Transforming aging communities into vibrant neighborhoods.
CalMuni PFA facilitates public-private partnerships between real estate developers and public agencies by providing turnkey tax-exempt bond financing for qualified workforce housing projects in the State of California, helping communities provide and preserve affordable housing for moderate- and middle-income families and individuals.
While multiple public subsidy programs exist to support very-low and low-income housing, options for moderate and middle-income households (81-120% of area median income) are limited. Access to the lower tax-exempt interest rates through the municipal bond market helps developers solve the financing puzzle of workforce housing. The CalMuni PFA Housing Financing Program helps communities ensure that essential workers, such as teachers, safety personnel, technicians, medical assistants, etc., can afford to live where they work. Both developers and public agencies can initiate their community’s participation in the Program.
About the HouseCA Program
By joining the CalMuni PFA Workforce Housing Financing Program, local public agencies can partner with developers and affordable housing operators to provide more local workforce housing through the issuance of tax-exempt and taxable revenue bonds to finance the acquisition and development of rental housing projects. Qualifying projects include the purchase of existing market-rate rental properties and their conversion to workforce housing. The public agencies have the discretion of identifying specific projects that are eligible for the program.
Use of Funds
The bond proceeds can be used to finance project acquisition and renovation costs, fund various reserves for the project (including the operating reserve fund) and the bonds, and pay the costs of issuance of the bonds. The bonds are issued as limited obligations of the CalMuni PFA and are payable only from the revenues and receipts of the underlying project, ensuring that they do not constitute the debt or obligations of the public agencies. The bonds are secured by a first mortgage on the property, project revenues, and other customary collateral.
Our program alleviates the agencies from the responsibilities of managing and maintaining rental property, while serving an important public benefit purpose of providing workforce housing, allowing for setting policy requirements (income-level restrictions, annual rent increase parameters, limits for tenant displacement, etc.). The agencies also have a right to purchase the property in the future for the amount of the outstanding debt. Project surplus revenues are available to the agencies to be used for public benefit purposes.
CalMuni PFA Advantage
We can usually get you an interest rate quote within a week.
Finance 100% of Project Costs
You can borrow up to 100% of your housing project costs.
Fixed Interest Rates
Fixed interest rates are available at lower rate than the current interest rate being charged by public retirement systems.
We will tell you up front what your financing costs will be, and you can rest assured that there will be no hidden fees.
Simple & Efficient Process
We provide all forms of resolutions, staff reports and financing agreements for easy,quick adoption.