Presentation - San Diego Housing Commission

San Diego Housing Commission
Torrey
Vale Apartments
San Diego
Housing Commission
Final Bond Authorization for Torrey Vale
SDHC
Board
Meeting
Trolley
Residential
November
20, 2015 and Preliminary Bond Items
Loan Modification
February 13, 2015
Ted Miyahara
Director of Housing Finance
Real
Estate Division
J.P. Correia
Real Estate Manager
J.P.
Correia
Real
Estate Division
Project
Manager
San Diego
Housing Commission
Real Estate Division
SDHC – Torrey Vale Apartments
Partnership Development
Recommendation
Recommend that the Housing Authority of the City of San Diego:
Authorize the issuance of up to $7,000,000 in tax-exempt multifamily
housing revenue bonds to fund construction of Torrey Vale
Apartments, a 28-unit affordable rental housing development.
San Diego Housing Commission
Slide #2
SDHC – Torrey Vale Apartments
Partnership Development
Development Summary
• Proposed 28 units of new construction rental housing for families in
the Pacific Highlands Ranch neighborhood, North City Future
Urbanizing Area, City Council District 1.
• Vacant land (approximately 2 useable acres) located west of Rancho
Santa Fe Farms Road and South State Route 56 (Ted Williams
Freeway.
• Land is owned by master developer Taylor Morrison of California LLC
of Irvine.
• Satisfies the inclusionary requirements for the master developer’s
market-rate units.
• Property to be sold to Chelsea Investment Corp’s Torrey Vale CIC LP
San Diego Housing Commission
Slide #3
SDHC – Torrey Vale Apartments
Partnership Development
Development Summary (Cont.)
• Experienced developer: Chelsea Investment Corporation.
• Chelsea is in compliance with previous loans.
• Contractor: Emmerson Construction Inc., a Chelsea affiliate.
• Financing to include an estimated $4,409,981 of 4% tax credits and up
to $7,000,000 tax-exempt multifamily bonds.
• Housing Commission (on July 23, 2015) and Housing Authority (on
August 4, 2015) previously approved the preliminary steps for
issuance of tax-exempt bonds.
San Diego Housing Commission
Slide #4
SDHC – Torrey Vale Apartments
Partnership Development
Location – 6595 Rancho Del Sol Way
San Diego Housing Commission
Slide #5
SDHC – Torrey Vale Apartments
Partnership Development
Location – 6595 Rancho Del Sol Way
San Diego Housing Commission
Slide #6
SDHC – Torrey Vale Apartments
Partnership Development
Site Photo – Rancho Del Sol Way Facing Southwest
San Diego Housing Commission
Slide #7
SDHC – Torrey Vale Apartments
Partnership Development
Site Photo – Rancho Del Sol Way Facing Northeast
San Diego Housing Commission
Slide #8
SDHC – Torrey Vale Apartments
Partnership Development
Site Photo – Facing South
San Diego Housing Commission
Slide #9
SDHC – Torrey Vale Apartments
Partnership Development
Site Photo – Facing South
San Diego Housing Commission
Slide #10
SDHC – Torrey Vale Apartments
Partnership Development
Site Photo – Facing Southeast
San Diego Housing Commission
Slide #11
SDHC – Torrey Vale Apartments
Partnership Development
Site Photo – Facing Southwest
San Diego Housing Commission
Slide #12
SDHC – Torrey Vale Apartments
Partnership Development
Affordability for 55 Years
Affordability Mix
50% AMI Tax Credit Units
60% AMI Tax Credit Units
Manager’s unit
(65% AMI Restricted)
Combined Total Units
Bedroom Mix Percent
San Diego Housing Commission
Slide #13
2 Bedroom/1 Bath Units
(750 sq. feet)
Estimated
Net Rent (after
utilities
Units
deduction)
2
$861
3 Bedroom/2 Bath Units
(1,050 sq. feet)
Estimated
Net Rent
(after utilities
Units
deduction)
1
$1,012
Total
Units
Totals
3
Affordable
Percent
10.71%
17
$1,043
7
$1,215
24
85.72%
0
19
--
1
9
--
1
28
3.57%
100%
71.43%
28.57%
100%
SDHC – Torrey Vale Apartments
Partnership Development
Estimated Sources and Uses Permanent Financing
Sources of Funds
Tax Exempt Bond Financed
Permanent Loan
Master Developer Off-site Contribution
Amount
$2,316,000
1,296,986
Uses of Funds
Acquisition Cost
Hard Costs
Master Developer Gap Contribution
1,350,000
Reserves
Solar Equity Rebate
Accrued Soft Loan Interest
Citi Subordinate Debt
Deferred Contractor Fee
Four Percent Tax Credits
55,858
69,483
280,000
177,318
4,780,187
City Impact Fees & Permits
Other Soft Costs
Contingency
Developer Fee
Deferred Developer Fee
Total Sources
•
$1,296,988
5,053,560
75,738
1,688,947
1,353,059
322,645
1,372,164
837,269
$11,163,101
Total Development Cost
Estimated Total Development Cost Per Unit (for 28 Units) = $398,682
San Diego Housing Commission
Slide #14
Amount
$11,163,101
SDHC – Torrey Vale Apartments
Partnership Development
Estimated Schedule
Milestone
Estimated Date
• Housing Authority consideration of
proposed bond issuance authorization . .
December 8, 2015
• Estimated escrow/financing closing. . . . .
December 15, 2015
• Estimated construction start. . . . . . . . . . .
December 31, 2015
• Estimated construction completion. . . . . .
October 2016
San Diego Housing Commission
Slide #15
SDHC – Torrey Vale Apartments
Partnership Development
Bond Issuance Summary
• Proposed tax-exempt bond issuance up to
$7,000,000.
• Developer responsible for paying all costs of issuing
bonds.
• Issuance pursuant to Housing Commission’s bond
policy.
• Bonds issuance will not create financial liability to
SDHC, Housing Authority, or City.
• Neither full faith and credit nor taxing power of City,
nor full faith and credit of Housing Authority will be
pledged for payment of the bonds.
San Diego Housing Commission
Slide #16
SDHC – Torrey Vale Apartments
Partnership Development
San Diego Housing Commission
Slide #17