RESOLUTION NO. 2023 – ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DELANO APPROVING A
PLAN OF FINANCE FOR THE ACQUISITION AND REHABILITATION OF THE
MAGANDA PARK RAD, INCLUDING THE ISSUANCE BY THE HOUSING AUTHORITY
OF THE COUNTY OF KERN OF MULTIFAMILY HOUSING REVENUE BONDS NOT TO EXCEED $7,000,000.
WHEREAS, the Housing Authority of the County of Kern (the “Housing Authority”) is authorized pursuant to the provisions of Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code to issue revenue bonds for the purpose of financing rental housing projects; and
WHEREAS, the Housing Authority proposes to undertake a plan of finance for the acquisition, rehabilitation and conversion of the project known as “Maganda Park RAD” including the issuance of its tax-exempt multifamily housing revenue bonds in one or more series in an aggregate principal amount not to exceed $7,000,000 (the “Housing Authority Bonds”) in order to convert the Maganda Park RAD project from Low-Income Public Housing (LIPH) to ownership by a tax credit limited partnership pursuant to the Rental Assistance Demonstration (RAD) program of the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, Maganda Park RAD is a site located at 312 Balboa Court, Delano, CA. This site consists of 20 single family homes ranging from two, three, and four-bedroom units for rent to low-income households. An additional single-story building contains the leasing office, laundry room, and maintenance shop. The Development is currently a Low-Income Public Housing (LIPH) property that will receive Project Based Voucher (PBV) rental assistance for all units through conversion under the United States Department of Housing and Urban Development’s Rental Assistance Demonstration (RAD) program.
The Housing Authority will fund the rehabilitation of the site through tax-exempt bonds authorized by the California Debt Limit Allocation Committee (CDLAC) and 4% LowIncome Housing Tax Credits (LIHTC). This allows the Housing Authority to stabilize and renovate these older properties to better accommodate the needs of project residents.
Property has a projected rehabilitation start date in February 2024 and a completion date between February and March 2025; and
WHEREAS, proceeds of the Housing Authority Bonds are expected by the Housing Authority to be used to make a loan to a to-be-formed limited partnership, the initial owner of the Project, of which Golden Empire Affordable Housing, Inc. will be the Managing General Partner, to finance the Project; and
WHEREAS, the Housing Authority Bonds will be qualified “Private Activity Bonds” for purposes of the Internal Revenue Code of 1986, as amended (the “Code”); and WHEREAS, pursuant to Section 147(f) of the Code, the proposed issuance of private activity bonds is required to be approved by the “applicable elected representative” of the governmental unit having jurisdiction over the area in which the facility financed by such
bonds is to be located, after a public hearing is held following reasonable public notice (collectively, the “TEFRA Actions”); and
WHEREAS, the Project is located in the City of Delano (the “City”) and the members of the City Council (this “City Council”) are the applicable elected representatives of the City; and
WHEREAS, there has been published, at least 7 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the proposed issuance of the Housing Authority Bonds would be held on the date hereof; and
WHEREAS, such public hearing was conducted on September 5, 2023 by this City Council, at which time an opportunity was provided to interested parties to be heard with respect to the proposed issuance of the Housing Authority Bonds and financing of the Project; and
WHEREAS, the City shall not have any liability for the repayment of the Housing Authority Bonds or any responsibility for the Project; and
WHEREAS, it is intended that this Resolution shall constitute the public approval of the proposed issuance of the Housing Authority Bonds required by Section 147(f) of the Code.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Delano approves as follows:
Section 1 Incorporation of Recitals. The City Council finds and declares that the foregoing recitals are true and correct and are incorporated herein by reference.
Section 2 Approval of the Issuance of Authority Bonds. The City Council hereby approves the plan of finance for the Project, including the issuance of the Housing Authority Bonds by the Housing Authority. It is the purpose and intent of this City Council that this Resolution constitutes approval of such plan of finance, including the issuance of the Housing Authority Bonds, for the purposes of Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with such Section 147(f).
Section 3 No City Liability for Authority Bonds. The plan of finance for the Project, including the issuance of the Housing Authority Bonds, shall be subject to the approval by the Housing Authority of all financing documents relating thereto to which the Housing Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Housing Authority Bonds.
