Poway City Council
November 19, 2024

DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AG EN DA REPORT City of Poway

CITY COUNCIL
November 19, 2024
Honorable Mayor and Members of the City Council
Honorable Chairman and Members of the Housing Authority Board Julie Procopio, Director of Development Service~ •
Marie Sanders, Senior Management Analyst
(858) 668-4637 or [email protected]
Stan Donn, City Planner
(858) 668-4604 or sdonn@poway .org
Development Review (DR) 23-0003, CEQA exemption, Affordable Housing Agreement (AHA), Ground Lease, Health and Safety Code (HSC) Section 33433 Summary Report and Related Findings for the Construction and Operation of a 60-unit Affordable Housing Development at 12674 Monte Vista Road (APN 275-460-61-00) This item seeks joint consideration of the Poway City Council and the Poway Housing Authority Board (Housing Authority or Authority) for a 60-unit affordable housing project with a targeted population mix of developmentally disabled adults, military veterans, and their families.

The actions for consideration by the City Council and the Housing Authority following a noticed public hearing include (1) approval of DR 23-0003, determination that the Project is exempt from the California Environmental Quality Act (CEQA) pursuant to the Class 32 "infill" categorical exemption (CEQA) Guidelines Section 15332), and finding the Project is in conformance with the General Plan pursuant to Government Code Section 65402(a) (City Council only); and (2) approval of an AHA, Ground Lease of the Property, HSC Section 33433 Summary Report and related findings (City Council and Housing Authority).

Recommended Actions:

It is recommended the City Council and the Housing Authority hold a joint public hearing, take public input and close the public hearing.

It is further recommended the City Council:
1) Adopt the Resolution (Attachment A) (i) approving DR 23-0003, (ii) determining the Project is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15332, and (iii) finding the Project is in conformance with the General Plan; and
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2) Adopt the Resolution (Attachment B) (i) approving the Summary Report prepared pursuant to Health and Safety Code Section 33433 and making required findings and determinations pursuant to Section 33433, (ii) approving the lease of the Property and the Affordable Housing Agreement between the Authority and Wakeland Monte Vista, LP, including the Ground Lease and all other Attachments, for the lease of the Property and development and operation of the Project, and (iii) approving other actions set forth in the City Council Resolution.

It is further recommended the Housing Authority:

Adopt the Resolution (Attachment C) (i) Certifying its review and consideration of the Project's categorical exemption pursuant to CEQA Guidelines Section 15332, (ii) approving the Summary Report prepared pursuant to Health and Safety Code Section 33433 and making required findings and determinations pursuant to Section 33433, (iii) determining that the proceeds of the lease of the Property will be used by the Authority to assist a housing project for persons of low income pursuant to Health and Safety Code Section 34312.3, (iv) approving the lease of the Property and the Affordable Housing Agreement between the Authority and Wakeland Monte Vista, LP, including the Ground Lease and all other Attachments, for the lease of the Property and the development and operation of the Project, (v) approving the terms for the Authority's loan of $4,590,000 to finance Developer's ground lease of the Property as prepayment of the capitalized annual lease payments, and (vi) approving other actions set forth in the Authority Resolution.

Discussion:

This project is the culmination of more than four years of ongoing efforts to meet an established community need. On September 1, 2020, then City Council member John Mullin initiated a recommended action seeking concurrence of other councilmembers to direct staff to select a development partner to construct an affordable housing rental development with a targeted population of military veterans and developmentally disabled adults noting that " ... after having watched the overwhelming response to Villa de Vida by the developmentally disabled community, it is abundantly clear that this is also an underserved segment of the affordable housing demand." Developer Selection
On December 15, 2020, the Housing Authority (see section below for background on the Housing Authority) authorized staff to issue a Request for Qualifications (RFQ) to begin soliciting proposals from qualified non-profit housing developers . A two -phase solicitation process was created, consisting of an RFQ followed by a Request for Proposal (RFP). An RFQ was issued on January 4, 2021, and four submittals were received. Three respondents were determined to be the most qualified and were invited to provide a substantial proposal detailing their vision for the site by May 17, 2021. A team of staff members ranked the proposals based on criteria set in the RFP including benefits to target population mix (veterans and developmentally disabled adults), conceptual site plan, community support, outreach plan and the breadth of supportive services offered. The top two respondents were selected to move forward with a detailed financial feasibility analysis, provided by the City's on call financial and real estate consultant, Keyser Marston & Associates.

After careful review of all submittals, financing strategies, project designs, and interviews of each team, staff recommended to the Housing Authority to enter into an ENRA with the Developer, as their vision of the Project site best aligned with the project goals. Wakeland Housing and Development 2 of 95
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Corporation, a California nonprofit corporation, (Wakeland) is a non-profit organization founded in 1998 and has created over 7,500 affordable homes including 26 communities in San Diego County.

On August 16, 2022, the Housing Authority approved an Exclusive Negotiating Rights Agreement (ENRA) with Wakeland. Wakeland is an affiliate of the proposed developer, Wakeland Monte Vista, LP, a California limited partnership (Developer), which limited partnership was created by Wakeland for purposes of developing and operating the proposed Project. The purpose of the ENRA was for the parties to explore the concept of developing 60-units of multi-family affordable rental housing serving extremely low-, very low-, and low-income households not to exceed 59% of the area median income (AMI), targeting adults with developmental disabilities and military veterans and their families, on Authority-owned property located at 12674 Monte Vista Road (Property). Pursuant to the ENRA, staff has successfully negotiated with the Developer the terms of an Affordable Housing Agreement (AHA), a Ground Lease of the Property, and other necessary and regulatory documents for the proposed Project, as well as completed entitlement reviews through DR 23-0003.

Housing Authority Board Background
The Poway City Council adopted the Redevelopment Plan for the Paguay Redevelopment Project Area on December 13, 1983, by Ordinance No. 117 (as amended from time to time, the "Redevelopment Plan"). The goals for the Redevelopment Plan included alleviation of blighting conditions and the stimulation of economic development and affordable housing activities in the project area and the community. Poway's Housing Element and the former Redevelopment Agency's Implementation Plan identify the need for low- and moderate- income rental housing.

The Statewide dissolution of the Redevelopment Agencies, prompted the formation of the Poway Housing Authority, established on March 1, 2011, through Resolution No. 11-009, with the goal to continue to improve, preserve, and increase the supply of affordable housing in the Poway community, as appropriate and as authorized by redevelopment law in effect at the time of approval of the Cooperation Agreement. The Housing Authority was also designated as the housing successor to the Former RDA pursuant to the laws governing the dissolution of the Former RDA (Dissolution Law). Upon dissolution of the Former RDA, all rights, powers, duties, obligations, and housing assets of the Former RDA transferred to the Housing Authority.

The function of the Housing Authority and its members, designated as the sitting members of the City Council, is to provide the legal authority to continue to monitor ongoing rent and income compliance at affordable housing developments and partner with developers to construct and operate affordable housing in Poway. Formal procedures outlining personnel, conflict of interest code, and meeting dates for the Authority are subject to Resolution No. H-11-02.

State law provides that Property may be disposed of by the Housing Authority after a public hearing by the City Council and the Housing Authority, and in compliance with certain procedures, including but not limited to requirements of HSC Section 33433. Section 33433 requires that the City Council, after a public hearing, must find (i) that the lease of the Property for the Project will assist in the elimination of blight or provide housing for low- or moderate-income persons, and is consistent with the Implementation Plan approved by the Former RDA under HSC 33490, and (ii) that the consideration for the lease of the Property is not less than the "fair reuse value" of the Property and with the covenants and conditions and the development costs authorized by the lease of the Property. 3 of 95
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Analysis of DR 23-0003
The development site is 2.06 acres as shown in the location and zoning map (Attachment D) and is currently vacant. Surrounding land uses consist of a medical office complex to the west, Palomar Medical Center Poway Hospital to the north, a convalescent care facility to the east, and a Montessori school to the south. A 20-foot-wide road provides access from Monte Vista Road to the hospital campus adjacent to the project site on the east property line.

The proposed Project is zoned Commercial Office (CO) and within an Affordable Housing Overlay Zone (AHOZ). When the Overlay Zone is used, Residential Apartment (RA) zone development standards are applied to the development. The AHOZ stipulates the maximum allowable density for this site is 30 units/acre when developed for affordable housing. Therefore, the maximum number of units that could be allowed on the 2.06-acre site is 60 units. The proposed Project meets the target density as noted in the City's Housing Element. Upon completion, these units would be applied to the City's Regional Housing Needs Allocation as identified in the Housing Element.

The proposed Project includes a total of sixty (60) residential units, including twenty-eight (28) one­ bedroom/one-bathroom units, sixteen (16) two-bedroom/one-bathroom units, one (1) two­ bedroom/two-bathroom unit (for the one manager's unit), and fifteen (15) three-bedroom/two­ bathroom units. Units will range in size from 545 to 1,100 square feet. Site plan, floor plans, and elevations of the residential buildings are shown in Attachments E, F, G, and H.

The Project will have three buildings in total, two residential buildings each two stories in height and a one-story community building. This design offers a wide range of amenities including a 1,684 square­ foot community building offering a multi-purpose room with a full kitchen, and offices, two BBQ areas, an outdoor plaza, two play areas, a gazebo, pickleball court, and common laundry facilities (Attachment I).

The architecture of the proposed development is a modern Spanish style. Renderings of the development are provided in Attachmentj.

A subterranean parking structure extending all the way to the north and east property lines will provide 134 parking spaces, and seven additional spaces are provided at grade for a total of 141 parking spaces (Attachment K). This is 20 spaces more than the 122 parking spaces required by the Poway Municipal Code (PMC) for an apartment development with the proposed mix of bedroom units.

The natural topography gradually slopes upward in elevation from the west in a northeasterly direction. There is an approximately 20-foot grade difference from the southwest corner of the site to the northeast corner of the site. As a result of the topography and the proposed subterranean garage, the Project will require retaining walls to be constructed along the west, north, and east property lines.

Portions of the retaining walls of the Project would exceed the maximum 6-foot height limit. On the west side adjacent to the neighboring office complex, the retaining wall will be limited to a portion along the ramp to the garage and would vary in height from approximately three (3) to nine (9) feet.

The retaining wall along the north side adjacent to the hospital will increase in height from one (1) foot to up to thirteen (13) feet at the northeast corner. The retaining wall along the east property line adjacent to the access road would vary in height from four (4) feet near Monte Vista Road up to thirteen (13) feet at the northeast corner of the site. 4 of 95
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Although the Project site is in the Very High Fire Hazard Zone, all building and fire codes and compliance will be met. Due to the property size, the Project site cannot accommodate the standard one-hundred (100) feet of Fire Management Zones (FMZ) from structures. The Fire Department has approved a Fire Fuel Management Plan for the Project, which among others, mitigates the less than one hundred (100) feet of FMZ by providing a 6-foot fire-rated fence along the east and north property lines.

Along the east property line, the fire-rated fence would be off set from the retaining wall by a 5-foot­ wide landscape planter . Along the north property line, the fire-rated fence at the property line would in some areas be located on top of a retaining wall. As a result, the combined height of retaining wall and fire-rated fence along the north would exceed the 6-foot height limit for wall and fence combination. The tallest height would be 19-feet at the northeast corner of the Project site. The height of retaining wall, and wall and fence combinations is further discussed in the report under the heading of Affordable Housing Incentives.

Affordable Housing Concessions/Incentives
Affordable housing projects are entitled to "regulatory concessions" (i.e. a modification of development standards) pursuant to Article V of Chapter 17.26 of the PMC and state Density Bonus Law. The granting of regulatory concessions/incentives, as well as reductions and waivers of development standards, have been a part of the City Council's approval of all affordable housing projects in recent years.

Considering the Project would be developed to serve affordable or lower income households, the Project is eligible for up to four (4) concessions. The potential regulatory concessions/incentives associated with this Project are specified in the following table.

RA Zone Standard Regulatory Concession/Incentives
Maximum two-story allowable development Three-story
6- foot retaining wall height and/or Up to 13 feet retaining wall height and up to 19 combination of wall and fence height feet for combined retaining wall and fence height
250 cubic feet per unit of lockable storage 120 to 124 cubic feet on average 1 0 percent of private open space based on 7 percent for 2-bedroom units the square footage of the unit 5 percent for 3-bedroom units Three Story Development
By definition of the PMC, the subterranean garage is considered a story because it has direct exposure to the exterior. Therefore, with the two-story apartment buildings on top of the garage, the project will result in a three-story structure. The subterranean garage is necessary since the site is not large enough to provide the required parking for 60 units at grade. Furthermore, the visual effect of the three-story structure would be minimal since it would only appear three-story when looking at the garage entrance from the west. It should also be noted the City Council has previously accepted this site for a three-story development as discussed in the City's Housing Element. It was initially proposed by the Developer in 2009 for a similar affordable housing project. Unfortunately, due to the dissolution of the Former RDA, the project was terminated.
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Height of Retaining Wall and Combination of a Retaining Wall and Fence As discussed above, the retaining walls exceeding six (6) feet in height are necessary to accommodate the subterranean parking and address the topography of the site. Furthermore, allowing the retaining wall and fire-rated fence combination along the north side to exceed six feet is necessary. A 5-foot­ wide planter between the retaining wall and the fire-rated fence, would reduce the area for recreational amenities for the residents. The over-height retaining walls and combination of retaining walls and fire-rated fence would primarily be visible from onsite only and minimally visible from adjoining properties . The retaining walls would be recessed within the Project site so only the 6-foot­ high fence would be visible from the adjoining properties as shown on the renderings attached to this report.

Lockable Storage and Private Open Space
Providing the standards required for storage and private open space would result in the reduction of a bedroom and therefore reduce the feasibility of the development. The requested amount of storage and private open spaces is similar to what has been previously approved for affordable housing projects. PMC Section 17.26.770.G specifically allows the City Council to waive these two requirements if determined infeasible.

Affordable Housing Waivers
In addition to the concessions, the applicant is requesting a waiver as prov ided for by Article V of Chapter 17.26 and state Density Bonus Law when development standards and other regulations potentially make the construction of the affordable project physically infeasible.

RA Zone Standard Requested Waiver
50 trees per acre Less than 50 trees
The site cannot accommodate 100 trees within the remaining undeveloped area of the two-acre site.

The site is in the Very High Fire Hazard Area and therefore the area within which tree planting is recommended by the Fire Department is limited. A landscape plan will be required as part of the building permit for this Project and will be required to maximize the number of trees to be planted when considering compliance with the City's FMZ standards .

Affordable Housing Overlay Zone (AHOZ) Design Guidelines and Development Standards The Project meets the general guidelines and development criteria set in Sections 17.26.770.A and B for developing affordable housing on properties with an AHOZ. The Project is comparable to the number of bedrooms, exterior appearance, and overall quality of construction of other new market rate residential development and has an aesthetically pleasing architecture consistent with the surrounding development. The concessions/incentives and waivers for meeting development standards as noted above do not detract from the quality and compatibility of the Project.

Traffic Impact Analysis
A traffic impact analysis report was prepared for the Project. The analysis evaluated the existing and 6 of 95
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future conditions of the street network in the study area including project traffic. Traffic analyses were conducted for the intersections of Monte Vista Road with Pomerado Road, Monte Vista Road with the Project driveway, and for the street segment of Monte Vista Road (east of Pomerado Road). Other known projects within the study area that will add traffic to the area were also considered as a part of this report.

The General Plan requires evaluation of the Level of Service (LOS) of surrounding intersections to ensure adequate capacity exists to accommodate Project traffic with an LOS "D" or better. The report concluded that the intersections are calculated to operate acceptably at LOS "B" or better during the AM and PM peak hours under all scenarios. The study area street segment is calculated to operate acceptably at LOS "A" under all scenarios. The Project will be required to prohibit curbside parking on the north curb of Monte Vista Road, south/east of the Project driveway to ensure the Project driveway meets City sight distance standards.

Affordable Housing Agreement. Ground Lease. and Other Necessary Documents:

Housing Authority staff and the Developer diligently negotiated the terms of the proposed AHA and Attachments (Attachment L), establishing the terms and conditions for the Ground Lease of the Property and the development and operation of the Project. HSC Section 33433 requires that a copy of the proposed AHA and related documents be provided to the public prior to the public hearing, together with the Summary Report (Attachment M) prepared pursuant to Section 33433 summarizing specific points relating to the lease and development of the Property and to land and construction costs.

Under the AHA, the Authority requires forty-nine percent (49%) (i.e. twenty-nine (29)) of the units in the Project to be restricted and occupied by extremely low-, very low-, and low-income households not to exceed 59% AMI, at an affordable rent, for the "restricted period" (which restricted period will be at a minimum of 70 years to potentially 99 years (to be consistent with the term of the Ground Lease to be determined at the closing for the ground lease and construction financing). Further, the Developer has agreed and covenanted to the Authority in the applicable agreements that all other units (other than one manager's unit) in the Project will, by the Developer's voluntary action, be subject to low-income housing tax credits' regulations and rental restr ictions. In addition, one of the confirmed funding sources for the Project is from the California Department of Developmental Services (DDS). This DDS funding requires, as a condition of its loan, that a certain number of units be occupied by an adult household member who is developmentally disabled and, in this regard, the Developer has agreed and covenanted to the Authority in the applicable agreements that at least fifteen (15) units will be restricted . Further, the Property has previously been determined "exempt surplus land" under the California Surplus Land Act set forth at California Government Code Section 54220 et seq., and specifically pursuant to California Government Code Section 54221 (f)(1 )(F). As such, the Developer has agreed and covenanted to comply with all applicable covenants and restrictions on the Project as set forth in California Government Code Section 54221 (f)(1 )(F) (including, but not limited to, affordable income and rent restrictions) .

