COUNCIL AGENDA: 1/31/23
FILE: 23-137
ITEM: 8.2
TO: HONORABLE MAYOR FROM: Jacky Morales-Ferrand
AND CITY COUNCIL Jim Shannon
SUBJECT: SEE BELOW
DATE: January 9, 2023
Approved Date
1/19/23
COUNCIL DISTRICT: 6
SUBJECT:
ACTIONS RELATED TO THE LOAN COMMITMENT FOR NEW
AFFORDABLE HOUSING DEVELOPMENT AT 1510-1540 PARKMOOR
AVENUE
RECOMMENDATION
(a) Adopt a resolution:
(1) Approving a total commitment of up to $16,826,688 from the Low and Moderate Income Housing Asset Fund and the Affordable Housing Impact Fee Fund for a Construction- Permanent Loan to Allied Housing, Inc. or an affiliated development entity for the Parkmoor Community Apartments, located at 1510-1540 Parkmoor Ave., which is being developed to provide 79 affordable rent-restricted units, and two unrestricted manager units, which commitment includes an amount not to exceed $11,803,587 in the Low and Moderate Income Housing Asset Fund and $5,023,101 in the Affordable Housing Impact Fee Fund;
(2) Authorizing a loan-to-value ratio of greater than 100% to Allied Housing Inc. or an affiliated development entity;
(3) Authorizing the loan terms to allow an increase in the rents and income restrictions up to 60% of area median income for new tenants in project-based voucher subsidized units in the event of expiration or termination of project-based vouchers for the Parkmoor Community Apartments, or for all tenants in the event of foreclosure, to the extent the City has determined such increase is needed for the feasibility of the development and allowed by other funds; and
(4) Authorizing the Director of Housing to negotiate and execute loan documents and all other documents, including any amendments thereto, related to City financing for the Parkmoor Community Apartments.
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
(b) Adopt the following 2022-2023 Appropriation Ordinance amendments in the Affordable Housing Impact Fee Fund:
(1) Decrease the Housing Project Reserve appropriation by $4,400,000; (2) Decrease the Unrestricted Ending Fund Balance by $623,101; and (3) Increase the Housing Loans and Grants appropriation to the Housing Department by $5,023,101.
(c) Adopt the following 2022-2023 Appropriation Ordinance amendments in the Low and Moderate Income Housing Asset Fund:
(1) Decrease the Housing Project Reserve appropriation by $2,245,000; (2) Decrease the Committed Projects Reserve by $9,558,587; and (3) Increase the Housing Loans and Grants appropriation to the Housing Department by $11,803,587.
SUMMARY AND OUTCOME
In response to a $150 million Notice of Funding Availability (NOFA) released on December 20, 2021, Allied Housing, Inc., or an affiliated development entity Allied Housing Inc., (Developer) submitted a development proposal for the Parkmoor Community Apartments development located at 1510-1540 Parkmoor Ave (See Attachment A-Site Map). Staff recommends that the City Council approve a funding commitment totaling $16,826,688 to develop a total of 79 homes for extremely low-, very low-, and low-income individuals and families and two unrestricted manager units. Fifty percent of the development will serve current and former foster youth between the ages of 15 – 24, with services focused on assisting these youth in key areas that may have the greatest impact on their transition into adulthood such as employment, financial literacy, education, and independent living skills. The Parkmoor Community Apartments development will be funded through the City’s Affordable Housing Impact Fees and City-issued Multifamily Housing Revenue Bonds as well as County of Santa Clara’s (County) General Fund, County Measure A funds, County No Place Like Home funds, Low Income Housing Tax Credits, and senior bank loans.
See Table 1 below for a summary of the City’s proposed funding commitments for the Parkmoor Community Apartments development.
Table 1 – Parkmoor Community Apartments Development City Proposed Funding Commitments
Development Source Award
Parkmoor Community Apartments Affordable Housing Impact Fee Fund $5,023,101
Parkmoor Community Apartments Low and Moderate Income
Housing Asset Fund $11,803,587
Total $16,826,688
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
Approval of the recommended actions will enable the Developer to assemble financing to build and manage new affordable apartments for a period of at least 55 years. The Parkmoor Community Apartments development that will be erected at 1510-1540 Parkmoor Ave. will provide a total of 81 apartments, consisting of 40 extremely low income units available at affordable rents not to exceed 30% of 30% of area median income (AMI), 24 very low income units available at affordable rents not to exceed 30% of 50% of AMI, 15 low income units available at affordable rents not to exceed 30% of 60% of AMI, and two unrestricted manager units. Twenty units will be reserved for chronically homeless households supported by project-based vouchers for at least 20 years.
