City of Fairfield PBV RFP
1 Table of Contents
Transmittal Letter 02-03
RFP Response 04-07
Exhibit A – Proforma 08-13
Exhibit B – List of Projects Developed 14-17
Exhibit C – List of Projects Managed 18-19
Certification of the Owners Intention 20-21
2 5251 Ericson Way
Arcata, CA 95521
Phone: (707) 822 9000
Fax: (707) 822 9596
www.danco-group.com
Contractor’s Licenses
CA# 500851 & 899392
Danco Builders
Danco Builders Northwest
Danco Communities
Danco Hospitality
Danco Property Management
Danco Supportive Services
Western Living Concepts
February 7, 2025
To whom it may concern,
The Danco Group of Companies’ mission is to provide safe and affordable housing while improving our communities and satisfying our customers. Danco Communities, the developer entity of the Danco Group of Companies, is excited to submit this proposal in hopes of being chosen by The City of Fairfield for funding 50 project-based vouchers to our Vista Ridge project.
The Danco Group is a diversified group of companies in the real estate and construction industries and offers a one‐stop shop for development, construction, and property management.
We have over 35 years of successful business in these industries and offer a breath of knowledge and skill in developing affordable housing. We can be an effective partner with The City of Fairfield in accomplishing its goals of increasing the supply of affordable housing. We look forward to working with the city and drawing on our companies’ strengths as an industry leader in multiple domains to be able to produce more housing faster and less expensively by collaboratively developing innovative means to speed up construction and cut costs.
The fact that the Danco Group offers development, construction and property management and resident services is a strength to us and our development partners. Each of our core teams works closely together throughout the life of a project, creating an environment of collaboration. The project team consists of Chris Dart, Leader of Danco Communities, Cameron Dart, Project Manager, McKenzie Dibble, Senior Project Manager & Hailey Wilson, Grant Manager.
Danco Communities would be honored by the opportunity to work with the city to develop the Vista Ridge project located at 3331 N Texas Street. We are passionate about bringing affordable housing to populations in need all over the western United States.
Vista Ridge is a 50-unit rehabilitation of Motel 6 on Texas Street in Fairfield, CA. The project will serve individuals which are experiencing a Behavioral Health Challenge and experiencing or at risk of homelessness. This project will be funded through the Homekey+ program. The project is expected to be completed within 14 months of a Homekey+ award. Lease up date is tentatively 5/1/2026.
Please see attached operating proforma in Exhibit A.
3 5251 Ericson Way
Arcata, CA 95521
Phone: (707) 822 9000
Fax: (707) 822 9596
www.danco-group.com
Contractor’s Licenses
CA# 500851 & 899392
Danco Builders
Danco Builders Northwest
Danco Communities
Danco Hospitality
Danco Property Management
Danco Supportive Services
Western Living Concepts
Please reach out directly with any questions regarding this proposal to Hailey Wilson, Grants Manager by phone (707) 825‐1580 or e‐mail, hwilson@danco‐group.com .
Sincerely,
Hailey Wilson
Grants Manager
Danco Communities
4 Project Information
The Motel 6 on Texas street currently holds 100 units as a short stay motel. Danco is planning on converting this motel into 50 units of permanent supportive housing that will be funded by a mix of City funds and Homekey+ funds which will house individuals which are experiencing a Behavioral Health Challenge and experiencing or at risk of homelessness. These units will serve Solano County behavioral health clients that are homeless or at risk of homelessness.
The project, Vista Ridge, is located at 3331 Texas Street, Fairfield, CA. The census tract is 2526.07. There is only one building on-site and the units are currently around 250 square feet.
We are going to be combining 2 units to make a total of 50 units that will be around 500 square feet. All 50 units will be studios, and we will follow the accessibility requirements of the Homekey+ program which is 15% mobility and 10% visual and hearing. These units will be available 14 months from the Homekey+ award. We are currently working on the application, and awards are being made on a first come first serve basis. The estimated date of availability for the units is 5/1/2026.
Deconcentrating Poverty & Expanding Housing and Economic Opportunities The project is surrounded by a neighborhood that offers access to public infrastructure, including transportation, healthcare facilities, educational institutions, and community services in Fairfield.
This accessibility ensures that residents are not geographically or socially marginalized, allowing them to engage within the community. Bringing 50 units of permanent supportive housing to the market is going to directly address the critical shortage of affordable housing options for individuals with behavioral health challenges and those experiencing homelessness. The project will have on-site services which includes a resident services coordinator who will work with residents to get them access to trainings such as employment training and employment placement assistance, kill development, resume support and other trainings.
Amenities
The project is located near quite a lot of amenities including a bus stop within .25 miles, a pharmacy, a park, a grocery store, and much more. There is also a lot of employment opportunities in the area such as Starbucks, Shell, Raleys, Subway, Texas Roadhouse and much more.
Proforma
Attached as Exhibit A please find a proforma which includes the operating proforma and operating budget. You will also find the proposed rent and you will find a zero-dollar utility allowance. The property will pay for all tenant utilities including water, sewer, garbage, trash and electricity/heating. The proforma will also show that we are projecting a 20-year contract with the City of Fairfield for the PBV’s. Tenant rents are being charged based on 1/3 of SSI. This is the allowable rent for a person on SSI to pay for housing. It is also less than the amount allowed to be changed by the Heath & Safety Code Rents.
5 Site Control & Ownership Entity
Danco has site control under a purchase and sales agreement for $12,000,001. The project will be purchased by a limited partnership, Fairfield Texas Street LP. This LP is made up of an administrative partner which is an affiliated company of Danco and a managing general partner which is a non-profit organization, Community Revitalization and Development Corporation.
The non-profit partner allows the project to get a property tax exemption which alleviates the operating budget.
