City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01468 9/13/2022 Discussion Item 1.
(Housing Authority) Authorizing the Execution and Delivery of a Multifamily Housing Revenue Note in an Aggregate Principal Amount Not to Exceed $16 million for the Financing of a Multifamily Rental Housing Project to be Generally Known as River City Trio; Authorizing the Execution and Delivery of a Funding Loan Agreement, a Project Loan Agreement, a Regulatory Agreement and Declaration of Restrictive Covenants for Each Project Site and Other Documents Relating Thereto; and Approving Other Actions and Matters Relating Thereto
File ID: 2022-01468
Location: 1215 D Street, 2410 C Street and 2517 C Street, District 4 Recommendation: Adopt a Housing Authority Resolution authorizing the Executive Director of the Sacramento Housing and Redevelopment Agency or Executive Director’s designee to 1) Issue, execute, and deliver mortgage revenue bonds of up to $16 million for the financing of the River City Trio Apartments (Project); 2) execute and deliver necessary documents relating thereto and approve all actions taken by officers and agents of the Housing Authority deemed necessary or advisable to issue and deliver the bonds; and 3) make related findings.
Contact: Christine Weichert, Director, Development Finance, (916) 440-1353; [email protected], Sacramento Housing and Redevelopment Agency
Presenter: Larry Jenkins, Housing Finance Analyst, (916) 449-6245, [email protected], Sacramento Housing and Redevelopment Agency
Attachments:
1-Description/Analysis
2-Housing Authority Bond Resolution
3-Exhibit A - Public Disclosures related to conduit revenue obligations 4-Scope of Development
5-Vicinity Map
6-Residential Project Summary
7-Cash Flow Proforma
8-Maximum Income and Rent Limits
Description/Analysis
Issue Detail: On February 1, 2022, the City Housing Authority Board approved the Housing Authority’s intent to issue tax-exempt mortgage revenue bonds to provide acquisition and construction financing for the River City Trio Apartments (Project). Also at the meeting, the City City of Sacramento Page 1 of 5
File ID: 2022-01468 9/13/2022 Discussion Item 1.
Council held the required Tax Equity and fiscal Responsibility Act (TEFRA) hearing for a bond allocation.
On March 16, 2022, the Sacramento Housing and Redevelopment Agency (SHRA) submitted a joint application for tax-exempt mortgage revenue bonds and four percent Low Income Housing Tax Credits (LIHTCs) to the California Debt Limit Allocation Committee (CDLAC). At a meeting on April 27, 2022, CDLAC approved the issuance of mortgage revenue bonds. Approval of the actions outlined in this report is the final step which will allow the Housing Authority to issue up to $16 million in tax-exempt bonds.
The Project consists of three scattered sites located at 1215 D Street in the Alkali Flats neighborhood, 2410 C Street and 2517 C Street in the New Era Park Neighborhoods. Each site has an expiring Housing Assistance Payments (HAP) contract for Project Based Vouchers (PBV) from the US Department of Housing and Urban Development (HUD). With successful financing, the Project will preserve and extend affordability to 53 rehabilitated units and two exempt management units.
The 1215 D Street property was built in 1973 and currently consists of twenty (20) one-bedroom and four (4) two-bedroom units. A one-bedroom unit on the property, adjacent to the existing leasing office, will be converted to a community room for resident services. The 2410 C Street property was built in 1972 and provides thirteen (13) one-bedroom and three (3) two-bedroom units. The 2517 C Street property was built in 1973 and provides thirteen (13) one-bedroom and three (3) two-bedroom units. The three sites are each comprised of two (2) two-story, garden-style residential buildings, constructed on slab grade with conventional wood framing. The façade consists of cement plaster stucco with painted wood siding and trim accents. The leasing office unit for all three sites is located at the 1217 D Street property. A summary of each site is provided in the following table:
River City Trio Sites Addresses One
Bedroom
Two
Bedroom
Total
Units
12th & D Street (Leasing Office
and one-bedroom unit converted
to a Community Room)
1213, 1215, and 1217
D Street
19 4 23
24th & C Street (includes one two
-bedroom exempt management
unit)
2408 and 2410 C Street 13 3 16
25th & C Street (includes one two
-bedroom exempt management
unit)
2517 & 2519 C Street 13 3 16
Total 45 10 55
The scope of work will include both interior and exterior rehabilitation. Interior rehabilitation will include: replacing components that are in disrepair, kitchen and bath remodels, adding LED light fixtures, upgrading seven existing units to be fully accessible for the mobility impaired, upgrading three existing units for the auditory/visual impaired, inserting energy efficient HVAC systems and re- piping of interior domestic lines. Separately, at 1215 D Street, a former two-bedroom management unit will be converted to an affordable residential unit and a former residential one-bedroom unit will be converted to a community room. The community room will be located next to the existing leasing City of Sacramento Page 2 of 5
File ID: 2022-01468 9/13/2022 Discussion Item 1.
office and will become an 850-square foot, fully accessible, community space for residents from all three sites. Construction of a community room is a funding requirement by both the California Tax Credit Allocation Committee (CTCAC) and SHRA.
Exterior renovations will include: repairing and painting of existing stucco, replacing windows and roof membranes, applying new waterproofing coatings at exterior balconies, and updating irrigation and landscaping. The rehabilitation will also provide new accessible routes and upgrades to the existing leasing office and common spaces. A more detailed scope of development is attached hereto as Attachment 4. A vicinity map of the Project is attached hereto as Attachment 5.
Developer
: Vitus Group (The Developer) is an experienced owner and manager of over 100 affordable and market rate rental housing developments, consisting of over 12,700 units, throughout the nation. The Developer has more than 25 years of experience in affordable housing, and has developed over 1,350 housing units throughout California. The Developer has extensive experience in financing projects with tax credits, tax-exempt mortgage revenue bonds, Project Based Vouchers, and other public and private funding sources.
Property Management
: Aperto Property Management (Aperto) is the proposed management agent of the Project. Aperto has over 30 years of property management experience with over 100 properties in California. Their portfolio contains 12,500 affordable and market rate residential units. Aperto’s property management plan, including daily operations, leasing procedures, maintenance, and eviction procedures, have been approved by SHRA prior to close of construction financing.
Resident Services
: Resident services will be provided by Embrace Foundation (Embrace). Embrace currently provides resident services to over 25 affordable housing communities and to more than 2,450 households in California and Texas. Embrace will provide a minimum of at least 10 hours of on -site resident services per week, including 6 hours of after school programs. Programs will be tailored to resident needs. Services will be provided by an on-site services coordinator and will include social services and enrichment programs. SHRA staff has reviewed Embrace’s qualifications and resident services plan, and has concluded that both meet SHRA requirements.
