DEVELOPER QUALIFICATIONS
120 E COTATI AVENUE | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY
April 30, 2024
Contact Information:
Robin Zimbler
Freebird Development Company
1111 Broadway, Suite 300
(510) 319-6959
[email protected]
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY
TABLE OF CONTENTS
Cover Letter
Section 1. Development Team 1
• 1.a. Development Team Overview 1
• 1.b. Resumes 3
Section 2. Comparable Projects 5
Section 3. Financial Capacity 8
• 3.a. Public Funding Experience 8
• 3.b. Bank Debt and Tax Credit Equity Experience 9
• 3.c. Financing Goals 9
• 3.d. Potential Financing Programs 10
Section 4. Conceptual Plan 12
• 4.a. Narrative 12
• 4.b. Program Principles and Objectives 12
Section 5. Exhibits 16
• 5.a. Disclosures 16
• 5.b. Freebird Project List 17
• 5.c. John Stewart Company Project List 18
• 5.d. Concept Drawings 19
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY
April 30, 2024
Noah Housh, Director
Community Development
City of Cotati
201 W Sierra Avenue
Cotati, CA 95931
Re: 120 E Cotati Avenue RFQ, Cotati, CA
Dear Mr. Housh,
Thank you for the opportunity to respond to the Request for Qualifications (RFQ) for 120 E Cotati Avenue. Freebird Development Company, LLC, is pleased to submit our qualifications. Our development team undoubtedly has the expertise, track record, community accountability, and imagination needed to fully realize the City’s and community’s vision for the site.
Our team’s strengths are:
• We transform lives through inclusive projects reaching households with a broad range of incomes and abilities.
• We have a strong commitment to community engagement.
• We integrate projects within existing neighborhoods to enhance communities. • We are a seasoned team with strong financial capacity and expertise, and a proven track record of bringing in projects on-time and on-budget.
• We have the capacity to make the project a top priority. It will not be one of many, as it may be for other development teams who currently have deeper pipelines with projects that compete for their time, energy, and financial resources.
We are pleased to submit our qualifications and look forward to working with you and community stakeholders. Should you have any questions regarding our qualifications, please do not hesitate to contact us.
Sincerely,
Robin Zimbler
Manager
Freebird Development Company, LLC
1111 Broadway, Suite 300
Oakland, CA 94607
510.319.6959
[email protected]
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 1
1. DEVELOPMENT TEAM
1.a. Development Team
Freebird Development Company
Developer
1111 Broadway, Suite 300
Oakland, CA 94607
www.freebirddev.com
Contact Information
Robin Zimbler, Manager
510.319.6959
[email protected]
Freebird is a joint venture between Robin Zimbler and L+M Development Partners (L+M) launched in 2018. Robin is a leader in the affordable, mixed-income, and community development field with over 20 years of experience in the industry—a career spanning both the public and private sectors. In her private sector career, Robin has managed the development of over 2,400 units totaling over $1.4 billion in investment, including ten projects in California. A detailed list of Freebird’s and Robin’s past projects can be found in Exhibit 5.b. of this response.
Robin provides the day-to-day management of Freebird, financially backed by L+M, who has a strong balance sheet and deep financial capacity. Since 1984, L+M has been a real estate leader and innovator, responsible for more than $9 billion of development and construction. Working with community, government and investment partners, the company has developed or invested in over 30,000 units of high-quality, affordable and market rate housing. L+M is currently ranked 27th in Affordable Housing Finance magazine’s listing of “Top 50 Affordable Housing Developers” in the country.
North Bay Housing Coalition
Local Non-Profit Partner / Services Provider
1234 Empire Street, Suite 1210
Fairfield, CA 94533
www.northbayhousingcoalition.org
Contact Information
Mary Eble, Executive Director
707-718-9274
[email protected]
North Bay Housing Coalition (NBHC) will serve as a local non-profit partner and services provider for units set aside for people with intellectual and developmental disabilities. NBHC has been creating affordable housing opportunities for people with intellectual and developmental disabilities since 2001.
It owns and manages its inventory of single-family homes and condos as well as acting as liaison with private developers on larger projects with set-aside units. NBHC believes that people living with intellectual and developmental disabilities can and should have equal access to affordable housing, independence, and the opportunity to live their best possible life in their community. 120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 2
The John Stewart Company
Property Manager
1388 Sutter Street, 11th Floor
San Francisco, CA 94109
www.jsco.net
Contact Information
Jennifer Wood, Vice President
415-345-4400
[email protected]
The John Stewart Company (JSCO) is a leading full-service housing management, development and construction management company employing over 1,400 people at five offices throughout the state.
JSCO services a diverse portfolio of more than 444 properties with over 32,700 units of housing—home to more than 72,500 California residents. JSCO prides itself on its extensive knowledge of managing a wide variety of affordable and market rate housing complexes that have a multiplicity of federal, state, and local funding sources. This exposure has given JSCO wide-ranging experience in the operations and compliance requirements of many different housing programs. JSCO not only provides traditional property management services but also integrates them with a broad array of human services. It is the company's operating philosophy that a comprehensive program of housing and complementary support services is essential to the long-term viability of housing communities.
Lists of projects managed by JSCO are included in Exhibit 5.c. of this response. The lists include projects located in Sonoma, Napa, and Marin counties and projects with a set-aside of units for people with intellectual and developmental disabilities.
HKIT Architects
Architect
538 Ninth Street, Suite 240
Oakland, CA 94607
www.hkit.com
Contact Information
Paul McElwee, Principal
510-625-9800
[email protected]
HKIT Architects has 70 years of experience working with developers on affordable residential developments. Through the years of experience, HKIT has built a practice that understands the importance of design in creating a strong community and how to design efficient, well detailed buildings that meet the needs of the residents and clients. HKIT understands the critical importance of working with budgetary restraints, competitive funding sources, and diverse program needs. HKIT has provided architectural services and coordination activities for over 1,800 units of affordable housing funded through various state and federal programs. HKIT is unique in the housing industry with a portfolio of experience including many types of supportive living environments that rely heavily on creative design to provide structure to the needs of very special groups of residents, fostering a rich sense of community.
