Resolution of the Community Development Commission-Housing Authority of the City of National City (“Housing Authority”) approving a conditional award of Ten Million Dollars ($10,000,000) from the Housing Authority’s Housing Fund to the 400-unit Azuriik Affordable Housing Project by the Metropolitan Advisory Committee on Anti-Poverty (“MAAC”) located at 233 Roosevelt Avenue.
Staff Recommendation
Recommend approving the following items:
1. Ranked list of projects from the scoring review of the submitted applications to the Community Development Commission-Housing Authority of the City of National City Notice of Funding Availability (NOFA) for Affordable Housing; and
2. Initiate the underwriting process and development of loan documents to award a loan of up to $10,000,000 for the following Affordable Housing New Construction Project – Azuriik.
Executive Summary
This Council Agenda Report presents the results of the Community Development Commission- Housing Authority of the City of National City Notice of Funding Availability (NOFA) for Affordable Housing released in October 2021. The NOFA provided an opportunity for housing development companies to apply for approximately $10 million in available Fiscal Year (FY) 2022 funding. The NOFA solicited applications for affordable housing rental or ownership projects, prioritizing projects that serve low-income households, created new affordable rental and ownership housing, leveraged outside resources, projects that are ready to start construction, align with the components of the 2021-2029 Housing Element and 2021-2025 Housing Strategic Plan, and are projects in communities of opportunity (e.g., near transit and amenities), among other criteria indicated in the NOFA Guidelines (Exhibit 1).
The funds will serve as gap financing for new construction, acquisition with rehabilitation, or rehabilitation of affordable rental, homeownership, and permanent supportive housing projects.
The funding is intended to partially fill the gap in a development’s financial structure after all other available sources of housing development funds are utilized. These funds will provide financing at below-market interest rates with deferred loan repayment for affordable housing projects.
After the release of the NOFA on October 14, 2021, a total of two (2) applications were received by the November 19, 2021 deadline. The applications were reviewed for compliance in terms of the NOFA and evaluated according to the established NOFA Evaluation Criteria. Projects were then ranked based on the scoring criteria described in the NOFA. Table 1 provides the final point score, amount requested, and the funding recommendation for the submitted applications. 262 of 339
Attachment No. 1
City of National City
January 18, 2022
Staff Report Explanation
Table 1. Application Final Point Score and Funding Recommendation Applicant Project
Name
Site
Address
Total
Units
Total
Affordable
Units
Final
Point
Score
Amount
Requested
Funding
Recommedation
MAAC
National
City, LP
Azuriik
233
Roosevelt
Avenue
National
City
400 396 120 $10,000,000 $10,000,000
Wakeland
Housing and
Development
Corporation
Union
Tower
2313 F
Avenue
National
City
94 93 116 $8,000,000 $0
The recommended action will initiate the underwriting process and development of loan documents to award a loan of up to $10,000,000 to one (1) affordable housing rental project.
The project is Azuriik, 233 Roosevelt Avenue (MAAC National City, LP).
Additional details regarding the project recommended for funding can be found in Exhibit 2. The project will construct a single 22-story, elevator-served, high rise mixed-use affordable housing building containing 400 units where 396 are affordable units. The project is expected to leverage approximately $187,000,000 in non-City funding investments from County and State funding programs, private lenders, and tax credit investors.
Background
The Community Development Commission-Housing Authority of the City of National City (Housing Authority) Notice of Funding Availability (NOFA) for affordable housing was released on October 14, 2021, and applications were due on November 19, 2021.
The NOFA made approximately $10 million in total funds available for all capital requests for new construction, acquisition with rehabilitation, or rehabilitation of affordable housing serving households earning up to 60% of the Area Median Income (AMI) for rental projects and households earning up to 80%-120% of the AMI for homeownership projects. Capital funds are from the Housing Authority’s Housing Fund and are subject only to the conditions set forth in the NOFA.
Applicable Area Median Income (AMI) Level
Funds included in the NOFA provide an opportunity for National City to facilitate the acquisition and new construction, acquisition with rehabilitation, or rehabilitation of affordable rental or homeownership in the City of National City for households with low income (up to 60 percent of San Diego County’s Area Median Income [AMI]), very low income (up to 50 percent of AMI), and extremely low income (up to 30 percent of AMI).
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Attachment No. 1
City of National City
January 18, 2022
Staff Report Explanation
Affordability Targeting
The NOFA guidelines set forth an affordability targeting for both rental projects and ownership projects.
Rental projects must provide units (excluding managers’ units) affordable to low-income households as follows:
• One hundred percent (100%) of units funded with Housing Authority funds must be restricted as affordable at or below 60% AMI.
• Rents for affordable units must be the lesser of the designated restricted rent limit or ten percent (10%) below market rate within a 1 mile radius. • At least twenty percent (20%) of the affordable units must have annual rents plus utility allowance of no more than 30% of 30% AMI, and be reserved for very low income households earning less than 30% AMI.
• No more than fifteen (15%) of the affordable units may have annual rents plus utility allowance between 30% of 80% AMI and 30% of 120% AMI (Moderate-Income Units).
Ownership projects must provide units affordable as follows:
• One hundred percent 100% of units funded must be restricted as affordable. • The affordable units must have an average affordability level of 100% AMI or less. For example, in a 26 unit project, 10 units could be targeted to households at 120% AMI, 10 units at 80% AMI, and 6 units at 100% AMI.
• Priority will be given to projects targeting some units to households at 80% of AMI or below.
• Households with incomes up to 120% of AMI are eligible for assisted units, provided the average affordability level of the affordable units is 100% of AMI or less (see example provided above).
Funds as Gap Financing
The funds per the NOFA is for new construction, acquisition with rehabilitation, or rehabilitation of affordable rental, homeownership, and permanent supportive housing projects and is intended to partially fill the gap in a development’s financial structure after all other available sources of housing development funds are utilized. Such “other available funds” may include but are not limited to: private bank loans, equity from the sale of low-income housing tax credits, owner equity, sale of tax-exempt Multifamily Housing Revenue Bonds, state and federal funding, grants and donations, and other public and private sources of funds. Applicants are expected to pursue financing from all available sources.
As appropriate, financial assistance to the selected project will be made in the form of amortized payments or residual receipts loans. The terms of the loans outlined in the NOFA shall be subject to negotiation on a project-by-project basis. All loans will be secured by a lien on the property. Applicants who previously received a funding commitment from the City for the development of a project are not eligible to apply for the same project.
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Attachment No. 1
City of National City
January 18, 2022
Staff Report Explanation
NOFA Application Process
A NOFA of available funding was issued on October 14, 2021. Applications were considered through a competitive application process as indicated in the NOFA guidelines.
A total of 2 applications were received by the November 19, 2021 deadline, requesting a total of $18 million for the $10 million available funds in the NOFA. A summary of the submitted applications are indicated in Table 2. No applications were deemed substantially incomplete or rejected.
Table 2. Summary of Applications Submitted
Project
Name Project Description Site
Address
Total
Units
Total
Development
Cost
Amount
Requested
Union
Tower
94-unit community of
affordable apartment
homes with on-site
services and community
amenities designed to
help resident thrive
2313 F
Avenue
National City
94 $46,458,814 $8,000,000
Azuriik
A new construction Type
1, single 22-story,
elevator- served, high rise
mixed-use affordable
housing building,
containing 400 units and
offering 11,253 square
feet of indoor and outdoor
community service facility
space
233
Roosevelt
Avenue
National City
400 $197,147,112 $10,000,000
Scoring Review
A set of third-party reviewers evaluated the applications according to the established Evaluation Criteria in the NOFA. The Evaluation Criteria is shown in Table 2. • Readiness – Reviewers reviewed the applications and awarded points based on the Readiness Criteria as described in the NOFA. This includes a review of the funding sources and commitments, the narrative description of the financing approach, degree to which outside funding is pursued, the funding commitments to the project, and the anticipated receival of entitlements and community support. • Developer Experience and Capacity – Reviewers reviewed the applications and awarded points based on the Developer Experience and Capacity Criteria as described in the NOFA. This includes a review of history of completing affordable housing projects on time and within budget, completing a similar project in the past, team experience and capacity, financial strength, and alignment with Housing Authority’s goals, objectives, and actions outline din the Housing Authority’s Strategic Housing Plan and 2021-2029 Housing Element.
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Attachment No. 1
City of National City
January 18, 2022
Staff Report Explanation
• Project Budget – Reviewers reviewed the applications and awarded points based on the Project Budget Criteria as described in the NOFA. This includes a review of completeness and reasonable anticipated development costs. • Amenities & Community Space – Reviewers reviewed the applications and awarded points based on the Amenities & Community Space Criteria as described in the NOFA.
This includes a review of the anticipated amenities and community space features as part of the project.
• Location – Reviewers reviewed the applications and awarded points based on the Location Criteria as described in the NOFA. This includes a review of the project’s location in terms of geographic equity, potential for neighborhood revitalization, and proximity to high-quality transit, school, community center, public park, and grocery store.
• Target Population and Project Attributes – Reviewers reviewed the applications and awarded points based on the Target Population and Project Attributes Criteria as described in the NOFA. This includes a review of providing more low income rental units than 20% of units serving households with rents no more than 30% of 30% of AMI and the number of larger units provided.
• Collaboration & Planning – Reviewers reviewed the applications and awarded points based on the Collaboration and Planning Criteria as described in the NOFA. This includes a review of local planning efforts, community engagement and outreach efforts, and potential to address community needs.
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Attachment No. 1
City of National City
January 18, 2022
Staff Report Explanation
Table 3. Evaluation Criteria
Criteria
1. Readiness
a. Indicated and Sufficient Evidence of Funding Sources b. Innovative Financing
c. Leveraging
d. Funding Commitments
e. Site Control and Anticipation of Entitlements
2. Developer Experience and Capacity
a. Project History
b. Developer Experience, Capacity & Staffing
c. Developer Financial Strength
d. Strength of the Development Team
e. Bonus Point Category
3. Project Budget
4. Amenities & Community Space
5. Location
a. Geographic Equity
b. Neighborhood Revitalization
c. Proximity to Nearby Amenity: Public Transit
d. Proximity to Nearby Amenity: School
e. Proximity to Nearby Amenity: Community Center or Public Park f. Proximity to Nearby Amenity: Grocery Store
6. Target Population and Project Attributes
a. Income Targeting
b. Unit Size
7. Collaboration & Planning
a. Local Planning Efforts
b. Community Engagement
c. Addressing Community Needs
Total Points Available
The applications were scored by a set of reviewers based on the evaluation criteria in the NOFA. The scores were compiled and averaged to develop the final point score for the applications for each criteria. Table 4 shows the final point score (an average of the scores assigned by the reviewers) for each criteria.
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Attachment No. 1
City of National City
January 18, 2022
Staff Report Explanation
Table 4. Final Point Score for Submitted Applications
Criteria Points
Available
Final Point
Score - Union
Final Point
Score -
Azuriik
1. Readiness 45 33 38
2. Developer Experience and Capacity 35 30 28
3. Project Budget 15 11 13
4. Amenities & Community Space 5 4 5
5. Location 25 23 21
6. Target Population and Project Attributes 15 3 3
7. Collaboration & Planning 15 13 12
Total Points Available 155 116 120
Next Steps
Once the developer has secured its financing including remaining gap funding sources, Housing Authority staff and its financial consultants will underwrite the final loan amount not-to-exceed Ten Million Dollars ($10,000,000) and draft loan documents for approval by the developer and General Counsel of the Housing Authority.
The awarded Affordable Housing Project will be subject to the terms and conditions of Project Labor Agreement currently being negotiated between the City of National City and the San Diego Building and Construction Trades Council if the Project Labor Agreement is fully executed and in effect before loan is funded by the Housing Authority.
The loan award is not final until a Loan Agreement is approved by the Housing Authority.