Section 4 No City Responsibility for Project. The adoption of this Resolution shall not obligate the City or any department thereof to:
i. Provide any financing to construct the Project or any refinancing of the Project, as a result of the TEFRA Actions;
ii. Approve any application or request for or take any other action in connection with any planning approval, permit, or other actions necessary for the acquisition, construction, or operation of the Project;
iii. Make any contribution or advance any funds whatsoever to the Housing Authority; or
iv. Take any further action with respect to the Housing Authority, its issuance of the Housing Authority Bonds, or its acquisition, rehabilitation, or operation of the Project.
PASSED AND ADOPTED by the City Council of the City of Delano at a regular meeting held on the 5th day of September, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Joe Alindajao, Mayor
I, , City Clerk of the City of Delano, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said City Council on this _____ day of ______________, 2023.
Nancy Garcia, City Clerk
Public Hearing No�ce - Delano
Interested parties please take note that on September 5, 2023, a public hearing will be held by the City Council of the City of Delano in the Council Chambers, with respect to a proposed plan of finance including the issuance by the Housing Authority of the County of Kern (the “Authority”) of its multifamily housing revenue bonds in one or more series in the aggregate principal amount not to exceed $7,000,000 (the “Bonds”) pursuant to Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code.
The proceeds from the sale of such Bonds, if issued, will be used to finance the acquisi�on, rehabilita�on, and conversion of the qualified residen�al rental project known as: Maganda Park (the “Project”). Located at 312 Balboa Court, Delano, CA, the Project consists of 20 single family homes ranging from two, three, and four-bedroom units. The Development is currently a LowIncome Public Housing property that will receive Project Based Voucher rental assistance for all units through conversion under the United States Department of Housing and Urban Development’s Rental Assistance Demonstra�on program. This allows the Authority to stabilize and renovate these older proper�es to beter accommodate the needs of our residents.
Proceeds of the Bonds are expected to be used to provide a loan to a limited partnership to be formed (the “Borrower”), by the Authority and Golden Empire Affordable Housing, Inc. II (“GEAHII”), of which the Authority is the Administra�ve General Partner and GEAHII is the Managing General Partner.
The Bonds and the obliga�on to pay the principal of and interest thereon and any redemp�on premium with respect, thereto will not cons�tute an indebtedness or an obliga�on of the City of Delano, the Authority, Kern County, the State of California, or any poli�cal subdivision thereof, within the meaning of any cons�tu�onal or statutory debt limita�on, or a charge against the general credit or taxing powers of any of them, but will be payable solely from certain revenues duly pledged therefor and generally represen�ng amounts paid by the Borrower.
This notice is intended to comply with the public notice requirements of Section 147(f) of the Internal Revenue Code: Any person may appear at the hearing and express his or her views regarding the Project and the plan of finance therefor, including the issuance by the Authority of the Bonds. In addition, written comments may be submitted at any time prior to the hearing and any questions regarding the Development or the plan of finance therefor may be directed to the Executive Director of the Authority at 601 24th Street, Bakersfield, CA 93301.
