To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Termination of Membership in Conduit-Issuer Joint Powers Authorities
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
1. APPROVE withdrawal from membership in the following conduit-issuer Joint Powers Authorities:
a. California Statewide Communities Development Authority; and
b. California Municipal Finance Authority, upon conclusion of financing of the Orbisonia Heights development project in unincorporated Bay Point, by the Authority.
2. DIRECT the County Administrator, or designee, to provide written notice to each Joint Powers Authority of the withdrawal.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND:
On September 30, 2025, the U.S. Securities and Exchange Commission (SEC), Office of Municipal Securities (OMS) contacted the County requesting a meeting to discuss the role that the County plays in the oversight of Joint Powers Authority (JPA) activities, specifically that of conduit-issuer JPAs. This follows several years of the OMS raising concerns regarding the oversight of JPAs by member agencies, such as cities and counties, given that bonds issued by conduit-issuer JPAs have some of the highest default rates in the country. In addition, many of these JPAs have led the emergence of certain deal structures, including so-called "workforce housing" deals, that have filed a high number of material event notices that may suggest potential economic difficulties or future defaults.
History and Formation of Conduit-issuers in Contra Costa County
Contra Costa County is a member of certain Joint Powers Authorities (JPAs) that serve as "conduit-issuers" for purposes of issuing tax-exempt bond financing, including the California Statewide Communities Development Authority (CSCDA) and the California Municipal Finance Authority (CMFA). Membership in these entities was established to facilitate access to the municipal bond market for local developers and ...
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