7. Inspection. Lender, by its designated representative, may make reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower and any occupant of the Property reasonable prior notice of any such inspection.
8. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of all or any part of the Property, or for conveyance in lieu of condemnation, shall be applied as provided in the Loan Agreement.
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender wit hin 30 days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender's option, either to restoration or repair of the Property or to the sums secured by this Deed of Trust.
Unless Lender and Borrower otherwis e agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of any payment or change the amount of such payment.
9. Borrower Not Released. Extension of the time for payment of the sums secured by this Deed of Trust granted by Lender to Borrower or any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time payment by reason of any demand made by the original Borrower or Borrower's successors in interest.
RVP Group – Cash Proceeds Deed of Trust and Assignment of Rents Page 4
10. Forbearance by Lender Not a Waiver . Any forbearance by Lender in exercising any right or remedy under this Deed of Trust, or otherwise afforded by applicable law, shall not be a waiver or preclude the exercise of any such right or remedy. The procurement of insurance or the payment of taxes or other liens or charges by Lender shall not be a waiver of Lender's right to accelerate the maturity of the indebtedness secured by this Deed of Trust.
11. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust, the Note, the Loan Agr eement or afforded by law or equity, and may be exercised concurrently, independently or successively.
12. Successors and Assigns Bound; Joint and Several Liability Captions . The covenants and agreements contained in this Deed of Trust shall bind, and the rights under this Deed of Trust shall inure to, the respective successors and assigns of Lender and Borrower, subject to the provisions of Section 15. All covenants and agreements of Borrower shall be joint and several. The captions and headings of the paragraphs of this Deed of Trust are for convenience only and are not to be used to interpret or to define its provisions.
13. Notice. Except for any notice required under applicable law to be given in another manner, any notice to be given under this Deed of T rust shall be given as provided for in the Loan Agreement. Any notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or Lender when given in the manner designated.
14. Governing Law; Severability. This Deed of Trust shall be governed by the law of the State of California.
If any term or provision of this Deed of Trust shall, to any extent, be held invalid or unenforceable, the remainder of this Deed of Trust shall remain in full force and effect and the invalid or unenforceable provision shall be valid and enforceable as to any other person or circumstance.
15. Acceleration on Transfer or Refinancing of the Property; Assumption. Except as otherwise provided in the Loan Agreement, if all or any part of the Property or an inter est in the Property is sold or transferred or refinanced by Borrower without Lender's prior written consent, Lender may, at Lender's option, declare all the sums secured by this Deed of Trust to be immediately due and payable. Lender shall have waived suc h option to accelerate if, prior to the refinancing, sale or transfer, Lender and the person to whom the Property is to be sold or transferred reach agreement in writing that the loan may be assumed. If Lender has waived the option to accelerate provided in this Section and if Borrower's successor in interest has executed a written assumption agreement accepted in writing by Lender, Lender shall release Borrower from all obligations under this Deed of Trust and the Note.
If Lender exercises such option to accelerate, Lender shall mail Borrower notice of acceleration. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower, or any of its principals or anyone with a substantial legal interest in B orrower, may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by this Deed of Trust.
16. Acceleration on Breach; Remedies . Except as provided in Section 15, upon Borrower's breach of any covenant or agreement of Borrower in this Deed of Trust, the Note, (including the covenants to pay when due any sums secured by this Deed of Trust and restricting transfer o f the Property) the Regulatory Agreement, or Loan Agreement, Lender shall mail notice to Borrower specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to Borrower, by which breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. If the breach is not cured on or before the date specified in the notice, Lender at Lender's option may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law . Lender shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses incurred in pursuing the remedies provided in this Section, including, but not limited to reasonable attorney's fees.
RVP Group – Cash Proceeds Deed of Trust and Assignment of Rents Page 5 If Lender invokes the power of sale, Lender shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of Lender's election to cause the Property to be sold and shall cause such notice to be recorded in each county in which any portion of the Property is located. Lender or Trustee shall mail copies of such notice in the manner prescribed by applicable law to Borrower and to the other persons prescribed by applicable law. Trustee shall give public notice of sale to the persons and in the manner prescribed by applicable law. After the lapse of such time as may be required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale, in one or more parcels and in such order as Trustee may determine. Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Lender or Lender's designee may purchase the Property at any sale.