A. Development Budget PERMANENT SOURCES
TOTAL
PROJECT COST
RESIDENTIAL
COST
Tax Credit
Equity
GP Capital
Contribution
Project Reserves Housing
Authority Loan
Bank Loan A Deferred
Developer Fee
70% PVC for
New
Construction/
30% PVC for
Acquisition
LAND COST/ACQUISITION
Land Cost or Value $190,000 $190,000 XXXXXXXXXXX XXXXXXXXXXX Demolition $0 $0 XXXXXXXXXXX XXXXXXXXXXX
Legal $0 XXXXXXXXXXX XXXXXXXXXXX
Total Land Cost or Value $190,000 $190,000 XXXXXXXXXXX XXXXXXXXXXX Existing Improvements Value $4,400,000 $4,400,000 XXXXXXXXXXX $4,400,000 Off-Site Improvements $0 XXXXXXXXXXX XXXXXXXXXXX
Total Acquisition Cost $4,590,000 $4,590,000 XXXXXXXXXXX $4,400,000
REHABILITATION
Site Work $600,000 $600,000 $600,000 $0
Structures $2,000,000 $2,000,000 $2,000,000 $0
General Requirements $156,000 $156,000 $156,000 $0
Contractor Overhead $104,000 $104,000 $104,000 $0
Contractor Profit $104,000 $104,000 $104,000 $0
Prevailing Wages $0 $0 $0
General Liability Insurance $20,000 $20,000 $20,000 $0
Total Rehab. Cost $2,984,000 $2,984,000 $2,984,000 $0
Total Relocation Expenses $70,000 $70,000 $70,000 $0
NEW CONSTRUCTION
Site Work $0 $0 $0
Structures $0 $0 $0
General Requirements $0 $0 $0
Contractor Overhead $0 $0 $0
Contractor Profit $0 $0 $0
Prevailing Wages $0 $0 $0
General Liability Insurance, Bond $0 $0 $0
Total New Construction Costs $0 $0 $0
ARCHITECTURAL FEES
Design $100,000 $100,000 $100,000 $0
Supervision $25,000 $25,000 $25,000 $0
Total Architectural Costs $125,000 $125,000 $125,000 $0 Total Survey & Engineering $75,000 $75,000 $75,000 $0
CONST. INTEREST & FEES
Const. Loan Interest $364,000 $364,000 $273,000 $0
Origination Fee $52,000 $52,000 $0
Bank Consultant (Construction
Inspection) $18,000 $18,000 $18,000 $0
Bond Trustee & Issuer Fee $13,000 $13,000 $0
Insurance $15,000 $15,000 $15,000 $0
Title and Recording $50,000 $50,000 $50,000 $0
Total Const. Interest & Fees $512,000 $512,000 $356,000 $0
PERMANENT FINANCING
Loan Origination Fee $0 $0 XXXXXXXXXXX XXXXXXXXXXX
Credit Enhance. & App. Fee $0 $0 XXXXXXXXXXX XXXXXXXXXXX Title and Recording $10,000 $10,000 XXXXXXXXXXX XXXXXXXXXXX Other $0 $0 XXXXXXXXXXX XXXXXXXXXXX
Total Perm. Financing Costs $10,000 $10,000 XXXXXXXXXXX XXXXXXXXXXX
LEGAL FEES
Lender Legal Pd. by Applicant $55,000 $55,000 $55,000 $0 Bond Counsel $45,000 $45,000
Other : Transaction Legal $80,000 $80,000 $40,000 $0
Total Attorney Costs $180,000 $180,000 $95,000 $0
RESERVES
Transition Reserve $0 $0 XXXXXXXXXXX XXXXXXXXXXX
Replacement Reserve $100,000 $100,000 XXXXXXXXXXX XXXXXXXXXXX * 3-Month Operating Reserve $67,000 $67,000 XXXXXXXXXXX XXXXXXXXXXX Total Reserve Costs $167,000 $167,000 XXXXXXXXXXX XXXXXXXXXXX Total Appraisal Costs (Bank's and
TCAC) $12,000 $12,000 $6,000 $0
Note: Syndication Costs may not be included as a project cost. * Operating Reserve is required - Regulation Section 10327(c)(8)(C).
TOTAL
PROJECT COST
RESIDENTIAL
COST
Tax Credit
Equity
Project Reserves Seller
Carryback Loan
Tax Exempt
Loan
Deferred
Developer Fee
70% PVC for
New
Construction/
30% PVC for
Acquisition
Soft Cost Contingency $100,000 $100,000 $100,000 $0
Construction Contingency Costs $298,400 $298,400 $298,400 $0 OTHER
TCAC App/Alloc/Monitor Fees $14,561 $14,561 XXXXXXXXXXX XXXXXXXXXXX Environmental Audit $15,250 $15,250 $15,250 $0
Local Dev. Impact, Permit Processing