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 3
1.b. Resumes
Robin Zimbler
Principal in Charge
Manager,
Freebird Development Company
Robin established Freebird Development Company as a joint venture with L+M Development Partners in 2018. Prior to that, she spent 3 years as Senior Vice President for Related California overseeing the Bay Area affordable office, where she was responsible for the coordination of all aspects of development and financing for Related’s affordable residential developments. Prior to joining Related, Robin was Development Director at L+M, where she oversaw the development of large scale, mixed-income residential developments: Faubourg Lafitte in New Orleans, Navy Green in Brooklyn, and Candlestick Heights in San Francisco, along with the ReFresh Project in New Orleans. Across her private sector career, Robin has managed the development of over 2,400 units totaling over $1.4 billion in investment.
She began her career working in the public sector as Director of Multifamily Initiatives for the New York City Department of Housing Preservation and Development, and Director of Strategic Planning, Policy, and Programs for Baltimore Housing. Robin holds a master’s degree in City and Regional Planning from the University of North Carolina – Chapel Hill and a bachelor’s degree from Washington University in St.
Louis.
As the majority owner and manager of Freebird, Robin Zimbler is authorized to execute and bind any required documents in connection with this RFQ including the ENA, LOA, Ground Lease, and Regulatory Agreement.
Lisa Gomez
Financial Partner
Chief Executive Officer,
L+M Development Partners
Lisa oversees the day-to-day operations of L+M Development Partners and its affiliated companies. Lisa has more than 25 years of experience in real estate finance and development. Prior to joining L+M, she was in senior management at the New York City Housing Development Corporation (HDC), overseeing $1 billion annually in bond financing and mortgage insurance. At HDC, she was also responsible for developing and executing policy and financing programs to stimulate the creation of affordable housing for Mayor Bloomberg’s successful New Housing Marketplace Plan. Lisa also held various positions at JP Morgan Chase Bank, the New York City Economic Development Corporation and Silverstein Properties, among others.
Lisa is a Board member of Center for the Urban Future as well as the Stella and Charles Guttman Community College Foundation. She is a past Chair of the New York State Association of Affordable Housing and the Greenpoint Manufacturing and Design Center. Lisa was also a Commissioner of the New York City Planning Commission from 2004 to 2007. She is a graduate of Louisiana State University. 120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 4
Mary Eble
Non-Profit Partner
Executive Director,
North Bay Housing Coalition
Mary has been the Executive Director of the North Bay Housing Coalition (NBHC) since 2001. She is dedicated to NBHC’s mission to create and to support affordable housing for persons with intellectual and developmental disabilities.
With a master’s degree in Social Work paired with her experience, Mary has created and managed many projects over her tenure with the organization including working with developers and affordable housing advocates. She oversaw the creation of the agency’s housing services program that has supported more than 500 people since its inception in 2012. As the aunt and care provider for her adult nephew with Down Syndrome, she also understands the needs from a personal point of view.
Jennifer Wood
Property Manager
Vice President,
John Stewart Company
Jennifer has 25 years of progressive experience in affordable housing and multifamily property management. She has extensive experience with all types of local, state, and federal programs including LIHTC, Project-Based Section 8, Public Housing, HOME, Bond, HOPE VI, RAD, tenant-based subsidy programs and more.
Jennifer began her career as a Community Manager in 1994 with Goodale & Barbieri in Spokane, Washington. She quickly advanced to corporate roles as an Occupancy Specialist and Regional Manager. She moved to Puget Sound in 2001 as a Portfolio Manager for Allied Residential where she managed both affordable and conventional properties for a variety of clients including for profit developers, non-profits, and public housing authorities. In 2005, joined Cambridge Management, Inc. in Tacoma, Washington where she served as Director and oversaw their property management operations while they expanded to more than 14,000 units in seven states including California. Jennifer began her tenure with The John Stewart Company in 2018 as Assistant Vice President for their San Francisco Bay Area region and assumed responsibility as Vice President in 2019.
Paul McElwee
Architect
Principal,
HKIT Architects
Paul brings over 20 years of experience specializing in multi-unit residential communities. His portfolio includes affordable and market rate developments, senior housing, assisted living, multi-family, SRO, and special needs housing. Paul is the recipient of several awards for his design work from various organizations, such as The Enterprise Foundation, San Francisco SPUR, and Dwell Magazine. He received his bachelor’s of architecture degree from Carnegie Mellon University. He is a licensed architect in California.
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 5
COMPARABLE PROJECTS
Monroe Commons
Santa Clara, California
Monroe Commons is a 74,000 square-foot three-story building containing 65 residential units in a mix of studios and one-, two- and three-bedroom units. All units are deed restricted for use by households at income tiers between 30 - 80 percent of area median income (AMI), with a 25% set-aside for people with intellectual or developmental disabilities. The project includes on-site amenities such as a fitness center, game room, laundry room, community room, and approximately 32,000 square feet of open space. The project includes many sustainability features including photovoltaics covering 100% of the projected residential energy usage, pervious concrete for the parking lot, low flow plumbing fixtures, and energy efficient lighting.
Monroe Commons was developed pursuant to a long-term ground lease with the City of Santa Clara. The site was previously zoned as single-family with a general plan designation of transportation right-of-way. As a result, we could not use any of the State’s streamlining programs and led a year-long community engagement, entitlement and CEQA process.
The project was one of the first projects to be awarded funding under CalHFA’s Mixed Income Program. The project started construction in April 2022 and completed construction in October 2023.
Units: 65
Year Completed
Started construction in April 2022;
Completed in October 2023
Population Served
30%-80% AMI; 25% set-aside for
people with intellectual and
development disabilities
Financing
$50 million financed by 4% LIHTC,
tax exempt bonds, City subsidy,
County subsidy, CalHFA Mixed
Income Program, bank debt, and
Project Based Section 8
Reference
Jonathan Veach
Former Housing Division
Manager,
City of Santa Clara
310-422-1893
[email protected]
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 6
South Park Commons
Santa Rosa, California
South Park Commons is a 66,000 square-foot four-story building containing 62 residential units in a mix of studios and one-, two- and three-bedroom units. All units are deed restricted for use by households at income tiers between 15 - 50 percent of area median income (AMI). 50% of the units are reserved for permanent supportive housing for households experiencing homelessness. The project includes on-site amenities including a community room, laundry room, property management office, social services office, and expansive open space including a children's play area and community gardening.