Experience/Project Team
Developer
Danco Communities, the developer, is an established leading developer in the field of affordable housing, with a proven track record of delivering high-quality, sustainable, and community- centered projects across diverse regions. With over 20 years of experience, Danco Communities has consistently demonstrated a deep commitment to addressing the housing needs of vulnerable populations, including low-income families, individuals experiencing homelessness, seniors, and those with behavioral health challenges. Danco Communities specializes in the development, construction, and management of affordable housing projects that cater to a broad spectrum of community needs. Our portfolio includes a wide range of housing solutions, from multi-family residential complexes to permanent supportive housing, reflecting their adaptability and comprehensive understanding of affordable housing dynamics.
Our company’s development strategy emphasizes sustainability, innovative design, and community integration. Danco Communities leverages environmentally friendly building practices, energy-efficient technologies, and trauma-informed design principles to create housing environments that promote the well-being of residents while minimizing environmental impact.
Beyond construction, Danco Communities prioritize creating supportive living environments through strategic partnerships with local service providers. These collaborations ensure that residents have access to essential services, including mental health support, case management, vocational training, and educational programs. This holistic approach helps residents achieve housing stability and enhances their quality of life.
Danco Communities also engages with local stakeholders, government agencies, and community organizations throughout the development process. This inclusive approach fosters community buy-in, ensures that projects align with local needs, and supports the long-term success and sustainability of their developments.
Danco Communities has developed around 2,100 units to date which includes over 40 developments. Danco Communities is unique to a lot of other development companies as we are able to oversee the project for the life of the project. This starts with the vision of development and continues into operations. We have found that this model is not only beneficial to ensure the vision has come to life the intended way but also to see what is working and what isn’t working for our future developments. An example of this is we found on one of our supportive housing 6 projects that the service provider’s office was not in a convenient location and now we ensure that all the offices for the service providers are near the common areas and have two doors so there are always 2 places to exit the office.
Attached as Exhibit B there is a list of our inventory of projects developed.
Property Manager
Danco Property Management, the intended property manager, has been managing affordable housing projects for over 15 years. They have a specialty in permanent supportive housing and work closely with service providers to ensure the residents have access to every service they need.
Danco Property Management specializes in overseeing a wide range of residential properties, including affordable housing developments, permanent supportive housing, mixed-income communities, and senior living facilities. Their expertise encompasses all facets of property management, including leasing, maintenance, compliance with affordable housing regulations, financial oversight, and resident engagement.
The company’s management approach is rooted in best practices that prioritize operational efficiency, fiscal responsibility, and the long-term sustainability of each property. Danco Property Management ensures that properties are well-maintained, financially stable, and compliant with all local, state, and federal housing requirements
Their current portfolio is managing around 1,500 units with another 200 expected to come online in the next 2 years.
Attached as Exhibit C there is a list of our inventory of projects managed.
Supportive Services
THRIVE, an affiliated company with Danco, is the intended service provider. The future tenants of Vista Ridge will have 2 full-time case managers and a resident service coordinator that will be providing services.
The on-site Case Managers will work with residents to create an individualized services plan (ISP) or specific goals around resident sustaining services. ISP’s will include their goals for housing retention and overall well-being and will identify concrete steps toward those goals. The case manager will meet weekly or as needed to track progress toward their goals troubleshoot barriers. Key action areas include:
Behavioral Health. The case manager will help residents identify behavioral health care resources for substance abuse and mental health, and will offer some services (e.g., support groups) on-site. If a resident seeks deeper clinical support and is already connected with a health care provider, the case manager will help them to arrange appointments and/or transportation. If a new provider needs to be put in place, the case manager will assist in identifying options.
7 Physical Health. The case manager will help residents identify physical health care needs. If a resident is already connected with a health care provider, the case manager will help them to identify public transit or other commuting options and support them in tracking appointments and medical follow-up to the extent that the resident is comfortable sharing that information. If the resident does not have a provider, staff will support the resident in seeking out new providers.
Connecting with Benefits. The case manager will assess all residents for benefit eligibility and will help them apply as needed. These will include both cash and non-cash benefits. The case manager will also assist residents with acquiring any documentation they did not have upon entry, including disability documentation, proof of income, etc.
As the Resident Services provider, the Resident Services Coordinator will assist the residents with connecting individuals and families with basic needs, including food, transportation, as well as health, wellness, and community engagement opportunities within the community and surrounding area. Service Coordinators will be assisting tenants to access services through referral and advocacy and will be organizing community-building and/or other enrichment activities for tenants (such as holiday events, tenant council, etc.). Resident Services Coordinator provides individualized assistance, counseling and/or advocacy to tenants, such as to assist them to access education, secure employment, secure benefits, gain skills or improve health and wellness. Includes, but is not limited to: V ocational/Employment Counselor, ADL or Supported Living Specialist, Substance Abuse or Mental Health Counselor, Peer Counselor, Domestic Violence Counselor
Owner & Management Information
Owner Information:
• Name: Fairfield Texas Street LP
• Contact Person: Cameron Dart, Project Manager
• Contact Information: [email protected], 707-601-9963 • Experience: Danco Communities is a part of the ownership structure. Please see experience above.
Management Agent:
• Name of Agent: Danco Property Management
• Contact Person: JR Bognuda
• Contact Information: [email protected], 707-825-1912
Exhibit A
08 Project Summary
Fairfield HomeKey - Surestay BW
Fairfield
California
Special Needs Cash Fee
50 Units at completion 1,999,999$
100 Units at Time of Acq
Permanent Sources and Uses
Sources
1 Perm Debt 1 2,838,834$
2 HCD Funding 2 -$
3 HOMEKEY Baseline 20,000,000$
4 5
6 Solar Tax Credit Equity
7 Local Contribution - LHTF 1,000,000$
8 HomeKey Match 1,000,000$
9 PIP Funding City 535,541$
10 HomeKey Match 2 535,541$
14 Developer Note 1$
15 Cash Need -$
Total Sources 25,909,917$
Uses
Land Cost / Acquisition 12,000,001$
Rehabilitation -$
Rehabilitation 10,016,892$
Architectural Fees 500,000$
Construction Interest & Fees 40,000$
Permanent Financing -$
Legal Fees 115,000$
Reserves -$
Soft Contingency Costs 97,774$
Other Proejct Costs 1,140,250$
Developer Costs. 2,000,000$
Total Uses 25,909,917$
Financing Terms
Debt
NOI 303,730$
Construction Loan
Construction Interest Rate 7.35%
DCR Correct
0 Interest Rate
Amoritization 20
Total Debt Service -$
Total Coverage #DIV/0!
