San Rafael City Council
May 1, 2023

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.c
Meeting Date: May 1, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: COMMUNITY DEVELOPMENT
Prepared by: Alicia Giudice, Director
Chris Hess, Assistant Director
Alexis Captanian, Housing Analyst
City Manager Approval: ___________

TOPIC PERMANENT LOCAL HOUSING ALLOCATION (PLHA)

SUBJECT RESOLUTION RECOMMENDING PERMANENT LOCAL HOUSING

ALLOCATION (PLHA) PROJECT FUNDING FOR THE CALENDAR YEAR 2023 TO THE MARIN COUNTY BOARD OF SUPERVISORS

RECOMMENDATION

1. Adopt a resolution recommending Permanent Local Housing Allocation (PLHA) project funding for the calendar year 2023 to the Marin County Board of Supervisors.

BACKGROUND
The Permanent Local Housing Allocation Program (PLHA) provides funding to local jurisdictions for housing and is part of the Building Homes and Jobs Act (SB2) approved by the Governor in 2017. PLHA aims to address the state’s housing shortage and high housing costs by providing an ongoing source of housing financing through real estate fees.

In February 2020, the California Department of Housing and Community Development (HCD) released the PLHA Program Notice of Funding Availability (NOFA) for approximately $195 million in local government funding. Marin County is eligible for non-competitive PLHA funds because of its status as an Entitlement Community by the U.S. Department of Housing and Urban Development for the Community Development Block Grant (CDBG) program and because it has an approved Housing Element in compliance with the State Housing Law, at the time of application, and submits Annual Progress Reports approved by HCD. Funding recommendations are subject to final approval of PLHA funds by HCD.

On July 21, 2020, the Marin County Board of Supervisors passed a resolution to apply for PLHA grant funding through the non-competitive NOFA process. In August 2020, the Board also approved a five-year expenditure plan for the funds. This plan was developed in consultation with the Board of Supervisors Housing Subcommittee and in alignment with the Countywide Priority Setting Committee’s1 (PSC) approved 2020-24 Consolidated Plan and Assessment of Impediments to Fair Housing Choice (AI).
1 The Countywide Priority Setting Committee is made up of elected representatives of Marin cities and towns, a member of the Board of Supervisors, and community members representing the federal SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Under the five-year plan, PLHA funds are matched with funds from the Marin County Affordable Housing Fund (Housing Trust). This activity was recommended by staff to ensure effective and efficient deployment of PLHA funds. Marin County Housing Trust funds can be applied to projects in all jurisdictions of Marin, and seeks collaborative funding from cities and towns where eligible projects are approved. When matched with PLHA, staff aim to distribute funding in each of the CDBG Planning Areas (County Other, San Rafael, and Novato) with funding dependent on the recommended project.

For the 2023 program year, the County has $1,179,015 in PLHA funds to distribute. Together, these matched funds will support predevelopment, development, acquisition, and preservation of affordable housing, with an emphasis on projects serving those that earn an income at or under 60 percent Area Median Income (AMI), as stipulated in the PLHA Final Guidelines.

ANALYSIS:

All project applications were evaluated by County staff based on the PLHA criteria developed by HCD and on the PSC approved program goals.

HCD PLHA Criteria:
• Project readiness: applicant must have site control for development projects, land use entitlements, environmental review, and commitments of other required funding and resources.
• Priority for projects supporting individuals and households earning 60% AMI or below.

PSC Approved Program Goals:

In addition to the criteria set forth by HCD, the PSC approved the following PLHA program goals, which are informed by the HUD approved 2020-24 Consolidated Plan and Analysis of Impediments to Fair Housing Choice:
• Family Housing
• Rental Housing – Acquisition, New Construction, Rehabilitation • Homeowner Housing – Acquisition, New Construction, Rehabilitation • Special Needs Housing
• Land trust in eastern Marin that provides home ownership opportunities, with specific inclusion for African Americans
Additionally, in alignment with the PSC’s efforts on fair housing and equity, all applications include:
• A demographic assessment (race/ethnicity, people with disabilities, families) of the applicant’s existing housing projects in Marin.
• Demographics of staff and board members of the applicant organization(s).

Applications Received and Funding Recommendation
Between February 9 and March 15, 2023, the County released a NOFA for $2,358,0302 in PLHA/Marin Housing Trust funds. A total of nine (9) PLHA/Marin Housing Trust applications protected classes under fair housing laws which includes race, color, national origin, religion, sex, familial status, and disability.
2 This figure is inclusive of the Marin County Trust Fund match.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
were received for projects across the county totaling $13,216,060 in requests. One (1) of the applications received is for a project located in San Rafael:
3301 Kerner (Eden Housing) is a State Homekey project that will provide 40 apartments serving as supportive housing with wrap around services for formerly homeless persons with mental illness. The project is the adaptive reuse of an existing three-story office building in the Canal neighborhood. Eden Housing has requested $1,000,000 in PLHA/Marin Housing Trust funds to address unanticipated design changes required to address a portion of the building that is situated in a floodplain. This project meets the regulatory requirements set forth by the PLHA program including readiness and site control. In addition, the project meets two of the program goals approved by the PSC, including the creation of new rental housing and housing that serves a special needs population. To-date, the County has contributed over $20 million in General Fund and County Housing Trust funds towards this project, and the City of San Rafael has contributed approximately $2.4 million.

To support these unanticipated costs, staff recommend funding $500,000 in PLHA/Marin Housing Trust funds ($250,000 in PLHA funds and $250,000 in County Housing Trust funds), contingent on a $250,000 match from the City of San Rafael.

FISCAL IMPACT: The PLHA/Marin Housing Trust fund award is contingent on a $250,000 match from the City of San Rafael. Staff recommends that the City Council consider a funding request from Eden Housing for the project at 3301 Kerner through the current funding cycle for the City’s Affordable Housing Trust Fund. Staff is scheduled to present funding recommendations to the City Council in June 2023, and City Council may appropriate the matching funds at that time.

OPTIONS:

1. Approve the PLHA funding as recommended.

2. Defer to the Countywide Priority Setting Committee to provide the recommendation for the San Rafael Planning Area applications.

3. Do not approve the recommendation and provide direction to staff.

ACTION REQUIRED:

Adopt a resolution recommending Permanent Local Housing Allocation (PLHA) project funding for the calendar year 2023 to the Marin County Board of Supervisors.

ATTACHMENTS:

Attachment 1 Resolution
Attachment 2 PLHA Guidelines
Attachment 3 Funding Application
RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL RECOMMENDING

PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PROJECT FUNDING FOR THE FISCAL YEAR 2023-24 TO THE MARIN COUNTY BOARD OF SUPERVISORS BE IT RESOLVED by the Council of the City of San Rafael as follows:

WHEREAS in September 2017, the Governor signed into law Senate Bill 2, the “Building Homes and Jobs Act”; and
WHEREAS in February 2020, the California Department of Housing and Community Development (HCD) released the PLHA Program Notice of Funding Availability (NOFA) for ongoing local government provision of housing financing through real estate fees; and
WHEREAS in July 2020, the Marin County Board of Supervisors passed a resolution to apply for PLHA grant funding through the non-competitive NOFA process; and
WHEREAS in August 2020, the Marin County Board of Supervisors approved a 5-year expenditure plan for the funds; and
WHEREAS in September 2021, the Countywide Priority Setting Committee approved program goals for projects; and
WHEREAS on May 1, 2023, the City Council reviewed the submitted applications in accordance with the required selection process;
NOW, THEREFORE IT IS HEREBY RESOLVED that the City Council recommends to the Marin County Board of Supervisors that the $250,000 in PLHA funds available for allocation by the City of San Rafael be distributed to Eden Housing’s 3301 Kerner project, subject to adjustments necessary to accommodate any changes in the County of Marin’s final allocation from the California Department of Housing and Community Development (HCD).

I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City held on the 1st day of May 2023, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Lindsay Lara, City Clerk
Permanent Local Housing Allocation
Final Guidelines
Gavin Newsom, Governor
State of California
Alexis Podesta, Secretary
Business, Consumer Services and Housing Agency
Douglas R. McCauley, Acting Director
California Department of Housing and Community Development 2020 West El Camino Avenue, Suite 150
Sacramento, CA 95833
October 2019
Department of Housing and Community Development 2 2019 PLHA Final Guidelines The matters set forth herein are regulatory mandates, and are adopted in accordance with the authorities set forth below:

Quasi-legislative regulations … have the dignity of statutes … [and]… delegation of legislative authority includes the power to elaborate the meaning of key statutory terms… Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999) In consultation with stakeholders, the California Department of Housing and Community Development (Department) may adopt Guidelines to implement this Section, including determining allocation methodologies. Any guideline, rule, policy, or standard of general application employed by the Department in implementing this chapter shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Title 2 Government Code, Part 1 of Division 3).

NOTE: Authority Cited: Health and Safety Code Section 50470, subdivision (d).

The Department reserves the right, at its sole discretion, to suspend or amend the provisions of these Guidelines, including, but not limited to, grant award amounts.

Department of Housing and Community Development 3 2019 PLHA Final Guidelines

INTRODUCTION
Chapter 364, Statutes of 2017 (SB 2, Atkins) was part of a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, it establishes a permanent source of funding intended to increase the affordable housing stock in California. The revenue from SB 2 will vary from year to year, as revenue is dependent on real estate transactions with fluctuating activity. The legislation directs the California Department of Housing and Community Development (Department) to use 70 percent of the revenue collected, beginning in calendar year 2019, to provide financial assistance to local governments for eligible housing-related projects and programs to assist in addressing the unmet housing needs of their local communities. This program is hereafter referred to as the Permanent Local Housing Allocation (PLHA) program.

Guidelines for the PLHA program are organized into five Articles as follows:

Article I. General provisions: This article includes information on the purpose of the Guidelines, program objectives, and definitions used throughout the document.

Article II. Program funding: This article describes allocation formulas and methodologies, and award amounts.

Article III. Formula allocation component: This article describes the requirements for Applicants to apply for funds under the formula allocation of the PLHA program.

Article IV. Competitive allocation component: This article describes requirements and uses for PLHA competitive allocation funds.

Article V. Administration: This article describes administrative functions such as terms, non-performance remedies, and reporting and monitoring requirements.

Department of Housing and Community Development 4 2019 PLHA Final Guidelines Permanent Local Housing Allocation (PLHA) Program:
2019 Guidelines
Table of Contents
ARTICLE I. GENERAL PROVISIONS 5
Section 100. Purpose and Scope 5
Section 101. Definitions 5
ARTICLE II. PROGRAM FUNDING 9
Section 200. Allocations 9
Section 201. Award Amounts 10
ARTICLE III. FORMULA ALLOCATION COMPONENT 11
Section 300. Eligible Applicants 11
Section 301. Eligible Activities 12
Section 302. Threshold Requirements 13
Section 303. Application Review 16
Section 304. Deadlines and Funding Requirements 17
ARTICLE IV. COMPETITIVE ALLOCATION COMPONENT 17
Section 400. Eligible Applicants 17
Section 401. Eligible Activities 18
Section 402. Threshold Requirements 18
Section 403. Selection Criteria 20
Section 404. Application Review 22
Section 405. Deadlines and Funding Requirements 23
ARTICLE V. ADMINISTRATION 23
Section 500. Accounting Records 23
Section 501. Audits/Monitoring of Project Files 24
Section 502. Cancellation and Termination 25
Section 503. Reporting 26
Department of Housing and Community Development 5 2019 PLHA Final Guidelines ARTICLE I. GENERAL PROVISIONS
Section 100. Purpose and Scope
(a) These Guidelines (hereinafter “Guidelines”) implement, interpret, and make specific Chapter 364, Statutes of 2017 (SB 2, Atkins - hereinafter “SB 2”) as authorized by Health and Safety Code (HSC) Section 50470, which created the Building Homes and Jobs Trust Fund and the PLHA program. The principal goal of this program is to make funding available to eligible local governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. Twenty percent of the funding in the Building Homes and Jobs Trust Fund is required to be expended for Affordable Owner-Occupied Workforce Housing, and the program prioritizes investments that increase the supply of housing to households that are at or below 60 percent of the Area Median Income (AMI), adjusted for household size.
(b) These Guidelines establish terms, conditions, and procedures for local governments to submit applications to the Department for funds from the PLHA program’s three components, as listed below:
(1) Entitlement formula component per HSC 50470(b)(2)(B)(i)(I) (2) Non-entitlement formula component per HSC 50470(b)(2)(B)(i)(II) (3) Non-entitlement competitive grant program component per HSC 50470(b)(2)(B)(i)(I) (eligible Applicants are the same as for component 2 above)
(c) The non-entitlement competitive grant program component prioritizes assistance to persons experiencing or At risk of homelessness.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(A), subdivision (b)(2)(B)(i) and subdivision (b)(2)(B)(ii)(I-V).

