HomeMy WebLinkAbout2021-11-18; Housing Commission; ; Request from Chelsea Investment Corporation for a $1,500,000 loan from the Housing Trust Fund for the West Oaks Apartments (DEV 13018)Meeting Date: November 18, 2021
To: Housing Commissioners
From: Mandy Mills, Housing & Homeless Services Director
Staff Contact: Mandy Mills, Housing & Homeless Services Director
mandy.mills@carlsbadca.gov, (760) 434-2907
Subject: Request from Chelsea Investment Corporation for a $1,500,000 loan
from the Housing Trust Fund for the West Oaks Apartments (DEV 13018)
Recommended Action
Adopt a resolution recommending that the City Council approve a $1,500,000 loan from the
Housing Trust Fund to Chelsea Investment Corporation for construction of the 42-unit West
Oaks affordable apartments.
Executive Summary
Chelsea Investment Corporation (CIC), has partnered with Integral Communities to construct
the affordable housing portion of the West Oaks project. West Oaks was approved by the
Planning Commission, receiving a density bonus and certain development concessions and
incentives to provide 42 apartments affordable to lower-income households. To provide
additional public benefit to the Carlsbad community and to secure tax exempt bond and tax
credit equity financing, the applicant proposes to provide 3 additional affordable units and
deepen the project’s affordability by providing more housing units to extremely low and very
low income households. To help achieve these goals, Chelsea Investment Corporation is
requesting $1,500,000 from the city’s Housing Trust Fund (Exhibit 3). The total estimated
project cost is $18,538,265.
Discussion
On Jan. 20, 2021, the master developer, Integral Communities, received approval to build 192
apartments located south of Palomar Airport Road and west of Palomar Oaks Way. The project
will include 42 affordable apartments, consisting of 1, 2 and 3 bedrooms.
The apartment community will include a recreation building, recreations areas, and a
community pool. Since the project is changing the General Plan Land Use from Planned
Industrial to Residential (R-30), a request for withdrawal of 192 dwelling units from the excess
dwelling unit bank is required. Prior projects that involved a General Plan land use change and
the removal of excess dwelling units were required to provide a minimum of 20% of the total
housing units as affordable to low income households. The 42 affordable units exceeds the city
inclusionary housing obligations.
Integral Communities is partnering with Chelsea Investment Corporation to construct the
affordable apartments. Chelsea Investment Corporation will own and operate the West Oaks
Nov. 18, 2021 Item #3 Page 1 of 48
affordable apartments. The company has extensive experience with affordable housing
throughout California and the west. Chelsea Investment Corporation owns and manages the
Hunter’s Pointe, Glen Ridge, Juniper, and Mariposa affordable apartments in Carlsbad (see
more information below and in Exhibit 4).
Subsidy Analysis
Chelsea Investment Corporation intends to secure bond allocation and tax credits to finance
the majority of the project’s cost. To provide additional public benefit to the Carlsbad
community and improve their competitiveness for bond/tax credit financing, Chelsea
Investment Corporation is requesting $1,500,000 in financial assistance from the city’s Housing
Trust Fund. In exchange, the developer would deepen the affordability serve extremely low-
and very low income households (30 and 50% area median income).
Summary uses and sources of funds
The developer’s detailed proforma is attached as Exhibit 5. Below is a summary of the proposed
sources and uses of funds:
SUMMARY PROFORMA
SOURCES OF FUNDS
TOTAL PER UNIT
Senior Loan $5,977,000 $142,310
Tax Credit Equity 7,052,873 167,926
CIC – deferred developer fee 599,307 14,269
City of Carlsbad loan 1,500,000 35,714
Integral Communities (master developer) 1,654,626 39,396
Integral Communities (land donation) 1,680,000 40,000
Soft Loan-Interest 74,459 1,773
TOTAL SOURCES $18,538,265 $441,387
PERMANENT USES OF FUNDS
TOTAL PER UNIT
Property acquisition $1,680,000 $40,000
Construction 11,146,703 265,398
Construction Interest & Fees 895,970 21,333
Construction contingency 552,542 13,156
Soft Costs/Other 1,450,604 34,538
Reserves 94,039 2,239
Architecture & Engineering 619,100 14,740
Developer fee 2,099,30 49,984
TOTAL USES $18,538,265 $441,387
Cost reasonableness
Since development costs are one of the key variables determining the need for subsidies, it is
important that those costs be reasonable. At approximately $18.5 million total development
costs, the average unit development cost of approximately $441,387 is reasonable given
current market conditions and trends. For example, a recent Terner Center Report found in an
analysis of Low Income Housing Tax Credit projects that the average inflation-adjusted per unit
cost of new affordable housing rose from $411,000 to $480,000 in California between 2008 and
Nov. 18, 2021 Item #3 Page 2 of 48
2019.1 The paper also found that the cost of materials and labor are the primary drivers of
recent cost increases of LIHTC-financed affordable housing.
Another important consideration is that any financial assistance from the city have the effect of
making the units more affordable and not creating undue gain for any party. Under the state’s
4% tax credits program, Chelsea Investment Corporation is eligible to earn a developer fee of
$2,099,307, and $599,307 of the fee would be deferred until after completion of the project and
operation commences. Therefore, the city’s investment would not create an undue financial
gain.
City Council Policy No. 90 funding guidelines
The City Council adopted a policy (City Council Policy No. 90, Exhibit 6) in December 2020 to
guide administration of the Housing Trust Fund. The policy identifies priority uses of the HTF,
provides criteria for evaluating financial assistance requests, and describes the review process,
form of assistance and affordability covenants. The following table describes how the Chelsea
Investment Corporation financial assistance request is consistent with City Council Policy No. 90
guidelines.
Policy 90 General Guidelines Consistency Statement
1b.
Housing Trust Fund dollars may be used for
new construction, acquisition and/or
rehabilitation, subsidy or other means to
assist other governmental agencies,
nonprofit groups and private organizations
or individuals in creating or maintaining
affordable housing (1b).
Consistent. The request is to financially assist
construction of a new affordable apartment
project serving extremely low and lower income
households.
1c.
For new construction and
acquisition/rehabilitation projects, Housing
Trust Fund dollars are intended to offer
“gap” financing. The subsidy required
should be the minimum amount necessary
to both ensure the feasibility of a project
and the affordability of the units. Projects
are expected to support as much debt as
feasible and to attract as much equity
investment as is typical for similar projects
(1c).
Consistent. The $1,500,000 request represents
only 8% of total project cost $18,538,265. Other
proposed funding sources include:
Tax credit equity $7,052,873 (38%)
Senior loan $5,977,000 (32%)
Master developer $1,654,626 (9%)
City of Carlsbad loan $1,500,000 (8%)
Deferred developer fee $599,307 (4%)
Loan donation $1,680,000 (9%)
Soft Loan $74,459 (< 1%)
Total: $18,538,265 (100%)
1d.
Low-interest loans are the generally
preferred form for distributing Housing
Trust Fund dollars for work in all stages of
housing development. However, grants may
also be considered (1d).
Consistent. The recommended form of assistance
is a 55-year residual receipts loan at 3% simple
interest per year. The loan would be secured by a
promissory note and deed of trust, and repaid in
annual installments from surplus cash generated
by operations. See Exhibit 5 for a detailed cash
flow analysis.
1 The Terner Center for Housing Innovation, “The Complexity of Financing Low-Income Housing Tax Credit Housing in the
United States,” April 2021; https://ternercenter.berkeley.edu/wp-content/uploads/2021/04/LIHTC-Complexity-Final.pdf
Nov. 18, 2021 Item #3 Page 3 of 48
1e.
Housing Trust Fund dollars may be used to
provide new affordable rental or ownership
housing units (1e).
Consistent. The subsidy would support creation
of new affordable rental units.
1f.
Housing Trust Fund dollars shall not be used
to satisfy a development’s inclusionary
housing requirement but may be used to
assist in exceeding the requirement by
increasing the number of affordable units
and/or expanding affordability to very low-
or extremely low-income households, or to
encourage a preferable product type (1f).
Consistent. The West Oaks development received
a General Plan land use change, in exchange for
providing affordable housing. To satisfy the
inclusionary housing requirement, the city’s
approval requires that 39 of the apartments be
affordable to households at up to 80% AMI.
Chelsea Investment Corporation’s proposal
exceeds the city’s requirement by providing
deeper affordability and additional affordable
units.
1g.
Financial assistance requests will be
evaluated by the Affordable Housing Policy
Team and presented to the Housing
Commission for review and
recommendation to the City Council. The
City Council is the final decision-maker for
financial assistance requests.
Consistent. The Affordable Housing Policy Team
(consisting of city department representatives
from community development, planning,
housing, finance and city attorney’s office)
reviewed the assistance request on Nov. 10,
2021, and recommended that it be forwarded to
the Housing Commission for their review and
recommendation to the City Council.
1i.
The annual budget process for the Housing
Trust Fund shall be guided by General Plan
Housing Element policies and programs, the
Inclusionary Housing Ordinance, and the
following general affordable housing
priorities, in descending order:
1. Construction of new affordable
housing
2. Preservation of housing at-risk of
conversion to market rate
3. Acquisition/rehabilitation of
distressed/at-risk affordable housing
4. Rental assistance and homelessness
programs
5. Land acquisition for future affordable
units
6. Conversion of market rate units to
affordable housing
Consistent. The West Oaks Affordable
apartments meet Priority 1, construction of new
affordable housing.
