ATTACHMENT F
DANNY DRIVE
SENIOR LIVING
CITY OF STOCKTON
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
REAL PROPERTY ACQUISTION NOTICE OF FUNDING
AVAILABILITY TO QUALIFIED NONPROFIT DEVELOPERS TO
SUPPORT AFFORDABLE HOUSING DEVELOPMENT
OCTOBER 19, 2023
ATTACHMENT F
Danny Drive Senior Living
Delta Community Developers Corp. (DCDC) is submitting this response to the City of Stockton’s Notice of Funding Availability released on October 18, 2023, announcing available CDBG funds for the purpose of property acquisition that will lead to the deve lopment of affordable housing. DCDC respectfully submits interest in $1.3 m illion in funding for the acquisition of 6303 and 6304 Danny Drive in Stockton.
Need for Senior Housing:
Nationwide, the number of seniors who are renters is expected to double between 2010 and 2030 from 25.8 million to 46 million. This sharp rise in senior citizens increases the urgency of developing affordable housing for seniors. Due to both population gr owth and soaring housing costs, the number of seniors over struggling to afford housing is growing.
Census data reported in the 2021 Amer ican Community Survey for the City of Stockton provides the following demographics for Stockton residents:
38,825 seniors aged 65 and older.
Average age – 72.6 years
12.3% of Stockton’s seniors are veterans.
40.3% are disabled.
39% of Stockton’s seniors live alone.
13% of Manteca’s seniors live below the poverty line. 61.2% of senior renters are rent bu rdened paying more than 30% of their income in rent.
30.5% of senior homeowners are ho using burdened paying more than 30% of their income in housing costs.
Average rent paid in 2021 was $1,034 per month.
Stockton had 15,823 residents betwee n the age of 60 and 64 years in 2021 further increasing the senior population in the coming years.
California is experiencing a statewide sh ortage of affordable senior housing.
There are few, if any, affordable ho using options to choose from for low- income seniors. Researchers and affordable housing advocates say the gap between older adults’ fixed incomes and skyrocketing rents will likely grow, making the severe problem for seniors even worse making this population as risk for homelessness.
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The City of Stockton Homeless Action Pl an set a goal for increasing the rate of single people exiting homelessness and into permanent housing from 6 to 8% or an additional 58 adults in hous eholds without children. This project will contribute to achieving that go al and preventing this vulnerable population from entering homelessness.
Eligible Uses, Property Type, URA Requirements and Appraisals:
6303 and 6304 Danny Drive is located with in the City of Stockton. The acquisition of this property will be for the purpose of constructing permanent affordable housing that will be occu pied by low- and moderate-income households. We propose to serve seniors with incomes at or below 50% AMI. The land is currently two va cant parcel and will not require any relocation. DCDC will obtain an apprai sal establishing the estimate of the property’s fair market value in accordance with 49 CFR 24.103 before closing escrow and will be submitted to the Ci ty for review and approval prior to acquisition.
Contact Information:
CDBG Real Property Acquisition Program form (see attached) o Additional Contact Information:
Development Partner:
DFA Development LLC
119 E. Weber Ave.
Stockton, CA 95202
Primary Contact: Danny Fred
[email protected]
(415) 595-4547
www.3leafholdings.com/dfa-development
Architectural Team
Artifex West Studio
2400 Kettner Blvd. #206
San Diego, CA 92101
Primary Contact: Charlie Linch, Principal
[email protected]
(760) 470-5295
www.artifexwest.com
Project Engineers
Dillon & Murphy Engineering
ATTACHMENT F
847 N. Cluff Ave., Suite A2
Lodi, CA 95240
Primary Contact: Joe Murphy
[email protected]
(209) 334-6613
www.dillonandmurphy.com
Experience and Capacity:
Development team and their roles:
Peter W. Ragsdale – HACSJ and DCDC Executive Director
Gerald “Chip” Jones – HACSJ Deputy Director
Melinda G. Hazard – HACSJ Director of Finance
Enrique Lopez – HACSJ Director of Construction Management Joshua Church – HACSJ Construction Project Manager
Jessica Quan– HACSJ Director of Occupancy and Housing Compliance Doi Do- HACSJ Director of Business Services
Tom Gerber – HACSJ Director of Administration and Public Housing Jennifer Magud – HACSJ Assistant Director of Development William Obra – HACSJ Comptroller
Usama Zuliqar – HACSJ Accountant II
Joshua Church- HACSJ Construction Project Manager
Michael Boettger – MLB Development and Construction LLC California Housing Partnership Corporation – financial consulting M. David Kroot – legal counsel with Goldfarb & Lipman LLP
DCDC is the 501(c)(3) non-profit inst rumentality of the Housing Authority County of San Joaquin (HACSJ). For over 82 years, the Housing Authority of the County of San Joaqui n (HACSJ) has provided and advocated for safe, affordable, and attractive living en vironments for low-income working families, elderly, and disabled resi dents of San Joaquin County. We are governed by a seven-member Board of Commissioners and have a dynamic workforce of 75 employees. This di verse and dedicated team blends innovation with decades of experience resulting in successful programs that continue to build a brighter future.
