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CC - PUBLIC HEARING: (1) Conduct a Public Hearing Pursuant to the Requirements of Tax and Equity Fiscal Responsibility Act (TEFRA) of the Internal Revenue Code of 1986, as Amended; (2) Adoption of a Resolution to Approve the Issuance of Revenue Bonds by the California Municipal Finance Authority to Assist in the Financing or Refinancing of the 4464 Sepulveda Blvd. L.P. Located in Culver City, California; and (3) Approval of the Deposit of Approximately $19,183.40 in Issuance Fees to the General Fund.
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Meeting Date: October 27, 2025
Contact Person/Dept: Punit Chokshi, Finance
Phone Number: (310) 253-6033
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (10/22/2025)
Department Approval: Lisa Soghor, Chief Financial Officer (10/15/2025)
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RECOMMENDATION
Staff recommends the City Council:
1. Conduct the public hearing under the requirements of Tax and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended; and
2. Adopt a Resolution approving a proposed plan of finance to include the issuance of revenue bonds by the California Municipal Finance Authority (CMFA) for the benefit of the Community Corporation of Santa Monica, a California nonprofit public benefit corporation (the “Sponsor”), on behalf of 4464 Sepulveda Blvd., L.P., a California limited partnership, or another ownership entity created by 4464 Sepulveda Blvd. LLC, a California limited liability company, its general partner (the “General Partner”), or by another affiliate of the Sponsor (such limited partnership or other ownership entity, the “Borrower”). CMFA and the Borrower have undertaken a proposed plan of finance that includes the issuance and reissuance from time to time of one or more series of revenue bonds in an outstanding principal amount not to exceed $65,000,000 (the “Bonds”) to finance and refinance the acquisition, construction, development and equipping of a 95-unit qualified residential rental project to be owned and operated by the Borrower and located at 4460-4464 Sepulveda Boulevard within the City of Culver City. Such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Internal Revenue Code and California Government Code Section 6500; and
3. Approve the deposit of approximately $19,183.40 in issuance fees to the Culver City General Fund.
PROCEDURE:
1. Mayor seeks motion from the City Council to receive and file the affidavits of publication and posting of notices, and correspondence received in response to the public hearing notices; and
2. Mayor calls for a staff report, and the City Council Members may pose questions to staff as desired; and,
3. Mayor seeks a motion to open the public hearing; and,
4. Mayor seeks a motion to close the public hearing after all public testimony has been presented; and,
5. The City Council discusses the item and arrives at its decision.
BACKGROUND/DISCUSSION
The City is a member agency of the California Municipal Finance Authority (“CMFA”), a joint exercise of powers authority and public entity of the State of California, which supports economic development, job creation and social programs throughout the State of California in part through the issuance of taxable and tax-exempt bonds for public, private and non-profit entities. CMFA has asked the City to conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) on October 27, 2025, in connection with the proposed issuance of a tax-exempt loan from City National Bank, and supported by bonds issued by CMFA in an amount not to exceed $65,000,000 (the “Bonds”). The loan will be to assist the 4464 Sepulveda Blvd., L.P., an ownership entity formed by Community Corporation of Santa Monica, to finance or refinance the acquisition, rehabilitation, improvement and equipping of a multifamily rental housing project located at 4460-4464 Sepulveda Blvd, Culver City, California (the "Project").
The 4464 Sepulveda Blvd., L.P., has requested that the California Municipal Finance Authority participate in the financing by issuing tax-exempt obligations (the “Bonds”) in an aggregate principal amount not to exceed $65,000,000 pursuant to a plan of finance (1) to finance, refinance or reimburse the acquisition, development, construction and equipping of a multifamily rental housing project located in the City, and (2) to finance certain reserves and issuance costs of the Bonds.
The facilities to be financed, refinanced, or reimbursed with proceeds of the Bonds are referred to herein collectively as the “Financed Facilities.” The Financed Facilities are located at 4460-4464 Sepulveda Blvd, Culver City, County of Los Angeles, California, 90230, near the southeast corner of Sepulveda Blvd and Braddock Drive, adjacent to the Culver-Palm Family YMCA. The Financed Facilities will be owned or leased by and operated by the Corporation.
In order for all or a portion of the Loan to qualify as a tax-exempt loan, the City of Culver City must conduct a public hearing (the “TEFRA Hearing”) providing the members of the community an opportunity to speak in favor of or against the use of a tax-exempt loan for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Loan for the financing of the Project.
This would be the second TEFRA approval granted by the City Council for this project. The City Council previously granted TEFRA approval on October 28, 2024. However, under applicable federal regulations, the tax-exempt CMFA bonds must be issued within one year of the approval date (26 C.F.R. Section 1.147(f)-1(f)(7)). Because the October 2024 approval of the City Council is now expiring, the CMFA and the Borrower are requesting the City Council to grant a new TEFRA approval so that CMFA may issue the bonds for this 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 350 municipalities, including the City of Culver City, 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.
FISCAL ANALYSIS
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 from the borrower 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 Culver City, it is expected that approximately $19,183.40 of the issuance fees in this transaction will be granted by the CMFA to the general fund of the City.
ATTACHMENTS
1. 2025-10-27_ATT_ TEFRA Resolution Jubilo Village
2. 2025-10-27_ATT_Proof of Publication
MOTIONS
That the City Council:
1. Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the “Code”); and
2. Adopt a Resolution approving the issuance of revenue bonds by the California Municipal Finance Authority for the benefit of the Community Corporation of Santa Monica, a California nonprofit public benefit corporation, on behalf of 4464 Sepulveda Blvd., L.P., a California limited partnership, or another ownership entity created by 4464 Sepulveda Blvd. LLC, a California limited liability company, its general partner, or by another affiliate of the Sponsor, has undertaken a proposed plan of finance that includes the issuance and reissuance from time to time of one or more series of revenue bonds in an outstanding principal amount not to exceed $65,000,000 to finance and refinance the acquisition, construction, development and equipping of a 95-unit qualified residential rental project to be owned and operated by the Borrower and located at 4460-4464 Sepulveda Boulevard within the City of Culver City. Such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Internal Revenue Code and California Government Code Section 6500; and
3. Approve the deposit of approximately $19,183.40 in issuance fees to the Culver City General Fund.