1j.
City HTF dollars must be expended within
24-months following fund commitment.
Consistent. If approved by City Council, the
financial assistance award will be committed for
24 months, during which time the developer will
need to secure all other financing and ready the
project for construction.
3a. Project Evaluation Criteria
1.
Projects that provide the greatest benefit
per dollar of funds spent towards the
lowest household income groups. Priority
shall be given to projects that best assist
A quarter of the project will serve the top two
priority income categories: five apartments will
be affordable to extremely low-income
households, and 5 apartments will be affordable
to very low-income households. The remaining
Nov. 18, 2021 Item #3 Page 4 of 48
the following income categories, reflected
in priority order.
• Extremely low-income households
• Very low-income households
• Low-income households
thirty-one units will serve low-income
households.
2.
Projects that demonstrate higher equity in
the project.
The developer will seek approximately $7 million
in tax credit equity. Additionally, the proposal
includes $1.6 million investment from the master
developer plus the contribution of land.
3.
Projects that demonstrate a lower loan-to-
value ratio.
Loans account for $9.8 million, or 53% of the total
permanent funding. The city’s loan would
represent 8% of total project costs.
4.
Projects that have other funding sources
identified and committed.
Identified funding sources include tax credits,
senior loan or tax exempt bonds. Committed
funding sources include master developer
contribution ($1,654,626), deferred developer
fee ($599,307) and net operating income during
construction ($74,459). Chelsea Investment
Corporation intends to secure all funding by June
2022. If approved, release of the city’s financial
assistance will be contingent upon developer
securing all other needed funding for the project.
5.
Projects that benefit the highest percentage
of lower income families, provide the
lowest affordability, include the greater
percentage of affordable units or maintain
longer periods of affordability.
Twenty-four percent of the units would provide
much-needed housing for extremely low-income
(5 units) and very low-income households (5
units). All the affordable units would maintain
their affordability for 55 years.
6.
Projects that use Housing Trust Fund dollars
as a match or to leverage other
conventional and below-market resources,
including tax credits, state and federal
funding programs and other funding
sources.
The requested city contribution of $1,500,000
from the Housing Trust Fund provides a very high
leveraging of other sources of funding. The city’s
subsidy would be $37,714/unit, which represents
only 8% of the total project cost.
7.
Projects proposed by an applicant with a
successful history of project development
and/or property management, as
appropriate.
Chelsea Investment Corporation has extensive
housing development and management
experience, with more than 119 apartment
communities in California, New Mexico, and
Arizona, which include almost 11,000 affordable
apartment units. They currently have 4
developments in Carlsbad with over 400
affordable units.
Many Chelsea Investment Corporation projects
were financed in part through low-income
housing tax credits and tax exempt bonds.
See Exhibit 4 for more information.
Nov. 18, 2021 Item #3 Page 5 of 48
Other considerations
Housing Element Consistency
The City Council adopted the 2021-2029 Housing Element, an eight year plan that describes
how the city will accommodate Carlsbad’s housing needs for residents at all income levels and
those with specialized needs. The project will serve lower-income households, including some
of the most vulnerable with extremely low and very low incomes. Specifically, the project is
consistent with the following provisions of the Housing Element:
• Program 2.9 - Assistance for Special Needs Populations: “Certain groups have greater
difficulty finding decent, affordable housing due to persons with special needs within a
household. Households with special needs include seniors, persons with physical and/or
mental disabilities (including developmental disabilities), large households, extremely
low-income households, single-parent households, female head of households,
veterans, farmworkers, students, and military personnel. The City will provide assistance
to these households to encourage the provision of adequate housing to meet their
needs.”
• Program 4.2 – Affirmatively Furthering Fair Housing, Objective (a): “Encourage mixed‐
income developments accessible to lower income residents citywide, especially in high
opportunity and resource‐rich areas through use of the city’s Inclusionary Housing
Ordinance, Housing Trust Funds, development of city‐owned properties, and use of grant
funding for housing.”
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 and other financing as may be
necessary to ensure project financing success.
Several factors mitigate the identified risks: 1) the development team has a strong track record
with similar affordable housing projects throughout California; 2) the inclusion of other
financing sources including master developer contribution, private loan, and tax credit
investment is also key as this means that other stakeholders depend on the success of the
project both short and long term; 3) the position of city and other subordinated financing is a
feature that helps attract the necessary private, state and federal financing; and 4) the city’s
investment will be secured by a promissory note and deed of trust on the property.
Additionally, the developer will be required to provide completion bonds to the city to ensure
that construction is completed.
Fiscal Analysis
The recommended $1,500,000 loan would be drawn from the city’s Housing Trust Fund (Fund
133), which is restricted to affordable housing and homelessness-related projects, programs
and services. Through the end of Oct. 2021, the Housing Trust Fund has an available balance of
$9.85 million.
Nov. 18, 2021 Item #3 Page 6 of 48
Next Steps
The Housing Commission recommendation and staff analysis of the financial assistance request
will be forwarded to the City Council for their consideration. If the request is approved by the
City Council, staff will begin negotiations with Chelsea Investment Corporation and execute all
appropriate documents necessary to provide the financial assistance.
Environmental Evaluation
The City Council certified an environmental impact report, and adopted candidate findings of
fact and mitigation monitoring and reporting program for the West Oaks development project
on May 4, 2021 (City Council Resolution No. 2021-097). As an integral component of the overall
West Oaks development, the affordable apartments were adequately evaluated by the certified
EIR and is subject to applicable mitigation monitoring and reporting requirements. No further
environmental review is required.
Public Notification and Outreach
Public notice of this item was posted in keeping with the state’s Ralph M. Brown Act and it was
available for public viewing and review at least 72 hours before the scheduled meeting date.
Exhibits
1. Housing Commission resolution
2. Location map
3. Chelsea Investment Corporation Housing Trust Fund financial assistance application
4. Chelsea Investment Corporation brochures and list of tax credit-financed projects
5. Project proforma and cash flow analysis
6. City Council Policy No. 90
Nov. 18, 2021 Item #3 Page 7 of 48
Nov. 18, 2021 Item #3 Page 8 of 48
Exhibit 1
Nov. 18, 2021 Item #3 Page 9 of 48
Nov. 18, 2021 Item #3 Page 10 of 48
Nov. 18, 2021 Item #3 Page 11 of 48
EXHIBIT 2
WEST OAKS
LOCATION MAP
Nov. 18, 2021 Item #3 Page 12 of 48
September 14, 2021
Mandy Mills
Director of Housing & Homeless Services
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
RE: West Oaks Affordable Housing
Housing Trust Fund – Financial Assistance Application
Dear Mandy:
Chelsea Investment Corporation has been working with Integral Communities to finance and develop
the affordable housing at West Oaks (the “Project”), located at the Southwest Corner of Palomar
Oaks Way and West Oaks Way in Carlsbad, California. The 42-unit project will be a part of the West
Oaks Master Plan, consisting of 150 market rate apartment units.
Chelsea Investment Corporation is pleased to submit a Housing Trust Fund Financial Assistance
Application to the City of Carlsbad for the development of the Project. We are requesting $1,500,000
for the construction and permanent financing of the project. The proposed financing for the project
utilizes the tax-exempt bond and 4% low-income housing tax credit program. As you are aware, for
the first time in nearly 15 years, the bond finance program converted to a competitive process
effective January 1, 2020. Securing financing from the City of Carlsbad will enhance the
competitiveness of the West Oaks affordable project. We intend to submit the joint financing
application to CDLAC and TCAC in the first round of 2022, and if successful, it will allow project
construction to commence in 4th quarter 2022.
The Project will be comprised of two, three-story garden style residential buildings, consisting of 19
one-bedroom, 12 two-bedroom, and 11 three-bedroom units. The Project is designed as a 100-
percent affordable housing development for families making between 30 and 70-percent of area
median income (AMI). The Project will have a separate on-site leasing office and will share a
community recreation building and other common areas with the adjacent market-rate buildings.
It is worth noting, the California Fair Housing Task Force has designated the census tract where the
development of West Oaks will be located as a “High Resource” area due in part to the proximity of
numerous employment opportunities, supporting positive economic and educational outcomes for
families.
EXHIBIT 3
Nov. 18, 2021 Item #3 Page 13 of 48
Consideration of this request for financing by the City of Carlsbad is greatly appreciated. I look
forward to working with you to advance this request, together with working with you and the team
from Integral the finalize the Affordable Housing Agreement for the Project. Please let me know if
you have any questions or need any additional information in order to move forward.
Sincerely,
Cheri Hoffman
President
Chelsea Investment Corporation
Nov. 18, 2021 Item #3 Page 14 of 48
Please provide all known information as requested. Check all boxes that apply.
PROJECT INFORMATION
Project Name:
Address:
Zip Code:
Type of project: New Construction Acquisition Conversion
(check all that apply) Preservation Rehabilitation
Target population to be served:
Provide on a separate sheet or cover letter: a summary narrative of the project, any entitlements
received from the city, the amount of financial assistance being requested, and description of the
public benefits that would result from the assistance.