In total, the Project includes a commitment by the Developer to build eighteen (18) units targeting extremely low-income households (30% AMI), ten (10) units targeting very low-income (50% AMI) households and thirty-one (31) units to low-income (59% AMI) households . There will also be one manager's unit. In terms of size of the units, one-bedroom units are at least 545 square feet, two­ bedroom units are at least 818 square feet, and three-bedroom units are at least 1,100 square feet . 7 of 95
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Additionally, the proposed Project will provide a full-time on-site resident services coordinator to offer a supportive resident services program to meet the needs of all residents.

The current proposed budget for the Project provides sufficient sources of funds for all improvements and costs including the energy and water conservation features proposed. Specifically, while the exact amounts offunding will be determined prior to the close of escrow for the construction phase funding and for the permanent phase funding, the Developer proposes to finance the Project by a combination of:
(i) a construction loan of approximately $24,609,340 and a permanent loan of approximately $9,865,786 (which permanent loan may be obtained through the issuance of tax-exempt mortgage revenue bonds for the Project);
(ii) Developer Equity including Low-Income Housing Tax Credits equity of approximately $2,978,202 during the construction phase and approximately $19,854,678 during the permanent phase, a deferred Developer Fee of approximately $1,300,000 during the permanent phase, and General Partner equity capital contribution of approximately $1,100,000 during the permanent phase;
(iii) a construction to permanent loan from the State of California's Department of Developmental Services of $2,250,000 for affordable housing rental units occupied by persons with developmental disabilities;
(iv) a construction to permanent loan from the County of San Diego's Innovative Housing Trust Fund of approximately $3,000,000;
(v) a construction to permanent grant of approximately $1,000,000 from the Federal Home Loan Bank to Wakeland (an affiliate of the Developer) under the Federal Home Loan Bank Affordable Housing Program, which grant funding will be loaned by Wakeland to the Developer for the Project;
(i) a construction to permanent loan lease from the Authority in the total amount of $4,590,000 representing the Authority's contribution to the Developer for payment of the fully capitalized rent under the Ground Lease; and
(ii) such other or alternative construction period and/or permanent period financing proposed by the Developer and approved by the Authority . In addition, the Developer proposes to obtain rent subsidies from the Project Based Section 8 Voucher Program administered by the County of San Diego.

As noted in (vi) above, the Housing Authority's contribution to the project is a long-term lease of the property to the Developer at the closing in the amount of $4,590,000 (which amount is equivalent to the fair market value of the Property as shown in an independent appraisal of the Property as of September 13, 2022). The Authority's lease is gap financing intended solely to finance the Developer's capitalized lease payment required for the lease of the Property pursuant to the Ground Lease. The Authority's lease is subject to the terms and provisions of the AHA and will be evidenced by a Promissory Note and secured by a Deed of Trust recorded on the Developer's leasehold estate. The Authority's lease will have a term consistent with the term of the Ground Lease and the restricted period (which will be a minimum of 70 years to potentially 99 years, to be determined at closing) at

3.0% simple interest, and will be repaid by the Developer from a share of residual receipts from the operation of the Project (i.e. annual cash flow of Project after payment of debt service, fees, and costs).

The Section 33433 Summary Report prepared in connection with this Project justifies that the ground 8 of 95
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lease/sales price of the Property is not less than the "fair reuse value" of the Property given the Authority's affordability restrictions and covenants. It further describes why the Project will eliminate blight and confirms the Project is consistent with the Former RDA's Implementation Plan.

At the expiration of the Ground Lease term, the land and the improvements revert to the Authority's full and exclusive ownership. Construction is scheduled to begin not more than 60 calendar days from the close of escrow and will be complete by December 31, 2027.

General Plan Conformance Finding:

In connection with the disposition of the Property, California Government Code Section 65402(a) requires that, if the adopted General Plan applies to the Property, the "planning agency" of the City shall report on the conformance of the location, purpose, and extent of the proposed disposition of the Property for the purposes and uses proposed by the Developer with the adopted General Plan of the City. In this regard, location, purpose, and extent of the proposed disposition of the Property for the purposes and uses proposed by the Developer as described in the AHA documents are in conformance with the City's General Plan because (i) the Project site is located within an AHOZ, is identified in the City's Housing Element, and will include the development of affordable housing, and (ii) the Project includes 60 units, which meets the target density in the AHOZ of 30 units/acre maximum allowable density for this Property.

Neighborhood Meeting:

On December 5, 2022, and April 24, 2024, neighborhood meetings were held to discuss preliminary plans for the proposed Project. At the April 24, 2024, meeting, two invitees attended the meeting who represented the Country Montessori School located across the street from the Project site and asked questions regarding parking and public safety. Prior to the meeting, staff received a phone call and an email from a third invitee who was unable to attend the meeting in person and lives in a home at the end of Monte Vista Road and who expressed concern about how the additional traffic volumes and parking generated by the project can safely be accommodated on Monte Vista Road considering the current traffic and parking situation on the street.

Environmental Review:

The proposed Project pursuant to DR 23-0003 and the AHA, including the Ground Lease, as well as the activities proposed to be undertaken under those agreements and pursuant to the City's entitlements and approvals for the proposed Project, is determined to be categorically exempt from the CEQA as a Class 32 "Infill" Categorical Exemption. Specifically, such Project and activities constitute an infill project meeting all of specified criteria in Section 15332 of the CEQA Guidelines as follows: (a) the Project is consistent with the General Plan designation and all applicable General Plan policies as well as with applicable zoning designation and regulations because (i) the Project site is located within an AHOZ, is identified in the City's Housing Element, and will include the development of affordable housing, and (ii) the Project includes 60 units, which meets the target density in the AHOZ of 30 units/acre maximum allowable density for this Property; (b) the Project is occurring within the City limits on a Project site that is 2.06 acres which is no more than five acres and substantially surrounded by developed urban uses (and the land is disturbed); (c) the Project site has no value as a habitat for endangered, rare or threatened species; (d) approval of the Project does not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the Project site is adequately served 9 of 95
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by all required utilities and public services. Finally, none of the exceptions to CEQA's Class 32 categorical exemption apply here (see, CEQA Guidelines §15300.2), and specifically, no unusual circumstances exist that would result in reasonable possibility that the Project will have a significant impact on the environment.

Fiscal Impact:

The Housing Authority's contribution to the project will be a long-term lease of the property in the amount of $4,590,000 to finance the Developer's capitalized lease payment required for the lease of the Property pursuant to the Ground Lease. The proceeds of the Authority's loan will immediately be used by the Developer exclusively to pay to the Authority the Developer's capitalized lease payment required for the lease of the Property pursuant to the Ground Lease. The Authority's contribution will have a loan term consistent with the term of the Ground Lease and the restricted period (which will be a minimum of 70 years to potentially 99 years, to be determined at closing) at 3.0% simple interest, and will be repaid by Developer from a share of residual receipts from the operation of the Project (i.e. annual cash flow of Project after payment of debt service, fees and costs). The current balance of the Housing Authority Fund is $5,244,947.

Public Notification:

This joint public hearing of the City Council and the Housing Authority Board was appropriately noticed and, in accordance with HSC Sections 33431 and 33433, a notice of the hearing was published in the November 7, 2024, and November 14, 2024, issue of the Poway Chieftain. Additionally, mailed notice of the hearing was sent to all property owners and occupants within 500 feet of the Property/Project site.

Attachments:

A. Resolution of the City Council (i) Approving DR 23-0003, (ii) Determining a Class 32 "Infill" CEQA Categorical Exemption for Project, and (iii) Finding General Plan Conformance B. Resolution of the City Council Approving the Affordable Housing Agreement and Attachments, the Ground Lease of Property, and Ancillary Documents Related to its Implementation, and Approving Other Related Actions
C. Resolution of the Housing Authority Approving, and Authorizing the Executive Director to Execute, the Affordable Housing Agreement and Attachments, the Ground Lease of Property, and Ancillary Documents Related to its Implementation, Approving the Authority loan, and Approving Other Related Actions
D. Zoning/Location Map
E. Site Plan & Conceptual Landscape Plan
F. Floor Plans and Elevations of Building I
G. Floor Plans and Elevations of Building II
H. Floor Plans and Elevations of Building Ill
I. Floor Plan and Elevations of Community Building
J. Renderings
K. Parking Garage Site Plan
L. Affordable Housing Agreement and Attachments
M. Section 33433 Summary Report
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Reviewed/Approved By:

We~~r~
Assistant City Manager
Reviewed By:

Alan Fenstermacher
City Attorney
Ap~ v,"]
c~
City Manager
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RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, (i) APPROVING DEVELOPMENT
REVIEW (DR) 23-0003 TO ALLOW THE CONSTRUCTION OF A
60-UNIT AFFORDABLE HOUSING DEVELOPMENT AT 12674
MONTE VISTA ROAD ; ASSESSOR’S PARCEL NUMBER 275-
460-61-00; (ii) DETERMINING THE PROJECT IS EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
PURSUANT TO THE CLASS 32 INFILL CATEGORICAL
EXEMPTION (CEQA GUIDELINES SECTION 15332 ); AND ( iii)

FINDING THE PROJECT IS IN CONFORMANCE WITH THE

GENERAL PLAN PURSUANT TO GOVERNMENT CODE
SECTION 65402(a)
WHEREAS, Development Review (DR) 23-0003 was submitted by Wakeland Housing and Development Corporation (Applicant) and Poway Housing Authority (Authority) as fee owner of the subject property, requesting approval to construct a 60-unit affordable housing development at 12674 Monte Vista Road (Property) located in the Commercial Office (CO) Zone with an Affordable Housing Overlay. The foregoing development will consist of three buildings in total, two residential buildings each two stories in height and a one -story community building, outdoor amenities and a subterranean parking garage (collectively, Project). Under separate approvals, the Authority proposes to ground lease the Property to Wakeland Monte Vista, LP, an affiliate of Applicant, for development, construction and operation of the Project; WHEREAS, on November 19, 2024, the City Council held a duly advertised public hearing to receive testimony from the public, both for and against, relative to DR 23-0003 and the other actions taken by this Resolution;
WHEREAS, on November 19, 2024, the City Council and the Authority will each hold a duly advertised public hearing to solicit comments from the public, both for and against, relative to an Affordable Housing Agreement by and between the Authority and Wakeland Monte Vista, LP, a California limited partnership (affiliate of Applicant), including a Ground Lease of the Property and all other Attachments and Exhibits thereto, establishing the terms and conditions for the lease of the Property and for the development and operation of the Project on the Property; WHEREAS, Poway Municipal Code (PMC) Section 17.52.010 establishes findings for granting a DR and PMC Section 17.26.770.A establishes development guidelines and standards for affordable housing projects on a property having an Affordable Housing Overlay; WHEREAS, the City Council has re viewed and considered the agenda report for the proposed Project, including the attachments, and has considered all other evidence presented at the public meeting; and
WHEREAS, the plans and documents for the Project are available on file in hard copy in the Development Services Department.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway (City) as follows:

SECTION 1: The above recitals are true and correct.

ATTACHMENT A
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Resolution No. 24-

SECTION 2: Pursuant to the California Environmental Quality Act ( CEQA) Guidelines Section 15332, the Project is categorically exempt from the CEQA, as a Class 32 “Infill” Categorical Exemption in that (a) the Project is consistent with the City’s General Plan designation and all applicable General Plan policies as well as with applicable zoning designation and regulations because (i) the Project site is located within an Affordable Housing Overlay Zone (AHOZ), is identified in the City’s Housing Element, and will include the development of affordable housing, and (ii) the Project includes 60 units, which meets the target density in the AHOZ of 30 units/acre maximum allowable density for this Property; (b) the Project is occurring within the City limits on a Project site that is 2.0 6 acres which is no more than five acres and substantially surrounded by developed urban uses (and the land is disturbed); (c) the Project site has no value as a habitat for endangered, rare or threatened species; (d) approval of the Project does not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the Project site is adequately served by all required utilities and public services. None of the exceptions to CEQA’s Class 32 categorical exemption apply here (see, CEQA Guidelines §15300.2), and specifically, no unusual circumstances exist that would result in reasonable possibility that the Project will have a significant impact on the environment.

SECTION 3: The findings for DR 2 3-0003, in accordance with the PMC Section

17.52.010 are made as follows:

A. The project has been designed to be architecturally compatible with surrounding development and conforms with the Affordable Housing Overlay Zone. As designed, the reduction in the standards for private open space and lockable storage, the height of fencing and wall height in excess of six feet, and the three -story character of the development can be permitted pursuant to the Affordable Housing Overlay provisions and will not detract from the aesthetic quality of the project in itself or the surrounding area.

Therefore, the project respects and recognizes the interdependence of land values and aesthetics to the benefit of the City.

B. The project has been designed to minimize impacts on surrounding development by providing a compatible architectural design and landscaping consistent with surrounding development. Therefore, the proposed development respects the public concerns for the aesthetics of development and encourages the orderly and harmonious appearance of structures and property within the City.

C. The granting of the DR would not be materially detrimental to the public health, safety or welfare within the community since the proposed development will complete improvements necessary for the development and the development will comply with an approved Fire Plan created particularly for the site.

D. The project been designed in a contemporary Spanish architectural style with several architectural enhancements and is compatible with surrounding architectural design .

Therefore, the proposed development respects the public concern for aesthetic development.

E. The project will incorporate architecture, landscaping and fencing that will not negatively impact the health, safety or architecturally upon existing adjoining properties, or the City in general.

F. The design and improvement of the proposed development are consistent with all elements of the Poway General Plan and Zoning Code.
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SECTION 4: The findings for DR 23-0003, in accordance with Government Code Section 66020 for the public improvements needed as a result of the proposed Project to protect the public health, safety and welfare, are made as follows:

A. The design and improvements of the proposed development are consistent with all elements of the Poway General Plan, as well as City Ordinances, because all necessary facilities will be available to serve this project.

B. The construction of public improvements of providing a fire hydrant to serve the development is needed as a result of the proposed Project to protect the public health, safety, and welfare, as further described in the conditions of approval.

C. In accordance with the Poway General Plan, the proposed Project requires the payment of development impact fees, which are assessed on a pro -rata basis to finance public infrastructure improvements, which promote a safe and healthy environment for the residents of the City.

SECTION 5: The City Council hereby approves DR 23-0003 as shown on the plans stamped as approved on November 19, 2024, on file in the Development Services Department, except as noted herein, and subject to the following conditions:

A. Approval of this DR request shall apply only to the subject project and shall not waive compliance with all sections of the Zoning Ordinance , and all other applicable City Ordinances and Codes in effect at the same time of Building Permit Issuance.

B. The applicant shall defend, indemnify, and hold harmless the City, its agents, officers, and employees from any and all claims, actions, proceedings, damages, judgments, or costs, including attorney's fees, against the City or its agents, officers, or employees, relating to the issuance of this permit, including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification.

In the event of such election, applicant shall pay all of the costs related thereto, including without limitation reasonable attorn ey's fees and costs. In the event of a disagreement between the City and applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter. However, the applicant shall not be required to pay or perform any settlement unless such settlement is approved by applicant.

C. Within 30 days of the date of this approval, and before the issuance of any permit , the Applicant shall submit in writing that all conditions of approval have been read and understood the Statement of Understanding (SOU).

D. This approval is based on the existing site conditions and proposed project details represented on the plans stamped as approved on November 19, 2024 , on file at the Development Services Department. If actual conditions and details vary from representations on the approved plans , the approved plans must be changed to reflect the existing site conditions and proposed project details. Any substantial changes to the approved plans must be approved by the Director of Development Services and may require approval of the City Council if the Director of Development Services finds that the proposed changes do not substantially conform to approved plans. 14 of 95
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E. Condition Declared Void. Whenever there becomes final any judgement of a court of competent jurisdiction declaring one or more of the conditions of a development review approval to be void or ineffective, or enjoining or otherwise prohibiting the enforcement or operation of one or more of such conditions, said development review approval shall cease to be valid and all rights or privileges granted thereby shall lapse, as provided by PMC 17.52.110.

F. Violation of Condition. Whenever a development review is approved or modified by the approving authority subject to a condition or conditions, use or enjoyment of the development review approval in violation of or without observance of any such conditions shall constitute a violation of the zoning ordinance and said development review approval may be revoked or modified as provided in PMC 17.52.100. (Ord. 113 §§ 1 (Exh. A 10.3.9), 2, 1983; Ord. 44 § 3 (Exh. A), 1981)

G. The developer is required to comply with the Poway Noise Ordinance (PMC Chapter 8.08) requirement that govern construction activity and noise levels.

H. Prior to issuance of a Building Permit, the applicant shall obtain approval of a Grading Permit. Compliance with the following conditions is required prior to issuance of the Grading Permit:

(Engineering)

1. Submit a precise grading plan for the development of the lot prepared on a City of Poway standard sheet at a scale of 1" = 20', unless otherwise approved by the City project engineer. The plans shall use vertical datum NAVD88. Please be aware that all elevations in the Poway Benchmark list are datum NGVD 29 and will need to be converted. Submittal shall be made to the Department of Devel opment Services Engineering Division for review and approval. The grading design shall be 100% complete at the time of submittal, ready for approval and issuance of permit.

Incomplete submittals will not be accepted. All technical studies as required by Chapter 16 of the PMC shall be submitted. The applicant shall pay the grading permit and plan check fee according to the latest adopted master fee schedule.

2 The applicant shall incorporate Low Impact Development (LID) design features into the site development. These shall be clearly shown and identified on the grading plan and be appropriately sized for the proposed level of development.

3 The applicant must show upgrades to all driveways serving the property to be Americans with Disabilities Act (ADA) compliant. The applicant must be approved for Right-of-Way (ROW) permit prior to start of construction.

4. A drainage study addressing the impacts of the 100 -year storm event prepared by a licensed Civil Engineer is to be submitted and approved. The study shall evaluate existing and proposed hydrologic and hydraulic conditions to the satisfaction of the City project engineer.

5. Water Quality Control – Design and Construction:

The project shall comply with the City and Regional Water Quality Control Board stormwater requirements. The project is considered a Priority Development Project 15 of 95
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and will be subject to all City and State requirements. Two copies of a final Storm Water Quality Management Plan (SWQMP) prepared by a registered Civil Engineer is to be submitted and approved.