The project is all-electric by choice (the City did not require it to be all-electric since it is higher than 3 stories) and includes many sustainability features including photovoltaics, low flow plumbing fixtures, and energy efficient lighting. The project will meet CalGreen Tier 1 requirements and has qualified for an award of approximately $400,000 through the California Energy Commission’s Building Initiative for Low-Emissions Development Program (BUILD).
The City conveyed the site to the development team for $1. Entitlements were secured through a State density bonus and streamlined ministerial review. Nonetheless, we have worked very closely with neighbors through their neighborhood group, South Park Coalition, during predevelopment and construction.
We were successful in securing $24 million in State funding for the project through the Multifamily Housing Program, the Housing for Healthy California Program, and the Infill Infrastructure Grant Program. The project started construction in April 2023 and is expected to complete construction in 2024.
Units: 62
Year Completed
Started construction in April 2023;
Anticipated completion in 2024
Population Served
15%-50% AMI; 50% set-aside for
formerly homeless
Financing
$49 million financed by 4%
LIHTC, tax exempt bonds, City
subsidy, State Multifamily
Housing Program, State
Housing for Healthy California
Program, State Infill
Infrastructure Grant Program,
RED Housing Fund, BUILD
incentives, bank debt, and
Project Based Section 8
Reference
Nicole Del Fiorentino
Housing and Community Services
Manager,
City of Santa Rosa
707-889-2370
[email protected]
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 7
Saggio Hills
Healdsburg, California
Freebird and the City of Healdsburg executed a Development and Disposition Agreement (DDA) in April 2023 to develop an affordable housing development on the Saggio Hills site.
The project, which will include both rental (up to 80% AMI) and for-sale (up to 120% AMI) phases in a variety of housing types and unit sizes, is located on 12 acres to the northeast of the Parkland Farms community. Indoor/outdoor recreation areas will include a community building with community room and teen room, playgrounds, pedestrian, and bike paths, and hiking trails connecting to the broader trail network. The project will meet Energy Star Multifamily New Construction Program requirements and include innovative sustainability measures such as a laundry-to-landscape greywater reuse system.
Per the terms of the DDA, the City will convey the site to the development team for $1.
The project qualified for a State density bonus to reduce minimum parking requirements but did not qualify for ministerial approval or CEQA streamlining. Freebird led a robust community engagement process with multiple in-person developer-led meetings and focus groups, plus seven project-specific public hearings. The biggest testament to the success of our community engagement process was that only one public comment was made during the two City Council hearings in which our entitlements and Development and Disposition Agreement were approved.
The project has been recommended for an award of HOME funds by the Sonoma County Community Development Commission. We recently applied to the State’s Affordable Housing and Sustainable Communities program—awards will not be announced until August 2024. We anticipate starting construction on the first rental phase in 2025 and completing all rental phases by the end of 2027.
Units: 118 total (108 rental; 10
ownership)
Year Completed
Project in predevelopment;
anticipated to start construction
in 2025 and complete in 2027
Population Served
• Rental – 30% - 80% AMI; 10%
set-aside for people with
intellectual and
developmental disabilities
• Ownership – Up to 120% AMI
Financing
Rental phases to be financed
through 4% LIHTC, tax exempt
bonds, City subsidy (secured),
County subsidy (secured), State
subsidy (AHSC application
pending), and bank debt
Reference
Stephen Sotomayor
Housing Director,
City of Healdsburg
707-431-3396
[email protected]
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 8
3. FINANCIAL CAPACITY
After opening its doors in 2018, Freebird brought its first new construction project, Monroe Commons, to the financing markets in 2020 just as CDLAC moved to a competitive process for allocating tax-exempt bonds, and construction costs and interest rates were skyrocketing given the pandemic. In the intervening years, despite an incredibly competitive public funding environment and challenging construction and private financing markets, Freebird has proven its ability to secure public financing, to command the best pricing and terms for private bank debt and equity, and to deliver projects on-time and under-budget. Freebird has never asked TCAC or CDLAC for a time extension, a request that became commonplace for developers during the pandemic. Freebird closed on Monroe Commons in 2022 and South Park Commons in 2023 both within 4 months of CDLAC/TCAC allocation.
3.a. Public Funding Experience
With respect to public funding, Freebird’s manager, Robin Zimbler, closely follows the creation of new public funding programs and changes to the various existing State affordable housing financing programs including bonds, credits, HCD programs, and CalHFA programs, to ensure she is structuring projects as flexibly as possible to be competitive under multiple programs. For example, during the first year of CDLAC’s competitive process for bonds, it was very difficult for Northern California projects to compete in the General Pool given construction costs were so much higher in Northern California than in other parts of the State and the CDLAC scoring system had not yet adjusted for that. Recognizing this, Robin closely followed the creation of CalHFA’s Mixed Income Program (MIP) and made sure Monroe Commons (Santa Clara) was structured to compete successfully under that program. Monroe Commons was one of the first projects awarded under the MIP program, starting construction in April 2022, and completing in October 2023, well under budget. The project was 100% leased as of January 2024 and is on target to convert to permanent financing later this year ahead of schedule.
Similarly, on South Park Commons (Santa Rosa), Robin closely followed program regulation changes to various HCD programs to structure the project to be competitive for as many programs as possible so that the project could benefit from either stacking State funding programs or having multiple viable funding paths should the project not succeed in a specific program round. In the end, the project was successful in securing HCD funding through three different HCD programs, each in the first round we applied—the Multifamily Housing Program, the Housing for Healthy California Program, and the Infill Infrastructure Grant Program—securing over $24 million in State funding for the project. The project has also been awarded approximately $400,000 in funding through the California Energy Commission’s BUILD program, a new program designed to incentivize the construction of all-electric buildings. South Park Commons started construction in April 2023 and is on target to complete construction later this year well under budget.