In the event of foreclosure or loss of project-based vouchers, approval of the recommended action will also allow the Parkmoor Community Apartments development to increase rents and income restrictions (but not to more than 30% of 60% of AMI), to ensure the continued financial feasibility of the development. The increase will apply to new tenants in project-based voucher subsidized units in the event of expiration or termination of subsidy contracts, and for all tenants in the event of foreclosure.
Approval of the Parkmoor Community Apartments development’s funding commitment allows the Developer to move forward with a joint Low-Income Housing Tax-Exempt Bond Allocation application to the California Debt Limit Allocation Committee (CDLAC) and California Tax Credit Allocation Committee (TCAC) due on February 7, 2023. The planned start date for construction is projected for December 2023.
BACKGROUND
San José lacks a sufficient quantity of affordable housing to meet residents’ needs, with a severe shortage of adequate, affordable housing for extremely-low-, very-low-, low-, and moderate- income households. The City’s sixth cycle Housing Element incorporates the City’s official Regional Housing Needs Allocation goal for the need to produce 34,486 affordable homes across these income levels between 2023 and 2031. Staff continues to work to find solutions for affordable housing development to move forward to meet the needs of our community.
On December 20, 2021, under the City Council’s direction, the Housing Department issued a $150 million NOFA for development of affordable housing for extremely low-, very low-, and low-income individuals and families. The NOFA prioritized affordable multifamily rental housing developments that will provide housing for extremely low-, very low-, and low-income individuals and families, with 45% of the funding prioritized for extremely low-income housing.
The Housing Department received 19 NOFA applications and awarded 16 developments. Twelve of the 16 applicants are actively working to obtain their entitlements or are applying for additional funding. On June 21, 2022, the City Council approved funding commitments for four of these developments, totaling 448 homes. All four co-applied with the City for CDLAC tax- exempt bond allocations in August and CDLAC announced that all four developments received a bond allocation on November 30, 2022.
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
The Developer for the proposed Parkmoor Community Apartments development is also seeking funding from CDLAC. The Developer submitted a development proposal to the City with a request for a commitment of funding in the amount of up to $16,826,688 to provide 79 affordable units and two manager units. City staff recommends the City Council approve the requested funding commitment. This action will allow the Parkmoor Community Apartments development to move forward with its Low-Income Housing Tax- Exempt Bond Allocation application to CDLAC in February 2023.
ANALYSIS
The Parkmoor Community Apartments development is a rare opportunity that will provide both affordable housing and foster youth services in the City of San José. Through the development of affordable housing units located above a County owned and operated service center serving the foster youth community; foster youth, individuals, and families will have access to affordable housing while current and former foster youth will have access to supportive services and amenities. The County and the Developer, along with the persons with lived experience and the community, have been working on designing and planning the proposed Parkmoor Community Apartments development that will include outdoor and indoor amenities for residents and current and former foster youth. The City of San José is excited to partner with the County and the Developer to fund this innovative approach to supportive housing.
Parkmoor Community Apartments Development Description
The Developer is proposing to develop an 81-unit affordable apartment building located on
1.62 acres at 1510-1540 Parkmoor Ave. in partnership with the City and the County. The Parkmoor Community Apartments development is located in City Council District 6 and is designed to be a five story single building (four-stories wood frame over ground floor podium).
A major component of the Parkmoor Community Apartments development is a 17,098 square feet ground floor service center for current and foster youth known as the Hub. The Hub is a service center that will be owned and operated by the County with multiple service organizations and activity spaces dedicated to supporting current and former foster youth.
The Hub will have an enclosed indoor activity space along with offices and an adjoining outdoor amenity space. The private outdoor courtyard will include a half basketball court, a barbeque area, a children’s play area, and other amenities. The site will also include outdoor bike racks and indoor secured bike storage, an enclosed mechanical parking lift, and outdoor parking space. The City loans will not be used to fund the Hub.
