AFFORDABLE HOUSING DEVELOPMENT PROPOSAL REVIEW. Reviewer Score

Transcription

1 AFFORDABLE HOUSING DEVELOPMENT PROPOSAL REVIEW Proposer: USA Properties - Backer Ranch Square : Project Design and Community Benefit Project enhances and complements the surrounding neighborhood. Project location provides tenants with easy access to major bus routes, shopping, and social service providers. Proposes support services for the lowincome residents through a provider with a proven record of success. Offers on-site tenant amenities for lowincome residents and surrounding communities that would not normally be available. Site plans and unit plans suitable for targeted population. Project Financial Feasibility Status of funds from other sources (such as fee waivers, payment of infrastructure costs, Low Income Housing Tax Credits (LIHTC), tax-exempt bonds, and lender financing). Cost reasonableness. Competitiveness to receive LIHTC (if applicable). Amount of per-unit and per-project funding requested. Proposed cost savings sharing in a percentage equal to the City s contribution to the total project financing. Likelihood of the project being constructed within the next 24 months. Project provides buffer between shopping center to north and single-family homes to the south. Project is street-facing and offers a complementary color palette, but needs some additional work to increase visual interest (such as roofline variation). Adjacent to shopping center with Kohl s, Trader Joe s, and many other restaurant/shopping options; short distance to Nugget Market and future Costco; bus stop at Elk Grove Blvd has ½ hour weekday headways. Support services provider is LifeSTEPS, which provides similar services to more than 150 affordable housing projects in CA. Amenities include a swimming pool, recreation and fitness center, gardens, and pet washing facilities. Three-story, center-loaded corridor building with two elevators and surface parking (90 spaces). Unit plans are generally suitable, but some units are far from parking. Lack of inunit laundry or hook-ups may be a deterrent for some. Overall request: $5 million. Cost per unit is $273,374; cost per square foot is $ ($90.45 City). Cost per square foot is substantially higher than other proposal and other recent projects. City subsidy per affordable unit is $56,180. Developer fee of $1.4 million is 6% of total project cost (and maximum allowed by Tax Credit Allocation Committee). Construction completion projected for January Sources of funding are tax-credit equity and City loan; tax credits not yet secured, but project is anticipated to be competitive. Did not address cost savings sharing, but have done a proportionate split on previous projects.

2 Proposer: Backer Ranch Square Development and Management Capacity Experience developing, owning, and operating affordable housing projects similar to the one proposed. Record of developing successful housing within the Sacramento region. Strength, stability, and experience of team members individually and working as a team. Assessment by references. Project Readiness Evidence of private or public lender commitment to the project. Zoning or development approval has been obtained or is supported and/or readily achievable. Evidence of clear title, appraised value, and environmental acceptability of the identified site. Preliminary design sketches, site and unit layout, and landscape plan. BONUS Financial Capacity Project has the financial capacity to debt service all City funds requested in the application based on the pro forma detail included in the application. The development does not defer payment on any City funds. BONUS Special Needs Project incorporates facility space for one or more Elk Grove nonprofits, such as the Food Bank, or provides at least two units of extremely low-income housing set aside for persons exiting one of the City s transitional houses for the homeless Has more than 13,000 units in 90+ projects (37 projects with 9% tax credits). Owns five affordable housing projects in Elk Grove (three Terracinas, two Vintages), generally well-managed. Stable team City staff has successfully worked with on prior projects. Property managers tend to turn over less frequently than other projects. Has executed purchase agreement for property. Plans to submit for 9% tax credits in March Zoning/development approval is likely with some design modifications. Requires parcel split prior to 9% tax credit application. Anticipate CEQA exemption because plan is consistent with Specific Plan EIR. Financing is tax credit equity and City loan; have good relationships with tax credit investor and construction lenders. Proposes payment of half of annual NOI. Pro forma shows $33K payment in Year 1, declining over time. Developer committed to providing two units of ELI housing for persons exiting transitional housing. Page 2 of 3

3 Proposer: Backer Ranch Square BONUS Energy Efficiency Project will incorporate green building and energy efficiency ideas, such as energyefficient appliances and heating/cooling systems, thereby providing increased sustainability and attractiveness of housing and neighborhoods. TOTAL SCORE (including bonus) 115 Will exceed Build It Green standards. Exceed Title 24 by at least 20%. Drought tolerant landscaping and high-efficiency irrigation. Energy Star appliances and low-flow plumbing fixtures. Photovoltaic system serving common areas. Solar hot water. Signature Date Page 3 of 3

