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HomeMy WebLinkAbout2020-03-20; Windsor Pointe Afforable Housing Project - No Place Like Home Funding Application; |Barberio, Gary| Murphy, Jeff| de Cordova, David|.. To the members of the: CllY COUNCIL Date 3/ 2.D,2[~A ,/ CC .JL CM_LACM /DCM(3) ✓ March 20, 2020 Council Memorandum To: Honorable Mayor Hall a mbers of the City Council From: Gary Barberio, Deputy Ci nager, Community Services Jeff Murphy, Community De I enl Director David de Cordova, Housing ~f'illil~'rl Via: Geoff Patnoe, Assistant Cit Ma · {cityof Carlsbad Memo ID# 2020031 Re: Windsor Pointe Affordable using Project -No Place Like Home Funding Application · A City Council member requested a copy of the No Place Like Home funding application made to the County of San Diego for the Windsor Pointe affordable housing project; as such it is being _made available to all City Council members. Attached to this memorandum is summary information of the application. Due to its large size (more than 1,300 pages), a link to the entire application, including forms and attachments, can be provided to City Council members upon request. Affirmed Housing, the project developer, made the application in March 2019, and received notice in August 2019 of the County's commitment to provide $10.14 million in NPLH funds. The NPLH funding will provide permanent supportive housing in 24 of the 50 apartment units at Windsor Pointe to persons in need of mental health services and who are experiencing homelessness, chronic homelessness or are at-risk of chronic homelessness. Attachments: A. No Place Like Home application summary (entire application available electronically upon request) cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Kristina Ray, Communication & Engagement Director Mike Peterson, Assistant Community Development Director AFFIRMED (;RC)lJP 13520 Evening Creek Drive Suite 160 San Diego, CA 92128 . P. 858-679-2828 F. 858-679-9076 I Transmittal Delivered Via: In person delivery To Housing and Development Services Attention: Community Development Company County of San Diego Health and Human Services Agency Address 3989 Ruffin Road From Marie Allen Enclosed Please Find: Qty. Originals Copies CD Description Re Date City, State Zip NOFA For Affordable Housing Construction, Acquisition and Rehabilitation: NPLH ' Windsor Pointe Submission March 15, 2019 - San Diego, CA 92123 5 1 4 1 Windsor Pointe NOFA Submission · 1 Original Binder, 3 Copies, 1 Flash Drive x Urgent I □ For review □ Please comment I □ Please reply Please contact me if you've any questions. Thank you. Marie Allen 858.679-2464 I □ Please recycle . , Prepared For: County of San Diego Health and Human Services Agency, Housing and Community Development Services Notice of Funding Availability (NOFA) - for Affordable Housing Construction, Acquisition, and Rehabilitation Prepared By: · Submittal Date: March 15, 2019 No Place Like Home Funding (NPLH) ===='e""-=~=-=·· ==·-======== AFFI.RMED HOUSING Marie Allen, Project Manager 13520 Evening Creek Drive N Suite 160 San Diego, CA 92128 858-6 79-2828 marie@affirmedhousing.com WINDSOR POINTE Windsor Pointe APPLICATION CHECK LIST Please complete the following checklist and submit this farm wiih ihe application. All pages 8.5 x 11 inches indexed and tabbed, . One master copy and four identical copies, ail signed, in tht:ee-ring binders. One scanned PDF copystibmitted on a USB drive. . NOFA Application and Project Summary J\ttachments Summary Development Forms (Rental Income Form, Operating Expense, Development Costs, Sources and Uses of Funds, Multi-year Cash Flow and Development Pro Forma; COSR (ff applicable) ·cI-tMENTS arid SUPPORTING DOCUMENTATION: A1ticles oflncorporation and By-Laws udited Financial Statements/Single Audit (less than one ,Year old) · oard Resolution Certifications: • For non-profit organizations, proofof 50l(c)(3)statqs ~d an up-to-date roster of the developer's board of directors. · .omml,111ity Review Documentation . -Crime-free Multi-Family Housing Element ·.vidence of Funding Source Commitments Evidence of Qualifications of Supportive· Services Team Evidence of Qualifications of Property Management Team Support Services Plan and accompanying Supportive Services Chart (Attachment M) Copy of Lease and Tenant Agreement · Evidence of Site Control and Entitlements Title XXXIV Letter (Required for Projects developed in cities outside of the County's