REPORT. DATE ISSUED: March 5, 2014 REPORT NO: HCR Chair and Members of the San Diego Housing Commission For the Agenda of March 14, 2014

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1 REPORT DATE ISSUED: March 5, 2014 REPORT NO: HCR14010 ATTENTION: Chair and Members of the San Diego Housing Commission For the Agenda of March 14, 2014 SUBJECT: Loan Recommendation for Veterans Village Phase 5 COUNCIL DISTRICT: 2 REQUESTED ACTION Recommend Housing Authority of the City of San Diego approval of a $1,444,846 forgivable residual receipts loan for the Phase 5 development of the Veterans Village of San Diego campus. STAFF RECOMMENDATION That the San Diego Housing Commission (Housing Commission) recommend that the Housing Authority of the City of San Diego (Housing Authority) take the following actions: 1) Approve a forgivable residual receipts loan to Veterans Village of San Diego (VVSD) in an amount up to $1,444,846 to be used to finance the construction of 18 transitional housing beds, 2 managers units and supportive service facilities, contingent upon obtaining all necessary thirdparty funding commitments, including a City of San Diego loan and Home Depot grant, as determined by the President & Chief Executive Officer (President & CEO) of the Housing Commission, or designee, upon advice of General Counsel. 2) Approve an increase to the Fiscal Year 2014 Housing Commission Budget of $1,444,846. 3) Authorize the President & CEO of the Housing Commission, or designee: a. To execute all necessary documents and instruments to effectuate the transaction and implement the project, in a form approved by General Counsel, and to take such actions as are necessary, convenient and/or appropriate to implement the approvals upon advice of General Counsel; and b. To adjust financing terms/conditions as necessary for consistency with requirements of other funding sources or to accommodate market changes, not to exceed the maximum Housing Commission loan amount of $1,444,846. c. To substitute approved funding sources with any other available funds as deemed appropriate, contingent upon budget availability, and further authorize the President & CEO, or designee, to take such actions as are necessary, convenient and/or appropriate to implement this approval and delegation of authority by the Housing Commission upon advice of General Counsel.

2 February 13, 2014 Loan Recommendation for Veterans Village Phase 5 Page 2 SUMMARY The Project The VVSD campus is located at 4141 Pacific Highway within the North Bay Redevelopment Project Area (Attachment 1). Situated on a fiveacre site, the VVSD campus consists of 224 early treatment beds (Phase 12), 120 transitional housing beds (Phase 34), administrative offices, a cafeteria, outpatient care facilities, employment office, medical clinic, auditorium and classrooms. The VVSD campus provides a full range of comprehensive and innovative services for military veterans, including prevention, intervention, treatment and aftercare. The program is designed to move veterans through a structured process, beginning with a state licensed residential early treatment program with case management, mental health therapy, employment development and community reintegration. Veterans that have 120 days of sobriety and continue to participate in the offered programs are eligible to move into transitional housing located on the VVSD campus. The main goal of the transitional housing program is to lead veterans to selfreliance through intensive treatment programs offered by VVSD. VVSD Campus Site Plan Phase 5 will consist of demolition of an existing warehouse and construction of a twostory, 16,300squarefoot building with two residential manager studios, 18 transitional housing beds, and supportive service facilities that will serve the campus. The transitional housing has been designed specifically to house female veterans returning from Iraq and Afghanistan. The female veterans fit a different profile from the current veteran clients and require specialized treatment to address their personal issues. The transitional housing beds will be located on the controlled access second floor and have been designed as fully furnished two