Trustee shall deliver to the purchaser a Trustee's deed conveying the Property so sold without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements it contains. Trustee shall apply the proceeds of the sale in the following order:
(a) to all reasonable costs and expenses of the sale, including, but not limited to, reasonable Trustee's and attorney's fees and costs of title evidence; (b) to all sums secured by this Deed of Trust; and (c) the excess, if any, to the person or persons legally entitled thereto as determined by Lender. In the event of a dispute regarding the excess funds, either Lender or Trustee may file an action in interpleader to determine who shall receive the funds and may then deposit the excess funds with the court.
17. Assignment of Rents; Appointment of Receiver; Lender in Possession. As additional security, Borrower assigns to Lender the rents of the Property, provided that Borrower shall, prior to an acceleration for breach as provided above or abandonment of the Property, have the right to collect such rents as they become due.
Upon acceleration for breach or abandonment of the Property, Lender, in person, by agent or by judicially appointed receiver shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. All rents collected by Lender, its agent, or the receiver shall be applied first to payment of the costs of management of the Property and collection of rents, including, but not limited to receiver's fees, premiums on receiver's bonds and reasonable attorney's fees, and then to the sums secured by this De ed of Trust. Lender, its agent and the receiver shall be liable to account only for those rents actually received.
18. Prior Lienholder . The provisions of this Deed of Trust shall operate subject to the claims of prior lienholders to the extent of such claims.
19. Nonrecourse. Notwithstanding any provision of this Deed of Trust or any document evidencing or securing the Loan, Borrower, and Borrower’s principals, agents, officers, and successors in interest shall not be personally liable for the payment of the Loan or any obligation of the Loan, and in the event of a default Lender shall look solely to the Property subject to this Deed of Trust and to the rents, issues and profits thereof in satisfaction of the indebtedness evidenced by the Note; provided, that nothing in this condition and no action so taken shall operate to impair any obligation of Borrower under the Regulatory Agreement.
20. Reconveyance. Upon payment of all sums secured by this Deed of Trust, Lender shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled to such reconveyanc e. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or facts shall be conclusive proof of their truthfulness.
21. Substitute Trustee. Lender, at Lender's option, may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed under this Deed of Trust. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon the Trustee by this Deed of Trust and applicable law.
RVP Group – Cash Proceeds Deed of Trust and Assignment of Rents Page 6
22. Request for Notice. Borrower and each party listed to receive Additional Notices request that copies of the notice of default and notice of sale be sent to their respective addresses.
23. Statement of Obligation. Lender may collect a reasonable fee for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California, as it may be amended from time to time.
24. Use of Property . Borrower shall not permit or suffer the use of any of the Property for any purpose other than the use for which the same was intended at the time this Deed of Trust was executed.
25. Extended Use Agreement. In order to receive an allocation of federal low income housing tax credits, Borrower will be required to record in the real property records of the County in which the property is located, an “extended low-income housing commitment” (as defined in Section 42(h)(6)(B) of the Internal Revenue Code of 1986, as amended (“Code”)) (“Extended Use Agreement”). Lender acknowledges and agrees that, in the event of a foreclosure of its interest under this Deed of Trust or delivery by Borrower of a deed in lieu thereof (collectively, a “Foreclosure”), Lender expressly agrees to undertake, with respect to low -income housing tenants, the requirements of Section 42(h)(6)(E)(ii) of the Code, as amended from time to time.
IN WITNESS WHEREOF, Borrower has executed this Deed of Trust.
BORROWER (Trustor):
RVP Group LP, a California limited partnership
By: RVP Group LLC, a California limited liability company, its managing general partner
By: Sacramento Housing Authority Repositioning
Program, Inc., a California nonprofit public
benefit corporation, its sole member and manager
By: _____________________________
James Shields, President
Exhibit 5: Escrow Instructions
JOINT ESCROW INSTRUCTIONS
FOR AGENCY LOAN
“Effective Date” May 1, 2023
A
gency and Borrower execute these Escrow Instructions as of the Effective Date. This document, including attachments and any amendments and additions, shall constitute the joint escrow instructions of Agency and Borrower for the Agency loan secured by the Property.
ARTICLE I. GENERAL TERMS.
1. GENERAL. These Escrow Instructions, in addition to items listed below, include Article II Instructions, which is attached to and incorporated in these Escrow Instructions by this reference.
