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HomeMy WebLinkAbout2000-02-10; Housing Commission; Minutes-- Minutes of: Time of Meeting: Date of meeting: Place of Meeting: HOUSING COMMISSION 6:OO P.M. February IO, 2000 CITY COUNCIL CHAMBERS CALL TO ORDER Chairperson Latas called the Regular Meeting to order at 6:08 p.m. Chairperson Latas introduced Charles Griffin as the new addition to the Board of Commissioners. ROLL CALL Present: Commissioners: Charles Griffin Doris Richie Ed Scarpelli Chairperson: Roy Latas Absent: None Staff Present: Housing and Redevelopment Director: Debbie Fountain Management Analyst: Craig Ruiz Chairperson Latas confirmed there was full attendance for their new commission at this meeting. PLEDGE OF ALLEGIANCE Chairperson Latas asked Commissioner Scarpelli to lead in the pledge of allegiance. APPROVAL OF MINUTES There were no minutes from last meeting as validated by Chairperson Latas. COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA There were no comments from the audience. NEW BUSINESS Chairperson Latas moved ahead to the first Agenda Item (described in number 1 below) and gave the floor over to Craig Ruiz. Staff Recommendation 1 ) That the Housing Commission ADOPT Resolution No. 200@001, recommending APPROVAL to the City Council of a request by Carlsbad Laurel Tree Apartments, L.P. to provide additional project funding in the amount of $224,000 from the City of Carlsbad’s Housing Trust Fund, to recommend the waiver of the Public Facilities Fee as permitted by City Council Policy No. 17, and to recommend approval of a Modification-Agreement and a revision to the previously executed Promissory Note for the development of the 138 unit Laurel Tree Affordable Apartment Project. Mr. Ruiz gave the following background information on the above Agenda Item: 1. Laurel Tree Apartments is 138 unit affordable apartment project. 2. Approved by City Council in 1995. 3. All the units will be available to very low income households. 0 0 0 Everybody there will be earning 40% to 50% of the median income for the County. A two-bedroom unit for someone earning 40% of the average median jncome will run about $450 per month. A four-bedroom unit (this is the top end) for someone earning 50% of the average median income, will run about $725. HOUSING COMMISSION MNJTES FEBRUARY 10,2000 PAGE 2 of 7 4. This will be the most affordable project in the City of Carlsbad and certainly the most affordable project in an inclusionary housing project. 5. The City has taken two separate actions: to provide $700,000 in a construction loan, which we have all ready dispersed to the developer to assist in the construction of this project. 0 the City Council also has deferred the Public Facilities Fee (PFF). 0 0 The Public Facilities Fee is a fee that is typically due at issuance of the first building permit, which they have had. The Council has the ability to defer or what we will talk about in a minute, is to waive that fee. And so far they’ve taken action to defer the fee. 6. Mr. Ruiz further gave the following for the project status: 0 0 It is currently under construction. Even though it had been a couple weeks since he had been out at the construction site he was able to report they are ready to start stucco work on the first buildings which are close to being occupied, in addition to doing some roofing work. The first units are anticipated to be occupied sometime in the Spring of 2000. 0 7. At present, the developers are projecting roughly a budget shortfall of approximately $1,000,000. To fund this shortfall, the developer has the following variety of sources pg which they are considering: 0 On-site daycare will be available to the residence 0 The developer makes a developer fee from the construction and management of this project 0 0 0 Neighborhood House Associations, provided a grant to this project to help facilitate that use -- roughly $210,000 of which the developer acquired and has received Typically a developer fee is paid out at certain milestones in a project: 1)completion of construction 2)at full occupancy 3)at stabilized occupancy If there’s not enough money for the project, that fee can be deferred and paid out of project revenues. This developer will defer about $1 10,000 of their developer fee which will be repaid the first five years from revenues from the project. The developer will be eligible for reimbursement from our Public Works Department roughly in the amount of $100,000 in which they are presently working with the City to get those refunds. 0 0 Sewer and signal refund: 0 8. Mr. Ruiz concluded with the following last two items on his shortfall funding list: 0 0 The developer is requesting additional assistance in the amount of $224,000. That would be in addition to our $700,000 and that would be added to the construction loan. Secondly, is a waiver of the Public Facilities Fee or the PFF. The fee has been deferred to final certificate of occupancy. 0 The City Council’s Policy #17 allows for the out-right waiver of the PFF to help facilitate affordable housing. 0 This would fall within their guidelines and they do have the ability to waive that fee and we’re recommending that you recommend to the Council to waive that fee. Mr. Ruiz further explained as the units become occupied in stages, the rent will be another source of revenue to help fund the shortfall. HOUSING COMMISSION MINUTES FEBRUARY 10,2000 PAGE 3 of 7 The Commission’s agreement with the staffs recommendation will result in a need for two new documents-the following being a brief summary of the proposal: 0 A Modification Aareement, to our original loan agreement spelling out the additional amount of $224,000, being as an attachment to our original loan agreement stating that all the terms still apply and basically the amount has changed. This is an attachment in your staff report. 0 The second is a revision to the oriainal Dromissorv note. It is just basically a little footnote and requires a new signature which will secure our interest in the property for this additional amount. Mr. Ruiz gave the assurance that the City has adequate security in the property, stated the loan would be repaid in thirty years, and confirmed the developer’s performance demonstrates this. Mr. Ruiz further confirmed from the rents that this is a very worthwhile project in that it will help some very low income people. Mr. Ruiz recommended that the Housing Commission recommend to the Council the approval of the additional assistance. Chairperson Latas asked if there were any questions from the Commission. Commissioner Scarpelli asked if the representative from the Laurel Tree Project was going to speak on the data of the shortfall, $1,036,000 and the specifics that caused the shortfall. Mr. Ruiz replied that Mr. Juarez would cover in more detail this information. Another question was raised as to where the property is located. Mr. Ruiz responded that the project is located on Aviara Parkway, just south of Palomar Airport Road. Take the second light past Costco. So it would be on the east side of Aviara Parkway. Chairperson Latas asked what the PFF normally funded? According to Mr. Ruiz the PFF goes into the General Fund which pays for different public improvements such as streets, lights, water, sewer, all types of public facility projects, possibly including parks. Chairperson Latas determined there were no more questions from the Commission and invited the applicant, Rich Juarez, to present his information. Mr. Juarez is with the MAAC Project (Metropolitan Area Advisory Committee), located in National City. MAAC is the co-developer of the Laurel Tree Project. Rich Juarez gave a summary of the following information: 0 0 0 The project is in stuccoing at this time. It is in a revised schedule and should be finished by the end of April. The plan is to start moving some of the tenants in about the middle of April as the contractor is trying to finish at that point. Referring to the chart which is titled “Laurel Tree Apartments Building Permit Summary”--some of the major areas where costs have increased substantially are: 1)the cost of improving Aviara Parkway increased $24,000 2)our building permit fee increased $42,000 (which is a reflection in the increase of construction cost) 3)and the plancheck fee for $17,000. This is just related to the percentage on the construction cost. The major hit is school fees. They increased the cost to us by $546,000. And when we start these projects, we try our best to identify the costs. We check with everybody to be sure this is the final cost. The school district says, “Yes, that‘s the final cost.” And then they raise it. And we have no place to go to get the additional funds except for what Mr. Ruiz showed on the board. We’d found a few additional sources but we’re still short. And we’re basically coming to the City to help meet that final gap. 0 0 1 HOUSING COMMISSION MlNUTES FEBRUARY 10,2000 PAGE 4 of 7 There was much discussion and concern as to whether the school board actually