HomeMy WebLinkAboutCD Permanent Local Housing Allocation (PLHA)____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: May 1, 2023
Disposition: Resolution 15203
Agenda Item No: 4.c
Meeting Date: May 1, 2023
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: COMMUNITY DEVELOPMENT
Prepared by: Alicia Giudice, Director
Chris Hess, Assistant Director
Alexis Captanian, Housing Analyst
City Manager Approval: ___________
TOPIC PERMANENT LOCAL HOUSING ALLOCATION (PLHA)
SUBJECT RESOLUTION RECOMMENDING PERMANENT LOCAL HOUSING
ALLOCATION (PLHA) PROJECT FUNDING FOR THE CALENDAR YEAR
2023 TO THE MARIN COUNTY BOARD OF SUPERVISORS
RECOMMENDATION
1.Adopt a resolution recommending Permanent Local Housing Allocation (PLHA) project
funding for the calendar year 2023 to the Marin County Board of Supervisors.
BACKGROUND
The Permanent Local Housing Allocation Program (PLHA) provides funding to local jurisdictions
for housing and is part of the Building Homes and Jobs Act (SB2) approved by the Governor in
2017. PLHA aims to address the state’s housing shortage and high housing costs by providing
an ongoing source of housing financing through real estate fees.
In February 2020, the California Department of Housing and Community Development (HCD)
released the PLHA Program Notice of Funding Availability (NOFA) for approximately $195
million in local government funding. Marin County is eligible for non-competitive PLHA funds
because of its status as an Entitlement Community by the U.S. Department of Housing and
Urban Development for the Community Development Block Grant (CDBG) program and
because it has an approved Housing Element in compliance with the State Housing Law, at the
time of application, and submits Annual Progress Reports approved by HCD. Funding
recommendations are subject to final approval of PLHA funds by HCD.
On July 21, 2020, the Marin County Board of Supervisors passed a resolution to apply for PLHA
grant funding through the non-competitive NOFA process. In August 2020, the Board also
approved a five-year expenditure plan for the funds. This plan was developed in consultation
with the Board of Supervisors Housing Subcommittee and in alignment with the Countywide
Priority Setting Committee’s 1 (PSC) approved 2020-24 Consolidated Plan and Assessment of
Impediments to Fair Housing Choice (AI).
1 The Countywide Priority Setting Committee is made up of elected representatives of Marin cities and
towns, a member of the Board of Supervisors, and community members representing the federal
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Under the five-year plan, PLHA funds are matched with funds from the Marin County Affordable
Housing Fund (Housing Trust). This activity was recommended by staff to ensure effective and
efficient deployment of PLHA funds. Marin County Housing Trust funds can be applied to
projects in all jurisdictions of Marin, and seeks collaborative funding from cities and towns where
eligible projects are approved. When matched with PLHA, staff aim to distribute funding in each
of the CDBG Planning Areas (County Other, San Rafael, and Novato) with funding dependent
on the recommended project.
For the 2023 program year, the County has $1,179,015 in PLHA funds to distribute. Together,
these matched funds will support predevelopment, development, acquisition, and preservation
of affordable housing, with an emphasis on projects serving those that earn an income at or
under 60 percent Area Median Income (AMI), as stipulated in the PLHA Final Guidelines.
ANALYSIS:
All project applications were evaluated by County staff based on the PLHA criteria developed by
HCD and on the PSC approved program goals.
HCD PLHA Criteria:
• Project readiness: applicant must have site control for development projects, land use
entitlements, environmental review, and commitments of other required funding and
resources.
• Priority for projects supporting individuals and households earning 60% AMI or below.
PSC Approved Program Goals:
In addition to the criteria set forth by HCD, the PSC approved the following PLHA program
goals, which are informed by the HUD approved 2020-24 Consolidated Plan and Analysis of
Impediments to Fair Housing Choice:
• Family Housing
• Rental Housing – Acquisition, New Construction, Rehabilitation
• Homeowner Housing – Acquisition, New Construction, Rehabilitation
• Special Needs Housing
• Land trust in eastern Marin that provides home ownership opportunities, with specific
inclusion for African Americans
Additionally, in alignment with the PSC’s efforts on fair housing and equity, all applications
include:
• A demographic assessment (race/ethnicity, people with disabilities, families) of the
applicant’s existing housing projects in Marin.
• Demographics of staff and board members of the applicant organization(s).
Applications Received and Funding Recommendation
Between February 9 and March 15, 2023, the County released a NOFA for $2,358,030 2 in
PLHA/Marin Housing Trust funds. A total of nine (9) PLHA/Marin Housing Trust applications
protected classes under fair housing laws which includes race, color, national origin, religion, sex, familial
status, and disability.
2 This figure is inclusive of the Marin County Trust Fund match.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
were received for projects across the county totaling $13,216,060 in requests. One (1) of the
applications received is for a project located in San Rafael:
3301 Kerner (Eden Housing) is a State Homekey project that will provide 40 apartments
serving as supportive housing with wrap around services for formerly homeless persons with
mental illness. The project is the adaptive reuse of an existing three-story office building in the
Canal neighborhood. Eden Housing has requested $1,000,000 in PLHA/Marin Housing Trust
funds to address unanticipated design changes required to address a portion of the building that
is situated in a floodplain. This project meets the regulatory requirements set forth by the PLHA
program including readiness and site control. In addition, the project meets two of the program
goals approved by the PSC, including the creation of new rental housing and housing that
serves a special needs population. To-date, the County has contributed over $20 million in
General Fund and County Housing Trust funds towards this project, and the City of San Rafael
has contributed approximately $2.4 million.
To support these unanticipated costs, staff recommend funding $500,000 in PLHA/Marin
Housing Trust funds ($250,000 in PLHA funds and $250,000 in County Housing Trust funds),
contingent on a $250,000 match from the City of San Rafael.
FISCAL IMPACT: The PLHA/Marin Housing Trust fund award is contingent on a $250,000
match from the City of San Rafael. Staff recommends that the City Council consider a funding
request from Eden Housing for the project at 3301 Kerner through the current funding cycle for
the City’s Affordable Housing Trust Fund. Staff is scheduled to present funding
recommendations to the City Council in June 2023, and City Council may appropriate the
matching funds at that time.
OPTIONS:
1. Approve the PLHA funding as recommended.
2. Defer to the Countywide Priority Setting Committee to provide the recommendation for
the San Rafael Planning Area applications.
3. Do not approve the recommendation and provide direction to staff.
ACTION REQUIRED:
Adopt a resolution recommending Permanent Local Housing Allocation (PLHA) project funding
for the calendar year 2023 to the Marin County Board of Supervisors.
ATTACHMENTS:
Attachment 1 Resolution
Attachment 2 PLHA Guidelines
Attachment 3 Funding Application
RESOLUTION NO. 15203
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL RECOMMENDING
PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PROJECT FUNDING FOR
THE FISCAL YEAR 2023-24 TO THE MARIN COUNTY BOARD OF SUPERVISORS
BE IT RESOLVED by the Council of the City of San Rafael as follows:
WHEREAS in September 2017, the Governor signed into law Senate Bill 2, the
“Building Homes and Jobs Act”; and
WHEREAS in February 2020, the California Department of Housing and
Community Development (HCD) released the PLHA Program Notice of Funding
Availability (NOFA) for ongoing local government provision of housing financing through
real estate fees; and
WHEREAS in July 2020, the Marin County Board of Supervisors passed a
resolution to apply for PLHA grant funding through the non-competitive NOFA process;
and
WHEREAS in August 2020, the Marin County Board of Supervisors approved a
5-year expenditure plan for the funds; and
WHEREAS in September 2021, the Countywide Priority Setting Committee
approved program goals for projects; and
WHEREAS on May 1, 2023, the City Council reviewed the submitted applications
in accordance with the required selection process;
NOW, THEREFORE IT IS HEREBY RESOLVED that the City Council
recommends to the Marin County Board of Supervisors that the $250,000 in PLHA funds
available for allocation by the City of San Rafael be distributed to Eden Housing’s 3301
Kerner project, subject to adjustments necessary to accommodate any changes in the
County of Marin’s final allocation from the California Department of Housing and
Community Development (HCD).
I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting
of the Council of said City held on the 1st day of May 2023, by the following vote:
AYES: Councilmembers: Bushey, Hill, Llorens Gulati & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: Kertz
Lindsay Lara, City Clerk
Permanent Local Housing Allocation
Final Guidelines
Gavin Newsom, Governor
State of California
Alexis Podesta, Secretary
Business, Consumer Services and Housing Agency
Douglas R. McCauley, Acting Director
California Department of Housing and Community Development
2020 West El Camino Avenue, Suite 150
Sacramento, CA 95833
October 2019
Department of Housing and Community Development 2 2019 PLHA Final Guidelines
The matters set forth herein are regulatory mandates, and are adopted in accordance with
the authorities set forth below:
Quasi-legislative regulations … have the dignity of statutes … [and]… delegation of
legislative authority includes the power to elaborate the meaning of key statutory terms…
Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999)
In consultation with stakeholders, the California Department of Housing and Community
Development (Department) may adopt Guidelines to implement this Section, including
determining allocation methodologies. Any guideline, rule, policy, or standard of general
application employed by the Department in implementing this chapter shall not be subject
to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Title 2 Government Code, Part 1 of Division 3).
NOTE: Authority Cited: Health and Safety Code Section 50470, subdivision (d).
The Department reserves the right, at its sole discretion, to suspend or amend the
provisions of these Guidelines, including, but not limited to, grant award amounts.
Department of Housing and Community Development 3 2019 PLHA Final Guidelines
INTRODUCTION
Chapter 364, Statutes of 2017 (SB 2, Atkins) was part of a 15-bill housing package aimed
at addressing the state’s housing shortage and high housing costs. Specifically, it
establishes a permanent source of funding intended to increase the affordable housing
stock in California. The revenue from SB 2 will vary from year to year, as revenue is
dependent on real estate transactions with fluctuating activity. The legislation directs the
California Department of Housing and Community Development (Department) to use
70 percent of the revenue collected, beginning in calendar year 2019, to provide financial
assistance to local governments for eligible housing-related projects and programs to assist
in addressing the unmet housing needs of their local communities. This program is
hereafter referred to as the Permanent Local Housing Allocation (PLHA) program.
Guidelines for the PLHA program are organized into five Articles as follows:
Article I. General provisions: This article includes information on the purpose of the
Guidelines, program objectives, and definitions used throughout the document.
Article II. Program funding: This article describes allocation formulas and
methodologies, and award amounts.
Article III. Formula allocation component: This article describes the requirements for
Applicants to apply for funds under the formula allocation of the PLHA program.
Article IV. Competitive allocation component: This article describes requirements and
uses for PLHA competitive allocation funds.
Article V. Administration: This article describes administrative functions such as terms,
non-performance remedies, and reporting and monitoring requirements.
Department of Housing and Community Development 4 2019 PLHA Final Guidelines
Permanent Local Housing Allocation (PLHA) Program:
2019 Guidelines
Table of Contents
ARTICLE I. GENERAL PROVISIONS 5
Section 100. Purpose and Scope 5
Section 101. Definitions 5
ARTICLE II. PROGRAM FUNDING 9
Section 200. Allocations 9
Section 201. Award Amounts 10
ARTICLE III. FORMULA ALLOCATION COMPONENT 11
Section 300. Eligible Applicants 11
Section 301. Eligible Activities 12
Section 302. Threshold Requirements 13
Section 303. Application Review 16
Section 304. Deadlines and Funding Requirements 17
ARTICLE IV. COMPETITIVE ALLOCATION COMPONENT 17
Section 400. Eligible Applicants 17
Section 401. Eligible Activities 18
Section 402. Threshold Requirements 18
Section 403. Selection Criteria 20
Section 404. Application Review 22
Section 405. Deadlines and Funding Requirements 23
ARTICLE V. ADMINISTRATION 23
Section 500. Accounting Records 23
Section 501. Audits/Monitoring of Project Files 24
Section 502. Cancellation and Termination 25
Section 503. Reporting 26
Department of Housing and Community Development 5 2019 PLHA Final Guidelines
ARTICLE I. GENERAL PROVISIONS
Section 100. Purpose and Scope
(a) These Guidelines (hereinafter “Guidelines”) implement, interpret, and make specific
Chapter 364, Statutes of 2017 (SB 2, Atkins - hereinafter “SB 2”) as authorized by
Health and Safety Code (HSC) Section 50470, which created the Building Homes and
Jobs Trust Fund and the PLHA program. The principal goal of this program is to make
funding available to eligible local governments in California for housing -related
projects and programs that assist in addressing the unmet housing needs of their local
communities. Twenty percent of the funding in the Building Homes and Jobs Trust
Fund is required to be expended for Affordable Owner-Occupied Workforce Housing,
and the program prioritizes investments that increase the supply of housing to
households that are at or below 60 percent of the Area Median Income (AMI),
adjusted for household size.
(b) These Guidelines establish terms, conditions, and procedures for local governments
to submit applications to the Department for funds from the PLHA program’s three
components, as listed below:
(1) Entitlement formula component per HSC 50470(b)(2)(B)(i)(I)
(2) Non-entitlement formula component per HSC 50470(b)(2)(B)(i)(II)
(3) Non-entitlement competitive grant program component per
HSC 50470(b)(2)(B)(i)(I) (eligible Applicants are the same as for component 2
above)
(c) The non-entitlement competitive grant program component prioritizes assistance to
persons experiencing or At risk of homelessness.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section
50470, subdivision (b)(2)(A), subdivision (b)(2)(B)(i) and subdivision (b)(2)(B)(ii)(I-V).
Section 101. Definitions
All terms not defined below shall, unless their context suggests otherwise, be interpreted in
accordance with the meanings of terms described in HSC Section 50470.
(a) “Accessory dwelling unit” (ADU) means a dwelling unit which is attached, detached or
located within the living area of the existing dwelling or residential dwelling unit and
which provides complete independent living facilities for one or more persons pursuant
to Government Code (GC) Section 65852.2 and 65852.22. It shall include permanent
provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the
single-family dwelling. An Accessory dwelling unit also includes the following: an
efficiency unit, as defined in Section 17958.1 of the HSC, or a manufactured home, as
Department of Housing and Community Development 6 2019 PLHA Final Guidelines
defined in Section 18007 of the HSC.
(b) "Activity" means any single eligible undertaking carried out as part of an Applicant's
allocation(s) under the Program.
(c) “Affordable” means a housing unit that satisfies at least one of the following criteria:
1. If the unit is being rented to low-income, Very low-income or Extremely
low-income households, it complies with the Multifamily Housing Program
guidelines Section 7312 and the Section 7301 definition of “Affordable
Rent”; or
2. If the unit is being sold, it is offered at an “Affordable housing cost”, as
published in the Fannie Mae Selling Guide, Part B, Debt to Income Ratios,
as updated annually
(https://www.fanniemae.com/content/guide/selling/b3/6/02.html#DTI.20Rat
ios), and it complies with the income limits stated in the definitions of
Moderate-Income and Lower-Income in this section; or
3. If the unit is being rented to Moderate-Income households, it is available at
a gross rent, including a utility allowance, that does not exceed 30 percent
of the applicable income eligibility level, and complies with the definition of
Moderate-Income in these guidelines
(d) "Affordable Owner-Occupied Workforce Housing" (AOWH) means owner-occupied
housing per HSC Section 50092.1 that is affordable to persons and families of low or
moderate income, as that term is defined in HSC Section 50093, except in High-cost
areas where Moderate-income shall include households earning up to 150 percent of
AMI.
(e) “Annual Progress Report” (APR) means the Housing Element APR required by
GC Section 65400 on the prior year’s activities and due to the Department
April 1 of each year.
(f) “Annual Report" means a form issued by the Department and completed by a Local
government awarded PLHA funds on which the Local government documents the uses
and expenditures of any allocated funds and outcomes achieved.
(g) "Applicant" means an eligible Local government applying for the program to administer
one or more eligible activities. Applicant also means a Local or Regional Housing Trust
Fund delegated by an eligible Local government to apply for the program and
administer its allocation in accordance with all program rules.
