HomeMy WebLinkAboutItem 5 Staff Report
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November 3, 2020 File ID: 20-0452
TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DESIGNATING A HEARING OFFICER TO CONDUCT A PUBLIC HEARING REGARDING THE ISSUANCE, SALE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS OF THE CHULA VISTA HOUSING AUTHORITY
RECOMMENDED ACTION Council adopt the resolution.
SUMMARY Pursuant to 26 C.F.R. sec. 1.147(f)-1,”Public approval of private activity bonds,” a governmental unit may select its own procedure for a conducting the public hearing required prior to issuance of the bonds, provided that interested individuals have a reasonable opportunity to express their views. This action sets a process in accordance with Government Code 1.147(f)-1(d) to allow the City Council to appoint an individual to perform the requisite public hearing for the issuance by the Chula Vista Housing Authority.
ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it only involves an administrative action that designates an official to conduct a public hearing regarding the issuance, sale, and delivery of multifamily housing revenue bonds; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not Applicable
DISCUSSION The Chula Vista Housing Authority (the “Authority”) intends to issue not to exceed $35,000,000 aggregate principal amount of multifamily housing revenue notes (the “Notes”) to finance the costs of developing a 175-unit multifamily rental housing project known as Otay Ranch Apartments located east of La Media Parkway and bounded by Main East Street and Main West Street within the Otay Ranch Escaya master planned community (the “Project”) in the City. On October 1, 2019, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), and consistent with the Tax Equity and Fiscal Responsibility
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Act of 1982 (TEFRA), the City Council held a public hearing (the “TEFRA Hearing”), after which the Council approved the issuance of such bonds by the Authority. Given that one year has passed since the TEFRA Hearing, the City Council must hold another TEFRA hearing to provide an opportunity for public comments on the issuance of the bonds and the project for which the bond funds will be allocated. Keeping in mind the health and well-being of Chula Vista residents during the current and unprecedented public health crisis resulting from the COVID-19 pandemic and in accordance with State Guidelines issued regarding COVID-19, the City of Chula Vista has modified its operations, per Emergency Order 002-D-2020 of the Chula Vista Director of Emergency Services, to conduct all City Council meetings via teleconference until further notice. The public may view City Council and the Chula Vista Housing Authority meetings on television and/or online, and may submit comments online at https://chulavista.granicusideas.com/meetings. Under the federal Tax Code Section 1.147(f)-1(d) (3) a “governmental unit may select its own procedure for a public hearing, provided that interested individuals have a reasonable opportunity to express their views and may impose reasonable requirements on persons who wish to participate in the hearing. Furthermore, a public hearing may be conducted by an individual appointed or employed to perform such function by the governmental unit or its agencies, or by the issuer (the Chula Vista Housing Authority). With the health and safety of Chula Vista as its top priority, Staff recommends approval of the attached City Council Resolution designating a hearing officer to conduct a public hearing regarding the issuance, sale, and delivery of multifamily housing revenue bonds for the Project. This includes establishing a date and time of the public hearing, providing reasonable notice and publication of the meeting date, time and location that is permitted under a general State Law. Designation of a hearing officer to conduct such hearing allows for an alternative method of conducting a public hearing that is compliant with the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and procedures related to virtual hearings and minimizing impacts to the health and safety of the Chula Vista community.
DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT There is no fiscal impact associated with this item.
ONGOING FISCAL IMPACT There is no ongoing fiscal impact related to this action for the General Fund.
ATTACHMENTS None.
Staff Contact: Jill Maland, Assistant City Attorney