Exhibits
1. Community Development Commission-Housing Authority of the City of National City Notice of Funding Availability (NOFA) for Affordable Housing Guidelines
2. Azuriik - Cover Letters and Application Forms
3. Union Tower - Cover Letters and Application Forms
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
Community Development Commission-
Housing Authority of the City of National City
Notice of Funding Availability (NOFA)
D
escription: NOFA for Affordable Housing
Submittal Deadline: November 19, 2021 5:00PM
Exhibit 1
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2021 NOFA: Affordable Housing
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Table of Contents
1.0 Overview and General Information .................................................................................................. 4
1.1 Process and Timeline .......................................................................................................................... 6
2.0 Requirements .................................................................................................................................... 6
2.1 Eligibility .............................................................................................................................................. 6
2.1.1 Eligible Applicants ........................................................................................................................ 6
2.1.2 Eligible & Ineligible Activities and Costs ...................................................................................... 7
2.2 Loan Terms and Underwriting ............................................................................................................ 7
2.2.1 Limitations on Swapping Awards ............................................................................................... 12
2.2.2 Loan Commitment Reservation Period ...................................................................................... 12
2.2.3 Loan Termination or Reduction ................................................................................................. 12
2.3 Affordability Targeting ...................................................................................................................... 12
2.3.1 Minimum Affordability – Rental Projects .................................................................................. 13
2.3.2 Minimum Affordability – Ownership Projects ........................................................................... 13
2.4 Financing Guidelines ......................................................................................................................... 13
2.4.1 Minimum and Maximum Loan Amounts ................................................................................... 13
2.4.2 Construction Contingency .......................................................................................................... 14
2.4.3 Maximum Per-Unit Total Development Costs (TDC) ................................................................. 14
2.5 Developer Fee Limit .......................................................................................................................... 14
3.0 Evaluation Criteria ........................................................................................................................... 14
3.1 READINESS (maximum 45 points) ..................................................................................................... 15
3.2 DEVELOPER EXPERIENCE AND CAPACITY (maximum 35 points) ...................................................... 16
3.3 PROJECT BUDGET (maximum 15 points) .......................................................................................... 18
3.4 AMENITIES & COMMUNITY SPACE (maximum 5 points) .................................................................. 18
3.5 LOCATION (maximum 25 points) ...................................................................................................... 18
3.6 TARGET POPULATION AND PROJECT ATTRIBUTES (maximum 15 points) ........................................ 19
3.7 COLLABORATION AND PLANNING (maximum 15 points) ................................................................. 20
4.0 Application ...................................................................................................................................... 21
4.1 Cover letter ....................................................................................................................................... 21 4 .2 Application ........................................................................................................................................ 21
4.2.1 Application Information & Project Summary ............................................................................. 22
4.2.2 Development Team Members Resume & Capacity ................................................................... 22 Exhibit 1
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4.2.3 Applicant Experience and References........................................................................................ 22
4.2.4 Site Control and Demonstration of Value .................................................................................. 23
4.2.5 Zoning ......................................................................................................................................... 23
4.2.5 Tenant Relocation ...................................................................................................................... 23
4.2.6 Evidence of Construction Scope and Cost Estimate .................................................................. 24
4.2.7 Commercial Space Funding ........................................................................................................ 24
4.2.8 Other Funding Sources ............................................................................................................... 24
4.2.9 Project Timeline ......................................................................................................................... 24
4.3 Project Narrative ............................................................................................................................... 24
4.4 Project Vicinity Map .......................................................................................................................... 25
4.4.1 Project Maps of High-Quality Transit and Community Services ................................................ 25
4.5 Project Pro forma .............................................................................................................................. 25
4.6 Outreach Efforts ................................................................................................................................ 26
4.7 Neighborhood and Local Government Support ................................................................................ 26
4.8 Preliminary Management and Marketing Plan ................................................................................. 26
4.9 Market Demand ................................................................................................................................ 27
4.10 Applicant Financial Statements/capacity ........................................................................................ 28
5.0 Application Attachments ................................................................................................................ 28 Attachment A – Area Median Income Limits for San Diego County, CTCAC Rent Limits, Monthly Utility Allowances .............................................................................................................................................. 29 Attachment B – Affordable Home Price ................................................................................................. 31 Attachment C – Map of Low and Moderate-Income Areas in National City .......................................... 32 Attachment D – Application Checklist .................................................................................................... 33 Attachment E – Application Form ........................................................................................................... 34 Attachment F – Developer Experience Worksheets ............................................................................... 35 Attachment G – Developer Capacity Worksheets .................................................................................. 37
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
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1.0 Overview and General Information
The Community Development Commission-Housing Authority of the City of National City (Housing Authority) is pleased to announce the availability of Fiscal Year 2022 funding for housing through this Notice of Funding Availability (NOFA).
This NOFA includes approximately $10 million in total funds for all capital requests for new construction, acquisition with rehabilitation, or rehabilitation of affordable housing serving households earning up to 60% of the Area Median Income (AMI) for rental projects and households earning up to 80%-120% of the AMI for homeownership projects.
Capital funds are from the Housing Authority’s Housing Fund and are subject only to the conditions set forth in this NOFA.
Applicable Area Median Income (AMI) Level
Funds included in this NOFA provide an opportunity for National City to facilitate acquisition and new construction, acquisition with rehabilitation, or rehabilitation of affordable rental or homeownership in the City of National City for households with low income (up to 60 percent of San Diego County’s Area Median Income [AMI]), very low income (up to 50 percent of AMI), and extremely low income (up to 30 percent of AMI). Projects with proposed income averaging will be reviewed on case-by-case basis. All applicable federal funding regulations for AMI requirements will apply.
Eligible Projects – Capital Funds
These funds will provide financing at below-market interest rates with deferred loan repayment. This NOFA only applies to developments located in the City of National City.
Funds as Gap Financing
This NOFA is for new construction, acquisition with rehabilitation, or rehabilitation of affordable rental, homeownership, and permanent supportive housing projects and is intended to partially fill the gap in a development’s financial structure after all other available sources of housing development funds are utilized. Such “other available funds” may include but are not limited to: private bank loans, equity from the sale of low-income housing tax credits, owner equity, sale of tax-exempt Multifamily Housing Revenue Bonds, state and federal funding, grants and donations, and other public and private sources of funds. Applicants are expected to pursue financing from all available sources.
As appropriate, financial assistance to the selected project will be made in the form of amortized payments or residual receipts loans. The terms of the loans outlined in the NOFA shall be subject to negotiation on a project-by-project basis. All loans will be secured by a lien on the property. Applicants who previously received a funding commitment from the City for the development of a project are not eligible to apply for the same project.
Application Selection
The Housing Authority reserves the right to reject any and all submittals, including rejection of applications that may rank high in points relative to other applications. Selection of projects, to be funded or not funded, shall be subject to the approval of the Housing Authority in its sole discretion and Exhibit 1
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based upon a determination of which project is most likely to meet the Housing Authority’s goal of timely creating additional cost-effective affordable housing.
The Housing Authority’s available funding is extremely limited and the Housing Authority may not be able to fund every desirable project that is proposed. The public benefits and financial impacts of submitted applications will be carefully compared. Qualified developers with affordable housing development experience are encouraged to submit applications.
The Housing Authority, in its sole discretion, may adjust and substitute funding sources, based on the available and most appropriate funding sources for projects at the time the loan recommendation is presented to the Housing Authority. The Housing Authority reserves the right to reallocate and/or supplement funds from one NOFA to another, or from any other available source of funds, should it be deemed advisable by the Housing Authority, in its sole discretion. However, nothing contained herein creates an obligation upon the Housing Authority to reallocate or supplement funds.
Application Submittal
Applicants are required to submit a complete application with all applicable exhibits to ensure the most recent and up to date project information is available to the Housing Authority. Applicants should request the amount needed to ensure feasibility of their project regardless of the amount of funds available through this process.
The deadline for submitting proposals in response to the NOFA is 5:00 P.M. on November 19 ,2021.
Proposals will be reviewed for compliance with the terms of this NOFA and evaluated according to the established NOFA Evaluation Criteria. All applications submitted within the application period shall be reviewed by the Housing Authority staff and third-party analyst to ensure compliance with all the application requirements and shall be competitively scored. Projects that apply to the NOFA will be ranked based on scoring criteria described in the NOFA. Staff will request that the Board of Commissioners of the Housing Authority approve the ranked list of projects and a total amount of funds to be awarded. The Housing Authority reserves the right to request additional information and/or to reject any or all proposals.
The Housing Authority will take the following priorities into account for the NOFA process:
• The creation of new affordable rental & ownership housing developments. • Assistance for housing projects targeting people experiencing homelessness and extremely low- income households including Permanent Supportive Housing projects; • Project Readiness; and
• Projects that align with the components of the 2021-2029 Housing Element and 2021-2025 Housing Strategic Plan.
Interested and qualified developers who can successfully demonstrate their ability to acquire, build, and operate affordable housing are encouraged to submit applications. Questions related to this NOFA must be submitted by email to [email protected] by 5:00 P.M. on November 1, 2021.
Exhibit 1
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2021 NOFA: Affordable Housing
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1.1 PROCESS AND TIMELINE
The Housing Authority has developed a comprehensive process to evaluate responses to this NOFA against specific evaluation criteria. The principal steps in the submission and evaluation process are:
• Applicants must submit: one (1) copy of the proposal and required exhibits to https://bit.ly/2021NOFA_Submit
• The Checklist (Attachment D) should be used as the Table of Contents for the application. • Each applicant will be permitted to submit one application for this NOFA round. In the event of a joint application, the application will count towards the lead developer’s application limit. • All materials must be submitted electronically, as noted above. Forms/templates may be downloaded from https://bit.ly/2021NOFA
• Completed applications should be uploaded to https://bit.ly/2021NOFA_Submit, no later than 5:00 p.m. on November 19, 2021. Applications received after the deadline will not be considered.
• The Housing Authority will evaluate applications in accordance with the established Evaluation Criteria. Applications that are deemed substantially incomplete may be rejected. • Applicants will be ranked in accordance with the score received using the Evaluation Criteria. • Applicants will be notified of the results of the evaluation no later than February 2022. • Once the staff review is completed, the top scoring application(s) will be presented to the Housing Authority Board of Commissioners and final funding approval will be made in spring 2022.
• Once funding is approved by the Housing Authority and the developer has secured its remaining gap funding sources, staff will draft loan documents for review by the developer and the City Attorney. All items required at this stage must be submitted and approved by the Housing Authority before the loan can close. Construction may not start until all required items have been received and approved, and the Housing Authority has issued a Notice to Proceed. • A loan award is not final until a loan agreement signed by both the Housing Authority and the borrower that spells out all required terms and conditions of the loan is signed.
Recommendation for approval from staff does not constitute an award of a loan.
2.0 Requirements
The Housing Authority provides financial assistance to developers of lower income housing. The Housing Authority requirements are generally consistent regardless of the original source of funding. However, for certain requirements, one source of funds may allow greater flexibility than others. Applicants should assume that federal requirements will apply. If the use of federal funds creates a significant feasibility problem, this should be explained in the application cover letter.
2.1 ELIGIBILITY
2.1.1 Eligible Applicants
Applications will be accepted from non-profit and for-profit organizations, joint ventures, or partnerships that serve low-income households, and those experiencing homelessness.
Exhibit 1
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2.1.2 Eligible & Ineligible Activities and Costs
Eligible Activities and Costs
Funds from this NOFA may be used for the following activities and costs, including but not limited to:
• Construction and/or permanent financing for the acquisition, pre-development, and/or rehabilitation, and new construction of affordable rental housing • Temporary Relocation costs
• “Hard” costs of construction and/or rehabilitation of housing • “Soft” costs associated with the acquisition (including pre-acquisition due diligence costs), financing fees and costs and/or residential rehabilitation, including marketing costs, appraisals, architect and engineering fees, building permit and impact fees, developer/applicant fees, construction management, financial consulting, environmental assessments and reports, legal and accounting expenses, title insurance, purchase costs, holding costs associated with the property such as taxes, insurance and debt service, option fees (to be repaid no later than the date of the purchase of the property), property inspections, capitalized replacement reserves. • Mixed-use projects (containing both residential and non-residential space) are eligible.
Generally, living space should make up the majority of the development. In any case, only the affordable housing portion of the project will be assisted and commercial costs need to be split out from the residential costs.
Ineligible Activities and Costs
Funds from this NOFA may not be used for the following activities and costs, including but not limited to:
• Luxury/higher-end features such as granite countertops, high-end stainless-steel appliances, and swimming pools should be avoided because such features contribute to the funding gap.
Instead, developer/owner/applicants are encouraged to design projects with modest design and features;
• Non-residential uses such as commercial space or off-site improvements • Permanent Relocation
• Resident Services costs (upfront or ongoing)
• Operating reserves
• Furnishings
2.2 LOAN TERMS AND UNDERWRITING
Loan terms/underwriting are subject to change by the Housing Authority at its sole discretion. The Housing Authority reserves the right to impose such additional and/or revised conditions in the final documentation of the transaction as may be approved by the Housing Authority and as are reasonably necessary to protect the interests of the Housing Authority and the City and fulfill the intent of this NOFA. Additional details are outlined below in Table below. If loan terms other than those listed below are sought for a project, the cover letter must explicitly state the requested terms with a detailed explanation of the reasons you are requesting such terms. Such requests are granted at the sole discretion of the City and Housing Authority.
Exhibit 1
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Table 1. Loan Terms
Affordability
Term Restricted units must remain affordable for a minimum of 55 years.
Appraised Value Purchase price (land and improvements) must not exceed the property’s appraised value.
Cash Out
Any refinances that result in cash out to the borrower or related entity shall be evaluated by the Housing Authority and may result in additional underwriting requirements and be subject to a third-party financial analysis.
Closing Costs
Borrower shall pay all escrow, title and closing costs, including, without limitation, paying for an American Land Title Association lenders policy for the Housing Authority loan, with endorsements acceptable to the Housing Authority, ensuring the Housing Authority loan lien priority, as referenced in this NOFA.
Contingency
Fifteen percent of the Housing Authority’s loan amount will be withheld as contingency and will be paid upon construction completion, as applicable, and once an unconditional lien release from the general contractor and subcontractors is received by the City. This contingency will be reduced by any project cost savings.
Cost Savings
If there are any cost savings, improved debt, or improved tax credit equity pricing, then such funds will be used first to make an adjustment to the total tax credit allocation as may be required by the California Tax Credit Allocation Committee (CTCAC).