2. DEFINITIONS. The capitalized terms in these Escrow Instructions shall have the meanings assigned i n A
rticle I General Terms and as defined in Article II Instructions . (Terms being defined ar e indicated by quot
ation marks.)
“Title
Company”
Placer Title Company
Address: 1180 Iron Point Road, Suite 140, Folsom, CA 95630 “Escrow” with
Title Company
Escrow
Number:
***TBD*** Attention: Jenny Vega
“Agency” Housing Authority of the City of Sacramento, a public body, corporate and politic Address: 801 12th Street, Sacramento, CA 95814
Attention: Seth Wight
“Borrower” RVP Group LP
Address: 801 12th Street, Sacramento, CA 95814
Attention: Larry Jenkins
“Closing Date” ***TBD***
“Property” Address: Pine Knoll – 917 38th Street, Sacramento, 95816; Big Trees – 2516 H Street, Sacramento, 95816;
Riverview Plaza – 600 I Street, Sacramento, 95814
APN: Pine Knoll – 008-032-025-0000, 008-0032-032-0000, 008-0032-033-0000; Big Trees – 007-0033-007-0000;
Riverview Plaza – 006-0032-029-001, 006- 0032-029-002, 006 -0032-029-003, 006-0032-028-004
Description of
the transaction Agency is providing Borrower with the following loans (aggregate $29, 104, 421.00):
1. Seller Carryback Loan - $28,114,421 made pursuant to the Sel ler Car ryback Loa n Agreement, evidenced by Seller Carryback Note and secured by the Seller Carryback Deed of Trust; and
2. Housing Authority F unds (HAF) Loan - $990,000 made pursuant to the HAF Loan A
greement, evidenced by HAF Note, secured by the Seller Carryback Deed of Trust, and recorded against the Property, the HAF Regulatory Agreement to assure a certain level of rental affordability; and
3. C
ash Proceeds Loan - $0.00 (as may be increased in accordance with the Special Terms) made pursuant to the Cash Proceeds Loan Agreement, evidenced by Cash Proceeds Note and secured by the Cash Proceeds Deed of Trust.
RVP Group – Joint Escrow Instructions Page 2
“Recorded Documents”- The
following documents are to be
recorded in the order liste d
(top being first in pr iority).
Copies o f th e Recorde d
documents are attached.
Documents:
1. Seller Carryback Deed of Trust
2. HAF Deed of Trust
3. HAF Regulatory Agreement
4. Cash Proceed Deed of Trust
Marked for return to:
Sacramento Housing and
Redevelopment Agency
Development Finance
801 12
th Street – 4th Floor
Sacramento, CA 95814
Attn: Seth Wight
“Agency Items” Promissory Note for subject loan
Loan Agreement for the subject loan
Escrow Instructions
“Borrower Items” Nine Hundred Ninety-Thousand Dollars and No Cents ($990,000.00) Conformed copies of the executed and recorded documents.
“Special Provisions”: Title Policy shall, i n a ddition to customary endorsements, bear the following endorsements:
• ALTA 9.6 and 9.7 (or CLTA 100) Covenants, Conditions or Restrictions • ALTA 25 (or CLTA 116) Improvements Endorsement
• ALTA 102.5 Foundation Endorsement
• CLTA 101.2 Mechanic’s Lien Endorsement
• ***TBD***
“Agency Title Policy” in the
form of an ALTA Agency’s
Policy insuri ng that the
following are valid liens
against the property:
Documents:
Coverage amount:
1. Seller Carryback Deed of Trust
2. HAF Deed of Trust
3. HAF Regulatory Agreement
4. Cash Proceed Deed of Trust
In the amount of the aggregate
loans secured ($29, 104, 421.00)
The title policies s hall be
subject only to the following
“Conditions of Title”:
***TBD*** Dated: May 1, 2023
Number: ***TBD***
RVP Group – Joint Escrow Instructions Page 3
ARTICLE II. INSTRUCTIONS
1. CLOSING DATE. Escrow shall close on or before the Closing Date as it may be changed from time t o time by written agreement of Borrower and Agency.
2. CONDITIONS TO CLOSE OF ESCROW. “Close of Escrow” means the fulfillment of the Escrow terms and conclusion of the Escrow, including, without limi tation, the exec ution of unexecuted documents, the recordation of documents s pecified for recording, the issuance of title insur ance policies, the payment of fees and the delivery of funds and documents as directed in the escrow instructions for the Escrow . The Close of Escrow shall occur on the Closing Date.
