Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00329 March 8, 2022 Public Hearing Item 01
Title: (City Council/Housing Authority) Tax Equity and Fiscal Responsibility Act Hearing and Approval of Tax-Exempt Bonds and Loan Commitment Funds to the Mirasol Village Block D Project (Twin Rivers Phase 4) (Noticed on 2/22/2022) [Published for 10-Day Review 02/24/2022]
Location: 475 Pipevine Street, District 4
Recommendation: Conduct a public hearing and upon conclusion, adopt: 1) a City Council Resolution indicating the City Council has conducted a Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing related to the proposed construction and financing of the Mirasol Village Block D (Block D) (Project) and approving the issuance of tax-exempt bonds by the Housing Authority of the City of Sacramento (Housing Authority); 2) a City Council Resolution a) amending the Sacramento Housing and Redevelopment Agency (SHRA) budget to allocate up to $7 million comprised of $3.3 million in Permanent Local Housing Allocation (PLHA) funds, $1.4 million in Mixed Income Housing Funds (MIHF), $1.4 million in Housing Trust Funds (HTF) and $900,000 in Housing Opportunities for Persons with AIDS (HOPWA) funds for the purpose of construction and permanent financing of the Project, b) approving the Conditional Loan Commitment (Commitment), c) authorizing SHRA to execute and transmit the Commitment to Twin Rivers Phase 4, L.P. (McCormack Baron Salazar) or related entity (Developer) for the Project, d) authorizing SHRA to negotiate, enter into, execute and amend from time to time a funding agreement comprised of up to $7 million in PLHA, MIHF, HTF and HOPWA funds and related documents for the construction and permanent financing of the Project with the Developer and execute other documents, as approved to form by its Office of the General Counsel (Counsel), and perform other actions required for the PLHA, MIHF, HTF and HOPWA program funds, including without limitation, negotiation, subordination, regulatory agreements, financial restructuring, and extensions, consistent with its adopted policy and with this resolution, e) designate the Housing Authority of the County of Sacramento (HACOS) to negotiate, enter into, execute and amend from time to time a funding agreement comprised of up to $2 million in Choice Neighborhoods Implementation (CNI) funds and related documents for the construction and permanent financing of the Project with the Developer and execute other documents, as approved to form by its Counsel, and perform other actions required for the CNI program funds, including without limitation, negotiation, subordination, regulatory agreements, financial restructuring, and extensions, consistent with its adopted policy and with
File ID: 2022-00329 Public Hearing Item 01
March 8, 2022
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City of Sacramento
this resolution, and f) making related findings; 3) a Housing Authority Resolution a) amending the Housing Authority budget to allocate up to $3 million in Housing Authority Funds (HAF) for the purpose of construction and permanent financing of the Project, b) approving the Commitment, c) authorizing the Executive Director, or her Designee, to execute and transmit the Commitment to the Developer for the Project, d) authorizing the Executive Director, or her Designee, to negotiate, enter into, execute and amend from time to time a funding agreement comprised of up to $3 million in HAF and related documents for the construction and permanent financing of the Project with the Developer and execute other documents, as approved to form by its Counsel, and perform other actions required for the HAF, including without limitation, negotiation, subordination, regulatory agreements, financial restructuring, and extensions, consistent with its adopted policy and with this resolution, and e) making related findings; and 4) a Housing Authority Resolution a) indicating the intention of the Housing Authority to issue up to $38 million in tax exempt mortgage revenue bonds to provide acquisition, construction and permanent financing of the Project, b) authorizing the Housing Authority to submit an application to the California Debt Limit Allocation Committee (CDLAC) for allocation authority to issue bonds, and c) authorizing the Executive Director, or designee, to execute any and all documents deemed necessary by herself or her designee and related to the transaction.
Contact: La Shelle Dozier, Executive Director, [email protected], (916) 440-1319; Christine Weichert, Director, (916) 440-1353, [email protected], Sacramento Housing and Redevelopment Agency
Presenter: Anne Nicholls, Management Analyst, (916) 440-1353, [email protected], Sacramento Housing and Redevelopment Agency
Attachments:
01-Description/Analysis
02-Council Resolution – TEFRA
03-Council Resolution – Commitment
04-Exhibit A to Resolution – Commitment
05-Housing Authority Resolution – Commitment
06-Exhibit A to Resolution – Commitment
07-Housing Authority Resolution – Inducement
08-Vicinity Map
09-Project Renderings
10-Residential Project Summary
11-Cash Flow Proforma
12-Maximum Income and Rent Limits
File ID: 2022-00329 Public Hearing Item 01
March 8, 2022
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City of Sacramento
Description/Analysis
Issue Detail: In 2015, HACOS and the City of Sacramento (City) were, as co-grantees, awarded a $30 million CNI Grant from the US Department of Housing and Urban Development (HUD) for the Twin Rivers Transit Oriented Development and Light Rail Station project (Master Development). The CNI Grant period ends September 30, 2022, by which time all grant funds must be expended and all units must be financed, otherwise, the $30 million grant is subject to recapture.
On December 12, 2017, HACOS and City Council approved the Master Development Agreement, which includes the Option to Lease (ground lease loans). SHRA is managing the Master Development and McCormack Baron Salazar is the master developer and Housing Lead (Developer). The Master Development is now known as Mirasol Village. The total project area includes six residential blocks and encompasses approximately 26 acres. A vicinity map and project renderings of Mirasol Village are shown in Attachments 8 and 9.
The Master Development is being developed in five phases. The first phase includes Blocks B and E (123 units) and construction will be completed in April 2022. The second phase is Block A (104 units), and construction will be completed in September 2022. The third phase is Block C (84 units) and the Developer plans to start construction on this block by the summer of 2022.
The Developer is now actively seeking to secure all funds needed to construct the fourth phase, Block D (116 units) (Project), subject of this report. The fifth phase, Block F, is the block east of 12th Street and will be the last block developed.
On March 16, 2021, City Council approved SHRA and the Developer to apply to the State of California Strategic Growth Council and Department of Housing and Community Development in funding Round 6 for an Affordable Housing and Sustainable Communities grant for up to $30 million, including up to $20 million for the affordable housing development and $10 million for the housing related infrastructure of the Project. Unfortunately, in January 2022, the Project was not awarded.
On December 7, 2021, HACOS and City Council approved the predevelopment loan agreement and construction/permanent loan commitment of up to $2 million in CNI funds for the financing of Mirasol Village Block D (Phase 4).
The Developer of the Project applied to SHRA requesting a not to exceed $38 million bond issuance from the Housing Authority and a $15 million gap loan from the City and County for the construction and permanent financing of the Project.
File ID: 2022-00329 Public Hearing Item 01
March 8, 2022
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City of Sacramento
On November 2, 2021, the Board of Supervisors (Board) adopted the American Rescue Plan Act (ARPA) Phase One Funding Allocation with Housing as a priority, and SHRA staff is recommending an appropriation of $5 million of ARPA funds for the construction and permanent financing of this Project. On March 8, 2022, it is anticipated the Board will approve a $5 million loan commitment comprised of ARPA funds for the construction and permanent financing of the Project to fill the $15 million gap loan required.
On February 11, 2022, the Developer submitted a funding application to California Housing Finance Agency (CalHFA) for $5 million in Mixed Income Program (MIP) funds to assist with the construction and permanent financing of the Project.
Subject to all governing board approvals, the Housing Authority and Developer will apply to California Debt Limit Allocation Committee (CDLAC) for tax-exempt bonds and to California Tax Credit Allocation Committee (CTCAC) for four percent Low Income Housing Tax Credits (LIHTC) on March 16, 2022, with a goal to close financing in fall 2022 and complete construction by the fall of 2024.
Development: Mirasol Village Block D will be a new construction, mixed-income housing development. The Project will include a mixture of multifamily apartment and garden-style walk-up buildings. Block D will consist of a total of five residential buildings that includes 116 rental housing units that range from one to four bedrooms in size and 58 on-grade parking spaces. The unit mix will include 47 replacement units, 43 tax-credit units, 25 units restricted to 80% of Area Median Income (AMI) and one exempt management unit. A separate building at the north end of the site will include an early childhood education center that will be developed by SHRA. Block D residents will also have access to all outdoor community amenities including the park, garden, barbeque areas, and electric car share.
Entitlements: The site plan approval for Block D was received on February 27, 2020, and the building permits are expected to be ready to issue in fall 2022.
Developer: The limited partnership, Twin Rivers Phase 4, L.P. will develop the Project. A McCormack Baron Salazar, Inc. affiliate, Twin Rivers Phase 4, MBS GP, Inc., will serve as administrative general partner of the limited partnership. The Developer is an experienced owner and manager of affordable rental housing projects with more than 40 years of experience in affordable housing and has developed over 21,000 homes in 23 states across the U.S., including 13 communities in California. They have extensive experience in financing projects with tax credits, tax exempt bonds, and other public and private funding sources.
File ID: 2022-00329 Public Hearing Item 01
March 8, 2022
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The Sacramento Housing Authority Repositioning Program, Inc. (SHARP) is the managing general partner of the limited partnership and is a non-profit public benefit corporation formed by the Housing Authority to pursue projects as a strategic response to reductions in federal funding sources for public housing. SHARP can attract private development partners and financing sources not otherwise directly available to the Housing Authority.
Property Management: The Project will be managed by the John Stewart Company (JSCo), an experienced property management firm with over 40 years of experience operating affordable apartment communities. There are over 420 properties in California consisting of more than 31,600 affordable and market rate residential units in their portfolio. The JSCo currently manages 16 SHRA financed affordable housing properties in the Sacramento region. SHRA staff has reviewed and approved the management plan, including daily operations, leasing procedures, maintenance, and eviction procedures to ensure the company meets SHRA requirements for property management.
Resident Services: Resident services will be provided by Urban Strategies, which currently provides resident services to 11 affordable housing communities across the country. Urban Strategies will be required to provide at least 20 hours of services per week for Block D residents. Programs will be tailored to resident needs. SHRA staff has reviewed and approved Urban Strategies’ resident services plan detailing the scope and schedule of services to be provided. Services will be provided by an on-site services coordinator and will include social services and enrichment programs.
Project Financing: In addition to the capitalized ground lease loans previously approved by the County Housing Authority Board on December 12, 2017, and CNI funds previously approved by the County Housing Authority Board and City Council on December 7, 2021, the proposed financing of the Project includes County ARPA funds, City Permanent Local Housing Allocation funds (PLHA), City Housing Authority Funds (HAF), City Mixed Income Housing Funds (MIHF), City Housing Trust Funds and Housing Opportunities for Persons With AIDS (HOPWA) loans, CalHFA MIP loan, four percent LIHTC, tax-exempt bond financing, a conventional loan, deferred developer fee and development impact fee waivers. The law firm of Orrick, Herrington and Sutcliffe LLP, will serve as Bond Counsel to the Housing Authority. A summary of County and City financing is provided in the following table:
File ID: 2022-00329 Public Hearing Item 01
March 8, 2022
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City of Sacramento
Mirasol Village Block D
County and City Loan Programs Amount
SHRA County ARPA Loan $ 5,000,000
HACOS CNI Loan (approved December 2021) $ 2,000,000 HACOS Ground Lease Loan (approved December 2017) $ 468,000 Subtotal of County Loans $ 7,468,000
SHRA City PLHA Loan $ 3,300,000
HACS HAF Loan $ 3,000,000
SHRA MIHF Loan $ 1,400,000
SHRA City HTF Loan $ 1,400,000
SHRA HOPWA Loan $ 900,000
Subtotal of City Loans $ 10,000,000
TOTAL COUNTY AND CITY LOANS $ 17,468,000
Low-Income Set-Aside Requirements: As a condition of receiving LIHTC and the benefits of tax-exempt bond financing, federal law requires that units be set aside for targeted income groups. Income restrictions from LIHTC financing require that 20 percent of the units have rents that are affordable to households with income up to 50 percent of Area Median Income (AMI). SHRA further requires at least 15 percent of the units have rents that are affordable to households with income up to 50 percent AMI and at least five percent of the units have rents that are affordable to households with income up to 30 percent AMI, based on financial feasibility. HUD approved 47 replacement Project Based Vouchers for the public housing replacement units in the Project which are administered by the County Housing Authority.
Project affordability restrictions will be specified in regulatory agreements as required by the ARPA, CNI, Ground Lease, PLHA, HAF, MIHF, HTF, and HOPWA funding sources with the Developer. The Residential Project Summary and Proforma are included as Attachments 10 and 11, and a schedule of Maximum Income and Rent Limits is included as Attachment 12.
These anticipated sources and their affordability requirements are summarized in the following table:
File ID: 2022-00329 Public Hearing Item 01
March 8, 2022
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City of Sacramento
Mirasol Village Block D
Affordability Restrictions (55 years)¹ Units % of Units Extremely Low Income (30% AMI) 47 40%
Low Income (60% AMI) 43 37%
Low-Moderate Income (80% AMI) 25 22%
Management Unit (Exempt) 1 1%
Total 116 100%
¹Pursuant to 24CFR 983.301, contract rents approved by HUD may exceed the tax-credit rent limits; and the AMI change is due to income averaging regulation by CDLAC. The tenant rent will not exceed 30% of the household adjusted gross income with PBV.
Policy Considerations: The recommended actions are consistent with a) SHRA’s approved Multifamily Lending and Mortgage Revenue Bond Policies, adopted on December 3, 2019 b) the 2021-2029 Housing Element, which encourages the provision of a variety of quality housing types to encourage neighborhood stability, including options for extremely low-income households (Resolution No. 2021-0259); c) the Sacramento Promise Zone Plans and Goals, Sustainably Built Community sub-goal to increase housing types and transit growth to promote livability and connectivity within the Promise Zone (Resolution No. 2015-263); d) the Downtown Housing Initiative and Initiation of the Downtown Specific Plan, to bring 10,000 places to live to Downtown Sacramento by year 2025 (Resolution No. 2015-282); e) the 2007 Asset Repositioning Strategy of the City and County Housing Authorities; f) the 2013-2019 Consolidated Plan; and g) the River District Specific Plan adopted February 15, 2011.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on February 24, 2022, in compliance with the City Code.
Economic Impacts: This multifamily residential project is expected to create 521 total jobs (292.49 direct jobs and 228.51 jobs through indirect and induced activities) and create $45,701,526 in total economic output ($28,086,239 of direct output and another $17,615,287 of output through indirect and induced activities). The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.
File ID: 2022-00329 Public Hearing Item 01
March 8, 2022
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City of Sacramento
Environmental Considerations:
California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA): A combined Initial Study/Environmental Assessment (IS/EA) was prepared for the Mirasol Village (formerly Twin Rivers) Transit Oriented Development and Light Rail Station Project pursuant to CEQA requirements under 14 California Code of Regulations (CCR) §15070, and NEPA requirements under 24 Code of Federal Regulations (CFR) §58.36. The Mitigated Negative Declaration (MND) and associated Mitigation Monitoring and Reporting Program (MMRP) were adopted and a Notice of Determination (NOD) was issued pursuant to CEQA and a Finding of No Significant Impact (FONSI) was prepared pursuant to NEPA. The requested action requires no further environmental review.
Sustainability: The Project has been reviewed for consistency with the goals, policies, and targets of the 2035 General Plan. If approved, the Project will advance the following goals, policies, and targets that will directly or indirectly conserve energy resources and reduce greenhouse gas emissions, in part, from the 2035 General Plan: a) Housing Element - Strategies and Policies for Conserving Energy Resources - Climate Action Plan, subsection 7.2: improving the energy efficiency in new buildings; and b) Environmental Resources - Air Quality and Climate Change sub-section 6.1.7: reduce greenhouse gas emissions from new development, promoting water conservation and recycling, promoting development that is compact, mixed use, pedestrian friendly, and transit oriented; and promoting energy-efficient building design and site planning.
Commission Action: Sacramento Housing and Redevelopment Commission: It is anticipated that at its March 2, 2022 meeting, the Sacramento Housing and Redevelopment Commission will approve the staff recommendation for this item. Staff will notify the Council in the event this does not occur.
Rationale for Recommendation: The actions recommended in this report enable SHRA to continue to fulfill its mission to provide a range of affordable housing opportunities in the City and are consistent with SHRA’s approved Multifamily Lending and Mortgage Revenue Bond Policies, the City of Sacramento’s 2021-2029 Housing Element, Promise Zone Plans and Goals, Downtown Housing Initiative and Initiation, Asset Repositioning Strategy, Consolidated Plan and the River District Specific Plan.