HCD Funding 2
Interest Rate 0.42%
Amoritization 30
Total Debt Service -$
Total Coverage #DIV/0!
Perm Loan 1
Interest Rate 7.00%
Amoritization 20
Total Debt Service 264,113$
Total Coverage 1.15
Total Combined Coverage 1.15
Calculate DCR
IV. SOURCES AND USES BUDGET - SECTION 1: SOURCES AND USES BUDGET 46,681 TOTAL
PROJECT
COSTS
COST (Original
Budget) HOMEKEY Baseline
Perm Debt 1 Local
Contribution -
LHTF
HomeKey
Match
PIP Funding City HomeKey Match
2 SUBTOTAL
70% PVC for
New
Const/Rehab
30% PVC for
Acquisition
LAND COST/ACQUISITION C E F J K
Land Cost or Value $12,000,001 12,000,001 $12,000,001 12,000,001 Demolition $0 $0 -
Legal $0 $0 -
Land Lease Rent Prepayment $0 $0 -
Total Land Cost or Value $12,000,001 12,000,001 12,000,001 - - - - - 12,000,001 Existing Improvements Value $0 $0 -
Off-Site Improvements $0 $0 -
Total Acquisition Cost $0 - - - - - - - - - Total Land Cost / Acquisition Cost $12,000,001 12,000,001 12,000,001 - - - - - 12,000,001 Predevelopment Interest/Holding Cost $0 $0 - - Assumed, Accrued Interest on Existing Debt
$0 $0 - -
Excess Purchase Price Over Appraisal $0 $0
Other: (Specify) $0 $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 $0 $0 - $0 Third-party Construction Management $0 $0
Total Rehabilitation Costs $0 - - - - - - - - - - Total Relocation Expenses $0 $0 - $0
REHABILITATION
$0 $0 $0 -
Structures & Site Work $7,722,776 7,722,776 $1,812,860 $2,838,834 $1,000,000 $1,000,000 $535,541 $535,541 7,722,776 General Requirements $463,367 463,367 $463,367 $0 463,367 Contractor Overhead $163,723 163,723 $163,723 $0 163,723 Contractor Profit $491,169 491,169 $491,169 $0 491,169 Prevailing Wages $0 - $0 $0 -
General Liability Insurance $265,231 265,231 $265,231 $0 265,231 Third-party Construction Management - $0 Special Inspections $0 - $0 - $0 Total Rehabilitation Costs $9,106,265 9,106,265 3,196,349 2,838,834 1,000,000 1,000,000 535,541 535,541 9,106,265 - -
ARCHITECTURAL FEES
Design $250,000 2% 250,000 $250,000 250,000 Supervision $0 2% $0 - $0
Total Architectural Costs $250,000 250,000 $250,000 - - - - - 250,000 - - Total Survey & Engineering $250,000 250,000 $250,000 250,000
CONSTRUCTION INTEREST & FEES
Construction Loan Interest $0 - $0 - Origination Fee $0 $0 -
Credit Enhancement/Application Fee $0 $0 -
Bond Premium $0 $0 -
Title & Recording $40,000 40,000 $40,000 40,000 Property Taxes $0 - $0 -
Insurance $0 $0 -
Inspection Fees $0 - $0 -
Post-Completion Construction Loan Interest $0 $0 -
Total Construction Interest & Fees $40,000 40,000 40,000 - - - - - 40,000 - -
PERMANENT FINANCING
Loan Origination Fee $0 - $0 -
Credit Enhancement/Application Fee $0 $0 -
Title & Recording $0 $0 -
Taxes $0 $0 -
Insurance $0 $0 -
IV. SOURCES AND USES BUDGET - SECTION 1: SOURCES AND USES BUDGET 46,681 TOTAL
PROJECT
COSTS
COST (Original
Budget) HOMEKEY Baseline
Perm Debt 1 Local
Contribution -
LHTF
HomeKey
Match
PIP Funding City HomeKey Match
2 SUBTOTAL
70% PVC for
New
Const/Rehab
30% PVC for
Acquisition
Legal $0 $0 -
Cost of Issuance $0 $0 -
Total Permanent Financing Costs $0 - - - - - - - - Subtotals Forward $21,646,266 21,646,266 15,736,350 2,838,834 1,000,000 1,000,000 535,541 535,541 21,646,266 - -
LEGAL FEES
Lender Legal Paid by Applicant $65,000 65,000 $65,000 65,000 Financial Consulting,
$0 $0 -
Entitlement Services, Building Permit Expediting $0 $0 - Tenant File Review Services $0 $0 -
Borrowers Attorney $50,000 50,000 $50,000 50,000 Total Attorney Costs $115,000 115,000 115,000 - - - - - 115,000 - -
RESERVES
Rent Reserves $0 $0 -
Capitalized Rent Reserves $0 $0 -
Required Capitalized Replacement Reserve $0 $0 -