With a $80+ million operating budget resulting in significant economic benefit to our local economy, we cr eate and sustain vibrant communities, build superior affordable housing, and support the success of over 19,000 residents throughout San Joaquin County.
We own and/or manage:
ATTACHMENT F
• 986 public housing units
346 Low-Income Housing Tax Credit multi-family affordable units o Sierra Vista I – 115 family units
22 months (fire delayed construction)
Placed in Service October 8, 2019
LIHTC
HACSJ Public Housing Operat ing Fund Financing Program Loan
HACSJ Ground Lease
Housing Choice Project Based Voucher Contract for 83
units
31 Low Income Public Housing units
o Sierra Vista II – 100 family units
15 months (construction completed early)
Placed in Service June 12, 2020
LIHTC
HACSJ Public Housing Operat ing Fund Financing Program Loan
HACSJ Ground Lease
City of Stockton HOME Funds
Housing Choice Project Based Voucher Contract for 84
units
15 Low Income Public Housing units
o Medici Artist Lofts
20 months (PG&E delay)
Placed in Service December 31, 2019
LIHTC
City of Stockton HOME Funds
34 family units with PBV contract for 27 units
o Cottage Village – 48 units of senior housing with PBV contract 18 months construction
Placed in Service December 1, 2019
LIHTC
HACSJ Loan
HACSJ Ground Lease
City of Manteca Deferred Loan
San Joaquin Count
y HOME Loan
City of Stockton HOME Funds
Housing Choice Project Based Voucher Contract
o Victory Gardens - 49 units of pe rmanent supportive housing for homeless veterans
18 months of construction
Placed in Service November 30, 2022
LIHTC
ATTACHMENT F
VHHP
San Joaquin County Ground Lease
San Joaquin County HOME Funds
Housing Choice Project Based Voucher Contract
o Sonora Square – 38 units of pe rmanent supportive housing for persons who are in need of me ntal health services and are experiencing homelessness.
18 months construction
Construction completion October 2023
Occupancy October-December 2023
LIHTC
NPLH
HACSJ Ground Lease
San Joaquin County MHSA
San Joaquin County PLHA
City of Stockton HOME
City of Stockton CDBG
City of Stockton PLHA
HUD Capital Projects Funding
o Calaveras Quarters – 68 units of permanent supportive housing for youth aging out of foster care and other homeless
individuals.
Adaptive reuse converting 121 room motel
18 months construction estimate
Currently under construction
Occupancy anticipated for spring 2024
State of California Project Homekey
City of Stockton match funds
o Park Center Apartments – 51 units of permanent supportive housing for San Joaquin County Behavioral Health clients. Adaptive reuse and new construction
18 months of construction
Received a LIHTC award in August 2023
Construction will begin in January 2024.
San Joaquin County MHSA and PLHA funding
City of Stockton HHAP2, HOME-ARP, and HOME funds.