3 February 13, 2014 Loan Recommendation for Veterans Village Phase 5 Page 3 bedroom apartmentstyle units with a kitchen, dining area, living room and bathroom. The supportive service facilities will be located on the ground floor and include a counseling center, administrative offices, gym, library, dental clinic, tenant storage and laundry room. The proposed project will complete the last phase of a development project that originally broke ground in The twostory structure will comply with Universal Design standards and Housing Commission Sustainability Guidelines. Development Team The developer of the proposed project is VVSD, a 501(c)(3) nonprofit corporation organized in 1981 with the mission of providing housing, substance abuse recovery, mental health services, job training and job placement assistance to homeless military veterans in San Diego County. VVSD has operated the City of San Diego s Veterans Homeless Emergency Shelter for 17 consecutive years and currently owns and operates approximately 524 transitional housing beds in San Diego County. Phase 5 development team members have worked on previous phases of the VVSD campus and are listed in Table 1. Table 1 Owner Developer Architect General Contractor Financial Consultant Property Manager & Service Provider VVSD VVSD Delawie Wilkes Architecture Firm Haney Construction The Trimble Company VVSD Statements for public disclosure for VVSD are included as Attachment 2. Proposed Financing Structure The Housing Commission has participated in each of the previous four phases. Table 2 outlines the Housing Commission s previous participation in the financing of the VVSD campus: Table 2 Phase Units Completion Funding Description HC Funding I 2001 Predevelopment Grant $ 82,000 I 112 beds 2006 Forgivable Residual Receipt Loan $ 675,000 II 2006 Grant $ 745,575 II 112 beds 2009 Forgivable Residual Receipt Loan $ 3,479,924 III 96 beds 2010 Forgivable Residual Receipt Loan $ 2,000,806 IV 24 beds 2013 Forgivable Residual Receipt Loan $ 1,491,566 Total $ 8,474,871 The total development cost of the project is estimated to be approximately $3.94 million and is summarized in Table 3. Detailed construction cost detail and developer pro forma are included in Attachments 3 and 4.

4 February 13, 2014 Loan Recommendation for Veterans Village Phase 5 Page 4 Table 3 Sources of Funding City of San Diego $ 1,746,601 Housing Commission $ 1,444,846 Federal Home Loan Bank $ 500,000 Home Depot Grant $ 200,000 County of San Diego $ 50,000 Total $ 3,941,447 AFFORDABLE HOUSING IMPACT Commensurate with the affordability terms of Phases 14, 65year rent and occupancy restrictions would be recorded against the Phase 5 property by the Housing Commission. Eighteen (18) beds will be rentrestricted for tenants with annual incomes at or below 50 percent or 60 percent of the San Diego Area Median Income (AMI). The units would be occupied as rental housing by a maximum of 18 VVSD transitional housing program participants. VVSD intends to house program participants who are employed or otherwise capable of paying a portion of rent for the apartment. Because the targeted tenant population is characteristically extremely lowincome, actual rents would be lower because no tenant would pay more than 30 percent of their annual income in rent. Monthly rent estimates of $250 per bed are expected to be paid by each resident. Occupant income restrictions at 50 percent or 60 percent of AMI will provide VVSD with the flexibility to accommodate higher income tenants when necessary. The following are the proposed rents: Table 4 Unit Type AMI Number of Units Gross Restricted Rents Bed 50% 9 $691 $250 Bed 60% 9 $830 $250 Manager Unit Exempt 2 Total 20 Proposed Tenant Paid Rent Homelessness Impact The Regional Task Force on the Homeless reported that the 2013 PointinTime Count (PITC) identified 8,879 total homeless individuals in the County of San Diego. The PITC identified 5,733 homeless individuals in the City of San Diego. Based on a sample of 697 adults surveyed in the PITC, the Regional Task Force on the Homeless estimates that 15 percent of the homeless population are veterans. The 2013 Annual Homeless Assessment Report to Congress lists San Diego County as the fourth highest homeless population in the nation. The third goal of the City of San Diego Consolidated Plan is to provide shelter for persons who are homeless and assist them with ending homelessness. Providing access to transitional housing, case management and supportive services are objectives of the third goal. The VVSD campus is designed to help veterans stabilize their lives, address personal issues and achieve selfsufficiency. It is expected that after two years, the majority of Phase 5 residents would achieve and maintain incomes sufficient to obtain housing away from the VVSD campus. Program graduates living offsite would