3-Month Operating Reserve $0 $0 -
COSR $0 - $0 -
Total Reserve Costs $0 - - - - - - - -
CONTINGENCY COSTS
Construction Hard Cost Contingency $910,627 910,627 $910,627 910,627 Soft Cost Contingency $97,774 97,774 $97,774 97,774 Total Contingency Costs $1,008,401 10% 1,008,401 $1,008,401 - - - 1,008,401 $1,008,401
OTHER PROJECT COSTS
TCAC App/Allocation/Monitoring Fees $0 $0 -
Environmental Audit $7,000 7,000 $7,000 7,000 Local Development Impact Fees $500,000 $20,000 500,000 $500,000 500,000 Permit Processing Fees $350,000 350,000 $350,000 350,000 Capital Fees $40,000 40,000 $40,000 40,000 Marketing $30,750 30,750 $30,750 30,750
Furnishings $150,000 150,000 $150,000 150,000 Market Study $10,000 10,000 $10,000 10,000 Accounting/Reimbursable $45,000 45,000 $45,000 45,000 Appraisal Costs $7,500 7,500 $7,500 7,500 Other: (Misc Studies) $0 - $0 -
Other: (Specify) $0 $0 -
Other: (Specify) $0 $0 $0 -
Other: (Specify) $0 $0 $0 - $0 Other: (Specify) $0 $0 - $0 Total Other Costs $1,140,250 1,140,250 1,140,250 - - - - - 1,140,250 - - SUBTOTAL PROJECT COST $23,909,917 23,909,917 18,000,001 2,838,834 1,000,000 1,000,000 535,541 535,541 23,909,917 1,008,401 -
DEVELOPER COSTS
Developer Costs $2,000,000 2,000,000 $1,999,999 2,000,000 Consultant/Processing Agent $0 - $0 - $0 Broker Fees Paid to a Related Party $0 $0 - $0 Construction Oversight by Developer $0 $0 - $0 Other: (Specify) $0 $0 - $0 Total Developer Costs $2,000,000 2,000,000 1,999,999 - - - - - 2,000,000 - - TOTAL PROJECT COST $25,909,917 25,909,917 20,000,000 2,838,834 1,000,000 1,000,000 535,541 535,541 25,909,917 1,008,401 - $1,008,401 $0
DOUBLE CHECK AGAINST PERMANENT FINANCING TOTALS: $20,000,000 $2,838,834 $1,000,000 $1,000,000 $535,541 $535,541 Over/Under - - - - - - 1st Year Proforma
Rents 4% or 9%? 4% Target avg rent 60% Federal
Unit Type AMI Rent # of Units Rent Each Unit Gross Rent UA Each Net Rent Annual Net
Rent
RA
Contract
Rent Each
RA Contract
Rent Tot
Total Annual
Rent
Differential
Studio 50 15,250$ $15,250 183,000 1,622$ 81,100$ 790,200$ PBV 30% 50 305 $15,250 0 $15,250 183,000 1,622$ 81,100$ 790,200$ RA is at City of Fairfield Payment Standards not HUD FMRs One Bedroom 0 -$ $0 0 16,000$ -$ -$ Two Bedroom 0 -$ $0 0 17,000$ -$ -$ 3 Bedroom 0 -$ $0 0 18,000$ -$ -$ 4 Bedroom 0 $0.00 $0 0 19,000$ -$ -$ 5 Bedroom 0 $0.00 -$
Community Room 1 -$ -$
Totals 50 183,000 81,100 790,200
$65,850.00
15,804,000$
NOI Total Unit
INCOME
POTENTIAL GROSS RENT 183,000$ 3,660$
Rental Assistance 790,200$ Yes
Secondary Income: Laundry, Cable 12,000$ 240$ Rental Vacancy & Collection Loss (19,500)$ 10.0% Rental Vacancy & Collection Loss on Rental Assistance (79,020)$ 10.0% EFFECTIVE GROSS INCOME 886,680$
EXPENSES Type Elevator
Operating Expenses 300,000$ $6,000 Special Needs Yes Uncontrollable Expense Totals Budgeted 300,000$
Administrative 24,690$ Controllable Expense Management 53,201$
Utilities 97,980$
Payroll & Payroll Taxes 42,540$
Insurance 12,360$
Maintenance 61,849$
Other Operating Expenses (specify): 7,380$
Social Services - FTE 257,950$ $3,570
Replacement Reserves 25,000$ $500
TOTAL EXPENSES 582,950$
Net Operating Income 303,730$
DCR 1.1500 1.255 1.264
8% Test 6.56% 6.66% 6.74%
25% Test 24.47% 25.46% 26.41%
Debt 2,838,834$ (This only works without Perm Debt #2) Dev Fee Total 2,000,000$
Cash Fee 1,999,999$
Dev Note 1$ 0.00%
Cash to Pay Note 1,172,162$
Over/Under 1,172,161$
Tie Breaker 51.91%
Assistance Type
Rental Assistance
Rental Assistance
Fee as % of Income 0.06
Hide 0's Show 0's
15 YEAR PROJECT CASH FLOW PROJECTIONS - Refer to TCAC Regulation Sections 10322(h)(22), 10325(f)(5), 10326(g)(4), 10327(f) and (g).