raised the fee or it was the final calculation according to Ms. Fountain. Commissioner Scarpelli was concerned that the school board had given an amount to the developer in a number figure and that they should be held accountable for that figure. He thought the figure was set at a square foot amount of approximately $1.93. He wanted to now if there is any way of interacting with the school district on this issue. Ms. Fountain was of the understanding that we can’t force the school board into any specific position. Mr. Juarez was of the same understanding and that they would just have to accept it, short of a law suit. Mr. Juarez explained he did not remember the price per square foot, but added the school board charged the day care center too. Saying the school district looked at it as a commercial property, making it a higher charge. Mr. Juarez disagreed confirming that it is not a commercial property, but that the day care center is serving the residents at the complex. Commissioner Scarpelli had other concerns regarding the water service connection and the street light energizing fees showing as zeroes whether these were advised to be waived and now they aie showing as a cost. He was apprehensive that there was going to be some waiving of those fees, the City knowing what all the standard fees are for development to begin with. Commissioner Scarpelli’s main concern was that the City is trying to get affordable housing and prices are becoming more and more difficult for the developer, which is defeating the purpose. He was wondering if a suit involving the City and developer against the school district would clear up the actual number given to begin with. Chairman Latas noted they can include that issue in the recommendation and ask the City Council to look into it. Chairman Latas asked if there were any other questions. He then asked for public comment, officially noting it as none. Commissioner Scarpelli’s only discussion was to raise the issue with staff that we look into this half a million dollars worth of additional fees by the school district. If the school district did not officially raise their rate, then he agrees with Mr. Juarez that it is not a commercial project, but it is a residential project and it is an affordable housing project as well. Commissioner Scarpelli would like to do something more proactive and constructive about it by looking into what can be done about working with the school district. He explained that the City needs to take this position with the school district that the Laurel Tree Project is residential even if the property is commercially zoned and the school district should honor the figures previously given. According to Ms. Fountain, there is a team of employees, starting with the Assistant City Manager, that have begun talks with the school district. Also, the Council has made it an issue to work better with the school district. Ms. Fountain explained that one of the school districts arguments with affordable housing units is that it creates more children for their projects and results in a higher cost to them. Commissioner Scarpelli pointed out that the one and two bedroom units do not create more children. Ms. Fountain concurred and suggested this discussion be made as a minute motion recommendation to the Council. Chairman Latas asked if there were any more discussion regarding the resolution. Commission Richie replied with her question as to how the school district arrived at this increased amount of fee and did the City get any kind of explanation? Mr. Ruiz responded with a brief overview of the history of the Villa Loma Project, when the City first started working with the school district in 1994-1995. Part of it was MAAC was waiting on the outcome from the School District‘s law suit against the City as a result of the Villa Loma Project. The City calculated school fees one way, which was a lower fee for Villa Loma because it was an affordable project and the School District may have made assurances to the HOUSING COMMISSION MlNUTES FEBRUARY 10,2000 PAGE 5 of 7 developer of the Laurel Tree project that the final fee would be passed along. This was not the case, however, Laurel Tree had to pay the fees in place at the time it pulled permits. Ms. Fountain's point was that the agreement between MAAC and the School District never was in writing, as the discussions went on between the developer and the school district in these cases which did not involve the housing staff. Commissioner Scarpelli further reiterated information by a previous case involving the assistant superintendent of the school district in charge of financing giving out information that's saying, "we're going to honor what we did with Vilaloma, with Laurel Tree." Commissioner Scarpelli declared the assistant superintendent of the school district's word should be as good as any written, binding contract. Commissioner Richie added that it would be a good idea if the housing director were part of the discussion about the fees between the School District and the developers to help the District understand how significant the affordable housing is. Ms. Fountain assured the Commission that the school district does understand, but that affordable housing does have an impact on the school district. Ms. Fountain suggested to make the recommendation in a minute motion and she would pass it on to the Council for further direction to be taken at a later date. ACTION: Motion by Commissioner Scarpelli, and duly seconded by Commissioner Richie, that the Housing Commission ADOPT Resolution No. 2000-001, recommending APPROVAL to the City Council of a request by Carlsbad Laurel Tree Apartments, limited partnership to provide additional project funding in the amount of $224,000 from the City of Carlsbad's Housing Trust Fund, to recommend the waiver of the Public Facilities Fee as permitted by City Council Policy No. 17, and to recommend approval of a Modification Agreement and revision to the previously executed Promissory Note for the development of the 138 unit Laurel Tree Affordable Apartment Project. VOTE: 4-0-0 AYES: Latas, Scarpelli, Richie, Griffin NOES: None ABSTAIN: None Chairperson Latas discussed the wording of the minute motion. Commissioner Scarpelli made the following minute motion. ACTION: Minute Motion by Commissioner Scarpelli, and duly seconded, that the City join the developer in a full investigation and evaluation of the increase in the school fee over what was originally budgeted and estimated, and that the City make every effort in resolving this to the satisfaction of the developer. VOTE: 4-0-0 AYES: Latas, Scarpelli, Richie, Griffin NOES: None ABSTAIN: None Chairperson Latas declared the conclusion of this section of the new business and opened it up for the director's report. Ms. Fountain began with introducing Judy Kirsch as the new minutes clerk, in a part time position taking minutes from this time forward and who also works for the Purchasing Department for the City. HOUSING COMMISSION MINUTES FEBRUARY 10,2000 PAGE 6 of 7 Ms. Fountain also wanted to mention on Tuesday, February 14*, the revisions to the lnclusionary Housing Ordinance were to go to the City Council. The airport issue had drawn quite a few people to the Council Meeting, plus there was some additional information the City Manager wanted us to give to the City Council regarding some of the proposed changes. Therefore, the item was continued. Ms. Fountain added that one of the issues was second dwelling units and whether or not we were going to continue to allow those to meet the inclusionary housing requirements. The Housing Commission recommended that the City should continue to allow them, but with income qualification requirements with the tenants residing in them. The Planning Commission, however, recommended that they not be allowed at all to meet the inclusionary housing requirements. The Planning Commission was supportive of pretty much everything else that was purposed for a revision to the lnclusionary Housing Ordinance. Ms. Fountain reported that the City has a fairly new comprehensive website available, with substantial information about the City. There’s a number of information items for the Housing and Redevelopment Department which includes information about our affordable housing programs. Housing and Redevelopment will be having the Housing Commission agendas and the Design Review Board agendas available through the website as well. This is starting to enhance the public education process and available information. The website address is: www.ci.carlsbad.ca.us. Included also is information about all the City departments and the demographics of the City. Commissioner Scarpelli added that he visited the project called Center Stone located on Jefferson, south of Tamarack. He remarked the second dwelling units were beautiful. The only problem is the long staircase, because of buildings with the high ceilings, but they are very attractive units and really nice. Chairperson Latas gave the