Thereafter, 50 percent of the excess sources/cost savings will be applied toward the reduction of the Housing Authority’s loan. The borrower shall submit the final tax credit cost certification to the Housing Authority for its review and approval prior to the final payment being released.
Debt Coverage
Ratio
Minimum of 1.15.
The Housing Authority will review the proposed financing structure and operating pro forma to determine the development’s feasibility during the affordability period. Projects proposing the use of Low-Income Housing Tax Credits shall demonstrate financial feasibility for a minimum 17-year term.
Developer Fee
Because the developer fee is paid out of development costs and contributes to the financing gap:
• Developer/applicant fee payments for tax-credit projects shall be in accordance with lender and investor requirements.
• For developments requiring relocation of residents, final payment of developer fees will not be made until the Housing Authority verifies that tenant relocation has been completed in full compliance with all tenant relocation laws. The Housing Authority, at its sole discretion, will analyze projects requiring any type of relocation on an ad hoc basis.
• Projects proposing the use of Low-Income Housing Tax Credits: Deferred developer fee must be paid off by year 15.
Due Diligence
(post-award)
If the project is selected, the following are to be provided at borrower’s expense post - award (eligible expense to be reimbursed by loan proceeds):
• Phase I/II Environmental Reports
• National Environmental Policy Act (NEPA) Environmental Assessment (if required) • Prevailing Wage Consultant/Monitor (federal prevailing wage may be required with a HOME funding allocation)
• Permanent and Temporary Relocation Plan (for occupied units and/or businesses); Relocation Consultant (if required)
• Third-Party, Line-by-Line Hard Cost Budget (must be submitted 60 days before financing close)
• Third-Party Construction Review
• Third-Party Borrower capacity review
Exhibit 1
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Fee
Fees to the Housing Authority include (these fees can be reduced by loan proceeds):
• Underwriting Fee. A flat underwriting fee in the amount of $40,000 will be charged for each project as reimbursement of the Housing Authority’s costs related to underwriting and issuing the loan. This must be included in the total development cost of a proposed project and is to be paid at close of escrow and/or at loan closing.
• Legal Fee. The Housing Authority charges a legal costs fee for document preparation and review that must be included in the total development cost of a proposed project. Current Housing Authority legal fees are $25,000 and are to be paid at the close of the escrow (additional $2,500 for City Attorney fees on 4 percent tax-exempt Multifamily Housing Revenue Bond projects). • Compliance Monitoring Fee. Compliance monitoring fees must be incorporated into the operating pro forma. Borrower will pay the fee in accordance with the City fee schedule. Current annual fees are as follows:
o $201 per monitored unit
• Third-Party Construction Review Fee. The Housing Authority may require a third- party review of the construction costs/budget to determine the reasonableness of construction hard costs, post award. The third-party reviewer will be selected by the Housing Authority and paid for by the borrower. Current fees are up to $12,500 and are to be paid at close of escrow.
Financing Gap
The borrower will cover any financing gap that arises after the Housing Authority underwriting, with its equity, its developer fee, and/or other non- Housing Authority sources, all of which shall be subject to the approval of the Housing Authority in its sole and reasonable discretion.
General
Contractor
The Construction Contract shall be competitively bid to at least three qualified General Contractors or three qualified subcontractors for each major trade involved in the construction of the Project. Contracts shall be awarded to the lowest most qualified and responsive bidder (affiliated General Contractors are allowed). The General Contractor is subject to Housing Authority approval. Negotiated contracts are prohibited, and work must be bid down to all subcontractors.
Insurance
The borrower shall at all times during the term of the loan maintain General Liability and Property Insurance in a form acceptable to the City and the Housing Authority and approved by the City’s General Counsel. The City and the City of National City Housing Authority shall be listed as additional insureds for General Liability Insurance and Property Insurance, and the City and the City of National City Housing Authority shall be endorsed as a loss payee of the Property Insurance.
Interest 4 percent simple interest
Limited
Partnership Fee
Limits (Tax
Credit Financed
Projects)
If applicable, year 1 limited partnership fees shall be capped at $25,000. Partnership fee increases will be capped at 3 percent annually. Unpaid General Partner fees shall not accrue. The Housing Authority will require the Limited Partnership Agreement to include this requirement.
Loan Amount Negotiable
Exhibit 1
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Loan
Disbursements
Disbursement shall be upon submittal and approval of eligible costs. Disbursement schedule shall be as follows, if the project is tax credit financed:
• Up to 75 percent at escrow closing;
• 10 percent at 50 percent of completion;
• 10 percent upon project completion;
• 5 percent (contingency) upon conversion to permanent loan.
The Housing Authority Executive Director, is authorized to modify the loan disbursement schedule in his/her sole reasonable discretion, for good cause shown. Loan proceeds are disbursed for work completed upon Housing Authority approval of payment requests in a form approved by the Housing Authority. Verifiable documentation of expense must be submitted with all payment requests.
Loan Term
Rental Projects
55-year minimum
Ownership Projects
4-year minimum
Loan Payments
Regularly scheduled payments from amortized payments or residual receipts are required. • Amortized loans shall be repayable for a maximum term of 55 years at 4 percent simple interest with the first payment due at the end of the first calendar year after project completion.
• Residual receipts loans shall be repayable for a maximum term of 55 years at 4 percent simple interest with the first payment due at the end of the first calendar year after project completion.
• All principal and interest shall be due and payable concurrently with any sale, transfer, conveyance or cash-out refinancing of the property. The Housing Authority’s portion of residual receipts will be:
If no other public lenders:
o Years 1-55: 50 percent of residual receipts to the Housing Authority If other public lenders:
o Proportionate split of residual receipts
The Housing Authority defines residual receipts as the net cash flow of the development after specified expenses and must pay debt service.
The standard payment formula is the lesser of the amortized payment or 50 percent of residual cash flow, with a minimum payment of one-half of estimated first-year residual cash flow starting at the end of the first year after project completion.
In the event that the project loan is rolled over into direct homeowner assistance, the assistance loan(s) must be repaid with interest on the sale or transfer of the unit, unless the unit is resold to a qualified low-income household. The project must ensure that there is a deed restriction or other legally enforceable retention mechanism to ensu re compliance.
Loans for ownership projects are provided at 4 percent simple interest for a minimum term of 4 years.
Managers’ Units Experienced on-site property management is required. The number of managers’ units must be in conformance with lender and local, state and federal requirements.
Maximize Other
Funding Sources
The borrower is required to pursue the maximum available financing from other sources. If awarded, these other sources of funds would be used first to pay Housing Authority - approved cost overruns and/or reductions in estimated funding. The remaining additional proceeds, as allowed by CTCAC, would reduce the Housing Authority’s permanent loan.
Exhibit 1
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Maximum Per-
Unit Total
Development
Costs (TDC)
$495,000
Operating
Expenses
As required by CTCAC.
https://www.treasurer.ca.gov/ctcac/2021-operating-expense-minimums.pdf Property
Manager Fee
The borrower’s proposed property manager’s fee must be reasonable and is subject to the Housing Authority approval.
Purchase Option
Tax Credit Structured Projects must provide the Housing Authority with the first option to purchase at the end of the 15-year tax credit compliance period, or at the end of the Housing Authority loan term, whichever is first.
Recourse The Housing Authority’s loan will be recourse until the timely completion of the construction, after which it will become non-recourse.
Reserves
Allowable reserve categories are limited to the following: Replacement Reserves, Operating Reserve, and a Rent Up Reserve. The Housing Authority, in its sole discretion, reserves the right to require adjustments to any of the allowable reserves.
Replacement Reserves and Operating Reserves must be consistent with CTCAC requirements and/or with the requirements of the most restrictive funding source proposed. The Housing Authority, in its sole discretion, reserves the right to require higher operating or replacement reserves.
Replacement reserves for multifamily rental projects shall not exceed $300.00 per unit, per year.
Operating Reserves shall be no less than three (3) months and no more than s ix (6) months of operating expenses and debt service.
Rent-up reserves shall not exceed $300.00 per unit. Any funds remaining in the rent -up reserves account will be transferred to the replacement reserve account. Prior to the loan closing, the borrower will be required to document to the Housing Authority’s satisfaction any funds disbursed from this account.
All unexpended funds remaining in project reserve accounts must remain for project use during the term of the Housing Authority’s loan or the project Extended Use Period, whichever is longer.
The limited partnership agreement must include a provision addr essing the terms and conditions for disbursement from the reserve accounts that specifically states that upon the transfer of any ownership interest or at the end of the compliance period, whichever is earlier, any funds remaining in the reserve accounts must remain with the project for the term of the Housing Authority’s loan or the Extended Use Period, whichever is longer.
Existing developments applying for tax credits and/or refinancing will be required to show existing reserves as a source.
Any amounts greater than these limits require a detailed explanation by the developer and prior approval by the Housing Authority.
Security The Housing Authority’s loan shall be evidenced by a Loan Agreement, Promissory Note and Deed of Trust.
Exhibit 1
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Underwriting
Vacancy Rate
Assumption
5 percent
2.2.1 Limitations on Swapping Awards
With bond allocations now being competitive, it is critically important that funds are awarded to projects that are ready to move forward in an effort to align limited Housing Authority resources with timely unit production to address the affordable housing shortage in National City.
To ensure the efficient use of program funds, applicants seeking to change funding sources, specifically from a 9 percent tax credit to a 4 percent tax credit or vice versa, must obtain prior written approval from the Housing Authority. Applicants will be required to submit a revised pro forma and timeline for execution, as well as the rationale for the request to change funding or other needed documents as the Housing Authority deems needed in its sole discretion to evaluate the project.
2.2.2 Loan Commitment Reservation Period
Upon issuance of an award letter, funds will be reserved for 24 months. Time extensions may be granted upon successful funding award of other funders, at the sole discretion of the Housing Authority. The Housing Authority reserves the right to cancel its fund reservation if the Housing Authority loan has not closed escrow/commenced construction by the end of the 24th month.
Fund reservation time extensions may be granted at the sole discretion of the Executive Director of the Housing Authority, or designee. If applicable, the Housing Authority loans are contingent upon the applicant obtaining commitments from all other necessary sources of funding. The Housing Authority reserves the right to cancel fund reservations for developments not proceeding in compliance with the timeline as proposed by the applicant in their loan application.
2.2.3 Loan Termination or Reduction
Loan commitments or agreements may be reduced or terminated if the Housing Authority determines, in its sole discretion that:
a. One or more conditions of the commitment, agreement, due diligence items or disbursement terms have not been, or will not be met;
b. The borrower has violated program guidelines;
c. Anticipated project financing sources are not awarded, and no alternative financing plan acceptable to the Housing Authority is presented; or
d. Project Development expenses are less than projected. In this case, the amount of the loan will be reduced to an amount required to meet actual expenses.
This is not an exhaustive list and the Housing Authority reserves the right in its sole discretion to terminate or reduce the loan amount.
2.3 AFFORDABILITY TARGETING
See Attachment A (Area Median Income Limits for San Diego County, CTCAC Rent Limits, Monthly Utility Allowances). Maximum rents must be adjusted downward by an allowance for tenant-paid utilities in accordance with the HUD Utility Schedule Model where instructions may be found at www.huduser.org/portal/resources/utilallowance.html.
Exhibit 1
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The Area Median Income (AMI) range for household income can be higher than the rent or sales price restrictions to ensure a range of household income levels are served. Rents and tenant incomes will be annually reviewed for compliance by the Housing Authority.
2.3.1 Minimum Affordability – Rental Projects
Proposed projects must provide units (excluding managers’ units) affordable to low-income households as follows:
• One hundred percent (100%) of units funded with Housing Authority funds must be restricted as affordable at or below 60% AMI.
• Rents for affordable units must be the lesser of the designated restricted rent limit or ten percent (10%) below market rate within a 1 mile radius. • At least twenty percent (20%) of the affordable units must have annual rents plus utility allowance of no more than 30% of 30% AMI, and be reserved for very low income households earning less than 30% AMI.
• No more than fifteen (15%) of the affordable units may have annual rents plus utility allowance between 30% of 80% AMI and 30% of 120% AMI (Moderate-Income Units).
Priority will be given to projects that exceed the threshold affordability minimums. Affordability restrictions apply for the full term of the regulatory agreement, regardless of whether another subsidy source continues to be available.
2.3.2 Minimum Affordability – Ownership Projects
• One hundred percent 100% of units funded must be restricted as affordable. • The affordable units must have an average affordability level of 100% AMI or less. For example, in a 26 unit project, 10 units could be targeted to households at 120% AMI, 10 units at 80% AMI, and 6 units at 100% AMI.
• Priority will be given to projects targeting some units to households at 80% of AMI or below. • Households with incomes up to 120% of AMI are eligible for assisted units, provided the average affordability level of the affordable units is 100% of AMI or less (see example provided above).
See Attachment B for Affordable Home Prices.
2.4 FINANCING GUIDELINES
2.4.1 Minimum and Maximum Loan Amounts
• The maximum Housing Authority loan amount is forty percent (40%) of the total residential development cost of the project’s affordable units (those units subject to long term affordability restrictions).
• If applicable, the value of any Housing Authority land donations will be counted as part of the maximum allowable subsidy total.
