SR 05:336 - Laserfiche WebLink

Honorable Mayor and Members of the City Council: BACKGROUND Califomia Communities' mission is to provide local govemments and private entities access to 10"W'-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic gro"W'th and improve the overall quality of life in local communities throughout Califomia. Currently 462 California local public agencies are members, including 58 counties, 323 cities, 63 special districts and 17 redevelopment/"W'ater agencies. Any Califomia city, county or special district is eligible to become a member of Califomia Communities by goveming board adoption of a resolution and joint po"W'ers agreement. The City has been a member since the mid 1990's. California Communities has issued more than $25 billion in tax-exempt bonds since its inception. Califomia Communities issues Qualified 501(c)(3) Bonds to finance the acquisition, construction, installation, expansion or rehabilitation of land, buildings, and equipment to be o"W'ned by a nonprofit organization as described under Section 50l(c)(3) of the Intemal Revenue Code of 1986 (including religious, charitable, scientific, testing for public safety, literary or educational purposes). The interest on the Bonds is exempt from federal income taxes; therefore, a nonprofit organization can finance capital projects at a lo"W'er interest rate than conventional financing. The Bonds are limited obligations of Califomia Communities, serving as conduit issuer, payable solely from revenues or other funds provided by the nonprofit organization. Since its inception, Califomia Communities has issued more than $10 billion in Qualified 50l(c)(3) bonds for more than 250 nonprofit organizations throughout Califomia including: Hospital and mental health facilities Private colleges, universities, and K-12 schools Student dormitories Multifamily housing facilities Assisted living facilities Substance abuse centers American Baptist Homes of the West (ABHOW) is a 50l(c)(3) nonprofit corporation headquartered in Pleasanton at 6120 Stoneridge Mall Road. According to the "W'ebsite, the original purpose of ABHOW - to provide quality housing and health care for retired American Baptist ministers and missionaries - has been expanded to include older persons regardless of occupation or religious affiliation. ABHOW has submitted an application to Califomia Communities for $120 million in tax-exempt debt financing to construct (1) additions to its existing Califomia continuing care facilities, and/or (2) provide general deferred maintenance SR:05:336 Page 2