Once the final SWQMP is approved:

a. Provide two copies of an Operation & Maintenance (O&M) plan in accordance with Chapter 16.104 of the PMC, and a signed PDF version.

b. The developer shall execute an approved Storm Water Facilities Maintenance Agreement (SWFMA) accepting responsibility for all structural BMP maintenance, repair and replacement as outlined in the Operations and Maintenance plan. The operation and maintenance requirements shall be binding on the land throughout the life of the project as outlined in section 16.104 of the PMC.

6. Water Quality Control – Construction Storm Water Management Compliance.

If the project proposes to disturb an area greater than 1 acre, proof of coverage under the General Permit for Discharges of Storm Water Associated with Construction Activity shall be provided to the City along with a copy of the Storm Water Pollution Prevention Plan (SWPPP).

7. If the disposal of groundwater is necessary during construction , a dewatering plan shall be submitted for review and approval. Extracted groundwater should be discharged to surface waters under the current general National Pollutant Discharge Elimination System (NPDES) permit adopted by the California Regional Water Quality Control Board (RWQCB). Proof of coverage under this permit will be required. To protect water quality in the San Diego area, the City recognizes that it may be necessary to accept discharges of extracted groundwater to the sewer system.

Discharges to the sewer system will only be allowed if it is determined that sewering this wastewater is the most appropriate and prudent disposal alternative and when sufficient hydraulic and treatment plant capacity is available to allow such discharges into the sewer system. Grading securities shall be posted with the City prior to grading plan approval per section 16.46.080 of the PMC. A minimum cash security of $2,000.00 is required in all instances.

8. The applicant shall pay the storm water pollution inspection fee according to the latest adopted master fee schedule.

9. Any existing and proposed public easements shall be depicted on the grading plans.

The proposed public easement dedications shall be submitted prior to grading permit issuance.

10. Any private improvements within any publicly held easement or ROW may require an encroachment agreement as determined necessary by the City Engineer. All necessary encroachment agreements shall be approved and executed prior to grading permit issuance.

11. Following approval of the grading plans, posting of securities and fees, and receipt of three copies of the approved plans, the applicant shall attend a pre -construction meeting at the Department of Development Services. The scheduling request shall 16 of 95
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be submitted on a City standard form found at
https://poway.org/DocumentCenter/View/10254/Preconstruction-Meeting-Request- Fillable?bidId= along with three copies of the approved grading plans. The applicant’s action plan that identifies measures to be implemented during construction to address erosion, sediment and pollution control will be discussed. Compliance for sediment control shall be provided as directed by the project inspector.

12. Prior to start of any work within a City-held easement or ROW, a ROW Permit shall be obtained from the Engineering Division of the Development Services Department. All appropriate fees shall be paid prior to permit issuance.

13. Construction staking is to be inspected by the Engineering Inspector prior to any clearing, grubbing or grading. At a minimum, all protected areas as shown on the approved grading plans are to be staked under the direction of a licensed land surveyor or licensed civil engineer and delineated with lathe and ribbon. As applicable, provide two copies of a written certification, signed and sealed in accordance with the Business and Professions Code, by the engineer of record stating that all protected areas have been staked in accordance with the approved plans.

(Traffic Engineering)

14. The project driveway shall be designed to meet City sight distance standards. This will require prohibiting curbside parking on the north curb of Monte Vista Road, south/east of the project driveway.

(Planning)

15. The applicant shall submit landscape and irrigation plans . Landscape plans must conform to the standards provided in the PMC 17.41 Landscape and Irrigation Efficiency, PMC 12.32 Urban Forestry, and the Poway Landscape and Irrigation Design Manual, and other regulations as required.

The landscape and irrigation plan submittal is a separate submittal from other project plan check submittals and is made directly to the Planning Division. Landscape and irrigation plan review fees are required and are the responsibility of the applicant.

16. A Tree Removal Permit shall be obtained prior to the removal of existing trees. A separate permit is required for trees within the public right-of-way and trees located on private property. The removal of both public and private trees shall conform to Chapter

12.32 (Urban Forestry) Articles II and III of the PMC. If the trees are proposed to be removed during the recognized nesting season for birds (February 15 through August 15), a nesting bird survey shall be conducted by a qualified biologist and report the findings in writing to the City. Between February 15 and August 15, removal of trees containing nests shall be delayed until such time as the nest(s) have been abandoned unless the removal can be completed in accordance with California State codes and the Federal Migratory Bird Treaty Act of 1918).

17. The applicant shall submit to the City’s Planning Division (City Planner) for its review and approval a Construction Noise Management Plan (CNMP) in compliance with the noise study dated April 2024. Notes shall be added to the grading plans consistent 17 of 95
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with the CNMP.

18. The applicant shall submit to the City’s Planning Division (City Planner) for its review and approval a Blasting Plan (CNMP) in compliance with the noise study dated April 2024 so that blasting activities, if required, can be scheduled to maximize safety and minimize noise disturbance. Notes shall be added to the grading plans consistent with the approved Blasting Plan.

I. Prior to issuance of a Building Permit the applicant shall submit building plans consistent with the approved project plans on file in the Development Services Planning Division.

Compliance with the following conditions is required prior to issuance of the Building Permit:

(Building)

1. The development shall comply with the current addition of the California Building Code, California Residential Code, California Plumbing Code, California Mechanical Code, California Electrical Code, California Fire Code, California Energy Code and California Green Code at time of submittal to the Building Division. All development shall comply with state structural calculations and seismic safety requirements.

2. The accessible parking will be reviewed during plan review thru the Building Division.

(Engineering)

3. The site shall be developed in accordance with the approved grading plans on file in the Development Services Department and the conditions contained herein. Grading shall be in accordance with the Uniform Building Code, the City Grading Ordinance, the a pproved grading plan, the approved soils report, and grading practices acceptable to the City.

4. Erosion control shall be installed and maintained by the developer from October 1 to April 30. The developer shall maintain all erosion control devices throughout their intended life.

5. The applicant shall obtain a Grading Permit and complete rough grading of the site.

The grading shall meet the approval of the Engineering Inspector and the project’s geotechnical engineer. Following completion of rough grading, please submit the following:

a. Two copies of certification of line and grade for the lot, prepared by the civil engineer of work.

b. Two copies of a soil compaction report for the lot, prepared by the project’s geotechnical engineer.

c. The certification and report are subject to review and approval by the City.

6. Improvement plans prepared on a City of Poway standard sheet at a scale of 1" = 20', unless otherwise approved by the City project engineer, in accordance with the submittal and content requirements listed in the PMC shall be approved. Submittal 18 of 95
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shall be made to the Department of Development Services Engineering Division for review and approval. The improvement design shall be 100% complete at the time of submittal and ready for approval. The applicant shall pay the improvement plan check fees according to the latest adopted master fee schedule. The plan shall include, at a minimum, the following features:

a. A fire hydrant to service the project, served by a public water main (see Water Analysis requirement below).

b. A plat and legal description (to be submitted separately via an Easement Submittal) for a minimum 20-foot-wide water easement shall be submitted concurrently to accommodate the public water main on the project site.

7. A water analysis (to be completed by the City consultant and paid for by the applicant) will be required for the water system design prior to improvement plan approval. Once the fire hydrant configuration has been accepted by the Fire Department, please email [email protected] a pdf of the configuration and she will coordinate with the City’s consultant on the water analysis fee required. Once the applicant has paid the fee, the water analysis can begin and typically takes 2 -3 weeks to complete. Please proceed with this immediately so that the analysis can occur while you continue to work on plan revisions and/or during the next plan review.

8. The applicant shall enter into a Standard Agreement for the work to be done as part of the Public Improvement plan. The applicant will be responsible for posting securities for public improvements in accordance with the PMC Section 16.20.

9. The applicant shall pay all applicable development impact fees according to the latest adopted master fee schedule at time of permit issuance.

10. If there is an instrument for Covenants, Conditions, and Restrictions (CC&R), which addresses construction and maintenance of the private road, slopes, utilities, drainage, or accesses in the development, said CC&Rs shall be reviewed by the City prior to recordation.

(Public Works – Facilities Maintenance)

11. Root barriers shall be provided for all trees near the City ROW or easements.

(Planning)

12. School impact fees shall be paid at the rate established at the time of Building Permit issuance. Please contact the Poway Unified School District for additional information at (858) 679-2570.

13. The applicant shall comply with the latest adopted construction related codes, and all other applicable codes and ordinances in effect at the time of Building Permit issuance.

14. Exterior building and wall materials and finishes shall be specified on the building plans and shall be consistent with the approved DR plans to the satisfaction of the Director of Development Services.

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15. The height and materials of fences shall be clearly called out on the plans.

16. Site lighting, including lights on poles and on structures, shall be shielded and shall PMC standards. Wall-mounted security lights shall only be used on the rear or interior sides of buildings.

17. Any signs proposed for this development shall be designed and approved in conformance with PMC sign ordinance . The necessary Sign Permit(s) and Building Permit(s) approvals for signage shall be obtained prior to installation.

18. The landscape and irrigation plans submitted with the grading plan shall be approved.

(Public Works – Drainage)

19. All stormwater assets on property will be private and the maintenance and repairs shall be the responsibility of the developer.

J. The following improvements shall be provided to the satisfaction of the Fire Chief:

1. This parcel is located within the very high fire hazard severity area of the City and is new construction; therefore, the California Building Code Chapter 7A and the PMC

15.24 shall apply. Ignition resistant class I construction shall be required per the California Building Code Chapter 7A.

2. Approved water supplies, capable of supplying the required fire flow of 1500GPM for fire protection, shall be provided to all premises within 400 feet of all structures following an approved route. A water analysis shall be performed to establish the adequacy of the existing water main and all necessary system design to serve the project. Costs of the water analysis shall be the responsibility of the applicant. The approved water supply for fire protection, either temporary or permanent, shall be made available as soon as combustible materials arrive on site.

3. Fire sprinkler systems, fire alarm systems, underground fire mains, fire hydrants, and courtyard wet standpipe with FDC shall be required. Each building shall be protected by a fire sprinkler and fire alarm system. A new fire hydrant shall be placed at the entrance between building 1 and the parking spaces. An FDC serving the wet standpipe system shall be placed near the new fire hydrant. The wet standpipe system shall be placed in the courtyard between buildings 2 and 3. The fire alarm system shall be designed for ADA. Separate plan submittals and approvals to the Poway Fire Department, Division of Fire Prevention, prepared by a licensed sprinkler contractor or fire protection engineer are required prior to installation. There are separate fees for these plan check and inspection services. If a pressure pump is required for fire sprinkler system operations, then auxiliary power is required. All fire protection designs shall meet the CFC, NFPA, and Poway Fire Codes.

4. Fire apparatus access roadways and driveways shall have an unobstructed, improved width of not less than 20 feet, except that single -family residential driveways serving no more than two improved parcels containing dwelling units are permitted to have a minimum of 16 feet of unobstructed improved width. In most cases, the City construction standards for streets (Chapter 12.20 PMC) will be more restrictive. The more restrictive standards shall apply. Vertical overhead clearance shall be a minimum 20 of 95
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of 13 feet 6 inches. Fire apparatus access roads shall be designed and maintained to support the imposed loads of a fire apparatus at not less than 75,000 pounds and shall be provided with an approved paved surface to provide all-weather driving capabilities.

A paved driving surface shall mean asphalt, concrete, permeable paving system, or Decomposed Granite (DG) when utilized only on the immediate driveway serving the single-family dwelling or accessory structure and the grade is five percent or less and is followed with an engineered geotechnical report indicating said material and construction meets the minimum 75,000 -pound fire apparatus weight capacity. The turning radius of a fire apparatus access road shall be a minimum of 28 feet as measured to the inside edge of the improvement width.

5. The gradient for a fire apparatus access roadway/driveway shall not exceed 20 percent. Grades 16 to 20 percent (incline or decline) shall be constructed of Portland cement concrete (PCC), with a deep broom finish perpendicular to the direction of travel, or equivalent, to enhance traction. Grades 10 to 15 percent shall be constructed of asphalt or PCC. Permeable paver systems shall only be utilized for grades 0 to 9 percent. DG may be utilized only for the immediate driveway serving the single-family dwelling or accessory structure and not the main fire apparatus roadway. DG shall only be approved when the driveway grade is five percent or less. The angle of departure and the angle of approach of a fire access roadway/driveway shall not exceed 12 percent.

6. All dead-end fire access roadways/driveways greater than 150 feet in length shall be provided with approved provisions that allow emergency apparatus to turn around.

Turnarounds shall comply with the City ’s Fire Department Turnaround Policy. A cul - de-sac shall be provided in residential areas where the access roadway serves more than two improved parcels containing dwelling units. The minimum, unobstructed paved radius width for a cul-de-sac shall be 38 feet in residential areas.

7. Driveways shall extend to within 150 feet of all portions of the exterior walls of the first story of the structure as measured by an approved route around the exterior of the building, unless formally approved by the fire marshal under an exception to extend.

8. Fire apparatus roadways and driveways for fire protection, either temporary or permanent, shall be made available as soon as combustible materials arrive on site.

9. Approved address shall be placed on all new and existing buildings and at appropriate additional locations as to be plainly visible and legible from the street or roadway fronting the property from either direction of approach. Addresses shall contrast wit h their background and shall meet the City ’s standards. The address shall also be required at the private driveway entrance.

10. All automatic gates across fire access roadways and driveways shall be equipped with a Knox Gate Key Switch overriding all command functions and opening gate(s) for emergency apparatus vehicles.

11. Buildings and structures located within the Very High Fire Hazard Severity Area shall be set back from the top of slope(s). Single-story structures shall be set back a minimum 15 feet horizontally from top of slope to the farthest projection from a roof. A single-story structure shall be less than 12 f eet above grade. A two -story structure shall be setback a minimum of 30 f eet horizontally from top of slope to the farthest projection from a roof. Structures greater than two stories may require a greater 21 of 95
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setback when the slope is greater than 2 to 1. The structure setbacks shall be reflected in the site plan. Show scaled cross section profiles denoting the top of the slope, building/roof projections, and the setback distance at multiple locations on the pl an submittal.

12. The project shall comply with Section Four of the City ’s Landscape and Irrigation Design Manual and PMC 15.24 as it relates to fuel management and defensible space.

One hundred feet of fuel management consisting of 5 feet of Zone 0, 30 feet of Zone 1, and 70 feet of Zone 2, is required. Mitigation is required where 100 feet of fuel management cannot be achieved within the parcel boundaries. 10 feet of vegetation fuel modification, meeting Zone 2 requirements, shall be maintained on both sides of the driveway and fire access roadway fronting the property when not already within a fuel modification zone (Mitigation is required where 100 feet of fuel management cannot be achieved within the parcel boundaries. Applicant shall contact the Fire Marshal at (858) 668-4471 to review mitigation options). The landscape plan requires a separate landscape and irrigation plans submittal prepared pursuant to the City ’s Landscape and Irrigation Design Manual requirements. Section Four and Fuel Modification Zones shall be reflected in the site plan. There is a separate fee for this plan check and inspection services.

13. The applicant shall submit and receive signed approval of landscape and irrigation plans prior to the issuance of the building permit.

14. All fuel modifications shall be installed prior to the final inspection for issuance of a certificate of occupancy.

15. All flammable vegetation within the approved fuel modification zone shall be removed prior to the arrival of combustible material on the site and shall be maintained during the duration of the project until all elements of approved fuel modification zones are installed and approved.

16. Smoke alarms shall be installed in all bedrooms and adjoining hallways, and on each separate floor, and shall be interconnected.

17. Carbon monoxide alarms shall be installed in hallways adjoining bedrooms, and on each separate floor, and shall be interconnected.

K. Compliance with the following conditions is required prior to issuance of a Certificate of Occupancy and release of securities:

(Engineering)

1. No occupancy can be granted until the City’s Capital Improvement Project to repair the weir within the manhole in Pomerado Road (fronting 15708 Pomerado Road, asset ID M4-001-SM) has been completed. The anticipated timing for completion is June 30, 2026.

2. The stormwater facilities shall be complete and operational prior to occupancy.

3. The applicant shall install approved trash treatment devices per the Storm Water Trash Facilities Maintenance Agreement (SWTFMA) to the satisfaction of the Engineering 22 of 95
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Inspector.

4. All applicable easement dedications and maintenance agreements are to be recorded prior to occupancy.

5. All existing and proposed utilities or extension of utilities required to serve the project shall be installed underground. No extension of overhead utilities shall be permitted.

6. All utility services shall be installed and completed by the developer and inspected and approved by the Engineering Inspector. All new utility services shall be placed underground.

7. The drainage facilities, driveway, slope planting measures, and all utility services shall be installed, and completed by the developer, and inspected by the Engineering Inspector for approval.

8. An adequate drainage system around the new building pad capable of handling and disposing all surface water shall be provided to the satisfaction of the Engineering Inspector.

9. The applicant shall repair, to the satisfaction of the City Engineer, any and all damages to public improvements caused by construction activity from this project.

10. After completion of all work, record drawings, signed by the engineer of work, shall be submitted to Development Services for review prior to a request of occupancy, per Section 16.52.130B of the Grading Ordinance. Approval of record drawings is required prior to issuance of occupancy and release of grading securities. Initial submittal of record drawings at least three weeks prior to a request for occupancy is recommended.

11. After completion of all work, record drawings for both the grading and improvement plans, signed by the engineer of work, shall be submitted to Development Services for review prior to a request of occupancy, per Section 16.52.130B of the Grading Ordinance. Approval of all record drawings is required prior to issuance of occupancy and release of grading and improvement securities. Initial submittal of record drawings at least three weeks prior to a request for occupancy is recommended.

12. The applicant must complete upgrades of all driveways as shown on the site plan to be ADA compliant. The applicant must be approved for R OW permit prior to start of construction.