• Please round requested loan amounts to $1,000 increments. • Other sources of appropriate financing must be identified, but not necessarily committed, at the time of application. Projects will be reviewed to ensure that only the minimum level of Housing Authority subsidy needed will be provided. All other sources of funding must be committed before closing of the Housing Authority loan.
Exhibit 1
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2.4.2 Construction Contingency
A minimum of 15% construction cost contingency for new construction and for rehabilitation projects is required.
2.4.3 Maximum Per-Unit Total Development Costs (TDC)
There is a maximum residential development cost of $495,000 per unit for projects receiving funding through this NOFA. The Housing Authority reserves the right in its sole discretion to reject any and all applications if total development costs, as provided in an application’s development budget, exceed this amount. The Housing Authority reserves the right to increase the limit, however, in exceptional circumstances where the Housing Authority, in its sole discretion, determines that such increase will contribute to the Housing Authority’s goal of creating additional housing, including but not limited to situations where underground parking is being proposed.
2.5 DEVELOPER FEE LIMIT
The maximum Developer Fee shall be the same as the maximum allowed under the State Tax Credit Allocation Committee regulations for those projects that have been or will be awarded Low-Income Housing Tax Credits, as adopted at the time this NOFA was issued. For projects not receiving Low- Income Housing Tax Credits, the maximum Developer Fee shall be the same as the maximum allowed under the State of California Housing and Community Development 2017 Uniform Multifamily Regulations.
3.0 Evaluation Criteria
Complete applications will be scored in the following categories. Maximum points in each category are noted.
Please note that points will be rounded to the nearest ¼ point. Projects scoring less than 50% of possible points are unlikely to be awarded funding. In all cases, points are awarded for exceeding, rather than meeting, the threshold requirements for the category.
The discussion following contains a more detailed description of the criteria.
Criteria Points Available
1. Readiness 45
a. Indicated and Sufficient Evidence of Funding Sources b. Innovative Financing
c. Leveraging
d. Funding Commitments
e. Site Control and Anticipation of Entitlements
2 8
10 10
15 2. Developer Experience and Capacity 35
a. Project History
b. Developer Experience, Capacity & Staffing
c. Developer Financial Strength
d. Strength of the Development Team
e. Bonus Point Category
10 10
5 4
6 3. Project Budget 15
4. Amenities & Community Space 5
Exhibit 1
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Criteria Points Available
5. Location 25
a. Geographic Equity
b. Neighborhood Revitalization
c. Proximity to Nearby Amenity: Public Transit
d. Proximity to Nearby Amenity: School
e. Proximity to Nearby Amenity: Community Center or Public Park f. Proximity to Nearby Amenity: Grocery Store
5 5
5 2
4 4
6. Target Population and Project Attributes 15
a. Income Targeting
b. Unit Size
10 5
7. Collaboration & Planning 15
a. Local Planning Efforts
b. Community Engagement
c. Addressing Community Needs
4 6
5 Total Points Available 155
3.1 READINESS (MAXIMUM 45 POINTS)
a. All sources and uses of funds are clearly indicated and sufficient evidence of funding availability and/or commitments are included (2 points). b. Innovative Financing – Narrative description of the financing approach to fund the project (8 points).
i. Describe the Development Team’s financing approach to the project and present preliminary financing plan that shows a feasible project consistent with current Housing Authority underwriting practice.
ii. Include the Team’s process for structuring the project and controlling development costs. Including cost fluctuations due to COVID (the pandemic) iii. Include innovative strategies intended to minimize Housing Authority’s projected capital gap financing.
iv. Applicants must provide a narrative that describes any innovative (i.e., non- standard, routine or commonly used) direct or indirect cost-cutting strategies relevant to overall development, construction or operating expenses. c. Leveraging – Degree to which outside funding will be pursued (10 points).
The Housing Authority’s federal, state and local capital funds are intended to fill the gap in a project’s financial structure after all other available sources of housing capital funds are utilized. Such “other available funds” may include, but are not limited to: private bank loans, equity from the sale of low-income housing tax credits, owner equity, sale of tax-exempt Multifamily Housing Revenue bonds, state and federal funding, grants and donations, and other public and private sources of funds. Projects must demonstrate that they have applied (or will apply within the next 90 days after application submission) for additional sources other than senior debt, tax credits and bonds and Housing Authority gap financing. Applicants must provide the following supporting documents, including but not limited to:
i. Copies of award letters, where applicable,
Exhibit 1
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ii. Letter of Intent (from the tax credit investor),
iii. Term Sheet from bank,
iv. If the project has not yet applied to other available funds, but will apply within the next 90 days after submission to this NOFA, this must be included in the Project Timeline.
The above list provides examples and is not an exhaustive list. d. Funding Commitments – degree to which outside funding has been committed (10 points).
i. Points will be given based on non-Housing Authority financing currently committed to the project, as follows:
Leveraged Financial Resources as a
Percent of Total Development Cost
Greater than:
Points
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 2
3 4
5 6
7 8
9 10
e. Site Control and Anticipation of Entitlements – Applicant has site control, and the project is anticipated to receive entitlements and community support by showing one of the following (15 points):
i. Entitlement Application Submittal to City of National City or Preliminary Review Request. Applicants must provide proof of submission, such as a copy of the invoice from the City of National City.
ii. Entitlement Approvals or Confirmation from City of National City that project may proceed with staff approvals. Applicants must submit a clear and legible scanned copy of the approved development permit, variance, or other discretionary approval from the City. Should the project be ministerial/by right, the applicant shall submit evidence of this by providing verification of zoning for the parcel(s) and the APN’s, and a parcel map. The Housing Authority may request additional documentation
3.2 DEVELOPER EXPERIENCE AND CAPACITY (MAXIMUM 35 POINTS) f. Project History (10 points)
i. Points are awarded for completing an affordable housing projects on time and within budget within the last ten years (by the Developer, not other team members). 2 points will be awarded for each completed project (up to 6 points). ii. Points will be given for completing a project similar to the proposed project by the Developer within the last ten years. 2 points will be awarded for each additional similar project (up to 4 points).
Exhibit 1
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iii. If the developer is a joint venture, projects will be scored based on the experience of the lead developer. Where partners have approximately equal participation, the individual scores of each partner will be averaged. g. Developer Experience, Capacity & Staffing (10 points) i. Points are awarded based on evidence that the staff, including the Project Manager and supervisory staff, proposed to work on the current proposal have the necessary experience and that the organization has adequate staffing capacity to undertake the project.
ii. Developer/Applicant Experience: Must detail demonstrated, successful experience in developing affordable rental housing, successful operation of completed developments, capacity to perform the administrative, managerial, and operational functions to oversee the work necessary to successfully complete the proposed development. The Housing Authority reserves the right to limit the number of projects funded and under construction. The Housing Authority reserves the right to require third-party review of the developer/applicant’s experience and capacity.
iii. General Contractor Experience: Must include a resume (of the general contractor) that demonstrates successful experience in projects that are similar in type, scale and complexity to proposed project.
iv. Construction Management Experience: Must include a resume of the construction manager that demonstrates the necessary construction management experience to complete the proposed multifamily rehabilitation project. At a minimum, the resume must include the length of time in the field of construction management of multifamily housing and a list of projects, tasks and or experiences, including occupied in-place rehabilitation that demonstrate the necessary construction management experience to complete the proposed renovation project.
v. Project Management Experience: Must include a resume of the project manager that demonstrates a capacity to oversee the project. The resume must include the length of time managing affordable housing, and specific examples of projects managed, tasks and or experiences that demonstrate the necessary project management experience required to complete the proposed project. vi. Property Management Experience: Must include a resume of the project manager that includes, but is not limited to the following details:
• A list of properties currently managing - categories (supportive, large family, etc.) of affordable housing managed by subject organization, • Examples of experience with specific affordable housing finance and corresponding regulatory programs to date, and\
• Subject organization experience providing property management and or regulatory compliance and reporting services to projects similar to that of the proposed project.
h. Developer Financial Strength (5 points)
Exhibit 1
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i. Points are awarded based on evidence that the Developer is financially sound and will be able to sustain the costs of effectively following through with the current proposal, based on review of current interim and previous years audited financial statements.
ii. Provide audited financial statements for the development team for the past two years. If audited financial statements are not available, please submit evidence of the development team’s financial capacity to develop the proposed project (including income statements, balance sheets, statement of owner’s equity, and cash flow statements, etc.) for the three most recent years. i. Strength of Development Team (4 points)
i. Points are awarded based on the provided experience of the Development Team members (Developer Principals, Property Manager, Attorney, Architect, Financial Consultant, etc.) ..
j. Bonus Point Category (maximum of 6 points)
i. 2 points will be awarded if within a joint venture partnership, the less experienced partner is allowed first right of refusal to purchase the land and/or building after the 15-year tax credit compliance period ii. 2 points will be awarded for projects that align with Housing Authority’s goals, objectives, and actions outlined in the Housing Authority’s Strategic Housing Plan and 2021-2029 Housing Element
iii. 2 points will be awarded for committing ground floor commercial space at below market rates (e.g., non-profit organizations and arts & cultural users)
3.3 PROJECT BUDGET (MAXIMUM 15 POINTS)
k. Project budget is complete and anticipated development costs are reasonable.
3.4 AMENITIES & COMMUNITY SPACE (MAXIMUM 5 POINTS)
l. The project has adequate open space and community serving areas such as a computer room, social services office space, bike storage, and community room with kitchen.
3.5 LOCATION (MAXIMUM 25 POINTS)
Projects will be awarded a maximum of 25 points. Distance must be measured using a standardized radius from the development site to the target amenity unless that line crosses a significant physical barrier or barriers. Such barriers include highways, railroad tracks, regional parks, golf courses, or any other feature that significantly disrupts the pedestrian walking pattern between the development site and the amenity. The radius line may be struck from the corner of development site nearest the target amenity, to the nearest corner of the target amenity site. However, a radius line shall not be struck from the end of an entry drive or on-site access road that extends from the central portion of the site itself by 250 feet or more. Rather, the line shall be struck from the nearest corner of the site’s central portion. Where an amenity such as a grocery store resides within a larger shopping complex or commercial strip, the radius line must be measured to the amenity exterior wall, rather than the site boundary. The resulting distance shall be reduced in such instances by 250 feet to account for close-in parking. m. Geographic Equity: (5 points)
Exhibit 1
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i. 5 points will be awarded for rental projects located in census tracts with percentage of low/mod income persons at or above 51%, as shown in Attachment C (Map of Low and Moderate-Income Areas in National City). n. Neighborhood Revitalization: (maximum 5 points)
i. Points will be awarded to projects which include or combine the following, as evidenced in the Neighborhood Narrative and Revitalization Description of the Application.
• Contribute to an existing or planned pattern of targeted redevelopment such as a Specific Plan Area or Priority Development Area (housing or commercial development, streetscape improvements, etc.) occurring within 1/4 mile of the project site.
o. Proximity to High-Quality Transit: (maximum 5 points) i. Applicant provides a map with pin drop of the property to the transit in Google Maps, using walking directions.
ii. Projects will be awarded 5 points if they are within 0.5 miles of a bus station, light rail station, or bus stop that provides service at least every 30 minutes during the hours of 7-9 a.m. and 4-6 p.m., Monday through Friday. iii. If frequency and hours cannot be met but the project is still within 0.5 miles, 3 points will be awarded.
p. Proximity to School: (2 points)
i. Applicant provides a map with pin drop of the property to the identified school(s) in Google Maps, using walking directions.
ii. Projects will be awarded 2 points if they are within 0.5 miles of a school. q. Proximity to Community Center or Public Park: (maximum 4 points) i. Applicant provides a map with pin drop of the property to the identified community center or public park in Google Maps, using walking directions. ii. Projects will be awarded 2 points if they are within 0.5 miles of a public library or community center that is open at least 5 days a week to the general public. iii. Projects will be awarded 2 points if they are within 0.5 miles of a public park. r. Proximity to Grocery Store: (maximum 4 points)
i. Applicant provides a map with pin drop of the property to the identified full- scale grocery store in Google Maps, using walking directions. ii. Projects will be awarded 4 points if they are within 0.25 miles of a full-scale grocery store or include a food market as part of the development. iii. Projects will be awarded 2 points if they are within 0.50 miles of a grocery store.
3.6 TARGET POPULATION AND PROJECT ATTRIBUTES (maximum 15 points) s. Income Targeting: (10 points)
i. Points are awarded for rental projects providing more low income rental units than the threshold requirement. For the threshold requirement, 20% of units must be set aside serving extremely low income households with rents no more than 30% of 30% of AMI.
• 2 points will be awarded for each additional full one-percent of affordable units with restricted rents at or below 30% of 20% of AMI.
Exhibit 1
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• 1 point will be awarded for each additional full one-percent of affordable units with restricted rents at or below 30% of 30% of AMI. t. Unit Size: Number of larger units (5 points)
i. Points are awarded for the number of units provided with 2, 3, or more bedrooms. Family projects are required to include a threshold minimum 15% of 3+ bedroom units.
ii. ½ point will be awarded for each 20% of units that have 2 bedrooms. iii. 1 point will be awarded for each additional 5% of units with 3 bedrooms or larger (above the minimum threshold).