Freebird recently applied for State Affordable Housing and Sustainable Communities funding for its Saggio Hills project in Healdsburg, with awards anticipated to be announced in August 2024. Proving again Freebird’s deep understanding of program regulations and scoring, Saggio Hills has the highest quantitative policy self-score of the Rural Innovation Project Area projects, based on preliminary information released by HCD.
In addition to State programs, Freebird has also been opportunistic in securing funding from new local funding programs in the jurisdictions in which its projects are located, including Sonoma County funding for projects that set aside units for people with intellectual and developmental disabilities (Monroe Commons) and funding from the newly-created RED Housing Fund in Santa Rosa (South Park Commons). Freebird also has experience securing funding from the Sonoma County Community 120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 9
Development Commission, which recently recommended an award for Freebird’s Saggio Hills project in Healdsburg.
3.b. Bank Debt and Tax Credit Equity Experience
Freebird’s financial partner and 49% owner, L+M Development Partners (L+M), provides any necessary project predevelopment funds and project guaranties for Freebird’s projects, commanding industryleading pricing and terms. L+M has a 40-year track record of securing funding for affordable housing projects including tax credit equity and private bank debt. Since its inception in 1984, L+M has secured over $9 billion in financing for over 30,000 units—the vast majority of which has been for affordable housing projects financed with low-income housing tax credits.
With L+M as its financial partner, Freebird has financed both Monroe Commons ($50 million) and South Park Commons ($49 million) with Chase as the construction lender and Raymond James as the tax credit syndicator (we received bids from multiple lenders/investors on both projects). Both projects enjoyed tax credit raises over $0.91 with favorable terms that allowed 20% of the equity to come in at construction financing and an additional 30% at completion to save a significant amount of money on construction interest—a structure that saves scarce public subsidy dollars.
Together, with Freebird as its Owner’s Representative, L+M secured $522,000,000 in financing (not a typo) for El Rancho Verde in San Jose, a 700-unit 100% affordable acquisition/rehabilitation project financed with tax-exempt bonds and 4% credits, which we acquired in 2018 and completed the rehabilitation of in 2019. Citibank provided the construction and permanent debt and a partnership between Citibank and Wells Fargo served as the tax credit investor with a tax credit raise of $0.985.
Prior to the creation of Freebird, L+M secured financing for and completed three additional California projects including: Candlestick Heights in San Francisco ($129,000,000), 5880 Third Street in San Francisco ($43,000,000), and Bellflower Manor in Los Angeles ($32,000,000). Freebird’s Manager and 51% owner, Robin Zimbler, served as project manager on Candlestick Heights and 5880 Third Street during her prior employment with L+M. She also oversaw the development and financing of an additional 4 California projects totaling approximately $400 million while Senior Vice President at Related California.
3.c Financing Goals
We are confident that we will be able to secure the necessary public and private financing for 120 E Cotati Avenue. The following three goals will underpin our financing approach:
• Provide Housing for Broad Range of Incomes and Abilities. We envision a project that is 100% affordable but serves a broad range of incomes between 30% AMI to up to 80% AMI depending on funding path. Given our partnership with the North Bay Housing Coalition, the project will include a 25% set-aside for people with intellectual and developmental disabilities, which will serve as the 30% AMI tier. We anticipate two additional income tiers to ensure no gaps in coverage—up to 60% AMI with a 50% AMI income average if 9% low-income housing tax credits or HCD’s Multifamily Housing Program (MHP) or Affordable Housing and Sustainable Communities (AHSC) programs are pursued, or up to 80% AMI with a 60% AMI income average if CalHFA’s Mixed Income Program (MIP) is pursued.
• Minimize Local Public Subsidy to the Greatest Extent Possible. To ensure financial feasibility of the project, we would structure the land sale with no upfront acquisition cost—this could be accomplished through a $1 fee simple sale, a long-term below market ground lease, or (if financially feasible) seller carryback financing for up to appraised value so that the City could 120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 10
ultimately recapture the land value over time through residual receipts payments (this is how we structured Monroe Commons). We would otherwise strive to minimize local public subsidy to the greatest extent possible although some may be necessary, particularly since the project is not in a Qualified Census Tract (QCT) or Difficult Development Area (DDA) and, therefore, does not qualify for the 130% basis boost on tax credits.
• Ensure Competitiveness Under Multiple Funding Paths. Given today’s climate of scarce resources and continued rising costs, it is necessary to have a Plan A, a Plan B, and even a Plan C. We will structure the development program including bedroom mix, number of special needs units, and income targeting to maximize scoring under several programs. With respect to bedroom mix, we will design the project with at least 25% two-bedroom units and at least 25% three-bedroom units to meet large family eligibility under several State programs (given the close proximity to other affordable senior developments, we do not think additional senior housing would be appropriate at this location). In addition, as previously mentioned, we will include a 25% set-aside for people with intellectual and developmental disabilities which will serve as our 30% AMI tier, with those units spread across bedroom sizes to ensure at least 10% of units at each bedroom size are 30% AMI. This structure satisfies scoring criteria under multiple programs for extremely low-income (30% AMI) and inclusion of special needs units.
3.d. Potential Financing Programs
Below is a description of some of the funding programs we think could be viable for the project:
• Section 811 Supportive Housing for Persons with Disabilities – Section 811 provides rental assistance to extremely low-income adults with disabilities. The program works similarly to Project Based Section 8 where the resident pays rent based on 30% of their income and the difference between the resident-paid portion and Fair Market Rent is contributed by HUD through CalHFA’s administration. CalHFA recently applied to HUD for funding under Round IV, with awards to State housing finance agencies anticipated to be made this year. If awarded, our understanding based on communication with CalHFA staff is that they will begin to allocate funding next year. This program has traditionally been one of the least competitive programs administered by the State, yet the rental assistance received can generate significant proceeds to projects. We would pursue this program for the units set aside for people with intellectual and developmental disabilities under any of the capital funding scenarios described in this section. • Sonoma County Community Development Commission – The Commission administers various local and federal sources which we will seek for the project. Based on the Commission’s past NOFAs, we believe the project will be competitive for funds administered by the County.
