HomeMy WebLinkAbout1999-07-13; City Council; 15310; Mariano Housing Developmentta zi & %
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CITY OF CARLSBAD - AGEtWA BILL l/3 0 8
AB# 15, 310
MTG. ‘-I 113 199
TITLE: AUTHORIZATION TO PROVIDE A FINANCIAL DEPT. HD. &ti
ASSISTANCE COMMITMENT OF UP TO A MAXIMUM OF
$462,755 FOR THE CONSTRUCTION OF 27 CITYATTY. l @ AFFORDABLE APARTMENT UNITS WITHIN THE
DEPT. H/RED MARIANO HOUSING DEVELOPMENT. 51 p 474
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. C 9 - iI5 Y . APPROVING a request to provide a financial
assistance commitment of up to a maximum of $462,755 for the construction of twenty-seven (27)
affordable apartment units in order to satisfy the requirements of the lnclusionary Housing Ordinance for
the Mariano Affordable Housing Development.
ITEM EXPLANATION:
In November of 1997, the Mariano Housing Development, located at the southeast corner of the future
extension of Aviara Parkway and Cobblestone Drive, received approval from the City Council to develop a
maximum of 150 single family homes and a 27 unit affordable apartment complex on 54 acres of land.
Since that time, a new developer (Standard Pacific Homes) has acquired the property and slightly
modified the initial plans for the property. Standard Pacific Homes intends to develop 146 single family
homes and a 28-unit apartment project to meet the development’s lnclusionary Housing requirement. Of
the 28 apartment units, a total of 27 of the units will be affordable to lower income households. One unit
(manager’s unit) within the apartment project will be rented at market rate.
Standard Pacific has entered into an agreement with Wakeland Housing and Development Corporation,
an affordable housing developer, to construct, own and operate the affordable housing apartment project.
Wakeland, in turn has formed a partnership with San Diego Interfaith Housing Corporation, another
affordable housing developer, to develop the project. The partnership, known as Pacific Vista Las Flores,
L.P., intends to process a design change to the originally approved project which will require an
amendment to their Site Development Plan. This amendment is being ptocessed at this time and will
result in a better project design, enhanced architecture and additional amenities for the affordable housing
project. The revised proposal will include 16 two bedroom units (57%) and 12 three bedroom units (43%).
With the revisions, the project will also feature an approximately 1,500 square foot recreation building and
laundry facilities. The project will provide units which are affordable to households between 30% and 50%
of the Area Median Income (AMI). Specifically, 18 of the units will be affordable to households at 50% of
AMI, 7 units will be affordable to households at 38% of AMI and 2 units will be affordable at 30% of AMI.
The Pacific Vista Las Flores partnership is proposing to finance the subject affordable housing project this
year, in part, with proceeds from the 9% tax credit program. In order to be eligible to receive the credits,
the partnership must submit an application to the California Tax Credit Allocation Committee (TCAC) by
July 15, 1999. As part of the TCAC application, the partnership would like to include a commitment of
financial assistance from the City of Carlsbad. This commitment will allow the project to be more
competitive within the tax credit application/allocation process. At this time, it is the recommendation of
the Housing Commission and staff to provide a conditional commitment to provide financial assistance to
the project. The actual loan agreement and other documents will be presented at a later date for final
approval by the City Council.
- h
Page 2 of Agenda Bill No. / s,, 31 a
SUMMARY OF PROJECT PROFORMA AND FINANCIAL ASSISTANCE REQUEST
As outlined in the chart below, the financing scenario for the subject affordable housing project anticipates
that funding will be provided as follows: approximately $2.67 million in revenue through the sale of the 9%
Tax Credits, $503,000 from a conventional loan, and City assistance in the maximum amount of
$462,755. Standard Pacific, as the Master Developer, will provide a graded site of approximately two
acres of land as their contribution to the project. It should be noted that the subject site has not yet been
appraised and, therefore, a value has not been established for the land.
As noted in the chart above, the total projected cost for the subject apartment complex is approximately
$3.6 million, or $128,000 per unit. This cost does not include a value for the land. According to staffs
analysis of the project proforma, the per unit housing cost is higher than other affordable multi-family
developments within the City. However, this higher cost can primarily be attributed to the fact that this is
a much smaller development. There are fewer units in which to spread the total cost of development.
When considered in this context, the higher cost per unit is consistent with previously approved projects in
the City of Carlsbad.
The development partnership has requested financial assistance from the City in the amount of $462,755.
This request represents a per unit City subsidy of $16,500 (based on 28 units total). On a per unit basis,
the proposed request is higher than the assistance which has been provided to other affordable housing
projects within the City as of this date. This higher subsidy amount has two related causes. First, due to
the timing for the tax credit financing application process, the partnership has not yet had an opportunity to
apply for other assistance which is, or may be, available to the project, such as an Affordable Housing
Project (AHP) Loan through the Federal Home Loan Bank. If an AHP loan is approved for the project, the
City’s subsidy amount could be reduced by $2,000 to $5,000. Second, the average affordability of the
project will be 47% of the Area Median Income (AMI). Because the project will primarily be assisting very
Page 3 of Agenda Bill No. / 5 ,3/o
low and extremely low income households, the subsidy required is higher than other projects. With a
requirement that the partnership apply for an AHP loan and in consideration of the lower affordability
levels for the project, the Housing Policy (Staff) Team recommended approval of a commitment to provide
financial assistance to the subject affordable housing project.
HOUSING COMMISSION RECOMMENDATION
At their meeting on June 10, 1999, the Housing Commission reviewed the request from Wakeland for
financial assistance related to the subject affordable housing project. The Commission recommended (4-
0) that the City Council approve the requested commitment to provide financial assistance in an amount
not to exceed $462,755 with the following conditions:
1. The Developer shall make a good faith effort to pursue and receive an Affordable Housing Project
(AHP) Loan from the Federal Home Loan Bank. The City’s financial assistance will be rescinded if the
developer does not make a good faith effort to obtain the AHP Loan. The receipt of such AHP funds
shall reduce the amount of the City’s financial assistance in an equal amount.
2. The Developer shall make a good faith effort to pursue and receive a refund of school fees from the
California Department of Housing and Community Development as provided for in Proposition IA. If it
is adequately demonstrated to the City that the refund would have a negative impact on the financing
for the project, the City shall not require the applicant to receive such funding. The receipt of such
funds, however, shall reduce the amount of the City’s financial assistance in an equal amount.
3. If the developer receives additional tax credits or additional tax credit equity over and above that which
is noted in the project’s proforma, the amount of the City’s financial assistance shall be reduced by an
equal amount.
The proposed commitment will be returned to the Housing Commission and City Council for approval of
the appropriate loan agreement and related documents.
FISCAL IMPACT:
At a maximum, the City will provide a total of $462,755 in financial assistance to the subject project from
the Housing Trust Fund. The total amount of the City assistance may be reduced depending on the
project’s ability to secure additional financing at a later date. The Housing Trust Fund has a current
undesignated fund balance of approximately $2.3 million.
EXHIBITS:
1. City Council Resolution No. 9 4 - 2 5 ?‘, approving financial assistance commitment to the Mariano
Affordable Housing Project in a maximum amount of $462,755.
2. Financial Assistance Request and Project Proforma.
3. Housing Commission Resolution No. 99-005, dated June 10, 1999.
4. Housing Commission Staff Report, dated June 10, 1999 with Draft Meeting Minutes.
3
RESOLUTION NO. 99-L54
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING A REQUEST TO
PROVIDE A FINANCIAL ASSISTANCE COMMITMENT OF
UP TO A MAXIMUM OF $462,755 FROM THE CITY’S
HOUSING TRUST FUND FOR THE CONSTRUCTION OF
TWENTY-SEVEN AFFORDABLE APARTMENT UN-ITS IN
ORDER TO SATISFY THE REQUIREMENTS OF THE
INCLUSIONARY HOUSING ORDINANCE FOR THE
MARIANO HOUSING DEVELOPMENT
APPLICANT: PACIFIC VISTA LAS FLORES.
CASE NO: SDP 97-16 - MARIANO DEVELOPMENT
WHEREAS, Standard Pacific Homes proposes to construct a total of 146 single family and 28
9 multi-family units in a development commonly known as the Mariano Project; and
10 WHEREAS, to meet the requirements of the City’s Inclusionary Housing Ordinance, Chapter
11 21.85 of the Carlsbad Municipal Code for the development of the 146 market rate single family homes,
12 Standard Pacific Homes proposes to construct a total of 27 housing units affordable to low income
13 households; and,
14 WHEREAS, Pacific Vista Las Flores, an affordable housing development partnership, has
15 entered into an agreement with Standard Pacific Homes to construct, own and operate a 28 unit apartment
16 project, of which 27 shall be affordable to lower income households, as a means of satisfying the
17 Inclusionary Housing Ordinance requirements for the Mariano Project; and,
18 WHEREAS, Pacific Vista Las Flores has submitted a request for the City to approve a
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commitment to provide financial assistance for the development of the subject 27 lower income
affordable apartment units; and,
WHEREAS, the Housing Commission did, on the lO* day of June, 1999, hold a public meeting
to consider said request for financial assistance; and,
WHEREAS, upon hearing and considering all testimony, if any, of all persons desiring to be
heard, said Housing Commission recommended approval to the City Council of a commitment to provide
financial assistance to the subject project and developer with conditions; and,
WHEREAS, the City Council did, on the 1 31h day of July, 1999, hold a public meeting to
consider said request for a commitment to provide financial assistance in the maximum amount of
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$462,755 to the subject project and developer with conditions; and,
WHEREAS, upon hearing and considering all testimony, if any, of all persons desiring to be
heard, said Council considered all factors relating to the request for a commitment to provide financial
assistance to the subject project and developer with conditions.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. The request for City financial assistance for the Mariano Apartment Project is consistent
with the goals and objectives of the City of Carlsbad’s Housing Element, Consolidated
Plan, the Inclusionary Housing Ordinance, and the Carlsbad General Plan.
3. The request for City financial assistance will assist the affordable housing developer to
construct a total of 27, two and three bedroom lower income affordable apartment units.
The project, therefore, has the ability to effectively serve the City’s housing needs and
priorities as expressed in the Housing Element and the Consolidated Plan.
4. That based on the information provided within the City Council and Housing
Commission Staff Reports, the testimony presented during the public meeting of the City
Council and Housing Commission, if any, and the Conditions of Approval contained
herein, the Council hereby APPROVES a financial assistance commitment of up to a
maximum of $462,755 from the City of Carlsbad’s Housing Trust Fund to Pacific Vista
Las Flores, with the conditions noted herein, for the construction of twenty-seven (27)
lower income affordable apartment units to satisfy the requirements of the Inclusionary
Housing Ordinance for the Mariano Housing Development Project.
GENERAL CONDITIONS:
1. The Developer shall make a good faith effort to pursue and receive an Affordable Housing Project
(AHP) loan from the Federal Home Loan Bank. The City’s financial assistance will be rescinded if
the developer does not make a good faith effort to obtain the AHP loan. The receipt of such AHP
funds shall reduce the amount of the City’s financial assistance in an equal amount.
2. The Developer shall make a good faith effort to pursue and receive a refund of school fees from the
California Department of Housing and Community Development as provided for in Proposition 1A.
If it is adequately demonstrated to the City that the refund would have a negative impact on the
financing of the project, the City shall not require the applicant to receive such funding. The receipt
of any such funds, however, shall reduce the amount of the City’s financial assistance in an equal
amount.
. . .
. . .
. . .
CC Resolution No. 99-254
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3. If the Developer receives additional tax credits or additional tax credit equity over and above that
which is noted in the project’s profoima, attached hereto for reference purposes, the amount of the
City’s financial assistance shall be reduced by an equal amount.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Ci
Council of the City of G&bad, California, held on the 13* day of July, 1999, by the followir
vote, to wit:
AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulchj
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
CC Resolution No. 99-254
Page 3
Jun. 2. 199: 2 : 13’M SENRS PI.P,TNEP,S -. -4 EXHIBIT 2
Housing and Devehpmtenr Corporarim
hne 2,1999
225 Bioadway, Suirc I700 San Diego, CA 92 IO I Telephone (6 19) 235-2296
Facsimile (6 19) 234-79 I7
Ms. Deborah Fountain
Housing and Redevelopment Director
City of C&bad
Housing and Redevelopment Department
2965 Roosevelt St., Suite B
Carlsbad, CA 920082389
Dear Ms. Fountain:
Thank you for the meeting yesterday to discuss the Mariano Apartments. This 28
unit affordable housing development will contribute towards the inclusionary housing
requirement of Standard Pacific Homes. Since this is an affordable housing project with
rents below market, the developer, Wakeland Housing and Development is requesting a
loan from the Redevelopment Agency. I understand that historically the Agency has
made commitments in the 9 10,000 - $11,000 per-unit range.
