Attachment B9 - Proposals Received (Venice Community Housing + National CORE) — Santa Monica City Council, January 11, 2022

Venice Community Housing Corporation +
National Community Renaissance of California
(National CORE)
1318 FOURTH STREET

AFFORDABLE HOUSING DEVELOPMENT

RFP RESPONSE PACKAGE SUBMITTED BY

RFP

APPENDIX
TABLE

OF CONTENTS
04 06
62 88
96 118
138
COVER
LETTER

DEVELOPMENT
TEAM

DEVELOPMENT &

SERVICES CONCEPT

FINANCING

STRATEGY

COMMUNITY

INVOLVEMENT PLAN

FINANCIAL CAPACITY
& EXPERIENCE
NOVEMBER 1, 2019

JAMES KEMPER

HOUSING AND ECONOMIC DEVELOPMENT

DEPARTMENT - HOUSING DIVISION

CITY OF SANTA MONICA
1901 MAIN STREET, SUITE B
SANTA MONICA, CA 90401
RE: 1318 FOURTH STREET AFFORDABLE

HOUSING REQUEST FOR PROPOSAL RESPONSE
Dear Mr. Kemper,
Venice Community Housing Corporation (VCHC) and
National Community Renaissance of California (National
CORE) are pleased to submit a proposal in response to the Request for Proposals from the City of Santa Monica for developing an innovative affordable and supportive
housing community and public park at 1318 4th Street.

VCHC and National CORE will form a limited liability
corporation to lead an extraordinary team of design,
planning, and engagement professionals to develop HOLM, a groundbreaking residential community consisting of
permanent supportive housing and workforce housing,
elevated over an active ground floor made up of an array of neighborhood-serving uses that stitch together the
surrounding environment.

Founded in 1988, VCHC is a California non-profit 501(c)(3) corporation providing affordable housing and supportive services to low-income, formerly homeless, and formerly chronically homeless populations. The mission of VCHC is to reduce homelessness, maximize affordable housing,
empower residents, provide social services, and advocate for public policy that protects and strengthens the
economic, racial, and cultural diversity of Westside
neighborhoods.

PRIMARY CONTACT FOR SUBMITTAL

BECKY DENNISON
Executive Director
Venice Community Housing Corporation
200 Lincoln Boulevard
Venice, CA 90291
310.573.8399
[email protected]

DAVID GRUNWALD
SVP of the Los Angeles Region
National Community Renaissance of
California
[National CORE]
12121 Wilshire Boulevard, Suite 810
Los Angeles, CA 90025
310.622.3373
[email protected]
Through HOLM our team promises to:

If our team is selected to proceed with the proposed
development, we will work closely with your team, local partners and the community to maximize public and
private resources, invigorating this portion of the
neighborhood and serving the broader community, while
providing a high quality of life for our residents. We look forward to the opportunity to collaborate with the City of Santa Monica to deliver this new enriching neighborhoodserving community.

Please contact Becky Dennison, Executive Director of VCHC or David Grunwald, Senior Vice President of National CORE for any information or questions.

National CORE currently serves roughly 27,000 residents and is the developer, owner, operator, and services
provider for all properties, thus ensuring long-term
affordability and high quality maintenance of affordable communities.

Koning Eizenberg Architects are local and global design leaders who will be directing the architectural design of HOLM, Howard Robinson & Associates (HR&A) are local
land-use experts whose steady hands will help guide the team through the comprehensive review and approval
process. Eumenides brings their wealth of local
knowledge, network of connections, and awareness for
our team to quickly engage neighbors and partners, and
build relationships that ensure the long-term success of HOLM. City Fabrick is a nonprofit design studio who will synthesize the urban design inside and out to integrate the development within the community. This project
brings together a diverse array of design, planning, and engagement professionals have been formed to be
partners within this endeavor including industry leaders and local innovators in Santa Monica.

As co-developers VCHC and National CORE each bring a
myriad of strengths to the project. VCHC’s length of
experience in developing supportive housing, providing
essential services to at-risk residents, and relationships with local service providers and community partners
combined with National CORE’s breadth of experience
constructing and managing stellar designed, wellmaintained affordable communities will result in a vibrant community that fits the needs and opportunities within Downtown Santa Monica.

HOLM will be a supportive community that physically
and socially integrates itself into the Downtown Santa
Monica community, taking advantage of the site’s unique context and surrounding assets, while supporting the
distinct needs of the neighborhood. The project is
designed and programmed to meet the goals of recently
adopted Downtown Santa Monica Community Plan, as
well as the objectives stated within the Request for
Proposal.

Provide Inclusive
Homes for Santa
Monica
Connect Downtown
through Public
Spaces
Leverage Unique
Partners to Create
Place
Serve Our Residents
and Broader
Community
Design Architecture
that Inspires and
Heals
Deliver Tested and
Effective Results
Be Local and Global
Environmental
Stewards
Maximize Public and
Private Investment

BECKY DENNISON
Executive Director
Venice Community Housing

DAVID GRUNWALD
SVP for the Greater Los Angeles Region
National Community Renaissance of California [National
CORE]

DEVELOPMENT
TEAM

4.5.2 8 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

AR I ZO NA
FOURTH
SECOND

SANTA MONICA

PROJECT SITE

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 9 Development
Team

ORGANIZATIONAL CHART

BECKY DENNISON

EXECUTIVE DIRECTOR

BRIAN ULASZWESKI NATHAN BISHOP

CO-DEVELOPER

URBAN DESIGN
& PLANNING

SUE STEINBERG
LAND
USE

ARCHITECT

CO-DEVELOPER

NATIONAL
CORE

VENICE COMMUNITY

HOUSING CORPORATION

DEVELOPMENT
DESIGN

SUPPORT

DAVID GRUNWALD

SENIOR VICE PRESIDENT

DANIEL LORRAINE

PROPERTY

MANAGEMENT

BRIDGETT BELL

RESIDENT

PROGRAMMING &

SUPPORT SERVICES

CHRIS KILLIAN

GENERAL

CONTRACTOR

DAWN HICKS

COMMUNITY

OUTREACH

4.5.2 DEVELOPMENT TEAM
10 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE BECKY

DENNISON
Executive Director
Venice Community
Housing Corporation
200 Lincoln Boulevard
Venice, CA 90291
[email protected]
NATHAN

BISHOP, AIA
Principal in Charge of Design
Koning
Eizenberg
1454 25th Street
Santa Monica, CA 90404
[email protected]
BRIAN

ULASZEWSKI
Principal and Executive Director
City
Fabrick
425 East 4th Street, Suite E
Long Beach, CA 90802
[email protected]

BRIDGETT
BELL
Director of Policy and Programs
Venice Community
Housing Corporation
200 Lincoln Boulevard
Venice, CA 90291
[email protected]
DAVID

GRUNWALD
SVP for the Greater Los Angeles Region
National
Core
12121 Wilshire Boulevard, Suite 810
Los Angeles, CA 90025
[email protected]

CO-DEVELOPERS ARCHITECT

URBAN DESIGN AND PLANNING SOCIAL SERVICE PROVIDER
Lead
Developers

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 11 DAN

LORRAINE
Senior Vice President of
Property Management
National
Core
19421 Haven Avenue
Rancho Cucamonga, CA 91730
[email protected]
SUE

STEINBERG
Principal
Howard Robinson
& Associates
660 S Figueroa St Suite
#1780, Los Angeles, CA 9001
[email protected]

MELISSA

SWEENEY
Principal
Eumenides
Consulting
Santa Monica
California
m.sweeney@
eumenidesconsulting.com

PROPERTY MANAGER LAND-USE CONSULTANT

COMMUNITY ENGAGEMENT

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12 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

PARTNERSHIP LEGAL ENTITY
Both National CORE and Venice Community Housing
Corporation are not for profit corporations, incorporated in the State of California. For this development, a limited partnership will be formed as the ownership entity for the project. VCHC and National CORE will enter into a joint venture.

SANTA MONICA EXPERIENCE
The development team looks forward to expanding its
relationship with City of Santa Monica. The Principal
Developers have experience developing and managing a
range of affordable and permanent supportive housing
communities, including on the Westside. This experience is augmented by the consultant team’s deep understanding
of Santa Monica; most team members have worked in the
community for decades, along with many of them based
locally.

In 2018, VCHC secured a Community Development Block
Grant (CDBG) with Santa Monica for five hundred thousand dollars to renovate Navy Blue Apartments, a fourteen unit, permanent supportive housing building located on 102 Navy Court. In addition, VCHC also committed three units for Santa Monica’s tenant-based voucher holders.

VCHC is also experienced in navigating through the coastal development permit process. VCHC recently secured
unanimous approval from the Coastal Commission for the
first 100% and largest to date permanent supportive housing development in Venice.

VCHC will use its knowledge and relationships with the
Coastal Zone to ensure the Coastal Commission’s feedback is incorporated early on so that there is a seamless transition once governmental approvals are secured by the City of Santa Monica. VCHC is also working with the Coastal Commission on the development of Reese Davidson Community, a 140
unit, mixed-use development with an arts center, retail, and 401 public parking stall garage. From the onset, VCHC has worked collaboratively with the Coastal Commission to ensure their concerns are addressed without compromising the rest of the project ambitions.

KoningEizenberg has a deep connection to the City of Santa Monica, having been located in the city for decades and have over a dozen projects designed and constructed across the community. They have secured planning entitlements
and permits for two schools in Santa Monica including PS1 Pluralistic School and Herb Alpert Educational Village, a myriad of mixed use projects, many of which where the City has been the client like Pico Branch Library. The firm brings extensive knowledge of the regulations and process as well as relationships with various staff that will be leveraged to ensure expeditious delivery of design, review, and approval for the project.

Eumenides has managed city-wide community outreach
efforts for more than 30 non-profit and for–profit development projects, chiefly in Santa Monica. Their services include messaging, collateral and multimedia development, social media, development and facilitation of charrettes and
community meetings, engagement with neighborhood
associations and the business community, and mobilization of supporters. These projects include, but are not limited to affordable housing, transportation, hospitality, and healthcare.

Eumenides will be positioned to lead community engagement through planning and design, review and approvals,
construction, and lease-up.

City Fabrick is working with the US Veterans Affairs Department and affordable housing development team to plan an over 1,200 permanent supportive home community for unsheltered veterans and their families to be located on the West Los Angeles VA campus. This includes master planning and
urban design, including communications and community
engagement to a broad constituency of neighbors, local
partners, services providers, and veterans. Team members from City Fabrick have also worked in and for the City of Santa Monica, including the Downtown creative crosswalk project which was honored by the American Planning Association
(APA) Los Angeles Award of Excellence in Urban Design.

City Fabrick and National CORE are part of a large scale redevelopment of a 21-acre Housing Authority of the City of Los Angeles [HACLA] property in Downtown San Pedro. One San Pedro is a new neighborhood consisting of nearly 1,400 mixedincome apartment homes and homeownership opportunities, 5 acres of new public open space, and 100,000 square feet of street level space hosting commercial uses, community amenities and service providers. The urban planning and design process includes an extensive community engagement processs that engages multiple city and regional agencies, local residential, business associations, community partners, and service providers to define a shared One San Pedro vision.

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 13 THE DEVELOPMENT TEAM MEMBER’S EXPERIENCE MAY BE FOUND IN THE FOLLOWING PAGES:
14 26
40 50
56 57

VENICE COMMUNITY

HOUSING CORPORATION

NATIONAL
CORE

KONINGEIZENBERG

ARCHITECTURE

HOWARD ROBINSON
& ASSOCIATES
CITY

FABRICK

EUMENIDES

CONSULTING
Development
Team Members

4.5.2 DEVELOPMENT TEAM
14 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Founded in 1988, VCHC is a
California non-profit 501(c)(3) corporation
providing affordable housing and supportive
services to low-income, homeless, and chronically
homeless populations in Venice and neighboring
communities.

The mission of VCHC is to reduce homelessness, maximize affordable housing, empower residents, provide social services, and advocate for public policy that protects and strengthens the economic, racial, and cultural diversity of Venice and other neighborhoods on the Westside of Los Angeles County.

VCHC has a long history of successful affordable and
permanent supportive housing development, property
management experience, and extensive experience in
providing comprehensive supportive services to those who have experienced chronic homeless and others most in need.

VCHC also has deep roots n communities across the westside of Los Angeles, and looks forward to implementing its existing robust and successful grass-roots community advocacy team to ensure a successful development in the neighboring City of Santa Monica.

DEVELOPMENT
Through a holistic, flexible, and grass roots process, VCHC has steadily built a portfolio of affordable housing in one of the most challenging areas to build housing, Venice Beach and the Westside of Los Angeles County. The rise of Silicon Beach, restrictive zoning policy, skyrocketing land costs, and widening income inequality have exacerbated rents and
forced families who have long standing roots on the westside to be displaced. Despite these challenges, VCHC has amassed 236 units of multi-family affordable housing, including 77 units of permanent supportive housing, in 17 buildings in the Venice, Mar Vista, and Del Rey neighborhoods. The
properties have been developed through new construction, major rehabilitation, and light rehabilitation.

VCHC has complemented its development pipeline with
a housing first approach to managing properties and
providing the necessary residential service programs. VCHC’s collaborative atmosphere has created a culture that harnesses the experience of each of the team’s specialized fields and the perspectives our tenant populations to achieve the highest quality standards and ensure long-term viability. With a mindset to provide the highest quality of care to each and every one of its residents, VCHC has created an integrated and organic culture that involves the asset and property

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1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 15

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16 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

RESIDENTIAL SERVICES
VCHC has created a comprehensive resident services program for all tenants, particularly in its permanent supportive housing portfolio. The supportive services team works with every tenant individually to ensure they are stable in housing and to build a sense of community. Intensive case management and service partnerships are implemented in supportive
housing units. The staff utilizes a collaborative approach to support the tenants, with supportive services staff and property management staff meeting regularly to discuss any issues for each building and tenant. Other complementary community based programs offered by VCHC include Venice Youthbuild, a comprehensive youth development program
for high risk youth between the ages of 18 and 24; Study Lounge and Westside Science Club, afterschool and weekend programs for elementary school youth. All of these programs are available to VCHC tenants and other low-income and
homeless residents in our target communities.

For the supportive housing portfolio, VCHC has an in-house intensive case management team for 38 of the supportive housing units, and provides service coordination for 39 additional units in two buildings, including the oversight of external social service teams. The team actively participates in the SPA 5 Coordinated Entry System, ensures all move-in approvals for rental subsidizing sources, documents Mental Health Services Administration certification and other funding requirements, and provides ongoing, comprehensive intensive case management services to tenants to ensure housing
stability and other positive outcomes. Furthermore, VCHC includes tenants in its community advocacy efforts. VCHC has successfully engaged tenants who have become advocates
for themselves and for those who remain unhoused. Many
tenants have been instrumental in engaging the community during the development of Rose Apartments and other
housing sites.
management, resident services, and development teams
in every major decision, from strategic planning, managing resources, and implementing programs. This team approach is particularly useful in maintaining a high tenant retention rate.

Currently, VCHC maintains a 95% tenant retention rate in its supportive housing units. Additionally, VCHC employs a diverse staff with lived experiences and various racial, socioeconomic and educational backgrounds.

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 17 VCHC has significant experience operating supportive housing and administering rental subsidy contracts. It administers two Continuum of Care (formerly Shelter Plus Care) contracts across seven different properties for 54 units, a Housing for Health rental subsidy program in 20 units, and employs staff with successful experience completing all reporting and compliance requirements. VCHC’s existing sponsor-based
rental subsidy contracts are very high performing; in last year’s Continuum of Care application, VCHCs contracts were both ranked in the top 15 overall. VCHC has also established relationships with other local service providers to ensure tenants’ full range of service needs are met. VCHC also has a strong group of experienced volunteers who support our residents with household donations, tutoring, wellness classes such as yoga, and other groups and classes. Collaboration with these programs and agencies serve to connect tenants with all available resources in the community, within their homes and buildings and in off-site locations.

ASSET MANAGEMENT
VCHC’s in-house Asset Management and Property
Management teams work in an integrated approach with
resident services, which helps improve tenant stability and outcomes, develop a high performing portfolio, and
build a strong reputation with the local and surrounding communities. VCHC supervises overall property operations, analyzes property financial performance, plans and manages long-term property maintenance, enacts procedures to meet all reporting requirements, and other legal and financial obligations. The team oversees and implements the VCHC
wait list, tenant selection and approval processes, tenant relations and communications, compliance with all legal requirements, rent collection, and other functions

4.5.2 DEVELOPMENT TEAM
18 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Anup
Patel

SENIOR PROJECT MANAGER
200 LINCOLN BOULEVARD
VENICE, CA 90291
424.268.5119 EXT 132
[email protected]
Becky
Dennison

EXECUTIVE DIRECTOR
200 LINCOLN BOULEVARD
VENICE, CA 90291
310.399.4100, EXT 101
[email protected]
Becky Dennison began her tenure as Executive Director with Venice Community Housing in January of 2016. She brings over twenty years of experience in non-profit management, organizational development and community organizing
to VCH. Prior to joining VCH, Becky was the Co-Executive Director of the Los Angeles Community Action Network (LA CAN) where she worked alongside low-income and homeless leaders in Downtown and South Los Angeles to promote
social and racial justice through community organizing, civic participation, and public policy development.

She held prior positions in other homeless services and advocacy organizations, and is a guest lecturer and instructor at numerous colleges and universities on topics such as housing policy, criminalization of poverty, and equitable development. A former resident of Venice, she has been
active in the neighborhood to ensure the historic diversity and vibrancy is protected and long-term residents can remain in the changing community. Becky graduated with a Bachelor’s Degree in Mechanical Engineering and a Master’s Degree in Public Policy from the University of Minnesota.

Anup Patel joined VCHC in July 2018 as the Senior Project Manager to oversee the construction of 175 units in the development pipeline. He oversaw the entitlements process of Rose Apartments, the first 100% special needs affordable housing project be approved in the Coastal Commission and largest affordable housing development in all of Venice. The development will be 100% financed in mid-July and break construction in December.

Anup is also overseeing the development of Reese Davidson Community Center, which entails the development of 140
unit mixed income, mixed-use epicenter with artists, low income families, and previously homeless individuals and 395 public parking stall garage. While at VCHC, Anup Patel was able to bring an additional 49 units to the pipeline. Prior to joining VCHC, Anup worked at Abode Communities as the Acquisitions Manager and was responsible for securing 3 large scale developments. These include Cesar Chavez, a mixed-use project consisting of 60 residential units and a 25,000 square foot grocer in Boyle Heights, the development of Villa Verde, a 153-unit farm working development located on a nine acre lot in Coachella Valley,
VCHC
Team Members

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 19 Dawn
Hicks

ROSE FELLOW
200 LINCOLN BOULEVARD
VENICE, CA 90291
310.399.4100 EXT 137
[email protected]
Bridgett
Bell

DIRECTOR OF

POLICY & PROGRAM
200 LINCOLN BOULEVARD
VENICE, CA 90291
310.399.4100 EXT 200
[email protected]
Bridgett Bell brings a wide range of experience working in various academic and community service environments to
her position at Venice Community Housing, where she works daily to connect clients with the programs and services they need. Bridgett oversees the Study Lounge, Teen Court, and Supportive Services programs.

Through her domestic work at 1736 Family Crisis Center and Haven Hills, Inc. she provided staff supervision, program administration, and client services to families with challenging case needs. Bridget holds a Bachelor’s degree in Journalism and Mass Communications from Jackson State University and a Master’s Degree in Journalism and Mass Communications from Kansas State University.

Dawn Hicks is an Enterprise Rose Architectural Fellow,
currently working with Venice Community Housing in Venice, California as their Community Design Coordinator/Asst. Project Manager. With Venice Community Housing, Dawn serves as
a key member of the housing development team as VCH
initiates two new construction projects focused on increasing affordable and permanent supportive housing options in
Venice, as well as reinvest in several older properties. She also serves as an integral part of their property management, resident services, YouthBuild and advocacy teams and engage a wide variety of other community members and stakeholders in an approach to community development and project design.

Prior to the Fellowship, Dawn was a design professional in Richmond, VA, where she worked for the public schools
system in construction and maintenance, and also served on Richmond city’s Urban Design Committee. Dawn holds a Masters in Architecture from the University of North CarolinaCharlotte and a Bachelor of Science degree in Architectural Engineering from The North Carolina Agricultural and Technical State University.

Dawn currently serves at the Treasurer of the SoCal NOMA (National Organization for Minority Architects) Chapter and is a member of the AIA (American Institute of Architects). Dawn has a passion for enhancing urban environments through
influences of social, economic, and cultural forces that help shape built environments and develop inclusive communities in affordable ways. Her goal is to use her diverse love for music and design to enhance the future of architecture.

4.5.2 DEVELOPMENT TEAM
20 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Certification of Amendment of Articles of Incorporation

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1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 21

4.5.2 DEVELOPMENT TEAM
22 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

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1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 23

4.5.2 DEVELOPMENT TEAM
24 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE CA Proof of Good Standing

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 25

4.5.2 DEVELOPMENT TEAM
26 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE For more than 27 years,
National Community Renaissance of California
(National CORE) has been a leader in
constructing sustainable developments that leverage community resources to combine quality housing with life-enhancing social services.

For over 25 years, National CORE has been a leader in
constructing sustainable developments that leverage
community resources to combine quality housing with
life-enhancing social services. Headquartered in Rancho Cucamonga with a Regional Office in West Los Angeles,
National CORE was established in 1992 as a 501(c) (3) not-forprofit public benefit corporation. Starting with the acquisition and rehabilitation of 248 affordable homes, the company’s portfolio has grown over the past two decades to include over 9,000 units in four states; 6,700 of those units are located in Southern California. National CORE currently serves roughly 27,000 residents and is the developer, owner, operator, and services provider for all properties, thus ensuring long-term affordability and high quality maintenance of affordable communities. With each development, National CORE is
committed to our CORE values:

COMMUNITY
We build and operate great communities where our residents and neighbors can thrive.

OPTIMISM
We believe in the ability of people to strive for better lives, and we help provide them with the means to achieve their dreams.

RESPECT
We serve our residents, employees and partners with utmost respect.

EXCELLENCE
We strive for the highest standards in design, construction, property management, and customer and social service
recognizing that we have a fiduciary responsibility to our residents, employees and partners.

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 27 MARV’S PLACE
(PASADENA, CA)

4.5.2 DEVELOPMENT TEAM
28 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE National CORE is a vertically integrated company with in-house construction, property management, asset management,
compliance, accounting and social programs/services
departments. Our company has experienced staff capacity in development, construction management, property
management, social services, and is a licensed general
contractor. This “in-house” structure allows for strict quality control and cost-savings in all facets of our business.

National CORE’s mission is to not only develop and maintain high-quality affordable housing, but to go well beyond the sticks and mortar and create vibrant communities that
are safe and nurturing environments for our residents. To achieve this Hope through Housing Foundation (HTHF) is
an incorporated nonprofit organization that functions as an affiliate to National CORE, providing on-site social services available to residents living in all our developments. HTHF has consistently demonstrated its capacity to launch and develop high quality programs focused on developmental, educational, social, health, and workforce opportunities for children, youth, and families served living in and around our communities.

The Community Renaissance Concept (see diagram on page
29) builds foundations in challenged neighborhoods that address housing, social service and educational needs and a range of community development gaps essential to long-term personal and community growth. Unlike traditional community redevelopment concepts, which focus mainly on physical
infrastructure and some economic development, National
CORE mainly focuses on the long-term transformational
impact on people and neighborhoods. National CORE has
identified six interconnected components of Community
Renaissance: Education, Housing, Public Safety, Health & Wellbeing, Economic Growth and Environment & Infrastructure.

With an effective coordination effort that leverages resources and expert partnerships, the combined impact is greater than the sum of the distinct initiatives.

National CORE has been honored with 46 national awards, 17 regional and 65 local including being honored by the National Association of Homebuilders as: Nation’s Top Family Housing Developer in 2004, The Best Affordable Housing Community in 2010 for Villaggio on Route 66, and Outstanding Resident Program in 2011 through Hope Through Housing. Our in-house services are described in more detail below.

PLANNING
A house is more than sticks and bricks, and National CORE understands the broader context and importance of housing in a community. Planning from a housing perspective includes integrating the diverse pieces that make up a neighborhood and community—including parks and recreation, social
services, care for the environment, design and aesthetics, health and wellness, and the economy. National CORE’s inhouse community planning services offers our partner clients experience and knowledge to craft creative and workable housing solutions for the communities we serve. We manage, prepare and implement a variety of urban planning and design projects including general, community, master, revitalization, downtown, and specific plans; corridor studies, housing elements, and sustainability strategies. Because we want to design plans that are not only practical and implementable but also embraced by the public and decision makers, we employ a variety of engagement tools. We seek input and involvement online, by phone, in person, and through focus groups from diverse voices in the community. And by opening this dialogue and building support, we can help move projects—from the simple to the most challenging— through review and final approval.

ALTA VISTA (LOS ANGELES COUNTY.)

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 29

DEVELOPMENT
Our development department, which consists of acquisitions and project development, is responsible for feasibility analysis, due diligence, project design, entitlement processing,
community outreach, securing financing and construction management. Financing for all our projects is obtained by our project development staff, who prepare all funding
applications in-house and perform financial feasibly analysis in regards to determining the appropriate funding sources to use for each project. Typical sources of financing used include: 501 (c)(3) bonds, other tax-exempt bonds, 4% federal tax credits, 9% federal tax credits, state tax credits, AHP funds, State HCD HOME funds, State HCD MHP funds, CalHFA HELP funds,
County/City HOME funds, CDBG funds, Low and Moderate
Set- Aside funds, and MHSA funds.

National CORE is familiar with the process and regulations applicable in securing the above funding sources and has been very successful in competing and securing awards from these funding sources.

CONSTRUCTION
As a licensed general contractor, our construction team builds selected projects and also serves as the owner’s representative for projects that are contracted to third-party general contractors. In that respect, the construction team serves as the Construction Manager in all instances. Having this expertise in-house has allowed us to develop strong systems and processes and accurate construction cost forecasting that draws from our historical database of properties built, rehabilitated and managed.

SUSTAINABLE DEVELOPMENT
We are an expert in green sustainable construction. National CORE has many LEED, Green Point rated and Universal Design projects, exceeding 2,000 apartment homes. Our Vista
Dunes family development in La Quinta is the first multifamily development to achieve the coveted Platinum LEED Certification. This project was recognized by the Home Depot Foundation at the 2009 National Green Builders Conference as “Outstanding Green Project of the Year.” All of these cuttingedge technologies are becoming part of standard building approach that we believe will allow us to excel in this new century. In addition, we have more than a dozen developments in our portfolio that are LEED certified Gold or Silver.

PROPERTY MANAGEMENT
Our in-house property management department employs
strict management practices that include comprehensive
tenant screening, use of a crime free addendum to the
tenant leases allowing for zero tolerance of illegal activities.

We strongly believe that quality management is critical to maintaining quality developments in the long term and
providing a positive environment for our residents.

AFFORDABILITY RESTRICTIONS
National CORE has existing affordable housing agreements on all of our developments, in addition to various other regulatory agreements with TCAC, AHP, CalHFA HELP, and conventional permanent lenders. All these agreements have annual
compliance provisions that have to be tracked and complied with in a timely manner. To ensure timely compliance with these various agreements, we have an in-house compliance department whose primary responsibilities include initial placed-in-service rent calculations and annual rent calculations for all properties, welfare exemption filing, 100% file audits at property placement in service, sample file audits annually, and legal document review to set up a tickler system for all monitoring requirements for all projects.

SPECIAL NEEDS
National CORE has developed, owns, operates and manages ten apartment communities integrated with supportive
housing homes for residents with special needs. Our special needs residents include seniors, children, youth aging out of foster care, adults, and families with severe mental illness and resiliency for children with serious emotional disorders and their families. For example, National CORE has apartment homes funded with Mental Health Service Act resources in collaboration with the Corporation for Supportive Housing and 3rd party full-service providers to build a system where access is easier, services are more effective, out-of-home and institutional care are reduced and stigma toward those with mental illness or serious emotional disturbance no longer exists.

4.5.2 DEVELOPMENT TEAM
30 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Michael
Ruane

EXECUTIVE

VICE PRESIDENT
9421 HAVEN AVENUE

RANCHO CUCAMONGA,
CA. 91730
909.204.3451
MRUANE@
NATIONALCORE.ORG
Steve
PonTell

PRESIDENT AND CEO
9421 HAVEN AVENUE

RANCHO CUCAMONGA,
CA. 91730
909.483.2444
SPONTELL@
NATIONALCORE.ORG
Mr. PonTell is the Chief Executive Officer and President of National CORE, a national nonprofit housing firm with more than 10,000 apartments under its ownership and
management throughout California, Florida and Texas. Mr.

PonTell, with a track record of success in organizational development, is improving National CORE’s in-house model that guarantees superior quality control and results. He is building on the organization’s demonstrated capacity to build on its successes through prudent financial management and a holistic approach to building and preserving affordable housing.

Prior to leading National CORE, Mr. PonTell founded the La Jolla Institute in 1996, a California based, nonprofit think tank.

While at La Jolla Institute, Mr. PonTell was vigorously involved in “Pioneering the New Community”. The La Jolla Institute worked on major research projects ranging from studying critical community indicators in San Bernardino County to bringing together four counties: Los Angeles, San Bernardino, Riverside, and Orange County with the four Corners Coalition.

In addition, he has served as a strategic consultant to both corporations and communities helping them to adapt to
changes impacting the economy and the workplace.

Michael M. Ruane, National CORE’s Executive Vice President, leads the development of program and business strategies for the organization and is responsible for overseeing all operating departments. Previously, Mr. Ruane served in a variety of leadership positions in Orange County, including Chief of Strategy and Public Affairs of CalOptima, Executive Director of the Children and Families Commission, Assistant County Chief Executive Officer and Director of the Environmental Management Agency. Mr. Ruane is a
graduate of the University of California, Irvine, and earned a master’s degree from the UCLA Graduate School of Architecture and Urban Planning. Mr. Ruane is the Immediate Past Chair of the Orange County/Inland Empire District Council of the Urban Land Institute and is the Jury Chair for the 2016 HUD Innovation in Affordable Housing national design and planning competition.

National CORE
Team Members

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 31 David
Grunwald

SVP OF THE GREATER LOS

ANGELES REGION
12121 WILSHIRE BOULEVARD,
LOS ANGELES, CA 90025
301.622.3373
DGRUNWALD@
NATIONALCORE.ORG
Christopher
Killian

VICE PRESIDENT

OF CONSTRUCTION

19421 HAVEN AVENUE

RANCHO CUCAMONGA,
CA. 91730
909.204.3448
CKILLIAN@
NATIONALCORE.ORG
Christopher became a part of the National CORE team in
2004. Mr. Killian has over ten years of experience in the construction industry for which he was responsible for building $80 million worth of construction over the past seven years, and involved in the management of an additional
$103 million in school projects. Prior to joining National CORE, Mr. Killian spent one and a half years with the Fontana Unified School District as a Project Manager where he was responsible for coordinating the infrastructure
and installation of modular facilities. Mr. Killian is responsible for more than 550 units currently under construction throughout Southern California. His academic background includes four years of Business Administration and graduated in June of 2012 with a Bachelor of Science from the University of Redlands.

David Grunwald joins National CORE with more than two
decades of leadership and advocacy experience in the affordable housing industry. He began his commitment to public service in 1988 as a pro bono lawyer representing homeless clients and disadvantaged children and families.

In the 1990’s, David served as Associate Director of Programs at the Weingart Homeless Service Center where he directed social service programs for homeless individuals on Skid Row. In 2000, David was appointed President and CEO of
LA Family Housing where he oversaw the development
and provision of emergency, transitional and permanent
housing, and social services at 21 facilities to thousands of homeless individuals throughout Los Angeles. In 2006, former HUD Secretary Henry Cisneros recruited David to
launch American Sunrise Communities. This national initiative catalyzed developers, investment banks and local governments to create large scale affordable housing in urban centers throughout the United States.

4.5.2 DEVELOPMENT TEAM
32 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Tim
Kohut

AIA, DIRECTOR OF

SUSTAINABLE DESIGN
19421 HAVEN AVENUE

RANCHO CUCAMONGA,
CA. 91730
301.869.9705
TKOHUT@
NATIONALCORE.ORG
Ms. Edwards holds an MBA degree from the University of
California, Irvine and a B.A. degree from the University of California, San Diego. She joined National CORE in 2003 as a financial analyst and transitioned to project management in 2005. Prior to joining National CORE she worked with the Orlando Housing Authority as chief accountant
for several years. Ms. Edwards’ professional experience also includes banking and working as controller for a non-profit organization. Ms. Edwards is experienced with numerous
affordable housing financing sources such as low-income housing tax credits, HOME, CDBG, HOPWA, AHP, MHP,
AHSC, NPLH, housing set-aside funds, tax-exempt bonds
and conventional financing.