2.1. CONDITIONS. The following are conditions to the Close of Escrow:
2.1.1. The conditions precedent to performance stated in the Recorded D ocuments are satisfied as of the Closing Date.
2.1.2. Simultaneously with the Close of Es crow, Title Company shall issue the Agenc y Titl e Insurance to Agency (at Borrower’s c ost) in the amount stated. The Agency Title Insurance shall include all usual and custo mary endorsements and any endorsements and other commitments as Agency may reasonably require. The Agency Title Insurance s hall show the Record ed Documents marked for return to Agency as valid liens a gainst the Property in favor of the Agency, subject onl y to the Conditions of Title, and securing, as applicable, Borrower’s performance of its obligations and repayment of Agency Funding.
2.1.3. Prior to the Closing Date, the p arties shall duly execute ( in Escrow or prior to deposit in Escrow) each such document and shall execute those to be recorded in a manner suitable for recording.
2.1.4. On or before the Closing Date, Agency shall also depos it with Title Company the Borrower Items and any Loan Amount then to be disbursed under this Agreement, but not less than closing costs, fees and charges required for Close of Escrow.
2.1.5. On or bef ore the Close of Escrow, Borrower shall also deposit with Title Company the Agency Items and Borrower’s share of closing costs and fees.
2.1.6. Title Company is satisfied that all required funds have been deposited in Title Company’s account for the Escrow, have cleared the originating bank and are available for transfer by Title Company’s check or wire transfer to the appropriate party.
2.2. DEED OF TRUST FORM. If no exhibit setting out the form of the Deed of Trust form is attached, the Title Company shall draw the Deed of Trust on the Title Company’s Long Form Deed of Trust . Title Company sha ll assure that the Deed of Trust incl udes a st andard clause giving Agency the option to accelerate the Loan upon the sale, conveyance, transfer or further encumbrance of the Property, whether voluntary or involuntary. Title Company s hall also affix the f ollowing provision to the Deed of Trust and incorporate it in the Deed of Trust by reference:
“The Loan Agreement requires the filing of the “Regulat ory Agreement” that i s defined in the Loan Agreement. The Regulatory Agreement con tains covenants running with the land an d is recorded agai nst the Propert y. I f Borrower does not comply with the requirements of the Regulatory Agreement and fails to come into compliance with the Regulatory Agreement within thirty (30) days after Agency’ s written notice to Borrower of such fai lure, the principal balanc e of th e Loan shall, at Agency’s option, be immediately due a nd payable, together with all unpaid interest at the stated rate fr om the date of the advancement of the Loan's proceeds.”
RVP Group – Joint Escrow Instructions Page 4
2.3. UPON CLOSE OF ESCROW. The Close of Escrow sh all take place on the Closing Dat e. On the Closing Date, Title Company shall complete t he Close of Escrow as follows and in the following order (unless otherwise stated, all recorded documents are recorded with the Sacramento County Recorder):
2.3.1. Assure fulfillment of the Special Provisions;
2.3.2. Assure all documents are complete and affix legal d escriptions of the Property as necessary to complete them;
2.3.3. Obtain full execution of all unexecuted documents;
2.3.4. Date all undated documents as of the Closing Date;
2.3.5. Record the Recorded Documents in the priority listed;
2.3.6. Determine all closing costs and fees ; including without limitation, all charges, f ees, taxes and title insurance premiu ms payable under this Agreement on Close of Es crow and any other fe es and charges approved for payment f rom Escrow by bot h parties and deduct such fees from the Loan proceed s deposited by Agency in Escrow;
2.3.7. Deliver the Agency Items to Agency and the Borrower Items to Borrower; and
2.3.8. Prepare and d eliver to Borrower and Age ncy, respectively, one signed origina l of all documents included for delivery to either party and not deli vered for recording, one signed original of Ti tle Company's closing statement showi ng all receipts and disbursements of the Escrow, and one conformed copy of each of the recorded documents.