and Utility Hook-up Fees $5,000 $5,000 $5,000 $0
Permit Processing Fees $29,840 $29,840 $29,840 $0
Sewer Scope $20,000 $20,000 $20,000
Marketing $30,000 $30,000 XXXXXXXXXXX XXXXXXXXXXX
Furnishings $20,000 $20,000 $20,000 $0
Market Study $13,000 $13,000 $6,500 $0
Other - Audit $10,000 $10,000 $0 $0
Other: Upfront ground lease payment $0 $0 $0
Other: PNA $10,000 $10,000 $5,000
Total Other Costs $167,651 $167,651 $101,590 $0
Subtotals $9,291,051 $9,291,051 $4,140,990 $0
Total Project Total
DEVELOPER COSTS Cost Residential
Developer Overhead/Profit $841,149 $841,149 $621,149 $220,000 Consultant/Processing Agent $0 $0
Project Administration $0 $0 $0 $0
Syndicator Consulting Fees $0 $0 $0 $0
Personal Guarantee Fees $0 $0 $0 $0
Construction Management Oversight
by Developer $0 $0 $0 $0
Other (specify) $0 $0 $0 $0
Total Developer Costs $841,149 $841,149 $621,149 $220,000 TOTAL PROJECT COST $10,132,199 $10,132,199 $3,662,998 $200,000 $4,590,000 $1,600,000 $79,201 $4,832,139 $4,620,000 Note: Syndication Costs may not be
included as a project cost. Bridge Loan Expense During Construction $0 $0 *Calculate Maximum Developer Fee
pursuant to Regulation 10327(c)(2) using
these eligible basis subtotals. Total Eligible Basis $4,832,139 $4,620,000 Voluntary Basis Reduction
50% test Eligible Basis: $9,452,139 Qualified Basis $6,281,780 $4,620,000 Eligible costs: $5,200,000 1% Credit Reduction
Test %: 55.0% Adjusted Basis $6,281,780 $4,620,000
Ann. Federal Tax Credit = $251,271 $184,800
Tax Credit Equity (Fed.) = $2,110,678 $1,552,320
Total Equity = $3,662,998
Construction Financing
Construction Loan $5,200,000
HA Loan $4,590,000
Deferred Costs $159,049
Tax Credit Equity $183,150
TOTAL $10,132,199
OPERATING STATEMENT
# of Bedrooms
% of County
Med. Income Total Units
Gross
Rent
Utility
Allowance Net Rent
Total Proj.
Rent/month
Contract
Rent
2 30% 1 Rental Asst. $526 $224 $302 $302 Sec. 18 1,027 $725 2 45% 1 Rental Asst. $789 $224 $565 $565 Sec. 18 1,027 $4622 50% 1 Rental Asst. $877 $224 $653 $653 Sec. 18 1,027 $3743 30% 1 Rental Asst. $607 $241 $366 $366 Sec. 18 $1,537 $1,1713 45% 3 Rental Asst. $911 $241 $670 $2,010 Sec. 18 $1,537 $2,6003 50% 1 Rental Asst. $1,013 $241 $772 $772 Sec. 18 $1,537 $7653 50% 3 Rental Asst. $1,013 $241 $772 $2,316 RAD 1100 $9843 60% 3 Rental Asst. $1,013 $241 $772 $2,316 RAD 1100 $9844 45% 1 Rental Asst. $1,017 $255 $762 $762 RAD 1300 $5384 50% 3 Rental Asst. $1,130 $255 $875 $2,625 RAD 1300 $1,275 4 60% 2 Rental Asst. $1,130 $255 $875 $1,750 RAD 1300 $850 MGR
20 units $14,437 $10,726
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 REVENUES Residential Income (See Table above) $173,244 $177,575 $182,014 $186,565 $191,229 $196,010 $200,910 $205,933 $211,081 $216,358 $221,767 $227,311 $232,994 $238,819 $244,789 $250,909 $257,182 Rental Assistance $128,713 $131,931 $135,229 $138,610 $142,075 $145,627 $149,268 $153,000 $156,825 $160,745 $164,764 $168,883 $173,105 $177,433 $181,868 $186,415 $191,075 Misc. Inc (laundry, phone, etc) $2,000 $2,050 $2,101 $2,154 $2,208 $2,263 $2,319 $2,377 $2,437 $2,498 $2,560 $2,624 $2,690 $2,757 $2,826 $2,897 $2,969 Total Gross Potential Income $303,957 $311,556 $319,345 $327,329 $335,512 $343,900 $352,497 $361,310 $370,342 $379,601 $389,091 $398,818 $408,789 $419,008 $429,484 $440,221 $451,226 Plus: Vacancy (Residential-5%) ($15,198) ($15,578) ($15,967) ($16,366) ($16,776) ($17,195) ($17,625) ($18,065) ($18,517) ($18,980) ($19,455) ($19,941) ($20,439) ($20,950) ($21,474) ($22,011) ($22,561) TOTAL EFFECTIVE INCOME $288,759 $295,978 $303,378 $310,962 $318,736 $326,705 $334,872 $343,244 $351,825 $360,621 $369,636 $378,877 $388,349 $398,058 $408,009 $418,210 $428,665
