Marina Towers Annex
Refinance and Building Rehab
Successor Agency to Former
Redevelopment Agency, and
Vallejo Housing Authority
Gillian Haen, Assistant City Manager
January 13, 2025
Location- 575 Sacramento St, VALLEJO
Background
1. Marina Towers Annex across from City Hall
• 67 affordable senior units (62 & older-78
average age)
2. Adjacent to Marina Towers 155-unit affordable
senior housing apartments
3. 2024-Marina Towers and Annex sold,
reassigned loan, entered into new parking lease
wit the City, refi and are currently doing
upgrades to the facility.
4. Marina Towers Annex current request is to
rehab the remainder of the facility through a
refinance loan and a subordination.
Owner intends to refinance the property loans:
o Fannie Mae loan, and
o U.S. Department of Housing and Urban
Development (HUD) loan
Requires subordination of the affordable housing
covenant to the loan docs. The subordination
agreement provides notice and performance
provisions which will help ensure the 40-year
affordability period will remain in effect until the
expiration date of the agreement through the
refinance action.
Proposal
Marina Towers Annex Rehab
• Marina Towers Annex was constructed in 1973 last
major renovation in 2001.
– Significant repairs are needed throughout the
interior and exterior of the buildings
– Wilshire Pacific Builders engaged to prepare a
rehabilitation cost plan which totals over $5.1 million ($90,000+ per unit).
• Includes replacement of all major systems like
windows, roofing, HAVAC; full unit upgrades
including new flooring, painting, appliances, doors,
cabinets, and countertops; and upgrades to the
elevator and fire alarm systems to meet the
current code.
– Rehab completed with minor disruption to the
residents and will significantly enhance quality of life
ADOPT A RESOLUTION APPROVING THE
PROPOSED SUBORDINATION AGREEMENT TO THE
AFFORDABLE HOUSING COVENANT TO ALLOW FOR
FINANCING AND REHABILITATION OF MARINA
TOWERS ANNEX, A SENIOR HOUSING PROJECT
Successor Agency to the former Redevelopment Agency of the City of Vallejo and the Vallejo Housing Authority are being requested to approve subordination of the Affordable Housing Covenant recorded as document number 2001-00145162 in the Solano County, California records office, to Owner's Fannie Mae loan in the amount of $9 million dollars. The original loan executed between the previous owner of the Project and the former Redevelopment Agency of the City of Vallejo in the amount of $420,000 has been paid in full.
Recommendation
CONTACT(S)
Gillian Haen
Assistant City Manager
[email protected]
1 January 13, 2026
Marina Towers Annex
Rehabilitation Plan
2 • Vitus and LIHC are both specialized in the acquisition and preservation of subsidized affordable properties in market areas where the need is greatest.
• Since founding in 1993, Vitus has developed and/or
acquired more than 15,000 units located across 30
states.
• With over $5.5 billion in holdings, LIHC Investment
Group is one of the largest property owners in the
country, with over 35,000 units of multi-family
affordable housing acquired.
Vitus + LIHC Overview
3 • Vitus and LIHC purchased with bridge
financing in September 2024 in
conjunction with Marina Towers.
• Three story low-rise residential building
totaling 57 units
• Built in 1973 and last rehabbed in 2001
Marina Towers Annex
575 Sacramento Street, Vallejo, CA 94590
4 Property Information
UNIT MIX
Bed Bath Subsidy
Source
Unit Size
SqFt
Unit Count Average
Tenant Rent
Average
Rental
Subsidy
Contract
Rent
Utility
Allowances
1 1 HUD
Section 8
541 54 $365.61 $1,373.89 $1,729 $21
1 (ADA) 1 HUD
Section 8
541 3 $365.61 $1,373.89 $1,749 $17
DESCRIPTION
• Amenities include on-site leasing office, laundry facilities and a community room. • Resident services will be implemented as part of the LIHTC renovation and will include adult education and health & wellness classes held in the upgraded community room.
5 • 100% of units are covered by Section 8 Housing
Assistance Payment (HAP) contracts with the
U.S. Department of Housing and Urban
Development (HUD).
• Current HAP Contract expires as of 10/1/2061,
plan to renew the contract for an additional 20-
year term at closing
• Upon completion of the renovation record a
Regulatory (LURC) which will be in place for 55
years, extending affordability to 2082.
• The resident portion of rent is capped at 30% of
their income.
Section 8 HAP Contract & Demographics
Resident Demographics
• Average Age of Residents: 78 years old
• Average Resident Income: $16,458
6 • Refinance the project for a rehabilitation with the following primary permanent sources of funding:
• 9% Low Income Housing Tax Credit (LIHTC)
• Permanent 40-year amortizing Fannie Mae MBS Loan
Project Plan
$8,434,157 $8,710,000
Equity Debt
7 Headline Copy plus second
line with three Column
Development Team
General Contractor:
Wilshire Pacific Builders
• Dedicated multifamily
team that specializes in
tax credit
rehabilitations.
• Has completed over
8,000 units in tax credit
renovations.
• Currently overseeing
the tax credit
renovation of the
adjacent property,
Marina Towers
Property Management:
John Stewart Company
• Full-service
management
including HUD and tax
credit compliance.
• Manages more than
400 properties, totaling
over 30,000 units in its
portfolio, all serving
residents in CA
• Extensive knowledge in
LIHTC, Section 8, HUD,
UFAS, ADA, NSPIRE and
QAP requirements.
• Licensed in 19 states;
has completed
approximately 250
projects to date.
• Has completed 24
projects with Vitus,
including 4 in CA.
Architect:
True Craft Architecture
8 SITE AND BUILDING EXTERIORS
• Replacement of all roofing and windows
• Elevator modernization
• Full repainting of the exterior
• Jetting of all sewer lines and repair of any
damaged lines
• Landscape repairs and tree trimming
• Community room upgrades and addition of
laundry room
• Site fence and gate upgrades
• Security camera upgrades
Rehabilitation Details
UNIT INTERIORS AND SYSTEMS
• Vinyl plank flooring to be installed throughout
• Kitchen upgrades, including energy star appliances,
cabinets and solid surface countertops
• Bathroom upgrades, with new faucets, tubs and
cabinets
• Interior drywall repair and painting
• NSPIRE compliant upgrades, GCFI in kitchens and
bathrooms, smoke detector placement, door
hardware, etc.
• Conversion of 25% of units to mobility accessible
and addition of hearing & visual impairment
upgrades within 4% of units
• Common area flooring and paint
TIMELINE: Construction is expected to begin in March 2026 and be completed 12 months thereafter, all units are expected to be completed by December 2026.
9 Unit Interior Design Concept
10 Common Area Design Concept
11 Model Unit - Marina Towers
12 • Approval of the presented resolution to allow for
subordination of the City’s existing Affordable
Housing Covenant to our planned Fannie Mae
financing ensuring long term preservation and
affordability of the Marina Towers Annex
community
Request of the City
13 Thank You
2607 Second Avenue, Suite 300
Seattle, Washington 98121
vitus.com
Evan Laws
Development Manager
(206) 832 - 1311
[email protected]