2.4. INABILITY TO CLOSE. If Title Company is unable to simultaneously perform all of the preceding instructions, Title Company shall noti fy Borrower and Agency, and upon each of their directions return to each party all documents, items an d funds deposited in Escro w by such party (les s fees and expenses incurred by the respective party) and bill the respective parties for any unpaid fees and expenses incurred in Escrow. If Escrow fails to close on th e Closing Date because Borrower has not complied with Borr ower's obligations under this Loan Agreement, then Borrower shall pay the costs incurred through Escrow to the date the Escrow is terminated, including the cost of any preliminary title report and a ny cancellation fees or other costs of t his Escrow. If Es crow fails to close on or before the Closing Date because Agency has not complied with Agency's obligations under t his Loan Agreement, s uch costs shall be paid by Agency. If Escrow fails to close on or before the Closing Date for any other reason, such co sts shall be divided equally between the parties.
2.5. COMMISSIONS. Agen cy is not responsible, by this Loan Agreement or otherwise, to pay commissions in relation to this transaction.
[SIGNATURES APPEAR ON THE FOLLOWING PAGE]
RVP Group – Joint Escrow Instructions Page 5
THE PARTIES HAVE EXECUTED THESE ESCROW INSTRUCTIONS in Sacramento, California as of the date first written above.
BORROWER :
RVP Group LP, a California limited
partnership
By: RVP Group LLC, a California limited
liability company, its managing general
partner
By: Sacramento Housing Authority
Repositioning Program, Inc., a
California nonprofit public benefit
corporation, its sole member and
manager
By:
_____________________________
James Shields, President
LENDER:
HOUSING AUTHORITY OF THE CITY OF
SACRAMENTO, A PUBLIC BODY,
CORPORATE AND POLITIC
BY: _______________________________________
LA SHELLE DOZIER, EXECUTIVE DIRECTOR
APPROVED AS TO FORM:
__________________________________________
LENDER COUNSEL
RVP Group – Joint Escrow Instructions Page 6
ACCEPTANCE OF ESCROW INSTRUCTIONS
Your acceptance of t his escro w shall create a contractual obl igation by you with Agenc y and Borrower for compl ete compliance wit h these instruction s. Agenc y and Borrower reserve the right to jointly revoke this escrow at any time upon their payment to you of your fees and reimbursement to you of your expenses in ac cordance with the terms o f the se e scrow instructions. Your obligat ions as Escrow Holder under these escrow instructions shall be subject to the following provisions:
You are not responsibl e as to the sufficie ncy or correctness as to form, manner of exec ution, or validity of any instrument deposited in this escrow nor as to the authority or rights of any person executing such instrument. Except as otherw ise provided in these escrow instructions, your duties as Escrow Holder are limited to the proper hand ling of monies and the pr oper safekeeping of inst ruments and other items received by y ou as Esc row Holder, and for the performance o f your obligations as specifically provided under these escrow inst ructions. Y ou are responsible for the sufficiency of any instruments or documents prepared by you for this escrow.
Borrower agrees to indemn ify and hold you harmless from damages incurre d as a result of your good faith and diligent performance of your duties under these escrow instructions.
Upon your accept ance of these escrow inst ructions, return the exe cuted counterparts of these escrow instructions to Agency and Borrower, respectively.
Escrow Holder acknow ledges receip t of the foregoing esc row inst ructions and agrees to ac t as Escrow Holder and to comply with the terms and conditions of the escrow instructions.