3.7 COLLABORATION AND PLANNING (MAXIMUM 15 POINTS)
u. Local Planning Efforts (4 Points)
i. 0 points will be awarded if there is no identified local plan or planning effort that the Project implements.
ii. Up to 2 points will be awarded if there are vague answers regarding local plans or planning efforts being implemented.
iii. Up to 4 points will be awarded if there is explicit detail on integration of local planning efforts that include multiple program goals (e.g., housing, active transportation, community connectivity, transit oriented development) in the Project.
v. Community Engagement (6 points)
i. 0 points will be awarded if CBOS and residents were not informed of or involved in Project development. No community outreach plan is laid out for future engagement.
ii. Up to 2 points will be awarded if CBOs and residents were informed of, but not involved in, Project development. Plan is laid out for future engagement, but provides no or minimal details.
iii. Up to 4 points will be awarded if CBOs and residents were brought into Project development process after Project component selection. Plan is laid out for future engagement but does not consider how to ensure broad CBO or resident participation.
iv. Up to 6 points will be awarded if CBOs and residents were involved from initial visioning of the Project, and a clear, detailed plan is laid out for how they will be engaged as Project moves forward. There were strong efforts made by the applicant to create opportunities for involvement accessible to all Project Area residents, including the area’s most vulnerable populations. w. Addressing Community Needs (5 points)
i. 0 points will be awarded if no engagement was conducted to identify community needs was performed. Community needs beyond housing and transportation are not addressed.
ii. Up to 1 points will be awarded if no or limited engagement was conducted to identify and meet community needs. Community needs beyond housing and transportation are not addressed.
Exhibit 1
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iii. Up to 3 points will be awarded if engagement was conducted to identify community needs, and requested community input on how to meet those needs.
iv. Up to 5 points will be awarded if an in-depth engagement process was conducted to identify community needs, and incorporated community input on how to meet those needs.
4.0 Application
4.1 COVER LETTER
The proposal must include a cover letter, limited to two pages, on official letterhead that provides a description of the project. The letter must also provide contact information for the person with authority to negotiate on behalf of the development team. The Applicant must certify that the proposal response and exhibits are true and correct at the time of submittal. An unsigned and/or undated submission will not be considered.
The cover letter should include but is not limited to the following:
• Summary Information
o Amount requested
o Number and size of units (number of bedrooms)
o Target population served
o Location
o Total Development cost
• Site Information
o Current use of site
o Distinguished features
o Any environmental issues
• Physical Characteristics
o Type of construction
o Number of stories
o Location
• Amenities and Services
o Common facilities and amenities
o Resident service programs (if included)
• Funding Type Limitations
o If the use of federal funds creates a significant feasibility problem, this should be explained in the application cover letter.
Application Checklist Item(s): Narrative Cover Letter
4.2 APPLICATION
An application form is provided as Attachment E and should be included in your application along with the following:
Exhibit 1
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4.2.1 Application Information & Project Summary
If the Applicant is not acting as the developer, please provide all of the requested information for the developer as well as for the Applicant. If the developer involves multiple entities, please provide all the requested information for each entity, and identify the entity that will serve as the “lead” organization.
Include a summary of the project including project name, site address, existing conditions, project’s housing units mix, and other components identified in the application form.
Application Checklist Item(s): Application Information & Project Summary in Application Form
4.2.2 Development Team Members Resume & Capacity
Include resumes of development team members. Resumes should provide the name, address, contact person, telephone number, and e-mail address for members of the proposed project team. Identify the developer principals and project manager, architect, civil engineer, contractor, construction manager, property manager (if applicable), owner (if different than developer) and social services provider (if applicable). If known, identify the lenders, attorneys, accountants, subcontractors, and consultants.
Resumes of the development team members should also include detailed description of experience.
Include Attachment H (Developer Capacity Worksheets) for the development team members. These worksheets should provide name of project staff, their role in other current or planned developments, years of relevant experience, and years with this developer.
Include an organizational chart the partnership that shows all the relative equity relationships of the corporate entities that comprise the overall organization.
Application Checklist Item(s): Development Team Resumes & References, Developer Capacity Worksheets, Organizational Chart
4.2.3 Applicant Experience and References
Provide a description of experience of the development team in the following form:
• At least one project and no more than five projects that are similar to the project being proposed. See Attachment F for Developer Experience Worksheets. The following information should be provided for each project:
o Site location;
o A narrative description of the project’s characteristics; o Number of units in the project;
o The total project costs;
o The income and affordability restrictions that were imposed on the project; o Identification of any public financial assistance that was provided to the project; o The role the Applicant played in the project; and
o Contact information for a representative of the jurisdiction in which the project is located.
Application Checklist Item(s): Developer Experience Worksheets Exhibit 1
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4.2.4 Site Control and Demonstration of Value
Include evidence of site control, and provide a real estate appraisal or current tax documentation that substantiates the value of the property. Applicants must have control of the project site through one of the following methods:
• Fee title,
• Option to purchase,
• Land sales contract,
• Leasehold with development provisions,
• Purchase and Sale Agreement, or
• Any other enforceable instrument.
Application Checklist Item(s): Evidence of Site Control, Real estate appraisal or current tax documentation that substantiates the value of the property
4.2.5 Zoning
At the time of application, applicants must demonstrate that the project’s zoning will permit the scope of development as proposed. If the project’s zoning will not permit the scope of development proposed, the applicant must demonstrate to Housing Authority’s satisfaction that all discretionary land use approvals can be granted within 180 days of the application submittal.
Applicants must:
• locate the project site on the most recent City zoning map; and • provide a copy of the Verification of Zoning and Land Use Entitlement Approvals that is submitted for tax credit applications; or
• A zoning confirmation letter from the City; and/or
• Explain how you plan to obtain the necessary approvals within 180 Application Checklist Item(s): Project Zoning Map and Evidence of Entitlement Approvals
4.2.5 Tenant Relocation
If the project is occupied at the time of proposal submission, include a Tenant Relocation Plan. The developer is responsible for providing tenant relocation assistance should the proposed project require or result in the temporary or permanent displacement of current tenants. The Plan must include, at a minimum, the following:
• Total number of households in the project and number of households to be permanently or temporarily displaced.
• A list and description of all households to be temporarily or permanently displaced (include current address, name, household size, and ages of the household members). • Circumstances under which the displacement is necessary. • Description of assistance to be provided and a schedule for assistance. • Source(s) of funds to be used for relocation assistance. • Procedures/methods by which those being displaced will be advised of their rights and available assistance.
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
Page | 24
Application Checklist Item(s): Tenant Relocation Plan (if applicable)
4.2.6 Evidence of Construction Scope and Cost Estimate
Applicants must provide:
a. A detailed Scope of Work (SOW). The SOW for projects with rehabilitation must include areas that need assistance, especially all health and safety issues; and b. A Third-Party Cost Estimate that includes, at a minimum, the items identified in the SOW.
Application Checklist Item(s): Detailed Scope of Work and Third-Party Cost Estimate
4.2.7 Commercial Space Funding
Housing Authority capital funds cannot be used to fund commercial/retail space. Applications must show non-Housing Authority sources of funds for any commercial space in the project (including acquisition cost and/or rehabilitation cost) on the project pro forma or state in the General Application narrative that Housing funds will not be used as a source for commercial/retail spaces.
Related application checklist Items: Pro Forma Analysis and/or Project Narrative
4.2.8 Other Funding Sources
Identify the other funding sources proposed to be used to pay for the project costs. Identify any funding sources that have already been committed to the project, funds for which applications have been submitted, and funds for which applications are anticipated to be submitted. Applicants should maximize the use of available state and county funding to reduce the subsidy needs from the city. The total funding sources, including the proposed loan, must equal the estimated development costs for the proposed project.
Application Checklist Item(s): Other Funding Sources Supporting Documentation
4.2.9 Project Timeline
Applicants must provide a timeline for the proposed project that includes the projected date of all major development benchmarks related to financing, entitlements, community approvals, construction, and lease up. If the development timing is anticipated to vary across several properties to be involved in the project, provide a development timing schedule for each property Application Checklist Item(s): Project Timeline in Application Form
4.3 PROJECT NARRATIVE
Provide a project narrative for the questions listed below. The project narrative is a word-processed document of not more than 10 single-spaced pages responding to the questions listed below. The document should be a font size of 10 with 1-inch margins. • Question 1 - The purpose and the scope of the project. • Question 2 - Identify the neighborhood the project will serve. o Include narrative about: The current uses of the project site and surrounding area; A general description of the neighborhood character including typical land uses; Local building construction type and condition.
o All appropriate land use designations must be satisfied prior to financing close.
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
Page | 25
• Question 3 - Describe how the proposed project will contribute to the overall enhancement and revitalization of the neighborhood.
o Specifically, discuss: How the proposed project will impact its immediate surroundings.
The Specific Plan Area or a Priority Development Area, identify the Area, if applicable.
How the proposed project will prevent the displacement of low-income residents. The average income of the census tract in which the project is located • Question 4 - Document neighborhood services (public transportation, schools, shopping, etc.). • Question 5 - Identify what local planning efforts the Project implements, and if applicable, describe what particular components of the Project are derived from a local plan. • Question 6 - Describe how the project aligns with the Housing Authority’s Strategic Housing Plan and 2021-2029 Housing Element
• Question 7 - Describe how community-based organizations and local residents have been meaningfully involved in the visioning and development of this Project. Explain in which stage(s) of the process community members and CBOs have been and will be engaged. Describe efforts to involve Disadvantaged and/or Low-Income Community residents, including how meetings were advertised and made accessible.
• Question 8 - Discuss the process and timing to receive entitlement approvals. If available, provide proof of entitlement.
• Question 9 - Describe the innovative strategies for the financing approach and processing for structuring the project and controlling development costs to fund the proposed project.
Application Checklist Item(s): Project Narrative
4.4 PROJECT VICINITY MAP
A map showing the project site is required. The map should include a conceptual site plan for a new construction project. The map should clearly delineate the project site boundaries, major cross streets, and surrounding neighborhoods.
Application Checklist Item(s): Project Vicinity Map and Conceptual Plans
4.4.1 Project Maps of High-Quality Transit and Community Services A map with pin drop of the property to the transit in Google Maps, using walking directions. A map with pin drop of the property, to the Community Services (school, community center or public park, full-scale grocery store) in Google Maps, using walking directions.
Application Checklist Item(s): High-Quality Transit Project Map and Community Services Project Map(s)
4.5 PROJECT PRO FORMA
Include a pro forma analysis for the proposed project. The pro forma analysis should include the following:
• Estimated Development Costs
o Include Direct, Indirect, and Financing Costs
• Estimated Annual Net Operating Income for 55 years
o Include monthly and annual revenue by income unit
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
Page | 26
o Include Annual expenses such as general operating expenses, property tax expense, reserves deposits
• Sources of Funds Statement
o Include Construction Period Financing Sources
o Include Permanent Funding Sources
Applicants should not include project base vouchers in the pro forma unless there is a standing commitment between applicant and the Housing Authority.
Application Checklist Item(s): Pro Forma Analysis
4.6 OUTREACH EFFORTS
Include an Outreach Plan and evidence that a minimum level of community outreach has been achieved or will be achieved. Applicants must contact neighborhood organizations in the vicinity of the proposed development.
The Outreach Plan should describe how you will build support for your project and address community concern, including a list of all individuals and organizations with whom you have met or will meet to discuss the project, and the approximate dates of each phase of the plan.
The evidence of community outreach plan can include the following:
• Copy of announcements of the meetings (flyers, advertisements, etc.) • Copy of the agenda for the meetings
• Copy of handouts or other information used, including reductions of material presented on easel boards
• Sign-in sheets from community meetings
• Minutes of the community meeting
Application Checklist Item(s): Outreach plan
4.7 NEIGHBORHOOD AND LOCAL GOVERNMENT SUPPORT
Include letters of support from local organizations and governmental entities within the area of the proposed project. The Housing Authority cannot provide a letter of support.
Application Checklist Item(s): Support Letters
4.8 PRELIMINARY MANAGEMENT AND MARKETING PLAN
A Preliminary Management Plan and Marketing Plan or Marketing and Sales Plan must be submitted in the application.
For rental projects, a Final Management and Marketing Plan will be required 180 days prior to construction completion and a Management Contract must be submitted to the Housing Authority 90 days prior to construction completion. The final Marketing Plan must be approved prior to beginning rent-up activities, including marketing flyers and application materials.
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
Page | 27
For ownership projects, the Final Marketing and Sales Plan must be approved prior to commencement of construction and marketing of units. Developers must include pre-purchase homebuyer counseling, offer post-purchase counseling for at least one year, and provide one year home warranties.
Application Checklist Item(s): Marketing Plan
4.9 MARKET DEMAND
Applicants must verify the market demand for the proposed housing by providing a brief market demand narrative and include market study, rental survey, recent sales comparables, or an alternative acceptable to the Housing Authority. The market demand narrative is a word-processed document of not more than 3 single-spaced pages for rental projects and 4 single-spaced pages for ownership projects responding to the questions listed below. The document should be a font size of 10 with 1-inch margins.
• Question 1 - Describe how the rent or sales price survey provided in the application demonstrates that there is a strong demand for the proposed project and how the project will ensure lease-up or sales on schedule.
