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December 5, 2023, Item #14
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AG EN DA REPORT City of Poway
December 5, 2023
Honorable Chairman and Members of the Housinj_~uthority Robert Manis, Director of Development Services t(/\
Marie Sanders, Senior Management Analys~
(858) 668-4637 or [email protected]
CITY COUNCIL
Request for Approval of the Submission of Applications for the Resyndication of Low-Income Housing Tax Credits and Tax-Exempt Bonds for Haley Ranch Estates, Hillside Village, and Parkview Terrace Affordable Housing Communities Community HousingWorks ("CHW") has successfully developed and operates low-income housing tax credit affordable communities within the City of Poway. CHW approached the Poway Housing Authority ("Authority'') for its support and required consent to submit applications for a new reservation of low-income housing tax credits paired with a new allocation of tax-exempt bonds for three of its communities, Haley Ranch Estates, Hillside Village, and Parkview Terrace. If successful, the new funding would extend income affordability and enhance resident quality of life through rehabilitation and repair of housing units, community buildings, and infrastructure.
California Municipal Finance Agency, through its Joint-Powers Agreement with the City of Poway, is the anticipated tax-exempt bond issuer. If CHW is successful in obtaining tax-exempt bond financing, the City of Poway will be asked to hold a Tax Equity and Fiscal Responsibilty Act public hearing at a future date to be determined. Neither the City of Poway nor the Poway Housing Authority would experience any fiscal impact related to the bond issuance.
Recommended Action:
It is recommended the Poway Housing Authority Board:
1) Adopt a Resolution (Attachment A) authorizing Community HousingWorks to submit applications to apply for a new reservation of low-income housing tax credits paired with a new allocation of tax-exempt bonds to the California Tax Credit Allocation Committee and California Debt Limit Allocation Committee for the affordable communities of Haley Ranch Estates, Hillside Village, and Parkview Terrace;
2) Authorize the Executive Director to execute all necessary documents relating to the application and implementation of low-income housing tax credit resyndication for the affordable communities of Haley Ranch Estates, Hillside Village, and Parkview Terrace; and 3) Authorize the Executive Director to execute all necessary documents relating to the support of Community HousingWorks' applications for tax-exempt bonds and low-income housing tax credits for the communities of Haley Ranch Estates, Hillside Village, and Parkview Terrace, including, providing any needed commitment letters consistent with these applications, review 2 of 10
December 5, 2023, Item #14
and approval of temporary relocation plans for community residents, and California Tax Credit Allocation Committee local reviewing agency packages.
4) Authorize (i) the transfer and assignment of the existing Ground Lease and Regulatory Agreement dated September 26, 2000 by and between the Poway Housing Authority, as housing successor to the former Poway Redevelopment Agency, and Haley Ranch Estates Housing Associates, L.P., to a new low-income housing tax credit partnership cont.rolled by Community HousingWorks, yet to be formed, (ii) an amendment to the Ground Lease to extend the initial term thereof for a new 55-year term, and (iii) an amendment to the Regulatory Agreement to reaffirm the term thereof as in perpetuity;
5) Authorize (i) the transfer and assignment of the existing Ground Lease for Hillside Village, dated June 8, 2_001, by and between the Poway Housing Authority, as housing successor to the former Poway Redevelopment Agency, and Community Housing of North County, to a new low-income housing tax credit partnership controlled by Community HousingWorks, yet to be formed, and (ii) an amendment to the Ground Lease to extend the initial term thereof Ground Lease for a new 55- year term;
6) Authorize (i) the transfer and assignment of the existing Regulatory Agreement for Hillside Village, dated February 5, 2002, by and between the Poway Housing Authority, as housing successor to the former Poway Redevelopment Agency, Breihan Housing Associates, L.P., and Community Housing of North County, to a new low-income housing tax credit partnership controlled by Community HousingWorks, yet to be formed, and (ii) an amendment to the Regulatory Agreement to reaffirm the term thereof as in perpetuity;
