SONOMA COUNTY COMMUNITY DEVELOPMENT COMMISSION APPLICANT INSTRUCTIONS AND CHECKLIST for AFFORDABLE HOUSING PROJECTS

Transcription

1 SONOMA COUNTY COMMUNITY DEVELOPMENT COMMISSION APPLICANT INSTRUCTIONS AND CHECKLIST for AFFORDABLE HOUSING PROJECTS Please review the appropriate Funding Policies and these instructions before submitting your application. ELIGIBILITY FOR FUNDING: Applications must include the following to be deemed eligible for funding: 1) A resolution from the Board of Directors authorizing the funding application submittal (for non-profit agencies only) 2) A required City/Town Council Resolution endorsing the project (for projects seeking CDBG funds and that are located within one of the 7 incorporated jurisdictions) 3) A current development budget 4) A copy of the applicant s most recent audit 5) Complete answers to all applicable questions and all required supporting documentation All applications must meet at least one of the eligibility criteria found in the Funding Policies. APPLICATION FORMAT: Applicants must use the current funding application. All responses to questions should be typed, single-spaced, using not less than 12 point font and 1 inch margins. Use only the space provided and do not attach any additional pages. Please do not double-side your application, alter the pagination, change the order of the questions or change the page formatting. Do not have applications bound. Please use only clips or binders with tabs to indicate sections. Complete the entire application. Your application will be reviewed on the basis of the information you provide. Supplemental materials must be kept to a minimum and must be on 8 1/2 x 11-inch paper. Larger sized paper and excessive supplemental materials will not be reproduced for review by the committees and Board of Supervisors. APPLICATION ATTACHMENTS: The IRS Letter of Determination must be attached to the application for all non-profit agencies applying for funding. You will not be eligible for funding consideration unless non-profit status has been obtained and verified. Financial statements for the last two years, the most recent completed final audit report, and an IRS Form 990 from the most current tax year must be attached to the application. (Not Applicable for City/Town or County-Owned projects) A resolution from the Board of Directors that authorizes the submittal of the application must be attached. Applications from non-profit agencies will not be eligible for funding consideration without a Board of Directors resolution. A City/Town Council Resolution endorsing the application is required for proposed programs that are located in, and will serve the residents of, one or more specific incorporated areas (non-countywide programs), if applicable. ADDITIONAL APPLICATION ATTACHMENTS AS AVAILABLE: Site location map Evidence of site control Preliminary Title Report Appraisal Revised 03/19/2012

2 General Plan consistency determination CHDO Designation Letter or Plan (CHDO s only) Architectural site plans and/or drawings Financing commitment letters Contractors cost breakdown Environmental clearance/reports Current utility allowances SUBMITTING THE APPLICATION: All applications must contain all required information and be submitted to the Sonoma County Community Development Commission by August 24, 2012, before 5:00 p.m to be considered eligible for CFH funding. Submit one original and one hard copy of the application to the SCCDC at 1440 Guerneville Road, Santa Rosa, California Also submit one electronic copy to cindy.rich@sonoma-county.org. Please provide a complete set of attachments with the original hard copy application. Call Cindy Rich at the Sonoma County Community Development Commission, at (707) or by at cindy.rich@sonoma-county.org if you have any questions about the application form or submission requirements. Revised 03/19/2012