Department of Housing and Community Development 7 2019 PLHA Final Guidelines
(h) “Area Median Income” or “AMI” means the most recent applicable county median family
income published by the Department, available at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-
limits.shtml
(i) “At risk of homelessness” means the same as defined in Title 24 Section 578.3 of the
Code of Federal Regulations and also includes any household receiving rental
assistance funded by the California Emergency Solutions and Housing (CESH) program
or the California Homeless Emergency Aid Program (HEAP).
(j) “Capitalized Reserve for Services” means the reserve funded by the Local government
pursuant to Section 301(a)(5) to address project supportive service budget deficits
attributable to shortfalls in service funding sources.
(k) “Comprehensive Housing Affordability Strategy” or “CHAS” means annual data
compiled by the United States Census Bureau for the U.S. Department of Housing and
Urban Development (HUD) to document the extent of housing problems and housing
needs, particularly for low-income households.
(l) "Community Development Block Grant" or "CDBG" means the program created
pursuant to Title I of the Housing and Community Development Act of 1974, 42 U.S.C.
5301 et seq., as amended.
(m) “Department” means the California Department of Housing and Community
Development.
(n) “Extremely Low Income” has the meaning set forth in HSC Section 50106, which is a
maximum of 30 percent of AMI. Grantees shall utilize income limits issued by the
Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-
limits.shtml.
(o) “Fund” means the Building Homes and Jobs Trust Fund pursuant t o HSC
Section 50470.
(p) “High-cost area” means those counties defined as high cost by the Federal Housing
Finance Agency (at: https://www.fhfa.gov/DataTools/ and those counties for which HUD
adjusted the Very low income and low-income rents due to high costs (at:
https://www.huduser.gov/portal/pdrdatas_landing.html), as published by the Department
in the annual PLHA Notice of Funding Availability.
(q) “Local government” means any city, including a charter city, any county, including a
charter county, or a city and county, including a charter city and county.
Department of Housing and Community Development 8 2019 PLHA Final Guidelines
(r) “Local Housing Trust Fund” or “Regional Housing Trust Fund” means a public, joint
public and private fund or charitable nonprofit organization described in
Section 501(c)(3) of the Internal Revenue Code, which was established by legislation,
ordinance, resolution (including nonprofit articles of incorporation), or a public-private
partnership organized to receive specific revenue to address local or regional housing
needs.
(s) “Low or Lower Income” has the meaning set forth in HSC Section 50079.5, which is a
maximum of 80 percent of AMI. Grantees shall utilize income limits issued by the
Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-
limits.shtml.
(t) “Moderate-Income” has the meaning set forth in HSC Section 50093, which is a
maximum of 120 percent AMI, or in High-cost areas, 150 percent of AMI. Grantees shall
utilize income limits issued by the Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-
limits.shtml.
(u) “Non-entitlement local government” means a Local government in an area which is not
a metropolitan city or part of an urban county, a Local government that, as of
September 1, 2017, was an incorporated city with a population of less than 50,000 or a
county with an unincorporated area population of less than 200,000 persons which had
not entered into a three-year Urban County Cooperation Agreement, or a Local
government that was not otherwise entitled to receive CDBG funds directly from HUD.
(v) “Operating subsidies” means payments to owners of affordable housing developments
that make the housing more affordable by covering a portion of the ongoing costs of
operating the development. Such payments would have the same effect as rental
assistance.
(w) “Owner-occupied” means a dwelling which is occupied by the owner and includes a
single family dwelling or a dwelling unit in a stock cooperative, as defined by Business
and Professions Code (BPC), Section 11003.2, a community apartment project, as
defined by BPC Section 11004, or a condominium project, as defined by subdivision (c)
of BPC Section 11004. 5.
(x) "Plan" means the document submitted by the Applicant to the Department as part of a
complete application in which the Applicant proposes to use allocated funds for at least
one eligible Activity. The Plan shall have a term of five years. In succeeding years, the
Local government is required to obtain the approval of the Department for any
amendments made to the Plan, as set forth in Section 302(c)(5).
(y) “Permanent Local Housing Allocation Program", “Program”, or "PLHA" means the
program developed to annually allocate 70 percent of the moneys deposited into the
Fund pursuant to HSC Section 50470(b)(2)(B)(i).
Department of Housing and Community Development 9 2019 PLHA Final Guidelines
(z) “Permanent supportive housing” has the same meaning as in HSC Section 50675.14,
that is, housing with no limit on the length of stay, that is occupied by the target
population, and that is linked to onsite or offsite services that assist the supportive
housing residents in retaining the housing, improving his or her health status, and
maximizing his or her ability to live and, when possible, work in the community.
Permanent supportive housing may include associated facilities if used to provide
services to housing residents. Permanent supportive housing does not include “health
facility” as defined by HSC Section 1250 or any “alcoholism or drug abuse recovery or
treatment facility” as defined by HSC Section 11834.02 or “Community care facility” as
defined in HSC Section 1502, “Mental health rehabilitation centers” as defined in
Section 5675 of the Welfare and Institutions Code (WIC), or other residential treatment
programs.
(aa) “Regional Housing Needs Allocation" or "RHNA" means the share of the regional
housing need represented by persons at all income levels within the area significantly
affected by the general plan of the city or county allocated to an Applicant Local
government pursuant to GC Section 65584(b).
(bb) “Sponsor” means the legal entity or combination of legal entities with continuing control
of a Rental Housing Development. Where the borrowing entity is or will be organized as
a limited partnership, Sponsor includes the general partner or general partners who
have effective control over the operation of the partnership , or, if the general partner is
controlled by another entity, the controlling entity. Sponsor does not include the seller of
the property to be developed as the rental housing Project, unless the seller will retain
control of the Project for the period necessary to ensure Project feasibility as
determined by the Department.
(cc) “Very Low Income” has the meaning set forth in HSC Section 50105, which is a
maximum of 50 percent of AMI. Grantees shall utilize income limits issued by the
Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-
limits.shtml.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470.5 and 50470, subdivision (b)(2).
ARTICLE II. PROGRAM FUNDING
Section 200. Allocations
(a) SB 2 created a dedicated revenue source for affordable housing and directed the
Department to make available 70 percent of the moneys in the Building Homes and
Jobs Trust Fund, collected on and after January 1, 2019, to Local governments
through the following allocations:
Department of Housing and Community Development 10 2019 PLHA Final Guidelines
(1) Ninety percent of the moneys available shall be allocated based on the formula
used under Federal law to allocate CDBG funds within California. This is the
formula specified in Title 42 United States Code (USC), Section 5306.
(A) The amount of funds awarded to each Local government eligible for the
entitlement formula component shall be determined by the 90 percent of
PLHA funds available pursuant to this paragraph (1) and the percentage of
funds received by the entitlement Local government in the CDBG federal
fiscal year 2017 allocation process performed by HUD.
(B) Through the formula specified in paragraph (1), the percentage of funds
allocated to Non-entitlement local governments shall be distributed to
Non-entitlement local governments through a competitive grant program.
(2) Ten percent of the moneys available shall be allocated equitably among
Non-entitlement local governments. The equitable allocation awarded to each
Local government eligible for the Non-entitlement formula component shall be
based on the sum of: (1) 50 percent of the funding available for the
Non-entitlement formula component divided by the number of local governments
eligible for the Non-entitlement formula component and (2) 50 percent of the
funding allocated in proportion to each Non-entitlement local government’s share
of the total most severe housing need in California’s Non-entitlement local
governments, based upon the most recent HUD Comprehensive Housing
Affordability Strategy.
(b) After funds are appropriated by the Legislature as part of the budget act, the
Department will issue one or more Notices of Funding Availability (NOFA). Local
governments shall submit an application under the NOFA pertaining to the specific
allocation for which the Local government is eligible.
(c) It is recommended that Local governments that were urban counties in accordance
with the distribution of funds pursuant to the formula specified in 42 USC,
Section 5306 for the federal fiscal year 2017 provide a proportional share of their
allocations to Local governments within their county with which they had a three-year
Urban County Cooperation Agreement as of September 1, 2017, provided that these
Local governments meet the threshold requirements of the PLHA and expend
sub-allocated funds for eligible activities within the deadlines of the Standard
Agreement governing the sub-allocation.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B).
Section 201. Award Amounts
(a) The formula allocation amounts derived pursuant to the formulas in Section 200 will be
announced in the NOFA.
Department of Housing and Community Development 11 2019 PLHA Final Guidelines
(b) The maximum application amount and the minimum application amount for the
competitive allocation will be stated in the NOFA.
(c) An Applicant may apply for its formula allocation from the current and two prior NOFAs
for which it did not receive an award, provided that the award meets the requirements
of Section 304(a).
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B).
ARTICLE III. FORMULA ALLOCATION COMPONENT
Section 300. Eligible Applicants
(a) Eligible Applicants for the entitlement formula component described in
Section 100(b)(1) are limited to the metropolitan cities and urban counties allocated a
grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified
in 42 USC, Section 5306.
(b) Eligible Applicants for the non-entitlement formula component described in
Section 100(b)(2) and the competitive grant program component described in
Section 100(b)(3) are limited to the Non-entitlement local governments.
(c) A Local government may delegate another Local government to submit an application
and administer on its behalf its formula allocation of Program funds, provided that the
Local governments enter into a legally binding agreement and the funds are expended
for eligible Activities and consistent with Program requirements. The delegating Local
government shall be identified in the application. The administering Local government
shall be responsible for all Program requirements.
(d) A Local government may delegate a Local or Regional Housing Trust Fund to submit
an application and administer on its behalf its formula allocation of Program funds,
provided that the Local government enters into a legally binding agreement with the
Local or Regional Housing Trust Fund and the funds are expended for eligible
Activities and consistent with Program requirements. The delegating Local
government shall be identified in the application. The Local or Regional Housing Trust
Fund shall be responsible for all Program requirements.
(e) An Applicant shall not be eligible to receive a new allocation of PLHA funds if it has an
uncommitted amount of formula PLHA funds greater than the following:
(1) Four times the pending annual allocation if the pending annual allocation is
$125,000 or less;
(2) $500,000 if the pending annual allocation is greater than $125,000 and less than
$500,000;
Department of Housing and Community Development 12 2019 PLHA Final Guidelines
(3) The amount of the pending annual allocation if the pending allocation is
$500,000 or more.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B).
Section 301. Eligible Activities
(a) Eligible Activities are limited to one or more of the following:
(1) The predevelopment, development, acquisition, rehabilitation, and preservation of
multifamily, residential live-work, rental housing that is Affordable to Extremely
low-,Very low-, Low-, or Moderate-income households, including necessary
Operating subsidies.
(2) The predevelopment, development, acquisition, rehabilitation, and preservation of
Affordable rental and ownership housing, including Accessory dwelling units
(ADUs), that meets the needs of a growing workforce earning up to 120 percent of
AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for
occupancy for a term of no less than 30 days.
(3) Matching portions of funds placed into Local or Regional Housing Trust Funds.
(4) Matching portions of funds available through the Low- and Moderate-Income
Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.
(5) Capitalized Reserves for Services connected to the preservation and creation of
new Permanent supportive housing.
(6) Assisting persons who are experiencing or At risk of homelessness, including, but
not limited to, providing rapid rehousing, rental assistance, supportive/case
management services that allow people to obtain and retain housing, operating
and capital costs for navigation centers and emergency shelters, and the new
construction, rehabilitation, and preservation of permanent and transitional
housing.
(A) This Activity may include subawards to Administrative Entities as defined in
HSC Section 50490(a)(1-3) that were awarded CESH program or HEAP funds
for rental assistance to continue assistance to these households.
(B) Applicants must provide rapid rehousing, rental assistance, navigation centers,
emergency shelter, and transitional housing activities in a manner consistent
with the Housing First practices described in 25 CCR, Section 8409,
subdivision (b)(1)-(6) and in compliance with WIC Section 8255(b)(8). An
Applicant allocated funds for the new construction, rehabilitation, and
preservation of Permanent supportive housing shall incorporate the core
Department of Housing and Community Development 13 2019 PLHA Final Guidelines
components of Housing First, as provided in WIC Section 8255, subdivision (b).
(7) Accessibility modifications in Lower-income Owner-occupied housing.
(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
(9) Homeownership opportunities, including, but not limited to, down payment
assistance.
(10) Fiscal incentives made by a county to a city within the county to incentivize
approval of one or more Affordable housing Projects, or matching funds invested
by a county in an Affordable housing development Project in a city within the
county, provided that the city has made an equal or greater investment in the
Project. The county fiscal incentives shall be in the form of a grant or low-interest
loan to an Affordable housing Project. Matching funds investments by both the
county and the city also shall be a grant or low-interest deferred loan to the
Affordable housing Project.
(b) A Local government that receives an allocation shall use no more than
5 percent of the allocation for costs related to the administration of the Activity(ies) for
which the allocation was made. Staff and overhead costs directly related to carrying
out the eligible activities described in Section 301 are “activity costs” and not subject
to the cap on “administrative costs.” A Local government may share any funds
available for administrative costs with entities that are administering its allocation.
(c) Two or more Local governments that receive PLHA allocations may expend those
moneys on an eligible jointly funded project as provided for in Section 50470
(b)(2)(B)(ii)(IV). An eligible jointly funded project must be an eligible Activity pursuant
to Section 301(a) and be located within the boundaries of one of the Local
governments.
(d) Entitlement Local governments may use the flow of PLHA funds to incentivize private
lender loans and to guarantee payments for some or all public agency bond financings
for activities consistent with the uses identified in Section 301 “Eligible Activities”. This
loan guarantee Activity must be identified and fully explained in the Applicant’s “Plan”.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivisions (b)(2)(B)(ii)(IV), (b)(2)(D)(i-x), and (b)(3).
Section 302. Threshold Requirements
Applicants must meet all the following threshold requirements for participation in the
formula allocation:
(a) Housing Element compliance: The Applicant and any delegating Local government,
if applicable, must have a Housing Element that has been adopted by the Local
Department of Housing and Community Development 14 2019 PLHA Final Guidelines
government’s governing body by the application deadline and subsequently
determined to be in substantial compliance with state Housing Element Law pursuant
to GC Section 65585. A Local government’s current Housing Element compliance
status can be obtained by referencing the Department’s website at
http://www.hcd.ca.gov/community-development/housing-element.
(b) APR on the Housing Element submitted to the Department: The Applicant and any
delegating Local government, if applicable, must submit to the Department the APR
required by GC Section 65400 for the current or prior year by the application deadline
date.
(1) Please be advised that the Department will not accept other reports in lieu of the
APR. Housing Authority Financial Reports, Redevelopment Reports, and other
similar reports will not be accepted as meeting this requirement. If uncertain of the
status of the report submittal for a Local government, please contact the
Department for more information.
(c) Submit, by the deadline specified in the NOFA, on a form made available by the
Department, a complete application which shall meet the following minimum
requirements:
(1) Application requests an allocation pursuant to Section 200 in order to carry out one
or more of the eligible activities described in Section 301. Except for a jointly
funded project as described in Section 301(c), any activities must be carried out
within the jurisdiction of the Applicant Local government.
(2) Submission of the application is authorized by the governing boards of the
Applicant.
(3) Certification in the resolution that, if the Local government proposes allocation of
funds for any Activity to another entity, the Local government’s selection process
shall avoid conflicts of interest and shall be accessible to the public . For the
purposes of this paragraph, “entity” means a housing developer or program
operator; “entity” does not mean an administering Local government to whom a
Local government delegates its PLHA formula allocation, pursuant to Section
300(d).
(4) A Plan detailing:
(A) The manner in which allocated funds will be used for eligible Activities.
(B) A description of the way the Local government will prioritize investments that
increase the supply of housing for households with incomes at or below
60 percent of AMI. Programs targeted at households at or below 60 percent of
AMI will be deemed to meet this requirement.
