Cupertino's City Council holds a public hearing Tuesday, Oct. 20, on tax-exempt bond financing for 234 affordable apartments planned on part of the former Vallco Mall site, an item postponed from the council's Oct. 6 meeting.
The project, known as The Rise Block 5, would be built by Eden Housing Inc., a nonprofit, at 10123 N. Wolfe Road, north of Vallco Parkway. According to the city's staff report, it would include 174 units for very low-income households, 58 for low-income households and two manager units. It is one phase of the affordable housing agreement tied to the larger Vallco Rise redevelopment.
What the council is being asked to do
The bonds, up to $135 million, would be issued by the California Municipal Finance Authority, a joint powers authority, to pay for buying, building and equipping the complex and to cover issuance costs. Federal tax rules require a public hearing in the city where the project sits, followed by approval from an elected official, before the bonds can be tax-exempt.
To let the authority act as issuer, Cupertino would also join it.
The staff report says the borrower alone would repay the bonds, and the city would have no financial or legal obligation for them or for the project. Joining the authority carries no cost, and Cupertino could withdraw with written notice. The city's general fund would receive about $24,000, a quarter of the authority's issuance fee.