jurisdiction) vidence to support how the proposed development aligns with Live Well San Diego ocumentation of Aging-in-Place Design Components cmd Assistive Technologies (if applicable) Phase 1 Hazard011s Waste Assessment, Environmental Review Compliance/Phase 2 (Phase I Mandatory, Ph ·e 2 if applicable) · · · vidence of State or Federal Environmental Review Completion (if applicable) Location Map, Site Plan, Floor Plan, Photos Appraisal dated within 60 days of the final purchase offer "As-Built" Appraisal for New Construction Proposals Market Study Partnership Agreement (ifapplic3:ble) 0 Physical Needs Assessment(ifappljcable) 0 Rehabilitation Estimate (including any required testing of major building systems that may be required) (if applicable) esting .for Asbes.tos, Lead and Residual Pesticides (if applicable) Relocation Plan and Relocation Contract (if applicable) · elocation Noticing (if applicable) eplacement Reserve Analysis · i :rax Credit Application with date of submission (if applicable) Tenant Characteristics Form (if applicable) Project Timeline · D Voluntary Acquisition Notice (if appiicable) 7 ,, APPLICATION CHECK LIST (CONTINUED) Please complete the following checklist and submit this form with the application. . ffirma.tlve Fafr Housing Marketing Plan ( ~ required by Attachment C) nsurance Policies (as required by Attachment F) Management Plan(as required by Attachment E) Preliminary Title Report - Property Management Plan (as required by Attachment F) · Copies ofOther Leveraged Source Loan Documents (if applicable) · Evidence Developer is not on Excluded Parties List/SAM.gov, OIG Exclusions database or the State of California Medi-Cal Suspended and Ineligible Provider List The application and its supporting do-cum •. taJlon have been reviewed for completeness using the checklist above,· Date: 12/20/2018 Initial applications ar su ~ect to a preliminary review for completeness; developers submitting incomplete or ineligible proposals . ill notified and a deadline for submission imposed. The selection procedure will include an evaluation of the.to financing proposed in the NOFA application and the project proforma. A determination will also be made concerning ,the consistency of the proposal with the strategy and priorities developed by the County of San Diego for the use of NOFA program funds. Proposals must comply with the regulations of the HHSA programs, as applicable. · 8 ATTACHMENTS SUMMARY ATTACHMENT 1.0 Project Summary Form 1.1 General Project Information Narrative 1.2 Financial Feasibility Narrative 1.3 Support Service Provider: Experience, Tenant Services Plan, MOU, Budget & Attachment M 1.4 Developer and Property Management Experience 1.5 Collaboration and Site Amenities 1.6 Innovation 2 DEVELOPMENT FORMS 2.1 Rental Income 2.2 Operating Expense 2.3 Development Costs 2.4 Sources and Uses 2.5 Cash Flow and Proforma 2.6 COSR 3 ATTACHMENTS AND SUPPORTING DOCUMENTATION 3.1 Articles of Incorporation 3.2 Audited Financials -CONFIDENTIAL 3.3 Board Resolution 3.4 Certification Form 3.5 Crime Free Multi-Family Housing Program 3.6a City of Carlsbad Resolution -Financing Commitment 3.6b Construction Financing Commitment 3.6c Investor Letter 3.7 Sample Lease Agreement 3.8 Evidence of Site ~ontrol ~ Grant Deeds 3.9 Article XXXIV 3.10 Accessibility Certification/ Aging in Place 3.lla Phase I -Oak Site 3.llb Phase I -Harding Site 3.llc Phase II -Harding Site 3.12 Environmental -CEQA Exemption 3.13a Acquisition Appraisal -Oak Site 3.13b Acquisition· Appraisal -Harding Site 3.13c As Built Appraisal -Oak Site 3.13d As Built Appraisal -Harding Site 3.14 Market Study 3.15 Partnership Agreement 3.16a Relocation Plan 3.16b Relocation Noticing 3.16c • Relocation -Current Rent Roll 3.16d Relocation Consultant Contract 3.17 Tenant Characteristics Form 3.18 Project Timeline . 