Joining National CORE in 2017, Tim works closely with the development and construction teams to understand and
implement energy efficiency strategies and standards that lead towards the State’s Zero Net Energy targets. He is a Certified Energy Analyst (CEA), Home Energy Rating System (HERS) Rater, and Building Performance Institute (BPI) Certified Energy Analyst. He combines his architectural, energy modeling, diagnostic skills, with his knowledge of construction to identify pathways for increasing energy efficiency without driving up costs. He has spent more than 20 years designing, building, and consulting on affordable housing projects throughout Southern California, and he has been involved in the design and construction of more than 1500 units of high-performance multi-family housing. Additionally, Tim is a Certified Access Specialist (CASp), and helped craft the Los Angeles Community Development Commission’s Universal Design Standards (used in all affordable housing projects), and the California Tax Credit Allocation Committee’s “Enhanced Accessibility Standards”. He has
presented locally and nationally on issues of energy efficiency and accessibility. Tim teaches classes focusing on sustainability and sustainable architecture at Woodbury, USC, and Cal Poly Pomona
National CORE
Team Members Continued
Lesley
Edwards

VICE PRESIDENT OF

PROJECT DEVELOPMENT
9421 HAVEN AVENUE

RANCHO CUCAMONGA,
CA. 91730
909.483.2444
LEDWARDS@
NATIONALCORE.ORG

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 33 Gregory
Bradbard

PRESIDENT, HOPE

THROUGH

HOUSING FOUNDATION
19421 HAVEN AVENUE

RANCHO CUCAMONGA,
CA. 91730
301.869.9706
GBRADBARD@
NATIONALCORE.ORG
Daniel
Lorraine

SENIOR VICE PRESIDENT

OF PROPERTY MANAGEMENT

19421 HAVEN AVENUE

RANCHO CUCAMONGA,
CA. 91730
301.869.9705
DLORAINE@
NATIONALCORE.ORG
Daniel W. Lorraine joined National Community Renaissance in 2014 as Senior Vice President of Property Management, where he oversees a portfolio of more than 9,000 units in California, Arkansas and Texas, and leads the organization’s environmental sustainability efforts. Previously, Dan was Senior Vice President of Property Management at The Community Builders in Boston, overseeing a division responsible for managing nearly 9,000 units across fourteen states and the District of Columbia. While with The Community
Builders, he led a cutting edge division that thrived in difficult markets and managed complex properties. He joined the company in 2008 after six years as regional manager for Trans World Entertainment Corp. in Albany, N.Y. He also spent 18 years in management positions for Woonsocket,
R.I.-based CVS Pharmacy.

Gregory (Greg) Bradbard, President of the Hope through
Housing Foundation and National CORE’s Senior Vice President of Strategic Partnerships has more than 20 years of experience as a community leader and fundraiser throughout Southern California. Prior to joining Hope through Housing and National CORE, Greg served as President and Chief Executive Officer of the Inland Empire United Way (IEUW).

Under his leadership, IEUW increased its community impact by launching several new programs to improve youth and family self-sufficiency. Greg holds a B.A. in Psychology and Social Behavior from UC Irvine, and past roles have included serving as the Executive Director for Court Appointed Special Advocates (CASA) of Orange County, Executive Director for the Irvine Public Schools Foundation, and Director of Development for Families Forward.

4.5.2 DEVELOPMENT TEAM
34 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Certification of Amendment of Articles of Incorporation

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 35

4.5.2 DEVELOPMENT TEAM
36 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 37

4.5.2 DEVELOPMENT TEAM
38 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 39 Franchise Tax Letter

STATE OF CALIFORNIA

FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0540
Entity Status Letter

Date:

ESL ID:

According to our records, the following entity information is true and accurate as of the date of this letter.

Entity ID:

Entity Name:

1. The entity is in good standing with the Franchise Tax Board.

2. The entity is not in good standing with the Franchise Tax Board.

3. The entity is currently exempt from tax under Revenue and Taxation Code (R&TC) Section 23701

4. We do not have current information about the entity.

The above information does not necessarily reflect:
• The entity’s status with any other agency of the State of California, or other government agency. • If the entity’s powers, rights, and privileges were suspended or forfeited at any time in the past, or the entity did business in California at a time when it was not qualified or not registered to do business in California:
o The status or voidability of any contracts made in California by the entity at a time when the entity was suspended or forfeited (R&TC Sections 23304.1, 23304.5, 23305a, 23305.1). o For entities revived under R&TC Section 23305b, any time limitations on the revivor or limitation of the functions that can be performed by the entity.

Internet and Telephone Assistance
Website: ftb.ca.gov
Telephone: 800.852.5711 from within the United States
916.845.6500 from outside the United States
TTY/TDD: 800.822.6268 for persons with hearing or speech impairments 4/22/2019
6882551992
1817911

NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA
✔
✔ d.

STATE OF CALIFORNIA

FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0540
Entity Status Letter

Date:

ESL ID:

According to our records, the following entity information is true and accurate as of the date of this letter.

Entity ID:

Entity Name:

1. The entity is in good standing with the Franchise Tax Board.

2. The entity is not in good standing with the Franchise Tax Board.

3. The entity is currently exempt from tax under Revenue and Taxation Code (R&TC) Section 23701

4. We do not have current information about the entity.

NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA
✔
✔ d.

STATE OF CALIFORNIA

FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0540
Entity Status Letter

Date:

ESL ID:

According to our records, the following entity information is true and accurate as of the date of this letter.

Entity ID:

Entity Name:

1. The entity is in good standing with the Franchise Tax Board.

2. The entity is not in good standing with the Franchise Tax Board.

3. The entity is currently exempt from tax under Revenue and Taxation Code (R&TC) Section 23701

4. We do not have current information about the entity.

NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA
✔
✔ d.

4.5.2 DEVELOPMENT TEAM
40 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE KoningEizenberg are known for
their imaginative, site specific and
people-oriented approach to the design
of places for everyday living.

Established in 1981 by Hank Koning AIA, FAIA, FRAIA, LEED AP Principal in charge of design and Julie Eizenberg, AIA, with Brian Lane, AIA, LEED AP assuming a managing principal role in 2003, and Nathan Bishop, AIA, LEED AP in 2011 as Principal in Charge of Design, the firm combines a discipline of tight budgets and a hands-on pragmatism with a commitment
to sustainability and the value of informal social spaces. The firm’s fresh, contemporary aesthetic brings design excellence to a wide range of building types, from housing to community centers, schools to hotels, recreational facilities to retail, and work places to museums. The breadth of this experience
translates into an ability to generate creative responses to design challenges within budgets that conventionally sustain only generic solutions.

KoningEizenberg has completed many successful public
community-serving projects. Municipal projects include the award-winning Pico Branch Library and Virginia Avenue Park Expansion and the Ken Edwards Center in Santa Monica. The firm has also designed multiple affordable houisng projects including the Arroyo, 500 Broadway, and Belmar Apartments.

Our firm is known for consistently delivering high quality, responsive public bid projects which exceed expectations. This record is achieved by aligning stakeholder visions with budget early in the process, and by providing quality construction documents and effective project management.

Koning Eizenberg Architecture has consistently demonstrated an ability to infuse mainstream construction culture with strategic design invention that parlays sustainability and amenity into ground-breaking community projects. The
success of the work has raised public expectations and also reinvigorated architects’ interest in everyday projects and socially responsible programs.

Leadership in sustainability is entwined with leadership in community programs. Work dating back to the eighties
highlights passive cooling, healthy building strategies and sustainable water management well before LEED was invented, and includes the first LEED accredited Park in the country (LEED silver) in 2006 and the largest LEED accredited museum (also LEED silver) completed in 2004, as well as platinum, gold and silver accredited community, educational and housing projects.

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 41

KEA TO CAPTION

4.5.2 DEVELOPMENT TEAM
42 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 43 The firm is often selected to work on projects that require creative thinking to tackle complex issues of programming, site use, and contextual fit. Its ground-breaking work in housing, educational, and community-based projects has achieved
international recognition. Koning Eizenberg has earned over 160 design and sustainability awards and been widely published.

The practice has been honored as AIA California’s Firm of the Year and founding partners Julie Eizenberg and Hank Koning were recently awarded the 2019 Australia Institute of Architects Gold Medal and the 2012 AIA Los Angeles Gold Medal in recognition of a lasting influence on the theory and practice of architecture.

Remarkably diverse in appeal, Koning Eizenberg projects have been widely published in professional journals, books and general interest periodicals, both in the United States and abroad, including three monographs, Koning Eizenberg Buildings (Rizzoli, 1996), Architecture isn’t just for special occasions (Monacelli 2006), and Urban Hallucinations (ORO Editions 2017), which provide a more in-depth look into the philosophy of the firm.

PROJECTS IN SANTA MONICA
We have secured planning entitlements and permits for two schools in Santa Monica including PS1 Pluralistic School and Herb Alpert Educational Village, myriad mixed use projects and many projects where the City has been our client like Pico Branch Library. Our firm brings knowledge of the regulations and process as well as familiarity with staff.

Pico Branch Library
Virginia Avenue Park
John Adams Middle
School
Belmar Apartments
PS1 Pluralistic School
The Arroyo Apartments
“See-Through House”
11th Street House
500 Broadway
Ashland Apartments
Abbot Kinney Lofts
25th Street Studio
(Koning Eizenberg office)

4.5.2 DEVELOPMENT TEAM
44 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Nathan
Bishop

AIA, LEED AP

PRINCIPAL IN CHARGE OF
DESIGN
1454 25TH ST
SANTA MONICA, CA 90404
310.828.6131 X 114
[email protected]
Hank
Koning

FAIA, LFRAIA (AUST), LEED

AP FOUNDING PRINCIPAL
1454 25TH ST
SANTA MONICA, CA 90404
310.828.6131 X 111
[email protected]
Hank is the founding Principal of Koning Eizenberg Architecture and leads the firm’s approach to regulatory and technical resolution. His strength with planning and code translate to unexpected opportunities at all scales of project development that propel signature solutions. A member of the U.S. Green Building Council, Hank continues to lead the effort in integrated sustainable design. His community involvement and planning expertise include 7 years of service on the Santa Monica Planning Commission and
ongoing voluntary advisory work for the City. Under his leadership, Koning Eizenberg has earned over 160 design and sustainability awards and been widely published. In 2009, the practice was honored as AIA California’s Firm of the Year and in 2012, he and founding partner Julie Eizenberg were awarded the 2019 Australia Institute of Architects Gold Medal the 2012 AIA Los Angeles Gold Medal in recognition of a lasting influence on the theory and practice of architecture.

Master in Architecture, with Distinction:

Harvard University, Graduate School of Design, 2002
Bachelor of Science in Architecture: `
Northeastern University, Boston, MA, 1997
Nathan is a Principal in Charge of Design of Koning Eizenberg Architecture, focusing on conceptual design and entitlement phases requiring synthesis of client, city, and community stakeholder objectives to optimize design and development potential. Combining experience with a broad range of high-profile projects, he draws on exceptional visualization and communication skills to quickly extract the unrecognized potential of complex urban contexts. He also leads the firm’s effort in digital fabrication and new technologies. Nathan teaches and lectures in design, architectural history and theory, and cultural studies in universities across America.

Koning Eizenberg
Team Members

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 45 Paul
Howard

PROJECT

ARCHITECT
1454 25TH ST
SANTA MONICA, CA 90404
310.828.6131 X 116
[email protected]
Lily McBrideStephens

PROJECT

MANAGER
1454 25TH ST
SANTA MONICA, CA 90404
310.828.6131 X 197
[email protected]
Master of Architecture, with High Distinction:

Royal Melbourne Institute of Technology, 2010
Bachelor of Architectural Design, with Honors
Royal Melbourne Institute of Technology, 2008
Lily is a designer and manager at Koning Eizenberg Architecture. She has over 10 years’ experience working in both Australia and the US. Lily is interested in tackling complex design problems that lead to outcomes that elevate the
relationship between the built environment and its users, putting the client and the community at the forefront of design. Lily draws on her experience in working on various project scales through concept to completion, ensuring that the building is fully integrated and delivered with detail and care.

Master of Architecture II:

Yale School of Architecture, New Haven, CT, 2010
Bachelor of Architecture: `
Cum Laude, Auburn University, Auburn, AL, 2005
Paul has worked as a Project Manager at KoningEizenberg Architecture on high-profile, large-scale multi-family projects in Los Angeles including Flor Lofts, a 100% affordable housing building for Skid Row Housing Trust which will provide permanent supportive homes for 98 formerly homeless men and women. Combining experience with a
broad range of commercial, hospital and academic work,
he draws on exceptional communication skills to manage
a project from schematic design through close-out. Paul is a LEED Accredited Professional.

4.5.2 DEVELOPMENT TEAM
46 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Certification of Amendment of Articles of Incorporation

4.5.2 DEVELOPMENT TEAM

4.5.2 DEVELOPMENT TEAM
48 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 49

4.5.2 DEVELOPMENT TEAM
50 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE City Fabrick is a nonprofit design studio reshaping communities in need through collaborative public-interest design, planning, policy development, and advocacy. The nonprofit design
studio was first established in 2011 out of a recognition that there were important urban planning and public
health opportunities and challenges facing communities
across Southern California that could be addressed using strategies that span building, landscape, urban, graphic, and environmental design comprehensively, applied alongside progressive planning strategies and policy development.

Now with over six years of urban design practice, City Fabrick has grown both in the size of its staff as well as its diverse portfolio of projects and communities they work in. In 2017, City Fabrick was awarded the American Planning Association’s “Emerging Planning and Design Firm Award” for both the
local and state chapters. The collaborative nature of the multidisciplinary design team encourages creativity, learning, and leadership, helping foster innovative and progressive design. Visual communication plays an important role in the engagement, planning, and design process, recognizing the importance of translating complex ideas into relateable information.

City Fabrick applies a diverse array of skillsets to every initiative, transcending the prototypical services offered by other urban design studios, providing essential partnership to respond to the unique and varied challenges and opportunities present in each community. City Fabrick’s projects include affordable housing, active transportation, open space access and habitat, arts and culture, public health, economic development, and environmental stewardship; often incorporating multiple facets of these community building strategies in each project. The studio has received recognition in designing and planning for mobility, public open space, adaptive reuse, and affordable City Fabrick promotes
progressive urban design that
enhances the livability of communities
and the health of residents.

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 51

ONE SAN PEDRO WORKSHOP (CITY FABRICK)

4.5.2 DEVELOPMENT TEAM
52 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

4.5.2 DEVELOPMENT TEAM

TINY TIME FAMILY HOUSING
(SANTA ANA, CA)

GUMBINER PARK,

LONG BEACH

GUMBINER PAPARK PROTOTYPE

COMMUNITY EVENT

PARK PLANNING

WORKSHOP
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 53 housing, including multiple awards by the American Planning Association for transportation, urban design, and public outreach.

City Fabrick is currently leading the planning and engagement effort of three affordable housing communities encompassing over 3,000 new homes in Los Angeles County, with 200 homes in design and another 200 in construction in the region. Many of these projects and plans are being developed through collaborative community design and planning processes
that maximize the positive impact of investing these public and private resources. Some of City Fabrick’s most relevant urban design projects in include the CX3 Pedestrian Plan, One San Pedro Transformation Plan, Villages at Cabrillo Master Plan, Spark at Midtown, and West Los Angeles Veterans Affair Community Plan.

City Fabrick’s unique structure as a nonprofit studio, and diverse, integrated design and planning expertise affords the organization the ability meet the unique needs and
opportunities of complex urban development, doing so
in partnership with clients, local government, community stakeholders, and consultants. The City Fabrick’s mission driven approach ensures that helping communities in need is central to the process and end result of all their work.

4.5.2 DEVELOPMENT TEAM

ONE SAN PEDRO ILLUSTRATIVE
(CITY FABRICK)
54 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE City Fabrick
Team Members
Alex
Jung
SENIOR

URBAN DESIGNER
425 EAST 4TH STREET, UNIT E
LONG BEACH, CA 90802
562.901.2128
[email protected]
Brian
Ulaszewski

LEED AP-EXECUTIVE

DIRECTOR AND PRINCIPAL
425 EAST 4TH STREET, UNIT E
LONG BEACH, CA 90802 C
562.901.2128
[email protected]
Brian Ulaszewski has over two decades of experience working in the design and planning field on work spanning tactical interventions like pop-up plazas and parklets to building and landscape projects to regional-scale planning and state policy, all dedicated to improving communities Brian has extensive experience working with local governments, developers, affordable housing providers, and nonprofit organizations on a wide variety projects ranging graphic, environmental, building, landscape and urban design. He has also returned to teach within the Landscape Architecture and Urbanism Department at the University
of South California, School of Architecture. Brian is a recognized leader in city building, having been recognized by the American Planning Association – Los Angeles with the John Chase Visionary Award and invited to speak at
several academic and industry publications.

Alexander Jung brings to his work at City Fabrick a unique perspective working on urban design and planning projects in the public, private, academic, and nonprofit sectors.

With over five years of experience, Alexander has proven to be an effective project manager, designer, and community facilitator in his involvement with several award-winning projects throughout Southern California. The range of projects Alexander has worked on include visioning and designing multimodal streetscapes, parks and open spaces, First/Last Mile connectivity plans, pedestrian and bicycle networks, and Transit Oriented Districts. Recently arriving to Long Beach, he has already worked on several plans and projects throughout the city. He is also the Development Coordinator for Tuesday Night Project, a Los Angeles-based nonprofit that provides a space for artists and community activists to share their work.

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 55 Angelica
Meza

DESIGNER
425 EAST 4TH STREET, UNIT E
LONG BEACH, CA 90802 C
562.901.2128
[email protected]
Mina
Emamifar
Roades

LANDSCAPE ARCHITECT
425 EAST 4TH STREET, UNIT E
LONG BEACH, CA 90802 C
562.901.2128
[email protected]
Mina Emamifar Roades brings her passion and creativity
in landscape architecture to her work creating spaces that enrich the lives of people. Mina brings over fourteen years of experience as a Landscape Architect to City Fabrick, as well as her knowledge as a Long Beach resident. She obtained her Bachelor’s degree in Architecture from USC where she took courses in Landscape Architecture and found interest in receiving a Master’s degree in Landscape Architecture at North Carolina State University College of Design. Her experience living and working on the east coast has given her expertise in the diverse plant material and different ecosystems of the area. Moving back to Southern California, Mina grew an appreciation for the unique opportunity to design with drought tolerant planting and natives, believing that our native species and adapted natives can create rich and lush environments that embrace our culture.

Angelica Meza allows her previous experiences and passion to be her driving force in her work at City Fabrick. She attended Orange Coast College and found her passion in
visual communication. Angelica received her Bachelor of Fine Arts in Graphic Design from California State University Long Beach in 2015. Through the graphic design program, she was able to explore new cities and learn from various cultures from around the world, which have proven useful in her position at City Fabrick. Due to her experiences, they have allowed her to understand and collaborate with many different clients and projects that pass through City Fabrick with great care, attention, and empathy. The range of projects that Angelica has worked on include civic engagement like People’s Planning School and Walk Long Beach, visual communication for various different clients, and tactical urbanism such as pop-up plazas.

4.5.2 DEVELOPMENT TEAM
56 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE HR&A assists clients through the discretionary planning entitlement process and building permit process, provides duediligence zoning analysis, and offers general representation of business and property owners with development issues before local government agencies.

HR&A has nearly 20 years of experience in helping commercial and residential developers negotiate the complex entitlement process - ranging from assisting experienced developers with zone changes and general plan amendments to representing property owners with code enforcement cases.

Real estate developers and other property owners often need professional assistance in negotiating the local governmental permit and entitlement process for proposed development projects. For the professional consultant, knowing the
technical rules of the permitting process is only one part of the equation. HR&A brings detailed local knowledge of the issues, personalities and history of development within Santa Monica, Los Angeles and, most specifically, in the California Coastal Zone. Such local knowledge can be critical in designing a successful approval strategy for a specific development project.

HR&A is an expert in preparing and filing applications
for Variances, Tract Maps, Parcel Maps, Site Plan Reviews, Conditional Use Permits, Coastal Development Permits,
Density Bonuses, Plan Approvals and Specific Plan Exceptions and similar requests. We provide guidance through the
entire entitlement process, including preparing and filing the application package and representing our clients at community meetings and public hearings.

HR&A follows a policy of direct and honest representation, having built a reputation for integrity and straight talk. We strive to have every project result in a “win-win” for the developer and the local community.

Howard Robinson & Associates (HR&A) is a land
use consulting firm representing real estate
developers, property owners and business owners
in Santa Monica and Los Angeles.

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 57

4.5.2 DEVELOPMENT TEAM
58 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE HR&A
Team Members
Howard
Robinson

FOUNDER, EMERITUS

PRINCIPAL
660 S FIGUEROA ST SUITE #1780,
LOS ANGELES, CA 90017
310. 838-0180
HOWARD@
HOWARDROBINSON.NET
Susan
Steinberg

PRINCIPAL
660 S FIGUEROA ST SUITE #1780,
LOS ANGELES, CA 90017
(310) 838-0180
SUE
@HOWARDROBINSON.NET
Susan Steinberg, the new owner of HR&A, brings more
than a decade of land use experience in securing for clients a wide range of discretionary entitlements, including zone changes, general plan amendments, conditional use
permits, zone variances, vesting tentative tract maps, and density bonus requests with on- and off-menu incentives.

Since taking over in 2018, the company has grown in staff and breadth of projects. Being a woman-owned business,
HR&A is joining the groundswell of female-led Los Angeles firms and capitalizing on the growth of real estate development in the region.

Prior to joining the world of land use planning, Ms. Steinberg was a reporter for the Los Angeles Times covering city government and law enforcement in Santa Monica,
Beverly Hills and West Los Angeles. Ms. Steinberg holds a B.S. degree in Journalism from California Polytechnic State University, San Luis Obispo. She recently served five years on the Sherman Oaks Neighborhood Council and
is currently using her professional experience as the vicechair of the Sherman Oaks Neighborhood Council Land Use Committee.

Firm founder Howard Robinson has more than 30 years’ experience in real estate development, local government, and the entitlement process. He has worked in the non-profit, for-profit and public sectors. Mr. Robinson started HR&A in 2000, having previous experience as serving for seven years as the Real Estate and Economic Development Manager
for the City of Santa Monica, and eight years as the President of Gemstone Development, Inc., an infill condominium development firm based in Los Angeles. Mr. Robinson holds a B.A. degree from U.C. Santa Barbara and an MBA
degree from U.C. Berkeley. Mr. Robinson is active in community and philanthropic affairs.

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 59 Jared
Johnson
SENIOR

CONSULTANT
660 S FIGUEROA ST SUITE #1780,
LOS ANGELES, CA 90017
310.838.0180
JARED@
HOWARDROBINSON.NET
Senior Consultant Jared Johnson has been working in
land use consulting since 2015. Mr. Johnson has worked
as a project manager in a variety of projects, ranging from alcohol exemptions to zone variances throughout Los Angeles and Santa Monica. Mr. Johnson is a graduate of the Master’s in Planning program at the USC Sol Price School of Public Policy (2013), and has a Bachelor’s degree in Geography and Japanese Language from U.C. Santa Barbara.

4.5.2 DEVELOPMENT TEAM
60 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Eumenides’ services include messaging, collateral and
multimedia development, social media, development
and facilitation of charettes and community meetings,
engagement with neighborhood associations and the business community and the mobilization of supporters.

Notable affordable and transitional residential projects for which Eumenides provided outreach services include The
Arroyo, Upward Bound House transitional housing and the adjacent Senior Villa apartments. She also provided outreach for the unique YWCA transitional housing facility and program for young women who had timed out of the foster care system.

Among market-rate residential projects in her portfolio are 500 Broadway (“The Park”) now under construction in Downtown Santa Monica, 234 Pico Boulevard (formerly Bowl-Mor), and the Edward Thomas Collection rental residential projects at Pico Boulevard and Ocean Avenue, which includes affordable housing units (approved in 2019). Noteworthy healthcare projects include Providence Saint John’s Acute Care facility (the post-earthquake rebuild) and the Providence Saint John’s Phase II Plan, now in the entitlements process. Eumenides’ community outreach efforts in the local hospitality industry includes the Le Merigot, as well as major mixed-used hotel projects currently in the environmental review process – the Ocean Avenue Project (Worthe), as well as the Miramar Hotel and Bungalows on Ocean Avenue and Wilshire Boulevard,
which will include a significant 100% affordable housing building on Second Street.

Eumenides’ Principal, Melissa Sweeney has enjoyed a long history of service in the non-profit community, including current membership on the Board of Directors of Meals on Wheels West, membership on the Steering Committees of
Climate Action Santa Monica and Santa Monica Forward.

Previous Board of Directors memberships include YWCA of Santa Monica and Upward Bound House of Santa Monica.

Since 1987, Eumenides has managed
city-wide community outreach efforts for more
than 30 non-profit and for-profit development
projects, chiefly in Santa Monica.

For Melissa Sweeney’s resume, see Appendix

4.5.2 DEVELOPMENT TEAM
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 61

4.5.2 DEVELOPMENT TEAM

DEVELOPMENT

AND SERVICES

CONCEPT

4.5.3 64 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

DEVELOPMENT & SERVICES CONCEPT// SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 65 HOLM will be taking advantage of the site’s unique context and surrounding assets, while supporting the distinct needs of the neighborhood. The project is designed and programmed to meet the goals of recently adopted Downtown Santa Monica Community Plan, as well as the objectives stated within the Request for Proposal.

INCLUSIVE HOMES FOR SANTA MONICA
As Santa Monica, the region, and State of California struggle with housing affordability, we are losing many of our neighbors that make our communities special. Long term residents are being priced out, while local workers are having to move further away as the cost of living - specifi cally rental rates, are increasing. The intention of HOLM is to create a supportive residential community that serves the diverse residents of Downtown Santa Monica.

The community outreach throughout the development
process, from refi nement of the program and design through lease-up, will be targeted to those already in Santa Monica.

The project includes a combination of permanent supportive homes, focused on the needs of Downtown Santa Monica’s
unsheltered neighbors, and affordable housing or the local workforce. This will include developing a balance of studio, onebedroom, and two-bedroom apartments to serve individuals, couples, and small families. HOLM intends on helping to preserve the distinctive culture that is derived from the people currently living and working in Downtown Santa Monica that makes the community special. The Affordability and Rent Targets are described in the Table Below:
1318 FOURTH STREET

SUMMARY
Studio
30% AMI
2-Bedroom
60% AMI
TOTAL
TOTAL
50 37%
66%
440 SF
40 30%
20%
880 SF
1-Bedroom
50% AMI
80% AMI
Manager Units
45 33%
22%
26%
1%

UNIT MIX

AFFORDABILITY

NUMBER PERCENTAGE

PERCENTAGE

UNIT SIZE
100%
100%
135
HOLM will be taking advantage of the site’s unique context 560 SF and surrounding assets, while supporting the distinct
needs of the neighborhood. The project is designed and
programmed to meet the goals of recently adopted
Downtown Santa Monica Community Plan, as well as the
objectives stated within the Request for Proposal.

INCLUSIVE HOMES FOR SANTA MONICA
As Santa Monica, the region, and State of California
struggle with housing affordability, we are losing many of our neighbors that make our communities special. Long term residents are being priced out, while local workers are having to move further away as the cost of living - specifi cally rental rates, are increasing. The intention of HOLM is to create a supportive residential community that serves the diverse residents of Downtown Santa Monica.

HOLM will be a
supportive community
that physically and
socially integrates itself
into the Downtown Santa
Monica community.

4.5.3 DEVELOPMENT & SERVICES CONCEPT
66 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

CONNECTING DOWNTOWN THROUGH PUBLIC SPACES
Based on the recent Los Angeles County Park Needs
Assessment, Downtown Santa Monica has one of the highest park-needs in the city. This publicly owned property provides the opportunity to fi ll a gap in the half-mile walk-shed [10 minute walk] between Reed Park, Palisades Park, and Tongva Park, as HOLM provides essential public open space via a pedestrian paseo and pocket park. HOLM Pocket Park and
Paseo are augmented by a series of publicly accessible rooftop gardens that provide unique experiences for local residents and workers, and visitors alike.

Retaining a significant portion of the municipally-owned property as publicly accessible open space, HOLM will be augmented by rooftop spaces, a local bookstore, and shareduse community room that would provide an essential civic asset for this portion of Downtown Santa Monica. As part of the community engagement process, the development
team will engage local partners, immediate neighbors, and the broader community, to further refi ne the program and design of this future community to best serve and leverage surrounding assets.

LEVERAGING UNIQUE ACTIVITIES TO CREATE PLACE
HOLM would be located in an active environment fi lled with a diversity of retail and restaurants located within and around the building. The project leverages adjacencies and its various Palisades Park
Site
Tongva Park
Christine Emerson
Reed Park
ground fl oor spaces to create a hub of entertainment and culture, all surrounding the pocket park, and pedestrian paseo.

A summary of proposed uses are listed in the table below:

The proposed paseo connects to Third and Fourth Streets via the Gallery Food Hall which provides a diverse array of food offerings, while creating direct pedestrian access to Westside Comedy, which currently fronts onto the alley. While the large ground fl oor space can accommodate a variety of options for activity – including a bowling alley, there is a smaller spaces uniquely tailored for community programming, such as an independent bookstore. The development team will seek
STREET

LEVEL PROGRAM
Paseo and Pocket Park 5,300 SF
15,400 SF
Residential Amenities and Services 2,900 SF
Commercial
Commercial
13,800 SF
Bowling Alley
Bookstore
Other 1,800 SF

PUBLIC CONNECTION

4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 67 family-oriented entertainment uses and cultural partners that can provide unique experiences not currently available in Downtown Santa Monica. As part of the community
engagement process, the development team will engage
neighbors, the broader public, and potential partners to refi ne this program to best suit the community and project.

The development team has effectively built shared social spaces within their communities through regular individual and group communications, and shared programming
opportunities that are fun, engaging, and build bonds among neighbors. HOLM service provision includes one-on-one
case management based on individualized services plans, with problem-solving and motivational techniques to build/ rebuild life and coping skills that allow residents to integrate themselves into the community. The development team and service providers will engage and leverage local partners to amplify and adapt our successful programs to the community’s unique needs and assets.

SERVING OUR RESIDENTS AND THE COMMUNITY
HOLM will provide a supportive community for future residents experiencing a variety of needs and challenges, while also providing an environment for these residents to integrate themselves into the broader community. All community
amenities and spaces for service providers are centralized on the street level, to create a hub of activity that can also be accessible to local partners and the broader community.

The development team has effectively built shared social spaces within their communities through regular individual and group communications, and shared programming that
is fun, engaging, and builds bonds among neighbors. HOLM service provision includes one-on-one case management
based on individualized services plans, with problem-solving and motivational techniques to build/rebuild life and coping skills that allow residents to integrate themselves into the community. The development team and service providers
will engage and leverage local partners to amplify and adapt our successful programs to the community’s unique needs and assets.

VCHC will be the lead service provider for the development and will provide and coordinate a broad array of services and programs to enrich the social, economic and personal wellbeing of all residents at HOLM. At the most northern point, residents enter Fourth Street through a private, recessed alcove to enter a spacious, 881 square foot lobby. Residents can head directly west from the lobby to access 562 square foot laundry room and 932 square foot community room.

The community room will be used for residents to facilitate both education programs, such afterschool enrichment
programs and job training services, and social activities such as movie nights, live sporting events, and board games.

Residents will also have ground fl oor access to a residential programming offi ce. The residential programing space will have 4 private offi ces and will be used to facilitate counseling sessions and intensive case management services. Both
tenants and local residents will have access to a 1, 356 square foot independent bookstore, located directly south of the lobby. The independent bookstore activates Fourth Street with pedestrian traffi c but also provides a sense of calm and relaxation from the commercial bowling alley, located furthest south from the resident commons.

The various residential spaces and commercial spaces on the ground fl oor are woven together with a 5,327 square foot meandering courtyard. The courtyard provides much needed green relief to the urban corridor of Downtown Santa Monica with natural vegetation, trees, air, and sunlight. Lush plans and vines funnel through from the ground fl oor to the podium deck and interior walls creating rich and vibrant pockets of social and private outdoor space. The landscaping available on the podium deck offers residents to have more private and informal gatherings, while still maintaining physical access to the lush landscapes located on the ground level. Residents can also ascend to the sixth fl oor and gain access to a spacious

GREEN SPACE DEFICIT

4.5.3 DEVELOPMENT & SERVICES CONCEPT
68 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 8, 620 square foot roof deck. The roof deck is broken out into two main spaces and is connected through an aerial bridge.

Residents can access the roofdeck directly across Fourth street to attain panoramic views of Downtown Santa Monica and
the Santa Monica Mountains, and use the roofdeck directly across the alleyway to tend the community gardens and host social gatherings and potlucks. While the public open space revitalizes the urban corridor with natural vegetation, trees, air, and sunlight, there is also a private courtyard on the second fl oor which can be used for resident recreation, but also for social services and community-building activities.

SERVICE COORDINATION
Two full-time service coordinators will work in the building, primarily providing basic case management to tenants living in affordable units, supplementary services and activities for all tenants, holding tenant meetings and community-building events, and identifying and securing new service partners.

Service coordinators also will ensure the entire services team is well integrated with the property management team and approach. The building’s annual cash fl ow can support this much-needed component of the service plan.

INTENSIVE CASE MANAGEMENT SERVICES
As an approved and active Intensive Case Management
Services (ICMS) provider in LA County’s Housing for Health program, VCHC has secured a commitment letter for funding for 66 permanent supportive housing tenants, providing up to $356,400 per year. The provision of high quality ICMS includes:

SERVICE PARTNERSHIPS
Regular one-on-one case
management sessions
Creation of individualized
services plans
Motivational techniques
to engage people in
voluntary services
Transportation to medical
and other relevant
appointments
Ongoing reassessments
for care
Connection to in home
supportive services
Attending and/or
convening periodic
meetings with partners to
problem solve around
tenant support needed to
remain housed and stable
Convening periodic
meetings with partners to
problem–solve around
tenant, building and
community issues

4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 69 Though VCHC provides a robust service program in-house
and on-site, VCHC will also form a partnership among service providers to best serve the needs of all residents in the building. To date, there are committed services partnerships from local Santa Monica organizations including Chrysalis, CLARE-Matrix, Upward Bound House, Westside Food Bank and Westside Family Health Center. Additionally, VCHC expects that Edelman Westside Mental Health Center will be the
assigned mental health and full services partnership provider for the building, as the No Place Like Home funding will pair each funded development with one of their contracted
providers and Edelman is our partner in other similar existing and planned buildings. VCHC will recruit other organizations to the services partnership as the planning evolves, any specifi c populations are identifi ed, and as tenants move in and present specifi c needs and desires. See the table below for all planned services:

A matrix of all planned services is attached, as well as letters of Intent from key service partners can be found on page 70-75.

