Resolution of the Governing Body
RESOLUTION NO. 2023-08-22-1209
A RESOLUTION OF THE GOVERNING BODY OF The City of Stockton SUPPORTING THE APPLICATION OF Visionary Home Builciers of CA, Inc. FOR THE LOCAL GOVERNMENT MATCHING GRANTS PROGRAM; APPROVING La Passeggiata
BUDGET FOR THE LOCAL GOVERNMENT MATCHING GRANTS PROGRAM WHEREAS:
A. On January 15, 2019, Governor Gavin Newsom signed Executive Order No.
N-06-19, which allows the production of Affordable housing on state-owned Excess Sites ("Excess Sites"). The Executive Order authorizes the Department of General Services ("DGS") and the Department of Housing and Community Development ("Department") to identify and prioritize Excess Sites for sustainable, cost-effective, and innovative multi-family Affordable housing projects.
B. On 0112912020 DGS and the Department selected VisionaryHomeBuildersofCA. Inc. develop Affordable housing at 622 E Lindsay Street, Stockton, CA 95202 (La Passeggiata) ("selected project") pursuant to Executive Order No. N-06-19. to
C. Chapter 111, Statutes of 2021 (Assembly Bill (AB) 140) makes several statutory changes for the purpose of implementing the housing and homelessness provisions of the Budget Act of 2021, which establishes the Excess Sites Local Government Matching Grants ("LGMG") Program (hereafter, "Program") to be administered by the Department.
D. The Program was allocated up to $30 million to provide funds for Predevelopment and Development Costs to selected projects that receive a financial contribution from a Local Government, as defined pursuant to Health and Safety Code section 50704.80(b ). Funding for the Program is made available pursuant to Health and Safety Code section 50704.81 (a)(2).
E. The Department has issued a Notice of Funding Availability ("NOFA"), dated November 15, 2022, for the Program pursuant to Health and Safety Code section 50704 .83(f).
------',_,__._......_._......'tf·ram.ce.qulr.es-eor.iti:ib.uti0A-fl=f>r-R.JTu.h.1.te�CWLit¥Y-.uoLf u8ilta1Lcas.kiltall□1-----------t1r------ La Passeggiata for Visionary Home Builders of CA, Inc. ("Applicant") to apply for Program funds pursuant to Health and Safety Code section 50704.82. Towards that end, Applicant is submitting an Application for Program funds ("Application") to the Department for review and consideration.
ATTACHMENT B
G. The Program requires a resolution from The City of Stockton pursuant to Health and Safety Code section 50704.82(b(1 )(A) approving the La Passeggiata budget, including all sources, and demonstrating the amount of Local Government Contribution to the Applicant for Predevelopment and Development Costs for La Passeggiata , and the requested amount from the Program.
THEREFORE, IT IS RESOLVED THAT:
1. The The City of Stockton supports
Visionary Home Builders of CA, Inc. submitting an Application to the Department to receive Program funds for La Passeggiata to develop Affordable housing on the state-owned Excess Site.
2. The The City of Stockton is authorized to submit the approved La Passeggiata Project Budget ("Attachment 1 ") and Anticipated and Committed Project Sources ("Attachment 2") to the Applicant to include in their Application. Attachment 1 and Attachment 2 demonstrate the requested amount from the Program, Local Loan and Fee waivers that will be allocated to the Applicant, and all other sources for Predevelopment and Development Costs associated with the development of Affordable housing on the state-owned Excess Site.
Attachment 1: La Passeggiata Budget
Attachment 2: Anticipated and Committed Project Sources PASSED AND ADOPTED at a regular meeting of the _ci
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City of Stockton held on ____ by the following vote:
Instruction: Fill in all four vote-count fields below. If none, indicate "O" for that field.
AYES: 7
ABSENT: (J ABSTAIN: CJ --
ATTACHMENT B
STATE OF CALIFORNIA
City Couno of _sto
_
ck
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ton
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I � l i 2-<A b,r2..4 City Council Clerk of the City of Stockton '-------�----- ---- --------'
State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said CityCouncil on this 2-2.....day of A1A�",,£,\:: , 202�.
[ L� 2-CA
, City Council Cl of
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Note: The attesting officer cannot be the person identified in the Resolution as the authorized signer.