APPLICANT INFORMATION
Legal Name:
Address:
City: State: Zip:
Telephone: Fax:
Legal Status of Applicant:
Individual General partnership Limited liability corporation
Non-profit corporation Limited partnership CHDO
For-profit corporation Joint venture Other:
Contact Person:
Title:
Address:
City: State: Zip:
Telephone: Fax:
Email:
CO-APPLICANT (IF APPLICABLE)
Legal Name:
Address:
City: State: Zip:
Telephone: Fax:
Email:
Legal Status of Applicant:
Individual General partnership Limited liability corporation
Non-profit corporation Limited partnership CHDO
For-profit corporation Joint venture Other:
Contact Person:
Title:
Address:
City: State: Zip:
Telephone: Fax:
Email:
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
Southwest Corner of Palomar Oaks Way & West Oaks Way
760-456-6000
760-944-7577
Affordable Housing for Families between 30-70% AMI
Greg Waite
2235 Encinitas Blvd, Suite 216
760-456-6000
Encinitas
The Carlsbad Westoaks Project Owner, LLC a Delaware limited liability company
6339 Paseo Del Lago
Carlsbad
92011
760-944-7577
West Oaks
Chelsea Investment Corporation
760-456-6001
Carlsbad
Project Manager
760-944-7511, ext 103
X
92011
CA
CA
2235 Encinitas Blvd., Suite 216
President
CA
gwaite@integralcommunities.com
760-456-6001
6339 Paseo Del Lago
92024CA
gwaite@integralcommunities.com
760-944-7511 x 103
92024
cherihoffman@chelseainvestco.com
X
Cheri Hoffman
X
Encinitas
92011
Nov. 18, 2021 Item #3 Page 15 of 48
SOURCES & USES OF FUNDS
ACQUISITION FUNDING (List all sources of funding)
Name of Lender/Source Amount Term in
Months
Interest
Rate
Per Unit
Cost
Committed
Yes No
TOTAL
CONSTRUCTION PERIOD FUNDING (List all sources of funding)
Name of Lender/Source
Contact Person and Phone Number
Amount Term in
Months
Interest
Rate
Per Unit
Cost
Committed
Yes No
TOTAL
PERMANENT FUNDING (List all sources of funding, including amount requested from City of
Carlsbad)
Name of Lender/Source
Contact Person and
Phone Number
Amount Term in
Months
Interest
Rate
Per Unit
Cost
Committed
Yes No
TOTAL
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
N/A
SEE ATTACHED - "2.Sources"
SEE ATTACHED - "2.Sources"
Nov. 18, 2021 Item #3 Page 16 of 48
USES OF FUNDS
Uses of Funds Amount Per Unit Cost Percentage of total
Land Acquisition Cost
Total Hard Costs (construction)
Construction Interest & Fees
Construction Contingency
Architectural & Engineering Fees
Soft Costs/Other
Reserves (operating & other)
Developer Fee
TOTAL USES OF FUND $18,538,265 $441,387 100%
NOTE: A current development proforma shall be attached to this application. The above sources
and uses of funds must agree with the information shown in the attached development proforma.
PREVAILING WAGE REQUIREMENTS – Check if either of the following wage requirements were
included in the Total Development Cost of your project:
Davis-Bacon Wages State Prevailing Wages
SITE INFORMATION
Current Owner/Seller Information:
Email:
Contact Person:
Site Control:
Deed Option to Purchase Other:
Lot Size: sq. ft. acres
APN:
If ownership of the property has not yet transferred to applicant, what is the expected date for
transfer of ownership? __________________
Legal Description: _______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
Prior use of property:
_______________________________________________________________________________
_______________________________________________________________________________
Name:
Address:
City: State: Zip:
Telephone: Fax:
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
7.82%
Portions of 212-110-05-00, 212-110-06-00, 212-110-07-00. Final Map still to be recorded will create exact legal parcel.
$2,099,307
$14,740
The Carlsbad Westoaks Project Owner, LLC a Delaware limited liability company
2235 Encinitas Blvd, Suite 216
$552,542
60.13%
gwaite@integralcommunities.com
760-944-7511, ext 103
$94,039
$1,450,604
$13,156
Encinitas 92024
$1,680,000
3.34%
Greg Waite, Project Manager
$895,970
Exact Legal Description to be provided once Final Map Records
760-944-7577
2.98%
$34,538
9.06%
11/15/2022
$2,239
CA
4.83%
$619,100
N/A - Vacant Land
+/- 1.29
$265,398
$21,333
$40,000
X
11.32%
$11,146,703
Purchase and Sale Agreement
$49,984
0.51%
Nov. 18, 2021 Item #3 Page 17 of 48
Current Number of occupied units on the property: _____
Number of potential households to relocate: ______
EXISTING or PROPOSED STRUCTURE INFORMATION
Existing Building
(if applicable)
Proposed Configuration
(after Rehab or New Construction)
Units
Bedrooms
Buildings
Stories
Parking spaces
Residential sq. ft.
Common area sq. ft.
Parking sq. ft.
Commercial sq. ft.
Total building sq. ft.
Community Services sq. ft.
UNIT MIX
Unit Mix Existing Unit Mix Proposed Unit Mix (after rehab or construction)
0 bedroom/SRO
1 bedroom
2 bedrooms
3 bedrooms
4 bedrooms
TOTAL UNITS
Unit Type % of AMI (insert % of the area median income)
Proposed Rent Total # of Units
0 bedroom/SRO
1 bedroom
2 bedrooms
3 bedrooms
4 bedrooms
TOTAL UNITS
Add additional rows if necessary.
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
$1,889
community services rooms located in shared rec building
42
0
60%
N/A
$1,122, $668
1
$1,344, $799
$1,349
50%, 30%
28,320
26,560
0
60%
N/A
3
0
N/A
N/A
76
42
$2,185
$1,555 , $924
0
N/A
N/A
N/A
3,350%, 30%
42
70%
12
N/A
1,1
2
12
7
N/A
83
70%
N/A
1,1
$1,576
$1,870
70%
$1,617
1
N/A
N/A
Approximate 350sf leasing office exclusive for affordable plus access to approximate 3,800 on-site rec building shared with adjacent market rate project
N/A
9
1
Building 1: 4,291 SF Building 2: 10,235 SF (Total: 14,526 SF)
11
50%, 30%
19
N/A
0
N/A
60%
N/A
N/A
Nov. 18, 2021 Item #3 Page 18 of 48
ANTICIPATED PROJECT TIMELINE
Activity
Estimated
Start Date
Estimated
Completion Date
Site Acquisition
Environmental Clearance – CEQA
Environmental Clearance – NEPA (if applicable)
Application for Land Use Permit/Entitlements
Submission of plans to Building Department
Application for Construction Financing
Application for Permanent Conventional Financing
Application for Tax Exempt Bonds
Application for Other Loans/Grants:
Application for Other Loans/Grants:
Application for Other Loans/Grants:
Application for Other Loans/Grants:
Application for Other Loans/Grants:
Application for Low-Income Housing Tax Credits (4% or 9%)
Receipt of Construction Bids
Commencement of Construction
Completion of Construction
100% Lease-up
Receipt of Permanent Financing
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
10/1/2021
6/1/2021
11/1/2023
2/1/2024
5/1/2022
6/1/2022
1/30/2022
N/A - Exempt
1/1/2022
1/15/2022
1/15/2022
7/15/2022
N/A
10/15/20225/1/2022
2/1/2022
11/1/2022
11/15/22
N/A
8/1/2024
1/1/2022
9/9/2021
N/A - Exempt
5/1/20222/1/2022
July 2021
Nov. 18, 2021 Item #3 Page 19 of 48
CITY OF CARLSBAD
Housing Trust Fund Application Development Team Members
Provide the name, address, contact person, telephone number, fax number, and e-mail address for all members of the development team. In addition, describe the development team’s experience in real estate development and/or management and ownership. Development team must include team members with a successful record of accomplishment in developing at least one affordable rental
housing project of the type and scale proposed.
Name of Developer Address Address City State, Zip
Primary Contact Person/Title Phone FAX E-Mail Other names under which you have done
business.
Experience List of other affordable housing developments that you have developed
Name of Co-Developer Address Address City State, Zip
Primary Contact Person/Title Phone FAX E-Mail Other names under
which you have done business.
Experience List of other affordable housing developments that you have developed
Name of General Contractor Address Address City State, Zip
Primary Contact Person/Title Phone FAX E-Mail Other names under which you have done business.
Experience List of other affordable housing developments that you have developed
Name of Architectural
Firm
Address Address City State, Zip
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
Bonsall
cherihoffman@chel
seainvestco.com
6339 Paseo Del Lago
Chelsea Investment Corporation 6339 Paseo Del Lago Carlsbad
5256 South Mission
Road
jpatterson@emmers
onconstruction.com
Summa Architecture STE 404
See Attached - "3. CIC & ECI Experience List"
760-456-6001
CA, 92011
N/A
Janice Patterson/Director of
Construction
760-456-6001
See Attached - "3. CIC & ECI Experience List"
760-456-6000
Carlsbad
N/A
Cheri Hoffman
Emmerson Construction, Inc.
CA, 92011
760-456-6020 N/A
CA, 92003
Nov. 18, 2021 Item #3 Page 20 of 48
Primary Contact Person/Title Phone FAX E-Mail Other names under which you have done
business.
Experience List of other affordable housing developments that you have developed
Name of Property Mgmt Co Address Address City State, Zip
Primary Contact Person/Title Phone FAX E-Mail Other names under which you have done business.
Experience List of other affordable housing developments that you have developed
Name of Legal Counsel Address Address City State, Zip
Primary Contact Person/Title Phone FAX E-Mail Other names under which you have done business.
Experience List of other affordable housing developments that you have developed
Name of Tax Credit Syndicator
Address Address City State, Zip
Primary Contact Person/Title Phone FAX E-Mail Other names under
which you have done business.
