To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Tax-Exempt Revenue Bonds, TEFRA Hearing - Orbisonia Village, Bay Point
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. ADOPT a resolution approving the issuance of Tax-Exempt Revenue Bonds (the “Bonds”) by California Municipal Finance Authority (CMFA), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $70,000,000 for the benefit of Orbisonia Village, a mixed-use and multifamily rental housing project located at 530 South Broadway Avenue, Bay Point (the “Borrower”) for the purpose of (a) financing, refinancing and/or reimbursing the cost of the acquisition, construction, installation, renovation and equipping of the real property and improvements; (b) funding a reserve fund for the Bonds, to the extent deemed necessary by the Borrower; and (c) pay certain costs of issuance and other transaction costs in connection with such financing (collectively, the “Project”).
2. FIND and DECLARE that the recitals contained in the proposed resolution are true and correct.
3. ACKNOWLEDGE that such approval and adoption is solely for the purposes of satisfying the requirements of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) as codified in Section 147(f) of the Internal Revenue code of 1986, as amended (the “Code”) and California Government Code Section 6500 (the “Act”) to facilitate the Project.
4. ACKNOWLEDGE that adoption of this resolution does not relieve or exempt the Borrower from obtaining required permits or approvals, nor obligate the County to incur any obligation to provide financial assistance with respect to the Bonds or the Project.
5. AUTHORIZE and DIRECT the Director of the Department of Conservation and Development, or designee to take any and all actions and execute and deliver any and all certificates, agreements and other documents needed to document the approvals provided by the County for purposes of TEFRA and the Act.
FISCAL IMPACT:
The County will be reimbursed for any costs incurred in the process of conducting the Public Hearing and Board of Supervisors’ approval. The issuance authorization is for the sole purpose of satisfying the provisions of the Code. No County funds are pledged to secure the Bonds. The CMFA will issue tax-exempt bonds on behalf of the Borrower. Repayment of the Bonds is solely the responsibility of the Borrower.
BACKGROUND:
California Municipal Finance Authority (CMFA), serving as the municipal issuer of the Bonds for the benefit of Orbisonia Village, has requested the County to conduct a Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) hearing for the issuance of Tax-Exempt Revenue Bonds in an amount not to exceed $70,000,000. The proceeds of the Bonds will be used to: (1) finance or refinance the acquisition, construction, improvement and equipping of Orbisonia Village, a mixed-use and multifamily rental housing project located at 530 South Broadway Avenue, Bay Point, Contra Costa County, California; and (2) pay certain expenses incurred in connection with the issuance of the Bonds.
Orbisonia Village is a planned multi-unit mixed-use development that will construct 169 rental housing units, with 167 of those units being affordable to households earning between 30% and 80% of the Area Median Income (AMI). The development will also include a new public library and commercial space on the ground floor of the development.
The main purpose of the proposed resolution is to acknowledge that a public TEFRA hearing was held by the Department of Conservation and Development on March 31, 2026, where members of the community were given an opportunity to speak in favor of or against the issuance of the Bonds and the financing of the Project with the proceeds of the Bonds, and to meet other bond issuance requirements which are specified in Section 147(f) of the Internal Revenue Code. No public comments were received. A notice of the hearing was published in the East Bay Times (proof of publication attached) on March 17, 2026.
The County’s only role in this transaction was to hold the TEFRA hearing and to grant the limited approval described above. Additional actions related to the bond issuance will be the responsibility of CMFA and the Borrower.
CONSEQUENCE OF NEGATIVE ACTION:
Negative action would prevent CMFA from providing tax-exempt financing for Orbisonia Village’s Project in Contra Costa County, which would severely delay or possibly terminate the development of a new public library and 167 affordable housing units.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY TAX-exempt Revenue bonds for a qualified residential rental project IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $70,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF ORBISONIA VILLAGE AND CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, Bay Point Pacific Associates, LP (the "Borrower") a partnership of which Pacific West Communities, Inc. (the "Developer") or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the "Authority") adopt a plan of financing providing for the issuance of tax-exempt revenue bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the "Code") in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $70,000,000 in aggregate principal amount (the "Bonds"), to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 530 South Broadway Avenue, Bay Point, California (the "Project"); and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the County of Contra Costa (the "County") because the Project is located within the territorial limits of the County; and
WHEREAS, the Board of Supervisors of the County (the "Board") is the elected legislative body of the County and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the Board approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies, including the County; and
WHEREAS, pursuant to Section 147(f) of the Code, the Board has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority;
NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Contra Costa as follows:
Section 1. The foregoing resolutions are true and correct.
Section 2. The Board hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the Board that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.
Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The County shall have no responsibility or liability whatsoever with respect to the Bonds.
Section 4. The adoption of this Resolution shall not obligate the County or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.
Section 5. The officers of the County are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.
Section 6. This resolution shall take effect immediately upon its adoption.