Financial Considerations: The SHRA, Housing Authority and HACOS loans will be used for the acquisition, construction and permanent financing of the Project. The ARPA, CNI, PLHA, MIHF, HTF, HOPWA and HAF loans will have a 3% simple interest rate and 57-year term. The capitalized ground lease loan will have an Applicable Federal Rate and 57-year term.
File ID: 2022-00329 Public Hearing Item 01
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SHRA will receive a one-time issuance fee of 0.25 percent of the bond amount, which is payable at bond closing, and annual payment for monitoring the regulatory restrictions and administration of the bonds in the amount of 0.125 percent of the bond amount. SHRA will also receive a $100 annual administrative fee for each assisted unit. The total administrative fee will not exceed $25,000 annually for the affordable units during the 55-year regulatory term. The Developer will be responsible for payment of all costs and fees relating to the bonds. Mortgage revenue bonds do not represent a financial obligation of SHRA, Housing Authority, or City of Sacramento.
Local Business Enterprise (LBE)/Minority and Women’s Business Enterprise (MBE/WBE): Minority and Women’s Business Enterprise will be applied as required by federal requirements to maintain that federal funding. Section 3 requirements will be applied as required by federal regulations and the SHRA Economic Opportunity Plan. Developer and General Contractor will work with the Sacramento Employment and Training Agency, the Greater Sacramento Urban League, or similar programs, for employment opportunities and program requirements.
RESOLUTION NO. 2022-____
Adopted by the Sacramento City Council
MIRASOL VILLAGE BLOCK D: APPROVAL OF THE ISSUANCE OF
OBLIGATIONS BY THE HOUSING AUTHORITY OF THE CITY OF
SACRAMENTO ON BEHALF OF TWIN RIVERS PHASE 4, L.P.
BACKGROUND
A. The Housing Authority of the City of Sacramento, a housing authority organized and existing under the laws of the State of California (the "Authority”), proposes a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $38,000,000 (the “Obligations”) and to lend the proceeds thereof to Twin Rivers Phase 4, L. P. or a partnership of which McCormack Baron Salazar, Inc. (the “Developer”) or a related person to the Developer is the general partner , to be used to provide funds to finance or refinance the acquisition, construction and development of a multifamily housing residential facility to be located at 475 Pipevine Street, in the City of Sacramento, California;
B. Section 147(f) of the Code requires the execution and delivery of the Obligations to be approved by the City Council of the City (the "City Council"), as the elected representative of the City of Sacramento and the host jurisdiction of the subject multifamily housing residential facility, after a public hearing has been held following reasonable and proper notice;
C. A public hearing was held by the City C ouncil on March 8, 2022, following duly published notice thereof, and all persons desiring to be heard have been heard;
D. It is in the public interest and for the public benefit that the City Council, as the elected representative of the City of Sacramento and the host jurisdiction of the subject multifamily housing residential facility, approve the execution and delivery by the Authority of the Obligations;
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council of the City of Sacramento hereby finds, determines and declares that issuance by the Authority of the Obligations in the maximum principal amount of $38,000,000 for the purposes described above is hereby approved.
Section 2. This resolution shall take effect immediately upon its adoption.
RESOLUTION NO. 2022 -
Adopted by the Sacramento City Council
on date of
MIRASOL VILLAGE BLOCK D (PROJECT): AUTHORIZATION TO AMEND THE
SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY (SHRA) BUDGET AND ALLOCATE UP TO $7 MILLION COMPRISED OF $3.3 MILLION IN PERMANENT LOCAL HOUSING ALLOCATION (PLHA) FUNDS, $1.4 MILLION IN MIXED INCOME HOUSING FUNDS (MIHF), $1.4 MILLION IN HOUSING TRUST FUNDS (HTF) AND $900,000 IN HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) FUNDS TO THE PROJECT; APPROVAL TO EXECUTE LOAN
COMMITMENT, FUNDING AGREEMENT AND RELATED DOCUMENTS WITH TWIN RIVERS PHASE 4 L.P. (MCCORMACK BARON SALAZAR) OR RELATED ENTITY (DEVELOPER); DESIGNATE THE HOUSING AUTHORITY OF THE COUNTY OF
SACRAMENTO TO EXECUTE FUNDING AGREEMENT AND RELATED
DOCUMENTS WITH THE DEVELOPER, AND ENVIRONMENTAL FINDINGS
BACKGROUND
A. In 2015, the Housing Authority of the County of Sacramento (HACOS) and the City of Sacramento (City) were, as co -grantees, awarded a $30 million Choice Neighborhoods Implementation Grant from the US Department of Housing and Urban Development (HUD) for the Twin Rivers Transit Oriented Development and Light Rail Station project (Master Development).
B. On December 12, 2017, HACOS and City Council members approved the Master Development Agreement, which includes the Option to Lease (ground lease loans). SHRA is managing the Master Development and McCormack Baron Salazar is the master developer and Housing Lead (Developer). The Master Development is now known as Mirasol Village. The total project area incl udes six residential blocks and encompasses approximately 26 acres.
C. On March 16, 2021, City Council approved SHRA and the Developer to apply to the State of California Strategic Growth Council and Department of Housing and Community Development in fundin g Round 6 for an Affordable Housing and Sustainable Communities grant for up to $30 million, including up to $20 million for the affordable housing development and $10 million for the housing related infrastructure of the Project. Unfortunately, in January 2022, the Project was not awarded.
D. On December 7, 2021, HACOS and City Council approved the predevelopment loan agreement and construction/permanent loan commitment of up to $2 million in CNI funds for the financing of Mirasol Village Block D (Phase 4).
E. The Developer of the Project applied to SHRA requesting a not to exceed $38 million bond issuance from the Housing Authority and a $15 million gap loan from the City and County for the construction and permanent financing of the Project.
F. In a separate Housing Authority resolution, staff is recommending approval of up to $3 million in Housing Authority Funds for the purpose of construction and permanent financing of the Project.
G. On November 2, 2021, the Board of Supervisors (Board) adopted the American Rescue Plan Act (ARPA) Phase One Funding Allocation with Housing as a priority, and SHRA staff is recommending an appropriation of $5 million of ARPA funds for the construction and permanent financing of this Project. On March 8, 2022, it is anticipated th e Board will approve a $5 million loan commitment comprised of ARPA funds for the construction and permanent financing of the Project to fill the $15 million gap loan required.
H. On February 11, 2022, the Developer submitted a funding application to California Housing Finance Agency for $5 million in Mixed Income P rogram funds to assist with the construction and permanent financing of the Project.
I. Subject to all governing board approvals, the Housing Authority and Developer will apply to California Debt Limit Allocation Committee (CDLAC) for tax-exempt bonds and to California Tax Credit Allocation Committee (CTCAC) for four percent Low Income Housing Tax Credits (LIHTC) on March 16, 2022, with a goal to close financing in fall 2022 and complete construction by the fall of 2024.
J. The recommended actions are consistent with a) SHRA’s approved Multifamily Lending and Mortgage Revenue Bond Policies, adopted on December 3, 2019 b) the 2021-2029 Housing Element, which encourages the provision of a variety of quality housing types to encourage neighborhood stability, including options for extremely low-income households (Resolution No. 2021-0259); c) the Sacramento Promise Zone Plans and Goals, Sustainably Built Community sub-goal to increase housing types and transit growth to promote livability and connectivity within the Promise Zone (Resolution No. 2015-263); d) the Downtown Housing Initiative and Initiation of the Downtown Specific Plan, to bring 10,000 places to live to Downtown Sacramento by year 2025 (R esolution No. 2015 -282); e) the 2007 Asset Repositioning Strategy of the City and County Housing Authorities; f) the 2013 - 2024 Consolidated Plan (Resolution No. 2019 -0408), 2020 Action Plan (Resolution No. 2019 -0408), and 2021 Action Plan (Resolution No. 2 020-0350); and g) the River District Specific Plan adopted February 15, 2011.
K. A combined Initial Study/Environmental Assessment (IS/EA) was prepared for the Mirasol Village (formerly Twin Rivers) Transit Oriented Development and Light Rail Station Project pursuant to California Environmental Quality Act (CEQA) requirements under 14 California Code of Regulations (CCR) §15070, and National Environmental Policy Act (NEPA) requirements under 24 Code of Federal Regulations (CFR) §58.36. The Mitigated Negative Declaration (MND) and associated Mitigation Monitoring and Reporting Program (MMRP) were adopted and a Notice of Determination (NOD) was issued pursuant to CEQA and a Finding of No Significant Impact (FONSI) was prepared pursuant to NEPA. The requested action requires no further environmental review.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. All evidence presented having been duly considered, the findings, including environmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved adopted.
Section 2. SHRA is authorized to amend its budg et to allocate up to $7 million comprised of $3.3 million in PLHA funds, $1.4 million in MIHF, $1.4 million in HTF and $900,000 in HOPWA funds for the purpose of construction and permanent financing of the Project.
Section 3. The Conditional Loan Commitme nt attached hereto as Exhibit A for the purpose of construction and perm anent financing of the Project with up to $7 million comprised of PLHA, MIHF, HTF AND HOPWA program funds (Commitment) is approved, and SHRA is authorized to execute and transmit the Commitment to Twin Rivers Phase 4, L.P. (McCormack Baron Salazar) or related entity (Developer) for the Project.
Section 4. SHRA is authorized to negotiate, enter into, execute and amend from time to time a funding agreement comprised of up to $7 million in PLHA, MIHF, HTF and HOPWA funds and related documents for the construction and permanent financing of the Project with the Developer and execute other documents, as approved to form by its Office of the General Counsel (Counsel), and perform other actions required for the PLHA, MIHF, HTF and HOPWA program funds, including without limitation, negotiation, subordination, regulatory agreements, financial restructuring, and extensions, consistent with its adopted policy and with this resolution.
Section 5. HACOS is the designated authority to negotiate, enter into , execute and amend from time to time a funding agreement comprised of up to $2 million in CNI funds and related documents for the construction and permanent financing of the Project with the Developer and execute other documents, as approved to form by its Counsel, and perform other actions required for the CNI program funds, including without limitation , negotiation, subordination, regulatory agreements, financial restructuring, and extensions, consistent with its adopted policy and with this resolution.
Section 6. SHRA finds that an economically feasible alternative method of financing on substantially comparable terms and conditions, without subordination is not available. Therefore, SHRA is authorized to subordinate the PLHA, MIHF, HTF AND HOPWA loans to the senior loans.
Section 7. This resolution shall take effect immediately upon its adoption.
Table of Contents:
Exhibit A: Conditional Loan Commitment (PLHA, MIHF, HTF and HOPWA)
Ex
hibit A
March 8, 2022
Dan Falcon, Managing Director
720 Olive Street, Suite 2500
St. Louis, Missouri 63101
Re: Conditional Loan Commitment for Mirasol Village Block D (Phase 4)
Dear Mr. Falcon:
On behalf of the Sacramento Housing and Redevelopment Agency (SHRA), Housing Authority of the City of Sacramento (HACS) and Housing Authority of the County of Sacramento (HACOS), collectively “Agency,” we are pleased to advise you of its commitment of acquisition, construction and permanent loan funds (Loan) in an amount not to exceed $17,468,000 in program funds described in the chart below for the purpose of financing the development of that certain real property known as Mirasol Village Block D (Phase 4) (Project) located 1381 Swallowtail Ave, Sacramento, California (Property) (Commitment).
LOAN FUNDING PROGRAMS NOT TO EXCEED
LOAN AMOUNTS
SHRA County American Rescue Plan Act (ARPA) Loan $ 5,000,000.00 SHRA City Permanent Local Housing Allocation (PLHA) Loan $ 3,300,000.00 HACS Housing Authority Funds (HAF) Loan $ 3,000,000.00 HACOS Choice Neighborhoods Implementation (CNI) Loan $ 2,000,000.00 SHRA Mixed Income Housing Funds (MIHF) Loan $ 1,400,000.00 SHRA City Housing Trust Funds (HTF) Loan $ 1,400,000.00 SHRA Housing Opportunities for Persons With AIDS (HOPWA) Loan $ 900,000.00 HACOS Ground Lease Loan (90% of the current appraised value of the land) $ 468,000.00 TOTAL LOANS $ 17,468,000.00
The Agency's decision is based on representations and information supplied by McCormack Baron Salazar, Inc. in its capacity as Housing Lead and Master Developer. If these representations and information change in a material manner without written approval of the Agency, this Commitment is void. Agency's obligation to make the Loan is subject to the satisfaction of all the following terms and conditions and Borrower's execution of documentation that is in a form and in substance satisfactory to the Agency. This Commitment supersedes previous loan commitments associated with CNI and ground lease loans.
The Loan shall be made on standard Agency loan documents. Loan terms not included in this funding commitment shall be included in the final loan documents without additional environmental review and governing board approval. In the event of any discrepancies between terms stated in this commitment and the loan documents, the terms stated in the loan commitment letter shall be deemed to be terms of this commitment.
Unless otherwise agreed in writing by the Agency in exercise of its absolute discretion, the following shall be considered conditions to Agency approval of a financing commitment. The Agency may, in exercise of its absolute discretion, modify its requirements upon written notice to Borrower given at least sixty (60) days prior to close of escrow for the Property.
This Commitment will expire September 30, 2023, or extended upon mutual agreement.
1. PROJECT DESCRIPTION: Twin Rivers (Mirasol Village) Phase 4 is a new construction, mixed-income housing development. The Project is the third phase of development for the multi- phased, Twin Rivers public housing redevelopment project. The Project will consist of a total of five residential buildings that will include a minimum of 116 rental housing units. The housing units will be 1-4 bedrooms in size and include a minimum of 47 replacement housing units in accordance with the HUD-approved replacement housing plan for the Project. The Project will also contain several outdoor amenities including tot lots, barbeque areas, and bike or car share.
2. BORROWER: The name of the Borrower for the Loan is Twin Rivers Phase 4, L.P., a California limited partnership with McCormack Baron Salazar, Inc., or related entity as the lead development partner.
3. PURPOSE OF LOAN: The Loan is to be used by Borrower solely to pay the costs of acquisition, construction and permanent financing of the Project and for such other purposes as Agency expressly agrees to in the loan agreement for the Loan, as well as in such other agreements as may be generally required by the Agency for the use of the funding source for the Loan.
4. PRINCIPAL AMOUNT: The principal amount of the Loan will be a maximum of Seventeen Million Four Hundred Sixty-Eight Thousand Dollars and No Cents ($17,468,000.00) or such lesser amount as may be needed and as determined by Borrower and approved by Agency prior to close of the Loan.
5. TERM OF LOAN: The Loan shall mature up to 57 years or 684 months from the date of closing construction financing, at which point any and all unpaid principal and interest on the loan will be due and payable. Final maturity date will be determined by impact of terms and conditions of other sources of financing approved for the Project.
6. INTEREST RATE: The Loan will bear simple interest at three percent (3%) per annum. Interest shall be calculated on a 365-day year, actual days elapsed basis. With the exception of the Ground Lease Loan, which will be the Applicable Federal Rate.
7. ANNUAL REPAYMENT: Annual principal and interest payments shall be made according to the structured payment schedule contained in the final Loan Agreement and as calculated to achieve a minimum annual debt service coverage ratio of 1.2:1. Payments shall be applied first to outstanding interest accrued and unpaid and then to principal. All outstanding principal and interest is due and payable on the maturity date. Notwithstanding the preceding payment schedule, no payments shall be required on this Loan until the full balance of principal and interest on the proposed capitalized ground lease made by the Housing Authority of the County of Sacramento to Borrower pursuant to the Master Development Agreement is paid in full.
8. SOURCE OF LOAN FUNDS:
Agency is making the Loan from the ARPA, PLHA, HAF, CNI, HTF and HOPWA funding programs and ground lease, and is subject to all of the requirements related to the use of these funds, whether Agency requirements or otherwise. This Loan is conditioned upon Borrower’s acceptance of Agency requirements and conditions related to its lending programs and funding sources, including among others the required forms of agreements for the Loan; the requirements for covenants, conditions and restrictions upon the Property; and insurance and indemnity requirements.
Borrower acknowledges that, as a condition of the Agency’s making of the Loan, the Property will be subject to restrictions on future sales and rentals which may result in less income to Borrower than could otherwise be realized, and that such restrictions run with the land, and during their operational term, will bind all successors in interest.
___________ (Borrower Initial)
9. ACCELERATION: Agency shall have the right to accelerate repayment of the Loan in the event of a default under any Loan Document or upon sale, transfer or alienation of the Property except as specifically provided for in the Loan documents.