Experience List of other affordable housing developments that you have developed
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
Villa Storia Family Apts 38 – 3-Story Garden Oceanside, CA Oxnard Family Apts 125 – 3-Story Common Garage Oxnard, CA
Woodglen Vista Apts 188 - 2-story Rehab Santee, CA
agutteridge@chelse
ainvestco.com.com
Adam Gutteridge/Director of
Strategic Planning
CA, 92011
TBD
See Attached - "4. Property Management Company Experience"
6339 Paseo Del Lago
760-724-1198
N/A
CIC Management, Inc.
760-456-6000 760-456-6001
TBD
Carlsbad
Damian Taitano/Architect damian@summarch
.com
N/A N/A
Nov. 18, 2021 Item #3 Page 21 of 48
Other Development Team Member
Address Address City State, Zip
Primary Contact Person/Title Phone FAX E-Mail Other names under which you have done business.
Experience List of other affordable housing developments that you have developed
Name of Service Provider
Address Address City State, Zip
Primary Contact Person/Title Phone FAX E-Mail Other names under which you have done business.
Experience List of other affordable housing developments that you have developed
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
N/A
TBD
Nov. 18, 2021 Item #3 Page 22 of 48
CITY OF CARLSBAD
HOUSING TRUST FUND APPLICATION
Borrower/Applicant/Developer Disclosure Statement
For the purpose of this form Borrower shall mean:
Any person or entity having 10% or more ownership interest in the development project;
the General Partners or Principals of the development; and, if applicable,
any non-profit entity associated with the development.
The Borrower(s) shall provide the following information. Use a separate sheet of paper, if
necessary. A response to each question is required. If an item is not applicable, type N/A.
Name of Primary Borrower Address Address City State, Zip
Primary Contact Person Phone FAX E-Mail Other names under which you have done business.
Taxpayer Identification
Number
Borrower’s Organization
Check One
Corporation – Attach Articles of Incorporation
Non-Profit – Attach Articles of Incorporation and verification of 501 C(3) status. Partnership – Attach Partnership Agreement General Partnership - General Partnership Agreement
Limited Partnership - Attach Certificate of Limited Partnership A business association or a joint venture
Co-Borrower Address Address City State, Zip
Primary Contact Person Phone FAX E-Mail Other names under which you have done business.
Taxpayer Identification
Number
Borrower’s Organization
Check One
Corporation – Attach Articles of Incorporation Non-Profit – Attach Articles of Incorporation and verification of 501 C(3) status. Partnership – Attach Partnership Agreement General Partnership - General Partnership Agreement
Limited Partnership - Attach Certificate of Limited Partnership A business association or a joint venture
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
cherihoffman@cels
eainvestco.com
Carlsbad
Cheri Hoffman
X
760-456-6000
6339 Paseo Del LagoChelsea Investment
Corporation
N/A
90-0151442
N/A
CA, 92011
760-456-6001
Nov. 18, 2021 Item #3 Page 23 of 48
Provide names, addresses, business addresses, telephone numbers, title of position (if any) and
nature and extent of the interest of the current officers, principal members, shareholders, and
investors of the applicant entity.
Name Address Phone Fax
E-Mail Title of Position Nature of Interest Extent of Interest
Name Address Phone Fax
E-Mail Title of Position Nature of Interest Extent of Interest
Name Address Phone Fax
E-Mail Title of Position Nature of Interest Extent of Interest
Name Address Phone Fax
E-Mail Title of Position Nature of Interest Extent of Interest
Name Address Phone Fax
E-Mail Title of Position Nature of Interest Extent of Interest
Add additional pages if necessary.
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
Nov. 18, 2021 Item #3 Page 24 of 48
Has the Borrower had any professional license suspended, revoked, lapsed and/or terminated for
any reason? If yes, please explain.
YES NO EXPLANATION
Has the Applicant filed for bankruptcy, either voluntarily or involuntarily, within the past 10 years?
If yes, please explain and state the case number and the case name and whether the case was
dismissed, discharged, or is current.
YES NO EXPLANATION
Has the Applicant defaulted on a financial obligation? If yes, please explain.
YES NO EXPLANATION
Is there, or has there ever been, a settlement and/or judgment filed or a case pending against the
Applicant? If yes, please explain.
YES NO EXPLANATION
Has a lien ever been filed against real property owned by the Applicant as a result of a judgment or failure to pay taxes, etc? If yes, please explain.
YES NO EXPLANATION
Has the Applicant been convicted of any felony or any crime other than minor traffic violations and/or placed on probation, fined or given a suspended sentence in court within the past 10 years? If yes, please explain.
YES NO EXPLANATION
Has the Applicant or any of its partners or principals ever been cited and/or convicted of a misdemeanor, including but not limited to a conviction under local health, fire, environmental
and/or building and safety laws, relating to the ownership and/or management of real property? If
yes, please explain.
YES NO EXPLANATION
Does the Applicant – Contractor/Builder have an ownership/investor interest in the development?
If yes, please explain.
YES NO EXPLANATION
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
X
X
not currently
X
Chelsea will form a tax credit limited partnership to serve as owner/borrower of the project in which a Chelsea affiliate will serve as a general partner.
X
X
X
X
Nov. 18, 2021 Item #3 Page 25 of 48
Does the Applicant have any employees or relatives who have close associations with current or
former employees of the City of Carlsbad to which the accompanying proposal is being made? If
yes, state names, dates of employment, and interest.
YES NO EXPLANATION
Does the Applicant employ any current or former employee(s) of the City of Carlsbad? Does the
Applicant employ relatives of employees of the City of Carlsbad? If yes, state names, dates of
employment, and interest.
YES NO EXPLANATION
Are there any City of Carlsbad employees (current or former) who have a financial interest in this
project? If yes, state names, dates of employment, and interest.
YES NO EXPLANATION
Has the contractor or builder, within the last 10 years, ever failed to qualify as a responsible
bidder, refused to enter into a contract after an award has been made, or failed to complete a
construction or development contract? If yes, please explain.
YES NO EXPLANATION
Is the proposed Applicant – Contractor/Builder currently involved in any construction-related
litigation? If yes, please explain.
YES NO EXPLANATION
Has the Applicant – Contractor/Builder ever been disqualified, removed from, or otherwise
prevented from bidding on or completing a federal, state, or local government project because of a
violation of law or a safety regulation? If so, please explain the circumstances in detail.
YES NO EXPLANATION
Within the last five years, has the Applicant – Contractor/Builder been the subject of a complaint
filed with the Contractor’s State License Board (CSLB)? Within the last five years, has the
Applicant – Contractor/Builder had a revocation or suspension of a Contractor’s License? If yes, please explain.
YES NO EXPLANATION
Has the Applicant failed to comply with Davis-Bacon or State Prevailing Wage requirements on any previous development projects? If yes, please explain.
YES NO EXPLANATION
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
X
X
X
X
X
X
X
X
Nov. 18, 2021 Item #3 Page 26 of 48
Has the Applicant been the subject of an investigation of Fair Housing and Employment Practices
or been in violation of affordability clauses in recorded regulatory agreements of the City of
Carlsbad or any other federal, state, or local housing agency? If yes, explain the nature of the
complaint and the outcome.
YES NO EXPLANATION
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
X
Nov. 18, 2021 Item #3 Page 27 of 48
City of Carlsbad
Housing Trust Fund
Applicant Certification
Applicant warrants and certifies that it will not during the term of the project, loan,
contract, development and/or rendition of services discriminate against any employee,
person, or applicant for employment because of race, age, sexual orientation, marital
status, color, religion, sex, handicap, or national origin. The Applicant will take affirmative
action to ensure persons who are employed are treated during employment, without
regard to their race, age, sexual orientation, marital status, color, religion, sex, handicap or national origin. Such action shall include, but not be limited to the following:
employment, upgrading, promotion or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. The Applicant agrees to post in conspicuous places, available to employees and applicants for employment,
notices regarding fair employment practices setting forth the provisions of this
nondiscrimination clause.
Applicant warrants and certifies that no member, commissioner, council-person, officer, or employee of the City of Carlsbad, no member of the governing body of the locality in
which the City of Carlsbad was activated, and no other public official of such locality or
localities who exercises any functions or responsibilities with respect to the assignment of work, has during his or her tenure, or will for one (1) year thereafter, have any interest,
direct or indirect, in this PROJECT or the loan proceeds thereof.
Borrower Signature Print Name
Date Title
Co-Borrower Signature Print Name
Date Title
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
9/14/2021
Cheri Hoffman
9/14/2021
Project Manager
President
Lance M. Waite
Nov. 18, 2021 Item #3 Page 28 of 48
CITY OF CARLSBAD
HOUSING TRUST FUND LOAN APPLICATION
AUTHORIZATION
To Verify Applicant’s Creditworthiness
PRIVACY NOTIFICATION. The information requested in this Application and Certification Statement
is to be used by the City of Carlsbad to assess the applicant’s creditworthiness. Information provided that is contained in public records cannot be withheld from disclosure under the California Public Records Act Gov. Code Sections 6250 and 6254. All other information may be required to be disclosed outside the agency by state and/or federal law.
All information requested on this form, is mandatory. Failure to provide such
information may result in disqualification of the application or a withdrawal of City of
Carlsbad’s commitment.