7) Authorize (i) the transfer and assignment of the existing Loan Agreement for Hillside Village dated February 5, 2002, by and between the Poway Housing Authority, as housing successor to the former Poway Redevelopment Agency, and Breihan Housing Associates, L.P., and the existing Promissory Note and Deed of Trust executed by Breihan Housing Asslociates, L.P. to a new Low Income housing tax credit partnership, yet to be formed, and, (ii) an amendment to the Loan Agreement and amendment to the Promissory Note to restate the loan amount thereunder to include the full principal amount of the Loan and all accrued interest through the date of finance closing, modify the interest rate on the Loan to the Applicable Federal Rate compounding in effect as of the date of finance closing, and extend the term of the Loan for a new 55-year term; and 8) Authorize (i) the transfer and assignment of the Ground Lease and Regulatory Agreement for Parkview Terrace, dated August 29, 1997 by and among the Poway Housing Authority, as housing successor to the former Poway Redevelopment Agency, Community Housing of North County, and Bowron Road Group, L.P., to a new low-income housing tax credit partnership controlled by Community HousingWorks, yet to be formed, (ii) an amendment to the Ground Lease to extend the initial term thereof for a new 55-year term, and (iii) an amendment to the Regulatory Agreement to reaffirm the term thereof as in perpetuity.
Discussion:
Community HousingWorks ("CHW") is a nationally recognized 501 (c)(3) nonprofit organization that was founded and has been headquartered in San Diego County since 1988. CHW develops and owns affordable apartment communities with resident-centered services for working families, older adults, and people with disabilities to forge stronger futures.
CHW has successfully developed new and renovated existing multi-family, affordable rental apartments in urban, suburban and rural communities in California and Texas. With 4,289 rental apartments operating in 47 communities statewide as of October 2023, and with approximately 428 apartments currently in construction and another 306 apartments in predevelopment, CHW proudly serves more than 11,000 children and adults each year. 3 of 10
December 5, 2023, Item #14
For three of CHW's affordable communities in Poway (Haley Ranch Estates, Hillside Village, and Parkview Terrace), there is an opportunity to re-apply for new reservations of low-income housing tax credits and an allocation of tax-exempt bonds. If successful, it would extend income affordability and enhance resident quality of life through rehabilitation and repair of housing units, community buildings, and infrastructure. This action authorizes the submission of applications, and, if successful in being awarded tax credits and tax-exempt bonds, Recommended Actions numbers four through eight will be authorized.
Each rehabilitation project will have three primary goals: (1) extend the productive life of the existing building beyond the new 55-year affordability period and upgrade to current Americans with Disabilities Act standards; (2) reduce operating expenses for the property and residents with energy and water efficient materials and renewable energy; and (3) improve resident comfort and building functionality. The scope of the rehabilitation prioritizes health and safety and replacement of systems in need of repair.
Due to the nature of the proposed rehabilitations, if approved, CHW will contract with Laurin Associates to prepare a Temporary Relocation Plan in compliance with Federal and State Relocation laws and regulations to address the residents of the community who may be temporarily relocated offsite during the rehabilitation and enhancement of the community. There will not be any impact to affordability levels or rent increases due to the rehabilitation. With an award of new low-income housing tax credits, CHW anticipates reinvesting at least $60,000 per housing unit in repairs and upgrades.
On-site property management services will continue to be provided by ConAm Management Corporation, and resident services will continue to be provided by CHW with additional third-party partnerships.
Haley Ranch Estates
Haley Ranch Estates, located at 13455 Poway Creek Rd. is a community that opened in 1992. The community contains 65 single-family homes; all of the homes in Haley Ranch Estates have three bedrooms, two full baths, and two-car garages, with the exception of two homes, the garages are attached. Haley Ranch Estates includes 64 homes restricted at 50% Area Median Income (AMI), and one unit set-a-side for staff. The homes range from 1,129 to 1,232 square feet of living space, plus the 400 square foot garage area. The community features a community center, pool, playground, and barbeque area, and is close to public transportation.