10. SECURITY: The Loan shall be evidenced by promissory note(s) secured by a deed of trust with assignment of rents against the fee and/or leasehold interest in the Property and Improvements, which shall be a lien upon the Property and Improvements subject only to additional liens senior to the Agency’s lien securing loans needed for the Project and such other liens or items as the Agency may approve in writing prior to close. The Loan shall also be secured by security agreements where required. The Agency may agree to subordinate said deed of trust in order to accommodate completion of construction of the Project.
11. LEASE AND RENTAL SCHEDULE: All leases of the Property and Improvements shall be subject to Agency review and approval prior to execution. Borrower shall not deviate from the rental schedule presented in Borrower's application for the Loan without Agency's prior written approval provided, however, that such approval shall not be required for annual adjustments to rental rates as permitted by the California Tax Credit Allocation Committee.
12. PROOF OF EQUITY: Borrower shall provide proof of equity for the Property and Improvements in the amount of no less than stated in Borrower’s request for the Loan. Proof of equity will generally be in the form of verified low income housing tax credit equity and deferred developer fee. If the final equity contribution is less than that as anticipated, the difference in equity must be offset by an increase in the deferred developer fee.
13. OTHER FINANCING: Borrower, as a requirement of the Loan, shall procure and deliver to Agency evidence satisfactory to Agency that Borrower has obtained the following described financing which may be secured by a lien upon the Property and Improvements superior or subordinate to Agency's liens, and which shall be otherwise on terms and conditions acceptable to Agency:
(a) As a condition precedent to disbursement of the Agency loan, construction financing from private lender(s) in an amount(s) sufficient to complete construction of the Project according to a Scope of Work as approved by Agency (Construction Financing). The term of Construction Financing must not be less than that specified in the Schedule of Performances for completion of construction and in any event not less than the time necessary to fulfill all conditions precedent to funding of the permanent financing. (b) Commitments for permanent financing sufficient to “take out” all Construction Financing liens senior to the Agency’s lien.
(c) Such commitments for construction and permanent financing shall not require modification of Agency loan documents, or any term of this commitment letter. (d) Such commitments shall not be based upon sources and uses of Project funds that are different from those approved by Agency for the project or be subject to conditions which require amendment of Agency documents or other agreements.
14. EVIDENCE OF FUNDS: Prior to the first disbursement of the Loan, Borrower must demonstrate evidence of adequate and assured funding to complete the development of the Project in accordance with the Agency's requirements. Borrower's evidence of available funds must include only one or more of the following: a) Borrower equity; b) firm and binding commitments for the Project from financial institution(s) or from other lender(s) approved by Agency in its absolute discretion; and c) Agency’s contribution, provided, however, that Agency is not obligated by this letter to make any contribution not stated in the terms of the letter.
15. SOILS AND TOXIC REPORTS: Borrower will submit to the Agency a hazardous substances report made in accordance with the American Society for Testing and Materials "Standard Practice for Environmental Site Assessments; Phase I Environmental Site Assessment Process" (Designation E1527-13) prepared by a licensed or registered environmental engineer or other qualified party prior to Loan closing. Borrower must, as a condition of disbursement of Loan funds, give assurances satisfactory to the Agency that hazardous materials are not present on the Property or that any hazardous materials on the Property will be remediated and that no further remediation is then required by the environmental agency having responsibility for monitoring such remediation.
16. LOAN IN BALANCE: Borrower will be required to maintain the Loan "in balance" at all times.
The Loan is "in balance" whenever the amount of the undisbursed Loan funds, the remaining sums to be provided by the Borrower and the loan funds from other project lenders or the equity investor are sufficient, in the sole judgement of the Agency, to pay for the remainder of the work to be done on the project as required by written agreement with the Agency. Should the Agency determine that the Loan is not "in balance" the Agency may declare the Loan to be in default.
17. PLANS AND SPECIFICATION: Final plans and specifications, if any, for the project must be in accord with the approved proposal. Final plans and specifications will be subject to Agency's final approval prior to the disbursal of Agency Loan funds. Borrower must obtain Agency's prior written consent to any change in the approved plans and specifications or any material deviation in construction of the project. The final plans shall incorporate all related mitigation measures as required in the Mitigation Monitoring and Reporting Program of Twin Rivers (Mirasol Village) Transit Oriented Development and Light Rail Station Project as may applicable to Twin Rivers (Mirasol Village) Phase 4, environmental conditions required, if any, for compliance with approvals under CEQA, and/or NEPA, or the U.S. Department of Housing and Urban Development as conditions of approval of the project.
18. ARCHITECTURAL AGREEMENT: The architectural agreement (Agreement), if any, for the preparation of the plans and specifications and other services shall be subject to Agency's approval. Agency may require an assignment of Borrower's interest in and to the Agreement as security for the Loan.
19. CONSTRUCTION CONTRACT: The construction contract (Contract), if any, and any change orders issued thereunder, and the contractor (Contractor) to be retained by Borrower to construct the Improvements shall be subject to Agency's approval. Agency may require an assignment of Borrower's interest in and to the Contract as security for the Loan. Agency may require Contractor to provide a performance and payment bond in a form acceptable to Agency for the amount of the Contract.
20. RETENTION AMOUNT: The Agency shall retain ten percent (10.0%) of each construction disbursement as retention, not to exceed a total of ten percent (10.0%) of the total amount of the Loan.
21. COST BREAKDOWN: Borrower shall deliver to Agency for Agency's approval prior to commencement of work a detailed cost breakdown of the cost of constructing, financing and other costs of developing the Project, which breakdown conforms to the project plans and specification and the approved budget for the Project. Borrower shall also deliver a list of all contractors and subcontractors to be employed in connection with the construction of the Improvements. If required by the Agency, Borrower shall also submit copies of all bids received for each item of work to be performed as well as copies of executed contracts and subcontracts with acceptable bidders.
All contracts, subcontracts, contractors, and subcontractors shall be subject to Agency's approval prior to close of the Loan. Agency also reserves the right to require performance and material payment bonds on any or all contractors, or in lieu of bond a letter of credit acceptable to Agency.
Agency shall make disbursements of the Loan based on a cost breakdown that lists line items in cost categories. Agency shall require that Borrower provide documentation supporting all requests for disbursement of Loan funds, including proof of work done and actual expenditure.
Agency shall conduct inspections of the Property to assure that the work was done before making a disbursement.
22. COST SAVINGS: At completion of construction, Borrower shall submit to Agency a cost certification prepared by a qualified, independent auditor acceptable to Agency which shall indicate the amounts actually spent for each item in the cost breakdown and shall indicate the final sources of funding. If there is an aggregate savings, in the total of all such cost breakdown items from the cost breakdown items in the original budget approved by the Agency, after adjusting for any decrease in any funding source including any loss of any equity investment due to an adjustment in the allowable tax credits, the Agency shall withhold for itself fifty percent (50%) of such savings from the amount of retention then held by the Agency and the Loan balance shall be reduced by the amount so withheld. The Agency, in its sole discretion, shall determine any reduction and/or repayment of the Agency loan based upon this cost certification and the original approved budget for the project.
23. START OF CONSTRUCTION: Borrower shall commence construction at the earliest possible date subject to the conditions of this Agency and other involved lenders, but no later than sixty (60) days following the close of construction financing.
24. COMPLETION OF CONSTRUCTION: Borrower shall complete the construction of the Improvements no later than 24 months following the close of construction financing.
25. SECURITY CAMERAS AND OUTSIDE LIGHTING: Project shall include installation of a security camera system, exterior lighting, and security patrols, all as approved by the Agency.
26. INSURANCE PROVIDER: Each policy of insurance required under the Loan shall be obtained from a provider licensed to do business in California and having a current Best's Insurance Guide rating of A VII, which rating has been substantially the same or increasing for the last five (5) years, or such other equivalent rating, as may reasonably be approved by Lender's legal counsel.
27. HAZARD INSURANCE: Borrower shall procure and maintain fire and extended coverage insurance and during construction Builder's Risk completed value insurance in a form and substance approved by Agency. Coverage shall be for protection against loss of, or damage to the Improvements or materials for their construction to their full insurable value. Borrower shall also procure and maintain insurance against specific hazards affecting Agency's security for the Loan as may be required by Agency, governmental regulations, or any permanent lender. All such policies shall contain a standard mortgagee loss payable clause in favor of Agency. The insurance required shall be written with a deductible of not more than TEN THOUSAND DOLLARS ($10,000.00).
28. PUBLIC LIABILITY AND OTHER INSURANCE: Borrower must procure and maintain public liability and property damage insurance (with Agency named as additional insured) in a form approved by Agency. Coverage must be approved by Agency and must be in at least the following limits of liability: (1) Commercial General Liability insurance in Insurance Services Office (ISO) policy form CG 00 01 Commercial General Liability (Occurrence) or better with limits of liability, which are not less than $1,000,000, per occurrence limit; $5,000,000 general aggregate limit, and $5,000,000 products and completed operations aggregate limit, all per location of the Project; (2) Property damage liability of $1,000,000 each occurrence, $1,000,000 single limit and $1,000,000 aggregate; (3) Contractual liability for Bodily Injury of $1,000,000 each occurrence, for Property Damage of $1,000,000 each occurrence and $1,000,000 aggregate, and Personal Injury with Employment Exclusion Deleted of $1,000,000 aggregate; and (4) Comprehensive Automobile Liability for any vehicle used for or in connection with the Work of $1,000,000. The insurance required shall be written with a deductible of not more than TEN THOUSAND DOLLARS ($10,000). Borrower must also procure and maintain workers' compensation and all other insurance required under applicable law, as required by law and as approved by Agency.
29. TITLE INSURANCE: Borrower must procure and deliver to Agency an ALTA Lender's Policy of Title Insurance, together with such endorsements as Agency may require, including but not limited to CLTA endorsement nos. 100, 116, and 102.5/102.7 insuring Agency in an amount equal to the principal amount of the Loan, that Agency's Deed of Trust constitutes a third lien or charge upon the Property and Improvements subject only to such items as shall have been approved by Agency. There must be no exceptions permitted for mechanic’s liens. Title insurance for the Loan must be issued by a title insurer approved by Agency.
30. ORGANIZATIONAL AGREEMENTS: Borrower must submit to Agency certified copies of all of Borrower’s organizational documents, including all amendments, modifications or terminations: if a corporation, Borrower's Articles of Incorporation and By-Laws; if a partnership, its Partnership Agreement and, as applicable, Certificate of Limited Partnership or Statement of Partnership; if a Limited Liability Company, its Articles of Organization and its Operating Agreement; and in all cases with all exhibits and amendments to such documents, fictitious business name statements, other related filings or recorded documents and such related documents as Agency may request. If it is a corporation, Borrower must submit a corporate borrowing resolution referencing this Loan. If Borrower is other than a corporation, Borrower must submit such proof of authority to enter this Loan as may be required under the organizational documents.
31. PURCHASE OR LEASE OF PROPERTY: Borrower shall provide Agency with copies of all documents relating to Borrower's ownership interest in the Property.
32. FINANCIAL INFORMATION: During the term of the Loan, Borrower shall deliver to Agency within 120 days of the end of each fiscal year an audited income and expense statement, a balance sheet, and a statement of all changes in financial position signed by authorized officers of Borrower. Prior to close of the Loan and during its term, Borrower must deliver to Agency such additional financial information as may be requested by Agency. Agency reserves the right to review and approve financial statements and other credit information and references prior to closing. During the term of the Loan, Borrower must deliver to Agency a monthly rent-roll including household composition information and operating statements with respect to the Property management, as Agency may request.
33. MANAGEMENT AGREEMENT: Prior to execution, Borrower must submit to Agency any agreement providing for the management or operation of the Property or Improvements by a third party which agreement is subject to Agency Approval.
34. RESIDENT SERVICES AGREEMENT: Prior to execution, Borrower must submit to Agency an agreement providing for the resident services by a third party which agreement is subject to Agency Approval. The agreement must include on-site resident services according to the following minimum schedule of twenty (20) hours per week:
a. Coordinator: Six (6) hours per week (maximum)
b. After School Programming: Eight (8) hours per week (two hours per day and four days per week, minimum)
c. Additional Pr ogramming: Balance of minimum six (6) hours per week shall include, but are not limited to:
i. Workforce development support and activities.
ii. Education classes such as nutrition, exercise, health resources, health insurance application assistance, Annual onsite health fair and ESL classes. iii. Socialization activities such as bingo, gardening and community building events. iv. Other services such as transportation assistance, counseling assistance and employee readiness and job search assistance.
35. LOW INCOME HOUSING TAX CREDITS (LIHTC): Borrower represents that as a condition of closing this Loan it is applying for an allocation of LIHTC’s and agrees to perform all actions and meet all requirements to maintain the LIHTC allocation if granted.
36. SMOKE-FREE ENVIRONMENT: 100% of the buildings and units must be smoke free (including all forms of smoking that create secondhand smoke that impacts the health of nonsmokers). In addition, all indoor common areas must be smoke-free. Clearly-marked designated smoking areas must be provided.
37. DOCUMENTATION: This letter is not intended to describe all of the requirements, terms, conditions and documents for the Loan, which shall also include customary provisions and documents for an Agency transaction of this type. All documents to be delivered to or approved by Agency must be satisfactory to Agency in all respects. Borrower must promptly deliver to Agency any further documentation that may be required by Agency.
38. CONSISTENCY OF DOCUMENTS: As a material obligation under this commitment letter, Borrower shall assure that the loan documents for the Project are consistent with lender's commitment approved by the Agency and comply with same.
39. CHANGES OR AMENDMENTS: No documents or contracts which are to be delivered to Agency or are subject to Agency's review or approval shall be modified or terminated without the prior written approval of Agency.
40. ACCEPTANCE OF THIS COMMITMENT: Borrower’s acceptance of this Commitment shall be evidenced by signing and delivering to Agency the enclosed copy of this letter. Until receipt of such acceptance by Agency, Agency shall have no obligation under this letter. Agency may withdraw this commitment at any time prior to Borrower’s acceptance.
Sincerely,
_________________________________
La Shelle Dozier, Executive Director
The undersigned acknowledges and accepts the foregoing Commitment and its terms and conditions.
BORROWER:
Twin Rivers Phase 4 L.P., a California limited partnership By: Twin Rivers Phase 4 MBS GP, Inc., a California corporation
By: _________________________________
Daniel Falcon, Managing Director
Attachment:
Exhibit 1 - Scope of Development and Rental Property Minimum Construction Standards
Exhibit 1: Mirasol Village Block D – Scope of Development
Project Summary: Mirasol Village Block D is composed of four three-story garden-style walk- ups, and one four-story building serviced by elevators. There is a total of 5 buildings in the phase and 58 on-grade parking spaces.
Mirasol Village Block D is the fourth phase of a master plan, mixed-income housing development located at 475 Pipevine Street. The proposed development will replace the existing public housing development in this area, and the final project development will include 427 apartment units, with 116 units in this phase. All off-site infrastructure and the adjacent right - of-way improvements will be constructed under a separate contract. The project will be designed to secure a Green Point Rated Certification. The development will be a vibrant new addition to the neighborhood and help encourage future improvements and development.
Additional master plan site amenities include property management offices for the entire community, resident community space / community room, a fitness center for residents, a business center with Wi-Fi, computers and printers, a swimming pool and a barbeque area. All buildings are slab on grade wood frame construction with entrances and windows overlooking streets. Putting eyes on the street are part of a safe design strategy. Parking spaces are located behind buildings and there is additional open space for resident amenities, including playgrounds and the feeling of private green space. The buildings will be built to the latest TCAC Sustainable Building Methods standards.
A. Site:
1. New construction of 5 new buildings: 4 three-story garden-style apartments and 1 four - story apartment building. All the buildings will be Type V wood construction, with some concrete and/or steel at the ground-level of the four-story buildings.
2. All adjacent streets will be in place prior to completion of Block D and are under a separate contract.
3. There will be an accessible path of travel into each building, the parking area, and all common area amenity spaces.
4. The parking lot shall be constructed by a combination of pervious concrete paving at the parking spaces and asphalt paving at the drive aisles. The parking lot shall be striped completely, identifying all parking spaces, ADA spaces, pedestrian pathways, and other potential hazards. Bicycle parking will be available.
5. Site amenities will include a school-age appropriate playground and landscaped area with picnic tables and benches.
6. The site will have pervious pavement and on-site drainage retention to accommodate all site drainage requirements in addition to all of the adjacent ROW.