Permanent Supportive Housing (non LIHTC projects)
o Crossway Residences - 39 u
nits of permanent supportive housing
for San Joaquin County Behavioral Health clients.
o Turnpike & Sutter Commons - 11 units of permanent housing for homeless individuals and families
Creekside South Apartments - 40 senior units with a HUD Section 8 Multi-Family Housing Assistant Payment (HAP) Contract
• 17 market rate housing units
ATTACHMENT F
• 31 year-round farm labor housing units
• 288 seasonal agricultural migrant housing units
• Allocation of 5,495 Housing Choice Vouchers (HCV) including:
o 259 HUD-VASH
o 232 EHV
o 74 FUP
o 133 Mainstream
HACSJ and its nonprofit instrumentality, Delta Community Developers Corp., a l s o h a v e m u l t i p l e p r o j e c t s i n p r e d e v e l o p m e n t t o t a l i n g m o r e t h a n f i v e hundred units of additional affordable housing.
HACSJ remains, over eighty years late r, committed to this community and the needs of low-income residents an d their upward mobility as quality affordable housing is a platform for success. The table below describes HACSJ and DCDC history of projects an d those in the development pipeline.
Information includes project name, lo cation, number of units, year funded, year completed, total project cost, so urces of funding, and the status of project.
Project Name Population Served Project Cost Sources of Financing Partnerships Status Sierra Vista Phase 1
Stockton
Family
115 units
$41,362,517 LIHTC, Public Housing
Funds, Permanent
Debt, HACSJ Vouchers
and LIPH ACC subsidy
Central California
Housing Corporation
(CCHC), HACSJ, DCDC,
R4, HUD, Wells Fargo
Construction
completed and
Tenants
occupying
Sierra Vista Phase 2
Stockton
Family
100 units
$44,153,406 LIHTC, Public Housing
Funds, City of Stockton
HOME funds,
Permanent Debt,
HACSJ Vouchers and
LIPH ACC subsidy
Central California
Housing Corporation
(CCHC), HACSJ, DCDC,
US Bank, HUD
Construction
completed and
Tenants
Occupying
Cottage Village
Manteca
Senior
48 units
$13,625,920 LIHTC, permanent
debt, and City of
Manteca and San
Joaquin County HOME
funds, HACSJ Vouchers
DFA Development,
HACSJ, DCDC, City of
Manteca, SJC County,
CREA, Rabobank
Construction
Completion and
Tenants
occupying
Medici Artist Lofts
Stockton
Family
34 units
$15,168,615 LIHTC, permanent
debt, and City of
Stockton funds, HACSJ
Vouchers
DFA Development,
HACSJ, DCDC, City of
Manteca, SJC County,
CREA, Rabobank
Construction
Completion and
Tenants
occupying
Crossway
Residences
Stockton
Special Needs
Supportive Housing
37 units
$6,415,411 SJC Behavioral Health
and HACSJ Vouchers
SJC Behavior Health,
HACSJ, DCDC
Construction
Completion and
Tenants
occupying
Housing First
Stockton
Special Needs
Supportive Housing
for Homeless
11 units
$4,975,535 SJC HEAP, City of
Stockton CDBG &
CHDO funds, HACSJ
Vouchers
STAND, CVLIHC,
Stockton Shelter for
the Homeless, DCDC,
HACSJ, San Joaquin
County, City of
Stockton
Construction
completed and
occupied in 2021
ATTACHMENT F
Sierra Vista Homes
Stockton
Family
394 units
$3,102,542 HUD ‐ Public Housing
and Bonds
HUD and HACSJ Completed 1952
& 1957
Conway Phase 1 &
2 Stockton
Family
436 units
$4,871,578 HUD ‐ Public Housing
and Bonds
HUD and HACSJ Completed 1958
& 1962
Buthmann ‐
Krafft* Tracy
20 Units Senior &
15 Family Units
$975,000 HUD ‐ Public Housing
and Bonds
HUD and HACSJ Completed 1975
Tracy Homes Tracy Family
120 units
$1,030,982 HUD ‐ Public Housing
and Bonds
HUD and HACSJ Completed 1952
& 1958
Burton* Tracy Family
40 units
$590,000 HUD ‐ Public Housing
and Bonds
HUD and HACSJ Completed 1963
Mokelumne Manor
Thornton
Family
50 units
$452,837 HUD ‐ Public Housing
and Bonds
HUD and HACSJ Completed 1957
Sartini Manor
Thornton
Farm Labor
31 units
$1,393,200 USDA ‐ Rural
Development
USDA and HACSJ Completed 1978
Mountain View
Pilot Stockton
Family
12 units
$3,600,000 HUD ‐ Public Housing HUD and HACSJ Completed 2015 American Street
Stockton
Family
4 units
$502,000 HACSJ funds DCDC Completed
Eighth Street
Stockton
Family
1 unit
$103,727 Acquired from City of
Stockton
HUD and HACSJ Completed
Mourfield Ave
Apartments
Stockton
Family
4 units
$252,528 Acquired in 1995
Constructed with SJC
HOME loan and CDBG
funding awarded for
rehabilitation work,
HACSJ Vouchers 2019
San Joaquin County,
HACSJ & DCDC
Completed
Washington Street
Apartments Lodi
Family
6 units
$355,000 Acquired and
rehabilitated with
conventional loan,
HACSJ Vouchers 2019
HUD and HACSJ Completed 2001
Central Ave Duplex
Lodi
Family
2 units
$240,000 Constructed with
conventional loan
HACSJ and DCDC Completed
2007
Rose Creek Lots
Stockton
$703,804 40 build ready lots Built first 10 single family homes in
2022‐2023.