3 SONOMA COUNTY COMMUNITY DEVELOPMENT COMMISSION FUNDING APPLICATION AFFORDABLE HOUSING Application Summary Sheet Burbank Housing Development Corporation Legal Name of Organization Crossroads Program or Project Name John Lowry, Executive Director, Organization Executive Director Name, Title & address Thomas Lauderbach, Project Manager, Contact Person (if other than E.D.) Name, Title & address 790 Sonoma Ave., Santa Rosa, CA Mailing Address of Organization Telephone Organization website address Funding Year: 2012 Project DUNS Number: Amount Projected Budget Requested: 700,000 for this Program: 700,000 AFFORDABLE HOUSING DEVELOPMENT PROJECTS In 50 words or less, describe the project for which you are requesting funding: Crossroads will provide long-term affordable housing for 78 very low- and low-income Sonoma County households. The 79-unit rental development of one, two and three-bedroom apartments in the unincorporated Roseland area of Santa Rosa will include indoor and outdoor community meeting areas, laundry and outdoor play areas. The development will be reviewed and approved under a joint County and City of Sonoma process. Type of Project: Rental Family Rental Elderly Ownership Special Needs-Describe: Application for: (Check all that apply) CDBG* HOME HOME CHDO Redevelopment County Fund for Housing CDC Date and Time Received Page 1 of 12

4 Project Summary Name of Project: Crossroads Project Street Address: Burbank Avenue, Santa Rosa, CA Is project within the limits of any city/town? No Within a redevelopment area? Yes If yes, which city/town? Which redevelopment area? Southwest Santa Rosa Do you have Article 34 authority from the city/town? Yes, article 34 authority will be provided by Sonoma County where adequate authority is available. If yes, please send copy of letter. If no, Attach written legal opinion stating why Article 34 referendum authority is not required. (Check all that apply) Site Acquisition for New Development Acquisition of Existing Structures for Housing Offsite Improvements (CDBG, CFH, and Redevelopment Only) Predevelopment (CDBG, CFH, and Redevelopment Only) Housing Construction Housing Rehabilitation Total # of Units: 79 Total # of Affordable Units: 78 Total # of HOME-Assisted Units, if applicable N/A Total Development Cost:26,316,287 Funds Requested: 700,000 Summary Project Description: This section will be incorporated into the staff reports provided to the Community Development Committee, the Technical Advisory Committee and the Board of Supervisors. Descriptions MUST BE 125 words or less. Crossroads is a proposed 79 unit multifamily rental development which will serve Sonoma County households earning between 30% and 60% of area median income. The design includes 23 one-bedroom, 22 two-bedroom, and 34 three-bedroom units in 26 buildings, with on-grade parking and indoor and outdoor community spaces. Twenty-four units will be affordable to households at 30% of the Area Median Income, 16 units affordable to households at 40% AMI, 16 units at 50% AMI and 22 units at 60% AMI; one unit will be reserved for the Resident Manager. The development will be well served by public transportation and near public schools, shopping and services. Crossroads needs additional County funding support to improve its competition for a low income housing tax credit allocation. Projects are scored based on the percentage of local public funding against the total project cost; the higher the percentage, the higher the score. Page 2 of 12

5 * CDBG applicants must be 501(c)(3) non-profit organizations. ** CDBG funds cannot generally be used to pay for construction costs. A narrow exception is for housing units developed by a designated Community Based Development Organizations that qualified as neighborhood revitalization, community economic development or energy conservation projects. Call Community Development Commission staff for additional information.. Page 3 of 12