7. New vehicular driveways access to the surface parking lots will be constructed as part of the infrastructure contract.
8. New landscaping throughout the project, including both along the new and existing streets and internally within the block. The landscaping and street design will serve to create a walkable neighborhood that encourages physical activity. Drought tolerant trees will be included and a smart controller with a drop system will be used for irrigation.
9. The entire site will have a decorative 6ft tall, wrought iron picket fence off -set well beyond the property line, towards the back of the buildings. The goal is to secure the site
without the feel of being fenced in.
10. The fence will have several pedestrian and vehicular access points throughout the site with access control. Only residents will have access to parking within the site, all visitors will park on the street.
11. Each building will have controlled access as will each of the common area amenity spaces.
12. Web-based CCTV will be provided with cameras covering primary ingress/egress points to the site; principal parking areas; and indoor/outdoor common areas. Site lighting shall be provided at all parking and outside public spaces and shall be of LED or simil arly energy efficient type.
13. A minimum of one trash enclosure will be provided at each Block D. Trash enclosures will be constructed out of concrete block and metal gates with a concrete apron in front.
They will include separate recycling and trash receptacles within the same enclosure.
The trash enclosure will be completely accessible.
14. There will also be some shading elements on the residential buildings and outdoor amenity areas.
15. There will be mailboxes located on Block D for its respective residents.
B. Building Exteriors:
The exterior building materials will be a combination of stucco and fiber cement siding.
C. Parking:
Block D will include a surface parking lot at the interior of the parcel, with approximately 58 spaces. Each lot will have required accessible parking as well as the infrastructure for electrical vehicle charging and outdoor bicycle parking.
D. Tenant Units:
BDRM Size Type Number of Units
One Elevator 16
One Walkup 12
Two Elevator 44
Three Elevator 24
Three Walkup 8
Four Walkup 12
TOTAL 116
1. Appliances: All units will be equipped with a washer/dryer. All kitchens shall have refrigerator/freezer, dishwashers, stove/oven, and micro- hoods in non- accessible units and microwave shelves built into lower cabinets in ADA units. All appliances will be Energy Star, where applicable. Each unit will have garbage disposals.
2. Electrical: All units will have smoke/carbon monoxide detectors installed per current
code.
3. Doors: All exterior doors shall have deadbolt locks, keyed latch assemblies and viewers.
The tenant units’ entry doors shall have single action hardware to release deadbolt and latch assembly.
4. Windows: New dual -paned (at a minimum) window with screens will be installed throughout. Window coverings will be provided on all windows.
5. Flooring: All units will have Luxury Vinyl Plank (LVP) throughout with a minimum wear layer of 12 mils. Bathrooms will be sheet vinyl. All common areas will be LVP.
6. Cabinets, Counters: All kitchen and bathroom cabinets will have plywood boxes with solid face frames, doors, and drawer faces. All kitchens and bathrooms will have solid surface countertops.
7. Lighting: Units will have new LED lighting throughout.
8. Finishes: All unit interiors will have level 4 drywall finish.
9. Plumbing Fixtures: Bathrooms shall have low-flow, water-efficient fixtures.
10. Bathrooms: Bathrooms shall be fully equipped with accessories including towel bars, toilet paper dispensers and mirrors. All countertops shall be solid surface. Tub surrounds will be of fiberglass.
11. Hallways: The hallways on the upper floors of the 4-story building and garden-style buildings will be Luxury Vinyl Tile (LVT).
12. Accessible Units: There will be the TCAC-required number of fully accessible units and audio/visual accessible units.
E. Community Areas:
1. On-site Management: On-site Property Management will be located on Block A.
2. Community/Management Spaces: There will be approximately 1,800SF of common area space for residents to enjoy. Additional community space, including club house, multipurpose rooms, gym and swimming pool, will be located on Block A.
3. Resident Services: Resident Services will be located on Block A.
4. Elevators and Stairs: The four -story buildings will have an elevator and enclosed stairways. Each of the three -story walk-up buildings will have an internal stair serving all three floors. Stairways will include closed risers and non-slip concrete finish or other slip-resistant material on the treads.
Attachment 1: Rental Property Minimum Construction Standards are on the following page.
Attachment 1: Lender’s Minimum Construction Standards
This attachment is from Exhibit 2 from the Lender’s Multifamily Lending and Mortgage Revenue Bond Policies.
RENTAL PROPERTY MINIMUM CONSTRUCTION STANDARDS
The following is a list of the required minimum construction standards that must be incorporated into projects participating in SHRA’s Multifamily Financing and/or Mortgage Revenue Bond programs. All rental units and sites associated with these projects must meet or exceed these standards. Exceptions to these standards may be made for properties subject to U.S. Department of Housing and Urban Development replacement reserve requirements that allow for renovation over time rather than at recapitalization (e.g., Rental Assistance Demonstration conversions for conventional public housing).
Note: For rehabilitation projects, all of the following standards shall apply. The non-rehabilitation sections below shall apply to new construction projects.
Useful Life Expectancy – Rehabilitation only
SHRA shall reference the current edition of FannieMae’s “Instructions for Performing a Multifamily Property Condition Assessment, Appendix F. Estimated Useful Life Tables” in determining the useful life for all building components and systems located within the project. A remaining useful life of 15 years or more is required for all building components and systems located within the approved complex. All items on the FannieMae tables with useful lives indicated to be less than 15 years shall be replaced.
General Requirements
A. All materials funded under this loan must be new unless previously approved. Recycled items must be approved in writing by SHRA prior to their use.
B. All work shall comply with Federal and State ADA accessibility requirements, as well as any other requirements stipulated by the funding source(s). When there are differences the stricter of the two shall apply.
The developer is responsible for notifying their architect and/or engineer of all funding sources used on the project. The architect and/or engineer must indicate these funding requirements in the project’s plans/scope.
C. All units shall be approved for occupancy by the local Building Department or any other Agency Having Jurisdiction (AHJ) at the conclusion of the work and prior to occupancy.
D. Web-based security cameras and the equipment to record events are required for primary ingress/egress points to and from the site and for the principal parking and indoor and outdoor common areas whe re people will be congregating.
E. Site lighting is required for all parking and outside public spaces, and shall be of LED or similarly energy efficient type. The lenses on the exterior lights shall be cleaned with all oxidation removed or replaced. Light poles shall be new or painted, and shall be structurally sound and stable.
F. The developer’s architect is responsible for providing an Operating Procedure Outline Sheet (OPOS) for window washing systems where applicable, per Cal-OSHA requirements.
G. SHRA encourages the use of energy and water-efficient systems wherever they may be incorporated into the project.
General Requirements – Rehabilitation only
A. Any component of the project which does or may present a health or safety hazard to the public or tenants shall be corrected to the satisfaction of the local Building Department or AHJ.
B. A clear pest inspection report will be required at the conclusion of the construction work for rehabilitation projects.
C. For all structures where disturbance of any hazardous materials (e.g. lead, asbestos, mold, etc.) will occur, a clearance report from an environmental consultant is required.
D. Projects deemed historically significant landmark by either the City of Sacramento or the National Register of Historic Places shall consult with the State Historic Preservation Officer (SHPO), and shall conform to the Secretary of the Interior Standards for the Treatment of Historic Properties.
Site Work
A. Trees and large shrubs must be trimmed, grass areas must be mowed, and all planter areas must be weed -free.
The landscape design shall incorporate a sustainable design appropriate for the Sacramento Valley. Vegetation that assists in minimizing crime and enhances public safety is preferred. Trees compromising building envelope materials (roofing, siding, windows, etc.) and/or structural integrity (including foundations) must be removed.
An arborist shall be consulted for an opinion on trees prior to major branch trimming, root cutting or tree removal. All trees, bushes and other plants that are to be removed shall have the root ball removed by grinding or by mechanical means. A landscape plan describing the above must be provided to SHRA for approval.
B. All landscaped areas must be served by a programmable automated irrigation system. The irri gation controller shall be a “Smart Controller” that senses rain to reduce water use. Irrigation shall be designed to use bubblers and other water saving measures. Irrigation must not spray on building. Sprinklers should minimize overspray that runs to storm drain drop inlets. Areas that show evidence of erosion of soil shall be landscaped to eliminate problems. The landscape plan must be approved by SHRA and applied.
C. For gated communities containing swinging vehicle gates, driveways shall be striped to show the area under the gate swings for safety purposes.
D. All projects shall contain trash enclosures with concrete aprons. Trash enclosures shall be made of cinder block or stucco. Trash enclosures shall be accessible to all tenants. Provisions for tenants with disabilities must be addressed in the project Scope of Development or the project plans.
E. All projects shall meet the parking requirements of the local Agency Having Jurisdiction (AHJ) over the project. "Grandfathered Projects" will need to show that they are in fact “Grandfathered” or otherwise exempted by the local AHJ. Otherwise, all projects shall meet the governing ADA requirements for parking.
F. A two percent (2%) slope shall be maintained for a distance of five feet from all structures and no st anding water shall remain on the site. Provide an on- site drainage system if necessary.
G. Stairways in common areas must include closed risers and non-slip concrete finish or other slip-resistant material on the treads.
H. Exterior mounted electrical, mechanical, and plumbing systems must be protected from vandalism.
I. For family projects of 50 or more units, a minimum of one school age-appropriate play structure is required. For family projects of 100 or more units, a minimum of one school age and one toddler-a ppropriate play structure is required.
Site Work – Rehabilitation only
A. All landscaping and irrigation systems must be in a well-maintained condition.
B. All fencing must be in good and serviceable condition. Existing fencing that is to remain shall be free of flaking paint, rust, or any other signs of failure. If existing fencing shows any signs of failure, it shall be repaired, painted and restored to look new. All chain link fencing must be removed and replaced with fencing of another approved material. All pedestrian gates hardware must be functional and in new or near- new condition. Access Control systems are required at exterior pedestrian gates.
C. All driveways and sidewalks must be in good condition. All cracked or uplifted areas (more than ¼”) shall be repaired or replaced.
D. The asphalt shall be in good condition, with no alligator cracking, longitudinal cracking, potholes, or standing water. Repairs to portions of parking lots not suitable for new coatings shall be performed by removing and replacing damaged paving. A new seal-coat or slurry-coat shall then be applied to the entire parking lot surface.
Parking spaces shall be restriped, including ADA aisles and other applicable striping/painting.
E. All site accessories (bollards, benches, tables, play equipment, bike racks, mailboxes, shade structures, BBQs, sheds, etc.) shall be replaced or in good repair (cleaned, painted and/or re-coated).
Building Envelope and Moisture Protection – Rehabilitation only A. All areas exposed to moisture must be sealed and watertight. Buildings showing evidence of water intrusion shall have the areas inspected by a licensed architect/engineer or by a certified water intrusion expert. A water intrusion report shall be submitted to SHRA, and shall include the cause of the issue and a resolution to eradicate the water intrusion. If the inspection cannot be completed until the demolition phase of the project, the report shall describe a procedure to inspect the issue during demolition.
B. Roofing must have 15 years or more of remaining life with no visible signs of leakage. For roofs containing composition shingles, a maximum of two layers of shingles are allowed (including any proposed new layers).
Provide evidence that the roof system has a 15-year life remaining on the manufacturer’s warranty.
C. All siding must have 15 years or more of remaining life. Hairline cracks in stucco must be sealed and painted with elastomeric paint. If requested by SHRA, a statement by a licensed architect and/or engineer that the existing siding contains at least 15 years of useful life remaining shall be provided.
D. Fireplaces must be clean and meet applicable air quality standards. Chimneys shall be clean and must be inspected by a certified chimney inspector for structural integrity. All recommended structural repairs shall be performed.
Doors and Windows
A. All dwelling/tenant units must have screens on all windows that are designed to open. Windows designed to open must have functional locks and must operate freely without excessive effort. All windows must be dual- paned (minimum), and shall meet or exceed the State of California’s currently applicable efficiency standards, and any other efficiency standards that may be dictated by the funding source or other governing bodies for the project.
B. All doors must have matching hardware finishes.
C. All exterior doors must have deadbolt locks, keyed latch assemblies, viewers, and screws in strike plates long enough to penetrate the door jamb framing by at least one inch. The dwelling entry door hardware shall have single action hardware to release deadbolt and latch assembly.
D. All sliding exterior doors shall have screen doors and shall have functional locks and must operate freely without excessive effort.
E. All doors and windows must meet current egress standards.
Doors and Windows – Rehabilitation only
A. Any windows showing signs of condensation or leakage of any kind shall be replaced. SHRA allows window replacement using retrofit windows when those windows are installed by trained professionals following manufacturer’s specifications. Retrofit windows must have a similar useful life as “new, construction” (i.e., nail fin) windows.
B. All doors and doorjambs must be in good condition. No damaged or worn doorjambs or doors are allowed.
Doors and/or jambs beyond their useful life shall be replaced.
Casework
A. New cabinet boxes shall be made of plywood or solid wood. No particle board boxes will be allowed.
B. All counter tops shall be of solid surface or granite, and in very good condition with no significant scratch es, burns or other imperfections.
C. Face frames, doors and drawer faces shall be solid hardwood. No plastic laminate finishes will be allowed.
Casework – Rehabilitation only
A. All cabinets shall be replaced or in very good condition, within their 15 year useful life, both structurally and in appearance.
Finishes
A. All dwelling unit kitchens shall contain luxury vinyl plank (LVP) flooring. Bathrooms must be floored with LVP, sheet vinyl or ceramic tile to provide a cleanable, impervious surface. Bedrooms, hallways, and living and dining rooms may be floored with carpeting, LVP or hardwood. Wear layer of LVP shall be at least 12 mils inside dwelling units. Tenant unit entries shall be floored with LVP or ceramic tile.
B. In common areas, corridors may be floored with LVP, glue-down carpeting, or carpet tiles. Community rooms and kitchens shall be floored with LVP. Wear layer of LVP in common/commercial areas shall be a minimum of 20 mils thick.
C. Carpet shall meet or exceed the minimum standards as set by HUD’s UM-44D bulletin.
Finishes – Rehabilitation only
A. Floor coverings must be in good, useable condition - no holes, tears, rips, or stains.
B. All exterior and interior surfaces must be painted. No peeling, cracking, chipping, or otherwise failing paint will be allowed. All painted surfaces must be new, or in near new condition and appearance.
C. Acoustic (popcorn) ceiling texture must be removed and refinished with new texture to match wall texture.
Equipment
A. Dishwashers, refrigerator/freezer, oven, stoves and garbage disposals are required in all dwelling unit kitchens.
All appliances must be new or in very good operating condition. All appliances must be Energy Star rated, as applicable. Appliances slated for ADA units shall be per code requirements.
B. SRO projects are encouraged to provide the appliances listed above and will be reviewed and approved on a case-by-case basis.
C. All kitchens must have adequate cabinet and counter space. Installation of shelving for microwaves is required if over-the-range microwaves are not used, with the exception of ADA units.
Furnishings
A. Dwelling units must have window coverings on all windows.
Special Construction
A. Non-habitable structures on property must be painted to match primary buildings and must be structurally sound.
B. Laundry facilities must, at a minimum, be consistent with CTCAC requirements of one washer and dryer for every ten dwelling units for family housing and one for every 15 units for senior and special needs projects. Ten percent of the total number of washer/dryers must be ADA-accessible machines (unless the ADA units contain their own laundry facilities). Solid surface countertops will be required within laundry rooms and countertops shall meet all ADA requirements.
C. Public pool areas shall have self-closing gate(s). Fences and gates at pool areas shall meet applicable current codes and standards. Joints between coping and concrete deck shall be appropriately caulked. Existing pools shall have no cracks in plaster or tile grout joints. The Developer is responsi ble for ensuring pool and surroundings meet all applicable current codes and standards. If a project contains two or more pools, at least one must remain following rehabilitation.
Mechanical/Plumbing
A. Water heaters must be installed per current applicable codes.
B. All common areas and tenant units must have heating and air conditioning. Wall mount (i.e. PTAC units) or central systems are acceptable. Evaporative coolers are not acceptable. HVAC units should be protected from
vandalism, pursuant to discretion of SHRA.
C. Toilets, showerheads, faucets, and mixing valves shall be new and meet current water conservation codes.
D. Tub surrounds must be one unbroken piece per wall and must be of solid surfaces (such as “Swanstone” or other solid acrylic materials, quartz composites), or other similar materials. Fiberglass/acrylic surrounds are acceptable.
