San Diego Housing Commission! Real Estate Division/HDP Workshop! Debbie Ruane Senior Vice President Real Estate Division June 20, 2014
2 SDHC REAL ESTATE DIVISION
SDHC Real Estate Division! Overview! The Real Estate Division (RED) is one component of the San Diego Housing Commission and it provides the following services: Finance New Program Development Loan Management RehabilitaEon Enforce Compliance of City Ordinances Property Management Asset Management ConstrucEon Services Maintenance 3
The Real Estate Division (RED) is only one component of the San Diego Housing Commission and it provides the following services: FINANCE DEVELOPMENT OPERATIONS Finance New Programs Home Safe Home Loan Management Ordinance Compliance SDHC Real Estate Division! Overview! Real Estate Development Housing Development Partners Property Management PorIolio Management Maintenance ConstrucEon Services 4
5 Rental Housing Finance and! Development Department!! Ann Kern, Senior Director! Mike Pavco, Executive Director, HDP! Wendy DeWitt, Director! Rick Vincent, Housing Construction Manager! Vicki Monce, Loan Services Manager! Melinda Nickelberry, Manager!
Real Estate Division! Rental Housing Finance!! Ann Kern! Senior Director,! Housing Finance & Program Development! 6
Rental Housing Finance and Program Development Department FY2014 Budget! Total Budget: $ 35.7 million Staffing: 24 FTEs 7
8 RENTAL HOUSING FINANCE
Rental Housing Finance! Overview! Rental Housing Finance partners with qualified developers to: provide quality affordable housing manage public funds prudently and effecevely balances SDHC involvement to ensure financial, geographic and physical diversity Rental Housing Finance has a budget of $36 million primarily from Home, Inclusionary, Linkage and Bond Fees.! Energy Efficiency * Transit- Oriented Development * Homelessness 9
Rental Housing Finance FY2014 Budget! Total Budget: $17.9 million Staffing: 5.125 FTEs 10
Rental Housing Finance FY2014 Department Scope! Underwrite new loans for mulefamily development Administer mulefamily revenue bond program Administer City s Inclusionary, NCFUA, and Density Bonus Housing Programs Administer HOME and AHF Funds Conduct Fee Study to analyze recoverable costs Create Guidelines for Refinance Requests Update Guidelines for Residual Receipt Analyses Update HOME Procedures Manuals 11
FY 2014 Budget Goals: Rental Housing Finance! Metrics FY2014 Budget YTD Actuals Create/finance addieonal affordable units 460 units 497 units Provide Project Management Support 826 units 1,618 units Administer Bond PorIolio 50 projects 6,406 units 52 projects 6,702 units 12
Rental Housing Finance! Projects Completed: FY2014! Loans/Bonds Project Name CompleNon Date Total Development Cost ($ millions) SDHC Funding ($ millions) Total Units Restricted Units Juniper Gardens 11/13 $12.3 $2.8 40 39 Fairbanks Commons 1/14 $51.0 165 164 TOTALS $63.3 $2.8 205 203 13
Rental Housing Finance! Completed: Juniper Gardens! 4251 Juniper St. 40 Units City Heights $2,844,132 loan TDC: $12,264,020 RehabilitaNon/ PreservaNon 14
Rental Housing Finance! Completed: Fairbanks Commons! 15870 Camino San Bernardo 165 Units Black Mountain Ranch TDC: $51,000,000 New ConstrucNon 15