5 February 13, 2014 Loan Recommendation for Veterans Village Phase 5 Page 5 continue to receive support from VVSD to maintain control over physical and mental health problems, substance abuse and other personal issues. As San Diego s largest provider of transitional housing for homeless veterans, VVSD helps the City of San Diego meet its objective of addressing homelessness. FINANCING CONSIDERATIONS There is no construction financing for Phase 5; all financing would be permanent. The project will be located on the Phase 3 and 4 parcels. The Housing Commission will record new deeds of trust to secure the promissory note for Phase 5, which will be subordinate to all loans in previous phases. VVSD is proposing to retain 50 percent of the residual receipts to be used for operation of the Veterans Village campus. The remaining 50 percent would be split prorata between the Housing Commission and the City of San Diego. Any unpaid principal and interest of the Housing Commission loan will be forgiven at the end of the 65 year term if VVSD complies with the Housing Commission loan agreement. Detailed loan terms are included in Attachment 5. The following table outlines the new lien priority positions for the Phase 35: Seniority Financing Source Amount 1 st Position State of California EHAPCD Loan (Phase III) $ 1,000,000 2 nd Position Cal HELP Loan Former RDA Administered Funds (Phase III) $ 1,250,000 3 rd Position Former Redevelopment Agency Loan Phase (IV) $ 1,118,012 4 th Position Housing Commission Residual Receipt Loan (Phase III) $ 2,300,000 5 th Position Housing Commission Residual Receipt Loan (Phase IV) $ 1,492,425 6 th Position Former Redevelopment Agency North Bay Redevelopment Area $ 863,000 7 th Position Federal Home Loan Bank Affordable Housing Program $ 600,000 8 th Position City of San Diego Residual Receipt Loan (Phase V) $ 1,746,601 9 th Position Housing Commission _ Residual Receipt Loan (Phase V) $ 1,444, th Position Federal Home Loan Bank Affordable Housing Program $ 500,000 FISCAL CONSIDERATIONS The proposed funding sources and uses approved by this action were not approved by the Housing Authority in the Fiscal Year 2014 Housing Commission Budget. Approving this action will increase the Fiscal Year 2014 Total Budget by $1,444,846. Approving this action will produce 18 transitional housing beds, two manager units, and supportive services facilities at an average cost of $197,072 per bed (including manager units and supportive space costs). Funding sources approved by this action will be as follows: HOME Investment Partnerships Program Prior Year Entitlement Funds $1,434,846 Workforce Housing Offset Funds $10,000 Fund sources Total $1,444,846 Funding uses approved by this action will be allocated as follows: Loans and Grants $1,444,846

6 February 13, 2014 Loan Recommendation for Veterans Village Phase 5 Page 6 Approving this action will grant the President & CEO, or designee, the authority, for all development/project budgets, to transfer and/or reallocate funds between any and all funding use lien items within the total approved development/project budget so long as the total project/development budget amount after any and all transfers/allocations does not exceed the previously approved budget total, when the operational need(s) arise and/or when such actions are to the benefit of the Housing Commission and its mission. COMMUNITY PARTICIPATION and PUBLIC OUTREACH EFFORTS On October 16, 2013, Phase 5 was presented to the North Bay Community Planning Group as an informational item. The planning group supported the completion of the project. KEY STAKEHOLDERS and PROJECTED IMPACTS Stakeholders include VVSD, the City of San Diego, the Housing Commission, future residents, and the North Bay Community Plan Area. Development of the property is expected to have a positive impact on the community because it will eliminate blight within the project area and replace underutilized land with transitional housing for homeless veterans. ENVIRONMENTAL REVIEW In compliance with the National Environmental Policy Act (NEPA) and HUD Environmental Review Procedures, the California Environmental Quality Act (CEQA) and State CEQA Guidelines, the City of San Diego conducted a CEQA Initial Study and NEPA Environmental Assessment and determined that the project could have a significant environmental effect in the following areas: geology, water quality, hydrology, air quality, health and safety, and historical resources (archeology). Subsequent revisions in the project proposal created the specific measures as identified in Section V of the Mitigated Negative Declaration and Finding of No Significant Impact (FONSI) dated April 24, The project as revised avoids or mitigates the potentially significant environmental effects previously identified, and the preparation of an Environmental Impact Report (EIR) and Environmental Impact Statement (EIS) is not required. A copy of the Mitigated Negative Declaration is on file at the offices of the San Diego Housing Commission. On January 30, 2014, the City of San Diego certified that a reevaluation of environmental assessments and other environmental findings is not warranted by this activity pursuant to 24 CFR Part a(1) through a(3) of the NEPA guidelines. Furthermore, no conditions are present that prompt any action identified in Section b(1) through b(3). Respectfully submitted, Ted Miyahara Ted Miyahara Real Estate Manager Real Estate Division Approved by, Deborah N. Ruane Deborah N. Ruane Senior Vice President Real Estate Division Attachments: 1) Site Map 2) Developer Disclosure Statement 3) Pro forma 4) Development Summary 5) Term Sheet

