Committee holds TEFRA hearing and forwards tax-exempt financings for California College of the Arts and Progress Foundation

The committee considered two items under the Tax Equity and Fiscal Responsibility Act (TEFRA) process that permit certain nonprofit borrowers to receive tax-exempt debt through joint powers authorities.

Vishal Trivedi of the Comptroller's Office of Public Finance explained that the city must hold a duly noticed public hearing for the jurisdiction in which the projects are located, but the city will not be obligated to pay bond debt. Item 6 would permit CSCDA to issue obligations not to exceed $40 million to refinance or finance capital projects at California College of the Arts (CCA) locations, including facilities at 1111 Eighth Street in San Francisco. Item 7 would permit issuance and sale of revenue obligations not to exceed $7.5 million to refinance outstanding indebtedness of Progress Foundation for several mental-health and supportive-housing facilities across San Francisco and Sonoma/Napa counties.

No public comments were submitted during the TEFRA hearing process. The committee forwarded both items to the full Board with positive recommendations; the sponsor noted there is no fiscal impact to the city as the borrower, borrower payments will service the obligations.