TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: Carl Stiehl, City Planner
SUBJECT:
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Financing for the Kensington Apartments Affordable Housing Project
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RECOMMENDATION
recommendation
Conduct a Public Hearing under the requirements of the Tax Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, (IRS Code) as amended; and
Adopt Resolution No. 25-4815 entitled: A Resolution of the City Council of the City of Murrieta, California, Approving the Issuance by the California Municipal Finance Authority of Exempt Facility Bonds in an Aggregate Principal Amount Not to Exceed $40,000,000, for the purpose of Financing or Refinancing the Acquisition, Construction, Improvement, and Equipping of the Kensington Apartments Project.
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PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
In 2022, Pacific West Communities Inc. (Applicant) received approval for the 126-unit Kensington Apartments, which will be restricted to occupancy by low-income residents spread across five buildings (Project) located southeast of the intersection of Washington Avenue and Nighthawk Way, APN 906-780-004 (Property). The Project was approved by staff on December 30, 2022, utilizing a Director's approval of the Development Plan in accordance with Murrieta Municipal Code Section 16.56.025(A)(1). Following Project approval, the Applicant unsuccessfully applied for State low-income tax credits in multiple rounds through its Project financing entity, Murrieta Pacific Associates (Borrower). In August 2023, the city approved a Development Impact Fee Deferral Loan Agreement for the Project, in an amount of approximately $1.77 million, in order to make the Project more competitive to receive a state tax credit award. After additional applications to the state, in December 2024, the Project was awarded low-income tax ...
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