City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00719 4/9/2024 Public Hearing Item 13.
(City Council/Housing Authority) Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing and Approval of the Housing Authority of the City of Sacramento Issuance of Tax-Exempt Bonds Obligations for the Donner Field Senior Apartments in the Amount of up to $30,000,000 (Noticed on 3/26/2024)
File ID: 2024-00719
Location: 4501 9
th Avenue, District 5, Represented by Vice Mayor Maple
Recommendation: Hold a public hearing and upon completion adopt 1) a Council Resolution that a) indicates that the Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing has been conducted related to the proposed acquisition, rehabilitation, and permanent financing of the Donner Field Senior Apartments Project (Project), and b) approves issuance by the Housing Authority of Obligations in the maximum principal amount of $30,000,000 for the project, and 2) a Housing Authority Resolution that a) authorizes issuance of $30,000,000 in tax-exempt mortgage revenue bonds for the Project, b) authorizes the submittal of an application to the California Debt Limit Allocation Committee (CDLAC) for allocation authority to issue the bonds, c) declares that the Housing Authority reasonably expects that a portion of the proceeds of the Obligations will be used for reimbursement of expenditures for the acquisition, construction and development of the Project that are paid before the date of initial execution and delivery of the Obligations, d) obligates the Developer for the payment of all present and future costs in connection with the issuance of the Obligations, e) authorizes appropriate staff at the Housing Authority to, in the name of and on behalf of the Authority, make an application to CDLAC for an allocation of private activity bonds for the financing of the Project, and f) finds that the adoption of the Resolution shall not obligate (i) the Housing Authority to provide financing to the Developer for the acquisition, construction and development of the Project or to issue the Obligations for purposes of such financing; or (ii) the Housing Authority, or any department of the Housing Authority or the City of Sacramento to approve any application or request for, or take any other action in connection with, any environmental, General Plan, zoning or any other permit or other action necessary for the acquisition, construction, development or operation of the Project.
Contact: Christine Weichert, Director, Development Finance, (916) 440-1353, [email protected], Sacramento Housing and Redevelopment Agency
Presenter: Whitney Hinton; Program Manager, Development Finance, (916) 440-1325, [email protected], Sacramento Housing and Redevelopment Agency
File ID: 2024-00719 4/9/2024 Public Hearing Item 13.
Attachments:
1-Description/Analysis
2-City Council Resolution - TEFRA
3-Housing Authority Resolution -Bond Inducement
4-Vicinity Map
5-Site Plan
6-Project Renderings
7-Project Summary
8-Cash Flow Proforma
9-Maximum Income and Rent Limits
Description/Analysis
Issue Detail: In 1985, the Redevelopment Agency of the City of Sacramento received title to the property at 4501 9
th Avenue (Property). The Property is a single lot, approximately 1.23 acres, located in the Oak Park neighborhood. The Property was transferred to the ownership of the Housing Authority of the City of Sacramento in 2012 due to the dissolution of Redevelopment.
On November 1, 2016, the City Housing Authority Board adopted a resolution approving a Vacant Lot Disposition Strategy that permitted the sale of the Property. On August 19, 2020, Sacramento Housing and Redevelopment Agency (SHRA) issued a Request for Proposals (RFP) seeking an experienced developer to construct and manage new affordable housing opportunities at the site. On December 4, 2020, the selection panel awarded the property to Eden Housing, Inc., or related entity (Developer), for the proposed Donner Field Senior Apartments, a 67-unit affordable housing development (Project). The Property is currently being leased to the Fortune School of Education.
Staff have been in contact with Fortune School, who are aware of the proposed project and understand that the lease will be terminated prior to disposition.
In April of 2022, SHRA, on behalf of the Housing Authority, issued a Request for Proposals seeking owners and developers interested in receiving Project Based Vouchers (PBV) to serve homeless families/individuals. As a result, on July 11, 2022, Eden Housing was awarded 17 PBVs for the Donner Field Senior Project.
In October 2022, the City Council allocated $1.25 million to the project. SHRA will enter into a separate agreement with the City for these funds which will then be lent to the Project.