Mechanical/Plumbing – Rehabilitation only
A. All toilets, sinks, and tubs shall be chip and stain free.
Electrical
A. All units must have smoke/carbon monoxide detectors installed per current code.
B. Wiring from telephone/data/cable suppliers shall be installed within walls, attic spaces, and/or crawl spaces. No conduits are allowed to be mounted on the exterior of the buildings in new construction.
C. Broadband infrastructure meeting the requirements of 24 CFR 5.100* is required in all new construction projects of 4 or more units.
*Broadband infrastructure means cables, fiber optics, wiring, or other permanent (integral to the structure) infrastructure, including wireless infrastructure, that is capable of providing access to Internet connections in individual housing units, and that meets the definition of “advanced telecommunications capability” determined by the Federal Communications Commission under section 706 of the Telecommunications Act of 1996 (47 U.S.C. 1302).
Electrical – Rehabilitation only
A. All electrical panels shall meet current code.
B. Any rehabilitation projects with un-grounded electrical systems shall be re-wired with grounded systems to meet current code.
C. For rehabilitation projects, switches, outlets and light fixtures shall be replaced with devices that meet current applicable codes.
D. Wiring mounted on the exterior of the surface may be allowed if it is concealed in conduit and conduit is painted to match exterior siding. For projects where exterior siding will be removed, this wiring shall be installed within walls, attic spaces, and/or crawl spaces.
Resident Services Community Space
All properties, regardless of project type (i.e. senior, family, or large family), must devote a minimum of 1,200 s.f. to actual resident services/community space. Resident services space includes common kitchens, computer rooms, meeting rooms and general gathering space. It does not include public restrooms, leasing offices, laundry facilities and lobbies. Common kitchens are required, including refrigerator, stove, garbage disposal, and dishwasher.
For existing buildings, these requirements shall apply unless SHRA deems there to be significant physical constraints.
End of Scope of Development.
RESOLUTION NO. 2022 -
Adopted by the Housing Authority of the City of Sacramento
on date of
MIRASOL VILLAGE BLOCK D (PROJECT): AUTHORIZATION TO AMEND THE HOUSING AUTHORITY BUDGET AND ALLOCATE UP TO $3 MILLION IN HOUSING AUTHORITY FUNDS TO THE PROJECT; APPROVAL TO EXECUTE LOAN
COMMITMENT, FUNDING AGREEMENT AND RELATED DOCUMENTS WITH TWIN RIVERS PHASE 4 L.P. (MCCORMACK BARON SALAZAR) OR RELATED ENTITY;
AND ENVIRONMENTAL FINDINGS
BACKGROUND
A. In 2015, the Housing Authority of the County of Sacramento (HACOS) and the City of Sacramento (City) were, as co -grantees, awarded a $30 million Choice Neighborhoods Implementation Grant from the US Department of Housing and Urban Development (HUD) for the Twin Rivers Transit Oriented Development and Light Rail Station project (Master Development).
B. On December 12, 2017, HACOS and City Council members approved the Master Development Agreement, which includes the Option to Lease (ground lease loans). SHRA is managing the Master Development and McCormack Baron Salazar is the master developer and Housing Lead (Developer). The Master Development is now known as Mirasol Village. The total project area includes six residential blocks and encompasses approximately 26 acres.
C. On March 16, 2021, City Council approved SHRA an d the Developer to apply to the State of California Strategic Growth Council and Department of Housing and Community Development in funding Round 6 for an Affordable Housing and Sustainable Communities grant for up to $30 million, including up to $20 million for the affordable housing development and $10 million for the housing related infrastructure of the Project. Unfortunately, in January 2022, the Project was not awarded.
D. On December 7, 2021, HACOS and City Council approved the predevelopment loan agreement and construction/permanent loan commitment of up to $2 million in CNI funds for the financing of Mirasol Village Block D (Phase 4).
E. The Developer of the Project applied to SHRA requesting a not to exceed $38 million bond issuance from the Housing Authority and a $15 million gap loan from the City and County for the construction and permanent financing of the Project.
F. In a separate City Council resolution, staff is recommending approval of up to $7 million comprised of $3.3 million in Permanent Loc al Housing Allocation funds, $1.4 million in Mixed Income Housing Funds, $1.4 million in Housing Trust Funds and $900,000 in Housing Opportunities for Persons with AIDS funds for the purpose of construction and permanent financing of the Project.
G. On November 2, 2021, the Board of Supervisors (Board) adopted the American Rescue Plan Act (ARPA) Phase One Funding Allocation with Housing as a priority, and SHRA staff is recommending an appropriation of $5 million of ARPA funds for the construction and permanent financing of this Project. On March 8, 2022, it is anticipated the Board will approve a $5 million loan commitment comprised of ARPA funds for the construction and permanent financing of the Project to fill the $15 million gap loan required.
H. On February 11, 2022, the Developer submitted a funding application to California Housing Finance Agency for $5 million in Mixed Income P rogram funds to assist with the construction and permanent financing of the Project.
I. Subject to all governing board approvals, the Housing Authority and Developer will apply to California Debt Limit Allocation Committee (CDLAC) for tax-exempt bonds and to California Tax Credit Allocation Committee (CTCAC) for four percent Low Income Housing Tax Credits (LIHTC) on March 16, 2022, with a goal to close financing in fall 2022 and complete construction by the fall of 2024.
J. The recommended actions are consistent with a) SHRA’s approved Multifamily Lending and Mortgage Revenue Bond Policies, adopted on December 3, 2019 b) the 2021-2029 Housing Element, which encourages the provision of a variety of quality housing types to encourage neighborhood stability, including options for extremely low-income households (Resolution No. 2021-0259); c) the Sacramento Promise Zone Plans and Goals, Sustainably Built Community sub-goal to increase housing types and transit growth to promote livability and connectivity within the Promise Zone (Resolution No. 2015-263); d) the Downtown Housing Initiative and Initiation of the Downtown Specific Plan, to bring 10,000 places to live to Downtown Sacramento by year 2025 (Resolution No. 2015 -282); e) the 2007 Asset Repositioning Strategy of the City and County Housing Authorities; f) the 2013 - 2019 Consolidated Plan; and g) the River District Specific Plan adopted F ebruary 15, 2011.
K. A combined Initial Study/Environmental Assessment (IS/EA) was prepared for the Mirasol Village (formerly Twin Rivers) Transit Oriented Development and Light Rail Station Project pursuant to California Environmental Quality Act (CEQA) requirements under 14 California Code of Regulations (CCR) §15070, and National Environmental Policy Act (NEPA) requirements under 24 Code of Federal Regulations (CFR) §58.36. The Mitigated Negative Declaration (MND) and associated Mitigation Monitoring and R eporting Program (MMRP) were adopted and a Notice of Determination (NOD) was issued pursuant to CEQA and a Finding of No Significant Impact (FONSI) was prepared pursuant to NEPA. The requested action requires no further environmental review.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE HOUSING AUTHORITY OF THE CITY OF SACRAMENTO RESOLVES AS FOLLOWS:
Section 1. All evidence presented having been duly considered, the findings, including environmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved adopted.
Section 2. The Executive Director, or her designee, is authorized to amend the budget to allocate up to $3 million in Housing Authority Funds for the purpose of construction and permanent financing of the Project.
Section 3. The Conditional Loan Commitment attached hereto as Exhibit A for the purpose of construction and permanent financing of the Project with up to $3 million in Housing Authority Funds (Commitment) is approved, and the Executive Director, or her designee, is authorized to execute and transmit the Commitment to Twin Rivers Phase 4, L.P. (McCormack Baron Salazar) or related entity (Developer) for the Project.
Section 4. The Executive Director, or her designee, is authorized to negotiate, enter into, execute and amend from time to time a funding agreement comprised of up to $3 million in Housing Authority Funds and related documents for the construction and permanent financing of the Project with the Developer and execute other documents, as approved to form by its Office of the General Counsel, and perform other actions required by Housing Authority Funds, including without limitation, negotiation, subordination, regulatory agreements, financial restructuring, and extensions, consistent with its adopted policy and with this resolution.
Section 5. The Executive Director finds that an economically feasible alternative method of financing on substantially comparable terms and con ditions, without subordination is not available. Therefore, Executive Director, or her designee, is authorized to subordinate the Housing Authority Funds loan to the senior loans.
Section 6. This resolution shall take effect immediately upon its adoption.
Table of Contents:
Exhibit A: Conditional Loan Commitment (Housing Authority Funds)
Ex
hibit A
March 8, 2022
Dan Falcon, Managing Director
720 Olive Street, Suite 2500
St. Louis, Missouri 63101
Re: Conditional Loan Commitment for Mirasol Village Block D (Phase 4)
Dear Mr. Falcon:
On behalf of the Sacramento Housing and Redevelopment Agency (SHRA), Housing Authority of the City of Sacramento (HACS) and Housing Authority of the County of Sacramento (HACOS), collectively “Agency,” we are pleased to advise you of its commitment of acquisition, construction and permanent loan funds (Loan) in an amount not to exceed $17,468,000 in program funds described in the chart below for the purpose of financing the development of that certain real property known as Mirasol Village Block D (Phase 4) (Project) located 1381 Swallowtail Ave, Sacramento, California (Property) (Commitment).
LOAN FUNDING PROGRAMS NOT TO EXCEED
LOAN AMOUNTS
SHRA County American Rescue Plan Act (ARPA) Loan $ 5,000,000.00 SHRA City Permanent Local Housing Allocation (PLHA) Loan $ 3,300,000.00 HACS Housing Authority Funds (HAF) Loan $ 3,000,000.00 HACOS Choice Neighborhoods Implementation (CNI) Loan $ 2,000,000.00 SHRA Mixed Income Housing Funds (MIHF) Loan $ 1,400,000.00 SHRA City Housing Trust Funds (HTF) Loan $ 1,400,000.00 SHRA Housing Opportunities for Persons With AIDS (HOPWA) Loan $ 900,000.00 HACOS Ground Lease Loan (90% of the current appraised value of the land) $ 468,000.00 TOTAL LOANS $ 17,468,000.00
The Agency's decision is based on representations and information supplied by McCormack Baron Salazar, Inc. in its capacity as Housing Lead and Master Developer. If these representations and information change in a material manner without written approval of the Agency, this Commitment is void. Agency's obligation to make the Loan is subject to the satisfaction of all the following terms and conditions and Borrower's execution of documentation that is in a form and in substance satisfactory to the Agency. This Commitment supersedes previous loan commitments associated with CNI and ground lease loans.
The Loan shall be made on standard Agency loan documents. Loan terms not included in this funding commitment shall be included in the final loan documents without additional environmental review and governing board approval. In the event of any discrepancies between terms stated in this commitment and the loan documents, the terms stated in the loan commitment letter shall be deemed to be terms of this commitment.
Unless otherwise agreed in writing by the Agency in exercise of its absolute discretion, the following shall be considered conditions to Agency approval of a financing commitment. The Agency may, in exercise of its absolute discretion, modify its requirements upon written notice to Borrower given at least sixty (60) days prior to close of escrow for the Property.
This Commitment will expire September 30, 2023, or extended upon mutual agreement.
1. PROJECT DESCRIPTION: Twin Rivers (Mirasol Village) Phase 4 is a new construction, mixed-income housing development. The Project is the third phase of development for the multi- phased, Twin Rivers public housing redevelopment project. The Project will consist of a total of five residential buildings that will include a minimum of 116 rental housing units. The housing units will be 1-4 bedrooms in size and include a minimum of 47 replacement housing units in accordance with the HUD-approved replacement housing plan for the Project. The Project will also contain several outdoor amenities including tot lots, barbeque areas, and bike or car share.
2. BORROWER: The name of the Borrower for the Loan is Twin Rivers Phase 4, L.P., a California limited partnership with McCormack Baron Salazar, Inc., or related entity as the lead development partner.
3. PURPOSE OF LOAN: The Loan is to be used by Borrower solely to pay the costs of acquisition, construction and permanent financing of the Project and for such other purposes as Agency expressly agrees to in the loan agreement for the Loan, as well as in such other agreements as may be generally required by the Agency for the use of the funding source for the Loan.
4. PRINCIPAL AMOUNT: The principal amount of the Loan will be a maximum of Seventeen Million Four Hundred Sixty-Eight Thousand Dollars and No Cents ($17,468,000.00) or such lesser amount as may be needed and as determined by Borrower and approved by Agency prior to close of the Loan.
5. TERM OF LOAN: The Loan shall mature up to 57 years or 684 months from the date of closing construction financing, at which point any and all unpaid principal and interest on the loan will be due and payable. Final maturity date will be determined by impact of terms and conditions of other sources of financing approved for the Project.
6. INTEREST RATE: The Loan will bear simple interest at three percent (3%) per annum. Interest shall be calculated on a 365-day year, actual days elapsed basis. With the exception of the Ground Lease Loan, which will be the Applicable Federal Rate.
7. ANNUAL REPAYMENT: Annual principal and interest payments shall be made according to the structured payment schedule contained in the final Loan Agreement and as calculated to achieve a minimum annual debt service coverage ratio of 1.2:1. Payments shall be applied first to outstanding interest accrued and unpaid and then to principal. All outstanding principal and interest is due and payable on the maturity date. Notwithstanding the preceding payment schedule, no payments shall be required on this Loan until the full balance of principal and interest on the proposed capitalized ground lease made by the Housing Authority of the County of Sacramento to Borrower pursuant to the Master Development Agreement is paid in full.
8. SOURCE OF LOAN FUNDS:
Agency is making the Loan from the ARPA, PLHA, HAF, CNI, HTF and HOPWA funding programs and ground lease, and is subject to all of the requirements related to the use of these funds, whether Agency requirements or otherwise. This Loan is conditioned upon Borrower’s acceptance of Agency requirements and conditions related to its lending programs and funding sources, including among others the required forms of agreements for the Loan; the requirements for covenants, conditions and restrictions upon the Property; and insurance and indemnity requirements.
Borrower acknowledges that, as a condition of the Agency’s making of the Loan, the Property will be subject to restrictions on future sales and rentals which may result in less income to Borrower than could otherwise be realized, and that such restrictions run with the land, and during their operational term, will bind all successors in interest.
___________ (Borrower Initial)
9. ACCELERATION: Agency shall have the right to accelerate repayment of the Loan in the event of a default under any Loan Document or upon sale, transfer or alienation of the Property except as specifically provided for in the Loan documents.
10. SECURITY: The Loan shall be evidenced by promissory note(s) secured by a deed of trust with assignment of rents against the fee and/or leasehold interest in the Property and Improvements, which shall be a lien upon the Property and Improvements subject only to additional liens senior to the Agency’s lien securing loans needed for the Project and such other liens or items as the Agency may approve in writing prior to close. The Loan shall also be secured by security agreements where required. The Agency may agree to subordinate said deed of trust in order to accommodate completion of construction of the Project.
11. LEASE AND RENTAL SCHEDULE: All leases of the Property and Improvements shall be subject to Agency review and approval prior to execution. Borrower shall not deviate from the rental schedule presented in Borrower's application for the Loan without Agency's prior written approval provided, however, that such approval shall not be required for annual adjustments to rental rates as permitted by the California Tax Credit Allocation Committee.
12. PROOF OF EQUITY: Borrower shall provide proof of equity for the Property and Improvements in the amount of no less than stated in Borrower’s request for the Loan. Proof of equity will generally be in the form of verified low income housing tax credit equity and deferred developer fee. If the final equity contribution is less than that as anticipated, the difference in equity must be offset by an increase in the deferred developer fee.
13. OTHER FINANCING: Borrower, as a requirement of the Loan, shall procure and deliver to Agency evidence satisfactory to Agency that Borrower has obtained the following described financing which may be secured by a lien upon the Property and Improvements superior or subordinate to Agency's liens, and which shall be otherwise on terms and conditions acceptable to Agency:
(a) As a condition precedent to disbursement of the Agency loan, construction financing from private lender(s) in an amount(s) sufficient to complete construction of the Project according to a Scope of Work as approved by Agency (Construction Financing). The term of Construction Financing must not be less than that specified in the Schedule of Performances for completion of construction and in any event not less than the time necessary to fulfill all conditions precedent to funding of the permanent financing. (b) Commitments for permanent financing sufficient to “take out” all Construction Financing liens senior to the Agency’s lien.
(c) Such commitments for construction and permanent financing shall not require modification of Agency loan documents, or any term of this commitment letter. (d) Such commitments shall not be based upon sources and uses of Project funds that are different from those approved by Agency for the project or be subject to conditions which require amendment of Agency documents or other agreements.