(Planning)

13. Approval of this request shall not waive compliance with all sections of the Zoning Ordinance and all other applicable City regulations in effect at the time of Building Permit issuance.

14. Landscaping and irrigation shall be installed per the approved landscape plans.

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15. Any signs proposed for the Project shall be designed in accordance with the Sign Ordinance. The necessary Sign Permit(s) and Building Permit(s) approvals for signage shall be obtained prior to installation.

16. Prior to any use of the project site, or business activity being commenced thereof, all conditions of approval contained herein shall be completed to the satisfaction of the Director of Development Services.

17. Final inspections, including Planning Inspection, is required prior to the Certificate of Occupancy.

L. Compliance with the following conditions is required upon occupancy:

1. Prior to the opening of business, the applicant shall apply to obtain a Business Certificate through the City’s Customer Service Department . Prior to a Business Certificate, the site shall be developed in accordance with the approved plans on file in the Development Services Department and the conditions contained herein. A final inspection from the appropriate City departments will be required.

2. All landscaped areas shall be maintained in a healthy and thriving condition, free from weeds, trash , and debris. The trees shall be encouraged and allowed to retain a natural form. Pruning should be restricted to maintaining the health of the trees and to protect the public safety. Unnatural or excessive pruning, including topping, is not permitted.

3. Parking of recreational vehicles will not be permitted on site.

SECTION 6: The current project approval of DR 23-0003 shall expire on November 19, 2026, at 5:00 p.m., unless a Building Permit has been issued, and construction or use of the property in reliance on this permit has commenced on the property; unless a request for a time extension is submitted to the Development Services Department and a time extension is subsequently granted by the City Council prior to the expiration.

SECTION 7: The location, purpose, and extent of the proposed disposition of the Property for the purposes and uses proposed by Applicant and its affiliate Wakeland Monte Vista, LP are in conformance with the City’s General Plan because (i) the Project site is located within an Affordable Housing Overlay Zone (AHOZ), is identified in the City’s Housing Element, and will include the development of affordable housing, and (ii) the Project includes 60 units, which meets the target density in the AHOZ of 30 units/acre maximum allowable density for this Property.

SECTION 8: The parties are hereby informed that the time within which judicial review of this extension must be sought is governed by Section 1094.6 of the California Code of Civil Procedure.

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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the C ity Council of the City of Poway, California on the 19th day of November, 2024 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALIFIED:

______________________________
Steve Vaus, Mayor

ATTEST:

____________________________________
Carrie Gallagher, CMC, City Clerk
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, (i) APPROVING THE SUMMARY

REPORT PREPARED PURSUANT TO CALIFORNIA HEALTH
AND SAFETY CODE SECTION 33433 AND MAKING REQUIRED
FINDINGS PURSUANT TO SECTION 33433; (ii) APPROVING
THE LEASE OF PROPERTY LOCATED AT 12674 MONTE VISTA
ROAD, POWAY, CALIFORNIA (APN 275 -460-61-00) AND THE

AFFORDABLE HOUSING AGREEMENT BETWEEN THE POWAY

HOUSING AUTHORITY AND WAKELAND MONTE VISTA, LP,

INCLUDING THE GROUND LEASE AND ALL OTHER

ATTACHMENTS, FOR THE LEASE OF THE PROPERTY AND
DEVELOPMENT AND OPERATION OF A 60 -UNIT MULTI -

FAMILY AFFORDABLE RENTAL HOUSING PROJECT ON THE
PROPERTY; AND (iii) APPROVING OTHER RELATED ACTIONS
WHEREAS, the Poway Housing Authority (Authority) is a public body, corporate and politic, organized, and existing under the California Housing Authorities Law pursuant to California Health and Safety Code (HSC) Section 34200 et seq. (Housing Authorities Law); WHEREAS, the former Poway Redevelopment Agency (Redevelopment Agency) was a public body, corporate and politic, organized, and existing under the California Community Redevelopment Law pursuant to HSC Section 33000 et seq. (Redevelopment Law); WHEREAS, pursuant to the Redevelopment Law, the City Council of the City adopted the Redevelopment Plan (Redevelopment Plan) for the Paguay Redevelopment Project Area (Project Area) for implementation by the Redevelopment Agency. The former Redevelopment Agency adopted an implementation plan for the Project Area in accordance with HSC Section 33490 of the Redevelopment Law (Implementation Plan);
WHEREAS, the Redevelopment Agency was allocated certain property tax increment revenues from the Project Area, and not less than twenty percent (20%) of such property tax increment revenues received by the Redevelopment Agency were deposited into a Low - and Moderate-Income Housing Fund to provide funding for housing within the City that is affordable to persons and families of very low-, low- and/or moderate-income; WHEREAS, by that certain Grant Deed dated February 16, 2000 and recorded in the official records of the office of the San Diego County Recorder on February 22, 2000 as Document No. 2000-0088605, the Redevelopment Agency purchased certain real property located at 12674 Monte Vista Road, Poway, California (APN 275 -460-61-00) (Property) using Redevelopment Agency property tax increment funds held in the Low and Moderate Income Housing Fund for the purpose of causing development of the Property with a project t hat includes housing affordable to persons and families of very low-, low- and/or moderate-income; WHEREAS, by operation of law pursuant to Assembly Bill No. X1 26 (2011 -2012 1st Ex.

Sess.) (AB 26, and together with subsequent legislative bills enacted into law, collectively, Dissolution Law), the Redevelopment Agency was dissolved on February 1, 2012; WHEREAS, pursuant to AB 26, and upon the dissolution of the Redevelopment Agency under AB 26, the City Council designated the Authority as the entity responsible for performing

ATTACHMENT B
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the housing functions of the Redevelopment Agency and to receive the housing assets of the Redevelopment Agency;

WHEREAS, by that certain Grant Deed dated March 11, 2011 and recorded in the official records of the office of the San Diego County Recorder on March 11, 2011 as Document No. 2011-0133655, the Redevelopment Agency had conveyed to the Authority fee title of the Property for the purpose of increasing, improving and preserving affordable housing for persons and families of very low-, low- and/or moderate-income in the City;

WHEREAS, after a competitive bid process through the Authority’s issuance of a Request for Qualifications for Affordable Housing Development on the Property (RFQ) and a Request for Proposals for Affordable Housing Development on the Property (RFP), the Authority selected Wakeland Housing and Development Corporation, a California nonprofit corporation, for negotiations, and the parties thereafter entered into that certain Exclusive Negotiating Rights Agreement dated August 17, 2022, as subsequently amended;

WHEREAS, Wakeland Monte Vista, LP (Developer) is the proposed Developer of the Property, and an affiliate of Wakeland Housing and Development Corporation. Developer proposes to finance (with a combination of funding sources) and cause the development and operation of the Property with a sixty (60) unit multi-family affordable rental housing development in three (3) separate buildings, with units restricted for occupancy by low -, very low -, and extremely low-income families at affordable rent in accordance with the Housing Authorities Law, the Redevelopment Law, California Government Code Section 54221(F)(1)(f), and regulations applicable to the Low Income Housing Tax Credits, which development will include units targeted to adults with developmental disabil ities and military veterans and their families, together with ancillary facilities including, but not limited to, a community building, outdoor amenities, and subterranean parking (collectively, Project). The Authority will restrict forty -nine percent (49% ) (i.e. twenty-nine (29)) of the units in the Project to low -, very low, and extremely low -income families at affordable rent pursuant to the proposed Affordable Housing Agreement and its Attachments and in accordance with the Housing Authorities Law and t he Redevelopment Law.

All of the units (other than one manager’s unit) in the Project will, by Developer’s voluntary action and without requirement by the Authority, be subject to Low Income Housing Tax Credits’ regulations and rental restrictions as requ ired by the documents required by the Low -Income Housing Tax Credits;

WHEREAS, in order to carry out and implement the Authority’s use and purpose, the proposed Project, and the Redevelopment Plan, and pursuant to the terms and conditions of the Agreement, and in accordance with the Housing Authorities Law and the Redevelopment Law, the Authority desires to enter into the proposed Affordable Housing Agreement and its Attachments, including but not limited to the Ground Lease, as said Attachments may be amended, supplemented or modified from time to time in accordance with the terms thereof, (collectively, Agreement) with Developer for the purpose of, and related to, the development and operation of the Project on the Property;

WHEREAS, the Agreement is in furtherance of the public purposes set forth in the Housing Authorities Law and the Redevelopment Law. Completion of the Project will provide needed affordable housing and will assist in ameliorating blighting influences in the Project Area. Pursuant to the Agreement, t he Authority will be imposing occupancy and affordability restrictions on the Project, which will provide affordable housing production credits for the Authority pursuant to applicable law as housing units located in the Project Area and available at affordable rent to low- , very low-, and extremely low-income households;
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WHEREAS, in order to carry out and implement the proposed Project and the Redevelopment Plan, and pursuant to the terms and conditions of the proposed Agreement, the Authority proposes (i) to lease the Property to Developer for the development and operation of the Project pursuant to the proposed Ground Lease for a fully capitalized rent equal to $4,590,000, which amount is equivalent to the fair market value of the Property as of September 13, 2022 based on an independent appraisal of the Property dated November 22, 2022, and (ii) to provide a loan of $4,590,000 to Developer to finance Developer’s ground lease of the Property as prepayment of the capitalized annual lease payments over the term of the Ground Lease;

WHEREAS, pursuant to HSC Section 34312.3(b) of the Housing Authorities Law, the Authority is authorized to sell or lease real property, such as the Property, provided that certain requirements are met;

WHEREAS, pursuant to the Redevelopment Law including, but not limited to, HSC Sections 33430, 33431 and 33433, the Authority is authorized, after conducting a public hearing, to sell or lease for development pursuant to the Redevelopment Plan property acquired in whole or in part, directly or indirectly, with tax increment moneys, such as the Property;

WHEREAS, pursuant to California Government Code Section 65402, the acquisition and disposition of the Property for the purposes and uses proposed by Developer as outlined and provided for in the Agreement conform in every respect with the adopted General Plan of the City as reported to and confirmed by the City Council of the City by adoption of Resolution No. ______, approved and adopted on November 19, 2024;

WHEREAS, pursuant to HSC Section 33433 of the Redevelopment Law, the Authority has caused the preparation of a summary (“Summary Report”);

WHEREAS, a public hearing has been duly called, noticed and advertised as required by law for Tuesday, November 19, 2024, at 7:00pm at the City Council Chambers of the Poway City Hall located at 13325 Civic Center Drive, Poway, California 92064, for the City Counci l and the Authority to consider approval of the Agreement and the disposition of the Property by ground lease pursuant to the proposed Agreement, in accordance with HSC Section 34312.3(b) of the Housing Authorities Law and HSC Sections 33431 and 3 3433 of the Redevelopment Law, and copies of the proposed Agreement and the Summary Report were made available for public inspection and comment as required by HSC Section 33433 of the Redevelopment Law;

WHEREAS, the Agreement contains all the provisions, terms, conditions, and obligations required by state and local law;

WHEREAS, in compliance with the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines, on November 19, 2024, the City Council of the City adopted Resolution No. ___ determining that the disposition of the Property and development of the proposed Project is exempt from CEQA pursuant to the Class 32 “Infill” Categorical Exemption (CEQA Guidelines Section 15332); and

WHEREAS, the City Council did receive and consider a staff report on the proposed Project, including the City’s determination of a Class 32 “Infill” Categorical Exemption under CEQA Guidelines Section 15332, and any comments received during the public review period.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as 28 of 95
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follows:

SECTION 1: The City Council Finds and determines that the foregoing recitals are true and correct and are incorporated herein by this reference as a substantive part of this Resolution.

SECTION 2: The City Council has received and heard all oral and written objections (if any) to the proposed Agreement, to the proposed ground lease disposition of the Property, and to other matters pertaining to this transaction, and that all such oral and written objectives (if any) are hereby overruled.

SECTION 3: The City Council has reviewed and approves the Summary Report prepared pursuant to HSC Section 33433 of the Redevelopment Law.

SECTION 4: Based on the whole record before it, the City Council finds and determines pursuant to HSC Section 33433, each of the following

a. That the lease of the Property as described in the proposed Agreement will assist in the elimination of blight in the Project Area and provide housing for low-, very low -, and extremely low -income persons, and is consistent with the last Implementation Plan adopted pursuant to HSC Section 33490 of the Redevelopment Law.

b. That the consideration to be received by the Authority for the lease of the Property as described in the Agreement is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the lease of the Property.

SECTION 5: The City Council approves the terms and provisions for the lease of the Property and approves the proposed Affordable Housing Agreement between the Poway Housing Authority and Wakeland Monte Vista, LP for the lease of the Property and for the development and operation of the Project, including the proposed Ground Lease and all other Attachments and Exhibits thereto, in the form as submitted by the Executive Director of the Poway Housing Authority.

SECTION 6: The City Council authorizes the Executive Director of the Poway Housing Authority to execute the Affordable Housing Agreement and all applicable Attachments on behalf of the Poway Housing Authority, subject to the approval as to form by the Executive Director of the Poway Housing Authority and its legal counsel.

SECTION 7: The City Council authorizes and directs the City Manager, or designee, of the City (i) to execute documents and take such other actions on behalf of the City as are necessary or desirable and appropriate to carry out and to effectuate the intent of this Resolution on behalf of the City, and (ii) to administer the City’s obligations, responsibilities and duties to be performed by the City, if any, under the Agreement and its Attachments.

SECTION 8: If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.
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SECTION 9: This Resolution shall take effect upon the date of its adoption.

PASSED, APPROVED AND ADOPTED at a Regular Meeting of the C ity Council of the City of Poway, California on the 19th day of November, 2024 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALIFIED:

______________________________
Steve Vaus, Mayor

ATTEST:

____________________________________
Carrie Gallagher, CMC, City Clerk

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RESOLUTION NO. H-24-

A RESOLUTION OF THE CITY OF POWAY HOUSING
AUTHORITY (i) CERTIFYING ITS REVIEW AND
CONSIDERATION OF THE CITY OF POWAY’S CATEGORICAL

EXEMPTION FOR THE PROJECT UNDER CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA
GUIDELINES SECTION 15332; (ii) APPROVING THE SUMMARY

REPORT PREPARED PURSUANT TO CALIFORNIA HEALTH
AND SAFETY CODE (HSC) SECTION 33433 AND MAKING
REQUIRED FINDINGS PURSUANT TO SECTION 33433; (iii)

DETERMINING THAT THE PROCEEDS OF THE LEASE WILL BE

USED BY THE AUTHORITY TO ASSIST A HOUSING PROJECT

FOR PERSONS OF LOW INCOME PURSUANT TO HSC
SECTION 34312.3; (iv) APPROVING THE LEASE OF PROPERTY
LOCATED AT 12674 MONTE VISTA ROAD, POWAY,
CALIFORNIA (APN 275 -460-61-00) AND THE AFFORDABLE

HOUSING AGREEMENT BETWEEN THE AUTHORITY AND

WAKELAND MONTE VISTA, LP, INCLUDING THE GROUND

LEASE AND ALL OTHER ATTACHMENTS, FOR THE LEASE OF

THE PROPERTY AND DEVELOPMENT AND OPERATION OF A
60-UNIT MULTI -FAMILY AFFORDABLE RENTAL HOUSING
PROJECT ON THE PROPERTY; (v) APPROVING THE TERMS
FOR THE AUTHORITY’S LOA N OF $4,590,000 TO FINANCE
DEVELOPER’S GROUND LEASE OF PROPERTY AS
PREPAYMENT OF ANNUAL LEASE PAYMENTS; AND (vi)

APPROVING OTHER RELATED ACTIONS
WHEREAS, the City of Poway Housing Authority (“Authority”) is a public body, corporate and politic, organized, and existing under the California Housing Authorities Law pursuant to California Health and Safety Code (HSC) Section 34200 et seq. (Housing Authorities Law); WHEREAS, the Authority is vested with all powers and rights provided to it by the Housing Authorities Law including, but not limited to, the powers to manage affordable housing assets in the City of Poway (City), to develop or participate in the development or financing of rental housing projects within the City, to make construction or mortgage loans to finance the acquisition, construction, or development of multi-family rental housing, and to dispose of real property; WHEREAS, the former Poway Redevelopment Agency (Redevelopment Agency) was a public body, corporate and politic, organized, and existing under the California Community Redevelopment Law pursuant to HSC Section 33000 et seq. (Redevelopment Law); WHEREAS, pursuant to the Redevelopment Law, the City Council of the City adopted the Redevelopment Plan (Redevelopment Plan) for the Paguay Redevelopment Project Area (Project Area) for implementation by the Redevelopment Agency. The former Redevelopment A gency adopted an implementation plan for the Project Area in accordance with HSC Section 33490 of the Redevelopment Law (Implementation Plan);
WHEREAS, the Redevelopment Agency was allocated certain property tax increment revenues from the Project Area, and not less than twenty percent (20%) of such property tax increment revenues received by the Redevelopment Agency were deposited into a Low - and

ATTACHMENT C
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Moderate-Income Housing Fund to provide funding for housing within the City that is affordable to persons and families of very low-, low- and/or moderate-income;

WHEREAS, by that certain Grant Deed dated February 16, 2000 and recorded in the official records of the office of the San Diego County Recorder on February 22, 2000 as Document No. 2000-0088605, the Redevelopment Agency purchased certain real property located at 12674 Monte Vista Road, Poway, California (APN 275 -460-61-00) (Property) using Redevelopment Agency property tax increment funds held in the Low and Moderate Income Housing Fund for the purpose of causing development of the Property with a project that includes housing affordable to persons and families of very low-, low- and/or moderate-income;

WHEREAS, by operation of law pursuant to Assembly Bill No. X1 26 (2011 -2012 1st Ex.