Relocation Plan
: The relocation plan for the Project has been approved by SHRA.
Security Plan: SHRA staff has reviewed and approved the security plan, which includes installation of web-based security cameras and exterior lighting.
Project Financing
: The project will be financed through four percent LIHTCs, bond financing, a seller’s note and a deferred developer fee. The financing structure of the Project includes 4% LIHTC, tax-exempt mortgage revenue bonds, a conventional loan, net operating income and a deferred developer fee. In addition, the Project will have a new 20-year HAP contract from HUD, which will provide a source of income to supplement rents paid by residents. The residents will pay no more than 30% of their income for rent each month with the HUD project-based voucher paying the difference between the resident’s payment and a market rent (which will be calculated by HUD). The funding sources and uses are contained in the Residential Project Summary attached as Attachment
6. The Cash Flow Proforma is provided in Attachment 7.
Low-Income Set-Aside Requirements
: As a condition of receiving tax credits, Federal Law requires City of Sacramento Page 3 of 5
File ID: 2022-01468 9/13/2022 Discussion Item 1.
rental units be set aside for targeted-income groups. Income restrictions from LIHTC financing require households not have an income above 60 percent of Area Median Income (AMI). Additionally, SHRA requires 20 percent of the units to be restricted to households with an income no greater than 50 percent AMI. Maximum income and rents can be found in Attachment 8. Project affordability restrictions will be specified in the regulatory agreements with The Developer. The anticipated funding sources and their affordability requirements are summarized in the following table:
Unit Type Units % of Units Affordability Restriction¹
4% LIHTC and Tax Exempt
Bonds
6 11% Very Low Income 50% of
AMI
4% LIHTC and Tax Exempt
Bonds
47 85% Low Income 60% of AMI
Exempt 2 4% Management Units
Total 55 100%
¹The tenant rent will not exceed 30% of the household adjusted gross income with Project Based Vouchers.
Policy Considerations: The recommended actions are consistent with a) SHRA’s approved Multifamily Lending and Mortgage Revenue Bond Policies, Priority 1 - Preservation of Existing Affordable Housing at Risk of Losing Affordability, Preservation of projects which are currently publicly subsidized, but at risk of losing affordability restrictions due to sale, termination, or public subsidy reductions; and b) the 2021-2029 Housing Element, Goals H-6.1 Preserving Existing Affordable Housing and H-8.3 Encourage Accessible Housing Near Transit and Amenities.
Economic Impacts: This multifamily residential project is expected to create 52.17 total jobs (29.29 direct jobs and 22.88 jobs through indirect and induced activities) and create $4,576,488 in total economic output ($2,812,517 of direct output and another $1,763,971 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.
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed project has been reviewed for compliance with CEQA and has been determined to be Exempt pursuant to 14 CCR § 15301.
National Environmental Policy Act (NEPA): The proposed project has been reviewed for compliance with NEPA and has been determined to be Categorically Excluded pursuant to 24 CFR 58.35(a)(3)(ii) and converts to Exempt pursuant to 58.34(a)(12) because there are no circumstances which require compliance with any of the federal laws and authorities cited at §58.5.
City of Sacramento Page 4 of 5
File ID: 2022-01468 9/13/2022 Discussion Item 1.
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/Committee Action: Not applicable.
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 of Sacramento and are consistent with SHRA’s approved Multifamily Lending and Mortgage Revenue Bond Policies and the City of Sacramento’s 2021-2029 Housing Element.
Financial Considerations: 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 of 0.125 percent of the bond amount. The total administrative fee will not exceed $25,000 annually for the affordable units during the regulatory agreement term. The Developer will be responsible for payment of all costs, fees, and deposits relating to the bond application. Mortgage Revenue Bonds do not represent a financial obligation of SHRA, Housing Authority, or City of Sacramento. The law firm, Orrick, Herrington and Sutcliffe, LLP, will serve as bond counsel for the Housing Authority.
Local Business Enterprise (LBE): Local Business Enterprise requirements do not apply to this report. Minority and Women’s Business Enterprise requirements and Section 3 will be applied to all activities to the greatest extent feasible and as required by federal funding and in accordance with SHRA’s Section 3 Economic Opportunity Plan. The Developer and general contractor will work with SHRA’s Section 3 Administrator, the Sacramento Employment and Training Agency, the Greater Sacramento Urban League or similar entities, to promote employment opportunities.
City of Sacramento Page 5 of 5
RESOLUTION NO. 2022 -
Adopted by the Housing Authority of the City of Sacramento on date of
A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SACRAMENTO
AUTHORIZING THE EXECUTION AND DELIVERY OF A MULTIFAMILY HOUSING REVENUE NOTE IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $16
MILLION FOR THE FINANCING OF A MULTIFAMILY RENTAL HOUSING PROJECT TO BE GENERALLY KNOWN AS RIVER CITY TRIO; AUTHORIZING THE
EXECUTION AND DELIVERY OF A FUNDING LOAN AGREEMENT, A PROJECT
LOAN AGREEMENT, A REGULATORY AGREEMENT AND DECLARATION OF
RESTRICTIVE COVENANTS FOR EACH PROJECT SITE AND OTHER
DOCUMENTS RELATING THERETO; AND APPROVING OTHER ACTIONS AND
MATTERS RELATING THERETO
BACKGROUND
A. The Housing Authority of the City of Sacramento (the “Authority”) is authorized by Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code (commencing with Section 34200) (the “Act”) to issue and sell revenue obligations for the purpose of making loans or otherwise providing funds to finance the acquisition, construction, rehabilitation and development of multifamily residential rental housing projects, including units for households meeting the income limits set forth in the Act.
B. The governing board of the Authority (the “Board”) hereby finds and declares th at it is necessary, essential and a public purpose for the Authority to finance multifamily housing projects pursuant to the Act, in order to increase and maintain the supply of multifamily housing in the City of Sacramento (the “City”) available to persons and families within the income limitations established by the Act.
C. The proceeds of such obligations issued by a housing authority may be loaned to a nongovernmental owner of multifamily housing, who shall be responsible for the payment of such obligations, to allow such nongovernmental owner to reduce the cost of operating such housing and to assist in providing housing for low and very low income persons.
