There are ways for a city to fund affordable housing projects without taxing its residents. One way is through tax-exempt bonds. At a public hearing on Tuesday, Sept. 9, Fremont City Council approved a reissuance of bonds for the affordable housing project Osgood North Apartments on 41829 and 41875 Osgood Road.
The city does not owe any money for this affordable housing project, which has multiple funding sources, but they do have to hold a public hearing because the housing project is located in Fremont. The public hearing requirement complies with the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA).
“This bond is part of the financing mechanism for this project,” said Fremont Housing manager Lucia Hughes during a phone interview.
The city held a first TEFRA hearing in November 2021 for the housing project’s bond financing plan. Hughes said the bond is being reissued because construction of the housing project took longer than expected. This changes a part of the bond called a maturity rate, triggering a required TEFRA hearing held by the city council approving the bond reissuance.
The housing project is currently standing with residents living in nearly all of the 111 units. But, Hughes said some tasks needed to be done before construction is officially complete.
The housing project includes a mix of studios, two-bedroom, and three-bedroom units for residents who are considered to be part of very low income to low-income households. According to the City of Fremont website, that household income is a range of around $48,000 to $125,000 for a 4-member household. This means if two adults live in that household, they would each have to have an annual income that is less than $62,000.
