Virginia Avenue Apartments
Status Update – August 11, 2026
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
• Project background
• Recap of Item 16B (May 26, 2026)
• City’s role as lender
• Updates to Housing Trust Funds web site
• CCSM – project and budget update
2 Tonight’s Presentation
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
• 40 rent-controlled units at 2033-2101 Virginia Avenue, constructed 1947-48
• January 2020: CCSM property acquisition ($15,183,670 City loan) • August 2025: City Council authorized loan of up to $35,650,000 for the rehabilitation (includes acquisition loan amount)
• November 2025: Start of construction
3 Background + Overview on Virginia Avenue Apartments
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
1. Engage with CCSM and provide a presentation to the City Council in June / July regarding the rehabilitation project at the Virginia Avenue Apartments (2033–2101 Virginia Avenue), including project scope, timeline, current construction status, remaining phases, and anticipated completion dates.
4 Item 16B – May 26, 2026
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
2. Have staff provide a full accounting of all City funds allocated, committed, or expended to date on the project, including:
o Original funding approvals
o Subsequent amendments or additional funding requests
o Sources of funds provided
o Total project budget versus actual expenditures
o Itemized cost breakdowns where feasible, including construction, change orders, consultants, relocation, staffing, project management, and contingency expenditures
5 Item 16B – May 26, 2026
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
3. An explanation regarding the recent notification from CCSM that the Virginia Avenue Apartment Project is approximately $3 million over budget. o What factors contributed to the budget overage?
o How is CCSM attempting to address the budget overrun on the project? 6 Item 16B – May 26, 2026
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
4. Coordinate a meeting for CCSM and the City to hear resident concerns about the Virginia Avenue Project, including habitability issues, project communication, relocation coordination, construction impacts, accessibility, and safety / quality-of-life issues. o Have the City coordinate with CCSM, such that CCSM develops a plan to address these concerns raised by residents.
o Consider working with CCSM to develop a public dashboard where project details would be posted for residents to access information related to status updates, milestones, expenditures, and other related matters.
7 Item 16B – May 26, 2026
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
5. Have City staff provide details regarding our role as the lender of funds to CCSM for the Virginia Avenue Apartment Project, and outline what the City does as the lender to ensure that the project being funded is delivered. 8 Item 16B – May 26, 2026
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
For All HTF-Funded Developments,
Housing staff:
For Virginia Ave:
• Weekly meeting with Development Team
including CCSM, architect, general
contractor and construction manager
• Twice-monthly site visits to review work
completed and potential change orders
• Review of monthly loan draw requests
• Weekly meeting with CCSM’s project
manager
• Monthly site visits, review of payment
applications and change order requests
(PACS)
9 What is the City’s Role as a Lender?
• Monitor/approve expenditures
• Conduct regular site visits
• Meet regularly with the
development team
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
• Project design
• Line-item budgeting
• Construction management
• Contracting
10 What is NOT the City’s Role as a Lender?
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
Housing Trust Funds
Dashboard
• The City’s Housing Division has a long-
standing Housing Trust Fund webpage,
https://www.santamonica.gov/housing-
trust-funds, which publicly shares funding
commitment letters, public meetings, and
reasonings for the City’s approval or denial
of HTF loans for affordable housing.
• For additional transparency into HTF loans
after City commitment, the Housing
Division will add a HTF Dashboard to this
webpage. The HTF Dashboard will clearly
show the amount of HTF funds committed
for each development in predevelopment
and construction phase, as well as the
amount of HTF funds disbursed.