Since our meeting yesterday, I have revised the pro-forma. The conventiona loan
is projected to yield $ i 7,659, and the tax credit investor is expected to contribute another
$94,663 per-unit. The total subsidy request from the Agency is $462,774, which equates
to $16,528 per unit.
There are numerous reasons why Mariano Apartments needs additional subsidy
beyond the $11,000 amount. There are also several actions we plan to implement to lower
the Agency loan amount per-unit. First, the reasons why we are requesting S 16,528 per
unit for Mariano Apartments:
1. ’ This is a small project. Design, engineering, and legal costs are a faed amount
that would be incurred whether we are building a 2%unit or 128-unit project.
These costs spread over 28 units yield a higher per unit cost than a larger project.
2. The development has a large 1,500 square foot community room. This is
important “community space” where families can hold meetings, and congregate,
and where WC can also set-up after school progams, training programs, etc. for
the residents. Nonetheless this community room does add additional costs to be I
spread out over only 28 units.
Jun. 2. 19$G 2 : 13?M SEPITES FAliTlJE?: -.
3.
4.
Given the location, the project will have a significant retaining wall around most
of the perimeter. The initial estimates are that this retaining wall will cost
approximately $50,000 to build.
Under the California Tax Credit Allocation Committees p regulations, projects
like Mariano that had linkages to public transportation, were allowed to increase
their Threshold Basis Limit by 15%. Thrs resulted in additional basis that could bc
claimed for tax credits, and additional funds for the project. If we were able to
claim the additional 15% basis for the Mariano Apartments, we would need to ask
the Agency for $4,943 per unit. Because the new regulations do not allow us to
increase our Threshold Basis by 15%, we need to substantially increase the
amount of subsidy.
5.
!lo. 305; P. 3/4
The development has a mix of affordable units. As indicated on the attached pro-
forma, the average affordability is 45% of area median income (AMI) with 10
units below 40% AMI. Two units are 30% AMI, and eight units are 38% AMI.
As units are leased at below 50% AMI, the subsidy amounts will increase
significantly.
Following are some ways that Wakeland Housing and Development will work
with the City to bring down the per-unit Redevelopment Agency costs:
1.
2.
3.
We will apply for AHP funds for this project later this year. We’will request
$5,000 per-unit. Given the trend in the way AHF allocates funds, we will
probably receive $3,000 to $4,000 per unit.
We are applying to the California Equity Fund for the equity funds. Currently,
our pro-forma shows CEF paying S.79 per tax credit dollar. Recently on another
development CEF offered X795, and another investor offered $80. We will work
aggressively with CEF (or if need be another investor) to maxim&e our tax credit
yield, again lowering the loan amount from the City of Carisbad.
WC are at the beginning of this project, and have not fmalized in detail all the
construction costs. As we continue through this process, we will look for ways to
do value engineering. We will work with the Architect (Rodriguez + Simon
Design Associates) and Contractor (Cuatro Corporation) to look for wey to cut
expense (but not quality), and thus reduce the City per-unit contribution,
Jun, 2. 199,c 2: lj?hf SEHTP.3 PARTNER: No. 3029 P. d/4
If you have any additional questions, or need additional information, please do not
hesitate to call. I look foxward to working with you and the City of Carlsbad in the
development of Mariano Apartments. I
Sincerely,
Kenneth L, Sauder
Executive Director
Attachment: Revised Pro-forma for Mariano Apartments
cc: Craig Ruiz, City of Carlsbad
Gregg Linhoff, Standard Pacific Homes
Jack Henthom, Jack Henthorn & Associates
Steve Kuptz, Chairman of the Board, Wakeland
4
May. 2:. 1?9$ 8:3Ml SEPITP.3 F~~'IMEP,S !Jo. 2EEE P. ‘Z/2 -4
NAnlAuo APARTYEUTS Q~uaI a ShN TU cN4ua cedabed, CA
m~CASTAsauHPlloN3
RWDA’IE: a!m@g’ Qmf AN
@VELDFMENT BCHEDULE 7
unu k Ran 27
hIermgda Unna
Tti NutIIbv of UnP
~rwlty Par k-a
tiMtNctbn3tat
com$Iew~erwlalteofoFcupancr
cuulm Parbd (Mmth8)
3lmt of LsscinrJ
Unllr Lease4 wr Yvnm
swlwrs4occuPancy
~cweJJp Pmicd (Mm(hs)
Pemnent Loan Tzk~ut
TOblMOTf.hS-CUKU.StM~fwaxlr
4
1.3a Acres ‘ 21.34
acl-99
kl4a
bug-i
28
ma 1
N4V-W
16
@NJRCE3 AND USE3 OF FUNDS
100.00% O.WX
WLkInS- ht8il w
uses:
wAcqul8luan
Dew 4 uloneerlne Legalmnmwolher CcnaulIx46
Pmn-b & Fass
olf.3lw mffaNluaAlre 6 Inpmvelmnt8
On-W Inlrasbuclure 6 Inpnmmmts
Dlmd Buklhg c4naAlucuolI
Financing Coats
t.W.e.~GeneraI 6 Mmlnbtrak
OfWZlOW%BS
cowwency
T&l Pmpct uses
w w
7.026 216.13a
3,500 811,000
lB.560 SiB.OW
0 0
0 0
W,lW 1.667,LU7
14,382 M2.7aA
1.250 3s.wo
10.714 3W.004
5.462 162,859
S126.335 tj,w3.3aA
w 30
0 210.160
0 oa.wo
0 519.WO
0 0
0 D
0 tae7m7
a 102704
0 3S.000
0 ywl,ow
0 lS2.663
30 S3.593.3&0
T&Cmdi?Equity
convvlnonBI Permanent Lnan
AJV Fhantiilg
D9fUM DeMOpar Fee
COBG Fwda
HOME Funds
Ra4Bvekomenl ael Aside
SeS,aZe 57.,627,11@ SO S&027.119
i7.9a2 503,510 0 603,610
a 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
16.627 M.735 0 462.756
J121),3.% S3563.364 so S3.563364
MLOanCqmmiwM 5299ob29
@slDEUTIAL UNR MIX/AFFORDABUW ANALYSIS 1 hl!p. UnAs zuEuzaA38BL(BBa38W28A-ToelVnm% rncome
Total Unb 1
% 5.0%
Sa, FlJLM 343
Toal Resid Sq Ft 949
Related Rasldetial 3q. F-t
Communly cemw
IJbmy
omm
h!dintonrm
Parches
Total Souare Feet
[DEBT FIUANCING AS3UNPrY)NS
CdhlSTRucTlQN LOAN:
C.ow Loan lntamst Rate
Lean Poina and Fser,
PETwANENr LOAN:
Penr~m Lwn Race
PemnJmdloancu?dLml
Loan Palms md Fee8
Dem Sewice Covmw RIcb
Loen Unddhg Term l-few
Mrumvm LDen 10 Value R&u
bpitilk%n Rata
Projja vaba (NOVCap Rate)
thxhm loan 0 0.~4 Rack
Cash Avalatde for D&i Se&e (NOI)
htOVdUelWO
PMTIanenfLoan
AmxJafP~nl
OTHER DEBTILOANS:
IryrssiRaa
Losl Pti and Fees
ban Tam? (ywo)
9.06%
1.00%
ma%
9.nx
2.00%
1.15
30
EO.WX
6.00%
wll.859
100.00%
35,909
7205%
503.SlO
48.618
Baetuan- BOOK O.Oa%
0.000% 0.000%
s.5 0
@iA CREDIT WlNG ASSUHFllONS I
cc443 Y&s 1999
Fedem Tax CRdlt Rae 828%
amla Tat cm&l Ram 20-W%
Dle!ullt b awelop % 1W.W%
Pppllcable Fmcdon tW.W%
Adjusted El&k 6al 29ew
AMUI TZr ‘&dk5 244.126
Inw8Ior Ykld MI W% allotal credl Allcc&w 79.00%
Gmaal~OlwtZC&lb&ilto~lii 2,9n.l~9
Defemd Pay+ WI Ta 0~81, Eqully 14
TCAC w Pointa 165.673
TCAC Pas&b Points m.a7a
Tle&mkm TaxCmdkperBedrmxm 66.336
[OTNERA33UHl=llON3 I
PmpftyTAm:
T4KRme
~Ploprcty easls (p+N unm
New UnP Basks (pr unC
Ground hso:
ReprmWGNundLsase
InMlon Indexer:
lnoxm lnnatw
Expenee hleamr
1.10%
0
0 a.oos
2.5s
3.50%
0 15 12 0
I
28 unhs
a.o% 5S.O% 43.0% 0.0%
650 643 1,980 0
a 12.646 12.660 0 78,448
1 .sw
0
0
2% 30.88~ 8q.n
1 Person uB,BW
2PeMc.n S42,ow
3Pbscll 547,300
4Pamn S62.5w
5 Psxln 556.700
BPefsm Em,840
7Pemon SBS.100
E Person s89,3w
[PMITNER *LLOcATloNS
Genera4 Partnar
UrmrsdPMrarA
Lbnllad Paml8r B
ShJQlo 23 67,812
l-BR 32 77.oso
2-BR 41 94016
3-BR 50 120.343
&BR 83 134.067
1
0- 3alc
0.01% 0.01%
9s.99% ee.eQy.
O.W% o.w%
May. i:. ::5 2: 54Fi SE:!‘:EE F;E:XEF.S so. ssi’i F. 2/!i
MARIANO APARTMEWS -Fe&
RENTAL REVENUES:
Gross Polmllal Rent uundry/Olhu Stan Rwell IJntts
Interest EarninpJ on Opsrating hr.
vacmy Allwallcc
15.00
5.00%
170.376 175.250 179,631 1.680 1.722 1.765 0 0 0
0 0 (8.633) (8.849)
Net RumI Income 164.023 168.123 172.326
PROPERn OPERATING COSTS: Adminlstraliw Expw~sar: Otficr Supplies b Equipment
Program swvic*s Payroll services van setices TalrphondAnswring Sawice
AUIO EXWIK
Trsmmg 6 Travel MISC. Adrnmlsvatwe Elp*rlse
MmkmM? PDmse:
Ad&kink Prot.rrional Fan:
Property Managemenr Foes Leasw & Cammissicns Legal Fees
Audltilrg Expense Utilities: Eloetricity(unilr) cas (Utllts)
Water and Sewer(Units) P.,roillPayx.ll Tar-:
Sd~~i~~.~W~~.Sg9/ Salanes.A+ti~tant Mana.-er
Salaner-Administrative Salarias~~a’mtcnanc~ Supervisor
SblariesMaintenonce Personnel
Employee Awlmmts Payroll lax45
Warxers Compensation
Health InsumnCVOther Eeneft:s contract senicrr: Exttrminaling
Trash Removal Security Patrol
0uilding/Crowds hlaintcnance Jamtarirl contracl
Repair Cmlrrets
Elevator&Other Equipment Cleaning L Decorating: Paintina Su~~das Ground; Su-&m
Repairs L Maintenance: Repairs 1 Mainterance Gaenl
Faeilifiss Suvices
$lCO /mo
SO /ma. 125 /mo. so /ma. $100 It-no.
f50 :mo.
529 ItnO. SlS Icw.
1.200
0 300 0
1.200 EOO
300 183
1.242
31:
0 1.242 621 311 186
1.285 0 322
1,2a:
643 322 193
515 h-70. 180 186 193
$30 00 lu:mo
so /no.
150 ho. 5300 /mo.
10.080
6000
3.600
zJ.4.33 0
621 3,726
10.798
6430 3.856
f&33 /ulna l,GS 1.5C8 1,559 so.93 /ulmo 195 2CZ 209 616.67 ,UlrnO 5.60: 5.797 6JXU
$1.600 Imo. 19,200 $0 /I??@. 0
$0 /mo. C $0 /mo. 0 so mo. 0
$0 /ma 0 9.020% 1.732 8.824% 1.694
$250 Imo. 3.000
19.872 0
0 0
:
1.792 1.912
3.105
20.568 0 0 0 0
0
1,855 1,979 3.2?4
550 Ima.
314.88 /u/me $0 ITO.
s10.00 /u/m0 $5.00 him0 SlS.DG lUh.0
so /#no.