Section 101. Definitions
All terms not defined below shall, unless their context suggests otherwise, be interpreted in accordance with the meanings of terms described in HSC Section 50470. (a) “Accessory dwelling unit” (ADU) means a dwelling unit which is attached, detached or located within the living area of the existing dwelling or residential dwelling unit and which provides complete independent living facilities for one or more persons pursuant to Government Code (GC) Section 65852.2 and 65852.22. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling. An Accessory dwelling unit also includes the following: an efficiency unit, as defined in Section 17958.1 of the HSC, or a manufactured home, as Department of Housing and Community Development 6 2019 PLHA Final Guidelines defined in Section 18007 of the HSC.
(b) "Activity" means any single eligible undertaking carried out as part of an Applicant's allocation(s) under the Program.
(c) “Affordable” means a housing unit that satisfies at least one of the following criteria:

1. If the unit is being rented to low-income, Very low-income or Extremely low-income households, it complies with the Multifamily Housing Program guidelines Section 7312 and the Section 7301 definition of “Affordable Rent”; or

2. If the unit is being sold, it is offered at an “Affordable housing cost”, as published in the Fannie Mae Selling Guide, Part B, Debt to Income Ratios, as updated annually
(https://www.fanniemae.com/content/guide/selling/b3/6/02.html#DTI.20Rat ios), and it complies with the income limits stated in the definitions of Moderate-Income and Lower-Income in this section; or

3. If the unit is being rented to Moderate-Income households, it is available at a gross rent, including a utility allowance, that does not exceed 30 percent of the applicable income eligibility level, and complies with the definition of Moderate-Income in these guidelines
(d) "Affordable Owner-Occupied Workforce Housing" (AOWH) means owner-occupied housing per HSC Section 50092.1 that is affordable to persons and families of low or moderate income, as that term is defined in HSC Section 50093, except in High-cost areas where Moderate-income shall include households earning up to 150 percent of AMI.
(e) “Annual Progress Report” (APR) means the Housing Element APR required by GC Section 65400 on the prior year’s activities and due to the Department April 1 of each year.
(f) “Annual Report" means a form issued by the Department and completed by a Local government awarded PLHA funds on which the Local government documents the uses and expenditures of any allocated funds and outcomes achieved. (g) "Applicant" means an eligible Local government applying for the program to administer one or more eligible activities. Applicant also means a Local or Regional Housing Trust Fund delegated by an eligible Local government to apply for the program and administer its allocation in accordance with all program rules.

Department of Housing and Community Development 7 2019 PLHA Final Guidelines (h) “Area Median Income” or “AMI” means the most recent applicable county median family income published by the Department, available at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml (i) “At risk of homelessness” means the same as defined in Title 24 Section 578.3 of the Code of Federal Regulations and also includes any household receiving rental assistance funded by the California Emergency Solutions and Housing (CESH) program or the California Homeless Emergency Aid Program (HEAP). (j) “Capitalized Reserve for Services” means the reserve funded by the Local government pursuant to Section 301(a)(5) to address project supportive service budget deficits attributable to shortfalls in service funding sources.
(k) “Comprehensive Housing Affordability Strategy” or “CHAS” means annual data compiled by the United States Census Bureau for the U.S. Department of Housing and Urban Development (HUD) to document the extent of housing problems and housing needs, particularly for low-income households.
(l) "Community Development Block Grant" or "CDBG" means the program created pursuant to Title I of the Housing and Community Development Act of 1974, 42 U.S.C. 5301 et seq., as amended.
(m) “Department” means the California Department of Housing and Community Development.
(n) “Extremely Low Income” has the meaning set forth in HSC Section 50106, which is a maximum of 30 percent of AMI. Grantees shall utilize income limits issued by the Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml. (o) “Fund” means the Building Homes and Jobs Trust Fund pursuant to HSC Section 50470.
(p) “High-cost area” means those counties defined as high cost by the Federal Housing Finance Agency (at: https://www.fhfa.gov/DataTools/ and those counties for which HUD adjusted the Very low income and low-income rents due to high costs (at:
https://www.huduser.gov/portal/pdrdatas_landing.html), as published by the Department in the annual PLHA Notice of Funding Availability.
(q) “Local government” means any city, including a charter city, any county, including a charter county, or a city and county, including a charter city and county.

Department of Housing and Community Development 8 2019 PLHA Final Guidelines (r) “Local Housing Trust Fund” or “Regional Housing Trust Fund” means a public, joint public and private fund or charitable nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code, which was established by legislation, ordinance, resolution (including nonprofit articles of incorporation), or a public-private partnership organized to receive specific revenue to address local or regional housing needs.
(s) “Low or Lower Income” has the meaning set forth in HSC Section 50079.5, which is a maximum of 80 percent of AMI. Grantees shall utilize income limits issued by the Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml. (t) “Moderate-Income” has the meaning set forth in HSC Section 50093, which is a maximum of 120 percent AMI, or in High-cost areas, 150 percent of AMI. Grantees shall utilize income limits issued by the Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml. (u) “Non-entitlement local government” means a Local government in an area which is not a metropolitan city or part of an urban county, a Local government that, as of September 1, 2017, was an incorporated city with a population of less than 50,000 or a county with an unincorporated area population of less than 200,000 persons which had not entered into a three-year Urban County Cooperation Agreement, or a Local government that was not otherwise entitled to receive CDBG funds directly from HUD. (v) “Operating subsidies” means payments to owners of affordable housing developments that make the housing more affordable by covering a portion of the ongoing costs of operating the development. Such payments would have the same effect as rental assistance.
(w)“Owner-occupied” means a dwelling which is occupied by the owner and includes a single family dwelling or a dwelling unit in a stock cooperative, as defined by Business and Professions Code (BPC), Section 11003.2, a community apartment project, as defined by BPC Section 11004, or a condominium project, as defined by subdivision (c) of BPC Section 11004. 5.
(x) "Plan" means the document submitted by the Applicant to the Department as part of a complete application in which the Applicant proposes to use allocated funds for at least one eligible Activity. The Plan shall have a term of five years. In succeeding years, the Local government is required to obtain the approval of the Department for any amendments made to the Plan, as set forth in Section 302(c)(5). (y) “Permanent Local Housing Allocation Program", “Program”, or "PLHA" means the program developed to annually allocate 70 percent of the moneys deposited into the Fund pursuant to HSC Section 50470(b)(2)(B)(i).

Department of Housing and Community Development 9 2019 PLHA Final Guidelines (z) “Permanent supportive housing” has the same meaning as in HSC Section 50675.14, that is, housing with no limit on the length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing residents in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community.

Permanent supportive housing may include associated facilities if used to provide services to housing residents. Permanent supportive housing does not include “health facility” as defined by HSC Section 1250 or any “alcoholism or drug abuse recovery or treatment facility” as defined by HSC Section 11834.02 or “Community care facility” as defined in HSC Section 1502, “Mental health rehabilitation centers” as defined in Section 5675 of the Welfare and Institutions Code (WIC), or other residential treatment programs.
(aa)“Regional Housing Needs Allocation" or "RHNA" means the share of the regional housing need represented by persons at all income levels within the area significantly affected by the general plan of the city or county allocated to an Applicant Local government pursuant to GC Section 65584(b).
(bb)“Sponsor” means the legal entity or combination of legal entities with continuing control of a Rental Housing Development. Where the borrowing entity is or will be organized as a limited partnership, Sponsor includes the general partner or general partners who have effective control over the operation of the partnership, or, if the general partner is controlled by another entity, the controlling entity. Sponsor does not include the seller of the property to be developed as the rental housing Project, unless the seller will retain control of the Project for the period necessary to ensure Project feasibility as determined by the Department.
(cc) “Very Low Income” has the meaning set forth in HSC Section 50105, which is a maximum of 50 percent of AMI. Grantees shall utilize income limits issued by the Department at the following link:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470.5 and 50470, subdivision (b)(2).

ARTICLE II. PROGRAM FUNDING
Section 200. Allocations
(a) SB 2 created a dedicated revenue source for affordable housing and directed the Department to make available 70 percent of the moneys in the Building Homes and Jobs Trust Fund, collected on and after January 1, 2019, to Local governments through the following allocations:

Department of Housing and Community Development 10 2019 PLHA Final Guidelines (1) Ninety percent of the moneys available shall be allocated based on the formula used under Federal law to allocate CDBG funds within California. This is the formula specified in Title 42 United States Code (USC), Section 5306. (A) The amount of funds awarded to each Local government eligible for the entitlement formula component shall be determined by the 90 percent of PLHA funds available pursuant to this paragraph (1) and the percentage of funds received by the entitlement Local government in the CDBG federal fiscal year 2017 allocation process performed by HUD.
(B) Through the formula specified in paragraph (1), the percentage of funds allocated to Non-entitlement local governments shall be distributed to Non-entitlement local governments through a competitive grant program. (2) Ten percent of the moneys available shall be allocated equitably among Non-entitlement local governments. The equitable allocation awarded to each Local government eligible for the Non-entitlement formula component shall be based on the sum of: (1) 50 percent of the funding available for the Non-entitlement formula component divided by the number of local governments eligible for the Non-entitlement formula component and (2) 50 percent of the funding allocated in proportion to each Non-entitlement local government’s share of the total most severe housing need in California’s Non-entitlement local governments, based upon the most recent HUD Comprehensive Housing Affordability Strategy.
(b) After funds are appropriated by the Legislature as part of the budget act, the Department will issue one or more Notices of Funding Availability (NOFA). Local governments shall submit an application under the NOFA pertaining to the specific allocation for which the Local government is eligible.
(c) It is recommended that Local governments that were urban counties in accordance with the distribution of funds pursuant to the formula specified in 42 USC, Section 5306 for the federal fiscal year 2017 provide a proportional share of their allocations to Local governments within their county with which they had a three-year Urban County Cooperation Agreement as of September 1, 2017, provided that these Local governments meet the threshold requirements of the PLHA and expend sub-allocated funds for eligible activities within the deadlines of the Standard Agreement governing the sub-allocation.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B).

Section 201. Award Amounts
(a) The formula allocation amounts derived pursuant to the formulas in Section 200 will be announced in the NOFA.

Department of Housing and Community Development 11 2019 PLHA Final Guidelines (b) The maximum application amount and the minimum application amount for the competitive allocation will be stated in the NOFA.
(c) An Applicant may apply for its formula allocation from the current and two prior NOFAs for which it did not receive an award, provided that the award meets the requirements of Section 304(a).

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B).

ARTICLE III. FORMULA ALLOCATION COMPONENT
Section 300. Eligible Applicants
(a) Eligible Applicants for the entitlement formula component described in Section 100(b)(1) are limited to the metropolitan cities and urban counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section 5306.
(b) Eligible Applicants for the non-entitlement formula component described in Section 100(b)(2) and the competitive grant program component described in Section 100(b)(3) are limited to the Non-entitlement local governments. (c) A Local government may delegate another Local government to submit an application and administer on its behalf its formula allocation of Program funds, provided that the Local governments enter into a legally binding agreement and the funds are expended for eligible Activities and consistent with Program requirements. The delegating Local government shall be identified in the application. The administering Local government shall be responsible for all Program requirements.
(d) A Local government may delegate a Local or Regional Housing Trust Fund to submit an application and administer on its behalf its formula allocation of Program funds, provided that the Local government enters into a legally binding agreement with the Local or Regional Housing Trust Fund and the funds are expended for eligible Activities and consistent with Program requirements. The delegating Local government shall be identified in the application. The Local or Regional Housing Trust Fund shall be responsible for all Program requirements. (e) An Applicant shall not be eligible to receive a new allocation of PLHA funds if it has an uncommitted amount of formula PLHA funds greater than the following:
(1) Four times the pending annual allocation if the pending annual allocation is $125,000 or less;
(2) $500,000 if the pending annual allocation is greater than $125,000 and less than $500,000;
Department of Housing and Community Development 12 2019 PLHA Final Guidelines (3) The amount of the pending annual allocation if the pending allocation is $500,000 or more.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B).

Section 301. Eligible Activities
(a) Eligible Activities are limited to one or more of the following:
(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is Affordable to Extremely low-,Very low-, Low-, or Moderate-income households, including necessary Operating subsidies.
(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory dwelling units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.
(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. (4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. (5) Capitalized Reserves for Services connected to the preservation and creation of new Permanent supportive housing.
(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
(A) This Activity may include subawards to Administrative Entities as defined in HSC Section 50490(a)(1-3) that were awarded CESH program or HEAP funds for rental assistance to continue assistance to these households. (B) Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8255(b)(8). An Applicant allocated funds for the new construction, rehabilitation, and preservation of Permanent supportive housing shall incorporate the core Department of Housing and Community Development 13 2019 PLHA Final Guidelines components of Housing First, as provided in WIC Section 8255, subdivision (b). (7) Accessibility modifications in Lower-income Owner-occupied housing. (8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. (9) Homeownership opportunities, including, but not limited to, down payment assistance.
(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more Affordable housing Projects, or matching funds invested by a county in an Affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an Affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the Affordable housing Project.
(b) A Local government that receives an allocation shall use no more than 5 percent of the allocation for costs related to the administration of the Activity(ies) for which the allocation was made. Staff and overhead costs directly related to carrying out the eligible activities described in Section 301 are “activity costs” and not subject to the cap on “administrative costs.” A Local government may share any funds available for administrative costs with entities that are administering its allocation. (c) Two or more Local governments that receive PLHA allocations may expend those moneys on an eligible jointly funded project as provided for in Section 50470 (b)(2)(B)(ii)(IV). An eligible jointly funded project must be an eligible Activity pursuant to Section 301(a) and be located within the boundaries of one of the Local governments.
(d) Entitlement Local governments may use the flow of PLHA funds to incentivize private lender loans and to guarantee payments for some or all public agency bond financings for activities consistent with the uses identified in Section 301 “Eligible Activities”. This loan guarantee Activity must be identified and fully explained in the Applicant’s “Plan”.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivisions (b)(2)(B)(ii)(IV), (b)(2)(D)(i-x), and (b)(3).

Section 302. Threshold Requirements
Applicants must meet all the following threshold requirements for participation in the formula allocation:
(a) Housing Element compliance: The Applicant and any delegating Local government, if applicable, must have a Housing Element that has been adopted by the Local Department of Housing and Community Development 14 2019 PLHA Final Guidelines government’s governing body by the application deadline and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to GC Section 65585. A Local government’s current Housing Element compliance status can be obtained by referencing the Department’s website at http://www.hcd.ca.gov/community-development/housing-element. (b) APR on the Housing Element submitted to the Department: The Applicant and any delegating Local government, if applicable, must submit to the Department the APR required by GC Section 65400 for the current or prior year by the application deadline date.
(1) Please be advised that the Department will not accept other reports in lieu of the APR. Housing Authority Financial Reports, Redevelopment Reports, and other similar reports will not be accepted as meeting this requirement. If uncertain of the status of the report submittal for a Local government, please contact the Department for more information.
(c) Submit, by the deadline specified in the NOFA, on a form made available by the Department, a complete application which shall meet the following minimum requirements:
(1) Application requests an allocation pursuant to Section 200 in order to carry out one or more of the eligible activities described in Section 301. Except for a jointly funded project as described in Section 301(c), any activities must be carried out within the jurisdiction of the Applicant Local government. (2) Submission of the application is authorized by the governing boards of the Applicant.
(3) Certification in the resolution that, if the Local government proposes allocation of funds for any Activity to another entity, the Local government’s selection process shall avoid conflicts of interest and shall be accessible to the public. For the purposes of this paragraph, “entity” means a housing developer or program operator; “entity” does not mean an administering Local government to whom a Local government delegates its PLHA formula allocation, pursuant to Section 300(d).
(4) A Plan detailing:
(A) The manner in which allocated funds will be used for eligible Activities. (B) A description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of AMI. Programs targeted at households at or below 60 percent of AMI will be deemed to meet this requirement.

