A PUBLIC HEARING UNDER THE REQUIREMENTS OF TEFRA AND THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"); and 2. ADOPT RESOLUTION 26-19, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN APPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE OUTSTANDING PRINCIPAL AMOUNT NOT TO EXCEED $80,000,000 TO FINANCE AND REFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE BENEFIT OF TUSTIN 738, L.P. (OR AN AFFILIATE), AND CERTAIN OTHER MATTERS RELATING THERETO RESOLUTION NO. 26-19 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN APPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE OUTSTANDING PRINCIPAL AMOUNT NOT TO EXCEED $80,000,000 TO FINANCE AND REFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE BENEFIT OF TUSTIN 738, L.P. (OR AN AFFILIATE), AND CERTAIN OTHER MATTERS RELATING THERETO Fiscal Impact: The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the borrower, Tustin 738, L.P., and the City will have no financial and legal obligations, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City of Tustin, the County of Orange, or the State of California but are to be paid for solely from funds provided by the Borrower. The Board of Directors of the California Foundation for Stronger Communities, a California nonprofit public benefit corporation (the "Foundation"), 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 Tustin, it is expected that a portion of the issuance fee attributable to the City will be granted by the CMFA to the general fund of the City. Such grant may be used for any lawful purpose of the City. The Borrower will be the beneficiary of the CMFA's charitable donation through a 25% reduction in issuance fees.