Additional 14
under
construction in
2023
Victory Gardens Veterans Housing
49 units
$26,980,163 new construction‐
County CESH, HOME,
CDBG, HCD VVHP, Tax
Credits, HACSJ
Voucher&
DFA Development,
HACSJ, DCDC, SJC
County, CREA, US Bank
Completed 2022
Sonora Square Special Needs
37 units
$14,770,289 MHSA Funds, City of
Stockton CDBG, HACSJ
Vouchers, Tax Credits
HACSJ, SJCBHS and
DCDC, CRDC, and
Enterprise
Currently under
construction and
will be completed
in Fall 2023
Calaveras Quarters Homeless Youth
69 units
$30,350,000 HCD HomeKey, City of
Stockton ARPA Funds,
and HACSJ Vouchers
DCDC, HACSJ, Parents
By Choice, Aspiranet,
Mary Magdalene
Community Service,
Lutheran Social
Services of Northern
California, STAND,
CVLIHC, Children’s &
Home of Stockton
Currently under
construction and
will be completed
in early 2024
ATTACHMENT F
Park Center
Apartments
Special Needs
50 units
$31,251,342 MHSA, PLHA, ARPA,
HOME, HHAP,HOME
ARPA, and Tax Credits
HACSJ, SJCBHS and
DCDC, CRDC, and US
Bank
Construction
beginning in
January 2024
Creekside South
Apartments Lodi
Senior
40 units
$6,197,382 Multifamily section
HAP Contract, City
CDBG, HOME
HUD and DCDC Acquired in July
2020 In pre‐
development for
rehab
In collaboration with our partners , HACSJ serves its residents with employment and educational opportunities, referrals, utility assistance, and recreational opportunities for our yo uth. As steadfast stewards of the communities within San Joaquin County, we advocate every day on behalf of our residents to create opportunities for improved health, education, and life.
Proposed Project::
The parcels located at 6303 and 6304 Danny Drive in Stockton (APN 094- 370-09 and 094-370-09), will allow for th e development of 110-units of affordable housing for seniors, 62 and over. A subset of these units will be allocated for seniors who are at risk of homelessness. The property is 3.03 acres and zoned High Density Residential (HDR). At 3.03 acres we can develop up to 112 units on the parcels.
DCDC’s partner, DFA Development LLC has executed a Letter of Intent to Purchase (LOI) (see attached). The agreement allows the LOI to be transferred to DCDC. We anticipate closing on the purchase by March 31, 2024 after completing all due diligence. Upon notification of an award this funding, we will immediately begin th e Phase 1 and Phase 2 (if required) environmental reviews and well and NEPA.
