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CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERSIDE, CALIFORNIA, SUPPORTING (1) THE FUNDING APPLICATIONS FOR THE MULBERRY GARDEN FAMILY APARTMENTS PROJECT, CONSISTING OF 59 UNITS OF AFFORDABLE SENIOR HOUSING AT 2524 MULBERRY STREET, BY EDEN HOUSING, INC., TO THE CALIFORNIA DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT MULTIFAMILY FINANCE
SUPER NOFA, THE STATE OF CALIFORNIA EXCESS SITES LOCAL
GOVERNMENT MATCHING GRANTS PROGRAM, T HE CALIFORNIA TAX
CREDIT ALLOCATION COMMITTEE, AND ANY OTHER STATE, FEDERAL,
OR LOCAL GOVERNMENT SPONSORED AFFORDABLE HOUSING FUNDING OPPORTUNITIES, AND (2) A LOAN BY THE CITY OF RIVERSIDE TO EDEN HOUSING, INC. FOR UP TO $3,000,000 IN FY 2022/2023 HOME INVESTMENT PARTNERSHIPS ACT AMERICAN RESCUE PLAN FUNDS; SUBJECT TO
APPROVAL AND EXECUTION OF NECESSARY AGREEMENTS
WHEREAS, on March 13, 2018, the City of Riverside (“City”) adopted a Housing First Plan which sets forth the City’s policies, goals, and objectives in addressing homeless issue s, through the strategic alignment of municipal and regional resources, with an emphasis on providing homeless individuals housing first and then wrap-around services; and WHEREAS, Eden Housing, Inc., a California limited partnership (“Developer”), is currently securing financing for the development of a 100 percent affordable housing project, consisting of 209 rental units (150 units of Affordable Family Housing and 59 units of Affordable Senior Housing) located at 2524 Mulberry Street in the Downt own Neighborhood (“Project” or “Mulberry Garden Apartments”); and
WHEREAS, the mission of the Project would be to provide affordable housing to very low - and low-income individuals, families and seniors; and
WHEREAS, the Project aligns with the City’s Hous ing First Plan and would benefit the community; and
WHEREAS, on January 15, 2019, Governor Gavin Newsom signed Executive Order No. N- 06-19, which allows the production of affordable housing on state -owned Excess Sites (“Excess Sites”). The Executive Order authorizes the Department of General Services (“DGS”) and the Department of Housing and Community Development (“Department” or “HCD”) to identify and prioritize Excess Sites for sustainable, cost-effective, and innovative multi-family affordable housing projects; and
WHEREAS, on September 15, 2021, DGS and the Department selected Eden Housing, Inc. to develop affordable housing at 2524 Mulberry Street, Riverside, CA 92501; and
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28 CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
WHEREAS, Assembly Bill (“AB”) 434 makes several statutory changes to the Health and Safety Code (“HSC”) and to the Military and Veterans Code to provide funding pursuant to the Multifamily Finance Super NOFA for the Multifamily Housing Program (“MHP”), the Veterans Housing and Homelessness Prevention (“VHHP”) program, the Joe Serna Jr. Farmworker Housing Grant (“FWHG”), and the Infill Infrastructure Grant Program of 2019 (“IIG-2019”); and WHEREAS, the Department has issued a Multifamily Finance Super NOFA (“Super NOFA”), dated May 18, 2023 for the Program. Super NOFA applications are due by 4 p.m. on July 12, 2023; and
WHEREAS, the Program requires contribution from the City of Riverside to the Mulberry Gardens Apartments in order for Eden Housing, Inc. (“Applicant”) to apply for Program funds pursuant to AB 434. Towards that end, Applicant is submitting an Application for Program funds (“Application”) to the Department for review and consideration; and WHEREAS, the Program requires a resolution from the City of Riverside pursuant to AB 434 conceptually approving the budget attached as Exhibit A, including all sources, and demonstrating the amount of local government contribution to the applicant for predevelopment and development costs for the Mulberry Garden Apartments, and the requested amount for the Program; and WHEREAS, the State of California Tax Credit Allocation Committee (“TCAC”) and HCD , through the issuance of ongoing Notices of Funding Availability, have periodically invited public agencies and not -for-profit housing developers to submit applications to fund development of affordable and supportive housing for homelessness prevention; and WHEREAS, the Developer is pursuing affordable housing program funding for the Project from HCD, DGS, and TCAC; and
WHEREAS, the City has also received HOME Investment Partnerships Act-American Rescue Plan funds (“HOME-ARP Funds”) from the United States Department of Housing and Urban Development (“HUD”) pursuant to the Cranston-Gonzales National Housing Act of 1990, as amended (“HOME Regulations”); and
WHEREAS, the HOME-ARP Funds must be used in accordance with the HOME Regulations in order to increase housing for very low and low-income households; and WHEREAS, the Developer has also applied to the City for HOME-ARP Funds; and WHEREAS, the City supports the Developer’s applications and is willing to lend up to Three Million Dollars ($3,000,000) in FY 2021/2022 HOME-ARP Funds if the Developer meets the project
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28 CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
readiness standards and other project requirements set forth in the HOME -ARP Regulations and Guidelines; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Riverside, California, as follows:
Section 1: The City Council hereby declares its support for, Eden Housing, Inc.’s applications for affordable housing grant and loan funds, including HCD and TCAC for affordable housing program funding and low -income housing tax credits, and any other State, Federal, or Local government sponsored affordable housing funding opportunities, as well as Eden Housing, Inc.’s application to the City for HOME-ARP Funds.