$5.00 ,w’mLl 54.00 /u/:re
$10.00 1u:mo --
5E 0 3.360
I.680
5.040 0
621 5.175 0
3.478
1.739 5.216
0
5.2: 0
3.600
1.8OD 5.399 0
1.680 1.34
3,360
1.800
l.dKl
3.600 3” Inn
$2,61L /ur.il
0
73.131
1.739 1.391
3.478 0
75.902
”
78.562 TOTAL VARIABLE CDSTS
Tams & Insurance: Real Property Tax Assessment Oircctofs & Okrh Inwnnce Misc Taxer/L~cer~sJPerrn~tr; Propwty lnrunncs
Fidelity Bond Insura,x~ Ground L&e Payment
TDTAL FlXED COSTS
TDTAL OPERATING COSTS
NET OPERATING INCOME:
\ YEAR ] 1 2 3
$9 /unit 3.150 3,260 3.374 sso /ma. 600 621 643 J8 /ma 100 10a 100
5250 /Lnlt 7,000 7,245 7.A99 517 ItnO. 2co 207 214
0 0 0 0
11.050 :1.437 11.838
23,008 Amt 84.23: 87,339 90.400
79,792 80.784 81.926
CASH FLOW FROM OPERATIONS: Nat Opwating Income
Replacement Reserve 5250 CASH FLOW AVAILABLL FOR DEBT SERVICE Debt Services First Trust Deed 503.510
Cash Flow Aftv Debt Scrrice Operating Rersrvc 2.00% Gentred Partner Asset M@ Fee 10000 per yr.
AOA Loin Payment 7S.ooY*
CASH FLOW AVAIUBLE FOR DISTRIBUTION
79.792 81.926
7,000 7.000 7.000 72,752 73.784 74,526 (48.616) @B.616! (48.616)
24,176 25.168 26,310
(3.280) (3.362) (3,447) (10.000) (10.000) (10,000)
(8.172) 18.854) (9.6471 2.724 2.95: 3.216
Seginnmp Principal Amount cvnenr Year lntercsl current Yew Paymerlt Ending Balance
Ealanco ahw 32 years
3%
462,774 13.w.3 (8JT2) 468.485
0
468.485 473.666 lb.OS5 14.2:1 (8.85‘9 (9@7) 473.686 478.249
II
]Jip, 2;. x;; i : 55Fli SE1:F.E F.1.E:::EF.Z ss. .s;: P. 3/:3
*.
MARlAN APARTMENTS .Fc& . Stale Tax Credits
PROJECY CASH FLOW
REHTAL REVENUES: Gross Pdcnlio, Rest Lsundfy/Other
Staff Rental Units ,nt.rrst Emwlgs on Oporrting RPS
vacrncy ArlWdllCC
15.00
5.00%
lab. 122 na725 193.443 198.279
1.809 1,854 1.930 1.948 0 0 0 0 0 0 0 2.624
(9,297) (9.529) (3 767) (10 Cl 11
Net Rental Incoma 176,634 181.050 185,576 192.840
PROPERTY OPERATING COSTS: Administotire Exp-..:
CWicc Supp:ies 6 Equipment Program Swficps Payrob Services Van Services T~IwhQn*lAnswrinE S&CP
Auto ErPenra Trainlns h Travel
M&c. A&niiirtrativc Erpense Markslin~ Gpw.c:
Advenisin~
Professional Fees: Property Managemrnl Feea
Lsaaina & Commusmns
Leg01 Fees Auditma Expense Utilities: Electricity (UrnIs)
Gas (units) Water snd Sewer (Units) Payre111P~yro11 Tuer: sararie*ktanager Salwier-At~irtmt Mamger
Salams-Admmstratn’e SalsduMomtenmca SwenisDr
Salari~94vtainlmmcs Personal Employee Apartments Payroll Tams workers cmpensatlcn
Health InsuranCelOther SensXs conlrsst Scrricms: Exrnrmirmling Trrrh Removal security P&r01
Buildmg/Graurds Ma!ntenance
JanItorid c.%lv~t Repair Contraera Elevator k Other Equipment
Cleaning I D*coratinP Painting Supplies Grounds Stoptics
Repalrr k Maintenance: Repairs 6 Maintenance Genlral
Facilhs Services
TOTAL VARIABLE COSTS
Taxer h Insunncc: R-1 Property Tar Atsetrment
Dirnctor’s & Oflicw’s Insurance t&se Tax&Licmses/Pnmits Prcwly Insurance Ftdel?j Bond Inwr~nce
Ground Lsarr Pqmant
TOTAL FIXED COSTS
TOTAL OPCRATING COSTS
NET OPERAYING INCOME:
CASH FLOW FROM OPERATIONS:
Nat Orwaling mmm
1 TEAR 1 4 5 6 7
SlOO !rm. $0 h-lo. a.25 /no. $0 InlO. $100 /no. $50 /no. I23 /ma $15 ino.
$15 ItnO.
s3ow /u/f-lo
SO /mo. 150 hno.
GO0 /mo.
SC.33 iumo 1.614 :.670 1.728
SO.56 ;uwlo 210 226 232 $16.67 ,dno 6.210 6.427 6.652
51.600
E SO
/l-no. /ma In-ID. Imo.
SO Imo. 0 $0 ItnO. 0 9.320% 1.920 8.824% 2.048 SZYJ IIRC. 3.326
22,033 0
0 0
0 0 : .987 2.120 3.442
$50 Pm.
114.88 /illrnO
SO fmc. $10.00 /u/m0
$5.09 /JlrnO
$15.00 /dmo $0 In-O.
666 689 713
5,543 5,737 5,938
3.7260 3,856o 3,ssY 1.863 1,926 1,995 5,588 5,764 5,966 0 0 0
5.500 luimo 1.863 1.926 sb.00 lUlrn0 1.490 1.542
1.330 0 433 0 1.330
666 333 7.00
200
1:.1Xi 0 666 3.991
2:,288 0
0 0
510.00 /u/no 3,726
1,377 1 .b23 1.&7S 0 0 0
3a§ 357 369 0 0 0
1,377 1.425 1,475 683 713 73B
345 357 369
2C7 214 221
207 214 221
Il.567 11.372 12.391
0 0 0 689 713 738
4.13: 6,276 0.426
1.7aa
6.E
22.804 23,602
0 0
0 0 0 0
0 0
2.05,” 2.12: 2.194 2.270
3.562 3.687
738
6.146 0
4.131
2,065
6.1% 0
3.856
1.995 1.5%
3,991
2.065 1.652
4,131 SO imo. 0 u ” 0
SZ.ClA iunit Bl.?lZ 84.157 87,100 52.lbB
SP /unit 3.432 3.614 3.7w 3.871 150 imo. 666 683 713 738
59 Imo. 112 ‘.16 120 124 5230 /unit 7,761 8.033 8.314 8.605 S17 /ma. 221 229 237 245 0 0 0 0 0
12.252 12.681 13.120 13.583
S3,CW /unit 93.564 96.835 100.224 103.731
83.070 B-t 212 85.352 89.109
Replacement Reserve $250 CASH rl.OW AVAILABLE FOR DEBT SERVICE
Debt Service, First Trust Deed 503,510 Cash Flow After Debt Sewicn operating RrnSONO 2.00% Gonrnl Partner ASLCI Ypt Fee 10000 per yr. RDA Loam Payment 75.00% CASH FLOW AVAILABLE FOR DlSTRll6UTlON
83.070 84.212 85.352 69.109 7.oco 7,000 7,000 7,000 76,OiO 77,212 76.352 82,109 (LB.616) a8.6’ 2 5 (46.6161 148.616)
27,454 28.596 29,736 33.493 (3.533) (3.621) (3.712) 0
(:o.ooo) (10.000) (10.000) (lO.OW) ~IO.461) U1.231) (12.016) (17,620) 3.460 3.7c4 4.006 5.873
Beginning Principal Amounl
currcn1 Year mterea1
ccrwlt rear Payment Ending Balance Balance after 32 ysarr
3%
478.2A9 482.156 ~85.3aP 487.933 14.307 lL.b6i la.562 14.638 (lO.b.t!) (11.231) (i2.018) (i7.620:
aS2.156 485.383 a7.933 434.951
tfl;, ;;, :x; 2: ::?I,[ 5E’:::F.E F2:IEF.I;
MARIANO APARTMENTS -Fe&r. . State Tax Credits
PROJECT CASH FLOW
;.I ,I, 2 ; ; : F. 41::
RENTAL REVENUES:
Gross Potentrsl Rent Uundr//Olhlr staw Rental uruts
Interest Earnings oh Operating Rcs. Vacancy Allowmc~
55.00
5 00%
203.236 208.317 I.997 2.647 0 0 2.624 2,624 (10.262) (losia)
213.525 218.863 2,098 2,154
2.6204 0 2.624 (10.781) 111.051)
Net Ren:sl Incc~c 197,595 202.470 207.466 212,586
PROPERTY OPERATING COSTS:
AdminIstratIve Expenrw
Office Supplies 6 Equipment Prcqram Service5
Pwroll Serricw Van Swiccs
Telephone/Answering Service
Auto Ex~ww Training & Tr*YeI MISC. Admin~strtlive Eapcnse htwketing E~pmnsm: Adrbrbsin(
Proi*csional Fees: Property t.tans#smanr Fees 130.00 iU,~rlO 12.825 13.274 13.739
ua*q h Commissws SO Imo cl 0 0 ‘.egal Fee5 450 /mo 764 791 a13
Auditmg Expenx $300 imo. 4,581 4,74: 4.907 Utilities: - Electricity (units) Gts lun~tll W&r rnd~Smer (Unds) P~yroll/Pqroll Tans: Salarler.Manager Salsries.Assis.tanl Mamgw Salarics.Adminirtrrtrro
SaIxias.Maintenance SJpewiscr Ss’aries+taintsnance Perswrc.
Employee Apwtments PayroB Tarus
Workers Compmratkm Health lnaurancefOtr.er Bmalits
Contract Senius: Ertarmmrting Trash Removal Security Patrol
Buildm~/Grcunds Mamtentnce
JanitMI~i Contract Repav Contracts Elevator & Other Equipmrnl Cl.animg L nacardlg: Painting St.pplies
Grounds Supplies Retlairs a htaintenanco: Rapairs & Maintenance General
Facilities Service3
TOTAL VARIABLE COSTS
Talcs I tnrunnc.:
Real Property Tax Assessment Director’s I Officrr’s Insurance
Misc Taras~L~canrrslPorm~~s Property Ins”,tnce Fidelity 8ond Insurance
Ground Lease Payment
.