6 I. Detailed Project Description Please provide a written narrative to describe your project. At a minimum, the narrative should include a description of the type of housing proposed, target population(s), any planned services for residents, the proposed use(s) of the requested funding, and anticipated environmental issues (e.g., vernal pools, heritage trees, riparian corridor, contamination, flood plain, endangered species, historical and archaeological impacts, etc.). Please state whether you propose that an entity other than the applicant will execute the loan documents for the funds requested in this application. If the project will use a tax credit limited partnership to finance the project, please describe the organizational structure of the partnership and the roles of various partners or other related organizations. Crossroads needs additional County funding support to improve its competition for a low income housing tax credit allocation. Projects are scored based on the percentage of local public funding against the total project cost; the higher the percentage, the higher the score. Crossroads has received previous funding allocations from the County; a 1,080,200 CFH loan in 2010, a 400,000 HOME award in 2010 and another 100,000 HOME award in Unfortunately, development has been delayed due to the economic downturn and we were in danger of not meeting the performance timeline for the 400,000 HOME award and County staff had to reassign the funds to another local use to avoid HUD taking back the funds. The 1,080,200 CFH loan has closed and the funds fully expended on predevelopment activities. This application seeks new CFH funds to replace the reprogrammed HOME award and additional funds to improve competition for a low income housing tax credit allocation. Crossroads offers to the County the somewhat rare opportunity to support a large scale family development, leverage previously committed and/or expended County and City housing funds, and attract more than 11,000,000 of investor equity into affordable housing to serve our county residents. Crossroads is a proposed 79 unit multifamily rental development which will serve Sonoma County households earning between 30% and 60% of area median income. The design includes 23 one-bedroom, 22 two-bedroom, and 34 three-bedroom units in 26 buildings, with on-grade parking and indoor and outdoor community spaces. Twenty-four units will be affordable to households at 30% of the Area Median Income, 16 units affordable to households at 40% AMI, 16 units at 50% AMI and 22 units at 60% AMI; one unit will be reserved for the Resident Manager. The development will be well served by public transportation and near public schools, shopping and services. Burbank Housing Development Corporation (BHDC) is the sponsor and developer of the complex. The planned owner will be a tax credit limited partnership with BHDC as general partner. Crossroads will provide much needed multifamily rental housing affordable to extremely low-, very low- and low-income individuals and families in the unincorporated Roseland area of Santa Page 4 of 12

7 Rosa. Development of Crossroads will fulfill numerous policies and objectives of the 2009 Housing Element of the Sonoma County General Plan as well as the City of Santa Rosa General Plan. BHDC carefully follows the New Home Construction Green Building Guidelines published by the Sonoma County Waste Management Agency and expects to score approximately 130 Green Points. Site Location: The site is approximately four acres located on two adjacent parcels: 1980 Burbank Avenue (APN ) and 2010 Burbank Avenue (APN ). The site is relatively flat and is currently vacant. The surrounding neighborhood is low-density singlefamily residences to the north and south. A 1950s subdivision of single-family homes is to the east and south east. A Head Start pre-school and school district corporation yard are immediately adjacent to the northeast property line. A new school, Burbank Elementary School, is about ¼-mile to the north. Design: Conceptual design work has progressed to determine the feasibility of approximately 79 units on the site. The current mix includes 23 one-bedroom, 22 two-bedroom, and 34 threebedroom units in 26 buildings including units above a Community Center. A communal laundry room and play structure will be incorporated into the design. Site Control: BHDC owns the site. Planning Entitlements: The project is fully entitled. The site is currently in an area zoned RRB6 which denotes a residential use with 4-acre minimum which is a holding condition pending annexation by the City of Santa Rosa. The annexation process is currently on hold and appears to be several years from completion. BHDC s application to the County seeking an affordable housing overlay to rezone the existing RRB6 with a 4-acre minimum, a CEQA environmental review and design review was approved. BHDC received City of Santa Rosa City Council approval for a Utility Certificate for water and sewer service to the site. LAFCO has approved the City s water service to the development. Environmental: Harris & Lee Environmental Services performed an Environmental Site Survey (July 17, 2001) and Environmental Site Assessment, Phase 1 Investigation February 26, 2002). Both studies concluded that no Recognized Environmental Conditions were revealed. The site includes a very small amount of seasonal wetlands and a roadside ditch. This provides suitable habitat for the California Tiger Salamander and several rare plant varieties, although neither salamanders nor the rare plants were found on the site during several surveys. BHDC and its construction contractors will follow specific Conservation Measures outlined in the Fish and Wildlife Service s Biological Opinion (June 29, 2007) to monitor for and protect any salamanders which might be present on the site during construction. Also, to comply with the Biological Opinion, BHDC purchased CTS and wetland construction credits at the Hazel Mitigation Bank and preserved plant habitat at the Davis Preserve. Financing: BHDC anticipates using funds from Sonoma County (County Fund for Housing and HOME), City of Santa Rosa, 9% federal low-income housing tax credits, Federal Home Loan Bank Affordable Housing Program (AHP), and private mortgages. If this application is approved, the 700,000 County funds will be used for development expenses. If we are successful with a 9% tax credit application, we do not anticipate needing additional County funding. Page 5 of 12