On March 1, 2023, Eden Housing, Inc. submitted a funding application to SHRA for the Property’s construction, and permanent financing. On July 25, 2023, a commitment in the amount of $7 million which consists of Home Investment Partnerships Program (HOME) funds, and Housing Opportunities for Persons with AIDS (HOPWA) funds was approved by the City Council. In addition, on the same date, the City Housing Authority approved the disposition of the property at fair market value through
File ID: 2024-00719 4/9/2024 Public Hearing Item 13.
a Disposition and Development Agreement and a seller carry-back loan commitment. A loan commitment for $2.6 million in Mental Health Services Act (MHSA) funds was approved by the Sacramento County Board of Supervisors on July 25, 2023.
Eden Housing applied for nine percent (9%) tax credits for the Project in August 2023 but was unsuccessful. They plan to apply for tax-exempt mortgage revenue bonds and four percent (4%) tax credits in April 2024. This report serves as the required public Tax Credit Equity and Fiscal Responsibility Act (TEFRA) hearing and also recommends approval for the Housing Authority to issue tax-exempt bonds not to exceed $30 million for the Project.
Development:
Donner Field Senior Apartments is a proposed new construction development on 1.23 acres of land at 4501 9th Avenue in Sacramento. The development is comprised of 67 units, including 65 one-bedroom and two two-bedroom units (one unit reserved for an on-site manager). This senior (age 55+) community will be 100 percent affordable to households at or below 50 percent Area Median Income (AMI). A vicinity map is included in Attachment 4, a site plan in Attachment 5, and renderings of the Project are included in Attachment 6.
The proposed Project consists of two buildings, one U-shaped two- and three-story residential building and one single-story community building that houses all interior common space. Amenities include a community building, computer room, shared kitchen, multipurpose room, BBQ area, bocce ball court, and a community garden.
Developer:
Eden Housing, Inc., or related entity, will serve as the Developer. The Developer is a non- profit public benefit corporation based in Hayward, California. Since its inception in 1968, the Developer has developed, acquired, or rehabilitated more than 11,400 units and currently provides homes to more than 24,000 lower-income residents.
Property Management:
Eden Housing Management, Inc. (EHMI) will provide property management services. Established in 1984, EHMI is the property management and non-profit affiliate of Eden Housing and manages properties developed and owned by Eden Housing. EHMI has over 35 years of experience in the field of affordable housing management, currently managing over 9,000 units in 138 properties. EHMI will provide a full balance of property management services, including initial and ongoing leasing, marketing, compliance monitoring, coordinating resident services, and property maintenance.
Resident Services:
Eden Housing Resident Services, Inc. (EHRSI) will provide on-site resident services for the Project. The property is required to provide a minimum of 15 hours of resident services a week but will provide up to 22 hours a week, along with one full-time case manager.
EHRSI was established in 1995 as a 501(c)(3) non-profit affiliate of Eden Housing, Inc., to provide resident services programming to properties in the Eden Housing portfolio. At Eden’s managed
File ID: 2024-00719 4/9/2024 Public Hearing Item 13.
properties, EHRSI provides a wide range of services and enrichment programs designed to meet the needs of a diverse resident population - at home and free of charge to residents. EHRSI’s portfolio includes 132 managed properties of which 66 percent are for families, 22 percent are for seniors, and 12 percent are for special needs populations.
There will be 17 units restricted to Mental Health Services Act (MHSA) funding program clients. Case management and supportive services will be provided directly by the County Department of Health Services (DHS) via the contracted MHSA-funded Full-Service Partnership program.
Project Financing:
In addition to the SHRA and Housing Authority financing summarized in the table below, the Project will be financed with bonds and four percent Low-Income Housing Tax Credits (LIHTC), conventional loans, deferred developer fees, and fee waivers. A Project Summary and Proforma are included as Attachments 7 and 8.