Sess.) (AB 26, and together with subsequent legislative bills enacted into law, collectively, Dissolution Law), the Redevelopment Agency was dissolved on February 1, 2012;

WHEREAS, pursuant to AB 26, and upon the dissolution of the Redevelopment Agency under AB 26, the City Council designated the Authority as the entity responsible for performing the housing functions of the Redevelopment Agency and to receive the housing a ssets of the Redevelopment Agency;

WHEREAS, pursuant to HSC Section 34176(a)(1) of the Dissolution Law, all rights, powers, duties, obligations, and housing assets as defined in Section 34176(e) (which include interests in real property) associated with the housing activities of the former Redevelopment Agency, with certain exclusions, were transferred to the Authority as the housing successor of the former Redevelopment Agency;

WHEREAS, by that certain Grant Deed dated March 11, 2011 and recorded in the official records of the office of the San Diego County Recorder on March 11, 2011 as Document No. 2011-0133655, the Redevelopment Agency had conveyed to the Authority fee title of the Property for the purpose of increasing, improving and preserving affordable housing for persons and families of very low-, low- and/or moderate-income in the City;

WHEREAS, pursuant to the Dissolution Law, the California Department of Finance, by letter dated August 31, 2012, approved the Property as a “housing asset” of the former Redevelopment Agency. Further, the Successor Agency’s Oversight Board, by Resolution No.

OSB 13 -004 dated August 21, 2013, ratified and approved, among other matters, the Redevelopment Agency’s transfer of the Property as a housing asset to the Authority as the housing successor in order for the Authority to carry out the housing functions previously performed by the former Redevelopment Agency;

WHEREAS, after a competitive bid process through the Authority’s issuance of a Request for Qualifications for Affordable Housing Development on the Property (RFQ) and a Request for Proposals for Affordable Housing Development on the Property (RFP), the Au thority selected Wakeland Housing and Development Corporation, a California nonprofit corporation, for negotiations, and the parties thereafter entered into that certain Exclusive Negotiating Rights Agreement dated August 17, 2022, as subsequently amended;

WHEREAS, Wakeland Monte Vista, LP (Developer) is the proposed Developer of the Property, and an affiliate of Wakeland Housing and Development Corporation. Developer proposes to finance (with a combination of funding sources) and cause the development and operation of the Property with a sixty (60) unit multi-family affordable rental housing development 32 of 95
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in three (3) separate buildings, with units restricted for occupancy by low -, very low -, and extremely low-income families at affordable rent in accordance with the Housing Authorities Law, the Redevelopment Law, California Government Code Section 54221(F) (1)(f), and regulations applicable to the Low-Income Housing Tax Credits, which development will include units targeted to adults with developmental disabilities and military veterans and their families, together with ancillary facilities including, but no t limited to, a community building, outdoor amenities, and subterranean parking (collectively, Project). The Authority will restrict forty -nine percent (49%) (i.e. twenty-nine (29)) of the units in the Project to low -, very low, and extremely low -income families at affordable rent pursuant to the proposed Affordable Housing Agreement and its Attachments and in accordance with the Housing Authorities Law and the Redevelopment Law.

All of the units (other than one manager’s unit) in the Project will, by Developer’s voluntary action and without requirement by the Authority, be subject to Low Income Housing Tax Credits’ regulations and rental restrictions as required by the documents required by the Low - Income Housing Tax Credits;

WHEREAS, in order to carry out and implement the Authority’s use and purpose, the proposed Project, and the Redevelopment Plan, and pursuant to the terms and conditions of the Agreement, and in accordance with the Housing Authorities Law and the Redevelopment Law, the Authority desires to enter into the proposed Affordable Housing Agreement and its Attachments, including but not limited to the Ground Lease, as said Attachments may be amended, supplemented or modified from time to time in accordance with the terms thereof, (collectively, Agreement) with Developer for the purpose of, and related to, the development and operation of the Project on the Property;

WHEREAS, the Agreement is in furtherance of the public purposes set forth in the Housing Authorities Law and the Redevelopment Law. Completion of the Project will provide needed affordable housing and will assist in ameliorating blighting influences in the Project Area. Pursuant to the Agreement, t he Authority will be imposing occupancy and affordability restrictions on the Project, which will provide affordable housing production credits for the Authority pursuant to applicable law as housing units located in the Project Area and available at affordable rent to low- , very low-, and extremely low-income households;

WHEREAS, in order to carry out and implement the proposed Project and the Redevelopment Plan, and pursuant to the terms and conditions of the proposed Agreement, the Authority proposes (i) to lease the Property to Developer for the development and operatio n of the Project pursuant to the proposed Ground Lease for a fully capitalized rent equal to $4,590,000, which amount is equivalent to the fair market value of the Property as of September 13, 2022 based on an independent appraisal of the Property dated November 22, 2022, and (ii) to provide a loan of $4,590,000 to Developer to finance Developer’s ground lease of the Property as prepayment of the capitalized annual lease payments over the term of the Ground Lease;

WHEREAS, pursuant to HSC Section 34312.3(b) of the Housing Authorities Law, the Authority may, after conducting a public hearing and without complying with any provision of law concerning disposition of surplus property, sell, lease or otherwise dispose of real property so long as the proceeds of any sale, lease, or other disposition of real property, net of the cost of sale, are to be used directly to assist a housing project pursuant to that Section for persons of low-income. The proceeds of the proposed lease of the Property will be used by the Authority to assist a housing project consistent with HSC Section 34312.3 of the Housing Authorities Law and the Dissolution Law;

WHEREAS, pursuant to the Redevelopment Law including, but not limited to, HSC 33 of 95
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Resolution No. H-24-

Sections 33430, 33431 and 33433, the Authority is authorized, after conducting a public hearing, to sell or lease for development pursuant to the Redevelopment Plan property acquired in whole or in part, directly or indirectly, with tax increment moneys, such as the Property;

WHEREAS, pursuant to California Government Code Section 65402, the acquisition and disposition of the Property for the purposes and uses proposed by Developer as outlined and provided for in the Agreement conform in every respect with the adopted General Plan of the City as reported to and confirmed by the City Council of the City by adoption of Resolution No. ______, approved and adopted on November 19, 2024;

WHEREAS, pursuant to HSC Section 33433 of the Redevelopment Law, the Authority has caused the preparation of a summary (“Summary Report”);

WHEREAS, a public hearing has been duly called, noticed and advertised as required by law for Tuesday, November 19, 2024, at 7:00pm at the City Council Chambers of the Poway City Hall located at 13325 Civic Center Drive, Poway, California 92064, for the Ci ty Council and the Authority to consider approval of the Agreement and the disposition of the Property by ground lease pursuant to the proposed Agreement, in accordance with HSC Section 34312.3(b) of the Housing Authorities Law and HSC Sections 33431 and 3 3433 of the Redevelopment Law, and copies of the proposed Agreement and the Summary Report were made available for public inspection and comment as required by HSC Section 33433 of the Redevelopment Law;

WHEREAS, the Agreement contains all the provisions, terms, conditions, and obligations required by state and local law;

WHEREAS, at the conclusion of the November 19, 2024, noticed public hearing, by the adoption of Resolution No. ______, the City Council of the City made the findings required by HSC Section 33433 of the Redevelopment Law, approved the Agreement between the Poway Housing Authority and Developer and the disposition of the Property by ground lease pursuant to the proposed Agreement, and approved other related actions;

WHEREAS, on November 19, 2024, in compliance with the CEQA, the City Council of the City adopted Resolution No. ___ determining that the disposition of the Property and development of the proposed Project is exempt from CEQA pursuant to the Class 32 “Infill” Categorical Exemption (CEQA Guidelines Section 15332); and

WHEREAS, the Authority did receive and consider a staff report on the proposed Project, including the City’s determination of a Class 32 “Infill” Categorical Exemption under CEQA Guidelines Section 15332, and any comments received during the public review period.

NOW, THEREFORE, BE IT RESOLVED by the Poway Housing Authority as follows:

SECTION 1: The Poway Housing Authority finds and determines that the foregoing recitals are true and correct and are incorporated herein by this reference as a substantive part of this Resolution.

SECTION 2: The Poway Housing Authority has received and heard all oral and written objections (if any) to the proposed Agreement, to the proposed ground lease disposition of the Property, and to other matters pertaining to this transaction, and that all such oral and written objections (if any) are hereby overruled.

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SECTION 3: The Poway Housing Authority certifies that it has reviewed and considered the information contained in the City’s determination of a Class 32 “Infill” Categorical Exemption under CEQA Guidelines Section 15332 for the disposition of the Property and development of the proposed Project, and agrees with the City’s determination that the disposition of the Property and development of the proposed Project is exempt from CEQA.

SECTION 4: The Poway Housing Authority has reviewed and approves the Summary Report prepared pursuant to HSC Section 33433 of the Redevelopment Law.

SECTION 5: Based on the whole record before it, the Poway Housing Authority finds and determines pursuant to HSC Section 33433, each of the following:

a. That the lease of the Property as described in the proposed Agreement will assist in the elimination of blight in the Project Area and provide housing for low -, very low-, and extremely low-income persons, and is consistent with the last Implementation Plan adopted pursuant to HSC Section 33490 of the Redevelopment Law.

b. That the consideration to be received by the Authority for the lease of the Property as described in the Agreement is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the lease of the Property.

SECTION 6: The Poway Housing Authority determines that the proceeds of the proposed lease of the Property will be used by the Poway Housing Authority to assist a housing project for persons of low income, consistent with HSC Section 34312.3 of the Housing Authorities Law and the Dissolution Law.

SECTION 7: The Poway Housing Authority approves the terms and provisions for the lease of the Property and approves the proposed Affordable Housing Agreement between the Poway Housing Authority and Wakeland Monte Vista, LP for the lease of the Property and for the development and operation of the Project, including the proposed Ground Lease and all other Attachments and Exhibits thereto, in the form as submitted by the Executive Director of the Poway Housing Authority.

SECTION 8: The Poway Housing Authority approves the terms and provisions for the Poway Housing Authority’s loan of $4,590,000 to finance Developer’s ground lease of the Property as prepayment of the capitalized annual lease payments over the term of the Ground Lease.

SECTION 9: The Poway Housing Authority authorizes and directs the Executive Director of the Poway Housing Authority to execute the Affordable Housing Agreement and all applicable Attachments on behalf of the Poway Housing Authority, subject to the approval as to form by the Executive Director of the Poway Housing Authority and its legal counsel.

SECTION 10: The Poway Housing Authority authorizes and directs the Executive Director, or designee, of the Poway Housing Authority to execute all documents, instruments, and agreements required by and for the implementation of the Affordable Housing Agreement including, without limitation, the Attachments to the Affordable Housing Agreement, on behalf of the Poway Housing Authority, subject to the approval as to form by the Executive Director of the Poway Housing Authority and its legal counsel.

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SECTION 11: The Poway Housing Authority authorizes and directs the Executive Director, or designee, of the Poway Housing Authority (i) to make such amendments, changes or revisions to the Agreement or to any document, instrument, or agreement required by and for the implementation of the Agreement on behalf of the Poway Housing Authority, as approved by the Executive Director of the Poway Housing Authority and its legal counsel, (ii) to execute such other documents and take such other actions as are necessary or desira ble and appropriate to carry out and implement the purposes of the Agreement and to effectuate the intent of this Resolution on behalf of the Poway Housing Authority including, without limitation, approving extensions of deadlines set forth in the Agreemen t (or any portion thereof) as determined necessary by the Executive Director, or designee, to effectuate the purposes of the Agreement, and (iii) to administer the Poway Housing Authority’s obligations, responsibilities and duties to be performed under the Agreement and all documents, instruments, and agreements required by and for the implementation of the Agreement on behalf of the Poway Housing Authority.

SECTION 12: If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Poway Housing Authority declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

SECTION 13: This Resolution shall take effect upon the date of its adoption.

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Resolution No. H-24-

PASSED, APPROVED AND ADOPTED by the Poway Housing Authority of the City of Poway, California, at a regular meeting this 19TH day of November, 2024 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALIFIED:

______________________________
Steve Vaus, Authority Chair
Poway Housing Authority

ATTEST:

________________________________
Carrie Gallagher, CMC, Secretary
Poway Housing Authority

37 of 95
November 19, 2024, Item #10
Southeast
Corner of Allison Avenue & Date Avenue
Attachment No. 1 – Site Map

ZONING/LOCATION SITE MAP

ATTACHMENT D
Pomerodo Hospttat
15615
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Hospital
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Site Plan/Conceptual Landscape Plan

ATTACHMENT E

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ATTACHMENT F
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ATTACHMENT G
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ATTACHMENT H
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ATTACHMENT I
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ATTACHMENT K
0 AL SITE PLAN ARCH ITE CTU ~ APARTMENT UNITS 0 STORY BUILDINGS • TW • ~fi1l1> 4'❖ ,.
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Attachment L of the Staff Report referencing the Affordable Housing Agreement, Ground Lease, and other Necessary Documents for the approval of the Monte Vista Affordable Housing Project is available on file in the Development Services Department and also available online https://poway.org/DocumentCenter/View/11448/Attachment-L---Affordable-Housing-Agreement-- Attachments-PDF

ATTACHMENT L
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PAGUAY REDEVELOPMENT PROJECT

POWAY, CALIFORNIA

SUMMARY REPORT PERTAINING TO THE PROPOSED LEASE

OF CERTAIN PROPERTY WITHIN THE

REDEVELOPMENT PROJECT AREA
California Community Redevelopment Law
Section 33433

PURSUANT TO THE

AFFORDABLE HOUSING AGREEMENT

BY AND BETWEEN

POWAY HOUSING AUTHORITY
AND
WAKELAND MONTE VISTA L.P.

Poway, California
October 2024

ATTACHMENT M
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TABLE OF CONTENTS
Page
I. Introduction ................................................................................................................. ....................... 1 II. Costs of the Agreem ent to the Authority ........................................................................................... 4 III. Estimated Value of the Interest to be Conveyed at the Highest and Best Use Permitted Under the Redevelopment Plan ........................................................................................................................... 5 IV. Estimated Value of the Interest to be Conveyed at the Use and with the Conditions, Covenants, and Development Costs Required by the Agreement ........................................................................ 6 V. Compensation which the Developer will be Required to Pay............................................................. 9 VI. Explanation of the Difference, if any, between the Compensation to be Paid to the Authority by the Proposed Transaction and the Fair Market Value of the Interest to be Conveyed at the Highest and Best Use Consistent with the Redevelopment Plan................................................................... 10 VII. Explanation of Why the Lease of the Property wi ll Assist with the Elimination of Blight ................ 11 VIII. Limiting Conditions............................................................................................................................ 12 60 of 95
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I. INTRODUCTION
A. Purpose of Report
This Summary Report was prepared in accordance with Section 33433 of the California Community Redevelopment Law in order to inform the Poway Housing Authority (Authority) and the public about the proposed Affordable Housing Agreement (Agreement) and Ground Lease (Ground Lease) between the Authority and Wakeland Monte Vista L.P. (Developer).

The Authority owns a 2.06-acre site (Property) located at 12674 Monte Vista Road in the City of Poway (City). The Authority and the Developer propose to enter into a long-term ground lease for development of the Property. The Developer intends to build a 60-unit, two-story over parking apartment complex affordable to households at Extremely Low-, Very Low-, and Low-Income levels (Project). The Project will be constructed on the Property subject to a ground lease with the Authority. The Project is anticipated to be financed using 4% Low Income Housing Tax Credits (LIHTCs), a loan from the Department of Developmental Services (DDS), a loan from the Affordable Housing Program (AHP), and other public funding sources.

This Report describes and specifies:

1. The costs to be incurred by th e Authority under the Affordable Housing Agreement (Agreement);

2. The estimated value of the interest to be conv eyed by the Authority to the Developer at the highest and best use permitted under the Redevelopment Plan;

3. The estimated value of the interest to be conveyed at the proposed use and with the conditions, covenants, and development costs pursuant to the proposed Agreement;

4. The compensation to be paid to the Auth ority pursuant to the proposed transaction;

5. An explanation of the difference, if any, betwee n the compensation to be paid to the Authority under the proposed transaction, and the fair market value at the highest and best use consistent with the Redevelopment Plan; and

6. An explanation of why the conveyance of the inte rest will assist with the elimination of blight.

B. Summary of Findings
The Authority engaged its economic consultant, Keyser Marston Associates, Inc. (KMA), to analyze the financial terms contained in the proposed Agreement and Ground Lease. KMA reviewed the draft 61 of 95
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Agreement and Ground Lease under discussion between the Authority and the Developer as of the date of this Report. The KMA conclusions are summarized as follows:
x The estimated costs of the Agreement to the Authority total $1,486,000. x The estimated fair market value of the interest to be conveyed at its highest and best use is $4,590,000.
x The estimated fair re-use value of the interest to be conveyed is $0. x The estimated value of the compensation to be received by the Authority is $487,000.

C. Description of Area and Proposed Project
The former Paguay Redevelopment Project Area (Project Area) encompassed approximately 8,200 acres including commercial, industrial, and residential land uses. When the Poway City Council established the Project Area in 1983, it was characterized by a deteriorating commercial corridor, deficient infrastructure, lack of public facilities, and little economic base. The adoption of the Paguay Redevelopment Plan provided the opportunity for a partnership of public and private investment, which would become the catalyst for revitalization in the Project Area.

Table 1 describes the physical characteristics of the proposed Project. The proposed Project will contain two (2) stories of residential development featuring 60 apartments. The apartments comprise 28 one-bedroom, 17 two-bedroom, and 15 three-bedroom units with an overall average size of 738 square feet (SF). Fifty-nine (59) units will be affordable to Extremely Low-, Very Low-, and Low-Income households earning between 30% and 59% of Area Median Income (AMI). The Project will include a total of 141 parking spaces, seven (7) at-grade and 134 located in a subterranean garage.