11 Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
CCSM Updates
CCSM Team
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
VIRGINIA AVENUE APARTMENTS
2033-2101 Virginia Avenue
Santa Monica, CA
PROGRESS REPORT TO CITY COUNCIL
August 11, 2026
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
PROJECT TEAM
1. Developer – Community Corporation of Santa Monica
(Andrew Yick, Project Manager)
2. General Contractor – MARMS CONSTRUCTION
(Miguel Ramirez, President)
3. Architect – Egan Simon
(Rene Rodriguez, Director)
4. Construction Management – AMJ Construction
(Antonio Briones, Sr. Project Manager)
5. Property Condition Report – Partner Engineering
6. Prevailing Wage Compliance – CA Construction Compliance
7. Relocation Consultant – Monument
8. Movers – Chipman
9. Deputy Inspector - Twining
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
AGENDA
1. SCOPE OF WORK / CONSTRUCTION UPDATE
2. CURRENT PROJECT SCHEDULE
3. RESIDENT OUTREACH AND COMMUNICATION
4. COMMITTED FUNDING (at construction closing)
5. BUDGET OVERVIEW – pro forma vs. projected actual
6. BUDGET VARIANCE ANALYSIS
7. GAP FINANCING
8. QUESTIONS / COMMENTS
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
SCOPE OF WORK
Decision-Making Process
1. PROJECT CONDITION REPORT
❑ Cost = $3,700
❑ Suggest improvements to site (i.e., sidewalk), structural frame and building envelope, mechanical and electrical systems, interior units, and accessibility)
❑ “You don’t know what’s behind the walls” – i.e., furniture obstruction; conclusions can’t be all-inclusive ❑ Provide an educated guesstimate (i.e., opinion of costs) to remedy observed conditions ❑ City completed its own inspection
2. SCOPE OF WORK CONSIDERATIONS
❑ Fire and life safety
❑ Structural
❑ Water proofing
❑ Title 24 (energy efficiency)
❑ Americans with Disabilities Act (ADA)
❑ Fire sprinklers
❑ Architectural Review Board (ARB)
❑ All electric building (CCSM preference)
❑ Technical feasibility vis-à-vis resident requests
3. COST / BUDGET / FUNDING AVAILABILITY
❑ Value-engineer (i.e., community center)
❑ Trade-offs
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
SCOPE OF WORK
Create safe and modernized living environment
Remediate mold and asbestos
Remediate termite damage
Replace roof
Convert to an all-electric building (i.e., no gas)
Replace flooring in units
Install HVAC system
Install new plumbing
Upgrade electrical infrastructure and wiring
Install new electric kitchen appliances
Provide new kitchen cabinetry
Construct new laundry facility
New landscaping
Repair concrete sidewalk (off-site improvement) and walkways Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
CONSTRUCTION SCHEDULE / TIMELINE
Construction commencement – November 2025
Duration – 19 months
** Estimated Construction Completion – June 2027 **
WORK TO BE COMPLETED ACTUAL / PROJECTED
COMPLETION DATE
Unit Prep - remove additional furniture in all units December 8, 2025 Demolition January 8, 2026
New Framing April 2, 2026
New Plumbing April 2, 2026
Insulation May 28, 2026
Drywall Installation June 11, 2026
New Windows September 18, 2026 (P = projected)
Painting September 7, 2026 (P)
New Flooring October 5, 2026 (P)
Roofing October 22, 2026 (P) Kitchen Countertops November 16, 2026 (P) Common Areas – laundry room, courtyard December 25, 2026 (P) Sidewalk repair, fencing, landscaping, irrigation, final inspections January – May 2027 (P) Project Completion at TCO (i.e., ability to secure fire and life safety sign-off) June 2027 (P) Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
RESIDENT COMMUNICATION AND OUTREACH
• As requested by Council, conduct series of in-person meetings (quarterly) 6/18/26 – 1
st in-person meeting
❑ Next quarterly meetings: October 2026, January 2027, April 2027 • Provide monthly email updates with photos
• Tenants can email questions/concerns
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
RESIDENT COMMUNICATION AND OUTREACH
Resident Site Tours
July 13th (9 residents attended)
July 14th (13 residents attended)
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
PRE-RENOVATION
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
NEW FRAMING
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
NEW FRAMING
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
NEW PLUMBING
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
NEW ELECTRIC
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
NEW INSULATION
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
DRYWALL INSTALLATION
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
NEW LAUNDRY ROOM
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
BUILDING EXTERIOR
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
COMMITTED FUNDING
(at construction closing)
SOURCE AMOUNT
City of Santa Monica – loan $34,800,000
City of Santa Monica – Office of
Sustainability & Environment
$24,999
HUD CPF (grant) $850,000
LIWP (grant) $200,000
TOTAL $35,874,999
Projected Actual Budget (+ $2.4M) $38,307,795
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
PROJECT BUDGET
(Original vs. Projected Actual)
Assumptions:
• Project completion in June 2027
Budget:
• Original = $35,874,999
• Projected Actual = $38,307,795
• Projected Gap = $2,432,796
• Looking to bridge gap
Projected Budget Gap Drivers:
• Relocation +$1.6M
• Hard Costs +$2.7M (offset by $1.2M
contingency)
• Offset by lower than expected soft
costs(i.e., insurance, furnishings, predev
holding costs, etc.)