Chairperson’s report stating that in September the Housing Commission received the quadrant report that had the affordable units that were under construction. Chairperson Latas then requested from Bobbi Nunn a list of the clients (no names) in her department and what income levels they are and what the disbursement is of the clients being served by the Section 8 Rental Assistance Program plus whatever other programs of affordable housing projects that are in Carlsbad. He asked if the staff could pass that information on to her, that he would appreciate the Commission having a report like that. Ms. Fountain stated the Housing Department has a report that is fairly comprehensive on all the different programs that are offered through affordable housing, how successful lnclusionary Housing Ordinance has been to date, and where those projects are. She commented that the breakdown of the rental assistance program would basically tell how many households are on it, with the different income levels. Commissioner Scarpelli further requested concerning his motion that a report be made back to the mmmission by staff as to the details of this situation. Ms. Fountain informed the commissioner as to the multiple turnover of players involved at MAAC and the school district. Mr. Juarez inserted that Sylvia Martinas, who was the one who was most directly involved with the City is in the County and he talks to her all the time and was sure she would be happy to participate along with him to provide additional information to the Commission on this matter. ADJOURNMENT By proper motion, the Regular meeting of February 10, 2000 was adjourned at 6:45 p.m. HOUSING COMMISSION MINUTES FEBRUARY 10,2000 PAGE 7 of 7 Respectfully submitted, n DEBBIE FOUNTAIN Housing and Redevelopment Director JUDY KIRSCH Minutes Clerk MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED. The City of Carlsbad Housing & Redevelopment Department I A REPORT TO THE HOUSING COMMiSSION I I Start Craig D. Ruiz Management Analyst DATE: FEBRUARY 10,2000 SUBJECT: SDP 95-01 - LAUREL TREE AFFORDABLE HOUSING PROJECT REQUEST FOR ADDITIONAL CITY FINANCIAL ASSISTANCE FOR AFFORDABLE APARTMENT PROJECT THE DEVELOPMENT OF THE 138 mrr LAUREL TREE I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 2000-001, recommending APPROVAL to the City Council of a request by Carlsbad Laurel Tree Apartments, L.P. to rovide additional proji ct fix-iding in the mount of ,6224,000 from the City of Carlsbad's Housing Trust Fund, to reconmerid the waiver of the Ptibiic Facilities Fee as pemjtiei' by C:ii:j- Council Policy No. 1'7, and to recommend approval of a Modification Agreement and a revision to the previously executed Promissory Note for the developinelit of the 13 8 unit Laurel Tree Affordable Apartment Project. II. BACKGROUND The Laurel Tree Apartment Project is a development consistkg of 138 apartment units affordable to very-low income households. The project was approved by th- Carlsbad City Council in 1995, and is currently under co;stmction. The first units in rLe d~~d~pr~t arc anticipated to be occupied in the Spring of 2000, and the entire project is expected to- be completed by the Summer of 2000. In addition to approving the development, the City Council has also taken three previous actions to provide financial assistance to the project. First, in June of 1994, the City Council, acting as the Housing and Redevelopment Comnissiori, approved a commitment of financial assistance in the amount of $500,000 in Redevelopment Low and Moderate Income Housing Set-Aside Funds. In May of 1996, the City Comicil approved the appropriation of $200,000 froin the TIousing Trust Fund. And in March of 1999, the City Council approved the deferral in the payment of the Public Facilities Fee (PFF) from the issuance of a building permit lo the issuance of the final certificate of occupancy for the project. While the deferral of the PFF was not a direct financial subsidy to the project, the deferral did provide cash flow relief for the development. SDP 95-0 1 - LAUREL TREE AFFORDABLE HOUSING PROJECT FEBRUARY 10,2000 PAGE 2 IT. DISCUSSION While construction is nearing completion, the project is experiencing a budget shortfall. The shortfall can be attributed to several factors which delayed the start of project construction. Major delays have included multiple applications for federal tax-credit financing and the winter rains of 1998. The delays, combined with increasing construction and material costs have greatly increased the total cost of the project. As shown in Attachment No. 3, the developer is currently projecting a budget shortfall of $1,036,000. To help fund this shortfall, the developer is proposing three funding sources. First, because the project incorporates a day care facility within the development, the Developer was able to secure a grant from the Neighborhood House Association. The amount of the grant is $210,086 and will be used to pay for construction costs. Secor d, the developer is proposing to defer approximately $1 10,000 of the development fee. Originally, the developer was to receive incremental payments of the fee at certain project milestones, such as completion of construction and occupancy of the project. Under the current proposal, the developer will receive $690,000 at the completion of the project. The remainder will paid frorri the projeot rcvemc during the first ten ytms or'the project. Third, the developer has requested additional financial assistance fi-om the City of Carlsbad. All reyueslh iui Snancial assistance are reviewed by the Affirdable Housing Policy Team (stafl). In reviewing the request, it is the Team's opinion that the cost overruns are legitimate expenses to the project. It is the Team's recommendation that the assistance be provided both directly and indirectly. Direct financial assistance in the amount of $224,000 would be provided from the City's Housing 'I'rust Fund. lndirect funding would be in the form of the outright waiver of the Public Facilities Fee (PFF). While the City Council has previously deferred the payment of the PFF until the issuance of the final certificate of occupancy for the project, the Council is permitted by City Council Policy 17 to waive the fee for affordable housing projects. The deferral will relieve the project of' an expense of approximately $21 0,000. IV. LOAN AGREEMENT In providing the original financial assistance, ths developer and the City exect*.ed a loan agreement, promissory note, deed of trust and regulatory agreement. In order to provide the increased financial assistawe, additional documents will be necessary. First, a Modification Agreement (Exhibit 4) will be executed between the developer and the City allow for said increase. In addition, the original Promissory Note (Exhibit 5) will also be amended to further acknowledge the new loan amount. SDP 95-01 - LAUREL TREE AFFORDABLE HOUSING PROJECT FEBRUARY 10,2000 PAGE 3 V. RECOMMENDATION As with any proposal seeking financial assistance, staff reviews such proposals to ensure the cost reasonableness of the request, that there is no undue gain by the developer resulting from the assistance, and to minimize any risk to the City in granting the request. In terms of risk, the developer and the City have previously executed a loan agreement, promissory note, deed of trust and regulatory agreement. Those documents, combined with the Modification Agreement and revised Promissory Note will provide adequate security to protect the City’s investment. With respect to cost reasonableness and undue gain, staff feels that the total financial assistance package is fair and reasonable. In terms of total direct financial assistance to the project, the City will be providing roughly $8,100 per unit. This amount is comparable with amounts provided by the City Council to other affordable housing projects. VI. EXHIBITS 1. Housing Commission Resolution No. 2UOU-UU1 2. Applicant Request for Additional Financial Assistance 3. Developer Proforma 4. Draft Modification Agreement 5. Revised Promissory Note I 1 I \ L C \ € - I E s 1c 11 12 13 1 4 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HOUSING COMMISSION RESOLUTION NO. 2000-001 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A REQUEST BY CARLSBAD LAUREL TREE APARTMENTS, L.P. TO PROVIDE ADDITIONAL PROJECT FUNDING IN THE AMOUNT OF $224,000 FROM THE CITY OF CARLSBAD’S HOUSING TRUST FUND, TO RECOMMEND THE WAIVER OF THE PUBLIC FACILITIES FEE AS PERMITTED BY CITY COUNCIL POLICY NO. 17, AND TO RECOMMEND APPROVAL OF A MODIFICATION AGREEMENT AND A REVISION TO THE PREVIOUSLY EXECUTED PROMISSORY NOTE FOR THE DEVELOPMENT OF THE 138 UNIT LAUREL TREE AFFORDABLE APARTMENT PROJECT. APPLICANT: CARLSBAD LAUREL TREE APARTMENTS, L.P. CASE NO: SDP 95-01 WHEREAS, a project known as the “Laurel Tree Apartments” has been approved by the City of Carlsbad City Council for construction of 138 apartment units which will provide housing affordable to very low income households; and WHEREAS, on June 28, 1994, the Housing and Redevelopment Commission of the City of Carlsbad authorized the appropriation of $500,000 from the Carlsbad Redevelopment Agency’s Low and Moderate Income Housing Set-aside Fund outside the Redevelopment Project Area for the purposes of providing financial assistance for construction of new- affordable rental housing units within the proposed Laurel Tree Project; and WHEREAS, on May 21, 1996, the City Council authorized the Eppropriation of $200,000 from the Housing Trust Fund for the purposes of providint; financial assistance for construction of new affordable rental housing :inits within the proposed Laurel Tree Project; and WHEREAS, Carlsbad Laurel Tree Apartments, L.P has submitted a new request to the City of Carlsbad for additional financial as;,>,,tance and 2 waiver o ,. die Public Facilities Fce for tlie Laci-ei Tree Project; and WHEREAS, on March 16, 1999 the City Council approved the deferral of the Public Facilities Fee prior to the issuance of the final certificate of occupancy is issued for the final residential building within the Laurel Tree Project; and . . -. . .". - .. ... . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, City Council Policy 17 allows for the waiver of the Public Facilities Fee for affordable housing projects; and WHEREAS, on February 10, 2000, the Housing Commission of the City of Carlsbad held a public meeting to consider the request for additional financial assistance and the waiver of the Public Facilities Fee; WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons designing to be heard, said Commission considered all factors relating to said request: NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. 2. 3. ... ... ... ... ... ... ... ... The above recitations are true and correct. The Housing Commission hereby RECOMMENDS approval to the City Council of a request by Carlsbad Laurel Tree Apartments, L.P. to provide additional project funding in the amount of $224,000 from the City of Carlsbad's Housing Trust Fund, to recommend the waiver of the Public Facilities Fee as permit: :d by City Council Policy No. 17, and to recoxmend approval of a Modification Agreement a ivision to the previously ex.ecilted Promissory Note for the development of the 138 unit Laurel Tree Affordable Apartment Proj ec t . That the Hmsing Commission recommends that the City Manager or his or her designee be authorized to execute all documents related to provision of the City assistance, including but not limited to a Modification Agreement in substantially the form presented to the Housing Commission on February 10, 2000, and subject to review and approval by the City Attorney. HC RES0 NO. 2000-001 PAGE 2 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of the City of Carlsbad, California, held on the 10th day of February, 2000, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ROY LATAS, CHAIRPERSON CARLSBAD HOUSING COMMISSION DEBBIE FOUNTAIN HOUSING AND REDEVELOPMENT DIRECTOX TIC RES0 NO. 2000-001 PAGE 3 . Exhibit 2 CATELLUS December 8, 1999 Mr. Craig Ruiz Housing and Redevelopment Department 2965 Roosevelt, Suite B Carlsbad, CA 92008 RE: Laurel Tree Apartments Dear Craig, This letter is in response to your request of Rich Juarez for a more detailed narrative about each of the cost overruns for which we are seeking reimbursement. I know that you have been working hard to assist us in this matter. Please feel free to call me for any additional assistance you may need in your efforts. The information I believe you are looking for is as follows: Permits and Fees The school fees originally budgeted for this project (back in 1994) was $258,192. This estimate was based on the per square foot fee being charged at the time the estimate was put together. Subsequent to this estimate, the School Distrjct imposed a fee far in excess of even the State of California’s maxiinurn allowed pes- square foot rate. The rationale for such a high fee was that the project was on property that was re-zmed from industrial use to residential use through a General Plan Amendment. This re-zoning made this project exempt from the State of California maximum fee limits and the School District charged $822,421, or $564,229 mere than budgeted. The Public Facilities Fee was originally estimated (based on meetings with the City Engineering Department) to be $172,903. However, at the time the biiilding permits were being pulled, the City re-classified the Managemevt/Daycart Building as a ‘‘commercial me” building instead of the residential support f;cility originally Contemplated. This re-classification led to an increase in the Public Facilities Fee of $34,310 for a new total of $207,213. The Aviara Parkway Fee, Building Permit Fee, and Building Plan Check Fee all increased, largely due to the f . t that the City increased their fee schedule during the period between the City’s project approval and the date that the building permits were pullcd (almost a four-year period). The increases in these three fe s total $84.405. The combination of School Fee, Public Facilities Fee, A;+:ara Parkway Fee, Building Permi; Fee, and Building Plan Check Fee increases totals $682,994 or approximately the entire amount of the budget ovcrniii for Permits and Fees. Traffic Simal > The project’s original budget never contemplated the cost of installing a traffic signal at the intersection of Aviara Parkway and Laurel Tree Lane. The Conditions of Approval stated that the developer had to “cause the installation of a traffic signal” at this intersection. When we asked the Engineering Department Cor clarification on this item, we were told that we needed to post a public CATELLUS RESIDENTIAL GROUP 5 PARK PLAZA, SUITE 400, IRVINE, CALIFORNIA 92614 (949) 251-6100 FAX (949) 251-6837 improvement bond for the traffic signal to insure its ultimate installation, but not the actual installation. All other Conditions of Approval that required the installation of some item stated “the developer must install ....” At a minimum, Laurel Tree should only be responsible for 1/4” of the cost associated with the traffic signal. Unfortunately, the Engineering Department’s take on this is that we have to install the signal now and wait for reimbursement from future developers in the area. Our project cannot absorb this cost. Aviara Parkway Sewer Connection 9 This item is pretty self-explanatory. When Greystone Homes installed Aviara Parkway, they failed to connect Mr. Ukigawa’s forced sewer line to the new sewer line in Aviara Parkway. The failure of Greystone to perform this task created a conflict between the new 66” Regional Storm Drain and the existing Ukigawa sewer line. The project had to absorb the cost’of correcting this conflict at a cost of $42,478. 66” Storm Drain 9 The 66” Storm Drain that runs along the southern and western edges of our site is a regional storm drain system that conveys storm run off from the canyons to the south of the project. The very large residential developments that are taking place to the south of the project are tying into the system that we have installed. The cost of this regional storm drain that runs through our project has been borne by our project. We are asking for reimbursement from the City for a portion of the cost given that the region benefits from the storm drain system and fees are being collected by the City for tie-ins by new developments in the region. In closing, I must bring to your attention another serious matter that will have a significant impact on the project budget and schedule. The project is currently experiencin, significant delays due to the fact that the Building DeparZment cannot complete the inspections being requested from the job site. ‘it is our understanding that the Building Department is experiencing a manpower problem and cannot handle the workload currently being placed on the City during this current building boom. We need your assistance in talking to the Building Department and asking that they give this project priority. Cuatro’s Project Manager, Mr. Mike Davies, is writing a letter to the Building Department to express his concerns on this matter. Please look into this matter as soon as possible. Please give me a call if you need additional information on any of the above items or if you need further assistance in this matter. Sincerely, Vice President cc: Mr. Rich Juarez Mr. Mike Davies Ms. Debbie Ruane \Description Ag ricu Itu ral Conversion Aviara Parkway Building Permit Fee Building Plan Check Fee Community Facilities District Annex Drainage Fees Grading Permit Fee Improvement Inspection Fee improvement Plan Check Landscape Inspection Landscape Plan Check LFMP Transporatjon Fee Mello Roos District Park-ln-Lieu Fees Public Facilities Fee School Fees Sewer Capacity Fee , Traffic Impact Fee Water Authority Fee Water Meter Fee Water Service Connection Fee-CMWD Water Service Connection Fee-City Street Light Energizing Fee I ADDITIONAL COST 66" Storm Drain Aviara Parkway Revision Liraffic Signal Eotal - - Additional Cost LAUREL TREE APARTMENTS BUILDING PERMIT SUMMARY BudgeUEst. 