Department of Housing and Community Development 15 2019 PLHA Final Guidelines
(C) A description of how the Plan is consistent with the programs set forth in the
Local government’s Housing Element.
(D) Evidence that the Plan was authorized and adopted by resolution by the Local
government and that the public had an adequate opportunity to review and
comment on its content.
(E) The following for each proposed Activity:
(i) A description of each proposed Activity, pursuant to Section 301, and the
percentage of funding allocated to it. The description shall specifically
include the percentage of funds, if any, directed to AOWH.
(ii) The projected number of households to be served at each income level and
a comparison to the unmet share of the RHNA at each income level.
(iii) A description of major steps/actions and a proposed schedule required for
the implementation and completion of the Activity.
(iv) The period of affordability and level of affordability for each Activity. Rental
Projects are required to have affordability periods of at least 55 years.
(5) The Plan submitted in response to the NOFA shall be for a term of five years. Local
governments shall obtain approval of the Department for amendments made to the
Plan in each succeeding year of the term of the Plan. Reallocations of more than
10 percent of funds among Activities require amendment of the Plan, with approval
granted by the governing body at a publicly noticed public meeting.
(6) A certification that, if funds are used for the acquisition, construction, or
rehabilitation of for-sale housing projects or units within for-sale housing projects,
the grantee shall record a deed restriction against the property that will ensure
compliance with one of the following requirements if the property is no longer the
primary residence of the homeowner due to sale, transfer or lease, unless it is in
conflict with the requirements of another public funding source or law:
(A) The PLHA loan and any interest thereon shall be repaid to the Local
government’s PLHA account. The Local government shall reuse the
repayments consistent with Section 301; or
(B) The initial owner and any subsequent owner shall sell the home at an
Affordable housing cost to a qualified Lower-Income or Moderate-Income
household; or
(C) The homeowner and the Local government shall share the equity in the unit
pursuant to an equity-sharing agreement. The grantee shall reuse the proceeds
Department of Housing and Community Development 16 2019 PLHA Final Guidelines
of the equity-sharing agreement consistent with this section.
(7) A certification that, if funds are used for the development of an Affordable Rental
Housing Development, the Local government shall make the PLHA assistance in
the form of a low-interest, deferred loan to the Sponsor of the Project. The loan
shall be evidenced through a Promissory Note secured by a Deed of Trust, and a
Regulatory Agreement shall restrict occupancy and rents in accordance with the
Local government-approved underwriting of the Project for a term of at least
55 years.
(8) A Program income reuse plan describing how repaid loans will be reused for
eligible activities specified in Section 301.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section
50470, subdivision (b)(2)(B)(ii).
Section 303. Application Review
(a) Applicants must submit a complete application by the deadline stated in the NOFA in
order to be eligible for funding. Application forms provided by the Department will be
available upon release of the NOFA and will require Applicants to submit the forms
and other documents to demonstrate that the Local government has met threshold
requirements.
(b) The Department may request additional information to complete its review.
(c) Applications recommended for funding are subject to conditions specified by the
Department. Applicants will receive an official letter of award after the Department
approves funding recommendations.
(d) The Department may issue an Over-the-Counter formula allocation NOFA after
completing the NOFA process so that Local governments who were not able to submit
formula allocation applications by the application deadline will have another
opportunity to do so.
(e) If funding proposed in Local government Plans for AOWH activities is lower than
20 percent of the moneys available in the Fund, the Department may require Local
governments to use a specific percentage of their annual formula allocations in some
future year for AOWH activities as part of the annual funding process.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(A).
Department of Housing and Community Development 17 2019 PLHA Final Guidelines
Section 304. Deadlines and Funding Requirements
(a) The initial PLHA application, including the Plan, must be submitted within 48 months
of the budget appropriation (for example, the budget appropriation for 2019 is
July 1, 2019, so the application deadline is June 30, 2023).
(b) Funds allocated to Local governments that do not submit a complete application by
the deadline stated in subsection (a) will revert to the Housing Rehabilitation Loan
Fund for the Multifamily Housing Program or for Department-administered technical
assistance to Local governments.
(c) A Local government may petition the Department to return any funds allocated to it to
be used for the Multifamily Housing Program.
(d) Except for predevelopment expenses for construction projects funded by PLHA and
costs to develop and prepare the Plan and the PLHA application, no costs incurred
more than one year prior to commitment by the Local government may be paid from
PLHA funds. Reimbursement of expenses to prepare the Plan and the PLHA
application are subject to the cap on administrative fees.
(e) After the Standard Agreement and attachments have been finalized, the Local
government will follow provided instructions for signing all required documents . The
Local government must submit all supporting materials and a signed Standard
Agreement within the timeline provided in the instruction.
(f) After the Standard Agreement has been executed by the state, the Local government
may submit a request for 100 percent of the funds allocated to be used for eligible
expenditures for the Activity(ies) that received the award, and subject to the terms and
conditions of the Standard Agreement.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(i) and subdivision (b)(2)(B)(ii)(VI).
ARTICLE IV. COMPETITIVE ALLOCATION COMPONENT
Section 400. Eligible Applicants
(a) Eligible Applicants for the non-entitlement competitive allocation described in
Section 100(b)(3) are limited to Non-entitlement local governments. For development
of Rental Housing Projects, the Sponsor must be a co -Applicant.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(i)(I).
Department of Housing and Community Development 18 2019 PLHA Final Guidelines
Section 401. Eligible Activities
(a) Eligible Activities are limited to the following and must take place within the jurisdiction
of the Applicant Local government:
(1) Development of new multifamily rental housing that is Affordable to households at
or below 60 percent of AMI or substantial rehabilitation of multifamily rental
housing that will be Affordable to households at or below 60 percent of AMI, but
which is not currently restricted as Affordable housing; or
(2) Assistance to persons who are experiencing or At risk of homelessness, including,
but not limited to, through rapid rehousing, or rental assistance, supportive
services and case management services that allow people to obtain and retain
housing, operating and capital costs for navigation centers, or new construction,
rehabilitation, or preservation of permanent or transitional rental housing.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section
50470, subdivision (b)(2)(B)(i)(I)(ia), (b)(2)(B)(i)(I)(ib) and subdivision (b)(2)(B)(ii)(V).
Section 402. Threshold Requirements
Applicants must meet all the following threshold requirements for participation in the
competitive allocation:
(a) Housing Element compliance: The Applicant must have a Housing Element that has
been adopted by the jurisdiction’s governing body by the application deadline date and
subsequently determined to be in substantial compliance with state Housing Element
Law pursuant to GC Section 65585. A Local government’s current Housing Element
compliance status can be obtained by referencing the Department’s website at
http://www.hcd.ca.gov/community-development/housing-element.
(b) APR on the Housing Element submitted to the Department: The Applicant must
submit to the Department the APR required by GC Section 65400 for the current or
prior year by the application deadline date.
(1) Please be advised that the Department will not accept other reports in lieu of the
APR. Housing Authority Financial Reports, Redevelopment Reports, and other
similar reports will not be accepted as meeting this requirement. If uncertain of the
status of the report submittal for a Local government, please contact the
Department for more information.
(c) Submit by the deadline specified in the NOFA, on a form made available by the
Department, a complete application which shall meet the following minimum
requirements:
(1) Application requests a grant pursuant to Section 100(b)(3) in order to carry out one
Department of Housing and Community Development 19 2019 PLHA Final Guidelines
or both of the eligible Activities set forth in Section 401.
(2) Submission of the application is authorized by the governing board of the Applicant
and by the developer co-applicant, if any.
(3) Certification in the resolution that, if the Local government proposes allocation of
funds for any Activity to another entity, the selection process shall avoid conflicts of
interest, and shall be accessible to the public.
(4) Demonstration of readiness, including site control for development Projects, land
use entitlements, environmental review and commitments of other funding and
resources required, as further set forth in the NOFA;
(5) Underwriting requirements:
(A) Uniform Multifamily Regulations Subchapter 19 of Title 25, Division 1,
Chapter 7 (commencing with Section 8300), as amended from time to time, and
the Multifamily Housing Program Guidelines (commencing with Section 7300),
as amended from time to time, are hereby incorporated by reference into this
subchapter and shall apply to Rental Housing Developments receiving
assistance under the PLHA competitive allocation. In the event of a conflict
between the provisions of Subchapter 19 and these Guidelines, the provisions
of these Guidelines shall prevail.
(i) Section 8312(c) of the Uniform Multifamily Regulations is hereby amended
to read:
(c) For Projects utilizing 4 percent tax credits, Developer Fee payments
shall not exceed the amount that may be included in Project costs pursuant
to 4 CCR, Section 10327. In addition, the Developer Fee paid from
development funding sources shall not exceed the following:
(1) For acquisition and/or rehabilitation Projects, or adaptive reuse Projects,
the lesser of the amount of Developer Fee in Project costs or $2,000,000.
(2) For new construction Projects, the base limit shall be the lesser of the
amount that may be included in Project costs or $2,200,000. To arrive at the
final limit on Developer Fee paid from development funding sources, the
base limit shall then be multiplied by a ratio that is the average of (i) th e
difference between 2 and the Project’s high-cost ratio, as calculated
pursuant to 4 CCR, Section 10317(i)(6) or successor language and (ii) 100
percent.
(ii) Section 8312(d) of the Uniform Multifamily Regulations shall not apply.
(iii) Section 8314(a)(1)(A) of the Uniform Multifamily Regulations is amended to
read:
(A) Approved deferred Developer Fee, pursuant to Section 8312, provided
that the aggregate of the Developer Fee paid from sources and paid as
deferred shall not exceed $3,500,000.
Department of Housing and Community Development 20 2019 PLHA Final Guidelines
(B) Period of affordability: All assisted rental units shall be restricted for not less
than 55 years.
(C) All development Projects shall demonstrate fiscal integrity.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(ii).
Section 403. Selection Criteria
(a) Applications submitted within a competitive funding round shall be evaluated using the
following criteria. Total available points shall equal 100.
1. Priority Points – 25 points
A. Population - 5 points
(i) If the Applicant is a county that has a population of 200,000 or less
within the unincorporated areas of the county, the Applicant shall
receive all points.
B. Prior Award – 5 points
(i) If the Applicant did not receive an award based on the formula
specified in 42 USC, Section 5306 in 2016, the Applicant shall receive
all points.
And either C (i) or C (ii) or C (iii) below:
C. Activity
(i) Assistance for Homeless Persons through Program Activities –
15 points
(a) Applications to assist persons experiencing or At risk of
homelessness, including, but not limited to, through programs
providing rapid rehousing, or rental assistance, or operating
assistance to navigation centers shall receive all points.
Or
(ii) Assistance to Homeless Persons through Development of Navigation
Centers– 15 points
(a) Applications for construction of navigation centers shall receive
all points.
Or
Department of Housing and Community Development 21 2019 PLHA Final Guidelines
(iii) Assistance for Homeless Persons through Rental Projects – 15 points
(a) Applications for the new construction, rehabilitation, or
preservation of permanent or transitional rental housing in which
all or at least 10 percent of the units are restricted to occupancy
by tenants who are homeless or At risk of homelessness shall
receive all points.
2. Evaluation Criteria – 75 points
Precise scoring for these factors will be set forth in the NOFA.
A. Community Need – 30 points
(i) Applicants will receive up to a maximum of 30 points based on the rate
of households experiencing the most severe housing need according to
the most recent HUD CHAS dataset in the Applicant Local government.
Applicants will receive points in proportion to this percentage.
B. Applicant Administrative Experience – 15 points
(i) Applicants with prior experience administering local, state or federal
affordable housing or community development programs or who have
entered into a contract with an entity with prior experience in the
implementation of local, state or federal affordable housing or
community development programs will receive up to 15 points.
C. Demonstrated Capacity – 30 points
(i) Capacity points will be based on:
(a) Sponsor experience in Affordable Rental Housing Development
and ownership (Up to 30 points) or
(b) Navigation center development experience (for development of
these facilities) (Up to 30 points) or
(c) Program Operator experience (for non-development Activities)
(Up to 30 points)
(b) Where applications requesting funds for more than one eligible Activity pursuant to
Section 401 are permitted by the NOFA, each Activity will receive a separate score for
each rating factor, and have an individual Activity total. It is possible that one Activity
may score highly enough to receive an award, and the other Activity does not.
(c) In the event of tied point scores and insufficient funding for both applications, the
Department shall rank the tied applications as follows:
(1) If one of the tied applications is for an Affordable Rental Housing Development and
the other is for a program Activity or development of a navigation center, the
Department of Housing and Community Development 22 2019 PLHA Final Guidelines
Affordable Rental Housing Development application will be selected for funding;
(2) If one of the tied applications is for a navigation center and the other is for a
program Activity, the navigation center will be selected for funding;
(3) If both of the tied applications are for Affordable Rental Housing Developments, the
Project with the lowest weighted average affordability of Restricted Units will be
selected;
(4) If both of the tied applications are for navigation centers, the facility that provides
overnight shelter to the greatest number of people will be selected;
(5) If both of the tied applications are for programs, the Local government with the
highest rate of households experiencing the most severe housing need according to
the most recent HUD CHAS dataset will be selected.
(d) In the event there are insufficient funds to fulfill the entire funding request for the next
highest scored application (Application A), the Department will determine whether
Application A is feasible without the full funding request . If Application A is not feasible
without full funding, the Department may offer the remaining funds to the applica tion
whose score is immediately below Application A. If the remaining funds are insufficient
to fulfill the funding request for that application (Application B), the Department will
again determine whether this application is feasible without the full fund ing request. If
Application B is not feasible without the full funding request, the Department will
perform the same analysis for the application whose score is immediately below
Application B.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(i)(I)(ia) and subdivision (b)(2)(B)(ii)(V).
Section 404. Application Review
(a) Applicants must submit a complete application by the deadline stated in the NOFA in
order to be eligible for funding. Application forms provided by the Department will be
available upon release of the NOFA and will require Applicants to submit the forms
and other documents to demonstrate that the Local government has met threshold
requirements. The application will require submission of documentation adequate to
demonstrate that the application has earned the appropriate number of points.
(b) The Department may request additional information to complete its review, provided
that the new information would not affect scoring.
(c) Applications recommended for funding are subject to conditions specified by the
Department. Applicants will receive an official letter of award after the Department
approves funding recommendations.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(ii).
Department of Housing and Community Development 23 2019 PLHA Final Guidelines
Section 405. Deadlines and Funding Requirements
(a) Applicants will be required to enter into a state Standard Agreement (Standard
Agreement) that will set forth conditions for funding and milestones that are required to
be met.
(b) After the Standard Agreement and attachments have been finalized, the Local
government will follow provided instructions for signing all required documents . The
Local government must submit all supporting materials and a signed Standard
Agreement within the timeline provided in the instructions or risk forfeiting the grant
award.
(c) Except for predevelopment expenses for construction projects funded by PLHA and
the costs to develop and prepare the PLHA application, no costs incurred more than
one year prior to commitment by the Local government may be paid from PLHA funds.
Reimbursement of expenses to prepare the PLHA application is subject to the cap on
administrative fees.
(d) Grant funds shall not be disbursed until:
(1) the Department authorizes loan closing, in the case of development projects; or
(2) all general and special conditions have been complied with, in the case of other
Activities.
(e) If funds are used for the development of an Affordable Rental Housing Development,
the Local government shall make the PLHA assistance in the form of a low-interest,
deferred loan to the Sponsor of the project. The loan shall be evidenced through a
Promissory Note secured by a Deed of Trust, and a Regulatory Agreement shall
restrict occupancy and rents in accordance with the Department-approved
underwriting of the project for at least 55 years.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(ii)(VI).
ARTICLE V. ADMINISTRATION
Section 500. Accounting Records
(a) The grantee shall establish a separate ledger account for receipts and expenditures of
grant funds and maintain expenditure details in accordance with the approved work
plan, budget, and schedule. Separate bank accounts are not required.
(b) The grantee shall maintain documentation of its financial records for expenditures
incurred during the course of the PLHA Activity in accordance with generally accepted
accounting principles. Such records shall be kept for at least five years after the
close-out report is submitted to the Department.