REVENUE MULTIPLIER YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEAR 16 YEAR 17 YEAR 18 YEAR 19 YEAR 20 Gross Rent 1.025 $183,000 $187,575 $192,264 $197,071 $201,998 $207,048 $212,224 $217,529 $222,968 $228,542 $234,255 $240,112 $246,115 $252,268 $258,574 $265,039 $271,665 $278,456 $285,418 $292,553 Less Vaca 10.00% -18,300 -18,758 -19,226 -19,707 -20,200 -20,705 -21,222 -21,753 -22,297 -22,854 -23,426 -24,011 -24,611 -25,227 -25,857 -26,504 -27,166 -27,846 -28,542 -29,255 Rental Subsidy 1.025 790,200 809,955 830,204 850,959 872,233 894,039 916,390 939,299 962,782 986,852 1,011,523 1,036,811 1,062,731 1,089,299 1,116,532 1,144,445 1,173,056 1,202,383 1,232,442 1,263,253 Less Vaca 10.00% -79,020 -80,996 -83,020 -85,096 -87,223 -89,404 -91,639 -93,930 -96,278 -98,685 -101,152 -103,681 -106,273 -108,930 -111,653 -114,445 -117,306 -120,238 -123,244 -126,325 Miscellaneous Income 1.025 12,000 12,300 12,608 12,923 13,246 13,577 13,916 14,264 14,621 14,986 15,361 15,745 16,139 16,542 16,956 17,380 17,814 18,259 18,716 19,184 Less Vaca 10.00% -1,200 -1,230 -1,261 -1,292 -1,325 -1,358 -1,392 -1,426 -1,462 -1,499 -1,536 -1,575 -1,614 -1,654 -1,696 -1,738 -1,781 -1,826 -1,872 -1,918 Subtotal Revenue $886,680 $908,847 $931,568 $954,857 $978,729 $1,003,197 $1,028,277 $1,053,984 $1,080,333 $1,107,342 $1,135,025 $1,163,401 $1,192,486 $1,222,298 $1,252,856 $1,284,177 $1,316,281 $1,349,188 $1,382,918 $1,417,491 COSR Payouts $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue $886,680 $908,847 $931,568 $954,857 $978,729 $1,003,197 $1,028,277 $1,053,984 $1,080,333 $1,107,342 $1,135,025 $1,163,401 $1,192,486 $1,222,298 $1,252,856 $1,284,177 $1,316,281 $1,349,188 $1,382,918 $1,417,491
EXPENSES
Operating Expenses: 1.035
Administrative $24,690 $25,554 $26,449 $27,374 $28,332 $29,324 $30,350 $31,413 $32,512 $33,650 $34,828 $36,047 $37,308 $38,614 $39,966 $41,364 $42,812 $44,311 $45,861 $47,467 Management $53,201 $55,063 $56,990 $58,985 $61,049 $63,186 $65,397 $67,686 $70,055 $72,507 $75,045 $77,672 $80,390 $83,204 $86,116 $89,130 $92,249 $95,478 $98,820 $102,279 Utilities $97,980 $101,409 $104,959 $108,632 $112,434 $116,370 $120,442 $124,658 $129,021 $133,537 $138,210 $143,048 $148,055 $153,236 $158,600 $164,151 $169,896 $175,842 $181,997 $188,367 Payroll & Payroll Taxes $42,540 $44,029 $45,570 $47,165 $48,816 $50,524 $52,293 $54,123 $56,017 $57,978 $60,007 $62,107 $64,281 $66,531 $68,859 $71,269 $73,764 $76,345 $79,018 $81,783 Insurance $12,360 $12,793 $13,240 $13,704 $14,183 $14,680 $15,194 $15,725 $16,276 $16,845 $17,435 $18,045 $18,677 $19,330 $20,007 $20,707 $21,432 $22,182 $22,959 $23,762 Maintenance $61,849 $64,014 $66,254 $68,573 $70,973 $73,457 $76,028 $78,689 $81,444 $84,294 $87,244 $90,298 $93,458 $96,729 $100,115 $103,619 $107,246 $110,999 $114,884 $118,905 Other Operating Expenses (specify): $7,380 $7,638 $7,906 $8,182 $8,469 $8,765 $9,072 $9,389 $9,718 $10,058 $10,410 $10,775 $11,152 $11,542 $11,946 $12,364 $12,797 $13,245 $13,708 $14,188 Total Operating Expenses $300,000 $310,500 $321,368 $332,615 $344,257 $356,306 $368,777 $381,684 $395,043 $408,869 $423,180 $437,991 $453,321 $469,187 $485,608 $502,605 $520,196 $538,403 $557,247 $576,750 Tenant Internet Expense 1.035 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Service Amenities 1.035 257,950 266,978 276,322 285,993 296,003 306,363 317,086 328,184 339,670 351,559 363,863 376,599 389,780 403,422 417,542 432,156 447,281 462,936 479,139 495,908 Replacement Reserve
Real Estate Taxes 1.020 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other (Specify): 1.035 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other (Specify): 1.035 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Expenses $557,950 $577,478 $597,690 $618,609 $640,260 $662,669 $685,863 $709,868 $734,713 $760,428 $787,043 $814,590 $843,100 $872,609 $903,150 $934,760 $967,477 $1,001,339 $1,036,385 $1,072,659 Cash Flow Prior to Debt Service $328,730 $331,369 $333,879 $336,249 $338,469 $340,528 $342,414 $344,116 $345,620 $346,914 $347,982 $348,811 $349,386 $349,690 $349,706 $349,417 $348,805 $347,850 $346,533 $344,832
MUST PAY DEBT SERVICE
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Perm Debt 1 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 264,113 HCD Funding 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Debt Service $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 $264,113 Cash Flow After Debt Service $64,617 $67,256 $69,765 $72,135 $74,355 $76,415 $78,301 $80,003 $81,507 $82,800 $83,869 $84,698 $85,272 $85,576 $85,592 $85,303 $84,691 $83,737 $82,419 $80,719 COSR -$
Capitalized Rent Reserves -$
Cash Flow After Reserves $64,617 $67,256 $69,765 $72,135 $74,355 $76,415 $78,301 $80,003 $81,507 $82,800 $83,869 $84,698 $85,272 $85,576 $85,592 $85,303 $84,691 $83,737 $82,419 $80,719 Percent of Gross Revenue 6.56% 6.66% 6.74% 6.80% 6.84% 6.86% 6.85% 6.83% 6.79% 6.73% 6.65% 6.55% 6.44% 6.30% 6.15% 5.98% 5.79% 5.59% 5.36% 5.13% 25% Debt Service Test 24.47% 25.46% 26.41% 27.31% 28.15% 28.93% 29.65% 30.29% 30.86% 31.35% 31.75% 32.07% 32.29% 32.40% 32.41% 32.30% 32.07% 31.70% 31.21% 30.56% Debt Coverage Ratio 1.245 1.255 1.264 1.273 1.282 1.289 1.296 1.303 1.309 1.314 1.318 1.321 1.323 1.324 1.324 1.323 1.321 1.317 1.312 1.306 HCD - UMR's 11.58% 11.65% 11.67% 11.66% 11.61% 11.53% 11.42% 11.27% 11.09% 10.89% 10.66% 10.40% 10.11% 9.81% 9.48% 9.13% 8.75% 8.36% 7.95% 7.53% OTHER FEES**
MGP Partnership Management Fee $5,000 $5,000 $5,000 $5,000 $5,000 LP Asset Management Fee 7,500 7,500 7,500 7,500 7,500
AGP Management Fee 0 0 0 0 0
Total Other Fees 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12,500 12,500 12,500 12,500 12,500 Remaining Cash Flow $64,617 $67,256 $69,765 $72,135 $74,355 $76,415 $78,301 $80,003 $81,507 $82,800 $83,869 $84,698 $85,272 $85,576 $85,592 $72,803 $72,191 $71,237 $69,919 $68,219 Cash Flow Split 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cash Flow Split 100.00% $64,617 $67,256 $69,765 $72,135 $74,355 $76,415 $78,301 $80,003 $81,507 $82,800 $83,869 $84,698 $85,272 $85,576 $85,592 $72,803 $72,191 $71,237 $69,919 $68,219 Deferred Developer Fee** 1$
15 Year Sources to pay dev fee 1,172,162$
Residual or Soft Debt Payments**
*9% and 4% + state credit applications should include the cost of tenant internet service if requested in the Points System site amenity section. -$64,617 -$67,256 -$69,765 -$72,135 -$74,355 -$76,415 -$78,301 -$80,003 -$81,507 -$82,800 -$83,869 -$84,698 -$85,272 -$85,576 -$85,592 **Other Fees and all payments made from cash flow after must pay debt should be completed according to the terms of the partnership agreement (or equivalent ownership entity terms). Please re-order line items consistent with any "order of priority" terms. These items are to be completed when submitting an updated application for the Carryover, Readiness, Final Reservation, and Placed-in-Service deadlines.