D. River City Housing Partners, LP, a California limited partnership, and entities related thereto (collectively, the “Borrower”), has requested the Authority execute and deliver its Housing Authority of the City of Sacramento Multifamily Housing Revenue Note (River City Trio) 2022 Issue A (the “Note”) and loan the proceeds thereof to the Borrower to finance the acquisition and rehabilitation of a 56 -unit multifamily rental housing development, to be located on three scattered sites in the City (each a “Project Site”), and to be commonly known as River City Trio (collectively, the “Project”).
E. On June 15, 2022, the Authority received an allocation in the amount of $8,34 million (the “Allocation Amount”) from the California Debt Limit Allocation Committee in connection with the Project.
F. The City Council of the City has by resolution approved the issuance of the Note by the Authority, following notice and a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended.
G. The Authority is willing to execute and deliver the Note in an aggregate principal amount not to exceed $16 million, provided that the portion of such Note executed and delivered as federally tax -exempt obligations shall not exceed the Allocation Amount, and to loan the proceeds thereof to the Borrower to assist in providing financing for the Project, which will allow the Borrower to reduce the cost of the Project and to assist in providing housing for persons of low and very low income.
H. The Note will be executed and delivered with Merchants Capital Corp. (the “Funding Lender”), as the initial holder of the Note, in accordance with the Authority’s policies.
I. The Federal Home Loan Mortgage Company, a shareholder -owned government- sponsored enterprise (“Freddie Mac”) has entered into an agreement with the Funding Lender whereby Freddie Mac has committed to facilitate the financing of the Project by purchasing the funding loan as evidenced by the Note from the Funding Lender subject to satisfaction of certain conditions as described in the Funding Loan Agreement (defined below).
J. There have been prepared and made available to the Board the following documents required for the execution and delivery of the Note, and such documents are now in substantial form and appropriate instruments to be executed and delivered for the purposes intended:
(1) Funding Loan Agreement (the “Funding Loan Agreement”) to be entered into among the Funding Lender, U.S. Bank Trust Company, National Association (the “Fiscal Agent”) and the Authority;
(2) Project Loan Agreement (the “Project Loan Agreement”) to be entered into among the Authority, the Fiscal Agent and the Borrower;
(3) Regulatory Agreement and Declaration of Restrictive Covenants (the “Regulatory Agreement”) to be entered into between the Authority and the Borrower, with respect to each Project Site related to the Project.
K. The Authority hereby finds and declares that this resolution is being adopted pursuant to the powers granted by the Act.
L. All conditions, items and acts required to exist, to have happened and to have been performed precedent to and in connection with the execution and delivery of the Note as contemplated by this resolution and the documents referred to herein will exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Act.
M. Pursuant to Section 5852.1 of the California Government Code, the Authority, as a conduit financing provider, has received certain representations and good faith estimates from the Borrower and has disclosed such good faith estimates as set forth on Exhibit A attached hereto.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE HOUSING AUTHORITY OF THE CITY OF SACRAMENTO RESOLVES AS FOLLOWS:
Section 1. The Authority hereby finds and declares that the above recitals are true and correct.
Section 2. Pursuant to the Act and the Funding Loan Agreement, the execution and delivery of a Note designated as “Housing Authority of the City of Sacramento Multifamily Housing Revenue Note (River City Trio) 2022 Issue A,” is hereby authorized, including, if and to the extent necessary, one or more sub-series, with appropriate modifications and series and sub-series designations as necessary, in an aggregate principal amount not to exceed $16 million; provided that the aggregate principal amount of any tax-exempt Note issued shall not exceed the Allocation Amount.
Section 3. The Note shall be executed and delivered in the form set forth in and otherwise in accordance with the Funding Loan Agreement, and shall be executed on behalf of the Authority by the manual or facsimile signature of the Executive Director of the Authority, or a designee thereof, acting alone (each an “Authorized Officer”), with such changes, deletions and insertions as may be approved by such Authorized Officers and legal counsel to the Authority, such approvals being conclusively evidenced by the execution and delivery thereof, and the Clerk of the Sacramento Housing and Redevelopment Agency or such designee (the “Clerk”) is hereby authorized and directe d, if required, to attest the Note in said form by manual or facsimile signature thereof. The Note shall be secured in accordance with the terms of the Funding Loan Agreement presented to this meeting, as hereinafter approved.
Section 4. Payment of the principal and purchase price of, and prepayment premium, if any, and interest on, the Note shall be made solely from amounts pledged thereto under the Funding Loan Agreement, and the Note shall not be deemed to constitute a debt or liability of the Authority, the City of Sacramento, the Sacramento Housing and Redevelopment Agency or any commissioners of the Board.
Section 5. The Funding Loan Agreement in the form on file with the Clerk, is hereby approved. The Authorized Officers, each acting alone, are hereby authorized for and on behalf of the Authority to execute by manual signature and deliver the Funding Loan Agreement with such changes, additions or deletions as may be approved by such Authorized Officer and legal counsel to the Authority, such approvals to be conclusively evidenced by the execution and delivery thereof. The date, maturity date or dates (which shall not be more than 45 years from the date of execution and delivery thereof), interest rate or rates (which shall not exceed 12%), interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of prepayment and other terms of the Note shall be as provided in the Funding Loan Agreement as finally executed.
Section 6. The Project Loan Agreement in the form on file with the Clerk, is hereby approved. The Authorized Officers, each acting alone, are hereby authorized for and on behalf of the Authority to execute by manual signature and deliver the Project Loan Agreement with such changes, additions and deletions as may be approved by such Authorized Officer and legal counsel to the Authority, such approvals to be conclusively evidenced by the execution and delivery thereof.
Section 7. The Regulatory Agreement in the form on file with the Clerk, is hereby approved. The Authorized Officers, each acting alone, are hereby authorized for and on behalf of the Authority to execute by manual signature and deliver the Regulatory Agreement for each Project Site with such changes, additions or deletions as may be approved by such Authorized Officer and legal counsel to the Authority, such approvals to be conclusively evidenced by the execution and delivery thereof.
Section 8. The Note, when executed, shall be delivered to the Fiscal Agent for authentication. The Fiscal Agent is hereby requested and directed to authenticate the Note by executing the certificate of authentication appearing thereon, and to deliver the Note, when duly executed and authenticated, to or at the direction of the purchasers thereof in accordance with written instructions executed and delivered on behalf of the Authority by an Authorized Officer, which any Authorized Officer, acting alone, is hereby authorized and directed to execute and deliver such instructions to the Fiscal Agent. Such instructions shall provide for the delivery of the Note to the purchasers thereof upon payment of the purchase price thereof.