DEBT SERVICE
Tax Exempt Loan 30 Years at 7% $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 Total Debt Service $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 $127,738 ANNUAL OPERATING COSTS 1. Management fee ($60/unit) $14,400 $14,904 $15,426 $15,966 $16,524 $17,103 $17,701 $18,321 $18,962 $19,626 $20,313 $21,024 $21,759 $22,521 $23,309 $24,125 $24,969 2. Administration a. Renting Expense - Advertising (+3.5%/yr.) $1,000 $1,035 $1,071 $1,109 $1,148 $1,188 $1,229 $1,272 $1,317 $1,363 $1,411 $1,460 $1,511 $1,564 $1,619 $1,675 $1,734 b. Audit (includes TCAC/IRS Compliance)(+3 $7,500 $7,763 $8,034 $8,315 $8,606 $8,908 $9,219 $9,542 $9,876 $10,222 $10,579 $10,950 $11,333 $11,730 $12,140 $12,565 $13,005 c. Legal (+3.5%/yr.) $1,000 $1,035 $1,071 $1,109 $1,148 $1,188 $1,229 $1,272 $1,317 $1,363 $1,411 $1,460 $1,511 $1,564 $1,619 $1,675 $1,734 d. Support Services (+3.5%/yr.) $15,000 $15,525 $16,068 $16,631 $17,213 $17,815 $18,439 $19,084 $19,752 $20,443 $21,159 $21,900 $22,666 $23,459 $24,280 $25,130 $26,010 Total Administration $24,500 $25,358 $26,245 $27,164 $28,114 $29,098 $30,117 $31,171 $32,262 $33,391 $34,560 $35,769 $37,021 $38,317 $39,658 $41,046 $42,483 3. Salaries and Benefits Total Salaries & Benefits $141,624 $146,581 $151,711 $157,021 $162,517 $168,205 $174,092 $180,185 $186,492 $193,019 $199,775 $206,767 $214,004 $221,494 $229,246 $237,270 $245,574
4. Operating and Maintenance a. Supplies (+3.5%/yr.) $28,000 $28,980 $29,994 $31,044 $32,131 $33,255 $34,419 $35,624 $36,871 $38,161 $39,497 $40,879 $42,310 $43,791 $45,323 $46,910 $48,552 b. Pest Control (+3..5%/yr.) $7,500 $7,763 $8,034 $8,315 $8,606 $8,908 $9,219 $9,542 $9,876 $10,222 $10,579 $10,950 $11,333 $11,730 $12,140 $12,565 $13,005 c. Grounds Contract (+3.5%/yr.) $12,000 $12,420 $12,855 $13,305 $13,770 $14,252 $14,751 $15,267 $15,802 $16,355 $16,927 $17,520 $18,133 $18,767 $19,424 $20,104 $20,808 d. Painting (Interior Only)(+3.5%/yr.) $2,000 $2,070 $2,142 $2,217 $2,295 $2,375 $2,459 $2,545 $2,634 $2,726 $2,821 $2,920 $3,022 $3,128 $3,237 $3,351 $3,468 e. Repairs (+3.5%/yr.) $10,000 $10,350 $10,712 $11,087 $11,475 $11,877 $12,293 $12,723 $13,168 $13,629 $14,106 $14,600 $15,111 $15,640 $16,187 $16,753 $17,340 f. Misc. (+3.5%/yr.) $11,250 $11,644 $12,051 $12,473 $12,910 $13,361 $13,829 $14,313 $14,814 $15,333 $15,869 $16,425 $17,000 $17,595 $18,210 $18,848 $19,507 Total Maintenance $70,750 $73,226 $75,789 $78,442 $81,187 $84,029 $86,970 $90,014 $93,164 $96,425 $99,800 $103,293 $106,908 $110,650 $114,523 $118,531 $122,680 5. Utilities a. Trash Removal (+3.5%/yr.) $21,000 $21,735 $22,496 $23,283 $24,098 $24,941 $25,814 $26,718 $27,653 $28,621 $29,623 $30,659 $31,732 $32,843 $33,993 $35,182 $36,414 b. Electricity-Common Areas (+3.5%/yr.) $4,000 $4,140 $4,285 $4,435 $4,590 $4,751 $4,917 $5,089 $5,267 $5,452 $5,642 $5,840 $6,044 $6,256 $6,475 $6,701 $6,936 c. Water/Sewer (+3.5%/yr.)