Department of Housing and Community Development 15 2019 PLHA Final Guidelines (C) A description of how the Plan is consistent with the programs set forth in the Local government’s Housing Element.
(D) Evidence that the Plan was authorized and adopted by resolution by the Local government and that the public had an adequate opportunity to review and comment on its content.
(E) The following for each proposed Activity:
(i) A description of each proposed Activity, pursuant to Section 301, and the percentage of funding allocated to it. The description shall specifically include the percentage of funds, if any, directed to AOWH. (ii) The projected number of households to be served at each income level and a comparison to the unmet share of the RHNA at each income level. (iii)A description of major steps/actions and a proposed schedule required for the implementation and completion of the Activity.
(iv)The period of affordability and level of affordability for each Activity. Rental Projects are required to have affordability periods of at least 55 years. (5) The Plan submitted in response to the NOFA shall be for a term of five years. Local governments shall obtain approval of the Department for amendments made to the Plan in each succeeding year of the term of the Plan. Reallocations of more than 10 percent of funds among Activities require amendment of the Plan, with approval granted by the governing body at a publicly noticed public meeting. (6) A certification that, if funds are used for the acquisition, construction, or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the following requirements if the property is no longer the primary residence of the homeowner due to sale, transfer or lease, unless it is in conflict with the requirements of another public funding source or law:
(A) The PLHA loan and any interest thereon shall be repaid to the Local government’s PLHA account. The Local government shall reuse the repayments consistent with Section 301; or
(B) The initial owner and any subsequent owner shall sell the home at an Affordable housing cost to a qualified Lower-Income or Moderate-Income household; or
(C)The homeowner and the Local government shall share the equity in the unit pursuant to an equity-sharing agreement. The grantee shall reuse the proceeds Department of Housing and Community Development 16 2019 PLHA Final Guidelines of the equity-sharing agreement consistent with this section. (7) A certification that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make the PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust, and a Regulatory Agreement shall restrict occupancy and rents in accordance with the Local government-approved underwriting of the Project for a term of at least 55 years.
(8) A Program income reuse plan describing how repaid loans will be reused for eligible activities specified in Section 301.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(ii).

Section 303. Application Review
(a) Applicants must submit a complete application by the deadline stated in the NOFA in order to be eligible for funding. Application forms provided by the Department will be available upon release of the NOFA and will require Applicants to submit the forms and other documents to demonstrate that the Local government has met threshold requirements.
(b) The Department may request additional information to complete its review. (c) Applications recommended for funding are subject to conditions specified by the Department. Applicants will receive an official letter of award after the Department approves funding recommendations.
(d) The Department may issue an Over-the-Counter formula allocation NOFA after completing the NOFA process so that Local governments who were not able to submit formula allocation applications by the application deadline will have another opportunity to do so.
(e) If funding proposed in Local government Plans for AOWH activities is lower than 20 percent of the moneys available in the Fund, the Department may require Local governments to use a specific percentage of their annual formula allocations in some future year for AOWH activities as part of the annual funding process.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(A).

Department of Housing and Community Development 17 2019 PLHA Final Guidelines Section 304. Deadlines and Funding Requirements
(a) The initial PLHA application, including the Plan, must be submitted within 48 months of the budget appropriation (for example, the budget appropriation for 2019 is July 1, 2019, so the application deadline is June 30, 2023). (b) Funds allocated to Local governments that do not submit a complete application by the deadline stated in subsection (a) will revert to the Housing Rehabilitation Loan Fund for the Multifamily Housing Program or for Department-administered technical assistance to Local governments.
(c) A Local government may petition the Department to return any funds allocated to it to be used for the Multifamily Housing Program.
(d) Except for predevelopment expenses for construction projects funded by PLHA and costs to develop and prepare the Plan and the PLHA application, no costs incurred more than one year prior to commitment by the Local government may be paid from PLHA funds. Reimbursement of expenses to prepare the Plan and the PLHA application are subject to the cap on administrative fees. (e) After the Standard Agreement and attachments have been finalized, the Local government will follow provided instructions for signing all required documents. The Local government must submit all supporting materials and a signed Standard Agreement within the timeline provided in the instruction. (f) After the Standard Agreement has been executed by the state, the Local government may submit a request for 100 percent of the funds allocated to be used for eligible expenditures for the Activity(ies) that received the award, and subject to the terms and conditions of the Standard Agreement.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(i) and subdivision (b)(2)(B)(ii)(VI).

ARTICLE IV. COMPETITIVE ALLOCATION COMPONENT
Section 400. Eligible Applicants
(a) Eligible Applicants for the non-entitlement competitive allocation described in Section 100(b)(3) are limited to Non-entitlement local governments. For development of Rental Housing Projects, the Sponsor must be a co-Applicant.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(i)(I).

Department of Housing and Community Development 18 2019 PLHA Final Guidelines Section 401. Eligible Activities
(a) Eligible Activities are limited to the following and must take place within the jurisdiction of the Applicant Local government:
(1) Development of new multifamily rental housing that is Affordable to households at or below 60 percent of AMI or substantial rehabilitation of multifamily rental housing that will be Affordable to households at or below 60 percent of AMI, but which is not currently restricted as Affordable housing; or (2) Assistance to persons who are experiencing or At risk of homelessness, including, but not limited to, through rapid rehousing, or rental assistance, supportive services and case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers, or new construction, rehabilitation, or preservation of permanent or transitional rental housing.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(i)(I)(ia), (b)(2)(B)(i)(I)(ib) and subdivision (b)(2)(B)(ii)(V).

Section 402. Threshold Requirements
Applicants must meet all the following threshold requirements for participation in the competitive allocation:
(a) Housing Element compliance: The Applicant must have a Housing Element that has been adopted by the jurisdiction’s governing body by the application deadline date and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to GC Section 65585. A Local government’s current Housing Element compliance status can be obtained by referencing the Department’s website at http://www.hcd.ca.gov/community-development/housing-element. (b) APR on the Housing Element submitted to the Department: The Applicant must submit to the Department the APR required by GC Section 65400 for the current or prior year by the application deadline date.
(1) Please be advised that the Department will not accept other reports in lieu of the APR. Housing Authority Financial Reports, Redevelopment Reports, and other similar reports will not be accepted as meeting this requirement. If uncertain of the status of the report submittal for a Local government, please contact the Department for more information.
(c) Submit by the deadline specified in the NOFA, on a form made available by the Department, a complete application which shall meet the following minimum requirements:
(1) Application requests a grant pursuant to Section 100(b)(3) in order to carry out one Department of Housing and Community Development 19 2019 PLHA Final Guidelines or both of the eligible Activities set forth in Section 401. (2) Submission of the application is authorized by the governing board of the Applicant and by the developer co-applicant, if any.
(3) Certification in the resolution that, if the Local government proposes allocation of funds for any Activity to another entity, the selection process shall avoid conflicts of interest, and shall be accessible to the public.
(4) Demonstration of readiness, including site control for development Projects, land use entitlements, environmental review and commitments of other funding and resources required, as further set forth in the NOFA;
(5) Underwriting requirements:
(A)Uniform Multifamily Regulations Subchapter 19 of Title 25, Division 1, Chapter 7 (commencing with Section 8300), as amended from time to time, and the Multifamily Housing Program Guidelines (commencing with Section 7300), as amended from time to time, are hereby incorporated by reference into this subchapter and shall apply to Rental Housing Developments receiving assistance under the PLHA competitive allocation. In the event of a conflict between the provisions of Subchapter 19 and these Guidelines, the provisions of these Guidelines shall prevail.
(i) Section 8312(c) of the Uniform Multifamily Regulations is hereby amended to read:
(c) For Projects utilizing 4 percent tax credits, Developer Fee payments shall not exceed the amount that may be included in Project costs pursuant to 4 CCR, Section 10327. In addition, the Developer Fee paid from development funding sources shall not exceed the following:
(1) For acquisition and/or rehabilitation Projects, or adaptive reuse Projects, the lesser of the amount of Developer Fee in Project costs or $2,000,000. (2) For new construction Projects, the base limit shall be the lesser of the amount that may be included in Project costs or $2,200,000. To arrive at the final limit on Developer Fee paid from development funding sources, the base limit shall then be multiplied by a ratio that is the average of (i) the difference between 2 and the Project’s high-cost ratio, as calculated pursuant to 4 CCR, Section 10317(i)(6) or successor language and (ii) 100 percent.
(ii) Section 8312(d) of the Uniform Multifamily Regulations shall not apply. (iii)Section 8314(a)(1)(A) of the Uniform Multifamily Regulations is amended to read:
(A) Approved deferred Developer Fee, pursuant to Section 8312, provided that the aggregate of the Developer Fee paid from sources and paid as deferred shall not exceed $3,500,000.

Department of Housing and Community Development 20 2019 PLHA Final Guidelines (B)Period of affordability: All assisted rental units shall be restricted for not less than 55 years.
(C)All development Projects shall demonstrate fiscal integrity.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(ii).

Section 403. Selection Criteria
(a) Applications submitted within a competitive funding round shall be evaluated using the following criteria. Total available points shall equal 100.

1. Priority Points – 25 points
A. Population - 5 points
(i) If the Applicant is a county that has a population of 200,000 or less within the unincorporated areas of the county, the Applicant shall receive all points.

B. Prior Award – 5 points
(i) If the Applicant did not receive an award based on the formula specified in 42 USC, Section 5306 in 2016, the Applicant shall receive all points.

And either C (i) or C (ii) or C (iii) below:

C. Activity
(i) Assistance for Homeless Persons through Program Activities – 15 points
(a) Applications to assist persons experiencing or At risk of homelessness, including, but not limited to, through programs providing rapid rehousing, or rental assistance, or operating assistance to navigation centers shall receive all points.

Or
(ii) Assistance to Homeless Persons through Development of Navigation Centers– 15 points
(a) Applications for construction of navigation centers shall receive all points.

Or
Department of Housing and Community Development 21 2019 PLHA Final Guidelines (iii) Assistance for Homeless Persons through Rental Projects – 15 points (a) Applications for the new construction, rehabilitation, or preservation of permanent or transitional rental housing in which all or at least 10 percent of the units are restricted to occupancy by tenants who are homeless or At risk of homelessness shall receive all points.

2. Evaluation Criteria – 75 points
Precise scoring for these factors will be set forth in the NOFA.

A. Community Need – 30 points
(i) Applicants will receive up to a maximum of 30 points based on the rate of households experiencing the most severe housing need according to the most recent HUD CHAS dataset in the Applicant Local government.

Applicants will receive points in proportion to this percentage.

B. Applicant Administrative Experience – 15 points
(i) Applicants with prior experience administering local, state or federal affordable housing or community development programs or who have entered into a contract with an entity with prior experience in the implementation of local, state or federal affordable housing or community development programs will receive up to 15 points.

C. Demonstrated Capacity – 30 points
(i) Capacity points will be based on:
(a) Sponsor experience in Affordable Rental Housing Development and ownership (Up to 30 points) or
(b) Navigation center development experience (for development of these facilities) (Up to 30 points) or
(c) Program Operator experience (for non-development Activities) (Up to 30 points)
(b) Where applications requesting funds for more than one eligible Activity pursuant to Section 401 are permitted by the NOFA, each Activity will receive a separate score for each rating factor, and have an individual Activity total. It is possible that one Activity may score highly enough to receive an award, and the other Activity does not. (c) In the event of tied point scores and insufficient funding for both applications, the Department shall rank the tied applications as follows:
(1) If one of the tied applications is for an Affordable Rental Housing Development and the other is for a program Activity or development of a navigation center, the Department of Housing and Community Development 22 2019 PLHA Final Guidelines Affordable Rental Housing Development application will be selected for funding; (2) If one of the tied applications is for a navigation center and the other is for a program Activity, the navigation center will be selected for funding; (3) If both of the tied applications are for Affordable Rental Housing Developments, the Project with the lowest weighted average affordability of Restricted Units will be selected;
(4) If both of the tied applications are for navigation centers, the facility that provides overnight shelter to the greatest number of people will be selected; (5) If both of the tied applications are for programs, the Local government with the highest rate of households experiencing the most severe housing need according to the most recent HUD CHAS dataset will be selected.
(d) In the event there are insufficient funds to fulfill the entire funding request for the next highest scored application (Application A), the Department will determine whether Application A is feasible without the full funding request. If Application A is not feasible without full funding, the Department may offer the remaining funds to the application whose score is immediately below Application A. If the remaining funds are insufficient to fulfill the funding request for that application (Application B), the Department will again determine whether this application is feasible without the full funding request. If Application B is not feasible without the full funding request, the Department will perform the same analysis for the application whose score is immediately below Application B.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(i)(I)(ia) and subdivision (b)(2)(B)(ii)(V).

Section 404. Application Review
(a) Applicants must submit a complete application by the deadline stated in the NOFA in order to be eligible for funding. Application forms provided by the Department will be available upon release of the NOFA and will require Applicants to submit the forms and other documents to demonstrate that the Local government has met threshold requirements. The application will require submission of documentation adequate to demonstrate that the application has earned the appropriate number of points. (b) The Department may request additional information to complete its review, provided that the new information would not affect scoring.
(c) Applications recommended for funding are subject to conditions specified by the Department. Applicants will receive an official letter of award after the Department approves funding recommendations.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(ii).