Section 9. All actions heretofore taken by the officers and agents of the Authority with respect to the financing of the Project and the execution and delivery of the Note are hereby approved, confirmed and ratified, and the proper officers of the Authority, including the Authorized Officers, are hereby authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful execution and delivery of the Note in accordance with this Resolution, including but not limited to one or more tax certificates, loan related documents, assignments of deed of trust, subordination or intercreditor agreements, any endorsement, allonge or assignment of any note and such other documents described in the Funding Loan Agreement, the Project Loan Agreement and the Regulatory Agreement and other documents herein approved.
Section 10. All consents, approvals, notices, orders, requests and other actions permitted or required by any of the documents authorized by this Resolution, whether before or after the execution and delivery of the Note, including without limitation any of the foregoing that may be necessary or desirable in connection with any default under or amendment of such documents, any transfer or other disposition of the Project, any addition or substitution of security for the Note or any prepayment of the Note, may be given or taken by any Authorized Officer, as appropriate, without further authorization by the Board, and each such officer is hereby authorized and directed to give any such consent, approval, notice, order or request and to take any such action that such officer may deem necessary or desirable to further the purposes of this Resolution and the financing of the Project; provided such action shall not create any obligation or liability of the Authority other than as provided in the Funding Loan Agreement and other documents approved herein.
Section 11. This Resolution shall take effect immediately upon its adoption.
Table of Contents:
Exhibit A – Good Faith Estimate – Public Disclosures Relating to Conduit Revenue Obligations
EXHIBIT A
PUBLIC DISCLOSURES RELATING TO CONDUIT REVENUE OBLIGATIONS
Pursuant to California Government Code Section 5852.1, the borrower (the “Borrower”) identified below has provided the following required information to the Housing Authority of the City of Sacramento (the “Housing Authority”) prior to the Housing Authority’s regular meeting (the “Meeting”) of its Housing Authority Board (the “Board”) at which Meeting the Board will consider the authorization of conduit revenue obligations (the “Bonds”) as identified below.
1. Name of Borrower: River City Housing Partners, LP, a California limited partnership
2. Authority Meeting Date: September 13, 2022
3. Name of Bond Issue / Conduit Revenue Obligations: Not to exceed $16,000,000 Housing Authority of the City of Sacramento Multifamily Housing Revenue Bonds (Pass-Through – River City Trio).
4. X Private Placement Lender or Bond Purchaser, __ Underwriter or __ Financial Advisor (mark one) engaged by the Borrower from which the Borrower obtained the following required good faith estimates relating to the Bonds:
(A) The true interest cost of the Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the new issue of Bonds (to the nearest ten- thousandth of one percent): 4.75%
(B) The finance charge of the Bonds, which means the sum of all fees and charges paid to third parties: $389,105
(C) The amount of proceeds received by the public body for sale of the Bonds less the finance charge of the bonds described in subparagraph (B) and any reserves or capitalized interest paid or funded with proceeds of the Bonds:
$8,040,895
(D) The total payment amount, which means the sum total of all payments the borrower will make to pay debt service on the Bonds plus the finance charge of the Bonds described in subparagraph (B) not paid with the proceeds of the Bonds (which total payment amount shall be calculated to the final maturity of the Bonds): $18,846,426
This document has been made available to the public at the Meeting of the Housing Authority.
River City Trio Scope of Development Page 1
Attachment 4
SCOP
E OF DEVELOPMENT
RENOVATIONS FOR RIVER CITY TRIO Sacramento, CA
Vitus Development Group
GENERAL DESCRIPTION:
River City Trio consists of a scattered site development located in Sacramento, CA.
Originally built in the early 1970’s, the developments consist of 1 and 2-bedroom garden- style apartments spread across 3 nearby lots. Currently, there is a total of 4 buildings including 56 units with a mix of 46 one-bedroom and 10 two-bedrooms units. After construction, a one-bedroom unit will be converted as a community room for resident services at the 1217 D Street site, there will be a total of 55 units with a mix of 45 residential one-bedroom and 8 two-bedroom residential units, and there are two two-bedroom exempt management units. The buildings are two story, slab on grade with conventional wood framing. The façade consists of cement plaster stucco with painted wood siding and trim accents. The combined existing leasing office and new community room will be at 1217 D Street, Sacramento, CA 95814.
The scope of work will include interior and exterior renovations and replacing components that are in disrepair, including kitchen and bath remodels, LED light fixtures, as well as energy efficient HVAC systems and interior re-piping of domestic lines. Exterior renovations will include minor repair and painting of existing stucco, replacing windows, roof membranes, and applying new waterproofing coatings at exterior balconies. The scope of work includes upgrading seven (7) existing units (10% of each site) to be fully accessible for the mobility impaired and upgrading three (3) existing units (4%) for the auditory/visual impaired. The renovations will also provide new accessible routes, and upgrades to the existing leasing office and common spaces. The rehab will comply with the design standards of the 2021 CTCAC QAP.
CONTENTS:
I. Lot Maps and Address Lists
II. General Site Scope of Work
III. All Buildings – Exteriors
IV. Residential Buildings – Unit Interiors
V. AV and
Accessible Unit Interior Upgrades
VI. Leasing Office Upgrades
River City Trio Scope of Development Page 2
I. Lot Maps and Address List (N.T.S.):
Name Addresses # of Bldgs 1BR Units 2BR Units Total # of Units 12th & D Street Apartments
(Leasing Office & one-bedroom
unit converted to Community
Room for resident services)
1213, 1215, and 1217 D Street 2 19 4 23
24th & C Street Apartments
(includes one two-bedroom
exempt management unit)
2408 and 2410 C Street 1 13 3 16
25th & C Street Apartments
(includes one two-bedroom
exempt management unit)
2517 & 2519 C Street 1 13 3 16
Grand Total 4 45 10 55
River City Trio Scope of Development Page 3
II. General Exterior Site Work
1. Concrete Paving / Sidewalks:
a) Repair damaged and failing sidewalks within property lines. Provide new concrete sidewalks where required.
b) Remove and replace and or provide new sidewalks at newly designated accessible units and at leasing offices / common areas, including any necessary curbs, curb cuts, new sidewalks, and curb ramps as designated on plans.
c) Provide new concrete parking spaces at new designated accessible parking that connects routes to newly designated units. d) Prep, Restripe and Sealcoat existing parking lots complete including ADA parking spaces, aisles, and crosswalks.