SERVICES FUNDING STRATEGY
VCHC and all partners will cultivate high quality residential programming for its 66 supportive housing tenants, 42 lowincome households, and 26 lower wage households. The diverse tenant population allows funding opportunities from a variety of sources and allows for a creative, responsive, and intergenerational approach for residential programming.

VCHC has secured an initial letter of intent for the funding for ICMS for all supportive housing units through its current contract with Los Angeles County Department of Health
Services. As VCHC is an approved and active ICMS provider.

To provide services to households in other units, and
supplementary services building-wide, funds from cash
fl ow operations will be identifi ed and allocated. Lastly, in-kind service partnerships will be built and sustained to ensure all needed and desired services are made available. As back up, private grant funds will be secured as needed and VCHC has a successful history of raising private funds for this purpose.

By implementing this comprehensive funding approach to
resident services, VCHC will ensure the success of the project by providing housing and a full array of services focused on long-term housing stability, increased education and income, improving health and mental health, reducing costs for
emergency room visits, hospitalizations, and jail stays, and contributing to the inclusive and equitable development in Santa Monica.

This funding strategy will support an overall annual services budget of $604,220. The overall services budget with sources and uses, as well as a detailed staffi ng plan and budget, is included in Section 4.5.5(k). This includes a commitment letter from Los Angeles County.

DE SI GN I NG A RCHITEC TURE THAT INS PIR ES AND
HEALS
The design of HOLM is intended to fi t within the eclectic architectural context of Downtown Santa Monica, providing a high quality design that builds upon the rich urban textures while not overwhelming it. The street wall along Fourth Street is reinforced with a distinct vertical break to announce the pedestrian passage through the site and market hall to reach

4.5.3 DEVELOPMENT & SERVICES CONCEPT
70 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

UPPER RESIDENTIAL

LEVELS PROGRAM
1 Bedroom
Total
Residential
General
(Stairs/Elevators)
Studio
135 DU 15,800 SF
830 SF 40 DU
800 SF
525 SF 45 DU
410 SF 50 DU
2 Bedroom
STREET

LEVEL PROGRAM
Residential Amenities
and Services 2,900 SF
Commercial 15,400 SF
Bowling Alley | Book Store
Other 1,800 SF

OUTDOOR

PROGRAM
Second Level Courtyard
Energy Production
Paseo and Pocket Park
4,400 SF
10,800 SF
5,400 SF
Rooftop Gardens 8,600 SF
Third Street. The open walkways and terracing courtyard connects residents to the pocket park, pedestrian paseo, and surrounding public realm.

The even yet varied texture of white cement plaster and warm wood window shutters provide a calming backdrop that is punctuated by upper level wood breezeways. The varied
ground fl oor activity has strong connections to the outdoor spaces and street-life through the largely constant storefront openings. Many of the interior spaces have direct connections to the adjoining outdoor spaces to support expanded and coprogramming opportunities.

4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 71

FUNDING
SOURCE
TARGET

POPULATION

SERVICE

PROVIDER LOCATION AGREEMENT
Service provided
to residents
For mixed population projects,
specify which population(s)
will be eligible for the service.

Agency
providing service
Indicate whether service will
be provided on-site or off-site
Written agreement (e.g. MOU,
letter of commitment) included in
the services budget (Yes or No)
Supportive Housing
Supportive Housing
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
On Site
On Site
On Site
Both
Both
Both
Both
On Site
On Site
Off Site
On Site
Off Site
On Site
On Site
On Site
On Site
On Site
On Site
VCHC, Upward Bound
House, City of Santa
Monica, CES Partners
Yes
Yes
Yes
Yes
Yes
VCHC, Edelman Westside
Mental Health Center,
Westside Family Health Center
Westside Family Health
Center, Westside Food Bank
CLARE-Matrix
VCHC and partners
VCHC and Chrysalis
VCHC
VCHC
VCHC
VCHC
VCHC
VCHC
VCHC
VCHC
Partners
Partners
No, but referrals via existing
partnerships are available
No, but referrals via existing
partnerships are available

VCHC NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
VCHC
Supportive
Services Matrix
Housing Placement/
Matching
Individualized Service
Plans and Intensive Case
Management
Case Management
Mental Health Care
Substance Use Services
Education
Employment & Training
Housing Outplacement
Life Skills
Physical Health Care/ Well being
Benefi ts Assistance
Legal Assistance
Peer Advocacy
Social Activities
Recreational
Child Care
Medication Management
Info & Referral
Green Education

4.5.3 DEVELOPMENT & SERVICES CONCEPT
72 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Letters of Intent
Board of Directors
Ysette Witteveen
President
Tracy Edwards
Treasurer
Andrew Weissman
Secretary
Kim Defenderfer
Lisa Elson
Rev. Patricia Farris
Ray Hofmeister
Ryan A. Leggio
Glenda Martinez
Cindy Maroun
Cindy McQuade, LCSW
Renee Ordeneaux, CPA
Booker Pearson
Kimberly Roberts
Jane Spiegel, MD
Jamie Tierney
Albert P. Vera
Kitty Wallace
Russ Whittenburg
Tom Wilson
Executive Director
Christine Mirasy- Glasco
1104 Washington Avenue, Santa Monica, CA 90403 | 310.458.7779 | www.upwardboundhouse.org

4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 73

4.5.3 DEVELOPMENT & SERVICES CONCEPT
74 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 75

4.5.3 DEVELOPMENT & SERVICES CONCEPT
76 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 77

4.5.3 DEVELOPMENT & SERVICES CONCEPT
78 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE HOLM
Mood Board
DEVELOPMENT & SERVICES CONCEPT// SERVICES CONCEPT 4.5.3 DEVELOPMENT & SERVICES CONCEPT 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 79 Ground
Floor Plan
0' 25''
UP
4TH STREET
ALLEY
905 SF
LOBBY
896 SF

TRASH AND

RECYCLE
676 SF

OFFICE/
708 SF

KITCHEN
172 SF

RESTROOM
BAR

ADJACENT

BUILDING

LOADING
180 SF

RESTROOM
5503 SF

COURTYARD
MAIL
116 SF

RESTROOM
107 SF

KITCHEN
1313 SF

COMMUNITY ROOM
288 SF

LAUNDRY
282 SF

CONFERENCE
ENTRY
59'-2" 36'-1"
4'-0" 132'-0" 12'-0" 2'-0"
1'-0"
200'-0"
150'-0"
01 '
6 "
2 '
02 '
1 '
4 '
04 '
2 '
8 '
08 '
4 '
16 '
PLEASE

RECYCLE
1/4" =
1'-0"
1/8" =
1'-0"
1/2" =
1'-0"
3/4" =
1'-0"
1/16" =
1'-0"
DO NOT SCALE DRAWINGS. DRAWING UNITS ARE MEASURED IN FEET (FT, ') AND INCHES (IN, "). VERIFY ALL DIMENSIONS IN FIELD PRIOR TO COMMENCING WORK.

GF 1/8" = 1'-0" 1

COURTYARD

COMMON ROOM

BOWLING AREA

ELECTRICAL
LEGEND

KITCHEN
OFFICE

TRASHROOM
BOH

LAUNDRY
BAR
ROOM

BOOKSTORE

LOBBY/MAIL
BATH
1 1
5 5
9 9
2 2
6 6
3 3
7 7
4 4
8 8

4.5.3 DEVELOPMENT & SERVICES CONCEPT
80 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 1 BEDROOM
STUDIO
LEGEND
2 BEDROOM
3 BEDROOM

COURTYARD
Second
Floor Plan
0' 25''
UP
4TH STREET
ALLEY
905 SF
LOBBY
896 SF

TRASH AND

RECYCLE
676 SF

OFFICE/
708 SF

KITCHEN
172 SF

RESTROOM
BAR

ADJACENT

BUILDING

LOADING
180 SF

RESTROOM
5503 SF

COURTYARD
MAIL
116 SF

RESTROOM
107 SF

KITCHEN
1313 SF

COMMUNITY ROOM
288 SF

LAUNDRY
282 SF

CONFERENCE
ENTRY
59'-2" 36'-1"
4'-0" 132'-0" 12'-0" 2'-0"
1'-0"
200'-0"
150'-0"
01 '
6 "
2 '
02 '
1 '
4 '
04 '
2 '
8 '
08 '
4 '
16 '
PLEASE

GF 1/8" = 1'-0" 1
1 s s
s
s
s
s
s
2 3
4 4
1 1
1 1
1 1 1
1 2
2 2
2 2
2 2
2 2
s
s
s
s
1 4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 81 Roof
Floor Plan
0' 25''
UP
4TH STREET
ALLEY
905 SF
LOBBY
896 SF

TRASH AND

RECYCLE
676 SF

OFFICE/
708 SF

KITCHEN
172 SF

RESTROOM
BAR

ADJACENT

BUILDING

LOADING
180 SF

RESTROOM
5503 SF

COURTYARD
MAIL
116 SF

RESTROOM
107 SF

KITCHEN
1313 SF

COMMUNITY ROOM
288 SF

LAUNDRY
282 SF

CONFERENCE
ENTRY
59'-2" 36'-1"
4'-0" 132'-0" 12'-0" 2'-0"
1'-0"
200'-0"
150'-0"
01 '
6 "
2 '
02 '
1 '
4 '
04 '
2 '
8 '
08 '
4 '
16 '
PLEASE

GF 1/8" = 1'-0" 1
1 1
2 3

PHOTOVOLTAIC
LEGEND

PICNIC AREA

COMMUNITY GARDEN
1 2
3 4.5.3 DEVELOPMENT & SERVICES CONCEPT
82 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 83

4.5.3 DEVELOPMENT & SERVICES CONCEPT
84 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

DELIVERING TESTED AND EFFECTIVE RESULTS
The project anticipates a 20-month schedule all government approvals, building permits, and secure financing for the mixed-use development of 135 units and 16,000 square feet commercial space. Our in-house construction team has
targeted a 24 month duration to complete construction.

Upon receiving certifi cate of occupancy, the project assumes 9 months for permanent loan conversion. The development team will work collaboratively with the City of Santa Monica to the Developer Disposition Agreement (DDA), our community outreach plan, and entitlements.

The main drivers that will impact our pre-development
schedule will be the time taken to complete our conditional use permit for the bowling alley and the procurement of rental subsidies. The development team will work closely with the County of Los Angeles Department of Mental Health to explore rental subsides. The release of the second Notice of Funding Award (NOFA) for No Place Like Home funds by the Los Angeles County Development Authority will also inform the team on the availability for Capital Operating Subsidy Reserves (COSRs). The development will also continue to work with local brokers and prospective commercial tenants to build and operate a bowling alley, and an independent book store.

Upon securing the development permit, the construction
team will work with the surrounding businesses and City of Santa Monica to create a robust traffi c plan for construction activities. The scale of the proposed development is well within the means of National CORE construction team. They will work pro-actively with the City to ensure construction activities run smoothly and on-time.

Please see page 80 for Development Schedule.

BEING LOCAL AND GLOBAL STEWARDS
The City of Santa Monica is at the forefront of environmental stewardship with comprehensive planning strategies that integrate transportation, land-use development and urban design, rigorous design standards for new development, and high-standards for environmental sustainability in design, construction, and practice. As experts in the fi elds of design, development, and construction, the development team is
excited to meet and exceed those expectations as HOLM will serve as a case study for environmental stewardship through affordable housing, mixed-use design.

HOLM personifi es the intersection of a future mobility network and land-use strategy by replacing a parking garage with affordable housing specifically serving the Downtown
Santa Monica workforce that can walk to their respective places of employment. The building surfaces and massing are specifi cally designed to maximize useable open space, productive landscape, renewable energy production, and
access to natural light and air. The new homes within HOLM are based on effi cient yet liveable unit-designs that have been developed through decades of integrated construction and management practices within the development team. This
grounded expertise allows the development team to be on

4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 85 the cutting edge of new technologies, building material and systems, and practices, including the exploration of cross laminated timber for construction of HOLM.

The State of California has been a world leader in dealing with the Climate Crisis, laying the foundation for action through AB32, signed into law by Governor Schwarzenegger in 2007.

For the building sector, the targets established by AB 32 are set on Zero Net Energy (ZNE), a goal we will reach Statewide in residential construction (three stories or less) come January 1, 2020. For commercial buildings, and residential buildings four stories and taller, 2030 is the ZNE target. To ensure these goals are reached, the State of California, through the California Energy Commission, updates and enacts new
energy codes every three years.

With each new Code cycle, the energy budget allotted to buildings (measured in kBtu per square foot) is reduced, requiring project teams to design with climate in mind, reducing the need for mechanized heating, cooling, and
daylighting system, and maximizing the use of passive
systems. Once the energy effi ciency targets for building envelope, lighting, and mechanical systems are reached, the last step is to deploy renewable energy systems (photovoltaic systems to generate electricity, solar thermal systems to offset natural gas demand for heating hot water). The roadmap and approach, was considered a mystery when the 2008 Energy Code was launched, is now clearly understood by architects, engineers, and development teams.

Because of its size (population, geography, and GDP), the State of California has the ability to move world thought and action when it comes to energy effi ciency and sustainability.

In 2017, California signed an agreement with China, to expand cooperation in the areas of renewable energy, zero emission vehicles, and low-carbon development. This agreement,
following years of collaboration and the exchange of
knowledge, solidifi ed China’s transition away from Coal as a means to generate electricity. China is on the path to be the worldwide leader in the deployment of renewable energy systems. According to the National Energy Administration, in 2018 renewable energy systems powered thirty-eight
percent of China’s electricity grid. According to Architecture 2030, China moves to implement new policies and initiatives when it comes to renewable energy systems and the move
away from fossil fuels only after California takes the fi rst step.

Additionally, India moves to follow China, and so does much of the developing world.

The global context for energy effi ciency, the move towards a clean energy future, and California’s role in moving the State, other States, and other countries forward is important when considering what has led us to this point and what steps need to be taken to further reduce our global appetite for fossil fuels. If the projections from the Intergovernmental Panel on Climate Change (IPCC) are correct, in order to avoid global temperature, increase of 2 degrees Celsius we must hit peak use of fossil fuels in 2020 and then move to eliminate our use of these by 2050 (RCP4.5). To get to a straight-line reduction by 2050, global use of fossil fuels will need to be cut in half by 2030. This is an aggressive but necessary target.

If we postpone moving towards these targets and continue depending on fossil fuels, we will exhaust the budget of CO2 that we can safely emit into the atmosphere faster, and we will need to accelerate the phase out even earlier than 2050.

4.5.3 DEVELOPMENT & SERVICES CONCEPT
86 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Development
Timeline

4.5.3 DEVELOPMENT & SERVICES CONCEPT
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 87

4.5.3 DEVELOPMENT & SERVICES CONCEPT

COMMUNITY

INVOLVEMENT
PLAN

4.5.4 90 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Understanding the complexity of developing affordable
housing within a dense urban environment and center to
an active residential community and business district, the development team is acutely aware and capable of engaging a diverse array of constituents to ensure that the project and its residents are physically, programmatically, and socially connected within its context. The team will utilize its rich experience in developing affordable housing within engaged communities and engaging local voices not typically engaged in planning conversations, while leveraging partners immersed in Santa Monica with intimate knowledge of the development process.

As the project site is already identified by the City to be developed as affordable housing through the Request
for Proposal – along with community-oriented program
integrated into the proposal, the development team would seek to collaborate with local offi cials throughout the design and development process to most effectively engage
constituents. This will relate to refi ning and building support for the residential population the project serves, as well as designing and programming the public-serving facility and public open spaces, and even naming and branding the
new community [“Holm” is a thoughtful placeholder]. The planning process will include engaging existing organizing structures, as well as employing a diverse array of mediums, activities, and forums.

BACKGROUND AND EXPERIENCE
One of the lead developers, Venice Community Housing
Corporation (VCHC) has been developing and operating
affordable housing in the Venice, Mar Vista and Del Rey neighborhoods since 1988 and permanent supportive
housing in Venice since 1994 and has built strong support in these communities for all of its developments. VCHC has a broad base of volunteers and supporters from Venice and surrounding areas including Santa Monica, working in our buildings and other programs, and has an active advocacy committee comprised of Westside residents and VCHC
tenants and staff of all incomes working to promote and increase affordable housing in the community.

VCHC has two recent examples of successful community
engagement and approvals for supportive housing
developments in Diffi cult to Develop Areas and High Resource Areas; Rose Apartments, which will break ground in early 2020. and Gateway Apartments, which is built and operating.

Gateway Apartments, located at 13368 Beach Avenue in the Del Rey community of Los Angeles and immediate to the
border of Marina Del Rey, was completed in 2016. Gateway is a 21-unit, 100% supportive housing development, with the

4.5.4 COMMUNITY INVOLVEMENT PLAN
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 91 grand opening materials attached as evidence of success.

Though this was a by-right project, VCHC still conducted substantial community outreach and was therefore successful in securing the support of the Del Rey Neighborhood Council.

The Council remains a supporter and partner with this project to this date, and is looking to support new projects of VCHC.

More recently, VCHC has experience in extensive community engagement for the development of Rose Apartments,
located at 200 Lincoln Boulevard in Venice. Rose Apartments is a 35-unit, 100% supportive housing development with
discretionary land use approvals including off-menu density bonus incentives. Supporting documentation is attached
demonstrating over a year of community engagement and
over 550 support letters, leading to a vote of support from the Venice Neighborhood Council, the LA Planning Commission, and the Coastal Commission. Rose Apartments was the
fi rst 100% affordable, new construction project approved in Venice in almost 20 years. Successful Rose engagement attached in Appendix.

To date, through engagement for our Rose Apartments and another future development, the Reese Davidson Community, VCHC has engaged with over 500 local residents, stakeholders, VCHC tenants, and others, in order to educate them about permanent supportive housing, hear their ideas and concerns about our sites, and provide them with tours of our other permanent supportive housing projects in the neighborhood.

Many of these residents have subsequently sent letters to the editor of local papers, emailed support messages to elected offi cials, spoken at public meetings in support of increasing affordable and permanent supportive housing
and/or volunteered to help in ongoing community outreach efforts. VCHC staff and board members continue efforts
to expand community outreach for our existing and future developments to tenants, home owners, community partners, and fi nancial supporters.

National CORE has extensive experience conducting complex, multi-faceted community outreach programs that are tailored to address the unique demographics and conditions of a
particular neighborhood. For example, in the City of San Bernardino, National CORE is redeveloping 252 units of public housing within a low-income, high-crime neighborhood
as part of a larger community transformation strategy.

Community outreach and engagement have played a crucial role in moving the project forward. Throughout the six-year planning process National CORE held dozens of meetings
and conducted numerous surveys in collaboration with the City, local universities, the Housing Authority, faith-based organizations and other local stakeholder groups. Meetings, surveys, and materials were delivered in multiple languages and residents were provided with childcare, transportation, food, and other incentives to encourage attendance.

At different points during the project, National CORE has had a property manager go door-to-door to collect input to ensure that resident voices were heard. Through the extensive outreach conducted, a comprehensive understanding of
residents’ needs and expectations were established to address crime, education, employment, economic development,
housing, and health – providing clear goals and outcomes for the larger neighborhood redevelopment effort. National CORE also serves on the steering committee and was a founding member of the Neighborhood Transformation Collaborative of Central San Bernardino (the “NTC”). The NTC is a partnership of roughly 40 nonprofit agencies working in Central San Bernardino that meets monthly with the intention to align priorities and resources to transform the neighborhoods directly surrounding the public housing redevelopment
site. NTC Member organizations are committed to sharing knowledge, identifying available services, and leveraging resources to achieve the greatest potential impact.

Eumenides has managed city-wide community outreach
efforts for more than 30 non-profi t and for-profi t development projects, chiefl y within the City of Santa Monica. Their services include messaging, collateral and multimedia development, social media, development and facilitation of charrettes and community meetings, engagement with neighborhood
associations and the business community, mobilization of supporters. Their experience, network, and resources will be leveraged throughout the engagement process.

4.5.4 COMMUNITY INVOLVEMENT PLAN
92 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

PLAN FOR HOLM COMMUNITY OUTREACH
The community outreach for the 1318 Fourth Street site
will continue to build upon the development team’s solid foundation of existing community support and effective
community engagement capacity. The development team
plans to utilize varied methods of community engagement in Downtown Santa Monica to ensure a high level of awareness, encourage input, dispel myths, and eventually build support for the proposed development. The development team’s
strategies will ensure interested parties are notifi ed, heard, informed, and have an opportunity to contribute:

These integrated strategies will be conducted in a transparent and accountable manner to ensure broad participation and an interactive process. Experience has shown that among the most effective methods are tenant spokespeople engaging with those unfamiliar with supportive housing, building tours, and small group meetings. However, the development team is committed to all methods, as well as fl exibility to respond Engagement with local
businesses and
community partners to
defi ne and design streetlevel public-serving
programming
Branding exercises to
refi ne/defi ne a new name
and identity for the
development
Design workshops led by
the architect and
Community Design
Coordinator
Large community openhouses with information
and input opportunities
Pop-up, temporary
prototyping of potential
street-level programming
Collection of support
letters, with focus on
immediate neighborhood
Small group intensive
community education,
advocacy training and
input gathering
Neighborhood walks and
existing affordable/
supportive housing
building tours
Engagement through art
with established
community groups (more
detail below)
Dedicated contact to
receive input and
comments about
proposed development
with response and email
update procedures in
place
Door-to-door and
storefront-to-storefront
canvassing
Neighborhood/Radius
mailings (radius defi ned
by the City)
Engagement of current
affordable housing
tenants/spokesperson
training
Website updates on
milestones / progress,
with a project page on
VCHC’s and National
CORE’s websites
Targeted surveying and
engagement of
downtown workers
Local media articles and
social media engagement
Other methods as
requested by the
community and/or
recommended as best
practice

4.5.4 COMMUNITY INVOLVEMENT PLAN
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 93 to the requests of the immediate community. As with all of the outreach strategies, a process for ongoing communication and clearly addressing concerns will be established.

Because each neighborhood, and particularly high resource communities, presents unique positions and challenges,
the development team will continue to grow and adapt
community education materials, engage neighbors of existing supportive and affordable housing to work with us in Santa Monica, and most importantly listen to collective and valid concerns and create thoughtful responses. The proposed
project has fl exibility to change some in program, design, and other aspects, and community engagement will drive
those potential changes.

COMMUNITY DESIGN PROCESS
A series of iterative community design workshops will be held, led by our Community Design Coordinator to ensure buildings meet needs and goals of the proposed development.

As a tenant/community centered design tool to address the design needs and opportunities of our tenant population, the development team will be utilizing what are called design charrettes, will be utilized by the team. Charrettes are design and planning activities where members collaborate thoughts and ideas and sketch designs to explore and share a broad diversity of design ideas. As a community engagement tool, the development team will use these charrettes as a way to increase opportunities for tenants, staff, and community stakeholder involvement that builds ownership and pride among participants in the housing development they will eventually reside or work in, or live next to.

The workshops will allow for the ideas, needs, and solutions of neighborhood participants to be thoughtfully incorporated into the building and program designs. As the same people watch their design ideas incorporated into the housing
development, they can have pride in the shared effort to make said development a success, taking ownership in its continued success. The development team will also engage in direct community outreach, mailings, e-newsletters, and other efforts to ensure strong participation in the workshops.

SMALL GROUP ENGAGEMENT
The development team has found that small group
engagement is one of the best ways to hear input, as well as educate those unfamiliar with permanent supportive
housing about its benefits to the entire community. The team will also organize ambassadors, spokespeople including formerly homeless tenants of permanent supportive housing, to engage in small group settings. Elements of the of the design workshops will be utilized to collect similar input and support while remaining unique to this audience and forum.

Educational materials will be created, all input collected will be recorded, and ongoing communication will be established so that participants know the results of their feedback on the project.

ESTABLISHED COMMUNITY GROUPS
The development team will also build relationships with a wide variety of established surrounding neighborhood
community groups and nonprofi ts in Santa Monica including, but not limited to: Westside Food Bank, Chrysalis, Step Up on Second, New Directions and other Veteran’s organizations; aligned non-profi t organizations such as The People’s Concern, Upward Bound House, Westside Family Health Center; and
others who provide services and support for the unhoused and low-income populations to be identifi ed. VCHC already has relationships with these Santa Monica-based organizations , which will enhance the development team’s community reach within Downtown Santa Monica, facilitating connections to individuals, families and youth experiencing homelessness.

4.5.4 COMMUNITY INVOLVEMENT PLAN
94 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

4.5.4 COMMUNITY INVOLVEMENT PLANӕӕ
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 95

STAKEHOLDER NOTIFICATION AND

OUTREACH MATERIALS
The development will use varied methods to ensure
stakeholders are notifi ed of the proposed project and can engage with us directly about it. Specifi c outreach materials will include:

In summary, the development team recognizes outreach is imperative when it comes to any affordable and permanent supportive housing development. Therefore, the development team will ensure community outreach strategies are robust, meaningful, and result in a project with broad support.

Additionally, a successful community outreach process for this site can provide a strong foundation for support for future projects, which are much needed in the Santa Monica area, as well as Venice and the Westside to meet the overwhelming need. The above outlined strategies will be evaluated on an ongoing basis, and supplemented or enhanced as needed.

VCHC is also part of the Westside Coalition that works together with about 55 faith-based and social service organizations to collaborate on issues of housing, hunger and health through service coordination, public education and advocacy. The development team expects to identify other community
groups throughout the process, and will be available for meetings, presentations, and discussions as invited or needed.

VCHC has a working relationship with Supervisor Kuehl,
including working with her on recent community engagement activities. Supervisor Kuehl’s staff has played a similar role in expressing public support for new developments and
introducing the development team to stakeholders. The
development team plans to work with the City Council,
Supervisor offi ce and other local offi cials to reach partners around the project site, to meet and become familiar with key stakeholders.

ESTABLISHED LOCAL BUSINESS RELATIONSHIP WITH

CITY COUNCIL
The development team will engage Downtown Santa Monica
to build relationships with a wide variety of established local businesses in order to aid in design and programming the ground fl oor space and outdoor public space. This will help build new relationships within the Santa Monica community by diversifying our outreach and networks to local restaurants, boutiques, cafes, and various services. This includes working with the association, businesses, and their staff members.

We believe we should rely on businesses with long standing social and business support in the community, for direction and insight on what is successful in the Santa Monica
community. This will aid us in building lasting relationships and partnerships for the future of this project and its residents

NEIGHBORHOOD WALKS AND BUILDING TOURS
The development team has done extensive outreach on
the Westside, and will continue doing so focused on
Downtown Santa Monica. Although homelessness is a wellknown issue, there are still many who are unfamiliar with permanent supportive housing and how they exist within
a neighborhood. Additionally, neighborhood walks are a
great way for a diverse group of residents to jointly assess the assets and needs in the surrounding community, and
use that to inform uses for the site beyond housing, including retail, social services, green space, and others. VCHC staff will plan and lead regularly scheduled neighborhood walks and tours of existing affordable and permanent supportive housing in Venice and Santa Monica, educate participants about the value and potential for housing developments to meet other community needs, and document the input and
feedback received.

Flyers, distributed handto-hand, door-to-door,
storefront-to-storefront
Mailings
Powerpoint presentations
News or other published
articles/documents
Fact vs. Myth statements
Frequently asked
questions
Social media/online
announcements and
information
E-blasts/E-Newsletters (of
VCHC and local partners)
Project-specifi c webpage
on VCHC and National
CORE websites, with
regular updates
Radius mailings, as
defi ned/required by the
City or others

4.5.4 COMMUNITY INVOLVEMENT PLAN

FINANCING

STRATEGY

4.5.5 98 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE The proposed fi nancial strategy utilizes the strengths of both developers while maintaining fl exibility to meet the needs of a diverse economic and demographic tenant population.

The mixed-income housing development of 135 units, with 66 permanent supportive housing, 42 low income, and 26
workforce housing, which enable access to a wide range of state and county resources. The team has chosen to focus on funding resources that are readily available now, expected to have several successive funding rounds, and where the team has recent experience in securing. For more information regarding the team’s experience in securing these funds, please reference Section D of 4.5.5.

PROJECT

DESCRIPTION

SUMMARY

OF SOURCES & USES
SRO / Studio
Acquisition
50 21,000 156
37%
0%
30% AMI 66 49%
80% AMI
Financing Costs
Construction-related
Developer Fee
26 3,681,087
440,500
8,412,235
27,267
3,263
62,313
19%
5%
1%
12%
One-bedroom
Hard Costs
45 49,599,218 367,402
33%
73%
50% AMI
Architecture & Engineering
22 2,355,073 17,445
16%
3%
Manager Units
Legal
Reserves
Related Development Costs
1 75,000
396,886
461,170
556
2,940
3,416
1%
0%
1%
1%
Two-bedroom
Permits, Fees & Entitlement
40 2,447,173 18,127
30%
4%
60% AMI
Reports / Studies
20 32,500 241
15%
0%

UNIT MIX

PERMANENT USES

AFFORDABILITY
TOTAL 135 100%
TOTAL
TOTAL
135
67,921,841 503,120
100%
100%
NUMBER

TOTAL PER UNIT

PERCENTAGE

PERCENTAGE
Financial
Strategy

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 99

CONSTRUCTION

FINANCING

PERMANENT

FINANCING
Construction Loan
Permanent Loan (include Section 8 increment)
$ 37,738,190
$ 14,112,149
$ 8,342,029
$ 5,581,000
$ 8,344,772
$ 8,344,772
$ 46,080,219
$ 19,693,149
$ 279,542
$ 104,534

TOTAL FINANCING

TOTAL FINANCING
$ 59,577,070
$ 59,577,070
$ 67,921,841
$ 67,921,841
$ 441,312
$ 441,312
No Place Like Home (NPLH) - LACDA
No Place Like Home (NPLH) - LACDA
$ 14,840,000
$ 14,840,000
-
-
$ 14,840,000
$ 14,840,000
$ 109,926
$ 109,926
LP Equity - Federal
Santa Monica Local Development Impact Fees
LP Equity - Federal
$ 2,324,902
$ 1,186,884
$ 20,485,247
-
-
-
-
$ 2,324,902
$ 1,186,884
$ 23,249,019
$ 17,221
$ 8,792
$ 151,743
Affordable Housing Trust Fund (AHTF) -LACDA
Affordable Housing Program (AHP) - FHLB
$ 2,540,554
$ 1,340,000
-
-
$ 2,540,554
$ 1,340,000
$ 18,819
$ 9,926
Deferred Developer Costs
Affordable Housing Trust Fund (AHTF) -LACDA
GP Equity - Developer Fee
$ 2,133,423
$ 2,540,554
$ 5,072,235
$ 2,743
$ 2,763,772
$ 2,136,166
$ 2,540,554
$ 5,072,235
$ 15,803
$ 18,819
$ 37,572

RESIDENTIAL

COMMERCIAL

COMMERCIAL
TOTAL
TOTAL
PER UNIT ӳ TOTAL
PER UNIT ӳ TOTAL
SECTION A Ӳ SOURCES & USES
To fund the development of 135 units, the project leverages the maximum proceeds available for No Place Like Home
funds and targets gap fi nancing from Affordable Housing Trust Fund (County of Los Angeles Development Authority) and the Affordable Housing Program (Federal Home Loan
Bank of San Francisco). The project fi nances the remainder of the project with tax credit equity and a perm loan that includes 66 Flexible Housing Subsidy Pool vouchers (County of Los Angeles Department of Health Services). The viable fi nancial strategy is able to deliver 100% affordable housing project and over 15,000 square feet of commercial space, without the need for any Santa Monica Affordable Housing Trust Funds.

The development will finance the building shell for the 15,400 square foot commercial space composed of a bowling alley and independent bookstore with perm loan and tax
credit equity. A detailed split between the residential and commercial sources is provided below.

4.5.5 COMMUNITY FINANCING STRATEGY
100 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE SECTION B Ӳ DEVELOPMENT PRO FORMA
The proposed development yields a total cost $442K per
unit for residential development and $384 per square foot for the commercial space. The pricing for the construction budget assumes residential prevailing wages and commercial prevailing wages for certain mechanical, engineering, and plumbing trades. For additional details on the construction budget, please see appendix (See Financial Strategy folder).

Below is a detailed breakdown of the uses envisioned in the development of 135 units and 15, 125 square foot commercial space.

The soft costs account for almost 27% of the total development, driven primarily by the costs associated for fi nancing costs, permit fees, architectural and engineering fees, and developer fee. To maximize the total amount of equity available for a 4% tax credit project, the developer fee follows the tax credit allocation committee (TCAC) guidelines. To calculate the maximum tax credits, TCAC allows development teams to
apply 15% of total development costs eligible for basis. The amount, however, that can be capitalized is $3 million. The remainder of the development costs ($5.4 million) associated with the developer fee will be reinvested as by General Partner Equity. Please see the Development Pro Forma below for a full breakdown between general contractor costs, architectural fees, and developer fees. The costs associated for the
community benefi ts, for the bowling alley and independent bookstore, are broken down in the commercial budget column.

The costs for the pocket park are incorporated into the total sitework costs for the residential and commercial space.

In addition to creating an overall development budget,
the team has created a list of a sources and uses for the predevelopment budget. Our development team has a
long standing history in securing predevelopment loans on city-owned sites and we will work with our partners to ensure timely access to capital funds. Please see the Predevelopment Budget also attached. Please see Section D of 4.5.5 for more information regarding the fi nancial capacity and experience for more information.