The Parkmoor Community Apartments development’s residential space will begin on the second floor, which will also include a small lobby, offices, conference rooms, and file storage. Adjacent to the office space will be an indoor community room with a kitchen, food pantry storage, community room storage, and a central laundry area. There also will be an 8,026 square foot of private, outdoor landscaped courtyard with seating, a children’s play
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
structure, a barbeque area, and raised planters for residents’ enjoyment adjoining the community room. The third, fourth, and fifth floors will each have a 390 square foot of lobby/indoor activity space for residents.
The Developer indicated that 40 of the units are intended to serve transitional-aged youth, and the development will also include units for large families. The Parkmoor Community Apartments development will comply with the TCAC’s Enhanced Accessibility requirements, exceeding the Americans with Disabilities Act requirements, by including 13 mobility units, nine communication units to accommodate visually or audibly impaired residents, and four accessible parking spaces.
Affordability Unit Mix and Income Levels
The Parkmoor Community Apartments development provides a significant number of two- and three-bedroom apartments suitable for large families. The development includes 20 studio units, 19 one-bedroom units, 22 two-bedroom units, two of which will be manager units, and 20 three- bedrooms units. As mentioned, the Parkmoor Community Apartments development includes a youth program center sponsored by the County, that is designed to offer programming to support current and former foster youth. In keeping with this theme, the developer intends to use 40 apartments to serve transitional-aged youth.
The Developer has a funding commitment from the County for 20 Rapid Re-Housing units.
Rapid re-housing is an intervention program that is a critical part of a community’s effective homeless crisis response system. Rapid re-housing connects families and individuals experiencing homelessness to permanent housing through a combination of time-limited financial assistance and targeted supportive services. Rapid rehousing programs help families and individuals living on the streets or in emergency shelters solve the practical and immediate challenges to obtaining permanent housing while reducing the amount of time they experience homelessness, avoiding a near-term return to homelessness, and linking to community resources that enable them to achieve housing stability in the long-term. The 20 Rapid Re-Housing units will be assigned to assist 20 future residents who are considered transitional-aged youth.
Additionally, the Developer is in discussion with Santa Clara County Housing Authority to secure 40 project-based vouchers, which is a type of Section-8 voucher subsidizing rents for qualifying residents, 20 for low-income households and 20 for permanent supportive housing, specifically designated for chronically homeless individuals and families. To meet the definition of chronically homeless, according to the Department of Housing and Urban Development, a chronically homeless individual is someone who has experienced homelessness for a year or longer, or who has experienced at least four episodes of homelessness in the last three years and has a disability. A family with an adult member who meets this description would also be considered chronically homeless.
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
Tables 2-4 provide information regarding the housing units by AMI, bedroom size, and subsidy assistance.
Table 2 – Parkmoor Community Apartments Development Affordability Unit Mix
* Unrestricted manager units
**Maximum rent limits are based upon TCAC occupancy guidelines of 1.5 persons per bedroom. The illustration of maximum income assumes an actual family size equal to 1.5 persons per bedroom.
Table 3: Supportive Units Breakdown
Development
Name
Total # of
Units
Permanent
Supportive
Housing Units
Rapid Rehousing
Units
Parkmoor
Community
Apartments
81 20 20
Table 4 – Parkmoor Community Apartments Development Project-Based Vouchers Unit Mix
Unit size and
Affordability
Project-Based Vouchers
30% AMI
Studios 20
1-Bedroom 7
2-Bedroom 11
3-Bedroom 2
Total 40
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
Resident Services
Abode Services will provide onsite residential services and clinical case management using a housing-first model that give tenants housing stability as a foundation from which they can work on other life challenges. Residents will focus on foundational job skills and life skills as well as addressing addiction and other issues as part of a larger supportive community.
The Developer has worked with Adobe Services on a resident food access plan. Abode Services has developed partnerships with organizations, such as Second Harvest of Silicon Valley, that have expertise in grocery supply and food distribution. The site includes a multi-purpose room and distribution space, as well as a storage room ideal for food movement, storage, and distribution and the parking lot will have appropriate turning access for semi-truck deliveries.
Total Funding for the Parkmoor Community Apartments Development
This section describes more details for the Parkmoor Community Apartments development’s affordable housing funding. As the development is evaluated and refined, the funding requirement may change.