PROGRAM FUNDS AMOUNT
HOME $6,000,000
HOPWA $1,000,000
City of Sacramento Loan $1,250,000
HACS Seller Carryback Loan1 $60,000
Mental Health Services Act (MHSA) $2,600,000
Total $10,910,000
1 HACS Seller Carryback Loan is $60,000 or an amount justified by an updated fair market appraisal.
Low-Income Set-Aside Requirements: As a condition of receiving LIHTC and the benefits of LIHTC financing, federal law requires that units be set aside for targeted income groups. Income restrictions from LIHTC financing require that 20 percent of the units have affordable rents to households with income up to 50 percent of the Area Median Income (AMI). SHRA further requires that at least 5 percent of the units have affordable rents to households with income up to 30 percent AMI, based on financial feasibility. Project affordability restrictions will be specified in regulatory agreements with the Developer. The affordability requirements are summarized in the following table:
AFFORDABILITY RESTRICTIONS (Seniors) UNITS % OF UNITS
Extremely Low Income (30% AMI, PBV) 17 25
Extremely Low Income (30% AMI) 3 5
Very-Low Income (50% AMI) 46 69
Manager’s Unit (Exempt) 1 1
Total 67 100%
Policy Considerations: The recommended actions are consistent with 1) SHRA’s Multifamily
File ID: 2024-00719 4/9/2024 Public Hearing Item 13.
Lending and Mortgage Revenue Bond Policies, priority level 2(i) - New Construction Permanent Supportive and Homeless Housing (Resolution No. 2019-0425 and Housing Authority Resolution No. 2019-022); 2) the 2021-2029 Housing Element, Policy H-2.3, “Assist in the Development of Affordable Housing.”
Economic Impacts: This multifamily residential project is expected to create 301 total jobs (171 direct jobs and 130 jobs through indirect and induced activities) and create $25,145,643 in total economic output ($15,327,836 of direct output and another $9,817,807 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 project has been found to be eligible for ministerial approval through SB35 and is therefore not subject to CEQA review. National Environmental Policy Act (NEPA): The project has been reviewed pursuant to NEPA procedures at 24 California Code of Regulations Part 58, and the project was found to have no significant impact on the environment with mitigation measures incorporated.
Sustainability: The proposed project has been reviewed for consistency with the goals, policies, and targets of the City of Sacramento’s 2035 General Plan. If approved, this project will advance Goal H-
1.1 - Sustainable Communities. This is accomplished by reducing the use of fossil fuels, promoting energy-efficient building design and site planning, and creating housing that is healthier, safer, more comfortable, and durable.
Commission/Committee Action: Sacramento Housing and Redevelopment Commission: At its February 21, 2024, meeting, the Sacramento Housing and Redevelopment Commission reviewed the staff recommendation for this item. The votes were as follows:
AYES: Duncan, Nunley, Amanfor, Morgan, Ramos, Ross, Staajabu, Starks, Woo NOES: None
ABSENT: Griffin, Osmany
Rationale for Recommendation: The actions recommended in this report enable SHRA to continue to fulfill its mission of providing a range of affordable housing opportunities in the City and are
File ID: 2024-00719 4/9/2024 Public Hearing Item 13.
consistent with SHRA’s approved Multifamily Lending and Mortgage Revenue Bond Policies and the City of Sacramento 2021-2029 Housing Element as part of Sacramento’s 2035 General Plan.
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 an annual payment for monitoring the regulatory restrictions and administration of the bonds in the amount of 0.125 percent of the bond amount.
SHRA will also receive a $100 annual administrative fee for each assisted unit. The total administrative fee will not exceed $25,000 annually for the affordable units during the 55-year regulatory term.
LBE - M/WBE and Section 3 requirements: Minority and Women’s Business Enterprise requirements and Section 3 considerations will be applied to all activities to the extent required by the federal funding and in accordance with SHRA’s Section 3 Economic Opportunity Plan. LBE requirements do not apply to this report.
RESOLUTION NO. 2024-____
Adopted by the Sacramento City Council
April 9, 2024
Donner Field Senior Apartments: Approval of the Issuance of Obligations by the Housing Authority of the City of Sacramento on Behalf of Donner Field Senior, L.P.
BACKGROUND
A. The Housing Authority of the City of Sacramento, a housing authority organized and existing under the laws of the State of California (the "Authority ”), proposes a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $30,000,000 (the “Obligations”) and to lend the proceeds thereof to Donner Field Senior, L.P. or a partnership of which Eden Housing (the “Developer”) or a related person to the Developer is the general partner, to be used to provide funds to finance or refinance the acquisition, construction and development of a multifamily housing residential facility to be located at 4501 9th Avenue , in the City of Sacramento, California.