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 101

ACQUISITION
Total Land Cost / Value - - - - - - -
Legal / Broker Fees 21,000 18,717 139 2,283 0 - -
Demolition - - - - - - -
Subtotal Acquisition 18,717 21,000 139 2,283 0 - -

NEW CONSTRUCTION
Offsite Improvements 736,223 656,195 4,861 80,027 5
Site Work 5,191,338 4,627,039 34,274 564,298 37 4,627,039 - Residential Structures 27,378,754 27,378,754 202,806 - - 27,378,754 - Non-Residential Structures 3,516,263 - - 3,516,263 232 - 3,516,263 Parking - - - - - - -
Estimating Contingency 1,871,504 1,668,071 12,356 203,432 13 1,668,071 203,432 Cost Escalation 1,871,504 1,668,071 12,356 203,432 13 1,668,071 203,432 General Requirements 3,293,847 2,935,806 21,747 358,041 24 2,935,806 358,041 Contractor Overhead / Profit 2,470,385 2,201,854 16,310 268,531 18 2,201,854 268,531 Bond / GC Liability Insurance 926,394 825,695 6,116 100,699 7 825,695 100,699 Subtotal New Construction 42,502,952 47,863,712 314,837 5,360,760 354 41,846,756 4,650,399 CONSTRUCTION CONTINGENCY 1,546,856 1,735,506 11,458 188,649 12 1,546,856 188,649

ARCHITECTURE
Design 2,040,404 1,818,612 13,471 221,792 15 1,818,612 221,792 Reimbursables & Additional Services 9,670 8,619 64 1,051 0 8,619 1,051 Subtotal Architecture 1,827,230 2,050,073 13,535 222,843 15 1,827,230 222,843

SURVEY & ENGINEERING
Civil Engineer 150,000 133,695 990 16,305 1 133,695 16,305 Landscape Architect 75,000 66,848 495 8,153 1 66,848 8,153 Other Design Consultants 60,000 53,478 396 6,522 0 53,478 6,522 Survey 10,000 8,913 66 1,087 0 8,913 1,087
Geotechnical Report 10,000 8,913 66 1,087 0 8,913 1,087 Other Engineering - - - - - - -
Subtotal Survey & Engineering 271,847 305,000 2,014 33,154 2 271,847 33,154

PERMITS & FEES
Local Development Impact Fees - Residential 1,186,884 1,186,884 8,792 - - 1,186,884 - Local Development Impact Fees - Commercial 419,404 419,404 - Permit Fees 686,433 - - 686,433 - - 686,433
Subtotal Permits & Fees 1,186,884 2,292,720 8,792 1,105,837 - 1,186,884 1,105,837

PREDEV & ACQ FINANCING
Acquisition Financing - - - - - -
Predevelopment I Financing 281,700 251,079 1,860 30,621 - 251,079 30,621 Predevelopment II & III Financing - - - - - - -
Legal Fees - - - - - - -
Subtotal Predev & Acq Financing 251,079 281,700 1,860 30,621 - 251,079 30,621

CONSTRUCTION FINANCING
Construction Loan Interest 2,041,500 1,819,589 13,478 221,911 - 1,182,733 144,242 Origination Fee 322,600 287,533 2,130 35,067 - 287,533 35,067 CDLAC Fee 13,300 13,300 99 - - -
Taxes 15,000 13,370 99 1,631 - 8,690 1,631
LACDA Fees 157,874 140,714 1,042 17,161 - 91,464
Insurance 45,500 40,554 300 4,946 - 26,360 4,946
Title, Escrow & Recording 194,900 173,714 1,287 21,186 - 173,714 21,186 Lender Transaction Costs - - - - - -
Bond-Related Expenses 353,732 353,732 2,620 - - -
Subtotal Construction Financing 2,842,506 3,144,406 21,056 301,901 - 1,770,495 207,071 Total Land Cost / Value - - - - - - -
Legal / Broker Fees 21,000 18,717 139 2,283 0 - -
Demolition - - - - - - -
18,717 21,000 139 2,283 0 - -
Offsite Improvements 736,223 656,195 4,861 80,027 5
Site Work 5,191,338 4,627,039 34,274 564,298 37 4,627,039 - Residential Structures 27,378,754 27,378,754 202,806 - - 27,378,754 - Non-Residential Structures 3,516,263 - - 3,516,263 232 - 3,516,263 Parking - - - - - - -
Estimating Contingency 1,871,504 1,668,071 12,356 203,432 13 1,668,071 203,432 Cost Escalation 1,871,504 1,668,071 12,356 203,432 13 1,668,071 203,432 General Requirements 3,293,847 2,935,806 21,747 358,041 24 2,935,806 358,041 Contractor Overhead / Profit 2,470,385 2,201,854 16,310 268,531 18 2,201,854 268,531 Bond / GC Liability Insurance 926,394 825,695 6,116 100,699 7 825,695 100,699 42,502,952 47,863,712 314,837 5,360,760 354 41,846,756 4,650,399 1,546,856 1,735,506 11,458 188,649 12 1,546,856 188,649 Design 2,040,404 1,818,612 13,471 221,792 15 1,818,612 221,792 Reimbursables & Additional Services 9,670 8,619 64 1,051 0 8,619 1,051 1,827,230 2,050,073 13,535 222,843 15 1,827,230 222,843 Civil Engineer 150,000 133,695 990 16,305 1 133,695 16,305 Landscape Architect 75,000 66,848 495 8,153 1 66,848 8,153 Other Design Consultants 60,000 53,478 396 6,522 0 53,478 6,522 Survey 10,000 8,913 66 1,087 0 8,913 1,087
Geotechnical Report 10,000 8,913 66 1,087 0 8,913 1,087 Other Engineering - - - - - - -
271,847 305,000 2,014 33,154 2 271,847 33,154
Local Development Impact Fees - Residential 1,186,884 1,186,884 8,792 - - 1,186,884 - Local Development Impact Fees - Commercial 419,404 419,404 - Permit Fees 686,433 - - 686,433 - - 686,433
1,186,884 2,292,720 8,792 1,105,837 - 1,186,884 1,105,837 Acquisition Financing - - - - - -
Predevelopment I Financing 281,700 251,079 1,860 30,621 - 251,079 30,621 III Financing - - - - - - -
Legal Fees - - - - - - -
251,079 281,700 1,860 30,621 - 251,079 30,621
Construction Loan Interest 2,041,500 1,819,589 13,478 221,911 - 1,182,733 144,242 Origination Fee 322,600 287,533 2,130 35,067 - 287,533 35,067 CDLAC Fee 13,300 13,300 99 - - -
Taxes 15,000 13,370 99 1,631 - 8,690 1,631
LACDA Fees 157,874 140,714 1,042 17,161 - 91,464
Insurance 45,500 40,554 300 4,946 - 26,360 4,946
Title, Escrow & Recording 194,900 173,714 1,287 21,186 - 173,714 21,186 Lender Transaction Costs - - - - - -
Bond-Related Expenses 353,732 353,732 2,620 - - -
2,842,506 3,144,406 21,056 301,901 - 1,770,495 207,071

SECTION B

DEVELOPMENT PRO FORMA
ITEM Total Cost Residential Commercial Res
Per Unit
Comm
Per Sq Ft
Construction/
Rehab Basis
Commercial
Basis

4.5.5 COMMUNITY FINANCING STRATEGY
102 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

RESERVES
Operating Reserves 396,886 396,886 2,940 - - -
Transition Reserves - - - - - -
Subtotal Reserves 396,886 396,886 2,940 - - -

REPORTS
Appraisal 10,000 8,913 66 1,087 - 8,913 1,087
Market Study 7,500 7,500 56 - - 7,500
Subtotal Reports 16,413 17,500 122 1,087 - 16,413 1,087

SOFT COSTS
TCAC Fees 80,900 80,900 599 - - -
Environmental Audit 15,000 13,370 99 1,631 - 13,370 1,631 Marketing 67,250 67,250 498 - - -
Relocation Expenses - - - - - -
Furnishings 310,500 310,500 2,300 - - 310,500
Entitlements 150,000 133,695 990 16,305 - 133,695 16,305 Construction-Related Services 100,000 89,130 660 10,870 - 89,130 10,870 LEED/Sustainable Design Soft Costs 30,000 26,739 198 3,261 - 26,739 3,261 Holding Costs - - - - - -
Soft Cost Contingency 273,697 243,946 1,807 29,751 - 243,946 29,751 Subtotal Soft Costs 965,530 1,027,347 7,152 61,817 - 817,380 61,817

DEVELOPER COSTS
Developer Fee 8,412,888 7,436,859 55,088 976,029 - 7,436,859 976,029 Project Administration 20,000 17,826 132 2,174 - -
Accounting - - - - - -
Subtotal Developer Costs 7,454,685 8,432,888 55,220 978,203 - 7,436,859 976,029

SYNDICATION COSTS
Cost Certification 30,000 30,000 222 - - -
Legal - Syndication 20,000 20,000 148 - - -
Consultant - Syndication 50,000 50,000 370 - - -
Partnership Formation & Taxes 20,000 20,000 148 - - -
Subtotal Syndication Costs 120,000 120,000 889 - - -
TOTAL DEVELOPMENT COSTS 59,610,614 67,923,260 441,560 8,312,646 384 57,015,919 7,482,887

SECTION B

DEVELOPMENT PRO FORMA
ITEM Total Cost Residential Commercial Res
Per Unit
Comm
Per Sq Ft
Construction/
Rehab Basis
Commercial
Basis

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 103 Ground lease note
Legal fees
75% of design proposal (exclude CA)
85% of design reimbursables estimate
includes CASP
excluded
Assumes Phase I and LBP/Asbestos report
Assumes impact fees can be paid at construction closing Assumes 75% of project administration
usually 50% of predev fee; verify
Includes taxes for 2 years + partnership formation; verify 50% of soft cost contingency

ACQUISITION
Land & Buildings -
Existing Debt -
Closing Cost -
Interest Reserve -
Due Diligence Reports -
Title, Escrow & Recording 21,000

ARCHITECTURE & ENGINEERING
Design 1,464,338
Reimbursables & Additional Services 82,979
Soils, Survey, Engineering 20,000
LEED/Sustainable Design 25,000
Civil Engineer 150,000
Landscape Architect 75,000
Geotechnical Report 10,000
CASp Consultant 35,000

FINANCING COSTS
Acq Loan Interest & Fees -
Predev Loan I Interest & Fees 281,700
Non-Residential -
Property Taxes -
Insurance 45,500
Title, Escrow & Recording (predev & acq loans) -
Lender Transaction Costs -

REPORTS
Appraisal 10,000
Market Study 7,500
Capital Needs Assessment -
Other Reports -

SOFT COSTS
TCAC Fees 82,900
CDLAC Fees 13,300
Other Financing Fees -
Environmental Audit 15,000
Plancheck Fees 172,673
Permit Fees 257,203
Utillity Connections 256,557
Relocation -
Entitlement Consultant 150,000
Entitlement Planning Fees 58,465
Communtiy Outreach 42,000
Cost-estimating -
Holding Costs -

DEVELOPER COSTS
Project Administration -
Consultant 20,000
Accounting -

SYNDICATION COSTS
Consultant - Syndication -
Partnership formation & taxes -
CONTINGENCY 136,849
TOTAL 3,432,964

SECTION B

PREDEV BUDGET
USES

PREDEVELOPMENT FINANCING

ASSUMPTIONS

ASSUMPTIONS
Total
Total

4.5.5 COMMUNITY FINANCING STRATEGY
104 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE SECTION C ӲDEVELOPER NOTES AND ASSUMPTIONS
A full breakdown of the assumptions applied to calculate the development costs is provided below. The total hard costs were provided by our in-house construction team and includes a line for sustainable materials like cross-laminated timber and photovoltaic cells. The total soft costs are calculated based on the total scope of construction costs and fi nance costs are derived from current market conditions.

Acquisition Financing
Predevelopment I Financing
Legal Fees

1.00%
estimate (past projects)
5% for 24 months assuming 60% drawdown and 1% origination fee Local Development Impact Fees - Residential
Local Development Impact Fees - Commercial
Permit Processing Fees Santa Monica Fees - 2018
School Fees Santa Monica Fees - 2018
Santa Monica Fees - 2018; assumed waived for 100% affordable housing Santa Monica Fees - 2018; includes Traffic Impact, Parks & Rec, Water Demand Mitigation, and Childcare Linkage Fee

SECTION C

DEVELOPMENT BUDGET NOTES & ASSUMPTIONS

ACQUISITION

CONSTRUCTION

ARCHITECTURAL FEES

SURVEY & ENGINEERING

PERMITS & FEES

CONSTRUCTION INTEREST & FEES

PREDEV & ACQUSITION FINANCING

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 105

SECTION D
The mixed-income development of 135 units, including 66 permanent supportive housing units and rental subsidies, yields a rental income of $1.9 million a year and operating expenses of $1.0 million, which generates a net operating income of $837,000. After applying 1.15 debt coverage ratio, the project generates an annual debt service amount of
$729,000.

The commercial space assumes a triple net lease with $5.25 per square foot market lease rate for the bowling alley and discounted lease rate of $4 for discounted lease rate for the bookstore. The net income generated from this space is
split evenly between the development team and City of
Santa Monica to ensure our project objectives and overall community benefi ts are aligned and viable long-term. In addition to the paying the Downtown Santa Monica Property and Business District fees, the project will pay an additional fee for the recently implemented Park Ambassador Pilot
Program to ensure adequate resources are available for the 5,327 square foot pocket park.

The details regarding residential income and expenses
are provided below. A 55 year cash flow statement with
the assumptions is projected below with a breakdown the cashfl ow waterfall for both the residential and commercial net income streams.

SECTION C

DEVELOPMENT BUDGET NOTES & ASSUMPTIONS

PERMANENT FINANCING

LEGAL FEES

RESERVES

REPORTS

CONTINGENCY

SOFT COSTS

DEVELOPER COSTS

4.5.5 COMMUNITY FINANCING STRATEGY
106 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE CASH FLOW - Commercial Factor Trend 1 2 3 4
Capital Ground Lease - City of Santa Monica Factor Trend 1 2 3 4 DISTRIBUTION OF CASH FLOW ӳ Residential Factor Trend 1 2 3 4

SECTION D

CASH FLOW FROM OPERATIONS
CASH FLOW - Residential Factor Trend 1 2 3 4

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 107 5 6 7 8 9 10 11 12 13 14 15
5 6 7 8 9 10 11 12 13 14 15
5 6 7 8 9 10 11 12 13 14 15
5 6 7 8 9 10 11 12 13 14 15

4.5.5 COMMUNITY FINANCING STRATEGY
108 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Factor
Factor
Factor
Trend
Trend
Trend
16 16
16 17
17 17
18 18
18 19
19 19
20 20
20 21
21 21
CASH FLOW - Commercial
Capital Ground Lease - City of Santa Monica
DISTRIBUTION OF CASH FLOW ӳ Residential

SECTION D

CASH FLOW FROM OPERATIONS
CASH FLOW - Residential Factor Trend 16 17 18 19 20 21

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 109 22 23 24 25 26 27 28 29 30 31 32 34 33 35
22 23 24 25 26 27 28 29 30 31 32 34 33 35
22 23 24 25 26 27 28 29 30 31 32 34 33 35
22 23 24 25 26 27 28 29 30 31 32 34 33 35

4.5.5 COMMUNITY FINANCING STRATEGY
110 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Net Cash Flow
LP Asset Management Fee $5,000 3.00%
Partnership Management Fee $15,000 3.00%
No Place Like Home (NPLH) - LACDA 34% 17.1%
Affordable Housing Trust Fund (AHTF) -LACDA 6% 3.0%
Capital Ground Lease - City of Santa Monica 60% 29.9%
Residual Receipt - LP (99.99% to LP; 00.01% to GP) 50.00% Beginning Balance
Distributions - Residential
Distributions - Commercial
Interest
Ending Balance
Commercial Rental Income
Vacancy Rate
EFFECTIVE GROSS INCOME - Commercial
Downtown Santa Monica Property and Business District (SM PBAD) $6,857 3.50% Park Ambassador Pilot Program 8,535
NET OPERATING INCOME - Commercial
Debt Service - Commercial
Debt Coverage Ratio - Commercial
NET CASH FLOW - Commercial
Residual Receipt - Capital Ground Lease to City of Santa Monica 50.00% Residual Receipt - LP (99.99% to LP; 00.01% to GP) 50.00% Gross Residential Income
Gross Residential Income (pre-rehab rents)
Miscellaneous Income (laundry) $5.00 1.57%
Vacancy Rate
Rental/Operating Subsidy -PBV Y 2.50%
Vacancy Rate (subsidized units) -PBV 5.00%
EFFECTIVE GROSS INCOME - Residential
Residential Operating Expenses $6,410 3.50%
Supportive Services $122,820 3.50%
Replacement Reserve $67,500 $500
Downtown Santa Monica Property and Business District (SM PBAD) $20,093 3.50% Bond Fees - NPLH $9,750 0.00%
TOTAL OPERATING EXPENSES - Residential
NET OPERATING INCOME - Residential
Debt Service - Residential
Debt Coverage Ratio - Residential
NET CASH FLOW - Residential
LP Asset Management Fee $5,000 3.00%
Partnership Management Fee $15,000 3.00%
No Place Like Home (NPLH) - LACDA 34% 17.1%
Affordable Housing Trust Fund (AHTF) -LACDA 6% 3.0%
Capital Ground Lease - City of Santa Monica 60% 29.9%
Residual Receipt - LP (99.99% to LP; 00.01% to GP) 50.00% 1,399,536 1,407,536 1,414,680 1,420,908 1,420,099 1,417,947 1,421,051 (14,069) (14,491) (14,926) (15,374) (15,835) (16,310) (16,799 (42,208) (43,474) (44,778) (46,122) (47,505) (48,931) (50,398 (229,278) (230,355) (231,277) (232,035) (231,582) (230,890) (231,086 (40,653) (40,844) (41,007) (41,141) (41,061) (40,939) (40,973 (401,699) (403,587) (405,203) (406,530) (405,736) (404,524) (404,867 (671,629) (674,785) (677,488) (679,706) (678,379) (676,353) (676,927 26,000,000

3.00%
51,161,910 51,310,604 51,437,373 51,541,224 51,621,134 51,677,867 51,710,490 401,699 403,587 405,203 406,530 405,736 404,524 404,867 1,008,962 984,464 1,034,068 1,059,797 1,086,165 1,113,188 1,534,857 1,539,318 1,543,121 1,546,237 1,548,634 1,550,336 1,551,315 51,310,604 51,437,373 51,541,224 51,621,134 51,677,867 51,710,490 51,716,055

2.50%

10.0%
Downtown Santa Monica Property and Business District (SM PBAD) $6,857 3.50% Park Ambassador Pilot Program 8,535 $ 3.50%
Residual Receipt - Capital Ground Lease to City of Santa Monica 50.00% Residual Receipt - LP (99.99% to LP; 00.01% to GP) 50.00% 2,213,097 2,268,424 2,325,135 2,383,263 2,442,845 2,503,916 2,566,514 (221,310) (226,842) (232,513) (238,326) (244,284) (250,392) (256,651 1,991,787 2,041,582 2,092,621 2,144,937 2,198,560 2,253,524 2,309,863 (22,858) (23,658) (24,486) (25,343) (26,230) (27,148) (28,099 (28,451) (29,447) (30,477) (31,544) (32,648) (33,791) (34,973 1,968,929 2,017,924 2,068,135 2,119,594 2,172,330 2,226,376 2,281,764

0.00 0.00 0.00 0.00 0.00 0.00 0.00
1,968,929 2,017,924 2,068,135 2,119,594 2,172,330 2,226,376 2,281,764 984,464 1,008,962 1,034,068 1,059,797 1,086,165 1,113,188 1,140,882 984,464 1,008,962 1,034,068 1,059,797 1,086,165 1,113,188 1,140,882

2.50%
Miscellaneous Income (laundry) $5.00 1.57%

5.00%
Rental/Operating Subsidy -PBV Y 2.50%
Vacancy Rate (subsidized units) -PBV 5.00%
Residential Operating Expenses $6,410 3.50%
Supportive Services $122,820 3.50%
Replacement Reserve $67,500 $500
Downtown Santa Monica Property and Business District (SM PBAD) $20,093 3.50% Bond Fees - NPLH $9,750 0.00%
3,440,768 3,526,787 3,614,957 3,705,331 3,797,964 3,892,913 3,990,236 0 0 0 0 0 0 0
13,869 14,087 14,308 14,533 14,761 14,993 15,228
(172,732) (177,044) (181,463) (185,993) (190,636) (195,395) (200,273 1,329,033 1,362,259 1,396,315 1,431,223 1,467,004 1,503,679 1,541,271 (66,452) (68,113) (69,816) (71,561) (73,350) (75,184) (77,064 4,544,486 4,657,976 4,774,301 4,893,532 5,015,742 5,141,005 5,269,398 (2,863,232) (2,963,445) (3,067,166) (3,174,516) (3,285,625) (3,400,621) (3,519,643 (83,767) (86,699) (89,734) (92,874) (96,125) (99,489) (102,972 (121,220) (121,220) (121,220) (121,220) (127,281) (133,645) (133,645 (66,981) (69,325) (71,751) (74,263) (76,862) (79,552) (82,336 (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750
(3,144,950) (3,250,440) (3,359,621) (3,472,624) (3,595,643) (3,723,058) (3,848,346 1,399,536 1,407,536 1,414,680 1,420,908 1,420,099 1,417,947 1,421,051

0.00 0.00 0.00 0.00 0.00 0.00 0.00
1,399,536 1,407,536 1,414,680 1,420,908 1,420,099 1,417,947 1,421,051

SECTION D

CASH FLOW FROM OPERATIONS
CASH FLOW - Residential Factor Trend 36 37 38 39 40 41
CASH FLOW - Commercial
Capital Ground Lease - City of Santa Monica
DISTRIBUTION OF CASH FLOW ӳ Residential
Factor Trend 36 37 38 39 40 41
Factor Trend 36 37 38 39 40 41
Factor Trend 36 37 38 39 40 41

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 111 99 1,417,947 1,421,051 1,422,978 1,423,655 1,416,322 1,407,247 1,403,697 1,398,568 1,391,769 1,375,836 1,357,668 1,345,265 1,330,782 1,314,106 1,286,995 35) (16,310) (16,799) (17,303) (17,823) (18,357) (18,908) (19,475) (20,059) (20,661) (21,281) (21,920) (22,577) (23,254) (23,952) (24,671) 05) (48,931) (50,398) (51,910) (53,468) (55,072) (56,724) (58,426) (60,178) (61,984) (63,843) (65,759) (67,731) (69,763) (71,856) (74,012) 82) (230,890) (231,086) (231,071) (230,832) (229,215) (227,290) (226,297) (225,023) (223,451) (220,308) (216,771) (214,205) (211,271) (207,948) (202,830) 61) (40,939) (40,973) (40,971) (40,928) (40,642) (40,300) (40,124) (39,898) (39,620) (39,062) (38,435) (37,980) (37,460) (36,871) (35,963) 36) (404,524) (404,867) (404,841) (404,422) (401,590) (398,217) (396,477) (394,244) (391,491) (385,985) (379,788) (375,293) (370,151) (364,330) (355,363) 79) (676,353) (676,927) (676,882) (676,182) (671,446) (665,807) (662,898) (659,165) (654,562) (645,356) (634,995) (627,478) (618,882) (609,149) (594,156) 34 51,677,867 51,710,490 51,716,055 51,693,433 51,641,464 51,560,960 51,450,866 51,307,902 51,130,799 50,918,256 50,671,148 50,388,291 50,066,055 49,703,027 49,297,763 36 404,524 404,867 404,841 404,422 401,590 398,217 396,477 394,244 391,491 385,985 379,788 375,293 370,151 364,330 355,363 1,140,882 1,169,263 1,198,350 1,228,158 1,258,706 1,290,012 1,322,096 1,354,976 1,388,671 1,423,203 1,458,592 1,494,858 1,532,025 1,570,113 34 1,550,336 1,551,315 1,551,482 1,550,803 1,549,244 1,546,829 1,543,526 1,539,237 1,533,924 1,527,548 1,520,134 1,511,649 1,501,982 1,491,091 1,478,933 67 51,710,490 51,716,055 51,693,433 51,641,464 51,560,960 51,450,866 51,307,902 51,130,799 50,918,256 50,671,148 50,388,291 50,066,055 49,703,027 49,297,763 48,851,221 45 2,503,916 2,566,514 2,630,677 2,696,444 2,763,855 2,832,951 2,903,775 2,976,369 3,050,779 3,127,048 3,205,224 3,285,355 3,367,489 3,451,676 3,537,968 84) (250,392) (256,651) (263,068) (269,644) (276,385) (283,295) (290,377) (297,637) (305,078) (312,705) (320,522) (328,535) (336,749) (345,168) (353,797) 60 2,253,524 2,309,863 2,367,609 2,426,799 2,487,469 2,549,656 2,613,397 2,678,732 2,745,701 2,814,343 2,884,702 2,956,819 3,030,740 3,106,508 3,184,171 30) (27,148) (28,099) (29,082) (30,100) (31,154) (32,244) (33,372) (34,540) (35,749) (37,001) (38,296) (39,636) (41,023) (42,459) (43,945) 48) (33,791) (34,973) (36,197) (37,464) (38,776) (40,133) (41,537) (42,991) (44,496) (46,053) (47,665) (49,333) (51,060) (52,847) (54,697) 30 2,226,376 2,281,764 2,338,527 2,396,699 2,456,316 2,517,412 2,580,025 2,644,192 2,709,951 2,777,343 2,846,406 2,917,183 2,989,717 3,064,049 3,140,226 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30 2,226,376 2,281,764 2,338,527 2,396,699 2,456,316 2,517,412 2,580,025 2,644,192 2,709,951 2,777,343 2,846,406 2,917,183 2,989,717 3,064,049 3,140,226 65 1,113,188 1,140,882 1,169,263 1,198,350 1,228,158 1,258,706 1,290,012 1,322,096 1,354,976 1,388,671 1,423,203 1,458,592 1,494,858 1,532,025 1,570,113 65 1,113,188 1,140,882 1,169,263 1,198,350 1,228,158 1,258,706 1,290,012 1,322,096 1,354,976 1,388,671 1,423,203 1,458,592 1,494,858 1,532,025 1,570,113 64 3,892,913 3,990,236 4,089,992 4,192,241 4,297,048 4,404,474 4,514,586 4,627,450 4,743,136 4,861,715 4,983,258 5,107,839 5,235,535 5,366,424 5,500,584 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
61 14,993 15,228 15,467 15,710 15,956 16,207 16,461 16,720 16,982 17,249 17,520 17,795 18,074 18,358 18,646 36) (195,395) (200,273) (205,273) (210,398) (215,650) (221,034) (226,552) (232,209) (238,006) (243,948) (250,039) (256,282) (262,680) (269,239) (275,962) 04 1,503,679 1,541,271 1,579,802 1,619,298 1,659,780 1,701,274 1,743,806 1,787,401 1,832,086 1,877,889 1,924,836 1,972,957 2,022,281 2,072,838 2,124,659 50) (75,184) (77,064) (78,990) (80,965) (82,989) (85,064) (87,190) (89,370) (91,604) (93,894) (96,242) (98,648) (101,114) (103,642) (106,233) 42 5,141,005 5,269,398 5,400,998 5,535,886 5,674,145 5,815,857 5,961,111 6,109,993 6,262,595 6,419,010 6,579,333 6,743,661 6,912,096 7,084,738 7,261,695 25) (3,400,621) (3,519,643) (3,642,831) (3,770,330) (3,902,291) (4,038,871) (4,180,232) (4,326,540) (4,477,969) (4,634,698) (4,796,912) (4,964,804) (5,138,572) (5,318,422) (5,504,567) 25) (99,489) (102,972) (106,576) (110,306) (114,166) (118,162) (122,298) (126,578) (131,009) (135,594) (140,340) (145,252) (150,335) (155,597) (161,043) 81) (133,645) (133,645) (133,645) (133,645) (140,328) (147,344) (147,344) (147,344) (147,344) (154,711) (162,447) (162,447) (162,447) (162,447) (170,569) 62) (79,552) (82,336) (85,218) (88,201) (91,288) (94,483) (97,790) (101,212) (104,755) (108,421) (112,216) (116,143) (120,209) (124,416) (128,770) 50) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) (9,750) 43) (3,723,058) (3,848,346) (3,978,020) (4,112,232) (4,257,823) (4,408,611) (4,557,414) (4,711,425) (4,870,826) (5,043,174) (5,221,665) (5,398,396) (5,581,313) (5,770,632) (5,974,700) 99 1,417,947 1,421,051 1,422,978 1,423,655 1,416,322 1,407,247 1,403,697 1,398,568 1,391,769 1,375,836 1,357,668 1,345,265 1,330,782 1,314,106 1,286,995 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 99 1,417,947 1,421,051 1,422,978 1,423,655 1,416,322 1,407,247 1,403,697 1,398,568 1,391,769 1,375,836 1,357,668 1,345,265 1,330,782 1,314,106 1,286,995 42 43 44 45 46 47 48 49 50 51 52 53 55 54
42 43 44 45 46 47 48 49 50 51 52 53 55 54
42 43 44 45 46 47 48 49 50 51 52 53 55 54
42 43 44 45 46 47 48 49 50 51 52 53 55 54

4.5.5 COMMUNITY FINANCING STRATEGY
112 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE No. of Square Gross Utility Net Total Total
Bedrooms Feet No. of Units Rent Allowance Rent Sq. Ft. Mo. Rent 0 440 50 $548 $31 $517 22,000 $25,850
1 560 8 $587 $41 $546 4,480 $4,368
2 880 8 $705 $52 $653 7,040 $5,224
TOTAL 66 33,520 $35,442
No. of Square Gross Utility Net Total Total
Bedrooms Feet No. of Units Rent Allowance Rent Sq. Ft. Mo. Rent 0 440 $1,018 $31 $987 0 $0
1 560 11 $1,091 $41 $1,050 6,160 $11,550
2 880 9 $1,309 $52 $1,257 7,920 $11,313
TOTAL 20 14,080 $22,863
No. of Square Gross Utility Net Total Total
Bedrooms Feet No. of Units Rent Allowance Rent Sq. Ft. Mo. Rent 0 440 $1,358 $31 $1,327 0 $0
1 560 15 $1,455 $41 $1,414 8,400 $21,210
2 880 11 $1,746 $52 $1,694 9,680 $18,634
TOTAL 26 18,080 $39,844
No. of Square Gross Utility Net Total Total
Bedrooms Feet No. of Units Rent Allowance Rent Sq. Ft. Mo. Rent 0 440 0 0 $0
1 560 0 0 $0
2 880 1 880 $0
TOTAL 1 880
No. of Square Subsidy / Utility Net Total Total
Bedrooms Feet No. of Units FMR Allowance Subsidy Sq. Ft. Mo. Rent 0 440 50 $1,158 $31 $610 22,000 $30,500
1 560 8 $1,522 $41 $935 4,480 $7,480
2 880 8 $1,791 $52 $1,086 7,040 $8,688
TOTAL 66 33,520 $46,668
No. of Square Gross Utility Net Total Total
Bedrooms Feet No. of Units Rent Allowance Rent Sq. Ft. Mo. Rent 0 440 $913 $31 $882 0 $0
1 560 11 $979 $41 $938 6,160 $10,318
2 880 11 $1,175 $52 $1,123 9,680 $12,353
TOTAL 22 15,840 $22,671
1318 Fourth Street Unit Size TCAC Rent TCAC Rent HCD Utility UNIT MIX No. % (sf) 100% AMI 50% AMI 50% AMI Allowance
Studio 50 37% 440 1,826 913 680 31
1-Bedroom 45 33% 560 1,958 979 778 41
2-Bedroom 40 30% 880 2,350 1,175 875 52
3-Bedroom 0 0% 1,060 2,714 1,357 972 64
4-Bedroom 0 0% 1,200 3,030 1,515 1,050 81
TOTAL 135 100%

SECTION D

RENTAL INCOME

SUMMARY
30% AREA MEDIAN INCOME
50% AREA MEDIAN INCOME
60% AREA MEDIAN INCOME
80% AREA MEDIAN INCOME
30% RENTAL SUBSIDY INCOME

MANAGER UNITS
NONӳRESIDENTIAL SPACE

ASSUMPTIONS

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 113

SECTION E
The underwriting assumptions for the for the construction and permanent loan are detailed below, and are based on current market conditions and informed from recent conversations with our partner lenders and investors.

SECTION E

FINANCING ASSUMPTIONS
LOAN AMOUNT Term (mos) Interest Rate Points/ Fee LTV LTV/DOR

ACQUISITION/PREDEVELOPMENT PLAN

CONSTRUCTION

PERMANENT

COSTS DEFERRED UNTIL COMPLETION

4.5.5 COMMUNITY FINANCING STRATEGY
114 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

SECTION E
The team has conservatively priced 4% tax credits at $0.99, well below the market rate for an affordable housing development situated in a high opportunity growth area and in one of the most desired neighborhoods and city in Los Angeles County.

Our equity investors are extremely enthusiastic with the current deal fl ow associated with mixed-income housing.

Our development team will continue to work with equity
investors to ensure residential programming and property management plan are properly tailored and implemented
to the diverse tenant population.