4 AFFORDABLE HOUSING DEVELOPMENT PROPOSAL REVIEW Proposer: The Pacific Companies Bow Street Apartments : Project Design and Community Benefit Project enhances and complements the surrounding neighborhood. Project location provides tenants with easy access to major bus routes, shopping, and social service providers. Proposes support services for the lowincome residents through a provider with a proven record of success. Offers on-site tenant amenities for lowincome residents and surrounding communities that would not normally be available. Site plans and unit plans suitable for targeted population. Project Financial Feasibility Status of funds from other sources (such as fee waivers, payment of infrastructure costs, Low Income Housing Tax Credits (LIHTC), tax-exempt bonds, and lender financing). Cost reasonableness. Competitiveness to receive LIHTC (if applicable). Amount of per-unit and per-project funding requested. Proposed cost savings sharing in a percentage equal to the City s contribution to the total project financing. Likelihood of the project being constructed within the next 24 months. Project currently surrounded by vacant or underutilized land. Parcel to the south is zoned for commercial development. Parcels to the west are zoned for multifamily housing. Nearby elementary/middle/high schools; bus stop at Power Auberry has 1-2 hour weekday headways, also served by commuter routes; adjacent to future park site (CSD timeframe to build estimated at 5-10 years); limited existing shopping/dining options in proximity. About 3/4 mile from existing 150-unit affordable family complex. Support services provider is Pacific Housing, which provides similar services to 90 affordable housing projects in CA. Amenities include a swimming pool, community building with a fitness center and computers, children s play area, and in-unit laundry. Four three-story, walk-up buildings with separate community center building; surface parking (90 standard, 99 covered spaces). Unit plans appear appropriate for family housing. Overall request: $4-6.5 million; indicated more funding increases competitiveness for tax credits. (Balance of analysis assumes $5 million loan.) Cost per unit is $237,909; cost per residential square foot is $ ($51.43 City). City subsidy per affordable unit is $51,546. Developer fee of $1.4 million is 6% of total project cost (and maximum allowed by TCAC). Construction completion projected for March Sources of funding are tax-credit equity, City loan, permanent loan, and county fee waivers. Tax credits not yet secured, but developer expects project to be competitive. Some clarification on site amenities scoring requested. Did not address cost savings sharing specifically, but did not agree to provision on prior project.

5 Proposer: Bow Street Apartments Development and Management Capacity Experience developing, owning, and operating affordable housing projects similar to the one proposed. Record of developing successful housing within the Sacramento region. Strength, stability, and experience of team members individually and working as a team. Assessment by references. Project Readiness Evidence of private or public lender commitment to the project. Zoning or development approval has been obtained or is supported and/or readily achievable. Evidence of clear title, appraised value, and environmental acceptability of the identified site. Preliminary design sketches, site and unit layout, and landscape plan. BONUS Financial Capacity Project has the financial capacity to debt service all City funds requested in the application based on the pro forma detail included in the application. The development does not defer payment on any City funds. BONUS Special Needs Project incorporates facility space for one or more Elk Grove nonprofits, such as the Food Bank, or provides at least two units of extremely low-income housing set aside for persons exiting one of the City s transitional houses for the homeless Has more than 7,000 units in 140+ projects (80 projects with 9% tax credits). Owns one affordable housing project (Avery Gardens) in Elk Grove, which opened in Few projects in Sacramento region; besides Avery Gardens, nearest are in West Sac, Winters, and Dixon. Significant experience developing in rural areas. Stable team that has worked together on previous projects. Has executed purchase agreement for property. Submitted plans to City and has been working with Planning staff to resolve concerns. Zoning is RD-25 currently; development approval achievable. Plans to submit for 9% tax credits in June Anticipate CEQA exemption because plan is consistent with Housing Element EIR. Financing is tax credit equity, permanent loan ($2.8 million), and City loan; have good relationships with tax credit investor and lender. Proposes payment of half of annual NOI after debt service. Pro forma shows $15K payment in Year 1, escalating over time to $K in Year 15. Developer committed to proactively marketing two units of ELI housing for persons exiting transitional housing. Page 2 of 3

6 Proposer: Bow Street Apartments BONUS Energy Efficiency Project will incorporate green building and energy efficiency ideas, such as energyefficient appliances and heating/cooling systems, thereby providing increased sustainability and attractiveness of housing and neighborhoods. TOTAL SCORE (including bonus) 115 Will score at least 100 points Build It Green Program. Will exceed Title 24 by at least 17.5%. Drought tolerant landscaping and high-efficiency irrigation. Low-flow plumbing fixtures. Concentration on indoor air quality with low/no VOC materials. Convenient recycling stations for residents. Signature Date Page 3 of 3