Council approves host approval for up to $15 million in tax‑exempt revenue obligations for TIP Property

The San Bernardino City Council unanimously approved a resolution on April 15 to allow the California Enterprise Development Authority to issue tax‑exempt revenue obligations not to exceed $15 million for TIP Property Karas LLC, a borrower the staff presentation said is controlled by Community Action Partnership (CAPS), a county nonprofit that provides housing assistance, food distribution and utility assistance.

Staff stressed the financing would be issued by the state authority and would not be a city general‑fund obligation; the city’s role is a TEFRA host approval required for tax‑exempt bond issuance in the jurisdiction. Patricia Nichols Butler, CEO and president of Community Action Partnership, said the financing will strengthen the nonprofit’s long‑term sustainability and support ongoing social services: “These properties were built to suit for our organization and it allows us to provide critical services,” she told the council.

Resident and candidate Ronald Alvarado urged the council to insist on transparent local benefits and local hiring. Council members discussed conflicts of interest; Council Member Flores disclosed a potential conflict due to offices sited in CAPS facilities and recused from the vote. After public comments and deliberation, the council adopted the resolution (listed in the staff packet as Resolution 2026‑036) by unanimous vote.

The motion authorized the city manager or designee to execute necessary documents to effectuate the tax‑exempt bond issuance; staff and the applicant said the financing is a pass‑through and will not draw on the city’s general fund.

Sources: Staff presentation and public testimony during San Bernardino City Council meeting, April 15, 2026.