• Question 2 - (Ownership projects) Provide an explanation of how you will ensure that homes will be in contract with a buyer within 6 months of construction completion. • Question 3 - Describe how the proposed development may impact demand for other existing affordable housing developments in the market area.
• Question 4 - Provide other evidence of need for the project, such as how the proposed project provides for needed housing as identified in the City of National City's 2021-2029 Housing Element, or other evidence of market demand.
All projects must also provide a market study or survey, as described below:
Ownership Projects: Provide comparable sales prices for recently sold homes within two miles similar in square footage and unit type to the proposed units, or provide a market study, that is no more than 1 year old. Applicants may include lists of recently sold homes from websites such as www.zillow.com or www.realestateabc.com (whichever site has the most recent sales), or local newspaper or other listings of recent home sales. Proposed prices should be sufficiently below market prices.
Rental Projects: A market study or rental survey must be submitted that is no more than 1 year old.
Rental surveys do not need to be completed by a third-party consultant and can be completed in lieu of a market study at the time of application. The rental survey should include a summary of the closest three affordable and three market rate comparables, including their distance from the project, population served, number of units by bedroom size, rent by unit size, service and on-site amenities.
Mixed Use Projects: In addition to the above, also provide:
• Evidence of demand for commercial/retail space and marketability of space, or at least half the commercial/retail space pre-leased;
• Information from brokers on vacancy rates, turnover rates, and market rents in the neighborhood;
• Evaluation of the neighborhood's retail environment and relative merits of the newly proposed commercial space.
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
Page | 28
If your organization maintains a waiting list of individuals interested in renting a unit from your organization, indicate how many persons or families are on the waiting list and how many of those persons or families are prequalified. In trying to meet local housing needs, the City adopted a local preference policy (Resolution No. 2016-38) that gives preference to applicant households that are currently residents of National City to the maximum extent allowed by law to rent new affordable housing development projects in the City of National City for the initial lease-up of all units restricted at or below 80% of AMI.
Application Checklist Item(s): Market Demand Narrative and Market Demand Evidence
4.10 APPLICANT FINANCIAL STATEMENTS/CAPACITY
Provide audited financial statements for the development team for the past two years. If audited financial statements are not available, please submit evidence of the development team’s financial capacity to develop the proposed project (including income statements, balance sheets, statement of owner’s equity, and cash flow statements, etc.) for the three most recent years.
Application Checklist Item(s): Financial Statements
5.0 Application Attachments
Attachment A – Area Median Income Limits for San Diego County, CTCAC Rent Limits, Monthly Utility Allowances
Attachment B – Affordable Home Price
Attachment C – Map of Low and Moderate-Income Areas in National City Attachment C – Map of Home Ownership Rates in National City Attachment D – Application Checklist
Attachment E – Application Form
Attachment F – Developer Experience Worksheets
Attachment G – Developer Capacity Worksheets
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
ATTACHMENT A – AREA MEDIAN INCOME LIMITS FOR SAN DIEGO COUNTY, CTCAC RENT
LIMITS, MONTHLY UTILITY ALLOWANCES
Table 2. Area Median Income Limits for San Diego County by Household Size (2021) Note: *Area Median Income listed above is for 2021, and new limits are released each year. To obtain updated information, go to the HUD Exchange and search for income limits for the San Diego area.
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
Table 3. California Tax Credit Allocation Committee 2021 Rent Limits for San Diego County
Source: California Tax Credit Allocation Committee 2021 Rent Limits Post 4/1/21+ Table 4. Monthly Utility Allowance
Source: Housing Authority of the City of National City Housing Choice Voucher Program
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
ATTACHMENT B – AFFORDABLE HOME PRICE
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
ATTACHMENT C – MAP OF LOW AND MODERATE-INCOME AREAS IN NATIONAL CITY
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
ATTACHMENT D – APPLICATION CHECKLIST
Application Item Yes No Not
Applicable Comments
Narrative Cover Letter
Application Form
Development Team Resumes
Developer Capacity Worksheets
(NOFA Attachment G)
Organizational Chart
Developer Experience Worksheets
(NOFA Attachment F)
Project Zoning Map
Evidence of Entitlement Approvals
Evidence of Site Control
Real estate appraisal or current tax
documentation that substantiates the
value of the property
Tenant Relocation Plan (Temporary)
Tenant Relocation Plan (Permanent)
Project Vicinity Map
Conceptual Plans
Site Photos
High-Quality Transit Project Map
Community Services Project Map(s)
Outreach Plan
Support Letters
Marketing Plan
Pro Forma Analysis
Detailed Scope of Work
Third-Party Cost Estimate
Other Funding Sources Supporting
Documentation
Project Narrative
Market Demand Narrative
Market Demand Evidence
Financial Statements
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
ATTACHMENT E – APPLICATION FORM
Exhibit 1
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
1 of 6
APPLICANT INFORMATION
Applicant Name:
Identify Applicant: (Check All That Apply)
☐ Applicant is
current owner
and will retain
ownership.
☐ Applicant is the
project developer
and will be part of
the final
ownership entity.
☐ Applicant is the
project developer
and will not be
part of the final
ownership entity
for the project.
☐ Other (Please
Specify):
Address:
City: State: Zip Code:
Contact Person:
Phone Number: Email:
DEVELOPMENT TEAM MEMBERS
Development Team Structure: (Check All That Apply)
☐ Partnership ☐ Corporation ☐ LLC ☐ Other (Please Specify):
Lead
Organization:
Attachments:
☐ Resumes of the Development Team Members
• Information should include name, address, contact person, telephone number, and e-mail address for members of the proposed project team.
• Identify the developer principals and project manager, architect, civil engineer, contractor, owner (if different than developer) and social services provider (if applicable). • If known, identify the lenders, attorneys, accountants, subcontractors, and consultants. • Resumes should include detailed description of experience. ☐ NOFA Attachment G (Developer Capacity Worksheets) for the development team members ☐ Organizational Chart
DEVELOPER EXPERIENCE WORKSHEETS
Attachments:
☐ NOFA Attachment F (Developer Experience Worksheets)
Exhibit 1
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
2 of 6
PROJECT SUMMARY
Project Name:
Site Information
Site Address:
City: State: Zip Code:
Census Tract No.: Parcel
No:
Description of
Existing
Conditions:
Description of
Environmental
Issues:
☐ Attach Project Zoning Map
☐ Attach Evidence of Entitlement Approvals (Check All That Are Attached) ☐ Copy of the Verification of Zoning and Land Use Entitlement Approvals that is submitted for tax credit applications
☐ Zoning confirmation letter from the City
If the project’s zoning will not permit the scope of development proposed, the applicant must demonstrate to Housing Authority’s satisfaction that all discretionary land use approvals can be granted within 180 days of the application submittal. Explain how you plan to obtain the necessary approvals within 180.
(1,000 character limit)
(1,000 character limit)
(1,000 character limit)
Exhibit 1
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
3 of 6
PROJECT SUMMARY (continued)
Current Site Use:
(Check All That Apply)
☐ Residential
# of Existing Units (if applicable):
☐ Commercial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
If occupied, briefly
describe uses:
☐ Industrial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
☐ Parking Lot
☐ In Use
☐ Not In Use
# of Parking Spaces:
☐ Vacant Lot
Site Size:
Site Control: ☐ Yes ☐ No
Form of Site Control:
☐ Current
Owner
☐ Purchase
Agreement
☐ Option ☐ Other (Please Specify):
☐ Attach evidence of site control.
☐ Attach a real estate appraisal or current tax documentation that substantiates the value of the property.
Tenant
Relocation: Temporary: ☐ Yes Permanent: ☐ Yes
☐ No ☐ No
☐ Attach Temporary and/or Permanent Tenant Relocation Plan (if applicable) If occupied, briefly
describe uses:
(500 character limit)
(500 character limit)
Exhibit 1
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
4 of 6
PROJECT DESCRIPTION
Project Type:
(Check All That
Apply)
☐ Acquisition & Rehabilitation ☐ New Construction
Housing Type: (Check All That Apply)
☐ Family ☐ Seniors ☐ Special Needs ☐ Veterans ☐ Other (Please Specify):
Construction
Type (if new
construction):
Amenities:
Total Number of
Housing Units:
Total Number of
Affordable Units:
Total Number of
Bedrooms:
Sq. Ft. of Gross
Building Area:
# of Parking Spaces: Sq. Ft. of Net Building
Area:
Unit Breakdown
Unit Mix: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
# of Units
Unit Sizes
Affordability: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
Extremely Low
Very Low
Low
Total
Attachments:
☐ Project Vicinity Map
☐ Conceptual Plans
☐ Site Photos
☐ High-Quality Transit Project Map
☐ Community Services Project Map(s)
☐ Outreach Plan
☐ Support Letters
☐ Marketing Plan
PROJECT PRO FORMA
Attachments:
☐ Pro Forma Analysis
Exhibit 1
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
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FUNDING INFORMATION
Amount of Funds
Requested:
Other Housing
Authority Fund
Previously
Received, if any:
Total
Development
Costs:
Affordable
Residential Only
Development
Costs:
Attachments:
☐ Detailed Scope of Work
☐ Third-Party Cost Estimate
OTHER EXPECTED FUNDING SOURCES
Source Name Amount Repayment Terms Application Status / Award Dates
Attachments:
☐ Other Funding Sources Supporting Documentation
PROJECT TIMELINE
Milestone Proposed Date
(Month Year)
City Approval
All Funding Sources Awarded
Environmental Review & Assessment Completed
Commencement of Construction
Construction Completed
Exhibit 1
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
6 of 6
PROJECT NARRATIVE
Attachments:
☐ Project Narrative
The project narrative is a word-processed document of not more than 10 single-spaced pages responding to the questions listed in the NOFA. The document should be a font size of 10 with 1- inch margins.
MARKET DEMAND
Attachments:
☐ Market Demand Narrative
The market demand narrative is a word-processed document of not more than 3 single-spaced pages for rental projects and 4 single-spaced pages for ownership projects responding to the questions listed in the NOFA. The document should be a font size of 10 with 1-inch margins. ☐ Market Demand Evidence (Study or Survey)
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
ATTACHMENT F – DEVELOPER EXPERIENCE WORKSHEETS
Provide the following information, in roughly the same format, for at least one project and no more than five projects developed within the last ten years.
Project Name:
Completion Date:
City: Total Project Cost:
Number of Units:
New Construction or Rehabilitation:
Project Characteristics:
Project Income and Affordability Restrictions:
Role of Applicant in Project:
Rental or Ownership:
Major Funding Sources
Source Name Amount
Project References - Individual in Local Governing Body most familiar with project. (Include Name, Organization, Title or Relationship to Project, Address, and Phone) Reference #1:
Reference #2:
Reference #3:
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
Completion (Relative to schedule and budget at
start of construction) Budget
On time, delayed (by ___ months), etc. Project over budget by ___%
If applicable, explain why project was delayed or over budget:
Project Key Staff Name Current Title Role in Current Project Project Manager
Director of Real Estate
Development
Executive Director
Other
Other
Exhibit 1
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
ATTACHMENT G – DEVELOPER CAPACITY WORKSHEETS
Provide the following information for project staff of the proposed project.
Project Staff Name
Role in other current or planned
developments
(For housing development staff, list role,
project name, number of units, start and
completion dates)
Years of
Relevant
Experience
Years with
this
Developer
Project
Manager
Director of
Real Estate
Development
Executive
Director
Asset
Manager
Provide the number of properties
overseen by the Asset Manager:
Controller /
CFO /
Accounting
Manager
Provide the number of accounting staff
employed by the developer:
Other
Other
Other
Exhibit 1
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2021 NOFA: Affordable Housing
Application: Azuriik
1.0 Narrative Cover Letter
Exhibit 2
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To Whom it May Concern,
Metropolitan Area Advisory Committee on Anti-Poverty (“MAAC”), Managing General Partner (“MGP ”) and lead Co-Developer for MAAC National City, LP (“ LP”), and MirKa Investments, LLC (“ MirKa”), Administrative General Partner (“AGP”) and Co-Developer of the LP, are proud to submit a response to the National City Affordable Housing NOFA for the Azuriik Project (“Project”). If awarded, the requested $10,000,000 in National City (“City”) funds will fill the remaining gap of the total development costs of $197,147,112, getting the City one step closer to bringing vital and quality intergenerational affordable homes to families, seniors, and people living with developmental disabilities.
MAAC brings over 36 years of experience in developing, operating, and managing affordable housing developments. They assisted in developing over 1,000 units spanning across San Diego County, serving a diverse population of families, veterans, individuals experience or at risk of experiencing homelessness, and other special needs populations. Additionally, MAAC is the service provider for their developments offering critical wrap around services for tenants seeking economic advancement, afterschool programs, and other programs and services tailored to each project's needs.
MirKa is an emerging San Diego based developer with rapid development trajectory. MirKa leadership has over 50 years of collective housing development experience in their leadership team. This includes financial oversight and p roject management of permanent supportive housing, affordable housing, mixed- use, and market rate development. Since inception 4 years ago, they have brought 7 projects totaling 415 affordable units to Southern California for a combined transaction volume of approximately $200 million. MirKa has established an impressive pipeline of 16 projects in Southern California with an anticipated 2,800 units of affordable housing anticipated within the next three to five years, with an estimated transition volume of approximately $1.5 billion.