PROJECT TIMELINE
Task Projected Completion Date
Executed LOI October 19, 2023
Letter submitted to City for CDBG
Acquisition NOFA
October 23, 2023
City Award of CDBG Acquisition January 31, 2024
Acquire the property March 31, 2024
Order Environmental Report April 1,2024
Start CDBG and NEPA Clearance April 1, 2024
Environmental Report May 1, 2024
CDBG and NEPA Clearance July 1, 2024
Apply for Tax Credits July 2024
Tax Credit award September 2024
ATTACHMENT F
Danny Drive Senior Living will provid e 100% percent affordable units and will include a mix of 1- and 2-bedroom units and feature a community room for social engagement. The project may be broken down into two phases as further evaluation of financing is flushed out.
The project will serve low and very lo w-income seniors with incomes no higher than 50% of San Joaquin Coun ty median income. HACSJ can provide rental assistance for all residents th rough rental subsidy from the U.S.
Department of Housing and Urban De velopment’s Housing Choice Project- Based Voucher (PBV) program. The income set-asides will be at 30%, 40% and 50% of annual area median income (AMI).
In addition to the deeply affordable income-based rents (seniors will pay no more than 30% of their income to wards rent), wrap-around supportive services including a community center with several amenities such as offices for supportive services, manager’s o ffice, laundry facility, multi-purpose room for events and classes, and comp uters for resident use will be made available.
The project will be built within the City of Stockton design guidelines and will meet all of the City’s requirements. All of the units will incorporate universal design elements, which include, but are no t limited to the following: no-step entries, minimum 34-inch doorways and passageways, accessible bathrooms with reinforced grab bars, hallway widths of at least 42-inches, and levered door handles and faucets. In addition, 5% of all first-floor units will be fully accessible and all adaptable for those individuals requiring adjustments in their units for ADA accessibility.
Within each unit, residents will directly benefit from standard features such as Energy Star® rated refrigerators and dishwashers, low flow toilets, sink disposals, ranges with ovens as well as generous counter, cabinets, and storage space throughout the unit. All aspects of building construction will comply with quality construction standards to ensure longevity and safety of these high-quality structures.
If awarded these funds, the financial plan is to seek out any and all eligible funding sources to fill the funding gap in financing and increase the projects competitiveness for 9% Tax Credits. Funding for consideration includes State of California Multifamily Housing Program (MHP), San Joaquin County Mental Construction Start March 2025
Construction Completion September 2026
ATTACHMENT F
Health Services Act Funding, Faircloth to RAD, and any other funding opportunities for affordable, senior or homeless permanent housing. HACSJ will subsidize all of the affordable units with project-based vouchers to ensure that senior units remain affordable for the long term with a 20-year value of over $15 million. This subsidy will also contribute to the competitiveness of applications for Low-Income Housing Tax Credits which will be a necessary component of the capital stack required for this project.
DCDC anticipates that the first 55-unit phase will cost approximately $29 million. Tax credit equity, permanent financing, and other grant/funding opportunities will create the necessary capital stack.
ATTACHMENT F
CDBG Real Propperty Acquisition Program
Nonprofit Housing Developers Company Information Sheet
Developer Information – Please Print
Company Name
Company Address
Company Website
City of Stockton Business
License Number
Federal Tax I.D. Number UEI Number
Email
Executive Director Information – Please Print
First Name Last Name
Email
Phone Number
Email Address
Project Manager Information (direct contact for day to day communications) – Please Print First Name Last Name
Email
Phone Number
Email Address
Proposed Property Information
Property Address
Parcel Square Footage Site Control
Property Sales Price
APN
AMI LEVELS
Building Square Footage
Current number of Units Planned Number
of Units
Target Population
68-0434502
Delta Community Developers Corp.
2575 Grand Canal Blvd. Ste 220
www. hacsj.org
[email protected]
Peter W. Ragsdale
[email protected]
(209) 460-5060
[email protected]
Jennifer Magud
[email protected]
(209) 460-5073
[email protected]
HYNJST7DM9Q8
64303
6303 and 6304 Danny Drive, Stockton, CA 95210
094-370-09 and 094-370-27
30%, 40% and 50% AMI
3.03 acres
Purchase and Sales
Agreement
0, currently vacant land 110 units in two Phases
Extremely low and low income seniors with a subset that are at risk of homelessness 2 buildings each approximately $35,370 square feet each
ATTACHMENT F
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6303 Danny Dr, Stockton, CA 95210
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6303 Danny Dr
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