Freebird was recently successful in being recommended for funding by the Commission for its Saggio Hills project the first time we applied for Sonoma County funding. We will pursue County funding under any of the capital funding scenarios described in this section.
• Federal 9% Low Income Housing Tax Credits (9% LIHTC) – Twice annually TCAC awards up to $2,500,000 per project in 9% tax credits, subject to availability of credits. We then sell those credits to an investor who can claim the full amount of the allocation in each of 10 years, generating equity for the project. 9% LIHTC awards have traditionally been highly competitive and difficult to secure. Even though that will likely continue, we need to keep this option open should Congress expand the 9% program (current efforts underway) or should there be disaster recovery credits available to Sonoma County again in the future (as there were in the aftermath of recent fires).
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FREEBIRD DEVELOPMENT COMPANY 11
• Federal 4% Low Income Housing Tax Credits (4% LIHTC) and Tax-Exempt Bonds Coupled with State Capital Programs – Similar to 9% LIHTC, TCAC awards 4% LIHTCs to projects whose developers then sell those credits to an investor generating equity for the project. Although TCAC/CDLAC moved from an over-the-counter to a competitive process for 4% tax credits and tax-exempt bonds a few years ago, 4% credits are still less competitive than 9% credits, particularly for projects that do not request State tax credits. Given the project is not in a QCT or DDA and, therefore, does not qualify for the 130% basis boost for credits, and State tax credits will only become more competitive, if even available (the State’s current budget proposal does not renew the $500 million annual State tax credit program), we believe the project will need to couple 4% credits and tax-exempt bonds with one of the State capital programs listed below. • California Affordable Housing and Sustainable Communities Program (AHSC) – In the coming years, we anticipate AHSC to be one of the more stable State funding programs as it is funded through the State’s Cap and Trade auction. The AHSC Program provides grants and loans for transit-oriented affordable housing and related infrastructure that reduces greenhouse gas emissions. The key to a successful application is partnerships with the local jurisdiction to plan for pedestrian/bike improvements and with a transit agency to include a transit scope that maximizes the reduction of greenhouse gas emissions. Freebird recently worked with the City of Healdsburg, Sonoma County Transit, and CalVans on an AHSC application, with awards anticipated to be announced in August 2024. Unfortunately, the future Healdsburg SMART station was outside the 2-mile project area so could not be included in the application, but Freebird has developed good relationships with key staff at SMART with the eye toward a future application.
• California Multifamily Housing Program (MHP) and Infill Infrastructure Grant Program (IIG) – MHP could generate a significant amount of funding for the project ($250,000 - $400,000 per unit depending on bedroom and affordability mix) in the form of an up to 3% residual receipts permanent loan repayable from 50% of cash flow over the loan’s 55-year term. While MHP has historically been very competitive and may become even more competitive given proposed State budget cuts, there is a new Emerging Developer set-aside for which Freebird is eligible.
Plus, MHP can be coupled with the IIG program which could be a viable source of funding for site preparation, sidewalk and streetscape improvements, utility improvements, and storm water management. Freebird was successful in securing both MHP and IIG funds for its South Park Commons project the first time we applied for each.
• CalHFA Mixed Income Program (MIP) – MIP provides long-term subordinate financing for new construction of multifamily housing projects which restrict units between 30% AMI to 120% AMI.
Perhaps, more importantly, participation in this program provides access to a set-aside of taxexempt bonds and State tax credits. While projects with an average affordability of 60% AMI can be competitive in MIP (as opposed to other State programs where average affordability needs to be closer to 50% AMI or even 40% AMI for competitiveness), the increase in private debt that the higher rents generate does not offset the lower subsidy amount (MIP caps subsidy at $50,000/unit). As a result, it is reasonable to anticipate the project will need more local subsidy under a MIP execution than if successful in securing AHSC or MHP/IIG funds. 120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 12
4. CONCEPTUAL PLAN
4.a. Narrative
We have thoughtfully crafted a conceptual plan based on careful consideration of the Downtown Specific Plan, the City’s General Plan and Housing Element, and the Cotati Municipal Code. In response, our plan is based on two premises. The first is that as a sizeable amount of downtown vacant land, the site represents an unusual and important opportunity to create affordable housing that will help meet the City’s ever increasing RHNA numbers. The second is that given the site’s key location in Cotati’s historic downtown, the development should be something special—a community asset that contributes to the economic and social health of Cotati.
Conceptual drawings are included in Exhibit 5.d. It is important to note that our conceptual drawings are only intended to give an idea of what we think could be achieved on the site—additional study and discussions with City staff and community stakeholders would further shape our plan and could change it significantly. Having said that, we do believe that pursuing the 27-unit project for which the site has already been entitled would be a missed opportunity for the City, and that higher density can be achieved while still successfully integrating the project into historic downtown.
To achieve a higher unit count of 52 units while maintaining the 3-story height previously entitled, we have envisioned a 3-story podium building with a 56-stall parking garage on the ground floor screened by active, pedestrian-oriented uses along street frontages, with the residential units on the 2nd and 3rd floors, consistent with the Downtown Specific Plan. While the building is 3-stories along the street frontages, the back of the building adjacent to lower density development is one-story with a podium courtyard just off of the building’s 1,000 square foot community room. This well-defined and comfortable courtyard will provide a children’s play area and gathering space for residents. The 4,000 square foot commercial space at E Cotati Avenue and La Plaza and the building lobby at E Cotati Avenue and Charles Street anchor the project with prominent corner entries welcoming people in. We have kept ingress/egress to the parking garage as shown on the entitlement drawings from both E Cotati Avenue and Charles Street.
As previously noted in the Financial Capacity section, we would design the building with at least 25% two-bedroom units and 25% three-bedroom units, and a 25% set-aside for people with intellectual and developmental disabilities (I/DD) to maximize the project’s competitiveness for several affordable housing programs. The inclusion of the I/DD units helps achieve the City’s Housing Element goal of expanding affordable housing opportunities for developmentally disabled persons and has the added benefit of justifying a lower parking ratio, as we have found that residents in I/DD units typically do not own cars.