B. Section 147(f) of the Code requires the execution and delivery of the Obligations to be approved by the City Council of the City (the "City Council"), as the elected representative of the City of Sacramento and the host jurisdiction of the subject multifamily housing residential facility, after a public hearing has been held following reasonable and proper notice.
C. A public hearing was held by the City Council on April 9, 2024, following duly published notice thereof, and all persons desiring to be heard have been heard.
D. It is in the public interest and for the public benefit that the City Council, as the elected representative of the City of Sacramento and the host jurisdiction of the subject multifamily housin g residential facility, approve the execution and delivery by the Authority of the Obligations.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council of the City of Sacramento hereby finds, determines, and declares that issuance by the Authority of the Obligations in the maximum principal amount of $30,000,000 for the purposes described above is hereby approved.
Resolution YYYY-XXXX Month XX, 202X Page 2 of 2
SECTION 2. This resolution shall take effect immediately upon its adoption.
RESOLUTION NO. 2024-____
Adopted by the Housing Authority of the City of Sacramento
April 9, 2024
Donner Field Senior Apartments: A Resolution of the Housing Authority of the City of Sacramento Declaring Intention to Reimburse Expenditures from the Proceeds of Tax- Exempt Obligations and Directing Certain Actions
BACKGROUND
A. The Housing Authority of the C ity of Sacramento (the "Authority") intends to issue tax- exempt obligations (the "Obligations") for the purpose, among other things, of making a loan to Donner Field Senior, L.P. , or a limited partnership or a limited liability company related to or formed by Eden Housing (the "Developer"), the proceeds of which shall be used by the Developer to finance the acquisition, construction and development of a 67-unit multifamily housing resi dential facility to be located at 4501 9th Avenue , Sacramento, California (the “Project”).
B. United States Income Tax Regulations section 1. 150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, among which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer must declare an intention to reimburse such expenditure.
C. It is in the public interest and for the public benefit that the Authority declare its official intent to reimburse the expenditures referenced herein.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE HOUSING AUTHORITY OF THE CITY OF SACRAMENTO RESOLVES AS FOLLOWS:
SECTION 1.
The Authority intends to issue the Obligations for the purpose of paying the costs o f financing the acquisition, construction, and development of the Project.
SECTION 2.
The Authority hereby declares that it reasonably expects that a portion of the proc eeds of the Obligations will be used for reimbursement of expenditures for the acquisition, construction and development of the Project that are paid before the date of initial execution and delivery of the Obligations.
SECTION 3.
The maximum amount of proceeds of the Obligations to be used for reimbursement of expenditures for the acquisition, construction and development of the Project that are paid
before the date of initial execution and delivery of the Obligations is not to exceed $30,000,000.
SECTION 4.
The foregoing declaration is consistent with the budgetary and financial circumstances of the Authority in that there are no funds (other than proceeds of the Obligations) that are reasonably expected to be (i) reserved, (ii) allocated or (iii) otherwise s et aside, on a long-term basis, by or on behalf of the Authority, or any public entity controlled by the Authority, for the expenditures for the acquisition, construction and development of the Project that are expected to be reimbursed from the proceeds of the Obligations.
SECTION 5.
The Developer shall be responsible for the payment of all present and future costs in connection with the issuance of the Obligations, including, but not limited to, any fees and expenses incurred by the Authority in antici pation of the iss uance of the Obligations, any fees required by the California Debt Limit Allocation Committee (“CDLAC”) the cost of printing any official statement, rating agency costs, bond counsel fees and expenses, underwriting discount and costs, trus tee fees and expense, and the costs of printing the Obligations. The payment of the principal, redemption premium, if any, and purchase price of and interest on the Obligations shall be solely the responsibility of the Developer. The Obligations shall not constitute a debt or obligation of the Authority.
SECTION 6.
The appropriate officers or the staff of the Authority are hereby authorized, for and in the name of and on behalf of the Authority, to make an application to CDLAC for an allocation of private activity bonds for the financing of the Project.
SECTION 7.