3.19 Affirmative 'Fair Hol,lsing Marketing Plan . ATTACHMENTS SUMMARY ' TAB ATTACHMENT 3.20 Insurance Policy 3,21 Management Plan 3.21a Property Management Agreement 3.22a Title Report -965-967 Oak Avenue 3.22b Title Report -3606-3618 Harding Street 3.22c Title Report -3630 Harding Street 3.23a Excluded Parties List -OIG Database 3.23b Excluded Parties List -SAM Database 3.23c Excluded Parties List -Medi-Cal Spreadsheet 3.24 Sustainability/Energy Efficiency 3.25 Consistency with Consortium Consolidated Plan 3.26 Replacement Reserves Analysi~ 3.27 Land Use Approval and Extension 3.28 City of Carlsbad General Plan Excerpt 3.29 Rent Comparability Matrix 3.30 Site Amenities 3.31 Existing Site Description, Location and Photos 3.32a Proposed Design Plans -Oak Site 3.32b Proposed Design Plans -Harding Site 3.33 Additional RE;!quirements Certification 3.34 Evidence of Lack of Funding PROJECT SUMMARY Project Name: Windsor Pointe Name of Developer: Carlsbad Veteran Housing, L.P. Developer Address: 13520 Evening Creek Drive N Suite 160 San Diego, CA 92128 Contact Name: Marie Allen Phone: 858-679-2464 Fax: 858-679-9076 Email: marie@affirmedhousing.com Funding will be used to support the following (Check all that apply): D Rehabilitation Ii] New Development O Preservation D Acquisition Project Address: 965-967 Oak Avenue & 3606-3618 and 3630 Harding Street Carlsbad, CA 92008 Proiect Assessor's Parcel Number (APN): Oak: 204-111-02 Hardin!!: 204-192-05· 204-192-06 Service Provider(s): Interfaith Communitv Services ·and San Die!!o Countv Types of Support Services Provided: Case mana2"ement and life skills trainin2" and referrals includin2" Benefits emolovment housing and medical assistance, olus communitv activities and engagement Location of Support Services (Check all that apply): @ On-site @ Off-site Total Proiect Units: (24) Studio/ Efficiency units 0.6) 1 Bedroom units ( 6 ) 2 Bedroom units ( 2) 3 Bedroom units ( ) 4 Bedroom units Manager's Unit: ( 2) Bedroom Size 1 one-bedroom & 1 two-bedroom Total Number ofUnits (50) Non-NPLH Assisted Unit Rent Rani e Percent of AMI 80 70 60 50 30 Studio/Efficiency: \ 12 1 Bedroom 4 3 2Bedroom 2 1 3 Bedroom 1 1 4Bedroom - NPLH Units: <12) Studio/ Efficiency units ( 9 ) 1 Bedroom units ( 3) 2 Bedroom units ( ) 3 Bedroom units ( ) 4 Bedroom units Tnti:.1 ~ T ...... nfNPTH Ac::c::ic::te:rl TTnitc:: ( 'JA) Total Overall Percentage ofNPLH Assisted Units ( ) NPLH ~t Ranee Percent of AMI 30 25 20 15 Studio/Efficiency: 12 1 Bedroom ·9 2Bedroom 3 3 Bedroom 4Bedroom Total Development Cost: $32,211,871 I Total NPLH Funding Request: $10.140.000 Will you be requesting a COSR? @ YES □NO Number of Currently Occupied Units: 4 Income Level of Current Households: $30,000 -$96,000 -Please see Attachment H-Tenant Characteristics Form Number of Potential Relocation Households: 4 Exoected Date of: Acquisition: 2016-2018 Rehabilitation/Construction Start: March2020 Rehabilitation/Construction Completion: September 2021 Occupancy: December 2021 10 TABl GENERAL PROJECT INFORMATION -PROJECT READINESS A. Project Description Affirmed Housing is excited to present our concept for Windsor Pointe, affordable housing for Veterans, in the City of Carlsbad (the City}. The concept will provide 48 units of housing for low income Veterans, their families, with some units reserved for homeless individuals with mental illness. This js a wonderful · opportunity for the City to contribute to the development of beautifully designed permanent housing for those who have served our country, while also contributing to Carlsbad's fair share of the regional need for low, very low and extremely low income housing, as identified in the Housing Element of the City's General Plan. Windsor Pointe will provide 48 affordable residences for Veterans and their families with incomes of 25%-60% of the Area Median Income. A portion of these units will be reserved for No Place Like H9me (NPLH}, to house chronically homeless individuals with serious mental illness. The 24 NPLH home units will be dispersed evenly throughout the project's two sites and buildings, which are less than ½ mile apart. The first site is located at 965-967 Oak Avenue and the second is located at 3606-3618 and 3630 Harding Street. The building located on Oak Avenue will contain 24 residences and the building located on Harding will contain 26 residences. Both buildings will be two stories over a one story parking garage and will contain a. property management office, case management offices and a community room. Each building will be designed in the Santa Barbara style of architecture in keeping with the context of the surrounding Village. The sustainable design will feature the latest energy-saving and water-wise technologies and best-practices. The combined square footage of the buildings is approximately 60,000 SF. The approximate square footage of the units is as follows: Studio units One-bedroom Two-bedroom Three-bedroom 400 SF 500 SF 750 SF 1,000 SF Residents at Windsor Pointe will have access to dedicated on-site services, specifically geared