PROJECTED ACTUAL
BUDGET
VARIANCE
Line # Description
Original
A
Current B C
(B - A)
ACQUISITION / HOLDING COSTS
1 Land & Building Cost 13,665,100 13,665,100 13,665,100 0 2 Predevelopment Interest/Holding Costs 273,885 206,520 206,520 3 Total Relocation Expenses 1,777,747 2,106,546 3,385,206 1,607,458
HARD COSTS
4 Construction Contract 13,269,484 14,488,664 15,963,979 2,694,495 5 Hard Cost Contingency 1,257,206 38,026 0 -1,257,206
SOFT COSTS
6 Architect 896,174 896,174 896,174
7 Total Survey & Engineering 134,850 134,850 134,850
8 Bond Fees/CDLAC Application Fees 3,700 3,700 3,700
9 Title & Recording 25,000 47,032 47,032
10 Insurance 600,000 600,000 386,847 -213,153
11 Lender Expenses 25,000 25,000 25,000
12 Legal Fees 66,930 45,131 45,131
13 Capitalized Reserves 108,658 76,658 76,658
14 Other: 20-Year Operating Reserve 507,634 457,634 457,634 15 TCAC App/Allocation/Monitoring Fees 1,500 1,500 1,500 16 Environmental Audit 11,770 32,770 32,770
17 Local Development Impact Fees 233,646 233,646 233,646 18 Permit Processing Fees 105,984 337,339 337,339
19 Marketing 3,850 3,850 3,850
20 Furnishings 100,000 70,000 0 -100,000
21 Market Study 17,100 17,100 17,100
22 Accounting/Reimbursables 25,000 25,000 25,000
23 Appraisal 9,500 9,500 9,500
24 Other: Construction Manager 123,500 123,500 123,500
25 Other: Deputy Inspector 150,000 75,000 75,000
26 Other: Security-Operating Period 20,000 20,000 20,000 27 Other: Administrative & Organizational 14,000 14,000 14,000 28 Other: Prevailing Wage Compliance 87,500 87,500 87,500 29 Soft Cost Contingency 330,053 3,031 3,031
30 Developer Overhead/Profit 2,000,000 2,000,000 2,000,000 31 Syndication Consultant 30,228 30,228 30,228
TOTAL 35,874,999 35,874,999 38,307,795 2,432,796
BUDGET
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
Overall projected net budget gap of $2.4M
1. Hard costs projected to be over budget by $2.7M, driven largely by:
• Extensive re-framing
-- mold remediation and termite damage
• Plumbing damage and repair
• Change order process ($1.4M approved; ~$1.3M in expected COs)
2. Relocation $1.6M higher than budgeted:
• ~ 9/2023 relocation originally assumed to be multi-phased • ~ 7/2025 changed to single-phase (due to safety and existing infrastructure) • Spending more on temporary relocation rent
• Budget not updated
3. Relocation and hard cost overruns to be offset by ~$500k+ in savings in soft costs • For example, insurance and furnishings
PROJECTED BUDGET GAP
Key Drivers
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
PROJECT BUDGET
(Amount Drawn / Remaining Balance)
AMOUNT
DRAWN (City
Loan)
REMAINING
BALANCE
Line # Description
Original Current
ACQUISITION / HOLDING COSTS
1 Land & Building Cost 13,665,100 13,665,1000 13,665,100 0 2 Predevelopment Interest/Holding
Costs
273,885 206,520 105,918 206,520 0
