Presentation - San Diego Housing Commission

San Diego Housing Commission!
Real Estate Division/HDP Workshop!
Debbie Ruane
Senior Vice President
Real Estate Division
June 20, 2014
SDHC REAL ESTATE DIVISION
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SDHC Real Estate Division !
Overview!
The Real Estate Division (RED) is one component of the San Diego Housing Commission and it provides the following services: •  Finance •  New Program Development •  Loan Management •  RehabilitaEon •  Enforce Compliance of City Ordinances •  Property Management •  Asset Management •  ConstrucEon Services •  Maintenance 3
SDHC Real Estate Division !
Overview!
The Real Estate Division (RED) is only one component of the San Diego Housing Commission and it provides the following services: FINANCE DEVELOPMENT OPERATIONS Finance Real Estate Development Property Management Housing Development Partners Maintenance New Programs Home Safe Home Loan Management Ordinance Compliance 4
PorIolio Management ConstrucEon Services Rental Housing Finance and !
Development Department!
!
Ann Kern, Senior Director!
Mike Pavco, Executive Director, HDP!
Wendy DeWitt, Director!
Rick Vincent, Housing Construction Manager!
Vicki Monce, Loan Services Manager!
Melinda Nickelberry, Manager!
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Real Estate Division!
Rental Housing Finance!
!
Ann Kern!
Senior Director,!
Housing Finance & Program Development!
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Rental Housing Finance and Program Development Department
FY2014 Budget!
•  Total Budget: $ 35.7 million •  Staffing: 24 FTEs 7
RENTAL HOUSING FINANCE
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Rental Housing Finance !
Overview !
Rental Housing Finance partners with qualified developers to: •  provide quality affordable housing •  manage public funds prudently and effecEvely •  balances SDHC involvement to ensure financial, geographic and physical diversity Rental Housing Finance has a budget of $36 million primarily from Home, Inclusionary, Linkage and Bond Fees. Energy Efficiency * Transit-­‐Oriented Development * Homelessness !
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Rental Housing Finance
FY2014 Budget!
•  Total Budget: $17.9 million •  Staffing: 5.125 FTEs 10
Rental Housing Finance
FY2014 Department Scope!
•  Underwrite new loans for mulEfamily development •  Administer mulEfamily revenue bond program •  Administer City’s Inclusionary, NCFUA, and Density Bonus Housing Programs •  Administer HOME and AHF Funds •  Conduct Fee Study to analyze recoverable costs •  Create Guidelines for Refinance Requests •  Update Guidelines for Residual Receipt Analyses •  Update HOME Procedures Manuals 11
Rental Housing Finance!
FY 2014 Budget Goals: Metrics Create/finance addiEonal affordable units Provide Project Management Support Administer Bond PorIolio 12
FY2014 Budget YTD Actuals 460 units 497 units 826 units 1,618 units 50 projects 6,406 units 52 projects 6,702 units Rental Housing Finance!
Projects Completed: FY2014!
Loans/Bonds Project Name 13
Total CompleNon Development SDHC Funding Date Cost ($ millions) ($ millions) Total Units Juniper Gardens 11/13 $12.3 Fairbanks Commons 1/14 $51.0 TOTALS $63.3 $2.8 $2.8 Restricted Units 40 39 165 164 205 203 Rental Housing Finance!
Completed: Juniper Gardens!
•  4251 Juniper St. •  40 Units •  City Heights •  $2,844,132 loan •  TDC: $12,264,020 •  RehabilitaNon/ PreservaNon 14
Rental Housing Finance!
Completed: Fairbanks Commons!
•  15870 Camino San Bernardo •  165 Units •  Black Mountain Ranch •  TDC: $51,000,000 •  New ConstrucNon 15
Rental Housing Finance!
Projects Under Construction/Rehabilitation!
Loans/Partnerships/Bond Financing Project Name 16
EsNmated CompleNon Date Total SDHC Funding Development ($ millions) Cost ($ millions) Total Units Restricted Units Alpha Square 12/15 $47.8 $1.9 203 201 Celadon 1/15 $50.5 $0 121 120 City Heights CDC 9/14 $17.0 $0 132 129 COMM 22 Family 12/14 $56.5 $1 130 128 COMM 22 Senior 12/14 $28.5 $4.2 70 68 Fairbanks Square 4/15 $27 $0 100 99 Hotel Churchill 8/15 $19.0 $12.1 73 72 Mesa Commons 7/14 TOTALS $24.5 $4.9 78 77 $270.0 $23.6 907 894 Rental Housing Finance!