SECTION D

TAX CREDIT CALCULATION
LINE ITEM CONSTӕREHAB

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 115

GATEWAY APPARTMENTS
ӭVENICE COMMUNITY HOUSINGӮ

4.5.5 COMMUNITY FINANCING STRATEGY
116 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE SECTION F ӳ PROPOSED CITY OBLIGATION
The team will work in close collaboration with the City of Santa Monica to determine the terms and obligations of the two parties in the development of the project. We are proposing a long-term ground lease for the land, described in Section I below. We anticipate that the property will be delivered to the developer team as vacant land without encroachments and unnecessary easements. The team will negotiate the terms of the restrictive covenants to be imposed on the land with the City, and request that the City be willing to subordinate these covenants as necessary to other lenders. The team is also requesting a waiver or deferral of the City development impact fees
SECTION G ӳ FINANCIAL CONTINGENCIES
The proposed project and ground lease terms are contingent upon the successful award of the LACDA funds to the project.

A variety of funding sources, including private and public lenders and equity proceeds from the syndication of lowincome housing tax credits will be used to build the 135 units of quality affordable housing. The development team has substantial experience winning awards from these funding programs. Due to the competitiveness of the funding, the team is asking the City to allow for multiple attempts to obtain the funding from the County and State.

SECTION H ӳ PROPOSED REPAYMENT STRUCTURE
The developer team is not requesting fi nancial assistance from the City at this time, other than the long-term ground lease discussed in Section I below.

SECTION I ӳ PROPOSED GROUND LEASE TERM, STRUCTURE

AND PAYMENT SCHEDULE
The developer team is proposing a long-term ground lease of the City land for a minimum term of 90 years, with the value of the ground lease to be determined by an appraisal at fair market value. Based on the available market comparables, the team anticipates a land cost of $26 million. Residual receipts will be taken from both the residential and commercial cash fl ow income streams. To help attract and sustain operations from a local bookstore, a subsidize lease payment of $4.00 is applied to a bookstore. For the bowling alley, the development team will charge a lease payment of $5.25, based off of the average market lease payment off 3 commercial comparables located on Fourth Street in Downtown Santa Monica. The
payment from Residential Income will be split pro rata
between the public funding sources based on the total public funds allocated to the project. The payment from Commercial Income will be split 50% between the development team and City of Santa Monica. The team will collaborate on the terms of the annual lease payment to the City of Santa Monica and will remain fl exible to balance the needs of the project and City of Santa Monica.

SECTION J Ӳ FINANCING TIMELINE
From the very onset, the development team will seek rental subsidies outside of the City of Santa Monica to fund operations for the 66 permanent supportive housing units with the County of Los Angeles Department of Health Services. The project will fi rst pursue the maximum amount available for No Place Like Home (NPLH) funding to help secure gap fi nancing. The 2020 Notice of Funding Award (NOFA) for NPLH is anticipated in late spring/early summer. Upon securing this public source, the team will apply for the Los Angeles County Development Authority’s Affordable Housing Trust Funds to secure the remaining funds to build the construction. The exact ask for AHTF will be calibrated with on-going construction estimates as the project progresses further in design development. Upon securing entitlements for the bowling alley and independent bookstore, the project will apply for tax credits and the fi nal gap fi nancing for Affordable Housing Program (AHP). The total anticipated timeline to receive 100% fi nancing is 13 months.

4.5.5 COMMUNITY FINANCING STRATEGY
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 117 FINANCE ӳ

CONSTRUCTION
PERM ӳ

CONVERSION
Department of Health Services (DHS) - Flexible Housing Subsidy Pool Lease-up - Residential
3 months
3 months
5/4/2200
8/17/2023
13 months
9 months
LACDA - No Place Like Home
Rent Stabilization - Residential
3 months
3 months
6/1/2200
12/18/2023
Affordable Housing Program (AHP)
Perm Closing
CDLAC / TCAC Application
Marketing- Commercial
3 months
1 months
3 months
2 months
3/1/2021
3/18/2024
1/13/2021
12/18/2023
LACDA - Affordable Housing Trust Fund (AHTF)
Commercial Lease-up Negotiations
3 months
2 months
10/5/20
/17/2023
Construction Closing 4 months 3/17/2021
TOTAL
TOTAL
MONTH
MONTH

START DATE

START DATE
Permanent Loan Conversion
The total duration needed to complete permanent loan
conversion is 9 months and will be contingent on stabilizing rents and successfully negotiating and lease-up for the commercial space. National CORE is well experienced
in leasing residential units at this scale and will work collaboratively with City of Santa Monica to ensure previous homeless tenant populations are housed quickly and that housing for nearby low income and workforce families are properly marketed. Below is a breakdown of the schedule related to perm conversion.

4.5.5 COMMUNITY FINANCING STRATEGY
118 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 119

FINANCIAL

CAPACITY
& EXPERIENCE

4.5.6 120 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Gateway
Apartments
Los Angeles (Del Rey)
Brilliant Corners/
LA County Housing
for Health, building
operations
VCHC, Meals on Wheels
West, Brilliant Corners, St.

Joseph Center, others
LA County Housing
for Health, building
operations
VCHC, St. Joseph Center,
Edelman Westside Mental
Health Center
Navy Blue
Apartment
Los Angeles (Venice)
LA County Housing for
Health/Measure H
VCHC, Chrysalis, CLAREMatrix, Venice Family
Clinic, others
Lincoln
Apartment
Los Angeles(Venice)
LA County Housing for
Health/Measure H
VCHC, Chrysalis, CLAREMatrix, Venice Family
Clinic, others
Centinela
Apartments
Los Angeles (Del Rey)
LA County Housing for
Health/Measure H
VCHC, Chrysalis, CLAREMatrix, Venice Family
Clinic, others
Ballona Villa
Apartment
Los Angeles (Del Rey)
LA County Housing for
Health/Measure H
VCHC, Chrysalis, CLAREMatrix, Venice Family Clinic,
others
SECTION A: FINANCIAL STATEMENTS
Financial Statements for National CORE and VCHC (VCHC)
for 2016, 2017 and 2018 are provided in Appendix.

SECTION B: PORTFOLIO OF DEVELOPMENTS
A full listing of National CORE’s and VCHC’s portfolio of developments is provided within Appendix.

Among the full list of developments in operation and in the pipeline, there are several that are analogous to the proposed project. These include:

Reese Davidson Community
A 140 mixed-income, mixed-use development on a 115,000
square foot lot. The proposed development envisions 68
permanent supportive housing units, 34 artist units, and 34 low income units and 6.905 square feet of commercial space and 401 public parking stall structure. The proposed development is located in a Coastal Zone and thus, also requires a Coastal Development Permit.

Fairview Heights
Mixed use project in the City of Inglewood with 101 affordable housing units, including 50 permanent supportive housing units through DHS, 5,000 sf of commercial space and transit plaza.

Encanto Village
Mixed use project in the City of San Diego with 66 affordable housing units, including 8 permanent supportive VASH units, 4,000 sf of commercial space.

SECTION C: PORTFOLIO OF PARTNERSHIPS AND FINANCING

FOR SUPPORTIVE SERVICES
The joint partnership in the development of 1318 Fourth Street between VCHC and National CORE offers two high quality
service providers that have produced positive, long-term social impact at the local and national level.

VCHC will be the lead non-profi t social services provider at the proposed development at 1318 Fourth Street. With over 20 years of experience providing social services in supportive and affordable housing, VCHC is an approved Intensive Case Management Services (ICMS) provider in LA County’s Housing for Health program. Since 1997, VCHC has provided residential and supportive services to low-income, formerly homeless, and formerly chronically homeless populations in Los Angeles’ Financial Capacity
& Experience
Westside communities. Through leadership and participation in the SPA 5 Coordinated Entry System and the Westside
Coalition, VCHC has formed key partnerships with dozens of social services partners.

Hope through Housing Foundation is an independent 501(c)3 nonprofi t organization, affi liated with National CORE, whose mission is to break the cycle of generational poverty by advocating for policies and implementing programs that
empower individuals and change communities. Working
in more than 80 affordable housing communities and
regions throughout California, Florida, and Texas, we offer services, expertise, and coordination to inspire Hope, present Opportunity, generate Prosperity, and catalyze Empowerment for individuals of all generations. On most National CORE developments, the Hope through Housing Foundation is the lead service coordinator, working to ensure that supportive services offered to our residents are tailored to their specifi c needs. When beneficial to a development, additional
partnerships with community organizations are arranged.

The portfolio of supportive services partnerships for existing supportive housing is:

DEVELOPMENT

NAME & LOCATION

SOCIAL SERVICE
PROVIDERSӕPARTNERSHIPS

FUNDING
SOURCE
Horizon
Apartments
Los Angeles (Venice)

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 121 SECTION D: EXPERIENCE OBTAINING FUNDING SOURCES
IDENTIFIED IN SECTION 4.5.5
National CORE – Overall Financial Capacity
With nearly 10,000 units under management, National CORE (and its affiliates) serve NEARLY 30,000 residents in over 100 developments in California, Texas, and Florida. To date, National CORE has secured more than $1 billion in low income housing tax credit equity, nearly $1 billion of tax-exempt bond allocation and over $400M of public Agency subsidy. With the combination of these funding sources, National CORE has built or rehabilitated 8,200 rental units throughout Southern California. With a book value of nearly $1 billion, National CORE’s portfolio includes more than 60 low income housing tax credit fi nanced communities.

Financing for all our communities is obtained by National CORE’s in-house project development and fi nance staff. All funding applications are prepared in-house as well as fi nancial feasibility analysis to determine the appropriate funding sources to develop each project. National CORE has extensive experience with the regulations and process required to secure available affordable housing funding sources and has been very successful in competing for and securing funding for 27 years. A full history of National CORE’s demonstrated fi nancial history can be seen in Appendix.

VCHC – Overall Financial Capacity
Through 31 years of grass-roots development in Venice, VCHC has amassed over 236 units in the neighborhoods on the
westside of Los Angeles. VCHC has been able to preserve housing opportunities for low income families despite being situated in one of the most diffi cult areas to develop. VCHC has been successful in adding 223 units to its development pipeline by entering development agreements with city
housing departments, collaborating with local community service providers, adding density to infi ll sites, and securing needed funding. VCHC has leveraged local, county, and
state funding resources to fi nance permanent supportive housing and low income units for families.

To finance the 135 mixed-income development of 1318
Fourth Street, the development team has created has a
fl exible approach that utilizes state and county resources while minimizing the need for Santa Monica city resources.

The following sources from Los Angeles County have been identified: No Place Like Home (NPLH), Flexible Housing Subsidy Pool (FHSP), Affordable Housing Trust Funds (AHTF), and Affordable Housing Program (AHP).

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
122 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE No Place Like Home (NPLH)
To fi nance the 66 permanent supportive housing units, the development team is leveraging the maximum funds available for No Place Like Home funding. The NPLH is an attractive source because the platform is anticipated to last several rounds and assumed to be noncompetitive. Both developers, as well as the architect, meet all the threshold items and would receive maximum points for team experience, should the platform become competitive going forward.

In the most recent funding round, both developers were
successful in harnessing this resource. National CORE was recently awarded two fi rst round funding allocations from the No Place Like Home program for developments in Southern California. National CORE was awarded $7.7million in funds to build 64 permanent supportive housing units for development of Cathedral Palms Senior Apartments and $6.0 million in funds to build Legacy Square in Santa Ana. National CORE was also awarded $1.5 million in CalHFA’s Special Housing Needs Program for Legacy Square. Previously, National CORE received Mental Health Services Act (MHSA) funding for three projects: Oakcrest Heights in Yorba Linda, Mission Cove in Oceanside and Signature in Fairfi eld.

VCHC recently secured two funding awards in Venice, one for $2.6 million award for the development of 13 permanent supportive housing units for Rose Apartments and a $1.7 million award for the development of 8 permanent supportive housing units at Marian Place. In addition, VCHC was also able to secure funding for CalHFA’s Special Housing Needs Program (the predecessor to the No Place Like Home funding platform) for an allocation of $3.3 million for its development of 21 permanent supportive housing units at Rose Apartments.

In addition to being a robust platform, the underwriting criteria for No Place Like Home is conducive to leveraging county resources, favorable underwriting criteria that will allow the project to structure the deal with diverse team of lenders and equity partners.

Flexible Housing Subsidy Pool (FHSP)
The most critical funding component to the mixed-income development lies with the procurement of rental subsidies for the 66 permanent supportive housing units. The team is well aware of the City’s preference to use external resources to provide rental subsidies. VCHC has been successful in securing Flexible Housing Subsidy Vouchers from Los Angeles County Department of Health Services (DHS) for 20 vouchers for Gateway Apartments, and most recently, for securing 34 rental vouchers from the Los Angeles County Department
of Mental Health (DMH) for Rose Apartments. VCHC will
continue to leverage this strategic partnership, as well as its success in securing supportive services funds, to prioritize this funding source in securing 66 vouchers. National CORE has also been awarded 50 rental vouchers from Los Angeles County Department of Health Services (DHS) for Fairview Heights.

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 123 As a secondary option, the development team will explore the possibility of inserting a Capital Operating Subsidy Reserve (COSR) to help safeguard cash fl ow operations if rental vouchers are not available. The County of Los Angeles Development Authority is currently assessing the feasibility of having COSRs available for next the No Place Like Home funding round. If that opportunity is available, the development team will work on securing a COSR of up to $14.8 million over 20 years to help stabilize operating expenses associated with the permanent supportive housing units. National CORE has had previous success in securing COSR to make projects fi nancially feasible.

Most recently, National CORE was able to secure $2.9 million in a COSR to supplement 16 permanent supportive housing units for its Legacy Square housing development in Santa Ana, CA.

The development team work closely with the City of Santa Monica to obtain rental subsidies through any available source.

While the project aspires to have 66 permanent supportive housing units, the project has fl exibility to reassign some of these units to low income and workforce families should there be a shortage of rental subsidy. The development team shares the city’s commitment to at least having 50 permanent supportive housing units at the proposed development, and will continue to work with County and various public agencies to fi nd innovative strategies to supplement rental income associated with permanent supportive housing.

Affordable Housing Trust Fund (AHTF)
The fi nal public source needed to build 135 developments is funding from Affordable Housing Trust Fund. The County’s housing fund, though competitive, is a resource in which both National CORE and VCHC have been successful in the past. In addition, the project is only requesting 73% of the total funds available to fi nance 22 low income units at 50% Area Media Income (AMI). National CORE has a long history of securing LACDA funding through their NOFA process, including recent projects in Inglewood, Pasadena, Downey, East LA and City of Los Angeles. VCHC utilized $3 million from LACDA’s housing fund to build 20 permanent supportive housing units for Gateway Apartments.

FHLB Affordable Housing Program (AHP)
The proposed development with its focus on special needs population, infi ll location, high-quality supportive services and proven track record make this project very competitive for securing the Federal Home Loan Bank Affordable Housing Program funds. The project anticipates gap financing of $1.34 million from this competitive source. The proposed development allows the team to maximize points based
on the current guidelines based on its overall affordability levels offered. The team has had tremendous success in
securing these funds in the past. National CORE has been awarded almost $19 million of AHP funds in 36 properties over the past 20 years. VCHC has secured AHP loans on 5 of its buildings under management, amassing to the development and supportive services for 78 units
Private Lenders & Tax Credit Investors
Our development team’s relationships with various public and private fi nancial partners give us access to external capital resources that can be committed to the proposed project.

Specifi cally, the trust and open communication we share with our private equity and debt partners as well as local, state, and federal agencies allow us to structure even the most complex deals effectively with a diversity of products and services. National CORE maintains a $12 million revolving line of credit with Citizen’s Business Bank to provide predevelopment funding for its project pipeline. National CORE is very experienced in preparing fi nancial projections and structuring each property’s unique capital stack utilizing a variety of funding sources to strategically position a proposed development until it is fully funded.
4% Federal Tax Credits
National CORE’s relationship with tax credit syndicators and direct investors ensures competitive pricing and diverse range of fi nancial services and products. To date, National CORE has secured more than $1 billion in low income housing tax credit equity, nearly $1 billion of tax-exempt bond allocation and over $400M of public Agency subsidy. VCHC has completed 4 tax credit projects amassing to 90 units and $7M in funds The pursuit of the noncompetitive 4% tax credits enables a larger capital allocation from No Place Like Home proceeds and provides fl exibility for syncing fi nance milestones closer to the entitlements and design development schedule. Moreover, the noncompetitive nature of 4% tax credits ensures greater viability for the project to move forward and move swiftly to construction closing.

HAMBURGER MARY’S
ӭCITY FABRICKӮ

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
124 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

ALTERNATIVE FUNDING PLATFORMS
9% Federal Tax Credits
While the project anticipates a 4% tax structure due to highly competitive nature of 9% tax credits, the proposed development allows fl exibility to switch to a 9% federal tax credit structure, should funding from Los Angeles County Affordable Housing Trust Fund not materialize. Because
9% tax credits are extremely competitive and the project scores favorably in securing affordable housing trust funds, the development team does not anticipate a 9% federal
tax credits deal structure at this time. Both developers do, however, have signifi cant experience in obtaining 9% tax credits. Please see Section E to see a portfolio list of projects completed by both National CORE and VCHC.

State Tax Credits
In addition to having fl exibility for a 9% tax structure, the project will also closely track state tax credits to see if this pool of funds will be available for gap fi nancing. Although state tax credits are extremely competitive, the equity source would only be pursued if gap fi nancing is needed. The project does not see any need to pursue gap fi nancing at this current juncture, as No Place Like Home and Affordable Housing Trust Funds are available. If the additional state tax credits that were approved in AB 101 continue to be available for 4% tax credit new construction projects, the developers will consider this funding as gap fi nancing.

HOLM: ROOFTOP GARDEN

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 125

PUBLIC SOURCES

NATIONAL CORE

CONSTRUCTION & PERM LENDERS

NATIONAL CORE & VCHC

TAX CREDIT EQUITY INVESTORS

NATIONAL CORE & VCHC

PUBLIC SOURCES

VENICE COMMUNITY HOUSING CORPORATION
No Place Like Home (NPLH)
No Place Like Home (NPLH) -
Los Angeles County Development Authority
Wells Fargo Bank of America
Affordable Housing Program (AHP) –
Federal Home Loan Bank
Flexible Housing Subsidy Pool (FHSP) -
Los Angeles County Department of Health Services (DHS)
US Bank Boston Capital
Redevelopment Agency Housing set-aside Affordable Housing Program (AHP) – Federal Home Loan Bank Pacific Western Bank Redstone Capital
California Department of Housing and Community
Development VHHP
Community Redevelopment Agency (CRA)
Citibank Union Bank
Dignity Health housing capital Mental Health Services Act (MHSA) - CalHFA BBVA Compass RBC
NEF
Section 8 Project Based Vouchers / RAD Vouchers /
VASH Vouchers
Affordable Housing Trust Fund (AHTF) -
Los Angeles County Development Authority
Chase Bank Hudson Capital
HOME from States, Counties & Cities Flexible Housing Subsidy Pool (FHSP) - Los Angeles County Department of Mental Health (DMH)
Bank of America Wells Fargo
California Department of Housing and Community
Development MHP
Community Development Block Grants (CDBG) –
City of Santa Monica
CalHFA Raymond James
HUD Section 202, 811, 221(d)4, 223(f) Special Needs Housing Program (SNHP) - CalHFA Union Bank WNC
Inland Empire Health Plan rental subsidy Section 8 Project Based Vouchers Bank of the West

FINANCIAL CAPACITY

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
126 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE SECTION E: 9% TAX CREDIT
DEVELOPMENTS Ӳ NATIONAL CORE
Day Creek Villas 2021 140 Rancho Cucamonga, CA New Construction, Senior Vista Grande Court Glendale, CA 2019 66 New Construction, Family Oakcrest Heights Yorba Linda, CA 2018 54 New Construction, Family/Special Needs Mission Cove II Oceanside, CA 2017 60 New Construction, Special Needs Olive Meadow 2017 30 San Bernardino, CA New Construction, Family Mission Cove II 2017 60 Oceanside, CA New Construction, Family/Special Needs Valencia Vista 2016 76 San Bernardino, CA New Construction, Family The View 2014 50 Downey, CA New Construction, Family
Dumosa Senior Village 2014 75 Yucca Valley, CA New Construction, Senior Westlake Village I 2013 49 San Marcos, CA New Construction, Family Juniper Senior Village 2011 61 Escondido, CA New Construction, Senior Vista Dunes 2008 80 La Quinta, CA New Construction, Family River Canyon 2010 60 Cathedral City, CA New Construction, Family Talmadge Senior Village 2006 91 San Diego, CA New Construction, Senior San Ysidro Village San Diego, CA New Construction, Senior/Special Needs 2020 51 Encanto Villages San Diego, CA 2019 66 New Construction, Family/Special Needs Vista Del Puente San Diego, CA 2018 52 New Construction, Family/Special Needs Three Oaks 2017 54 Santa Clarita, CA New Construction, Family Oakcrest Terrance 2017 62 Yorba Linda, CA New Construction, Family Mission Cove I 2017 90 Oceanside, CA New Construction, Special Needs Marv’s Place 2016 20 Pasadena, CA New Construction, Special Needs San Emi 2014 18 Montclair, CA New Construction, Special Needs Westlake Village II 2014 57 San Marcos, CA New Construction, Family Alta Vista 2012 60 Los Angeles, CA New Construction, Family Encanto Court 2012 62 Los Angeles, CA New Construction, Senior Villa Plumosa 2009 76 Yorba Linda, CA Acquisition/Rehabilitation, Family Vista Del Cielo 2011 50 Montclair, CA New Construction, Family San Antonio Vista 2007 75 Montclair, CA New Construction, Family San Marino 2010 85 Montclair, CA New Construction, Senior Fountains at Sierra 2005 93 Fontana, CA New Construction, Senior Villages at Sierra 2003 108 Fontana, CA New Construction, Senior Summer Terrace 2009 80 Palmdale, CA New Construction, Senior Impressions 2003 100 Victorville, CA New Construction, Family Corona de Oro 2001 72 Corona, CA Acquisition/Rehabilitation, Family Crossings 2000 100 Rialto, CA New Construction, Family
Paseo Del Oro 2002 102 San Marcos, CA New Construction, Family

DEVELOPMENT
NAME

DEVELOPMENT

LOCATION
YEAR

COMPLETED
NUMBER

OF UNITS

PROJECT
TYPE

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 127 SECTION E: 9% TAX CREDIT DEVELOPMENTS Ӳ
VCHC
Gateway Apartments 2016 21 Los Angeles CA (Del Rey) New Construction,Special Needs Tabor Courts Los Angeles, CA (Venice) 1996 25 New Construction, Affordable/Large Families Washington Courts Los Angeles, CA (Mar Vista) 1997 30 New Construction, Affordable/Large Families Navy Blue Apartments Los Angeles, CA New Construction, Affordable/Large Families 1994 14

DEVELOPMENT
NAME

DEVELOPMENT

LOCATION
YEAR

COMPLETED
NUMBER

OF UNITS

PROJECT
TYPE

FOR A MORE COMPLETE LIST OF PROJECTS, SEE THE APPENDIX
DOWNEY VIEW ӭNATIONAL COREӮ

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
128 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

DEVELOPMENTS WITH FEDERAL
HOUSING SUBSIDIES Ӳ NATIONAL CORE
Crestview Terrace San Bernardino, CA RAD PBV; HOME funds 2022 184 Vista Grande Court Glendale, CA 2020 66 CDBG funds
Day Creek Villas Rancho Cucamonga, CA Project Based Vouchers (PBV) 2021 140 Encanto Village San Diego, CA 2020 66 VASH Vouchers
Vista Del Puente San Diego, CA 2018 52 Project Based Vouchers

DEVELOPMENT
NAME

DEVELOPMENT

LOCATION
YEAR

COMPLETED
NUMBER

OF UNITS

FEDERAL FUNDING
TYPE
Olive Meadow 2017 62 San Bernardino, CA HUD RAD PBV; HOME funds Three Oaks 2017 30 Santa Clarita, CA CDBG Funds
Heritage Pointe 2003 49 Rancho Cucamonga, CA HOME funds The View 2014 50 Downey, CA HOME funds
Dumosa Senior Village 2014 75 Yucca Valley, CA
Juniper Senior Village 2011 61 Escondido, CA HOME funds River Canyon 2010 60 Cathedral City, CA HOME funds
San Emi 2014 18 Montclair, CA HUD 811; AHP
Alta Vista 2012 60 Los Angeles, CA HOME funds
Encanto Court
Signature at Fairfi eld
2012
2012
62 93
Los Angeles, CA
Fairfi eld, CA
HOME funds
HOME funds
Citrus Grove 2008 152 Rialto, CA HOME funds
Vista Del Cielo 2011 50 Montclair, CA HOME funds
San Marino
Rancho Verde East
2010
2009
85 40
Montclair, CA
Rancho Cucamonga, CA
HUD 202
HOME funds
Summer Terrace 2009 80 Palmdale, CA HOME funds
Valencia Vista 2016 76 San Bernardino, CA HUD RAD PBV; HOME; FHA 221(d)(4) Loan Mission Cove I 2017 90 Oceanside, CA HOME funds
HOME funds; USDA 538 Permanent Loan
Clark Manor 2004 41 Downey, CA HOME funds
San Antonio Vista 2007 75 Montclair, CA HOME funds
Little Lake Village 2003 144 Santa Fe Springs, CA HOME funds Oaks On Florence 2003 63 Bell, CA HOME funds
Summeridge
Impressions
2002
2003
96 100
Fallbrook, CA
Victorville, CA
HOME funds
HOME funds
Corona de Oro 2001 72 Corona, CA HOME funds
Crossings 2000 100 Rialto, CA HOME funds
Sierra Vista
Paseo Del Oro
2001
2002
192
120
San Marcos, CA
San Marcos, CA
HOME funds; HOPWA Loan
HOME funds; HOPWA Loan

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 129 DEBT
With assets of nearly $1 billion, National CORE is the guarantor of all recourse debt utilized for acquisition, development and construction financing. National CORE also provides all project-related guaranties for construction completion, development defi cits, operating defi cits and tax credit delivery/ recapture. A list of current recourse and non-recourse debt obligations are provided in our audited fi nancials. VCHC, with assets accumulating to $38 million, is the guarantor of all recourse debt for acquisition, development, and construction fi nancing. VCHC also provides all project-related guaranties for construction completion, development defi cits, operating defi cits, and tax credit delivery/recapture.

NONӳPERFORMING LOANS
National CORE and VCHC do not have any non-performing
loans.

DEFAULT
National CORE and VCHC do not currently have any loans or fi nancial obligations that are in default, nor has it had any loan or fi nancial obligation defaults in the last fi ve years.

LEGAL ACTION
Please see attached narrative regarding any legal actions taken against National CORE in the last fi ve years, including fair housing violations. VCHC has not been involved in any legal activities in the last fi ve years, including fair housing violations.

DEVELOPMENTS WITH FEDERAL HOUSING SUBSIDIES Ӳ
VCHC
Horizon Apartments, LLC 2009 19 Los Angeles, CA (Venice) HACLA Navy Blue Apartments
Lincoln Apartments
1994 & 2019 (rehab) 11
13 Los Angeles, CA (Venice)
Los Angeles, CA (Venice)
HACLA, Santa Monica Housing Authority
HACLA
5026 Slauson Los Angeles 1994 9 HACLA
4216 Centinela
Washington Courts
2007
1997
6 4
Los Angeles CA (Del Rey)
Los Angeles, CA (Mar Vista)
HACLA, HACoLA
HACLA

DEVELOPMENT
NAME

DEVELOPMENT

LOCATION
YEAR

COMPLETED

NUMBER OF

SUBSIDIZED UNITS

FUNDING
TYPE

HAROLD WAY APARTMENTS
ӭKONING EIZENBERGӮ

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
130 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Christina R. Ghaly, M.D.

Director
Hal F. Yee, Jr., M.D., Ph.D.

Chief Medical Officer
313 N. Figueroa Street, Suite 912
LosAngeles, CA90012
Tel: (213) 240-8101
Fax: (213) 481-0503
www.dhs.lacounty.gov
To ensure access to high-quality,
patient-centered, cost-effective
health care to Los Angeles County
residentsthrough directservicesat
DHS facilities and through
collaboration with community and
university partners.

October 23, 2019
Ms. Becky Dennison
Executive Director
Venice Community Housing Corporation
720 Rose Ave
Los Angeles, CA 90291
Re: 1318 4th Street Project
Dear Ms. Dennison:

The Los Angeles County Department of Health Services (DHS) Housing for Health division is partnering with affordable housing developers to provide affordable housing linked to appropriate services for individuals and families who are experiencing homelessness. DHS greatly appreciates the collaboration with the Venice Community Housing Corporation (VCHC) for the purpose of delivering supportive housing to prospective DHS tenants. We look forward to assisting in the development and successful operation of the project. This letter hereby supersedes any previous commitments issued by DHS dated prior to the date above.

Project Description
The project will be located at 1318 Fourth Street in the City of Santa Monica. It will be a new construction of 120 rental apartments, and will be designed to complement the neighborhood while providing a high-quality and safe environment for its residents. It will offer two community rooms, conference and office space for services and property management staff, a large central courtyard, and two outdoor decks for use by residents. Construction will begin in August 2021, and the estimated opening date is May 2023.

It is DHS’ intention to assist VCHC with all 66 PSH units in the 1318 Fourth Street project with Intensive Case Management Services (ICMS).These units will be reserved for homeless and chronically homeless individuals in Santa Monica.

Support Services Commitment
The County will provide supportive services funding for the residents of the 66 PSH units in the project, and will enter into a contract with an ICMS provider at a funding level of up to $356,400 per year. The Housing for Health program office and VCHC will also collaborate to ensure tenants receive the support needed to remain housed and stable, including the creation of an acceptable tenant selection criteria in collaboration with DHS, the provision of high quality ICMS which includes transportation to medical and other relevant appointments, ongoing reassessments for care, connection to in home supportive services, attending and/or convening periodic meetings with partners to problem solve around tenant support needed to remain housed and stable, and convening periodic meetings with partners to problem–solve around tenant, building and community issues.

Upon receiving the various capital funding commitments necessary to ensure project feasibility, DHS will, through our established funding approval and contracting procedures, engage in contract negotiations with appropriate parties to provide the Los Angeles County
Board of Supervisors
Hilda L. Solis
First District
Mark Ridley-Thomas
Second District
Sheila Kuehl
Third District
Janice Hahn
Fourth District
Kathryn Barger
Fifth District

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 131

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
132 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE

LEGAL ACTION AGAINST DEVELOPER WITHIN THE LAST
5 YEARS
Included are legal actions taken against Developer; namely, National Community Renaissance of California (“National CORE”), in the last fi ve years, including fair housing violations.

National CORE includes only legal actions that were fi led on a date in the past fi ve years of the as of date above. National CORE makes no representation that the plaintiffs, regulators, or investigators, whether in the legal proceedings listed herein or otherwise omitted therefrom, have correctly named National CORE as a party to the lawsuit or other legal proceeding.

National CORE does not disclose herein any actions that may have been taken against any tangential affi liates. National CORE excludes from the disclosure items such as unlawful detainer actions National CORE has brought against tenants on behalf of owners of the various properties wherein National CORE was the managing agent, internal employee complaints or lawsuits, any minor agency investigations or fi ndings that are correctable, small claims actions and/or any actions wherein National CORE is, or was, the plaintiff or complainant.

By inclusion herein, National CORE makes no admission
or determination that any listed matter is material to the operations of its business. No regulatory investigations that were fi nally withdrawn, dismissed or closed with no fi ndings of violation are listed herein, as National CORE does not consider those to be “legal actions” or “fair housing violations” within the scope of the RFP.

Case Name
United African-Asian Abilities Club, On Behalf Of Itself And Its Members: Theodore A. Pinnock, An Individual v. National Community Renaissance of California; and DOES 1 Through 10, Inclusive.

Case Number
2:19-cv-06438 CAS (AFMx)
Filing Date
4/25/19 Filed in United States District Court for the Central District of California.

Party Designations
National CORE was the only named defendant.

Brief Description
Plaintiff United African-Asian Abilities Club (“Club”) alleges it is an advocacy group dedicated to assisting its members on disabled accessibility issues at businesses the Club’s members intend to patronize. Theodore Pinnock (“Pinnock”) is a disbarred California lawyer allegedly attempting to move back to California and reinstate his license to practice, and was allegedly intending to rent an apartment from National CORE’s owned and managed affordable housing property, Hawthorne Terrace Apartments. Plaintiffs allege that Pinnock was unable to access National CORE’s rental services, both online and at the on-site leasing offi ce, because of alleged communication and physical barriers related to Plaintiff’s disabilities. Plaintiffs allege violations of the Federal and State versions of the Fair Housing Act, along with discriminatory intent and impact liability, and failure to provide reasonable accommodations so that Plaintiffs could overcome the communication and physical barriers to accessibility. Among other allegations, Plaintiff’s claim that advertising websites naming Hawthorne Terrance as an available rental facility lack a proper TDD/TTY vision or hearing impaired number to contact, lack large readable print for the vision impaired, lack proper texting and screen reading software, and lack photographs showing, and describing, the physical accessibility features for the property and leasing office. Further, Plaintiffs allege the property lacks properly constituted van accessible handicap parking for visitors, accessible path and features for non-ambulatory entry to the property, and accessible features for wheelchair bound individuals. Defendant National CORE timely answered the complaint on August 23, 2019, denying the allegations by paragraph and asserting affi rmative defenses. Defendants are contemplating dispositive motions as to Plaintiff Club (as it is not currently authorized to conduct business in California), and have asserted affi rmative defenses based on Pinnock’s past conduct as a vexatious litigant (as found by a California court in 2011). National CORE has recognized that this type of case is “form” complaint intensive and Plaintiffs are serial complaint fi lers, with the intent to extract quick pecuniary settlements.

At present, discovery is ongoing and initial disclosures are being prepared.