CRIMINAL PENALTIES. Any person who shall knowingly make or cause to be made in writing, either directly or indirectly, any false statement, with the intent that it shall be relied upon, for the
purpose of procuring the loan secured by real property, shall be guilty of a criminal offense,
punishable by a fine not exceeding ten thousand dollars ($10,000.00), or by imprisonment in a
county jail not exceeding six months, or by both the fine and imprisonment. California Penal Code
sections 532(a) and 532(f).
CONTINUING OBLIGATION. The applicant has a continuing obligation to provide the City of
Carlsbad with current and accurate information. Applicant must provide to City of Carlsbad all
requested information, with an Applicant’s Certification Statement for any individual or entity that
City of Carlsbad, in its sole discretion, believes is necessary to evaluate the application (reasonably
related to the applicant).
By signing below, authorization is hereby provided to the City of Carlsbad to verify any and all
information provided in the proposal, including, but not limited to, the organization’s credit rating,
status and payment history of real estate loans and performance on contracts with third parties.
The City of Carlsbad is further authorized to utilize photocopies of this authorization to obtain third
party contractual and credit references and status of the organization’s obligations. I understand
that the confidentiality of the information I have furnished will be preserved except where disclosure of this information is required by applicable law.
CERTIFICATION/AUTHORIZATION. I, the undersigned, certify that the information provided to the
City of Carlsbad in this application is true and correct as of the date set forth below. My signature
on this application package is an acknowledgment that any false or misleading statements of the
information contained, may result in civil liability and liability for monetary damages to the lender, its agents, successors, and assigns, insurers, and any other person who may suffer any loss due to reliance upon any false or misleading statements which I have made on this Applicant Disclosure
Statement.
Borrower Signature Print Name
Date Title
Co-Borrower Signature Print Name
Date Title
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
9/14/21
Lance M. Waite
President
Managing Partner
Cheri Hoffman
9/14/21
Nov. 18, 2021 Item #3 Page 29 of 48
CITY OF CARLSBAD HOUSING TRUST FUND APPLICATION
CONSENT TO PUBLIC DISCLOSURE BY APPLICANT
By providing the “Personal Information,” (if any) as defined in Section 1798.3(a) of the Civil Code of the State of California (to the extent that it is applicable, if at all), requested herein and by seeking a loan from, or a contract with, the sale of real estate to, the right to develop from and/or any and all other
entitlements from the City of Carlsbad, the applicant consents to the disclosure of any and all “Personal
Information” and of any and all other information contained in this Applicant Disclosure Statement.
Applicant specifically, knowingly and intentionally waives any and all privileges and rights that may exist
under State and/or Federal Law relating to the public Applicant, by executing this disclosure statement
and providing the information requested, consents to its disclosure pursuant to the provisions of the Information Practices Act of 1977, Civil Code Section 1798.24. Applicant is aware that a disclosure of information contained herein will be made at a public meeting or meetings of the City of Carlsbad at
such times as the meetings may be scheduled. Applicant hereby consents to the disclosure of said
“Personal Information,” if any, more than thirty (30) days from the date of this statement at the duly
scheduled meeting(s) of City of Carlsbad. Applicant acknowledges that public disclosure of the
information contained herein may be made pursuant to the provisions of the Civil Code Section 1798.24(d).
Applicant represents and warrants to City of Carlsbad that by providing the information requested herein
and waiving any and all privileges available under the Evidence Code of the State of California, State and
Federal Law, (to the extent of this disclosure that the information being submitted herein), the
information constitutes a “Public Record” subject to disclosure to members of the public in accordance with the provisions of California Government Section 6250 et seq.
Applicant specifically waives, by the production of the information disclosed herein, any and all rights
that Applicant may have with respect to the information under the provisions of Government Code
Section 6254 including its applicable subparagraphs, to the extent of the disclosure herein, as well as all
rights of privacy, if any, under the State and Federal Law.
Executed this ____ day of _______________, 202__, at _____________ County, California.
APPLICANT
Borrower Signature Print Name
Date Title
Co-Borrower Signature Print Name
Date Title
DocuSign Envelope ID: B9465266-9B5D-4F76-B02E-190F5B425C4A
9/14/2021
9/13/2021
14th September
Managing Partner
Cheri Hoffman
9/14/2021
San Diego
President
Lance M. Waite
Nov. 18, 2021 Item #3 Page 30 of 48
______________________________________________________________________________
Finance
Development
Management
6339 Paseo del Lago
Carlsbad, CA 92011
Tel (760) 456-6000
Fax (760) 456-6001
www.chelseainvestco.com
Chelsea Investment Corporation is a real estate company focused on the financing and development of
affordable housing. Incorporated in 1986 by James J. Schmid, who still serves as CEO, Chelsea is a
vertically integrated company with asset management, construction, and community investment
affiliates.
Having developed over 11,000 units throughout the western United States, at a total cost in excess of
$2.5 billion, Chelsea meets and exceeds the level of experience necessary to develop affordable housing
in today’s complex financing environment. Chelsea has developed infill, rural, inclusionary, senior,
special needs, and mixed-use projects with a variety of non-profit partners, such as Father Joe’s Villages,
Serving Seniors, Housing Development Partners, Alpha Project, Weingart Center Associates, and
Southern California Housing Collaborative.
Of the rental homes completed, approximately 4,000 are in urban infill sites, 4,500 are located in
suburban locations, and 2,000 are in rural areas. Approximately 3,300 have satisfied inclusionary
obligations, 2,000 apartments are senior housing and 1,400 apartments are supportive housing.
Additionally, while Chelsea has primarily focused on new construction projects, the company has
preserved about 1,400 affordable apartments through acquisition and rehabilitation. Virtually all
projects have been developed with soft residual receipts loans through public-private partnerships with
the federal, state or local government.
Chelsea has successfully integrated AHP, AHSC, MHP, CDBG, HOME, IIG, TOD, MHSA and redevelopment
housing set-aside funds into many projects, in addition to the 4% and 9% low income housing tax credits
and tax-exempt bond financing. In one project alone, Chelsea utilized loan and grant subsidies from 14
different funding sources.
•To date, Chelsea has developed over 120 affordable communities throughout California, New
Mexico and Arizona.
•Total tax credit equity of over $1 billion.
•Total permanent loan and tax-exempt bond proceeds of over $750 million.
•Ranked as 11th in Affordable Housing Finance Magazine’s Top 50 Developers of 2018.
•2015 and 2018 Builder of the Year - Building Industry Association of San Diego.
•Chelsea and its communities are consistently recognized in many categories, including awards
for design excellence, preservation of affordable housing, housing for the developmentally
disabled, and supportive housing.
EXHIBIT 4
Nov. 18, 2021 Item #3 Page 31 of 48
______________________________________________________________________________
Finance
Development
Management
6339 Paseo del Lago
Carlsbad, CA 92011
Tel (760) 456-6000
Fax (760) 456-6001
www.chelseainvestco.com
Company Profile
Chelsea Investment Corporation is a dominant producer of affordable housing in California and the
leading developer of affordable housing in San Diego County. Founded by CEO Jim Schmid in 1986 as a
for-profit corporation, Chelsea’s officers have each been with the company for over 25 years: Cheri
Hoffman, President, and Charles Schmid, Chief Operating Officer. Headquartered in Carlsbad, California,
Chelsea is a vertically integrated company with asset management, construction, and community
investment affiliates.
Having developed over 10,000 affordable apartments throughout the western United States, at a total
cost in excess of $2 billion, Chelsea meets and exceeds the level of experience necessary to develop
affordable housing in today’s complex financing environment. Chelsea specializes in engineering
financing solutions to deliver infill, rural, inclusionary, special needs, and mixed-use developments that
complement and enhance their surrounding neighborhood. At each development, Chelsea identifies and
partners with a leading non-profit service provider, such as Father Joe’s Villages, Serving Seniors, and
Alpha Project, to customize a menu of supportive services that are available at no cost to residents.
Chelsea has produced 65% of the inclusionary housing in San Diego and has had longstanding
relationships with homebuilder clients such as Beazer, Brookfield, Centex, Lennar, McMillin, Pardee,
Shea, and more. Of the rental homes completed, approximately 3,000 are in urban infill sites, 4,000 are
located in suburban locations, and 2,000 are in rural areas. Over 3,000 apartments have been for
residents with special needs, including vulnerable seniors, people facing homelessness, and people with
developmental disabilities. Additionally, while Chelsea has primarily focused on new construction
projects, the company has preserved about 1,000 apartments as affordable rentals through acquisition
and rehabilitation. Virtually all projects have been developed with soft residual receipts loans through
public-private partnerships with the federal, state or local government.
Led by Cheri Hoffman, Chelsea’s innovative financing team has successfully integrated AHP, AHSC, MHP,
CDBG, HOME, IIG, TOD, MHSA and redevelopment housing set-aside funds into many projects, in
addition to the 4% and 9% low income housing tax credits and tax-exempt bond financing. In one project
alone, Chelsea utilized loan and grant subsidies from 14 different funding sources.
Chelsea is a long-term owner and operator of more than 85 communities that are consistently
recognized in many categories, including awards for design excellence, preservation of affordable
housing, housing for people with disabilities, and supportive housing. The company’s affiliates work as a
cohesive team to ensure quality through each stage of a project’s development. Incorporated in 2000,
Emmerson Construction specializes in delivering multifamily and mixed-use developments on time and
within budget. Similarly, CIC Management, incorporated in 2003, provides asset management and
property management oversight to Chelsea’s portfolio of properties.