Section 2: T
he City Council conceptually approves the budget attached hereto as Exhibit “A” and hereby declares its willingness to lend up to Three Million Dollars ($3,000,000) in FY 2021/2022 HOME-ARP Funds to support the Mulberry Garden Apartments, if project readiness standards and other project requirements set forth in the HOME Regulations and Guidelines are met, subject to the negotiation of a HOME-ARP loan agreement, and approval by the City Council.
ADOPTED by the City Council this _________ day of _____________, 2023.
___________________________
PATRICIA LOCK DAWSON
Mayor of the City of Riverside
Attest:
_____________________________
DONESIA GAUSE
City Clerk of the City of Riverside
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28 CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
I, Donesia Gause, City Clerk of the City of Riverside, California, hereby certify that the foregoing resolution was duly and regularly adopted at a meeting of the City Council of said City at its meeting held on the _________ day of _____________, 2023, by the following vote, to wit:
Ayes:
Noes:
Absent:
Abstain:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Riverside, California, this ________ day of ______________, 2023.
_________________________________
DONESIA GAUSE
City Clerk of the City of Riverside
6/7/23 sw 23-0792
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CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
EXHIBIT “A”
BUDGET
Eden Housing - Mulberry Gardens Riverside - Senior
9% Tax Credit
5/31/2023 2:59 PM Page 1
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AB C D E F G H
Mulberry Gardens Senior 9% Senior TCAC Region Inland Empire DDA/QCT Yes, QCT 2022 and 2023 County: Riverside County Address 2524 Mulberry Street, Riverside CA, 92501 Opportunity Map Low Resource Area
SOURCES OF FUNDS TOTAL RESIDENTIAL COMMERCIAL
Construction
Period NOTES
Perm Loan Trance A- NOI 813,000 813,000 17 yr/ 30 yr amt- 7.25% Perm Loan Trance B- Section 8 951,000 951,000 17 yr/ 30 yr amt- 7.25% City HOME 3,000,000 3,000,000 55 yr-3% RR
3,000,000
County 1,300,000 1,300,000 55 yr-3% RR 1,300,000
HCD LGMG 6,000,000 6,000,000 55 yr-0% 6,000,000
HCD IIG 2,919,904 2,919,904 2,919,904
Land Donation - GP Equity or Sponsor Loan TBD 1,446,683 1,446,683 55 yr-3% RR 1,446,683 TUMF Fee Waiver 381,640 381,640 55 yr-3% RR 381,640
CEC Build Grant - Sponsor Loan 237,270 237,270 237,270
Deferred Developer Fee 0 0 net dev fee 2,200,000
GP Equity 100 100 Max allowable 2,200,000 100
Investor Capital Contributions 19,171,558 19,171,558 0 1,917,156 TOTAL SOURCES 36,221,155 36,221,155 0 funds available 17,202,753 Const. period costs 34,220,620
Construction loan needed 17,017,867 8.50%
18 mo const + 7
Surplus/Gap 0 res/comm by sf
100.00% 0.00% Construction Deferred
USES OF FUNDS TOTAL COST RESIDENTIAL COMMERCIAL BASIS 9% CREDIT Period Costs Costs
LAND COST/ACQUISITION
Land Cost or Value 1,446,683 1,446,683 0 1,446,683
Environmental Remediation 00 0 0
Carrying Costs 0 0 0
Legal & Closing Costs 30,000 30,000 0 30,000
Site Maintenance (i.e. Security, Clean-Up) 0 0 0 0
Relocation 0 0 0
Demo 285,000 285,000 0 285,000
Off-Site Improvements 956,000 956,000 0 956,000 956,000 Total Acquisition Cost 2,717,683 2,717,683 0 2,717,683
NEW CONSTRUCTION