TOTAL FIXED COSTS
TOTAL OPERATING COSTS
NET OPERATING INCOME:
CASH FLOW FROM OPERATIONS: Net Opcratina Income
[ YEAR 1
S:OO imo. 1.527 I.580 SO /ma 0 0 125 /ma 362 395 so /mo. 0 0 $100 Imo. 1.527 1,580 $50 imo. 760 79: $23 hno. 382 335 f15 /mo. 223 237
1.635
40: 0 1.635
a19 409 245
1,692 0 423 0 i.692 848 423 236
$15 /ma 229 237 24s 254
14.220 0
5.E
1433 lulno 1.851 I.916 i .9a3 2.052 $058 lulrn0 24a 257 266 275 $16.67 /u/m0 7.126 7,375 7.633 7,900
Sl.SCC ho. 24.428 so /no. 0 so /no. 0 so f110. 0 so /cm. 0 so /no. 0 9.020% 2.203 a a2cs 2.350 $250 Ima 3.016
25,293 0 0 0 0
2,28Y 2.432 3.950
26,168 0
i 0 0 2.360 2.517 4.088
27,004 0 0 0 0 0 2,443 2.605 4.231
$50 Irn.3. 764 $10.88 /uino 6.361 SO /mo. 0 s10.00 /u/m0 4.276 SS.00 him0 2.137 s15.w hJn10 6.413 so /no. 0
6.Z 0 4.426 2.212 6.637 0
819 848 6 814 7,052 0 0 4,591 4.741 2.283 2.369 6.869 7,109 0 0
5500 juino fc.00 luh0
s10.00 iUlrn0
2.137 2.212 2,289 2,369 I.710 1.770 1.832 1.896
4.276 4,426 4.581 4,741
e 9 10 11
$0 /mm 0 0 0 0
J2.614 lusft 93.306 96,573 99.93 103.M8
$9 /unit 4.006 4.146 4.291 4.44; 350 imo. 764 79; 819 848 sa im0. 128 132 137 142 $250 /umt 8.906 9,zla 9.541 9375 517 IrnO. 254 263 272 262 0 0 0 0 0
14.058 14550 EC50 15,588
53,008 lumt 107.364 111.123 115.011 119.036
90,230 9!,347 92.455 93,550
90.230 91.347 52,455 93.550 RecslacemeN Reserve $250 CASH FLOW AVAIUBLE FOR DEBT SERVICE Debt Service. Fiat Trust Deed 503.510 Cash ilw Aiter Debt Serwce
Operattng Reserve 2 00% Gensrai Partner Asset Mp1 ice 10000 per yr. RDA Loan Payment 75.00% CASH FLOW AVAIlABLE rOR DISTRIBUTION
7.000 7.000 7.000 00 93.230 84.347 85.455 8250 (48.616) 148.616) @6,616) (48.616) u 34.614 37,934
ClO.00:) (10,oo:) (lO.& (10.00:) f18.461) L9.298 (20.1291 (20,950) 6.154 6.433 6.7:O 6.983
--.--_
Beginning Principal Amount current Yew Interest Gwurt Yerr Payment
Endvg Balance Balama trtor 32 yealz
484.951 481.039 476.171 470.328 3% 14.549 14.431 14,285 14.110 (18.461) (19.298) (20.129) (20.950) 581.039 476.171 470.326 463.487
!,[1y, 2;. :;;; i:t;Ftl SE3:F.E ;.:.E:::E: . . ..-y- JO. I: * ’ F. i,:r : i’ 1_
/- -h
MARIANO APARTMENTS
PROlECT CASH FLOW
RENTAL RLVVLNUCS:
Gross Potential Rrnt L.wndy/O:her stalf Renlal Units Inrrra% Earnmgs on apvst.ng Ros
V~csncy Allowance
224.335 229.943 235.692 241,564 55.00 21204 2;259 2,315 2.373 ” ” n .o
5.00%
2.62; 2,625 2.62a 2 624
(1:.327) (11.610) (!1.9M)) U2.198~
Net RenW l”Comc 217,536 223.216 229.73 1 234.363
PROPLRN OPERATING COSTS:
s:oo /r.c. 1,751 1.812 1.875
SO :rc. 0 0 0 s25 1-t-c. 438 453 A69 so h-0. 0 0 0
1103 ho 1.751 1,812 1.875 153 lm3. 879 909 94i
125 :l?o. 433 453 469 s:5 /no 263 272 262
1.941 0 435
1.94: 974
485 292
si5 IIn? 263 272 282 292
14.7:a
87: 5.257
15.253 IS.766 0 0 909 941 5,441 5.631
:6.3:5
97: 5.826
2.124 2.199 2.275 2,355
285 295 305 316 8.177 8,463 8.759 9,066
26,032
0 0 0 0 0
2.528
2.697 l.379
29,013 0
i 0 C 2.617
2.791
4.532
30.026 31,079
0 0 0 0
0 0
0 0 0 0 2,709 2.803
2.869 2.990
4,631 4,555
550 Irrc. 578 514 88 :.l.‘ma 7,299 so /TJ. 0 slO.OO :uI.rcc 4.937 15.00 /U/TO 2,452 515.co fYlr(-0 7.358 0
909 7.554 0
5.079 2.538
7.616 0
7.:: 0
5,257 2.627
7,883 0
974 8.092 0
5,441 2,719
8.159 0
2.452 1,962
4.907
2538 2.031
5.c79
2.627 2.719
2.102 2176
6,257 5,441
Adminirtnt~vc Expenses: Oflicc Supplies 6. Lquipment Ptqram Services Pwroll Services Vri Ssrricrr Tolcphane/Anrwxin~ Serwce Au:0 Exoense
Train:ng 6. Travel Misc. Administrative Ex~cnse
Marketing tipens.:
Advertwng Prohssional fees:
Proprny Management Fees LearrIg L Com~isr~ons Legal Fees Atditinq Erponse
Ulilikes: Elsclriclty (umtr) Gas (units) W&f andkewer (Units)
Pa~mll/Panoll Tans: ~s.l.r&.t.n.ger
Salaries.Assistnnt Manager S~laries.Adminisl~~tive
Sa:aries.Maintensnce Swcrviscr
Sa:aricsMaintenance Ptrsor.ne. Employo~ Apartmwts
Paur0.l Tucr
Wdrkers Conpensation Health I”NJra”ce/0uwr Scne!rts
530.00 I u/m3 SO Imo. s5c ho. 13oc i’lllO.
56 33 iu/rm so 58 /u/m0 S16.C Iu!mcI
$1.600 /no. SC ,170. so /no. IO ;mo. so imo. so /ma. 9.020%
8.824LT 3250 ,mc.
contract Servicer: Extcrminz:in~ Trash Remoral
Seoknty ParrDl Building/Grounds Maintenance
Janitorial Contract Repair cmtfactr EGvator & Other Ewipment Claaniog 6 Dasaratin~ Painling Supplies
Grounds %pplies Repair8 P Maintenance:
50 rmo
55.00 IdTC
14.co h/W
210.00 /“.%.a __ .Repsiri L Maintmanca Gmerol Facilities Services so /ma. 0 D 0 0
$Z.bU /unit to7.072 1?0.8?9 114.699 118,715 TOTAL VARIABLE COSTS
Taxes I Inrurancr:
Real property Tax Assessment Directors & Ofkcafr insurance
#Misc Taxes/Licenses/Permi:s Property :nsurarlcc
fidelity Bond lnwranc~
59 /unit 1.596 0.757 4.923 5.095
550 /iTo. 878 9c9 941 974 I8 /ma 147 152 157 162 5250 /unit 10.221 10,579 IO.949 1 i.332 $17 /mo. 292 x)2 313 324
0 0 0 0 0
16.134 16.699 17.283 17.887
53.008 /unit 123.206 127.519 131.962 136.602
94.629 95.698 ~ %.7C9 97.781
Gmund L;are Paymant
TOTAL FIXED COSTS
TOTAL OPERATING COSTS
NEt- OPERATING INCOME:
CASH FLOW FROM OPERATtONS:
Net Operating Income Acplacemeflt Re5erw 1250 u,SH FLOW AVAILABLE FOR DIRT SERVICE Debt Service. First Trust Deed 5c3.510 Cash Flow Alter Debt Service
Operating Resew 2.004; Gened Partner Asset hlg: Fee 10000 Pll yr. UDA Loan Paymenr ij.OOF. CASH FLOW AVAILABLE FOR DtSTRlBUTtON
94.629 95.698 90.749 97.762 7.000 7.000 7.000 7.000 87,629 88.699 e9.743 90.781 (48.616) (48.616) (48.616)
39.013 (461~ AD.cs2 41.133 42.165 3 0
~10,000) :lo.ooo) (10.00:) ,lO.& :2 1.760) (22.561: (23.350) 7.253 7,520 7.753 (24.:231 8.C4:
Beg~nanq Principal Amount Curren1 Year Interest current Yea1 payment Ending RallnCe Ellrnce after SLyears
463,4S? 455.632 446,739 436.791 3% :3,905 i3,669 13.AD2 13.1w (21.780: (22.561) (23.350) (25.n3) 4SS,632 =6,739 436.791 425.772
I4
f,ity, 27, !;;; ;: ZEF!,l $E:?“:EE F;.F.:525 50, 25;: F. E/I:
MARIANO APARTMEWS -Fad<
PROJEtf CASH FLOW
state Ta1 CredllS
[ YEAR 1
RENTAL RNLNULS: Gross Po!cntial Rent
LawdrylOther SUff Rental Units Intare~t Earnings on Oprratmg RPS
vacmcy Allouance s.ooss
247.624 253.8:5 260.160 260.664 2,432 2.493 2,555 2.619 0 0 0 2.624 2.62: 2,624 2,624 (12,503) 112.8151 !I3 l36> 113.464)
Net Rmtal lnccmc 240.177 246.117 252.203 256.443
PROPERTY OPERATING COSTS: Adminislratirs f~penr*c: Oflice Supplies 6 Eauipnent coo /ma. 2.009 2.079 Program Services $0 Ima. 0 0 Payroll &vices 525 IrnC. 502 520
Van Swain $0 i-rc. 0 0 Te:ephone/Answcrmg Serwce 5100 me. 2.009 2,079 Auto Emense 130 Ima 1.038 1.043 Tninmg I Travel $25 ~rrm. 502 520
Misc. Adminirfralive Expenrs $15 /ma. 302 313
Marketing Expmse: Adverti,in8 Prolersionll Faes:
Property Managemmt Fess L.sGlg b Commissions Legal G3.s Aud;ting Expense Utilities:
Electricity (units) Gas (tmts)
Water and Sewer (Units) PayrolllP~yroll Taxer: SalariesAlan;mger
Sataries~Asfislanf Manager SalrrlerAdminirtrative
S~lsncs%bintenancc Supervisor SalarierA4ainlenance Pwronnrl
Employer Apartmom Payroll Tares
Worws tompensation
Health InsurancelOlher Ben&it5 conrraa Scnlca: Exwminrting
Trash Removal
Security Patrol Building/Grounds htaintenanx Janiwrisl Contracl
Repair Contracts
Elwa:or 6. Other Eauipmrnt Cleaning 6 Dwor&w:
Paintlw Supplies Grounds Supplier
Repairs & Mahlenw~ce: Repairs & Maintenonca Gwwal FaCilitler Sowlcer
115 frw. 302 3:3 324 335
so 00 Adms so /mo. (650 /mo. s3oc :mo.
16.669 0
I .005 6,032
17.wo 18.092 16.725 0 0 0 l,OS3 1.080 1.116 6.242 6.462 6,686
$4.33 io4'no 2.437 2.522 2.610 2.701 SO.58 Ab'no 327 333 350 362 $16.67 /u/no 9.383 9.?11 10.051 10.403
$1.600 /n-a. SO fmo. so /mo. $0 /mo. so In%. so /ma. 9.020% 8.824% $253 iry.0.
32.167
: 0
: 2.991 3.094 5.025
33.293 0
: 0 0 3.003 3.203 5.201
34.456
: 0 0
3,1080 3.3s 5.383
35.664 0 0
: 0 3.217 3.431 6.571
$30 ha. 514.86 lu/rnc so ho. $10.00 /ulmc! ss.oc :c/mo s:s.oo lclmo so /no.
I.008 a.3:5
5,63: 2,814 8.44 0
1.043 1,080 1.118 6,668 8.971 9,285 0 0 0 5.826 6.032 6.243 2.912 3.014 3.1:9 8.7bl 9.047 9.364 0 0 0
s5.w Id170 SC.00 /u/m0 2,912 3.014 3.119 2.33: 2.413 2.497
210.00 .QJ’no
2.614 2,252
5.631 5,826 6.032 6,243
TOTAL VARUELE COSTS
$0 Imo. 0 0 0 0
$2.614 /unit 122,867 127,167 131.620 136.224
Twos L Insurance:
Real Property Tax Assessment Director’s I Dlficefa Inruranca Misc Tarn/Liccascr/Permits
Propwty Insura%e kddity Bond Ir?surar.ce
Ground Lease Payment
19 /un1: 5.273 5,458 5.649 5.847 350 iTG. 1.008 1.043 1,080 ma s8 /,no. 168 I74 180 166 $250 /unit 11.729 12,:40 12.565 1a,w5 Si? /mu. 335 347 359 372 0 0 0 0 0
TOTAL FIXED COSTS 16.513 i9.162 19,633 20528
TOTAL OPERATtNG COSTS f3.M)8 /wit 141.360 146.329 151,053 156.752
NETOPERATING INCOME: 96.796 99.783 100.750 101.691
CASH FLOW FROM OPERATIONS: Net Operaldng Income 98.796 99,768 :00.750 101.691
55.00
16 17 38 19
2.152 2.227
5380 55; 0 0 2,152 2.227 1,080 1.11a 536 557 32: 335
Rtplxrmcnt liercrve $250 7.000 7,000 7,000 7.000 CASH FLOW AVAILABLE FOR DEBT SERVICE 91.796 92,786 93,750 94.691 Ocbt Service. First Trust Deed 533,510 (48.616) W616) (LE.616) Cash Flow After Oebt Scrvica W3.616L 43.180 44,172 45.134 46.075 Ooeraline Reserve 2.00% 0 0 0 0 Gbwal &tner Asset Mat Fet 10000 Per Y’. -- RDA Loan Payment (lO.oOa, 75.Wqg (24.865) CASH FLOW AVAIUBLL FOR DlST‘tlBUTtON 8.295
(lO.Wi) (10,000) (25.629) (26,350) a.>43 6.783
-r LoAN ANALYSIS
Beginning Principrl Amount Current rear Interest Current Year Payment
Ending Sal&~ce Balance alw 32yesrs
425.i72 413,660 4w.440 386,103 3% 12.773 12.410 12.013 11.583 (24.805) (25.629) (26.350) (27.056) 4:3.660 AW.Q40 306.103 370.630
f&l. 2:. !CE5 S::;F!S SES2.E F;E:SEES 90, 2:T: F. 7/::
1 YEAR 1 20 21 22 23
RENTAL REVENUES:
Gross Potenhal Rent LAuwJrymther staff Rental Units Lltu*st Earning3 on Opwrtlng Res.