toward . their particular needs. This includes services intended to improve housing retention, health, education and employment/career opportunities. The NPLH residents at Windsor Poinfe will have access to additional extensive services to enhance their life skills and ability to maintain housing. Such services include a dedicated Case Manager who will work with each resident on an individual case plan, offer assistance in applying for benefits, and provide linkages to other community services. The success of these services depends on delivery by strong organizations with special expertise in working with Veterans. Affirmed has successful partnerships with service providers such as PATH and Community Catalysts, Veteran's Community Services to provide specialized s~rvices for Veterans in our other developments. For this particular project, we will enter into a long-term agreement with Interfaith Community Services, an experienced service provider in the North County San Diego region that has a TABl GENERAL PROJECT INFORM,ATION -PROJECT READINESS long and successful track record of providing support to vulnerable populations. Interfaith and the property manager will coordinate with the County for services specifically for the NPLH tenants. A. (1) Project Timeline Carlsbad Veteran Housing, LP. is the ownership entity of the project and currently maintains site control of all parcels. Additionally, the project site is fully entitled to build the development as proposed. 'upon approval of a funding commitment award from the County, Affirmed would be in a likely position to use those funds within a year of award. Because Affirmed has already secured funding from the City of Carlsbad, the project will be in a position to receive 9% tax credits this year if we receive gap financing prior to application. Assuming we receive gap financing from the County by May 2019, Affirmed plans to apply for 9% tax credits in July 2019. Upon an award from CTCAC in September 2019, Affirmed would close on project financing and begin construction in March 2020. Please see Tab 3 for a detailed project schedule. A. (2) Enforceable Commitments ( Windsor Pointe has secured financing from the City of Carlsbad in the amount of $4,250,000. Additionally, the project will receive construction and permanent financing from JP Morgan Chase. If NPLH funds are awarded, we will apply for 9% tax credits in July 2019. A summary offunding sources is listed below: SOURCE AMOUNT City of Carlsbad $4,250,000 - NPLH $5,265,000 NPLH COSR $4,875,000 Federal Tax Credit Equity (9%} $17,821,871 TOTAL FUNDS $32,211,871 Please find the Resolution from the City of Carlsbad and fundin& commitments from JP Morgan Chase and WNC in Tab 3 of this application. A. (3) Enforceable Commitments of Operating Subsidies Operating subsidies are not available through the Housing Department in the City of Carlsbad, therefore, enforceable commitments, of operating subsidies is · not applicable (N/ A}. The project has applied unsuccessfully for operating subsidy in the past as it will absolutely require the COSR that comes with the NPLH funds to maintain feasibility. This subsidy and the proposed target population are why Affirmed believes the_ NPLH program is a good fit for this project . . A. (4) Zoning and General Plan Designation TAB 1 GENERAL PROJECT INFORMATION -PROJECT READINESS Windsor Pointe is consistent with the current site zoning, General Plan and the local community plan. The site is zoned RD-M and was entitled with a density bonus and parking deviation per the CMC 21.86.020 and City Council Policy No.43. The project required a Site Development Permit (Available in Tab 3} for entitlement as it conforms to the site's existing zoning and land use. Affirmed has applied to the City of Carlsbad for an extension of the plan approval, which otherwise would expire in January 2019. Evidence of the City's receipt of the application is also available in Tab 3. The following e?