3 Total Relocation Expenses 1,777,747 2,106,54622, 196 2,106,546 0
HARD COSTS
4 Construction Contract 13,269,484 14,488,664 1,754,832 8,358,113 6,130,552 5 Hard Cost Contingency 1,257,206 38,0260 0 38,026
SOFT COSTS
6 Architect 896,174 896,1740 716,123 180,051
7 Total Survey & Engineering 134,850 134,8500 84,332 50,518 8 Bond Fees/CDLAC Application Fees 3,700 3,7000 3,700 0 9 Title & Recording 25,000 47,0320 47,032 0
10 Insurance 600,000 600,0000 386,847 213,153
11 Lender Expenses 25,000 25,0000 24,800 200
12 Legal Fees 66,930 45,1310 25,799 19,333
13 Capitalized Reserves 108,658 76,6580 0 76,658
14 Other: 20-Year Operating Reserve 507,634 457,6340 0 457,634 15 TCAC App/Allocation/Monitoring
Fees
1,500 1,5000 1,500 0
16 Environmental Audit 11,770 32,7700 32,120 650
17 Local Development Impact Fees 233,646 233,6460 0 233,646 18 Permit Processing Fees 105,984 337,3390 337,339 0
19 Marketing 3,850 3,8500 0 3,850
20 Furnishings 100,000 70,0000 0 70,000
21 Market Study 17,100 17,1000 17,100 0
22 Accounting/Reimbursables 25,000 25,0001, 890 3,260 21,740 23 Appraisal 9,500 9,5000 2,500 7,000
24 Other: Construction Manager 123,500 123,50014, 000 49,433 74,067 25 Other: Deputy Inspector 150,000 75,0000 0 75,000
26 Other: Security-Operating Period 20,000 20,0000 0 20,000 27 Other: Administrative &
Organizational
14,000 14,0000 9,468 4,532
28 Other: Prevailing Wage Compliance 87,500 87,5003, 121 25,983 61,517 29 Soft Cost Contingency 330,053 3,0310 0 3,031
30 Developer Overhead/Profit 2,000,000 2,000,0000 500,000 1,500,000 31 Syndication Consultant 30,228 30,2280 30,228 0
TOTAL 35,874,999 35,874,999 1,901,957 26,633,843 9,241,156 BUDGET
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
CITY LOAN
Spent-to-Date as of July 2026
Loan:
• $34,800,000
Spent-to-Date:
• $26,633,843 (77%) Acquisition
52%
Construction
31%
Soft Costs*
9%
Relocation
8%
*Soft costs include expenses such as architecture,
permit fees, legal, insurance, etc.
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
POTENTIAL PATHS TO BRIDGE FINANCING GAP
• Congressional Funds
- Amount TBD
• BUILD Incentive Grant (CA Energy Commission)
- Potentially $1M
• Section 8 Project-Based Vouchers (up to 20)
- Potential to raise $1M in perm loan
- At least five (5) vacant units upon renovation completion - Need to use at least 14 vouchers
- Currently working to determine how many households are interested and will qualify • Developer Fee
- Council approved
- “Keeps the lights on” – pay CCSM overhead, organizational staffing, etc. - Potentially up to $1.5M
- Per loan doc – up for grabs ($500k already disbursed at loan closing) • Continue to explore other avenues to bridge gap
• CCSM is committed to completing the project successfully Item 11-B
August 11, 2026
Item 11-B
August 11, 2026
QUESTIONS / COMMENTS
Item 11-B
August 11, 2026
Item 11-B
August 11, 2026