Vacmy Al.mvance
Net Rental lncorne 264,Ea 271.393 278.113 285.000
PROPERTY OPERATING COSTS:
Admlnlrbatiw Expmrer: Oflice Supplies & Equipmonr
Program Swvices Payroll services van services
Te’ephOne/An.wering Smite Au10 Erprnrr
Traming 64 Trawl
Misc. AdminIstratIve Gpense Marketing Gpensc: Adnrtising Proksrlonal Fees: Pmper(y Mat~wrmnt Fees
baring h Commissions Legal Fees &dating %pwae Utilities: Elnctricitv [units)
Gar(al,iri ' Water and Swar (Units)
PqrdllPIyroll Taxer:
Salwies.Msnager Salarks-Assidant Managw
S.lali*s.Adminirtrat~n Salarin.Maintenance Supervisor Salarks.Ma’ntmawe Personnel Employee Apartmmt. PJyrDll 7aror
Workers Compensaon Health Insurancs/OtNar Bawlits
contracl swvicsr:
$100 Imo. 2.305 so ,mo. 0 125 ho. 576 so II-m. 0
$100 /lnP. 2.305 $50 :mo. 1,:57
125 /ma. 576
SiS /rllO. 947
2.356
59: 0
2.386 I.197
596 359
2.470
0 617
2.47: 1,239
617 372
2.556
63:
0 2,556
1.282
639 385
115 /mo. 347 359 372 385
s3o.co /u/l-o 19,380 20,058 20,760 21.487
40 Irm. 0 0 0 0 $53 /mo 1.157 1.197 I.239 1.282
SJOO I.TC. 6.922 7.164 7,415 7,675
SA33 Admc 2,796 2.894 2.995 3.100
SO.58 I1ls.a 375 388 402 416 516.67 lul~rr) 10,767 11,X4 II,534 11.336
JL6CO km. 36 912 38.204 SO /mo. 0 0
SO /mm 0 0
I0 Imo. 0 0 SO Imo. 0 0 so Ano. 0 0 9.020% 3,329 3.46 8.624% 3,551 3.675
S250 /ma 5,766 5.96a
39,541
:
0 0
3.56:
3.804
6.177
40,925
z 0 0
0 3.691
3.937
6B93
Gxrminating Trash Removal Security Patrol
GuildinglGrounds Msmtcnancc Janitorial Contract Repair contract¶
Elevator 6 Gtser Equipment Ckaning C Decontinc: Paintmg Supplies
Grounds Supplies Repairs 6 Mainknmce: Repairs & Maintenance General Fatilittes Sorvicos
TOTAL VARIABLE COSTS
Taxer & Inauranca:
RIII Property Tlu Assessmen:
Dwector’r L owicer’s Insurance Misc Tsx~rlLicensrslPsrmitr
Property InsuraKP Fidelity Band ttuwance
traund Lease Paymcmt
TOTAL rIXED COSTS
TOTAL O?EMTlNG COSTS
NFT OPERATING INCOME:
55.CO
5.00%
273,331 280.164 287,168 294.347 2.684 2.751 2,820 2,891 2.2 2,624 0 2.624 0 2,624 0
(13.801) 04.146) (14.499) (14.8621
$50 ,rno. 1.157 1.197 1.239 1,282 514.88 /u/no 9.610 9.946 10.234 10.654
so Irm. 0 0 0 0 510.00 /ukro K.b62 6.688 6.922 7.164
ss.00 /u/P3 3.228 3.341 3,458 3.579 S15.00 /u/m0 9,692 10.031 10,382 10,745
$0 ho. 0 0 0 0
s5.w iu/mo
J4.00 /u/m0
s10.00 /u/ma
3,228 3.341 3.458 2.5&t 2.674 2.758
6.462 6.688 6,922 n
3,579 2.665
7,164 0 SO /ma u ”
$2,614 /unit 113.991 145,923 151.034 156.318
$9 /unit 6,052 6,264 6,483 6,710 SO ho. 1.157 * I.197 1.239 1.282
$8 imo. 193 200 207 214 1250 Amt 13.460 13.931 IO.019 14.924
$17 Imo. 38.5 33Q 412 426 0 0 0 0 0
21.247 21.990 22.760 23.556
13,OO8 ILnit 162.236 167,913 173.794 179,870
102.599 103.480 104.319 105,125
CASH FLOW fROM OPEPATIONS:
Net Operating Income 102,599 103.480 104.319 105.125 ReDlaSemmt Reserre $250 7,000 7,000 7,000 7.000 CASH FLOW AVAILABLE FOR DEBT SERVKE 95.599 96.480 97 319 q*.t15 Debt Serwce First Trust Deed Cash Flow Atier Oebt Swics 503,510 __,.__ __, .__ (ha.616) (486.616) 45.983 47.861
_. .___ _-,_-- (48.616) fA8.6161 48.703 69 509 ,~ operating Resarve Z.OD% 0 0 0 0 General Pnr.ner Ass: Ngl Fee : 3000 oer Yr. no.moI f10.0001 flO.OW1 llO.WZl, - ROA Loan Payment 75.0070 i2717Jsj i ~’ 28.398j . _ _ , (29.027) USN FLOW AVAIUIBLE FOR DISI-RIBUfION (29.632) 9.246 9,466 9.676 9.877
Beginning Principal Anount currant Yea, lnkrrst currenr Yeat Payment
Ending Balance Salsna aRer32years
370.650 35a.012 336,234 317,294 11.119 10,620 io.oa7 9.519 (27.738) (28.398) (29.027). (29.632) 354.012 336,234 317.294 297.I80
f,f1?. 2:. !SSS i : s E F M $E!:XE Fi.E:YEF.S il’o, 5;7i F. E/!Z
MA IA OAPARTMLNTS -fedem P State Tar Credlrs FIXul*n,
[: WAR ] 24 25 26 27
301,706 309.249 316.980 324.905
2,963 3,037 3,113 3.191
2,6204 0 0 . 2.624 2,624 2.620
(15.233) (15.614) (:6,005) (16.405)
RENTAL REVENUES:
Gross Potultlsl Rent Ltundry/Olher Stan Rmtal Unilr Interest Earnings on Operating Rss.
Vacancy Allwanc.?
15-w
SW6
Net RanIll IncOrn* 292.040 299.296 306.712 314,315
PROPERTY OPERATING COSTS: Adminislnlir~ tpmrar:
orfic.5 Supolin 6 Equtpment Program Sewues Payroll Swvicrs van serv;ces Tdrphoo~/Ansvvwmg Service Ada Expenno
Trrlqina L Travel
Misc. Administratre Expense Mark&ng tpensa:
Advert&sing ProfessIonal Fees:
PrODe~ Management Fees
Leasing & Comm8sslonr Legal Faes Audatmg hDC,,Se Utilities: LIUWb5ly (umts) Gas (uPit
Water and Sewer (Units) Paw0ll/P~rmlt Taxas:
Iloo km.
SO /mo. $25 Imz. so /mc. I100 /mo. sso tmc. szs m3.
1:s Imo.
2.645
667 0 2.645 1.327 661
399
2.738 0 684 0
2,736 1.373 684
412
2.834
708” 0
2.634 1,421
708
426
2.933 0 733 0
2.933 IA?1
733
441
$15 imo. 412 426 441
430.00 lUdrn3
$0 ,mo. IS0 /mo.
1300 Imo.
22,239 23.017 23,323
0 0 0 1.327 1.373 1.42:
6.222 8.510
24.657
0 1,471
8.808
54.33 /L/m0 55.50 ILhw $16.67 ,u/ma
3.321
:2,z
3.557 478
13,699
3.209 3.437 431 462 Ii.356 14.236
-G,357 45,373 0 0 so ho. 0 0 so ,no. 0 a
so /no. 0 0 0 0 3.82: 4.093 4.075 4.365 6.617 7.089
Z.327 1.421 1:,027 11,812 0 0
7.415 7.944 3,704 3,968 11.121 IL.913 0 0
3.704 3.%6 2.965 3.176
7,944 so In-o. 0 0 0 0
$2.614 lunc . 161,719 167.450 173,312 179,378
63*833 0
0 0
0 0 3.954
4,217
6.849
l.373 11,413 0
7.675
3.534 11.510
0
3,a34 3,069
7.675
46.961 0
:
0 0
4,236
4.518
7,337
1,471 12,225
0
a,222 4,107 12.330
0
4.107 38207
6,222
$:.6OC /ma. SC Imo.
so /mo. 9.020%
6.82Cc.
5250 /ml
150 imo. Sli.88 ,utmrJ
$0 mm
SlO.00 fUhl0 55.00 ,“lrlO
115.00 IlJlPlO so ,mc..
s5.00 /u/m0 s4.00 /uho
510.00 AI/m0 7.415
Salaries-Administrative -
Salsries-Maintonance SUQeNisor Salrriea.Maintcnance Personnel Emplcyaa Aprnmsnts
Pavrol. Taxer
w&en ComDensation
Health Ins~rancelbther Bsceflts Con1rac.1 Smkas:
Exterminating hash Rsmowl SKunty Patrol BuilaiwglCrwnds Maintenance Janitorial Contract Repair Contrwta
Elevator&Other Equipment
CleaninS L Oecwrtingz Painting Supplies
Grouncs Sup$ier Repairs & Maintenance:
‘Repairs L Maintenance General Faciktiar Sorvicsr
TOTAL VARIABLE COSTS
Tarra a In*urance: Real Prooa’ty Tax Assessment
Dirrctor’l & onkd Insunnc* Mix. laxcr/Licenrlls/Permiu Property l”s”rance
Fidelity Bond insurw~nce Ground Laass Paymm
s9 :uott 6.945 7.138 7 44.0 7,?oo IS0 /me. 1.327 1.373 1.421 1.471
$8 Ir.0. 2iL 229 237 245 1250 /unt 15.f.46 15,967 16,547 17,126 117 /l?o. -ML 456 472 489
0 -. 0 0 0 0
TOTAL FIXED CO5TS
TOTAL OPERATING COSTS
NET OPERATING INCOME:
24,380 25.233 26.117 27.03 1
53.008 /unit 1%,!69 192,683 199.429 206.409
105.691 106.613 107.283 107.906
CASH FLOW FROM OPERATIONS:
Net OPeratins kcome RCDlaCemOnt Raserve $250 CASH fLOW AVAILABLE FOR DEBT SERVICE Debt Sewice First Trust Dead 503,510 Cash flow Attear Debt Sewica Operating Reserve 2.0% Genera: Pnrtner Asset Mgt Fee 10000 P’.’ Y’. RDA Loan Payment 75.00% CASH FLOW AVAIUOLE FOR OISTRIBtJTtON
105.831 lC6.615 107.253 107.9w 7.000 7.000 7.000 7.000 98.691 99,613 ico.283 100,906 (e.616: (46.616) f48.616) (48,616~ 50.275 50.997 51,667 52.290
CO& ,m,oo:> (lO.Ooi, (?O.OCE)
GO.2061 (30,74.7) (31.250) 10,069 10.249 (31.7171 10.417 10.572
EaginniFg Pkcipil Amount 297,180 275.869 253.419 229.77:
Current rear hlteres: 32 a.915 a.277 7.603 6.893 currant rear PPymOnI C.O.206) GO.7471 (3 I.2501 ci1.7171 Endmg Balance Bela~e after 32 years 275.%9 253.419 229.771’ ii4;946.
liey. 2:. iCSE 2: 59FM SES:EE F.:.E'TSEE3 :.Jo, 2;;; F. xc
PROJECY CASH FLOW
RENTAL REVENUES: QlOSl Potentill Re0t
Laundry/Olhcr Staf( Rs.+al Urit: lrtercrt Earnings on Opwatmg Res.
Vacmcy Allmvanc~ 5.00%
333.028 %1.354 349,888 458.635
3 271 3,353 3.637 3.523 0 0 0 0
2.624 2.624 2.624 2,624 116.815) (17.2351 (17,666) (18 108)
Net Ru~c# lncomr 322.108 330.096 33a,283 346.674
PROPERTY OPERATING COSTS: Adminitlmtiw~ Expenses:
Otfice Supplies 8 EqJipr.ent
Program Servicer Payroll selvlcn
van SoniceY Telephone/Anmerilrg Service A”10 EXpmlQ Training b. Travel
Misc, Admirwrativc Expense ’
Marketing @ewe: Awwtiting
Profrs~lonrl Fear:
Property Managemen: Fees Leasrng 6 Comm0ssions
Legal Fees Auditing Ellpen~
Utllllln: Electricity (units) Gas Wits) Water snd Sewer (Units) P~yrall/Payroll Tales: Salarios.Manqer
Sslaries.Assistant Maraner
$100 .!mo.
so /ma. $25 hlo. $0 ho. 5100 Imo.
s50 /no. $25 11-O.
