Title
a. Conduct a public hearing under the requirements of the Tax Equity and Financial Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended; and
b. Adopt a resolution approving the issuance of California Statewide Communities Development Authority (CSCDA) revenue bonds (the “Bonds”), in the aggregate principal amount not to exceed $40,000,000 for the purpose of financing and refinancing various healthcare-related capital improvements for Montage Health, including the acquisition, construction, renovation and remodeling of certain real property and the purchasing and installation of certain equipment.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Conduct a public hearing under the requirements of the Tax Equity and Financial Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended; and
b. Adopt a resolution approving the issuance of California Statewide Communities Development Authority (CSCDA) revenue bonds (the “Bonds”), in the aggregate principal amount not to exceed $40,000,000 for the purpose of financing and refinancing various healthcare-related capital improvements for Montage Health, including the acquisition, construction, renovation and remodeling of certain real property and the purchasing and installation of certain equipment.
SUMMARY/DISCUSSION:
Federal law provides a process for a qualified 501(c)(3) organization to participate in tax-exempt financing under Section 147(f) of the Internal Revenue Code. TEFRA requires the legislative body of the local agency in which the project will be located to hold a TEFRA hearing for the notes to be tax-exempt. The County has the limited role of approving the financing but is not a party to the issuance and assumes no liability by its approval.
Montage Health, a California nonprofit public benefit corporation, requests that CSCDA participate in issuing the Bonds in an aggregate principal amount not to exceed $40 million for the financ...
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