Department of Housing and Community Development 23 2019 PLHA Final Guidelines Section 405. Deadlines and Funding Requirements
(a) Applicants will be required to enter into a state Standard Agreement (Standard Agreement) that will set forth conditions for funding and milestones that are required to be met.
(b) After the Standard Agreement and attachments have been finalized, the Local government will follow provided instructions for signing all required documents. The Local government must submit all supporting materials and a signed Standard Agreement within the timeline provided in the instructions or risk forfeiting the grant award.
(c) Except for predevelopment expenses for construction projects funded by PLHA and the costs to develop and prepare the PLHA application, no costs incurred more than one year prior to commitment by the Local government may be paid from PLHA funds.

Reimbursement of expenses to prepare the PLHA application is subject to the cap on administrative fees.
(d) Grant funds shall not be disbursed until:
(1) the Department authorizes loan closing, in the case of development projects; or (2) all general and special conditions have been complied with, in the case of other Activities.
(e) If funds are used for the development of an Affordable Rental Housing Development, the Local government shall make the PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the project. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust, and a Regulatory Agreement shall restrict occupancy and rents in accordance with the Department-approved underwriting of the project for at least 55 years.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(ii)(VI).

ARTICLE V. ADMINISTRATION
Section 500. Accounting Records
(a) The grantee shall establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the approved work plan, budget, and schedule. Separate bank accounts are not required. (b) The grantee shall maintain documentation of its financial records for expenditures incurred during the course of the PLHA Activity in accordance with generally accepted accounting principles. Such records shall be kept for at least five years after the close-out report is submitted to the Department.

Department of Housing and Community Development 24 2019 PLHA Final Guidelines (c) The Department or its designated representative shall have the right to review and copy any records and supporting documentation pertaining to the PLHA grant.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(ii)(III) and subdivision (b)(2)(B)(IV) and subdivision (b)(3).

Section 501. Audits/Monitoring of Project Files
(a) Grantee shall maintain PLHA files which, at a minimum, should include the following information and reports:
1) Project/Activity description
2) Land/site Information
3) Planning & zoning history (as appropriate)
4) Records of public hearings and public comments
5) Relocation needs (as appropriate)
6) Contracts, loan and grant agreements, Standard Agreement 7) Environmental records & reports/findings (as appropriate) 8) Design/engineering reports & plans (as appropriate)
9) Description of targeted beneficiaries, services to be provided, household incomes, special needs
10)PLHA Activity costs, invoices, purchase orders, sources and uses of funds for PLHA Activities, terms & conditions of financings, draws and all supporting documentation, change orders (as appropriate)
11)Activity schedule and amendments
12)History of Plan amendments
13)Procurement policy used for PLHA Activity(ies)
(b) The grantee shall maintain such records for possible audit for a minimum of three years after the close-out report is submitted, unless a longer period of records retention is stipulated in the Standard Agreement.
(c) The grantee shall be responsible for monitoring Rental Housing Developments that received PLHA funds for the term of the loan, including, but not limited to, the Projects’ compliance with the occupancy and rent requirements set forth in the Regulatory Agreement, compliance with reserve requirements, and the compliance with habitability standards.
(d) The grantee shall be responsible for monitoring AOWH loans to assure that the homes remain Owner-occupied.
(e) If requested by the Department, the grantee shall obtain a report from a qualified, Department of Housing and Community Development 25 2019 PLHA Final Guidelines licensed third party that certifies to the amounts of disbursement and identifies the specific Activities for which the disbursements were made. Such a report is permitted to be a component of the A-133 audit.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(ii)(IV) and subdivision (b)(3).

Section 502. Cancellation and Termination
(a) In the event that it is determined, at the sole discretion of the Department, that the grantee is not meeting the terms and conditions of the Standard Agreement, the Department shall issue a notice to stop work. Immediately upon receiving the written notice to stop work, the grantee shall cease all work under the Standard Agreement.

The Department has the sole discretion to determine the grantee’s compliance with the terms and conditions after issuance of a stop work order, and to deliver a written notice to the grantee to resume work under this Standard Agreement. (b) The Department shall terminate the Standard Agreement if the grantee is not in compliance with the Guidelines or the terms and conditions of the Standard Agreement. At least 30 days prior to the effective date of the termination of the Standard Agreement, the Department shall provide written notice to the grantee of its intent to cancel the funding allocation. The notice shall specify the reason for early termination and may permit the grantee or the Department to cure any deficiency(ies) prior to the early termination date. The grantee will submit requested documents to the Department within 30 days of the early termination notice. (c) Failure to meet reporting requirements will result in notice to the grantee that it must satisfactorily cure any deficiencies within three months of the notice or it will forfeit the following year’s PLHA formula allocation and be ineligible for a competitive award. The Local government will forfeit subsequent PLHA formula allocations and be ineligible for a competitive award until the Department determines that the Local government has met reporting requirements.
(d) The Department may, as it deems appropriate or necessary, request the repayment of funds from a Local government or offset future years’ funds, or pursue any other remedies available to it by law for failure to comply with the Guidelines and/or the terms and conditions of the Standard Agreement.
(e) Co-Applicants may be adversely impacted by a notice to stop work and/or termination if one grantee is deemed by the Department to not meet the terms and conditions of the Standard Agreement, or fails to meet the reporting requirements outlined in Section 503.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(ii)(IV) and subdivision (b)(3).

Department of Housing and Community Development 26 2019 PLHA Final Guidelines Section 503. Reporting
(a) The Department shall provide grantees with reporting formats and instructions. (b) Annual Reports are required from all grantees pursuant to HSC Section 50470(b)(2)(B)(ii)(III) each year by July 31 for the term of the Standard Agreement.

The Annual Report shall document the uses and expenditures of all awarded allocations and outcomes achieved. This report must be signed by both the Local government’s PLHA administrator and the Local government’s City Manager (or his/her designee), or Chief Executive Officer (or his/her designee) or Chief Financial Officer (or his/her designee). The Annual Report must describe any proposed amendment(s) to the approved Activity and schedule.
(c) Upon expenditure of all allocated funds and completion of the Activities funded by PLHA, the grantee shall submit a close-out report, which will be part of the Annual Report.
(d) The Department may request additional information as needed to meet other applicable reporting or audit requirements.

NOTE: Authority cited: HSC Section 50470, subdivision (d). Reference cited: HSC Section 50470, subdivision (b)(2)(B)(ii)(III) and subdivision (b)(2)(B)(ii)(IV).

Friday, March 17, 2023
2023-24 Super-NOFA Application for Affordable Housing
Funds
Marin County Housing & Federal Grants Division
This application is for affordable housing developers in Marin County, California who would like to apply for multiple state, local, and federal funding sources simultaneously. Please refer to the Notice of Funding Availability (NOFA) released on February 6, 2023 for detailed information about qualifications and application requirements.

The following grant sources and amounts are available through this application:

1. Marin County Affordable Housing Fund (HTF) and State Permanent Local Housing Allocation (PLHA) - $2.3 million

2. Federal HOME-ARP - $2.4 million

3. Federal CDBG Housing - $600 thousand
Applicant Information
Organization Name
Eden Housing
Website URL
https://edenhousing.org/
DUNS #
058211947
Mailing Address
22645 Grand Street
Hayward, California, 94541
Project Contact Name
Kate Blessing-Kawamura
Title
Associate Director of Real Estate Development
Email Address
[email protected]
Phone Number
(510) 329-5102
Executive Director Name
Linda Mandolini
Executive Director Email Address
[email protected]
1 Is there a co-applicant organization?
No
Briefly describe your organization, including mission, programs, staff experience, and number of clients served. Describe the co-applicant organization, if applicable.

Eden Housing is one of the oldest and most experienced affordable housing non-profit organizations in California. Our mission is to create and sustain high-quality affordable housing communities that advance equity and opportunity for all. Since our inception in 1968, Eden has worked in partnership with cities and local community partners to develop, acquire, or rehabilitate more than 12,000 affordable homes in 170 properties throughout California, and currently provides homes to a diverse population of more than 22,000 lower-income residents.

Eden works in 15 counties, including the County of Marin, where we own and operate The Fireside and Warner Creek. As a mission-driven non-profit, we serve low-income families, seniors, and people living with disabilities. Eden’s work goes beyond building high quality buildings, as we strive to create strong communities for the residents who live in our housing and a permanently affordable, high-quality asset for the cities we partner with. Our vision is for everyone to have access to safe, decent, affordable housing. We believe that housing is a basic human necessity that is essential to everyday life and future success. We serve very low, low and moderate-income families, seniors, veterans, people living with physical, mental, or developmental disabilities, and the formerly homeless.

Under the Eden Housing umbrella, Eden Housing Management, Inc. (EHMI) provides quality onsite management and maintenance of our affordable homes, and Eden Housing Resident Services, Inc. (EHRSI) offers free onsite support services and programs for residents. In 2022, Eden Housing brought on John Stewart Company (JSCo) as the property management agent for several of its upcoming permanent supportive housing projects, including 3301 Kerner, to accommodate a growing pipeline.

Have there been any recent or upcoming leadership transitions? Chief Operating Officer, Oyeshola (“Shola”) Olatoye joined Eden in October of 2022. Shola previously served as director of Housing and Community Development for the City of Oakland. Under her leadership, Oakland’s City Council approved HCD’s two-year Strategic Action Plan, which focused the department’s resources on protecting, preserving and producing affordable housing. During her tenure, the City of Oakland won six state Homekey awards resulting in more than400 new permanent deeply affordable units. Shola also launched the city’s federal $48M Emergency Rental Assistance program and served more than 3,000 Oaklanders who needed immediate rent relief. She also secured the department’s research relationship with Stanford University’s Impact Lab, resulting in new $50K impact grant to develop new technology for residents to access affordable rental housing.

A nationally recognized housing leader, Shola has also held executive and senior-level posts at Suffolk Construction, Enterprise Community Partners, HSBC Bank, and HR&A Advisors. In 2014, Mayor Bill de Blasio appointed her as Chair and CEO of the New York City Housing Authority, a role she held for four years. She conducts frequent speaking engagements, including as a panelist at Harvard’s T.H. Chan School of Public Health, and was selected as one of four national Fellows for the UC Berkeley Terner Center for Housing Innovation in June 2021.

Shola is responsible for oversight of Property Operations (property management and resident services), Human Resources and Talent Development, and Business Technology.

Have there been any recent expansions or cutbacks in activities and/or budget? If so, please explain.

Eden Housing published a new Strategic Plan in 2020 that aims at the creation of 10,000 new homes in the next ten years. The four pillars of this strategic plan are: (1) Significantly increase housing for lowincome Californians; (2) Support the stability and economic mobility of residents; (3) Embed commitment to racial, social and economic justice in all of our work; and (4) Invest in key 2 infrastructure to increase organizational agility and readiness for scale. As a part of its growth goals Eden plans to expand from a robust Northern California pipeline to a statewide development platform with the capacity to create more homes in high need communities.

If applicable, what is the organization’s standing with licensing or other accreditation authorities?
Eden and its related organizations are in compliance with any applicable licensing requirements.

How does your organization verify client income?
In general, Eden Housing uses the following procedure for determining resident eligibility and for certifying household income: (1) Each prospective resident shall complete an application form and return it to the Property Manager with signed permission for third party verification of income; (2) When an applicant's name nears the top of the waiting list, pertinent information will be confirmed as current and third-party verification letters are sent; (3) The manager shall conduct a personal interview with all members of the prospective household; (4) Third party verification forms will be used to compute income eligibility and a determination will be made concerning applicant household's ability to live harmoniously within the Project community; and (5) Previous landlord verification, credit checks, criminal checks and sex offender checks will be performed. Written notice will be sent advising applicants of their final eligibility status. These procedures may be revised for any units subject to Housing First policies.

General Project Information
Project Name
3301 Kerner
Project Address
3301 Kerner Blvd
San Rafael, California, 94901
Assessor’s Parcel Number (APN)
008-082-52
Funding Requests
Which funding source(s) are you seeking for this project? Please refer to the NOFA for a description of each funding source and eligible project types. Those applying for HOME-ARP funds are highly encouraged to apply for HTF/PLHA funds as well.

HTF/PLHA
HTF/PLHA Amount Requested
$1,000,000
Project Details
Scope of Work: Describe the proposed project, including details such as property characteristics, proposed use of funds, and number of housing units involved. Explain how the project will benefit the community.

The site is located at 3301 Kerner Boulevard in San Rafael. This project is an adaptive reuse development of a four-story office building to provide 41 units of permanent supportive housing (32 studio units, 8 one-bedroom units, and 1 two-bedroom unit). Located in the Canal neighborhood of San Rafael, this project will provide critically-needed permanent supportive housing and supportive services 3 for homeless or formerly homeless households with mental illness.

The development will be 100% permanent supportive housing with 14 units for households with severe mental illness at or below 20% AMI through the No Place Like Home Program (NPLH) and 26 units for households at or below 30% AMI who will move from permanent supportive housing at Voyager Carmel Center to 3301 Kerner once construction is complete. One unrestricted two-bedroom unit is set aside for an on-site property manager. Building amenities include: a courtyard, community room, conference room, and offices for case managers and a property manager. The residential floors include a laundry facility on the second floor and trash chutes on every floor.

As of the date of this funding application, the project team is preparing to close on its construction financing and start construction in the next couple of weeks. In the last week, the project team learned that the building structure as currently designed is in a floodplain and that the finished floor of the firstfloor residential units will need to be raised. Our request for $1,000,000 in additional County funding will directly offset these unanticipated costs.

Describe the property’s history leading up to this request. Include when the organization acquired/will acquire the property, any previous requests for County funding, attempts to secure other financing, etc.

