75B - PH - RESO TAX EXEMPT - Laserfiche WebLink

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Public Hearing- Resolution Approving Tax Exempt Obligations February 17, 2015 Page 2 governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project. CALIFORNIA MUNICIPAL FINANCE AUTHORITY The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 200 municipalities have become members of CMFA. The CMFA was formed to assist local governments, non - profit organizations and businesses with the issuance of taxable and tax - exempt bonds aimed at improving the standard of living in California. The CMFA's representatives and its Board of Directors have considerable experience in bond financings. The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, 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 or the State of California, but are to be paid for solely from funds provided by the Borrower. There are no costs associated with membership in the CMFA and the City will in no way become exposed to any financial liability by reason of its membership in the CMFA. In addition, participation by the City in the CMFA will not impact the City's appropriations limits and 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. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet 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 There is no fiscal impact associated with this action 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 75B -2