2. Exterior Stairs:
a) Provide new steel closure plates at all existing open risers. b) Prep, prime and paint all previously painted surfaces metal stair components with exterior grade paint (color to be selected by owner or match existing).
3. Lawns & Plantings:
a) Remove all trees within 6 ft of buildings.
b) Trim all tree limbs that have drip line extending over buildings or extend within 3 feet of buildings.
c) Replace all existing dry rotted planting beds throughout. d) Provide positive grading away from buildings and at sidewalks and parking lots to enhance the natural or originally intended storm water drainage design.
e) Repair existing irrigation systems and retrofit with programable rain sense timers. All existing systems to be brought into working order. Verify on site and notify architect and owner if systems are beyond repair or nonexistent.
4. Signage:
a) Provide new building and unit signage and mailbox identification signage. b) Provide new ADA compliant signage throughout including parking signs.
5. Postal Facilities: Remove existing pedestal mailboxes and replace with new ADA compliant pedestal mailboxes along new designated accessible route. a) Security/Safety:
(1) Replace existing roof access safety cover at existing ladder. (2) Replace existing exterior light pole heads, wall packs and exterior site lighting with new LED lights
River City Trio Scope of Development Page 4
(3) CCTV (N.I.C. – to be provided by Owner): New CCTV cameras with 24/7 NVR recording system to be provided by the owner through their service provider, Watch Tower Security. Coverage must include all property access points in addition to other low visibility areas as determined by WTS.
b) Community Resources:
(1) Provide upgrades to the existing common laundry area. Replace existing connections and provide new connections where required to allow for a minimum of one washer/dryer for every 10 units (provide a minimum of one ADA compliant front-loading
washer/dryer per site with proper clearances). Equipment to be provided by Owner.
(a) 12th & D ST: 23 units = Total of six washers and dryers. (b) 24th & C ST: 12 units = Total of 3 washers and dryers. (c) 24th & C ST: 12 units = Total of 3 washers and dryers. (2) Provide new fully accessible community room at 12th and D Street for the entire scattered site residents:
(a) Modify existing 1BR unit located adjacent to existing manager’s office to provide a new combined general gathering space for resident use. (b) Space must include an ADA / CBC compliant common kitchen, including refrigerator, stove, garbage disposal, and dishwasher.
(c) Renovate bathroom: remove tub shower and provide new ADA /CBC compliant lavatory and water closet.
(d) Furnishings to be provided by Owner and comply with SHRA requirements.
c) Provide an accessible route as shown on plans that connects new amenities, new HC parking spaces, and newly designated accessible units.
River City Trio Scope of Development Page 5
III. All Buildings – General Exteriors
1. Roofing (All buildings):
a) At TPO Roofs:
(1) Prep and repair existing single layer of roofing.
(2) Install new metal edge flashing, roof jacks, parapet caps, etc. (3) install new 60 mil TPO overlay with 3-year subcontractor warranty and 20-year manufacturer warranty. Provide all required accessories and install per manufactures specifications. (4) Remove and replace existing sheet metal shrouds at mansards. b) At Asphalt Shingles (mansards):
(1) Remove all shingles, waterproofing, flashing to existing decking. (2) Remove and replace damaged sheathing in disrepair to match existing.
(3) Install new waterproofing membrane, flashing, ice and water shields, drip edges, and blind metal flashing at valleys. (4) Install new anti-fungal, architectural composition shingles with a minimum 30-year warranty.
2. Exterior Cladding:
a) Stucco:
(1) Repair minor damaged areas with cement plaster patch. Finish to be seamless with adjacent surface.
(2) Seal all through wall penetrations and replace all exterior wall vents. (3) Prep and paint all patched exterior surfaces and all paintable surfaces that are newly installed.
3. Sealants and Caulking: Seal at all exterior doors, windows, plumbing, and electrical penetrations to prevent moisture and air leakage.
4. Exterior Balconies and Exterior Stair Landings:
a) Clean, prep, and install new waterproof traffic coating with slip resistant finish at all exterior balconies and stair landings.
b) Repair damaged and cracked areas of existing balconies and landings in accordance with the traffic coating manufacturers specifications prior to installation.
5. Exterior Doors:
a) Entry Doors: Remove and replace all unit and common area entry doors with new 1 ¾” thick hollow metal entry doors with no-rot wood frames, including new door hardware (lever, eye viewers, deadbolt – Grade 3) and weather- stripping. Exterior doors for fully accessible units must include spring hinges and compliant thresholds. RE: Plans.
River City Trio Scope of Development Page 6
6. Windows:
a) Remove and replace all existing window units with new Energy Star rated vinyl windows. New windows to match existing styles and have LOW-E double pane insulated glass.
b) Provide new trim and flashing. Install a continuous bead of silicone caulk behind all nail fins before installing new vinyl windows per manufacturer’s specifications.
c) Provide safety / tempered glass at select locations to comply with current building code.
d) All windows to receive new exterior screens and interior blinds. e) At bedroom windows where existing sliding glass windows provide less than
5.7 net clear opening as required by current building code for emergency egress. Use largest retrofit window that will fit into the existing rough opening (rough opening is not to be modified).
7. Lighting: Provide new LED exterior building and exterior unit entry light fixtures at existing locations.
IV. Residential Buildings –Interiors
1. Finishes:
a) Gyp Board (walls): Repair all areas of gyp bd walls and ceilings in disrepair.
Prep and paint entire unit (all rooms).
b) Gyp Board (ceilings): due to existing texture of ceilings paint (encapsulate) existing ceilings in accordance with the owner O&M report. c) Flooring (all rooms and closets):
(1) Remove existing carpets and pads where installed. Prep areas to allow for seamless installation of new vinyl flooring in all rooms. (2) Prep existing vinyl floors and install new LVT (click lock floating) plank flooring with min 12mil wear layer throughout entire unit. (3) Replace all existing base boards with new painted base boards including new painted shoe mould throughout.
d) Paint Finishes: Kitchens, Bathrooms, New Doors, New Shoe moulds and Trim to receive semi-gloss paint finish. Match existing for all other rooms. Provide new full unit paint.
2. Interior Doors:
a) Remove and replace existing interior doors and frames that are in disrepair.
Allow for replacement of 2 doors per unit with new hollow core wood doors. b) New door style to match existing interior doors that will remain within each unit (unit x unit).
c) Provide new brushed nickel interior door hardware including hinges at new doors. (level 3, passage / privacy levers).
River City Trio Scope of Development Page 7
d) All new and existing doors to be undercut 3/4" prepped primed and painted on all sides with semi-gloss finish.