The County of Marin received a Project Homekey award from the State of California to purchase an office building located on a 1-acre site at 3301 Kerner Boulevard in San Rafael. Project Homekey is a State program using Federal CARES Act funding to purchase existing properties – intended in large part to target hotels, but also allows for creative re-use of other property types, including office buildings as proposed for Kerner. The County closed escrow on the building in December 2020 and engaged Homeward Bound to run a temporary homeless shelter at the site until fall 2022. Kerner Canal, L.P., a single purpose entity controlled by Eden Housing, Inc., entered into a Purchase and Sale Agreement with the County in January 2023.

The project team has secured multiple sources of other financing. These include: $25.8M in California Housing Accelerator (CHA) funding instead of tax credits; $4.9M in capital and a $2.7M Capitalized Operating Subsidy Reserve through the No Place Like Home (NPLH) Program; an $899,250 County loan funded by Permanent Local Housing Allocation (PLHA), Local Housing Trust Fund (LHTF), and corresponding matching funds from the Affordable Housing Fund; an $850,000 City of San Rafael loan; a $1.235M sponsor loan leveraging multiple grants (including a $200,000 predevelopment grant from the County); accrued deferred interest from soft loans; and a $19.6M 20-year operating subsidy from the County. The project is currently ineligible for project-based rental subsidy due to its location in a HUDimpacted census tract, which is why the County’s ongoing support is essential to the project’s viability.

The project team is preparing to close on its construction financing, acquire the property from the County, and start construction in the next couple of weeks. In the last week, the project team learned that the building structure as currently designed is in a floodplain and that the finished floor of the firstfloor residential units will need to be raised to comply with local floodplain requirements for residential structures. Our request for $1,000,000 in additional County funding will directly offset these unanticipated costs. The project team still intends to close and start construction in the next couple of weeks and incorporate much-needed additional funding into the project’s capital stack post-closing.

Describe any nearby amenities, such as parks, public transportation, grocery stores, health care facilities, schools, childcare, libraries, parks/open space, etc. that residents of the project are/would be able to use.

The building is in an ideal location within walking distance to public transportation, grocery stores, retail services, and recreation. The site has close connections to the Marin Transit bus transportation, and is within 0.5 miles of Cardenas Market, Pickleweed Park, and the Marin Health and Wellness Campus / Behavioral Health Clinic. The site’s proximity to the Marin Health and Wellness Campus / Behavioral Health Clinic will allow residents housed under the NPLH program close access to supportive services.

The Marin Transit bus stop is a short 14 min ride to the San Rafael Transit Center which provides train and bus access to several destinations within Marin and Sonoma County as well as the larger Bay 4 Area. The station is a major transfer point for Sonoma‐Marin Area Rail Transit (SMART) and bus routes in the North Bay, with connections to San Francisco, the East Bay, as well as airports. In addition to SMART, the station is also served by several regional and intercity bus operators which include Golden Gate Transit, Greyhound, Marin Transit, Sonoma County Transit, and Sonoma County Airport Express.

Select the known environmental issues of the proposed project site, and/or adjacent properties if relevant.

Flood zone
Notes or clarifying information on environmental issues:

As noted above, it has come to light very recently that the building is in a floodplain and that the firstfloor residential units will need to be raised to comply with local floodplain requirements for residential structures. Our request for $1,000,000 in additional County funding will directly offset these unanticipated costs.

Have you begun any state or federal environmental review procedures for the proposed project?
No
What is the anticipated timeline for the environmental review(s)? Pursuant to Health and Safety Code section 50675.1.1, projects acquired through Project Homekey are exempt from CEQA. The project does not have any federal funding and therefore is not required to complete NEPA.

Who is the staff member that will supervise and manage the proposed project?Describe their past experience with project management.

Cory Hiraga, Project Developer, is leading the project management of this project and oversees the day‐ to‐day responsibilities across all stages including entitlements, design, financing, and construction.

Cory has experience providing project management, planning, and construction management for affordable housing new construction and acquisition/rehab projects. In addition to 3301 Kerner, he currently manages a 176-unit family project in Hayward, CA that has closed on its construction financing and is about to break ground.

Kate Blessing-Kawamura, Associate Director of Real Estate Development, is supervising this project and has managed new construction and preservation projects at various stages of development. Since joining Eden, she financed and begun construction of a 62-unit family project in San Leandro, CA; planned the substantial rehabilitation of a 200-unit, 10-acre project in Santa Rosa, CA; led a robust community engagement process and obtained entitlements for a 50-unit mixed use development in Palo Alto; and obtained entitlements and closed on the construction financing for a 176-unit family project in Hayward, CA.

Susie Criscimagna, Senior Director of Real Estate Development, is also supervising this project and is experienced with managing affordable housing projects in all stages of development. She supervises project management staff, providing training and guidance on affordable housing development. She has worked on the development of several other affordable housing projects with Eden Housing as a project manager or supervising staff, including a 66‐unit development in Dublin, 130‐unit development in Alameda, and 62‐unit project in San Leandro.
5 Will the project involve hiring an external property management company? Yes
Describe the property management company. Include the company name and the number of affordable housing sites and units that it currently manages.

Property management will be provided by The John Stewart Company. In 2022, Eden Housing brought on John Stewart Company (JSCo) as the property management agent for several of its upcoming permanent supportive housing projects to accommodate a growing pipeline. Founded in 1978 to provide high quality property management to affordable housing in the Bay Area, JSCo has developed into a full-service housing management, development, and consulting organization and is the largest affordable housing manager in California. JSCo has extensive permanent supportive housing management experience. The John Stewart Company currently manages 100+ PSH properties across the state of California within their portfolio of 450+ properties containing over 34,000 residential units.

If awarded funding, you will need to draft and submit an Affirmative Marketing Plan for this project. The plan would describe how you will market the project to different groups of people based on protected characteristics such as race, color, national origin, religion, sex (including sexual orientation and gender identity), familial status, and disability. Please refer to the Affirmative Marketing tab of the Federal Grants website for more information.

Describe any prior experience with affirmative marketing or similar initiatives.

The marketing and management of the project will ensure that occupancy shall be open to all persons regardless of race, color, ancestry, religion, national origin, sex, marital status, age, physical handicap, or other arbitrary factors. Affirmative marketing will be used to actively promote the goals of fair housing. The units will be marketed in a variety of local publications, online, and through major employers, local libraries, community centers, service organizations and schools. The marketing plan will include specific strategies for targeted outreach to minority populations and difficult to reach groups. Referrals will be accepted from Marin Coordinated Entry System and Marin Health and Human Services. All advertisements will include the prominent use of Equal Housing Opportunity logos, slogans and/or statements of intent to affirmatively market the units.

Annually, The John Stewart Company will analyze the race, ethnicity, and other categories of current tenants and the applicants on the waiting list to measure the success of our marketing efforts before starting its marketing. Thereafter, The John Stewart Company will annually review the affirmative marketing for 3301 Kerner to ensure that its marketing efforts are targeting the persons least likely to apply to ensure a balance of the applicants on the waiting list and the residents. The Compliance Manager will review the demographic data for the housing area to determine if the housing area must be extended to ensure that The John Stewart Company is conducting outreach to under-represented populations before doing any future marketing.

All projects funded by HUD programs must Affirmatively Further Fair Housing. This is defined as combating housing discrimination and taking meaningful actions to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to housing opportunities based on protected characteristics: race, color, national origin, religion, sex (including sexual orientation and gender identity), familial status, and disability.

Describe any past community engagement activities for this project, and future plans for community engagement.

In July 2021 a mural was unveiled by the Canal Arts Initiative on the 3301 Kerner building as a welcome sign to the Canal neighborhood of San Rafael. Eden intends to preserve the mural and engage with the Canal Art Initiative on the possibility of commissioning another mural on the building. It is our hope that the Kerner building not only provides permanent supportive housing but also supports the community in which the building is located.

Eden also intends to hold multiple community meetings with neighbors, community organizations, and 6 the business community during construction, lease-up, and operation of the property. We have already engaged with community organizations such as Resilient Shore and the Canal Alliance. Eden is invested in this project and in the Canal neighborhood of San Rafael and its many stakeholders.

Demographics and Unit Information
In the table below, enter the existing or anticipated number of units based on income level and bedroom count. Refer to the Current Marin County Income Limits to determine income level.

Anticipated Unit Count by Bedrooms and Income Level
Extremely
Low
Very Low Low Moderate Market Rate
TOTAL
UNITS
Studio 32 32
1 bed 8 8
2 bed 1 1
3 bed 0
4 bed 0
Other 0
TOTAL UNITS 40 0 0 0 1 41
Notes or clarifying information on the unit count:

Per near-final draft PLHA/AHF loan docs as of the date of this application, the County intends to restrict 40 units at Extremely Low Income. The two-bedroom manager's unit will be unrestricted.

In the table below, enter the demographics of the people who live (or will live) in the proposed housing project. If unknown, use the demographics of households within similar existing Marin complexes as the proposed project, within the organization’s purview. Specify the number of Hispanic/Latino residents in its stand-alone column. The “Total” column must include the number of Hispanic/Latino residents as part of the sum.

Are these numbers specific to the proposed project, or to a similar existing Marin complex? Similar existing Marin complex
Demographic Information
Total Number of Persons
Persons Identifying as
Hispanic/Latino
White 77
Black/African American 8
Asian 15
American Indian/Alaskan Native
Native Hawaiian/Other Pacific
Islander
7 Total Number of Persons
Persons Identifying as
Hispanic/Latino
American Indian/Alaskan Native &
White
Asian & White
Black/African American & White
American Indian/Alaskan Native &
Black.African American
Other Multi-Racial
Other/Not Disclosed 8 8
TOTAL (Unduplicated) 108 8
Fill in a number for each of the fields below. For new construction, or if you are unsure, please put 0.

Families
17 Female-headed households
61 Households that include person(s) with a disability
13 Notes or clarifying information on demographics:

This is aggregated demographic data from two Eden properties in Marin County from 2022.

The Race/Ethnicity fields above do not directly align with the data fields from our records. See below.

Race/Ethnicity
White 77
Latinx 8
Black 8
API 15
Total 108
Project Planning
Select the current phase of the proposed project.

Building
Describe the project timeline and specify a real or estimated completion date for each milestone below. Add/explain any additional milestones as needed.

For acquisition projects:

Appraisal
Monday, April 4, 2022
8 Written Offer
Monday, January 1, 1900
Purchase Option Agreement Signed
Tuesday, January 10, 2023
Inspections
Monday, January 1, 1900
Negotiations
Monday, January 1, 1900
Closing
Thursday, March 30, 2023
Explain any additional milestones for Acquisition Projects below:

The project team is preparing to close on its construction financing, acquire the property from the County, and start construction in the next couple of weeks.

For fields that are not applicable to the project, I used this date: January 1, 1990.

For new construction and/or rehabilitation projects:

Define scope of work/finish design
Friday, December 9, 2022
Complete planning and environmental review
Monday, January 1, 1900
Release bid package
Sunday, January 15, 2023
Select contractor
Tuesday, February 1, 2022
Finalize contract
Friday, March 24, 2023
Obtain building permits
Monday, April 3, 2023
Start construction
Monday, April 3, 2023
Complete construction
Sunday, September 1, 2024
Explain any additional milestones for New and/or Rehabilitation Projects below:

The project team is preparing to close on its construction financing, acquire the property from the County, and start construction in the next couple of weeks. The building permit will be issued immediately after closing.

For fields that are not applicable to the project, I used this date: January 1, 1990. 9 Will you be seeking Project Based Section 8 Vouchers for this project? No
Please be aware that if Project Based Section 8 Vouchers (PBV) are committed to the project, the environmental review process and subsidy layering must be completed before the acquisition is complete or construction commences. Actions taken prior to PBV being committed are not subject to this requirement.

Describe the type of site control that your organization has for the proposed property. If this request includes funds for acquisition, summarize the acquisition terms, price, contingencies, and conditions.

Kerner Canal, L.P., a single purpose entity controlled by Eden Housing, Inc., entered into a Purchase and Sale Agreement with the County in January 2023. The project anticipates closing on its construction financing and acquiring the property from the County in the coming weeks.

Expanding on the Scope of Work, please describe the rehabilitation that is proposed for the property and how it will address specific conditions (i.e., replacement needs, deferred maintenance, existing building violations, required seismic upgrades, building or health code problems). Please describe any other existing rehabilitation needs that are not included in the project scope and explain their exclusion.

The redesign includes utility upgrades and site improvements including accessible parking and paths of travel and localized grading and drainage as deemed necessary. The patio courtyard will be redeveloped and a portion of the landscape will be replaced or new planting designed and coordinated with existing irrigation. A portion of the top level of the parking garage will be designed as an outdoor open space and gardening area.

The redesign will also include structural upgrades to the building and new construction to the extent required by the City of San Rafael. The mechanical, electrical, and plumbing (MEP) systems will be redesigned for the new residential building program to residential type V- 1hr codes and sprinkler and Emergency Systems Specifications. The MEP system required upgrades will be integrated into the existing building systems.

As noted above, it has come to light very recently that the building is in a floodplain and that the firstfloor residential units will need to be raised to comply with local floodplain requirements for residential structures. Our request for $1,000,000 in additional County funding will directly offset these unanticipated costs.

Describe the accessibility of the building. Do you plan to make accessibility improvements? The Project will comply with the Tier 2 California Housing Accelerator Program Guidelines, most recently amended August 31, 2022. Under these Housing Accelerator Guidelines, adaptive reuse projects are considered rehabilitation projects. As noted above, site improvements include improvements to accessible parking and paths of travel.

How will the rehabilitation be staged to minimize risk and inconvenience to the residents? If certain systems or parts of residents’ units will be temporarily inoperable or unusable (e.g., kitchen or bathroom) during construction, what is the estimated duration of such interruptions? What mitigations will you provide?
Not applicable. There are no current residents of the building.