Pending Projects!
Loans/Partnerships/Bond Financing: Project Name 17
Est. Approval Date Total SDHC Funding Development Total Units ($ millions) Costs ($ millions) Restricted Units 14th & Imperial 8/14 $17.4 $3.5 55 54 Atmosphere II 6/14 $44.0 $3.0 105 103 Encanto Apts 8/14 $26.3 $6.0 64 63 San Diego Square 8/14 $17.0 $0 132 129 Trolley ResidenEal 8/14 $21.6 $2.8 52 51 Westminster Apts 7/14 $55.2 $0 130 128 Willie James Jones Apts 6/14 $13.6 $2.5 70 68 TOTALS $195.0 $17.8 608 596 Rental Housing Finance
Inclusionary/Density Bonus Projects!
Project Name 15th & Island Inclusionary Units Total Units EsNmated CompleNon Downtown 956 72 4th Q 14 Archstone Mission Gorge Navajo 444 45 1st Q 16 Broadstone Kearny Mesa Serra Mesa 360 36 4th Q 14 Broadstone Balboa Park Uptown 100 5 4th Q 14 Civita Phase I Mission Valley 1512 150 1st Q 15 Murfey Mixed-­‐Use (The Point) Pacific Beach 19 2 2nd Q 14 The North Parker North Park 25 2 2nd Q 14 Casa Mira View I Mira Mesa 1848 185 Torrey Hills Torrey Hills 484 24 3rd Q 14 Kearny Mesa 129 13 2nd Q 14 North Park University City 9 309 TOTAL 1 31 566 1st Q 15 Ariva Apartments BMMB on 30th Apartments La Jolla Crossroads II 18
Community Planning Area Rental Housing Finance
Inclusionary/Density Bonus Projects!
Under ConstrucNon Casa Mira View – 185 Affordable Units (45 Completed to Date) 19
Rental Housing Finance
Inclusionary/Density Bonus Projects!
Under ConstrucNon15th & Island – 72 Affordable Units 20
Rental Housing Finance
North City Future Urbanizing Area Projects!
2,178 Total Affordable Units; 1513 units are completed Subarea Inclusionary Units Master Developer Fairbanks Square Black Mountain Ranch 100 BMR LLC Heritage Bluffs/Camelot Black Mountain Ranch 84 BMR LLC Elms & Ivy Pacific Highlands Ranch 28 Taylor Morrison The Village Pacific Highlands Ranch 79 Pardee/Coast The Village (Gonsalves Ownership) Pacific Highlands Ranch 12 KB Homes Equity ProperEes at The Village Pacific Highlands Ranch 21 Equity ProperEes Unit 13 Pacific Highlands Ranch 198 Pardee/R&V Unit 24 Pacific Highlands Ranch 96 Pardee Torrey Highlands 47 665 Seabreeze Project Name Rhodes Crossing 21
Rental Housing Finance and!
Development Department!
!
Business & Program Development!
Wendy DeWitt, Director!
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Business & Program Development!
Responsibilities !
•  AdministraEon of City Ordinances -­‐ SRO’s -­‐ Mobile Homes -­‐ Coastal Housing •  Pursue New Revenue Sources -­‐ Efficiencies, cost savings in exisEng programs -­‐ Leverage assets -­‐ New revenue sources to supplement exisEng programs, fill gaps •  New Program AcEviEes -­‐ Address issues in exisEng programs -­‐ Introduce new programs !
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Business & Program Development!
Current Projects !
•  SRO Conversions – how to preserve units? •  Strengthen Loan PorIolio asset management procedures to improve cash flow •  InvesEgate a porIolio capital access program and make recommendaEons !
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Business & Program Development!
Current Projects !
•  SRO Conversions – how to preserve units 25
Business & Program Development!
Current Projects !
•  Strengthen Loan PorIolio asset management procedures to improve cash flow -­‐ Annual financial reporEng -­‐ Residual receipts calculaEons -­‐ Physical InspecEon for maintenance, capital needs 26
!