Rental Housing Finance! Projects Under Construction/Rehabilitation! Loans/Partnerships/Bond Financing Project Name EsNmated CompleNon Date Total Development Cost ($ millions) SDHC Funding ($ millions) Total Units Restricted Units Alpha Square 12/15 $47.8 $1.9 203 201 Celadon 1/15 $50.5 $0 121 120 City Heights CDC 9/14 $17.0 $0 132 129 COMM 22 Family 12/14 $56.5 $1 130 128 COMM 22 Senior 12/14 $28.5 $4.2 70 68 Fairbanks Square 4/15 $27 $0 100 99 Hotel Churchill 8/15 $19.0 $12.1 73 72 Mesa Commons 7/14 $24.5 $4.9 78 77 TOTALS $270.0 $23.6 907 894 16
Loans/Partnerships/Bond Financing: Rental Housing Finance! Pending Projects! Project Name Est. Approval Date Total Development Costs ($ millions) SDHC Funding ($ millions) Total Units Restricted Units 14 th & Imperial 8/14 $17.4 $3.5 55 54 Atmosphere II 6/14 $44.0 $3.0 105 103 Encanto Apts 8/14 $26.3 $6.0 64 63 San Diego Square 8/14 $17.0 $0 132 129 Trolley ResidenEal 8/14 $21.6 $2.8 52 51 Westminster Apts 7/14 $55.2 $0 130 128 Willie James Jones Apts 6/14 $13.6 $2.5 70 68 TOTALS $195.0 $17.8 608 596 17
Rental Housing Finance Inclusionary/Density Bonus Projects! Project Name Community Planning Area Total Units Inclusionary Units EsNmated CompleNon 15th & Island Downtown 956 72 4 th Q 14 Archstone Mission Gorge Navajo 444 45 1 st Q 16 Broadstone Kearny Mesa Serra Mesa 360 36 4 th Q 14 Broadstone Balboa Park Uptown 100 5 4 th Q 14 Civita Phase I Mission Valley 1512 150 1 st Q 15 Murfey Mixed- Use (The Point) Pacific Beach 19 2 2 nd Q 14 The North Parker North Park 25 2 2 nd Q 14 Casa Mira View I Mira Mesa 1848 185 Torrey Hills Torrey Hills 484 24 3 rd Q 14 Ariva Apartments Kearny Mesa 129 13 2 nd Q 14 BMMB on 30th Apartments North Park 9 1 1 st Q 15 La Jolla Crossroads II University City 309 31 TOTAL 566 18
Rental Housing Finance Inclusionary/Density Bonus Projects! Under ConstrucNon Casa Mira View 185 Affordable Units (45 Completed to Date) 19
Rental Housing Finance Inclusionary/Density Bonus Projects! Under ConstrucNon15 th & Island 72 Affordable Units 20
Rental Housing Finance North City Future Urbanizing Area Projects! 2,178 Total Affordable Units; 1513 units are completed Project Name Subarea Inclusionary Units Master Developer Fairbanks Square Black Mountain Ranch 100 BMR LLC Heritage Bluffs/Camelot Black Mountain Ranch 84 BMR LLC Elms & Ivy Pacific Highlands Ranch 28 Taylor Morrison The Village Pacific Highlands Ranch 79 Pardee/Coast The Village (Gonsalves Ownership) Pacific Highlands Ranch 12 KB Homes Equity ProperEes at The Village Pacific Highlands Ranch 21 Equity ProperEes Unit 13 Pacific Highlands Ranch 198 Pardee/R&V Unit 24 Pacific Highlands Ranch 96 Pardee Rhodes Crossing Torrey Highlands 47 Seabreeze 665 21
22 Rental Housing Finance and! Development Department!! Business & Program Development! Wendy DeWitt, Director!
AdministraEon of City Ordinances - SRO s - Mobile Homes - Coastal Housing Pursue New Revenue Sources - Efficiencies, cost savings in exiseng programs - Leverage assets - New revenue sources to supplement exiseng programs, fill gaps New Program AcEviEes! Business & Program Development! Responsibilities! - Address issues in exiseng programs - Introduce new programs 23
Business & Program Development! Current Projects! SRO Conversions how to preserve units? Strengthen Loan PorIolio asset management procedures to improve cash flow InvesEgate a poriolio capital access program and make recommendaeons! 24
Business & Program Development! Current Projects! SRO Conversions how to preserve units 25
Business & Program Development! Current Projects! Strengthen Loan PorIolio asset management procedures to improve cash flow - Annual financial reporeng - Residual receipts calculaeons - Physical InspecEon for maintenance, capital needs 26!