Describe in detail any temporary relocation of existing tenants at the site due to proposed rehab activities. Explain why relocation is needed and provide the estimated duration and number of impacted tenants. If known, identify which laws (local, state, federal) must be followed in carrying out the relocation.
10 Not applicable. There are no existing tenants.

Financing Plan
What is the status of all proposed project funding sources as of the date of this application? California Housing Accelerator (CHA) - $25,824,201 - Committed NPLH - $4,981,492 - Committed
Marin County (PLHA + LHTF+ AHF) - Existing - $899,250 - Committed City of San Rafael (AHTF) - $850,000 - Committed
Sponsor Loan (HPN + MCF + County) - $1,235,000 - Committed Accrued Interest on Committed Soft Loans - $78,325 - Committed Marin County (PLHA + AHF) - Requested - $1,000,000 - Applied For Accrued Interested on Marin County (PLHA + AHF) - Requested - $37,918 - Applied For What is the timing and likelihood for obtaining commitments of anticipated funding sources? All of the sources above have been committed to the project, with the exception of the $1,000,000 in additional County funding requested and associated accrued interest.

In the event that any funding sources are not obtained or are committed at lower levels than requested, what alternatives will be pursued?
The project is considering approaching other funders, such as the Marin Community Foundation, for additional funding.

For each item in your project budget, to be attached to this application, please explain how the budgeted amount was derived, whether costs are estimated or bid, and any other relevant information that justifies the budgeted expense (e.g., cost per square foot, percentage of other costs, estimated number of work hours).

Acquisition Costs: Based off of actual anticipated closing costs for our upcoming closing.

Hard Costs: Based off of hard bids from our contractor and subcontractors.

Soft Costs: Based off of actual predevelopment costs already incurred, invoices for impact and permit fees, and anticipated costs for our upcoming closing.

Costs of issuance/financing fees: Based off of actual and estimated fees for our upcoming closing.

Is your organization receiving any other Marin County funding for this project? Yes
Please describe. Include a brief overview of the goals and accomplishments achieved through this funding.

The project has $899,250 in PLHA, LHTF, and AHF soft loan debt from the County of Marin committed.

In addition, the County of Marin provided a $200,000 predevelopment grant to Eden Housing for this project, which is being structured as a larger sponsor loan for the project. These committed funds have reduced the accrued predevelopment interest expense for the project and provided indispensable soft financing to get us to construction closing.

Does your organization have unspent funds that were previously awarded by the County (for any project)?
Yes
What is your timeline for expending the fund balance?
11 The funds outlined above will be expended at our construction closing in the coming weeks.

Attachments
Please closely review the Notice of Funding Availability (NOFA) for instructions on which documents you must attach. The County requires specific attachments for each funding type (HTF/PLHA, HOME-ARP, CDBG Housing). Please label your attachments in this manner: “2023- 24 [Document Name] for [Organization Name]- [Project Name].” PDF 2023-2024 Board for Eden - 3… .pdf PDF 2023-2024 Budget for Eden - … .pdf PDF 2023-2024 Const S&U for Ede….pdf PDF 2023-2024 FS (19-20) for Ede….pdf PDF 2023-2024 FS (20-21) for Ede….pdf PDF 2023-2024 IRS Exempt for Ed….pdf PDF 2023-2024 Op Budget and Ca….pdf PDF 2023-2024 Perm S&U for Ede… .pdf XLS
X 2023-2024 Project Schedule … .xlsx PDF 2023-2024 Site Control for Ed….pdf Certification
Please review your responses above for accuracy.

Name of Person Completing this Application
Kate Blessing-Kawamura
Title of Person Completing this Application
Associate Director of Real Estate Development
By checking this box,
I hereby certify that the information in this application is true and accurate to the best of my knowledge.
12 INCUMBENCY CERTIFICATE
Eden Housing, Inc.

The persons named below are the members of the Board of Directors of the corporation named above and/or are the Officers duly elected or appointed to the offices set forth opposite their names.

NAME OFFICE CURRENT TWO-YEAR TERM (OFFICERS)

CURRENT TERM (DIRECTORS)
Jim Kennedy Chair
Director
January 2022- January 2024*
January 2021 - January 2025*
Rudy Johnson Vice Chair
Director
January 2022 - January 2024*
January 2022 - January 2026*
Amy Neches Treasurer
Director
January 2022 – January 2024*
January 2020 – January 2024*
Cheryl O’Connor Secretary
Director
January 2022 – January 2024*
January 2023 – January 2026
Calvin Whitaker Assistant Secretary
Director
January 2023 – January 2024
January 2020 - January 2024*
Annette Billingsley Director January 2020 - January 2024* Nicholas Randall Director January 2020 – January 2024 * John Gaffney Director January 2020 - January 2024*
Doug Kuerschner Director January 2022 - January 2024*
Grace Li Director January 2023 - January 2026
Joe Postigo Director January 2022 - January 2024*
Sean Callum Director January 2023 – January 2026
Sheila Burks Director January 2020 – January 2024*
Candice Gonzalez Director January 2022 – January 2026*
David Garcia Director January 2022 – January 2026*
Ali Solis Director January 2023 – January 2026
Kara Douglas Director January 2023– January 2026
Linda Mandolini, President (non-voting), serves at the will of the Board and is authorized to sign on behalf of the Corporation.
*The bylaws were amended in 2022 to include a new term limit structure, shifting from three 4- year terms to four 3-year terms for directors, and one 3-year term for officers. Director terms marked with an asterisk were legacy terms from the prior structure and will be transitioned to the new structure upon current term expiration.

As of January 27, 2023
Eden Housing
Base Scenario
Units Managed / Added Units Added Units Added
9,365 9,560 9,682
EDEN HOUSING 195 122 161
2023 CORPORATE BUDGET
CASH BASIS 2023 Budget 2024 Projections 2025 Projections Developer Fee                17,679,187                12,594,361                15,077,873 Service Program Fees                  6,410,048                  6,602,349                  6,800,420 Property Management & Services Fee                12,120,196                12,547,033                13,030,491 Asset Management Fees                  1,943,719                  1,999,564                  1,999,564 Affiliate Loans‐Notes Receivables                  4,840,759                  4,616,969                  4,473,934 Distributable Cash From Properties                  2,443,739                  4,659,247                  4,659,247 Portfolio Distributions                  9,228,217                11,275,780                11,132,745 Grants & Contributions                  1,466,490                  1,226,490                  1,226,490 Dividend & Interest Income 934,538 934,000 934,000
Investment Gains (Losses) (915,000) ‐ ‐
Other Income                  1,486,028                  2,160,490                  2,160,490 Total Cash Revenue $            46,923,676 $            45,180,013 $            48,202,019 Payroll Expense                29,180,078                30,960,860                32,783,544 68% 68% 69%
Operating Expenses 7,172,373                                    7,453,256                  7,685,853 Service Program Expenses                  6,466,342                  6,602,349                  6,800,420 Service Program Expenses
Office Improvements 9,500 9,975 10,474
Debt Service 137,912 164,831 130,625
MGP Expenses 208,003 208,003 208,003
Other Expenses 355,414 382,808 349,101
Total Cash Expenses                43,174,208                45,399,273                47,618,918 Net Cash Income, Recurring $               3,749,468 $                (219,260) $                  583,101

SOURCES OF FUNDS - PERMANENT
AMOUNT
TOTAL

INTEREST
COST
OID

INTEREST
RATE
AMORT
(Yr) COMMENTS
Total Permanent Debt: -
NPLH 4,981,492 3.000% 1.903% 55.0 Per Unit: 121,500
City of San Rafael HTF Loan 850,000 3.000% 1.788% 55.0 Per Unit: 20,732 Accrued Deferred Interest - City of San R 22,309
Sponsor Loan (HPN/MCF/County) 1,235,000 3.000% 1.788% 55.0 Per Unit: 30,122 Accrued Deferred Interest - Sponsor Loan 32,414
Marin County Loan (PLHA/AHF/LHTF) 899,250 3.000% 1.788% 55.0 Per Unit: 21,933 Accrued Deferred Interest - Marin County 23,602
Addl Marin Co Funds (requested) 1,000,000 3.000% 1.788% 55.0 Per Unit: 24,390 Accrued Deferred Interest - Addl Marin Co 37,918
HCD - CA Housing Accelerator Pgm Loan 25,824,201 0.000% 0.000% 20.0 Per Unit: 629,859 TOTAL SOURCES 34,906,185
Surplus/(Shortfall) (0)
Investor:

PERMANENT LOAN INTEREST RATE TRANCHE ATRANCHE B INVESTOR EQUITY STACK OTHER ASSUMPTIONS Base Rate 3.800% 4.830%
Cushion 1.000% 0.000% LIHTC Equity (Federal+Sta 0 Current AFR: 2.14% MIP 0.000% 0.000% Historic Tax Credit 0 AFR Month: 3/1/22 GNMA/Servicing 0.000% 0.000% Investment Tax Credit (Sol 0 AFR Cushion: 0.75% Issuer 0.050% 0.050% 4,000 Issuer min/y Subtotal LP Equity 0 Total U/W AFR: 2.89% Trustee 0.000% 0.000% 0 per annum
Rating 0.000% 0.000% 0 per annum CA Certificated Credit Sale 0 Remarketing 0.000% 0.000% 0 per annum Total Investor Equity 0 Rebate Analyst 0.000% 0.000% 0 per annum
Total 4.850% 4.880%

SOURCES OF FUNDS - CONSTRUCTION
AMOUNT

INTEREST
RATE
TERM
(Mos.) COMMENTS
## Conventional Construction Loan 28,832,404 8.226% 25
City of San Rafael HTF Loan 850,000 3.000% 25
Accrued Deferred Interest - City of San R 22,309
Sponsor Loan (HPN/MCF/County) 1,235,000 3.000% 25
Accrued Deferred Interest - Sponsor Loan 32,414
Marin County Loan (PLHA/AHF/LHTF) 899,250 3.000% 25
Accrued Deferred Interest - Marin County 23,602
Addl Marin Co Funds (requested) 1,000,000 3.000% 25
Accrued Deferred Interest - Addl Marin Co 37,918
Donated Land 0
Costs Deferred Until Conversion 1,973,290 See page 2 - right column TOTAL SOURCES 34,906,185 Syndication Costs 89,670
Surplus/(Shortfall) 0 Net Equity for TCAC (89,670)
Sources Less Deferred To Conversion: 32,932,896 Less Costs Deferred to Conv. 34,906,185

CONSTRUCTION LOAN INTEREST RATE CONSTRUCTION LOAN VALUATION TAX-EXEMPT BOND DATA Index Type:
1 mo term
SOFR Restricted NOI 530,575 50% Test (see Page 7): 90.53% Current Index: 4.78% OAR 5.00% Issuer Inducement: TBD
Spread: 2.20% FMV per NOI 10,611,503 CDLAC Allocation: TBD Base Interest Rate (not including cushion 6.98% Agg. Credit Value @ 0.00 0 Percent of CDLAC Allocation 0.00% Cushion - Total 1.25% Perm-Only Soft Debt 30,805,693 Const-only portion: 28,832,404 Interest Rate (All-In) 8.23% Total Value 41,417,196
LTV: 80.00% CDLAC Per-Unit Limit 21,636,500
*Cushion includes 1% Bank Underwriting
Cushion and 0.25% cushion to close Max. Const. Loan Amount 33,133,757 CDLAC 55% Limit 17,516,742 Commitment Amount TBD
Uses of Funds
Res Cost: 100.00% COST ALLOCATIONS LIHTC ELIGIBLE BASIS OTHER BASIS & COST ALLOCATIONS Res Sq Foot: 100.00% Assuming 266 Election? Yes
Deferred to Historic
Depreciable Completion Land/Basis Rehab ITC Tax
Total Total Non- Non- Constr./ or for Tax Credit Credit Basis TOTAL Per Unit Residential Residential Depreciable Residential Non-Resid. Expensed Amortized Rehab Acquisition Perm Conv. 50% Test Basis (Solar PV)

ACQUISITION COSTS
Total Purchase Price - Real Estate:
0 Title/Recording/Escrow - Acquisition 30,000 732 30,000 0 30,000 0 0 0 0 30,000 Legal - Acquisition 20,000 488 20,000 0 20,000 0 0 0 0 20,000 Other Acquisition Costs/Transfer Tax 22,010 537 22,010 0 22,010 0 0 0 0 0 22,010

HARD COSTS
Total Construction Contract:
21,754,090

NEW CONSTRUCTION
Hard Costs-Unit Construction 18,766,975 457,731 18,766,975 0 18,766,975 0 0 18,766,975 0 18,766,975 18,766,975 GC - General Conditions 1,223,941 29,852 1,223,941 0 1,223,941 0 1,223,941 0 1,223,941 1,223,941 GC - Overhead & Profit 968,047 23,611 968,047 0 968,047 0 968,047 0 968,047 968,047 GC - Insurance 406,580 9,917 406,580 0 406,580 0 406,580 0 406,580 406,580 GC - Bond Premium 124,413 3,034 124,413 0 124,413 0 124,413 0 124,413 124,413 Contingency - Escalation (GC) 264,134 6,442 264,134 0 264,134 0 264,134 0 264,134 264,134 Contingency - Owner's Construction 2,175,409 53,059 2,175,409 0 2,175,409 0 2,175,409 0 2,175,409 2,175,409 REHAB