14. EVIDENCE OF FUNDS: Prior to the first disbursement of the Loan, Borrower must demonstrate evidence of adequate and assured funding to complete the development of the Project in accordance with the Agency's requirements. Borrower's evidence of available funds must include only one or more of the following: a) Borrower equity; b) firm and binding commitments for the Project from financial institution(s) or from other lender(s) approved by Agency in its absolute discretion; and c) Agency’s contribution, provided, however, that Agency is not obligated by this letter to make any contribution not stated in the terms of the letter.
15. SOILS AND TOXIC REPORTS: Borrower will submit to the Agency a hazardous substances report made in accordance with the American Society for Testing and Materials "Standard Practice for Environmental Site Assessments; Phase I Environmental Site Assessment Process" (Designation E1527-13) prepared by a licensed or registered environmental engineer or other qualified party prior to Loan closing. Borrower must, as a condition of disbursement of Loan funds, give assurances satisfactory to the Agency that hazardous materials are not present on the Property or that any hazardous materials on the Property will be remediated and that no further remediation is then required by the environmental agency having responsibility for monitoring such remediation.
16. LOAN IN BALANCE: Borrower will be required to maintain the Loan "in balance" at all times.
The Loan is "in balance" whenever the amount of the undisbursed Loan funds, the remaining sums to be provided by the Borrower and the loan funds from other project lenders or the equity investor are sufficient, in the sole judgement of the Agency, to pay for the remainder of the work to be done on the project as required by written agreement with the Agency. Should the Agency determine that the Loan is not "in balance" the Agency may declare the Loan to be in default.
17. PLANS AND SPECIFICATION: Final plans and specifications, if any, for the project must be in accord with the approved proposal. Final plans and specifications will be subject to Agency's final approval prior to the disbursal of Agency Loan funds. Borrower must obtain Agency's prior written consent to any change in the approved plans and specifications or any material deviation in construction of the project. The final plans shall incorporate all related mitigation measures as required in the Mitigation Monitoring and Reporting Program of Twin Rivers (Mirasol Village) Transit Oriented Development and Light Rail Station Project as may applicable to Twin Rivers (Mirasol Village) Phase 4, environmental conditions required, if any, for compliance with approvals under CEQA, and/or NEPA, or the U.S. Department of Housing and Urban Development as conditions of approval of the project.
18. ARCHITECTURAL AGREEMENT: The architectural agreement (Agreement), if any, for the preparation of the plans and specifications and other services shall be subject to Agency's approval. Agency may require an assignment of Borrower's interest in and to the Agreement as security for the Loan.
19. CONSTRUCTION CONTRACT: The construction contract (Contract), if any, and any change orders issued thereunder, and the contractor (Contractor) to be retained by Borrower to construct the Improvements shall be subject to Agency's approval. Agency may require an assignment of Borrower's interest in and to the Contract as security for the Loan. Agency may require Contractor to provide a performance and payment bond in a form acceptable to Agency for the amount of the Contract.
20. RETENTION AMOUNT: The Agency shall retain ten percent (10.0%) of each construction disbursement as retention, not to exceed a total of ten percent (10.0%) of the total amount of the Loan.
21. COST BREAKDOWN: Borrower shall deliver to Agency for Agency's approval prior to commencement of work a detailed cost breakdown of the cost of constructing, financing and other costs of developing the Project, which breakdown conforms to the project plans and specification and the approved budget for the Project. Borrower shall also deliver a list of all contractors and subcontractors to be employed in connection with the construction of the Improvements. If required by the Agency, Borrower shall also submit copies of all bids received for each item of work to be performed as well as copies of executed contracts and subcontracts with acceptable bidders.
All contracts, subcontracts, contractors, and subcontractors shall be subject to Agency's approval prior to close of the Loan. Agency also reserves the right to require performance and material payment bonds on any or all contractors, or in lieu of bond a letter of credit acceptable to Agency.
Agency shall make disbursements of the Loan based on a cost breakdown that lists line items in cost categories. Agency shall require that Borrower provide documentation supporting all requests for disbursement of Loan funds, including proof of work done and actual expenditure.
Agency shall conduct inspections of the Property to assure that the work was done before making a disbursement.
22. COST SAVINGS: At completion of construction, Borrower shall submit to Agency a cost certification prepared by a qualified, independent auditor acceptable to Agency which shall indicate the amounts actually spent for each item in the cost breakdown and shall indicate the final sources of funding. If there is an aggregate savings, in the total of all such cost breakdown items from the cost breakdown items in the original budget approved by the Agency, after adjusting for any decrease in any funding source including any loss of any equity investment due to an adjustment in the allowable tax credits, the Agency shall withhold for itself fifty percent (50%) of such savings from the amount of retention then held by the Agency and the Loan balance shall be reduced by the amount so withheld. The Agency, in its sole discretion, shall determine any reduction and/or repayment of the Agency loan based upon this cost certification and the original approved budget for the project.
23. START OF CONSTRUCTION: Borrower shall commence construction at the earliest possible date subject to the conditions of this Agency and other involved lenders, but no later than sixty (60) days following the close of construction financing.
24. COMPLETION OF CONSTRUCTION: Borrower shall complete the construction of the Improvements no later than 24 months following the close of construction financing.
25. SECURITY CAMERAS AND OUTSIDE LIGHTING: Project shall include installation of a security camera system, exterior lighting, and security patrols, all as approved by the Agency.
26. INSURANCE PROVIDER: Each policy of insurance required under the Loan shall be obtained from a provider licensed to do business in California and having a current Best's Insurance Guide rating of A VII, which rating has been substantially the same or increasing for the last five (5) years, or such other equivalent rating, as may reasonably be approved by Lender's legal counsel.
27. HAZARD INSURANCE: Borrower shall procure and maintain fire and extended coverage insurance and during construction Builder's Risk completed value insurance in a form and substance approved by Agency. Coverage shall be for protection against loss of, or damage to the Improvements or materials for their construction to their full insurable value. Borrower shall also procure and maintain insurance against specific hazards affecting Agency's security for the Loan as may be required by Agency, governmental regulations, or any permanent lender. All such policies shall contain a standard mortgagee loss payable clause in favor of Agency. The insurance required shall be written with a deductible of not more than TEN THOUSAND DOLLARS ($10,000.00).
28. PUBLIC LIABILITY AND OTHER INSURANCE: Borrower must procure and maintain public liability and property damage insurance (with Agency named as additional insured) in a form approved by Agency. Coverage must be approved by Agency and must be in at least the following limits of liability: (1) Commercial General Liability insurance in Insurance Services Office (ISO) policy form CG 00 01 Commercial General Liability (Occurrence) or better with limits of liability, which are not less than $1,000,000, per occurrence limit; $5,000,000 general aggregate limit, and $5,000,000 products and completed operations aggregate limit, all per location of the Project; (2) Property damage liability of $1,000,000 each occurrence, $1,000,000 single limit and $1,000,000 aggregate; (3) Contractual liability for Bodily Injury of $1,000,000 each occurrence, for Property Damage of $1,000,000 each occurrence and $1,000,000 aggregate, and Personal Injury with Employment Exclusion Deleted of $1,000,000 aggregate; and (4) Comprehensive Automobile Liability for any vehicle used for or in connection with the Work of $1,000,000. The insurance required shall be written with a deductible of not more than TEN THOUSAND DOLLARS ($10,000). Borrower must also procure and maintain workers' compensation and all other insurance required under applicable law, as required by law and as approved by Agency.
29. TITLE INSURANCE: Borrower must procure and deliver to Agency an ALTA Lender's Policy of Title Insurance, together with such endorsements as Agency may require, including but not limited to CLTA endorsement nos. 100, 116, and 102.5/102.7 insuring Agency in an amount equal to the principal amount of the Loan, that Agency's Deed of Trust constitutes a third lien or charge upon the Property and Improvements subject only to such items as shall have been approved by Agency. There must be no exceptions permitted for mechanic’s liens. Title insurance for the Loan must be issued by a title insurer approved by Agency.
30. ORGANIZATIONAL AGREEMENTS: Borrower must submit to Agency certified copies of all of Borrower’s organizational documents, including all amendments, modifications or terminations: if a corporation, Borrower's Articles of Incorporation and By-Laws; if a partnership, its Partnership Agreement and, as applicable, Certificate of Limited Partnership or Statement of Partnership; if a Limited Liability Company, its Articles of Organization and its Operating Agreement; and in all cases with all exhibits and amendments to such documents, fictitious business name statements, other related filings or recorded documents and such related documents as Agency may request. If it is a corporation, Borrower must submit a corporate borrowing resolution referencing this Loan. If Borrower is other than a corporation, Borrower must submit such proof of authority to enter this Loan as may be required under the organizational documents.
31. PURCHASE OR LEASE OF PROPERTY: Borrower shall provide Agency with copies of all documents relating to Borrower's ownership interest in the Property.
32. FINANCIAL INFORMATION: During the term of the Loan, Borrower shall deliver to Agency within 120 days of the end of each fiscal year an audited income and expense statement, a balance sheet, and a statement of all changes in financial position signed by authorized officers of Borrower. Prior to close of the Loan and during its term, Borrower must deliver to Agency such additional financial information as may be requested by Agency. Agency reserves the right to review and approve financial statements and other credit information and references prior to closing. During the term of the Loan, Borrower must deliver to Agency a monthly rent-roll including household composition information and operating statements with respect to the Property management, as Agency may request.
33. MANAGEMENT AGREEMENT: Prior to execution, Borrower must submit to Agency any agreement providing for the management or operation of the Property or Improvements by a third party which agreement is subject to Agency Approval.
34. RESIDENT SERVICES AGREEMENT: Prior to execution, Borrower must submit to Agency an agreement providing for the resident services by a third party which agreement is subject to Agency Approval. The agreement must include on-site resident services according to the following minimum schedule of twenty (20) hours per week:
a. Coordinator: Six (6) hours per week (maximum)
b. After School Programming: Eight (8) hours per week (two hours per day and four days per week, minimum)
c. Additional Pr ogramming: Balance of minimum six (6) hours per week shall include, but are not limited to:
i. Workforce development support and activities.
ii. Education classes such as nutrition, exercise, health resources, health insurance application assistance, Annual onsite health fair and ESL classes. iii. Socialization activities such as bingo, gardening and community building events. iv. Other services such as transportation assistance, counseling assistance and employee readiness and job search assistance.
35. LOW INCOME HOUSING TAX CREDITS (LIHTC): Borrower represents that as a condition of closing this Loan it is applying for an allocation of LIHTC’s and agrees to perform all actions and meet all requirements to maintain the LIHTC allocation if granted.
36. SMOKE-FREE ENVIRONMENT: 100% of the buildings and units must be smoke free (including all forms of smoking that create secondhand smoke that impacts the health of nonsmokers). In addition, all indoor common areas must be smoke-free. Clearly-marked designated smoking areas must be provided.
37. DOCUMENTATION: This letter is not intended to describe all of the requirements, terms, conditions and documents for the Loan, which shall also include customary provisions and documents for an Agency transaction of this type. All documents to be delivered to or approved by Agency must be satisfactory to Agency in all respects. Borrower must promptly deliver to Agency any further documentation that may be required by Agency.
38. CONSISTENCY OF DOCUMENTS: As a material obligation under this commitment letter, Borrower shall assure that the loan documents for the Project are consistent with lender's commitment approved by the Agency and comply with same.
39. CHANGES OR AMENDMENTS: No documents or contracts which are to be delivered to Agency or are subject to Agency's review or approval shall be modified or terminated without the prior written approval of Agency.
40. ACCEPTANCE OF THIS COMMITMENT: Borrower’s acceptance of this Commitment shall be evidenced by signing and delivering to Agency the enclosed copy of this letter. Until receipt of such acceptance by Agency, Agency shall have no obligation under this letter. Agency may withdraw this commitment at any time prior to Borrower’s acceptance.
Sincerely,
_________________________________
La Shelle Dozier, Executive Director
The undersigned acknowledges and accepts the foregoing Commitment and its terms and conditions.
BORROWER:
Twin Rivers Phase 4 L.P., a California limited partnership By: Twin Rivers Phase 4 MBS GP, Inc., a California corporation
By: _________________________________
Daniel Falcon, Managing Director
Attachment:
Exhibit 1 - Scope of Development and Rental Property Minimum Construction Standards
Exhibit 1: Mirasol Village Block D – Scope of Development
Project Summary: Mirasol Village Block D is composed of four three-story garden-style walk- ups, and one four-story building serviced by elevators. There is a total of 5 buildings in the phase and 58 on-grade parking spaces.
Mirasol Village Block D is the fourth phase of a master plan, mixed-income housing development located at 475 Pipevine Street. The proposed development will replace the existing public housing development in this area, and the final project development will include 427 apartment units, with 116 units in this phase. All off-site infrastructure and the adjacent right - of-way improvements will be constructed under a separate contract. The project will be designed to secure a Green Point Rated Certification. The development will be a vibrant new addition to the neighborhood and help encourage future improvements and development.
Additional master plan site amenities include property management offices for the entire community, resident community space / community room, a fitness center for residents, a business center with Wi-Fi, computers and printers, a swimming pool and a barbeque area. All buildings are slab on grade wood frame construction with entrances and windows overlooking streets. Putting eyes on the street are part of a safe design strategy. Parking spaces are located behind buildings and there is additional open space for resident amenities, including playgrounds and the feeling of private green space. The buildings will be built to the latest TCAC Sustainable Building Methods standards.
A. Site:
1. New construction of 5 new buildings: 4 three-story garden-style apartments and 1 four - story apartment building. All the buildings will be Type V wood construction, with some concrete and/or steel at the ground-level of the four-story buildings.
2. All adjacent streets will be in place prior to completion of Block D and are under a separate contract.
3. There will be an accessible path of travel into each building, the parking area, and all common area amenity spaces.
4. The parking lot shall be constructed by a combination of pervious concrete paving at the parking spaces and asphalt paving at the drive aisles. The parking lot shall be striped completely, identifying all parking spaces, ADA spaces, pedestrian pathways, and other potential hazards. Bicycle parking will be available.
5. Site amenities will include a school-age appropriate playground and landscaped area with picnic tables and benches.
6. The site will have pervious pavement and on-site drainage retention to accommodate all site drainage requirements in addition to all of the adjacent ROW.
7. New vehicular driveways access to the surface parking lots will be constructed as part of the infrastructure contract.
8. New landscaping throughout the project, including both along the new and existing streets and internally within the block. The landscaping and street design will serve to create a walkable neighborhood that encourages physical activity. Drought tolerant trees will be included and a smart controller with a drop system will be used for irrigation.
9. The entire site will have a decorative 6ft tall, wrought iron picket fence off -set well beyond the property line, towards the back of the buildings. The goal is to secure the site
without the feel of being fenced in.
10. The fence will have several pedestrian and vehicular access points throughout the site with access control. Only residents will have access to parking within the site, all visitors will park on the street.
11. Each building will have controlled access as will each of the common area amenity spaces.
12. Web-based CCTV will be provided with cameras covering primary ingress/egress points to the site; principal parking areas; and indoor/outdoor common areas. Site lighting shall be provided at all parking and outside public spaces and shall be of LED or simil arly energy efficient type.
13. A minimum of one trash enclosure will be provided at each Block D. Trash enclosures will be constructed out of concrete block and metal gates with a concrete apron in front.
They will include separate recycling and trash receptacles within the same enclosure.
The trash enclosure will be completely accessible.
14. There will also be some shading elements on the residential buildings and outdoor amenity areas.
15. There will be mailboxes located on Block D for its respective residents.
B. Building Exteriors:
The exterior building materials will be a combination of stucco and fiber cement siding.
C. Parking:
Block D will include a surface parking lot at the interior of the parcel, with approximately 58 spaces. Each lot will have required accessible parking as well as the infrastructure for electrical vehicle charging and outdoor bicycle parking.
D. Tenant Units:
BDRM Size Type Number of Units
One Elevator 16
One Walkup 12
Two Elevator 44
Three Elevator 24
Three Walkup 8
Four Walkup 12
TOTAL 116
1. Appliances: All units will be equipped with a washer/dryer. All kitchens shall have refrigerator/freezer, dishwashers, stove/oven, and micro- hoods in non- accessible units and microwave shelves built into lower cabinets in ADA units. All appliances will be Energy Star, where applicable. Each unit will have garbage disposals.
2. Electrical: All units will have smoke/carbon monoxide detectors installed per current
code.