Exhibit B
08 Feasibility
Arcata Courtyards II Rehab
Arcata Courtyards Rehab
Aster Place Rehab
Clearlake Re-Hab
Clearlake SF - 16 Lots
Clearlake Single Family (2)
Cutten - Travis Schneider Property
Eureka Summercreek Rehab
Fortuna Family Rehab
Fortuna Summercreek Rehab
Lakeport Single Cluster Homes
Lassen - Fair Drive
Long Beach - Senior
Mountain View - El Monte
NAPA
Redway Family Rehab
Sacramento HOMEKEY - County
San Jose Capitol Ave
Texas Market Place
Ukiah Summercreek Rehab
Willits Family Apartments
Willow Creek Family Rehab
Yreka
Units Housing TypeCity
Arcata, CA
Arcata, CA
Eureka, CA
Clearlake, CA
Clearlake, CA
Clearlake, CA
Cutten, CA
Eureka, CA
Fortuna, CA
Fortuna, CA
Lakeport, CA
Susanville, CA
Long Beach, CA
Mountain View, CA
Napa, CA
Redway, CA
Sacramento, CA
San Jose, CA
Dallas–Fort Worth, TX
Ukiah, CA
Willits, CA
Willows, CA
Yreka, CA
Family
Family
Family
Family
Family
Family
Family
Senior
Family
Senior
Family
PSH
Senior
Family
Family
Family
PSH
Family
Family
Family
Family
Family
Family
36 64
56 16
16 16
20 40
24 40
23 50
150
150
120
20 80
TBD
TBD
80 60
24 50
The Danco Group
Inventory of Projects
2024-2025
Land Acquisition
Apache Junction
Des Moines Washington
Santa Cruz County
Roseland - Ponderosa Village
Truckee
Units Housing TypeCity
Apache Junction, AZ
De Moines, WA
Santa Cruz, CA
Santa Rosa, CA
Truckee, CA
Family
Family
Family
Family
TBD
64 TBD
100
80 TBD
Design/Entitlements/Financing
Clearlake - Single Family
Crescent City - Senior / Family Housing
Emory Heights - Chris Smith
Freemont
Lake Washington
Lakeport - Parkside
Maya Hotel HOMEKEY
MLK
Moraga
Oakland Telegraph - Mid Rise
Payson Affordable Housing
Redding Canby Road
Sacramento - Mid Rise
Sacramento - Super 8 - Homekey 3
Samoa Affordable - Block Building
Santa Maria - Lot 2
Yuma - AZ
Units Housing TypeCity
Clearlake, CA
Crescent City, CA
Phoenix, AZ
Fremont, CA
West Sacramento, CA
Lakeport, CA
Oakland, CA
Portland, OR
Moraga, CA
Oakland, CA
Payson, AZ
Redding, CA
Sacramento, CA
Sacramento, CA
Samoa, CA
Santa Maria, CA
Yuma, AZ
Family
Family
Family
Family
Family
Family
PSH
Family
Senior
Family
Family
Family
Family
PSH
Family
Family
Family
22 30
TBD
100
147
64 22
100
TBD
60 50
150
60 126
130
TBD
80 The Danco Group
Inventory of Projects
2024-2025
Construction
Acorn Valley Plaza
Mariposa Place
Madrone Place
Alvarado Gardens Phase I
Vendra Gardens Apartments
Cussick Apartments
Huntington Apartments
Inn at Coliseum
Units Housing TypeCity
Ukiah CA
San Jose, CA
Family
PSH
71 80
San Jose, CA
San Pablo, CA
Family
Family
154
100
Moorpark, CA
Chico, CA
Family
Family
200
80 La Pine, OR
Oakland, CA
Family
PSH
60 36
Lease Up
Acorn Valley Plaza
Inn at Coliseum
Mariposa Place
Alvarado Gardens Phase I
Units Housing TypeCity
Ukiah, CA
Oakland, CA
San Jose, CA
San Pablo, CA
Family
PSH
PSH
Family
71 36
80 100
Stabilization
Brentwood Crossing
Laurel Canyon Apartments
Oak Valley Villas
Central Sacramento Studios
West Village Studios
Units Housing TypeCity
Bakersfield, CA
Eureka, CA
Farm Labor
Senior
57 36
Clearlake, CA
Sacramento, CA
Family
PSH
50 100
Arcata, CAPSH84
Placed In Service
Arcata Courtyards Phase I
Arcata Courtyards Phase II
Aster Place
Bayview Heights
Church Hill Townhomes
Creamery Row Townhomes
Cottages at Cypress
Fortuna Family Apartments
Fortuna Meadows Apartments
Lodge at Eureka
Monterey Gateway Apartments
Orchard Commons
The Plateau
Plaza Point
Phyllis Rex Townhomes
River Bluff Cottages
Redwood Village
Sage Commons
Sorrel Place
Summercreek Place
Summercreek Village
Temescal Commons
Willow Creek Family Apartments
Yarrow Village
Units Housing TypeCity
Arcata, CA
Arcata, CA
Eureka, CA
Eureka, CA
Fortuna, CA
Family
Family
Family
PSH
Family
64 36
40 51
35 Arcata, CA
Fort Bragg, CA
Fortuna, CA
Fortuna, CA
Eureka, CA
Gilroy, CA
Santa Rosa, CA
Fort Bragg, CA
Arcata, CA
Samoa, CA
Rio Dell, CA
Redway, CA
Santa Rosa, CA
Arcata, CA
Eureka, CA
Ukiah, CA
Oakland, CA
Willow Creek, CA
Fortuna, CA
Family
Senior
Family
Senior
Senior & PSH
Senior & PSH
Family & PSH
Hybrid
Senior
Family & PSH
PSH
Family
PSH
Family
Senior
Family
PSH
Family
Senior
18 25
24 40
50 75
46 69
29 80
26 20
54 44
40 64
22 24
25 The Danco Group
Inventory of Projects
2024-2025
Exhibit C