ATTACHMENT B
ATTACHMENTS
Attachment 1: Project Budget
Attachment 2: Anticipated and Committed Project Sources
ATTACHMENT B
Attachments
Attachment 1: Project Budget (from Program Application)
ATTACHMENT B
Development Budget 11/9/2022
v1
Total Project
Costs
LAND COST/ACQUISITION
Land Cost or Value
Demolition
Legal
Land Lease Rent Prepayment
Total Land Cost or Value $0
Existing Improvements Cost or Value
Off-Site Improvements
Total Acquisition Cost $0
Total Land Cost/ Acquisition Cost $0
Predevelopment Interest/Holding Cost $25,000
Assumed, Accrued Interest on Existing Debt
(Rehab/Acq) I
Excess Purchase Price Over Appraisal
REHAB/LITA TION
Site Work I
Structures
General Requirements '
Contractor Overhead
Contractor Profit
Prevailing Wages ,
General Liability Insurance ,
Other: (Specify)
Other: (Specify)
Other: {Specify)
Other: {Specify)
Total Rehabilitation Costs $0
Total Relocation Expenses I
NEW CONSTRUCTION
Site Work
Structures $37,200,000
GAn1::m:il Ror,11i•omoo±5-I $1,860,QQQ
Contractor Overhead $2,604,000
Contractor Profit
Prevailing Wages
General Liability Insurance $372,000
Other: (Specify)·
ATTACHMENT B
Other: (Specify)
Other: (Specify)
Other: (Specify)
Total New Construction Costs $42,036,000
ARCHITECTURAL FEES
Design
I
$872,300
Supervision $417,000
Total Architectural Costs $1,289,300
Total Survey & Engineering $25,000
CONSTRUCT/ON INTEREST & FEES
Construction Loan Interest $3,195,359
Origination Fee $409,071
Credit Enhancement/Application Fee
Bond Premium $372,000
Cost of Issuance $219,091
Title & Recording $65,000
Taxes
Insurance $241,000
Other: Lender expenses $45,000
Other: (Specify)
Other: (Specify)
I
Total Construction Interest & Fees $4,546,521
PERMANENT FINANCING
Loan Origination Fee I
Credit Enhancement/Application Fee
Title & Recording
I
$10,000
Taxes
Insurance
Other: (Specify)
I Other: (Specify)
Total Permanent Financing Costs $10,000
Subtotals Forward $47,931,821
LEGAL FEES
Legal Paid by Applicant I $105,000
Other: Borrower Legal - Transaction $80,000
T-taJ-A,ttemey-Gost .. � 1'85--;cY0u
RESERVES
Operating Reserve $159,503
Replacement Reserve '
Transition Reserve
Rent Reserve
ATTACHMENT B
Other: Operating Subsidy Reserve $814,011
Other: (Specify)
Other: (Specify)
Total Reserve Costs $973,514
CONTINGENCY COSTS
Construction Hard Cost Contingency $4,240,800
Soft Cost Contingency $461,944
Total Contingency Costs $4,702,744
OTHER PROJECT COSTS
TCAC App/Allocation/Monitoring Fees 1 $67,995
Environmental Audit $50,000
Local Development Impact Fees $1,393,019
Permit Processing Fees $540,000
Capital Fees
Marketing $100,000
Furnishings 1 $50,000
Market Study $15,000
Accounting/Reimbursable $16,000
Appraisal Costs 1 $20,125
Other: Utility Connection Fees $650,000
Other: Predev loan interest and fees $1,234,431
Other: Syndication consulting $75,000
Other: (Specify)
Other: (Specify)
Other: (Specify)
Total Other Costs $4,211,570
SUBTOTAL PROJECT COST $58,004,649
DEVELOPER COSTS
Developer Overhead/Profit $2,200,000
Consultant/Processing Agent
Project Administration '
Broker Fees Paid to a Related Party
Construction Oversight by Developer
I Other: (Specify)
Total Developer Costs $2,200,000
TnT . .111 eeo IEC+ CQS-1=--.-$6�84;64:
End of Document
ATTACHMENT B
Attachments
Attachment 2: Anticipated and Committed Project Sources MHP/Committed $18,914,643
IIG/Committed $2,400,000
City of Stockton/Committed $600,000
City of Stockton impact Fee Waiver/Committed $1,393,019 LGMG-Uncommitted $6,000,000
General Partner Equity
Tax Credit Equity $30,896,987
Deferred Developer Fee
Total Sources
$60,204,649
ATTACHMENT B