LEGAL ACTION CASES

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 133 Case Name
Alfonzo Rizo, Jr, vs. Rancho Verde Village Apartments, LLC Case Number
CIVDS1825513
Filing Date
9/28/18 Filed in Superior Court for the County of San
Bernardino.

Party Designations
Plaintiff misnamed the LLC as an owner defendant.

National CORE is owner/manager of the property and
would be properly named as defendant. National CORE
answered as erroneously sued in the LLC name.

Case Name
Jane DOE #3, et al vs. Family YMCA of the Desert, et al.

Case Number
RIC1815935
Filing Date
8/2/18 Filed in Superior Court of California, County of Riverside.

Party Designations
National Community Renaissance of California (“National CORE”) was erroneously named as a “DBA” or doing
business as for a separate entity titled National Community Renaissance (“NCR”). National CORE was, and is, not a
dba for NCR, has not fi led a Fictitious Business Name
statement to conduct business as another company is
not, and was not, a subsidiary or parent of NCR. However, as National CORE was erroneously named as a tangential
party, this case is disclosed
Brief Description
Alfonso Rizo alleges he suffered a slip and fall incident on a caution yellow, painted speed bump at Rancho Verde
Village, Plaintiff claims that the speed bump was painted with incorrect paint. Plaintiff claims personal injury damages as a result of the fall in an amount according to proof at trial.

National CORE has denied any liability to plaintiff and has answered with a general denial and affi rmative defenses.

Discovery was attempted and
Rizo failed to respond. Motions to compel the discovery were fi led and granted. Dispositive motions for terminating sanctions have been filed and are pending hearing by
the Court. National CORE anticipates a Court order either terminating the suit or barring plaintiff from introducing evidence from the discovery.

Brief Description
The owner and operator of the River Canyon Apartment
complex, sometime starting in approximately 2008, engaged the services of Hope Through Housing Foundation (“HTHF”), a community service amenity provider, for the purpose
of conducting an after school program at the apartment
community room. HTHF contractually outsourced the after school program operations to Family YMCA of the Desert
(“YMCA”). YMCA conducted the fi rst year of the after school program for the 2011/2012 school year with YMCA designated employees. Plaintiffs, DOES #3-5 have alleged that a YMCA employee, while being in charge of the after school program, conducted assault and battery, including molestation, against the three DOE plaintiffs. While National CORE was not named in the causes of action for the physical assaults, plaintiffs have alleged it was a participant in a joint venture/partnership with HTHF and YMCA in conducting the after school program and was negligent in “supervision” of the after school program employees of the YMCA; thereby alleging vicarious liability.

National CORE has answered or responded to the present
litigation, and was successful in its discussions with plaintiffs’ litigation counsel concerning obtaining the dismissal of National CORE and other parties without prejudice, during the pending litigation against YMCA. Remaining parties YMCA and HTHF were dismissed without prejudice by plaintiff’s counsel, with the understanding that counsel would refi le the suit once proper parties are identifi ed. National CORE may, or may not, be named in the succeeding lawsuit. At present, all parties have been dismissed without prejudice.

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
134 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Case Name
Channell Davis v. National Community Renaissance, et al.

Case Number
09-17-9846-8
Filing Date
9/13/17 Filed with United States Department of Housing and Urban Development (“HUD”).

Party Designations
Plaintiff misnamed National Community Renaissance as
an owner, operator, and manager of the Hawthorne Terrace Apartments. The parties later corrected the pleadings
to name National Community Renaissance of California
(“National CORE”) as owner, operator, and manager.

Case Name
Centerline Credit Enhanced Partners LP-Series J, and
Chartermac Credit Enhanced SLP LLC-Series J v. National Housing Development Corporation and National Community
Renaissance of California
Case Number
No. 60CV-16-3244
Filing Date
8/2/18 Filed in Superior Court of California, County of Riverside.

Party Designations
National CORE as guarantor.

Brief Description
Tenant Channell Davis fi led a complaint with HUD alleging that she was discriminated against based on familial status because of respondent’s failure to move her to a larger apartment based on her increased household size. Respondents provided to HUD a denial of all allegations and provided written proof, during the investigation, that no violation of any fair housing act occurred. National CORE had previously won an unlawful detainer proceeding against Davis in California Superior Court, with monetary judgment in the amount of approximately
$2,157, based on facts and circumstances
unrelated to the HUD proceedings. HUD suggested the parties informally resolve the matter by conciliation agreement. The parties settled the matter by National CORE agreeing to deem the judgment satisfi ed for closure of the investigation, with and effective date of April 4, 2018. The conciliation agreement contained a one year term to perform all provisions by all parties. National CORE and Davis have already performed all operative terms in the agreement and HUD closed the administrative proceeding.

Brief Description
Plaintiff alleges that the Partnership that owns the affordable housing apartment complex commonly known and Squire
Court in Arkansas, under the direction of the General Partner and its affi liates, were in default with respect to certain debt service payments on the underlying loan, amongst other
claims. National CORE was sued as a guarantor and an alleged alter ego of
affiliate NHDC. Defendants denied all allegations in the complaint and the attendant partnership to the Squire Court Apartments resolved the underlying debt issue between
them. This matter was globally settled and was dismissed with prejudice on 1/8/18.

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 135 Case Name
Channell Davis v. National Community Renaissance, et al.

Case Number
09-17-9846-8
Filing Date
9/13/17 Filed with United States Department of Housing and Urban Development (“HUD”).

Party Designations
Plaintiff misnamed National Community Renaissance
of California as an owner, operator, and manager of the Hawthorne Terrace Apartments. The parties later corrected the pleadings to name National Community Renaissance of California (“National CORE”) as owner, operator, and manager.

Case Name
Gerone Thompson vs. National Communit y Renaissance of California, Michael Minser, Robert Noeth, Kimberly Marrison, Stephanie Martinez, Does 1-10 Case Number
EDCV 15-2352-FMO(AJW)
Filing Date
2/16/2016 US District Court Central District
Party Designations
National CORE as owner of Rancho Verde Village Apartments.

Brief Description
Complaint for violations of the Fair Housing Act and Negligence.

Thompson believed there were Fair Housing violations based on his race. He claims derogatory comments made on his
race and that management failed to repair his unit balcony and toilet because of his race. The prayer
was for injunctive relief, monetary damages, and attorney’s fees. Defendants fi led a general denial. The Court issued an order to show cause why the case should not be dismissed due to lack of prosecution. No substitution of attorney was fi led as of 7/19/16 and the court ordered mediation. A Court ordered mediation was held, the matter was confi dentially settled for a nominal amount, and National CORE was dismissed with
prejudice on 9/20/16.

Brief Description
Premises Liability case wherein plaintiff alleges she suffered a puncture wound from a nail protruding from the carpet in her unit. Defendant denied all allegations. The matter was resolved informally between the parties for a nominal sum, and dismissed with prejudice on 4/27/17.

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
136 1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE Case Name
Lilia Sorlano vs. National Community Renaissance of California, et. al.

Case Number
PSC1503729
Filing Date
10/1/15 Filed in the Superior Court of Riverside County.

Party Designations
The lawsuit fi led named National Community Renaissance of California (“National CORE”) dba River Canyon
Apartments, but the alleged perpetrator was actually
an employee of the Family YMCA of the Desert entity.

National CORE was acting as managing agent for the River Canyon property and was not running the YMCA program.

Brief Description
Complaint for violations of the Fair Housing Act and Negligence.

Plaintiff alleges she slipped and fell on a recently mopped elevator floor at the Juniper Senior Apartment building managed by National CORE. Plaintiff alleged
negligence and premises liability and defendants denied all allegations. The case settled confi dentially on or About 8/4/16 and National CORE was dismissed with prejudice on 8/19/19.

Brief Description
The alleged incidents occurred at the Family YMCA of the Desert located at 43-930 San Pablo Avenue, Palm Desert, CA 92260. The case involves an allegation of sexual assault of a minor during an after school/day care program. The claimant in the suit was titled as: Jane Doe #1, a minor, by and through her Guardian ad Litem, Jason Martinez; Jane Doe #2, a minor, by and through her Guardian ad Litem,
Paola Barriga. Defendants are Family YMCA of the Desert dba YMCA; National Community Renaissance; National
Community Renaissance dba River Canyon Apartments;
National Community Renaissance Development; National
Community Renaissance of California; Christopher Thomas aka Christopher Dean Bowden and Does 1 to 100, Inclusive.

The remedies sought were medical expenses, future medical expenses, loss of earnings, loss of future earning capacity, and property damage according to proof and pain and suffering with emotional distress according to proof. This matter was settled confi dentially and dismissed with prejudice between plaintiff’s and defendant YMCA. National CORE was dismissed with prejudice as a party to the suit, and had no involvement in the settlement.

4.5.6 FINANCIAL CAPACITY & EXPERIENCE
1318 FOURTH STREET AFFORDABLE HOUSING DEVELOPMENT RFP RESPONSE 137 Case Name
Browning , et al vs. National Community Renaissance, et al.

Case Number
37-2016-00000370-CU-PO-NC
Filing Date
1/7/16 Filed in Superior Court San Diego, CA
Party Designations
National Community Renaissance of California (“National CORE”)
Brief Description
Multiple former tenants made allegations that employees of National CORE had entered their apartments without
permission and that items of value were missing after the employee trespass. Further allegations were made that
National CORE was negligent in training, supervising and discharging the employees
alleged to have taken items from tenants. Defendants
generally denied all allegations. In order to avoid the cost of further discovery and litigation, and without admission of fault by defendants, the matter was confi dentially settled in 2016, and National CORE was dismissed with prejudice.

MARV’S PLACE ӭNATIONAL COREӮ

4.5.6 FINANCIAL CAPACITY & EXPERIENCE

APPENDIX

TABLE

OF CONTENTS

CO N S T R U C T I O N LI N E I T E M B I D

N AT I O N A L CO R E P RO P E R T Y S H E E T S

KO N I N G E I Z E N B E R G P R O J E C T S

F U LL S E RV I C E P L A N
2 0 1 8 VC H C F I N A N C I A L S TAT E M E N T
2 0 1 7 VC H C F I N A N C I A L S TAT E M E N T
2 0 1 6 VC H C F I N A N C I A L S TAT E M E N T
2 0 1 8 N AT I O N A L CO R E F I N A N C I A L S TAT E M E N T 2 0 1 7 N AT I O N A L C O R E F I N A N C I A L S TAT E M E N T 2 0 1 6 N AT I O N A L CO R E F I N A N C I A L S TAT E M E N T

VC H C P O R T F O LI O

VC H C S C AT T E R E D S I T E S LE T T E R

N AT I O N A L CO R E P O R T F O L I O

L A H O P E FAC T S H E E T

C I T Y FA B R I C K P R O J E C T S H E E T S
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APPENDIX 357
National Community Renaissance of California
Consolidating Financial Statements
(With Supplementary Information)
and Independent Auditor's Report
December 31, 2016
358 APPENDIX
National Community Renaissance of California
Index
1 Page
Independent Auditor's Report 2
Consolidating Financial Statements
Consolidating Statement of Financial Position 4
Consolidating Statement of Activities 5
Consolidating Statement of Changes in Net Assets 7
Consolidating Statement of Cash Flows 8
Notes to Consolidating Financial Statements 10
Supplementary Information
Consolidating Schedule of Financial Position 33
Consolidating Schedule of Activities 34
Schedule of Expenditures of Federal Awards 35
Notes to Schedule of Expenditures of Federal Awards 36
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 37
Independent Auditor's Report on Compliance for the Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance 39 Schedule of Findings and Questioned Costs 41
2 APPENDIX 359
Independent Auditor's Report
To the Board of Directors
National Community Renaissance of California
Report on the Financial Statements
We have audited the accompanying consolidating financial statements of National Community Renaissance of California, which comprise the statement of financial position as of December 31, 2016, and the related statements of activities, changes in net assets and cash flows for the year then ended, and the related notes to the consolidating financial statements.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidating financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidating financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility
Our responsibility is to express an opinion on these consolidating financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidating financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidating financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidating financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidating financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidating financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the consolidating financial statements referred to above present fairly, in all material respects, the financial position of National Community Renaissance of California as of December 31, 2016, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. 360 APPENDIX
3 Adoption of New Accounting Principle
As discussed in Note 2 to the financial statements, in 2016, National Community Renaissance of California adopted a new accounting principle related to the presentation of debt issuance costs. Our report is not modified with respect to this matter.

Other Matters
Other Information
Our audit was conducted for the purpose of forming an opinion on the consolidating financial statements as a whole. The accompanying supplementary information on pages 33 and 34 is presented for purposes of additional analysis, and is not a required part of the consolidating financial statements. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S.

Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the consolidating financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidating financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidating financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidating financial statements or to the consolidating financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the consolidating financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2017, on our consideration of National Community Renaissance of California's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering National Community Renaissance of California's internal control over financial reporting and compliance.

Sacramento, California Taxpayer Identification Number:

June 30, 2017 22-1478099
Lead Auditor: Brian J. Brewer, CPA
APPENDIX 361
National Community Renaissance of California
Consolidating Statement of Financial Position
December 31, 2016
See Notes to Consolidating Financial Statements.
4 Assets
National
Community
Renaissance Housing
of California Affiliates Eliminations Total
Cash and cash equivalents 7,146,565 $ 11,081,171 - $ 18,227,736 $ Reserve for security deposits held in trust 1,004,280 2,573,648 - 3,577,928 Restricted cash 13,342,022 19,784,285 - 33,126,307
Accounts receivable, net 653,144 345,715 (327,177) 671,682 Advance due from affiliate, net 55,154,721 428,951 (48,280,034) 7,303,638 Developer fee receivable 9,191,876 - (8,541,509) 650,367 Prepaid expenses 239,692 558,846 - 798,538
Investments (25,719) - 744,597 718,878
Project development costs 2,272,336 - - 2,272,336
Property, equipment and improvements, net 88,562,627 691,637,021 (3,754,709) 776,444,939 Deferred costs, net - 3,400,537 - 3,400,537
Total assets 177,541,544 $ 729,810,174 $ (60,158,832) $ 847,192,886 $ Liabilities
Accounts payable 1,265,326 $ 9,738,591 $ - $ 11,003,917 $ Accrued expenses 2,557,836 74,921,919 (1,410,141) 76,069,614 Security deposits 1,023,655 2,511,381 - 3,535,036
Deferred revenue 3,862,374 373,588 (3,754,709) 481,253
Mortgages and notes payable, net 67,050,607 547,210,091 (36,126,865) 578,133,833 Due to affiliates - 12,332,814 (11,426,037) 906,777
Developer fee payable 399,652 8,459,991 (8,185,677) 673,966 Total liabilities 76,159,450 655,548,375 (60,903,429) 670,804,396 Commitments and contingencies - - - -
Net assets
Partners' equity - 74,261,799 (74,261,799) -
Unrestricted net assets, controlling 51,541,597 - (10,234,233) 41,307,364 Unrestricted net assets, non-controlling - - 85,240,629 85,240,629 Total unrestricted net assets 51,541,597 - 75,006,396 126,547,993 Temporarily restricted net assets 49,840,497 - - 49,840,497 Total net assets 101,382,094 74,261,799 744,597 176,388,490 Total liabilities and net assets 177,541,544 $ 729,810,174 $ (60,158,832) $ 847,192,886 $ Liabilities and Net Assets
362 APPENDIX
National Community Renaissance of California
Consolidating Statement of Activities
Year Ended December 31, 2016
5 National
Community Temporarily
Renaissance Housing Restricted
of California Affiliates Net Assets Eliminations Total
Revenues and gains
Rental income 18,143,945 $ 38,450,256 $ - $ - $ 56,594,201 $ Consulting, development and
partnership fees 8,792,973 31,481 - (1,508,743) 7,315,711 Management fees 4,049,871 - - (108,337) 3,941,534
Private donations - Hope
Through Housing 1,045,126 - - - 1,045,126
Grants, including release of
temporarily restricted net assets 1,014,802 12,786 1,228,439 - 2,256,027 Grants - Hope Through Housing 271,895 - - - 271,895
Laundry revenue 159,704 494,648 - - 654,352
Interest 840,539 39,464 - (63,726) 816,277
Other revenue 1,475,659 932,181 - - 2,407,840
39,960,816 35,794,514 1,228,439 (1,680,806) 75,302,963
Expenses
Program service expenses
Administrative 2,981,494 1,400,136 - - 4,381,630
Salaries and related expenses 3,145,082 4,541,076 - - 7,686,158 Utilities 1,976,098 5,470,856 - - 7,446,954
Operating and maintenance 3,873,740 8,692,460 - - 12,566,200 Professional services 443,172 1,561,883 - - 2,005,055
Taxes and insurance 1,271,526 2,103,370 - - 3,374,896
Interest 1,809,491 15,943,336 - (63,726) 17,689,101
Depreciation 2,658,346 22,050,040 - - 24,708,386
Amortization 68,250 665,312 - - 733,562
Management fees 1,246,095 4,526,676 - (1,617,080) 4,155,691 Other expense 109,485 866,949 - - 976,434
Total program service
expenses 19,582,779 67,822,094 - (1,680,806) 85,724,067 APPENDIX 363
National Community Renaissance of California
Consolidating Statement of Activities
Year Ended December 31, 2016
See Notes to Consolidating Financial Statements.
6 National
Community Temporarily
Renaissance Housing Restricted
of California Affiliates Net Assets Eliminations Total
General and administrative
expenses
Administrative 1,487,479 - - - 1,487,479
Salaries and related expenses 10,325,644 - - - 10,325,644 Operating and maintenance 129,151 - - - 129,151
Professional services 1,242,742 - - - 1,242,742
Taxes and insurance 118,014 - - - 118,014
Interest 310,095 - - - 310,095
Depreciation 359,166 - - - 359,166
Amortization 50,487 - - - 50,487
Other expense 95,968 - - 95,968
Total general and
administrative expenses 14,118,746 - - - 14,118,746
Total expenses 33,701,525 67,822,094 - (1,680,806) 99,842,813 Excess of revenues and gains
over expenses 2,092,989 - 1,228,439 - 3,321,428
Net loss (27,861,278) - - (27,861,278)
Attributable to non-controlling
interest - (27,368,666) - - (27,368,666)
Excess (deficit) of revenues
and gains over expenses
and losses attributable to
National Community
Renaissance of California 2,092,989 (492,612) 1,228,439 - 2,828,816 Write off of advances to related
party (3,171,604) - - - (3,171,604)
Excess (deficit) of revenues
and gains over expenses
and losses after write off of
advances to related party $ (492,612) (1,078,615) $ 1,228,439 $ - $ (342,788) $ 364 APPENDIX
National Community Renaissance of California
Consolidating Statement of Changes in Net Assets
Year Ended December 31, 2016
See Notes to Consolidating Financial Statements.
7 National
Community
Renaissance of
California
(controlling
interest)
Housing
Affiliates (noncontrolling
interest) Total
Net assets - unrestricted, December 31, 2015 42,878,591 $ 90,651,637 $ 133,530,228 $ Excess (deficiency) of revenues over expenses (1,571,227) (27,368,666) (28,939,893) Contributions - 22,404,263 22,404,263
Distributions - (446,605) (446,605)
Net assets - unrestricted, December 31, 2016 $ 85,240,629 41,307,364 $ 126,547,993 $ Net assets - temporarily restricted, December 31, 2015 48,612,058 $ - $ 48,612,058 $ Increase in temporarily restricted net assets 2,378,543 - 2,378,543 Release of temporarily restricted net assets (1,150,104) - (1,150,104) Net assets - temporarily restricted, December 31, 2016 $ - 49,840,497 $ 49,840,497 $ APPENDIX 365
National Community Renaissance of California
Consolidating Statement of Cash Flows
Year Ended December 31, 2016
8 Cash flows from operating activities
Decrease in unrestricted net assets $ (28,939,893)
Increase in temporarily restricted net assets 1,228,439 Adjustments to reconcile increase in net assets to net cash provided by operating activities
Depreciation and amortization 25,851,601
Bad debt expense 311,258
Write off of advances due from affiliates 3,717,605
(Increase) decrease in
Accounts receivable (202,536)
Developer fee receivable (650,367)
Security deposits held in trust (196,097)
Prepaids and other assets 39,611
Decrease (increase) in
Accounts payable and accrued expenses 19,706,987
Security deposits 132,802
Deferred revenue 100,805
Net cash provided by operating activities 21,100,215
Cash flows from investing activities
Investment in property, equipment and improvements and assets held for use (73,855,892) Proceeds from sale of rental property -
Advances to affiliates (561,469)
Payment of project development costs (1,828,089)
Purchase of investments (5,970)
Developer fees paid 333,361
Net change in restricted cash (317,367)
Net cash used in investing activities (76,235,426)
Cash flows from financing activities
Proceeds of mortgages and notes payable 67,020,054
Prinicpal payments on notes payable (34,831,027)
Repayment of amounts due to affiliates (75,950)
Distributions paid (446,605)
Capital contributions received from non-controlling interests 22,404,263 Payment of deferred costs (1,185,271)
Net cash provided by financing activities 52,885,464
Net decrease in cash and cash equivalents (2,249,747)
Cash and cash equivalents, beginning of the year 20,477,484 Cash and cash equivalents, end of year $ 18,227,737
366 APPENDIX
National Community Renaissance of California
Consolidating Statement of Cash Flows
Year Ended December 31, 2016
See Notes to Consolidating Financial Statements.
9 Supplemental disclosure of cash flow information
Cash paid during the year for interest 11,213,659 $
Significant noncash investing and financing activities
Accounts payable included in property, equipment and improvements and assets held for use $ 6,506,427
APPENDIX 367
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
10 Note 1 - Organization and nature of operations
National Community Renaissance of California ("NCRC"), formerly known as Southern California Housing Development Corporation, is a nonprofit organization formed to assist cities in California in the development of high-quality affordable housing. NCRC assists in revitalizing communities through acquisition and rehabilitation of existing housing or through construction of housing. NCRC owns affordable housing properties, provides property management and social programs to enhance the quality of life of its residents, and serves as general partner for affordable housing projects. NCRC's principal sources of revenue are rental income from tenants, grants, property management fees and consulting and development fees.

NCRC and its affiliates receive significant funding from federal, state and local government subsidies in various forms, including low-income housing tax credits, low-interest rate loans, grants, and rent subsidies for qualifying very-low, low- and moderate-income tenants.

Principles of consolidation
The accompanying financial statements include the accounts of NCRC and supporting entities in which NCRC and affiliates own 100% interest. Additionally, the financial statements for the year ended December 31, 2016 include the accounts of 61 limited partnerships in which NCRC owns a minority financial interest, but has a controlling interest. These entities are included in the consolidation in accordance with U.S. generally accepted accounting principles ("GAAP"). For the limited partnerships in which the nonprofit general partner (noted on pages 12 and 13) serves as the general partner, NCRC has determined that the presumption of control for the limited partnerships has not been overcome, and as a result, the limited partnerships have been consolidated. All significant intercompany balances and transactions have been eliminated in consolidation.

NCRC has an economic relationship with National Community Renaissance Development Corporation ("NCRDC"), a nonprofit organization, which has an overlapping board and shares employees and facilities. However, each organization has and maintains its separate corporate identity. Neither entity has any voting rights in the other and there are no contractual or oversight requirements imposed on either organization in favor of the other. NCRC has provided voluntary operating advances to NCRDC. As of December 31, 2016, the balance of advances due from NCRDC is $6,374,364, which is included in advances due from affiliates on the statement of financial position (see Note 11).

In accordance with GAAP, Reporting of Related Entities by Not-for-Profit Organizations, consolidation of the two organizations is not required. The total assets, liabilities, unrestricted net assets controlling, unrestricted net assets non-controlling, and revenues and gains and expenses and losses of NCRDC as of and for the year ended December 31, 2016 are approximately $64,000,000, $62,000,000, ($2,000,000), $4,000,000, $13,000,000 and $16,000,000, respectively.

Also included in the consolidation is Hope Through Housing Foundation, a separate 501(c)(3) entity. Hope Through Housing Foundation shares the same board of directors as NCRC, and is economically dependent on NCRC. In accordance with GAAP, it has been determined that control exists over Hope Through Housing Foundation, which has been included in the consolidation. 368 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
11 The not-for-profit supporting entities (identified as National Community Renaissance of California in the financial statements) consist of:

Southern California Housing Development Corporation of Rancho Cucamonga owns 100% of the following projects:

Monterey Village Apartments
Mountainside Apartments
Northgate Village Apartments
Sycamore Springs Apartments
Projects and organizations which are owned 100% by NCRC are as follows:

Arbor Villas LLC Renaissance Village Apartments
Avenida Serra GP, LLC RV Housing Partners
Cathedral Palms Apartments
Cimmaron Heights Apartments
River Canyon GP, LLC
San Antonio Gateway Housing Corp.

Clark Manor Apartments Savi Ranch II
Corona del Rey Signature at Valley Center
Hawthorne Terrace Apartments South Pace GP, LLC
Mission Cove Phase A Val 9 MGP, LLC
Mission Cove Family II Vista Terraza II
Mission Cove Senior Waterman Gardens
Rancho Verde Village West Mission Partners LLC
Rancho Verde Village GP, LLC
APPENDIX 369
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
12 The For Profit Housing Affiliates ("Housing Affiliates") are comprised of the following limited partnerships and limited liability companies, and respective NCRC owned nonprofit entities whom have or own general partner and managing member interests:

For profit housing affiliate Nonprofit general partner % Autumn Ridge Apartments, L.P. * SCHDC of Orange 0.0100% ANF Family Ptrs II, LP South Pace GP LLC 0.0100%
Avenida Serra Housing Partners, L.P. * SCHDC of Orange 0.0100% Bell Gardens Housing Partners, L.P. * SCHDC of Los Angeles 0.0100% Bell Housing Partners, L.P. * SCHDC of Los Angeles 0.0100% Bolt Housing Partners, L.P. * SCHDC of Orange 0.0100%
Cathedral Family Housing Ptrs LP * SCHDC of Inland Empire 0.0100% CG Affordable Housing Partners, LLC * National Community Renaissance of California 85.0000%
Citrus Grove Housing Partners, LP * SCHDC of Inland Empire 0.0100% Copper Hills Apartments, L.P. * SCHDC of Orange 0.0100% Corona de Oro Apartments, L.P. * SCHDC of Orange 0.0100% Courson Senior Partners, L.P. * SCHDC of Los Angeles 0.0100% Desert Meadows Housing Partners, L.P. SCHDC of Inland Empire 0.0100% Downey Housing Parthers, L.P. * SCHDC of Los Angeles 0.0100% Eagle Rock Housing Partners, L.P. SCHDC of Los Angeles 0.0100% East Rancho Verde Housing Partners, L.P. * SCHDC of Inland Empire 0.0100% EMI Housing Partners, L.P. SCHDC of Inland Empire 0.0100% Escondido Housing Partners, L.P. SCHDC of Orange 0.0100% Escondido Senior Housing Parnters, L.P. * SCHDC of Orange 0.0100% Executive Lodge Apartments, L.P. * SCHDC of Orange 0.1000% Fontana Housing Partners, L.P. * SCHDC of Orange 0.0120% Fontana II Housing Partners, L.P. * SCHDC of Orange 0.0050% Fontana III Housing Partners, L.P. * SCHDC of Orange 0.0050% Fontana IV Housing Partners, L.P. * SCHDC of Orange 0.0050% Inland Valley Housing Partners, L.P. SCHDC of Inland Empire 0.0100% Ken Tal Housing Partners, L.P. * SCHDC of Orange 0.0050% Malvern Housing Partners, L.P. * SCHDC of Inland Empire 0.0100% Mar Vista Union Housing Partners, L.P. * SCHDC of Los Angeles 0.0100% Mills Family Housing Partners, L.P. * SCHDC of Inland Empire 0.0100% Mission Cove Family Housing Partners, LP * SCHDC of Orange 0.0100% Mission Village Senior, L.P. * SCHDC of Inland Empire 0.0045% Montclair Family Housing Partners, L.P. * SCHDC of Inland Empire 0.0100% Montclair Senior Housing Partners, L.P. San Antonio Gateway 0.0100% Normandie Senior Apartments, L.P. * Normandie Senior Housing Partners 0.0100% Normandie Senior Housing Partners GP, LLC * SCHDC of Los Angeles 79.0000% Oceanside Housing Partners, L.P. * SCHDC of Orange 0.0100% 370 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
13 For profit housing affiliate Nonprofit general partner % Oceanside Senior Housing Partners, L.P. SCHDC of Orange 0.0100% Palmdale Senior Housing Partners, L.P. * SCHDC of Los Angeles 0.0100% Rancho Workforce Housing, L.P. * SCHDC of Inland Empire 0.0045% Renaissance Village Housing Partners, L.P. * RV Housing Partners GP, LLC 0.0100% Rialto Housing Partners, L.P. * SCHDC of Inland Empire 0.0100% Richmar Housing Partners, L.P. * SCHDC of Orange 0.0100% Riverside Housing Partners, L.P. SCHDC of Inland Empire 0.0100% San Marcos Housing Partners, L.P. * SCHDC of Orange 0.0100% Sante Fe Springs Housing Partners, L.P. * SCHDC of Los Angeles 0.0100% Santee Apartments, L.P. SCHDC of Orange 0.0100%
Savi Ranch Housing Partners, L.P. * SCHDC of Orange 0.0100% Spring Valley Housing Partners, L.P. * SCHDC of Orange 0.0100% UC Housing Partners, L.P. SCHDC of Orange 0.0100%
Val 9 Housing Partners, L.P. * Val9 MGP, LLC 0.0080%
Victorville Housing Partners, L.P. * SCHDC of Inland Empire 0.0100% Villa Serena Apartments, L.P. * SCHDC of Orange 0.0100% Vista Dunes Housing Partners, L.P. * Vista Dunes GP, LLC 0.0075% Vista Dunes GP, LLC * SCHDC of Inland Empire 75.0000%
Vista Terraza Housing Partners, L.P. SCHDC of Orange 0.0100% Waterman Gardens Partners I * WG PARTNERS 1 MGP, LLC 0.0066% Westlake Village Housing Partners, L.P. * SCHDC of Orange 0.0100% Woods Family Housing Partners, L.P. * Woods Family Housing Partners GP, LLC 0.0100%
Woods Family Housing Partners GP, LLC * SCHDC of Los Angeles 79.0000% Yorba Linda Housing Partners, L.P. * SCHDC of Orange 0.0100% Yucca Valley Senior Housing Partners, L.P. * SCHDC of Inland Empire 0.0100% * The audited financial statements of these entities, whose results are included in these financial statements, were not required to be audited in accordance with Government Auditing Standards.

Note 2 - Significant accounting policies
Accounting method
NCRC uses the accrual method of accounting which recognizes income in the period earned and expenses when incurred, regardless of the timing of payments.

Basis of presentation
NCRC is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Information is required to segregate program service expenses from general and administrative expenses.

In conformity with GAAP, contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support depending on the existence and/or nature of any donor restrictions.

APPENDIX 371
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
14 Use of estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and the accompanying notes. Actual results could differ from those estimates. Estimates of future operations were made by management in the calculation of the amount of developer fee revenue recognized under GAAP, the amount of expense allocated to an affiliate, and the assessment of the collectability of advances due from affiliates.

Cash and cash equivalents
NCRC considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Restricted cash
Restricted cash consists of replacement reserves, property tax and insurance escrows, operating reserves, debt service reserves and construction loan draw reserves. Such reserves are required by various financing authorities, lenders or stipulations in the applicable partnership or operating agreements.

Accounts receivable and bad debts
Tenant accounts receivable are reported net of an allowance for doubtful accounts. Management's estimate of the allowance is based on historical collection experience and a review of the current status of tenant accounts receivable. It is reasonably possible that management's estimate of the allowance will change. As of December 31, 2016, the allowance for doubtful accounts is $98,514.

Bad debt expense during the year ended December 31, 2016 was $311,258 and is included in rental income from tenants on the statement of activities.

Advances due from affiliates
The advances due from affiliates are reported net of an allowance for doubtful accounts.

Management's estimate of the allowance is based on expected future operating performance and other factors. It is reasonably possible that management's estimate of the allowance will change. As of December 31, 2016, there is no allowance for doubtful accounts.

Investments
NCRC records its investments on the cost basis of accounting, as determined by their ownership percentage and control. Such investments include the following entities: Housing Partnership Network Group Insurance Initiative; HB Housing Partners, L.P.; Anaheim Revitalization Partners, L.P.; Anaheim Revitalization II, L.P.; Anaheim Revitalization III, L.P.; and Anaheim Revitalization IV, L.P.

Project development costs
NCRC incurs costs in connection with properties it is considering for development as well as costs associated with projects in the initial stages of development. These costs include such items as market studies, purchase options, environmental study costs, legal and accounting costs. Project development costs are capitalized until such time as the project is no longer considered desirable or feasible, at which time the costs are expensed. Project development costs related to projects that are ultimately developed are subsequently recorded as receivables to be repaid by the applicable projects. During the year ended December 31, 2016, $8,591 of project development costs were expensed and included in other expense on the statement of activities. 372 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
15 Property, equipment and improvements
Property, equipment and improvements are recorded at cost. Expenditures for maintenance and repairs are expensed as incurred, while major renewals and betterments are capitalized. Costs of properties constructed or rehabilitated include all direct costs of construction, as well as carrying costs during the construction period and indirect costs of construction, supervision and management. Upon disposal of depreciable property, the appropriate property accounts are reduced by the related costs and accumulated depreciation. The resulting gains and losses are reflected in the statement of activities. Depreciation is computed using the straight-line method over the estimated useful lives ranging from 5 to 40 years.