(cerpts (full pages attached in Tab 3} are taken from the Carlsbad General Plan: "Encourage the provision of lower and moderate~income housing to meet the objectives of the Housing Element." "lncentivize development of lower-income affordable housing by allowing residential development above the GMCP and maximum densities permitted by the General Plan, subject to the findings specified in 2-P.8, above, and an evaluation of the following: (a} the proposal's compatibility with adjacent land uses, and (b} the project site's proximity to a minimum of one of the following: freeway or major street; commercial center; employment opportunities; city park or open space; or commuter rail or transit center." A. (5) Community Planning Prior to entitlement approval from the City of Carlsbad, Affirmed Housing worked with the community to gain support for the project. The following steps were taken to ensure adequate community outreach for the project: 1. Notices were sent to tenants in the surrounding area af the time of application to the tity Planning Department. 2. Signs were posted at each site to notify neighbors of the project. 3. Affirmed Housing attended three separate Carlsbad Barrio community meetings. 4. Affirmed Housing presented our project at the Carlsbad Barrio community meeting twice and informed the community as a reminder once. 5. Affirmed Housing worked directly with any residents who had any concern for the project. Upon approval from the Planning Commission and City Council, only one person spoke in opposition due to traffic concerns, but still supported the project overall. A. (6) Land Use, Zoning and Building Plan Approvals Affirmed Housing received entitlement approval from the· Carlsbad Planning Commission in January 2017 by unanimous vote. Affirmed Housing then received Carlsbad's City Council approval for funding in February 2017 with a 5-1 vote. This project has received all land use, zoning, and environmental approvals without any lawsuits or litigation following the approvals. Upon a tax credit award, full design plans will be submitted to the City of Carlsbad for planning approval and building permits prior to construction loan close. A. (7) Market Study . Please see full market study in Tab 3. The Market Study was completed in February 2018, however, the rent surv~y was updated in December 2018 per the NPLH NOFA requirements. TABl GENERAL PROJECT INFORMATION -PROJECT READINESS A. (8) Environmental Clearances Phase I and Phase II have been completed for all sites. The assessments did not reveal evidence of recognized environmental conditions in connection with the current use of the Property. Additionally, The Phase II completed for 3606-3630 Harding Street determined that no further investigation relative to agricultural chemicals in Site soil is recommended. The full reports are attached in Tab 3. Per the Resolution by the City of Carlsbad attached in Tab 3, this project is exempt from CEQA. Finally, because this project does not currently have any operating subsidies or other funding sources paid for by Federal funds, NEPA clearance is not required. A. (9) Crime Free Multi-Family Housing Program and Crime-Free Lease Addendum Please see Tab 3 for full Crime Free Multi-Family Program, including a sample lease addendum and grievance arid appeal procedure. A. (10) Special Considerations 1. Project will create new affordable housing units. a. Windsor Pointe will create 24 affordable and 24 NPLH units for a total of 48 new affordable units in the city of Carlsbad. 2. Project will !everage other forms of resources, including capital financing a. Windsor Pointe has received committed funds from the City of Carlsbad in the amount of $4,250,000. 3. Project will incorporate green building and resource-efficient technologies exceeding current standards. a. Windsor Pointe will incorporate the following sustainable features: i. Waste recycling dur\ing construction ii. High efficiency irrigation iii. Insulation with 30% post-consumer or 60% post-industrial recycled content iv. Water efficient plumbing features . v. Energy Star ceiling fans in living spaces and bedrooms vi. Solar Hot water to pre-heat domestic hot water. vii. The Building is to outperform T-24 requirements {CEC) • viii. Energy Star appliances ix. High efficiency lighting 4. Project will include a Whole Person Wellness component. a. Windsor Pointe will house veterans with potentially complex physical and/or behavioral health needs. Individuals in this situation can experience frequent Emergency Department visits and lengthy acute hospital stays. Through the onsite case management services provided by Interfaith Community Services and the County, we hope to see a reduction in the amount of visits by utilizing Housing First principles. 