4.b. Program Principles and Objectives
Our conceptual plan responds to the program principles and objectives included in the RFQ in the following ways:
• Affordability – As previously described in the Financial Capacity section, we envision a project that is 100% affordable but serves a broad range of incomes between 30% AMI to up to 80% AMI depending on funding path. In addition to a 30% AMI tier serving people with intellectual and developmental disabilities, there would be either: a) 50% AMI and 60% AMI tiers with an average affordability of 50% AMI; or b) 50% AMI/60% AMI and 80% AMI tiers with an average affordability of 60% AMI, depending on funding path. Given the City’s RHNA numbers, we would prefer to include 80% AMI units, but that scenario would likely require more local subsidy as described in 120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 13
the Financial Capacity section. We would not include units above 80% AMI, as the increase in rents for those units would not be high enough to offset the loss of the property tax exemption for those units.
• Financing Security and Innovation – As discussed extensively in the Financial Capacity section, we would structure the project as flexibly as possible to be competitive under multiple affordable housing financing programs. Freebird has proven its financial acumen and success in securing local, state, and federal funding for affordable housing projects as also described in the Financial Capacity section.
• Accessibility – At least 15% of the project’s units will be accessible for people with physical disabilities and at least 10% will be accessible for people with hearing and/or vision impairment, exceeding building code requirements. Accessible units will be distributed throughout the project and all other units will be fully adaptable (blocking for future grab bars, sufficient circulation space widths, bathrooms and kitchens that comply with accessible or adaptable standards). Considerations for physical and audio/visual impairments will be made in all common areas and play structures will be designed to encourage engagement from all children, regardless of abilities. Clear orientation and wayfinding will be priorities in site planning and signage design. All service provision and programs will be held in accessible locations. • Sustainability and Resiliency – The building will be all-electric with a photovoltaic system sized to cover 100% of the projected residential electrical usage. A tight building envelope—particularly through high value insulation and windows—and high efficiency HVAC systems will allow the building to surpass State energy code requirements. Energy Star appliances will reduce energy usage even further. Interior materials and finishes will be selected for their durability, ease of maintenance and contribution to good indoor air quality. Low VOC and low formaldehyde finishes, walk-off mats, resilient or hard-surface flooring in all living areas of the residential units along with careful construction practices will also contribute to indoor air quality. Low flow fixtures and efficient irrigation on separate meters will reduce water use. At least 25% of the parking spaces will be EV Ready with chargers installed for at least 5% of the parking spaces.
Contractors will be required to provide construction storm water management and a high rate of waste diversion during construction. Similar to our South Park Commons project, we anticipate participating in the California Energy Commission’s Building Initiative for Low-Emissions Development Program (BUILD).
• Construction Innovation and Cost Efficiency – All applicable construction typologies will be studied as part of the initial project design for suitability in terms of cost, speed of project delivery, and sustainability. These methods will include standard Type V construction, modular, mass timber (for columns and floor plates), and load-bearing metal framing. Freebird’s manager, Robin Zimbler, has experience building multi-family housing using modular construction. While employed at L+M Development Partners she led the development of 5880 Third Street, a 136-unit multi-family building in San Francisco completed using modular construction. Moreover, our team recognizes that some of the most critical decisions related to project costs are made at the beginning of the project. Early cost estimating exercises have a significant impact on shaping the direction of the project. Together with the City, we will select a contractor through a negotiated bid process with a proven record of accurate cost estimating along the way. In addition, we will work with our seasoned design team to ensure the most costeffective structural and mechanical systems are chosen for the project and that design efficiency is achieved through the use of double-loaded corridors, stacking units, and back-toback plumbing. 120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 14
• Inclusion of Commercial Square Footage into the Project Design – Consistent with the Downtown Specific Plan, we have incorporated active pedestrian-scaled ground floor uses on our street frontages including 4,000 square feet of commercial space at the corner of E Cotati Avenue and La Plaza and our building lobby at the corner of E Cotati Avenue and Charles Street. We envision the commercial space to become a community gathering place—whether it be a community center, coffee shop, and/or co-working space. Through its founder, Robin Zimbler, Freebird has relevant commercial experience as she was the project lead on the Refresh Project in New Orleans, which brought together community-serving non-profits and institutions in a retail center which has become the de facto neighborhood hub.
• Outreach, Partnership, and Collaboration – We recognize the importance of community engagement, input, and response, and will work closely with City officials, neighbors, and other community stakeholders. We have successfully implemented community engagement plans in other low density and single-family neighborhoods—most recently in Healdsburg (Saggio Hills), Santa Clara (Monroe Commons), and Santa Rosa (South Park Commons). Through our experience, we have developed a framework for community engagement that is both rigorous and adaptable to the particular context or concerns of a community. The process begins with a series of listening meetings. One-on-one meetings with key stakeholders, appearances at neighborhood group meetings, and hosting of our own meetings open to all are critical to understanding the concerns of the community and the first step in gaining the trust and support necessary to get a project approved. The second step is to introduce some initial goals and principles to the community. Depending on their concerns, this may take the form of workshopstyle meetings on the site, or simple presentations about what we heard from the listening sessions, and thoughts about how we might respond. It is also important to be clear at this point about goals that are not achievable for the project. The third step is introduction to the specific proposal. Materials are presented in a way to demonstrate the ways in which the proposal incorporates initial feedback and framed with specific questions to make sure that the conversation is focused and productive. Throughout the project schedule—from predevelopment through construction and management—we will invest time and resources in creating long term community relationships and involving community members in planning and designing a project that meets the needs of the community and the future residents. Engaging in this rigorous process not only improves the chance for community support but helps shape the project in a way that it is well loved and seen as an active, successful integration into the larger community. We encourage you to reach out to the references listed in the Comparable Projects section to discuss our successful outreach efforts in other communities. • Equity – After working for 10 years in leadership roles for two of the largest affordable housing developers in the country, Freebird’s founder, Robin Zimbler, is incredibly fortunate to have the confidence of L+M who is helping her realize her vision of leading her own woman-owned affordable housing development company (Robin owns 51%). Freebird qualifies as an “Emerging Developer” for State affordable housing finance programs. Equity is a central concern to our team, and developing inclusive communities is one of the primary ways we promote equity. Robin is the aunt to an adult nephew with developmental disabilities and sees first-hand the struggles of a family to meet the on-going housing needs of an adult child with developmental disabilities. When Robin first launched Freebird she made a personal commitment to develop communities inclusive of this often overlooked and underserved population. By selecting our team, the City will demonstrate its commitment to people of not just diverse incomes, but of diverse abilities. We are also committed to ensuring racial equity in access to housing and job opportunities. On our Saggio Hills project, we have collaborated closely with Corazon Healdsburg to make sure Latinx voices are heard. Given Cotati’s relatively large Latinx community we anticipate conducting similar outreach to the Latinx community and other minority groups for this project. As we move forward with construction and operation of 120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 15
the project, we will work to connect local, small, and/or disadvantaged businesses and people to the general contractor for construction job opportunities and to our property manager for permanent job opportunities and/or maintenance contracts. In addition, we will work closely with our property manager to market the housing opportunities to diverse populations. Our resident selection criteria will make it clear in the very first paragraph that we do not discriminate against any individual or family because of race, color, creed, national or ethnic origin or ancestry, religion, sex, sexual orientation, gender identity, age, disability, handicap, or any other arbitrary basis. Once leased, we will provide a wide variety of services, including individual services, educational classes, and community-wide programs. Given residents will be made up of different races, nationalities, and cultures, our team will survey residents to tailor services to their needs. Social activities such as holiday celebrations, games and hobby classes, and potlucks will be designed to help residents discover both what they have in common and what they enjoy about their differences.