Department of Housing and Community Development 24 2019 PLHA Final Guidelines
(c) The Department or its designated representative shall have the right to review and
copy any records and supporting documentation pertaining to the PLHA grant.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(ii)(III) and subdivision (b)(2)(B)(IV) and
subdivision (b)(3).
Section 501. Audits/Monitoring of Project Files
(a) Grantee shall maintain PLHA files which, at a minimum, should include the
following information and reports:
1) Project/Activity description
2) Land/site Information
3) Planning & zoning history (as appropriate)
4) Records of public hearings and public comments
5) Relocation needs (as appropriate)
6) Contracts, loan and grant agreements, Standard Agreement
7) Environmental records & reports/findings (as appropriate)
8) Design/engineering reports & plans (as appropriate)
9) Description of targeted beneficiaries, services to be provided, household
incomes, special needs
10) PLHA Activity costs, invoices, purchase orders, sources and uses of funds for
PLHA Activities, terms & conditions of financings, draws and all supporting
documentation, change orders (as appropriate)
11) Activity schedule and amendments
12) History of Plan amendments
13) Procurement policy used for PLHA Activity(ies)
(b) The grantee shall maintain such records for possible audit for a minimum of three
years after the close-out report is submitted, unless a longer period of records
retention is stipulated in the Standard Agreement.
(c) The grantee shall be responsible for monitoring Rental Housing Developments that
received PLHA funds for the term of the loan, including, but not limited to, the Projects’
compliance with the occupancy and rent requirements set forth in the Regulatory
Agreement, compliance with reserve requirements, and the compliance with
habitability standards.
(d) The grantee shall be responsible for monitoring AOWH loans to assure that the homes
remain Owner-occupied.
(e) If requested by the Department, the grantee shall obtain a report from a qualified,
Department of Housing and Community Development 25 2019 PLHA Final Guidelines
licensed third party that certifies to the amounts of disbursement and identifies the
specific Activities for which the disbursements were made. Such a report is permitted
to be a component of the A-133 audit.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(ii)(IV) and subdivision (b)(3).
Section 502. Cancellation and Termination
(a) In the event that it is determined, at the sole discretion of the Department, that the
grantee is not meeting the terms and conditions of the Standard Agreement, the
Department shall issue a notice to stop work. Immediately upon receiving the written
notice to stop work, the grantee shall cease all work under the Standard Agreement.
The Department has the sole discretion to determine the grantee’s compliance with
the terms and conditions after issuance of a stop work order, and to deliver a written
notice to the grantee to resume work under this Standard Agreement.
(b) The Department shall terminate the Standard Agreement if the grantee is not in
compliance with the Guidelines or the terms and conditions of the Standard
Agreement. At least 30 days prior to the effective date of the termination of the Standard
Agreement, the Department shall provide written notice to the grantee of its intent to
cancel the funding allocation. The notice shall specify the reason for early termination
and may permit the grantee or the Department to cure any deficiency(ies) prior to the
early termination date. The grantee will submit requested documents to the
Department within 30 days of the early termination notice.
(c) Failure to meet reporting requirements will result in notice to the grantee that it must
satisfactorily cure any deficiencies within three months of the notice or it will forfeit the
following year’s PLHA formula allocation and be ineligible for a competitive award. The
Local government will forfeit subsequent PLHA formula allocations and be ineligible
for a competitive award until the Department determines that the Local government
has met reporting requirements.
(d) The Department may, as it deems appropriate or necessary, request the repayment of
funds from a Local government or offset future years’ funds, or pursue any other
remedies available to it by law for failure to comply with the Guidelines and/or the
terms and conditions of the Standard Agreement.
(e) Co-Applicants may be adversely impacted by a notice to stop work and/or termination
if one grantee is deemed by the Department to not meet the terms and conditions of
the Standard Agreement, or fails to meet the reporting requirements outlined in
Section 503.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(ii)(IV) and subdivision (b)(3).
Department of Housing and Community Development 26 2019 PLHA Final Guidelines
Section 503. Reporting
(a) The Department shall provide grantees with reporting formats and instructions.
(b) Annual Reports are required from all grantees pursuant to HSC Section
50470(b)(2)(B)(ii)(III) each year by July 31 for the term of the Standard Agreement.
The Annual Report shall document the uses and expenditures of all awarded
allocations and outcomes achieved. This report must be signed by both the Local
government’s PLHA administrator and the Local government’s City Manager (or
his/her designee), or Chief Executive Officer (or his/her designee) or Chief Financial
Officer (or his/her designee). The Annual Report must describe any proposed
amendment(s) to the approved Activity and schedule.
(c) Upon expenditure of all allocated funds and completion of the Activities funded by
PLHA, the grantee shall submit a close-out report, which will be part of the Annual
Report.
(d) The Department may request additional information as needed to meet other
applicable reporting or audit requirements.
NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC
Section 50470, subdivision (b)(2)(B)(ii)(III) and subdivision (b)(2)(B)(ii)(IV).
Friday, March 17, 2023
2023-24 Sup er-NO FA Application f or Affordable Housing
Fund s
Marin County Housing & Federal Grants D ivision
This applicati o n i s fo r affo rdable ho using develo pers in Marin C o unty, Califo rnia who wo ul d l ik e to
apply fo r multipl e state, l o cal, and federal funding so urces s imultaneo usly. Pl eas e refer to the No tice o f
Funding A vailability (N OFA) released o n February 6, 2023 fo r detail ed i nfo rmati o n abo ut q uali fi cati o ns
and appli catio n req ui rements .
The fo ll o wi ng grant s o urces and amo unts are avai labl e thro ugh this appli cati o n:
1. Marin County Affordable H ousing Fund (H TF) and State P ermanent Local H ousing Allocation (P LH A)
- $2.3 millio n
2. Federal H OME-AR P - $2.4 mil li o n
3. Federal CDB G H ous ing - $600 tho usand
Ap p lic ant Information
Orga nization Na me
E den Ho using
Website URL
https ://edenho using.o rg/
DUNS #
058211947
Mailing Address
22645 Grand Street
H ayward, C ali fo rni a, 94541
Project Contact Name
Kate Blessi ng-Kawamura
Title
A s s o ciate D irecto r o f Real E state Develo pment
Email Address
kate.blessing-k awamura@edenho usi ng.o rg
Phone Number
(510) 329-5102
Executive Director Name
Linda Mando l ini
Executive Director Email Address
LMando l ini @edenho usi ng.o rg
1
Is there a co-applica nt organiza tion?
N o
Briefly describe your organization, including mission, programs, staff experience, and number
of clients served. Describe the co-applicant organization, if applica ble.
E den Ho using is o ne o f the o ldest and mo st experienced affo rdable ho us ing no n-pro fit o rganizatio ns in
C ali fo rnia. Our missio n is to create and sustain high-q uality affo rdable ho using co mmuni ti es that
advance eq uity and o ppo rtuni ty fo r all. Since o ur inceptio n in 1968, E den has wo rk ed i n partnershi p with
cities and lo cal co mmunity partners to develo p, acq ui re, o r rehabilitate mo re than 12,000 affo rdable
ho mes in 170 pro perties thro ugho ut C ali fo rni a, and currently pro vi des ho mes to a diverse po pulatio n o f
mo re than 22,000 l o wer-i nco me res idents .
E den wo rk s in 15 co unties, i ncludi ng the Co unty of Marin, where we o wn and o perate The Fi resi de and
Warner Creek . A s a mi s s io n-driven no n-pro fi t, we serve l o w-inco me families, s enio rs, and peo pl e l ivi ng
with di s abil ities. E den’s wo rk go es beyo nd buil ding high q uali ty buil dings, as we strive to create stro ng
co mmunities fo r the resi dents who li ve i n o ur ho using and a permanentl y affo rdable, hi gh-q ual ity asset
fo r the ci ties we partner with. Our vi s io n is fo r everyo ne to have access to s afe, decent, affo rdable
ho us ing. We bel ieve that ho usi ng i s a bas ic human neces s ity that is es s enti al to everyday li fe and
future s ucces s . We s erve very lo w, l o w and mo derate-inco me families, s enio rs, veterans, peo ple li ving
with physi cal, mental , o r develo pmental disabiliti es, and the fo rmerly ho mel es s.
U nder the E den H o us ing umbrel la, E den H o using Management, Inc. (E H MI) pro vides q uality o nsite
management and maintenance o f o ur affo rdable ho mes, and E den H o us ing Res ident Services, Inc.
(E H RSI) o ffers free o ns ite suppo rt services and pro grams fo r res idents . In 2022, E den H o us ing bro ught
o n Jo hn Stewart C o mpany (JSC o ) as the pro perty management agent fo r several o f its upco ming
permanent s uppo rti ve ho using pro jects , incl uding 3301 Kerner, to acco mmo date a gro wi ng pi peli ne.
Have there been a ny recent or upcoming leadership tra nsitions?
C hief Operating Offi cer, Oyesho l a (“Sho la”) Ol ato ye jo i ned E den in Octo ber o f 2022. Sho l a previo usl y
served as directo r o f Ho using and Co mmunity Develo pment fo r the City o f Oakl and. Under her
leadership, Oak l and’s City Co unci l appro ved H CD ’s two -year Strategic Actio n Plan, which fo cused the
department’s reso urces o n pro tecting, pres ervi ng and pro ducing affo rdabl e ho usi ng. During her tenure,
the C ity o f Oak land wo n s ix state H o mek ey awards res ulting in mo re than 400 new permanent deeply
affo rdabl e uni ts. Sho la also launched the city’s federal $48M E mergency Rental Assi s tance pro gram
and served mo re than 3,000 Oak landers who needed immediate rent rel ief. She also s ecured the
department’s research relatio ns hip with Stanfo rd Uni versi ty’s Impact Lab, res ulting in new $50K impact
grant to devel o p new techno lo gy fo r resi dents to access affo rdabl e rental ho us ing.
A natio nal ly reco gnized ho usi ng l eader, Sho l a has also held executi ve and s enio r-l evel po s ts at Suffo l k
C o ns tructio n, E nterprise Co mmunity Partners, H SBC Bank , and H R&A Adviso rs. In 2014, Mayo r Bill de
Blasi o appo i nted her as C hair and C E O o f the New Yo rk C ity H o us ing Autho ri ty, a ro l e she held fo r fo ur
years. She co nducts freq uent s peaking engagements , including as a panel ist at H arvard’s T.H. C han
Scho o l o f Publ ic H ealth, and was sel ected as o ne o f fo ur natio nal Fello ws fo r the UC Berk eley Terner
C enter fo r H o us ing Inno vatio n in June 2021.
Sho la is respo nsi ble fo r o versi ght o f Pro perty Operatio ns (pro perty management and resi dent s ervi ces ),
H uman Reso urces and Talent Devel o pment, and Business Techno lo gy.
Have there been a ny recent expansions or cutback s in activities a nd/or budge t? If so, please
e xplain.
E den Ho using published a new Strategi c Pl an i n 2020 that ai ms at the creati o n o f 10,000 new ho mes in
the next ten years. The fo ur pillars o f this s trategic plan are: (1) Significantly increas e ho usi ng fo r lo w-
inco me Cal ifo rnians; (2) Suppo rt the s tabi li ty and eco no mi c mo bil ity o f resi dents; (3) E mbed
co mmitment to racial, so ci al and eco no mi c j us ti ce i n al l o f o ur wo rk ; and (4) Invest in k ey
2
infras tructure to increas e o rgani zatio nal agil ity and readi nes s fo r s cale. A s a part o f its gro wth go al s
E den plans to expand fro m a ro bust N o rthern Cal ifo rnia pipel ine to a statewide develo pment platfo rm
with the capacity to create mo re ho mes in high need co mmunities.
If applica ble, what is the orga nization’s standing with licensing or other a ccre ditation
a uthorities?
E den and its related o rganizatio ns are i n co mpli ance with any applicable licensi ng req ui rements.
How does your organization verify client income?
In general, E den Ho usi ng uses the fo ll o wi ng pro cedure fo r determining res ident el igi bil ity and fo r
certifying ho us eho ld inco me: (1) E ach pro spective resident s hall co mplete an appli cati o n fo rm and
return it to the Pro perty Manager wi th s igned permissi o n fo r third party verificatio n o f i nco me; (2) When
an appli cant's name nears the to p o f the wai ting l ist, perti nent info rmatio n wi ll be co nfi rmed as current
and third-party veri fi cati o n letters are sent; (3) The manager s hall co nduct a perso nal intervi ew with all
members o f the pro s pecti ve ho useho l d; (4) Third party veri fi cati o n fo rms wi ll be us ed to co mpute
inco me el igi bil ity and a determinatio n wi ll be made co ncerning applicant ho us eho ld's ability to li ve
harmo nio usl y within the Pro j ect co mmunity; and (5) Previ o us l andlo rd verificatio n, credi t check s ,
cri mi nal check s and sex o ffender check s wi ll be perfo rmed. Written no tice wil l be sent advi s ing
applicants o f thei r final eligibility status. These pro cedures may be revi s ed fo r any units subj ect to
H o using First po l ici es .
General Project Information
Project Na me
3301 Kerner
Project Address
3301 Kerner Blvd
San Rafael, Cal ifo rnia, 94901
Assessor’s Pa rcel Number (APN)
008-082-52
Funding Requests
Which funding source(s) a re you seeking for this project? Please refer to the NOFA for a
description of each funding source and eligible project types. Those applying for HOME-ARP
funds are highly encoura ged to a pply for HTF/PLHA funds a s well.
H TF/PLHA
HTF/PLHA Amount Requested
$1,000,000
Project Details
Scope of Work : Describe the propose d project, including details such as property
cha ra cteristics, proposed use of funds, a nd numbe r of housing units involved. Explain how the
project will benefit the community.
The si te is lo cated at 3301 Kerner Bo ulevard i n San Rafael. Thi s pro ject is an adaptive reuse
devel o pment o f a fo ur-sto ry o ffi ce bui ldi ng to pro vide 41 uni ts o f permanent suppo rtive ho us ing (32
studi o uni ts, 8 o ne-bedro o m uni ts, and 1 two -bedro o m unit). Lo cated i n the C anal neighbo rho o d o f San
Rafael , thi s pro ject wil l pro vi de criti cally-needed permanent s uppo rtive ho us ing and suppo rtive services
3
fo r ho meless o r fo rmerl y ho meless ho us eho lds wi th mental i ll ness.
The develo pment wil l be 100% permanent suppo rti ve ho usi ng with 14 units fo r ho useho l ds with severe
mental il lness at o r belo w 20% AMI thro ugh the No Place Like Ho me Pro gram (N PLH) and 26 units fo r
ho us eho lds at o r belo w 30% AMI who wi ll mo ve fro m permanent suppo rtive ho usi ng at V o yager Carmel
C enter to 3301 Kerner o nce co ns tructi o n is co mpl ete. One unrestricted two -bedro o m unit is set aside
fo r an o n-si te pro perty manager. Bui ldi ng ameniti es include: a co urtyard, co mmuni ty ro o m, co nference
ro o m, and o ffices fo r case managers and a pro perty manager. The residenti al fl o o rs include a laundry
faci li ty o n the seco nd fl o o r and tras h chutes o n every flo o r.
A s o f the date o f this funding applicatio n, the pro ject team i s prepari ng to clo se o n i ts co ns tructio n
fi nanc ing and start co nstructi o n i n the next co upl e o f week s. In the last week , the pro j ect team learned
that the bui ldi ng structure as currentl y desi gned i s i n a fl o o dplai n and that the fi nished fl o o r o f the fi rst-
fl o o r residential uni ts will need to be raised. Our req uest fo r $1,000,000 i n addi ti o nal Co unty funding wi ll
direc tl y o ffset these unanti cipated co sts .
Describe the property’s history le a ding up to this request. Include when the organization
a cquired/will a cquire the property, any previous requests for County funding, atte mpts to secure
other financing, etc.