Business & Program Development!
FY15 Goals!
•  Explore ways to leverage the MulE-­‐
family loan porIolio ValuaEon Sell All or Part Loan pay-­‐down or pay-­‐offs 27
Business & Program Development!
FY15 Goals!
•  Pursue creaEon of a pooled investment fund to leverage SDHC loan capital Solicit partners Hire consultant to create business plan Structure fund, loan products Market and deploy funds to developers 28
Rental Housing Finance and!
Development Department!
!
Home Safe Home Unit!
Rick Vincent!
Housing Construction Manager !
!
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HOME SAFE HOME UNIT
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Rental Housing Finance & Development
Department !
Home Safe Home Unit!
Home Safe Home assists low-­‐income families with the rehabilitaEon and repair of their homes and remediaEon of lead paint. Home Safe Home has a budget of $5 million from federally funded Lead Control grants, Healthy Homes Grants and former redevelopment funds. !
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Home Safe Home Unit
FY2014 Budget!
•  Total Budget: $ 5.3 million •  Staffing: 9.87 FTEs 32
Home Safe Home Unit!
35-Year Funding History!
FUNDING TYPE!
AMOUNT
(millions)!
FAMILIES
SERVED!
Lead/Healthy Homes Grants!
$11.4!
1,557!
Mobile Home Repair Grants!
$8.2!
2,110!
Other Rehab Loans & Grants!
$85.8!
8,708!
$105.4!
12,375!
TOTAL
33
!
Home Safe Home Unit !
Goals and Performance!
FY14 Goal!
Completed /
In-Progress!
FY15 Goal!
Lead Hazard Control!
160!
156!
120!
Healthy Homes!
40!
93!
Mobile Home Repair!
31!
46!
231!
295!
0% Deferred!
43!
16!
Redevelopment!
Neighborhood Stabilization!
61!
0!
49!
4!
104!
69!
335!
364!
FUNDING TYPE!
GRANTS !
GRANT SUBTOTAL!
30!
LOANS!
LOAN SUBTOTAL !
TOTAL !
34
50!
200!
Home Safe Home Unit !
BEFORE
35
AFTER
Home Safe Home Unit !
BEFORE
36
AFTER
Home Safe Home Unit !
BEFORE
37
AFTER
Home Safe Home Unit !
BEFORE
38
AFTER
Home Safe Home Unit !
BEFORE
39
AFTER
Home Safe Home Unit !
BEFORE
40
AFTER
Home Safe Home Unit !
BEFORE
41
AFTER
Home Safe Home Unit !
BEFORE
42
AFTER
Rental Housing Finance and!
Development Department!
!
Loan Management Unit!
Vicki Monce!
Loan Services Manager!
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Loan Management Team!
Loan Services Manager!
Vicki Monce!
Loan Servicing Team!
Administrative Team!
Nancy Deeds!
Espi Martinez!
Sandy Simon!
Melissa Holt!
Orlinda Stocking!
Intern!
Loan Underwriting Team!
Carrie Tapia!
Delia Abeling!
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Marcus Collins!
Loan Management Unit!
Loan Management!
Loan Management consists of two disEnct areas •  Loan PorIolio Servicing •  Homeownership ResponsibiliNes •  First Time Homebuyer Program •  Affordable For-­‐Sale Housing Program •  Loan PorIolio Servicing § 
§ 
§ 
§ 
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MulE-­‐Family RehabilitaEon Affordable For-­‐Sale First Time Homebuyer Loan Management Unit!
Loan Portfolio Servicing!
Loan Pordolio Servicing is responsible for servicing the Commission’s $316.7 million loan porIolio, which includes approximately 2,800 loans. •  Average of 920 loans per loan servicing specialist •  FY2014 Total Budget: $2.4 million •  Staffing: 5.765 FTEs 46
Loan Management Unit!
Current Loan Portfolio!
as of March 31, 2014!
!
$316,694,546
Program!
Multi Family!
$59,992,234 !
$47,045,156 !
$16,711,339 !
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$192,945,817!
First Time Homebuyer!
Number
of Loans!
132!
1,362!
Affordable For-Sale!
295!
Rehabilitation!
981!
TOTAL!
2,770!
Loan Management Unit!
Loan Portfolio Servicing!