The proposed rehabilitation at Haley Ranch Estates will address the deferred maintenance throughout the community. The interior finishes and cabinets will be replaced and the water intrusion issues will be mitigated by foundation repairs. In addition, many updates and repairs to the common areas are required and the parking lots will be repaved.
Hillside Village
Hillside Village, located at 12979 Community Rd., was first constructed in 2003 and is comprised of 15 two-story residential buildings, a community building, an onsite daycare facility, and on-premises parking. There are 71 townhome-style apartments ranging from 11 one-bedroom units with a bathroom, 19 two-bedroom units with a bathroom, 35 three-bedroom units with two full bathrooms, and 6 units with four-bedrooms and two bathrooms. Hillside Village has 25 homes at 35% AMI, 45 homes at 50% AMI, and one unit set-a-side for staff. Residents of the community have access to parking, a community center, laundry facility, computer lab, playground, basketball court, and 4 of 10
December 5, 2023, Item #14
barbeque area, and is close to public transportation.
The proposed rehabilitation at Hillside Village will include the mitigation of water drainage issues, repairs and repaving of the parking lot, and replacement of sections of concrete in the walkways. In addition, the copper plumbing pipes will be replaced and seismic shut off valves will be installed for . all gas meters. Lastly, the exteriors will be treated for termites and painted, and the interiors will have walls repaired, painted, and new flooring installed.
Parkview Terrace
Lastly, Parkview Terrace, located at 13250 Civic Center Dr. was constructed in 1998. The community is comprised of 18 two-story residential buildings, a community building, and on-premises parking.
There are 92 total units with 11 one-bedroom units with a bathroom, 36 two-bedroom units with a bathroom, 35 three-bedrooms with two and one-half bathrooms, and 10 units with four-bedrooms and two bathrooms. Parkview Terrace has 35 homes restricted at 35% AMI, 56 homes restricted at 50% AMI, and one unit set-a-side for staff. Residents have access to parking, a community center, laundry facility, computer lab, playground, tennis court, and barbeque area, and is located within walking distance of bus stops, shopping, restaurants, a medical clinic, and entertainment near Community Park, Poway Branch Library, and the civic center.
The proposed rehabilitation at Parkview Terrace consists of common area updates, including new • landscaping, repair of stairways, accessible handrails, replacement of the security system and replacement of sections of sidewalk. The units will have new energy-efficient windows, new flooring, repairs to the walls, doors, and new appliances.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
There is no fiscal impact associated with approval of this item. If approved, each existing Ground Lease will be amended for a new 55-year term, including the respective annual payment obligations thereunder. Similarly, the Hillside Village Loan Agreement will be amended for a new 55-year term, with the Authority continuing to remain in second position in the cashflow waterfall and loan subordinations, payable through 50% of residual receipts, as required by the Deed of Trust.
Public Notification:
None.
Attachments:
A. Resolution
B. Location Maps
Reviewed/Approved By:
Wendaserman
Assistant City Manager
Reviewed By:
Alan Fenstermacher
City Attorney
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December 5, 2023, Item #14
ATTACHMENT A
RESOLUTION
NO.
