Trolley Residential Apartments Final Bond Authorization May Trolley 8, 2015 Residential Loan Modification 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 J.P. Correia Real Estate Manager Real Estate Division
Recommendation Recommend that the Housing Authority of the City of San Diego: Authorize the issuance of up to $15,000,000 in tax-exempt multifamily housing revenue bonds to fund construction of Trolley Residential Apartments, in a transit-oriented affordable rental housing development to be located at 4981 Market Street, San Diego, 92102. Slide #2
Development Summary Proposed new construction of 52 units at 4981 Market Street in the Chollas View neighborhood of Encanto, City Council District 4. Affordable for 55 years. Transit-oriented development adjacent to trolley corridor, near San Diego Trolley (orange line) Euclid Avenue transit station. Near Village at Market Creek Plaza. Three-story building above a one-level subterranean parking garage. Vacant land. Owned by affiliate of Jacobs Center for Neighborhood Innovation (JCNI). Slide #3
Development Summary (Cont.) Experienced developers: Chelsea Investment Corporation and Jacobs Center for Neighborhood Innovation. Chelsea is in compliance with previous loans. Contractor: Emmerson Construction, a Chelsea affiliate. Financing to include 4% tax credits and up to $15,000,000 tax-exempt bonds. $3,120,000 SDHC loan Approvals: February 13, 2015: SDHC Board of Commissioners March 3, 2015: Housing Authority of the City of San Diego Slide #4
Slide #5 SDHC Trolley Residential Apartments Location 4981 Market Street
Slide #6 SDHC Trolley Residential Apartments Site Photo
Slide #7 SDHC Trolley Residential Apartments Site Photo
Slide #8 SDHC Trolley Residential Apartments Site Photo
Affordability for 55 Years HOME Units: Affordability Mix 1 Bedroom/1 Bath Units (594 sq. feet) Estimated Units Net Rent 2 Bedroom/1 Bath Units (761 sq. feet) Estimated Units Net Rent 3 Bedroom/2 Bath Units (1,001 sq. feet) Estimated Units Net Rent * 50% AMI units 1 $720 1 $861 1 $952 3 60% AMI units 0 -- 4 $1,043 4 $1,155 8 Subtotal HOME 1 -- 5 -- 5 -- 11 Non HOME Units: 30% AMI Tax Credit 0 -- 3 $462 3 $509 6 40% AMI Tax Credit 1 $568 5 $679 5 $750 11 50% AMI Tax Credit 4 $720 9 $861 8 $952 21 60% AMI Tax Credit 0 -- 2 $1,043 0 2 Manager s unit 0 -- 0 -- 1 -- 1 Subtotal Non HOME 5 19 17 41 Combined Total Units 6 24 22 52 Percent of total units 11.54% 46.15% 42.31% 100% Totals Slide #9
Estimated Sources and Uses Permanent Financing Sources of Funds Amount Uses of Funds Amount Tax Exempt Bond Financed Permanent Loan $900,000 Land Acquisition $1,628,808 California Transit Oriented Development Loan 4,000,000 Construction Hard Costs with Site Work and Contingency 13,937,406 California Infill Infrastructure Loan 2,644,960 Financing Costs 1,296,449 SDHC Proposed Loan 3,120,000 Operating Reserve 112,348 City/Civic Proposed Loan 800,000 City Impact Fees & Permits 1,464,158 Federal Home Loan Bank AHP Loan 510,000 Entitlement Costs 768,808 4 Percent Tax Credits 9,164,372 Soft Costs 1,802,031 Soil Mitigation Grants (EPA & DTSC) 400,000 Developer Fee 2,000,000 Solar Equity 59,850 Accrued Soft Loan Interest 80,825 Land Note 730,001 Deferred Developer Fee 600,000 Total Sources $23,010,008 Total Development Cost $23,010,008 Estimated Total Development Cost Per Unit (for 52 Units) = $442,500 Slide #10
Estimated Schedule Milestone City Council consideration of City s loan. TCAC and CDLAC allocation meetings.. Housing Authority consideration of proposed bond issuance authorization.. Estimated escrow/financing closing..... Estimated construction start........... Estimated construction completion...... Estimated Date May 19, 2015 May 20, 2015 June 16, 2015 June 26, 2015 July 2015 September 2016 Slide #11
Bond Issuance Summary Proposed tax-exempt bond issuance up to $15,000,000. 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. Slide #12
Slide #13 SDHC Trolley Residential Apartments West Elevation