$15 Imo.
3.036
0 759
3.03: 1.522 759
456
3,142
0 786 0
3,142
I.575 7%
472
3,252
81:
3.25: 1.630 814
499
3,366
8402 0
3,366 1.687 a42
506
$15 /no. 456 472 489 SC6
$30.00 Itdmo
so /ma. 350 /mo 5300 /ma
25.520 26.413 27.337 28.292
0 a 0 0 1,522 1,575 1.630 1,687
9 116 9,435 9,765 10,107
IQ.33 IY~rnO 3.681 3,810 3.403 4.081
SO.56 /u/m0 49s 512 53a 549 $16.67 /wmo 14,178 14,674 15.!88 15,720
$1.600 /ma
SO /ma $0 ho.
$0 /ma SO /ma $0 /mo. 9.020% 8.824% $250 In-o.
48.605 50.306 52.C67
0 0 0
0” 0” i 0 0 0
0 C 0 4.384 4.538 4.6% 4.676 4.839 5.009
7.594 7.10 8,135
53.889 0 0 0
i 4.861
5.164
8.420
Seluibt-Maintmrnce Pekrne. Employee Apartments
Payon n-n Worlsn Compemrtion
Health Insursn~elGttw Bcnefi:s
Contract Services: Extcrminrting
Trash Removal
Securitv Patrol BwldmilCrcunds Maintenance Jaorteridl Contract Repair Contracts
Elevator a Other Ewipmont Clnning 6 Drontingz Pamfing sUppI&
Grounds Scoolies Repairs 4 MaiAAsa;
l&pairs 6 Maintanance Generat Facilities Servicer
TOTAL VARUOLE COSTS
Taxes & Inrunnu; Roll Prcprrty Tax Assessmert
OirecteTs 6 Cfticer’s lnsurance~
Ulsc Tax&LlcameuParm~tr Property InsurMcI Fidrlitv Bond lnwr~nce Ground L;.sr Paymenl
TOTAL FIXED COSTS
TOTAL OPERATING COSTS
NET OPERATING INCOME:
( YEAR ] 28 29 30 1 31
fS.co
153 /ma. 1.522
514.88 /u/ma 12.653 so ,‘rnO. 0
510.00 /U/TO 8.510 s5.00 /u/no 4.251 515.00 IU1-rC 50 Inn.
55.00 /u/m0 $4.00 lUlrw2
s10.00 :uhro
12.762 0
1.575 1,630 1.687
13.0% !3.554 14028 0 0 0
8.808 9.116 9,435
4.400 4,554 4,713
13.209 13,671 14.149
0 0 0
4.251 4.400 4.5% 3.M2 3,521 3,644
8.510 a.aoa 9.116
4.713
3.772
9,435 so IIn,. 0 0 0 0
$2.614 /wit iS5.656 :92.154 198,879 205,839
$9 /unit 7.970 8.249 8.538 w37 $50 ,mc. 1,522 1575 1.630 1.687
$8 /ma. 254 263 272 282
$250 hit 17.725 la.35 18.987 19.652 $17 Imo. 506 524 542 561
0 0 0 0 0
27.977 28.956 29.969 32.019
53.008 /unit 213.633 22?.110 228.a40 236.858
lOa.A75 108.986 109.634 109.816
CASH FLOW FROM OPERATIONS: Net Operatic lrrcomc
Reulrcenunt Resew $250 CASH FLOW AVAiLABLE FOR DEBT SERVICE
Debt Setice. First Trust Deed 503.510 Cash FIcw After Debt Scwce
OPeratlw Reserve 2.00% Genwar Panner Arse1 Mgt Fee 1cow per yr. RDA Loan Payment 75.00% CASH FLOW AVAILABLE FOR olSTRI8UTION
108.475 ioa,s% 7.600 7.000 101.475 101,986 (48.616) (48.616) 52.859 53.370
(*o.oo:~ ~10.00:) 32.144 (32.528) 10.715 IO.843
109,434 7.Ooo 102.43d (46.616! 53.818
109,616
7.000 102,916
0 102.816
(10,oo:) (69.6121 23.204
BEQEKLOPMENT AGENCY LOAN ANAL-
Begiwkg Principal Amount currenr YDlf Inrcresr Current Yew Paymcct Ending Balance
Balance atIer 32 years
39.
200.946 :7a.951 151,792 123,482 6,x8 5.369 A.534 3.704 (32.:441 (32.528) 02.864) (69.612) :x951 :51.792 123,482 si.574
hi&?. 2:. :CEC i: 52PM SE3”F.E F.:.E”SEEZ 10. 5;;: F. 1xc
Gross Polenl~al Rent Laundry/Other SalI llsntrr Units Intcrnt Earnings on Operating Rcs.
Vacancy Allownca
367,601 376,791 366,211 395.666
3,6l1 3.701 3,794 3.819 2.62: 2.624 0 2,62: 2.624 0
(18.561) (19,025) [19.500) (19.988~
Net Rental Income 355.275 364.091 373.129
PROPERTY OPERATING COSTS: Adminbtmtira fipmsrr:
Offica Supplies 4 Equipmelt Program Services
Payroll Semces vsn sewices Telephor&A(lswering Service Auto E..pensr Training k Travel
Misc. MmiPirtratw Expense
$lCO Imo. 3.a4 3.606 30 InlO. 0 0
$25 Imo. 871 901 30 /m-a. 0 0
NC0 /ml. 3.ba4 3.606 $50 /ma 1.746 1.607 $25 ho. a71 901 $15 /mo 524 542
3.732
93: 0
3,732 1.670 933 561 Mwhetin6 Erpensa: Advertitiw ProhrJlonal Ferr:
Property MsnaBement Fees
Leasing 4 C0mmwior.s
Legal Fees AUditinP h9enSs
1 YEAR ]
Utiliti*s: -
Electric?y (units) Gas (umts) Water and Sewer (Units)
PayrolllPayroll Tare;: samwsAtmaaer SalrrmAssislant Manager Salariss.Adminirtrativc Salarier+laintenancc Supewsor
Salaries.Mamtenance Perswnol Em~lovtc A~arimrnta
Payroll Taxer Workers Compensation
He&h Insurance/Other’Bonali:, contrast Swvic*r: Extsrminating
Tnsh Romaval
sdcurlty PalmI Building/Grounds Maintenance Janitorial Contract
Repair Contracts
Elwator &Other Equipment Cleaning k Oecoralin;: Paintine Supplies Ground; Supplier
Rwpalrr 4 Maintenance: Repairs 41 Maintenance General Facrlitirr Servicer
TOTlL VIAI4iuE COSTS
Tams 6 Insurance: Real Property Tar Assessment Oirecto<s L Officer’s Insurance
MSC TaresILxensesf Permits Property Insurance Fidelity Bond Inswa~e
Ground Lease Payment
TOTAL FIXED COSTS
TOTAL OPER4TING COSTS
NET OPERATING INCOME:
CASH FLOW FROM OPERATIONS: Net Operating lnmms
35X0
382.391
3.863 0 966
0
3.863 1.935 966 YJl
$15 hIlo. 524 542 561 661
330.w /u/T70 so /mc.
32 33 Ja 35
SM ITlC.
S300 Jmo.
$4.33 /“i-m 4.224 $0.58 /u/n?0 568
316.67 /u:ms 16.270
51.6CO Imo. so ho. 33 ho.
30 /Ino.
55.775
0 0
0 0 0 5.031 5,366
6.715
so /nro. so ino.
9.020% 8.824%
a250 /rro.
$50 imo.
Sl4.as :YI(M $0 :mno. $10.00 /u/m0
55.00 /J/m0
115.00 h?mo
so 170.
55.00 Amno $b.W ,'"lrnO
292a4 0 1.746 10461
1.746
14.519 0 9,765 4.876
14;644
0
4.87% 3.904
s10.00 /J/In0 9,765 -_
30.309 31.370 32.468 0 0 0
1.607 1.670 1.935
10.827 11,206 11.596
4.372
16,::
4.525
609
17.428
4,683
630
16.038
47,727 0
i
0 0 5.207 5.553
9.020
59.7&7 0 0
:
5.38: 5,746
9,336
61.838 0
0 0
: 5.578 5,949 9,663
1 so7
15.027
0 10.107
5.049
15,157
0
1.870
15.553
:0.46:
5.226
15.687
0
:.935 16.097 0
10.627
5.409 16,236 0 '*
5.049 4.041
10.107
5.226 4.m
10.461
5,409 4,328
10.827
so Inm. 0 0 ” ”
St.614 /ini: 213.043 220.498 228.216 236.203
$9 /xur 9.146 9.466 9.797 lO.lrO
ES0 ;iT,o. 1.746 1,807 l.a70 1.935
S imo. 292 302 313 324 $250 IA: 20.340 2L.052 21.789 22.552
$17 In-o. 561 601 622 644
0 0 0 0 0
32.105 33.228 34.392 35.595
53.008 lilvt 2~5.146 253.726 262.607 271.796
110,127 110.365 110.522 110.593
110.127 110.365 110.522 110.593 Replocemsnl Fmsrcre $250 7.000 7,wo 7.000 7.000
USN FLOW AVAIIABLE FOR DEBT SERVICE 103.127 103,365 l33.522 103.593
Debt Service . First Trust Deed 503.510 0 0 0 0 Can Flov After Debt Service 103.127 103.365 i03.527 103.593
operating Rerwva 2.00% 0 0 0 0 Gcrwsl Psriner As& Mpt Foe 10000 ,c, yr. (10.000) (10.000) (lO.WO) (10.ooo1 ROA Loan Payment 75.OC$ (69 845) (70,024) no. 141) CASH FLOW AVAIlABLE fOR DISTRIBUTION no.1951 23.262 23.341 23.380 23338
Bcgiwing Principai Amount 51,574 0 0 0 current Ywlr Interest 1.727 0 0 0 Current Year Payment (59.30:: 0 0 0
Ending Balance 0 0 0 0 Ealancc after 32 years
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- - EXHIBIT 3
HOUSING COMMISSION RESOLUTION NO. 99-005
THAT THE HOUSING COMMISSION RECOMMEND APPROVAL
TO THE CITY COUNCIL A COMMITMENT TO PROVIDE UP TO
$462,755 IN FINANCIAL ASSISTANCE WITH CONDITIONS FROM
THE CITY’S HOUSING TRUST FUND TO WAKELAND HOUSING
AND DEVELOPMENT CORPORATION FOR CONSTRUCTION OF
TWENTY-EIGHT AFFORDABLE APARTMENT UNITS IN ORDER
TO SATISFY THE REQUIREMENTS OF THE INCLUSIONARY
HOUSING ORDINANCE FOR THE MARIANO HOUSING
DEVELOPMENT.
APPLICANT: WAKELAND HOUSING & DEVELOPMENT
CORPORATION
CASE NO: SDP 97-16
WHEREAS, Standard Pacific Homes proposes to construct up to150 market rate single family
homes in a development commonly know as the Mariano Project; and
WHEREAS, the development of 150 market rate single family homes will require the
development of 27 housing units affordable to low income households as required by the City’s
Inclusionary Housing Ordinance, Chapter 21.85 of the Carlsbad Municipal Code, and;
WHEREAS, Wakeland Housing and Development Corporation has entered into an
agreement with Standard Pacific Homes to provide 28 apartment units, of which 27 shall be
affordable to lower income households as a means of satisfying the Inclusionary Housing
Ordinance requirements for the Mariano Project: and
WHEREAS, Wakeland Housing and Development Corporation has submitted a proposal
requesting the City provide financial assistance for the development of 27 apartment units affordable to
lower income households; and
WHEREAS, said Housing Commission did, on the 10” day of June, 1999, hold a public meeting
to consider said request for financial assistance; and
WHEREAS, upon hearing and considering all testimony, if any, of all persons desiring to be
heard, said Commission considered all factors relating to the request for financial assistance;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of
Carlsbad, California, as follows:
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1.
2.
3.
4.
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The above recitations are true and correct.
The request for City financial assistance for the Mariano Apartment Project is consistent
with the goals and objectives of the City of Carlsbad’s Housing Element, Consolidated
Plan, the Inclusionary Housing Ordinance, and the Carlsbad General Plan.