D. Proposed Transaction Terms
This section summarizes the salient aspects of the business terms contained in the proposed Agreement.
x The Authority and the Developer will enter into a minimum 70-year leasehold agreement to convey the Developer the Leasehold interest in the Property. 62 of 95
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x The term of the Ground Lease may range from 70 to 99 years. The precise term will be determined prior to closing.
x The Authority will contribute $4,590,000 to the Project in the form of a residual receipts loan (Authority Loan). The Authority Loan represents the fair market value of the Property and reflects the value of pre-paid ground rent to the Authority. x The Developer will construct 59 residential units, affordable to Extremely Low-, Very Low-, and Low-income households, and one (1) manager unit.
x At least fifteen (15) units will be occupied by an adult household member who is developmentally disabled.
x It is the responsibility of the Developer to ensure that applicable City zoning and land use requirements will permit development of the proposed Project. x The Developer will be responsible for all development costs, including site preparation, grading, and construction of the Project, and off-site improvements. x It is the responsibility of the Developer to conform to all applicable Federal and State labor laws including requirements, if any, to pay prevailing wages. x The Developer will apply to the State of California for a tax-exempt bond allocation and 4% LIHTCs.
x The Developer agrees to defer $1,300,000 of their $4,600,000 developer fee (Deferred Developer Fee) as a funding source for the Project.
x Developer shall complete construction of the Project no later than December 31, 2027. x The Authority Loan will have a term of 70 to 99 years at 3.0% simple interest. The precise term will be determined at closing, consistent with the Ground Lease term. The Authority Loan will be repaid from residual receipts calculated as the Project’s annual cash flow after payment of debt service, asset management fees, and repayment of the Deferred Developer Fee. x Upon repayment of the Deferred Developer Fee, the Developer agrees to pay to the Authority its pro rata share of 50% of residual receipts toward repayment of the Authority Loan. x Affordability restrictions on the Project will remain in effect for a term of 70 years to a maximum of 99 years, consistent with the Ground Lease term.
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II. COSTS OF THE AGREEMENT TO THE AUTHORITY
The estimated costs of the Agreement total $1,486,000, reflecting all costs incurred by the Authority.

These costs include the following items:

Authority Costs Amount
Original Property Acquisition Cost (1) $1,292,394
Third Party Costs (2) $275,000
Subtotal (Rounded) $1,567,000
(Less) Income Received from Interim Uses on Property ($80,889) Total Authority Costs (Rounded) $1,486,000
(1) Per Authority corresponde nce dated April 1, 2024.
(2) Gross estimate; includes legal and economic consultants. 64 of 95
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III. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE

PERMITTED UNDER THE REDEVELOPMENT PLAN
This section presents an analysis of the fair market value of the Property at its highest and best use.

In appraisal terminology, the highest and best use is that use of the Property that generates the highest property value and is physically possible, financially feasible, and legally permitted.

Therefore, value at highest and best use is based solely on the value created and not on whether or not that use carries out the redevelopment goals and policies for the Authority.

The Property is currently zoned Commercial Office (CO). The CO zone is intended as an area primarily for the development of professional, administrative offices, and ancillary retail uses. However, the Property is identified for affordable housing in the City of Poway Housing Element Update and has an Affordable Housing Overlay Zone (AHOZ). The AHOZ was placed on the Property in 2012 and allows for up to 30 units per acre and development by right. The Property is in a mixed-use neighborhood that consists of both single-family and multi-family residential properties and a wide variety of commercial uses.

KMA conducted an independent review of select multi-family land sales within a 10-mile trade ring of the Property. The KMA survey identified eight (8) land sales from 2020 to the present. As shown in Table 2, surveyed land sales ranged from $32 to $81 per SF of land, with a concentration between $60 and $75 per SF of land. The median and average prices were $60 and $57 per SF of land, respectively.

The comparable sales vary by neighborhood, status of entitlements, and zoning/density, requiring adjustments in order to reflect the value of the Property. In KMA’s judgment, the Property is inferior to many of the comparables with respect to location and proposed development type and density.

For example, several of the comparable sales reflect high-density multi-family developments proposed for Downtown Escondido. These Downtown sites enjoy proximity to shopping, dining, and entertainment uses and the area has recently been undergoing significant new investment. As an offset, it is noted that some of the comparables are three to four years old, and there has been significant commercial and multi-family land value appreciation in the interim period. Taking these factors into account, KMA believes that the value of the Property falls below the median/average prices for the surveyed comparables, warranting a downward adjustment on the order of 10% of 15%, resulting in an indicated land value of $51 per SF of land.

Conclusion
On this basis, then, KMA finds that the fair market value of the Property at its highest and best use to be $51 per SF of land, or $4,590,000.
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IV. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE USE AND WITH THE

CONDITIONS, COVENANTS, AND DEVELOPMENT COSTS REQUIRED BY THE AGREEMENT This section explains the principal conditions and covenants which the Developer of the Property must meet in order to comply with the Agreement. The Agreement contains specific covenants and conditions designed to ensure that the conveyance of the Property will be carried out in a manner to achieve the Authority’s objectives, standards, and criteria under the Redevelopment Plan. Based on a detailed financial feasibility analysis of the Project, KMA concludes that the fair re-use value of the interest to be conveyed is $0.

KMA estimated the re-use value of the interest to be conveyed based on the anticipated income characteristics of the proposed Project. Re-use value is defined as the highest price in terms of cash or its equivalent which a property or development right is expected to bring for a specified use in a competitive open market, subject to the covenants, conditions, and restrictions imposed by the Agreement.

KMA reviewed and analyzed the financial pro forma submitted by the Developer for the Project.

Tables 3 through 5 present the KMA residual value analysis for the proposed Project.

Estimated Development Costs
Table 3 summarizes estimated development costs for the Project.

Total development costs for the Project, excluding Property land acquisition, are estimated at $38,371,000, or $580 per SF Gross Building Area (GBA), which equates to approximately $640,000 per dwelling unit. Total development costs consist of the following:
x Direct construction costs, such as off-site improvements; on-site improvements; parking; shell construction; furniture, fixtures, and equipment (FF&E); and contingency. The total direct costs are estimated to be $25,509,0000, or $386 per SF GBA. The estimate of direct costs assumes the payment of prevailing wages.
x Indirect costs, such as architecture and engineering, permits and fees, legal and accounting, taxes and insurance, developer fee, marketing/lease-up, and contingency. These are estimated to be $9,014,000, or 35.3% of direct costs.
x Financing costs, consisting of loan fees, interest during construction/lease-up, title/recording/escrow fees, Tax Credit Allocation Committee (TCAC) costs, and operating reserves. Total financing costs are estimated at $3,848,000, or 15.1% of direct costs. 66 of 95
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Net Operating Income
Table 4 presents an estimate of stabilized Net Operating Income (NOI) for the Project, as follows:
x The Agreement will restrict the residential units to Extremely Low-, Very Low- and Low-Income households. As discussed earlier, the Developer will apply to the State of California for LIHTCs.

Fifty-nine (59) units will be restricted per LIHTC requirements. The Developer has proposed an affordability mix that is in compliance with California Government Code §54221(f)(1)(F), as shown below.

Area Median Income TCAC Limits H&SC
§50079.5 Total
Extremely Low (30% AMI) 0 units 18 units 18 units
Very Low Income (50% AMI) 0 units 10 units 10 units
Low Income (59% AMI) 14 units 17 units 31 units
Total Restricted Units 14 units 45 units 59 units
Per the Agreement and Government Code §54221(f)(1)(F), 45 units will be restricted per California Redevelopment Law (CRL) Health and Safety Code Section (H&SC) §50079.5 and the Developer will be required to comply with CRL requirements when determining household income and affordable rent calculations. The proposed affordability mix, shown above, results in an average affordability for the Project (excluding the manager’s unit) of 49% AMI. Based on these restrictions, total annual rental income amounts to $1,379,000. x Other income, such as laundry and vending, is estimated at $5 per unit per month. x A vacancy factor of 5.0% is assumed.
x Operating expenses are projected to be $6,700 per unit per year. These expenses include payroll, management fees, administration, utilities, maintenance, and insurance. x Total expenses have been estimated at $9,000 per unit per year. In addition to the operating expenses listed above, these consist of security, property taxes/assessments (it is assumed that the Project will qualify for the property tax welfare exemption), replacement reserves, tenant services, monitoring fees, and an issuer fee.

Based on these assumptions, stabilized annual NOI for the proposed Project is estimated at $776,000.
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Supportable Funding Sources
As shown in Table 5, KMA estimates total available funding sources for the Project comprised of the following:

Sources of Funds Amount
Supportable Permanent Loan $9,866,000
Tax Credit Equity Investment – Federal $13,171,000
Tax Credit Equity Investment – State $6,684,000
Deferred Developer Fee $1,300,000
General Partner Equity Contribution $1,100,000
Department of Developmental Services (DDS) $2,250,000
County of San Diego $3,000,000
Affordable Housing Program (AHP) $1,000,000
Total Sources of Funds $38,371,000
The total funding sources of $38,371,000 represent reasonable estimates of the maximum amounts available for each funding source. The Developer bears the risk of pursuing these funding sources to ensure financial feasibility of the Project.

Residual Land Value
Table 5 also presents the KMA estimate of residual land value for the Property. The residual land value can be estimated as the difference between total available funding sources and total development costs. The comparison of total funding sources and total development costs yields a residual land value for the Property of $0, as shown below:

Residual Land Value Amount
Total Sources of Funds $38,371,000
(Less) Total Development Costs ($38,371,000)
Residual Land Value $0
Conclusion
Based on the foregoing analysis, KMA concludes that the fair re-use value of the Property is $0. 68 of 95
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V. COMPENSATION WHICH THE DEVELOPER WILL BE REQUIRED TO PAY This section summarizes the total compensation to be paid by the Developer to the Authority for the Property. Developer compensation to the Authority will take the form of payment on the Authority Loan through residual receipts payments.

Tables 6 and 7 present the KMA estimate of the Project’s annual cash flow and estimate of compensation to the Authority, respectively. As shown in the cash flow projections, the Authority Loan is projected to be repaid in Year 52.

The cash flow to the Authority is estimated to have a Net Present Value (NPV) of approximately $487,000 in 2024 dollars, assuming a conservative discount rate of 10.0% to reflect the risk and uncertainty associated with the projected Authority Loan repayments.

On this basis, then, KMA concludes that the compensation paid to the Authority for the interest to be conveyed is $487,000.
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VI. EXPLANATION OF THE DIFFERENCE, IF ANY, BETWEEN THE COMPENSATION TO BE PAID TO

THE AUTHORITY BY THE PROPOSED TRANSACTION AND THE FAIR MARKET VALUE OF THE

INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE CONSISTENT WITH THE

REDEVELOPMENT PLAN
The fair market value of the interest to be conveyed at its highest and best use is estimated by KMA to be $4,590,000.

The Developer will pay the Authority a fully capitalized rent equal to $4,590,000 using proceeds from the Authority Loan. As discussed in Section V, the cash flow to the Authority is estimated to have a Net Present Value (NPV) of approximately $487,000. Therefore, the compensation to be paid to the Authority pursuant to the Agreement is estimated by KMA to be $487,000.

Factors affecting the difference in compensation to the Authority and fair market value of the interest to be conveyed at highest and best use include:
x The Property will be subject to long-term land use restrictions, operating covenants, and affordability covenants restricting its use solely to uses permitted in the Agreement. x The Project will be developed on a long-term ground lease rather than fee simple ownership. x The Project is proposed to receive subsidies from the LIHTC program, Department of Developmental Services, and/or other potential public funding sources. These funding sources impose specific covenants and restrictions on development and operation of the Project. 70 of 95
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VII. EXPLANATION OF WHY THE LEASE OF THE PR OPERTY WILL ASSIST WITH THE ELIMINATION

OF BLIGHT
The Redevelopment Plan (Plan) for the Redevelopment Project Area governs the Property. In accordance with Section 33490 of the California Community Redevelopment Law, the Plan contains the goals and objectives and the projects and expenditures proposed to eliminate blight within the Project Area. These blighting factors include:
x The age, obsolescence, deterioration, mixed character, or shifting uses of existing buildings. x The subdividing and sale of lots of irregular form and shape, and inadequate size, for proper usefulness and development.
x A prevalence of depreciated values and impaired investments.

Implementation of the proposed Agreement can be expected to assist in the alleviation of blighting conditions through the following:
x Improving and preserving affordable housing opportunities for Poway residents. x Revitalization of the Project Area.
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VIII. LIMITING CONDITIONS
The estimates of re-use value and fair market value at the highest and best use contained in this Summary Report assume compliance with the following assumptions:

1. The ultimate development will not vary sign ificantly from that assumed in this Report.

2. The title of the Property is good and marketable; no title search has been made, nor have we attempted to determine the ownership of the property. The value estimates are given without regard to any questions of title, boundaries, encumbrances, liens, or encroachments. It is assumed that all assessments, if any, are paid.

3. The Property will be in conformance with th e applicable zoning and building ordinances.

4. Information provided by such local sources as governmental agencies, financial institutions, realtors, buyers, sellers, and others was considered in light of its source, and checked by secondary means.

5. If an unforeseen change occurs in the economy, the conclusions herein may no longer be valid.

6. The Developer will adhere to the schedule of performance described in the Agreement.

7. Both parties are well informed and well advise d and each is acting prudently in what he/she considers his/her own best interest.

8. KMA is not advising or recommending any action be taken by the Authority with respect to any prospective, new, or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues).

9. KMA is not acting as a Municipal Advisor to t he Authority and does not assume any fiduciary duty hereunder, including, without limitation, a fiduciary duty to the Authority pursuant to Section 15B of the Exchange Act with respect to the services provided hereunder and any information and material contained in KMA’s work product.

10. The Authority shall discuss any such information and material contained in KMA’s work product with any and all internal and/or external advisors and experts, including its own Municipal Advisors, that it deems appropriate before acting on the information and material. attachments
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TABLE 1

PROJECT DESCRIPTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Site Address 12674 Monte Vista Road, Poway
II. Site Area 2.06 Acres
III. Gross Building Area
Net Residential Area 45,871 SF 69%
Community Building 1,600 SF 2%
Common Areas/Circulation 18,695
SF 28%
Total Gross Building Area 66,166 SF 100%
IV. Number of Stories 2 Stories (elevator)
V. Construction Type Type V
VI. Unit Mix
One Bedroom 28 Units 47% 545 SF
Two Bedroom 17 Units 28% 823 SF
Three Bedroom 15 Units 25% 1,108 SF
Total/Average 60 Units 100% 765 SF
VII. Target Population
VIII. Density 29 Units/Acre
IX. Affordability Mix
18 Units 30% 11 Units 38%
10 Units 17% 10 Units 34%
31 Units 52% 8 Units 28%
Manager 1 Unit 2% 0 Units 0%
Total/Average 60 Units 100% 29 Units 100%
Average Affordability 49% of AMI
(excluding Manager units)
X. Parking
Total Parking Spaces 141 Spaces 2.35 Spaces/Unit
Parking Area 54,169 SF 384 SF/Space
(1)
(2)
Units @ 59% of AMI
Units @ 30% of AMI
Units @ 50% of AMI
There are 29 units restricted by the Authority: 8 one-bedroom units (30%), 1 two-bedroom unit (30%), 2 three- bedroom units (30%), 4 one-bedroom (50%), 3 two-bedroom (50%), 3 three-bedroom (50%), 4 one-bedroom (59%), 2 two-bedroom (59%), and 2 three-bedroom (59%).

Affordability mix is in compliance with California Government Code 54221(f)(1)(F) with a minimum of 75% of the units restricted at Lower Income as defined in Health & Safety Code Section 50053 and rents no less than 20% below market rents for the neighborhood.

Authority (2)
Number
of Units
Average
Unit Size
Special Needs and Veterans
Subterranean
All Units (1)
Prepared by: Keyser Marston Associates, Inc.

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TABLE 2
SELECTED COMPARABLE LAND SALES, 2020 TO PRESENT (1)

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
$/SF
Date Address City Sale Price Acres Land Units $/Unit Proposed Use 01/01/21 12845 Poway Road Poway $15,650,000 4.46 $81 212 $73,800 Mixed-use multi-family apartments 07/01/20 330-330 S. Escondido Blvd. Escondido $2,600,000 0.80 $75 65 $40,000 Multi-family apartments (City Plaza) 03/25/21 555 W. Grand Ave. Escondido $1,400,000 0.45 $71 32 $43,800 Multi-family apartments (TOD) 07/06/22 16326 Via Cazadero Rancho Santa Fe $5,300, 000 2.03 $60 --- --- Multi-family apartments 12/02/22 1600 S. Escondido Blvd. Escondido $2,790, 000 1.07 $60 48 $58,100 Multi-family apartments 09/02/21 1100 W. San Marcos Blvd. Sa n Marcos $4,600,000 2.72 $39 82 $56,100 Mixe d-use condominium development 02/29/24 350 10th Ave. Escondido $530,000 0.33 $37 --- --- Multi-family apartments 08/05/22 991 Del Dios Rd. Escondido $1,225,000 0.89 $32 --- --- Multi-family apartments (Escondido Promenade) Minimum $530,000 0.33 $32 32 $40,000
Maximum $15,650,000 4.46 $81 212 $73,800
Median $2,695,000 0.98 $60 65 $56,100
Average $4,261,875 1.59 $57 88 $54,360
(1) Reflects selected multi-family residential land sales within a 10.0 mile radius from the subject Site and 5.0 acres or less.

Source: CoStar Group, Inc. and Kinetic Valuation Group, Inc. (KVG) Prepared by: Keyser Marston Associates, Inc.