Business & Program Development! FY15 Goals! Explore ways to leverage the MulE- family loan poriolio ValuaEon Sell All or Part Loan pay- down or pay- offs 27
Business & Program Development! FY15 Goals! Pursue creaeon of a pooled investment fund to leverage SDHC loan capital Solicit partners Hire consultant to create business plan Structure fund, loan products Market and deploy funds to developers 28
29 Rental Housing Finance and! Development Department!! Home Safe Home Unit! Rick Vincent! Housing Construction Manager!!
30 HOME SAFE HOME UNIT
Home Safe Home assists low- income families with the rehabilitaeon and repair of their homes and remediaeon of lead paint. Home Safe Home has a budget of $5 million from federally funded Lead Control grants, Healthy Homes Grants and former redevelopment funds.! Rental Housing Finance & Development Department! Home Safe Home Unit! 31
Home Safe Home Unit FY2014 Budget! Total Budget: $ 5.3 million Staffing: 9.87 FTEs 32
Home Safe Home Unit! 35-Year Funding History! FUNDING TYPE! AMOUNT (millions)! FAMILIES SERVED! Lead/Healthy Homes Grants! $11.4! 1,557! Mobile Home Repair Grants! $8.2! 2,110! Other Rehab Loans & Grants! $85.8! 8,708! TOTAL! $105.4! 12,375! 33
GRANTS! FUNDING TYPE! Home Safe Home Unit! Goals and Performance! FY14 Goal! Completed / In-Progress! FY15 Goal! Lead Hazard Control! 160! 156! 120! Healthy Homes! 40! 93! Mobile Home Repair! 31! 46! 30! GRANT SUBTOTAL! 231! 295! LOANS! 0% Deferred! 43! 16! Redevelopment! 61! 49! 50! Neighborhood Stabilization! 0! 4! LOAN SUBTOTAL! 104! 69! TOTAL! 335! 364! 200! 34
Home Safe Home Unit! BEFORE AFTER 35
Home Safe Home Unit! BEFORE AFTER 36
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Home Safe Home Unit! BEFORE AFTER 40
Home Safe Home Unit! BEFORE AFTER 41
Home Safe Home Unit! BEFORE AFTER 42
43 Rental Housing Finance and! Development Department!! Loan Management Unit! Vicki Monce! Loan Services Manager!
Loan Management Team! Loan Services Manager! Vicki Monce! Loan Servicing Team! Nancy Deeds! Sandy Simon! Orlinda Stocking! Loan Underwriting Team! Carrie Tapia! Delia Abeling! Administrative Team! Espi Martinez! Melissa Holt! Intern! Marcus Collins! 44
Loan Management consists of two disenct areas Loan PorIolio Servicing Homeownership ResponsibiliNes First Time Homebuyer Program Affordable For- Sale Housing Program Loan PorIolio Servicing Loan Management Unit! Loan Management! MulE- Family RehabilitaEon Affordable For- Sale First Time Homebuyer 45
Loan Management Unit! Loan Portfolio Servicing! Loan Pordolio Servicing is responsible for servicing the Commission s $316.7 million loan poriolio, which includes approximately 2,800 loans. Average of 920 loans per loan servicing specialist FY2014 Total Budget: $2.4 million Staffing: 5.765 FTEs 46
Loan Management Unit! Current Loan Portfolio! as of March 31, 2014!! $316,694,546 Program! Number of Loans! $16,711,339! $59,992,234! $47,045,156! $192,945,817! Multi Family! 132! First Time Homebuyer! 1,362! Affordable For-Sale! 295! Rehabilitation! 981! TOTAL! 2,770! 47
Over 1,600 Payoffs completed Over 2,700 SubordinaEons completed AssumpEons Short Sales Bankruptcies Loan ModificaEons Insurance monitoring Occupancy monitoring Loan Management Unit! Loan Portfolio Servicing! Annual review of the audited financials for all mule- family loans Defaults / Foreclosures 0.10% Default RaNo Industry average = 2.0 3.0% 48
Loan Management Unit! Homeownership! Homeownership is responsible for determining eligibility, underwrieng, and funding all applicaeons for the Commission s First Time Homebuyer and Affordable For- Sale Housing Programs.! FT2014 Total Budget: $10.1 million Staffing: 3.37 FTEs 49
!!!!! Loan Management Unit! History of Assistance! Loans, Grants & Mortgage Credit Certificates! Families Assisted 50 closed 21 pending 114 115 98 178 131 50