On November 15, 2022, the Department of Planning, Building, and Code Enforcement, Office of Economic Development and Cultural Affairs, and Housing Department brought to the City Council a Housing Crisis Work Plan Update. The City Council approved the request to update the March 2021 Multi-Family Underwriting and Compliance guidelines to increase the limit of City subsidies for affordable housing developments, from $150,000 per unit to $325,000 per unit. This request was made in order to address the rise in construction costs since 2020, higher development costs in San José compared to other cities, financing costs increases, and the depletion of County Measure A funds. City Council approved the request in the associated Resolution 22-1667.
The recent adverse market conditions have had a significant impact on the Parkmoor Community Apartments development in terms of higher cost of construction and interest rates (See Table 6) that resulted in a funding gap. The development will be delayed by several months, if not more, unless the funding gap is addressed. The Developer requests $207,737 per unit for funding from the City, for a total commitment of $16,826,688 (See Table 5).
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
Table 5: Parkmoor Community Apartments Development Funding/Unit
NOFA
Submission
Projection
Latest
Projection Difference % Change
City Loan Request $10,175,00 $16,826,688 $6,651,688 +65% Per Unit
Allocation $125,617 $207,737 $82,120 +65%
Total
Development Cost $57,303,815 $78,442,868 $21,139,053 +37% Cost/Unit $707,454 $968,430 $260,976 +37%
The Developer will pursue supplemental construction and permanent funding sources for the Parkmoor Community Apartments development which will include a Low-Income Housing Tax- Exempt Bond Allocation application in February 2023. The budget includes approximately $3.5 million of tax credit equity in the construction phase with $35 million in the permanent phase.
The Developer’s assumptions anticipate receiving a commitment for permanent bond financing for $6.57 million. The Parkmoor Community Apartments development had an initial County commitment of $14 million, of which $10 million will be funded through County Measure A and $4 million funded through its No Place Like Home fund. In response to the development funding gap, the County increased its total commitment to $20 million through increasing its Measure A commitment from $10 million to $16 million while the No Place Like Home funding commitment remains at $4 million. The County has also committed $15.3 million from the County General Fund toward the construction of the Hub. Measure A funds have been allocated to other projects; therefore, the County is unable to allocate further funding for this development (See Attachment B-Construction and Permanent Funding Sources).
Since applying for the 2021 Housing Department NOFA, the Parkmoor Community Apartments development budget has increased from $57,303,815 to $78,442,868. This increase was primarily driven by higher construction costs due to market increases and steep loan interest rate increases, from about 4% to 8% (See Table 6). Staff recommends the City increase its funding from the initial NOFA award of $10.2 million to approximately $16.8 million, due to increasing construction costs and rising interest rates.
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
Table 6: Budget Comparison
Budget Category NOFA submission
Projection Latest Projection Difference % Change
Hard Construction
Cost $38,840,835 $53,013,615 $14,172,780 +36%
Soft Costs $17,953,095 $24,543,291 $6,590,196 +37%
Issuance
Costs/Fees $509,885 $885,962 $376,077 +74%
Total Development
Cost $57,303,815 $78,442,868 $21,139,053 +37%
Loan to Value Ratio
The City’s Loan to Value (LTV) policy requires that the combined LTV ratio (all the loans divided by the appraised value of the property) not exceed 100%. While the appraised value of the property is not known at this time, the appraisal to be prepared for the senior lender before construction closing is expected to result in a combined LTV that significantly exceeds the City’s LTV policy threshold.
The LTV policy is intended to reduce the City’s loan risk associated with affordable housing. However, the City invests in more deeply affordable developments then it did in the 1990’s and early 2000's, so LTV is not the ideal measure of stability for modern developments. The deeper affordability of a development increases the need for public subsidies, while decreasing the development’s market value, leading to an increased LTV.
An LTV above 100% is not uncommon for public lenders in the affordable housing industry. Developments that have a high LTV are considered acceptable by City staff if the development’s projected operating income is expected to be at least 1.15 times the required permanent mortgage payment. This is a common standard for assessing the financial feasibility of affordable housing developments. The Parkmoor Community Apartments development is projected to have a 55-year cash flow projection resulting in debt service coverage ratio of 1.15 starting at year one.
Affordable Housing Siting Policy Analysis
The City Council approved the Affordable Housing Siting Policy on December 6, 2022. The adopted policy seeks to reverse the impacts of segregation in San José when it comes to building affordable housing. Affordable Housing Expansion Areas reflect parts of San José where affordable housing can provide residents access to more economic opportunities and neighborhoods associated with upward mobility, educational attainment, and positive outcomes for children. Continued Investment Areas reflect parts of San José where the City will continue investing in affordable housing due to the need of existing residents.