SOFT COSTS
Architecture - Design 931,481 22,719 931,481 0 931,481 0 931,481 0 931,481 931,481 0 Design/Engineering 74,000 1,805 74,000 0 74,000 0 74,000 0 74,000 74,000 0 Phase I/II/Toxics Report 44,000 1,073 44,000 0 44,000 0 44,000 0 44,000 44,000 Special Inspections/Testing 85,000 2,073 85,000 0 85,000 0 85,000 0 85,000 85,000 Prevailing Wage Monitor 72,000 1,756 72,000 0 72,000 0 72,000 0 72,000 72,000 0 Owner's Rep / Construction Supervision 126,000 3,073 126,000 0 126,000 0 126,000 0 126,000 126,000 0 Consultant: Asbestos Monitoring 4,000 98 4,000 0 4,000 0 4,000 0 4,000 4,000 Local Development Impact Fees 818,111 19,954 818,111 0 818,111 0 818,111 0 818,111 818,111 Local Permits/Fees 102,124 2,491 102,124 0 102,124 0 102,124 0 102,124 102,124 Real Estate Taxes During Const 16,174 394 16,174 0 16,174 0 0 16,174 0 0 16,174 16,174 Insurance During Const 800,000 19,512 800,000 0 800,000 0 0 800,000 0 0 800,000 800,000 0 Appraisal 5,500 134 5,500 0 5,500 0 0 5,500 0 5,500 5,500 Market/Rent Comp Study 11,000 268 11,000 0 11,000 0 0 0 0 Soft Cost - Soft Lenders Fees & Expenses 10,000 244 10,000 0 10,000 0 10,000 0 10,000 10,000 Soft Cost Contingency 361,881 8,826 361,881 0 361,881 0 361,881 0 361,881 361,881 Predev. Loan Interest/Fees 2,000 49 2,000 0 0 2,000 0 0 0 0 0 Construction Loan Interest 3,429,352 83,643 3,429,352 0 1,848,095 0 1,581,257 1,848,095 0 0 1,848,095 1,848,095 0 Accrued Interest - City of San Rafael HTF Loan 22,309 544 22,309 0 11,982 0 10,327 11,982 0 11,982 11,982 Accrued Interest - Sponsor Loan (HPN/MCF/Co 32,414 791 32,414 0 17,409 0 15,004 17,409 0 17,409 17,409 Accrued Interest - Marin County Loan (PLHA/A 23,602 576 23,602 0 12,676 0 10,925 12,676 0 12,676 12,676 Accrued Interest - Addl Marin Co Funds (reque 37,918 925 37,918 0 25,630 0 12,288 25,630 0 25,630 25,630 Lender Fees - HCD - CA Housing Accelerator P 40,000 976 40,000 0 40,000 0 0 0 Title/Recording/Escrow - Construction 59,996 1,463 59,996 0 59,996 0 59,996 0 0 59,996 59,996 Title/Recording/Escrow - Permanent 15,000 366 15,000 0 15,000 15,000 Legal (Owner): Construction Closing 50,000 1,220 50,000 0 50,000 0 50,000 0 0 50,000 50,000 Permanent Closing 20,000 488 20,000 0 20,000 0 20,000
Organization of Ptnshp 6,670 163 6,670 0 6,670 0
Syndication Consulting/Consulting 63,000 1,537 63,000 0 63,000 0 0 2,500 Audit/Cost Certification 20,000 488 20,000 0 20,000 0
Marketing 64,755 1,579 64,755 0 64,755 0
Furnishings Not in Contract 220,000 5,366 220,000 0 220,000 0 220,000 0 Capitalized Replacement Reserve 41,000 1,000 41,000 0 41,000 41,000 Capitalized Operating Reserve (6 mos.) 497,531 12,135 497,531 0 497,531 497,531 Capitalized NPLH COSR Transition Reserve 133,825 3,264 133,825 0 133,825 133,825 Marin Co Subsidy - HCD TR Fee 146,623 3,576 146,623 0 146,623 146,623 Developer Fee 2,200,000 53,659 2,200,000 0 2,200,000 0 2,200,000 0 1,100,000 2,200,000 2,200,000 -

COSTS OF ISSUANCE/FINANCING FEES
Construction Lender Origination Fee 187,411 4,571 187,411 0 100,997 0 86,414 100,997 0 100,997 100,997 Construction Lender Expenses 60,000 1,463 60,000 0 32,334 0 27,666 32,334 0 32,334 32,334 Construction Lender Counsel 70,000 1,707 70,000 0 37,723 0 32,277 37,723 0 37,723 37,723 Subtotal - Financing/Costs of Issuance 317,411 7,742 317,411 0 0 171,054 0 0 146,356 171,054 0 0 171,054 171,054 0 TOTAL DEVELOPMENT COSTS 34,906,185 851,370 34,906,185 0 953,990 31,996,613 0 1,716,557 239,026 31,996,613 0 1,973,290 31,848,623 31,776,613 0 TDC Per Unit 851,370 100.00%
TDC Net of accrued interest: 34,749,943
TDC TCAC 34,816,515 34,816,515
Kerner Street
017492
I RS Department the Treasury
IlIh,rllal Revenue Snvl<'t:

P.O. Box 2508
Cincinnati OH 45201

EDEN HOUSING INC
22645 GRAND ST
HAYWARD CA 94541-5031
Employer Identification Number:

In reply refer to: 0248323016
May 14, 2009 LTR 4168C EO
23-1716750 000000 00 000
23-1716750
00018272
BODC: TE
Person to Contact: Yvette Davis
Toll Free Telephone Number: 1-877-829-5500
Dear Taxpayer:

This is in response to your request of May 05, 2009, regarding your tax-exempt status.

Our records indicate that a determination letter was issued in August 1986, that recognized you as exempt from Federal income tax, and discloses that you are currently exempt under section 501(c)(3) of the Internal Revenue Code.

Our records also indicate yoU are not a private foundation within the meaning of section 509(a) of the Code because you are described in section(s) 509(a)(I) and 170(b)(I)(A)(vi).

Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code.

If you have any questions, please call us at the telephone number shown in the heading of this letter.

Sincerely yours,
Michele M. Sullivan, Oper. Mgr.

Accounts Management Operations I
017491
I RS Department ,,1' the
Internal Revellne Serl'h'e
P.O. Box 2508
Cincinnati OH 45201

EDEN HOUSING MANAGEMENT INC
22645 GRAND ST
HAYWARD CA 94541-5031
Employer Identification Number:

In reply refer to: 0248323016
May 14, 2009 LTR 4168C EO
94-2946400 000000 00 000
94-2946400
00018275
BODC: TE
Person to Contact: Yvette Davis
Toll Free Telephone Number: 1-877-829-5500
Dear Taxpayer:

This is in response to your request of May 05, 2009, regarding your tax-exempt status.

Our records indicate that a determination letter was issued in November 1986. that recognized you as exempt from Federal income tax. and discloses that you are currently exempt under section 501(c)(3) of the Internal Revenue Code.

Our records also indicate you are not a private foundation within the meaning of section 509(a) of the Code because you are described in section 509(a)(3).

Donors may deduct contributions to you as provided in section 170 of the Code. Bequests. legacies, devises. transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code.

If you have any questions, please call us at the telephone number shown in the heading of this letter.

Sincerely yours,
Michele M. Sullivan, Oper. Mgr.

Accounts Management Operations I
~~ I RS Departmeut of the tdA"lII. Illterl1al Rev('l1u" Service 017490
P.O. Box 2508
Cincinnati OH 45201

EDEN HOUSING RESIDENT SERVICES INC
% LORI GANZ
22645 GRAND ST
HAYWARD CA 94541-5031
Employer Identification Number:

In reply refer to: 0248323016
May 14, 2009 LTR 4168C EO
94-3315887 000000 00 000
94-3315887
00018276
BODC: TE
Person to Contact: Yvette Davis
Toll Free Telephone Number: 1-877-829-5500
Dear Taxpayer:

This is in response to your request of May OS, 2009, regarding your tax-exempt status.

Our records indicate that a determination letter was issued in March 2000, that recognized you as exempt from Federal income tax, and discloses that yoU are currently exempt under section 501Cc)(3) of the Internal Revenue Code.

Our records also indicate you are not a private foundation within the meaning of section 509(a) of the Code because you are described in section 509(a)(3).

Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code.

If you have any questions. please call us at the telephone number shown in the heading of this letter.

Sincerely yours,
Michele M. Sullivan. Oper. Mgr.

Accounts Management Operations I
Base Year Income & Expense
INCOME
Scheduled Gross Income - Residential 189,600
Total Gross Rental Subsidy Income - Marin County Carmel Units 156,000 Total Operating Subsidy Income - NPLH COSR 133,825
Vacancy Loss - Residential 10.0% (18,960)
Vacancy Loss - Marin County Carmel Units 10.0% (15,600) EFFECTIVE GROSS INCOME 444,865

EXPENSES - RESIDENTIAL
Administrative
Advertising 500
Legal 5,000
Accounting/Audit 15,491
Security 245,400
Other: Misc. Admin 25,540
Total Administrative 291,931
Management Fee 36,900
Utilities
Electricity 16,500
Water/Sewer 51,700
Total Utilities 68,200
Payroll/Payroll Taxes
On-Site Manager/Office Admin 126,220
Maintenance Payroll 53,500
Payroll Taxes/Benefits 61,441
Total Payroll/Payroll Taxes 241,161
Insurance 97,024
Maintenance
Painting 1,700
Repairs 17,100
Trash Removal 19,000
Exterminating 4,500
Grounds 9,000
Elevator 8,000
janitorial contract/supplies/uniforms 33,790
Total Maintenance 93,090
Other
Misc. Tax/License 2,850
Total Other 2,850
Resident Services
Tenant Services 121,484
Total Resident Services 121,484
Replacement Reserve 20,500
Real Estate Taxes 1,000
TOTAL EXPENSES - RESIDENTIAL 974,140
Per Unit Per Annum (incl. Reserves) 23,760
Per Unit Per Annum (w/o taxes/res/svc)) 20,272
TCAC Minimum (w/o taxes/res/svc) 5,500
TOTAL EXPENSES - COMMERCIAL 0
NET AVAILABLE INCOME (529,275)
Less: Mandatory Annual HCD Payment (Grossed Up for DSCR Factor) 1.00 (20,922) Operating Subsidy Income - Marin Co OpEx Subsidy 530,575 ADJUSTED NET AVAILABLE INCOME: TOTAL (19,622)
ADJUSTED NET AVAILABLE INCOME: NET OF OP SUBSIDY (824,422) Debt Service Coverage Ratio 1.00
AVAILABLE FOR DEBT SERVICE (NET OF OP SUBSIDY) (824,422) AVAILABLE FOR DEBT SERVICE (OP SUBSIDY OVERHANG) 804,800 NET AVAILABLE INCOME AFTER SENIOR DEBT SERVICE (19,622) Kerner Street
15-Year Cash Flow Version: Closing
Assumptions
Rent Increase: Residential Tenant Rents 2.00% Rent Increase - Section 8 2.00% Perm Loan - % Debt Svc Yr 0 0.0% Rent Increase: Commercial Rents 2.00% Rent Increase - Marin County 2.00% Perm Loan - % Debt Svc Yr 0.0% Expenses Increase: 3.00% Rent Increase - Test C 2.00% Perm Loan - % Debt Svc Yr 2 66.7% Reserve Increase: 0.00% Rent Increase - Test D 2.00% Perm Loan - % Debt Svc Yr 3 100.0% Perm Loan - % Debt Svc Yr 4 100.0%
Credit Period Year: 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 Aggregrate Annual Rent Increase 318.95% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% GROSS POTENTIAL INCOME - RESIDENTIAL 0 45,473 190,509 194,320 198,206 202,170 206,214 210,338 214,545 218,835 223,212 227,676 232,230 236,875 241,612 246,444 251,373 256,401 261,529 266,759 272,094 277,536 283,087 288,749 294,524 300,414 306,423 312,551 318,802 325,178 331,682 Draw from NPLH COSR 0 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 133,825 0 0 0 0 0 0 0 0 0 0 Incremental Income: Marin County Carmel Unit 3,617,633 (thru Y20) 0 37,415 156,748 159,883 163,081 166,343 169,669 173,063 176,524 180,055 183,656 187,329 191,075 194,897 198,795 202,771 206,826 210,963 215,182 219,485 223,875 228,353 232,920 237,578 242,330 247,176 252,120 257,162 262,305 267,552 272,903 Vacancy Loss - Residential 10.0% 0 (4,547) (19,051) (19,432) (19,821) (20,217) (20,621) (21,034) (21,454) (21,884) (22,321) (22,768) (23,223) (23,687) (24,161) (24,644) (25,137) (25,640) (26,153) (26,676) (27,209) (27,754) (28,309) (28,875) (29,452) (30,041) (30,642) (31,255) (31,880) (32,518) (33,168) Vacancy Loss - Marin County Carmel Units 10.0% 0 (3,741) (15,675) (15,988) (16,308) (16,634) (16,967) (17,306) (17,652) (18,005) (18,366) (18,733) (19,108) (19,490) (19,879) (20,277) (20,683) (21,096) (21,518) (21,949) (22,388) (22,835) (23,292) (23,758) (24,233) (24,718) (25,212) (25,716) (26,231) (26,755) (27,290) GROSS EFFECTIVE INCOME 0 208,424 446,357 452,608 458,984 465,487 472,120 478,886 485,787 492,826 500,006 507,330 514,800 522,420 530,191 538,119 546,205 554,452 562,865 571,446 580,198 455,300 464,406 473,694 483,168 492,831 502,688 512,742 522,997 533,457 544,126 TOTAL EXPENSES 0 228,719 960,502 989,317 1,018,996 1,049,566 1,081,053 1,113,485 1,146,889 1,181,296 1,216,735 1,253,237 1,290,834 1,329,559 1,369,446 1,410,529 1,452,845 1,496,430 1,541,323 1,587,563 1,635,190 1,684,245 1,734,773 1,786,816 1,840,420 1,895,633 1,952,502 2,011,077 2,071,409 2,133,552 2,197,558 NET OPERATING INCOME 0 (20,294) (514,144) (536,709) (560,013) (584,079) (608,933) (634,599) (661,102) (688,469) (716,728) (745,907) (776,034) (807,139) (839,254) (872,410) (906,640) (941,978) (978,458) (1,016,117) (1,054,992) (1,228,945) (1,270,367) (1,313,122) (1,357,252) (1,402,801) (1,449,814) (1,498,335) (1,548,413) (1,600,095) (1,653,432) REPLACEMENT RESERVE 20,500 0 4,917 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 Mandatory Annual HCD Payment 0.42% 0 0 13,948 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 20,922 NET REMAINING INCOME 0 (25,211) (548,592) (578,131) (601,435) (625,502) (650,355) (676,021) (702,524) (729,892) (758,151) (787,329) (817,456) (848,562) (880,676) (913,832) (948,062) (983,400) (1,019,881) (1,057,539) (1,096,414) (1,270,367) (1,311,789) (1,354,544) (1,398,674) (1,444,224) (1,491,236) (1,539,757) (1,589,835) (1,641,517) (1,694,855) NET CASH FLOW 0 (25,211) (548,592) (578,131) (601,435) (625,502) (650,355) (676,021) (702,524) (729,892) (758,151) (787,329) (817,456) (848,562) (880,676) (913,832) (948,062) (983,400) (1,019,881) (1,057,539) (1,096,414) (1,270,367) (1,311,789) (1,354,544) (1,398,674) (1,444,224) (1,491,236) (1,539,757) (1,589,835) (1,641,517) (1,694,855) Draw From Marin Co OpEx Subsidy 15,932,111 0 25,211 548,592 578,131 601,435 625,502 650,355 676,021 702,524 729,892 758,151 787,329 817,456 848,562 880,676 913,832 948,062 983,400 1,019,881 1,057,539 1,096,414 683,146 0 0 0 0 0 0 0 0 0 Remaining Net Cash Flow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (587,221) (1,311,789) (1,354,544) (1,398,674) (1,444,224) (1,491,236) (1,539,757) (1,589,835) (1,641,517) (1,694,855) TOTAL MARIN COUNTY SUBSIDY (rental income/OpEx) 19,549,745 62,626 705,341 738,014 764,516 791,844 820,025 849,084 879,048 909,946 941,806 974,658 1,008,531 1,043,458 1,079,471 1,116,603 1,154,888 1,194,363 1,235,062 1,277,025 1,320,289 683,146 GP AMF Annual Amt: 25,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Inflator: 3.00%
Residual Receipts Loans Total % 100.00%
NPLH 64.44% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 City of San Rafael HTF Loan 11.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sponsor Loan (HPN/MCF/County) 0.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Marin County Loan (PLHA/AHF/LHTF) 11.63% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Addl Marin Co Funds (requested) 12.94% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 HCD - CA Housing Accelerator Pgm Loan 0.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Kerner Street

