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TEFRA Public Hearing for Cornerstone Apartments February 5, 2019 Page 2 Santa Ana, California, generally known as Cornerstone Apartments (the "Project') and operated by John Stewart Company. However, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Ana must conduct a public hearing (the "TEFRA Hearing") providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the refinancing of the Project. A public notice was published for the TEFRA Hearing (Exhibit 1). Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project, in this case the City, must provide its approval of the issuance of the Bonds by the Authority for the refinancing of the Project (Exhibit 2). The bonds to be issued by the CMFA are the sole responsibility of the borrower. The City has no financial or legal liability for the project or repayment of the bonds and does not constitute any type of indebtedness for the City. A notice was provided to the borrower informing them of this same information (Exhibit 3). STRATEGIC PLAN ALIGNMENT Approval of these items assists the City in meeting Goal # 4 — City Financial Stability, Objective # 1 (Maintain a stable, efficient and transparent financial environment) and Goal # 5 — Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana Neighborhoods). FISCAL IMPACT The Board of Directors of the California Foundation for Stronger Communities, a California non- profit 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 Santa Ana, it is expected that that a portion of the issuance fee 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 CMFA does not receive issuance fees until a bond issuance closes. The fees the CMFA receives are based upon the par amount of the bonds issued. The Borrower ultimately decides when and if the bonds are actually issued and the final amount of bonds issued. The amount granted to the City is to be determined but will not exceed $9,948 under the assumption the entire $23,000,000 in bonds are issued. Upon receipt, the funds will be deposited to the Miscellaneous Revenues, Miscellaneous Recoveries Revenue Account (no. 01102002-57010). Steven A. Mendoza Executive Director Community Development Agency Exhibits: 1. Public Notice 2. Resolution 3. Notice to Applicant APPROVED AS TO FJ1NDS AND ACCOUNTS: Kathryn Downs, CPA Executive Director <P(I'N Finance and Management Services Agency 75B-2