-Landscape $28,500 $29,498 $30,530 $31,598 $32,704 $33,849 $35,034 $36,260 $37,529 $38,843 $40,202 $41,609 $43,065 $44,573 $46,133 $47,747 $49,419 d. Gas (+3.5%/yr.) $600 $621 $643 $665 $689 $713 $738 $763 $790 $818 $846 $876 $907 $938 $971 $1,005 $1,040 e. Telephone (+3.5%/yr.) $1,850 $1,915 $1,982 $2,051 $2,123 $2,197 $2,274 $2,354 $2,436 $2,521 $2,610 $2,701 $2,795 $2,893 $2,995 $3,099 $3,208 Total Utilities $55,950 $57,908 $59,935 $62,033 $64,204 $66,451 $68,777 $71,184 $73,675 $76,254 $78,923 $81,685 $84,544 $87,503 $90,566 $93,736 $97,017 6. Insurance a. Property and Liab. Insurance (+3.5%/yr.) $14,000 $14,490 $14,997 $15,522 $16,065 $16,628 $17,210 $17,812 $18,435 $19,081 $19,748 $20,440 $21,155 $21,895 $22,662 $23,455 $24,276 b. Other (Workers' Comp.) (+3.5%/yr.) $6,000 $6,210 $6,427 $6,652 $6,885 $7,126 $7,376 $7,634 $7,901 $8,177 $8,464 $8,760 $9,066 $9,384 $9,712 $10,052 $10,404 Total Insurance $20,000 $20,700 $21,425 $22,174 $22,950 $23,754 $24,585 $25,446 $26,336 $27,258 $28,212 $29,199 $30,221 $31,279 $32,374 $33,507 $34,680 7. Taxes a. Real Estate Taxes (tax exempt 501[c][3])(2 $4,500 $4,590 $4,682 $4,775 $4,871 $4,968 $5,068 $5,169 $5,272 $5,378 $5,485 $5,595 $5,707 $5,821 $5,938 $6,056 $6,178 b. Other (Business Tax) (+2.0%/yr.) $800 $816 $832 $849 $866 $883 $901 $919 $937 $956 $975 $995 $1,015 $1,035 $1,056 $1,077 $1,098 Total Taxes $5,300 $5,486 $5,677 $5,876 $6,082 $6,295 $6,515 $6,743 $6,979 $7,223 $7,476 $7,738 $8,009 $8,289 $8,579 $8,879 $9,190 TOTAL ANNUAL OPERATING COSTS $125,142 $129,521 $134,055 $138,747 $143,603 $148,629 $153,831 $159,215 $164,787 $170,555 $176,524 $182,703 $189,097 $195,716 $202,566 $209,656 $216,994 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 RESERVE DEPOSITS Ann. Oper. Reserve Deposits• $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Ann. Replace. Res. Deposits•• $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Total Reserve Deposits $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 •Capitalized ••$500 per unit per yearCASH FLOWTotal Effective Income $288,759 $295,978 $303,378 $310,962 $318,736 $326,705 $334,872 $343,244 $351,825 $360,621 $369,636 $378,877 $388,349 $398,058 $408,009 $418,210 $428,665Less: Total Operating ($125,142) ($129,521) ($134,055) ($138,747) ($143,603) ($148,629) ($153,831) ($159,215) ($164,787) ($170,555) ($176,524) ($182,703) ($189,097) ($195,716) ($202,566) ($209,656) ($216,994)Net Operating Income $163,618 $166,457 $169,323 $172,216 $175,134 $178,076 $181,041 $184,029 $187,038 $190,066 $193,112 $196,174 $199,252 $202,342 $205,444 $208,554 $211,671Less: Total Debt Service ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738) ($127,738)Less: Reserve Deposits ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000) ($10,000)Cash Balance Available before Partnership Fee $25,880 $28,719 $31,585 $34,478 $37,395 $40,338 $43,303 $46,291 $49,300 $52,328 $55,374 $58,436 $61,514 $64,604 $67,705 $70,816 $73,933Deferred Developer Fee ($79201) $10,130 $12,496 $14,876 $17,267 $19,669 $4,763 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Asset Management Fee (Ltd. Partner - $4,000) $5,250 $5,408 $5,570 $5,737 $5,909 $6,086 $6,269 $6,457 $6,651 $6,850 $7,056 $7,267 $7,485 $7,710 $7,941 $8,179 $8,425Asset Management fee (General Partner - $7500) $10,500 $10,815 $11,139 $11,474 $11,818 $12,172 $12,538 $12,914 $13,301 $13,700 $14,111 $14,534 $14,970 $15,420 $15,882 $16,359 $16,849Net Cash Balance Available ($0) $0 ($0) $0 ($0) $17,316 $24,497 $26,921 $29,348 $31,778 $34,207 $36,635 $39,058 $41,475 $43,882 $46,278 $48,659 Operating Cost Per Unit $6,257.08DSCR 1.208% Income 23,100.75 23,678.27 24,270.22 Maganda Park RAD Projected Sources and Uses Statement