The Co unty o f Marin recei ved a Pro j ect Ho mek ey award fro m the State o f C ali fo rni a to purchas e an
o ffice buil ding lo cated o n a 1-acre site at 3301 Kerner Bo ul evard in San Rafael. Pro j ect H o mek ey i s a
State pro gram us ing Federal CA RE S A ct funding to purchase existing pro perties – i ntended in large part
to target ho tels, but al s o al lo ws fo r creati ve re-use o f o ther pro perty types, i ncludi ng o ffice buildings as
pro po sed fo r Kerner. The C o unty clo sed es cro w o n the building in December 2020 and engaged
H o meward Bo und to run a tempo rary ho mel es s shelter at the si te until fall 2022. Kerner Canal , L.P., a
single purpo s e entity co ntro ll ed by E den Ho using, Inc., entered i nto a Purchase and Sal e Agreement
with the C o unty in January 2023.
The pro ject team has secured mul ti ple s o urces o f o ther financi ng. Thes e i nc lude: $25.8M in C ali fo rni a
H o using Accel erato r (C HA) fundi ng i ns tead o f tax credits ; $4.9M in capital and a $2.7M C apitali zed
Operating Subsidy Res erve thro ugh the N o Place Lik e H o me (NPLH ) Pro gram; an $899,250 Co unty l o an
funded by Permanent Lo cal H o us ing Allo catio n (PLH A), Lo cal H o usi ng Trus t Fund (LH TF), and
co rres po nding matching funds fro m the A ffo rdable H o usi ng Fund; an $850,000 City o f San Rafael lo an;
a $1.235M spo ns o r lo an leveraging mul tiple grants (i ncludi ng a $200,000 predevelo pment grant fro m
the C o unty); accrued deferred i nteres t fro m so ft l o ans ; and a $19.6M 20-year o perating subsidy fro m the
C o unty. The pro j ect i s currently inel igi ble fo r pro j ect-bas ed rental subsi dy due to its lo catio n in a H U D-
impac ted cens us tract, whi ch i s why the Co unty’s o ngo ing s uppo rt i s essential to the pro j ect’s vi abil ity.
The pro ject team i s prepari ng to clo se o n i ts co ns tructio n fi nancing, acq ui re the pro perty fro m the
C o unty, and start co ns tructio n in the next co uple o f weeks. In the last week, the pro j ect team l earned
that the bui ldi ng structure as currentl y desi gned i s i n a fl o o dplai n and that the fi nished fl o o r o f the fi rst-
fl o o r residential uni ts will need to be raised to co mply with lo cal flo o dpl ain req uirements fo r res idential
structures . Our req ues t fo r $1,000,000 in additi o nal C o unty funding wil l directly o ffs et these
unanti cipated co sts . The pro j ect team still intends to clo se and start co ns tructio n in the next co uple o f
week s and inco rpo rate much-needed addi ti o nal funding into the pro ject’s capital s tack po st-cl o s ing.
Describe any nea rby amenities, such a s parks, public tra nsportation, grocery store s, health ca re
facilities, schools, childcare, libraries, parks/open space, etc. that residents of the project
a re/would be a ble to use.
The building is in an i deal lo cati o n within walking di s tance to publ ic trans po rtatio n, gro cery s to res,
retail services, and recreati o n. The si te has clo se co nnecti o ns to the Marin Transi t bus trans po rtatio n,
and is wi thi n 0.5 miles o f C ardenas Mark et, Pick l eweed Park , and the Marin H eal th and Well nes s
C ampus / Behavio ral Health Cl ini c. The si te’s pro ximity to the Marin H eal th and Well nes s Campus /
Behavi o ral H ealth C li nic wi ll al lo w res idents ho used under the NPLH pro gram clo se acces s to
suppo rtive s ervi ces .
The Mari n Trans it bus s to p i s a s ho rt 14 min ri de to the San Rafael Transi t Center whi ch pro vides train
and bus access to several desti nati o ns within Marin and So no ma Co unty as well as the larger Bay
4
Area. The statio n is a majo r trans fer po int fo r So no ma‐Mari n A rea Rail Trans it (SMART) and bus ro utes
in the N o rth Bay, with co nnecti o ns to San Francisco , the E ast Bay, as well as airpo rts. In addi ti o n to
SMART, the statio n is also s erved by s everal regional and intercity bus o perato rs which include Go l den
Gate Transi t, Greyho und, Mari n Trans it, So no ma Co unty Transi t, and So no ma Co unty Airpo rt E xpress.
Select the known environmenta l issues of the proposed project site, and/or adja cent properties
if releva nt.
Flo o d zo ne
Notes or clarifying information on environmental issues:
A s no ted abo ve, i t has co me to li ght very recently that the buildi ng i s i n a flo o dpl ain and that the firs t-
fl o o r residential uni ts will need to be raised to co mply with lo cal flo o dpl ain req uirements fo r res idential
structures . Our req ues t fo r $1,000,000 in additi o nal C o unty funding wil l directly o ffs et these
unanti cipated co sts .
Have you begun any sta te or federal environmenta l review procedures for the proposed
project?
N o
What is the anticipated timeline for the environmenta l re view(s)?
Pursuant to H ealth and Safety C o de sectio n 50675.1.1, pro j ects acq ui red thro ugh Pro j ect Ho mek ey are
exempt fro m C E QA. The pro j ect do es no t have any federal fundi ng and therefo re is no t req uired to
co mpl ete N E PA.
Who is the staff member tha t will supervise a nd manage the proposed project?Describe their
pa st experience with project management.
C o ry H i raga, Pro ject Develo per, is leading the pro ject management o f this pro j ect and o vers ees the day‐
to ‐day respo nsibiliti es acro s s al l s tages incl uding enti tl ements, des ign, financi ng, and co nstructio n.
C o ry has experience pro vi ding pro j ect management, planni ng, and co nstructio n management fo r
affo rdabl e ho using new co nstructi o n and acq uisi ti o n/rehab pro j ects . In additio n to 3301 Kerner, he
currentl y manages a 176-uni t family pro ject in H ayward, C A that has clo sed o n i ts co nstructio n
fi nanc ing and is abo ut to break gro und.
Kate Blessi ng-Kawamura, Asso ci ate Directo r o f Real E state Develo pment, is s upervi s ing thi s pro ject
and has managed new co nstructi o n and preservati o n pro j ects at vari o us stages o f develo pment. Since
j o i ning E den, she financed and begun co nstructi o n o f a 62-unit fami ly pro j ect i n San Leandro , CA ;
planned the substantial rehabil itatio n o f a 200-unit, 10-acre pro ject in Santa Ro s a, CA; l ed a ro bust
co mmunity engagement pro ces s and o btai ned entitlements fo r a 50-unit mi xed us e devel o pment in
Palo Alto ; and o btai ned entitlements and clo sed o n the co nstructi o n financi ng fo r a 176-uni t famil y
pro j ect in H ayward, CA.
Sus ie C ri s cimagna, Senio r Directo r o f Real E state Develo pment, is also s upervi s ing thi s pro ject and is
experienced wi th managi ng affo rdabl e ho usi ng pro jects in all stages o f devel o pment. She s upervises
pro j ect management staff, pro vi ding training and guidance o n affo rdabl e ho usi ng devel o pment. She has
wo rk ed o n the develo pment o f several o ther affo rdabl e ho usi ng pro jects with E den Ho us ing as a
pro j ect manager o r s upervi s ing s taff, i ncludi ng a 66‐unit devel o pment in Dubli n, 130‐unit devel o pment in
A lameda, and 62‐uni t pro ject i n San Leandro .
5
Will the project involve hiring a n external property management compa ny?
Yes
Describe the property management compa ny. Include the company name and the numbe r of
a ffordable housing sites a nd units that it currently manage s.
Pro perty management will be pro vided by The Jo hn Stewart Co mpany. In 2022, E den H o usi ng bro ught
o n Jo hn Stewart C o mpany (JSC o ) as the pro perty management agent fo r several o f its upco ming
permanent s uppo rti ve ho using pro jects to acco mmo date a gro wing pipeline. Fo unded in 1978 to
pro vi de high q ual ity pro perty management to affo rdable ho us ing in the Bay A rea, JSCo has devel o ped
into a ful l-s ervi ce ho usi ng management, develo pment, and co nsulting o rganizatio n and i s the l argest
affo rdabl e ho using manager i n Cal ifo rnia. JSCo has extensive permanent suppo rti ve ho usi ng
management experi ence. The Jo hn Stewart Co mpany currentl y manages 100+ PSH pro perties acro ss
the s tate o f C ali fo rni a wi thin thei r po rtfo li o o f 450+ pro perti es co ntaini ng o ver 34,000 res idential uni ts.
If awarded fundi ng, you wi ll need to draft and submit an A ffirmative Marketi ng Pl an for this proj ec t. T he
pl an would de s c ri be how you wil l market the proj ect to di ffere nt groups of people bas ed on protec te d
charac te ri s ti c s s uch as rac e, c olor, nati onal ori gin, re li gion, s ex (incl uding s exual ori e ntation and gender
i dentity), fami li al s tatus , and di s abil ity. Pleas e refer to the A ffirmative Marketi ng tab of the Fe de ral
Grants we bs ite for m ore information.
Describe any prior experience with affirmative mark eting or similar initiatives.
The mark eting and management o f the pro j ect will ensure that o ccupancy s hall be o pen to al l perso ns
regardless o f race, co l o r, ancestry, reli gio n, natio nal o ri gin, sex, marital status, age, phys ical handi cap,
o r o ther arbi trary facto rs . Affi rmative mark eti ng will be used to acti vely pro mo te the go al s o f fair
ho us ing. The units will be mark eted i n a vari ety o f lo cal publicatio ns , o nli ne, and thro ugh maj o r
empl o yers, lo cal li braries, co mmuni ty centers, servi ce o rgani zatio ns and s cho o ls. The mark eting plan
wil l incl ude speci fi c strategi es fo r targeted o utreach to mino ri ty po pulatio ns and di fficult to reach
gro ups. Referrals wil l be accepted fro m Mari n Co o rdi nated E ntry System and Marin H eal th and Human
Servi c es. Al l advertisements wi ll i nclude the pro mi nent us e o f E q ual H o usi ng Oppo rtunity l o go s ,
slo gans and/o r statements o f intent to affi rmatively mark et the uni ts.
A nnuall y, The Jo hn Stewart Co mpany wil l analyze the race, ethnici ty, and o ther catego ries o f current
tenants and the appli cants o n the waiting li s t to meas ure the succes s o f o ur mark eting effo rts befo re
starti ng i ts mark eting. Thereafter, The Jo hn Stewart C o mpany will annually review the affirmative
mark eti ng fo r 3301 Kerner to ens ure that i ts mark eting effo rts are targeting the perso ns least likely to
apply to ensure a bal ance o f the appl icants o n the wai ting list and the res idents . The C o mpl iance
Manager will review the demo graphic data fo r the ho us ing area to determine if the ho us ing area must
be extended to ensure that The Jo hn Stewart Co mpany i s co nducting o utreach to under-represented
po pulatio ns befo re do ing any future marketi ng.
A ll projects funded by HU D program s m us t A ffi rmativel y Further Fai r Hous i ng. T his is de fi ne d as
combating hous ing dis c rim ination and taking meani ngful actions to overcome patte rns of s egregati on
and foster i nc lus i ve c om muni ti es free from barriers that restrict acces s to hous ing opportunities bas ed
on protecte d charac teristi c s : race, c olor, nati onal ori gin, reli gion, s ex (i nc ludi ng s exual orientati on and
gender i dentity), fami li al s tatus , and di s abil ity.
Describe any pa st community enga gement activities for this project, and future pla ns for
community engage ment.
In July 2021 a mural was unvei led by the Canal Arts Initiative o n the 3301 Kerner buil ding as a welco me
sign to the Canal neighbo rho o d o f San Rafael . E den i ntends to pres erve the mural and engage wi th the
C anal Art Ini ti ati ve o n the po ssibility o f co mmissio ning ano ther mural o n the bui ldi ng. It i s o ur ho pe
that the Kerner bui ldi ng no t o nl y pro vides permanent suppo rti ve ho usi ng but al s o suppo rts the
co mmunity i n which the buil ding is lo cated.
E den also i ntends to ho ld multipl e co mmunity meeti ngs with neighbo rs, co mmuni ty o rganizatio ns, and
6
the business co mmuni ty duri ng co nstructi o n, lease-up, and o perati o n o f the pro perty. We have already
engaged wi th co mmuni ty o rgani zati o ns such as Resi li ent Sho re and the Canal Al li ance. E den i s
inves ted in this pro j ect and i n the C anal neighbo rho o d o f San Rafael and i ts many s takeho lders .
Demograp hics and Unit Info rmatio n
In the tabl e bel o w, enter the existing o r anti cipated number o f uni ts bas ed o n inco me level and bedro o m
co unt. Refer to the C urrent Mari n Co unty Inco me Limi ts to determine inco me l evel.
Anticipa ted Unit Count by Bedrooms and I ncome Level
Extremely
Low Very Low Low Moderate Market Rate TOTAL
UNITS
Studio 32 32
1 bed 8 8
2 bed 1 1
3 bed 0
4 bed 0
Other 0
TOTAL UNITS 40 0 0 0 1 41
Notes or clarifying information on the unit count:
Per near-fi nal draft PLH A /A H F lo an do cs as o f the date o f thi s applicatio n, the Co unty intends to
restri ct 40 uni ts at E xtremely Lo w Inco me. The two -bedro o m manager's unit wil l be unres tri c ted.
In the tabl e bel o w, enter the demo graphics o f the peo pl e who l ive (o r wil l li ve) in the pro po s ed ho usi ng
pro j ect. If unk no wn, use the demo graphics o f ho useho l ds within s imil ar existing Mari n co mplexes as
the pro po sed pro j ect, within the o rganizatio n’s purvi ew. Speci fy the number o f H ispanic/Lati no
resi dents in its stand-al o ne co lumn. The “To tal” co l umn must include the number o f H i s panic/Latino
resi dents as part o f the sum.
Are these numbers specific to the proposed project, or to a simila r existing Marin complex?
Simil ar existing Mari n co mplex
Demogra phic Information
Total Number of Persons Persons Identifying as
Hispanic/Latino
White 77
Black/African American 8
Asian 15
American Indian/Alaskan Native
Native Hawaiian/Other Pacific
Islander
7
Total Number of Persons Persons Identifying as
Hispanic/Latino
American Indian/Alaskan Native &
White
Asian & White
Black/African American & White
American Indian/Alaskan Native &
Black.African American
Other Multi-Racial
Other/Not Disclosed 8 8
TOTAL (Unduplicated)108 8
Fill in a number fo r each o f the fiel ds bel o w. Fo r new co nstructi o n, o r if yo u are uns ure, pl eas e put 0.
Fa milies
17
Fema le-headed households
61
Households that include pe rson(s) with a disability
13
Notes or clarifying information on demographics:
This is aggregated demo graphic data fro m two E den pro perti es in Mari n Co unty fro m 2022.
The Race/E thnici ty fi elds abo ve do no t directly al ign wi th the data fiel ds fro m o ur reco rds. See belo w.
Race/E thnicity
Whi te 77
Lati nx 8
Black 8
A PI 15
To tal 108
Project Planning
Select the curre nt phase of the proposed project.
Buil ding
D es cri be the pro j ec t ti mel ine and speci fy a real o r estimated co mpletio n date fo r each mil es to ne
belo w. Add/expl ain any additio nal mi lesto nes as needed.
Fo r ac q uisitio n p ro jec ts:
Appraisal
Mo nday, April 4, 2022
8
Written Offer
Mo nday, January 1, 1900
Purcha se Option Agreement Signed
Tuesday, January 10, 2023
Inspections
Mo nday, January 1, 1900
Negotiations
Mo nday, January 1, 1900
Closing
Thursday, March 30, 2023
Explain any additional milestones for Acquisition Projects below:
The pro ject team i s prepari ng to clo se o n i ts co ns tructio n fi nancing, acq ui re the pro perty fro m the
C o unty, and start co ns tructio n in the next co uple o f weeks.