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22 PROJECT SUMMARY Veterans Village of San Diego Women Veterans Center PROPOSED DEVELOPMENT NAME Veterans Village of San Diego Women Veterans Center APPLICANT Veterans Village of San Diego Attachment 3 DEVELOPMENT ADDRESS 4141 Pacific Highway, San Diego, CA APPLICANT ADDRESS 4141 Pacific Highway, San Diego, CA DEVELOPMENT TYPE ZONING ACREAGE New Construction CUP 2.05 APN NUMBERS ,24 Total Units 20 Cost Per Unit 197,072 Gross Sq/Ft 16,300 Gross Hard Cost Sq/Ft $170 Net Rentable Sq/Ft 5,994 Net Rentable Cost Sq/Ft $462 CONSTRUCTION FINANCING SOURCES CONSTRUCTION USES OF FUNDS 9% Tax Credits Land Acquisition Cost 50,000 4% Tax Credits Rehabilitation HCD Total Relocation Expenses CalHFA New Construction 2,772,009 Federal Home Loan Bank 500,000 Architectural Fees 286,800 HUD Total Survey & Engineering San Diego Housing Commission 1,444,846 Construction Interest & Fees 63,618 Deferred Developer Fee Permanent Financing 500 Conventional Lender Legal Fees 65,000 Other: Home Depot Grant 200,000 Reserves 36,850 Other: Prestabalized Income Appraisal 1,000 Other: San Diego County 50,000 Contingency Cost City of San Diego 1,746,601 Other Project Costs 430,324 Total Sources 3,941,447 Developer Costs 235,346 TOTAL PROJECT COSTS 3,941,447 PERMANENT FINANCING SOURCES PERMANENT USES OF FUNDS 9% Tax Credits Land Acquisition Cost 50,000 4% Tax Credits Rehabilitation HCD Total Relocation Expenses CalHFA New Construction 2,772,009 Federal Home Loan Bank 500,000 Architectural Fees 286,800 HUD Total Survey & Engineering San Diego Housing Commission 1,444,846 Construction Interest & Fees 63,618 Deferred Developer Fee Permanent Financing 500 Conventional Lender Legal Fees 65,000 Other: Fee Waivers Reserves 36,850 Other: Home Depot Grant 200,000 Appraisal 1,000 Other: Successor Agency 1,746,601 Contingency Cost Other: San Diego County 50,000 Other Project Costs 430,324 Total Sources 3,941,447 Developer Costs 235,346 TOTAL PROJECT COSTS 3,941,447 UNIT BREAKDOWN SQ/Ft # UNITS SQUARE FOOTAGE SRO/Studio 0 Community Bedroom Corridor 2,008 2 Bedroom 0 Common Areas 3 Bedroom 0 Commercial 4 Bedroom 0 Other 8,000 Total Units 20 Gross Common Area 10,306 Gross Building Square Footage 16,300 TARGETED AMI LEVELS 30% AMI 35% AMI 40% AMI 45% AMI 50% AMI 55% AMI 60% AMI >60%AMI Market Rents Totals SRO/Studio 1 Bedroom Bedroom 3 Bedroom 4 Bedroom Project Totals 0% 0% 0% 0% 50% 0% 50% 0% 0% 20 RENTAL INCOME 30% AMI 35% AMI 40% AMI 45% AMI 50% AMI 55% AMI 60% AMI >60%AMI Market Rents Totals SRO/STUDIO 4,500 4,500 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Total Income 4,500 Total Annual Income 54,000

23 ADDITIONAL INCOME PROJECT UNIT UTILITY ALLOWANCES 0 BR 1 BR 2 BR 3 BR 4 BR Laundry No Heating Vending No Cooking Commercial No Water Heating Department of Labor 16, No Other Electric Other: (Specify) No Water No Sewer OPERATING COSTS Project Unit No Trash Operating Budget 62,200 3,110 No Range Replacement Reserves 4, No Refrigerator TOTALS TAX CREDIT INFORMATION LIMITED PARTNER ASSET MANAGEMENT FEES Eligible Basis 3,854,097 LP Asset Management Fee Total Ineligible Amount MGP Management Fee Voluntary Ineligible Amount Admin. GP Management Fee Total Unadjusted Eligible Basis 3,854,097 QCT or DDA Yes 130% RESIDUAL RECEIPT SPLIT TRENDS Total Adjusted Eligible Basis 5,010,326 SDHC 50% Income 3.0% Applicable Fraction 9.00% Applicant 50% Expenses 3.0% Total Qualified Basis 450, Vacancy 5.0% Total Credit Reduction SDHC PURCHASE OPTION Total Adjusted Qualified Basis 450,929 No Applicable Percentage % Subtotal Annual Credit 450,929 ANTICIPATED TIEBREAKER SCORE Total 10 Year Tax Credits 4,509,293 Limited Partner Interest 99.99% Limited Partner Tax Credits 4,508,843 Sale Rate Estimated Total Tax Credits CONVENTIONAL LENDER SECOND THIRD Term Term Term Rate 0.00% Rate 0.00% Rate 0.00% Loan Amount Loan Amount Loan Amount FOURTH FIFTH Term Term Rate Rate 0.00% Loan Amount Loan Amount DEVELOPER NOTES