Dated: _____________________________
T
ITLE COMPANY
TBD
By: ______________________________
Name:____________________________
Title:_____________________________
Its authorized agent and signatory
Attachment 9
Attachment 10
Attachment 11
Attachment 12
Attachment 13
RVP Group Pictures
Big Trees
Pine Knoll
Riverview Plaza
Address
Year Built
Acreage (Land)
Gross Building Area
Unit Mix and Rents 40% AMI 50% AMI 60% AMI Total
1 Bedroom/1 Bath (RAD) 12 0 0 12
1 Bedroom/1 Bath (PBV) 48 62 58 168
Exempt Management Unit - - - 3
Total Units 60 62 58 183
Square Footage Unit Size (SF) Total
Big Trees (1 Bedroom/1 Bath) 450 13,050 SF
Pine Knoll (1 Bedroom/1 Bath) 510 15,300 SF
Riverview Plaza (1 Bedroom/1 Bath) 550 67,650 SF
Riverview Plaza (2 Bedrooms/1 Bath) 1,046 1,046 SF
Big Trees Community Area 4,540 SF
Pine Knoll Community Area 3,686 SF
Riverview Plaza Community Area 105,953 SF
Total Gross 211,225 SF
On-site Amenities
Permanent Sources Total Per Unit Per Square Foot
Tax Credit Equity 32,273,804 176,359.58 152.79 Permanent Loan 15,729,128 85,951.52 74.47 Seller Carryback Loan 28,114,421 153,630.72 133.10 Housing Authority Funds Loan 990,000 5,409.84 4.69 Interim Income 257,635 1,407.84 1.22 Accrued Interest 1,950,026 10,655.88 9.23 GP Developer Fee 1,783,437 9,745.56 8.44 SHRA Commercial Funding 2,007,790 10,971.53 9.51 Deferred Developer Fee 1,699,343 9,286.03 8.05 TOTAL SOURCES 84,805,584$ 463,418$ 401.49$ Permanent Uses
Acquisition 29,106,000 159,049 137.80 Construction Costs 29,232,516 159,741 138.40 Architecture & Engineering 2,603,217 14,225 12.32 Permits & Fees 6,548,113 35,782 31.00 Hard Cost Contingency 4,384,877 23,961 20.76 Construction Subtotal 71,874,723 392,758 340.28 Soft Cost Contingency 487,877 2,665.99 2.31 Operating Reserve 1,754,615 9,588.06 8.31 Financial Fees 207,291 1,132.74 0.98 Legal Fees 220,000 1,202.19 1.04 Relocation 2,254,730 12,320.93 10.67 Developer Fee 7,642,780 41,763.83 36.18 Third Party Fees, Marketing, Other 363,568 1,986.71 1.72 Soft Costs Subtotal 12,930,861 70,660 61.22 SHRA $ per Unit Per Unit Cost
159,041$ 463,418$ $1.00 : $2.91 Management / Operations
Proposed Developer
Property Management Company
Operating Expenses 675,131$ 3,689$ Property Management Fee 387,708$ 2,119$ Resident Services 78,071$ 427$ S Security Services 43,367$ 237$ Replacement Reserves 54,900$ 300$ Taxes and Insurance 85,021$ 465$ Central City II (RAD 3)
Big Trees: parking, elevator, community room with kitchen, restroom and laundry room.
Pine Knoll: parking, community room with kitchen and laundry room.
Riverview Plaza: parking, elevator, community room with kitchen, courtyard and outdoor terraces, swimming pool, lounging areas, and laundry, library, craft, television, computer and exercise rooms.
Attachment 14
SHRA : Other
Leverage
Pine Knoll - 917 38th Street, Sacramento, 95816
Riverview Plaza - 600 I Street, Sacramento, 95814
Big Trees (17,590 SF), Pine Knoll (18,986 SF) and Riverview Plaza (174,649 SF) Housing Authority of the City of Sacramento (HACS)
Residential Project Summary
Big Trees (0.29 acres/12,800 SF), Pine Knoll (0.78 acres/33,978 SF) and Riverview Plaza (0.59 acres/25,831 SF) Big Trees (1971), Pine Knoll (1976) and Riverview Plaza (1971) Big Trees Big Trees - 2516 H Street, Sacramento, 95816
Leverage
Sacramento Housing Authority Repositioning Program, Inc., (SHARP) 84,805,584$ 463,418$ 401.49$ TOTAL USES RVP Group Square Total Gross Utility Net Rent per Total Mo. Annual Unit Type Number Feet Sq Feet Rent¹ Allowance Rent Sq Foot Rent Rent Big Trees (29 units)