45,050 .OO 21 5,280.00 1931 5.51 12,945.08 820.00 50,070.24 5,250.00 18,700.00 27,000.00 1,130.00 2,300.00 0.00 387,780.00 144,900.00 172,902.73 258,192.48 251,712.00 44,712.00 27,288.00 2,460.00 66,525.00 0.00 0.00 0.00 1,754,933.04 47,922.56 0.00 31,250.00 79,172.56 1,834,105.60 Actual 45,562.00 239,720.00 62,629.36 30,197.32 0.00 47,939.76 3,236.00 0.00 22,235.40 0.00 1,576.00 940.00 392,094.53 0.00 207,213.31 822,421 .OO 264,398.94 46,780.00 20,161 .OO 2,450.00 ** 68,U40.00 ** 127,020.00 108.00 16,200.00 2,420,922.62 282,187.00 42,473.00 125,000.00 est. 449,665.00 2,870,587.62 -. .,. , Variance (51 2.00) (24,440.00) (42,713.85) (1 7,252.24) 2,130.48 2,014.00 18,700.00 4,764.60 1,130.00 724.00 (9 4 0.00) (4,314.53) 144,900.00 (34,310.58) (564,228.52) (1 2,686.94) (2,068.00) 7,127.00 10.00 (1,515.00) (1 27,020.00) (1 08.00) 820.00 (234,264.44) (42,478.00) (93,750.00) .- (370,492.44) i. 1 ,l-mp'--.,Ol~ -^- 'Due at CofO - Jan - Apt- 2000 *' Due before Sept 17th (after Sept 17th - Fee Increase) Exhibit 3 [DEVELOPMENT SCHEDULE I Number of Units - New Constructlon Number 01 Units - Rehabilitation Number ol Units . Camolition/Reconstruction Total Units 138 Units Total Acres 6.600 Acres Density Per Acre 20.91 du 138 0 0 Start Predevelopment Predevelopment (Manths) Acquisition of Land Reroning/Approval Period (Months) Projecl ApprovaUStart Project Oesign Working Documents Period (Months) Project Financing Completed Continued Project Design Final Working Docs Period (Monlhs) Sitework Period (Months) Construction Start Construction Period per Phase (months) First Phase Completed I Start Leasing Total Construction Period (months) Flnal Certificate d mupancy Total LeasbUp Period (Months) Stabilized Occupancy Units Leased per Month Holding Period (Mooths) Takeout Financing Properly Sale Jan-97 8 sep97 7 Apr-98 7 Now-98 0 Nov-98 2 Jan-99 15 Apr-00 18 Jul-00 4 AUg-00 35 1 Aup00 Dee-15 ITAX CREDIT ASSUMPTIONS I Credir Year Federal Tax Credit Rate (locked in) State Tax Credit Rate DiKiciiH to Develop % App. able Fraction Adjb :nd Eligikk Basis Arinuai Tax Cr ?its Investor Yield oil 93% of Total Credit Allocation investor Afler Tax IRR -arget: 12% Gross Investor Contribution to Lower Tier Deferred Pay-in on Tax Credit Equity (Months) 1998 8.45% 0.00% 1 00.00% 100.00% 12,602,296 t2&4,834 61.50000% 9.02% 8.678.018 25 0 Affordability Pool Points 10.978 Credit Utilization Points 18.112 Rent Burden % 777??7 [SOURCES AND USES OF FUNDS 1 USES: Land / Acquisition Herd Consiiuciion Costs ABERegaVConsultants Permits ti Fees Developer Fees Contractor Fees Reserve Funds Marketing/Models/Gffice Financing a Other Soft Costs Ccritli12ancy peruni! 10,910 n.n.sSs 8.140 18.511 5.797 3.838 2.m 809 9.938 1.m- UT& 1,505,606 10.707.208 1,124,068 2354,565 8cc: 003 529,399 276.000 125.497 1,357.426 16:.120 __ Total Projoct Uses 138.702 -909 SOURCES: Tax Credits 62.W Conventknal Mortgage #1 32.609 Convbntional Mortgage Y2 0 HOME Loan 3.973 AHP Loan 4.000 Redevetopman! Loan - lront end 5.072 Head Start TI Fund 1.457 Slorm Drain Reimbursement MY^ 725 Traffic Signal Reimbursement u.ra 0 MAAC Loan -front end 24,837 Construction Perlod Revenues 754 Catellus Loan 0 Oeferred Developer Fee - Catellus 3e4 Deferred Developer Fee - MAAC 384 Redevelopment Agency FM 1.623 Catellus Land Contribution - 0 8.678.016 4.500.m 0 548,248 552.000 700,000 0 201.086 100,oW 0 224,000 3,427,500 0 103.992 00 53.032 53.032 I FINANCING ASSUMPTlONS I TEMPORARY/CONSTRUCTION LOAN Base Index Base Interest Ram Point Margin Excess Coverage Total lnteresl Rate 6 rw LIBOR 6.OCW. 2.WA 0.0oos; 0.000% a.ooo9c Loan Points & Fees 1 .m Convantlonsl Conventional PERMANEMMORTGAGE LOAN Mortgage Y1 Mortgage Base Index 20 yr Treas. Base Interest Rate Point Margin Excess Coverage Credit Enhancement Remarketing Fees Total Interest Rate Interest Rate Cap (7 years) Loan Underwriting Interest Rate Arbitrage Investmint Basis Arbitrage Investment Rate Loan Points & Fees Bond Underwriting Fees Credit Enhancement Fee Bond Agency Issuance Fee Loan Underwriting Term (Years) Accelerated Amortization Interest Rate Accelerated Amortization Term (Years) Maximum Sinking Fund Repayment Balance Debt Service Coveraoe Ratio (DSC) Maximum Loan To Value Ratio (LT'i) Cap Rate Project Value (NOVCap) Maximum Loan to Cost Ratio (LTC) Cash Available for Debt Service Project Maximum Debt Capacity Total Permansnt LWA Required Underwiling Debt Sewice Limit i otai Annaai Pay;dmt OTHER DEBTROANS Interest Rate Loan Points B Fees Loan Term (Years) PROPERTYTAXES Tax Rate Existing Properly Basis (per unit) New Unit Basis (per unit) SUREi7 FEE GROUND L-SE INFLATION INDB Income Inflator Expense Inflator Properly Tax Inflator 5.500% 1.750% 7.250% 0.M)Cm 7.250% O.ooo4c O.OW% 1 SO% 30 .. 1.10 0.00 90.0% 8.00% 0.C0-4 5.641.432 100.046 DSC LTV 451,315 41.026 1.10 88.6% 5.012.000 0 410.268 368.375 123 79.8% 4.~oo,ooo 0 0 0 €ie&uiRm- 3.000% o.m% 0.0090 0.00% 0.00% 0.00% 55 00 lrnpmvemenls 1 .2EO 50 90% $113.879 $102.491 Loan Amount: 4.500.000 0.00% Larid Basis: $0 0.WY $(! 3co : .t 2.50% 3.50% 2.00% 1 HUD INCOME GUIDELINES I UTILITY ALLOWANCE / BASIS LlMFS I For: SAN DIEGD COUNTY City d Carkbad 01/27/99 Feb-96 02/1&97 Utility TCAC 2 Person $42,000 Non-Elevator 4 Person $52,500 1-BR 517 74.655 5 Perm $56,700 2-BR $29 90.276 6 Person $60,92Q 3-BR $36 115.553 7Person ' 565.100 . 4-BR $49 128.731 6 Person $69,300 Basis Feature?:(Y/N) Y as ol: 1 Person $36.600 &- Barislimifs 3 Pfnon $47.300 Sludio $1 1 64.921 138.702 19,140,909 Total Prow Sources Construction Loan Commitment 11,941,618 O=front end. l=cunslructioo matching. 25back end (stabilized) UNIT REM ASSUMPTIONS 0 0 0 0 0 0 0 0 0 40.00% 0 22 23 23 0 0 0 0 0 50 W% 0 22 23 23 0 0 0 0 0 0 0 80.00% 0 0 0 0 0 0 Market 2 0 0 0 0 0 0 0 0 30.ooX 0 0 0.0% 68 493% ea 49.3% 0 0.0% 2 1.4% I Total Units % 2 1.4% 44 31.3% 48 33.3% 46 33.3% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0.0% O11 138 45.W% Sq. FtNnit 850 850 1.058 1226 0 0 0 0 0 1.045 New Unih t.7w 37.400 48.668 56.396 0 0 0 0 0 144,164 Demo/Redev. Units 0 Rehab. Units 0 Total ResldenUa SF 1.700 37.400 48,668 56.396 0 0 0 0 0 144.164 Community Centefls) 2.01 1 Leasing OWi 1 .ea Laundry 1,094 Retan 0 Related Residential fltnw Center 3,613 Commerdal SF TOTAL SQUARE FEET 152.482 q.n. MARKET RENTAL RATE VALUATION I REMS: Standard Rent PSI Mgn Units zm!am!a2BwLBA-- -TolaVAva. 0 850 1 .ooo 1,080 0 0 0 0 0 964 $0.00 $1.00 $0.95 $0.88 $0.00 $0.00 $0.00 $0.00 $0.00 View Premium 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.m Base Year Unit Rents 0 850 1 .ooo 1,080 0 0 0 0 0 964 Base Year Annual Rent 0 448,600 552,200 596,160 0 0 0 0 0 1,596,960 w $0.00 $1.00 $0.95 50.88 $0.00 $0.00 $0.00 $0.00 $0.00 lnflaUon Inflated Unit Rents PSf 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0 850 1.OOO 1,080 0 0 0 0 0 964 $0.00 $1.00 $0.95 $0.88 $0.00 $0.00 $0.00 $0.00 $0.00 lnllated Renl - Existing 0 inflated Rent. New Units 0 0 0 0 0 0 0 0 0 0 Potential Market Rent 0 448.800 552.000 596.,60 0 0 0 0 0 $1.596.960 Proloma Rents $934.884 Alfordable Rent Reduction - $662.076 I PARTNERSHIP ALLOCATIONS I tMtw TU CredR (Ltd) Catellus (GP) MAAC Project Devsloprnt Parmnhlp Tax Developer Cash OFaraUng Sales Tax PnrtnrshlD :'rmLt93 m<. Ew aislributicn lnrnma ELQSB& Eluiallnu 99.99% 2o.m 99.99% 99.99% 100% 50.00% 50.00% 0.01% 50.00% 80.00% 0.01% 0.01% 50.03% 50.W% 0.00% 50.00% 0.ooX 0.00% 0.00% 1W.00% 0% nst $0.92 0 '10.92 0 f0.92 $0.92 $0.54 .-, . . . . .. ORIGINAL COST corningency- 5.00% CODE DESCRIFTION mo Sun FInish cumnleo4P BUDGET 10-1001 LandAGqJMOn 10-1010 Purchase EsxcWTii Feer LANDlACBUtSmON . :. 15-1500 Pennits6Fees 3 15-1500 Dem-Utilltles 1 15-1500 DepoJit Rehnds 1 15-1898 ConUngency PERMITS & FEES M-2000 Onsita lmprwemsmt 3 20-2298 Gmtingency STE IMPROVEMENTS 23-0000 Common Area 0 23-2498 Contlngency COMMON AREAS 25-2503 Engineering - Chil 12 25-2505 Engineering - Sob 8 25-2509 Coruullanl- Enmnl 78 25-2514 Engineering - Other 25-2798 Contingency ENGINEERING 30-MMO New Cwtnrctkn Costs io 30-3798 Contingency 39-oooO Lot hnpmyemnts 0 39-3998 Contingency DIRECT C0NSTRUCTK)N LOT IMPROVEMENTS 40-oooO General Condm 21 40-4398 Contingency CONSTRUCTION INDIRECTS 50-0001 Archilect - Predevelopmenl 15 50-0001 Architect - SchematWDesign 7 500001 Archileet - Constr. Docs 3 50-0001 Archiiect - Cow. Supervision ao 5C SO08 Consuftant ~ 0-r 7 50-5109 EheprinWDellveriw 50-51 1 I Travel ExpenwPhotogrephy 50-5362 Legal Fees - Project Dev. 54-5460 1wurar)cB - General Liability 54-5461 Insurm - Builders Risk 54-5463 Acrount*lg/Audittng 50-5598 Soft Cos? Contingency 10 PROJECT DEVELOPMENT 59-5902 Developer Fee - Galellus o 59-5902 Deferred Devdcper Fee ~ Calelkrs 59-5901 Developer Fee - MAAC 0 59-5901 Deferred beloper Fee - MAAC 59-5905 Conlractor Fee - Catellus o 59-5904 Contractor Fee - CUATRO o OVERHEAD 60-6001 ComlNction Loan Fees 60-6002 Pen. Lbflgage Loan Fee? 132-6002 Pen. Loan Ra!e Lo& Ft39 60-M)ll Consmuon Inspeclb Fees 21 60-6012 Escrowllitle Fees 606063 Lwal Fees - Mortaaae