Loan Management Unit! Affordable For-Sale Housing Program! 295 Units!! City Future Urbanizing Area 55 Year RestricNons North Four Developments 198 Units Redevelopment Agency 45 Year RestricNons Two Developments 59 Units Center City Development CorporaNon One Development 10 Units Inclusionary Eight Developments 28 Units 51
Loan Management Unit! Total Families Assisted!! 5,286 First Time Homebuyer Programs No. of Families Deferred Loans, Grants & Mortgage Credit CerEficates 4,413* Affordable For- Sales without SDHC assistance 128 Specialty Programs done in late 1980 s early 1990 s 745 GRAND TOTAL 5,286 *There are an additional 21 packages currently in process 52
!! Loan Management Unit! Current Funding! Current average assistance per family is $58K Current funding will assist approximately 164 families EsEmated 44 Mortgage Credit CerEficates in 2014 allocaeon The average area median income is 71%! 53
!! Loan Management Unit! Fiscal Year 2015 Goals! Increase producnvity, ensure consistency and provide excellent customer service through the following: Implement an asset management sorware for the mule- family loan poriolio Update and streamline loan servicing guidelines and procedures Automate deferred loan and closing cost grant documents in the Yardi database 54!
55 Rental Housing Finance and! Development Department!! Budget and Performance Management! Melinda Nickelberry! Manager!
Budget & Performance Management! FY 2015 Goals and ResponsibiliNes Strategic Plan implementaeon coordinaeon Budget and Five- Year Forecast development Budget to actual monitoring and reporeng Report development Adhoc budgetary and financial analysis 56
SDHC Strategic Plan Implementation! The San Diego Housing Commission Board adopted the Strategic Plan January 17, 2014 The Plan idenefies how the SDHC can have the greatest possible impact with limited financial resources in the years ahead 57
SDHC Strategic Plan Implementation! Strategic Plan Goals Create & Preserve Quality Affordable Housing Provide Housing Choice Voucher Families with OpportuniEes for Them to Become More Financially Self- Reliant Foster a Culture of Excellence and InnovaEon 58
SDHC Strategic Plan Implementation! RED Strategic Plan Outcomes Asainment of new funding to support the creaeon and preservaeon of affordable housing ConEnued provision of quality affordable housing for our tenants, by ensuring the economic and physical sustainability of the SDHC real estate poriolio Defined SDHC role in reducing homelessness Improved departmental efficiencies and program effeceveness 59
RED Strategic Plan Projects! Ahainment of new funding to support the creanon and preservanon of affordable housing IdenEfy financing mechanisms to perform substaneal rehabilitaeon and preservaeon of SDHC real estate assets Explore ways to leverage our MulE- family loan poriolio Develop sorware analyecs for MulE- family, FTHB, and RehabilitaEon loan and grant poriolio for key performance metric reporeng CreaEon of a pooled investment fund 60
RED Strategic Plan Projects! ConNnued provision of quality affordable housing for our tenants, by ensuring the economic and physical sustainability of the SDHC real estate pordolio The creaeon of interim and permanent procedures to support annual assessments of the real estate poriolio CompleEon of the Green Property Needs Assessment Development of a Capital Plan 61
RED Strategic Plan Projects! Improved departmental efficiencies and program effecnveness Review loan servicing workflow processes to idenefy areas for cost- efficiency improvements Enhance online interacevity for vendors, developers and program parecipants Create dashboard reports based on key performance indicators supported by current and new reporeng applicaeons Evaluate impact, cost efficiency, funding structure, and mission alignment of RED programs and operaeonal praceces Develop and implement best pracece policies and procedures 62