1 Bedroom/1 Bath @ 40% AMI (RAD) 6 450 2,700 680$ 76$ 604$ 1.34$ 3,624$ 43,488$ 1 Bedroom/1 Bath @ 40% AMI (PBV) 3 450 1,350 680$ 76$ 604$ 1.34$ 1,812$ 21,744$ 1 Bedroom/1 Bath @ 50% AMI (PBV) 10 450 4,500 850$ 76$ 774$ 1.72$ 7,740$ 92,880$ 1 Bedroom/1 Bath @ 60% AMI (PBV) 9 450 4,050 1,020$ 76$ 944$ 2.10$ 8,496$ 101,952$ Exempt Manager Unit (1BR/1BA) 1 450 450 -$ -$ -$ -$ -$ -$ Pine Knoll (30 units)
1 Bedroom/1 Bath @ 40% AMI (RAD) 6 510 3,060 680$ 76$ 604$ 1.18$ 3,624$ 43,488$ 1 Bedroom/1 Bath @ 40% AMI (PBV) 4 510 2,040 680$ 76$ 604$ 1.18$ 2,416$ 28,992$ 1 Bedroom/1 Bath @ 50% AMI (PBV) 10 510 5,100 850$ 76$ 774$ 1.52$ 7,740$ 92,880$ 1 Bedroom/1 Bath @ 60% AMI (PBV) 9 510 4,590 1,020$ 76$ 944$ 1.85$ 8,496$ 101,952$ Exempt Manager Unit (1BR/1BA) 1 510 510 -$ -$ -$ -$ -$ -$ Riverview Plaza (124 units)
1 Bedroom/1 Bath @ 40% AMI (PBV) 41 550 22,550 680$ 76$ 604$ 1.10$ 24,764$ 297,168$ 1 Bedroom/1 Bath @ 50% AMI (PBV) 42 550 23,100 850$ 76$ 774$ 1.41$ 32,508$ 390,096$ 1 Bedroom/1 Bath @ 60% AMI (PBV) 40 550 22,000 1,020$ 76$ 944$ 1.72$ 37,760$ 453,120$ Exempt Manager Unit (2BR/1BA) 1 1,046 1,046 -$ -$ -$ -$ -$ -$ Totals 183 7,496 97,046 138,980$ 1,667,760$
Annual Per Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 15 Year 20 Year 30 Income Increase Unit 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2037 2042 2052 Potential Gross Income 2.50% 1,667,760 1,709,454 1,752,190 1,795,995 1,840,895 1,886,917 1,934,090 1,982,443 2,032,004 2,082,804 2,356,501 2,666,165 3,412,916 Rental Subsidy 2.50% 1,576,560 1,615,974 1,656,373 1,697,783 1,740,227 1,783,733 1,828,326 1,874,034 1,920,885 1,968,907 2,227,638 2,520,368 3,226,284 Other Income 2.50% 43,198 44,278 45,385 46,520 47,683 48,875 50,096 51,349 52,633 53,948 61,038 69,058 88,401 Less Vacancy 5.00% (164,376) (168,485) (172,697) (177,015) (181,440) (185,976) (190,626) (195,391) (200,276) (205,283) (232,259) (262,780) (336,380) Effective Gross Income $3,123,142 $3,201,221 $3,281,251 $3,363,282 $3,447,365 $3,533,549 $3,621,887 $3,712,435 $3,805,245 $3,900,377 $4,412,918 $4,992,812 $6,391,221 Operating Expenses
Operating Expenses 3.50% 3,689 675,131 698,761 723,217 748,530 774,728 801,844 829,908 858,955 889,019 920,134 1,092,831 1,297,940 1,830,873 Property Management 3.50% 2,119 387,708 84,240 87,188 90,240 93,398 96,667 100,051 103,552 107,177 110,928 131,748 156,475 220,723 Resident Services 3.50% 427 78,071 348,500 360,698 373,322 386,388 399,912 413,909 428,395 443,389 458,908 545,039 647,335 913,130 Replacement Reserves 0.00% 300 54,900 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 Taxes/Insurance 2.00% 465 85,021 75,171 76,674 78,208 79,772 81,368 82,995 84,655 86,348 88,075 97,242 107,363 130,875 Total Expenses $6,999 $1,280,831 $1,265,172 $1,306,278 $1,348,800 $1,392,787 $1,438,290 $1,485,363 $1,534,058 $1,584,433 $1,636,545 $1,925,359 $2,267,613 $3,154,101 Net Operating Income $1,842,311 $1,936,049 $1,974,974 $2,014,483 $2,054,578 $2,095,258 $2,136,525 $2,178,377 $2,220,813 $2,263,832 $2,487,559 $2,725,199 $3,237,120 Debt Service Amount Rate Amort
Permanent Loan $15,729,128 5.700% 35 1,038,476 1,038,476 1,038,476 1,038,476 1,038,476 1,038,476 1,038,476 1,038,476 1,038,476 1,038,476 1,038,476 1,038,476 1,038,476 SHRA Monitoring Fee $29,104,421 0.125% 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Debt Service Subtotal $1,063,476 $1,063,476 $1,063,476 $1,063,476 $1,063,476 $1,063,476 $1,063,476 $1,063,476 $1,063,476 $1,063,476 $1,063,476 $1,063,476 $1,063,476 Priority Distributions