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
The Parkmoor Community Apartments development is located within a Continued Investment Area. This investment will increase needed affordable housing options for families and especially youth transitioning out of the foster care system. In addition, the Hub will add to the available youth services in this Continued Investment Area.
Climate Smart San José Analysis
The recommendation in this memorandum aligns with one or more of Climate Smart San José energy, water, or mobility goals. The Parkmoor Community Apartments development is within a half-mile proximity of transit and will be an infill development in a walkable area of the City. It will be an all-electric development that will include 10 electric vehicle charging stations, 40 electric vehicle capable parking spaces, Energy Star appliances, and solar panels.
Next Steps
Once all necessary funding commitments are obtained, the Developer will apply for a Low- Income Housing Tax-Exempt Bond Allocation in February 2023. Construction of the Parkmoor Community Apartments development is estimated to begin by late fall of 2023. It is anticipated that the construction will be completed in fiscal year 2025-2026 (See Attachment C-Anticipated Development Timeline).
EVALUATION AND FOLLOW-UP
The Housing Department produces quarterly information memoranda regarding the use of the Director of Housing’s delegation of authority under the San José Municipal Code; therefore, final loan business terms will be summarized in those memoranda. In addition, the Housing Department posts periodic reports on the status of its affordable properties undergoing rehabilitation or construction to its website, www.sjhousing.org . If the
recommended actions are approved and the Parkmoor Community Apartments development successfully closes construction financing, it would be included in these periodic reports.
COST SUMMARY/IMPLICATIONS
1. ESTIMATED COSTS: The table below summarizes project expenditures and funding sources proposed for the recommendations in this memorandum:
Table 7 – Funding Source Implications/Cost Summary
SOURCE Parkmoor Community Apartments
Low and Moderate Income Housing
Asset Fund $11,803,587
Affordable Housing Impact Fee Fund $5,023,101
Total $16,826,688
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
2. SOURCE OF FUNDING: Low and Moderate Income Housing Asset Fund (346); Affordable Housing Impact Fee Fund (452).
3. FISCAL IMPACT: The actions recommended in this memorandum allocate $11,803,587 in Low and Moderate Income Housing Asset Fund and $5,023,101 in the Affordable Housing Impact Fee Fund for the loan commitment for one new affordable housing project that will provide a total of 81 housing units.
BUDGET REFERENCE
The table below identifies the funds and appropriations proposed to fund the actions recommended as part of this memorandum.
Fund
#
Appn.
# Appn. Name Total
Appn.
Rec. Budget
Action
2022-2023
Adopted
Operating
Budget Page
Last Budget
Action (Date,
Ord. No.)
346 8437 Housing Project Reserve $2,245,000 ($2,245,000) 1009 12/13/2022,
Ord. No.
30868
346 8520 Committed Projects
Reserve $9,875,000 ($9,558,587) 1009
6/21/2022,
Ord. No.
30790
346 0070 Housing Loans and
Grants $94,019,444 $11,803,587 1008
12/13/2022,
Ord. No.
30868
452 8437 Housing Project Reserve $4,400,000 ($4,400,000) 945 10/18/2022,
Ord. No.
30833
452 8999 Unrestricted Ending Fund
Balance $7,441,355 ($623,101) 945
10/18/2022,
Ord. No.
30833
452 0070 Housing Loans and
Grants $10,600,000 $5,023,101 945
10/18/2022,
Ord. No.
30833
COORDINATION
This memorandum has been coordinated with the City Attorney's Office.
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
PUBLIC OUTREACH
☒ This memorandum will be posted on the City’s Council Agenda website for the January 31, 2023 City Council meeting.
☒ Outreach was undertaken for this item in addition to the agenda posting described above.
These outreach efforts are described below.
The Developer hosted 10 community design meetings that included local City and regional County community members, including elected public officials, residential neighborhood groups, local neighborhood businesses and regional corporations, community colleges, universities, local schools, churches, public entities, housing advocacy groups, neighborhood residents, and stakeholders. These efforts help ensure that both the Developer and design team have the opportunity to listen to various perspectives on the Parkmoor Community Apartments development and share and support or concerns throughout the development and design process.