Nov. 18, 2021 Item #3 Page 32 of 48
•To date, Chelsea has developed over 100 affordable communities throughout California, New
Mexico and Arizona.
•Total tax credit equity of over $1 billion.
•Total permanent loan and tax-exempt bond proceeds of over $750 million.
•Ranked as 11th in Affordable Housing Finance Magazine’s Top 50 Affordable Housing Developers
in the country.
•2015 and 2018 Builder of the Year - Building Industry Association of San Diego.
Nov. 18, 2021 Item #3 Page 33 of 48
Comparable Project Experience
St. Theresa of Calcutta Villa
(FKA 14th & Commercial)
San Diego, CA
TDC: $187,000,000
Owner: 14th & Commercial CIC, LP
Developer: Chelsea Investment Corp.
GC: Level 10 Construction
Architect: Joseph Wong Design Associates
Key Staff: Cheri Hoffman, Jodi Rothery, Rob
Campbell
Start Date: January 2020
Completion: 1Q 2022
Reference: Bill Bolstad
Chief Development Officer
Father Joe’s Villages
619-446-2128
Bill.Bolstad@neighbor.org
14th & Commercial is a 14-story mixed-use development that will provide 407 affordable apartments and
supportive services to people facing homelessness in downtown San Diego. The design includes 13,700
square feet of related commercial space for amenities and services. Resident services will be provided
by Father Joe’s Villages, the largest homeless services provider in San Diego County.
Chelsea has secured $20 million in AHSC funds for the transit-oriented development, which will be
adjacent to a major light rail and bus station. In addition to revitalizing a blighted infill site, development
of 14th & Commercial implements a phase of the Downtown San Diego Mobility Plan that will install over
two miles of cycle track to improve access for bicyclists and enhance safety and accessibility of walkways
in the surrounding community.
Alpha Square
San Diego, CA
TDC: $47,000,000
Owner: Alpha Square 4%, LP and
Alpha Square 9%, LP
Developer: Chelsea Investment Corp.
GC: Emmerson Construction
Architect: Joseph Wong Design Associates
Key Staff: Cheri Hoffman, Matt Grosz, Bob
Cummings
Start Date: March 2014
Completion: December 2015
Nov. 18, 2021 Item #3 Page 34 of 48
Reference: Bob McElroy
President & CEO
Alpha Project
619-542-1877
bob@alphaproject.org
Alpha Square is a mixed-use infill development in downtown San Diego providing 203 apartments as
well as comprehensive supportive services for people experiencing homelessness. Chelsea implemented
an innovative financing structure utilizing bifurcated 9% and 4% low income housing tax credits to
develop the building for Alpha Project, a leading non-profit provider of services to homeless individuals.
Construction included five floors of residential units above 6,000 sf of ground floor retail and service
space, with a secure interior courtyard, underground parking and rooftop recreation space. This LEED
Gold development is celebrated as a successful model of the Housing First approach to ending
homelessness and was recognized as the BIA’s 2015 Best Affordable Project ICON Award as well as
Affordable Development of the Year from Our City San Diego magazine.
16th & Market
San Diego, CA
TDC: $71,000,000
Owner: 16th and Market, LP
Developer: Chelsea Investment Corp.
GC: Suffolk Roel
Architect: Joseph Wong Design Associates
Key Staff: Cheri Hoffman, Jordan Penn
Start Date: June 2007
Completion: January 2009
Reference: Bill Bolstad
Chief Development Officer
Father Joe’s Villages
619-446-2128
Bill.Bolstad@neighbor.org
16th and Market is a 136-unit mixed-use affordable
apartment building constructed to fulfill the inclusionary housing requirement of Ballpark Village and
serve households earning between 30% and 60% AMI. The project includes apartments set aside for
people facing homelessness, as well as ground floor retail space and underground parking. Chelsea
worked closely with St. Vincent De Paul/Father Joe’s Villages to create an affordable housing community
that incorporated all of the best practices of high-rise mixed-use development.
Chelsea secured an extensive array of financing for the $71,000,000 project by leveraging a significant
amount of subsidy financing with 4% tax credit equity.
Nov. 18, 2021 Item #3 Page 35 of 48
EXECUTIVE TEAM
James J. Schmid
Founder/CEO
During his nearly 40-year career, Jim’s responsibilities have included project acquisition, financing,
design, construction, marketing and property management of commercial, industrial and residential
projects throughout the country. For the last 25 years, he has focused on development of affordable
housing. A respected authority in all aspects of real estate development and management, Jim is a
former lecturer for the MSRE degree program at University of San Diego, Past Chairman of the San Diego
Building Industry Association, and sought-after panelist and speaker. He is a passionate advocate for the
creation and preservation of safe, accessible, and affordable housing; his service to the industry has
recently been acknowledged by his induction into the Building Industry of San Diego Hall of Fame.
In addition to growing Chelsea to a company of over 80 employees and a development portfolio of $2
billion, Jim is an attorney with an advanced degree in tax law. As CEO, he is responsible for strategic
management of Chelsea and its affiliates.
Cheri Hoffman
President
Cheri has been part of the Chelsea development team since 1994 and has participated in the
development of close to 100 affordable apartment communities, involving over $2 billion in financing.
She is an authority in financial modeling incorporating tax credits and tax-exempt bonds, and has
extensive experience securing multiple forms of local, state, federal and private funding sources. She is
involved throughout the development process, from early feasibility analysis to lease up and
stabilization. Cheri received her degree in Accounting from California State University in Fullerton and
continued her education with finance studies at California Polytechnic University in Pomona.
Charles A. Schmid
Chief Operating Officer
Charles has been with Chelsea since 1986, and also serves as President of Chelsea’s affiliated general
contractor, Emmerson Construction. He applies experience with real estate finance, development and
management to facilitate the needs of both companies. Charles, a licensed general contractor, has
supervised the construction of more than 8,000 units throughout California and Arizona. With a degree
from UC San Diego, he has a thorough understanding of the life cycle of apartment development, from
feasibility analysis through lease-up.
Shannon Vanderhei
Capital Transactions Manager
Shannon Vanderhei has over 15 years of experience working for real estate development, syndication,
lending and property management companies. Her experience includes acquisitions, dispositions,
Nov. 18, 2021 Item #3 Page 36 of 48
financing, property management, asset management, construction, rehabilitation and due diligence. Her
role at Chelsea Investment Corporation includes financing and financial modeling of projects along with
managing the closing and conversion transactions. Shannon earned a B.B.A. in Real Estate and
Marketing from the University of Wisconsin at Milwaukee.
Adam Gutteridge
Director of Asset Management
Adam manages the Asset Management portfolio, which includes some 6,000 units in over 60 properties.
He has nearly 20 years of experience in affordable housing development, most recently as Vice
President of Asset Management with Vitus Group, where he managed the design and construction of
over 30 acquisition-rehabilitation projects financed with a mix of tax-exempt bonds, low income housing
tax credits, and HUD and USDA-RD loan proceeds. Adam earned a BS in Business with an emphasis in
Finance from the University of Florida, where he graduated with honors.
Rob Campbell
Director of Construction
Formerly with JPI, Ledcor, Swinerton, and Roel, Rob has over 33 years of experience in high-rise, mis-
rise, multi-family residential, hotel and commercial construction. Having gained his experience on large
projects in the San Diego and Los Angeles areas, he is responsible for the day-to-day operations to
ensure projects are completed on time and within budget, and that site safety, environmental
standards, quality of materials and workmanship meet or exceed standards.
Jim Andersen
Chief Financial Officer
Jim serves as the CFO of Chelsea Investment Corporation. He has over 30 years of experience in a
variety of roles in the Real Estate industry. Proficient in both Financial Management and Development,
Jim has served as a Development Partner and executive for Legacy Partners, Del Mar Development,
Trammell Crow Company and NMS Properties. In his career, he has sourced, entitled, financed and/or
completed several thousand units in California. In addition, Jim was Chief Financial Officer for Bay
Apartment Communities (predecessor to Avalon Bay), and Trammell Crow Company.
Jim is very active in the industry as a member of ULI and NMHC. He earned his CPA while at Peat
Marwick and Company and graduated from Loyola Marymount University with A BS in Accounting.
Nov. 18, 2021 Item #3 Page 37 of 48
Heidi W. Mather
Director of Development
Heidi W. Mather has been a real estate professional for over 30 years. Early in her career, Heidi’s
responsibilities included land use planning for the city of San Diego and private sector entitlement
processing. For the last 22 years she has focused on market-rate apartment development. Heidi has
been responsible for the entire life cycle of a deal: due diligence, investment approvals, project design,
consultant management, the entitlement and public approval process, permit processing, government
and stakeholder interface, capitalization and loan management. She has also acted as the Owner’s
Representative during the construction and lease-up phases and assisted with project disposition. Heidi
has developed nearly 9,000 homes in California and Arizona represented by a variety of product types
with an aggregate capitalization value in excess of $2.5 billion. With an Urban Studies and Planning
degree from the University of California, San Diego, she has a deep understanding of the multi-family
development process.
Nov. 18, 2021 Item #3 Page 38 of 48
6339 Paseo Del Lago
Carlsbad, CA 92011
Tel (760) 456-6000
Fax (760) 456-6001
Resume
Formed in 2003 and led by Adam Gutteridge, Director of Asset Management, CIC Management is
currently contracted to manage Chelsea Investment Corporation’s portfolio of 83 properties comprised
of over 7,100 units. Geographically these properties are located throughout California and in New
Mexico.