3. Window Treatments: Provide new neutral color horizontal mini-blinds at all windows,
4. Electrical:
a) Devices: Switches, Receptacles and GFCI’s:
(1) Install new dedicated outlets at ranges and range hoods. (2) Install new GFCI outlets at code required locations (kitchens and baths).
b) Smoke Detectors: Provide new hardwired, looped, and interconnected combo CO/smoke detectors in all units. 1 hardwired combo CO/ smoke detector outside sleeping rooms. 1 hardwired power wirelessly (Bluetooth) interconnected smoke detector per bedroom.
c) Electrical Wiring:
(1) Remove and replace all existing subpanels in all units (including arc fault breakers).
(2) New unit subpanels located in newly designated accessible units to be installed within reach range.
(3) Install Title 24 lighting controls in all units.
(4) Remove existing safe‐off heat lamps in bathrooms.
5. Mechanical:
a) HVAC:
(1) Remove existing roof top equipment, packaged condensing units, and grilles. Existing line sets and ductwork to remain (duct work to be cleaned).
(2) Provide new Energy Star 2-ton roof top HVAC - Packaged DX systems to comply with CTCAC energy efficiency requirements. New components to be:
(a) Minimum; (80% AFUE)
(b) Minimum; ≥14 SEER ENERGY STAR certified AC
(3) Vacuum and clean existing line sets.
(4) Provide new roof top units (replace curbs where required) (5) Seal all accessible duct connections and plenums.
(6) Provide new grilles at existing locations.
b) Range Hoods: Provide new Energy Star rated range hoods and install new range queens.
c) Bath Exhaust Fan: Remove and Replace existing bathroom exhaust fan.
Install new Energy STAR Rated exhaust fan vented to exterior.
6. Plumbing:
a) Hot Water:
River City Trio Scope of Development Page 8
(1) Replace existing water heaters with new high efficiency 100-gallon (82% EFF) gas water heater. Include new overflow drain pan, gas valve and flex pipe. Water valves and stainless-steel supply lines will be replaced.
b) Replumb Apartment Units: Remove and replace all existing galvanized domestic piping with new pex and copper piping. New piping to be run in concealed, insulated wall or ceiling cavities.
c) Replace all plumbing fixtures in all units with new EPA WaterSense certified fixtures:
(1) shower heads < 1.5 gpm
(2) bathroom faucets < 1.5 gpm
(3) kitchen faucets < 1.5 gpm,
(4) toilets ≤ 1.28 gpf
d) Replace all angle stops, and hot and cold-water supply lines from angle stop to fixture.
e) Replace existing washer boxes and connections at common laundry areas.
7. Living / Dining Rooms:
a) Lighting: New Energy Star LED light fixtures
b) Paint: New paint throughout. RE: Finishes
c) Flooring: New flooring and base boards. RE: Finishes.
8. Kitchens:
a) Refrigerators: New Energy Star 16 cu. Refrigerators. b) Ranges:
(1) New 30” gas ranges.
(2) New E-Star over the range hood / microwave combos.
(3) Provide new range queens at all hoods.
(4) Install new anti-tip devices at all ranges.
*Note: All appliances to be energy star rated where applicable. c) Millwork (Cabinets):
(1) Remove and replace all existing cabinetry and countertops. (2) New cabinets to comply with CTCAC and SHRA standards. All new cabinet boxes to be solid wood or plywood construction. New face frames, cabinet doors, and drawer fronts to be solid wood (species and finish TBD).
(3) Provide new microwave range hood combos and countertop microwaves at new accessible units.
(4) New countertops to be solid surface with matching or integral backsplash (and side splash where applicable).
d) Plumbing Fixtures:
River City Trio Scope of Development Page 9
(1) New double bowl stainless steel kitchen sink with strainer, Water Sense lever faucet, new P-trap, angle stops, hot and cold-water supply lines.
(2) Supply and install new 1/3 HP disposals in all units. e) Flooring: New flooring and base boards . RE: 1. Finishes. f) Paint Finish: repair as required, prep, and paint with semi-gloss finish. RE: 1.
Finishes.
g) Lighting: Replace light fixtures with Energy Star LED fixtures.
9. Bedrooms:
a) Lighting: Replace existing lights with new Energy Star LED interior lighting fixtures.
b) Smoke Detector: Install hardwired interconnected combo CO/smoke detectors in all dwelling units. Provide one per living room and one new interconnected smoke detector per bedroom.
c) Flooring: New flooring RE: 1. Finishes.
d) Paint Finish: Repair gyp bd. as required, prep, and paint with flat finish. RE: 1.
Finishes.
10. Bathrooms:
a) Millwork: Remove and Replace all cabinetry including cultured marble vanity tops to comply with CTCAC standards. All new cabinets to be solid wood construction with solid wood facing, doors, and drawers. b) Tubs / Showers:
(1) Replace existing damaged tile at existing surrounds. (2) Clean, prep, and replace existing tubs.
(3) Replace existing tub valves, trim and shower heads. c) Toilet: Replace commode with new EPA Watersense units with seats. d) Lavatory: Replace bath lavatory sink & faucet with new P-traps and supply lines.
e) Accessories: Remove and replace all accessories with new bath accessories.
Supply and Install (secure to studs or use toggle bolts):
(1) TP Holders
(2) Towel Bars
(3) Mirrored Medicine Cabinets
(4) Shower Rods, Vinyl Curtains and Rings.
f) Flooring: New flooring and base boards. RE: 1. Finishes. g) Paint Finish: repair as required, prep, and paint with semi-gloss finish. RE: 1.
Finishes.
h) Exhaust Fan: Remove and Replace existing exhaust fan. Install new Energy STAR Rated exhaust fan vented to exterior.
i) Lighting: Replace existing light fixtures with new LED Energy Star fixtures.
River City Trio Scope of Development Page 10
V. AV & Accessible Unit Interior Upgrades / Conversions
1. Three (3) existing units (4%) to receive hearing and sight impaired upgrades. (1 unit at each site)
a) Horns and Strobes for smoke and smoke/co detectors
b) Strobes for new AV doorbells.
