HomeMy WebLinkAbout2020-09-24; Windsor Pointe Affordable Housing Project - Close of Escrow and Next Steps; |Barberio, Gary| de Cordova, David| Murphy, Jeff|To the members of the:
CITY COUNCIL
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Council Memorandum
Sept. 24, 2020
To:
From:
Via:
Honorable Mayor Hall and Members of the City Council
Gary Barberio, Deputy City Manager, Community Services
Jeff Murphy, Community Development Director
David de Cordova, Housing Services M~r
Geoff Patnoe, Assistant City Manager l§i.
{city of
Carlsbad
Memo ID #2020196
Re: Windsor Pointe Affordable Housing Project -Close of Escrow and Next Steps
This memorandum provides information on the Windsor Pointe completion of project financing
and next steps for the developer, Affirmed Housing.
Background
On Jan. 28, 2020, the City Council approved a request from Affirmed Housing for financial
assistance totaling $8,293,392 for construction of the SO-unit Windsor Pointe affordable housing
project on separate sites at 965-967 Oak Avenue and 3606-3618 and 3630 Harding Street. The
City Council authorized that financial assistance take the form of a combination of land
purchase/lease back and residual receipts loan, using money from the city's Community .
Development Block Grant Program (CDBG) and the city's affordable housing trust funds. In
addition to the city's contribution, Affirmed Housing secured financing from the
County of San Diego No Place Like Home program ($13 million) and Federal and State Tax Credit
equity ($13.1 million). Once completed, the new development will provide supportive housing to
homeless and lower income military veterans and their families, as well as people experiencing
homelessness with Severe Mental Illness (SMI).
Discussion
In accordance with the City Council financial assistance approval, city staff began negotiations to
acquire the above-referenced properties from Affirmed Housing in June 2020. The city purchased
the property at the appraised value of $4.5 million using a combination ofthe following: '
CDBG (Fund 391)
Affordable Housing Trust Fund (Fund 133)
Low/Mod Income Housing Asset Fund (Fund 134)
Total
$300,000
$900,000
$3,300,000
$4,500,000
Escrow for the city's acquisition of the property closed on Sept. 16, 2020.
Council Memo -Windsor Pointe Affordable Housing Project -Close of Escrow and Next Steps
Sept. 24, 2020
Page 2
The balance of the city's financial assistance was made in the form of a residual receipts loan in
the amount of $3,793,392 from the Affordable Housing Trust Fund. Execution of the affordable
housing documents, including the loan agreement, ground lease, regulatory agreement and
other related documents were completed and recorded as of Sept. 21, 2020. Disbursement of
the city loan will be made in increments during the period of project construction.
Next Steps
Now that all the funding commitments and regulatory agreements are in place, the Affirmed
Housing partnership will proceed with the project's development. The estimated construction
schedule is as follows:
Demolition and grading:
Building construction:
Leasing begins:
October through December
December 2020 through February 2022
February 2022
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Kristina Ray, Communication & Engagement Director
Mike Peterson, Assistant Community Development Director