Title
Enter into a Joint Community Facilities Agreement with the California Municipal Finance Authority and Approving Form Acquisition Agreement for Bond Opportunities for Land Development Program
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FileID
File ID: 2026-00849
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution authorizing the City Manager or designee to enter into a Joint Community Facilities Agreement (JCFA) with the California Municipal Finance Authority (CMFA) and approving a form Acquisition Agreement for use with the CMFA’s Bond Opportunities for Land Development Program (BOLD Program) for community facilities districts.
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Contact
Contact: Brent Mueller, Senior Development Project Manager, (916) 808-5715, bmueller@cityofsacramento.org; Eric Frederick, Special Districts Manager, (916) 808-5129, efrederick@cityofsacramento.org; Department of Finance
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A: Joint Community Facilities Agreement
4-Exhibit B: Form Acquisition Agreement
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Description/Analysis
IssueDetail
Issue Detail: On April 8, 2025, Council adopted Resolution No. 2025-0092, authorizing the City to join the BOLD Program so that small development projects could utilize a pooled tax-exempt bond financing program for development impact fees and public infrastructure improvement costs, such as roads, water, sewer, storm drainage, and parks for commercial, industrial, retail, and multi- and single-family residential developments. Joining the BOLD Program was recommended by the development community during a Streamline Sacramento meeting on February 27, 2025.
The Bold Program is an economic-development tool used throughout the State to finance public infrastructure required for new development. The BOLD Program is offered by CMFA, a joint powers agency that works on behalf of its members to facilitate economic development in local communities throughout the State. The City is already a member of CMFA.
The BOLD Program offers a means to finance new or continuing construction of infrastructure and public facilities through bonds CMFA issues as an alternative to issuance of land-secured bonds directly by a member public entity. BOLD is designed to help local government municipalities, schools and land developers throughout the State work together to cost effectively finance public infrastructure projects and development fees.
Under the BOLD Program, bonds are issued by a community facilities district (CFD) formed by CMFA under the Mello-Roos Community Facilities Act of 1982 (California Government Code Section 53311 et seq.) (Act). The Act offers financing flexibility and is commonly used by cities, schools and other local agencies throughout the State to generate funds for the payment of public facilities, including development fees for facilities. Pursuant to Section 53316.2 of the Act, a JCFA between CMFA and the City is required if bonds issued by a CFD formed by CMFA are to be used to fund City infrastructure. The JCFA is included as Exhibit A to the attached Resolution.
In addition, if a property owner/developer utilizes the BOLD Program to finance the acquisition of public facilities, an Acquisition Agreement must be entered into between the City and the participating property owner/developer. This Acquisition Agreement provides the terms and conditions under which financing for public capital improvements will be provided and to establish the procedure for disbursement of bond proceeds to pay for completed facilities. A form of the Acquisition Agreement is included as Exhibit B to the attached Resolution. Staff recommends this Acquisition Agreement be approved as to form for use with respect to any improvements to be constructed by a participating developer that requests financing as part of its BOLD Program application and for which the City will acquire such improvements after they are completed.
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PolicyConsiderations
Policy Considerations: The BOLD Program supports the City’s goal of improving development related processes with the overarching goal of increasing the supply and decreasing the cost of housing by offering development projects a cost-effective way to finance public infrastructure projects and development fees.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” per Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines and is not subject to the provisions of CEQA (CEQA Guidelines, §15060(c)(3).)
Included in the attached Resolution is a form of Acquisition Agreement. Before an Acquisition Agreement is executed for any specific project, CEQA review shall be completed for improvements included in the agreement. Further, no developer projects or definitive transaction documents regarding construction of such projects shall be deemed to be approved, until after (i) the proposed project is reviewed in accordance with the requirements of CEQA, and (ii) any additional conditions or changes to the project based on the CEQA review have been resolved in a manner acceptable to the City.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Participation in the BOLD Program gives the City another means to offer financing of impact fees and public infrastructure with competitive interest rates, lower financing costs, and minimal City staff costs. The City currently participates in the Statewide Community Infrastructure Program (SCIP) which offers similar financing options for the construction of public infrastructure and payment of development impact fees to the development community. The JCFA and Acquisition Agreement are needed to facilitate BOLD Program financing.
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FinancialConsiderations
Financial Considerations: There is no impact to the General Fund if the City Council adopts this resolution. All costs and expenses related to the formation, issuance of bonds and ongoing administration for any CFD formed by the BOLD Program are the responsibility of CMFA and there is no liability or fiscal impact on the City. The City can be reimbursed for any staff time expended on the program, and BOLD Program financing will not affect the dollar amount of development impact fees to be collected for each project.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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