Partnership Management Fee (LP) $10,000 3.00% 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 15,126 17,535 23,566 Asset Management Fee (GP) $15,000 3.00% 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 19,002 19,572 22,689 26,303 35,348 Priority Distributions Subtotal $25,000 $25,750 $26,523 $27,318 $28,138 $28,982 $29,851 $30,747 $31,669 $32,619 $37,815 $43,838 $58,914 $753,835 $846,823 $884,975 $923,689 $962,964 $1,002,800 $1,043,198 $1,084,154 $1,125,668 $1,167,736 $1,386,268 $1,617,885 $2,114,730 Deferred Developer Fee
Principal Balance $1,699,343 3.00% 1,699,343 996,488 179,560 0 0 0 0 0 0 0 0 0 0 Interest for Period 50,980 29,895 5,387 0 0 0 0 0 0 0 0 0 0 Payment from Cash Flow/Operating Reserve 753,835 846,823 184,946 0 0 0 0 0 0 0 0 0 0 Balance $996,488 $179,560 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Cash after Priority Distributions and Deferred Developer Fee $0 $0 $700,029 $923,689 $962,964 $1,002,800 $1,043,198 $1,084,154 $1,125,668 $1,167,736 $1,386,268 $1,617,885 $2,114,730 Seller Carryback Loan¹
Principal Balance $28,114,421 2.25% 28,114,421 28,114,421 28,114,421 28,114,421 28,114,421 28,114,421 28,114,421 28,114,421 28,114,421 28,114,421 28,114,421 28,114,421 27,794,567 Interest for Period 632,574 632,574 632,574 632,574 632,574 632,574 632,574 632,574 632,574 632,574 632,574 632,574 625,378 Accumulated Interest 632,574 1,265,149 1,897,723 2,194,284 2,383,488 2,553,840 2,705,070 2,836,910 2,949,090 3,041,344 3,194,453 2,810,345 625,378 Payment 0 0 336,014 443,371 462,223 481,344 500,735 520,394 540,320 560,513 665,409 776,585 1,015,071 Balance $28,746,995 $29,379,570 $29,676,131 $29,865,334 $30,035,686 $30,186,917 $30,318,756 $30,430,937 $30,523,191 $30,595,252 $30,643,465 $30,148,181 $27,404,875 Housing Authority Funds¹
Principal Balance $990,000 2.25% 990,000 990,000 990,000 990,000 990,000 990,000 990,000 988,342 973,702 957,320 847,214 684,350 193,673 Interest for Period 22,275 22,275 22,275 22,275 22,275 22,275 22,275 22,238 21,908 21,540 19,062 15,398 4,358 Accumulated Interest 22,275 44,550 66,825 65,288 56,144 45,663 33,827 22,238 21,908 21,540 19,062 15,398 4,358 Payment 0 0 23,812 31,420 32,756 34,111 35,485 36,878 38,290 39,721 47,155 55,033 71,934 Balance $1,012,275 $1,034,550 $1,033,013 $1,023,869 $1,013,388 $1,001,552 $988,342 $973,702 $957,320 $939,139 $819,122 $644,715 $126,097 ¹The HACS loans will have Applicable Federal Rates (AFR) determined at close of construction financing. A rate of 2.25% is used for demonstration purposes. ¹The tenant rent will not exceed 30% of the household adjusted gross income with PBV.
RVP Group Cashflow ProformaAttachment 15
Attachment 16
Family Size 40% AMI 50% AMI 60% AMI
1 person 28,400$ 35,500$ 42,600$
2 person 32,440$ 40,550$ 48,660$
3 person 36,480$ 45,600$ 54,720$
Unit Size 40% AMI 50% AMI 60% AMI
1 Bedroom 680$
850$
1,020$
¹Pursuant to 24CFR 983.301, contract rents approved by HUD may exceed the tax-credit rent limits; the tenant rent will not exceed 30% of the household adjusted gross income with PBV
Maximum Gross Rent Limits¹
Maximum Gross Income Limits
RVP Group
MAXIMUM INCOME AND RENT LIMITS 2022
Affordability Levels at 40%, 50% and 60%
of Area Median Income (AMI)
Low Income Housing Tax Credits and
Mortgage Revenue Bonds