•  Over 1,600 Payoffs completed •  Over 2,700 SubordinaEons completed •  AssumpEons •  Short Sales •  Bankruptcies •  Loan ModificaEons •  Insurance monitoring •  Occupancy monitoring •  Annual review of the audited financials for all mulE-­‐family loans •  Defaults / Foreclosures §  0.10% Default RaNo Industry average = 2.0 – 3.0% 48
Loan Management Unit!
Homeownership!
Homeownership is responsible for determining eligibility, underwriEng, and funding all applicaEons for the Commission’s First Time Homebuyer and Affordable For-­‐Sale Housing Programs. •  FT2014 Total Budget: $10.1 million •  Staffing: 3.37 FTEs !
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Loan Management Unit!
History of Assistance!
Loans, Grants & Mortgage Credit Certificates!
!
!
!
!
!
Families Assisted 50
50 closed 21 pending 114 115 98 178 131 Loan Management Unit!
Affordable For-Sale Housing Program!
295 Units !
! City Future Urbanizing Area – 55 Year RestricNons North •  Four Developments •  198 Units Redevelopment Agency – 45 Year RestricNons •  Two Developments •  59 Units Center City Development CorporaNon •  One Development •  10 Units Inclusionary •  Eight Developments •  28 Units 51
Loan Management Unit!
Total Families Assisted!
!
5,286
First Time Homebuyer Programs Deferred Loans, Grants & Mortgage Credit CerEficates Affordable For-­‐Sales without SDHC assistance Specialty Programs done in late 1980’s – early 1990’s GRAND TOTAL *There are an additional 21 packages currently in process
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No. of Families 4,413* 128 745 5,286 Loan Management Unit!
Current Funding!
•  Current average assistance per family is $58K • 
!
Current funding will assist approximately 164 families !
•  EsEmated 44 Mortgage Credit CerEficates in 2014 allocaEon •  The average area median income is 71% !
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Loan Management Unit!
Fiscal Year 2015 Goals!
Increase producNvity, ensure consistency and provide excellent customer service through the following: !
!
•  Implement an asset management sorware for the mulE-­‐
family loan porIolio •  Update and streamline loan servicing guidelines and procedures •  Automate deferred loan and closing cost grant documents in the Yardi database !
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Rental Housing Finance and!
Development Department!
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Budget and Performance Management!
Melinda Nickelberry!
Manager!
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Budget & Performance Management!
FY 2015 Goals and ResponsibiliNes Strategic Plan implementaEon coordinaEon Budget and Five-­‐Year Forecast development Budget to actual monitoring and reporEng Report development Adhoc budgetary and financial analysis 56
SDHC Strategic Plan Implementation!
The San Diego Housing Commission Board adopted the Strategic Plan January 17, 2014 The Plan idenEfies how the SDHC can have the greatest possible impact with limited financial resources in the years ahead 57
SDHC Strategic Plan Implementation!
Strategic Plan Goals Create & Preserve Quality Affordable Housing Provide Housing Choice Voucher Families with OpportuniEes for Them to Become More Financially Self-­‐Reliant Foster a Culture of Excellence and InnovaEon 58
SDHC Strategic Plan Implementation!
RED Strategic Plan Outcomes Asainment of new funding to support the creaEon and preservaEon of affordable housing ConEnued provision of quality affordable housing for our tenants, by ensuring the economic and physical sustainability of the SDHC real estate porIolio Defined SDHC role in reducing homelessness Improved departmental efficiencies and program effecEveness 59
RED Strategic Plan Projects!
Ahainment of new funding to support the creaNon and preservaNon of affordable housing IdenEfy financing mechanisms to perform substanEal rehabilitaEon and preservaEon of SDHC real estate assets Explore ways to leverage our MulE-­‐family loan porIolio Develop sorware analyEcs for MulE-­‐family, FTHB, and RehabilitaEon loan and grant porIolio for key performance metric reporEng CreaEon of a pooled investment fund 60
RED Strategic Plan Projects!
ConNnued provision of quality affordable housing for our tenants, by ensuring the economic and physical sustainability of the SDHC real estate pordolio The creaEon of interim and permanent procedures to support annual assessments of the real estate porIolio CompleEon of the Green Property Needs Assessment Development of a Capital Plan 61
RED Strategic Plan Projects!