It is NCRC's policy to capitalize expenditures for improvements, furniture, and fixtures and equipment exceeding $2,500.

Impairment of long-lived assets
NCRC reviews its long-lived assets and investments for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When recovery is reviewed, if the undiscounted cash flows estimated to be generated by the property are less than its carrying amount, management compares the carrying amount of the property to its fair value in order to determine whether an impairment loss has occurred. The amount of the impairment loss is equal to the excess of the asset's carrying value over its estimated fair value. No impairment losses have been recognized during the year ended December 31, 2016.

Debt issuance costs
Debt issuance costs, net of accumulated amortization, are reported as a direct reduction from the face amount of the mortgage loan payable to which such costs relate. Amortization of debt issuance costs is reported as a component of interest expense and is computed using an imputed interest rate on the related loan.

Deferred costs
Costs related to obtaining low-income housing tax credits are being amortized using the straightline method over the mandatory 15-year compliance period.

Costs related to obtaining leasehold interests are capitalized and amortized on the straight-line method over the life of the related ground lease.

The table below indicates each component within the deferred costs line item on the statement of financial position:

Tax Credit
Monitoring fees
Leasehold
interest Total
Deferred costs 2,837,480 $ 2,212,203 $ 5,049,683 $
Accumulated
amortization (1,179,053) (470,093) (1,649,146)
Deferred costs, net $ 1,742,110 1,658,427 $ 3,400,537 $ APPENDIX 373
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Notes to Consolidating Financial Statements
December 31, 2016
16 Estimated annual amortization for each of the next five years subsequent to December 31, 2016 is as follows:

Tax Credit
Monitoring fees
Leasehold
interest Total
2017 144,745 $ 40,222 $ 184,967 $
2018 135,359 40,222 175,581
2019 124,104 40,222 164,326
2020 117,063 40,222 157,285
2021 105,319 40,222 145,541
Derivative instruments
NCRC has entered into an interest rate swap agreement, which is carried on the statement of financial position at fair value. Changes in fair value are estimated and recorded in the statement of activities. The fair value of the interest rate swap has been calculated utilizing a third-party methodology that management believes is commonly employed (see Note 7).

Fair value measurement
The carrying amount of NCRC's cash and cash equivalents, receivables, payables and accrued expenses approximate fair value due to the short-term nature of these instruments. The fair value of the NCRC’s long-term notes receivable and notes payable is assessed by management based on analysis of underlying investments and historical trends. Impairment reserves are provided as necessary. It is impractical to estimate the fair value of the NCRC's financial guarantees because there are no quoted market prices for transactions that are similar in nature.

NCRC measures the fair value of its interest rate swap on a recurring basis in the financial statements. The following summarizes the three levels of inputs and hierarchy of fair value NCRC uses when measuring fair value:

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Partnership has the ability to access; Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and
Level 3 inputs are unobservable inputs for the asset or liability that are typically based on an entity's own assumptions as there is little, if any, related market activity.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level input that is significant to the fair value measurement in its entirety (see Note 7 for additional disclosures).

Non-controlling interest in limited partnerships and limited liability companies This amount represents the aggregate balance of investor limited partner or investor member equity interest in the Housing Affiliates that are included in the financial statements. The aggregate negative balances, if any, of limited partner or investor member interests prior to January 1, 2010 remain in NCRC's net assets.
374 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
17 Revenue recognition
Rental income is recognized as rents become due. Rental payments received in advance are deferred until earned. All leases between the projects and the tenants of the projects are operating leases.

Portions of the rental income are in the form of subsidy payments from the U.S. Department of Housing and Urban Development ("HUD") under Section 8 of the National Housing Act and a Project Rental Assistance Contract. Tenants are subsidized based upon their level of income. Rent increases require HUD approval.

NCRC earns contractor fees based on services provided in the development of projects of affiliated limited partnerships and wholly owned properties. Such fees are recognized when earned based on the estimated percentage of completion. The fees are capitalized into rental property on the limited partnerships' financial statements.

Developer fees are earned in connection with the construction and oversight of the development of properties. The developer fees are recognized as revenue commencing with the closing of a project's construction loan (the "Closing") based on the percentage of completion method, taking into account the total anticipated development costs and the potential operating deficit obligation through the period from the Closing through the end of the operating deficit obligation period (typically three years from the achievement of Breakeven Operations as defined in partnership agreements). Generally, NCRC utilizes the following formula to determine the amount of the developer fee earned as of a specific date: The developer fee multiplied by the fraction having as its denominator (i) the total development costs plus (ii) the total operating deficit obligation for the obligation period and as its numerator (i) the total development costs incurred to the specific date of calculation plus (ii) the total operating deficits funded as of the specific date of calculation. Upon construction completion, the remaining developer fee is recorded as an asset with a corresponding offset to deferred revenue if the amount of developer fee owed exceeds the amount of developer fee earned to such date in accordance with the preceding formula. In the event that a portion, or all, of the developer fee is not paid at the end of the development period (deferred developer fee), the deferred developer fee is generally assumed to be paid from the future cash flow of the property and thereby recognized when paid. Developer fees that are earned during construction and paid for with investor equity or project debt are capitalized. The deferred developer fees expected to be paid from property operations are eliminated in consolidation.

Laundry and cable income, and prepaid rent received in advance are deferred until earned.

Property management fee income is earned monthly based on the management agreement.

Private donations
Contributions are recognized as revenue when an unconditional promise, in substance, to give is received. All contributions and other types of revenue with restrictions imposed by the donor, if any, are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are released and reclassified to unrestricted net assets.

Grants
Grants received from government agencies and others, which are conditioned upon NCRC incurring certain qualifying costs or meeting other conditions, are recognized as an increase in temporarily or permanently restricted net assets. When the qualifying costs are incurred and/or the possibilities of not meeting the conditions are remote, such grants are reported as increases in APPENDIX 375
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
18 unrestricted net assets. In general, these conditions require NCRC to maintain ownership of the property and to continue to provide low-income housing as specified in the agreement.

Functional allocation of expenses
The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities. Directly identifiable expenses are charged to program and supporting services. Expenses related to more than one function are charged to program and supporting services based on systematic methods.

Income taxes
NCRC including Hope Through Housing Foundation has applied for and received a determination letter from the Internal Revenue Service ("IRS") to be treated as a tax exempt entity pursuant to Section 501(c)(3) of the Internal Revenue Code and did not have any unrelated business income for the year ended December 31, 2016. Due to its tax exempt status, NCRC and Hope Through Housing Foundation are not subject to income taxes. NCRC and Hope Through Housing Foundation are required to file tax returns with the IRS and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and NCRC and Hope Through Housing Foundation have no other tax positions which must be considered for disclosure. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2013 are subject to review by the IRS.

The Housing Affiliates are pass-through entities for income tax purposes and, are not subject to income taxes. All items of taxable income, deductions and tax credits are passed through to and are reported by their owners on their respective income tax returns. The Housing Affiliates' federal tax status as pass-through entities is based on their legal status as a partnership. The Housing Affiliates are required to file tax returns with the IRS and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Housing Affiliates have no other tax positions which must be considered for disclosure. While no income tax returns are currently being examined by the IRS, tax years since 2013 are subject to review by the IRS.

Advertising
Advertising and marketing costs are expensed as incurred.

Organization
Organization costs are expensed as incurred.

Change in accounting principle
During 2016, the Company adopted the provisions of Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"), which modifies the presentation of debt issuance costs and the related amortization. The change in accounting under ASU 2015-03 improves the reporting of debt issuance costs by no longer reporting them as assets.

It also improves the reporting of the related amortization by including it as a component of interest expense. ASU 2015-03 has been adopted by the Company on a retroactive basis. As a result, total assets as well as loans payable for the year ended December 31, 2015 have been reduced by the effect of the reclassification of debt issuance costs, net of accumulated amortization of $6,635,101.

Reclassifications
Certain items from the prior year financial statements have been reclassified to conform to the current year presentation.
376 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
19 Note 3 - Restricted cash
Regulatory Agreements with various state and local agencies requires monthly impound deposits for insurance premiums, property taxes, replacements and operating expenses. The restricted accounts are held by the various agencies and expenditures are subject to their supervision and approval. In addition, an operating expense reserve account was also established at the inception of the loan, which is required to be maintained until certain financial conditions are satisfied, as defined in the Regulatory Agreement.

Note 4 - Investments
On March 30, 2004, NCRC invested in the Housing Partnership Network Group Insurance Initiative, a cooperative of other real estate investment companies, whose purpose is to offer low-cost insurance and worker’s compensation to companies with a history of low-loss ratios. The investment is accounted for under the cost method of accounting since NCRC’s ownership is less than 20%. In 2004, NCRC purchased one share of Class A stock for $10,000, and 277 shares of Class B stock at $1,000 per share. In 2013, NCRC purchased 275 Class C shares at $555 per share. NCRC is entitled to dividend payments in proportion to their investment once they are declared. As of December 31, 2016, the investment in the insurance cooperative is $697,815.

Dividends in the amount of $115,292 were received during the year ended December 31, 2016, and are included in other income on the statement of activities.

NCRC consolidates its ownership interest in limited partnerships which it controls (see Note 1). As of December 31, 2016, there was a deficit balance in investment in limited partnerships of $744,597. Such amount was eliminated in consolidation.

Note 5 - Property, equipment and improvements, net
Property, equipment and improvements consist of the following as of December 31, 2016:

Land 109,791,277 $
Buildings 675,200,742
Improvements 145,507,535
Furniture, fixtures and equipment 30,968,357
Construction in progress 51,104,867
1,012,572,778
Less accumulated depreciation (236,127,839)
$ 776,444,939
APPENDIX 377
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
20 Note 6 - Mortgages and notes payable
Mortgages and notes payable are as follows as of December 31, 2016:

Lender Secured Entity
Interest
rate
Monthly
principal and
int or other
repymt terms Maturity
Principal
balance
Greystone Servicing Corp. NCRC / Arbor Villas, LLC 4.13% $ 27,487 11/2049 $ 5,930,796 Guaranty Federal Bank NCRC / Cathedral Palms Apartments 6.50% 5,057 01/2027 447,945 County of Riverside NCRC / Cathedral Palms Apartments 3.00% 948 12/2031 97,516 City of Cathedral NCRC / Cathedral Palms Apartments 0.00% (7) 01/2027 1,000,000 Redevelopment Agency of City of
Cathedral City NCRC / Cimmaron Heights Apts 0.00% (3) 12/2018 100,000 JPMorgan Chase Bank NCRC / Clark Manor Apartments 4.93% 7,849 08/2033 1,066,331 Long Beach Affordable Housing
Coalition, Inc. NCRC / Clark Manor Apartments 4.00% (1) 06/2058 550,000 JPMorgan Chase Bank NCRC / Corona Del Rey Apartments 3.00% 54,804 08/2017 2,754,516 County of Riverside NCRC / Corona Del Rey Apartments 3.00% 1,304 08/2028 152,987 City of Corona NCRC / Corona Del Rey Apartments 0.00% (7) 05/2051 762,400 City of Hawthorne RDA NCRC / Hawthorne Terrace Apts 3.00% (1) 10/2059 1,998,855 California Statewide Communities
Develelopment Authority NCRC / Hawthorne Terrace Apts 5.55% 28,329 10/2029 2,190,000 City of Hawthorne HOME NCRC / Hawthorne Terrace Apts 0.00% (1) 07/2020 207,645 City of Hawthorne NCRC / Hawthorne Terrace Apts 0.00% (1) 10/2059 250,000 City of Oceanside NCRC / Mission Cove Phase II 0.00% (4) TBD 1,135,258 City of Oceanside NCRC / Mission Cove Phase II 0.00% (4) TBD 1,955,244 California Housing Finance Agency SCHD / Monterey Village Apartments 7.25% 34,791 09/2026 2,929,479 California Housing Finance Agency SCHD / Mountainside Apartments 7.25% 44,171 09/2026 3,719,290 California Housing Finance Agency SCHD / Northgate Village Apartments 6.00% 33,444 09/2034 4,388,306 Victorville Redevelopment Agency SCHD / Northgate Village Apartments 3.00% (1) 12/2035 3,427,412 JPMorgan Chase Bank NCRC / Rancho Verde Village 2.75% (4) 04/2025 1,937,004 Victorville Redevelopment Agency NCRC / Signature at Valley Center 3.00% (1) 12/2061 1,394,841 HUD NCRC / San Antonio Gateway Housing
Corp 0.00% (6) 03/2066 10,604,000
City of Yorba Linda Savi Rancho II 3.00% (1) (a) 2,415,321 California Housing Finance Agency SCHD / Sycamore Springs Apartments 7.25% 30,186 09/2026 2,541,755 Housing Authority County of San
Bernardino NCRC / Waterman Gardens 215,720
City of San Marcos West Mission Apartments 3.00% (1) 05/2031 1,320,000 Commerce West Bank West Mission Apartments 5.62% (1) 09/2020 341,621 Citbank N.A. - AHP NCRC 0.00% (3) 09/2071 680,000
JPMorgan Chase Bank - AHP NCRC 0.00% (1) 05/2067 500,000 Citibank N.A.- AHP NCRC 0.00% (3) 04/2069 480,000
Century Housing NCRC Variable 06/2017 2,719,365
Hudson HT. LP NCRC 5.00% 04/2017 504,514
Wells Fargo Bank NCRC
Libor+1.8
8%+

3.58% Variable 09/2022 2,395,408
Housing Capital Company NCRC 6.75% (4) 06/2017 2,514,104 Wells Fargo Bank NCRC 3.75% (4) 11/2019 500,000
Wells Fargo Bank NCRC 2.00% (4) 11/2017 1,000,000
Wells Fargo Bank NCRC 2.00% (4) 11/2019 343,750
378 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
21 Lender Secured Entity
Interest
rate
Monthly
principal and
int or other
repymt terms Maturity
Principal
balance
Wells Fargo Bank NCRC 2.00% (4) 11/2019 156,250
Federal Home Loan Mortg Corp -
Freddie Mac ANF Family Partners II L.P. 4.53% (4) 01/2044 4,863,117 City of Fairfield ANF Family Partners II L.P. 3.00% (1) 12/2066 9,357,694 Cal HFA - MHSA ANF Family Partners II L.P. 0.00% (1) 12/2066 1,200,000 Fairfield HOME Funds ANF Family Partners II L.P. 3.00% (1) 08/2066 1,688,005 County of San Diego California
Statewide Communities Autumn Ridge Apartments, L.P. 3.00% (1) 02/2055 800,000 Redevelopment Agency of the City of
San Marcos Autumn Ridge Apartments, L.P. 3.00% (1) 08/2035 440,000 Redevelopment Agency of the City of
San Marcos Autumn Ridge Apartments, L.P. 3.00% (1) 01/2035 1,200,000 Redevelopment Agency of the City of
San Marcos Autumn Ridge Apartments L.P. 3.00% (1) 01/2035 2,994,503 Union Bank of California Autumn Ridge Apartments, L.P. 7.65% 63,732 08/2035 7,929,846 Citibank N. A. Avenida Serra Housing Partners, L.P. 5.48% 2,314 09/2044 429,577 Citibank N. A. Avenida Serra Housing Partners, L.P. 1.00% (1) 10/2070 190,000 City of San Clemente Avenida Serra Housing Partners, L.P. 0.00% (1) 12/2070 3,430,771 Federal Home Loan Bank - AHP Bell Gardens Housing Partners, L.P. 0.00% (3) 03/2064 284,000 California Community Reinvestment
Corporation Bell Gardens Housing Partners, L.P. 5.52% 13,186 07/2038 1,993,276 County of Los Angeles Bell Gardens Housing Partners, L.P. 3.00% (1) 03/2062 2,785,367 Bell Gardens Community Development
Commission Bell Gardens Housing Partners, L.P. 3.00% (1) 04/2060 3,812,203 Housing Authority of the County of Los
Angeles Bell Gardens Housing Partners, L.P. 3.00% (1) 03/2063 1,500,000 Community Devel Commission of the
County of LA Bell Housing Partners L.P. 3.00% (1) 03/2033 1,886,091 JPMorgan Chase Bank - AHP Bell Housing Partners L.P. 0.00% (3) 01/2034 240,000 JPMorgan Chase Bank Bell Housing Partners L.P. 6.25% 9,623 01/2034 1,061,946 Housing Authority of the County of Los
Angeles Bell Housing Partners L.P. 3.00% (1) 03/2033 1,000,000 JPMorgan Chase Bank Bolt Housing Partners L.P. 6.30% 35,000 11/2026 694,932 San Diego Housing Commission Bolt Housing Partners L.P. 3.00% (1) 12/2055 1,418,838 CA Community Reinvestment Corp Cathedral Family Housing Ptrs LP 7.25% 4,093 03/2028 568,264 County of Riverside Cathedral Family Housing Ptrs LP 1.00% (1) 07/2067 1,250,000 Cathedral City Cathedral Family Housing Ptrs LP 2.00% (1) 07/2062 4,006,162 Federal Home Loan Bank - AHP Cathedral Family Housing Ptrs LP - (1) 04/2067 590,000 CCRC (Wells Fargo bond trustee) Citrus Grove Housing Partners, L.P. 6.25% 5,100 07/2041 768,162 City of Rialto Citrus Grove Housing Partners, L.P. 0.00% (1) 07/2064 333,037 City of Rialto Citrus Grove Housing Partners, L.P. 0.00% (1) 11/2064 6,800,703 City of Rialto Citrus Grove Housing Partners, L.P. 0.00% (1) 11/2064 1,492,973 JPMorgan Chase Bank Copper Hills Apartments, L.P. 6.95% 51,509 06/2031 1,883,704 Community Devel Commission of
National City Copper Hills Apartments, L.P. 3.00% (1) 02/2054 4,454,037 Community Devel Commission of
National City Copper Hills Apartments, L.P. 3.00% (1) 06/2054 771,658 City of Corona Corona de Oro Apartments, L.P. 1.00% (4) 09/2055 149,900 Redevelopment Agency of the City of
Corona Corona de Oro Apartments, L.P. 3.00% (1) 03/2055 4,725,000 Berkadia Commerical Mortgage Corona de Oro Apartments, L.P. 7.25% 8,784 07/2032 982,533 Citibank Corona de Oro Apartments, L.P. 0.00% (3) 06/2032 181,873 Federal Home Loan Bank - AHP Courson Senior Partners, L.P. 0.00% (3) 01/2039 350,000 APPENDIX 379
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
22 Lender Secured Entity
Interest
rate
Monthly
principal and
int or other
repymt terms Maturity
Principal
balance
California Community Reinvestment
Corporation Courson Senior Partners, L.P. 6.88% 6,856 06/2039 980,554 City of Palmdale RDA Courson Senior Partners, L.P. 3.00% (1) 12/2060 2,850,000 State of Calif. HCD Courson Senior Partners, L.P. 3.00% (1) 06/2062 2,341,584 Riverside County Economic
Development Agency Desert Meadows Housing Partners LP 1.00% (1) 08/2066 7,698,385 AHP Funds Desert Meadows Housing Partners LP 0.00% (1) 01/2067 790,000 Department of Housing & Community
Development Desert Meadows Housing Partners LP 3.00% (1) 04/2069 5,954,244 City of Downey Downey Housing Partners, LP 3.00% (1) 02/2068 4,550,000 Housing Authority of the County of Los
Angeles Downey Housing Partners, LP 3.00% (1) 02/2068 2,386,720 Community Devel Commission of the
City of Downey - Developer Note Downey Housing Partners, LP 3.00% (1) 02/2068 450,000 Chase Downey Housing Partners, LP 5.88% 13,201 09/2045 2,175,761 East West Bank Eagle Rock Housing Partners, L.P 8.12% 4,243 06/2039 525,739 Los Angeles Housing Eagle Rock Housing Partners, L.P 4.45% (1) 02/2063 2,325,360 State of Calif. HCD Eagle Rock Housing Partners, L.P 3.00% (2) 06/2066 1,725,614 NHDC Tres Lomas, Inc. Eagle Rock Housing Partners, L.P 4.45% (1) 2/2062 692,428 Chase East Rancho Verde Village, L.P. 5.13% 3,761 11/2040 1,437,051 City of Rancho Cucamonga East Rancho Verde Village, L.P. 3.00% (1) 06/2062 6,500,000 County of San Bernardino East Rancho Verde Village, L.P. 3.00% (1) 03/2063 1,100,000 City of Montclair EMI Housing Partners, L.P. 3.00% (1) 04/2069 682,119 Wells Fargo Bank EMI Housing Partners, L.P. 0.00% (3) 10/2055 2,869,900 Wells Fargo Bank - AHP EMI Housing Partners, L.P. 0.00% (3) 03/2044 158,357 City of Escondido Escondido Housing Partners, L.P. 3.00% (1) 10/2055 2,090,635 Department of Housing & Community
Development Escondido Housing Partners, L.P. 3.00% (1) 04/2058 1,345,219 JPMorgan Chase Bank Escondido Housing Partners, L.P. 3.17% (4) 08/2026 966,000 CCRC Escondido Senior Housing Partners, L.P 7.37% (1) 12/2065 1,707,502 City of Escondido Escondido Senior Housing Partners, L.P 5.32% (1) 12/2065 3,051,230 City of Escondido Escondido Senior Housing Partners, L.P 3.00% (1) 12/2065 1,948,770 City of Escondido Escondido Senior Housing Partners, L.P 3.00% (1) 05/2065 500,000 City of West Covina Executive Lodge Apartments, L.P. 3.00% (1) 03/2038 5,617,867 Federal Home Loan Bank - AHP Executive Lodge Apartments, L.P. 1.00% (3) (c) 214,000 Chase Executive Lodge Apartments, L.P. 6.20% 12,472 01/2030 1,339,088 California Community Reinvestment
Corporation Fontana Housing Partners, L.P. 7.30% 10,284 09/2033 1,190,902 City of Fontana Fontana Housing Partners, L.P. 3.00% (1) 08/2033 1,136,700 Federal Home Loan Bank - AHP Fontana Housing Partners, L.P. 0.00% (3) 09/2033 500,000 California Community Reinvestment
Corporation Fontana II Housing Partners, L.P. 6.75% 8,820 12/2036 1,134,123 City of Fontana Fontana II Housing Partners, L.P. 5.00% (1) 02/2059 2,500,000 Bank of the West Fontana III Housing Partners, L.P. 0.00% (3) 03/2061 350,000 Fontana Housing Authority Fontana III Housing Partners, L.P. 1.00% (1) 06/2060 7,153,254 NorthMarq Capital, LLC Fontana III Housing Partners, L.P. 5.79% (4) 04/2036 1,582,000 California Community Reinvestment
Corporation Fontana IV Housing Partners, L.P. 6.50% (11) 04/2045 2,167,458 Fontana Housing Authority Fontana IV Housing Partners, L.P. 0.25% (1) 06/2065 6,834,539 County of San Bernadino Inland Valley Housing Partners, L.P. 3.00% (1) 06/2060 3,000,000 Rialto Housing Authority Inland Valley Housing Partners, L.P. 3.00% (1) 08/2063 14,054,480 380 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
23 Lender Secured Entity
Interest
rate
Monthly
principal and
int or other
repymt terms Maturity
Principal
balance
Department of Housing & Community
Development Inland Valley Housing Partners, L.P. 3.00% (2) 07/2064 8,362,659 U.S. Bank Inland Valley Housing Partners, L.P. 5.97% 15,408 08/2038 2,336,601 Federal Home Loan Bank - AHP Inland Valley Housing Partners, L.P. 0.00% (1) 02/2064 1,000,000 Housing Authority of San Diego Ken-Tal Housing Partners, L.P. 5.00% 1,691 01/2037 257,548 County of San Diego Ken-Tal Housing Partners, L.P. 3.00% (1) 10/2059 5,216,424 JPMorgan Chase Bank Malvern Housing Partners, L.P. 8.06% 3,699 10/2026 226,062 City of Rancho Cucamonga Malvern Housing Partners, L.P. 1.00% (1) 04/2058 4,000,000 County of San Bernadino Malvern Housing Partners, L.P. 3.00% (6) 12/2022 400,000 City of Pasadena NCRC / Mar Vista 3.00% (1) 04/2065 1,804,363.57 Federal Home Funds NCRC / Mar Vista 3.00% (1) 07/2066 1,564,783.00 JP Morgan Chase NCRC / Mar Vista Variable (4) TBD 4,349,285.82 Agency IV - First 5 LA NCRC / Mar Vista 3.00% (1) 06/2067 902,107.00 County of Los Angeles - CDC NCRC / Mar Vista 3.00% (1) 06/2067 855,000.00 Inclusionary Housing Fund NCRC / Mar Vista 3.00% (1) 07/2066 685,217.00 California Community Reinvestment
Corporation Mills Family Housing Partners LP 7.50% 5,943 09/2041 801,481 Montclair RDA Mills Family Housing Partners LP 3.00% (1) 04/2063 4,283,084 County of San Bernadino Mills Family Housing Partners LP 3.00% (1) 09/2041 2,000,000 City of Oceanside NCRC / Mission Cove Family I 3.00% (1) (a) 5,297,778 City of Oceanside NCRC / Mission Cove Family I 0.00% (1) (a) 5,900,000 California Housing Finance Agency NCRC / Mission Cove Family I 3.00% (1) 03/2071 943,470 Wells Fargo AHP NCRC / Mission Cove Family I 0.00% (3) 09/2073 890,000 Citibank, N.A. NCRC / Mission Cove Family I Variable (4) 04/2071 9,312,879 US Bank Mission Village Senior Apartments, L.P. Variable 17,893 03/2040 2,727,195 Riverside Redevelopment Agency Mission Village Senior Apartments, L.P. 3.00% (1) (8) 06/2065 10,472,118 Mississippi Valley Life Insurance Co.
(AHP) Mission Village Senior Apartments, L.P. 0.00% (2) 03/2065 500,000 County of San Bernadino Montclair Family Housing Partners, L.P. 5.00% (4) 05/2061 1,500,000 US Bank Montclair Family Housing Partners, L.P. 7.73% (4) 11/2037 1,224,863 Montclair RDA Montclair Family Housing Partners, L.P. 3.00% (4) 05/2061 1,943,765 Montclair Redevelopment Agency Montclair Senior Housing Partners LP 3.00% (1) 06/2062 1,528,280 County of Los Angeles - Home Funds Normandie Senior Housing Partners, L.P. 0.00% (1) 03/2065 5,501,007 County of Los Angeles - CDC Normandie Senior Housing Partners, L.P. 6.75% 4,864 05/2043 714,106 County of Los Angeles - CDC
Homeless Housing Normandie Senior Housing Partners, L.P. 3.00% (1) 10/2067 600,000 DCD - Homeless and Housing Program Normandie Senior Housing Partners, L.P. 3.00% (1) 01/2065 1,989,155 State of Calif. HCD Oceanside Housing Partners, L.P. 3.00% (1) 04/2064 4,151,008 MMA Oceanside Housing Partners, L.P. 5.75% 23,974 06/2049 4,225,086 City of Oceanside Oceanside Housing Partners, L.P. 3.00% (1) 06/2061 6,244,000 JPMorgan Chase Bank Oceanside Senior Housing Partners, L.P. 5.08% (4) 07/2037 783,543 City of Oceanside Oceanside Senior Housing Partners, L.P. 3.00% (1) 09/2063 3,772,340 Wells Fargo Palmdale Senior Housing Partners, L.P. 5.65% 14,476 12/2026 2,520,448 City of Palmdale Palmdale Senior Housing Partners, L.P. 3.00% (1) 06/2059 750,000 City of Palmdale Palmdale Senior Housing Partners, L.P. 3.00% (1) 06/2059 1,000,000 First Private Bank & Trust Palmdale Senior Housing Partners, L.P. 0.00% (6) 01/2066 600,000 California Community Reinvestment
Corporation Rancho Workforce Housing LP 6.04% 51,996 10/2040 8,512,027 APPENDIX 381
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Notes to Consolidating Financial Statements
December 31, 2016
24 Lender Secured Entity
Interest
rate
Monthly
principal and
int or other
repymt terms Maturity
Principal
balance
City of Rancho Cucamonga Rancho Workforce Housing LP 2.39% (1) 09/2063 25,868,857 California Community Reinvestment
Corporation Rialto Housing Partners, L.P. 7.49% 13,790 03/2031 2,285,191 Rialto Housing Authority Rialto Housing Partners, L.P. 3.00% (4) 01/2054 1,000,000 County of San Bernadino Rialto Housing Partners, L.P. 0.00% (3) 02/2056 250,000 Berkadia Commerical Mortgage Richmar Housing Partners, L.P. 5.12% 5,764 11/2049 1,098,549 City of San Marcos Richmar Housing Partners, L.P. 3.00% (1) 12/2068 3,397,973 J.P. Morgan Chase Renaissance Village Housing Partners, L.P. Variable (4) (8) - Greystone Servicing Corp. Renaissance Village Housing Partners, L.P. 5.60% 25,971 01/2035 4,524,000 County of San Bernardino Renaissance Village Housing Partners, L.P. 3.00% 2,978 05/2024 283,792 Department of Housing & Community
Development Riverside Housing Partners, L.P. 3.00% (4) 03/2061 2,930,000 US Bank Riverside Housing Partners, L.P. 6.21% 9,779 07/2036 1,341,002 City of Riverside Riverside Housing Partners, L.P. 3.00% (1) 06/2059 4,496,135 County of San Diego San Marcos Housing Partners, L.P. 5.98% (1) 01/2056 850,000 Red Mortgage Capital San Marcos Housing Partners, L.P. 7.93% 30,613 12/2032 3,333,156 San Marcos Redevelopment Agency San Marcos Housing Partners, L.P. 3.00% (1) 12/2055 2,931,040 US Bank Sante Fe Springs Housing Partners, L.P. 5.36% 27,298 04/2034 3,385,759 Los Angeles CDC Sante Fe Springs Housing Partners, L.P. 3.00% (1) 03/2032 742,596 City of Santa Fee Spring CDC Sante Fe Springs Housing Partners, L.P. 3.00% (1) 09/2057 1,843,667 HACOLA Sante Fe Springs Housing Partners, L.P. 3.00% (4) 03/2034 761,456 County of San Diego Dept of Housing
and Community Development Santee Apartments L.P. 3.00% (1) 12/2055 240,000 J.P. Morgan Chase Santee Apartments L.P. 5.95% (5) 05/2028 2,120,229 Community Devel Commission of the
City of Santee Santee Apartments L.P. 3.00% (1) 12/2055 3,016,248 Department of Housing & Community
Development Santee Apartments L.P. 3.00% (1) 12/2038 3,270,535 City of Yorba Linda NCRC / Savi Ranch 3.00% (1) (a) 13,652,782 FHLBSF AHP Funds - Citibank NCRC / Savi Ranch 0.00% (1) 09/2071 680,000 Citibank NCRC / Savi Ranch 3.00% (1) (a) 6,212,033
San Diego County Department Spring Valley Housing Partners, L.P. 3.00% (1) 02/2057 1,825,000 JPMorgan Chase Bank Spring Valley Housing Partners, L.P. 5.90% 12,850 10/2020 1,584,525 Brookfield University Commons LLC UC Housing Partners, L.P. 2.00% (3) 11/2059 1,463,164 California Community Reinvestment
Corporation UC Housing Partners, L.P. 5.60% 23,618 08/2037 3,465,864 Department of Housing & Community
Develop. UC Housing Partners, L.P. 3.00% (2) 07/2062 6,382,879 Wells Fargo Val 9 Housing Partners, L.P. Variable (4) 02/2017 8,019,920 PNC Bank Val 9 Housing Partners, L.P. 3.47% 41,791 11/2046 10,297,419 City of San Bernardino Val 9 Housing Partners, L.P. 3.00% (1) (a) 1,000,000 Housing Authority of San Bernardino Val 9 Housing Partners, L.P. 3.00% (3) (a) 729,000 County of San Bernardino Val 9 Housing Partners, L.P. 3.00% (3) (a) 1,350,000 County of San Bernadino Victorville Housing Partners, L.P. 3.00% (1) 09/2022 970,733 US Bank Victorville Housing Partners, L.P. 6.66% 11,689 10/2021 1,457,933 Victorville RDA Victorville Housing Partners, L.P. 3.00% (1) 09/2057 794,602 San Marcos Redevelopment Agency Villa Serena Apartments, L.P. 3.00% (4) 01/2027 5,717,212 FHLB-AHP Villa Serena Apartments, L.P. 0.00% (3) 05/2030 337,680 382 APPENDIX
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Notes to Consolidating Financial Statements
December 31, 2016
25 Lender Secured Entity
Interest
rate
Monthly
principal and
int or other
repymt terms Maturity
Principal
balance
Amerinational Villa Serena Apartments, L.P. 3.00% 1,280 06/2034 177,763 JPMorgan Chase Bank Villa Serena Apartments, L.P. 5.80% 13,761 6/2030 1,535,003 US Bank Vista Dunes Housing Partners, L.P. 6.90% 7788 11/2038 1,047,957 NCRC Vista Dunes Housing Partners, L.P. 1.00% (1) 12/2062 347,097 Western Pacific Housing Vista Terraza Housing Partners, L.P. 4.68% (1) 04/2060 4,673,244 US Bank Vista Terraza Housing Partners, L.P. 5.81% 25,343 05/2037 3,671,503 Department of Housing & Community
Development Vista Terraza Housing Partners, L.P. 3.00% (2) 05/2062 7,000,302 Wells Fargo Bank Waterman Gardens Partner 1, L.P. 3.65% (10) 10/2057 1,475,114 Wells Fargo Bank Waterman Gardens Partner 1, L.P. 2.94% (12) 04/2018 1,883,635 City of San Bernardino HOME Waterman Gardens Partner 1, L.P. 3.00% (1) (a) 660,600 San Bernardino County Housing
Authority Waterman Gardens Partner 1, L.P. 2.33% (1) 04/2073 663,000 City of San Marcos RDA Westlake Housing Partners, L.P. 3.00% (1) 12/2068 13,330,252 Berkadia Commerical Mortgage Westlake Housing Partners, L.P. 5.87% 3,930 06/2030 683,661 CCRC Woods Family Housing Ptrs LP 8.50% 10,765 11/2043 1,364,267 Los Angeles CDC (Industry) Woods Family Housing Ptrs LP 3.00% (1) 09/2063 1,249,201 Los Angeles CDC (Maravilla) Woods Family Housing Ptrs LP 3.00% (1) 09/2063 1,000,000 Los Angeles CDC (CDBG) Woods Family Housing Ptrs LP 3.00% (1) 09/2063 1,000,000 Los Angeles CDC (1st District) Woods Family Housing Ptrs LP 3.00% (1) 09/2063 1,000,000 Los Angeles CDC (HOME) Woods Family Housing Ptrs LP 3.00% (1) 09/2063 2,047,376 JPMorgan Chase Bank Yorba Linda Housing Partners, L.P. 6.07% 29,280 06/2035 4,357,278 Yorba Linda Redevelopment Agency Yorba Linda Housing Partners, L.P. 3.00% (1) 05/2061 12,726,406 Yorba Linda Redevelopment Agency Yorba Linda Housing Partners, L.P. 0.00% (1) 11/2039 750,000 Bonneville Mortgage Yucca Valley Senior Housing Ptrs, LP 4.21% 8,572 02/2056 843,773 Town of Yucca Valley Yucca Valley Senior Housing Ptrs, LP 0.50% (8) 04/2068 2,925,000 JPMorgan Chase Bank - AHP Yucca Valley Senior Housing Ptrs, LP 0.00% (3) 01/2030 1,180,000 San Bernardino County Yucca Valley Senior Housing Ptrs, LP 3.00% (1) (d) 1,622,830 Subtotal 584,487,265
Less debt issuance costs (6,353,432)
Total 578,133,833 $
(a) Maturity Date will be 55 years from completion of construction (b) Maturity Date will be 55 years from 50% occupancy.
(c) Loan is being forgiven and is in the process of being reconveyed. (d) Maturity Date will be 55 years from the Certificate of Occupancy. (1) Payment is based on residual receipts.
(2) Payment in the amount of .42% per annum.
(3) Full payment at maturity.
(4) Interest only monthly, principal payment at maturity. (5) Monthly payments of interest and semi-annual payments of principal. (6) Payments are deferred for 55 years.
(7) Principal payments are based on residual receipts.
(8) Will be converted into a permanent loan at the end of construction. Loan has not been extended. (9) Construction loan has been extended.
(10) Interest only until 11/1/2017 then monthly pmts. of $35,164.07 (11) Payment in the amount of .25% per annum.