Fo r fi elds that are no t appli cable to the pro ject, I us ed this date: January 1, 1990.
Fo r new construc tion and/or rehab ilitation projec ts:
Define scope of work/finish design
Fri day, December 9, 2022
Complete planning a nd e nvironmental review
Mo nday, January 1, 1900
Relea se bid pa ck a ge
Sunday, January 15, 2023
Select contractor
Tuesday, February 1, 2022
Finalize contra ct
Fri day, March 24, 2023
Obta in building pe rmits
Mo nday, April 3, 2023
Start construction
Mo nday, April 3, 2023
Complete construction
Sunday, September 1, 2024
Explain any additional milestones for New and/or Rehabilitation Projects below:
The pro ject team i s prepari ng to clo se o n i ts co ns tructio n fi nancing, acq ui re the pro perty fro m the
C o unty, and start co ns tructio n in the next co uple o f weeks. The building permi t wi ll be issued
immedi atel y after clo sing.
Fo r fi elds that are no t appli cable to the pro ject, I us ed this date: January 1, 1990.
9
Will you be seek ing Project Based Section 8 Vouchers for this project?
N o
Pleas e be aware that i f Proj ec t Bas ed S e c ti on 8 Vouc hers (PBV) are com mi tted to the proj ec t, the
envi ronmental revi e w proc es s and s ubs idy layering mus t be c ompl eted before the ac quis i ti on i s
compl ete or c ons truc ti on comm e nc e s . A c ti ons taken prior to PBV bei ng comm itted are not s ubject to
thi s re quire ment.
Describe the type of site control that your orga nization has for the proposed property. If this
request includes funds for acquisition, summa rize the acquisition terms, price , contingencies,
a nd conditions.
Kerner Canal, L.P., a single purpo se enti ty co ntro l led by E den H o using, Inc., entered into a Purchas e and
Sale A greement with the Co unty in January 2023. The pro j ect antici pates clo si ng o n its co ns tructio n
fi nanc ing and acq ui ri ng the pro perty fro m the Co unty i n the co mi ng weeks.
Expa nding on the Scope of Work, please describe the rehabilita tion that is proposed for the
property a nd how it will a ddress specific conditions (i.e., replace ment needs, deferred
maintenance, existing building violations, required seismic upgrades, building or hea lth code
problems). Ple a se describe a ny other existing rehabilitation needs tha t are not included in the
project scope and expla in the ir exclusion.
The redes ign incl udes util ity upgrades and s ite i mpro vements including accessi ble parking and paths o f
travel and lo cali zed grading and drainage as deemed necessary. The patio co urtyard wi ll be redevel o ped
and a po rtio n o f the l ands cape will be replaced o r new planting designed and co o rdinated with exi s ti ng
irri gati o n. A po rtio n o f the to p level o f the park ing garage wi ll be des igned as an o utdo o r o pen space
and gardening area.
The redes ign will also include structural upgrades to the bui ldi ng and new co nstructi o n to the extent
req ui red by the City o f San Rafael. The mechani c al, electrical , and plumbing (ME P) systems wi ll be
redesi gned fo r the new resi dential buil ding pro gram to resi denti al type V - 1hr co des and sprink ler and
E mergency Systems Specificati o ns . The ME P s ystem req uired upgrades wil l be i ntegrated i nto the
exi s ting bui ldi ng systems.
A s no ted abo ve, i t has co me to li ght very recently that the buildi ng i s i n a flo o dpl ain and that the firs t-
fl o o r residential uni ts will need to be raised to co mply with lo cal flo o dpl ain req uirements fo r res idential
structures . Our req ues t fo r $1,000,000 in additi o nal C o unty funding wil l directly o ffs et these
unanti cipated co sts .
Describe the accessibility of the building. Do you pla n to make accessibility improvements?
The Pro ject wil l co mply with the Tier 2 C ali fo rni a Ho us ing A ccelerato r Pro gram Guidelines, mo st
recently amended A ugus t 31, 2022. U nder thes e Ho using A ccelerato r Guidel ines, adaptive reuse
pro j ects are co nsidered rehabi li tatio n pro jects . As no ted abo ve, si te impro vements i nclude
impro vements to accessible park i ng and paths o f travel.
How will the re ha bilitation be staged to minimize risk and inconvenience to the re sidents? If
ce rtain systems or pa rts of residents’ units will be tempora rily inopera ble or unusa ble (e.g.,
k itchen or bathroom) during construction, wha t is the estimated dura tion of such interruptions?
What mitigations will you provide?
No t applicable. There are no current res idents o f the buil ding.
Describe in deta il any tempora ry relocation of existing tenants at the site due to proposed rehab
a ctivities. Explain why relocation is needed and provide the estimated duration a nd number of
impacted tenants. If known, ide ntify which laws (loca l, state, federa l) must be followe d in
ca rrying out the relocation.
10
N o t applicable. There are no exi s ti ng tenants.
Financing Plan
What is the sta tus of all proposed project funding sources as of the da te of this application?
C ali fo rnia Ho using A ccelerato r (CH A) - $25,824,201 - Co mmitted
N PLH - $4,981,492 - Co mmitted
Marin C o unty (PLH A + LH TF+ A H F) - E xi s ti ng - $899,250 - Co mmitted
C ity o f San Rafael (A H TF) - $850,000 - Co mmitted
Spo ns o r Lo an (HPN + MC F + Co unty) - $1,235,000 - C o mmi tted
A ccrued Interest o n Co mmitted So ft Lo ans - $78,325 - Co mmitted
Marin C o unty (PLH A + A H F) - Req uested - $1,000,000 - A ppli ed Fo r
A ccrued Interested o n Mari n C o unty (PLH A + AH F) - Req uested - $37,918 - Applied Fo r
What is the timing and lik elihood for obtaining commitments of anticipated funding source s?
A ll o f the so urces abo ve have been co mmi tted to the pro j ect, with the exceptio n o f the $1,000,000 in
additio nal Co unty funding req ues ted and asso ci ated accrued interes t.
In the event that a ny funding sources are not obta ined or a re committed at lower levels than
requested, what alterna tives will be pursued?
The pro ject i s co nsidering appro achi ng o ther funders, such as the Mari n Co mmunity Fo undatio n, fo r
additio nal funding.
For each item in your project budget, to be a ttached to this application, please expla in how the
budgeted amount was derived, whether costs are estimated or bid, and any other rele va nt
information that justifies the budgeted expense (e.g., cost per square foot, percentage of other
costs, estimated number of work hours).
A cq uisi ti o n C o s ts: Based o ff o f actual anti cipated cl o s ing co sts fo r o ur upco ming clo si ng.
H ard Co sts : Based o ff o f hard bids fro m o ur co ntracto r and s ubco ntracto rs.
So ft C o s ts: Based o ff o f actual predevelo pment co sts already incurred, invo ices fo r impact and permit
fees, and anticipated co sts fo r o ur upco ming clo sing.
C o s ts o f i s s uance/financi ng fees: Based o ff o f actual and es ti mated fees fo r o ur upco mi ng cl o s ing.
Is your organiza tion rece iving any other Marin County funding for this project?
Yes
Please describe. Include a brief overview of the goa ls a nd a ccomplishments achie ved through
this funding.
The pro ject has $899,250 in PLH A, LHTF, and AHF s o ft lo an debt fro m the C o unty o f Mari n co mmi tted.
In addi tio n, the Co unty o f Marin pro vi ded a $200,000 predevel o pment grant to E den H o usi ng fo r this
pro j ect, which is being structured as a l arger spo nso r lo an fo r the pro j ect. Thes e co mmitted funds have
reduced the accrued predevel o pment i nterest expense fo r the pro j ect and pro vided indi s pens able s o ft
fi nanc ing to get us to co ns tructio n clo si ng.
Does your organiza tion ha ve unspent funds that were previously awa rded by the County (for
a ny project)?
Yes
What is your timeline for expending the fund ba lance?
11
The funds o utli ned abo ve wi ll be expended at o ur co nstructi o n cl o s ing in the co ming week s .
Attac hments
Please closely re view the Notice of Funding Availability (NOFA) for instructions on which
documents you must a ttach. The County requires specific atta chme nts for each funding type
(HTF/PLHA, HOME-ARP, CDBG Housing). Please labe l your attachments in this manner: “2023-
24 [Document Na me] for [Organization Name]- [Project Na me].”
PDF 2023-2024 Board f or Eden - 3….pdf PDF 2023-2024 Budget f or Eden - ….pdf
PDF 2023-2024 Const S &U f or Ede….pdf PDF 2023-2024 FS (19-20) f or Ede….pdf
PDF 2023-2024 FS (20-21) f or Ede….pdf PDF 2023-2024 IRS Exempt f or Ed….pdf
PDF 2023-2024 Op Budget and Ca….pdf PDF 2023-2024 Perm S &U for Ede….pdf
XLS
X 2023-2024 Project S chedule ….xlsx PDF 2023-2024 S ite Control f or Ed….pdf
Cer tification
Please review yo ur respo nses abo ve fo r accuracy.
Name of Person Completing this Application
Kate Blessi ng-Kawamura
Title of Pe rson Completing this Application
A s s o ciate D irecto r o f Real E state Develo pment
By checking this box,
I hereby certify that the i nfo rmati o n i n this appli cati o n is true and accurate to the bes t o f my
k no wl edge.
12
INCUMBENCY CERTIFICATE
Eden Housing, Inc.
The persons named below are the members of the Board of Directors of the corporation
named above and/or are the Officers duly elected or appointed to the offices set forth opposite
their names.
NAME OFFICE CURRENT TWO-YEAR TERM (OFFICERS)
CURRENT TERM (DIRECTORS)
Jim Kennedy Chair
Director
January 2022- January 2024*
January 2021 - January 2025*
Rudy Johnson
Vice Chair
Director
January 2022 - January 2024*
January 2022 - January 2026*
Amy Neches Treasurer
Director
January 2022 – January 2024*
January 2020 – January 2024*
Cheryl O’Connor Secretary
Director
January 2022 – January 2024*
January 2023 – January 2026
Calvin Whitaker
Assistant Secretary
Director
January 2023 – January 2024
January 2020 - January 2024*
Annette Billingsley Director January 2020 - January 2024*
Nicholas Randall Director January 2020 – January 2024 *
John Gaffney
Director January 2020 - January 2024*
Doug Kuerschner
Director January 2022 - January 2024*
Grace Li
Director January 2023 - January 2026
Joe Postigo
Director January 2022 - January 2024*
Sean Callum Director January 2023 – January 2026
Sheila Burks Director January 2020 – January 2024*
Candice Gonzalez Director January 2022 –January 2026*
David Garcia Director January 2022 – January 2026*
Ali Solis Director January 2023 –January 2026
Kara Douglas Director January 2023– January 2026
Linda Mandolini, President (non-voting), serves at the will of the Board and is authorized to sign
on behalf of the Corporation.
*The bylaws were amended in 2022 to include a new term limit structure, shifting from three 4-
year terms to four 3-year terms for directors, and one 3-year term for officers. Director terms
marked with an asterisk were legacy terms from the prior structure and will be transitioned to
the new structure upon current term expiration.
As of January 27, 2023
Eden Housing
Base Scenario
Units Managed / Added Units Added Units Added
9,365 9,560 9,682
EDEN HOUSING 195 122 161
2023 CORPORATE BUDGET
CASH BASIS 2023 Budget 2024 Projections 2025 Projections
Developer Fee 17,679,187 12,594,361 15,077,873
Service Program Fees 6,410,048 6,602,349 6,800,420
Property Management & Services Fee 12,120,196 12,547,033 13,030,491
Asset Management Fees 1,943,719 1,999,564 1,999,564
Affiliate Loans‐Notes Receivables 4,840,759 4,616,969 4,473,934
Distributable Cash From Properties 2,443,739 4,659,247 4,659,247
Portfolio Distributions 9,228,217 11,275,780 11,132,745
Grants & Contributions 1,466,490 1,226,490 1,226,490
Dividend & Interest Income 934,538 934,000 934,000
Investment Gains (Losses)(915,000) ‐ ‐
Other Income 1,486,028 2,160,490 2,160,490
Total Cash Revenue 46,923,676$ 45,180,013$ 48,202,019$
Payroll Expense 29,180,078 30,960,860 32,783,544
68%68%69%
Operating Expenses 7,172,373 7,453,256 7,685,853
Service Program Expenses 6,466,342 6,602,349 6,800,420
Service Program Expenses
Office Improvements 9,500 9,975 10,474
Debt Service 137,912 164,831 130,625
MGP Expenses 208,003 208,003 208,003
Other Expenses 355,414 382,808 349,101