08 TCAC Number PROPERTY ADDRESS HOUSING TYPE UNITS GOVT AGENCY CA-22-038 Acorn Valley Plaza 210 E. Gobbi St, Ukiah, CA 95482 Family 70 units + 1 MU TCAC/HCD/CDBG-DR/City CA-22-082 Alvarado Gardens 13831 San Pablo Ave, San Pablo, CA Family 50 units + 1 MU TCAC/HUD/City CA-02-117 Arcata Courtyards Ph I 3101 Boyd Rd, Arcata, CA 95521 Family Phase 1: 64 units TCAC/HOME/RD 538 CA-05-926 Arcata Courtyards Ph II 3101 Boyd Rd, Arcata, CA 95521 Family Phase 2: 36 units TCAC/HOME/RD 538 CA-10-829 Aster Place 2405 Aster Place, Eureka, CA 95501 Family 39 units + 1 MU TCAC/HOME CA-18-032 Bayview Apartments 108 4th St, Eureka, CA 95501 PSH 50 units + 1 MU TCAC/VHHP/HCD/HUD CA-21-456 Brentwood Crossing 7350 Willis Avenue, Bakersfield, CA 93006 Family 57 + 1 MU TCAC/USDA NA Central Sac Studios 1100 H St & 815 11th St, Sacramento, CA 95814 PSH 93 units + 1 MU HCD/SHRA CA-23-421 Chico Cussick Apartments 648 W East Avenue, Chico, CA 95928 Family 74 units + 1 MU CLAC/CDBG-DR CA-11-154 Church Hill Townhomes 2601 School St, Fortuna, CA 95540 Family 34 units + 1 MU TCAC/RD 515 CA-15-037 Creamery Row Townhomes 977 8th St, Arcata, CA 95521 Family 17 units + 1 MU TCAC/CDBG NA Coliseum PSH 4801 Colisem Way, Oakland, CA PSH 36 units + 1 MU HCD CA-12-141 Cottages at Cypress 330 Cypress St, Fort Bragg, CA 95437 Senior 24 units + 1 MU TCAC/RD 515 CA-21-070 Eureka 7th & Myrtle 1720 7th Street, Eureka, CA 95501 Senior 35 units + 1 MU TCAC/HCD/City CA-05-925 Fortuna Family Apartments 2043 Stockton Ct., Fortuna, CA 95540 Family 24 units TCAC/HOME/RD 538 NA Fortuna Meadows Apartments 2065 David Way, Fortuna, CA 95540 Senior 55+ 40 units HOME CA-23-098 Harbor Point 655 H Street, Crescent City, CA 95551 Senior 62+ 26 untis + 1 MU TCAC/HCD/HUD/City OR-22-3028 La Pine Family Huntington Way, La Pine, OR 97739 Family 59 units + 1 MU OHCS CA-15-861 Lodge at Eureka 428 8th St, Eureka, CA 95501 Senior 62+ 49 units + 1 MU TCAC/HOME/DHHS CA-21-591 Mariposa Place 750 West San Carlos Street, San Jose, CA 95126 PSH & Special Needs 79 units + 1 MU TCAC CA-18-703 Monterey Gateway Apartments 6500 Monterey Rd, Gilroy, CA 95020 Senior 62+ 74 + 1 MU TCAC/CDLAC CA-21-066 Oak Valley Villas 14795 Burns Vallye Road, Clearlake, CA 95422 Family 79 units + 1 MU TCAC/CDBG-DR/City CA-20-417 Orchard Commons 811 Boyd St, Santa Rosa, CA 95404 Family & Special Needs 45 + 1 MU TCAC/HCD CA-20-510 The Plateau 441 South St, Fort Bragg, CA 95437 Family, Senior, SN 68 units + 1 MU TCAC/HCD/HUD CA-10-222 Plaza Point 977 8th St, Arcata, CA 95521 Senior 62+ 28 units + 1 MU TCAC/HOME/RD 515 CA-18-087 Phyllis Rex Townhomes 26 Samoa Coast Lane, Samoa, CA 95526 Family & Special Needs 79 units + 1 MU TCAC/HCD CA-18-085 River Bluff Cottages 355 Center St, Rio Dell, CA 95562 Special Needs 25 unis + 1 MU TCAC/PHC NA Redwood Village P.O. Box 1238, Redway, CA 95560 Family 20 units HOME CA-19-118 Sage Commons 80 College Ave, Santa Rosa, CA 95401 PSH 53 units + 1 MU TCAC/HCD/PHC/HUD CA-19-112 Sorrel Place 969 7th St, Arcata, CA 95521 Family 43 units + 1 MU TCAC/HCD/CDBG CA-00-204 Summercreek Place 1636 Myrtle Ave, Eureka, CA 95501 Senior 55+ 39 units + 1 MU TCAC/HOME CA-02-121 Summercreek Village 755 Village Circle, Ukiah, CA 95482 Family 63 units + 1 MU TCAC/HOME NA Temescal Place 3720 Telegraph Ave, Oakland, CA PSH 21 units + 1 MU HCD CA-22-449 Vendra Gardens 150 Casey Rd, Moorpark, CA 200 198 units + 2 MU TCAC/CDLAC/ NA West Village Studios 4975 Valley West Blvd, Arcata, CA 95521 PSJ 78 units + MU HCD/CDBG/City CA-05-927 Willow Creek Family Apartments P.O. Box 176, Willow Creek, CA 95573 Family 24 units TCAC/HOME/RD 538 CA-14-022 Yarrow Village 2080 Stockton Ct, Fortuna, CA 95540 Senior 62+ 25 units TCAC Danco Property Management - Affordable Properties Managed Certification of Owner's Intentions
08 5251 Ericson Way
Arcata, CA 95521
Phone: (707) 822 9000
Fax: (707) 822 9596
www.danco-group.com
Contractor’s Licenses
CA# 500851 & 899392
Danco Builders
Danco Builders Northwest
Danco Communities
Danco Hospitality
Danco Property Management
Danco Supportive Services
Western Living Concepts
February 7, 2025
To whom it may concern:
This letter is to certify that the Vista Ridge project’s ownership will comply with Title VI of the Civil Rights Act of 1966, Title VIII of the Civil Rights Act of 1968, E. O. 11063, E.O. 11246, Section 3 of the Housing and Urban Development Act of 1968, and all applicable Federal requirements listed in 24 CFR 983.11. This includes, but is not limited to, the payment of not less than the prevailing wages in the locality pursuant to the Davis-Bacon Act to all laborers and mechanics employed in the construction or rehabilitation of the project. Existing housing projects are not subject to this provision.