APPENDIX 383
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
26 Financial instruments
To minimize the effect of changes in interest rates, in 2015 NCRC entered into an interest rate swap agreement with Wells Fargo under which NCRC pays interest at a fixed rate of 3.58% and Wells Fargo pays the interest on the mortgage at a variable rate. The variable rate under the Swap Agreement is based on the same notional amount as the underlying mortgage, which is $2,402,816.

The notional amount of the Swap Agreement is equal to the outstanding amount of the bonds. The Swap Agreement expires upon payment in full of the mortgage.

NCRC recorded an asset for the fair market value of the interest rate swap as of December 31, 2016 in the amount of $14,209, which represents the fair value of the future differences in interest to be paid and received under the Swap Agreement over the remaining term of the Swap Agreement. During the year ended December 31, 2016, a gain in fair market value of $19,423 has been realized and is included in other expense on the statement of activities.

Note Payable La Quinta Redevelopment Agency
During the year ended June 30, 2008, NCRC acquired a partially constructed project from the La Quinta Redevelopment Agency for $24,000,000 pursuant to the Amended and Restated Affordability Housing Agreement dated October 31, 2007. NCRC gave the La Quinta Redevelopment Agency a Note in the same amount of $24,000,000. The $24,000,000 represented the amount that the La Quinta Redevelopment Agency had spent on construction as of the date of the sale of the partially completed project to NCRC. The note does not bear interest and is automatically forgiven five years after the date that Vista Dunes Housing Partners, L.P. (an entity in which NCRC holds a general partner interest through an affiliate) executes its permanent loan (which occurred on February 1, 2009), as long as NCRC does not violate any of the agreement covenants. On October 31, 2007, NCRC sold the project to Vista Dunes Housing Partners, L.P. for $5,200,000. The sales price of $5,200,000 was determined by an appraisal commissioned by NCRC. NCRC believes that the fair value of the project's assets sold to Vista Dunes Housing Partners, L.P. is $5,200,000. Therefore, NCRC believes that the fair value of the project assets acquired from the Agency, and the note payable to the La Quinta Redevelopment Agency, is $5,200,000. The fair value of the $24,000,000 note at face value is set at $5,200,000. On February 10, 2015 the loan was re-conveyed and will be amortized over the remaining compliance period of the Vista Dunes project. Consequently, the entire $5,200,000 was classified as temporarily restricted net assets on the statement of financial position. Release of restriction on this grant commenced in February 2015 and will continue over a 46-year period on the straight line basis.

During the year ended December 31, 2016, $113,043 of temporarily restricted net assets was released, recognized as income and is included in other income on the statement of activities.

Amortization in subsequent years will be approximately $113,043 per year. As of December 31, 2016, NCRC has a balance of temporarily restricted net assets of $4,983,334 attributable to the loan forgiveness.

There were additional advances from the La Quinta Redevelopment Agency totaling $1,910,067.

The entire amount was forgiven and is now classified as temporarily restricted net assets on the statement of financial position. Release of restriction on this grant commenced in February 2015 and will continue over a 46-year period on the straight line basis. During the year ended December 31, 2016, $38,201 of temporarily restricted net assets was released, recognized as income and is included in other income on the statement of activities. Amortization in subsequent years will be approximately $38,201 per year. As of December 31, 2016, NCRC has a balance of temporarily restricted net assets of $1,754,603 attributable to the forgiveness of advances. 384 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
27 The annual maturities of long-term debt for each of the next five years and thereafter subsequent to December 31, 2016 are as follows:
2017 14,156,137 $
2018 3,836,745
2019 5,075,609
2020 4,581,045
2021 5,778,636
Thereafter 551,059,092
$ 584,487,265
Interest capitalized into project development costs and property, equipment and improvements totaled $608,323 for the year ended December 31, 2016.

Note 7 - Fair value
As of December 31, 2016, the fair value of the interest rate swap asset of $14,209 is classified within Level 2 of the fair value hierarchy. No other assets or liabilities are measured at fair value as of December 31, 2016. The following table presents the financial liability measured at fair value on a recurring basis as of December 31, 2016:

Level 1 Level 2 Level 3 Total

Interest rate swap at
December 31, 2016 $ - $ 14,209 $ - $ 14,209
On a recurring basis, NCRC measures its interest rate swap at its estimated fair value. In determining the fair value of its interest rate swap derivative, NCRC uses the present value of expected cash flows based on market observable interest rate yield curve commensurate with the term of the instrument. NCRC incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and that of the respective counterparty in the fair value measurement.

The credit valuation adjustments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by either the respective counterparty or the NCRC. However, NCRC determined that as of December 31, 2016, the impact of the credit valuation adjustments were not significant to the overall valuation of the swap. As a result, the fair value of the swap is considered to be based primarily on Level 2 inputs.

Note 8 - Extended affordability agreement
During the year ended June 30, 2008, NCRC received a $42,500,000 donation under the terms of an Extended Affordability Agreement with the Rancho Cucamonga Redevelopment Agency (the "Agency"), in which NCRC agreed to add certain units to the existing below market units currently specified at four affordable housing properties (the "properties") named in the agreement and to keep all the below market units at each property at the agreed upon below market rate for a minimum of 99 years. The agreement to keep the properties as regulated affordable housing for a minimum of 99 years is a restriction on NCRC. The restriction is removed as progress is made in satisfying the 99-year term of the rent affordability restriction in the agreement. Consequently, the entire $42,500,000 was classified as temporarily restricted net assets on the statement of financial position. Amortization of this grant (included in temporarily restricted net asset) commenced in December 2007 over the 99-year term on the straight line basis. During the year ended December APPENDIX 385
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
28 31, 2016, $429,294 of temporarily restricted net assets was released to unrestricted net assets.

Amortization in subsequent years will be approximately $429,300 per year. As of December 31, 2016, NCRC has a balance of temporarily restricted net assets of $38,646,544 attributable to the extended affordability agreement.

Note 9 - Pledge Agreement grant
On July 24, 1994, NCRC executed a Pledge Agreement with the Redevelopment Agency of the City of Rancho Cucamonga (the "Redevelopment Agency"). The purpose of the agreement is to enable the Redevelopment Agency to provide NCRC funds on an annual basis over a period of thirty years to assist NCRC in acquiring qualifying apartment projects from the Redevelopment Agency's setaside funds. As a result of this agreement NCRC acquired three qualifying projects. NCRC executed a Regulatory Agreement and Declaration of Restrictive Covenants for each of the three projects which impose tenant income and rent restrictions. Over time, the pledge agreement was amended to satisfy certain requirements of the Redevelopment Agency. Currently the Redevelopment Agency is providing annual funding in the amount of $337,600 for the three projects combined which is deposited into the project's replacement reserve accounts. During the year ended December 31, 2016, the Redevelopment Agency funded $508,800 under the Pledge Agreement, which is included in temporarily restricted net assets on the statement of activities. The funding is accounted for as temporarily restricted grant income. As expenditures from the replacement reserves are made, temporarily restricted net assets are released in the same amount.

During the year ended December 31, 2016, $503,893 of temporarily restricted net assets were released into unrestricted net assets. As of December 31, 2016, NCRC has a balance of temporarily restricted net assets of $4,229,434 attributable to the Pledge Agreement grant.

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 which calls for dissolution of all redevelopment agencies in the State of California. The successor agency is the City of Rancho Cucamonga, and continued funding of the pledge agreement grant is included in the Rancho Cucamonga Redevelopment Agency's Enforceable Obligation Payment Schedule.

Note 10 - Retirement plan
National Community Renaissance (the "Company"), a related party, maintains a Voluntary 401(k) Retirement Plan ("Plan") covering substantially all full-time employees of the NCRC. Participants are immediately vested in their contribution and the Company's special matching contribution plus earnings thereon. Vesting in the remainder of the accounts is based on years of service. A year of service is given for each Plan year in which a participant performs 1,000 or more hours of service.

After two years of service, a participant becomes 20% vested. Each service year thereafter will increase the participant's vesting by 20%, with 100% vesting after six years.

Discretionary contributions are determined by management and are allocated to all eligible employees based upon compensation. For the period ended December 31, 2016, $395,366 was contributed by the NCRC to the retirement plan.

Note 11 - Related party transactions
In the ordinary course of business, NCRC has significant related party transactions with affiliates. It provides a considerable amount of funding in connection with the development of projects. It also provides development services, construction management services and property management services. In certain cases, NCRC pays operating expenses on behalf of affiliates, which are reimbursed to NCRC on a monthly basis. In certain instances however, such as when individual 386 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
29 properties may be experiencing cash flow difficulties, repayment may be delayed, providing the individual properties with a source of funds.

NCRC earns construction contractor's fees, supervisory management and asset management fees, construction supervisory management fees, social services fees and property management fees in connection with services rendered to consolidated affiliated entities.

Advances due from affiliates
The amounts loaned by NCRC primarily represent development loans and other entity expenses to affiliates. These loans are unsecured and due on demand and some bear interest. As of December 31, 2016, such amounts due are $929,274.

From time-to-time, NCRC advances funds to NCRDC to cover operating deficits. As of December 31, 2016, such advances totaled $6,374,364, and are included in advances due from affiliates on the statement of financial position. NCRDC's management has provided to the management of NCRC their plans, as well as their underlying estimates and assumptions, to repay the advances.

Management of NCRC has reviewed the plans, estimates and assumptions and accordingly has determined that no allowance for doubtful accounts is required at December 31, 2016.

General and administrative expense allocation
NCRC allocates 7% of its total general and administrative expenses to NCRDC. The allocation is based on a combination of total organization head count and total properties managed by each organization.

Note 12 - Guaranties
In its role as general partner of the various Housing Affiliates, NCRC is liable for recourse liabilities.

These projects have been allocated low-income housing tax credits pursuant to Internal Revenue Code Section 42. In connection with their general partnership interests, certain guarantees have been made to the partnerships.

Development deficit guaranty
NCRC, or its affiliates, are obligated to pay any development cost deficits or, at the option of the investor limited partner, to purchase the interest of the investor limited partner if the project is not completed or if permanent financing has not been obtained. This obligation terminates at achievement of break-even operations, as defined. As of December 31, 2016, no amounts were due under this guaranty. As of December 31, 2016, the amount of potential obligation cannot be estimated.

APPENDIX 387
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
30 Operating deficit guaranty
NCRC, or its affiliates, are obligated to make non-interest bearing loans to cover operating cash shortfalls which are repayable through available cash flow. The guaranties are for a period of three to five years, commencing with the break-even date, as defined. As of December 31, 2016, no amounts were due under this guaranty. The following are the projects that are under the operating deficit guaranty, the period covered and the amount of the guaranty:

Project Period covered Amount
Normandie Senior Housing Partners, LP 01/12 - 01/17 200,000 $ ANF Family Partners II, LP 01/12 - 01/17 500,000
Woods Family Housing Ptrs LP 07/12 - 07/17 382,412
Westlake Village Housing Partners, LP 09/13 - 09/18 300,000 Downey Housing Partners, LP 06/15 - 06/18 307,000
Richmar Housing Partners, LP 11/14 - 11/19 300,000
Yucca Valley Housing Partners, LP 09/15 - 09/20 210,920 Mar Vista Union Housing Partners, LP 10/16 - 10/21 150,000 Savi Ranch Housing Partners, LP 12/16 - 12/21 300,000
Avenida Serra Housing Partners 03/16 - 03/21 110,000
Recapture guaranty
In the event of a tax credit recapture of low-income housing tax credits previously received by the investor limited partners or investment members in housing affiliates, NCRC shall be obligated to reimburse the investor limited partner or investment member for any recaptured credits plus any associated penalties, interest or additional taxes due, commencing with the breakeven date, as defined. NCRC shall not be liable for a recapture event caused by a change in law or actions of the investors or special limited partners. As of December 31, 2016, no amounts were due under these guaranties.

Note 13 - Concentration of credit risk
NCRC maintains cash and cash equivalents with various financial institutions. All reserves are held in NCRC's name. At times, these balances may exceed the federal insurance limits; however, NCRC has not experienced any losses with respect to its bank balances in excess of government provided insurance. Management believes that no significant concentration of credit risk exists with respect to these cash balances at December 31, 2016.

Note 14 - Commitments and contingencies
Grant and property use restrictions
Many of the properties owned and operated by NCRC were developed using monies provided by grants and restrictive, low-interest rate loans. The terms of these loans restrict the use of the property and generally require it be rented to low-income qualified tenants for the period of the grant or related loan term. NCRC also receives grants with restrictions other than property use. Failure to comply with the terms of the grant or the loans would result in a requirement to repay a portion or all of the proceeds received.

Rental assistance contracts
Four of the Housing Affiliates have entered into rental assistance contracts with HUD. These contracts have various terms and require the projects to operate as low-income housing properties and to obtain HUD approval of all rent increases.
388 APPENDIX
National Community Renaissance of California
Notes to Consolidating Financial Statements
December 31, 2016
31 Low-income housing tax credits
In connection with the Housing Affiliates who receive low-income housing tax credits, the Housing Affiliate's low-income housing tax credits are contingent on its ability to maintain compliance with applicable sections of Section 42. Failure to maintain compliance with occupant eligibility and/or unit gross rent, or to correct noncompliance within a specified time period, could result in recapture of previously taken tax credits plus interest. In addition, such potential noncompliance may require an adjustment to the contributed capital by the investor partner or member.

Litigation
NCRC is subject to lawsuits and claims, which arise out of the normal course of its activities. In the opinion of management, based upon the opinions of legal counsel, the disposition of any and all such actions, of which it is aware, will not have a material effect on the financial position of NCRC.

Economic concentrations
NCRC invests in rental property primarily in Southern California whose future operations could be affected by changes in economic or other conditions in that geographical area or by changes in federal low-income housing subsidies or the demand for such housing.

Other
As general partners in Housing Affiliates, NCRC may be subject to other liabilities, should the affected Housing Affiliates' assets become insufficient to meet their obligations. In the opinion of management, future revenues and the value of the underlying assets of each of these Housing Affiliates will be sufficient to meet ongoing and future obligations.

Note 15 - Subsequent events
Events that occur after the balance sheet date but before the financial statements were available to be issued must be evaluated for recognition or disclosure. The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events which provide evidence about conditions that existed after the balance sheet date require disclosure in the accompanying notes.

Management evaluated the activity of NCRC through June 30, 2017, the date the consolidating financial statements were available to be issued, and concluded that no other subsequent events have occurred that would require recognition in the consolidating financial statements or disclosure in the notes to consolidating financial statements.

APPENDIX 389
Supplementary Information
390 APPENDIX National Community Renaissance of California Consolidating Schedule of Financial Position December 31, 2016 NCRC Corporate Hope Through Housing Wholly Owned Eliminations Entries National Core of California Housing Affiliates Elimination Entries Total Assets Cash and equivalents 1,502,099 $ 359,301 $ 5,285,165 $ - $ 7,146,565 $ 11,081,171 $ - $ 18,227,736 $ Reserve for security deposits held in trust - - 1,004,280 - 1,004,280 2,573,648 - 3,577,928 Total cash and cash equivalents 1,502,099 359,301 6,289,445 - 8,150,845 13,654,819 - 21,805,664 Restricted cash 249,504 - 13,092,518 - 13,342,022 19,784,285 - 33,126,307 Accounts receivable, net 164,086 458,686 40,372 (10,000) 653,144 345,715 (327,177) 671,682 Advance due from affiliates, net 39,792,801 - 20,519,061 (5,157,141) 55,154,721 428,951 (48,280,034) 7,303,638 Developer fee receivable 9,191,876 - - - 9,191,876 - (8,541,509) 650,367 Prepaid expenses 65,225 4,859 169,608 - 239,692 558,846 - 798,538 Investment (25,719) - - - (25,719) - 744,597 718,878 Project development cost 8,768,163 - - (6,495,827) 2,272,336 - - 2,272,336 Property, equipment and improvements, net 4,199,333 529,911 85,020,641 (1,187,258) 88,562,627 691,637,021 (3,754,709) 776,444,939 Deferred costs, net 27,761 - 549,261 - - 3,400,537 - 3,400,537 Total assets 63,935,129 $ 1,352,757 $ 125,680,906 $ (12,850,226) $ 177,541,544 $ 729,810,174 $ (60,158,832) $ 847,192,886 $ Liabilities and Net Assets Accounts payable 241,700 $ 77,769 $ 945,857 $ - $ 1,265,326 $ 9,738,591 $ - $ 11,003,917 $ Accrued expenses 966,278 49,545 1,542,013 - 2,557,836 74,921,919 (1,410,141) 76,069,614 Security deposits 4,732 - 1,018,923 - 1,023,655 2,511,381 - 3,535,036 Deferred revenue 3,738,286 - 124,088 - 3,862,374 373,588 (3,754,709) 481,253 Mortgages and notes payable 11,793,387 - 55,834,242 - 67,050,607 547,210,091 (36,126,865) 578,133,833 Due to affiliates - 3,555,056 8,097,911 (11,652,967) - 12,332,814 (11,426,037) 906,777 Developer fee payable - - 399,652 - 399,652 8,459,991 (8,185,677) 673,966 Total liabilities 16,744,383 3,682,370 67,962,686 (11,652,967) 76,159,450 655,548,375 (60,903,429) 670,804,396 Net assets Unrestricted net assets, controlling 13,432,404 (2,556,204) 41,862,656 (1,197,259) 51,541,597 (744,597) (9,489,636) 41,307,364 Unrestricted net assets, noncontrolling - - - - - 75,006,396 10,234,233 85,240,629 Temporarily restricted net assets 33,758,342 226,591 15,855,564 - 49,840,497 - - 49,840,497 Total liabilities and net assets 63,935,129 $ 1,352,757 $ 125,680,906 $ (12,850,226) $ 177,541,544 $ 729,810,174 $ (60,158,832) $ 847,192,886 $ 33 APPENDIX 391 National Community Renaissance of California Consolidating Schedule of Activities Year Ended December 31, 2016 NCRC Corporate Hope Through Housing Wholly Owned Eliminations Entries National Core of California Housing Affiliates Elimination Entries Total Revenue and gains Rental income from tenants - $ (69,427) $ 18,213,372 $ - $ 18,143,945 $ 38,450,256 $ - $ 56,594,201 $ Consulting and development 10,813,788 1,321,902 - (3,342,717) 8,792,973 31,481 (1,508,743) 7,315,711 Management fees 4,241,792 - - (191,921) 4,049,871 - (108,337) 3,941,534 Private donations - HTHF - 1,045,126 - - 1,045,126 - - 1,045,126 Grants 382,121 - 632,681 - 1,014,802 12,786 - 1,027,588 Laundry revenue - - 159,704 - 159,704 494,648 - 654,352 Interest 513,489 258 326,792 - 840,539 39,464 (63,726) 816,277 Other 30,576 743,968 701,115 - 1,475,659 932,181 - 2,407,840 Total revenue 15,981,766 3,313,722 20,033,664 (3,534,638) 35,794,514 39,960,816 (1,680,806) 74,074,524 Expenses, gains and losses Administrative 1,487,479 2,406,862 574,632 - 4,468,973 1,400,136 - 5,869,109 Salaries and related expenses 10,325,644 1,315,547 1,829,535 - 13,470,726 4,541,076 - 18,011,802 Utilities 62,860 - 1,913,238 - 1,976,098 5,470,856 - 7,446,954 Maintenance and operating 129,151 673 3,873,067 - 4,002,891 8,692,460 - 12,695,351 Professional services 1,242,742 116,611 326,561 - 1,685,914 1,561,883 - 3,247,797 Taxes and insurance 118,014 38,322 1,233,204 - 1,389,540 2,103,370 - 3,492,910 Interest 310,095 - 1,809,491 - 2,119,586 15,943,336 (63,726) 17,999,196 Depreciation 359,166 12,426 2,645,920 - 3,017,512 22,050,040 - 25,067,552 Amortization 50,487 - 68,250 - 118,737 665,312 - 784,049 Management fees 22,906 - 1,646,926 (423,737) 1,246,095 4,526,676 (1,617,080) 4,155,691 Other expense 3,267,572 12,749 96,736 - 3,377,057 866,949 - 4,244,006 Total expenses 17,376,116 3,903,190 16,017,560 (423,737) 36,873,129 67,822,094 (1,680,806) 103,014,417 Excess (deficit) of revenues and gains over expense (1,394,350) $ (589,468) $ 4,016,104 $ (3,110,901) $ (1,078,615) $ (27,861,278) $ - $ (28,939,893) $ Increase (decrease) in unrestricted net assets (1,394,350) $ (589,468) $ 4,016,104 $ (3,110,901) $ (1,087,167) $ (492,612) $ - $ (1,571,227) $ Net assets - unrestricted, beginning of year 15,571,351 (1,966,736) 40,957,452 (1,197,258) 53,364,809 (251,985) (10,234,233) 42,878,591 Net assets - unrestricted, end of year 14,177,001 $ (2,564,756) $ 41,862,656 $ (1,197,259) $ 52,277,642 $ (744,597) $ (10,234,233) $ 41,307,364 $ Net assets - temporarily restricted, beginning of year 32,417,298 $ 215,315 $ 15,979,445 $ - $ 48,612,058 $ - $ - $ 48,612,058 $ Increase in temporarily restricted net assets 1,792,804 76,939 508,800 - 2,378,543 - - 2,378,543 Release of temporarily restricted net assets (451,760) (65,663) (632,681) - (1,150,104) - - (1,150,104) Net assets - temporarily restricted, end of year 33,758,342 $ 226,591 $ 15,855,564 $ - $ 49,840,497 $ - $ - $ 49,840,497 $ Non-controlling interest Beginning net assets - $ - $ - $ - $ - $ 80,417,404 $ 10,234,233 $ 90,651,637 $ Contributions - - - - - 22,404,263 - 22,404,263 Distributions - - - - - (446,605) - (446,605) Net income (loss) - - - - - (27,368,666) - (27,368,666) Ending net assets - $ - $ - $ - $ - $ 75,006,396 $ 10,234,233 $ 85,240,629 $ 34 392 APPENDIX
National Community Renaissance of California
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2016
35 Pass-through
Federal identifying
Federal grantor/pass through grantor CFDA entity Total federal Program title number number expenditures
HOME Investments
Partnership Program 14.239 N/A 2,913,444 $
Total U.S. Department of Housing and Urban Development 2,913,444 Total expeditures of federal awards 2,913,444 $
Department of Housing and Urban
Development, passed through from the City
of San Marcos, the City of Hawthorne, the
City of Riverside, the County of San
Bernadino, the County of San Diego, Long
Beach Affordable Housing, the County of
Riverside, the City of Victorville and the
County of Los Angeles:

APPENDIX 393
National Community Renaissance of California
Notes to Schedule of Expenditures of Federal Awards
December 31, 2016
36 Note 1 - Basis of presentation
The accompanying schedule of expenditures of federal awards includes the federal award activity of National Community Renaissance of California, under programs of the federal government for the year ended December 31, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Because the Schedule presents only a selected portion of the operations of National Community Renaissance of California, it is not intended to and does not present the financial position, changes in net assets, or cash flows of National Community Renaissance of California.

Note 2 - Summary of significant accounting policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance.

Note 3 - U.S. Department of Housing and Urban Development loan program National Community Renaissance of California has received direct loans under the HOME Investments Partnership Program. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. National Community Renaissance of California received no additional loans during the year. The balance of the loans outstanding at December 31, 2016 consists of:

CFDA Number Program Name
Outstanding
Balance at
December 31, 2016

14.239 HOME Investments Partnership Program $2,894,240
394 APPENDIX 37
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Board of Directors
National Community Renaissance of California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the consolidating financial statements of National Community Renaissance of California, which comprise the consolidating statement of financial position as of December 31, 2016, and the related consolidating statements of activities, changes in net assets and cash flows for the year then ended, and the related notes to the consolidating financial statements, and have issued our report thereon dated June 30, 2017 which included an emphasis of matter paragraph related to the adoption of a new accounting principle as indicated at page 3.

Internal Control over Financial Reporting
In planning and performing our audit of the consolidating financial statements, we considered National Community Renaissance of California's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the consolidating financial statements, but not for the purpose of expressing an opinion on the effectiveness of National Community Renaissance of California's internal control. Accordingly, we do not express an opinion on the effectiveness of National Community Renaissance of California's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control, that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether National Community Renaissance of California's consolidating financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

APPENDIX 395
38 Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Sacramento, California
June 30, 2017
396 APPENDIX 39
Independent Auditor's Report on Compliance for the Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance To the Board of Directors
National Community Renaissance of California
Report on Compliance for the Major Federal Program
We have audited National Community Renaissance of California's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on National Community Renaissance of California's major federal program for the year ended December 31, 2016. National Community Renaissance of California's major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal program.

Auditor's Responsibility
Our responsibility is to express an opinion on compliance for National Community Renaissance of California's major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance").

Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about National Community Renaissance of California's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of National Community Renaissance of California's compliance.

Opinion on the Major Federal Program
In our opinion, National Community Renaissance of California complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2016.

APPENDIX 397
40 Report on Internal Control over Compliance
Management of National Community Renaissance of California is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered National Community Renaissance of California's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of National Community Renaissance of California's internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of our testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Sacramento, California
June 30, 2017
398 APPENDIX
National Community Renaissance of California
Schedule of Findings and Questioned Costs
December 31, 2016
41 A. Summary of Auditor's Results
Financial Statements
Type of report the auditor issued on whether the consolidating financial statements audited were prepared in accordance with generally accepted accounting principles: Unmodified
Internal control over financial reporting:
*Material weakness(es) identified? Yes X No
*Significant deficiency(ies) identified? Yes X None reported Noncompliance material to consolidating
financial statements noted? Yes X No
Federal Awards
Internal control over major programs:
*Material weakness(es) identified? Yes X No
*Significant deficiency(ies) identified? Yes X None reported Type of auditor's report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to
be reported in accordance 2 CFR Section
200.516(a)? Yes X No
Identification of major federal programs:

CFDA Numbers Name of Federal Program or Cluster

14.239 Department of Housing and Urban Development
HOME Investment Partnership Program
Dollar threshold used to distinguish between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee X Yes No
B. Findings - Financial Statements Audit
None
C. Findings and Questioned Costs - Major Federal Award Programs Audit None
APPENDIX 399
400 APPENDIX
APPENDIX 401
402 APPENDIX
APPENDIX 403
404 APPENDIX
APPENDIX 405

406 APPENDIX
APPENDIX 407
408 APPENDIX
APPENDIX 409
410 APPENDIX
APPENDIX 411
412 APPENDIX
APPENDIX 413
414 APPENDIX
APPENDIX 415
416 APPENDIX
APPENDIX 417
418 APPENDIX
Uptown Open
Space Vision Plan
Plan not only benefits park planners
and city officials, but it also provides
the community a clear vision for a
greener community. Unique to the
development of the Plan is the level
of participation the community has
contributed throughout its entire
process.

As a result, there were 141 open space
ideas that were identified by community
members with approximately 1,500
votes cast for all of the potential
open space trends.

Once completed the Uptown Open
Space Plan will be transformative
to the economic, environmental and
public health of North Long Beach.

A prototype of the community’s top
priority project was conducted this
year in North Long Beach to celebrate
the efforts of the Plan.

The Uptown Open Space Plan identifies
new and creative opportunities to fill
needs in the community for publicly
accessible open space and recreation
facilities in North Long Beach.

The plan includes existing resources,
demographic snapshot, previous plans,
community voice, opportunity types,
relevant case studies, a comprehensive
open space vision, specific project
profiles and implementation strategies.

It also develops a blueprint for the
creation and preservation of open
spaces, recreation facilities and parks.

The plan provides a framework for
sustainability expanding public open
space access for residents in the
study area. The Uptown Open Space
To get robust
community input,
the project
team conducted
a series of engaging
and interactive
workshops asking
residents to identify
areas of greatest
open space need
with the dual
intent of teaching
participants the
challenges of
planning for park
and recreational
space.

UNIFY PARKS

TO CREATE CORE

NEIGHBORHOOD
PARKS

GREENWAY

NETWORK

TRAIL LOOP
AROUND

NEIGHBORHOOD

NETWORK
UNIQUE

NEIGHBORHOODS

OUTDOOR

ACTIVITY NODES
APPENDIX 419
Zocalo
at Tiny Tim
Zocalo at Tiny Tim is
the redevelopment
and repositioning of
an underutilizing strip
retail center that has
long lost its appeal.
had an extremely well attended
Sunshine Ordinance meeting for
the community, adjusting the
development program based on their
feedback as well. We have also been
able to meet with and communicate
with the various retail tenants of the
property. We have 100% occupancy
on the property and all of the
tenants have remained since we took
over as owners. We look forward to
continuing to work with them as we
move towards the build out of the
project. Additionally, we met with
a sub-committee of the Planning
Commission of the City of Santa Ana
early on in the design phase. We
were able to respond to their ideas
for improvement and incorporate a
number of their suggestions into the
plan.

The auto-oriented site configuration
typical to these developments
will serve as the platform for
creating community-serving uses
including outdoor common areas,
spaces for nonprofit partners
and affordable housing. This will
be done by retaining the two
primary commercial buildings
as well as the majority of the
current tenants, which provide
an ideal mix of neighborhoodserving retail, restaurants and services. The development team
has been committed to working
with the community in various and
substantive ways. We presented
our development plans to the
Artesia Pilar neighborhood at
their association meeting on
two occasions and incorporated
and number of their comments
into a revised plan. Further, we

EXISTING CONDITIONS
420 APPENDIX
Century Villages
At Cabrillo Master Plan
To extend
the vision of
dignified,
affordable housing
and economic
opportunity within
a supportive
community,
CVC worked with
City Fabrick to
update the
Community
Master Plan.
and multiple surveys, to engage
residents, service providers and
administrators, resident opinion was
gauged on subject matters related
to the Community Plan update.

Within the campus, City Fabrick has
also been involved in prior projects
including the design of a new transit
center, and design and redevelopment
of CVC’s Social Hall, a once historical
social gathering and dance space
for the erstwhile Navy community.

Currently open and functioning, it has
been transformed into a recreational
meeting and social space providing
services for veteran and non-veteran
individuals and families.

Reinforcing CVC’s goals for the Villages,
the new campus proposal is being
LEED –Neighborhood Development
certified.

A former naval housing campus serving
Long Beach ship yards, the Century
Villages At Cabrillo (CVC) has been
transformed into a vibrant supportive
housing community home to more
than 2,000 residents, including
veterans, families, and children, and
features a collaboration with 20
nonprofit and government agencies
that collectively provide residents
with safe, affordable housing and
access to the skills, tools, and services
needed to establish self-sufficiency.

As a nonprofit affiliate of Century
Housing, CVC is the community
development organization that owns,
and manages the 27 acre campus.

The Community Plan reflects the
current and future built environment,
social and housing needs; challenges;
and opportunities of the campus and
its residents. Through workshops,
meetings and community events,

Santa Monica City CouncilJanuary 11, 2022

Santa Monica City Council
January 11, 2022