Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing Related Front Porch Communities and Services Presented by Vic Erganian City Treasurer/Deputy Finance Director June 19, 2017 – City Council Item 19

TEFRA Hearing – Pacific Oaks College Front Porch Communities requested that the California Statewide Communities Development Authority issue $175 million in revenue bonds for the purpose of financing and refinancing the acquisition and renovation of its senior living communities in Pasadena, San Diego, and Anaheim. The bonds will be issued on a tax-exempt basis under the IRS Code of 1986.

The Villa Gardens The Villa Gardens Constructed in 1987 842 E. Villa Street 190 Independent living units and 39 assisted living units Skilled nursing facility with 54 skilled nursing beds

TEFRA Hearing – Pacific Oaks College Since the project is located in Pasadena, Section 147(f) of the IRS Code requires that for the bonds to be issued on a tax-exempt basis. They must be approved by the Pasadena City Council prior to their issuance.

Fiscal Impact There is no fiscal impact to the City. The TEFRA hearing is required under Section 147(f) of the Internal Revenue Code. The City of Pasadena does not bear any responsibility for the tax exempt status of the bonds, the debt service on the bonds, nor any other matter related to the bonds.