If you have any further questions please reach out to Hailey Wilson, Grants Manager at [email protected] or 707-267-5117.
Sincerely,
Hailey Wilson
Grants Manager
Danco Communities
AHAP - EXHIBIT B
The existing structure consists of three stories of wood-frame construction with a concrete slab on grade and appears to be in acceptable condition for the intended use. Renovation efforts will include roof refurbishing/repairs, exterior repairs and painting, interior upgrades including new flooring, fixtures, finishes, and in-unit kitchenettes, as well as HVAC and LED lighting replacements. Two to five rooms on the first floor will be converted into conditioned community space, featuring a secure entry, security station, gathering area, and access to supportive service offices. The existing elevator, that provides access to the 2nd and 3rd floor, will be modernized and the cabin will be refinished.
Building Details:
• Existing Floor Areas:
o 1st Floor: ±9,945 SF
o 2nd Floor: ±9,945 SF
o 3rd Floor: ±9,945 SF
o Total: 29,835 SF
• New Accessibility Features: At least 8 mobility units and 5 units with communication features, exceeding the minimum HomeKey+ program requirements.
Site and Outdoor Improvements:
• Lot Area: 1.5 acres
• Existing Parking: 98 spaces (with 3 ADA-compliant accessible spaces and a van- accessible space).
• Asphalt Paving: Repairs and repaving of approximately 30,000 SF of the existing parking area, with restriping of approximately 70,000 SF. • Landscaping: Enhancements covering approximately 8,000 S F, including new trees, gardens, and shaded gathering areas.
• Outdoor Amenities:
o Pool renovation, including accessibility compliance.
o New dog run (3,750 SF), with waste collection and shaded seating. o Basketball and pickleball courts, approximately 1,600 SF each. o Outdoor barbecue area, approximately 2,000 SF.
o Raised garden planters (approximately 2,800 SF).
o Gazebo and outdoor seating areas.
Building Renovation and Upgrades:
• Roof: Existing roof tiles will be refurbished and the single-ply roof membrane will be replaced.
• Exterior: Painting, siding repairs, pest inspection, and vandalism-resistant measures.
• Interior:
o New flooring (luxury vinyl plank).
o Kitchenettes in each unit, including sink, refrigerator, microwave, cooktop, and range hood.
o Bathroom upgrades, including new ADA-compliant fixtures in designated units. o Common areas and community spaces, including a large community room, multiple lounges, and laundry rooms on each floor. o Security enhancements, including a security office, web-based surveillance system, and controlled access points.
o Elevator: ensuring accessibility to all floors, upgrades and refinishing of the interior cabin.
Mechanical & Electrical Systems:
• New high-efficiency HVAC units in all residential units. • Updated fire alarm and fire sprinkler systems.
• Energy-efficient LED lighting throughout the development. • Upgraded electrical capacity to support new amenities.
This project is designed to comply with all local building codes, zoning regulations, and accessibility standards while offering affordable, supportive housing for formerly homeless individuals at 30% AMI.
AHAP – EXHIBIT C
Project Site:
• 3331 N. Texas St., Fairfield, CA 94533
Total Number of Units Covered by this Agreement:
• 50
Locations of Contract Units on Site:
• Entire Site
Number of Contract Units by Area (size) and Number of Bedrooms and Bathrooms:
• 480-526 SF
• All Studios
• 1 bathroom per unit
Services, Maintenance, or Equipment to be supplied by the owner without charges in addition to the rent to owner:
• N/A
Utilities available to the contract units, including a specification of utility services to be paid by the owner (without charges in addition to rent) and utility services to be paid by the tenant:
• The property will pay for all tenant utilities including water, sewer, garbage, trash and electricity/heating.
Estimated initial rent to owner for the contract units:
• Estimated $1,622. Final rent will be determined based on rent reasonableness at lease up