H-23-
A
RESOLUTION
OF
THE
POWAY
HOUSING
AUTHORITY
APPROVING
THE
SUBMISSION
OF
APPLICATIONS
FOR
THE
RESYNDICATION
OF
LOW-INCOME
HOUSING
TAX
CREDITS
AND
TAX-EXEMPT
BONDS
FOR
HALEY
RANCH
ESTATES,
HILLSIDE
VILLAGE,
AND
PARKVIEW
TERRACE
AFFORDABLE
HOUSING
COMMUNITIES
WHEREAS,
the
Poway
Housing
Authority
("Authority")
is
a
public
body,
corporate
and
politic,
organized
and
existing
under
the
Housing
Authorities
Law
(Health
&
Safety
Code
§ 34200
et
seq.);
WHEREAS,
a
fundamental
purpose
of
the
Housing
Authorities
Law
is
to
expand
the
supply
of
low-
and
moderate-income
housing
(Health
&
Safety
Code,
§
33071
);
WHEREAS,
Community
HousingWorks,
a
nonprofit
affordable
housing
developer,
is
the
owner,
through
its
affiliates,
of
three
affordable
housing
communities
in
the
City
of
Poway:
Haley
Ranch
Estates,
Hillside
Village,
and
Parkview
Terrace
(collectively,
the
"Communities");
WHEREAS,
the
Authority
provided
a
portion
of
the
funding
for
the
construction
of
the
Communities;
WHEREAS,
Community
HousingWorks
has
requested
the
Authority
to
support
its
reinvestment
in
the
Communities
by
obtaining
a
new
reservation
of
low-income
housing
tax
credits
and
a
new
allocation
of
tax-exempt
bonds
to
fund
a
portion
of
the
rehabilitation
of
the
Communities
to
enhance
the
viability
of
the
Communities
and
quality
of
life
for
the
residents;
WHEREAS,
Community
HousingWorks
has
further
requested
the
Authority's
consideration
for
assigning,
modifying,
and
extending
the
Authority's
existing
financial
support
and
Regulatory
Agreements
as
described
in
the
staff
report;
and
WHEREAS,
the
Authority
has
the
power
and
authority
to
approve
the
transactions
described
below
and
no
further
action
by
the
Poway
Housing
Authority
Board
shall
be
necessary
to
implement
the
transactions
contemplated
herein.
NOW,
THEREFORE,
BE
IT
RESOLVED
that
the
Poway
Housing
Authority
is
making
the
following
findings
in
authorizing
the
submission
of
applications
of
low-income
housing
tax
credits
and
tax-exempt
bonds
on
behalf
of
the
Communities,
as
follows:
SECTION
1:
Community
HousingWorks
is
authorized
to
submit
applications
to
apply
for
a
new
reservation
of
low-income
housing
tax
credits
and
a
new
allocation
of
tax-exempt
bonds
to
the
California
Tax
Credit
Allocation
Committee
and
California
Debt
Limit
Allocation
Committee
for
the
affordable
communities
of
Haley
Ranch
Estates,
Hillside
Village,
and
Parkview
Terrace.
SECTION
2:
The
Executive
Director
is
authorized
to
execute
all
necessary
documents
relating
to
the
application
and
implementation
of
low-income
housing
tax
credit
resyndication
for
the
affordable
communities
of
Haley
Ranch
Estates,
Hillside
Village,
and
Parkview
Terrace.
SECTION
3:
The
Executive
Director
is
authorized
to
execute
all
necessary
documents
relating
to
the
support
of
Community
HousingWorks
' applications
for
tax-exempt
bond
and
low-
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December 5, 2023, Item #14
Resolution
No.
H-23-Page
3 income
housing
tax
credits
for
the
communities
of
Haley
Ranch
Estates,
Hillside
Village,
and
Parkview
Terrace,
including,
providing
any
needed
commitment
letters
consistent
with
this
resolution,
review
and
approval
of
temporary
relocation
plans
for
community
residents,
and
California
Tax
Credit
Allocation
Committee
local
reviewing
agency
packages.
SECTION
4:
The
Executive
Director
is
authorized
to
(i)
transfer
and
assign
the
Ground
Lease
and
Regulatory
Agreement
dated
September
26,
2000
by
and
between
the
Poway
Housing
Authority,
as
housing
successor
to
the
former
Poway
Redevelopment
Agency,
and
Haley
Ranch
Estates
Housing
Associates,
L.P.,
to
a
new
low-income
housing
tax
credit
partnership
controlled
by
Community
HousingWorks,
yet
to
be
formed,
(ii)
amend
the
Ground
Lease
to
extend
the
initial
term
thereof
for
a
new
55-year
term,
and
(iii)
amend
the
Regulatory
Agreement
to
reaffirm
the
term
thereof
as
in
perpetuity.