SOURCES OF FUNDS - PERMANENT
AMOUNT
TOTAL

INTEREST
COST
OID

INTEREST
RATE
AMORT
(Yr) COMMENTS
Total Permanent Debt: -
NPLH 4,981,492 3.000% 1.903% 55.0 Per Unit: 121,500
City of San Rafael HTF Loan 850,000 3.000% 1.788% 55.0 Per Unit: 20,732 Accrued Deferred Interest - City of San R 22,309
Sponsor Loan (HPN/MCF/County) 1,235,000 3.000% 1.788% 55.0 Per Unit: 30,122 Accrued Deferred Interest - Sponsor Loan 32,414
Marin County Loan (PLHA/AHF/LHTF) 899,250 3.000% 1.788% 55.0 Per Unit: 21,933 Accrued Deferred Interest - Marin County 23,602
Addl Marin Co Funds (requested) 1,000,000 3.000% 1.788% 55.0 Per Unit: 24,390 Accrued Deferred Interest - Addl Marin Co 37,918
HCD - CA Housing Accelerator Pgm Loan 25,824,201 0.000% 0.000% 20.0 Per Unit: 629,859 TOTAL SOURCES 34,906,185
Surplus/(Shortfall) (0)
Investor:

PERMANENT LOAN INTEREST RATE TRANCHE ATRANCHE B INVESTOR EQUITY STACK OTHER ASSUMPTIONS Base Rate 3.800% 4.830%
Cushion 1.000% 0.000% LIHTC Equity (Federal+Sta 0 Current AFR: 2.14% MIP 0.000% 0.000% Historic Tax Credit 0 AFR Month: 3/1/22 GNMA/Servicing 0.000% 0.000% Investment Tax Credit (Sol 0 AFR Cushion: 0.75% Issuer 0.050% 0.050% 4,000 Issuer min/y Subtotal LP Equity 0 Total U/W AFR: 2.89% Trustee 0.000% 0.000% 0 per annum
Rating 0.000% 0.000% 0 per annum CA Certificated Credit Sale 0 Remarketing 0.000% 0.000% 0 per annum Total Investor Equity 0 Rebate Analyst 0.000% 0.000% 0 per annum
Total 4.850% 4.880%

SOURCES OF FUNDS - CONSTRUCTION
AMOUNT

INTEREST
RATE
TERM
(Mos.) COMMENTS
## Conventional Construction Loan 28,832,404 8.226% 25
City of San Rafael HTF Loan 850,000 3.000% 25
Accrued Deferred Interest - City of San R 22,309
Sponsor Loan (HPN/MCF/County) 1,235,000 3.000% 25
Accrued Deferred Interest - Sponsor Loan 32,414
Marin County Loan (PLHA/AHF/LHTF) 899,250 3.000% 25
Accrued Deferred Interest - Marin County 23,602
Addl Marin Co Funds (requested) 1,000,000 3.000% 25
Accrued Deferred Interest - Addl Marin Co 37,918
Donated Land 0
Costs Deferred Until Conversion 1,973,290 See page 2 - right column TOTAL SOURCES 34,906,185 Syndication Costs 89,670
Surplus/(Shortfall) 0 Net Equity for TCAC (89,670)
Sources Less Deferred To Conversion: 32,932,896 Less Costs Deferred to Conv. 34,906,185

CONSTRUCTION LOAN INTEREST RATE CONSTRUCTION LOAN VALUATION TAX-EXEMPT BOND DATA Index Type:
1 mo term
SOFR Restricted NOI 530,575 50% Test (see Page 7): 90.53% Current Index: 4.78% OAR 5.00% Issuer Inducement: TBD
Spread: 2.20% FMV per NOI 10,611,503 CDLAC Allocation: TBD Base Interest Rate (not including cushion 6.98% Agg. Credit Value @ 0.00 0 Percent of CDLAC Allocation 0.00% Cushion - Total 1.25% Perm-Only Soft Debt 30,805,693 Const-only portion: 28,832,404 Interest Rate (All-In) 8.23% Total Value 41,417,196
LTV: 80.00% CDLAC Per-Unit Limit 21,636,500
*Cushion includes 1% Bank Underwriting
Cushion and 0.25% cushion to close Max. Const. Loan Amount 33,133,757 CDLAC 55% Limit 17,516,742 Commitment Amount TBD
Uses of Funds
Res Cost: 100.00% COST ALLOCATIONS LIHTC ELIGIBLE BASIS OTHER BASIS & COST ALLOCATIONS Res Sq Foot: 100.00% Assuming 266 Election? Yes
Deferred to Historic
Depreciable Completion Land/Basis Rehab ITC Tax
Total Total Non- Non- Constr./ or for Tax Credit Credit Basis TOTAL Per Unit Residential Residential Depreciable Residential Non-Resid. Expensed Amortized Rehab Acquisition Perm Conv. 50% Test Basis (Solar PV)

ACQUISITION COSTS
Total Purchase Price - Real Estate:
0 Title/Recording/Escrow - Acquisition 30,000 732 30,000 0 30,000 0 0 0 0 30,000 Legal - Acquisition 20,000 488 20,000 0 20,000 0 0 0 0 20,000 Other Acquisition Costs/Transfer Tax 22,010 537 22,010 0 22,010 0 0 0 0 0 22,010

HARD COSTS
Total Construction Contract:
21,754,090

NEW CONSTRUCTION
Hard Costs-Unit Construction 18,766,975 457,731 18,766,975 0 18,766,975 0 0 18,766,975 0 18,766,975 18,766,975 GC - General Conditions 1,223,941 29,852 1,223,941 0 1,223,941 0 1,223,941 0 1,223,941 1,223,941 GC - Overhead & Profit 968,047 23,611 968,047 0 968,047 0 968,047 0 968,047 968,047 GC - Insurance 406,580 9,917 406,580 0 406,580 0 406,580 0 406,580 406,580 GC - Bond Premium 124,413 3,034 124,413 0 124,413 0 124,413 0 124,413 124,413 Contingency - Escalation (GC) 264,134 6,442 264,134 0 264,134 0 264,134 0 264,134 264,134 Contingency - Owner's Construction 2,175,409 53,059 2,175,409 0 2,175,409 0 2,175,409 0 2,175,409 2,175,409 REHAB

SOFT COSTS
Architecture - Design 931,481 22,719 931,481 0 931,481 0 931,481 0 931,481 931,481 0 Design/Engineering 74,000 1,805 74,000 0 74,000 0 74,000 0 74,000 74,000 0 Phase I/II/Toxics Report 44,000 1,073 44,000 0 44,000 0 44,000 0 44,000 44,000 Special Inspections/Testing 85,000 2,073 85,000 0 85,000 0 85,000 0 85,000 85,000 Prevailing Wage Monitor 72,000 1,756 72,000 0 72,000 0 72,000 0 72,000 72,000 0 Owner's Rep / Construction Supervision 126,000 3,073 126,000 0 126,000 0 126,000 0 126,000 126,000 0 Consultant: Asbestos Monitoring 4,000 98 4,000 0 4,000 0 4,000 0 4,000 4,000 Local Development Impact Fees 818,111 19,954 818,111 0 818,111 0 818,111 0 818,111 818,111 Local Permits/Fees 102,124 2,491 102,124 0 102,124 0 102,124 0 102,124 102,124 Real Estate Taxes During Const 16,174 394 16,174 0 16,174 0 0 16,174 0 0 16,174 16,174 Insurance During Const 800,000 19,512 800,000 0 800,000 0 0 800,000 0 0 800,000 800,000 0 Appraisal 5,500 134 5,500 0 5,500 0 0 5,500 0 5,500 5,500 Market/Rent Comp Study 11,000 268 11,000 0 11,000 0 0 0 0 Soft Cost - Soft Lenders Fees & Expenses 10,000 244 10,000 0 10,000 0 10,000 0 10,000 10,000 Soft Cost Contingency 361,881 8,826 361,881 0 361,881 0 361,881 0 361,881 361,881 Predev. Loan Interest/Fees 2,000 49 2,000 0 0 2,000 0 0 0 0 0 Construction Loan Interest 3,429,352 83,643 3,429,352 0 1,848,095 0 1,581,257 1,848,095 0 0 1,848,095 1,848,095 0 Accrued Interest - City of San Rafael HTF Loan 22,309 544 22,309 0 11,982 0 10,327 11,982 0 11,982 11,982 Accrued Interest - Sponsor Loan (HPN/MCF/Co 32,414 791 32,414 0 17,409 0 15,004 17,409 0 17,409 17,409 Accrued Interest - Marin County Loan (PLHA/A 23,602 576 23,602 0 12,676 0 10,925 12,676 0 12,676 12,676 Accrued Interest - Addl Marin Co Funds (reque 37,918 925 37,918 0 25,630 0 12,288 25,630 0 25,630 25,630 Lender Fees - HCD - CA Housing Accelerator P 40,000 976 40,000 0 40,000 0 0 0 Title/Recording/Escrow - Construction 59,996 1,463 59,996 0 59,996 0 59,996 0 0 59,996 59,996 Title/Recording/Escrow - Permanent 15,000 366 15,000 0 15,000 15,000 Legal (Owner): Construction Closing 50,000 1,220 50,000 0 50,000 0 50,000 0 0 50,000 50,000 Permanent Closing 20,000 488 20,000 0 20,000 0 20,000
Organization of Ptnshp 6,670 163 6,670 0 6,670 0
Syndication Consulting/Consulting 63,000 1,537 63,000 0 63,000 0 0 2,500 Audit/Cost Certification 20,000 488 20,000 0 20,000 0
Marketing 64,755 1,579 64,755 0 64,755 0
Furnishings Not in Contract 220,000 5,366 220,000 0 220,000 0 220,000 0 Capitalized Replacement Reserve 41,000 1,000 41,000 0 41,000 41,000 Capitalized Operating Reserve (6 mos.) 497,531 12,135 497,531 0 497,531 497,531 Capitalized NPLH COSR Transition Reserve 133,825 3,264 133,825 0 133,825 133,825 Marin Co Subsidy - HCD TR Fee 146,623 3,576 146,623 0 146,623 146,623 Developer Fee 2,200,000 53,659 2,200,000 0 2,200,000 0 2,200,000 0 1,100,000 2,200,000 2,200,000 -

COSTS OF ISSUANCE/FINANCING FEES
Construction Lender Origination Fee 187,411 4,571 187,411 0 100,997 0 86,414 100,997 0 100,997 100,997 Construction Lender Expenses 60,000 1,463 60,000 0 32,334 0 27,666 32,334 0 32,334 32,334 Construction Lender Counsel 70,000 1,707 70,000 0 37,723 0 32,277 37,723 0 37,723 37,723 Subtotal - Financing/Costs of Issuance 317,411 7,742 317,411 0 0 171,054 0 0 146,356 171,054 0 0 171,054 171,054 0 TOTAL DEVELOPMENT COSTS 34,906,185 851,370 34,906,185 0 953,990 31,996,613 0 1,716,557 239,026 31,996,613 0 1,973,290 31,848,623 31,776,613 0 TDC Per Unit 851,370 100.00%
TDC Net of accrued interest: 34,749,943
TDC TCAC 34,816,515 34,816,515
Kerner Street
3301 Kerner - 41 Units
Project Schedule
March-23 Marin County CDA Affordable Housing Funds - Application Deadline March-23 Estimated Construction Closing
April-23 Estimated Construction Start
September-24 Estimated Temporary Certificate of Occupancy January-25 Estimated 100% Occupancy
May-25 Estimated Permanent Conversion