Total Cash Expenses 43,174,208 45,399,273 47,618,918
Net Cash Income, Recurring 3,749,468$ (219,260)$ 583,101$
SOURCES OF FUNDS - PERMANENT
AMOUNT
TOTAL
INTEREST
COST
OID
INTEREST
RATE
AMORT
(Yr)COMMENTS
Total Permanent Debt:-
NPLH 4,981,492 3.000% 1.903% 55.0 Per Unit:121,500
City of San Rafael HTF Loan 850,000 3.000% 1.788% 55.0 Per Unit:20,732
Accrued Deferred Interest - City of San R 22,309
Sponsor Loan (HPN/MCF/County)1,235,000 3.000% 1.788% 55.0 Per Unit:30,122
Accrued Deferred Interest - Sponsor Loan 32,414
Marin County Loan (PLHA/AHF/LHTF) 899,250 3.000% 1.788% 55.0 Per Unit:21,933
Accrued Deferred Interest - Marin County 23,602
Addl Marin Co Funds (requested)1,000,000 3.000% 1.788% 55.0 Per Unit:24,390
Accrued Deferred Interest - Addl Marin Co 37,918
HCD - CA Housing Accelerator Pgm Loan 25,824,201 0.000% 0.000% 20.0 Per Unit:629,859
TOTAL SOURCES 34,906,185
Surplus/(Shortfall)(0)
Investor:
PERMANENT LOAN INTEREST RATE TRANCHE ATRANCHE B INVESTOR EQUITY STACK OTHER ASSUMPTIONS
Base Rate 3.800% 4.830%
Cushion 1.000% 0.000% LIHTC Equity (Federal+Sta 0 Current AFR:2.14%
MIP 0.000% 0.000% Historic Tax Credit 0 AFR Month:3/1/22
GNMA/Servicing 0.000% 0.000% Investment Tax Credit (Sol 0 AFR Cushion:0.75%
Issuer 0.050% 0.050%4,000 Issuer min/y Subtotal LP Equity 0 Total U/W AFR:2.89%
Trustee 0.000% 0.000%0 per annum
Rating 0.000% 0.000%0 per annum CA Certificated Credit Sale 0
Remarketing 0.000% 0.000%0 per annum Total Investor Equity 0
Rebate Analyst 0.000% 0.000%0 per annum
Total 4.850% 4.880%
SOURCES OF FUNDS - CONSTRUCTION
AMOUNT
INTEREST
RATE
TERM
(Mos.)COMMENTS
##Conventional Construction Loan 28,832,404 8.226% 25
City of San Rafael HTF Loan 850,000 3.000% 25
Accrued Deferred Interest - City of San R 22,309
Sponsor Loan (HPN/MCF/County)1,235,000 3.000% 25
Accrued Deferred Interest - Sponsor Loan 32,414
Marin County Loan (PLHA/AHF/LHTF) 899,250 3.000% 25
Accrued Deferred Interest - Marin County 23,602
Addl Marin Co Funds (requested)1,000,000 3.000% 25
Accrued Deferred Interest - Addl Marin Co 37,918
Donated Land 0
Costs Deferred Until Conversion 1,973,290 See page 2 - right column
TOTAL SOURCES 34,906,185 Syndication Costs 89,670
Surplus/(Shortfall)0 Net Equity for TCAC (89,670)
Sources Less Deferred To Conversion:32,932,896 Less Costs Deferred to Conv.34,906,185
CONSTRUCTION LOAN INTEREST RATE CONSTRUCTION LOAN VALUATION TAX-EXEMPT BOND DATA
Index Type:
1 mo term
SOFR Restricted NOI 530,575 50% Test (see Page 7):90.53%
Current Index:4.78%OAR 5.00%Issuer Inducement:TBD
Spread:2.20%FMV per NOI 10,611,503 CDLAC Allocation:TBD
Base Interest Rate (not including cushion 6.98%Agg. Credit Value @ 0.00 0 Percent of CDLAC Allocation 0.00%
Cushion - Total 1.25%Perm-Only Soft Debt 30,805,693 Const-only portion:28,832,404
Interest Rate (All-In)8.23%Total Value 41,417,196
LTV:80.00% CDLAC Per-Unit Limit 21,636,500
*Cushion includes 1% Bank Underwriting
Cushion and 0.25% cushion to close Max. Const. Loan Amount 33,133,757 CDLAC 55% Limit 17,516,742
Commitment Amount TBD
Uses of Funds
Res Cost:100.00%COST ALLOCATIONS LIHTC ELIGIBLE BASIS OTHER BASIS & COST ALLOCATIONS
Res Sq Foot:100.00%Assuming 266 Election?Yes
Deferred to Historic
Depreciable Completion Land/Basis Rehab ITC Tax
Total Total Non- Non- Constr./or for Tax Credit Credit Basis
TOTAL Per Unit Residential Residential Depreciable Residential Non-Resid.Expensed Amortized Rehab Acquisition Perm Conv.50% Test Basis (Solar PV)
ACQUISITION COSTS
Total Purchase Price - Real Estate:
0
Title/Recording/Escrow - Acquisition 30,000 732 30,000 0 30,000 0 0 0 0 30,000
Legal - Acquisition 20,000 488 20,000 0 20,000 0 0 0 0 20,000
Other Acquisition Costs/Transfer Tax 22,010 537 22,010 0 22,010 0 0 0 0 0 22,010
HARD COSTS
Total Construction Contract:
21,754,090
NEW CONSTRUCTION
Hard Costs-Unit Construction 18,766,975 457,731 18,766,975 0 18,766,975 0 0 18,766,975 0 18,766,975 18,766,975
GC - General Conditions 1,223,941 29,852 1,223,941 0 1,223,941 0 1,223,941 0 1,223,941 1,223,941
GC - Overhead & Profit 968,047 23,611 968,047 0 968,047 0 968,047 0 968,047 968,047
GC - Insurance 406,580 9,917 406,580 0 406,580 0 406,580 0 406,580 406,580
GC - Bond Premium 124,413 3,034 124,413 0 124,413 0 124,413 0 124,413 124,413
Contingency - Escalation (GC)264,134 6,442 264,134 0 264,134 0 264,134 0 264,134 264,134
Contingency - Owner's Construction 2,175,409 53,059 2,175,409 0 2,175,409 0 2,175,409 0 2,175,409 2,175,409
REHAB
SOFT COSTS
Architecture - Design 931,481 22,719 931,481 0 931,481 0 931,481 0 931,481 931,481 0
Design/Engineering 74,000 1,805 74,000 0 74,000 0 74,000 0 74,000 74,000 0
Phase I/II/Toxics Report 44,000 1,073 44,000 0 44,000 0 44,000 0 44,000 44,000
Special Inspections/Testing 85,000 2,073 85,000 0 85,000 0 85,000 0 85,000 85,000
Prevailing Wage Monitor 72,000 1,756 72,000 0 72,000 0 72,000 0 72,000 72,000 0
Owner's Rep / Construction Supervision 126,000 3,073 126,000 0 126,000 0 126,000 0 126,000 126,000 0
Consultant: Asbestos Monitoring 4,000 98 4,000 0 4,000 0 4,000 0 4,000 4,000
Local Development Impact Fees 818,111 19,954 818,111 0 818,111 0 818,111 0 818,111 818,111
Local Permits/Fees 102,124 2,491 102,124 0 102,124 0 102,124 0 102,124 102,124
Real Estate Taxes During Const 16,174 394 16,174 0 16,174 0 0 16,174 0 0 16,174 16,174
Insurance During Const 800,000 19,512 800,000 0 800,000 0 0 800,000 0 0 800,000 800,000 0
Appraisal 5,500 134 5,500 0 5,500 0 0 5,500 0 5,500 5,500
Market/Rent Comp Study 11,000 268 11,000 0 11,000 0 0 0 0
Soft Cost - Soft Lenders Fees & Expenses 10,000 244 10,000 0 10,000 0 10,000 0 10,000 10,000
Soft Cost Contingency 361,881 8,826 361,881 0 361,881 0 361,881 0 361,881 361,881
Predev. Loan Interest/Fees 2,000 49 2,000 0 0 2,000 0 0 0 0 0
Construction Loan Interest 3,429,352 83,643 3,429,352 0 1,848,095 0 1,581,257 1,848,095 0 0 1,848,095 1,848,095 0
Accrued Interest - City of San Rafael HTF Loan 22,309 544 22,309 0 11,982 0 10,327 11,982 0 11,982 11,982
Accrued Interest - Sponsor Loan (HPN/MCF/Co 32,414 791 32,414 0 17,409 0 15,004 17,409 0 17,409 17,409
Accrued Interest - Marin County Loan (PLHA/A 23,602 576 23,602 0 12,676 0 10,925 12,676 0 12,676 12,676
Accrued Interest - Addl Marin Co Funds (reque 37,918 925 37,918 0 25,630 0 12,288 25,630 0 25,630 25,630
Lender Fees - HCD - CA Housing Accelerator P 40,000 976 40,000 0 40,000 0 0 0
Title/Recording/Escrow - Construction 59,996 1,463 59,996 0 59,996 0 59,996 0 0 59,996 59,996
Title/Recording/Escrow - Permanent 15,000 366 15,000 0 15,000 15,000
Legal (Owner): Construction Closing 50,000 1,220 50,000 0 50,000 0 50,000 0 0 50,000 50,000
Permanent Closing 20,000 488 20,000 0 20,000 0 20,000
Organization of Ptnshp 6,670 163 6,670 0 6,670 0
Syndication Consulting/Consulting 63,000 1,537 63,000 0 63,000 0 0 2,500
Audit/Cost Certification 20,000 488 20,000 0 20,000 0
Marketing 64,755 1,579 64,755 0 64,755 0
Furnishings Not in Contract 220,000 5,366 220,000 0 220,000 0 220,000 0
Capitalized Replacement Reserve 41,000 1,000 41,000 0 41,000 41,000
Capitalized Operating Reserve (6 mos.)497,531 12,135 497,531 0 497,531 497,531
Capitalized NPLH COSR Transition Reserve 133,825 3,264 133,825 0 133,825 133,825
Marin Co Subsidy - HCD TR Fee 146,623 3,576 146,623 0 146,623 146,623
Developer Fee 2,200,000 53,659 2,200,000 0 2,200,000 0 2,200,000 0 1,100,000 2,200,000 2,200,000 -
COSTS OF ISSUANCE/FINANCING FEES
Construction Lender Origination Fee 187,411 4,571 187,411 0 100,997 0 86,414 100,997 0 100,997 100,997
Construction Lender Expenses 60,000 1,463 60,000 0 32,334 0 27,666 32,334 0 32,334 32,334
Construction Lender Counsel 70,000 1,707 70,000 0 37,723 0 32,277 37,723 0 37,723 37,723
Subtotal - Financing/Costs of Issuance 317,411 7,742 317,411 0 0 171,054 0 0 146,356 171,054 0 0 171,054 171,054 0
TOTAL DEVELOPMENT COSTS 34,906,185 851,370 34,906,185 0 953,990 31,996,613 0 1,716,557 239,026 31,996,613 0 1,973,290 31,848,623 31,776,613 0
TDC Per Unit 851,370 100.00%
TDC Net of accrued interest:34,749,943
TDC TCAC 34,816,515 34,816,515
Kerner Street
017492
I RS Department the Treasury
IlIh,rllal Revenue Snvl<'t:
P.O. Box 2508
Cincinnati OH 45201
EDEN HOUSING INC
22645 GRAND ST
HAYWARD CA 94541-5031
Employer Identification Number:
In reply refer to: 0248323016
May 14, 2009 LTR 4168C EO
23-1716750 000000 00 000
23-1716750
00018272
BODC: TE
Person to Contact: Yvette Davis
Toll Free Telephone Number: 1-877-829-5500
Dear Taxpayer:
This is in response to your request of May 05, 2009, regarding your
tax-exempt status.
Our records indicate that a determination letter was issued in
August 1986, that recognized you as exempt from Federal income tax,
and discloses that you are currently exempt under section 501(c)(3)
of the Internal Revenue Code.
Our records also indicate yoU are not a private foundation within the
meaning of section 509(a) of the Code because you are described in
section(s) 509(a)(I) and 170(b)(I)(A)(vi).
Donors may deduct contributions to you as provided in section 170 of
the Code. Bequests, legacies, devises, transfers, or gifts to you or
for your use are deductible for Federal estate and gift tax purposes
if they meet the applicable provisions of sections 2055, 2106, and
2522 of the Code.
If you have any questions, please call us at the telephone number
shown in the heading of this letter.
Sincerely yours,
Michele M. Sullivan, Oper. Mgr.
Accounts Management Operations I
017491
I RS Department ,,1' the
Internal Revellne Serl'h'e
P.O. Box 2508
Cincinnati OH 45201
EDEN HOUSING MANAGEMENT INC
22645 GRAND ST
HAYWARD CA 94541-5031
Employer Identification Number:
In reply refer to: 0248323016
May 14, 2009 LTR 4168C EO
94-2946400 000000 00 000
94-2946400
00018275
BODC: TE
Person to Contact: Yvette Davis
Toll Free Telephone Number: 1-877-829-5500
Dear Taxpayer:
This is in response to your request of May 05, 2009, regarding your
tax-exempt status.
Our records indicate that a determination letter was issued in
November 1986. that recognized you as exempt from Federal income tax.
and discloses that you are currently exempt under section 501(c)(3)
of the Internal Revenue Code.
Our records also indicate you are not a private foundation within the
meaning of section 509(a) of the Code because you are described in
section 509(a)(3).
Donors may deduct contributions to you as provided in section 170 of
the Code. Bequests. legacies, devises. transfers, or gifts to you or
for your use are deductible for Federal estate and gift tax purposes
if they meet the applicable provisions of sections 2055, 2106, and
2522 of the Code.
If you have any questions, please call us at the telephone number
shown in the heading of this letter.
Sincerely yours,
Michele M. Sullivan, Oper. Mgr.
Accounts Management Operations I
~~ I RS Departmeut of the tdA"lII. Illterl1al Rev('l1u" Service
017490
P.O. Box 2508
Cincinnati OH 45201
EDEN HOUSING RESIDENT SERVICES INC
% LORI GANZ
22645 GRAND ST
HAYWARD CA 94541-5031
Employer Identification Number:
In reply refer to: 0248323016
May 14, 2009 LTR 4168C EO
94-3315887 000000 00 000
94-3315887
00018276
BODC: TE
Person to Contact: Yvette Davis
Toll Free Telephone Number: 1-877-829-5500
Dear Taxpayer:
This is in response to your request of May OS, 2009, regarding your
tax-exempt status.
Our records indicate that a determination letter was issued in
March 2000, that recognized you as exempt from Federal income tax,
and discloses that yoU are currently exempt under section 501Cc)(3)
of the Internal Revenue Code.
Our records also indicate you are not a private foundation within the
meaning of section 509(a) of the Code because you are described in
section 509(a)(3).
Donors may deduct contributions to you as provided in section 170 of
the Code. Bequests, legacies, devises, transfers, or gifts to you or
for your use are deductible for Federal estate and gift tax purposes
if they meet the applicable provisions of sections 2055, 2106, and
2522 of the Code.
If you have any questions. please call us at the telephone number
shown in the heading of this letter.
Sincerely yours,
Michele M. Sullivan. Oper. Mgr.