8 Roles and Responsibilities: Burbank Housing Development Corporation is the sponsor and developer. BHDC is a community-based nonprofit public benefit corporation. Since inception in 1980, BHDC has developed or acquired over 3,500 rental and ownership units with an additional 442 units currently in construction and development stages. BHDC s rental housing production includes 57 projects consisting of more than 2,700 units. BHDC is responsible for managing all design, financing, construction, marketing, rent-up, and property management activities. Upon completion, BHDC will contract with Burbank Housing Management Corporation to provide marketing, rent-up and property management services. BHDC will serve as the general partner of a limited partnership to be organized to syndicate the project s low income housing tax credits. BHDC will hold a 0.1% financial interest in the development; limited partners will hold a 99.9% interest. We expect BHDC will execute the County loan documents and later assign the loan to the yet-to-be-formed limited partnership. Services Plan: Burbank Housing Management Corporation, in addition to providing property management services, will coordinate through its Service Coordinators the provision of a range of community support services to the residents. Generally, BHMC staff arranges on-site classes on topics such as parenting, ESL, nutrition, money management, safety, domestic violence and child abuse prevention, and health education programs offered through local providers. They organize a variety of on-site youth programs/activities including after-school homework club, supervised recreational activities, arts and crafts and summer activities, mentoring and tutoring, gang diversion programs and support, and Scouting groups. Local volunteers and community organizations assist with these programs. Specific programming at Crossroads will be determined in response to the needs of the residents. In this part of the County, Burbank typically partners with the Redwood Empire Food Bank for food distribution and operating a food pantry; Community Action Partnership for money management and rental assistance; Alliance Medical Center for health education and parenting classes; Center for Well Being for nutrition classes; and Pediatric Dental Initiative (PDI) for classes on early childhood preventive dental care. Page 6 of 12

9 II. Project Schedule Include all major milestones such as land acquisition, General Plan Amendment and Rezoning, Density Bonus/Housing Element Housing Opportunity Area approval, Design Review approval, schematic design, design development, construction documents, construction phase, initial occupancy, and, if applicable, assignment of the project to a limited partnership or other entity. Specify tentative dates for closing the proposed loan and first request for funds, as well as when construction financing and permanent financing will close. Please provide realistic dates for completion of activities and expenditure of funds. These dates will be included in the CDBG Subrecipient Agreement and/or HOME Developer Agreement. ACTIVITY TARGET COMPLETION DATE FUNDS EXPENDED Site Acquired July 2004 Final Land Use Entitlements Received September 2010 Final Environmental Review Received April 2012 TCAC Application Submitted July 2012 Start of Construction March 2013 Completion of Construction July 2014 Rent up Completed October 2014 Conversion to Permanent Financing December 2014 III. Development Team 1. Applicant: Name: Burbank Housing Development Corporation (BHDC) Address: 790 Sonoma Ave. City, State, Zip: Santa Rosa, CA Contact Person: Thomas Lauderbach Telephone: Address: tlauderbach@burbankhousing.org Page 7 of 12

