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League-Sponsored Bond Agency Issues $46 Million in Tax-Exempt Bonds for Affordable Housing in Palmdale and Transportation Revenue Certificates of Participation in Salinas

July 20, 2018
Some of the most significant benefits of League membership for cities since 1988 have flowed from the League’s co-sponsorship of the California Statewide Communities Development Authority (CSCDA).
 
CSCDA recently issued $9,200,000 in tax-exempt multi-family affordable housing bonds for Palmdale Park Apartments in Palmdale and $37,500,000 in Transportation Revenue Certificates of Participation (COPs) under its Total Road Improvement Program (TRIP) to benefit the City of Salinas.
 
About Palmdale Park Apartments
 
Palmdale Park Apartments is the acquisition and rehabilitation of 58 multi-family affordable housing apartments by Palmdale Park Apartments, LP. Sponsored by Community Development Partners (CDP), the project will continue to be 100 percent affordable and provide apartments to low-income residents in Palmdale.
 
CSCDA and CDP partnered with JLL Capital Markets and Orrick, Herrington & Sutcliffe, LLP to provide the $9,200,000 in tax-exempt multi-family affordable housing bonds for the project. The apartments will undergo an extensive interior and exterior renovation ensuring that residents have an updated, safe, and affordable community to call home for years to come. The financing will maintain the affordability of units for low-income tenants for 55 years.
 
About the Transportation Revenue Certificates of Participation
 
The financing will be secured by Measure X revenues the City of Salinas receives from the Transportation Agency for Monterey County. Monterey County Voters in the county passed Measure X in November 2016 to proactively fund and plan a transportation system that enhances mobility, safety, access, environmental quality and economic activities. Collection began for the three-eighths cent sales tax measure in spring 2017 with a 30-year authorization. Measure X allocates 60 percent of annual revenues to the county’s cities for local road transportation projects such as capital street improvements, pothole mitigation and safety upgrades.
 
CSCDA partnered with Stifel, Urban Futures, Inc. and Orrick, Herrington & Sutcliffe, LLP to provide the COPs for Salinas. The COPs will fund the construction of various improvements within the city including traffic and safety improvement along Boronda Road, a major east/west arterial and gateway to future growth in the city. The improvements will include widening and resurfacing the existing roadway, installing roundabouts for additional safety and updating accommodations for bike lanes and pedestrian rights of way.
 
Background
 
CSCDA is a joint powers authority created in 1988 and is sponsored by the League of California Cities® and the California State Association of Counties. It was created by cities and counties for cities and counties. More than 530 cities, counties and special districts are program participants in CSCDA, which serves as their conduit issuer and provides access to efficiently finance locally-approved projects. CSCDA has issued more than $60 billion in tax exempt bonds for projects that provide a public benefit by creating jobs, affordable housing, healthcare, infrastructure, schools and other fundamental services. Visit CSCDA’s website for additional information on the ways in which CSCDA can help your city.


 
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