In addition to the community meetings, the Developer and County hosted several meetings with current and former Hub members, partners, and the community over the past year. The purpose of these meetings was to listen to various perspectives on the development and obtain feedback throughout the development and design process.
Additionally, there has been a concerted effort by the Developer, in coordination with the County, to engage transitional-age youth and persons with lived experience in order to listen to feedback and comments about the ground floor Hub space, outdoor site amenities and landscape, and upper floor housing design. The Parkmoor Community Apartments development has a separate Hub-focused engagement plan to incorporate these youth’s feedback for the ground floor Hub. This engagement includes one-on-one meetings, weekly meetings, and monthly meetings with County staff and service organizations.
COMMISSION RECOMMENDATION AND INPUT
☒ No commission recommendation or input is associated with this action. ☐ A commission has taken action on this item. The action is described below.
CEQA
Environmental status has been granted by the Planning, Building and Code Enforcement Department and the appropriate citation is listed below:
The project, 1510-1540 Parkmoor Avenue, is exempt from CEQA review per Public Resources Code Section 21080(b)(1) and CEQA Guidelines Section 15369, Ministerial Project pursuant to Government Code Section 65913.4, File No. ER20-109.
HONORABLE MAYOR AND CITY COUNCIL
January 9, 2023
Subject: Actions Related to The Loan Commitment for the Affordable Housing Development at 1510-1540 Parkmoor Avenue
PUBLIC SUBSIDY REPORTING
☒ This item does not include a public subsidy as defined in Government Code section 53083 or 53083.1 or in the City’s Open Government Resolution. Please note that investments in affordable housing are excluded from these subsidy definitions. Consequently, there are no subsidy reporting requirement for affordable housing investments. ☐ This item includes a public subsidy of $100,000 or more as defined in California Government Code section 53083. The Director of the Office of Economic Development and Cultural Affairs has been informed of this subsidy to ensure that it is tracked appropriately. Required information is provided below.
☐ This item includes a public subsidy of $100,000 or more to a warehouse distribution center as defined in California Government Code section 53083.1. The Director of the Office of Economic Development and Cultural Affairs has been informed of this subsidy to ensure that it is tracked appropriately. Required information is provided below. ☐ This item includes a public subsidy as defined in the City’s Sunshine Resolution section
2.2.10 and is in the amount of $1 million or more. An Informational Memorandum as described in Sunshine Resolution section 2.3.2.6.C was/will be released at least 28 calendar days prior to the City Council meeting at which the subsidy will be considered. The Director of the Office of Economic Development and Cultural Affairs has been informed of this subsidy to ensure that it is tracked appropriately.
/s/
JACKY MORALES-FERRAND
JIM SHANNON
Director, Housing Department Budget Director
The principal authors of this memorandum are Shelsy Bass, Senior Development Officer, and Jimmy Lin, Development Officer. For questions, please contact Rachel VanderVeen, Deputy Director, at (408) 535-8231.
Attachments
Attachment A: Site Map
Attachment B: Construction and Permanent Funding Sources Attachment C: Anticipated Development Timeline
ATTACHMENT A
SITE MAP OF THE PARKMOOR COMMUNITY APARTMENTS DEVELOPMENT
ATTACHMENT B
PARKMOOR COMMUNITY APARTMENTS
CONSTRUCTION SOURCES
SOURCE AMOUNT
Bank Construction Loan (Tax-Exempt) $39,807,713
County of Santa Clara Measure A Loan $16,000,000
County of Santa Clara No Place Like Home $4,000,000
City of San José $12,760,569
Deferred Costs $2,369,968
Capital Contributions $3,504,618
Total Sources $78,442,868
PERMANENT SOURCES
SOURCE AMOUNT
Tranche A – Permanent Loan $6,570,000
County of Santa Clara Measure A Loan $16,000,000
County of Santa Clara No Place Like Home $4,000,000
City of San José $16,826,688
Capital Contributions $35,046,180
Total Sources $78,442,868
ATTACHMENT C
PARKMOOR COMMUNITY APARTMENTS
ANTICIPATED DEVELOPMENT TIMELINE
Apply for CDLAC/TCAC February 2023
Bond Allocation Award May 2023
Close Financing November 2023
Start Construction December 2023
Complete Construction (19 months) September 2025