10 Nonprofit For-Profit CHDO** 2. Partners or Name: Related Entities Address: City, State, Zip: Contact Person: Nonprofit For-Profit CHDO** Name: Address: City, State, Zip: Contact Person: Nonprofit For-Profit CHDO** ** If applying for HOME Program CHDO funds, attach Sonoma County CHDO designation letter or a plan to become an independent, fully functioning housing development CHDO entity. 3. Architect: Name: Tierney/Figueiredo Architects Address: 817 Russell Ave., Suite H City, State, Zip: Santa Rosa, CA Contact Person: Randy Figueiredo Nonprofit For-Profit CHDO** 4. General Name: To be determined Contractor Address: City, State, Zip: Contact Person: Telephone: License No. 5. Property Name: Burbank Housing Management Corporation Manager Address: 790 Sonoma Ave. City, State, Zip: Santa Rosa, CA Contact Person: Annie McNeaNy, Director of Property Management Page 8 of 12

11 IV. Site Information 1. Number of parcels, Address(es) and Assessor s parcel number(s): Two Parcels: Burbank Avenue, Santa Rosa, CA APN: and -019 Census Tract: Attach current Preliminary Title Report, if available. 2. Total acreage: Total number of housing units proposed: Status of Site Control: Identify the applicant s form of site control (whether ownership, purchase agreement, lease, or option agreement), the dates of any key expectations (e.g. when a purchase agreement expires) and the applicant s current access to each parcel. BHDC holds fee title to the property per the attached Preliminary Title Report Attach Site Control documents, if available. You must have site control in order to be eligible for funding assistance. 5. What is the current use of the site? Currently the site is vacant 6. Is the site, or any part of it, within a 100-year floodplain? No List FIRM Map number: 06097C0736E 7. If applying for funds to acquire the site, attach a copy of a current appraisal, if available*. N/A * The appraised value must fully secure the Commission s loan(s). In addition, the total purchase price may not exceed the reasonable cost for the property. 8. a. Which jurisdiction(s) must approve the project? Sonoma County and City of Santa Rosa b. What local approvals and entitlements will be required to develop the proposed project? All local approvals and entitlements are secured - See Tab 12 c. Describe the status of the local approvals and entitlements: All completed - See Tab 12 Page 9 of 12

12 9. a. If the site is located in an unincorporated area of the County, have you or do you plan to submit an application to the County Planning Division PRMD) for: Density Bonus Housing Element Type A Housing Element Type C X (Low-income Housing Overlay) Application approved b. Date of Application: October, 2009 If applying for any of the incentives listed above, contact the Community Development Commission to discuss the schedule for preparation and Board approval of the Affordable Housing Agreement. 10. a. Will the project involve demolition of existing structures or relocation of residential or business occupants? No If yes, explain status of these activities: b. Replacement Housing (Project Name and Location): c. Relocation Preference (Project Name and Location): Note: The Commission may approve funds for a project that involves permanent displacement only if the project complies with the Sonoma County Residential Anti-displacement and Relocation Assistance Plan. 11. a. How will water and sewer service be provided? by the City of Santa Rosa b. Status of planned water and sewer service: Utility Certificate application for water and sewer was approved August 03, a. Existing Improvements: None Commercial Residential Industrial Number of Structures Year Built Number of Vacant Structures Number of Occupied Structures Number of Structures to be Demolished Estimated Cost of Relocation b. Existing Residential Improvements Number of Existing Units Number of Occupied Units Number of Vacant Units Number of Substandard Units Number of Units to be Demolished Estimated Cost of Relocation SRO Studio 1 BR 2 BR 3 BR 4 BR Page 10 of 12

13 13. Using the scoring methodology found in the "Green Points" section of the New Home Construction Green Building Guidelines, go to please list the total Green Points for your project: 100 V. Project Description Attach reduced set of site plan and elevations, if available. (Printed on sheets not larger than 8 ½ X 14 in size) Proposed Tenancy for housing projects: Household Type SRO Studio 1 BR 2 BR 3 BR 4BR Average Square Feet Per Unit # of Units for Large Families (5 or more Persons) 32 # of Units for Small Families (4 or fewer Persons) TOTAL NUMBER OF UNITS: How many of the total units will be for: Elderly Disabled Accessible* Special Needs Population Resident Manager 1 Other (specify: _ ) Unrestricted 1 * In new construction and substantial rehabilitation rental projects assisted with HOME or CDBG funds, at least 5% of the units (not less than 1 unit) must be accessible to persons with mobility impairments, and an additional 2% of the units (but not less than 1 unit) must be accessible to persons with sensory impairments. Projects assisted with other funds must satisfy applicable federal, state and local regulations regarding the provision of accessible housing. * Ownership housing projects assisted with funds from these programs must comply with applicable federal, state and local laws regarding the provision of accessible units. Page 11 of 12