Lendor 60-6010 Bank Appraisal Fees (BofA) 604062 Legal FW - Rnanclnp 60-6082 Tax Cradil Monitodng Fees 606084 Tax CredH Pellommce De!xs;t 60-6084 Tax i3:edit Performance DeposiI Refunds 60-6085 Tax Credil Consultants 60-6121 COP' don Inlersst Ewpense 60-6121 A6 D Loan Inleresl 60-6199 OperaUng ShortfsR 60-6320 Operating Reserves 0 68-6620 Property Taxes EO-6498 COntingeWV FINANCING COSTS 73-oooO Wol I OfRce Decoration 73-7498 Contingency 80-0~~) Mode11ornce Malnlsnancs 5 85-0000 Marketing 5 85-8698 Condngency z RENTAL OFFICE COMPLEX, UARKETING TOTAL PROJECT COSTS MOnW Draws (exchKilng Inlerest) MOnW Dram (!ncM!ng Inkrest) . '., 10,891 /wit 2,703 LS 10,910 /un# 18,077 /unit (48.493) LS 0.21% 18.550 /Wit 106,425 LS i5a.478 LS 0.00% 1,148 hnn 0 /unit 0 /unit 1.959 hi1 0.00% 92.353 LS 226.452 LS 20,828 Ls O.W% 4.420 /unit 65.10 /Sf 1 .a% 72,991 /unH 0 /unit 0 /unit 29,651 IrnO 0.74% 4.546 /unit 0.00% 50,000 LS 30.000 LS 9o.ooo LS 7c.393 LS 12.760 LS 2,663 LS 106,726 LS 0.878% 0.122% 8.706 LS 0.00% 3.725 hnil 2a.m LS 100.00% 1.502.903 2,703 1,505,- 2.494,833 108.425 (46.493) 5,279 2.559.844 158.478 0 158.478 0 0 0 270.379 92.353 228,452 20.828 0 610.012 9,926,049 148.693 10,072.742 0 0 0 622.681 4.604 627285 50,000 30,000 90.000 70,393 19,760 28.953 2.683 106.726 95598 13.277 6.706 0 514,076 346.968 1 53.032 346.968 1 53,032 3.23% 352.050 1.63% 177.349 9.633 /unit 1.329.399 1 .CO% 1 .WX 21.575 LS 10.500 LS 21.622 LS 49.683 LS 4.00% 4.00% 35.500 LS 8.00% 19.331 LS 647 hno 10,ooo LS $410 /unit 1 2.OOo /unit 1.20% 1 007% 11.845 /unit 119.416 67.500 21.575 1o.m 13.588 21.622 49.683 1o.m w596 28.650 42.596 (42,596) 35.500 845,014 19.331 27.450 278,000 42.901 1.159 1.634385 3o.ooo LS 3o.m 5.m 1.500 228/unit. .7 31.500 5.000 LS 5.m 90;497 LS 90;497 1.97% 1,885 706 /unit 97.382 138.752 lunit 19.140,904 (U.0321 18.215.412 -~ 1W.W 19,034.844 Vuiura I d.lan.d davokpm In Income Inflator 2.50X Expense Inflator 3.50% # of Months of Construction: # of Months of Stabilized Operation: 0 12 YEAR BASELINE RENTAL REVENUE Gross Potential Rent - Residential Credit CheckRate FeesRaundrylMisc. Gross Potential Rent - Daycare Vacancy Allowance - Residential TOTAL RENTAL REVENUE PROPERTY OPERATING COSTS: Administrative Expenses: Office Supplies & Equipment Bank Charges Credit Check License & Fees Telephone/Answering Service Fed. ExPostage Misc. Administrative Expense Marketing Expense: Advertising Professional Fees: Property Management Fee Legal Fees BookkeepinglAccounting Services Utilities: Electricity (units) Gas - (units) Water and Sewer - (units) Personnel Costs: Salaries - Manager Salaries -Assistant Manager Salaries - Office & Leasing Salaries - Maintenance Payroll Taxes Workers Compensation Health Insurance/Other Benefits Contract Services: Exterminating Trash Removal Courtesy Patrol - Security YardJGrounds Fire Protection Services Elevator & Other Equipment Cleaning & Decorating Painting Supplies Repairs & Maintenance: Repairs & Maintenance - General EquipmenWehicle Expense Facilities Services TOTAL VARIABLE COSTS Taxes & Insurance: . Real Property Tax Assessment Property Insurance TOTAL FIXED COSTS TOTAL OPERATING COSTS NET OPERATING INCOME: lnflatlon Fador: $565 /unit/mo $10.00 Iunitlmo $3,000 lmo 5.00% 6,811 lunit hflation Fador: $700 lrno $15 lrno $120 /mo $23 lmo $350 lmo $50 /mo $100 /mo $417 /mo $4,000 Imo $450 lrno $1,333 hno $10.00 IuniWmo $10.00 /unit/mo $29.00 /unit/mo $2,333 /mO $1,667 Imo $1,213 lrno $3,460 Imo 20.000% 5.000% $750 Imv $0.91 Iunitho $7.25 Iunitlmo $2,400 Imo $13.04 IuniUmo $21 /uniVmo $150 lnio $1.45 /LiniVmo 1.00000 934,884 16,560 36,000 (47,572) 939.872 1.00000 8,400 180 1,440 275 4,200 600 1,200 5,004 48,000 5,400 16,000 16,560 16,560 48,024 28,000 20,000 14,560 41,520 20.81 6 5,204 9,m 1,500 12,006 28,800 21,600 250 1,800 2,401 $6.88 /uniVmo 1 1,393 $120 lrno 1,440 $1,152 Imo 13.824 $2,942 Nnit 405,957 Inflation Factor: 1 .ooooo 0 lunit 0 $138 lunit 19,000 $138 /Unit 19,Ooo $3,079 Nnit 424,957 45.5% of Rent INCOME STATEMENT Income Inflalor 2.50% Expense Inflator 3.50% YEAR BASELINE CASH FLOW FROM OPERATIONS: Net Operating Income 514,915 Soclal Services Allocation (36.000) RESERVES 0.60% of hard cost Replacement Reserve or $200 /unit (27.600) Unrestricted Cash Reserve 0 451,315 CASH FLOW AVAllABLE FOR DEBT SERVICE: ‘LAUREL TREE APARTMENTS RENT PREMIUM CALCULATIONS Total Units Potential Rents 2BW2BA Mgr 2 2BW2BA 44 3BW2BA 46 46 0 0 0 0 0 0 0 0 0 . 0 138 Units per Floor 2BW2BA Mgr 2 2BW2BA 44 3BW2BA 46 46 0 0 0 0 0 Total 132 Project Rents 2BW2BA Mgr 2 2BW2BA 44 3BW2BA 46 46 0 0 0 0 0 Average 850 850 1,058 1,226 0 0 0 0 0 0 0 0 0 rent increase €!@&E~-. . ,. ger floor (5 -131 - ~. ..- $0.00 $1 .oo $0.90 $0.77 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 $0.00 $2.67 1,700 37,400 48,668 56,396 0 0 0 0 0 144,164 --- 850 850 1,058 1,226 0 0 0 0 0 1,045 $0.00 $1 .oo $0.90 $0.77 $0.00 $0.00 $0.00 $0.00 $0.00 $0.87 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 850 950 950 0 0 0 0 0 0 0 0 0 0 2 44 46 46 0 0 0 0 0 .mQU ._ 0 850 950 950 0 0 0 0 0 0 0 0 0 0 0 mz2G 0 850 950 950 0 0 0 0 0 0 0 0 0 0 0 1 w- flssr_ci 0 0 850 850 950 950 950 950 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 138 0 0 Average Total mm 0 0 850 37,400 950 43,700 950 43,700 0 0 0 0 0 0 0 0 0 0 124,800 0 37,400 43,700 43,700 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ij 3 0 0 0 0 0 0 0 0 0 0 laam 0 0 0 2x4 0 0 0 0 0 0 0 2,- 0 0 0 l=ULo. 0 0 0 0 0 0 0 0 15mm 0 0 0 10,077 M 1mm u IM.IDI)LS Dll. m5Ed M . 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1269) m 411 w7 1.113 7.561 72.531 (1.140 rim a.y4 24.177 am 25.m 72506 42310 33.221 P,W1 62.740 31.454 7.864 lawn 226f 18.142 4519 32633 371 2.720 46s Y,u? 2.178 1984.023 tdu 11137 282 2252 uo 6.%9 ffl 1.677 7.826 75.070 8.445 n.mJ n.ow 25.8s4 75.107 43,791 31.m 84.935 32.555 8.1s 14.078 2.24 18.777 45.042 23,781 391 2.815 ani 3.755 35,857 2252 1.295.824 ,.*lW4 13,507 281 2.931 44s 6.m 971 1.942 1.100 77.897 8.741 25.890 mbm u1.803 n.m 45,323 32374 23.588 87.m 31.8% 8.424 14.588 2,428 19.424 48,818 34.964 4c5 2.014 1887 38.884 2231 1,320.014 1.- 14.073 xn 2413 461 7,024 1.M 2.010 8.yu 80.417 9.W7 28.m 27.744 27.744 w.457 46.910 31507 24.m 69.W 34.874 8.710 15.078 2.513 20.114 4E8.m 38.1- 3.01a 4.023 38.175 2,413 410 1.381215 1.- 14.565 312 2497 7.20 1.010 2.081 8.677 LLJ.231 0.354 27.744 28,716 u1.715 83.273 46,551 24.m 71.9% ss.095 0.024 15.606 2.801 20.811 49.939 37.454 433 1121 4,164 477 n.247 39.512 2.407 IJDs.245 1.- 15.075 323 2.5w 194 zus !.on 21% 8.W 81.144 9.801 20.715 28.720 28,720 86.117 50.251 15.89) 28.lJo 74.515 37.356 9.M 16.152 2.892 21,547 51.6E7 38.785 449 1230 4.- 40.894 2.5W l.uo.la3 1.11.. 15.601 334 2.875 511 7.801 1,114 2.m 9.296 80.159 10.030 29.120 w.7w 9.780 89201 52010 37,150 27,045 24.- 9,666 16,717 27e 22.x)I 53.408 40,122 464 3.343 4.460 42328 2.675 77,123 $138 lwif $138 Nuoil U.019 Nnl 6.5% dRml 0 0 0 0 0 0 0 0 0 0 25,695 26.801 27.739 28.710 28.715 30.755 31.- 32,946 34.099 35.292 594.701 615.516 637.059 (159.354 682.433 708.318 731.039 756.826 781108 810,516 25.8% zw~i 27.139 28.710 2~.715 y1.m 31.832 0.w y.om s.m 550,uz 558.258 w.057 573.838 s8i.590 sawx 5s.975 804,589 ~i2.137 6ig.aio IrLEaln 4.m 8.m 7.25% ZMX aoox 0 0 0 0 0 0 0 0 0 0 2.574 4.591 8.755 9.075 9548 10,113 12,790 15.655 18,715 1334 0 0 0 0 0 0 0 0 0 0 (209.u6) (2%376) (288.824 U82.866) lZ76.457) (269.588) (Z(u.160) (254,198) (245.840) (Z3G.W) 0 0 0. 0 0 0 0 0 0 0 (27,720) (27,nO) (27.RO) (27.120) (27.720) 127.7%) b7.m (Z7.72Q) (27.nO)- (27,720) 0 0 0 0 0 0 0 0 0 0 50 /m (9.401) (9.793) (10,074) (10.426) (10.791) (11,189) (11.584) (11.W5) (12.383) (12.8173 $135 I"* l25.4B3) (28.375) 1272Ps) (28253) 120.242) (30.268) (31.1x) (32.422) (93.556) (34,731) 6.111 hrlvl 1.485.879 hmsm F- 1.- s7w Imo 11.140 115 lnw 348 $120 lmo 2703 $23 /ma 5.20 wo Imo 8.075 $50 Imo 1.154 $100 Inw 2.307 $417 /mO 9.W $4.m mM %?.ZOO 54% /ma 10.382 $1,333 hno 30.760 s1o.w llmahm 31.837 s1o.m hnahm 31.837 t2o.m hrdnw 02.p6 @.xu lnw 54,m $1,867 Imo 2d.450 $1.213 hm 27.092 $3460 hno mmz 2o.woI 40.010 5.- IO.W5 1750 /mo 17.303 .. 113 04 IuNl/mo 41.528 121 /""Urn0 481 llyl lmo 3.481 11 45 hVldJnw 4.616 50 88 llnlvmo 4007 $120 Imo 2.7M 1,537.M t9LIDn 16.714 256 2.865 0.357 1.1M 2581 0.957 547 95.510 10.745 31.837 a951 32.051 95,m S.714 ?am 28.071 e611 41.410 10.355 17,WO 2985 57.308 42.970 497 3582 4778 45,340 2.865 wm 1.510.080 2.- 17.200 371 2.- 5M B.BS0 1.2% 2.471 I 0,305 0B.W 11.121 32,951 M,lM w.02 57.664 41.181 20. ws 65.508 42.880 10.717 18.535 niw 2089 24.729 50.312 44.484 515 3.707 4w 48.927 2.966 1.570.5~ 2.13lSt 17.W l94 2wo SM 8.W 1270 2.m 10.888 102,313 11,510 34,104 36.29. s63oa 102% 59.m 42.630 31.a U1.m 44.360 11.m 10184 3107 25.591 81.3M 46.041 513 3837 5.110 48.576 3.060 1.01a.056 1~11 18.531 397 llTl M17 0.266 1.324 2.647 11,010 105.803 11.013 35.M 36.m 36.533 105.946 61,771 44.122 32.121 01.5911 45.w 11.481 10.815 3.309 28.487 81.536 47.852 551 as71 5.297 $0.270 3177 1,658,508 1- iaiw 411 3288 626 9.500 2,740 11.428 t.no 1m.m IZUO 24.523 37.112 37,112 lCU6SS Qm3 45,w xJ.245 M.W 47.530 11.8BZ 20.5% 3.425 27.414 85,760 49.320 571 4.110 5,483 52.028 3288 1.sw.971 2-4 I0,nSl 425 3.403 850 9.92s 1.418 2.m 11,620 iiaa 12782 37,112 39.136 %I35 113- 68.171 47s 34.409 W.1P 40.103 12.w 21.268 3.545 28.373 88,081 51.048 591 42s 5,875 53.850 4403 1.742.470 zubo. in.