The adoption of this Resolution shall not obligate (i) the Authority to provide financing to the Developer for the acquisition, construction and development of t he Project or to issue the Obligations for purposes of such financing; or (ii) the Authority, of or any departm ent of the Authority or the City of Sacramento to approve any application or request for, or take any other action in connection with, any enviro nmental, General Plan, zoning or any other permit or other action necessary for the acquisition, construction, development or operation of the Project.
SECTION 8.
This resolution shall take effect immediately upon its adoption.
(
Attachment 4
CHANGING LIVES
Donner Field Senior Apartments
'
ci5
..c
f-""'" ""'"
-
I---
,___
-
�
'
Broadway
iHJ I nT1 I 1 �\Cl) ?Th Ave
- ,___
Donner Field
Senior Apartments
L------l-----i ci5
,
8Th Ave
f--
--'------
-'---+-
-'--
------'-----l ci5
1-----+-------l �
LO
I-----+----, ""'"
..c 1------+----i L------l---, f-""'"1------+----i L-------t-----"1""'" vJ 1-------1---�
::0
0. 1-------1
£Q 1----------4
11Th Ave
- Donner Field Senior Apartments
(4501 9th Avenue)
r----! Sacramento County
_____ .J
0 I
9ThAve
10Th Ave
Feet
200
I
400
I
8Th Ave
9ThAve
SHRAGIS
April 25, 2023
Attachment 5
Donner Field Senior Apartments – Site Plan
Attachment 6
Donner Field Senior Apartments – Project Renderings
CONCEPTUAL VIEW OF NW CORNER LOOKING SOUTH
CONCEPTUAL VIEW OF INTERIOR COURTYARD LOOKING NORTH
Attachment 7
Addresses
Number of Units
Project Type
Acreage
Unit Mix and Rents 30% AMI 50% AMI
Exempt
Management Unit
1BR/1BA (PBV) 17 0 0
1BR/1BA 2 46 0
2BR/1BA 1 0 1
Total Units 20 46 0
Square Footage (both locations) Unit Size (sq.ft.) Total (sq. ft.) 1BR/1BA 595 38,675
2BR/1BA 781 1,562
Common Areas 2,124 2,124
Total Gross 42,361
Resident Facilities
Permanent Sources Total Per UnitPer Square Foot
Permanent Loan 820,500$ 12,246$ 19.37$ SHRA HOME 6,000,000$ 89,552$ 141.64$ Building Hope (MHSA) 2,600,000$ 38,806$ 61.38$ City of Sacramento Loan 1,250,000$ 18,657$ 29.51$ Waived Impact Fee 468,855$ 6,998$ 11.07$ SHRA Seller Carry-back -land 60,000$ 896$ 1.42$ SHRA-HOPWA 1,000,000$ 14,925$ 23.61$ Deferred Developer Fee 533,840$ 7,968$ 12.60$ GP Equity 2,645,405$ 39,484$ 62.45$ Investor Capital Contributions Federal 18,858,062$ 281,464$ 445.18$ Investor Capital Contributions State 7,202,161$ 107,495$ 170.02$ TOTAL SOURCES 41,438,823$ 618,490$ 978.23$ Permanent Uses Total Per UnitPer Square Foot
Acquisition 60,000$ 896$ 1.42$ Construction Costs 25,456,235$ 379,944$ 600.94$ Architecture & Engineering 1,300,000$ 19,403$ 30.69$ Permits/Fees 1,566,830$ 23,386$ 36.99$ Hard Cost Contingency 1,941,038$ 28,971$ 45.82$ TOTAL HARD COSTS 30,324,103$ 452,599$ 715.85$ Soft Cost Contingency 394,368$ 5,886$ 9.31$ Financing Cost 3,865,400$ 57,693$ 91.25$ Operating Reserves 261,957$ 3,910$ 6.18$ Legal Fees 177,500$ 2,649$ 4.19$ Developer Fee 4,979,245$ 74,317$ 117.54$ Third Party Fees, Marketing, Other 1,436,250$ 21,437$ 33.91$ TOTAL SOFT COSTS 11,114,720$ 165,891$ 262.38$ TOTAL USES 41,438,823$ 618,490$ 978.23$ SHRA $ per Unit Per Unit Cost Leverage
SHRA162,836$ 618,490$ $1.00 : $3.80Management / Expenses Proposed DeveloperProperty Management Company
Operating Expenses 458,631$ 6,845$ per unit Property Management Fee 64,595$ 964$ per unit Resident Services 120,483$ 1,798$ per unit Replacement Reserves 33,500$ 500$ per unit Taxes and Insurance 35,543$ 530$ per unit Leverage
Amenities on site will include a common lounge area, outdoor gathering area, bocce ball, BBQ, picnic tables, laundry facilities, community room with kitchen.
Donner Field
Residential Project Summary
4501 9th avenue Sacramento CA 95820
67 New Construction
1.23 Total
48 2
67 17
Eden Housing Eden Housing Property Management
Donner Field Area Median Square Total Gross Utility Net Net Rent per Total Monthly Current Unit Type Income % (AMI) Number Feet Sq Feet Rent¹ Allowance Rent Sq Foot Net Rent Annual Rent efficiency 1BR/BA (PBV) 30% 17 595 10,115 603$ 87$ 516$ 0.87$ 8,772$ 105,264$ $1,360 1BR/1BA 30% 2 595 1,190 603$ 49$ 554$ 0.93$ 1,107$ 13,287$ 1BR/1BA 50% 46 595 27,370 1,005$ 49$ 956$ 1.61$ 43,959$ 527,513$ Per Unit Subsidy 2BR/1BA 30% 1 781 781 723$ 54$ 669$ 0.86$ 669$ 8,025$ 1,833$ 1BR/1BA (Exempt Manager) 1 595 595 -$ -$ -$ -$
Totals 67 54,507$ 654,090$
¹Pursuant to 24CFR 983.301, contract rents approved by HUD may exceed the tax-credit rent limits; and the AMI change is due to income averaging regulation by CDLAC. The tenant rent will not exceed 30% of the household adjusted gross income with PBV.
Annual 2026 2027 2028 2029 2030 2035 2040 2045 2050
Income Increase Per Unit Year 1 Year 2 Year 3 Year 4 Year 5 Year 10 Year 15 Year 20 Year 25 Gross Potential Rent 2.50% 687,203 704,383 721,992 740,042 758,543 858,222 971,000 1,098,597 1,242,962 Other Income 2.50% 7,602 7,792 7,987 8,187 8,392 9,494 10,742 12,153 13,751 Rental Subsidy 2.50% 263,537 270,126 276,879 283,801 290,896 329,122 372,371 421,304 476,666 Less Vacancy 5.00% -47,917 -49,115 -50,343 -51,601 -52,892 -59,842 -67,706 -76,603 -86,669 Effective Gross Income $910,425 $933,186 $956,515 $980,428 $1,004,939 $1,136,996 $1,286,407 $1,455,451 $1,646,710 Expenses
Operating Expenses 3.50% 6,390 458,631 474,683 491,297 508,492 526,290 625,067 742,384 881,719 1,047,205 Property Management 3.50% 900 64,595 66,856 69,196 71,617 74,124 88,036 104,559 124,184 147,491 Resident Services 3.50% 1,679 120,483 124,700 129,064 133,581 138,257 164,206 195,025 231,628 275,102 Taxes 2.00% 510 35,543 36,254 36,979 37,719 38,473 42,477 46,898 51,780 57,169 Replacement Reserves 0.00% 500 33,500 33,500 33,500 33,500 33,500 33,500 33,500 33,500 33,500 Total Expenses 10,638 $712,752 $735,993 $760,036 $784,910 $810,644 $953,286 $1,122,366 $1,322,811 $1,560,467 Net Operating Income $197,673 $197,193 $196,479 $195,518 $194,295 $183,710 $164,041 $132,641 $86,242 Debt Service amount rate amort
Senior Loan $820,500 7.50% 15 91,274 91,274 91,274 91,274 91,274 91,274 91,274 0 0 SHRA Monitoring Fee $25,000,000 0.125% 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Debt Service Subtotal $116,274 $116,274 $116,274 $116,274 $116,274 $116,274 $116,274 $25,000 $25,000 DCR 1.70 1.70 1.69 1.68 1.67 1.58 1.41 5.31 3.45
Cash Available after Debt Service $81,400 $80,919 $80,206 $79,245 $78,022 $67,436 $47,767 $107,641 $61,242 Priority Distributions
Investor management fee $7,500 3.00% 7,500 7,725 7,957 8,195 8,441 9,786 11,344 13,151 15,246 GP Partnership Management fee $0 3.00% 0 0 0 0 0 18,566 21,523 24,951 28,925 Priority Distributions Subtotal 7,500 7,725 7,957 8,195 8,441 28,352 32,867 38,102 44,171 Net Cash after Priority Distributions $73,900 $73,194 $72,249 $71,049 $69,580 $39,085 $14,900 $69,539 $17,071 Deferred Developer Fee
Principal Balance $533,840 0.00% 533,840 459,940 386,746 314,497 243,448 0 0 0 0 Payment 73,900 73,194 72,249 71,049 69,580 0 0 0 0
Balance $459,940 $386,746 $314,497 $243,448 $173,868 $0 $0 $0 $0 Net Cash after Deferred Developer Fee $0 $0 $0 $0 $0 $39,085 $14,900 $69,539 $17,071 SHRA HOME Loan
Principal Balance $6,000,000 3.00% 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 Interest for Period 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 Accumulated Interest 180,000 360,000 540,000 720,000 900,000 1,800,000 2,700,000 3,314,377 4,014,489 Payment 0 0 0 0 0 0 0 55,631 13,657
Balance $6,180,000 $6,360,000 $6,540,000 $6,720,000 $6,900,000 $7,800,000 $8,700,000 $9,258,746 $10,000,832 Building Hope (MHSA)
Principal Balance $2,600,000 3.00% 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 Interest for Period 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 78,000 Accumulated Interest 78,000 156,000 234,000 312,000 390,000 780,000 1,170,000 1,560,000 1,921,429 Payment 0 0 0 0 0 0 0 0 4,068
Balance $2,678,000 $2,756,000 $2,834,000 $2,912,000 $2,990,000 $3,380,000 $3,770,000 $4,160,000 $4,517,361
SHRA HOPWA
Principal Balance $1,000,000 3.00% 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Interest for Period 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Accumulated Interest 30,000 60,000 90,000 120,000 150,000 300,000 450,000 600,000 750,000 Payment 0 0 0 0 0 0 0 0 0
Balance $1,030,000 $1,060,000 $1,090,000 $1,120,000 $1,150,000 $1,300,000 $1,450,000 $1,600,000 $1,750,000 City of Sacramento Loan
Principal Balance $1,250,000 3.00% 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 Interest for Period 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 Accumulated Interest 37,500 75,000 112,500 150,000 187,500 375,000 562,500 750,000 937,500 Payment 0 0 0 0 0 0 0 0 0
Balance $1,287,500 $1,325,000 $1,362,500 $1,400,000 $1,437,500 $1,625,000 $1,812,500 $2,000,000 $2,187,500 SHRA Seller-Takeback Loan
Principal Balance $60,000 0.00% 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 Payment 0 0 0 0 0 0 0 0 0
Balance $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 Donner Field
Cash Flow ProformaAttachment 8
Attachment 9
Donner Field Senior Apartments
MAXIMUM INCOME AND RENT LIMITS
Affordability Levels at 30% and 50% of Area Median Income (AMI) Low Income Housing Tax Credits, HOME Investment Partnerships Program (HOME) loan, Housing Opportunities for Persons with AIDS (HOPWA) loan, Mental Health Services Act (MHSA) loan, SHRA Seller Takeback-land Loan, City of Sacramento General Funds/Measure U
loan, Waived Impact Fees, General Partner Equity,
Deferred Developer Loan
Maximum Gross Income Limits
Household Size 30% AMI 50% AMI
1 person $22,550 $37,550
2 person $25,750 $42,900
3 person $28,950 $48,250
Maximum Gross Rent Limits
Unit Size 30% AMI 50% AMI
1 Bedroom $ 643.75 $1005.00
2 Bedroom $ 723.75 $1206.00
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.