14 1. Estimated Monthly Rent Levels before deduction of utility allowances: Income Category SRO Studio 1 BR 2 BR 3 BR 4 BR Extremely Low 30% of Median Very Low 40% of Median Very Low 50% of Median Low 60% of Median Market Rate > 80% of Median Resident Manager s Unit Estimated Utility Allowance* Units / Rent Units / Rent Units / Rent Units / Rent Units / Rent , , , Units / Rent * Please provide list of tenant-paid utilities. 2. What is the proposed length of affordability for the affordable units? 55 Years* * Proposed length of affordability must be equal to or exceed the term of the requested financing (generally 30 years). Generally, 55 years is required for rental housing projects. 3. Estimated Affordable Sales Prices (ASP): N/A Income Category SRO Studio 1 BR 2 BR 3 BR 4 BR Extremely Low 30% of Median Very Low 50% of Median Units /ASP Units /ASP Units /ASP Units /ASP Units /ASP Units ASP 60% of Median Low 80% of Median 100% of Median 120% of Median Page 12 of 12

15 VI. Development Budget 1. Sources Tables (listed in proposed order of recorded seniority) Estimated Predevelopment and Construction Financing: Lender Amount Interest Rate/Term Use(s) Wells Fargo 17,712,488 4%/24 Development Construction Loan months City of Santa Rosa 1,950,000 3%/55 years Development SCCDC CFH #1 1,088,200 3%/55 years Development SCCDC CFH #2 700,000 3%/55 years Development SCCDC HOME 100,000 3%/55 years Construction LP Initial Capital 1,858,163 Development Contribution Total Amount: 23,408,851 Commitment Status This Application Applied for Does this qualify as a HOME Match? No Yes Yes Yes No No Estimated Permanent Financing: Lender Amount Interest Rate/Term Use(s) First Mortgage 2,511,157 6%/30 years Take out construction loan City of Santa Rosa 1,950,000 3%/55 years Development SCCDC CFH #1 1,088,200 3%/55 years Development SCCDC CFH #2 700,000 3%/55 years Development SCCDC HOME 100,000 3%/55 years Construction AHP 780,000 3%/55 years Development Deferred Interest 603,438 Deferred Interest GP Equity 1,858 Development LP Equity 18,581,634 Development Total Amount: 26,316,287 Commitment Status Applied for This Application To be applied for Applied for Does this qualify as a HOME Match? No Yes Yes Yes No Yes No No No Attach copies of financing commitment letters. Page 13 of 12

16 Attach an itemized development budget, including a Sources and Uses Table, identifying distributions to the owner, developer, partners or other entities during the development phase. Page 14 of 12

17 VII. Summary of First Year Operating Budget (Rental Housing projects only) Total Per Unit Gross Potential Rental Income 735,180 9,306 plus other income (e.g. laundry) 5, Less _5_ % Vacancy/Rent Loss 37, Effective Gross Income 703,238 8,902 Less Total Operating Expenses 448,069 5,672 Less Payment to Replacement Reserves 47, Less Payment to Other Reserves Net Operating Income 207,768 2,630 Less Debt Service Payments 180,668 2,287 Net Cash Flow 27, Distributions 27, Debt Service Coverage Ratio 1.15 Attach a 30-year operating budget and cash flow projection that shows estimated project income, operating expenses, reserves, debt service and distributions. Please include a Totals column after year 30. Page 15 of 12