3. Doors: All exterior doors shall have deadbolt locks, keyed latch assemblies and viewers.
The tenant units’ entry doors shall have single action hardware to release deadbolt and latch assembly.
4. Windows: New dual -paned (at a minimum) window with screens will be installed throughout. Window coverings will be provided on all windows.
5. Flooring: All units will have Luxury Vinyl Plank (LVP) throughout with a minimum wear layer of 12 mils. Bathrooms will be sheet vinyl. All common areas will be LVP.
6. Cabinets, Counters: All kitchen and bathroom cabinets will have plywood boxes with solid face frames, doors, and drawer faces. All kitchens and bathrooms will have solid surface countertops.
7. Lighting: Units will have new LED lighting throughout.
8. Finishes: All unit interiors will have level 4 drywall finish.
9. Plumbing Fixtures: Bathrooms shall have low-flow, water-efficient fixtures.
10. Bathrooms: Bathrooms shall be fully equipped with accessories including towel bars, toilet paper dispensers and mirrors. All countertops shall be solid surface. Tub surrounds will be of fiberglass.
11. Hallways: The hallways on the upper floors of the 4-story building and garden-style buildings will be Luxury Vinyl Tile (LVT).
12. Accessible Units: There will be the TCAC-required number of fully accessible units and audio/visual accessible units.
E. Community Areas:
1. On-site Management: On-site Property Management will be located on Block A.
2. Community/Management Spaces: There will be approximately 1,800SF of common area space for residents to enjoy. Additional community space, including club house, multipurpose rooms, gym and swimming pool, will be located on Block A.
3. Resident Services: Resident Services will be located on Block A.
4. Elevators and Stairs: The four -story buildings will have an elevator and enclosed stairways. Each of the three -story walk-up buildings will have an internal stair serving all three floors. Stairways will include closed risers and non-slip concrete finish or other slip-resistant material on the treads.
Attachment 1: Rental Property Minimum Construction Standards are on the following page.
Attachment 1: Lender’s Minimum Construction Standards
This attachment is from Exhibit 2 from the Lender’s Multifamily Lending and Mortgage Revenue Bond Policies.
RENTAL PROPERTY MINIMUM CONSTRUCTION STANDARDS
The following is a list of the required minimum construction standards that must be incorporated into projects participating in SHRA’s Multifamily Financing and/or Mortgage Revenue Bond programs. All rental units and sites associated with these projects must meet or exceed these standards. Exceptions to these standards may be made for properties subject to U.S. Department of Housing and Urban Development replacement reserve requirements that allow for renovation over time rather than at recapitalization (e.g., Rental Assistance Demonstration conversions for conventional public housing).
Note: For rehabilitation projects, all of the following standards shall apply. The non-rehabilitation sections below shall apply to new construction projects.
Useful Life Expectancy – Rehabilitation only
SHRA shall reference the current edition of FannieMae’s “Instructions for Performing a Multifamily Property Condition Assessment, Appendix F. Estimated Useful Life Tables” in determining the useful life for all building components and systems located within the project. A remaining useful life of 15 years or more is required for all building components and systems located within the approved complex. All items on the FannieMae tables with useful lives indicated to be less than 15 years shall be replaced.
General Requirements
A. All materials funded under this loan must be new unless previously approved. Recycled items must be approved in writing by SHRA prior to their use.
B. All work shall comply with Federal and State ADA accessibility requirements, as well as any other requirements stipulated by the funding source(s). When there are differences the stricter of the two shall apply.
The developer is responsible for notifying their architect and/or engineer of all funding sources used on the project. The architect and/or engineer must indicate these funding requirements in the project’s plans/scope.
C. All units shall be approved for occupancy by the local Building Department or any other Agency Having Jurisdiction (AHJ) at the conclusion of the work and prior to occupancy.
D. Web-based security cameras and the equipment to record events are required for primary ingress/egress points to and from the site and for the principal parking and indoor and outdoor common areas whe re people will be congregating.
E. Site lighting is required for all parking and outside public spaces, and shall be of LED or similarly energy efficient type. The lenses on the exterior lights shall be cleaned with all oxidation removed or replaced. Light poles shall be new or painted, and shall be structurally sound and stable.
F. The developer’s architect is responsible for providing an Operating Procedure Outline Sheet (OPOS) for window washing systems where applicable, per Cal-OSHA requirements.
G. SHRA encourages the use of energy and water-efficient systems wherever they may be incorporated into the project.
General Requirements – Rehabilitation only
A. Any component of the project which does or may present a health or safety hazard to the public or tenants shall be corrected to the satisfaction of the local Building Department or AHJ.
B. A clear pest inspection report will be required at the conclusion of the construction work for rehabilitation projects.
C. For all structures where disturbance of any hazardous materials (e.g. lead, asbestos, mold, etc.) will occur, a clearance report from an environmental consultant is required.
D. Projects deemed historically significant landmark by either the City of Sacramento or the National Register of Historic Places shall consult with the State Historic Preservation Officer (SHPO), and shall conform to the Secretary of the Interior Standards for the Treatment of Historic Properties.
Site Work
A. Trees and large shrubs must be trimmed, grass areas must be mowed, and all planter areas must be weed -free.
The landscape design shall incorporate a sustainable design appropriate for the Sacramento Valley. Vegetation that assists in minimizing crime and enhances public safety is preferred. Trees compromising building envelope materials (roofing, siding, windows, etc.) and/or structural integrity (including foundations) must be removed.
An arborist shall be consulted for an opinion on trees prior to major branch trimming, root cutting or tree removal. All trees, bushes and other plants that are to be removed shall have the root ball removed by grinding or by mechanical means. A landscape plan describing the above must be provided to SHRA for approval.
B. All landscaped areas must be served by a programmable automated irrigation system. The irri gation controller shall be a “Smart Controller” that senses rain to reduce water use. Irrigation shall be designed to use bubblers and other water saving measures. Irrigation must not spray on building. Sprinklers should minimize overspray that runs to storm drain drop inlets. Areas that show evidence of erosion of soil shall be landscaped to eliminate problems. The landscape plan must be approved by SHRA and applied.
C. For gated communities containing swinging vehicle gates, driveways shall be striped to show the area under the gate swings for safety purposes.
D. All projects shall contain trash enclosures with concrete aprons. Trash enclosures shall be made of cinder block or stucco. Trash enclosures shall be accessible to all tenants. Provisions for tenants with disabilities must be addressed in the project Scope of Development or the project plans.
E. All projects shall meet the parking requirements of the local Agency Having Jurisdiction (AHJ) over the project. "Grandfathered Projects" will need to show that they are in fact “Grandfathered” or otherwise exempted by the local AHJ. Otherwise, all projects shall meet the governing ADA requirements for parking.
F. A two percent (2%) slope shall be maintained for a distance of five feet from all structures and no st anding water shall remain on the site. Provide an on- site drainage system if necessary.
G. Stairways in common areas must include closed risers and non-slip concrete finish or other slip-resistant material on the treads.
H. Exterior mounted electrical, mechanical, and plumbing systems must be protected from vandalism.
I. For family projects of 50 or more units, a minimum of one school age-appropriate play structure is required. For family projects of 100 or more units, a minimum of one school age and one toddler-a ppropriate play structure is required.
Site Work – Rehabilitation only
A. All landscaping and irrigation systems must be in a well-maintained condition.
B. All fencing must be in good and serviceable condition. Existing fencing that is to remain shall be free of flaking paint, rust, or any other signs of failure. If existing fencing shows any signs of failure, it shall be repaired, painted and restored to look new. All chain link fencing must be removed and replaced with fencing of another approved material. All pedestrian gates hardware must be functional and in new or near- new condition. Access Control systems are required at exterior pedestrian gates.
C. All driveways and sidewalks must be in good condition. All cracked or uplifted areas (more than ¼”) shall be repaired or replaced.
D. The asphalt shall be in good condition, with no alligator cracking, longitudinal cracking, potholes, or standing water. Repairs to portions of parking lots not suitable for new coatings shall be performed by removing and replacing damaged paving. A new seal-coat or slurry-coat shall then be applied to the entire parking lot surface.
Parking spaces shall be restriped, including ADA aisles and other applicable striping/painting.
E. All site accessories (bollards, benches, tables, play equipment, bike racks, mailboxes, shade structures, BBQs, sheds, etc.) shall be replaced or in good repair (cleaned, painted and/or re-coated).
Building Envelope and Moisture Protection – Rehabilitation only A. All areas exposed to moisture must be sealed and watertight. Buildings showing evidence of water intrusion shall have the areas inspected by a licensed architect/engineer or by a certified water intrusion expert. A water intrusion report shall be submitted to SHRA, and shall include the cause of the issue and a resolution to eradicate the water intrusion. If the inspection cannot be completed until the demolition phase of the project, the report shall describe a procedure to inspect the issue during demolition.
B. Roofing must have 15 years or more of remaining life with no visible signs of leakage. For roofs containing composition shingles, a maximum of two layers of shingles are allowed (including any proposed new layers).
Provide evidence that the roof system has a 15-year life remaining on the manufacturer’s warranty.
C. All siding must have 15 years or more of remaining life. Hairline cracks in stucco must be sealed and painted with elastomeric paint. If requested by SHRA, a statement by a licensed architect and/or engineer that the existing siding contains at least 15 years of useful life remaining shall be provided.
D. Fireplaces must be clean and meet applicable air quality standards. Chimneys shall be clean and must be inspected by a certified chimney inspector for structural integrity. All recommended structural repairs shall be performed.
Doors and Windows
A. All dwelling/tenant units must have screens on all windows that are designed to open. Windows designed to open must have functional locks and must operate freely without excessive effort. All windows must be dual- paned (minimum), and shall meet or exceed the State of California’s currently applicable efficiency standards, and any other efficiency standards that may be dictated by the funding source or other governing bodies for the project.
B. All doors must have matching hardware finishes.
C. All exterior doors must have deadbolt locks, keyed latch assemblies, viewers, and screws in strike plates long enough to penetrate the door jamb framing by at least one inch. The dwelling entry door hardware shall have single action hardware to release deadbolt and latch assembly.
D. All sliding exterior doors shall have screen doors and shall have functional locks and must operate freely without excessive effort.
E. All doors and windows must meet current egress standards.
Doors and Windows – Rehabilitation only
A. Any windows showing signs of condensation or leakage of any kind shall be replaced. SHRA allows window replacement using retrofit windows when those windows are installed by trained professionals following manufacturer’s specifications. Retrofit windows must have a similar useful life as “new, construction” (i.e., nail fin) windows.
B. All doors and doorjambs must be in good condition. No damaged or worn doorjambs or doors are allowed.
Doors and/or jambs beyond their useful life shall be replaced.
Casework
A. New cabinet boxes shall be made of plywood or solid wood. No particle board boxes will be allowed.
B. All counter tops shall be of solid surface or granite, and in very good condition with no significant scratch es, burns or other imperfections.
C. Face frames, doors and drawer faces shall be solid hardwood. No plastic laminate finishes will be allowed.
Casework – Rehabilitation only
A. All cabinets shall be replaced or in very good condition, within their 15 year useful life, both structurally and in appearance.
Finishes
A. All dwelling unit kitchens shall contain luxury vinyl plank (LVP) flooring. Bathrooms must be floored with LVP, sheet vinyl or ceramic tile to provide a cleanable, impervious surface. Bedrooms, hallways, and living and dining rooms may be floored with carpeting, LVP or hardwood. Wear layer of LVP shall be at least 12 mils inside dwelling units. Tenant unit entries shall be floored with LVP or ceramic tile.
B. In common areas, corridors may be floored with LVP, glue-down carpeting, or carpet tiles. Community rooms and kitchens shall be floored with LVP. Wear layer of LVP in common/commercial areas shall be a minimum of 20 mils thick.
C. Carpet shall meet or exceed the minimum standards as set by HUD’s UM-44D bulletin.
Finishes – Rehabilitation only
A. Floor coverings must be in good, useable condition - no holes, tears, rips, or stains.
B. All exterior and interior surfaces must be painted. No peeling, cracking, chipping, or otherwise failing paint will be allowed. All painted surfaces must be new, or in near new condition and appearance.
C. Acoustic (popcorn) ceiling texture must be removed and refinished with new texture to match wall texture.
Equipment
A. Dishwashers, refrigerator/freezer, oven, stoves and garbage disposals are required in all dwelling unit kitchens.
All appliances must be new or in very good operating condition. All appliances must be Energy Star rated, as applicable. Appliances slated for ADA units shall be per code requirements.
B. SRO projects are encouraged to provide the appliances listed above and will be reviewed and approved on a case-by-case basis.
C. All kitchens must have adequate cabinet and counter space. Installation of shelving for microwaves is required if over-the-range microwaves are not used, with the exception of ADA units.
Furnishings
A. Dwelling units must have window coverings on all windows.
Special Construction
A. Non-habitable structures on property must be painted to match primary buildings and must be structurally sound.
B. Laundry facilities must, at a minimum, be consistent with CTCAC requirements of one washer and dryer for every ten dwelling units for family housing and one for every 15 units for senior and special needs projects. Ten percent of the total number of washer/dryers must be ADA-accessible machines (unless the ADA units contain their own laundry facilities). Solid surface countertops will be required within laundry rooms and countertops shall meet all ADA requirements.
C. Public pool areas shall have self-closing gate(s). Fences and gates at pool areas shall meet applicable current codes and standards. Joints between coping and concrete deck shall be appropriately caulked. Existing pools shall have no cracks in plaster or tile grout joints. The Developer is responsi ble for ensuring pool and surroundings meet all applicable current codes and standards. If a project contains two or more pools, at least one must remain following rehabilitation.
Mechanical/Plumbing
A. Water heaters must be installed per current applicable codes.
B. All common areas and tenant units must have heating and air conditioning. Wall mount (i.e. PTAC units) or central systems are acceptable. Evaporative coolers are not acceptable. HVAC units should be protected from
vandalism, pursuant to discretion of SHRA.
C. Toilets, showerheads, faucets, and mixing valves shall be new and meet current water conservation codes.
D. Tub surrounds must be one unbroken piece per wall and must be of solid surfaces (such as “Swanstone” or other solid acrylic materials, quartz composites), or other similar materials. Fiberglass/acrylic surrounds are acceptable.
Mechanical/Plumbing – Rehabilitation only
A. All toilets, sinks, and tubs shall be chip and stain free.
Electrical
A. All units must have smoke/carbon monoxide detectors installed per current code.
B. Wiring from telephone/data/cable suppliers shall be installed within walls, attic spaces, and/or crawl spaces. No conduits are allowed to be mounted on the exterior of the buildings in new construction.
C. Broadband infrastructure meeting the requirements of 24 CFR 5.100* is required in all new construction projects of 4 or more units.
*Broadband infrastructure means cables, fiber optics, wiring, or other permanent (integral to the structure) infrastructure, including wireless infrastructure, that is capable of providing access to Internet connections in individual housing units, and that meets the definition of “advanced telecommunications capability” determined by the Federal Communications Commission under section 706 of the Telecommunications Act of 1996 (47 U.S.C. 1302).
Electrical – Rehabilitation only
A. All electrical panels shall meet current code.
B. Any rehabilitation projects with un-grounded electrical systems shall be re-wired with grounded systems to meet current code.
C. For rehabilitation projects, switches, outlets and light fixtures shall be replaced with devices that meet current applicable codes.
D. Wiring mounted on the exterior of the surface may be allowed if it is concealed in conduit and conduit is painted to match exterior siding. For projects where exterior siding will be removed, this wiring shall be installed within walls, attic spaces, and/or crawl spaces.
Resident Services Community Space
All properties, regardless of project type (i.e. senior, family, or large family), must devote a minimum of 1,200 s.f. to actual resident services/community space. Resident services space includes common kitchens, computer rooms, meeting rooms and general gathering space. It does not include public restrooms, leasing offices, laundry facilities and lobbies. Common kitchens are required, including refrigerator, stove, garbage disposal, and dishwasher.
For existing buildings, these requirements shall apply unless SHRA deems there to be significant physical constraints.
End of Scope of Development.
