The California Public Finance Authority (CalPFA) is a political subdivision of the state of California. It was created on May 12, 2015, to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt financing to promote economic, cultural, and community development opportunities that create temporary and permanent jobs, affordable housing, community infrastructure and improve the overall quality of life in local communities. CalPFA administrative offices are located in Walnut Creek.
The Board of Directors of CalPFA is composed of members of the Board of Supervisors of Kings County, the Charter Member. To date, seven public agencies have become members of CalPFA, including Marin County.
The County will periodically be requested to hold public hearings required by the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) for bonds issued by CalPFA in Contra Costa. CalPFA will share at least ten percent of the annual compliance fees that it collects from these issuances with the County.
For CalPFA to have authority to issue bonds for any future project in the County (which may include any city that gives the County their consent to hold the TEFRA hearings), it is necessary for the County to become a member of CalPFA. County staff supports joining CalPFA as an Additional Member (as opposed to a Charter Member such as Kings County) because it will provide developers with a local joint powers authority alternative to issue tax exempt private activity bonds. Private activity bonds are used to facilitate the financing of affordable housing, industrial development, solid waste and waste recycling facilities, and student loans. The Joint Exercise of Powers Agreement explicitly provides that CalPFA is a public entity, separate and apart from the Member executing the agreement, and the debts, liabilities and obligations of CalPFA do not constitute debts, liabilities or obligations of the Member executing the agreement. The Joint Exercise of Powers Agreement also expressly provides that any Additional Member may withdraw from the agreement upon written notice to the Board of Directors of CalPFA.
Entities seeking taxable and tax-exempt bonds for development projects will have fewer options for issuers and the County will not receive a portion of the annual fees collected by CalPFA.