Accounts Management Operations I
Ba se Year Income & Expense
INCO ME
Scheduled Gross Income - Residential 189,600
Total Gross Rental Subsidy Income - Marin County Carmel Units 156,000
Total Operating Subsidy Income - NPLH COSR 133,825
Vacancy Loss - Residential 10.0% (18,960)
Vacancy Loss - Marin County Carmel Units 10.0% (15,600)
EFFECTIVE GROSS INCOME 444,865
EXPENSES - RESIDENTIAL
Administrative
Advertising 500
Legal 5,000
Accounting/Audit 15,491
Security 245,400
Other: Misc. Admin 25,540
Total Administrative 291,931
Management Fee 36,900
Utilities
Electricity 16,500
Water/Sewer 51,700
Total Utilities 68,200
Payroll/Payroll Taxes
On-Site Manager/Office Admin 126,220
Maintenance Payroll 53,500
Payroll Taxes/Benefits 61,441
Total Payroll/Payroll Taxes 241,161
Insurance 97,024
Maintenance
Painting 1,700
Repairs 17,100
Trash Removal 19,000
Exterminating 4,500
Grounds 9,000
Elevator 8,000
janitorial contract/supplies/uniforms 33,790
Total Maintenance 93,090
Other
Misc. Tax/License 2,850
Total Other 2,850
Resident Services
Tenant Services 121,484
Total Resident Services 121,484
Replacement Reserve 20,500
Real Estate Taxes 1,000
TOTAL EXPENSES - RESIDENTIAL 974,140
Per Unit Per Annum (incl. Reserves)23,760
Per Unit Per Annum (w/o taxes/res/svc))20,272
TCAC Minimum (w/o taxes/res/svc)5,500
TOTAL EXPENSES - COMMERCIAL 0
NET AVAILABLE INCOME (529,275)
Less: Mandatory Annual HCD Payment (Grossed Up for DSCR Factor)1.00 (20,922)
Operating Subsidy Income - Marin Co OpEx Subsidy 530,575
ADJUSTED NET AVAILABLE INCOME: TOTAL (19,622)
ADJUSTED NET AVAILABLE INCOME: NET OF OP SUBSIDY (824,422)
Debt Service Coverage Ratio 1.00
AVAILABLE FOR DEBT SERVICE (NET OF OP SUBSIDY)(824,422)
AVAILABLE FOR DEBT SERVICE (OP SUBSIDY OVERHANG)804,800
NET AVAILABLE INCOME AFTER SENIOR DEBT SERVICE (19,622)
Kerner Street
15-Year Cash Flow Version:Closing
Assumptions
Rent Increase: Residential Tenant Rents 2.00% Rent Increase - Section 8 2.00%Perm Loan - % Debt Svc Yr 0 0.0%
Rent Increase: Commercial Rents 2.00% Rent Increase - Marin County 2.00%Perm Loan - % Debt Svc Yr 0.0%
Expenses Increase:3.00% Rent Increase - Test C 2.00%Perm Loan - % Debt Svc Yr 2 66.7%
Reserve Increase:0.00% Rent Increase - Test D 2.00%Perm Loan - % Debt Svc Yr 3 100.0%
Perm Loan - % Debt Svc Yr 4 100.0%
Credit Period Year:0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053
Aggregrate Annual Rent Increase 318.95%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%
GROSS POTENTIAL INCOME - RESIDENTIAL 0 45,473 190,509 194,320 198,206 202,170 206,214 210,338 214,545 218,835 223,212 227,676 232,230 236,875 241,612 246,444 251,373 256,401 261,529 266,759 272,094 277,536 283,087 288,749 294,524 300,414 306,423 312,551 318,802 325,178 331,682
Draw from NPLH COSR 0 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 0 0 0 0 0 0 0 0 0 0
Incremental Income: Marin County Carmel Unit 3,617,633 (thru Y20)0 37,415 156,748 159,883 163,081 166,343 169,669 173,063 176,524 180,055 183,656 187,329 191,075 194,897 198,795 202,771 206,826 210,963 215,182 219,485 223,875 228,353 232,920 237,578 242,330 247,176 252,120 257,162 262,305 267,552 272,903
Vacancy Loss - Residential 10.0%0 (4,547) (19,051) (19,432) (19,821) (20,217) (20,621) (21,034) (21,454) (21,884) (22,321) (22,768) (23,223) (23,687) (24,161) (24,644) (25,137) (25,640) (26,153) (26,676) (27,209) (27,754) (28,309) (28,875) (29,452) (30,041) (30,642) (31,255) (31,880) (32,518)(33,168)
Vacancy Loss - Marin County Carmel Units 10.0%0 (3,741) (15,675) (15,988) (16,308) (16,634) (16,967) (17,306) (17,652) (18,005) (18,366) (18,733) (19,108) (19,490) (19,879) (20,277) (20,683) (21,096) (21,518) (21,949) (22,388) (22,835) (23,292) (23,758) (24,233) (24,718) (25,212) (25,716) (26,231) (26,755)(27,290)
GROSS EFFECTIVE INCOME 0 208,424 446,357 452,608 458,984 465,487 472,120 478,886 485,787 492,826 500,006 507,330 514,800 522,420 530,191 538,119 546,205 554,452 562,865 571,446 580,198 455,300 464,406 473,694 483,168 492,831 502,688 512,742 522,997 533,457 544,126
TOTAL EXPENSES 0 228,719 960,502 989,317 1,018,996 1,049,566 1,081,053 1,113,485 1,146,889 1,181,296 1,216,735 1,253,237 1,290,834 1,329,559 1,369,446 1,410,529 1,452,845 1,496,430 1,541,323 1,587,563 1,635,190 1,684,245 1,734,773 1,786,816 1,840,420 1,895,633 1,952,502 2,011,077 2,071,409 2,133,552 2,197,558
NET OPERATING INCOME 0 (20,294) (514,144) (536,709) (560,013) (584,079) (608,933) (634,599) (661,102) (688,469) (716,728) (745,907) (776,034) (807,139) (839,254) (872,410) (906,640) (941,978) (978,458) (1,016,117) (1,054,992) (1,228,945) (1,270,367) (1,313,122) (1,357,252) (1,402,801) (1,449,814) (1,498,335) (1,548,413) (1,600,095)(1,653,432)
REPLACEMENT RESERVE 20,500 0 4,917 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500
Mandatory Annual HCD Payment 0.42%0 0 13,948 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922
NET REMAINING INCOME 0 (25,211) (548,592) (578,131) (601,435) (625,502) (650,355) (676,021) (702,524) (729,892) (758,151) (787,329) (817,456) (848,562) (880,676) (913,832) (948,062) (983,400) (1,019,881) (1,057,539) (1,096,414) (1,270,367) (1,311,789) (1,354,544) (1,398,674) (1,444,224) (1,491,236) (1,539,757) (1,589,835) (1,641,517)(1,694,855)
NET CASH FLOW 0 (25,211) (548,592) (578,131) (601,435) (625,502) (650,355) (676,021) (702,524) (729,892) (758,151) (787,329) (817,456) (848,562) (880,676) (913,832) (948,062) (983,400) (1,019,881) (1,057,539) (1,096,414) (1,270,367) (1,311,789) (1,354,544) (1,398,674) (1,444,224) (1,491,236) (1,539,757) (1,589,835) (1,641,517)(1,694,855)
Draw From Marin Co OpEx Subsidy 15,932,111 0 25,211 548,592 578,131 601,435 625,502 650,355 676,021 702,524 729,892 758,151 787,329 817,456 848,562 880,676 913,832 948,062 983,400 1,019,881 1,057,539 1,096,414 683,146 0 0 0 0 0 0 0 0 0
Remaining Net Cash Flow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (587,221) (1,311,789) (1,354,544) (1,398,674) (1,444,224) (1,491,236) (1,539,757) (1,589,835) (1,641,517)(1,694,855)
TOTAL MARIN COUNTY SUBSIDY (rental income/OpEx)19,549,745 62,626 705,341 738,014 764,516 791,844 820,025 849,084 879,048 909,946 941,806 974,658 1,008,531 1,043,458 1,079,471 1,116,603 1,154,888 1,194,363 1,235,062 1,277,025 1,320,289 683,146
GP AMF Annual Amt: 25,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Inflator:3.00%
Residual Receipts Loans Total %100.00%
NPLH 64.44%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
City of San Rafael HTF Loan 11.00%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sponsor Loan (HPN/MCF/County)0.00%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Marin County Loan (PLHA/AHF/LHTF)11.63%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Addl Marin Co Funds (requested)12.94%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
HCD - CA Housing Accelerator Pgm Loan 0.00%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Kerner Street
SOURCES OF FUNDS - PERMANENT
AMOUNT
TOTAL
INTEREST
COST
OID
INTEREST
RATE
AMORT
(Yr)COMMENTS
Total Permanent Debt:-
NPLH 4,981,492 3.000% 1.903% 55.0 Per Unit:121,500
City of San Rafael HTF Loan 850,000 3.000% 1.788% 55.0 Per Unit:20,732
Accrued Deferred Interest - City of San R 22,309
Sponsor Loan (HPN/MCF/County)1,235,000 3.000% 1.788% 55.0 Per Unit:30,122
Accrued Deferred Interest - Sponsor Loan 32,414
Marin County Loan (PLHA/AHF/LHTF) 899,250 3.000% 1.788% 55.0 Per Unit:21,933
Accrued Deferred Interest - Marin County 23,602
Addl Marin Co Funds (requested)1,000,000 3.000% 1.788% 55.0 Per Unit:24,390
Accrued Deferred Interest - Addl Marin Co 37,918
HCD - CA Housing Accelerator Pgm Loan 25,824,201 0.000% 0.000% 20.0 Per Unit:629,859
TOTAL SOURCES 34,906,185
Surplus/(Shortfall)(0)
Investor:
PERMANENT LOAN INTEREST RATE TRANCHE ATRANCHE B INVESTOR EQUITY STACK OTHER ASSUMPTIONS
Base Rate 3.800% 4.830%
Cushion 1.000% 0.000% LIHTC Equity (Federal+Sta 0 Current AFR:2.14%
MIP 0.000% 0.000% Historic Tax Credit 0 AFR Month:3/1/22
GNMA/Servicing 0.000% 0.000% Investment Tax Credit (Sol 0 AFR Cushion:0.75%
Issuer 0.050% 0.050%4,000 Issuer min/y Subtotal LP Equity 0 Total U/W AFR:2.89%
Trustee 0.000% 0.000%0 per annum
Rating 0.000% 0.000%0 per annum CA Certificated Credit Sale 0
Remarketing 0.000% 0.000%0 per annum Total Investor Equity 0
Rebate Analyst 0.000% 0.000%0 per annum
Total 4.850% 4.880%
SOURCES OF FUNDS - CONSTRUCTION
AMOUNT
INTEREST
RATE
TERM
(Mos.)COMMENTS
##Conventional Construction Loan 28,832,404 8.226% 25
City of San Rafael HTF Loan 850,000 3.000% 25
Accrued Deferred Interest - City of San R 22,309
Sponsor Loan (HPN/MCF/County)1,235,000 3.000% 25
Accrued Deferred Interest - Sponsor Loan 32,414
Marin County Loan (PLHA/AHF/LHTF) 899,250 3.000% 25
Accrued Deferred Interest - Marin County 23,602
Addl Marin Co Funds (requested)1,000,000 3.000% 25
Accrued Deferred Interest - Addl Marin Co 37,918
Donated Land 0
Costs Deferred Until Conversion 1,973,290 See page 2 - right column
TOTAL SOURCES 34,906,185 Syndication Costs 89,670
Surplus/(Shortfall)0 Net Equity for TCAC (89,670)
Sources Less Deferred To Conversion:32,932,896 Less Costs Deferred to Conv.34,906,185
CONSTRUCTION LOAN INTEREST RATE CONSTRUCTION LOAN VALUATION TAX-EXEMPT BOND DATA
Index Type:
1 mo term
SOFR Restricted NOI 530,575 50% Test (see Page 7):90.53%
Current Index:4.78%OAR 5.00%Issuer Inducement:TBD
Spread:2.20%FMV per NOI 10,611,503 CDLAC Allocation:TBD
Base Interest Rate (not including cushion 6.98%Agg. Credit Value @ 0.00 0 Percent of CDLAC Allocation 0.00%
Cushion - Total 1.25%Perm-Only Soft Debt 30,805,693 Const-only portion:28,832,404
Interest Rate (All-In)8.23%Total Value 41,417,196
LTV:80.00% CDLAC Per-Unit Limit 21,636,500
*Cushion includes 1% Bank Underwriting
Cushion and 0.25% cushion to close Max. Const. Loan Amount 33,133,757 CDLAC 55% Limit 17,516,742
Commitment Amount TBD
Uses of Funds
Res Cost:100.00%COST ALLOCATIONS LIHTC ELIGIBLE BASIS OTHER BASIS & COST ALLOCATIONS
Res Sq Foot:100.00%Assuming 266 Election?Yes
Deferred to Historic
Depreciable Completion Land/Basis Rehab ITC Tax
Total Total Non- Non- Constr./or for Tax Credit Credit Basis
TOTAL Per Unit Residential Residential Depreciable Residential Non-Resid.Expensed Amortized Rehab Acquisition Perm Conv.50% Test Basis (Solar PV)
ACQUISITION COSTS
Total Purchase Price - Real Estate:
0
Title/Recording/Escrow - Acquisition 30,000 732 30,000 0 30,000 0 0 0 0 30,000
Legal - Acquisition 20,000 488 20,000 0 20,000 0 0 0 0 20,000
Other Acquisition Costs/Transfer Tax 22,010 537 22,010 0 22,010 0 0 0 0 0 22,010
HARD COSTS
Total Construction Contract:
21,754,090
NEW CONSTRUCTION
Hard Costs-Unit Construction 18,766,975 457,731 18,766,975 0 18,766,975 0 0 18,766,975 0 18,766,975 18,766,975
GC - General Conditions 1,223,941 29,852 1,223,941 0 1,223,941 0 1,223,941 0 1,223,941 1,223,941
GC - Overhead & Profit 968,047 23,611 968,047 0 968,047 0 968,047 0 968,047 968,047
GC - Insurance 406,580 9,917 406,580 0 406,580 0 406,580 0 406,580 406,580
GC - Bond Premium 124,413 3,034 124,413 0 124,413 0 124,413 0 124,413 124,413
Contingency - Escalation (GC)264,134 6,442 264,134 0 264,134 0 264,134 0 264,134 264,134
Contingency - Owner's Construction 2,175,409 53,059 2,175,409 0 2,175,409 0 2,175,409 0 2,175,409 2,175,409
REHAB
SOFT COSTS
Architecture - Design 931,481 22,719 931,481 0 931,481 0 931,481 0 931,481 931,481 0
Design/Engineering 74,000 1,805 74,000 0 74,000 0 74,000 0 74,000 74,000 0
Phase I/II/Toxics Report 44,000 1,073 44,000 0 44,000 0 44,000 0 44,000 44,000
Special Inspections/Testing 85,000 2,073 85,000 0 85,000 0 85,000 0 85,000 85,000
Prevailing Wage Monitor 72,000 1,756 72,000 0 72,000 0 72,000 0 72,000 72,000 0
Owner's Rep / Construction Supervision 126,000 3,073 126,000 0 126,000 0 126,000 0 126,000 126,000 0
Consultant: Asbestos Monitoring 4,000 98 4,000 0 4,000 0 4,000 0 4,000 4,000
Local Development Impact Fees 818,111 19,954 818,111 0 818,111 0 818,111 0 818,111 818,111
Local Permits/Fees 102,124 2,491 102,124 0 102,124 0 102,124 0 102,124 102,124
Real Estate Taxes During Const 16,174 394 16,174 0 16,174 0 0 16,174 0 0 16,174 16,174
Insurance During Const 800,000 19,512 800,000 0 800,000 0 0 800,000 0 0 800,000 800,000 0
Appraisal 5,500 134 5,500 0 5,500 0 0 5,500 0 5,500 5,500
Market/Rent Comp Study 11,000 268 11,000 0 11,000 0 0 0 0
Soft Cost - Soft Lenders Fees & Expenses 10,000 244 10,000 0 10,000 0 10,000 0 10,000 10,000
Soft Cost Contingency 361,881 8,826 361,881 0 361,881 0 361,881 0 361,881 361,881
Predev. Loan Interest/Fees 2,000 49 2,000 0 0 2,000 0 0 0 0 0
Construction Loan Interest 3,429,352 83,643 3,429,352 0 1,848,095 0 1,581,257 1,848,095 0 0 1,848,095 1,848,095 0
Accrued Interest - City of San Rafael HTF Loan 22,309 544 22,309 0 11,982 0 10,327 11,982 0 11,982 11,982
Accrued Interest - Sponsor Loan (HPN/MCF/Co 32,414 791 32,414 0 17,409 0 15,004 17,409 0 17,409 17,409
Accrued Interest - Marin County Loan (PLHA/A 23,602 576 23,602 0 12,676 0 10,925 12,676 0 12,676 12,676
Accrued Interest - Addl Marin Co Funds (reque 37,918 925 37,918 0 25,630 0 12,288 25,630 0 25,630 25,630
Lender Fees - HCD - CA Housing Accelerator P 40,000 976 40,000 0 40,000 0 0 0
Title/Recording/Escrow - Construction 59,996 1,463 59,996 0 59,996 0 59,996 0 0 59,996 59,996
Title/Recording/Escrow - Permanent 15,000 366 15,000 0 15,000 15,000
Legal (Owner): Construction Closing 50,000 1,220 50,000 0 50,000 0 50,000 0 0 50,000 50,000
Permanent Closing 20,000 488 20,000 0 20,000 0 20,000
Organization of Ptnshp 6,670 163 6,670 0 6,670 0
Syndication Consulting/Consulting 63,000 1,537 63,000 0 63,000 0 0 2,500
Audit/Cost Certification 20,000 488 20,000 0 20,000 0
Marketing 64,755 1,579 64,755 0 64,755 0
Furnishings Not in Contract 220,000 5,366 220,000 0 220,000 0 220,000 0
Capitalized Replacement Reserve 41,000 1,000 41,000 0 41,000 41,000
Capitalized Operating Reserve (6 mos.)497,531 12,135 497,531 0 497,531 497,531
Capitalized NPLH COSR Transition Reserve 133,825 3,264 133,825 0 133,825 133,825
Marin Co Subsidy - HCD TR Fee 146,623 3,576 146,623 0 146,623 146,623
Developer Fee 2,200,000 53,659 2,200,000 0 2,200,000 0 2,200,000 0 1,100,000 2,200,000 2,200,000 -
COSTS OF ISSUANCE/FINANCING FEES
Construction Lender Origination Fee 187,411 4,571 187,411 0 100,997 0 86,414 100,997 0 100,997 100,997
Construction Lender Expenses 60,000 1,463 60,000 0 32,334 0 27,666 32,334 0 32,334 32,334
Construction Lender Counsel 70,000 1,707 70,000 0 37,723 0 32,277 37,723 0 37,723 37,723
Subtotal - Financing/Costs of Issuance 317,411 7,742 317,411 0 0 171,054 0 0 146,356 171,054 0 0 171,054 171,054 0
TOTAL DEVELOPMENT COSTS 34,906,185 851,370 34,906,185 0 953,990 31,996,613 0 1,716,557 239,026 31,996,613 0 1,973,290 31,848,623 31,776,613 0
TDC Per Unit 851,370 100.00%
TDC Net of accrued interest:34,749,943
TDC TCAC 34,816,515 34,816,515
Kerner Street
3301 Kerner - 41 Units
Project Schedule
March-23 Marin County CDA Affordable Housing Funds - Application Deadline
March-23 Estimated Construction Closing
April-23 Estimated Construction Start
September-24 Estimated Temporary Certificate of Occupancy
January-25 Estimated 100% Occupancy
May-25 Estimated Permanent Conversion