RESOLUTION NO. 2022-____
Adopted by the Housing Authority of the City of Sacramento
MIRASOL VILLAGE BLOCK D: A RESOLUTION OF THE HOUSING AUTHORITY OF
THE CITY OF SACRAMENTO DECLARING INTENTION TO REIMBURSE
EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS AND
DIRECTING CERTAIN ACTIONS
BACKGROUND
A. The Housing Authority of the City of Sacramento (the "Authority") intends to issue tax-exempt obligations (the "Obligations") for the purpose, among other things, of making a loan to Twin Rivers Phase 4, L.P., or a limited partnership or a limited liability company related to or formed by McCormack Baron Salazar, Inc. (the "Developer"), the proceeds of which shall be used by the Developer to finance the acquisition, construction and development of a 116-unit multifamily housing residential facility to be located at 475 Pipevine Street, Sacramento, California (the “Project”).
B. United States Income Tax Regulations section 1. 150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, among which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer must declare an intention to reimburse such expenditure.
C. It is in the public interest and for the public benefit that the Authority declare its official intent to reimburse the expenditures referenced herein.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE HOUSING AUTHORITY OF THE CITY OF SACRAMENTO RESOLVES AS FOLLOWS:
Section 1. The Authority intends to issue the Obligations for the purpose of paying the costs of financing the acquisition, construction and development of the Project.
Section 2. The Authority hereby declares that it reasonably expects that a portion of the proceed s of the Obligations will be used for reimbursement of expenditures for the acquisition, construction and development of the Project that are paid before the date of initial execution and delivery of the Obligations.
Section 3. The maximum amount of proce eds of the Obligations to be used for reimbursement of expenditures for the acquisition, construction and development of the Project that are paid before the date of initial execution and delivery of the Obligations is not to exceed $38,000,000.
Section 4. The foregoing declaration is consistent with the budgetary and financial circumstances of the Authority in that there are no funds (other than proceeds of the Obligations) that are reasonably expected to be (i) reserved, (ii) allocated or (iii) otherwis e set aside, on a long -term basis, by or on behalf of the Authority, or any public entity controlled by the Authority, for the expenditures for the acquisition, construction and development of the Project that are expected to be reimbursed from the proceed s of the Obligations.
Section 5. The Developer shall be responsible for the payment of all present and future costs in connection with the issuance of the Obligations, including, but not limited to, any fees and expenses incurred by the Authority in anti cipation of the issuance of the Obligations, any fees required by the California Debt Limit Allocation Committee (“CDLAC”) the cost of printing any official statement, rating agency costs, bond counsel fees and expenses, underwriting discount and costs, trustee fees and expense, and the costs of printing the Obligations. The payment of the principal, redemption premium, if any, and purchase price of and interest on the Obligations shall be solely the responsibility of the Developer. The Obligations shal l not constitute a debt or obligation of the Authority.
Section 6. The appropriate officers or the staff of the Authority are hereby authorized, for and in the name of and on behalf of the Authority, to make an application to CDLAC for an allocation of private activity bonds for the financing of the Project.
Section 7. The adoption of this Resolution shall not obligate (i) the Authority to provide financing to the Developer for the acquisition, construction and development of the Project or to issue the Obligations for purposes of such financing; or (ii) the Authority, of or any departm ent of the Authority or the City of Sacramento to approve any application or request for, or take any other action in connection with, any environmental, General Plan, zoning or any other permit or other action necessary for the acquisition, construction, development or operation of the Project.
Section 8. This resolution shall take effect immediately upon its adoption.
Attachment 8
Attachment 9
Mirasol Village Block D
Project Renderings
Attachment 10
Address
Number of Units
Construction Type
Acreage
Affordability
Unit Mix and Rents¹
30% AMI
(PBV) 60% AMI 80% AMI Exempt
Manager Total
1 Bedroom / 1 Bath 8 7 13 28
2 Bedroom / 1 Bath 23 8 12 1 44
3 Bedroom / 2 Bath 12 20 32
4 Bedroom / 2 Bath 4 8 12
TOTAL 47 43 25 1 116
Square Footage Per Unit Total
1 Bedroom / 1 Bath 619 17,332 sq. ft.
2 Bedroom / 1 Bath 838 36,872 sq. ft.
3 Bedroom / 2 Bath 1,248 39,936 sq. ft.
4 Bedroom / 2 Bath 1,385 16,620 sq. ft.
Common Areas 1,800 sq. ft.
TOTAL 112,560 sq. ft.
Resident Facilities
Permanent Sources
Current Total Per Unit Per Sq Ft
Tax Credit Equity 28,444,890$ 245,215$ 252.71$
Permanent Loan 11,516,945$ 99,284 $ 102.32 $
CalHFA MIP 5,000,000$ 43,103$ 44.42$
County ARPA Loan $ 5,000,000 60,345$ 62.19$ SHRA Loan $ 7,000,000 43,103$ 44.42$ HACS Loan 3,000,000$ 25,862$ 26.65$
HACOS CNI Loan 2,000,000$ 17,241$ 17.77$
HACOS Ground Lease Loan² 468,000$ 4,034$ 4.16$
Deferred Developer Fee 2,245,974$ 19,362$ 19.95$
TOTAL SOURCES 64,675,809$ 557,550$ 574.59$
Permanent Uses
Ground Lease² 520,000$ 4,483$ 4.62$
Construction 45,701,526$ 393,979$ 406.02$
Permits 1,529,488$ 13,185$ 13.59$
Architecture and Engineering 2,177,943$ 18,775$ 19.35$ Soft Cost Contingency 511,611$ 4,410$ 4.55$
Hard Cost Contingency 2,266,799$ 19,541$ 20.14$
First Mortgage Interest 1,672,225$ 14,416$ 14.86$
Legal 807,000$ 6,957$ 7.17$
Financing Costs 1,600,777$ 13,800$ 14.22$
Operating Reserve 860,412$ 7,417$ 7.64$
Transition Reserve 658,037$ 5,673$ 5.85$
Developer Fee 4,800,993$ 41,388$ 42.65$
Insurance, Third Party, Marketing, Other 1,568,998$ 13,526$ 13.94$ TOTAL USES 64,675,809$ 557,550$ 574.59$
Management / Operations
Proposed Developer:
Property Management Company:
Operations Budget: 725,189$ 6,252$ 6.44$
Property Management 98,614$ 850$ 0.88$
Resident Services: 53,561$ 462$ 0.48$
Security: 74,558$ 643$ 0.66$
Taxes: 89,696$ 773$ 0.80$
Replacement Reserves: 58,000$ 500$ 0.52$
TOTAL 1,099,618$ 9,479$ 9.77$
Residents will have access the facilities on neighborhooding lots which include a community park, management offices, resident commuity space, a fitness center, swimming pool and BBQ area.
¹Pursuant to 24CFR 983.301, contract rents approved by HUD may exceed the tax-credit rent limits; and the AMI change is due to income averaging regulation by CDLAC. The tenant rent will not exceed 30% of the household adjusted gross income with PBV. ²The Ground Lease Appraised Value is $520,000; 10% will be paid to HACOS at close of escrow and the remaining loan balance will be $468,000. 25 units at or below 80% of AMI
43 LIHTC units at or below 60% of AMI
47 units at or below 30% of AMI (PBV Public Housing Replacement) Mirasol Village Block D
116
New Construction
3.25 acres (141,570 sq. ft.)
475 Pipevine Street Sacramento, CA 95811
Residential Project Summary
The John Stewart Company
McCormack Baron Salazar
Mirasol Village Block D (Twin Rivers Phase 4) Area Median Number Square Total Gross Utility Net Net Rent per Total Monthly Current Unit Type Income % (AMI) of Units Feet Sq Feet Rent¹ Allowance Rent Sq Foot Net Rent Annual Rent 1 BD/1 BA (PBV) 30% 8 619 4,952 510$ 76$ 434$ 0.70$ 3,472$ 41,664$ 1 BD/1 BA 60% 7 619 4,333 1,020$ 76$ 944$ 1.53$ 6,608$ 79,296$ 1 BD/1 BA 80% 13 619 8,047 1,360$ 76$ 1,284$ 2.07$ 16,692$ 200,304$ 2 BD/1 BA (PBV) 30% 23 838 19,274 612$ 95$ 517$ 0.62$ 11,891$ 142,692$ 2 BD/1 BA 60% 8 838 6,704 1,224$ 95$ 1,129$ 1.35$ 9,032$ 108,384$ 2 BD/1 BA 80% 12 838 10,056 1,632$ 95$ 1,537$ 1.83$ 18,444$ 221,328$ 3 BD/2 BA (PBV) 30% 12 1,248 14,976 706$ 116$ 590$ 0.47$ 7,080$ 84,960$ 3 BD/2 BA 60% 20 1,248 24,960 1,413$ 116$ 1,297$ 1.04$ 25,940$ 311,280$ 4 BD/2 BA (PBV) 30% 4 1,385 5,540 788$ 134$ 654$ 0.47$ 2,616$ 31,392$ 4 BD/2 BA 60% 8 1,385 11,080 1,576$ 134$ 1,442$ 1.04$ 11,536$ 138,432$ 2 BD/1 BA Manager Unit 1 838 838 -$ -$ -$ -$ -$ -$ Totals 116 113,311$ 1,359,732$
¹Pursuant to 24CFR 983.301, contract rents approved by HUD may exceed the tax-credit rent limits; and the AMI change is due to income averaging regulation by CDLAC. The tenant rent will not exceed 30% of the household adjusted gross income with PBV.
Annual 2024 2025 2026 2027 2028 2033 2038 2043 2048
Income Increase Per Unit Year 1 Year 2 Year 3 Year 4 Year 5 Year 10 Year 15 Year 20 Year 25 Gross Potential Rent 2.50% 1,428,568 1,464,283 1,500,890 1,538,412 1,576,872 1,784,086 2,018,530 2,283,781 2,583,889 Other Income 2.50% 6,000 6,150 6,304 6,461 6,623 7,493 8,478 9,592 10,852 Rental Subsidy 2.50% 734,718 753,086 771,914 791,211 810,992 917,563 1,038,138 1,174,558 1,328,904 Less Vacancy 5.00% (71,728) (73,522) (75,360) (77,244) (79,175) (89,579) (101,350) (114,669) (129,737) Effective Gross Income $2,097,558 $2,149,997 $2,203,747 $2,258,841 $2,315,312 $2,619,563 $2,963,795 $3,353,262 $3,793,908 Operating Expenses
Operating Expenses 3.50% 6,252 725,189 750,571 776,841 804,030 832,171 988,359 1,173,860 1,394,177 1,655,845 Property Management 3.50% 850 98,614 102,065 105,638 109,335 113,162 134,400 159,626 189,585 225,168 Resident Services 3.50% 462 53,561 55,436 57,376 59,384 61,463 72,998 86,699 102,972 122,298 Security 3.50% 643 74,557 77,167 79,868 82,663 85,556 101,614 120,685 143,336 170,239 Taxes 2.00% 773 89,696 91,490 93,320 95,186 97,090 107,195 118,352 130,670 144,270 Replacement Reserves 0.00% 500 58,000 58,000 58,000 58,000 58,000 58,000 58,000 58,000 58,000 Total Expenses 9,479 $1,099,618 $1,134,729 $1,171,042 $1,208,599 $1,247,442 $1,462,566 $1,717,222 $2,018,741 $2,375,820 Net Operating Income $997,941 $1,015,269 $1,032,705 $1,050,242 $1,067,870 $1,156,997 $1,246,573 $1,334,522 $1,418,088 Debt Service amount rate amort
Senior Loan $11,516,945 5.00% 30 741,905 741,905 741,905 741,905 741,905 741,905 741,905 741,905 741,905 CalHFA Monitoring Fee $5,000,000 1.92% 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 SHRA Monitoring Fee $38,000,000 0.125% 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Debt Service Subtotal $862,905 $862,905 $862,905 $862,905 $862,905 $862,905 $862,905 $862,905 $862,905 Cash Available after Debt Service $135,035 $152,363 $169,800 $187,337 $204,965 $294,091 $383,668 $471,616 $555,183 Priority Distributions
Limited Partner Management Fee $5,000 3.00% 5,000 5,150 5,305 5,464 5,628 6,524 7,563 8,768 0 Managing General Partner Management Fee $7,500 3.00% 7,500 7,725 7,957 8,195 8,441 9,786 11,344 13,151 0 Administrative General Partner Fee $20,000 3.00% 20,000 20,600 21,218 21,855 22,510 26,095 30,252 35,070 0 Priority Distributions Subtotal 32,500 33,475 34,479 35,514 36,579 42,405 49,159 56,989 0 Net Cash after Priority Distributions $102,535 $118,888 $135,321 $151,823 $168,386 $251,686 $334,508 $414,627 $555,183 Deferred Developer Fee
Principal Balance $2,245,974 1.00% 2,245,974 2,245,974 2,149,546 2,035,720 1,904,254 974,360 0 0 0 Payment 102,535 118,888 135,321 151,823 168,386 251,686 0 0 0 Balance $2,165,898 $2,149,546 $2,035,720 $1,904,254 $1,754,911 $732,417 $0 $0 $0 Net Cash after Deferred Developer Fee $0 $0 $0 $0 $0 $0 $334,508 $414,627 $555,183 Investor Cash Flow
Residential NOI after Debt Service, Priority Distributions & Deferred Developer Fee $0 $0 $0 $0 $0 $0 $167,254 $207,314 $277,591 CalHFA Loan
Principal Balance $5,000,000 1.92% 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 Interest for Period 96,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 Payment 0 0 0 0 0 0 37,221 46,135 61,775
Balance $5,096,000 $5,246,000 $5,396,000 $5,546,000 $5,696,000 $6,446,000 $7,098,793 $7,613,242 $8,048,204 SHRA Loan
Principal Balance $12,000,000 3.00% 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 Interest for Period 360,000 360,000 360,000 360,000 360,000 360,000 360,000 360,000 360,000 Payment 0 0 0 0 0 0 89,329 110,725 148,260
Balance $12,360,000 $12,720,000 $13,080,000 $13,440,000 $13,800,000 $15,600,000 $17,166,704 $18,401,381 $19,445,290 City Housing Authority Loan
Principal Balance $3,000,000 3.00% 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Interest for Period 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 Payment 0 0 0 0 0 0 22,332 27,681 37,065
Balance $3,090,000 $3,180,000 $3,270,000 $3,360,000 $3,450,000 $3,900,000 $4,291,676 $4,600,345 $4,861,322 County Housing Authority Loan
Principal Balance $2,000,000 3.00% 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Payment 0 0 0 0 0 0 14,888 18,454 24,710
Balance $2,060,000 $2,120,000 $2,180,000 $2,240,000 $2,300,000 $2,600,000 $2,861,117 $3,066,897 $3,240,882 County Housing Authority Ground Lease Loan
Principal Balance $468,000 1.92% 468,000 482,040 510,541 554,359 614,807 1,250,971 2,000,000 2,000,000 2,000,000 Payment 0 0 0 0 0 0 3,484 4,318 5,782
Balance $482,040 $510,541 $554,359 $614,807 $693,699 $1,471,551 $2,487,716 $2,765,668 $3,036,181 Mirasol Village Block D (Twin Rivers Phase 4) Cash Flow ProformaAttachment 11
Attachment 12
Family Size 30% AMI 60% AMI 80% AMI
1 person 19,050$ 38,100$ 50,750$
2 person 21,750$ 43,500$ 58,000$
3 person 24,480$ 48,960$ 65,250$
4 person 27,180$ 54,360$ 72,500$
5 person 29,370$ 58,740$ 78,300$
6 person 31,530$ 63,060$ 84,100$
7 person 33,720$ 67,440$ 89,900$
8 person 35,880$ 71,760$ 95,700$
9 person 38,750$ 77,500$ 103,350$
Unit Size 30% AMI 60% AMI 80% AMI
1 Bedroom 510$ 1,020$ 1,450$
2 Bedroom 612$ 1,224$ 1,631$
3 Bedroom² 706$ 1,413$ 1,812$
4 Bedroom 788$ 1,576$ 2,102$
Maximum Gross Income Limits
¹Pursuant to 24CFR 983.301, contract rents approved by HUD may exceed the tax-credit rent limits; and the AMI change is due to income averaging regulation by CDLAC. The tenant rent will not exceed 30% of the household adjusted gross income with PBV. The most restrictive funding program prevails.
Mirasol Village Block D
Rents at 30%, 60% and 80% of Area Median Income (AMI)
Maximum Income and Rent Limits 2022
Maximum Gross Rent Limits¹
Low Income Housing Tax Credits, Mortgage Revenue Bonds, County American Rescue Plan Act funds, Choice Neighborhoods
Implementation and Ground Lease Loan, and City Permanent Local Housing Allocation funds, Housing Authority Funds,
Mixed Income Housing Funds, Housing Trust Funds and Housing Opportunities for Persons With AIDS