5. Project will offer supportive services not mandatory within NPLH guidelines a. In addition to incorporating all of the project development guidelines listed in Attachment K, Windsor Pointe will employ a Resident Services Coordinator who will be a TAB 1 GENERAL PROJECT INFORMATION -PROJECT READINESS liaison between the supportive services provider and property management to engage and integrate the mixed resident population. 6. Project will offer furnished units for NPLH tenants a. All special needs units at Windsor Pointe will be furnished with a bed, table, chairs and sofa. 7. Project will incorporate No Place Like Home Recommendations and Guidelines outlined in Attachment K. a. This project will be able to incorporate all recommendations as outlined in Attachment K B. Project Location and Existing Uses Windsor Pointe is the proposed new construction of a scattered site SO-unit (48 affordable, 2 managers'} multi-family housing project targeting households with incomes between 25%-60% of AMI. The project site is located on two sites: Site #1 is located at 965-967 Oak Avenue and Site #2 s located at 3606-3618 and 3630 Harding Street, Carlsbad, CA 92008. Windsor Pointe will be located on two parcels totaling 0.97-acres, zoned RD-M. The more northerly parcel has three small houses, a garage ~nd a shed that will be demolished. There is also a water well that will be abandoned. Current adjacent uses are: Site #1 965-967 Oak Avenue South: Residential North: Commercial East: Interstate 5 West: Residential Site #2 3606-3618 & 3630 Harding Street South: Residential North: Residential East: Interstate 5 West Residential .B. (1) Comparable Housing Developments A rent comparability matrix was updated by -Raney Planning Group in December 2018 and attached in the full Market Study located in Tab 3. B. (2) NPLH Assisted Units Twenty-four of total project units (SO} will be reserved for NPLH. The unit mix and affordability will be as follows: • Twelve (12} studio units at 25% AMI • Nine (9) one-bedroom units at 25% AMI • Three (3) two-bedroom units at 30% AMI TABl GENERAL PROJECT INFORMATION -PROJECT READINESS B. (3) Relocation The construction of Windsor Pointe will potentially require relocation for four (4} resident households. 965 and 967 Oak Avenue, along with 3606 and 3618 Harding Street, have current occupants that may be entitled to relocation benefits. 3630 Harding Street was owner occupied and will not be entitled to relocation benefits. A comprehensive Relocation Plar:i, Relocation Consultant Contract, and current Rent Roll are attached in Tab 3. B. (4) Site Amenities Both sites are conveniently located close to a variety of amenities and. services. Transit is available less than a quarter mile from either site. Grocery stores, a public park, pharmacy, library and fire services are also available within a half mile. Public schools are less than one mile away. Tri-City Medical Center is about two miles from both sites, and offers comprehensive medical, surgical and emergency care. The VA Oceanside Clinic is located about six miles from the project site, and offers medical services to active duty service members, Veterans and Veteran families. (Please see attached selected pages from the Market Study for exact locations of amenities and services. The full Market Study is available in Tab 3). I Employment in the North Carlsbad Market Area is strong and is steadily increasing. According to the Bureau of Labor Statistics, the December 2017 unemployment rate was 2.9%, lower than the State rate of 5.0%. Given the increase in employment and decrease ir) the unemployment rate over the last five years in the City and County of San Diego, potential tenants at the property should have opportunities to find employment in the surrounding areas. B. (5) Aging-in-Place Per the Principal at Dahlin Group, Inc., the lead architect on the project, the design at Windsor Pointe will cQmply with all relevant accessibility legislation including American with Disabilities Act (ADA} and Federal Fair Housing Act (FFHA}. The plans will also comply with Chapter 11B of the California Building code and the applicable portions of Chapter 11A of the CBC. B. (6) Sustainability Features In order to providing a high level of measurable sustainability, the Windsor Pointe project will meet the requirements of the Green Point Rated program. Windsor Pointe will exceed the requirements of both the California Green Building Code and the California Energy Code. A summary of the sustainable features is provided by the architect, Dahlin Group, in Tab ·3 of this application.