- 44 2522 673 10273 1.468 2955 12240 11 7.W 19208 30.135 40.506 400505 117.485 M.487 48.019 35.613 101.55d 50.015 12W 22.014 as0 m.w 29.368 52.833 81 1 4403 5.1i3 s5.735 3.522 1.788.0P 253161 21.266 458 8sd 10.633 1.519 2031 12.888 121.515 13.870 40.505 acys 41,&?3 41.023 121.576 mw 50,831 %.am 106.111 52.697 13,174 an4 3707 72.wo 54.882 835 4.557 a.om 3o.m 57.680 3.645 I.&%J.862 -17 Zzm 472 721 11.005 1.572 3144 iaiii 3m l25.7M 14.140 41.923 4390 13.m l%.lUl 735 52403 31.150 lM.7Po 54,541 13535 Pytt 3DJD 75.461 56.5% 655 4.716 1- 59.705 n.a 3m $1.152 /ma 26.577 n.507 28.470 291- 30,497 31.566 3200 P.813 34.00s 3621 12.M2 Nnn 802357 830.439 159,SW 880587 920.723 S2.W 886.p2 1.020.622 1.056551 1.091UO M.lm F.cD. 1-1 146691 lSlY7 1- 15180 1- 1MWl IOTY? 1- 1741111 0 lunl $138 /"nil 11311 NniI $3.079 Nnh 45.5% d Rnl lln&h 4.m 8.m 7.25% O.W% 3.m 0 0 0 0 0 0 0 0 0 0 36.528 37.806 30.129 40.199 41.018 4Jd3 U,WZ 46.473 48.IW 40.m M.528 37.8Cd 38.129 40.400 41.916 43.383 44.002 46.473 48,100 49,783 8311.884 868,245 898,634 930,088 962.830 996,332 1,031.203 1.067.295 1.104.851 1.143.313 828.9% 634.281 611.455 848.505 65. 117 662.176 668.787 675.174 181.31 887,350 0 o n n o 0 0 0 n 1.811 hmil 1.876,UO 27tlm 22.780 4M 748 11,300 1.827 3254 13.570 a= 130,170 14.644 43.380 400 400 130335 75.w 54.237 39.485 112597 56.450 14.113 24.407 4wII P.559 78.102 678 4.881 8.512 (11.791 3.m 58sn 1.m1361 m zsn 505 4.042 m 11.no 1.W 3.361 l4.W 134,?2E 15.157 U.9W 46.481 46,481 134.7P3 n.50 56.136 40.M7 H6.SU 56.426 14.607 =a1 4.210 33.698 80.8% €0.627 702 5.052 4740 sa657 4M2 2.- 24.a 5.23 4.183 799 12.201 1.743 1486 14.537 130.442 15.887 48,481 48,107 48,107 139.511 11.341 u.1w 42197 120,817 80.471 15.118 a.145 4.3- %.on 03.W 62.749 728 5.m 6.978 dd.lW 4.183 rmm Plsr 541 4.m sn 12.62s 1.804 1OM 15.048 1u.m 1- U.107 (0.m 49.791 1u.w 84.1- 80,124 UTll 124.1131 625M 15.847 27.080 4.510 36.m 145w 64.9l5 752 5.412 7po m.513 sm 2071.249 a aitiw 1.140 5MI 4481 e56 13.070 1.W 1734 15.572 149.373 16.804 49.791 51.534 51.534 110.44 ff.134 62239 45.310 129m 64.778 16.1% 21.007 4.868 37,362 09.624 87.211 778 5.801 7. (R 70.910 4.481 Ll21.W a.mca 27.055 SM) 4.624 LIM 19528 1.933 3,865 mi17 1Y.Wl 17.m SI.534 UY7 u337 154,879 miu 64.417 46.0% 131730 67.M5 16.761 28.988 4.W 36.670 92.781 60.571 8% 5.W 7,734 71382 4.w ZWcQ (Iw 4,aw 017 14,Wl ZW 4.m la6111 lao.012 tLW1 us7 56204 55204 1 80.ool aw 86,872 48.171 138,411 89.W 17.348 33.002 5.m 40.023 96.007 72.m Iu3 8.W 8.m Is.%( 4.m lyDn 21.8112 621 949 14.491 2.070 4.m 4.140 17.285 11.613 18.631 s5.w 57.1 36 57.136 11.sw w.07 89.00s 50.236 143.255 71.821 l7.M 31.052 5.175 41.424 99.388 74.528 862 6.210 8.285 78.520 4.w~ 3S7lrn 29.097 843 5,142 14.998 2143 '4.21 m2 17.889 171.40'4 19,284 57.136 59.136 59.136 171.4% 90.909 71.m 51,904 148.289 74.- 18.5U 32.139 5.357 42.074 102.LU6 n.w 893 6.428 8,575 81.371 5.142 amwl 31.046 M6 5.322 1.016 15.521 2211 4.435 18.4% in.- 10.w 59.136 61b 61.206 1n.w n920 1m4W 53.814 153.- 76.936 10.234 31.m 5.544 u.374 1W.M 79.8% 924 8.655 8.875 84.2lS 5.322 $138 Nnl $3.079 Nnn 45.5% dRnt laua!s 4m 8.W 7.25% 0.oOX 3.m 0 0 0 0 0 0 0 0 0 0 20.m 24.W 29.594 34.857 40.473 46.461 52042 59.837 66.087 55.872 0 0 0 0 0 0 0 0 0 0 (76,182) (54280) (30.7381 (8.W 0 0 0 0 0 0 0 0 0. 0 0 0 0 0 0- 0 e e e 0 0 e (10,265) P.9W '5,rnS (3.y 0 0 0 0 0 0 8q120 690.615 703.833 708.752 712351 717.W 721.492 724.W3 728.053 710.872 (71.874) V3.671) (75.512) (77.UO) (ro.335) (81.310) (R3.32) (C5.455) (87.571) (09.781) un 48- 11.1s IUJI 001 Qm 001 am ooc 0 0 0 0 0 0 0 0 0 001 0 4.811 Iunl s7w /mo $16 Imo $120 Imo $23 imo WO lm0 SO lmo s1w 1mo $417 Im0 W.m /ma Imo 11.333 IN Il0.W lunumo Il0.W hwnw pD.00 Muma S2-m hno $1.867 hno (1.213 hno $3460 Imo 20.wox 5.Wm $750 hno $0.91 luwm 17.25 Iununw $2*w hno $13.04 lunlvmo $21 lunlvmo $150 lmo $1.45 Iunlm0 16.116 luniymo $120 hno 2.402014 arxn a133 (189 I.= 1.052 16.W7 2.205 4.590 19.142 103.618 20,857 4l.ZC4 83.34a 63.w 183.710 107.110 76.507 55.897 1sL.W m,m 19.907 34.428 573 45.927 110.171 858 8.W 9.165 87,167 5.m e2m8 1138 Irn $136 mnn $3.079 Nntl 45.5% d R.N InLBu. 4.m L.m 7.25% 0.m 1- 30 .. __,. 2523816 4.- 34,422 5.901 1.127 17.211 2.159 1.917 20.o.s(u 7311 iw.em 22.121) 65.545 67.160 47,860 IW,IpI 414,730 81.W 59,664 im,iu 16.390 21.325 34.811 8.147 49.100 114018 a.513 1.024 7.378 9.C-W 03,376 mi 241.374 urn wn TDO 8,m 1267 18.437 2434 6.280 *.%E 210.704 23.704 ma 72.699 zio.aii 72.m 122911 n,w 03.3914 112260 PM4 39,507 91.376 4s 52703 1.097 7,mi 126.413 94.118 10.541 1w.m 8,321 2717.658 4- 38.164 810 8.342 1.249 19.082 2728 5.452 a735 218,WO 24.- 72.891 75238 218,lIo 127213 64.151 1M.W 81.574 23.w M.ID3 8.815 54.Y7 1P.W m.11 1.136 8,171 10.1109 102527 8.54 nrjl m.na 276.Wo 4.- 39,m 848 6,771 1291 19.750 2,821 5.643 22531 2ZS.713 25.30 75.236 77.871 77,871 2zS.m 131,666 81,047 0.M 196.242 97,884 24.471 41,321 7.w 5s.157 135.428 101.571 1.175 8.464 11,101 107.151 8,771 2.ss240 I- 40.- 876 7.m 1.a 20.441 2920 5.w 24.354 223,813 2d.281 77.m M.o.507 60.597 2a.m 126274 97.3311 202075 101.310 25.P8 43.w 7.300 58.19 140,168 105.124 1.217 8.760 11.6MT m,w 1io.m 7.008 2,028.421 5.- 42.313 07 72% 1.365 21.157 2m 6.04 25,207 241.700 27201 80.597 a417 83.417 241.911 Ill.M4 1W.745 73.343 209.IU 1W.W 20.214 45.336 7.356 60,478 145.074 108.W 1.259 9.087 12.m 114.7W 72% Looo.7m InY 43.794 eY0 7.501 1.424 21.897 3128 ea 26,019 m152 28,153 83.417 a.m w.337 250.377 145.900 104171 75,910 218,161 108.W UI.s-22 7.820 42.5w 150,151 112.614 1.303 9.384 12.519 118,800 7,500 27.131 9.646 5d.631 SOW3 62807 6.W 87.281 69.835 72.073 1.710.223 1.77O.WI 1.8POU 1.896.181 I.oBz.532 2.031.220 2.102.313 2,175.894 2lspo IZDT24 UUIS 2.- 2.Mt 2- 23m7 0 0 0 0 0 0 0 0 72.w 75.2~1 77.49 M.W 03.404 w.m 89.w 82472 95.700 w.058 9 1.~0.203 1.727.sa6 1.7116.092 1,850,675 1.91S.UO 1.W2.489 2,051,877 2.123.69;' 2.IpB.OP 2.274.952 732,811 734,uO 735.524 736,031 735.925 735.169 733,723 131,547 728.599 724.834 0 0 0 0 0 0 0 0 0 0 44.613 51.789 59.390 67.529 70.1M 1.307 e5.182 105.603 115.661 102.W 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O' 0 0 0 0 0 E- 0 0 0 0 0 0 0 0 0 0 0 24.813 31.749 39.399 47.M 58.186 aS37 75.191 85.603 96,661 82.065 757,424 786.m 774.923 783,T m.111 800.565 808,915 817.150 825,260 806,879 732.811 7y.U 735,524 736.031 735.925 735.169 733,723 731,547 721.580 124,834 (eW5) (81.305) (W,M2) (99,079) (101,556) (104.OOr) (lW,691 (109.W) (112.080) (114.WI) (105.W) (1O9276) (113103) (117.059) (121.1M) (125.396) (129.74) l134.328) (1Jo.029) (143.895) 0 0 0 0 0 0 0 0 02 5s.m 530.~ 5W.761 510.8C3 513.213 505.67~ 497,241 487.855 477,471 4w.038 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n n 0 0 0 I 0 0 ~~ 535228 51P.69 525.761 519.S3 513,213 505.478 497,241 u17.855 477.471 463.0% &m Po. Qm u). u). an8 Po. am Qm Qa 0 0 0 0 0 0 0 0 0 0 0 00 OIpOOO w- g 0 cd 80°H ,$g ooooo ,0°8 x 3 s0@z f h@ B 0 oogo$$ 00000 00000 9 rn 0 s- m4 offooo 000000 00000 00000 0000 00000 0000 080'8 0000 n ul 0 000000 00000 00000 0000 00000 0000 00000 0000 oqooo .9 d 000000 00000 00000 0000 00000 0000 00000 0000 oqooo b d Off 0 8 0 eogo80 d 0- 0- w- P N 3- 00000 00000 00000 0 00 O#OOO 8 0 "$ d 8 d _p 1 I v) 2 a 5 s 0 a a a a 0 0 I 0 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 gff 20 zoo% ooooo r;'% ;. 4 8""s ooooo I= h- ;. ;. m N ,oo!! riN ooooo z. 2 8""s ooooo %- 6 0 s mo HO"H ooooo ~$ 80°8 m- ooooo SO0, ". ooooo go03 Y ooooo Xd 6R f 9 Om h' N f ;. h h- NN ;- 3 8008 00000 Nh 2? ;- 2 "2 RN 8008 00000 B 0 B ni Offooo 0 00 0 0 00 0.4000 b 0 0 00 0~000 8 0 0 00 OIpOOO 8 d 0 00 OIpOOO 8 d 0 00 O$OOO 8 0 n no o>:ooo 8 0 offooo s0goQ $08O&j 00000 00000 SO"$ 00000 0000 00000 0 00 oqooo 8 d P g g 3- N h' k- 0 o$ooo goo$ 00000 0000 00000 o 00 o*ooo 00000 00000 $Joog 00000 0000 00000 0 00 Y $% d -. g. $ 8 gs m 33 00000 00000 goo$ 00000 0000 00000 0 00 &- 0 33 !iOsO$q d 0- g PN- !3 sogo& 00000 00000 $ g- gg 56 0 $ r&$ G- I& 0 !iOgO& !i08"8% h5 53 -3 d goo, ooooo Gogo$$ 00000 00000 2 g 0- gOgOgg 00000 00000 8008 00000 SO?? OO#$jO 0 00 o.goo0 a- g- 0- a- 22 N r m-2 d u? dK ogooo 00000 00000 goo$J 00000 0000 00000 0 00 ;- ;- 00000 00000 ,003 00000 0000 00000 0 00 OgOOO us 8 nd 0 s! i3g 3 2- zogo 00,go 0 00 0*000 9 s r -- 8 NN m 3 -- - - 3- 8 et- :. :- - gg 20 ff d . - 0 00000 ooocIo 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 00000 i! 0 0000 00000 0000 00000 0000 00000 0000 00000 0000 00000 0000 00000 0000 00000 0000 00000 0000 00000 0000 OOOOO *ffooo 0 00 d 0 00 o*ooo 8 0 0 00 O.POOO s 0 0 00 0~000 E d 0 00 o.foo0 $ 0 0 00 O$OOO 8 0 0 00 o&?ooo 8 0 0 00 ogooo $3 0 0 00 0~000 8 0 Exhibit 4 RECORDING REQUESTED BY AND WHEN RECORDED MAIl TO: , City of Carlsbad 2965 Roosevelt Drive, Suite B Carlsbad, CA 92008 Attention: Housing and Redevelopment Director No fee document