2. Seven (7) existing units (10%) to be converted into fully accessible units to comply with UFAS Standards.
• Three (3) units to be converted at 12th and D Street Apartments • Two (2) units to be converted at 24th and C street Apartments • Two (2) units to be converted at 25th and C street Apartments In addition to the applicable scope found in section IV, below are additional specific requirements for the accessible unit upgrades / conversions at existing 1 and 2-bedroom ground floor units.
a) All switches and receptacles to be UFAS (ADA) compliant in height. b) Unit entry doors and common space entry doors to have UFAS (ADA) compliant width, hardware and thresholds.
c) Accessible routes of travel to the dwelling units with accessible 34" minimum clear-opening-width entry, and 34” clear width for all doors on an accessible path. (Nominal 36” wide door kit to be used)
d) Interior doors with lever hardware and 42" minimum width hallways. e) Fully accessible bathrooms complying with California Building Code (CBC) Chapter 11(A) and 11(B). In addition, a 30”x48” clearance parallel to and centered on the bathroom vanity or wall hung sink.
f) Accessible kitchens with 30”x48” clearance parallel to and centered on the front of all major appliances and fixtures (refrigerator, oven, and sink) g) Accessible master bedroom size shall be at least 120 square feet (excluding the closet), shall accommodate a queen size bed, shall provide 36” in clearance around three sides of the bed, and shall provide required accessible clearances, free of all furnishings, at bedroom and closet doors.
The master bedroom closet shall be on an accessible path. h) Wiring for audio and visual doorbells required by UFAS shall be installed. i) Closets and balconies shall be located on an accessible route. j) These units shall, to the maximum extent feasible and subject to reasonable health and safety requirements, be distributed throughout the project consistent with 24 CFR Section 8.26.
k) Provide blocking in walls and install grab bars at all tubs / roll in showers and toilets.
l) Walls: Reconfigure walls as needed to provide accessibility throughout units to bring up to current standards. Need to verify - RE: Drawings. m) Flooring: New LVT flooring throughout entire unit.
River City Trio Scope of Development Page 11
n) Appliances: Provide new ADA compliant appliances.
o) Millwork (kitchen cabinets):
(1) Remove and replace all cabinetry with new accessible UFAS compliant cabinetry in kitchens and bathrooms.
(2) New cabinets to comply with CTCAC and SHRA standards. All new cabinet boxes to be solid wood or plywood construction. New face frames, cabinet doors, and drawer fronts to be solid wood (species and finish TBD).
(3) Provide new under counter microwave shelving and outlet (microwaves to be provided by tenant).
(4) New countertops to be solid surface with matching or integral backsplash (and side splash where applicable).
p) Accessories: New ADA compliant bath accessories.
q) Plumbing: Replace all fixtures and faucets with new be ADA Compliant fixtures. Replace all tubs with new ADA compliant tubs with transfer seat, tile surround, seat, and grab bars. Install new tub valve and trim. r) Provide an accessible route as shown on plans that connects new amenities, new HC parking spaces, and newly designated accessible units.
VI. Laundry Upgrades
1. Upgrade existing leasing office to be UFAS and ADA compliant. a) Renovate existing bathrooms for ADA compliancy
b) Replace existing doors that are in disrepair or are less than 34” clear. c) Replace all flooring with new LVT include new base board d) Replace all light fixtures with new LED fixtures
e) Add recording capabilities for existing cctv cameras. f) Paint all rooms.
g) Replace all fixtures, water heaters and HVAC equipment. h) Replace all devices, outlets and switches.
i) RE: Architectural Drawings
Attachment 1: Rental Property Minimum Construction Standards are on the following page.
River City Trio Scope of Development Page 12
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 where 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.
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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 irrigation 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 standing 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-appropriate play structure is required.
River City Trio Scope of Development Page 14
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.
River City Trio Scope of Development Page 15
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 scratches, 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-
River City Trio Scope of Development Page 16
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 responsible 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
River City Trio Scope of Development Page 17
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.
Attachment 5
Attachment 6
Addresses
Number of Units
Construction Type
Acreage
Unit Mix Exempt
Management Units Total
1 Bedroom/1 Bath 04 5
2 Bedroom/1 Bath 21 0
TOTAL 25 5
Square Footage Per Unit Total Sq Ft
1 Bedroom/1 Bath (Floor Plan A) 479 12,933
1 Bedroom/1 Bath (Floor Plan B) 616 11,088
2 Bedroom/1 Bath 930 9,300
Common Areas 1,000
TOTAL 34,321
Resident Facilities
Permanent Sources
Current Total Per Unit Per Sq Ft
Federal Tax Credit Equity 5,625,496$ 104,176 $ 163.91 $ Permanent Loan 9,510,000$ 176,111 $ 277.09 $ NOI During Construction 95,783$ 1,774$ 2.79$ Deferred Developer Fee 1,215,025$ 22,500$ 35.40$ TOTAL SOURCES 16,446,304$ 304,561 $ 479.19 $ Permanent Uses
Acquisition 7,100,000$ 131,481$ 206.87$ Construction 4,576,488$ 84,750$ 133.34$ Permits and Fees 50,000$ 926$ 1.46$
Architecture and Engineering 132,400$ 2,452$ 3.86$ Hard Cost Contingency 429,086$ 7,946$ 12.50$ Soft Cost Contingency 100,000$ 1,852$ 2.91$ Financing Costs 1,137,723$ 21,069$ 33.15$ Operating Reserves 160,173$ 2,966$ 4.67$
Legal Fees 200,000$ 3,704$ 5.83$
Relocation 400,000$ 7,407$ 11.65$
Developer Fee 1,916,434$ 35,490$ 55.84$ Insurance, Third Party, Marketing, Other 244,000$ 4,519$ 7.11$ TOTAL USES 16,446,304$ 304,561 $ 479.19 $ Management/Operations
Proposed Developer
Property Management Company
Operations Budget 368,307$ 6,696$
Property Management 42,230$ 768$
Resident Services 27,251$ 495$
Replacement Reserves 13,500$ 245$
Taxes and Insurance 29,232$ 531$
1215 D Street (0.47 acres), 2410 C Street (0.3 acres) and 2517 C Street (0.3 acres) Total 1.07 acres (46,609.2 Sq Ft)
Aperto Property Management
On-site management offices, community room, laundry facilities and vehicle parking.