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TABLE 3

ESTIMATED DEVELOPMENT COSTS

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
Totals
Per Unit
I. Direct Costs (1)
Off-Site Improvements (2) $0 $0 $0 Per SF Site
Demolition (3) $23,039 $384 Allowance
On-Sites/Landscaping (3)(4) $115,193 $1,920 $1 Per SF Site Parking (3) $2,303,858 $38,398 $16,339 Per Space
Shell Construction (3) $21,721,953 $362,033 $328 Per SF GBA FF&E/Amenities $150,000 $2,500 Allowance
Contingency $1,195,202 $19,920 4.9% of Directs
Total Direct Costs $25,509,245 $425,154 $386 Per SF GBA II. Indirect Costs
Architecture & Engineering $1,426,000 $23,767 5.6% of Directs Permits & Fees (2) $1,465,000 $24,417 $22 Per SF GBA
Legal & Accounting $332,500 $5,542 1.3% of Directs
Taxes & Insurance $500,000 $8,333 2.0% of Directs
Developer Fee $4,600,000 $76,667 18.0% of Directs
Construction Manager $200,000 $3,333 0.8% of Directs
Marketing/Lease-Up $90,000 $1,500 0.4% of Directs
Contingency $400,000
$6,667 4.6% of Indirects
Total Indirect Costs $9,013,500 $150,225 35.3% of Directs III. Financing Costs
Loan Fees $496,646 $8,277 1.9% of Directs
Interest During Construction $2,333,445 $38,891 9.1% of Directs Interest During Lease-Up $0 $0 0.0% of Directs
Title/Recording/Escrow $110,000 $1,833 0.4% of Directs
TCAC Fees $316,600 $5,277 1.2% of Directs
Operating Lease-Up/Reserves $591,137
$9,852 2.3% of Directs
Total Financing Costs $3,847,828 $64,130 15.1% of Directs IV. Total Development Costs - $38,371,000 $639,517 $580 Per SF GBA Excluding Acquisition (Rounded)
(1) Includes the payment of prevailing wages.
(2) Developer estimate; not verified by KMA or City.
(3) Includes pro rata share of general conditions and contractor fee. (4) Includes environmental remediation.

Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 15 75 of 95
November 19, 2024, Item #10
TABLE 4

NET OPERATING INCOME

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
# of PBV Total Total
I. Gross Scheduled Income
(1) Units Subsidy $/Month Annual
One Bedroom @ 30% AMI H&SC 15 $651 $1,258 $1,909 $343,620 One Bedroom @ 50% AMI H&SC 4 $1,129 -- $1,909 $91,632 One Bedroom @ 59% AMI H&SC 4 $1,344 -- $1,344 $64,512 One Bedroom @ 59% AMI TCAC 5 $1,610 -- $1,610 $96,600 Two Bedroom @ 30% AMI H&SC 1 $712 $1,708 $2,420 $29,040 Two Bedroom @ 50% AMI H&SC 3 $1,249 $1,171 $2,420 $87,120 Two Bedroom @ 59% AMI H&SC 7 $1,491 -- $1,491 $125,244 Two Bedroom @ 59% AMI TCAC 5 $1,917 -- $1,917 $115,020 Two Bedroom Manager 1 $0 -- $0 $0
Three Bedroom @ 30% AMI H&SC 2 $774 $2,599 $3,373 $80,952 Three Bedroom @ 50% AMI H&SC 3 $1,372 $2,001 $3,373 $121,428 Three Bedroom @ 59% AMI H&SC 6 $1,641 -- $1,641 $118,152 Three Bedroom @ 59% AMI TCAC 4 $2,203 -- $2,203 $105,744 Total/Average 60 $1,275 $640 $1,915 $1,379,064
Add: Other Income $5 /Unit/Month $3,600
Total Gross Scheduled Income (GSI) $1,382,664
II. Effective Gross Income (EGI)
(Less) Vacancy 5.0% of GSI ($69,133)
Total Effective Gross Income (EGI) $1,313,531
III. Operating Expenses
(Less) Operating Expenses (3) $6,732 /Unit/Year ($403,930) (Less) Security $100 /Unit/Year ($6,000)
(Less) Tenant Services $1,250 /Unit/Year ($75,000)
(Less) Property Taxes/Assessments (4) $120 /Unit/Year ($7,200) (Less) Replacement Reserves $500 /Unit/Year ($30,000)
(Less) Authority Monitoring Fee $100 /Unit/Year ($6,000) (Less) County Monitoring Fee $68 /Unit/Year ($4,100)
(Less) Issuer Fee $83 /Unit/Year ($5,000)
Total Expenses $8,954 /Unit/Year ($537,230)

40.9% of EGI
IV. Net Operating Income (NOI) $776,301
(1)
(2)
(3) Includes property management fee of approximately $50/unit/month. (4) Assumes that the project will qualify for property tax welfare exemption.

Affordability mix is in compliance with California Government Code 54221(f)(1)(F) with a minimum of 75% of the units restricted at Lower Income as defined in Health & Safety Code Section 50053 and rents no less than 20% below market rents for the neighborhood.

As noted, reflects maximum 2024 Health and Safety Code (HSC) rents or maximum 2024 Tax Credit Allocation Committee (TCAC) rents net of 2024 monthly utility allowances ($66 for one-bedroom, $95 for two-bedroom, and $122 for three-bedroom units).

Total
$/Month (2)
Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp

76 of 95
November 19, 2024, Item #10
TABLE 5

RESIDUAL LAND VALUE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Sources of Funds Total
Per Unit
Supportable Permanent Loan (1) $9,866,000 $164,400
Tax Credit Equity Investment - Federal (2) $13,171,000 $219,500 Tax Credit Equity Investment - State (2) $6,684,000 $111,400 Deferred Developer Fee (3) $1,300,000 $21,700
General Partner Equity Contribution (3) $1,100,000 $18,300 Department of Developmental Services (DDS) (4) $2,250,000 $37,500 County of San Diego Loan (5) $3,000,000 $50,000
Affordable Housing Program (AHP) $1,000,000 $16,700
Total Sources of Funds $38,371,000 $639,500
II. (Less) Development Costs - Excl. Acquisition ($38,371,000) ($639,500) III. Residual Land Value $0 $0
Prepared by: Keyser Marston Associates, Inc.

Filename: i:Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 17 77 of 95
November 19, 2024, Item #10
TABLE 5 (CONT'D.)

RESIDUAL LAND VALUE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
(1) Supportable Permanent Loan
NOI $776,301
Interest Rate 6.00%
Term (years) 35
Debt Coverage Ratio 1.15
Annual Debt Service $675,044
Supportable Permanent Loan $9,865,780
(2) Low Income Housing Tax Credits (Federal)
A. Federal
Estimate of Eligible Basis:

Total Development Costs $42,961,000
(Less) Total Ineligible Costs 17% ($7,167,295)
Eligible Basis $35,793,705
Tax Credit Proceeds:

Maximum Eligible Basis $35,793,705
Impacted Bonus Factor 100% $35,793,705
Tax Credit Qualified Units/Applicable Factor 100% $35,793,705 Tax Credit Rate 4.00% $1,431,748
Total Tax Credits @ 10 $14,317,482
Limited Partner Share 100% $14,316,050
Tax Credit Equity Investment @ 92% $13,170,766
B. State
Eligible Basis $35,793,705
Requested Basis 74.1% $26,526,113
Applicable Factor 30% $7,957,834
Limited Partner Share 100% $7,957,038
Tax Credit Equity Investment @ 84.0% $6,683,912
(3) Estimate of Deferred Developer Overhead Fee
Eligible Basis $35,793,705
(Less) Developer Fee ($4,600,000)
Unadjusted Eligible Basis $31,193,705
Total Developer Overhead Fee 14.7% $4,600,000
Developer Overhead Fee $4,600,000
Deferred Developer Fee $1,300,000
General Partner Equity Contribution $1,100,000
Total Deferred Developer Overhead Fee 52.2% $2,400,000
Upfront Developer Fee $2,200,000
Per Unit $37,000
(4) State of California Department of Developmental Services (DDS) $2,250,000 Awarded July 2023
(5) County of San Diego IHTF Loan Pending Future Application $3,000,000
Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 18 78 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
1 2 3 4 5 6 7 8 9 10
I. Gross Scheduled Income (GSI) 2.5% $1,382,664 $1,417,231 $1,452,661 $1,488,978 $1,526,202 $1,564,357 $1,603,466 $1,643,553 $1,684,642 $1,726,758 (Less) Vacancy 5.0% ($69,133) ($70,862) ($72,633) ($74,449) ($76,310) ($78,218) ($80,173) ($82,178) ($84,232) ($86,338) II. Effective Gross Income (EGI) 3.5% $1,313,531 $1,346,369 $1,380,028 $1,414,529 $1,449,892 $1,486,140 $1,523,293 $1,561,375 $1,600,410 $1,640,420 (Less) Operating Expenses (1) ($537,230) ($554,598) ($572,570) ($591,168) ($610,413) ($630,329) ($650,939) ($672,266) ($694,337) ($717,176) III. Net Operating Income $776,301 $791,772 $807,459 $823,361 $839,479 $855,810 $872,354 $889,109 $906,073 $923,244 (Less) Debt Service - Permanent Loan ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) IV. Cash Flow $101,257 $116,728 $132,415 $148,317 $164,435 $180,766 $197,310 $214,065 $231,029 $248,200 V. Asset Management Fees
(Less) Limited Partner Fee 3.0% ($5,000) ($5,150) ($5, 305) ($5,464) ($5,628) ($5,796) ($5,970) ($6,149) ($6,334) ($6,524) (Less) General Partner Fee 3.0% ($20,000) ($20,600) ($21,218) ($21,855) ($22,510) ($23,185) ($23,881) ($24,597) ($25,335) ($26,095) Total Asset Management Fees ($25,000) ($25,750) ($26, 523) ($27,318) ($28,138) ($28,982) ( $29,851) ($30,747) ($31,669) ($32,619) VI. Net Cash Flow $76,257 $90,978 $105,892 $120,999 $136,297 $151,784 $167,459 $183,318 $199,360 $215,581 VII. Developer Fee Repayment
Beginning Balance $1,300,000 $1,277,043 $1,238,424 $1,183,308 $1,110,824 $1,020,071 $910,110 $779,965 $628,626 $455,040 Interest (2) 4.10% $53,300 $52,359 $50,775 $48,516 $45,544 $41,823 $37,314 $31,979 $25,774 $18,657 (Less) Cash Flow Credit ($76,257) ($90,978) ($105,892) ($120,999) ($136,297) ($151,784) ($167,459) ($183,318) ($199,360) ($215,581) Ending Balance $1,277,043 $1,238,424 $1,183,308 $1,110,824 $1,020,071 $910,110 $779,965 $628,626 $455,040 $258,115 VIII. Cash Flow Available for Distribution (3) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 (1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects annual escalation at 3.5% for operating
expenses, tenant services, and Authority
monitoring fee; 0% for replacement reserves and
issuer fee; 2.5% for property taxes/assessments;
and 1.0% for County monitoring fee.

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.

Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 19 79 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy 5.0%
II. Effective Gross Income (EGI) 3.5%
(Less) Operating Expenses
(1)
III. Net Operating Income
(Less) Debt Service - Permanent Loan
IV. Cash Flow
V. Asset Management Fees
(Less) Limited Partner Fee 3.0%
(Less) General Partner Fee 3.0%
Total Asset Management Fees
VI. Net Cash Flow
VII. Developer Fee Repayment
Beginning Balance
Interest
(2) 4.10%
(Less) Cash Flow Credit
Ending Balance
VIII. Cash Flow Available for Distribution (3)
(1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects annual escalation at 3.5% for operating
expenses, tenant services, and Authority
monitoring fee; 0% for replacement reserves and
issuer fee; 2.5% for property taxes/assessments;
and 1.0% for County monitoring fee.

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
11 12 13 14 15 16 17 18 19 20
$1,769,927 $1,814,175 $1,859,529 $1,906,018 $1,953,668 $2,002,510 $2,052,572 $2,103,887 $2,156,484 $2,210,396 ($88,496) ($90,709) ($92,976) ($95,301) ($97,683) ($100,125) ($102,629) ($105,194) ($107,824) ($110,520) $1,681,430 $1,723,466 $1,766,553 $1,810,717 $1,855,985 $1,902,384 $1,949,944 $1,998,692 $2,048,660 $2,099,876 ($740,811) ($765,269) ($790,580) ($816,773) ($843,879) ($871,929) ($900,957) ($930,997) ($962,085) ($994,256) $940,620 $958,197 $975,973 $993,944 $1,012,106 $1,030,455 $1,048,986 $1,067,695 $1,086,575 $1,105,620 ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) $265,576 $283,153 $300,929 $318,900 $337,062 $355,411 $373,942 $392,651 $411,531 $430,576 ($6,720) ($6,921) ($7,129) ($7,343) ($7,563) $0 $0 $0 $0 $0 ($26,878) ($27,685) ($28,515) ($29,371) ($30,252) ($31,159) ($32,094) ($33,057) ($34,049) ($35,070) ($33,598) ($34,606) ($35,644) ($36,713) ($37,815) ($31,159) ($32,094) ($33,057) ($34,049) ($35,070) $231,978 $248,547 $265,285 $282,186 $299,247 $324,252 $341,848 $359,594 $377,482 $395,506 $258,115 $36,721
$10,583 $1,506
($231,978) ($38,226)
$36,721 $0
$0 $210,321 $265,285 $282,186 $299,247 $324,252 $341,848 $359,594 $377,482 $395,506 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 20 80 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy 5.0%
II. Effective Gross Income (EGI) 3.5%
(Less) Operating Expenses
(1)
III. Net Operating Income
(Less) Debt Service - Permanent Loan
IV. Cash Flow
V. Asset Management Fees
(Less) Limited Partner Fee 3.0%
(Less) General Partner Fee 3.0%
Total Asset Management Fees
VI. Net Cash Flow
VII. Developer Fee Repayment
Beginning Balance
Interest
(2) 4.10%
(Less) Cash Flow Credit
Ending Balance
VIII. Cash Flow Available for Distribution (3)
(1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects annual escalation at 3.5% for operating
expenses, tenant services, and Authority
monitoring fee; 0% for replacement reserves and
issuer fee; 2.5% for property taxes/assessments;
and 1.0% for County monitoring fee.

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
21 22 23 24 25 26 27 28 29 30
$2,265,656 $2,322,297 $2,380,355 $2,439,864 $2,500,860 $2,563,382 $2,627,466 $2,693,153 $2,760,482 $2,829,494 ($113,283) ($116,115) ($119,018) ($121,993) ($125,043) ($128,169) ($131,373) ($134,658) ($138,024) ($141,475) $2,152,373 $2,206,182 $2,261,337 $2,317,870 $2,375,817 $2,435,213 $2,496,093 $2,558,495 $2,622,458 $2,688,019 ($1,027,549) ($1,062,002) ($1,097,657) ($1,134,556) ($1,172,741) ($1,212,258) ($1,253,154) ($1,295,475) ($1,339,274) ($1,384,600) $1,124,825 $1,144,180 $1,163,680 $1,183,315 $1,203,076 $1,222,954 $1,242,939 $1,263,020 $1,283,184 $1,303,419 ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) $449,781 $469,136 $488,636 $508,271 $528,032 $547,910 $567,895 $587,976 $608,140 $628,375 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($36,122) ($37,206) ($38,322) ($39,472) ($40,656) ($41,876) ($43,132) ($44,426) ($45,759) ($47,131) ($36,122) ($37,206) ($38,322) ($39,472) ($40,656) ($41,876) ($43,132) ($44,426) ($45,759) ($47,131) $413,658 $431,930 $450,314 $468,799 $487,376 $506,035 $524,764 $543,550 $562,381 $581,244 $413,658 $431,930 $450,314 $468,799 $487,376 $506,035 $524,764 $543,550 $562,381 $581,244 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 21 81 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy 5.0%
II. Effective Gross Income (EGI) 3.5%
(Less) Operating Expenses
(1)
III. Net Operating Income
(Less) Debt Service - Permanent Loan
IV. Cash Flow
V. Asset Management Fees
(Less) Limited Partner Fee 3.0%
(Less) General Partner Fee 3.0%
Total Asset Management Fees
VI. Net Cash Flow
VII. Developer Fee Repayment
Beginning Balance
Interest
(2) 4.10%
(Less) Cash Flow Credit
Ending Balance
VIII. Cash Flow Available for Distribution (3)
(1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects annual escalation at 3.5% for operating
expenses, tenant services, and Authority
monitoring fee; 0% for replacement reserves and
issuer fee; 2.5% for property taxes/assessments;
and 1.0% for County monitoring fee.

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
31 32 33 34 35 36 37 38 39 40
$2,900,231 $2,972,737 $3,047,055 $3,123,232 $3,201,313 $3,281,345 $3,363,379 $3,447,463 $3,533,650 $3,621,991 ($145,012) ($148,637) ($152,353) ($156,162) ($160,066) ($164,067) ($168,169) ($172,373) ($176,683) ($181,100) $2,755,220 $2,824,100 $2,894,703 $2,967,070 $3,041,247 $3,117,278 $3,195,210 $3,275,090 $3,356,968 $3,440,892 ($1,431,507) ($1,480,051) ($1,530,289) ($1,582,280) ($1,636,084) ($1,691,767) ($1,749,392) ($1,809,029) ($1,870,747) ($1,934,620) $1,323,712 $1,344,049 $1,364,414 $1,384,791 $1,405,163 $1,425,511 $1,445,818 $1,466,061 $1,486,220 $1,506,272 ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) $0 $0 $0 $0 $0 $648,668 $669,005 $689,370 $709,747 $730,119 $1,425,511 $1,445,818 $1,466,061 $1,486,220 $1,506,272 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($48,545) ($50,002) ($51,502) ($53,047) ($54,638) ($56,277) ($57,966) ($59,705) ($61,496) ($63,341) ($48,545) ($50,002) ($51,502) ($53,047) ($54,638) ($56,277) ($57,966) ($59,705) ($61,496) ($63,341) $600,123 $619,003 $637,868 $656,700 $675,480 $1,369,234 $1,387,852 $1,406,357 $1,424,724 $1,442,931 $600,123 $619,003 $637,868 $656,700 $675,480 $1,369,234 $1,387,852 $1,406,357 $1,424,724 $1,442,931 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 22 82 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy 5.0%
II. Effective Gross Income (EGI) 3.5%
(Less) Operating Expenses
(1)
III. Net Operating Income
(Less) Debt Service - Permanent Loan
IV. Cash Flow
V. Asset Management Fees
(Less) Limited Partner Fee 3.0%
(Less) General Partner Fee 3.0%
Total Asset Management Fees
VI. Net Cash Flow
VII. Developer Fee Repayment
Beginning Balance
Interest
(2) 4.10%
(Less) Cash Flow Credit
Ending Balance
VIII. Cash Flow Available for Distribution (3)
(1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects annual escalation at 3.5% for operating
expenses, tenant services, and Authority
monitoring fee; 0% for replacement reserves and
issuer fee; 2.5% for property taxes/assessments;
and 1.0% for County monitoring fee.