24 Development Budget Veterans Village of San Diego Women Veterans Center Veterans Village of San Diego Description Amount Unit Cost Eligible Basis Land Acquisition Cost Land Cost or Value $ Demolition 50,000 $ 2,500 Legal $ Land Lease Rent Payment $ Total Land Cost or Value 50,000 $ 2,500 Existing Improvements Value $ OffSite Improvements $ Other: (Specify) $ Total Acquisition Cost $ Total Land Cost / Acquisition Cost 50,000 $ 2,500 Rehabilitation Site work $ Structures $ General Requirements $ Contractor Overhead $ Contractor Profit $ Prevailing Wages $ General Liability Insurance $ Other: (Specify) $ Total Rehabilitation Cost $ Total Relocation Expenses $ New Construction Site work 243,200 $ 12, ,200 Structures 2,099,941 $ 104,997 2,099,941 Contingency 100,000 $ 5, ,000 General Requirements 193,500 $ 9, ,500 Contractor Overhead $ Contractor Profit 103,442 $ 5, ,442 Prevailing Wages $ General Liability Insurance 31,926 $ 1,596 31,926 Other: (Specify) $ Total New Construction Costs 2,772,009 $ 138,600 2,772,009 Architectural Fees Design 246,900 $ 12, ,900 Supervision 39,900 $ 1,995 39,900 Total Architectural Costs 286,800 $ 14, ,800 Total Survey & Engineering $ Construction Interest & Fees Construction Loan Interest $ Origination Fee 15,000 $ ,000 Credit Enhancement/ Application Fee $ Bond Premium 33,618 $ 1,681 33,618 Taxes $ Insurance 15,000 $ ,000 Title & Recording $ Other: (Specify) $ Other:(Specify) $ Total City Costs 63,618 $ 3,181 63,618 Permanent Financing Loan Origination Fee $ Credit Enhancement/Application Fee $ Title & Recording $ Taxes $ Insurance $ Other: SDHC Monitoring Setup Fee 500 $ 25 Other: (Specify) $ Total Legal Costs 500 $ 25 Legal Fees Lender Legal Paid by Applicant 25,000 $ 1,250 25,000 Other: (Specify) 40,000 $ 2,000 40,000 Total Attorney Costs 65,000 $ 3,250 65,000 Reserves Rent Reserves $ Capitalized Rent Reserves $ Operating Reserve 36,850 $ 1,843 Other: (Specify) $ Total Reserve Costs 36,850 $ 1,843 Appraisal Total Appraisal Cost 1,000 $ 50 1, Contingency Cost Total Contingency Cost $ Other Project Costs TCAC App/Allocation/Monitoring $ Environmental Audit 7,190 $ 360 7,190 Local Development Impact Fees 25,000 $ 1,250 25,000 Permit Processing Fees 144,521 $ 7, ,521 Capital Fees $ Marketing $ Furnishings 50,000 $ 2,500 50,000 Market Study $ Accounting/Reimbursable 24,000 $ 1,200 24,000 Soft Cost Contingency 40,000 $ 2,000 40,000 Other: Structural Inspection 35,000 $ 1,750 35,000 Other: AHP Application 1,813 $ 91 1,813 Other: Dixieline Fund Control 7,338 $ 367 7,338 Other: Off Site Storage 70,462 $ 3,523 70,462 Other: Housing Successor Agency Fee 25,000 $ 1,250 25,000 Total Other Project Costs 430,324 $ 21, ,324 Developer Costs Developer Overhead/Profit $ Consultant/Processing Agent 55,346 $ 2,767 55,346 Project Administration 180,000 $ 9, ,000 Broker Fees Paid to Related Party $ Construction Oversight by Developer $ Other: $ Other: (Specify) $ Total Developer Costs 235,346 $ 11, ,346 TOTAL PROJECT COSTS 3,941, ,072 3,854,097