• Respondent Capacity – Our development team has the requisite financial expertise and capacity to implement the proposed project as described in the Development Team section and the Financial Capacity section of this response. If selected as developer, 120 E Cotati Avenue will be a top priority—it will not be one of a long list, as it may be for other development teams who currently have deeper pipelines with projects that compete for their time, energy, and financial resources.
• Quality Architecture and Community Benefits – Our architect, HKIT Architects, has a long track record of award-winning work. Together with Freebird, HKIT recently completed construction of Monroe Commons (Santa Clara) and is expected to complete construction of South Park Commons (Santa Rosa) later this year. While this response includes a conceptual site plan, we recognize the importance of community input and will collaborate closely with community stakeholders to develop consensus around the site plan, massing, and building aesthetic.
Finishes will be handsome, durable, healthy, sustainable, and cost-effective. The units will be generous, efficient, and light-filled with access to a shared courtyard. Our team recognizes the importance of building homes, not just “housing”, that will contribute to the neighborhood and provide a handsome community asset. Community benefits will include: public access to the community room for community events on a reservation basis, extraordinary sustainability and accessibility measures as described throughout this response, robust social service programs including adult education classes, individualized health and wellness services, and social gatherings, extensive local outreach and assistance in multiple languages, and a commitment to local, small, and/or disadvantaged businesses through our contracting. • Adhere to Affordability Requirements of the Surplus Land Act Exemptions – We have worked with both the City of Santa Rosa and the City of Healdsburg to receive Surplus Land Act Exemptions for South Park Commons and Saggio Hills, respectively. The Surplus Lands Act includes certain exemptions when an agency is already planning to dispose of land for affordable housing, including an exemption for land that is transferred pursuant to Government Code Section 37364 (Government Code section 54221(f)(1)(A)). Government Code Section 37364 requires only 40% of the units to be affordable, and of those, half (or 20% of the total) are set at 50% AMI, and half (or 20% of the total) are set at 60% AMI (i.e., 75% of 80% AMI). 100% of our project’s units will be affordable—even in the scenario where we include units up to 80% AMI, our income targeting will be much deeper than required under Government Code section 54221(f)(1)(A). 120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 16
5. EXHIBITS
5.a. Disclosures
As the majority owner and manager of Freebird Development Company, LLC, Robin Zimbler is authorized to execute and bind any required documents in connection with this RFQ including the ENA, LOA, Ground Lease, and Regulatory Agreement.
There have been no defaults, judgments, court orders, pending litigation, contractual disputes, violation notices, or other matters reflecting a violation of applicable regulations related to the operations or projects undertaken by Freebird or any of its individual members or affiliates exercising direct or indirect control over the development entity, including all key persons on the Respondent team.
The information provided in this RFQ is complete.
Freebird has never been assessed any CDLAC and/or TCAC Negative Points and has never had any HCD compliance issues.