Site Work and Utilities GC Estimate 1,255,824 1,255,824 0 1,073,824 1,255,824 Structures 23,222,103 16,700,000 16,700,000 0 16,700,000 16,700,000 Solar & Battery Storage 170,818 170,818 0 170,818 170,818 GC Contingency 722,590 722,590 0 722,590 722,590
Cost Escalation Contingency 0 0 0 00
General Requirements 6.61% 1,245,765 1,245,765 0 1,245,765 1,245,765 Contractor Insurance & Bond 502,801 502,801 0 502,801 502,801 Contractor Overhead & Profit 6.88% 1,383,305 1,383,305 0 1,383,305 1,383,305 Total New Construction Costs 13.49% 21,981,103 21,981,103 0 21,981,103
ARCHITECTURAL FEES
Design 706,836 706,836 0 706,836 706,836
Supervision 136,500 136,500 0 136,500 136,500
Total Architectural Costs 843,336 843,336 0 843,336
Survey and Engineering includes testing 155,602 155,602 0 155,602 155,602 CONSTR. INTEREST & FEES
Const. Loan Interest 2,037,180 2,037,180 0 1,193,378 2,037,180 Predev loan costs / interest 60,796 60,796 0 60,796 60,796 Construction loan fee (@ 1%) and expenses ($45K) 215,179 215,179 0 215,179 215,179 City or County loan fees 0 0 0 0 0
Taxes 00 0 00
Insurance 839,136 839,136 0 839,136 839,136
Title and Recording 65,000 65,000 0 65,000 65,000
Total Construction Interest and Fees 3,217,291 3,217,291 0 3,217,291
PERMANENT FINANCING
Perm loan fee & Expenses (@ 1% + $25K) 33,130 33,130 33,130 Cost of Bond Issuance 00 0
Title and Recording 20,000 20,000 0 20,000
legal 20,000 20,000 0 20,000
Other 0 0
Total Permanent Financing Costs 73,130 73,130 0 33,130
LEGAL FEES
Lender Legal Costs Paid by Applicant 60,000 60,000 0 60,000 60,000 Soft Lenders Legal 20,000 20,000 0 20,000 20,000
Other - Owner Legal 85,000 85,000 0 85,000 85,000
Total Attorney Costs 165,000 165,000 0 165,000
RESERVES
Capitalized Operating Reserve - 6 mo 270,110 270,110 270,110 Replacement Reserve 00 0
Services Reserve 0 0 0
Transition Reserve 00 0
Total Reserve Costs 270,110 270,110 0 0
Total Appraisal Costs 10,000 10,000 0 10,000 10,000
Total Construction Contingency Costs 10.00% 2,322,210 2,322,210 0 2,322,210 2,322,210 OTHER
Tax Credit App./Alloc./Monitoring fees 109,135 109,135 168,709 -59,575 Construction Management 82,080 82,080 0 82,080 82,080
Local Development Impact Fees 1,143,975 1,143,975 0 762,335 1,143,975 Permit Processing Fees 185,000 185,000 0 185,000 185,000 Market Study 5,500 5,500 0 5,500
Marketing & Lease up 116,000 116,000 0 116,000
Environmental - incl in survey and engineering 0 0 0 00 Furnishings 100,000 100,000 0 100,000 100,000
Printing 00 0 00
Soft Cost Contingency 5.2% 320,000 320,000 0 320,000 320,000 Total Other Costs 2,061,690 2,061,690 0 2,121,264
Total Project Cost 33,817,155 33,817,155 0 30,074,155 33,566,620
DEVELOPER COSTS
Developer Overhead/Profit 2,200,000 2,200,000 2,200,000 450,000 1,750,000 Consultant/Processing Agent 0
Project Administration
Broker Fees paid by owner
Construction Management Oversight
Other
Total Developer Costs 2,200,000 2,200,000 0 2,200,000 450,000 TOTAL PROJECT COST 36,017,155 36,017,155 0 32,274,155 34,016,620 Syndication Costs
Legal - Syndication & Investor 116,000 116,000 0 116,000 Audit 20,000 20,000 0 20,000
Consultant - Syndication 62,000 62,000 0 62,000
Legal- Organization 6,000 6,000 6,000
Total Syndication Costs 204,000 204,000 0 204,000
TOTAL PROJECT COSTS INCL. SYNDICATION 36,221,155 36,221,155 0 32,274,155 34,220,620 2,000,535