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
41 42 43 44 45 46 47 48 49 50
$3,712,541 $3,805,355 $3,900,489 $3,998,001 $4,097,951 $4,200,399 $4,305,409 $4,413,045 $4,523,371 $4,636,455 ($185,627) ($190,268) ($195,024) ($199,900) ($204,898) ($210,020) ($215,270) ($220,652) ($226,169) ($231,823) $3,526,914 $3,615,087 $3,705,464 $3,798,101 $3,893,053 $3,990,380 $4,090,139 $4,192,392 $4,297,202 $4,404,632 ($2,000,722) ($2,069,131) ($2,139,928) ($2,213,197) ($2,289,023) ($2,367,497) ($2,448,711) ($2,532,760) ($2,619,744) ($2,709,766) $1,526,192 $1,545,956 $1,565,536 $1,584,904 $1,604,030 $1,622,882 $1,641,428 $1,659,632 $1,677,458 $1,694,867 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$1,526,192 $1,545,956 $1,565,536 $1,584,904 $1,604,030 $1,622,882 $1,641,428 $1,659,632 $1,677,458 $1,694,867 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($65,241) ($67,198) ($69,214) ($71,290) ($73,429) ($75,632) ($77,901) ($80,238) ($82,645) ($85,124) ($65,241) ($67,198) ($69,214) ($71,290) ($73,429) ($75,632) ($77,901) ($80,238) ($82,645) ($85,124) $1,460,952 $1,478,758 $1,496,322 $1,513,614 $1,530,601 $1,547,250 $1,563,527 $1,579,394 $1,594,813 $1,609,742 $1,460,952 $1,478,758 $1,496,322 $1,513,614 $1,530,601 $1,547,250 $1,563,527 $1,579,394 $1,594,813 $1,609,742 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 23 83 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy 5.0%
II. Effective Gross Income (EGI) 3.5%
(Less) Operating Expenses
(1)
III. Net Operating Income
(Less) Debt Service - Permanent Loan
IV. Cash Flow
V. Asset Management Fees
(Less) Limited Partner Fee 3.0%
(Less) General Partner Fee 3.0%
Total Asset Management Fees
VI. Net Cash Flow
VII. Developer Fee Repayment
Beginning Balance
Interest
(2) 4.10%
(Less) Cash Flow Credit
Ending Balance
VIII. Cash Flow Available for Distribution (3)
(1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects annual escalation at 3.5% for operating
expenses, tenant services, and Authority
monitoring fee; 0% for replacement reserves and
issuer fee; 2.5% for property taxes/assessments;
and 1.0% for County monitoring fee.

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
51 52 53 54 55 56 57 58 59 60
$4,752,366 $4,871,176 $4,992,955 $5,117,779 $5,245,723 $5,376,866 $5,511,288 $5,649,070 $5,790,297 $5,935,055 ($237,618) ($243,559) ($249,648) ($255,889) ($262,286) ($268,843) ($275,564) ($282,454) ($289,515) ($296,753) $4,514,748 $4,627,617 $4,743,307 $4,861,890 $4,983,437 $5,108,023 $5,235,724 $5,366,617 $5,500,782 $5,638,302 ($2,802,931) ($2,899,349) ($2,999,134) ($3,102,405) ($3,209,282) ($3,319,891) ($3,434,364) ($3,552,836) ($3,675,446) ($3,802,338) $1,711,818 $1,728,268 $1,744,173 $1,759,485 $1,774,156 $1,788,132 $1,801,359 $1,813,781 $1,825,337 $1,835,964 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$1,711,818 $1,728,268 $1,744,173 $1,759,485 $1,774,156 $1,788,132 $1,801,359 $1,813,781 $1,825,337 $1,835,964 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($87,678) ($90,308) ($93,018) ($95,808) ($98,682) ($101,643) ($104,692) ($107,833) ($111,068) ($114,400) ($87,678) ($90,308) ($93,018) ($95,808) ($98,682) ($101,643) ($104,692) ($107,833) ($111,068) ($114,400) $1,624,139 $1,637,960 $1,651,155 $1,663,677 $1,675,473 $1,686,489 $1,696,667 $1,705,948 $1,714,269 $1,721,564 $1,624,139 $1,637,960 $1,651,155 $1,663,677 $1,675,473 $1,686,489 $1,696,667 $1,705,948 $1,714,269 $1,721,564 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 24 84 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy 5.0%
II. Effective Gross Income (EGI) 3.5%
(Less) Operating Expenses
(1)
III. Net Operating Income
(Less) Debt Service - Permanent Loan
IV. Cash Flow
V. Asset Management Fees
(Less) Limited Partner Fee 3.0%
(Less) General Partner Fee 3.0%
Total Asset Management Fees
VI. Net Cash Flow
VII. Developer Fee Repayment
Beginning Balance
Interest
(2) 4.10%
(Less) Cash Flow Credit
Ending Balance
VIII. Cash Flow Available for Distribution (3)
(1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects annual escalation at 3.5% for operating
expenses, tenant services, and Authority
monitoring fee; 0% for replacement reserves and
issuer fee; 2.5% for property taxes/assessments;
and 1.0% for County monitoring fee.

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
61 62 63 64 65 66 67 68 69 70
$6,083,431 $6,235,517 $6,391,405 $6,551,190 $6,714,969 $6,882,844 $7,054,915 $7,231,288 $7,412,070 $7,597,372 ($304,172) ($311,776) ($319,570) ($327,559) ($335,748) ($344,142) ($352,746) ($361,564) ($370,603) ($379,869) $5,779,259 $5,923,741 $6,071,834 $6,223,630 $6,379,221 $6,538,701 $6,702,169 $6,869,723 $7,041,466 $7,217,503 ($3,933,663) ($4,069,576) ($4,210,236) ($4,355,811) ($4,506,471) ($4,662,396) ($4,823,768) ($4,990,778) ($5,163,623) ($5,342,508) $1,845,596 $1,854,165 $1,861,598 $1,867,819 $1,872,750 $1,876,306 $1,878,401 $1,878,946 $1,877,843 $1,874,995 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$1,845,596 $1,854,165 $1,861,598 $1,867,819 $1,872,750 $1,876,306 $1,878,401 $1,878,946 $1,877,843 $1,874,995 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($117,832) ($121,367) ($125,008) ($128,758) ($132,621) ($136,600) ($140,698) ($144,919) ($149,266) ($153,744) ($117,832) ($121,367) ($125,008) ($128,758) ($132,621) ($136,600) ($140,698) ($144,919) ($149,266) ($153,744) $1,727,764 $1,732,798 $1,736,590 $1,739,061 $1,740,128 $1,739,706 $1,737,704 $1,734,027 $1,728,577 $1,721,251 $1,727,764 $1,732,798 $1,736,590 $1,739,061 $1,740,128 $1,739,706 $1,737,704 $1,734,027 $1,728,577 $1,721,251 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 25 85 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
1 2 3 4 5 6 7 8 9 10
I. Cash Flow Available for Distribution $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 II. Allocated to Pay Down Public Loans (1) 50.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 III. Poway Housing Authority
Beginning Balance $4,590,000 $4,727,700 $4,865,400 $5,003,100 $5,140,800 $5,278,500 $5,416,200 $5,553,900 $5,691,600 $5,829,300 Interest 3.0% $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 (Less) Cash Flow Credit (1) 60.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Ending Balance $4,727,700 $4,865,400 $5,003,100 $5,140,800 $5,278,500 $5,416,200 $5,553,900 $5,691,600 $5,829,300 $5,967,000 NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance $3,000,000 $3,090,000 $3,180,000 $3,270,000 $3,360,000 $3,450,000 $3,540,000 $3,630,000 $3,720,000 $3,810,000 Interest 3.0% $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 (Less) Cash Flow Credit
(1) 39.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Ending Balance $3,090,000 $3,180,000 $3,270,000 $3,360,000 $3,450,000 $3,540,000 $3,630,000 $3,720,000 $3,810,000 $3,900,000 (1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.

Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 26 86 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
11 12 13 14 15 16 17 18 19 20
$0 $210,321 $265,285 $282,186 $299,247 $324,252 $341,848 $359,594 $377,482 $395,506 $0 $105,160 $132,642 $141,093 $149,624 $162,126 $170,924 $179,797 $188,741 $197,753 $5,967,000 $6,104,700 $6,178,805 $6,236,290 $6,288,665 $6,335,882 $6,375,537 $6,409,872 $6,438,841 $6,462,401 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $0 ($63,595) ($80,215) ($85,325) ($90,484) ($98,044) ($103,365) ($108,731) ($114,140) ($119,590) $6,104,700 $6,178,805 $6,236,290 $6,288,665 $6,335,882 $6,375,537 $6,409,872 $6,438,841 $6,462,401 $6,480,511 $3,900,000 $3,990,000 $4,038,435 $4,076,007 $4,110,239 $4,141,099 $4,167,018 $4,189,459 $4,208,393 $4,223,791 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $0 ($41,565) ($52,428) ($55,768) ($59,140) ($64,081) ($67,559) ($71,066) ($74,601) ($78,163) $3,990,000 $4,038,435 $4,076,007 $4,110,239 $4,141,099 $4,167,018 $4,189,459 $4,208,393 $4,223,791 $4,235,628 Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 27 87 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
21 22 23 24 25 26 27 28 29 30
$413,658 $431,930 $450,314 $468,799 $487,376 $506,035 $524,764 $543,550 $562,381 $581,244 $206,829 $215,965 $225,157 $234,399 $243,688 $253,017 $262,382 $271,775 $281,191 $290,622 $6,480,511 $6,493,133 $6,500,229 $6,501,767 $6,497,716 $6,488,047 $6,472,736 $6,451,763 $6,425,109 $6,392,761 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 ($125,078) ($130,603) ($136,162) ($141,751) ($147,369) ($153,011) ($158,674) ($164,354) ($170,048) ($175,752) $6,493,133 $6,500,229 $6,501,767 $6,497,716 $6,488,047 $6,472,736 $6,451,763 $6,425,109 $6,392,761 $6,354,709 $4,235,628 $4,243,878 $4,248,516 $4,249,521 $4,246,873 $4,240,554 $4,230,547 $4,216,838 $4,199,418 $4,178,275 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 ($81,751) ($85,362) ($88,995) ($92,648) ($96,319) ($100,007) ($103,708) ($107,421) ($111,143) ($114,870) $4,243,878 $4,248,516 $4,249,521 $4,246,873 $4,240,554 $4,230,547 $4,216,838 $4,199,418 $4,178,275 $4,153,405 Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 28 88 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
31 32 33 34 35 36 37 38 39 40
$600,123 $619,003 $637,868 $656,700 $675,480 $1,369,234 $1,387,852 $1,406,357 $1,424,724 $1,442,931 $300,062 $309,502 $318,934 $328,350 $337,740 $684,617 $693,926 $703,178 $712,362 $721,466 $6,354,709 $6,310,949 $6,261,480 $6,206,307 $6,145,439 $6,078,893 $5,802,576 $5,520,629 $5,233,087 $4,939,991 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 ($181,460) ($187,169) ($192,873) ($198,567) ($204,246) ($414,017) ($419,647) ($425,242) ($430,796) ($436,301) $6,310,949 $6,261,480 $6,206,307 $6,145,439 $6,078,893 $5,802,576 $5,520,629 $5,233,087 $4,939,991 $4,641,389 $4,153,405 $4,124,803 $4,092,470 $4,056,410 $4,016,627 $3,973,133 $3,792,533 $3,608,254 $3,420,318 $3,228,752 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 ($118,601) ($122,333) ($126,061) ($129,783) ($133,494) ($270,600) ($274,279) ($277,936) ($281,566) ($285,164) $4,124,803 $4,092,470 $4,056,410 $4,016,627 $3,973,133 $3,792,533 $3,608,254 $3,420,318 $3,228,752 $3,033,588 Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 29 89 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
41 42 43 44 45 46 47 48 49 50
$1,460,952 $1,478,758 $1,496,322 $1,513,614 $1,530,601 $1,547,250 $1,563,527 $1,579,394 $1,594,813 $1,609,742 $730,476 $739,379 $748,161 $756,807 $765,300 $773,625 $781,764 $789,697 $797,406 $804,871 $4,641,389 $4,337,339 $4,020,325 $3,688,489 $3,341,470 $2,978,904 $2,600,427 $2,205,674 $1,794,280 $1,365,882 $137,700 $130,120 $120,610 $110,655 $100,244 $89,367 $78,013 $66,170 $53,828 $40,976 ($441,750) ($447,134) ($452,445) ($457,674) ($462,810) ($467,845) ($472,766) ($477,564) ($482,226) ($486,740) $4,337,339 $4,020,325 $3,688,489 $3,341,470 $2,978,904 $2,600,427 $2,205,674 $1,794,280 $1,365,882 $920,118 $3,033,588 $2,834,862 $2,627,663 $2,410,777 $2,183,967 $1,946,996 $1,699,625 $1,441,617 $1,172,732 $892,733 $90,000 $85,046 $78,830 $72,323 $65,519 $58,410 $50,989 $43,249 $35,182 $26,782 ($288,726) ($292,245) ($295,716) ($299,133) ($302,490) ($305,781) ($308,997) ($312,133) ($315,180) ($318,131) $2,834,862 $2,627,663 $2,410,777 $2,183,967 $1,946,996 $1,699,625 $1,441,617 $1,172,732 $892,733 $601,385 Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 30 90 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
51 52 53 54 55 56 57 58 59 60
$1,624,139 $1,637,960 $1,651,155 $1,663,677 $1,675,473 $1,686,489 $1,696,667 $1,705,948 $1,714,269 $1,721,564 $812,070 $818,980 $825,578 $831,839 $837,737 $843,244 $848,334 $852,974 $857,134 $860,782 $920,118 $456,628
$27,604 $13,699
($491,094) ($470,327)
$456,628 $0
$601,385 $298,450
$18,042 $8,953
($320,976) ($307,403)
$298,450 $0
Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 31 91 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
61 62 63 64 65 66 67 68 69 70
$1,727,764 $1,732,798 $1,736,590 $1,739,061 $1,740,128 $1,739,706 $1,737,704 $1,734,027 $1,728,577 $1,721,251 $863,882 $866,399 $868,295 $869,530 $870,064 $869,853 $868,852 $867,014 $864,288 $860,625 Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 32 92 of 95
November 19, 2024, Item #10

WORKSHEET A
RESTRICTED RENTS - 30% AMI, 2024

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
Number of Bedrooms 1 2 3
A. Health and Safety Code Section 50053
Percent of AMI 30% 30% 30%
Assumed Family Size 2.0 3.0 4.0
Household Income (Rounded) $28,680 $32,265 $35,850
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $717 $807 $896
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $651 $712 $774
B. Low Income Housing Tax Credit (LIHTC) Program
Percent of AMI 30% 30% 30%
Assumed Family Size 1.5 3.0 4.5
Household Income $34,095 $40,920 $47,280
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $852 $1,023 $1,182
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $786 $928 $1,060
(1)
Monthly Utility One Two Three
Electric Cooking $12 $17 $22
Other Electric $44 $61 $78
Air Conditioning $10 $17 $22
Total $66 $95 $122
Per Developer submittal, profile per Housing Authority of the County of San Diego 2024 Utility Allowance Schedule, effective March 1, 2024.

Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 33 93 of 95
November 19, 2024, Item #10

WORKSHEET B
RESTRICTED RENTS - 50% AMI, 2024

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
Number of Bedrooms 1 2 3
A. Health and Safety Code Section 50053
Percent of AMI 50% 50% 50%
Assumed Family Size 2.0 3.0 4.0
Household Income (Rounded) $47,800 $53,775 $59,750
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,195 $1,344 $1,494
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $1,129 $1,249 $1,372
B. Low Income Housing Tax Credit (LIHTC) Program
Percent of AMI 50% 50% 50%
Assumed Family Size 1.5 3.0 4.5
Household Income $56,825 $68,200 $78,800
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,421 $1,705 $1,970
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $1,355 $1,610 $1,848
(1)
Monthly Utility One Two Three
Electric Cooking $12 $17 $22
Other Electric $44 $61 $78
Air Conditioning $10 $17 $22
Total $66 $95 $122
Per Developer submittal, profile per Housing Authority of the County of San Diego 2024 Utility Allowance Schedule, effective March 1, 2024.

Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 34 94 of 95
November 19, 2024, Item #10

WORKSHEET C
RESTRICTED RENTS - 59% AMI, 2024

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
Number of Bedrooms 1 2 3
A. Health and Safety Code Section 50053
Percent of AMI 59% 59% 59%
Assumed Family Size 2.0 3.0 4.0
Household Income (Rounded) $56,404 $63,455 $70,505
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,410 $1,586 $1,763
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $1,344 $1,491 $1,641
B. Low Income Housing Tax Credit (LIHTC) Program
Percent of AMI 59% 59% 59%
Assumed Family Size 1.5 3.0 4.5
Household Income $67,054 $80,476 $92,984
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,676 $2,012 $2,325
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $1,610 $1,917 $2,203
(1)
Monthly Utility One Two Three
Electric Cooking $12 $17 $22
Other Electric $44 $61 $78
Air Conditioning $10 $17 $22
Total $66 $95 $122
Per Developer submittal, profile per Housing Authority of the County of San Diego 2024 Utility Allowance Schedule, effective March 1, 2024.

Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 35 95 of 95
November 19, 2024, Item #10