The request for City financial assistance will assist the affordable housing developer to
construct a total of 28, two and three bedroom affordable apartment units. The project,
therefore, has the ability to effectively serve the City’s housing needs and priorities as
expressed in the Housing Element and the Consolidated Plan.
That based on the information provided within the Housing Commission Staff Report
and testimony presented during the public meeting of the Housing Commission on June
10, 1999, and subject to conditions listed below, the Housing Commission hereby
ADOPTS Resolution No. 99-005, recommending APPROVAL to the City Council to
commit to provide up $462,755 in financial assistance with conditions from the City of
Carlsbad’s Housing Trust Fund to Wakeland Housing and Development Corporation for
the construction of twenty-eight (28) affordable apartment units to help satisfy the
requirements of the Inclusionary Housing Ordinance for the Mariano Project.
GENERAL CONDITIONS:
1.
7 <.
. .
. .
. .
. .
. .
. .
. .
. .
The Developer shall make good faith effort to pursue and receive an Affordable Housing Project
(AHP) loan from the Federal Home Loan Bank. The City’s financial assistance would be rescinded
if the developer does not make a good faith effort to obtain the AHP loan. The receipt of such AHP
funds, however, shall reduce the amount of the City’s financial assistance in an equal amount.
The Developer shall make a good faith effort to pursue and receive a refund of school fees from the
California Department of Housing and Community Development as provided for in Proposition 1A.
If it is adequately demonstrated to the City that the refund would have a negative impact on the
financing of the project, the City shall not require the applicant to receive such funding. The receipt
of any such funds, however, shall reduce the amount of the City’s financial assistance in an equal
amount.
ICRESO.NO.99-005
'AGE2
al
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3. If the developer receives additional tax credits or additional tax credit equity over and above
that stated with Exhibit 3 of the June 10, 1999, Housing Commission staff report, the amount of
the City’s financial assistance shall be reduced by an equal amount.
PASSED, APPROVED, AND ADOPTED at a meeting of the Housing Commission of the City
of Carlsbad, California, held on the lOti of June, 1999, by the following vote, to wit:
AYES: Chairperson Latas, Commissioners: Rose, Scarpelli and McNeill.
NOES: None.
ABSENT: None.
ABSTAIN: None.
ROY LATAS, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
DEBORAH K. FOUNTAIN
HOUSING AND REDEVELOPMENT DIRECTOR
HCRESO.NO.99-005
PAGE 3
TIE City of Caf&bAd Housing, AIM &dwEloprmv DEPARTMEN
A REPORT To TIE Houshc, CowmissioN
EXHIBIT 4
STAff: CRAiq Ruiz
MANAGEMENT ANALYST I
ITEM NO. 1
DATE: JUNE lo,1999
SUBJECT: MARIANO AFFORDABLE APARTMENT PROTECT - RECOMMENDATION
OF APPROVAL TO THE CITY COUNCIL TO COMMIT UP TO $462,755 IN
FINANCIAL ASSISTANCE WITH CONDITIONS FOR THE CONSTRUCTION
OF TWENTY-EIGHT AFFORDABLE APARTMENT UNITS IN ORDER TO
SATISFY THE REQUIREMENTS OF THE INCLUSIONARY HOUSING
ORDINANCE FOR THE MARIANO HOUSING DEVELOPMENT.
I. RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 99-005, recommending
APPROVAL to the City Council to conditionally provide up to $462,755 in financial
assistance from the City’s Housing Trust Fund to Wakeland Housing and Development
Corporation for construction of twenty-eight affordable apartment units in order to
satisfy the requirements of the Inclusionary Housing Ordinance for the Mariano
Housing Development.
II. PROJECT BACKGROUND
The Mariano Housing Development allows for the development of up to 150 single
family homes and a 27 unit affordable apartment development on 54 acres. In October
of 1997, the Housing Commission reviewed and recommended approval of a Site
Development PIan and the related Affordable Housing for the construction of the 27
unit affordable apartment project. At the October meeting, the applicant did not
request financial assistance for the project.
III. PROTECT DESCRIPTION
The original project called for the development of 27 units. The odd number of units
has posed some difficulties in the design and development of the project. To alleviate
these problems, the developer is proposing to construct 28 units. The addition of one
unit will require the Developer to receive approval of a Substantial Conformance
Application, which is currently being processed by the Planning Department.
The affordable apartment project will be located at the southeast corner of the future
extension of Aviara Parkway and Cobblestone Road. The proposal includes 16 two
bedroom units (57%) and 12 three bedroom units (43%). The project will also feature an
approximately 1,500 square foot recreation building and laundry facilities.
C
SDP 97-16 - MARIANO AFFORDABLE APARTMENT PROJECT
JUNE lo,1999 c
PAGE 2
In terms of affordability, the developer proposes to restrict the rents within the project
as follows: 1 unit at market rate; 18 units at 50% of Area Median Income (AMI); 7 units
at 38% of AM1 and 2 units at 30% of AMI. This project will, therefore, represent a very
low income affordable project.
The Developer is proposing to finance the project, in part, with proceeds from the 9%
tax credit program. In order to be eligible to receive the credits, the Developer must
submit an application with the California Tax Credit Allocation Committee (TCAC) by
July 1, 1999. As part of the TCAC application, the Developer must show evidence of
City financial participation. To satisfy this requirement, staff is recommending
conditional approval of the provision of financial assistance. Once the Developer has
received the tax credits from TCAC, staff will return with the loan agreement and
related documents for the review and action by the Housing Commission.
IV. DEVELOPMENT TEAM
The developer of the affordable project is Wakeland Housing and Development
Corporation, a non-profit developer. Wakeland is a newly formed non-profit
corporation and the Mariano project will be their first project. While Wakeland itself
has not developed an affordable housing project, the principals of the corporation have
developed several similar projects. Steve Kuptz, Chairman of Wakeland, previously
managed development of the Laurel Tree Apartments in the City of Carlsbad. Ken
Sauder, Wakeland’s Executive Director, managed the development of Cordova Village
Apartments, a 40 unit affordable housing development in the City of Chula Vista. The
architect for the project, Carlos Rodriguez of Rodriguez + Simon, was the architect for
the Laurel Tree and Ranch0 Carrillo Apartment projects. The builder and property
manager will be the Quatro Corporation. Quatro is currently the builder of the Laurel
Tree Apartments and will manage the project upon its completion.
V. FINANCIAL ASSISTANCE
A. Cost Reasonableness
The developer has provided a detailed development proforma for review by staff and
the Housing Commission (See Attachment 2). Since development costs are one of the
key variables deter mining the need for subsidies, it is important that those costs be
reasonable. At approximately $3.6 million, not including the cost of land, the average
unit cost of $128,000 is somewhat higher than with previous affordable multi-family
developments within the City. The higher cost per unit can mainly be attributed to the
fact that because this is a small development, there are fewer units in which to spread
the cost of development. When considered in this context, the higher cost per unit is not
out of line with previously approved projects in the City of Carlsbad.
SDP 97-16 - MARIANO AFFORDABLE APARTMENT PROJECT
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PAGE 3
B. Undue Gain
It is important that any financial assistance have the effect of making the units more
affordable and not creating undue gain for any party. The Developer will receive a
“Developer Fee” of $300,000, or approximately 8.3%of the project cost, absent the cost of
land. Staff feels that the developer fee is within acceptable limits for a project of this size
and affordability.
C. Subsidy Analysis
The Developer is proposing to finance the project with a combination of 9% tax credits,
a conventional first loan and a second loan funded by the City of Carlsbad. Under this
scenario, the developer would receive approximately $2.67 million in revenue through
the sale of the tax credits, $503,000 from a conventional loan, and City assistance
totaling a maximum of $462,755.
The developer of the market rate component of the Mariano Project, Standard Pacific
Housing, will be providing a graded site of approximately two acres. The subject site
has not been appraised and thus a value has not yet been established.
The following is a summary of the sources and uses of funds based on‘the estimated
development costs and the proposed financing structure. The developer’s detailed
proforma is attached as Exhibit 2:
PERMANENT SOURCES OF FUNDS
Tax Credit Investor Equity $2,627,119 $93,825
Conventional First Loan 503,510 17,982
City Contribution 462,755 16,527
Total Sources %3,593,3&I $128,333
PERMANENT USES OF FUNDS
Design & Engineering $219,180
Legal/Financial/Other Consultants 98,000
Permits & Fees 518,000
Direct Building Construction 1,867,847
Financing Costs 402,704
Marketing/Operations 35,000
Developer Fee 300,000
Contingency 152,653
Total Uses $3,593,384
% 7,828
3,500
16,500
86,709
14,382
1,250
10,714
5,452
$128,333,
-
SDP 97-16 - MARIANO AFFORDABLE APARTMENT PROJECT
JUNE lo,1999
PAGE 4
D. Form of Assistance
As with previous assisted projects, the City’s financial contribution will be in the form of
a residual receipts loan secured by a note and deed of trust. The loan will begin
accruing interest during construction of the Improvements. The outstanding principal
and accrued interest on the City loan will be amortized up-to fifty-five years and repaid
from cash surplus in equal annual installments of principal and interest. Cash surplus
will be divided among the City and the Developer, with 75% to the City and 25% to the
Developer. In the event that there is not adequate cash surplus to repay the City loan,
the outstanding balance shall accrue with simple interest at 3% per annum The City
may also receive repayment of its loan through any savings
between the amount budgeted for construction and the actual construction cost. These
savings will be split 50% to the City and 50% to the developer.
The proposed financial assistance will be provided from the City of Carlsbad’s Housing
Trust Fund. The Fund currently has a balance of approximately $2.3 million.
E. Security
As stated above, the City will take a security interest in the property for.,me affordable
housing project. In addition, the Developer will be required to provide Completion
Bonds to both the City and the permanent lender to insure that construction is
completed.
F. Risk
In its role as a lender to the project, the City is exposed to three risks inherent to real
estate development. These risks generally include 1) predevelopment (project does not
get to construction, 2) construction (project cannot be completed, cost overruns,
contractor problems), and 3) operation (revenues do not cover expenses). Adding to
this risk, any City financial assistance will be subordinated to conventional financing.
A number of factors mitigate the risks. First, the development team has a strong track
record with similar affordable housing projects. The presence of other major financial
commitments, such as a tax credit investment, is also key as this means that other
stakeholders depend on the success of the project both short and long term. By its
nature, affordable housing presents some, but very limited market risk because of
deeply discounted rents. Finally, the vulnerable position of City and other
subordinated financing is a feature which helps attract the necessary private financing.
SDP 97-16 - MARIANO AFFORDABLE APARTMENT PROJECT
JUNE lo,1999
PAGE 5
VI. AFFORDABLE HOUSING AGREEMENT
The Housing Commission has previously reviewed and recommended approval of the
Affordable Housing Agreement for this project. Prior to final map, the developer will be
required to execute the agreement. The Agreement with the City will bind the Developer and
subsequent owners to the specifics of the affordable housing project SDP including affordable
rental rates, household income limits; a construction schedule; amount and form of City
assistance; compliance reporting requirements and implementation agreements (e.g. loan
agreements, regulatory agreements, trust deed, etc.).
VII. CONDITIONAL FINANCIAL ASSISTANCE
As stated above, the Developer is proposing to finance the project, in part, with
proceeds from the 9% tax credit program. Staff is recommending that the City’s
financial assistance be conditionally approved at this time, subject to the applicant
receiving said tax credits. In addition to the requirement for receiving tax credits, staff
is also recommending that the applicant be required to seek the additional funding
sources described below which will potentially reduce the City’s commitment to the
project.
First, as stated in the Developer’s letter in Exhibit No. 3, the project willbe eligibIe to
receive an AHP loan from the Federal Home Loan Bank. The maximum AHP loan
anticipated is $5,000 per unit. Second, the recent passage of Proposition 1A allows for
Developer’s to receive a refund from the State Department of Housing and Community
Development for school fees paid to local school districts. Such a refund may
potentially decrease the amount of tax credits the project may receive. However, staff
will require the developer to investigate this possibility to see if the overall impact will
have a positive or negative impact on the financial viability of the project. Finally,
should the developer receive additional tax credits, either in the form of an additional
contribution from the tax credit investor, or should the current draft TCAC regulations
be revised which allow for additional tax credits, the amount of the City’s assistance
shall be reduced accordingly. The attached resolution incorporates these staff
recommendations.
Typically, when reviewing requests for financial assistance, the Housing Commission
would also review the loan agreement and related documents. However, because the
Commission is being asked to recommend conditional approval of the financial
assistance, the loan documents will be returned to the Commission for their review and
approval once the project has received other necessary financial commitments.