Sources
Low Income Housing Tax Credit Equity (LIHTC) 4%: $ 3,662,998 Project Reserves: $ 200,000
Tax Exempt Loan: $ 1,600,000
HA Loan: $ 4,590,000
Deferred Developer Fee: $ 79,201
TOTAL: $ 10,132,199
Uses
Land / Acquisition: $ 4,590,000
Construction Rehabilitation: $ 2,984,000
Relocation Expenses: $ 70,000
Architectural / Engineering: $ 200,000
Construction Interest / Fees $ 512,000
Financing / Title: $ 22,000
Legal: $ 180,000
Reserves: $ 167,000
Contingency: $ 398,400
Impact / Building Permit Fees: $ 34,840
Developer Overhead / Fees: $ 841,149
Other: $ 132,810
TOTAL: $ 10,132,199
Status of Funding Commitments
The low-income housing tax credit equity contribution is based on the pricing of tax credits on current projects and is non-competitive. HA Developer/Seller and Project Reserves are residual receipts-based loans at 4.3% with a 55-year term.
Justification of Proposed Project Cost
The Housing Authority is an active developer of affordable housing in Kern County. Project costs are based on actual costs experienced by the Agency on recent new construction of affordable housing developments, with a factor increase for expected increases in construction costs.
Timeline
Activity Start/Completion Date
Construction Start February 2024
Construction Completion February 2025
Permanent Financing August 2025
To Be Formed LP
Organizational Chart
Maganda Park RAD
To Be Formed
Limited Partnership
Managing General Partner
GEAHI Maganda Park LLC
(Golden Empire Affordable Housing,
Inc. is the sole member and
manager)
.005%
Administrative General Partner
Kern Maganda Park LLC
(The Housing Authority of the
County of Kern is the sole
member and manager)
.005%
Executive Director
Stephen Pelz
Limited Partner
To Be Determined
99.99%
Executive Director
Stephen Pelz
Assistant Executive Director
Heather Kimmel
Deputy Director
Diana Elliott
Housing Administrator
Isabel Moreno
CITY OF DELANO
STAFF REPORT
September 5, 2023
Agenda Item:10
TO: Honorable Mayor and Members of the City Council
FROM: Maribel Reyna, City Manager
SUBJECT: Discussion and direction on a policy pertaining to the parameters for allocating City funds or in-kind City services for City related sponsorships or grants and non-City related sponsorships and grants.
Recommendation
Staff recommends the City Council to discuss and provide direction regarding the adoption of policy pertaining to the parameters for allocating City funds or in-kind City services for City related sponsorships and grants and non-City related sponsorships and grants.
Discussion
The City receives a number of City related and non-City related sponsorship or grant requests. A uniform policy will assist in providing a fair distribution of City funds and allocation of in kind services. A policy may be introduced in the form of an ordinance or resolution. It is also recommended that any policy be content neutral and focus on whether an event or project serves the interest and welfare of the City.
Budget Impact:
None
Attachments:
None