SECTION
5:
The
Executive
Director
is
authorized
to
(i)
transfer
and
assign
the
Ground
Lease
for
Hillside
Village,
dated
June
8,
2001,
by
and
between
the
Poway
Housing
Authority,
as
housing
successor
to
the
former
Poway
Redevelopment
Agency,
and
Community
Housing
of
North
County,
to
a
new
low-income
housing
tax
credit
partnership
controlled
by
Community
HousingWorks,
yet
to
be
formed,
and
(ii)
ament
the
Ground
to
extend
the
initial
term
thereof
for
a
new
55-year
term.
SECTION
6:
The
Executive
Director
is
authorized
to
(i)
transfer
and
assign
the
Regulatory
Agreement
for
Hillside
Village,
dated
February
5,
2002,
by
and
between
the
Poway
Housing
Authority,
as
housing
successor
to
the
former
Poway
Redevelopment
Agency,
Breihan
Housing
Associates,
L.P.,
and
Community
Housing
of
North
County,
to
a new
low-income housing
tax
credit
partnership,
yet
to
be
formed,
and
(ii)
amend
the
Regulatory
Agreement
to
reaffirm
the
term
thereof
as
in
perpetuity.
SECTION
7:
The
Executive
Director
is
authorized
to
(i)
transfer
and
assign
the
Loan
Agreement
for
Hillside Village
by
and
between
the
Poway
Housing
Authority,
as
housing
successor
to
the
former
Poway
Redevelopment
Agency,
and
Breihan
Housing
Associates,
L.P.,
to
a
new
low-income
housing
tax
credit
partnership,
yet
to
be
formed,
and,
(ii)
amend
the
Loan
Agreement
and
Promissory
Note
to
restate
the
loan
amount
thereunder
to
include
the
full
principal
amount
of
the
Loan
and
all
accrued
interest
through
the
date
offinance
closing,
modify
the
interest
rate
on
the
Loan
to
the
Applicable
Federal
Rate
compounding
in
effect
as
of
the
date
of
finance
closing,
and
extend
the
term
of
the
Loan
for
a
new
55-year
term.
SECTION
8:
The
Executive
Director
is
authorized
to
(i)
transfer
and
assign
the
Ground
Lease
and
Regulatory
Agreement
for
Parkview
Terrace,
dated
August
29,
1997
by
and
between
the
Poway
Housing
Authority,
as
housing
successor
to
the
former
Poway
Redevelopment
Agency,
Community
Housing
of
North
County,
and
Bowron
Road
Group,
L.P.,
to
a
new
low
income
housing
tax
credit
partnership
controlled
by
Community
HousingWorks,
yet
to
be
formed,
and
(ii)
amend
the
Ground
Lease
to
extend
the
initial
term
thereof
for
a
new
55-year
term,
and
(iii)
amend
the
Regulatory
Agreement
to
reaffirm
the
term
thereof
as
in
perpetuity.
II II II II
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December 5, 2023, Item #14
Resolution
No.
H-23-Page
3 PASSED,
ADOPTED
AND
APPROVED
by
the
Poway
Housing
Authority
of
the
City
of
Poway,
California,
at
a
regular
meeting
this
fifth
day
of
December,
2023
by
the
following
vote,
to
wit:
AYES: NOES: ABSTAINED: ABSENT: DISQUALIFIED
:
ATTEST
:
Carrie
Gallagher,
CMC
, Secretary
Steve
Vaus,
Authority
Chair
Poway
Housing
Authority
8 of 10
December 5, 2023, Item #14
ATTACHMENT B
Haley Ranch Estates
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December 5, 2023, Item #14
Hillside Village Apartments
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December 5, 2023, Item #14
Parkview
Terrace
Apartments