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 17
5.b. Freebird Projects List
Project Name/
Location
Income/
New or Rehab
Units Budget Financing
Sources
Status
45 Clermont, Navy Green
Brooklyn, NY
Affordable
New
101 $27,300,000 9% LIHTC,
Local Subsidy, Bank Debt
Completed
2012
7 Clermont, Navy Green
Brooklyn, NY
Mixed Income
New
112 $35,600,000 4% LIHTC, Tax Exempt
Bonds, Local Subsidy
Completed
2012
8 Vanderbilt, Navy Green
Brooklyn, NY
Mixed Income
New
99 $24,900,000 Local Subsidy, Bank Debt Completed
2016
Townhomes, Navy Green
Brooklyn, NY
Market Rate
New
23 $24,900,000 Equity,
Bank Debt
Completed
2016
Faubourg Lafitte Phase I
New Orleans, LA
Affordable
New
134 $42,100,000 9% LIHTC, State and Local
Subsidy, Bank Debt
Completed
2011
Faubourg Lafitte Phase II
New Orleans, LA
Affordable
New
142 $48,300,000 9% LIHTC, State and Local
Subsidy, Bank Debt
Completed
2011
Faubourg Lafitte Phase III
New Orleans, LA
Market Rate
New
89 $26,700,000 State Subsidy, Bank Debt Completed
2015
ReFresh Project
New Orleans, LA
Retail
Rehab
0 $18,200,000 NMTC Tax Credits, Local
Subsidy, Bank Debt
Completed
2014
Candlestick Heights
San Francisco, CA
Affordable
New
196 $129,500,000 4% LIHTC, Tax Exempt
Bonds, Inclusionary
Completed
2014
5880 Third Street
San Francisco, CA
Mixed Income
New
136 $43,000,000 State Subsidy, Equity,
Bank Debt
Completed
2015
Robert Pitts Plaza
San Francisco, CA
Affordable
Rehab
201 $86,200,000 4% LIHTC, Tax Exempt
Bonds, Local Subsidy, Bank
Debt
Completed
2017
Westside Courts
San Francisco, CA
Affordable
Rehab
135 $95,600,000 4% LIHTC, Tax Exempt
Bonds, Local Subsidy, Bank
Debt
Completed 2018
Westbrook Apartments
San Francisco, CA
Affordable
Rehab
223 $168,900,000 4% LIHTC, Tax Exempt
Bonds, Local Subsidy, Bank
Debt
Completed 2018
Sunnydale Parcel Q
San Francisco, CA
Affordable
New
55 $46,100,000 9% LIHTC,
Local Subsidy, Bank Debt
Completed 2019
El Rancho Verde
San Jose, CA
Affordable
Rehab
700 $522,000,000 4% LIHTC, Tax Exempt
Bonds, Bank Debt
Completed 2019
Monroe Commons
Santa Clara, CA
Affordable
New
65 $50,000,000 4% LIHTC, Tax Exempt
Bonds, CalHFA MIP, Local
Subsidy, Bank Debt
Completed 2023
South Park Commons
Santa Rosa, CA
Affordable
New
62 $49,000,000 4% LIHTC, Tax Exempt
Bonds, State MHP/HHC/IIG,
Local Subsidy, Bank Debt
Under
Construction
Saggio Hills
Healdsburg, CA
Affordable
New
118 TBD 4% LIHTC, Tax Exempt
Bonds, Local Subsidy
Predevelopment
2,591 $1,438,300,000
120 E COTATI AVENUE RFQ | COTATI, CA
FREEBIRD DEVELOPMENT COMPANY 18
5.c. John Stewart Company Projects List
Projects in Sonoma, Napa, and Marin Counties
Projects with Set-Asides for People with Intellectual and Developmental Disabilities 120 E COTATI AVENUE RFQ | COTATI, CA
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5.d. Concept Drawings
Included on following pages.
SETBACK
PROPERTY LINE
MAIL
MECH.
COMMERCIAL
(4,018 SF)
LOBBY
(4,212 SF)
BIKE ELEC.
PARKING
(56 STALLS)
TRASH
E. COTATI AVE.
LA PLAZA
CHARLES ST.
TRASH
UTIL.
V
10' - 0"
10' - 0"
10' - 0"
20' - 0"
V
78' - 5 3/8"
140' - 0"
160' - 0"
130' - 2 3/4"
UTIL.
125' - 0"
55' - 0"
21' - 1 1/8"
88' - 10 7/8"
42' - 2 3/4"
PROJECT DATA - SCHEME 3 V1
FLOOR 1 BR AREA
1 0
2 6 25,060 SF
SUBTOTAL: 13
PARKING: 56 TOTAL
- 52 REG. STALLS
- 4 ADA STALLS
2 BR 06
13 3 BR 06
13 STUDIO 08
13 33,264 SF
35777 25,060 SF
TOTAL UNITS: 52
TOTAL BUILDING AREA: 83,384 SF
COPYRIGHT © 2019 HKIT ARCHITECTS
Scale: Job No.: Date: By: Reference:
538 NINTH STREET, SUITE 240 OAKLAND, CA 94607 T 510 625 9800 F 510 625 9801 WWW.HKIT.COM S2.24
SCHEME 3 V1 FREEBIRD DEVELOPMENT
XXXXX 04/11/24
120 E. COTATI AVE, COTATI, CA 94931
SP
TRUE
NORTH
0' 20' 40'
VICINITY MAP
SITE
1" = 40'-0"
1 SCHEME 3 V1 - LEVEL 1
COURTYARD
(7,038 SF)
COURTYARD
20' - 0"
COMMUNITY
(1,117 SF)
TR
1 BR
2 BR
1 BR
STUDIO
STUDIO
2 BR
2 BR
2 BR
3 BR
3 BR
3 BR
3 BR
UTIL.
1 BR
3 BR
2 BR
1 BR
STUDIO
STUDIO
STUDIO
1 BR
STUDIO
E. COTATI AVE.
LA PLAZA
CHARLES ST.
2 BR
STUDIO
1 BR
3 BR
20' - 0"
LAUND.
STUDIO
20' - 0"
COPYRIGHT © 2019 HKIT ARCHITECTS
Scale: Job No.: Date: By: Reference:
538 NINTH STREET, SUITE 240 OAKLAND, CA 94607 T 510 625 9800 F 510 625 9801 WWW.HKIT.COM S2.25
SCHEME 3 V1 FREEBIRD DEVELOPMENT
XXXXX 04/11/24
120 E. COTATI AVE, COTATI, CA 94931
SP
TRUE
NORTH
0' 20' 40' 1" = 40'-0"
1 SCHEME 3 V1 - LEVEL 2
E. COTATI AVE.
LA PLAZA
CHARLES ST.
2 BR
1 BR
2 BR
1 BR
STUDIO
STUDIO
2 BR
2 BR
2 BR
3 BR
3 BR
3 BR
UTIL.
COURTYARD
BELOW
COURTYARD
BELOW
1 BR
3 BR
3 BR
2 BR
1 BR
STUDIO
1 BR
STUDIO
TRASH
STUDIO
1 BR 2 BR
3 BR
1 BR
3 BR
COPYRIGHT © 2019 HKIT ARCHITECTS
Scale: Job No.: Date: By: Reference:
538 NINTH STREET, SUITE 240 OAKLAND, CA 94607 T 510 625 9800 F 510 625 9801 WWW.HKIT.COM S2.26
SCHEME 3 V1 FREEBIRD DEVELOPMENT
XXXXX 04/11/24
120 E. COTATI AVE, COTATI, CA 94931
SP
TRUE
NORTH
0' 20' 40' 1" = 40'-0"
1 SCHEME 3 V1 - LEVEL 3