pursuant to Government Code Section 278393 (SPACE ABOVE THIS LINE FOR RECORDER’S USE) MODIFICATION AGREEMENT (Laurel Tree Apartments City Loan) THIS MODIFICATION AGREEMENT (the “Agreement”) is entered into as of the day of “City”) and Carlsbad Laurel Tree Apartments, L.P., a California limited partnership (the “Borrower”). , 2000, by and between the City of Carlsbad, a municipal corporation (the RECITALS A. The Borrower is the owner of that certain real property located in the City of Carlsbad, San Diego County, and more particularly described in Exhibit A attached hereto (the “Land”), on which the Borrower is constructing a one hundred thirty-eight (138) unit multifamily development known as Laurel Tree Apartments (the “Improvements”). The Land and the Improvements are collectively referred to herein as the “Property.” Y I3. The City and the Carlsbad Redevelopment Agency, Carlsbad, Ca1ifaw.k :.i , ”Agency”) entered into an Agreement dated June 11, 1998, pursuant to which the Agency transferred to the City certain funds from the Agency’s Low and Moderate Income Housing Fund created pursuant to Health and Safety Code Section 33334.2 (“Redevelopment Housing Funds”) and the City agreed to utilize such funds in accordance with the requirements of the Community Redevelopment Law (Health and Safety Code Section 33000 et seq.). - C. The City made a loan to the Borrower in the total principal amount of Seven Hundred Thousand Dollars ($700,000) from Redevelopment Housing Funds (the “City Loan”), subject to the terms and conditions of a City Loan Agreement by and between the City and the Borrower dated June 1 1, 1998 (the ”City Loan Agreement”). D. The City Loan is evidenced by a City Note fiom Borrower to the City dated June 1 1, 1998 (the Tity Note), and is secured by a City Deed of Trust and Security Agreement dated June 11, 1998, and recorded December 8, 1998, against the Property as Instrument 1010\07\127486.1 01/10/00 1 No. (the "City Deed of Trust"). in the Official Records of the County of San Diego (the "Official Records") E. The City Loan is subject to the terms and conditions of a Regulatory Agreement and Declaration of Restrictive Covenants by and between the City and the Borrower dated June 11, 1998, and recorded December 8, 1998, against the Property as Instrument No. in the Official Records (the "City Regulatory Agreement"). The City Loan is also subject to the terms of a Mortgage Loan Rider dated December 2,1998, by and between the City and the Borrower (the "Mortgage Loan Rider"). F. The City Note, the City Deed of Trust, the City Regulatory Agreement, the City Loan Agreement, and the Mortgage Loan Rider, as further modified pursuant to this Agreement, are hereinafter collectively referred to as the "City Loan Documents". G. reflect a Two Hundred Twenty-Four Thousand Dollar ($224,000) increase in the amount of the City Loan. The City and the Borrower desire to modify the City Loan Documents to NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, it is hereby declared, understood and agreed as follows: 1. Amendment of City Loan Agreement. The City Loan Agreement is hereby modified and amended .o increase the amount of the City Loan set forth in Recital 4 by Two Hundred and Twenty-Four Thousand Dollars ($224,000) so that the total amount of the City Loan shall be Nine Hundred Twenty-Four Thousand Dollars ($924,000) and to increase the amount of the portion of the City Loan fbnded with City Housing Trust Fund monies by Two Hundred Twenty-Four Thousand Dollars ($224,000) to Four Hundred Twenty-Four Thousand Dollars ($424,000). The City Loan Agreement is further amended to increase the amount of the City Loan set forth in Section 1.1 (e) and Section 2.1 by Two Hundred Twenty-Four Thousand Dollars ($224,000), so that the total City Loan amount shall be Nine Hundred Twenty-Four Thousand Dollars ($924,000) and to increase the principal amount of the City Note set forth in Section 1.1 (Q by Two Hundred Twenty-Four Thousand Dollars ($224,000), so that the total prim;'pal amount of the City Note is now Nine Hundred Twenty-Four Thousand Dollars - ($924,000). 2. Amendment of City Note. The City Note is hereby amended to increase the principal amount by Two Hundred Twenty-Four Thousand Dollars ($224,000), so that the total principal amount is now Nine Hundred Twenty-Four Thousand Dollars ($924,000). The City shall place a notation on the original City Note setting forth the new principal amount of the note pursuant to this Agreement, which notation shall be signed by the Borrower. 3. City Deed of Trust. The City Deed of Trust is hereby amended to increase the loan amount set forth in Section 1.1 by Two Hundred Twenty-Four Thousand Dollars ($224,000), so that the total loan amount is now Nine Hundred Twenty-Four Thousand Dollars ($924,000), and to increase the amount of the City Note set forth in Section 1.4 by Two Hundred 101 0\07\127486.1 01/10/00 2 Twenty-Four Thousand Dollars ($224,000), so that the total principal amount of the Note is now Nine Hundred Twenty-Four Thousand Dollars ($924,000). 4. Mortgage Loan Rider. The Mortgage Loan Rider is hereby amended to increase the loan amount set forth in the introductory paragraph by Two Hundred Twenty-Four Thousand Dollars ($224,000), so that the total loan amount is now Nine Hundred Twenty-Four Thousand Dollars ($924,000). 5. Full Force and Effect. Except as set forth in this Agreement, the City Loan Documents remain unmodified and are in full force and effect. 6. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of the legal representatives, heirs, successors and assigns of the parties. 7. California Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 8. Counterparts. This Agreement may be signed by the different parties hereto in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement. I 01 0\07\1274a6.1 01/10/00 3 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day first above written. BORROWER: Carlsbad Laurel Tree Apartments, L.P., a California limited partnership By: METROPOLITAN AREA ADVISORY COMMITTEE ON ANTI-POVERTY OF SAN DIEGO COUNTY, INC., a California nonprofit public benefit corporation, its general partner By: Its: City: CITY OF CARLSBAD, a municipal corporation APPROVED AS TO FORM: By: Ron Ball City Attorney By: Its: 1010\0~127486.1 01110100 4 STATE OF CALIFORNIA ) COUNTY OF ) 1 ss On ,2000, before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. STATE OF CALIFORNIA 1 COUNTY OF ) 1 ss On ,2000, before me, , personally appeared satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. , personally known to me (or proved to me on the basis of WITNESS my hand and official seal. 1010\07\127486.1 0 1 I1 0100 101 0\07\127486.1 0 1 I1 0100 EXHIBIT A Legal Description of the Land A- 1 h Exhibit 5 City Note $700,000 ~L!M 11 ,1998 Carlsbad, California FOR VALUE RECEIVED, Carlsbad Laurel Tree Apartments, L.P., a California limited partnership ("Borrower"), promises to pay to the City of Carlsbad ("City"), or order, the principal sum of Seven Hundred Thousand Dollars ($700,000), or so much thereof as is advanced to Borrower by the City pursuant to Section 2.6 of the Loan Agreement (defined below), plus simple interest accruing at the rate of three percent (3%) per annum, commencing upon disbt nement. 1. ,om m. This City Note is made pursuant to a City Loan Agreement 1\, 1998, by and between the Borrower and the City (the ''City Loan dated as of zdd~ Agreement"), and as contemplated by a Regulatory Agreement executed by the Borrower and the City (the City Regulatory Agreement"). 2. k. The term of this City Note (the "Term") shall commence on the date of this City Note and shall end on the earlier of (i) thirty (30) years from the date of issuance of a certificate of occupancy for all units in the Development (as defined in the City Loan Agreement); or (ii) June 30,2029. 3. and Time of Pam. All mounts due under this City Note shall be due and payable as set forth in Section 2.3 of the City Loan Agreement. 4. -. Borrower shall have the right to prepay all or a portion of the principal and interest due under this City Note without any charge or penalty being made therefor. 5. Deed of Tnr;it. This City Note is secured by a deed of trust of even date herewith (the ''City Deed of Trust). 6. Accel-. Upon the occurrence of a default under the City Loan Agreement, City Regulatory Agreement or City Deed of Trust, and expiration of all applicable notice and cure periods (an "Event of Default"), the City shall have the right to accelerate the Term of this City Note and declare all of the unpaid principal and accrued interest immediately due and payable. Any failure by the City to pursue its legal and equitable remedies upon an Event of Default shall not constitute a waiver of the City's right to declare an Event of Default and exercise all of its rights under this City Note, the City Regulatory Agreement, the City Deed of Trust, and the City Loan Agreement. Nor shall acceptance by the City of any payment provided 101 O\OnllO469.5 1