VIII. SUMMARY
It is the role of the Housing Commission to make recommendations to the City Council
based on several considerations with respect to affordable housing projects. These are:
SDP 97-16 - MARIANO AFFORDABLE APARTMENT PROJECT
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PAGE 6
l The proposal’s effectiveness in serving the City’s needs and priorities as
expressed in the Housing Element of the General Plan and the Consolidated
Plan.
l The proposal’s consistency with the City’s affordable housing policies and
ordinances as expressed in the Housing Element, Inclusionary Housing
Ordinance, Density Bonus Ordinance, etc.
l The proposal’s development and operating feasibility, emphasizing the
development team capacity, financing sources and the role of the City in
providing financial assistance or incentives.
The Mariano affordable apartment project is proposed by a capable development team
led by a credible non-profit developer that is committed to affordable housing. The
financing structure of the project is sound. The proposed City assistance meets the
City’s three key underwriting goals of a strong borrower, reasonable project costs and a
high degree of leveraging. The project quality includes good design and location. City
housing goals are supported by the project’s unit mix and affordability. The fact that
all of the affordable units will benefit very low income households is highly desirable.
It is the Affordable Housing Policy Teams (staff) recommendation that the Housing
Commission approve the resolution of support recommending conditional approval of
the proposed City financial assistance.
VIII. EXHIBITS
1. Housing Commission Resolution No. 99-005
2. Proforma
3. Developer’s request for financial assistance
. Minutes of: HL ASING COMMISSION
Time of Meeting: 6:00 P.M.
Date of Meeting: JUNE IO,1999
Place of Meeting: CITY COUNCIL CHAMBERS
i ’
CALL TO ORDER:
Chairperson Latas called the Regular Meeting to order at 6:06 p.m.
PLEDGE OF ALLEGIANCE:
Chairperson Latas led the pledge of allegiance,
ROLL CALL:
Present: Chairperson Latas, Commissioners McNeill, Rose, Scarpelli
Absent: None
Staff Present: Debbie Fountain, Housing and Redevelopment Director
Craig Ruiz, Management Analyst
APPROVAL OF MINUTES:
ACTION:
VOTE:
AYES:
NOES:
ABSTAIN:
Motion by Commissioner Scarpelli, and duly seconded, to approve the Minutes of the
Regular Meeting of May 13, 1999, as submitted. 4-o-o
Latas, McNeill, Rose, Scarpelli None
None
COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA:
There were no comments from the audience.
NEW BUSINESS:
1. MARIANO AFFORDABLE APARTMENT PROJECT - RECOMMENDATION OF APPROVAL TO THE
CITY COUNCIL TO CONDITIONALLY PROVIDE UP TO $462,755 IN FINANCIAL ASSISTANCE FOR
THE CONSTRUCTION OF TWENTY-SEVEN AFFORDABLE APARTMENT UNITS IN ORDER TO
SATISFY THE REQUIREMENTS OF THE INCLUSIONARY HOUSING ORDINANCE REQUIREMENTS
FOR THE MARIANO HOUSING DEVELOPMENT.
Craig Ruiz reviewed the background of the request and stated that the Mariano project is now called the Vista Las
Flores project. He added that the Commission saw this project in 1997. At that time, the applicant had not requested
financial assistance.
Mr. Ruiz stated that there will be 28 apartment units, 27 of which will be affordable. The units will consist of 16 two-
bedroom units and 12 three-bedroom units. Eighteen units will be at 50 percent of the area median income; seven at 38
percent of the area median income; and two at 30 percent. The twenty-eighth unit will be a two-bedroom manager unit.
Mr. Ruiz described the project financing as explained in the Staff report (9 percent tax credits, conventional first loan,
and City subsidy). Mr. Ruiz added that this is in line with other projects the City has provided assistance for in the
past.
a4
HOUSING COMMISSION ,...,WTES
JUNE lo,1999
PAGE 2
Mr. Ruiz specified how the City’s financial contribution would work as explained in the Staff report (residual receipts
secured by a note and deed of trust, 3 percent simple interest, up to a 55year loan). The Proforma shows the loan
being paid off in 33 years even though it can go as long as 55 years,
Mr. Ruiz said that new 9 percent regulations are going into effect based on points according to several things, including
proximity to services, bedroom sizes, affordability, and sources of funding. The top “point getters” per region will get
the money and the lottery process has been eliminated, he said.
Mr. Ruiz stated that typically with affordable projects requesting assistance, at the time the amount of assistance is
approved, all the documents that go with it-the loan agreement, the regulation agreement, etc.-are approved as well.
Staff is looking for a commitment of fmancial assistance up to $16,700 a unit. If and when the applicant receives the
tax credits, Staff will come back to the Housing Commission for approval of the documents.
Mr. Ruiz added that there are some conditions to the City’s assistance to the project which include
(1) The applicant will need to get the tax credits.
(2) The applicant will need to apply for an AHP loan from the Federal Home Loan Bank. Monies that the
applicant receives from the AHP loan would reduce the City’s contribution to the project.
(3) The applicant will need to apply for a refund from the State Department of Housing and Community
Development for school fees paid to local school districts (Proposition 1A as explained in the Staff report).
(4) If the developer receives an additional contribution from the tax credit investor, the amount of the City’s
assistance would be reduced.
The recommendation by Staff is that the Housing Commission recommend approval to the City Council the
commitment to provide $463,155 in financial assistance,
Staff provided the Housing Commission with an updated copy of Housing Commission Resolution No. 99-005. The
updated Resolution clarifies that there will be 27 affordable units, while the original Resolution referred to a 28-unit
affordable project. Under “General Conditions,” Staff deleted the following words from the first paragraph: “Prior to
the City entering into agreements to provide financial assistance.” The first sentence of the paragraph is “The
Developer shall make . ..”
Staff deleted the following words from the second paragraph of the “General Conditions” section: “Prior to the City
providing financial assistance”; the paragraph to begin “The Developer shall make a good faith effort to pursue...”
Chairperson Latas asked if there were any questions of Staff.
Commissioner Scarpelli asked if the “good faith effort” is making an application by a certain date.
Mr. Ruiz responded affirmatively. He said the deadline to apply for the AHP loan is October 1, 1999. The Prop 1A
money is somewhere down the line. The applicant would apply sometime after they pay the school district the money
and before the permanent loan. Because this is a new program, there is a limited amount of money available; so there
is no guarantee that by the time they apply that the money will even be there.
Chairperson Latas asked if the Prop 1A refund is only for affordable projects.
Mr. Ruiz responded that the retid is for affordable projects that are eligible to receive it.
Chairperson Latas invited the applicant to speak.
HOUSING COMMISSION a. .&TES
JUNE 10, 1999
PAGE 3
Steve Kuptz, Chairman of the Board, Wakeland Housing and Development Corporation, 225 Broadway, Suite 1700,
San Diego, CA 92 10 1, addressed the Commission and said they are a newly-formed non-profit community
development corporation based in San Diego County. Mr. Kuptz said that there were preliminary site plans and
elevations set up and available for the Housing Commissioners to view.
Mr. Kuptz explained that Wakeland’s mission statement has three parts:
(1) Development projects that deliver the greatest affordability to the residents. He said that the average affordability
on this project would range from 30 percent up to 50 percent of median income.
(2) Deliver projects that are not only architecturally significant, but are also contextually significant. He said it is one
thing to design a pretty building, but that pretty building has to fit in its surroundings. He added that they have
spent a lot of time on the site plan in terms of laying out the units and the recreation center-really trying to create
a community where the homes interact with each other. Although it is an apartment project, the developer hopes
the end product looks like a townhouse project. There will be double entries in the front and back and porches
leading both out to the parking area and into the central courtyard focused around the recreation center. He said
they have gone to great lengths to situate the units so that residents in the single-family homes aren’t looking into
second story units, and visa versa.
(3) Make a difference in each of the communities they build in, whether it is day-care centers, whether it is after-
school programs, whether it is tutoring programs. All of these things are important in developing a community,
and is the most important part according to the developer.
Mr. Kuptz stated that although they are a newly formed non-profit, the Board of Directors, Agency Staff, and Project
Development Team are the most experienced in San Diego County. One of the Board members, Sylvia Martinez, and
Mr. Kuptz were responsible for bringing the Laurel Tree project through the City, In addition to Laurel Tree,
Mr. Kuptz explained his extensive experience with other affordable projects (local and statewide) he has been involved
in. Mr. Kuptz introduced the other Board members and explained their experience with local affordable projects.
Mr. Kuptz introduced Wakeland’s founding executive director, Ken Sauder, and explained Mr. Sauder’s experience
with local affordable projects. Wakeland’s Project Development Team is the same team that is involved in Laurel
Tree.
Mr. Kuptz stated that they would be acquiring the land from Standard Pacific after they receive an award of tax credits.
Mr. Kuptz said that they are committed to deliver the highest quality affordable housing in the City of Carlsbad. He
added that they have the Development Team in place to execute the vision. Mr. Kuptz pointed out that this is truly an
inclusionary project where they are working with Standard Pacific to deliver the affordability on-site.
Chairperson Latas asked if there were any questions of the applicant.
Commissioner McNeil1 asked about the projected 9 percent interest rate on the $500,000 loan.
Mr. Kuptz responded that the tax credits and debt shown on the Proforma have already been underwritten by Bank of
America (proposed lender) and California Equity Fund (proposed equity provider). The Proforma shows their
underwriting assumptions.
Commissioner McNeil1 asked the projection of the $10,000 payback to the City with the 3 percent interest rate
amortized over 55 years.
Mr. Kuptz responded that this is a residual receipt loan so the developer is making payments as cash flow is available;
and as the rents increase, the payments increase over the term.
Commissioner McNeil1 commented that it is a percentage of the actual cash flow.
at
HOUSING COMMISSION . .dUTES
JUNE lo,1999
PAGE 4
Ken Sauder, Executive Director, Wakeland Housing and Development Corporation, said it is 7.5 percent of the residual
receipts.
Chairperson Latas commented that the Commission is pleased about the mix ofaffordability on this project and asked
for the motivation behind the mix.
Mr. Kuptz stated that the projects they are involved in are committed to families and seniors. He added that when they
are involved in a family project, three-bedroom units are very dear. The tax credit requirements are that 30 percent of
the units be three bedroom, while this project is at 43 percent. Most apartment projects are one- and two-bedroom
units, and they are generally overcrowded. It also worked out from a site-planning standpoint in terms of how the units
were configured.
Chairperson Latas asked how the application could “swing” the income mix, specifically the 30 percent incomes.
Mr. Kuptz responded by offsetting it by the 50 percent income. He added that the affordability of this project assures
the maximum points in the tax credit application process.
There being no other persons desiring to address the Commission on this topic, Chairperson Latas declared the public
testimony closed and opened the item for discussion among the Commission members.
ACTION:
VOTE:
AYES:
NOES:
ABSTAIN:
Motion by Commissioner Scarpelli, and duly seconded, that the Housing Commission
ADOPT Resolution No. 99-005, recommending APPROVAL to the City Council to
conditionally provide up to $462,755 in financial assistance from the City’s Housing Trust
Fund to Wakeland Housing and Development Corporation for construction of twenty-seven
affordable apartment units in order to satisfy the requirements of the Inclusionary Housing
Ordinance for the Mariano Housing Development.
4-o-o
Latas, McNeill, Rose, Scarpelli
None
None
INFORMATION ITEM:
REVISIONS TO INCLUSIONARY HOUSING ORDINANCE - STAFF WILL MAKE A VERBAL.
PRESENTATION ON PROPOSED REVISIONS TO CHAPTER 2 1.85 OF THE CAIUSBAD MUNICIPAL
CODE REGARDING THE CITY’S MCLUSIONARY HOUSING ORDINANCE.
Ms. Fountain went over some of the policy issues Staff has been trying to work through on the Inclusionary Housing
Ordinance. A Draft Inclusionary Housing Ordinance will be distributed in the future in a more formal process.
Since the City has been implementing the Inclusionary Housing Ordinance, Staffhas run up against different types of
policy issues that either weren’t addressed in the Ordinance, or the way they were addressed were causing some
implementation problems. Staff has been meeting as a committee trying to figure out what changes to propose to the
Inclusionary Housing Ordinance. Second dwelling units have been an issue and will be addressed as part of the
revision process. MS. Fountain stated that there are other issues that are related to the new process for potentially self-
certifying the City’s own Housing Element.
Ms. Fountain passed out a handout entitled “Chapter 21.85 Inclusionary Housing Ordinance Key Proposed Revisions”
to the Housing Commission. Key revisions to include: