2.3 – Measure A Leveraging Ratio
2.3.1 – Average vs. Median Leveraging Ratios
Exhibit 4 below provides the average vs. median leveraging ratios for the fourth quarter of FY 2021-22. During the quarter, the Program added three development projects with an estimated total development cost totaling $279.41 million and 332 units. These changes increased the average leveraging ratios from the third quarter of FY 2021-22.
Average Leveraging Ratio - Based on the financial projections for the housing projects, it is estimated that in the fourth quarter of FY 2021-22 for every one dollar invested by the Measure A Program, the Program incentivized
4.56, on average, from outside investments (non-Measure A Funding)5 into affordable housing projects.
Median Leveraging Ratio - Based on the financial projections for the housing projects, it is estimated that in the fourth quarter of FY 2021-22 for every one dollar invested by the Measure A Program, the Program incentivized
3.86, per the median, from outside investments (non-Measure A Funding)5 into affordable housing projects.
The average of a set of numbers is the total of those numbers divided by the number of items in that set. The median of a set of numbers is the middle number, where half the numbers are lower and half the numbers are higher. The median and average might be close, but they could also be significantly different, depending upon outliers (data points that may have wide variances [differences] between the low and high points).
The County’s Supportive Housing Development Program Guidelines, version 5 (approved by the Board of Supervisors on August 13, 2019), requires that Program applicants must propose the maximum use of available non-local funds to achieve the highest reasonable financial leverage of capital resources. Measure A funds must be leveraged at a 1:3 ratio, which is, for every one dollar invested by the Measure A Program, there are three dollars available from non-Measure A funds. For purposes of the Measure A leveraging requirements, local funds will be considered non-Measure A funds.
Exhibit 4
Estimated Ratio of Outside Investments
Quarter
FY 2021-22
Estimated Total
Development
Cost
Committed
Program Funding
To-Date
Non-Measure A
Funding 5
Measure A
Leveraging Ratio
Average Median
Q4 $ 3,242,505,718 $ 583,319,628 $ 2,659,186,090 4.56 3.86 Q3 $ 2,963,093,579 $ 563,319,628 $ 2,399,773,951 4.26 3.69 Q2 $ 2,345,075,947 $ 520,819,628 $ 1,824,256,319 3.50 3.49 Q1 $ 2,329,526,832 $ 520,819,628 $ 1,808,707,204 3.47 3.49 Source: Data provided by the Office of Supportive Housing.
5 Non-Measure A Funding includes other County funds, such as No Place Like Home funds, as well as funds from cities, the State, Federal Government and non-public entities.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory
2.3.2 – Leveraging Ratio vs. Program’s Estimated Cost Share per Unit Exhibit 5 below compares the average Measure A leveraging ratio and the average for the Program’s estimated cost share per unit (from Exhibit 2) for all development and renovation projects from the beginning of FY 2018- 19 through the fourth quarter of FY 2021-22. For the fourth quarter of FY2021-22, the average Measure A Leverage Ratio increased and the Program’s estimated cost share per unit decreased due to the Program adding three development projects.
The averages will continue to fluctuate each quarter as new housing projects are added, estimated costs and Program committed funding are adjusted and finalized when projects are completed, and the number of units change.
Exhibit 5
Source: Data provided by the Office of Supportive Housing.
Historical Information
For the third quarter of FY 2021-22, the average Measure A Leverage Ratio increased and the Program’s estimated cost share per unit decreased due to the Program adding five development projects and one renovation project, increasing the committed program funds for one project, and shifting the committed program funds to non-Measure A funds for one project. For the second quarter of FY 2021-22, the average Measure A Leverage Ratio increased and the Program’s estimated cost share per unit decreased due to the Program increasing the estimated total development cost and the number of units of one development project, The Charles. For the first quarter of FY 2021-22, the average Measure A Leverage Ratio increased and the Program’s estimated cost share per unit decreased due to the Program adding one development project. $50,000
$70,000
$90,000
$110,000
$130,000
$150,000
$170,000
$190,000
2.00 2.50
3.00 3.50
4.00 4.50
5.00 Q1
FY19
Q2 - Q4
FY19 &
Q1 FY20
Q2
FY20
Q3 - Q4
FY20 &
Q1 FY21
Q2
FY21
Q3
FY21
Q4
FY21
Q1
FY22
Q2
FY22
Q3
FY22
Q4
FY22
Program's Estimated Cost Share per Unit
Measure A Leveraging Ratio
Average Measure A Leveraging Ratio and
Average Program's Estimated Cost Share per Unit,
per Quarter for FYs 2018-19, 2019-20, 2020-21, and 2021-22 Measure A Leveraging Ratio Program's Estimated Cost Share Per Unit Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory
For the fourth quarter of FY 2020-21, the two averages increased due to the adjusting of the Program committed funding for one development project, adjusting the estimated total development costs for fifteen development projects, and adding two units to one development project. For the third quarter of FY 2020-21, the two averages increased due to the Program adding five development projects and adjusting the estimated total development costs and/or the number of units for seven development projects. For the second quarter of FY 2020-21, the average Measure A Leverage Ratio decreased and the Program’s estimated cost share per unit increased due to adding two new renovation projects – Hillview Court and Casa de Novo. The two averages held steady from third quarter FY 2019-20 through the first quarter of FY 2020-21 as no new housing projects were added to the Program.
2.3.3 – Measure A Leveraging Ratio By Project
For the 44 development and renovation projects in the Program, the Measure A Leveraging Ratio ranged from a high of 86.34 for Residence Inn, which leveraged significant outside funding, to a low of 0.0031 for Curtner Studios, where nearly all funding came from the Program.
Exhibit 66
Estimated Ratio of Outside Investments per Housing Project as of June 30, 2022
# Project Name Estimated Total
Development Cost
Committed
Program Funding
To-Date
Non-Measure A
Funding a
Measure A
Leveraging
Ratio b
Development Projects
1 Gateway Senior Apartments $ 34,972,249 $ 7,500,000 $ 27,472,249 3.66 2 Crossings on Monterey 26,056,436 5,800,000 20,256,436 3.49 3 Leigh Avenue Senior Apartments 50,348,927 13,500,000 36,848,927 2.73 4 Villas on the Park 41,955,319 7,200,000 34,755,319 4.83 5 The Veranda 11,937,416 1,000,000 10,937,416 10.94
6 Quetzal Gardens 63,630,448 9,830,000 53,800,448 5.47
7 Sango Court 72,488,258 16,000,000 56,488,258 3.53
8 Iamesi Village (formerly North
San Pedro Apartments) 69,418,863 10,327,100 59,091,763 5.72 9 Calabazas (formerly Corvin)
Apartments 104,480,486 29,000,000 75,480,486 2.60
10 Page Street Apartments 55,178,667 14,000,000 41,178,667 2.94 11 Agrihood Senior Apartments 83,273,350 23,550,000 59,723,350 2.54 12 Mariposa Place (formerly West
San Carlos Housing) 51,687,253 9,300,000 42,387,253 4.56
6 Project names colored grey indicate projects completed.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory
Estimated Ratio of Outside Investments per Housing Project as of June 30, 2022
# Project Name Estimated Total
Development Cost
Committed
Program Funding
To-Date
Non-Measure A
Funding a
Measure A
Leveraging
Ratio b
13 Blossom Hill Housing 79,676,906 19,100,000 60,576,906 3.17 14 Vela Apartments (formerly Alum
Rock Family Housing) 61,433,464 15,650,000 45,783,464 2.93 15 Roosevelt Park 69,658,643 14,400,000 55,258,643 3.84 16 Auzerais Apartments 92,062,481 13,200,000 78,862,481 5.97 17 Gallup & Mesa 33,741,318 2,600,000 31,141,318 11.98
18 Vilas at 4th St (formerly 4th and
E. Younger Apartments) 46,811,323 7,500,000 39,311,323 5.24 19 Immanuel-Sobrato (formerly
Moorpark) Apartments 73,548,992 16,654,646 56,894,346 3.42 20 Vitalia (formerly Bascom)
Apartments 64,054,314 15,800,000 48,254,314 3.05
21 Kifer Senior Apartments 59,016,497 7,400,000 51,616,497 6.98 22 La Avenida Apartments 78,077,678 19,000,000 59,077,678 3.11 23 Algarve Apartments 64,635,282 11,500,000 53,135,282 4.62 24 Gateway Tower 243,010,413 53,000,000 190,010,413 3.59 25 Alum Rock Multifamily 47,804,774 11,600,000 36,204,774 3.12 26 Dupont Family Apartments 135,698,724 7,000,000 128,698,724 18.39 27 Sunol-West San Carlos 139,383,616 29,720,215 109,663,401 3.69 28 Tamien Station TOD 100,867,325 25,000,000 75,867,325 3.03 29 The Charles 78,729,074 12,480,000 66,249,074 5.31
30 Royal Oak Village 49,438,333 9,891,000 39,547,333 4.00 31 McEvoy Apartments 134,939,435 23,500,000 111,439,435 4.74 32 Orchard Gardens 107,210,734 13,850,000 93,360,734 6.74 33 Bellarmino Place 96,736,665 5,750,000 90,986,665 15.82 34 Hawthorn Senior Apartments 76,107,250 15,550,000 60,557,250 3.89 35 Lot 12 115,683,548 9,750,000 105,933,548 10.86
36 Alvarado Park (San Jose) 70,391,207 4,600,000 65,791,207 14.30 Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory
Estimated Ratio of Outside Investments per Housing Project as of June 30, 2022
# Project Name Estimated Total
Development Cost
Committed
Program Funding
To-Date
Non-Measure A
Funding a
Measure A
Leveraging
Ratio b
37 The Magnolias (Morgan Hill) 64,368,522 13,200,000 51,168,522 3.88 38 Sonora Court (Sunnyvale) 144,652,410 2,200,000 142,452,410 64.75 Development Projects Total $2,993,166,599 $526,902,961 $2,466,263,638 Renovation Projects
1 Markham I $26,809,742 $7,000,000 $19,809,742 2.83
2 Markham II 26,593,698 7,200,000 19,393,698 2.69
3 Curtner Studios 14,995,679 14,950,000 45,679 <0.01
4 Hillview Court 80,300,000 21,900,000 58,400,000 2.67
5 Casa de Novo 13,300,000 4,366,667 8,933,333 2.05
6 Residence Inn 87,340,000 1,000,000 86,340,000 86.34
Renovation Projects Total 249,339,119 56,416,667 192,922,452 Total Development and Renovation
Projects $ 3,242,505,718 $ 583,319,628 $ 2,659,186,090 4.56 Source: Data provided by the Office of Supportive Housing. a Non-Measure A Funding includes other County funds, such as No Place Like Home funds, as well as funds from cities, the State, Federal Government and non-public entities. b The Measure A Leveraging Ratio is calculated by dividing “Non-Measure A Funding” by “Committed Program Funding.” It is important to note that the Measure A Leveraging Ratios are based on projections and are likely to change over time as more housing projects are added to the Program and as individual projects are completed and actual costs are finalized.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory
2.4 – Housing Development Units
2.4.1 – Housing Types
The following six types of housing are being developed by the Program’s development and renovation projects.
The Measure A Program Guidelines includes development goals for four of the six housing types, which are listed below. Goals are not included in the guidelines for low income and moderate income. • Permanent Supportive Housing (PSH): Housing units that provide long-term rental assistance, case management, and supportive services to the most vulnerable chronically homeless individuals and families. Goal is 1,800 units.
• Rapid Rehousing (RRH): Housing units offered to individuals and families to transition from homelessness to permanent housing through time-limited support services such as rental and financial assistance, case management, and other support services. Goal is 1,600 units. • Extremely Low-Income (ELI): Housing units offered at rental rates below market value to households making up to 30 percent of the area median income (AMI). Goal is 800 units. • Very Low-Income (VLI): Housing units offered at rental rates below market value to households making 31 to 50 percent of the AMI. Goal is 600 units.
• Low Income (LI): Housing units offered at rental rates below market value to households making 51 to 80 percent of the AMI. The Measure A Program Guidelines do not include a development goal for LI. • Moderate Income (MI): Housing units offered at rental rates below market value to households making between 81 percent and 120 percent of the AMI. The Measure A Program Guidelines do not include a development goal for MI.
2.4.2 – Total Housing Development Units
The Program’s current funding commitment will result in developing a total of 4,503 units as of June 30, 2022. 3,693 units (76.94 percent) have housing types that count towards the Program’s development goal of 4,800 units. An additional 810 units (751 low and moderate income units, and 59 staff units7 ) are in development but
do not count towards the Program’s development goal of 4,800.
Source: Data provided by the Office of Supportive Housing. 7 Staff units are units that staff of the property management company occupy in exchange for managing the property. 3,693 751 59
- 600 1,200 1,800 2,400 3,000 3,600 4,200 4,800
Total Units
in Development
Measure A Units in Development as of June 30, 2022
Count Toward Goal MI & LI Staff Units
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory
2.4.3 – Housing Development Goals
As of June 30, 2022, the Program’s current funding commitment will assist in developing 76.94 percent of development and renovation units (3,693) per the Program’s goal (4,800). As of June 30, 2022, each housing type had the following development commitments:
• 93.11 percent of the goal for PSH units,
• 31.31 percent of the goal for RRH units,
• 90.13 percent of the goal for ELI housing units, and
• 132.50 percent of the goal for VLI housing units.
There are also 671 units of LI housing and 80 units of MI housing that are currently planned for development or being built. The Program Guidelines do not stipulate a development goal for those types of housing.
Exhibit 7 below and on the following pages outlines, by project, the number of units being built by the Program by the six housing types. Exhibit 7 also includes at the end of the table the Program’s development goals for each housing type as listed in the Measure A Program Guidelines.
The Program’s units and percentages increased during the fourth quarter of FY 2021-22 due to the Program adding three development projects. In addition, the types of housing units changed for five development projects.
Exhibit 78
Housing Development Goals vs Units Under Development
as of June 30, 2022
# Project Name No. of
Units a PSH RRH ELI VLI LI b MI b
Development Projects
1 Gateway Senior Apartments 75 37 0 0 7 30 0
2 Crossings on Monterey 39 20 0 0 11 7 0
3 Leigh Avenue Senior
Apartments 64 63 0 0 0 0 0
4 Villas on the Park 84 83 0 0 0 0 0
5 The Veranda 19 6 0 0 12 0 0
6 Quetzal Gardens 71 28 0 19 0 23 0
7 Sango Court 102 51 0 26 16 8 0
8 Iamesi Village (formerly North
San Pedro Apartments) 135 109 0 0 25 0 0
9 Calabazas (formerly Corvin)
Apartments 145 80 0 0 50 14 0
10 Page Street Apartments 82 27 0 27 27 0 0
11 Agrihood Senior Apartments 165 54 0 54 0 55 0
8 Project names colored grey indicate projects completed.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory
Housing Development Goals vs Units Under Development
as of June 30, 2022
# Project Name No. of
Units a PSH RRH ELI VLI LI b MI b
12 Mariposa Place (formerly West
San Carlos Housing) 80 0 39 0 40 0 0
13 Blossom Hill Housing 147 49 0 48 48 0 0
14 Vela Apartments (formerly Alum
Rock Family Housing) 87 29 14 8 18 16 0
15 Roosevelt Park 80 0 40 0 20 19 0
16 Auzerais Apartments 130 64 0 0 43 21 0
17 Gallup & Mesa 46 23 0 2 15 5 0
18 Villas at 4th St (formerly 4th and
E. Younger Apartments) 94 93 0 0 0 0 0
19 Immanuel-Sobrato (formerly
Moorpark) Apartments 108 106 0 0 0 0 0
20 Vitalia (formerly Bascom)
Apartments 79 16 23 0 4 34 0
21 Kifer Senior Apartments 80 54 0 8 17 0 0
22 La Avenida Apartments 100 32 0 32 25 9 0
23 Algarve Apartments 91 46 0 0 44 0 0
24 Gateway Tower 300 55 18 73 19 53 80
25 Alum Rock Multifamily 60 0 30 0 29 0 0
26 Dupont Family Apartments 141 20 20 53 0 46 0
27 Sunol-West San Carlos 154 0 51 51 0 51 0
28 Tamien Station TOD 135 0 67 0 0 67 0
29 The Charles 99 0 49 0 48 0 0
30 Royal Oak Village 73 0 18 30 24 0 0
31 McEvoy Apartments 224 20 56 56 0 90 0
32 Orchard Gardens 93 14 31 12 25 9 0
33 Bellarmino Place 116 24 0 29 52 10 0
34 Hawthorn Senior Apartments 103 20 0 27 54 0 0
35 Lot 12 120 0 20 20 40 39 0
36 Alvarado Park (San Jose) 90 23 0 31 17 18 0
37 The Magnolias (Morgan Hill) 66 7 10 23 21 4 0
38 Sonora Court (Sunnyvale) 176 45 0 42 44 43 0
Development Projects Total 4,053 1,298 486 671 795 671 80 Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory
Housing Development Goals vs Units Under Development
as of June 30, 2022
# Project Name No. of
Units a PSH RRH ELI VLI LI b MI b
Renovation Projects
1 Markham I 153 c 50 0 0 0 0 0
2 Markham II 152 c 50 0 0 0 0 0
3 Curtner Studios 179 c 111 0 0 0 0 0
4 Hillview Court 134 132 0 0 0 0 0
5 Casa de Novo TBD TBD TBD TBD TBD TBD TBD
6 Residence Inn 102 35 15 50 0 0 0
Renovation Projects Total 720 378 15 50 0 0 0
Program Totals Development and
Renovation Projects d 3,693 1,676 501 721 795 671 80
Program Goals 4,800 1,800 1,600 800 600 N/A N/A
Percentage of Units for
Development and Renovation
Projects
76.94% 93.11% 31.31% 90.13% 132.50% N/A N/A
Source: Data provided by the Office of Supportive Housing. * TBD = To be determined. N/A = not applicable.
a The number of units includes units dedicated for property managers for each project. b Amounts are only included for tracking purposes since the Measure A Program Guidelines do not stipulate a development goal for LI or MI units. c These projects contain ELI and VLI units that are going to be renovated with Measure A funds. As these units are pre-existing units, they are not counted toward the housing development goals. However, pre-existing conversions to new PSH and RRH are counted towards the housing development goals identified above. d Total number of units excludes the LI units (671 units) and MI units (80 units) since the Program Guidelines do not stipulate a development goal for LI or MI units. The total number of units also excludes the property manager units (59 units) and the pre-existing units that were inherited with the Markham I (102 units), Markham II (101 units), and Curtner Studios (67 units) projects.
2.5 – Housing Development Milestones
While it is taking longer than originally planned for development and renovation projects to be completed, all of the development and renovation projects continue to move forward. Exhibit 8 on the following pages shows the key development milestones for development and renovation projects as of June 30, 2022, and presents the initial or revised projected dates and the actual dates of achieving each milestone. The colors in the actual columns indicate the timeliness of the actual milestone dates compared to the projected dates. Green indicates the actual milestone was on time or early; yellow indicates that it occurred within 6 months of the projected date; and red indicates that it occurred six months or more after the projected date.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Quarterly Report – Second Quarter FY 2021 - 2022 MGO Advisory Page 32 of 45
Exhibit 89
Development Timeline: Projected vs. Actual Milestones
as of June 30, 2022
# Project Name
Land Use Approval Securing All Financing Construction Starts Construction Completion 100% Occupancy
Projected Actual Projected Actual Projected Actual Projected Actual Projected Actual Development Projects
1 Gateway Senior Apartments 4/2016 4/2016 11/2017 11/2017 4/2018 9/2018 5/2020* 5/2020 7/2020* 7/2020 2 Crossings on Monterey 1/2016 2/2018 6/2018 5/2018 10/2018 10/2018 10/2019 1/2020 1/2020 1/2020 3 Leigh Avenue Senior
Apartments 7/2009 7/2009 5/2018 5/2018 8/2018 2/2019 5/2021* 4/2021 7/2021* 7/2021 4 Villas on the Park 11/2016 11/2016 11/2017 11/2017 3/2018 3/2018 4/2019 10/2019 10/2019* 3/2020 5 The Veranda 6/2017 6/2017 11/2017 12/2017 3/2018 5/2018 4/2019 5/2019 6/2019 6/2019 6 Quetzal Gardens 6/2017 6/2017 12/2018 7/2019 1/2019 1/2020 10/2021* 12/2021 1/2022* 2/2022 7 Sango Court 7/2018 6/2018 8/2021* 8/2021 1/2022* 2/2022 6/2023* 8/2023* 8 Iamesi Village (formerly North
San Pedro Apartments) 12/2011 12/2011 9/2018 9/2018 11/2018 3/2019 2/2022* 2/2022 8/2022* 9 Calabazas (formerly Corvin)
Apartments 11/2018 1/2019 5/2019 6/2019 9/2019 1/2020 11/2021* 11/2021 3/2022* 3/2022 10 Page Street Apartments 9/2018 12/2018 4/2020* 4/2020 11/2020* 11/2020 11/2022* 2/2023* 11 Agrihood Senior Apartments 1/2019 1/2019 9/2020* 9/2020 6/2021* 6/2021 6/2023* 5/2024* 12 Mariposa Place (formerly
West San Carlos Housing) 12/2018 12/2019 8/2021* 8/2021 1/2022* 1/2022 5/2024* 9/2024* 13 Blossom Hill Housing 4/2019 12/2019 5/2021* 6/2021 6/2021* 6/2021 3/2023* 1/2024* 9 Project names colored grey indicate projects completed.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 33 of 45
Development Timeline: Projected vs. Actual Milestones
as of June 30, 2022
# Project Name
Land Use Approval Securing All Financing Construction Starts Construction Completion 100% Occupancy
Projected Actual Projected Actual Projected Actual Projected Actual Projected Actual 14 Vela Apartments (formerly
Alum Rock Family Housing) 4/2019 1/2020 4/2020* 4/2020 11/2020* 12/2020 8/2022* 7/2023* 15 Roosevelt Park 2/2019 2/2019 2/2022* 2/2022 7/2022* 7/2024* 12/2024* 16 Auzerais Apartments N/A 6/2018 4/2021* 4/2021 10/2021* 10/2021 1/2024* 4/2024* 17 Gallup & Mesa 11/2019 5/2020 12/2020* 12/2020 4/2021* 4/2021 11/2022* 6/2023* 18 Villas at 4th St (formerly 4th
and E. Younger Apartments) 6/2020 6/2020 3/2021 4/2021 4/2021 4/20/21 10/2022* 4/2023* 19 Immanuel-Sobrato (formerly
Moorpark) Apartments 7/2020 8/2020 4/2021 6/2021 7/2021* 7/2021 3/2023* 9/2023* 20 Vitalia (formerly Bascom)
Apartments
2/2021* 2/2021 8/2021* 8/2021 1/2022* 1/2022 8/2023* 10/2023* 21 Kifer Senior Apartments 8/2021* 3/2021 12/2021* 12/2021 6/2022* 6/2022 1/2024* 8/2024* 22 La Avenida Apartments 7/2021* 7/2021 12/2022* 12/2022* 6/2024* 9/2024* 23 Algarve Apartments 10/2020* 10/2020 12/2021* 12/2021 9/2022* 5/2024* 5/2024* 24 Gateway Tower 12/2016 12/2023* 12/2023* 10/2026 1/2027 25 Alum Rock Multifamily 8/2021* 9/2021 9/2022* 11/2022 5/2024 9/2024 26 Dupont Family Apartments 2/2020 12/2024* 1/2025* 11/2026* 5/2027* 27 Sunol-West San Carlos
Apartments 6/2021 8/2021 9/2022* 12/2022* 10/2024 12/2024 28 Tamien Station TOD 12/2020 9/2022* 12/2022* 4/2024 7/2024 29 The Charles 6/2021 10/2021 9/2022* 11/2022 11/2024* 7/2025* 30 Royal Oak Village 8/2021 12/2021 12/2021 6/2022* 6/2022 10/2023* 3/2025* 31 McEvoy Apartments 2/2020 12/2023* 6/2024* 3/2026* 9/2026* Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 34 of 45
Development Timeline: Projected vs. Actual Milestones
as of June 30, 2022
# Project Name
Land Use Approval Securing All Financing Construction Starts Construction Completion 100% Occupancy
Projected Actual Projected Actual Projected Actual Projected Actual Projected Actual 32 Orchard Gardens 11/2021 4/2023 4/2023 5/2025 8/2025
33 Bellarmino Place 12/2020 12/2022 12/2022 7/2024 9/2024 34 Hawthorn Senior Apartments 8/2022* 1/2024 1/2024 6/2025 7/2025 35 Lot 12 3/2022 4/2022 9/2023 9/2023 9/2025 3/2026
36 Alvarado Park 8/2020 12/2023 12/2023 6/2025 9/2025
37 The Magnolias 11/2021 4/2023 9/2023 5/2025 7/2025
38 Sonora Court 11/2021 12/2023 1/2024 10/2026 3/2027
Renovation Projects
1 Markham I a N/A N/A 5/2019 5/2019 11/2019* 11/2019 12/2020 12/2020 12/2020 12/2020 2 Markham II a N/A N/A 12/2020* 12/2020 5/2021* 5/2021 8/2022* 9/2022* 3 Curtner Studios 2/2019 2/2019 3/2019 3/2020 9/2019 3/2020 10/2021* 10/2021 1/2022* 1/2022 4 Hillview Court 8//2020 12/2020 12/2020 9/2022* 9/2022* 5 Casa de Novo b
6 Residence Inn 3/2022 4/2022 7/2022 4/2023 7/2023
Source: Data provided by the Office of Supportive Housing.
Green indicates the actual date of the action occurred ahead of or on schedule with the revised projected date.
Yellow indicates the actual date of the action occurred later than the revised projected date, but within six months of the revised projected date; or no action has occurred within six months of the revised projected date.
Red indicates the actual date of the action occurred more than six months after the revised projected date; or no action has occurred more than six months after the original projected date.
* Original project dates were revised. a These projects have previously been constructed and the Program’s commitment is to preserve and renovate the existing ELI housing, which will also result in new PSH units. b The property is currently operating the 54-room motel as permanent supportive housing and interim housing until approximately July 2022, when the buildings will be demolished and the site redeveloped as affordable housing. Therefore, milestone dates are not applicable.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 35 of 45
2.5.1 – Significant Activities by Development and Renovation Projects The following milestones were achieved during the fourth quarter of FY 2021-22 (April 1, 2022 through June 30, 2022):
• Two projects started construction (Kifer Senior Apartments and Royal Oak Village); • One project obtained land use approval (Lot 12); and
• Three projects were added.
While it is taking longer than originally planned for development and renovation projects to be completed, all of the development and renovation projects continue to move forward. Below are highlights of significant activity by project as of June 30, 2022, and as illustrated in Exhibit 8 on the previous pages. Statements in bold are new to the report.
10 For activity occurring after June 30, 2022, see the County OSH website. • Quetzal Gardens
o 100% occupancy as of February 2022.
• Sango Court
o Missed its initial goal to begin construction by March 2019, but started in February 2022. Estimated completion is June 2023.
• Iamesi Village (formerly North San Pedro Apartments)
o Missed its initial goal to complete construction by July 2020, but completed in February 2022. o Lease up activities are underway with a target date of August 2022 for 100% occupancy. • Calabazas (formerly Corvin) Apartments
o 100% occupancy as of March 2022.
• Page Street Apartments
o Missed its initial goal to complete construction by March 2021. The revised target date is November 2022.
• Agrihood Senior Apartments
o Missed its initial goal to complete construction by January 2022. The revised target date is June 2023.
• Mariposa Place (formerly West San Carlos Housing)
o Missed its initial goal to begin construction by January 2020, but started January 2022. o Missed its initial goal to complete construction by January 2022. The revised target date is May 2024. • Blossom Hill Housing
o Missed its initial goal to complete construction by September 2021. The revised target date is March 2023.
• Vela Apartments (formerly Alum Rock Family Housing)
o Missed its initial goal to complete construction by August 2021. The revised target date is August 2022.
• Roosevelt Park
o Missed its initial goal to secure all financing by March 2020, but secured in February 2022. o Missed its initial goal to start construction by May 2020. The revised target date is July 2022. • Auzerais Apartments
o Missed its initial goal to being construction by December 2020, but started in October 2021. The construction completion target date is January 2024.
10 Project status information provided by the Office of Supportive Housing.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 36 of 45
• Gallup and Mesa
o Missed its initial goal to begin construction in October 2020, but started construction in April 2021. o Missed its initial goal to complete construction by May 2022. The revised target date is November 2022.
• Villas at 4th St (formerly 4th & E Younger Apartments) o Missed its initial goal to start construction by March 2021, but started in April 2021 with a target completion date of October 2022.
• Immanuel-Sobrato (formerly Moorpark) Apartments
o Missed its initial goal to start construction by June 2021, but started in July 2021 with a target completion of March 2023.
• Vitalia (formerly Bascom) Apartments
o Missed its initial goal to start construction by May 2021, but started in January 2022 with a target completion date of August 2023.
• Kifer Senior Apartments
o Missed its initial goal to secure all financing by June 2021, but received in December 2021 with the awarding of a 4 percent tax credit.
o Missed its initial goal to start construction by June 2021, but started in June 2022 with a target completion date of January 2024.
• La Avenida Apartments
o Missed its initial goal to secure all financing by July 2021. The revised target date is September 2022. o Submitted financing application for a 4 percent tax credit in March 2022 and received an award in June 2022.
• Algarve Apartments
o Missed its initial goal to secure all financing by October 2020, but received in December 2021 with the awarding of a 4 percent tax credit.
o Missed its initial goal to start construction by November 2020. The revised target date is September 2022.
• Gateway Tower
o Missed its initial goal to secure all financing by September 2021. Anticipates applying for a 4 percent tax credit in fall of 2023. The revised target date is December 2023. • Alum Rock Multifamily
o Missed its initial goal to obtain land use approval by August 2021, but received in September 2021. o Missed its initial goal to secure all financing by June 2022. Applied for a 9 percent tax credit in June 2022.The revised target date to secure all financing is September 2024. • Dupont Family Housing
o Missed its initial goal to secure all financing by December 2021. The revised target date is December 2024. Applied for the Affordable Housing and Sustainable Communities (AHSC) and Transit Oriented Development (TOD) funding in June 2021 and was awarded on January 2022. Anticipates applying for a 4 percent tax credit in September 2024.
• Sunol-West San Carlos Apartments
o Missed its initial goal to secure all financing by December 2021. The revised target date is September 2022. Anticipates applying for a 4 percent tax credit in July 2022. • Tamien Station TOD
o Missed its initial goal to secure all financing by September 2021. The revised target date is December 2022. Anticipates applying for a 4 percent tax credit in August 2022. • The Charles
o Missed its initial goal to obtain land use approval by June 2021, but received in October 2021. o Missed its initial goal to secure all financing by June 2022. The revised target date is December 2022. Anticipates applying for a 4 percent tax credit in July 2022.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 37 of 45
• Royal Oak Village
o Missed its initial goal to being construction by May 2022, but started in June 2022.
Construction is estimated be completed in October 2023. • Hawthorn Senior Apartments
o Missed its initial goal to obtain land use approval by April 2022. Submitted streamlined applications in April 2022 and were deemed consistent with SB35 by the San Jose Planning Department in May 2022. The revised target date is August 2022. • Lot 12
o Missed its initial goal to obtain land use approval by March 2022, but received in April 2022. • Markham II
o Missed its initial goal to begin construction by September 2019, but started construction in May 2021. o Missed its initial goal to complete construction by October 2020. The revised target date is August 2022.
• Curtner Studios
o Completed construction in October 2021 and 100% occupancy. • Hillview Court
o The project achieved its Homekey goal of occupying 50% of the units in February 2021. o Missed its initial goal to complete construction of the second rehabilitation phase by December 2021.
The revised target date is September 2022.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 38 of 45
SECTION 3 – PROPERTIES AND PARTNERSHIPS
3.1 – Properties’ Financial Data
Starting in FY 2019-20, in response to concerns of the Committee and at the direction of the Board of Supervisors, the Program began the strategy of purchasing property and re-purposing County-owned property to use for future development of affordable housing. Acquiring property in advance is a promising strategy to reduce the Program’s future cost share per unit for these developments. During the fourth quarter of FY 2021- 22, the Program did not add any properties. As presented in Exhibit 9 below, the Program had committed $146.93 million of Program funds to-date and expended $96.97 million on the 20 properties as of June 30, 2022.
The Program expects to develop each property with affordable housing within five years of the property’s acquisition date. Until a development plan has been approved by the Board of Supervisors, the estimated total cost, additional committed program funding to develop the properties into affordable housing, and the number of units will be unknown. The Program estimates a total of 600 – 700 units will developed on the following properties. Developers have been selected for ten of the properties as noted in Exhibit 9 below.
Exhibit 9
Properties’ Financial Data
as of June 30, 2022
(Unaudited)
# Project Name
Program Funds
Committed
To-Date
Total Program
Funds
Expended
To-Date
Program Funds
Expended
During Q4
Developer
Selected
1 Western Motel a (Santa Clara) $ 9,000,000 $ 9,000,000 $ 0 Yes 2 3071 Driftwood Drive b (San Jose) 830,000 760,699 0 Yes 3 62 Ferrari Avenue c (San Jose) 763,406 760,000 0
4 92 Ferrari Avenue c (San Jose) 763,406 760,000 0
5 98 Ferrari Avenue c (San Jose) 763,406 760,000 0
6 110 Ferrari Avenue c (San Jose) 763,406 760,000 0
7 120 Ferrari Avenue c (San Jose) 743,316 740,000 0
8 Atlanta Avenue & Hull Avenue d (San Jose) 1,305,826 1,300,000 0 9 Clayton Avenue d (San Jose) 592,644 590,000 0
10 Almaden Road d (San Jose) 9,994,590 9,950,000 0
11 330 Distel Circle e (Los Altos) 11,031,600 500,000 0 Yes 12 3075 Driftwood Drive f (San Jose) 2,199,800 2,001,314 0 Yes 13 10591 N. De Anza Blvd g (Cupertino) 8,300,000 6,901,228 0 14 The Hub, 1540 Parkmoor Ave h (San Jose) 12,000,000 853,760 853,760 Yes 15 2001 The Alameda i (San Jose) 14,862,500 14,869,588 0 Yes 16 1870 & 1888 Senter Road j (San Jose) 28,040,000 27,995,967 0 17 1390 S Winchester Blvd. k (San Jose) 4,440,000 4,402,090 0 Yes Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 39 of 45
Properties’ Financial Data
as of June 30, 2022
(Unaudited)
# Project Name
Program Funds
Committed
To-Date
Total Program
Funds
Expended
To-Date
Program Funds
Expended
During Q4
Developer
Selected
18 3550 El Camino Real l (Santa Clara) 14,040,000 14,002,778 0 Yes 19 901 and 903 E El Camino Real m (Mountain
View) 7,000,000 62,966 0 Yes
20 East Santa Clara Street Site n
(San Jose) 19,500,000 0 0 Yes
Properties Total $ 146,933,900 $ 96,970,390 $ 853,760
Source: Data provided by the Office of Supportive Housing. a The County acquired property that is currently developed with a single-story 31-room motel building totaling 12,150 square feet. The intent of the Program acquiring the property is to work with a development corporation to redevelop the property for affordable housing to provide between 35 and 65 units. b The County acquired property that is currently developed with a single-tenant office building with a gross and rentable area of 4,259 square feet. The property was the former fire department headquarters and has been vacant since 2014. The intent of the Program acquiring the property is to demolish the building and develop affordable housing. c The County transferred property it owns from the Roads and Airports Department. The property is currently developed with a single family home, which the Program would preserve and offer as affordable housing. d The County transferred property it owns from the Roads and Airports Department. The property is currently vacant and zoned for residential use. The intent of transferring the property is for the Program to develop affordable housing. e The County acquired property that is currently developed with a 12,204 square foot building with a single tenant. The intent of the Program acquiring the property is to develop affordable housing. f The County acquired property that is currently developed with a vacant one-story retail building containing 2,600 square feet. The intent of the Program acquiring the property is to hold the property in its vacant condition for two to three years in connection with a potential assemblage of the 3071 Driftwood Drive property and the 1390 S Winchester Blvd property (owned by Charities Housing Development Corporation) for development as affordable housing in the future. g The County acquired property that is currently developed with a single-story commercial building including 13,300 square feet of space formerly occupied by the Outback Steakhouse. The intent of the Program acquiring the property is to hold the property in its vacant condition and work with a developer in the County’s Developer Qualified Pool to explore options for the development of the site. h In August 2017, the County used non-Measure A funds to acquire the property at 1540 Parkmoor Ave. to be part of the Hub, the Social Services Agency program that serves current and former foster youth. In December 2019, the Board directed the County to proceed with exploring a affordable and supportive housing option for the property. In March 2021, the Program selected a developer proposal for the property and the Board approved delegation of authority to execute a development agreement on May 25, 2021. i The County acquired property that is currently developed with a 26,341 square foot class C office and 137 parking spaces. The intent of the Program acquiring the property is to redevelop the property for affordable housing. The property is located in the Alameda (West) Urban Village, an area slated for growth in the City of San Jose’s Horizon 3 timeframe under the Envison San Jose 2040 General Plan. j The County acquired property that is currently developed with a 35,343 square foot single story office building on 3.04 acres, a 26,546 square foot single story office building on 1.93 acres, and a vacant 1.16 acre parcel. The intent of the Program acquiring the property is to work with a developer in the County’s Developer Qualified Pool to explore options for the development of the site. k The County acquired this property with the intent to assemble it with the properties of 3071 Driftwood Drive and 3075 Driftwood Drive to develop affordable housing. l The County acquired property that is currently developed with the Bella Vista Hotel, consisting of approximately 1.12 acres of land and a hotel with 67 total rooms and 61 parking spaces. The intent of the Program acquiring the property is to use it for interim housing for people experiencing homelessness or who are at risk of experiencing homelessness and then work with a development corporation to redevelop the property for affordable housing. m The County acquired property that is currently developed with the Crestview Hotel, consisting of 66 total rooms and 79 parking spaces.
The intent of the Program acquiring the property is to rehabilitate it into a site suitable for families and youth experiencing homelessness or who are at risk of experiencing homelessness and then work with a development corporation to redevelop the property for affordable housing. n The County used non-Measure A funds to acquire the property that is approximately comprised of seven acres bounded by East Santa Clara Street, East St. John Street, N. Seventeenth Street, and a vacated portion of N. Fifteenth Street in San José. The intent of the Program acquiring the property is to work with a development corporation to develop multi-family affordable housing.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 40 of 45
3.2 – Partnership Projects’ Financial Data
On November 17, 2020, the Program entered into a ten year funding agreement with the Santa Clara Valley Transportation Authority (VTA). Through the funding agreement the Program will provide funding for predevelopment activities and VTA will provide staff to serve as contract administrators. In addition, VTA commits to making the four sites listed in Exhibit 10 below available for affordable and supportive housing.
As of June 30, 2022, the Program had committed $800,000 and expended $250,857 for the four VTA partnership projects. As presented in Exhibit 10 below, these properties are in the pre-development phase, and therefore, the estimated total cost, additional committed program funding to develop the properties into affordable housing, and the number of units are unknown as of June 30, 2022.
Exhibit 10
Partnership Projects’ Financial Data
as of June 30, 2022
(Unaudited)
# Project Name a
Program Funds
Committed
To-Date
Total Program
Funds
Expended
To-Date
Program Funds
Expended
During Q4
1 VTA Berryessa BART Station
$ 800,000 $ 250,857 $ 24,101
2 VTA Branham Station
3 VTA Capitol LRT Station
4 VTA Gilroy Transit Center
Partnership Projects Total $ 800,000 $ 250,857 $ 24,101 Source: Data provided by the Office of Supportive Housing.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 41 of 45
SECTION 4 – AFFORDABLE HOUSING LOAN PROGRAMS
In addition to housing developments and property acquisitions, the Program has also committed funds to the First-Time Homebuyer Assistance Program and the Housing Trust Silicon Valley – Supportive Housing Fund, which are discussed in this section.
4.1 – First-Time Homebuyer Assistance Program (Empower Homebuyers) On June 5, 2018, the County Board of Supervisors approved $25 million of Measure A funds to finance a new, first-time homebuyer down payment loan program. The First-Time Homebuyer Assistance Program is administered through a partnership between the County’s Office of Supportive Housing and the Housing Trust Silicon Valley (HTSV) and is called Empower Homebuyers. Of the $25 million, $23.5 million will be used to fund loans; and $1.5 million will be used for expenditures associated with the administration of the loan program, including program administration, outreach activities, educational workshops for first-time homebuyers, underwriting, and loan origination. The funds will assist approximately 235 households over the first five years of the program by providing deferred loans for down payments of up to 17% of a home’s purchase price. The loan will be subordinate to the first mortgage. The program does not require monthly principal or interest payments. Borrowers will repay the principal loan amount plus a share of the appreciation, based on the percentage of the loan borrowed. Payments will be deferred until the earlier of the maturity date of the loan, the sale of the home, or a refinance of the first mortgage.
In accordance with the Office of Supportive Housing’s agreement with HTSV for the administration of the loan program, HTSV monitors the number of applicants that apply for a Measure A funded loan. HTSV maintains statistics for six different stages of the loan process as defined below:
• Intake Applications: This is the pre-screening of applicants to determine whether applicants are eligible for the loan program (review income, confirm first-time homebuyer status, and review credit history). • Applications: Only the applicants that make it through the pre-screening in the intake application phase are able to submit an Empower program eligibility application that includes required documentation such as a senior lender pre-approval letter by an interested applicant during a face-to-face appointment with HTSV staff.
• Pre-Approvals: Completion of underwriting and determination of program eligibility for the applicant. A program pre-approval letter will be provided to verify program eligibility that includes a 90-day expiration date. Includes a one-time underwriting review after the 90-day expiration and reissuance of the program eligibility for 90 days.
• Purchase Loan Application: Submission of the purchase loan application and accompanying purchase transaction documents after acceptance of a purchase sale agreement for selected property. Begin the preparation of program loan documents and escrow instructions. Funding and recording of purchase loan.
• Closed: Successful funding and the creation of a new loan. Recorded legal documents are received. • Cancelled: Applicant failed to provide required documentation for the program within 30 days of submission of application.
• Withdrawn: Applicant decides to withdraw the application. • Denied: Applicant fails to meet required eligibility requirements for the program.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 42 of 45
Exhibit 11 below provides an overview of the application statistics for the six stages of the loan process described above for the fourth quarter of FY 2021-22.
Exhibit 11
Empower Homebuyers Application Statistics
By Quarter of FY 2021-22
Quarter
Intake
Applications Applications
PreApprovals
Purchase
Loan
Application Closed*
Cancelled/
Withdrawn/
Denied
Loans
Purchased
Q4 252 10 4 3 3 8 5
Q3 283 5 3 2 1 15 0
Q2 327 16 9 2 4 6 11
Q1 424 13 4 6 5 4 0
Total FY 1,286 44 20 12 13 33 16
Source: Data provided by the Office of Supportive Housing. *There may be timing differences between when a loan is closed and when it is funded.
HTSV received their first intake applications in September 2018, and Empower Homebuyers officially launched November 20, 2018. Empower Homebuyers began funding loans in the second quarter of FY 2019-20, and todate has purchased a total of 41 loans for $4,713,640. Exhibit 12 below provides a summary of the funds expended for the administration of the loan program and the total program funds expended to-date. Of the $25 million committed to Empower Homebuyers, $5.85 million was expended to-date for the purchase of loans and administration of the loan program. During FY 2021-22, Empower Homebuyers expended $2.15 million:
$304,807 for the administration of the loan program and $1.84 million for the purchase of 16 loans. During the fourth quarter of FY 2021-22, Empower Homebuyers expended $234,070 for the administration of the loan program and purchased 5 loans for $577,830.
Exhibit 12
Empower Homebuyers Funds Expended
By Quarter of FY 2021-22
Administration of Program Funding of Loans Total Empower Funds Expended Quarter
Program Funds
Expended
During Quarter
Total Program
Funds
Expended
to-date*
Program Funds
Expended
During Quarter
Total Program
Funds
Expended
to-date*
Expended
during the
Quarter
Expended
to-date*
Q4 $ 234,070 $ 1,139,300 $ 577,830 $ 4,713,640 $ 811,900 $ 5,852,940 Q3 929 905,230 0 4,135,810 929 5,041,040
Q2 98,011 904,301 1,266,500 4,135,810 1,364,511 5,040,111 Q1 (28,203) 806,290 0 2,869,310 (28,203) 3,675,600
Total FY $ 304,807 $ 1,844,330 $ 2,149,137
Source: Data provided by the Office of Supportive Housing. * Total program funds expended to-date from the inception of the Empower Homebuyers through the fourth quarter of FY 2021-22, which ended June 30, 2022.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 43 of 45
4.2 – Housing Trust Silicon Valley (HTSV) – Supportive Housing Fund (SHF) In June 2015, the County Board of Supervisors approved $5 million in lending capital (“County Contribution”) to the Supportive Housing Fund (SHF) to make predevelopment loans for the creation and preservation of permanent housing with supportive services for extremely low-income individuals and families, and those with special needs. In addition, in June 2015, the County Board of Supervisors entered into a memorandum of understanding (MOU) with Housing Trust Silicon Valley (HTSV) to administer the SHF to make loans to qualified developers.
On April 11, 2017, the County Board of Supervisors entered into an amended MOU with HTSV to augment the County’s contribution to the SHF by an additional $11.9 million to make predevelopment loans in accordance with the 2016 Measure A Affordable Housing Bond. This additional contribution to SHF was initially funded through the County’s general fund, with the intent to be repaid by Measure A bond funds once the bonds were issued. The 2016 Measure A Affordable Housing Bond, which was approved by the voters of Santa Clara County, authorizes the County Board of Supervisors to provide affordable housing for vulnerable populations including veterans, seniors, the disabled, low and moderate income individuals or families, foster youth, victims of abuse, the homeless, and individuals suffering from mental health or substance abuse illness.
The amended MOU stipulates that the use of the $11.9 million funded by Measure A shall be used only for the purposes authorized by Measure A. The MOU further states that HTSV will provide the County with an annual summary report on all SHF’s disbursed funds, including demographic information collected. HTSV shall also provide the County with a report showing the amount of funds expended and the status of any project required or authorized to be funded with sufficient detail that is needed for the completion of an annual report and to ensure compliance with Measure A. Upon termination of the MOU, HTSV is to return to the County and County Contributions (including Measure A contributions) funds that have never been committed to a revolving loan through the SHF to the County no later than 30 days from the date of termination, expiration, or cancellation of the MOU. After termination, expiration, or cancellation of the MOU, any loan repayments received by HTSV must continue to be used for the intent and purpose of the SHF.
The SHF is a revolving loan fund, which uses Program funds to continuously provide predevelopment loans to qualified Program housing developments. SHF provides new loans using the funds received from the repayments of its loans. As of the fourth quarter of FY 2021-22, one new loan was provided for the development project Alum Rock Multifamily for $2.21 million.
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 44 of 45
SECTION 5 – GENERAL OBLIGATION BONDS
5.1 – 2017 Series A Housing General Obligation Bonds
On November 9, 2017, the County issued the 2017 Series A Housing General Obligation Bonds in the amount of $250 million. The total cost of the bonds is projected to be $321.38 million, including $71.38 million in interest.
The 2017 Series A Housing General Obligation Bonds fully mature in 30 years on August 1, 2047. Exhibit 14 below details the amount of bonds issued, the cost of the bonds, total interest payable, total amount paid on the bonds through June 30, 2022, and the amount left to pay on the bonds as of June 30, 2022.
Exhibit 14
2017 Series A Housing General Obligation Bonds
Quarter Amount of
Bonds Issued
Total Cost of
Bonds*
Total Interest
Payable on
Bonds
Total Amount
Paid Through
end of quarter
Total Amount Left
to Pay as of end of
quarter
Q4 $ 250,000,000 $ 321,376,386 $ 71,376,386 $ 177,763,551 $ 143,612,835 Source: Data provided by the County Finance Agency.
* This is the total cost of the bonds (principal and interest) over the 30 years that the bonds will be outstanding.
Exhibit 15 details the amount of principal and interest paid during each quarter of FY 2021-22. During FY 20121- 22, the Program paid $4.21 million: $1.12 million in principal and $3.10 million in interest. Interest on the bonds is payable semi-annually on February 1st and August 1st; while principal is payable annually on August 1st. No interest or principal payments were made during the quarter.
Exhibit 15
2017 Series A Housing General Obligation Bonds Activity Amounts Paid During the Quarter of FY 2021-22
Quarter Principal Paid Interest Paid Total Debt
Service Paid
Q4 $ 0 $ 0 $ 0
Q3 0 1,543,978 1,543,978
Q2 0 0 0
Q1 1,115,000 1,555,351 2,670,351
Total FY $ 1,115,000 $ 3,099,329 $ 4,214,329
Source: Data provided by the County Finance Agency.
The total interest cost for the 2017 bonds issued was 3.199%. The range of interest rates is dependent upon the type and duration of the bonds. The serial bonds that mature through 2032 range from 1.65% to 3.24%. The term bonds, which are due in 2037 and 2047, have interest rates of 3.43% and 3.55%, respectively. The bonds were rated AAA and AA+, respectively, by two of the national rating agencies, Standard and Poor’s (S&P) and Fitch Ratings, Inc. (Fitch).
Citizens’ Oversight Committee
County of Santa Clara Measure A 2016 Affordable Housing Bond Program Independent Advisor’s Annual and Fourth Quarter Report for FY 2021-22 MGO Advisory Page 45 of 45
5.2 – 2021 Series B Housing General Obligation Bonds
On July 14, 2021, the County issued the 2021 Series B Housing General Obligation Bonds in the amount of $350 million. The total cost of the bonds is projected to be $422.01 million, including $72.01 million in interest.
The 2021 Series B Housing General Obligation Bonds fully mature in 26 years on August 1, 2047. Exhibit 16 below details the amount of bonds issued, the cost of the bonds, total interest payable, total amount paid on the bonds through June 30, 2022, and the amount left to pay on the bonds as of June 30, 2022.
Exhibit 16
2021 Series B Housing General Obligation Bonds
Quarter Amount of
Bonds Issued
Total Cost of
Bonds*
Total Interest
Payable on
Bonds
Total Amount
Paid Through
end of quarter
Total Amount
Left to Pay as of
end of quarter
Q4 $ 350,000,000 $ 422,006,152 $ 72,006,152 $ 3,812,313 $ 418,193,839 Source: Data provided by the County Finance Agency.
* This is the total cost of the bonds (principal and interest) over the 26 years that the bonds will be outstanding.
Exhibit 17 details the amount of interest paid during each quarter of FY 2021-22. During FY 2021-22, the Program paid $3.81 million in interest. Interest on the bonds is payable semi-annually on February 1st and August 1st; while principal is payable annually on August 1st. No interest or principal payments were made during the quarter.
Exhibit 17
2021 Series B Housing General Obligation Bonds Activity Amounts Paid During the Quarter of FY 2021-22
Quarter Principal Paid Interest Paid Total Debt
Service Paid
Q4 $ 0 $ 0 $ 0
Q3 0 3,812,313 3,812,313
Q2 0 0 0
Total FY $ 0 $3,812,313 $ 3,812,313
Source: Data provided by the County Finance Agency.
The total interest cost for the 2021 bonds issued was 2.148%. The 2021 bonds were issued (sold) in a competitive sale and were rated AAA and AA+, respectively, by two of the national rating agencies, Standard and Poor’s (S&P) and Fitch Ratings, Inc. (Fitch).
Draft Performance Dashboard/Website Snapshots
Program Overview
On November 8, 2016, the people of the County of Santa Clara approved Measure A, a proposition authorizing the County to issue up to $950 million in general obligation bonds to acquire or improve real property for the purpose of providing affordable housing for vulnerable populations throughout the County. The following are highlights about the Measure A Program (Program):
• Program funds are targeted to help construct 4,800 units of affordable housing, in addition to assisting about 235 families to secure loans to finance their first homes. • In October 2017 the County issued its first series of bonds for $250 million and in July 2021 issued the second series of bonds for $350 million.
• As of June 30, 2022, the Program has committed $792.95 million, of which $25 million is committed to the first-time homebuyer loan program, $11.9 million has been committed to a Supportive Housing Fund for predevelopment loans, $25 million bridge loan for Hillview Court, $146.93 million for 20 property acquisitions, $800,000 for 4 partnership projects, and $583.32 million for 44 development and renovation projects.
• The development and renovation projects are in the process of adding 3,693 units of affordable housing included in the County’s housing goals, and an additional 671 units of low-income housing and 80 units of moderate-income housing that are not addressed in the Program’s housing goals (as discussed in the Housing Program Goals section below). • As detailed in the program overview dashboard below, this means that 61.40 percent of the bond proceeds committed for development and renovation projects are financing the development of
76.94 percent of the Program’s housing goals.
• In addition, for every dollar invested by the Program, the Program incentivizes an average of $4.56 from outside investments (Public/Private Leveraging Ratio).
Use of Bond Proceeds
The dashboards below provide details on the estimated cost share per unit and housing development, sources of funding by housing development, and actual expenditures to-date. As of June 30, 2022, we provide the following highlights:
• The Program has committed $583.32 to 44 development and renovation projects, with individual commitments ranging from $1 million (The Veranda) to $53 million (Gateway Tower). • When looking at the estimated cost per unit of housing, the Program has committed anywhere from $45,752 per unit (Markham I) to $210,938 per unit (Leigh Avenue Senior Apartments), with an average cost share of $122,212 per unit of housing.
• Although $583.32 million has been committed by the Program for these 44 development and renovation projects to-date, only $330.41 million has been actually expended to-date.
Housing Program Goals
Program housing goals aim to create 4,800 units of affordable housing. As of June 30, 2022, Program funds committed to date are projected to finance 61.40 percent of the Program’s total affordable housing goal.
Based on the Program’s funding commitments through June 30, 2022, the status of housing development goals by type of housing are as follows:
• Helping to finance 93.11 percent of the Permanent Supportive Housing (PSH) goal. • Helping to finance 31.31 percent of the Rapid Rehousing (RRH) goal. • Helping to finance 90.13 percent of the Extremely Low-Income (ELI) housing goal. • Helping to finance 132.50 percent of the Very Low-Income (VLI) housing goal. • There are 671 units of Low-Income (LI) housing incorporated into the current housing projects; however, the Program has no stated goal for this category of housing. • There are 80 units of Moderate-Income (MI) housing incorporated into the current housing projects; however, the Program has no stated goal for this category of housing.
The dashboards below provide detail on the number of units in development by housing type, as well as how each housing development contributes to each housing goal.