A partnership between the LP and National City was established in 2019 for the submittal of an Affordable Housing Sustainable Community (AHSC) application. The partnership would provide critical funds to the City to expand nearby pedestrian walk and bikeways, as well as funding to support th e transit oriented urban infill Project.
The application received a competitive score of 69.33 and is expected to be awarded. The Project area established with this partnership includes the Project site, and the City’s expansion of the 8 th Street/Roosevelt Multi-Use Trail and Bayshore Bikeway. The affordable housing Project site is located on the northeast side of Roosevelt Avenue, between West 2nd Street and West 3 rd Street at 233 Roosevelt Avenue, in National City, San Diego County, California . The site totals 0.72 acres consisting of seven separate parcels . To the north of the site is a mixture of small commercial properties and single-family homes, to the south are commercial properties, adjacent to the east is a restaurant and its associated parking lot with Interstate 5 located to the west. The site is currently vacant with some uninhabitable vacant single family and multifamily structures which will be razed during site preparation. On and surrounding this site is natural vegetation including grasses, shrubs, and trees . There are no distinguished features or unique physical characteristics of the vacant project site. There are no known environmental concerns based on a Phase 1 Environmental Assessment Report completed in September of 2021.
The proposed Project will be a new construction Type 1, single 22-story, elevator- served, high rise mixed- use affordable housing building, containing 400 units and offering 11,253 square feet of indoor and outdoor community service facility space. The exterior will include window wall system, metal panel, and porcelain/stone tile.
The Project amenities will include a lobby, leasing and management offices, business center, community room with kitchen, community service facility space, exercise room, and centrally located laundry facilities. Exterior amenities will include an outdoor courtyard/picnic area, playground, vegetable garden, ping pong table, foosball table, 200 bicycle parking spaces, and 209 parking spaces in a combination of on-grade and subterranean parking garages.
Units will be set aside for households earning at or below 30, 50, 60, a nd 80 percent AMI, seniors (62+) earning at or below 30, 35, and 40 percent AMI. 10 percent of the senior units will be set aside for individuals living Affordable Housing Development Asset Management
Financial Engineering Project Finance
600 B Street, Suite 300
San Diego, CA 92101
(619) 323-1447
www.MirKaInvest.com
Exhibit 2
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with disabilities earning at or below 30 percent AMI. 4 units will also be set aside for nonrevenue employee units.
There will be 119 OBR/ 1BA at 393 SQ. FT, 203 1BR/1BA at 529 SQ. FT, 49 2BR/1BA at 921 SQ. FT, and 29 3BR/2BA at 1,192 SQ. FT, for a total of 389 bedrooms.
The Azuriik will have two service Providers. MAAC , a nationally recognized economic development organization will offer workforce and economic development services, programs, after school programming, and other vital self -sufficiency resources and referrals to the residents. Additionally, ensuring residents can age in place and continue to live in their community throughout their golden years is a priority for the Project team. MAAC will offer specialized and individualized case management to seniors and will incorporate resources, activities, and workshops that support the senior community. This includes but is not limited to wellness classes, health advocacy information, and education and workforce training for those who are currently in or wish to return to the workforce. Additionally, referrals for meal delivery services, home health and personal care aids, and transportation will also be provided.
SDRC will offer extensive case management services to residents living with developmental disabilities who are clients or wish to be clients of the SDRC. Examples of services include a continuum of functional skills training that adult clien t may need to secure or maintain a self -sustaining level of self -sufficiency such as medical, dental, mental health, substance abuse, vocational training, personal safety and hygiene, financial management, cooking/meal preparation, transportation, and mobility training. Please see Exhibit 2 and Exhibit 2A included in this application for copies of service plans.
According to the 6th Cycle RHNA Allocation, National City has a need of approximately 5,400 new units of which 1,862 accounts for extremely low to moderate income households. If awarded, the Project would account for 22% of the required RHNA allocation. Additionally, quality and individualized services will be offered to all residents to assist with economic advancement, long term tenancy, and self-sufficiency. The Project will allow individuals living with disabilities and seniors to remain integrated into society and continue to contribute in meaningful ways which can help them gain a renewed sense of self -worth. The goal of the Project Team is to promote coordinated delivery of housing and support services through close coordination between all onsite staff, including Property Management, SDRC, and MAAC and to provide quality affordable homes that foster the success of the residents and the community.
If awarded, Arnulfo Manriquez, President and CEO of MAAC, Managing Member of MAAC National City, LLC, MGP of the LP and Kursat Misirlioglu, CEO of MirKa, AGP of the LP, have the authority to negotiate on behalf of development team. The applicant certifies that the proposal response and exhibits are true and correct at the time of submittal.
MA
AC National City LP, a California limited partnership
By:
MirKa Investments, LLC, it’s Administrative General Partner By:
_________
___________
Kursat Misirlioglu, CEO
[email protected]
619-599-3852
Exhibit 2
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To Whom it May Concern,
Metropolitan Area Advisory Committee on Anti-Poverty (“MAAC”), Managing General Partner (“MGP”) and lead Co-Developer for MAAC National City, LP (“LP”), and MirKa Investments, LLC (“MirKa”), Administrative
General Partner (“AGP”) and Co-Developer of the LP, is proud to submit a response to the National City Affordable Housing NOFA for the Azuriik Project (“Project”). If awarded, the requested $10,000,000 in National City (“City”) funds will fill the remaining gap of the total development costs of $197,147,112, getting the City one step closer to bringing vital and quality intergenerational affordable homes to families, seniors, and people living with developmental disabilities.
MAAC brings over 36 years of experience in developing, operating, and managing Affordable housing developments. They assisted in developing over 1,000 units spanning across San Diego County, serving a diverse population of families, veterans, individuals experience or at risk of experiencing homelessness, and other special needs populations. Additionally, MAAC is the service provider for their developments offering critical wrap around services for tenants seeking economic advancement, afterschool programs, and other programs and services tailored to each project's needs.
MirKa is an emerging San Diego based developer with rapid development trajectory. MirKa leadership has over 50 years of collective housing development experience in their leadership team. This includes financial oversight and Project management of permanent supportive housing, affordable housing, mixed-use, and market rate development. Since inception 4 years ago, they have brought 7 projects totaling 415 affordable units to Southern California for a combined transaction volume of approximately $200 million. MirKa has established an impressive pipeline of 16 projects in Southern California with an anticipated 2,800 units of affordable housing anticipated within the next three to five years, with an estimated transition volume of approximately $1.5 billion.
A partnership between the LP and National City was established in 2019 for the submittal of an Affordable Housing Sustainable Community (AHSC) application. The partnership would provide critical funds to the City to expand nearby pedestrian walk and bi keways, as well as funding to support th e transit oriented urban infill Project.
The application received a competitive score of 69.33 and is expected to be awarded. The Project area established with this partnership includes the Project site, and the City ’s expansion of the 8 t h Street/Roosevelt Multi-Use Trail and
Bayshore Bikeway. The affordable housing Project site is located on the northeast side of Roosevelt Avenue, between West 2nd Street and West 3 rd Street at 233 Roosevelt Avenue, in National City, San Diego County, California. The site totals 0.72 acres consisting of seven separate parcels . To the north of the site is a mixture of small commercial properties and single-family homes, to the south are commercial properties, adjacent to the east is a restaurant and its associated parking lot with Interstate 5 located to the west. The site is currently vacant with some uninhabitable vacant single family and multifamily structures which will be razed during site preparation. On and surrounding this site is natural vegetation including grasses, shrubs, and trees. There are no distinguished features or unique physical characteristics of the vacant project site. There are no known environmental concerns based on a Phase 1 Environmental Assessment Report completed in September of 2021.
The proposed Project will be a new construction Type 1, single 22-story, elevator- served, high rise mixed- use affordable housing building, containing 400 units and offering 11,253 square feet of indoor and outdoor community service facility space. The exterior will include window wall system, metal panel, and porcelain/stone tile.
The Project amenities will include a lobby, leasing and management offices, business center, community room with kitchen, community service facility space, exercise room, and centrally located laundry facilities. Exterior amenities will include an outdoor courtyard/picnic area, playground, vegetable garden, ping pong table, foosball table, 200 bicycle parking spaces, and 209 parking spaces in a combination of on-grade and subterranean parking garages.
Units will be set aside for households earning at or below 30, 50, 60, and 80 percent AMI, seniors (62+) earning at or below 30, 35, and 40 percent AMI. 10 percent of the senior units will be set aside for individuals living with disabilities earning at or below 30 percent AMI. 4 units will also be set aside for nonrevenue employee units.
Exhibit 2
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There will be 119 OBR/ 1BA at 393 SQ. FT, 203 1BR/1BA at 529 SQ. FT, 49 2BR/1BA at 921 SQ. FT, and 29 3BR/2BA at 1,192 SQ. FT, for a total of 389 bedrooms.
The Azuriik will have two service Providers. MAAC , a nationally recognized economic development organization will offer workforce and economic development services, programs, after school programming, and other vital self -sufficiency resources and referrals to the residents. Additionally, ensuring residents can age in place and continue to live in their community throughout their golden years is a priority for the Project team. MAAC will offer specialized and individualized case management to seniors and will incorporate resources, activities, and workshops that support the senior community. This includes but is not limited to wellness classes, health advocacy information, and education and workforce training for those who are currently in or wish to return to the workforce. Additionally, referrals for meal delivery services, home health and personal care aids, and transportation will also be provided.
SDRC will offer extensive case management services to residents living with developmental disabilities who are clients or wish to be clients of the SDRC. Examples of services include a continuum of functional skills training that adult clien t may need to secure or maintain a self -sustaining level of self -sufficiency such as medical, dental, mental health, substance abuse, vocational training, personal safety and hygiene, financial management, cooking/meal preparation, transportation, and mobility training. Please see Exhibit 2 and Exhibit 2A included in this application for copies of service plans.
According to the 6th Cycle RHNA Allocation, National City has a need of approximately 5,400 new units of which 1,862 accounts for extremely low to moderate income households. If awarded, the Project would account for 22% of the required RHNA allocation. Additionally, quality and individualized services will be offered to all residents to assist with economic advancement, long term tenancy, and self-sufficiency. The Project will allow individuals living with disabilities and seniors to remain integrated into society and continue to contribute in meaningful ways which can help them gain a renewed sense of self -worth. The goal of the Project Team is to promote coordinated delivery of housing and support services through close coordination between all onsite staff, including Property Management, SDRC, and MAAC and to provide quality affordable homes that foster the success of the residents and the community.
If awarded, Arnulfo Manriquez, President and CEO of MAAC, Managing Member of MAAC National City, LLC, MGP of the LP and Kursat Misirlioglu, CEO of MirKa, AGP of the LP, have the authority to negotiate on behalf of development team. The applicant certifies that the proposal response and exhibits are true and correct at the time of submittal.
MAAC National City LP, a California limited partnership By: MAAC National City LLC, a California limited liability company, its managing general partner By: Metropolitan Area Advisory Committee on Anti-Poverty of San Diego County, Inc, a California non-profit public benefit company, its managing member By:
Exhibit 2
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2021 NOFA: Affordable Housing
Application: Azuriik
2.0 Application Form
Exhibit 2
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
ATTACHMENT E – APPLICATION FORM
Exhibit 2
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
1 of 6
APPLICANT INFORMATION
Applicant Name:
Identify Applicant: (Check All That Apply)
☐ Applicant is
current owner
and will retain
ownership.
☐ Applicant is the
project developer
and will be part of
the final
ownership entity.
☐ Applicant is the
project developer
and will not be
part of the final
ownership entity
for the project.
☐ Other (Please
Specify):
Address:
City: State: Zip Code:
Contact Person:
Phone Number: Email:
DEVELOPMENT TEAM MEMBERS
Development Team Structure: (Check All That Apply)
☐ Partnership ☐ Corporation ☐ LLC ☐ Other (Please Specify):
Lead
Organization:
Attachments:
☐ Resumes of the Development Team Members
• Information should include name, address, contact person, telephone number, and e-mail address for members of the proposed project team.
• Identify the developer principals and project manager, architect, civil engineer, contractor, owner (if different than developer) and social services provider (if applicable). • If known, identify the lenders, attorneys, accountants, subcontractors, and consultants. • Resumes should include detailed description of experience. ☐ NOFA Attachment G (Developer Capacity Worksheets) for the development team members ☐ Organizational Chart
DEVELOPER EXPERIENCE WORKSHEETS
Attachments:
☐ NOFA Attachment F (Developer Experience Worksheets)
Exhibit 2
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
2 of 6
PROJECT SUMMARY
Project Name:
Site Information
Site Address:
City: State: Zip Code:
Census Tract No.: Parcel
No:
Description of
Existing
Conditions:
Description of
Environmental
Issues:
☐ Attach Project Zoning Map
☐ Attach Evidence of Entitlement Approvals (Check All That Are Attached) ☐ Copy of the Verification of Zoning and Land Use Entitlement Approvals that is submitted for tax credit applications
☐ Zoning confirmation letter from the City
If the project’s zoning will not permit the scope of development proposed, the applicant must demonstrate to Housing Authority’s satisfaction that all discretionary land use approvals can be granted within 180 days of the application submittal. Explain how you plan to obtain the necessary approvals within 180.