Staff at the apartment communities is typically represented by an On-Site Community Manager and a
Full Time Maintenance Technician. The larger apartment communities also have an Assistant
Community Manager, additional Maintenance Staff and a Housekeeper.
On a day-to-day basis, the On-Site Staff interact with the Regional Portfolio Managers with respect to
operational issues and questions relating to policy and procedures. The Regional Portfolio Managers
personally visit each site in their portfolio every two weeks. Complete physical inspections of the
properties are conducted twice a year. The Regional Portfolio Manager is always present for any
Investor, Lender or Agency audits and inspections.
On a routine basis for tenant recertification or qualification at move in, the Compliance Staff works with
the On-Site Community Manager, Assistant Community Manager and Regional Portfolio Managers to
audit and approve files. Each quarter a full file audit is completed for new move-ins and income
recertifications over the prior 90 days. Quarterly compliance training is provided to all site level
personnel and Regional Portfolio Managers and ongoing as needed for refresher training and changes in
regulatory requirements. Compliance Monitoring Software has recently been implemented for
monitoring recertifications, income qualifications and set asides.
In addition to external reporting to Investors, Lenders and Agencies, in-house financial statements are
prepared and evaluated on a monthly basis to compare the property performance to budget. Audited
Financial Statements are prepared by an Independent CPA on an annual basis.
Due to the declining affordability of housing in the region, coupled with social and agency awareness to
provide housing at the affordable level, new housing units will continue to come on line. Concurrently,
since the affordability period of these housing units exceeding 50 years in most cases, the expertise and
reputation that CIC Management continues to have in the industry and ensures the continued need for
managers of CIC Management’s caliber who will understand the needs of maintaining existing units as
they mature.
Nov. 18, 2021 Item #3 Page 39 of 48
Nov. 18, 2021Item #3 Page 40 of 48
Nov. 18, 2021Item #3 Page 41 of 48
CONSTRUCTION PERIOD FUNDING (List all sources of funding)
Yes No
Federal LIHTC Equity/TBD 705,287$ N/A N/A 16,793$ X
Construction Loan/TBD 10,773,141$ 18 4.50%256,503$ X
City of Carlsbad/Amanda Mills
760-434-5352 1,500,000$ 18 3.00%35,714$ X
Integral Communities (Offsite
Reimbursement Note)/Greg Waite
760-944-7511, ext 103
1,654,626$ 660 3.00%39,396$ X
Integral Communities (Land
Donation)/Greg Waite
760-944-7511, ext 103
1,680,000$ N/A N/A 40,000$ X
Soft Loan Interest/Integral & City Notes 49,639$ N/A N/A 1,182$ Integral City
Deferred Costs & Fees (CIC)/Cheri
Hoffman
760-795-5606
2,175,571$ N/A N/A 51,799$ X
TOTAL 18,538,265$ 441,387$
PERMANENT FUNDING (list all sources of funding, including amount reuqested from City)
Yes NoFederal LIHTC Equity/TBD 7,052,873$ N/A N/A 167,926$ X
Permenant Loan/TBD 5,977,000$ 216 4.50%142,310$ X
City of Carlsbad/Amanda Mills
760-434-5352 1,500,000$ 660 3.00%35,714$ X
Integral Communities (Offsite
Reimbursement Note)/Greg Waite
760-944-7511, ext 103
1,654,626$ 660 3.00%39,396$ X
Integral Communities (Land
Donation)/Greg Waite
949-944-7511, ext 103
1,680,000$ N/A N/A 40,000$ X
Soft Loan Interest/City & Integral Notes 74,458$ N/A N/A 1,773$ Integral City
Deferred Developer Fee (CIC)/Cheri
Hoffman
760-795-5606
599,307$ N/A N/A 14,269$ X
TOTAL 18,538,265$ 441,387$
Interest
Rate Per Unit Cost Committed
CommittedName of Lender/Source
Contact Person and
Phone Number
Amount Term in
Months
Interest
Rate Per Unit Cost
Name of Lender/Source
Contact Person and
Phone Number
Amount Term in
Months
EXHIBIT 5
Nov. 18, 2021 Item #3 Page 42 of 48
Carlsbad - West Oaks
Modified on: 9/01/2021
Modified by: CH
Closing Completion Conversion 8,609
Value of Land Cost 9.1%$40,000/unit 1,680,000$ Equity Pay In 10%88%2%
$46,573/unit 1,956,085
$119/unit 5,000 0.8600$ 3,641,085 N/A
0.8600$
Fixed rate 4.00%Census Tract:22100 - High Resource
8,369,237$
$0/unit
Site Work $21,739/unit 913,043 96.99%
Parking Garage/Carports $0/unit 0
Vertical 0 stalls $161,071/unit 6,765,000
GC Contingency #DIV/0!$9,141/unit 383,902 0
GC Overhead/Profit/ GR's 5.6%$26,873/unit 1,128,672 6.48%
$10,941/unit 459,531 21.00%
0.0%
$274.21/gsf 9,650,149
Construction Contract w/o OC 9,650,149 AMI Studio 1BR 2BR 3BR Totals
6,381 Sq. Ft.0 550 854 1,032 32,050
357
$14,740/unit 619,100 250 UA $0 $14 $19 $21
$21,333/unit 895,970 5.00%70%0 1 1 1 3
$5,000/unit 210,000 1.15 60%0 12 9 7 28
$2,239/unit 94,039 35 50%0 3 1 1 5
$24,738/unit 1,039,000 4.35%45%0 0 0 0 0
$49,984/unit 2,099,307 4.50%40%0 0 0 0 0
$4,681/unit 196,604 5,977,000$ 35%0 0
$2,215/unit 93,011 5,067,746$ 30%0 3 1 1 55,247,031 11,044,746$ Mgr.0 0 0 1 1
Totals 0 19 12 11 4218,538,265 54.05%10,020,000
55.85%
Cash Developer Fee TCAC Max 1,920,000 1,500,000
130%
Federal LIHTC Equity 7,052,873 No
Permanent Loan (Tranche A)5,977,000 62.14%
599,307
$35,714/unit 1,500,000
$301,459 Paid 1,654,626 Large Family
74,458 No 4/15/22
$0/unit 0 9/1/22
1,680,000 Solar State Fed 7/1/23
18,538,265 0 0 0 9/1/23
0 0 820,102 1/1/24
0 0 820,102 4/1/24
Master Developer Offsite Reimbursement Note
Conversion/Stabilization
8609
Housing Set Aside
50% Test
LP Interest
IRR
Opr. Exp./Unit/Year
4% credits, Bonds, City & Master Developer Subsidy
18,500
Financing Sources:
Debt
Tax- Exempt/taxable Bonds - Construction
Interest Rate - Construction Loan
Tax- Exempt Bonds - Construction/Perm
Owner Soft Cost Contingency
Archcitect, Survey & Engineering
Interest Rate - Permanent Loan
Reserves
Development Impact and Permit Fees
Developer Fee
Replacement Reserves/Unit/Year
Vacancy Rate
DCR
Perm Loan Amort
PROJECT UNIT & INCOME MIX Owner Contingency
Services Exp./Unit/Year
Tax Rate
MSA:
4 Person 50% AMI:
Site (acres):
Construction Type:
No. of Stories:
Parking Type:
Impact Fees per Unit:
3 story walk-up
surface
Extraorindary Cond:
No. of Stalls:
Solar Credits
Carlsbad
San Diego-Carlsbad-San Marcos$60,600Acquisition
Closing costs
Subtotal Acquisition $86,693/unit
City:
Equity
FINANCING ASSUMPTIONS
Proposed Loan from City of Carlsbad
Total Development Costs
2nd Yr Credit Delivery
Construction Begin - Initial Closing
Soft Loan Interest
Master Developer Land Donation
Tax Credit Allocation
Construction Complete - est 10 months
Prevailing Wage (State, Federal, Both):
Master Developer Gap Loan
Total Development Sources
Deferred Developer Fee
$229,765/unit
PROJECT SUMMARY
Building Architecture
Federal Tax Credit Price
State Tax Credit Price
Hard Costs
9/14/21 12:00 AM
SOURCES AND USES SUMMARY
Development Costs
Type V
Seller Infrastructure/Offsite Costs
PRELIM DEVELOPMENT PROGRAMMING SUMMARY
10 Yr Federal Tax Credits
Solar Tax Credit Price
4% Credit Rate
Avg Affordability
Financing Fees and Interest
Tax Credit Considerations
DDA/QCT Boost
Rural Designation
PROJECT TIMING -TBD estimate only
Subtotal Hard Costs
Remaining Development Soft costs
Sources
Legal Fees
Subtotal Soft Costs Total Bonds
Lease Up Complete
1900
CA 9% Site Amenity Score
$124,929/unit
$441,387/unit
3rd Yr Credit Delivery
1st Yr Credit DeliveryNov. 18, 2021Item #3 Page 43 of 48
Attachment A
90 {cityof Carlsbad Policy No.
Date Issued:
Effective Date:
Resolution No.
Cancellation Date:
12-08-2020
12-08-2020
2020-233
Council Policy Statement
Category: AFFORDABLE HOUSING
Specific Subject: Administration of the Housing Trust Fund
PURPOSE:
Supersedes No. N/A
Pursuant to Carlsbad Municipal Code (CMC} Sections 21.85.llO(D) and 21.85.120, all fees collected under
the lnclusionary Housing Ordinance shall be deposited into a Housing Trust Fund and expended for the
affordable housing needs of lower-income households, consistent with the General Plan Housing Element
and the CMC.