25 55 YEAR CASH FLOW INCOME Trend Residential Rents 3.0% 54,000 55,620 57,289 59,007 60,777 62,601 64,479 66,413 Other Income 3.0% 16,700 17,201 17,717 18,249 18,796 19,360 19,941 20,539 Gross Residential Income 70,700 72,821 75,006 77,256 79,573 81,961 84,419 86,952 Residential Vacancy 5.0% 3,535 3,641 3,750 3,863 3,979 4,098 4,221 4,348 Effective Gross Income 67,165 69,180 71,255 73,393 75,595 77,863 80,199 82,604 EXPENSES Operating Expenses 3.0% 62,200 64,066 65,988 67,968 70,007 72,107 74,270 76,498 Replacement Reserves 3.0% 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 Total Expenses 66,200 68,186 70,232 72,339 74,509 76,744 79,046 81,418 NET OPERATING INCOME ,024 1,054 1,086 1,119 1,152 1,187 CASH FLOW AVAILABLE FOR DEBT SERVICE Conventional Lender Debt Service Second Position Third Position Fourth Position Fifth Position Net Cash Flow ,024 1,054 1,086 1,119 1,152 1,187 DISTRIBUTION OF NET CASH FLOW Deferred Developer Fee Managing General Partner Administrative General Partner Limited Partner Residual Cash Flow ,024 1,054 1,086 1,119 1,152 1,187 RESIDUAL RECEIPT PAYMENT City & Housing Commission VVSD

26 ,406 70,458 72,571 74,749 76,991 79,301 81,680 84,130 86,654 89,254 91,931 94,689 21,155 21,790 22,443 23,117 23,810 24,525 25,260 26,018 26,799 27,603 28,431 29,284 89,561 92,247 95,015 97, , , , , , , , ,973 4,478 4,612 4,751 4,893 5,040 5,191 5,347 5,507 5,673 5,843 6,018 6,199 85,083 87,635 90,264 92,972 95,761 98, , , , , , ,774 78,793 81,157 83,592 86,099 88,682 91,343 94,083 96,906 99, , , ,068 5,067 5,219 5,376 5,537 5,703 5,874 6,050 6,232 6,419 6,611 6,810 7,014 83,860 86,376 88,967 91,636 94,385 97, , , , , , ,082 1,222 1,259 1,297 1,336 1,376 1,417 1,460 1,503 1,549 1,595 1,643 1,692 1,222 1,259 1,297 1,336 1,376 1,417 1,460 1,503 1,549 1,595 1,643 1,692 1,222 1,259 1,297 1,336 1,376 1,417 1,460 1,503 1,549 1,595 1,643 1,

27 ATTACHMENT 4 Development Summary Veterans Village of San Diego Summary Details Location 4141 Pacific Highway Council District 2 Community Planning Area North Bay Developer Veterans Village of San Diego Project Type New Construction Housing Type Transitional Number of Beds 18 beds, 2 Manager Units Affordable Beds 18 beds Building Gross Square Footage 16,300 Construction Type Type V Prevailing Wages No Affordability Term 65 years Unit Affordability Unit Type AMI Beds Restricted Rent Utility Allowance Estimated Tenant Paid Rent Transitional Bed 50% 9 $706 $0 $250 Transitional Bed 60% 9 $ 848 $0 $250 SRO Manager n/a 2 Permanent Sources and Uses of Funds Sources of Funds Amount Uses of Funds Amount City of San Diego $ 1,746,601 Construction Hard Cost $ 2,772,009 Housing Commission 1,444,846 Soft Costs 1,132,588 Federal Home Loan Bank 500,000 Reserves 36,850 Home Depot Foundation 200,000 Developer Fee 0 County of San Diego 50,000 Total $ 3,941,447 Total $ 3,941,447 * Cost Analysis Amount Per Bed Comments Acquisition Costs $ $ Land acquired in Phase I Hard Costs 2,772,009 $138,601 $191 Gross sq.ft. Soft Costs 1,132,588 $56,629 Operating Reserve 36,850 $1,842 Developer Fee VVSD not requesting fee Total Development Cost $ 11,989,055 $ 197,072 Prevailing wage, 3 & 4 bedroom units 31

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