Torrey San Diego Vale Apartments Housing Commission Final Bond Authorization for Torrey Vale Housing Trolley Authority Residential of the City of San Diego December Loan Modification 8, 2015 and Preliminary Bond Items February 13, 2015 Ted Miyahara Director of Housing Finance Real Estate Division J.P. Correia Real Estate Manager Real Estate Division San Diego Housing Commission J.P. Correia Project Manager Real Estate Division
Recommendation That the Housing Authority of the City of San Diego: Authorize the issuance of up to $7,000,000 in tax-exempt multifamily housing revenue bonds to fund construction of Torrey Vale Apartments, a 28-unit affordable rental housing development. San Diego Housing Commission Slide #2
Development Summary Proposed 28 units of new construction rental housing for families in the Pacific Highlands Ranch neighborhood, North City Future Urbanizing Area, City Council District 1. Vacant land (approximately 2 useable acres) located west of Rancho Santa Fe Farms Road and South State Route 56 (Ted Williams Freeway. Land is owned by master developer Taylor Morrison of California LLC of Irvine. Satisfies the inclusionary requirements for the master developer s market-rate units. Property to be sold to Chelsea Investment Corp s Torrey Vale CIC LP San Diego Housing Commission Slide #3
Development Summary (Cont.) Experienced developer: Chelsea Investment Corporation. Chelsea is in compliance with previous loans. Contractor: Emmerson Construction Inc., a Chelsea affiliate. Financing to include an estimated $4,409,981 of 4% tax credits and up to $7,000,000 tax-exempt multifamily bonds. Housing Commission (on July 23, 2015) and Housing Authority (on August 4, 2015) previously approved the preliminary steps for issuance of tax-exempt bonds. San Diego Housing Commission Slide #4
Slide #5 Location 6595 Rancho Del Sol Way
Slide #6 Location 6595 Rancho Del Sol Way
Slide #7 Site Photo Rancho Del Sol Way Facing Southwest
Slide #8 Site Photo Rancho Del Sol Way Facing Northeast
Slide #9 Site Photo Facing South
Slide #10 Site Photo Facing South
Slide #11 Site Photo Facing Southeast
Slide #12 Site Photo Facing Southwest
Affordability for 55 Years Affordability Mix 2 Bedroom/1 Bath Units (750 sq. feet) 3 Bedroom/2 Bath Units (1,050 sq. feet) Total Units Estimated Net Rent (after Estimated Net Rent Units utilities deduction) Units (after utilities deduction) Totals Affordable Percent 50% AMI Tax Credit Units 2 $861 1 $1,012 3 10.71% 60% AMI Tax Credit Units 17 $1,043 7 $1,215 24 85.72% Manager s unit (65% AMI Restricted) 0 -- 1 -- 1 3.57% Combined Total Units 19 9 28 100% Bedroom Mix Percent 71.43% 28.57% 100% San Diego Housing Commission Slide #13
Estimated Sources and Uses Permanent Financing Sources of Funds Amount Uses of Funds Amount Tax Exempt Bond Financed Permanent Loan $2,316,000 Acquisition Cost $1,296,988 Master Developer Off-site Contribution 1,296,986 Hard Costs 5,053,560 Master Developer Gap Contribution 1,350,000 Reserves 75,738 Solar Equity Rebate 55,858 City Impact Fees & Permits 1,688,947 Accrued Soft Loan Interest 69,483 Other Soft Costs 1,353,059 Citi Subordinate Debt 280,000 Contingency 322,645 Deferred Contractor Fee 177,318 Developer Fee 1,372,164 Four Percent Tax Credits 4,780,187 Deferred Developer Fee 837,269 Total Sources $11,163,101 Total Development Cost $11,163,101 Estimated Total Development Cost Per Unit (for 28 Units) = $398,682 San Diego Housing Commission Slide #14
Estimated Schedule Milestone Housing Authority consideration of proposed bond issuance authorization.. Estimated escrow/financing closing..... Estimated construction start........... Estimated construction completion...... Estimated Date December 8, 2015 December 15, 2015 December 31, 2015 October 2016 San Diego Housing Commission Slide #15
Bond Issuance Summary Proposed tax-exempt bond issuance up to $7,000,000. Developer responsible for paying all costs of issuing bonds. Issuance pursuant to Housing Commission s bond policy. Bonds issuance will not create financial liability to SDHC, Housing Authority, or City. Neither full faith and credit nor taxing power of City, nor full faith and credit of Housing Authority will be pledged for payment of the bonds. San Diego Housing Commission Slide #16
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