21.85.110 In-lieu fees. (D) All in-lieu fees collected hereunder shall be deposited in a
housing trust fund. Said fund shall be administered by the city and shall be used only for
the purpose of providing funding assistance for the provision of affordable housing and
reasonable costs of administration consistent with the policies and programs contained
in the housing element of the general plan.
21.85.120 Collection of fees. All fees collected under this chapter shall be deposited into
a housing trust fund and shall be expended only for the affordable housing needs of
lower-income households, and reasonable costs of administration consistent with the
purpose of this chapter.
Funding from the fund, which should be leveraged to the extent feasible with state, federal and private
sector subsidy capital, is intended to aid in the production, acquisition, rehabilitation and preservation of
housing affordable to extremely low-, very low-and low-income households, and those experiencing
homelessness.
BACKGROUND:
The city's lnclusionary Housing Ordinance was established in April 1993 and requires that all residential
developments greater than six units restrict 15 percent of the total number of homes in a project as
affordable to lower income households. This obligation is fulfilled through construction of a variety of
rental or ownership units, both on-and off-site. Some developments have the option to satisfy a portion or
all of their affordable housing obligation through payment of inclusionary housing in-lieu fees or by
purchasing affordable housing credits, when available.
For the city to receive and use these fee payments, an implementation mechanism was needed to ensure
that the funds collected were applied appropriately. As a result, the Housing Trust Fund was established to
confirm that fees collected were applied only towards the affordable housing needs of lower income
households, and for reasonable costs of administration consistent with the purposes of the General Plan
Housing Element and lnclusionary Housing Ordinance (Carlsbad Municipal Code Sections 21.85.110 and
21.85.120). The Housing Trust Fund receives revenue from other sources, including interest from loans,
housing credit purchases, housing impact fees, and interest earned on the fund balance.
Page 1 of 5
Exhibit 6
Nov. 18, 2021 Item #3 Page 44 of 48
Policy No. 90
Over the past 20-years, the Housing Trust Fund has been used to support a variety of affordable housing
development and services for lower income and homeless individuals and families. As a local fund, the City
Council determines how Housing Trust Fund money can be spent, provided expenditures are consistent
with the purposes of the lnclusionary Housing Ordinance and the policies and programs in the General Plan
Housing Element.
POLICY:
It is the policy of the City Council that the Housing Trust Fund shall be administered as follows. It is the
expectation of the City Council that contractors and vendors who receive monies from the HTF shall also
comply with these policies, as appropriate.
1.Use of the Funds
a."Affordable housing" as used in this policy shall have the same meaning as in CMC Section
21.85.020(A).
b.Housing Trust Fund dollars may be used for new construction, acquisition and/or
rehabilitation, subsidy or other means to assist other governmental agencies, nonprofit groups
and private organizations or individuals in creating or maintaining affordable housing.
c.For new construction and acquisition/rehabilitation projects, Housing Trust Fund dollars are
intended to offer "gap" financing. The subsidy required should be the minimum amount
necessary to both ensure the feasibility of a project and the affordability of the units. Projects
are expected to support as much debt as feasible and to attract as much equity investment as
is typical for similar projects.
d.Low-interest loans are the generally preferred form for distributing housing trust fund dollars
for work in all stages of housing development. However, grants may also be considered.
e.Housing Trust Fund dollars may be used to provide new affordable rental or ownership housing
units.
f.Housing Trust Fund dollars shall not be used to satisfy a development's inclusionary housing
requirement but may be used to assist in exceeding the requirement by increasing the number
of affordable units and/or expanding affordability to very low-or extremely low-income
households, or to encourage a preferable product type.
g.Financial assistance requests will be evaluated by the Affordable Housing Policy Team and
presented to the Housing Commission for review and recommendation to the City Council. The
City Council is the final decision-maker for financial assistance requests.
h.Housing Trust Fund dollars may be used to cover reasonable administrative costs1 that are
necessary to administer the fund. The level of administrative expenses will be determined by
the City Council as part of the annual budget. However, administrative expenses shall not
exceed 5% of the available housing trust fund balance as of the end of the prior fiscal year.
1 Administrative costs include, but not limited to personnel expenses and maintenance and operational (M&O)
expenses that are specifically related to the administration of the HTF. Funds may also be used to supplement
administrative and operational support for other housing programs such as Section 8 and CDBG. Housing Trust Fund
dollars shall not be used for the following M&O costs: travel and training.
Page 2 of 5 Nov. 18, 2021 Item #3 Page 45 of 48
Policy No. 90
i.The annual budget process for the housing trust fund shall be guided by General Plan Housing
Element policies and programs, the lnclusionary Housing Ordinance, and the following general
affordable housing priorities, in descending order:
1.Construction of new affordable housing
2.Preservation of housing at-risk of conversion to market rate
3.Acquisition/rehabilitation of distressed/at-risk affordable housing
4.Rental assistance and homelessness programs2
5.Land acquisition for future affordable units
6.Conversion of market rate units to affordable housing
j.City HTF dollars must be expended within 24-months following fund commitment.
2.Housing Trust Fund Annual Report
a.Staff shall provide a Housing Trust Fund Annual Report to the City Council. The report shall
include the following:
1.Summary of the use of the funds consistent with this policy
2.Summary of the projects assisted with Housing Trust Fund dollars over the past year
3.Financial status of the Housing Trust Fund
4.A summary of administrative and non-project expenses made in the prior year
5.Review of prior year funding priorities and accomplishments
6.Summary of pending assistance requests and confirmation of upcoming year funding
priorities
7.Summary of denied assistance requests, if any, and brief statement of reasons for the
denial
b.The Housing Trust Fund Annual Report shall be reviewed by the Affordable Housing Policy
Team and the Housing Commission. The Housing Commission shall make a recommendation
to the City Council.
3.Affordable Housing Project Evaluation
a.In addition to the review requirements and evaluation criteria specified under CMC Sections
21.85.130, and 21.85.140 and City Council Policy 57 -Off-site and Combined lnclusionary
Housing Projects, projects that provide the following will be given additional consideration
when ranked against other projects.
1.Projects that provide the greatest benefit per dollar of funds spent towards the lowest
household income groups. Priority shall be given to projects that best assist the
following income categories, reflected in priority order.
•Extremely low-income households
•Very low-income households
•Low-income households
•Moderate-income households
2 "Rental assistance and homelessness programs" include, but not limited to programs and services that provide
short-term rental assistance, short-term shelters, food delivery, and social services to vulnerable populations.
Page 3 of 5 Nov. 18, 2021 Item #3 Page 46 of 48
2.Projects that demonstrate higher equity in the project.
3.Projects that demonstrate a lower loan-to-value ratio.
4.Projects that have other funding sources identified and committed.
Policy No. 90
5.Projects that benefit the highest percentage of lower income families, provide the
lowest affordability, include the greater percentage of affordable units or maintain
longer periods of affordability.
6.Projects that use Housing Trust Fund dollars as a match or to leverage other
conventual and below-market resources, including tax credits, state and federal
funding programs and other funding sources.
7.Projects proposed by an applicant with a successful history of project development
and/or property management, as appropriate.
4.Affordability Covenant and Form of Financial Assistance
a.Whenever Housing Trust Fund dollars are used for the creation, acquisition, and/or
rehabilitation of affordable housing, the city shall impose enforceable requirements on the
owner of the housing units that the units remain affordable for a period of not less than 55
years for rental units, or 30 years for ownership units, in accordance with CMC Chapter 21.85.
1.When Housing Trust Fund dollars are used to create affordable rental housing, long
term affordability shall be enforced by restricting rents that may be charged to
tenants.
2.When Housing Trust Fund dollars are used to create affordable ownership housing,
long-term affordability shall be enforced by imposing resale restrictions that maintain
an equitable balance between the interests of the owner-occupant and the city.
3.When Housing Trust Fund dollars are used to fund programs which are not described
above, the city shall develop appropriate mechanisms to ensure ongoing affordability.
b.The affordability restriction requirements described in this section shall be enforced by a
covenant running with the land.
c.The financial assistance structure may take several forms and is tailored to the financial needs
of the individual projects and is negotiated on an individual basis depending upon project cash
flow and the senior lender's underwriting guidelines. Example forms of assistance may include:
fixed interest rate loans, interest-only, deferred payment and/or residual receipts loans, land
acquisition and ground lease-back.
5.Administration
a.The annual Housing Trust Fund budget shall be administered by the Community Development
Director or designee, who shall have the authority to govern the fund consistent with housing
element policies and programs, CMC Chapter 21.85, and this policy.
b.Housing Trust Fund dollars are held in a separate account until disbursed consistent with this
policy.
Page 4 of 5 Nov. 18, 2021 Item #3 Page 47 of 48
Policy No. 90
c.The Community Development Director, in coordination with the Finance Director, shall ensure
that Housing Trust Fund dollars are awarded, encumbered or otherwise obligated for uses
consistent with General Plan Housing Element policies and programs, CMC Chapter 21.85, and
this policy, and in a manner consistent with the city's financial policies and ordinances.
6.Related Policies
a.City Council Policy No. 57 -Off-site and Combined lnclusionary Housing Projects
b.City Council Policy No. 73 -City Option to Purchase Resale Affordable Housing
Page 5 of 5 Nov. 18, 2021 Item #3 Page 48 of 48