(1,000 character limit)
(1,000 character limit)
(1,000 character limit)
Exhibit 2
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
3 of 6
PROJECT SUMMARY (continued)
Current Site Use:
(Check All That Apply)
☐ Residential
# of Existing Units (if applicable):
☐ Commercial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
If occupied, briefly
describe uses:
☐ Industrial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
☐ Parking Lot
☐ In Use
☐ Not In Use
# of Parking Spaces:
☐ Vacant Lot
Site Size:
Site Control: ☐ Yes ☐ No
Form of Site Control:
☐ Current
Owner
☐ Purchase
Agreement
☐ Option ☐ Other (Please Specify):
☐ Attach evidence of site control.
☐ Attach a real estate appraisal or current tax documentation that substantiates the value of the property.
Tenant
Relocation: Temporary: ☐ Yes Permanent: ☐ Yes
☐ No ☐ No
☐ Attach Temporary and/or Permanent Tenant Relocation Plan (if applicable) If occupied, briefly
describe uses:
(500 character limit)
(500 character limit)
Exhibit 2
321 of 339
Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
4 of 6
PROJECT DESCRIPTION
Project Type:
(Check All That
Apply)
☐ Acquisition & Rehabilitation ☐ New Construction
Housing Type: (Check All That Apply)
☐ Family ☐ Seniors ☐ Special Needs ☐ Veterans ☐ Other (Please Specify):
Construction
Type (if new
construction):
Amenities:
Total Number of
Housing Units:
Total Number of
Affordable Units:
Total Number of
Bedrooms:
Sq. Ft. of Gross
Building Area:
# of Parking Spaces: Sq. Ft. of Net Building
Area:
Unit Breakdown
Unit Mix: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
# of Units
Unit Sizes
Affordability: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
Extremely Low
Very Low
Low
Total
Attachments:
☐ Project Vicinity Map
☐ Conceptual Plans
☐ Site Photos
☐ High-Quality Transit Project Map
☐ Community Services Project Map(s)
☐ Outreach Plan
☐ Support Letters
☐ Marketing Plan
PROJECT PRO FORMA
Attachments:
☐ Pro Forma Analysis
Exhibit 2
322 of 339
Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
5 of 6
FUNDING INFORMATION
Amount of Funds
Requested:
Other Housing
Authority Fund
Previously
Received, if any:
Total
Development
Costs:
Affordable
Residential Only
Development
Costs:
Attachments:
☐ Detailed Scope of Work
☐ Third-Party Cost Estimate
OTHER EXPECTED FUNDING SOURCES
Source Name Amount Repayment Terms Application Status / Award Dates
Attachments:
☐ Other Funding Sources Supporting Documentation
PROJECT TIMELINE
Milestone Proposed Date
(Month Year)
City Approval
All Funding Sources Awarded
Environmental Review & Assessment Completed
Commencement of Construction
Construction Completed
Exhibit 2
323 of 339
Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
6 of 6
PROJECT NARRATIVE
Attachments:
☐ Project Narrative
The project narrative is a word-processed document of not more than 10 single-spaced pages responding to the questions listed in the NOFA. The document should be a font size of 10 with 1- inch margins.
MARKET DEMAND
Attachments:
☐ Market Demand Narrative
The market demand narrative is a word-processed document of not more than 3 single-spaced pages for rental projects and 4 single-spaced pages for ownership projects responding to the questions listed in the NOFA. The document should be a font size of 10 with 1-inch margins. ☐ Market Demand Evidence (Study or Survey)
Exhibit 2
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2021 NOFA: Affordable Housing
Application: Union Tower
1.0 Narrative Cover Letter
Exhibit 3
325 of 339
Exhibit 3
326 of 339
Exhibit 3
327 of 339
2021 NOFA: Affordable Housing
Application: Union Tower
2.0 Application Form
Exhibit 3
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2021 NOFA: Affordable Housing
Release Date: October 18, 2021
ATTACHMENT E – APPLICATION FORM
Exhibit 3
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Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
1 of 6
APPLICANT INFORMATION
Applicant Name:
Identify Applicant: (Check All That Apply)
☐ Applicant is
current owner
and will retain
ownership.
☐ Applicant is the
project developer
and will be part of
the final
ownership entity.
☐ Applicant is the
project developer
and will not be
part of the final
ownership entity
for the project.
☐ Other (Please
Specify):
Address:
City: State: Zip Code:
Contact Person:
Phone Number: Email:
DEVELOPMENT TEAM MEMBERS
Development Team Structure: (Check All That Apply)
☐ Partnership ☐ Corporation ☐ LLC ☐ Other (Please Specify):
Lead
Organization:
Attachments:
☐ Resumes of the Development Team Members
• Information should include name, address, contact person, telephone number, and e-mail address for members of the proposed project team.
• Identify the developer principals and project manager, architect, civil engineer, contractor, owner (if different than developer) and social services provider (if applicable). • If known, identify the lenders, attorneys, accountants, subcontractors, and consultants. • Resumes should include detailed description of experience. ☐ NOFA Attachment G (Developer Capacity Worksheets) for the development team members ☐ Organizational Chart
DEVELOPER EXPERIENCE WORKSHEETS
Attachments:
☐ NOFA Attachment F (Developer Experience Worksheets)
Exhibit 3
330 of 339
Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
2 of 6
PROJECT SUMMARY
Project Name:
Site Information
Site Address:
City: State: Zip Code:
Census Tract No.: Parcel
No:
Description of
Existing
Conditions:
Description of
Environmental
Issues:
☐ Attach Project Zoning Map
☐ Attach Evidence of Entitlement Approvals (Check All That Are Attached) ☐ Copy of the Verification of Zoning and Land Use Entitlement Approvals that is submitted for tax credit applications
☐ Zoning confirmation letter from the City
If the project’s zoning will not permit the scope of development proposed, the applicant must demonstrate to Housing Authority’s satisfaction that all discretionary land use approvals can be granted within 180 days of the application submittal. Explain how you plan to obtain the necessary approvals within 180.
(1,000 character limit)
(1,000 character limit)
(1,000 character limit)
Exhibit 3
331 of 339
Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
3 of 6
PROJECT SUMMARY (continued)
Current Site Use:
(Check All That Apply)
☐ Residential
# of Existing Units (if applicable):
☐ Commercial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
If occupied, briefly
describe uses:
☐ Industrial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
☐ Parking Lot
☐ In Use
☐ Not In Use
# of Parking Spaces:
☐ Vacant Lot
Site Size:
Site Control: ☐ Yes ☐ No
Form of Site Control:
☐ Current
Owner
☐ Purchase
Agreement
☐ Option ☐ Other (Please Specify):
☐ Attach evidence of site control.
☐ Attach a real estate appraisal or current tax documentation that substantiates the value of the property.
Tenant
Relocation: Temporary: ☐ Yes Permanent: ☐ Yes
☐ No ☐ No
☐ Attach Temporary and/or Permanent Tenant Relocation Plan (if applicable) If occupied, briefly
describe uses:
(500 character limit)
(500 character limit)
Exhibit 3
332 of 339
Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
4 of 6
PROJECT DESCRIPTION
Project Type:
(Check All That
Apply)
☐ Acquisition & Rehabilitation ☐ New Construction
Housing Type: (Check All That Apply)
☐ Family ☐ Seniors ☐ Special Needs ☐ Veterans ☐ Other (Please Specify):
Construction
Type (if new
construction):
Amenities:
Total Number of
Housing Units:
Total Number of
Affordable Units:
Total Number of
Bedrooms:
Sq. Ft. of Gross
Building Area:
# of Parking Spaces: Sq. Ft. of Net Building
Area:
Unit Breakdown
Unit Mix: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
# of Units
Unit Sizes
Affordability: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
Extremely Low
Very Low
Low
Total
Attachments:
☐ Project Vicinity Map
☐ Conceptual Plans
☐ Site Photos
☐ High-Quality Transit Project Map
☐ Community Services Project Map(s)
☐ Outreach Plan
☐ Support Letters
☐ Marketing Plan
PROJECT PRO FORMA
Attachments:
☐ Pro Forma Analysis
Exhibit 3
333 of 339
Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
5 of 6
FUNDING INFORMATION
Amount of Funds
Requested:
Other Housing
Authority Fund
Previously
Received, if any:
Total
Development
Costs:
Affordable
Residential Only
Development
Costs:
Attachments:
☐ Detailed Scope of Work
☐ Third-Party Cost Estimate
OTHER EXPECTED FUNDING SOURCES
Source Name Amount Repayment Terms Application Status / Award Dates
Attachments:
☐ Other Funding Sources Supporting Documentation
PROJECT TIMELINE
Milestone Proposed Date
(Month Year)
City Approval
All Funding Sources Awarded
Environmental Review & Assessment Completed
Commencement of Construction
Construction Completed
Exhibit 3
334 of 339
Community Development Commission-Housing Authority of the City of National City 2021 Notice of Funding Availability (NOFA)
Affordable Housing
Submittal Deadline: November 19, 2021 Application Form
6 of 6
PROJECT NARRATIVE
Attachments:
☐ Project Narrative
The project narrative is a word-processed document of not more than 10 single-spaced pages responding to the questions listed in the NOFA. The document should be a font size of 10 with 1- inch margins.
MARKET DEMAND
Attachments:
☐ Market Demand Narrative
The market demand narrative is a word-processed document of not more than 3 single-spaced pages for rental projects and 4 single-spaced pages for ownership projects responding to the questions listed in the NOFA. The document should be a font size of 10 with 1-inch margins. ☐ Market Demand Evidence (Study or Survey)
Exhibit 3
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RESOLUTION NO. 2022 -
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY (“HOUSING AUTHORITY”) APPROVING A CONDITIONAL AWARD OF TEN MILLION DOLLARS ($10,000,000) FROM THE HOUSING AUTHORITY’S HOUSING FUND TO THE 400 -UNIT AZURIIK AFFORDABLE
HOUSING PROJECT BY THE METROPOLITAN ADVISORY COMMITTEE ON ANTI - POVERTY (“MAAC”) LOCATED AT 233 ROOSEVELT AVENUE
WHEREAS, a Notice of Funding Availability (NOFA) for up to $10,000,000.00 for the funding of affordable housing in National City was included in a strategic goal of Housing Authority’s Strategic Plan the was approved by the Connunity Development Commission - Housing Authority on August 3, 2021; and
WHEREAS, the Notice of Funding Availability (NOFA) for affordable housing was released on October 14, 2021, and applications were due on November 19, 2021; and
WHEREAS, the NOFA made approximately ten million dollars ( $10,000,000.00) in total funds available for all capital requests for new construction, acquisition with rehabilitation, or rehabilitation of affordable housing serving households earning up to 60% of the Area Median Income (AMI) for rental projects and households earnin g up to 80%-120% of the AMI for homeownership projects. Capital funds are from the Housing Authority’s Housing Fund and are subject only to the conditions set forth in the NOFA; and
WHEREAS, after the release of the NOFA on October 14, 2021, a total of t wo (2) applications were received by the November 19, 2021 deadline. The applications were reviewed for compliance in terms of the NOFA and evaluated according to the established NOFA Evaluation Criteria. Projects were then ranked based on the scoring criteria described in the NOFA.; and
WHEREAS, based on the NOFA scoring results, the recommendation is to fund a loan of up to $10,000,000 .00 to the 400-unit Azuriik Affordale Housing Project at 233 Roosevelt Avenue by the Metropolitan Area Advisory Committee on Anti-Poverty (“MAAC”); and
WHEREAS, on October 21, 2019 the City of National City Planning Department determined that the Azuriik Affordable Housing Project will not have a significant effect on the environment in accordance with CEQA Section 21108 or 21152.
NOW, THEREFORE, THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: Approves a conditional award of Ten Million Dollars ($10,000,000 .00) from the Housing Authority’s Housing Fund to the 400-unit Azuriik Affordable Housing Project by the Metropolitan Advisory Committee on Anti-Poverty (“MAAC”) located at 233 Roosevelt Avenue in National City, California.
Section 2: Once the developer has secured its financing, including remaining gap funding sources, Housing Authority staff and its financial consultants will underwrite the final loan amount, not to exceed Ten Million Dollars ($10,000,000.00), and draft loan documents for approval by the developer and General Counsel of the Housing Authority.
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2 Resolution No. 2022 –
Page Two
Section 3: The awarded Affordable Housing Project will be subject to the terms and conditions of Project Labor Agreement currently being negotiated between the City of National City and the San Diego Building and Construction Trades Council if the Project Labor Agreement is fully executed and in effect before the loan is funded by the Housing Authority.
Section 4: The loan award is not final until a Loan A greement is approved by the Housing Authority.
Section 5: The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 18th day of January, 2022.
_____________________________
Alejandra Sotelo-Solis, Chairwoman
ATTEST:
_____________________________
Luz Molina, City Clerk
APPROVED AS TO FORM:
_____________________________
Charles E. Bell Jr., General Counsel
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The following page(s) contain the backup material for Agenda Item: City Manager Report (City Manager)
Please scroll down to view the backup material.
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Item # ___
01/18/22
CITY MANAGER REPORT
(City Manager)
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