Improved departmental efficiencies and program effecNveness
Review loan servicing workflow processes to idenEfy areas for cost-­‐efficiency improvements Enhance online interacEvity for vendors, developers and program parEcipants Create dashboard reports based on key performance indicators supported by current and new reporEng applicaEons Evaluate impact, cost efficiency, funding structure, and mission alignment of RED programs and operaEonal pracEces Develop and implement best pracEce policies and procedures 62
SDHC Strategic Plan Implementation!
RED Five-­‐Year Forecast Development Research Development ImplementaEon 63
•  IdenEfy opportuniEes for departmental improvements •  Evaluate true programmaEc costs •  Evaluate RED department funding structures •  Evaluate program alignment with SDHC’s mission •  Devise plans and recommendaEons to address idenEfied opportuniEes to improve program effecEveness and cost efficiencies •  ImplementaEon of plans and recommendaEons •  CreaEon of Five-­‐Year Budget Forecast SDHC Strategic Plan Implementation!
•  Currently, RED departments are developing project plans for the Strategic Plan projects •  Throughout the next two years, conEnued monitoring to ensure project success and adherence to Emelines 64
SDHC Real Estate Division!
Housing Development Partners!
Michael Pavco, Executive Director!
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HOUSING DEVELOPMENT PARTNERS TEAM
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SDHC Real Estate Division!
Housing Development Partners!
Housing Development Partners, an SDHC affiliate, acquires suitable rental property to provide quality, affordable housing to a broad range of low income San Diegans. !
!
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SDHC Real Estate Division!
Housing Development Partners!
Key Facts •  Affiliate of the San Diego Housing Commission (SDHC) •  Formed in 1990 as a 501(C)(3) Non-­‐Profit OrganizaEon •  HDP’s Board includes the CEO of SDHC, two SDHC Board Members, & two at Large Board Members •  Serves as the development arm of SDHC •  PorIolio of 1051 units of Affordable Housing 68
SDHC Real Estate Division!
Housing Development Partners!
Project Knox Glen 69
Units 54 Courtyard Terraces Casa Colina San Diego Square Sub-­‐Total 88 75 156 319 Island Village Studio 15 Sub-­‐Total 280 275 555 Mason Hotel Parker Kier Hotel Churchill Sub-­‐Total 17 34 72 123 Type Family Housing Senior Housing Single Room Occupancy Permanent SupporEve Housing SDHC Real Estate Division!
Housing Development Partners!
Benefits to the Housing Commission Real Estate Development and Asset Management ExperEse Experience with SupporEve Housing Projects Experience with Historic Buildings, Hotels, & SRO Housing Key RelaEonships: Civic SD; County of SD; CSH; Veteran’s AdministraEon; Local Service Providers HDP’s 501(C)(3) status provides independence and flexibility in developing affordable housing projects 70
SDHC Real Estate Division!
Housing Development Partners!
The Churchill 827 C Street 7 Story Tower Built in 1914 Acquired by SDHC in 2011 Housing Authority Approved HDP’s Redevelopment Plan in July 2013 72 Permanent SupporEve Housing Units Financed by SDHC, Civic, & The County Comprehensive RenovaEon & RestoraEon of Historic Façade Planned On-­‐Site Social Services Planned Affordability to be Preserved for 55 Years 71
SDHC Real Estate Division!
Housing Development Partners!
The Churchill!
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SDHC Real Estate Division!
Housing Development Partners!
San Diego Square Apartments 1055 9th Avenue
155 Low Income Senior Apartments
12 Story Tower Built in 1980
Originally Financed as a HUD 202
Land Owned by City of San Diego
Contains 10,000 Sq. Feet of Retail
Comprehensive Renovation Planned
New Senior Center to be Developed
Affordability to be Preserved for 55 Years
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SDHC Real Estate Division!
Housing Development Partners!
San Diego Square!
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SDHC Real Estate Division!
Housing Development Partners!
Goals for 2014
Successfully close on financing and begin construcEon of San Diego Square and Hotel Churchill IdenEfy one new project and begin predevelopment Assist the Housing Commission with Homelessness and Strategic Plan iniEaEves Begin development of an asset management database ConEnue to promote SDHC and HDP’s Non-­‐Profit Mission 75