Vitus Development Group
ELI 50% AMI LI 60% AMI
6 0
39 8
64 7
River City Trio
Residential Project Summary
1215 D Street, Sacramento 95814; 2410 C Street and 2517 C Street, Sacramento 95816 54 Rehabilitation
River City Trio Square Total Max Gross Utility Max Net Rent per Total Mo. Current Unit Type Number Feet Sq Feet Rent Allowance Rent ¹ Sq Foot Rent Annual Rent 1215 D Street (23 units and Community Room)
1 Bedroom/1 Bath (50% AMI) 1 479 479 850$ - $ 850$ 1.77$ 850$ 10,200$ 1 Bedroom/1 Bath (50% AMI) 1 616 616 850$ - $ 850$ 1.38$ 850$ 10,200$ 1 Bedroom/1 Bath (60% AMI) 10 479 4,790 1,020$ - $ 1,020$ 0.21$ 10,200$ 122,400$ 1 Bedroom/1 Bath (60% AMI) 7 616 4,312 1,020$ - $ 1,020$ 0.24$ 7,140$ 85,680$ 2 Bedroom/1 Bath (60% AMI) 4 930 3,720 1,224$ - $ 1,224$ 0.33$ 4,896$ 58,752$ 2410 C Street (16 units) - $
1 Bedroom/1 Bath (50% AMI) 1 479 479 850$ - $ 850$ 1.77$ 850$ 10,200$ 1 Bedroom/1 Bath (50% AMI) 1 616 616 850$ - $ 850$ 1.38$ 850$ 10,200$ 1 Bedroom/1 Bath (60% AMI) 7 479 3,353 1,020$ - $ 1,020$ 0.30$ 7,140$ 85,680$ 1 Bedroom/1 Bath (60% AMI) 4 616 2,464 1,020$ - $ 1,020$ 0.41$ 4,080$ 48,960$ 2 Bedroom/1 Bath (60% AMI) 2 930 1,860 1,224$ - $ 1,224$ 0.66$ 2,448$ 29,376$ 2 Bedroom/1 Bath (Exempt Management) 1 930 930 - $
2410 C Street (16 units)
1 Bedroom/1 Bath (50% AMI) 1 479 479 850$ - $ 850$ 1.77$ 850$ 10,200$ 1 Bedroom/1 Bath (50% AMI) 1 616 616 850$ - $ 850$ 1.38$ 850$ 10,200$ 1 Bedroom/1 Bath (60% AMI) 7 479 3,353 1,020$ - $ 1,020$ 0.30$ 7,140$ 85,680$ 1 Bedroom/1 Bath (60% AMI) 4 616 2,464 1,020$ - $ 1,020$ 0.41$ 4,080$ 48,960$ 2 Bedroom/1 Bath (60% AMI) 2 930 1,860 1,224$ - $ 1,224$ 0.66$ 2,448$ 29,376$ 2 Bedroom/1 Bath (Exempt Management) 1 930 930 - $
Totals 55 33,321 54,672$ 656,064$
¹The tenant rent will not exceed 30% of the household adjusted gross income with Project Based Vouchers.
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 Potential Gross Income 2.50% 689,277 706,509 724,172 742,276 760,833 860,813 973,931 1,101,913 1,246,714 Rental Subsidy 2.50% 564,211 578,316 592,774 607,593 622,783 704,622 797,215 901,976 1,020,503 Other Income 2.50% 706 724 742 760 779 882 998 1,129 1,277 Less Vacancy 5.00% 62,710 64,277 65,884 67,531 69,220 78,316 88,607 100,251 113,425 Effective Gross Income $1,191,484 $1,221,272 $1,251,803 $1,283,098 $1,315,176 $1,488,001 $1,683,536 $1,904,767 $2,155,069 Operating Expenses (includes all Utilities) 3.50% $6,696 368,307 381,198 394,540 408,349 422,641 501,965 596,177 708,071 840,966 Property Management 3.50% $768 42,230 43,708 45,238 46,821 48,460 57,555 68,357 81,187 96,425 Residential Services 3.50% $495 27,251 28,205 29,192 30,214 31,271 37,140 44,111 52,390 62,223 Replacement Reserves 0.00% $245 13,500 13,500 13,500 13,500 13,500 13,500 13,500 13,500 13,500 Taxes and Insurance 2.00% $531 29,232 29,817 30,413 31,021 31,642 34,935 38,571 42,586 47,018 Total Expenses $8,737 $480,520 $496,427 $512,882 $529,905 $547,513 $645,095 $760,716 $897,734 $1,060,132 Net Operating Income $710,964 $724,844 $738,921 $753,194 $767,662 $842,906 $922,820 $1,007,033 $1,094,937 Debt Service amount rate amort
Permanent Loan $9,510,000 3.88% 35 497,113 497,113 497,113 497,113 497,113 497,113 497,113 0 0 SHRA Monitoring Fee $16,000,000 0.125% 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Debt Service Subtotal $517,113 $517,113 $517,113 $517,113 $517,113 $517,113 $517,113 $20,000 $20,000 Priority Distributions
Limited Partner Management Fee (LP) $5,000 2.50% 5,000 5,125 5,253 5,384 5,519 6,244 7,065 7,993 9,044 General Partner Asset Management Fee (GP) $7,500 2.50% 7,500 7,688 7,880 8,077 8,279 9,366 10,597 11,990 13,565 Priority Distributions Subtotal $12,500 $12,813 $13,133 $13,461 $13,798 $15,611 $17,662 $19,983 $22,609 Net Cash after Priority Distributions $181,351 $194,918 $208,675 $222,619 $236,751 $310,182 $388,045 $967,050 $1,052,328 Deferred Developer Fee
Principal Balance $1,215,025 1.00% 1,215,025 1,045,824 861,364 661,303 445,296 0 0 0 0 Accumulated Interest 12,150 10,458 8,614 6,613 4,453 0 0 0 0 Payment 181,351 194,918 208,675 222,619 236,751 0 0 0 0 Balance $1,045,824 $861,364 $661,303 $445,296 $212,998 $0 $0 $0 $0 Net Cash after Deferred Developer Fee Remains with Project $0 $0 $0 $0 $0 $310,182 $388,045 $967,050 $1,052,328 River City Trio
Cash Flow Proforma
Attachment 7
Maximum Gross Income Limits
Family Size 50% AMI 60% AMI
1 person 35,500$ 42,600$
2 person 40,550$ 48,660$
3 person 45,600$ 54,720$
4 person 50,650$ 60,780$
5 person 54,750$ 65,700$
Maximum Gross Rent Limits¹
Unit Size 50% AMI 60% AMI
1 Bedroom 1,013$ 1,216$
2 Bedroom 1,140$ 1,368$
Limits at 50% and 60% of Area Median Income (AMI)
Low Income Housing Tax Credits and Bonds
Attachment 8
¹The tenant rent will not exceed 30% of the household adjusted gross income with Project Based Vouchers.
River City Trio
MAXIMUM INCOME AND RENT LIMITS 2022