SDHC Strategic Plan Implementation! RED Five- Year Forecast Development Research IdenEfy opportuniees for departmental improvements Evaluate true programmaec costs Evaluate RED department funding structures Evaluate program alignment with SDHC s mission Development Devise plans and recommendaeons to address idenefied opportuniees to improve program effeceveness and cost efficiencies ImplementaEon ImplementaEon of plans and recommendaeons CreaEon of Five- Year Budget Forecast 63
SDHC Strategic Plan Implementation! Currently, RED departments are developing project plans for the Strategic Plan projects Throughout the next two years, conenued monitoring to ensure project success and adherence to Emelines 64
SDHC Real Estate Division! Housing Development Partners! Michael Pavco, Executive Director! 65
66 HOUSING DEVELOPMENT PARTNERS TEAM
SDHC Real Estate Division! Housing Development Partners! Housing Development Partners, an SDHC affiliate, acquires suitable rental property to provide quality, affordable housing to a broad range of low income San Diegans.!! 67
SDHC Real Estate Division! Housing Development Partners! Key Facts Affiliate of the San Diego Housing Commission (SDHC) Formed in 1990 as a 501(C)(3) Non- Profit OrganizaEon HDP s Board includes the CEO of SDHC, two SDHC Board Members, & two at Large Board Members Serves as the development arm of SDHC PorIolio of 1051 units of Affordable Housing 68
SDHC Real Estate Division! Housing Development Partners! Project Units Type Knox Glen 54 Family Housing Courtyard Terraces 88 Casa Colina 75 San Diego Square 156 Sub- Total 319 Island Village 280 Studio 15 275 Sub- Total 555 Senior Housing Single Room Occupancy Mason Hotel 17 Parker Kier 34 Hotel Churchill 72 Sub- Total 123 Permanent SupporEve Housing 69
SDHC Real Estate Division! Housing Development Partners! Benefits to the Housing Commission Real Estate Development and Asset Management ExperEse Experience with SupporEve Housing Projects Experience with Historic Buildings, Hotels, & SRO Housing Key RelaEonships: Civic SD; County of SD; CSH; Veteran s AdministraEon; Local Service Providers HDP s 501(C)(3) status provides independence and flexibility in developing affordable housing projects 70
SDHC Real Estate Division! Housing Development Partners! 827 C Street The Churchill 7 Story Tower Built in 1914 Acquired by SDHC in 2011 Housing Authority Approved HDP s Redevelopment Plan in July 2013 72 Permanent SupporEve Housing Units Financed by SDHC, Civic, & The County Comprehensive RenovaEon & RestoraEon of Historic Façade Planned On- Site Social Services Planned Affordability to be Preserved for 55 Years 71
72 SDHC Real Estate Division! Housing Development Partners! The Churchill!
SDHC Real Estate Division! Housing Development Partners! San Diego Square Apartments 1055 9th Avenue 155 Low Income Senior Apartments 12 Story Tower Built in 1980 Originally Financed as a HUD 202 Land Owned by City of San Diego Contains 10,000 Sq. Feet of Retail Comprehensive Renovation Planned New Senior Center to be Developed Affordability to be Preserved for 55 Years 73
74 SDHC Real Estate Division! Housing Development Partners! San Diego Square!
SDHC Real Estate Division! Housing Development Partners! Goals for 2014 Successfully close on financing and begin construceon of San Diego Square and Hotel Churchill IdenEfy one new project and begin predevelopment Assist the Housing Commission with Homelessness and Strategic Plan inieaeves Begin development of an asset management database ConEnue to promote SDHC and HDP s Non- Profit Mission 75