HomeMy WebLinkAbout2021-01-13 HAC Agenda Packet
Notice is hereby given that the Chair of the Housing Advisory Commission of the City of Chula
Vista has called and will convene a Special Meeting of the Housing Advisory Commission on
January 13, 2021 at 6 p.m. via teleconference to consider the item(s) on this agenda.
SPECIAL MEETING OF THE HOUSING ADVISORY COMMISSION
OF THE CITY OF CHULA VISTA
January 13, 2020 Via Teleconference
6:00 p.m. 276 Fourth Avenue
Chula Vista
PLEASE NOTE THAT, PURSUANT TO THE GOVERNOR OF THE STATE OF CALIFORNIA'S
EXECUTIVE ORDER N-29-20, AND IN THE INTEREST OF THE PUBLIC HEALTH AND SAFETY,
MEMBERS OF THE HOUSING ADVISORY COMMISSION AND STAFF MAY PARTICIPATE
IN THIS MEETING VIA TELECONFERENCE. IN ACCORDANCE WITH THE EXECUTIVE ORDER,
THE PUBLIC MAY VIEW THE MEETING ONLINE AND NOT IN THE CONFERENCE ROOM
B111/B112 AT 276 FOURTH AVENUE, BUILDING C, CHULA VISTA, CALIFORNIA.
HOW TO WATCH: Members of the public can access a link to the livestream at
www.chulavistaca.gov/virtualmeetings. Members of the public who wish to join by
telephone only, may call 1-408-418-9388 (United States Toll) and enter the access code: 146
451 7590.
HOW TO SUBMIT COMMENTS: Visit the online eComment portal for this meeting at:
www.chulavistaca.gov/virtualmeetings. The commenting period will be open shortly after
the agenda is published for a particular meeting and will remain open through the meeting,
as described below. All comments will be available to the public and the Housing Advisory
Commission using the eComment portal. Comments must be received prior to the time the
Chair calls for the close of the commenting period. Comments received after such time will
not be considered by the Housing Advisory Commission. If you have difficulty or are unable
to submit a comment, please contact Leilani Hines for assistance at lhines@chulavistaca.gov or
(619) 500-4524.
ACCESSIBILITY: Individuals with disabilities are invited to request reasonable modifications
or accommodations in order to access and/or participate in a Housing Advisory Commission
meeting by contacting the Leilani Hines for assistance at lhines@chulavistaca.gov or (619) 500-
4524 (California Relay Service is available for the hearing impaired by dialing 711) at lea st
forty-eight hours in advance of the meeting.
City of Chula Vista Boards & Commissions
Housing Advisory Commission
Page 2 ׀ Housing Advisory Commission Agenda January 13, 2021
***The City of Chula Vista is relying on commercial technology to livestream and accept
public comments via Granicus, Inc. With the increase of virtual meetings, most platforms are
working to scale their systems to meet the new demand. If we have technical difficulties, we
will resolve them as quickly as possible. City staff will take all possible measures to ensure a
publicly accessible experience. ***
CALL TO ORDER
ROLL CALL: Commissioners Bustamante, Cabral, Lisama, Hoyos, Merino, Paddock, and Chair Quero
PRESENTATIONS
1. INTRODUCTION OF NEW COMMISSION MEMBERS
a. Norman Paddock
b. Maria Carolina Hoyos
PUBLIC COMMENTS
Persons may address the Board/Commission on any subject matter within the
Board/Commission’s jurisdiction that is not listed as an item on the agenda. State law
generally prohibits the Board/Commission from discussing or taking action on any issue not
included on the agenda, but, if appropriate, the Board/Commission may schedule the topic for
future discussion or refer the matter to staff. If you wish to comment, please submit comments
electronically at: www.chulavistaca.gov/virtualmeetings.
ACTION ITEMS
The Item(s) listed in this section of the agenda will be considered individually by the
Board/Commission and are expected to elicit discussion and deliberation. If you wish to
comment on one of these items, please submit comments electronically at:
http://www.chulavistaca.gov/virtualmeetings.
2. APPROVAL OF MINUTES from October 28, 2020
Staff recommendation: Review Attachment 1 and approve the minutes.
3. ELECTION OF CHAIR AND VICE CHAIR FOR FISCAL YEAR 2020/2021
Staff recommendation: Commissioners nominate and elect the Chair and Vice Chair for
the period of July 1, 2020 - June 30, 2021.
4. 2021-2029 HOUSING ELEMENT UPDATE (6TH CYCLE)
Presentation on the status of the 2021-2029 Housing Element Update.
Project Manager: Leilani Hines, Housing Manger
Staff recommendation: Commission hear the presentation and provide comments.
Page 3 ׀ Housing Advisory Commission Agenda January 13, 2021
5. PERMANENT LOCAL HOUSING ASSISTANCE (PLHA) PLAN AMENDMENT
Consideration of an amendment to the PLHA 5-year plan to prioritize funding of a
proposed bridge shelter for the homeless for years 1-5.
Project Manager: Dania Gonzalez, Management Analyst
Staff recommendation: Commission provide an advisory recommendation to City Council.
6. CalCHA BONDS FOR MIDDLE INCOME RENTAL HOUSING
Authorization to participate in the California Community Housing Agency (“CalCHA”)
for the issuance of tax-exempt bonds for the production, preservation and protection of
essential middle-income rental housing.
Project Manager: Dania Gonzalez, Management Analyst
Staff recommendation: Commission provide an advisory recommendation to City Council
7. MILLENIA 2 AFFORDABLE HOUSING
Consideration of the issuance of a maximum of $60 million in tax exempt private activity
bonds to finance the construction, maintenance, and operation of 200 affordable units for
lower-income households at Columba Apartments by Chelsea Investment Corporation.
The Project is located at the northwest corner of Solstice Avenue and Optima Street in the
Millenia (fka Eastern Urban Center) master planned community.
Project Manager: Jose Dorado, Senior Management Analyst
Staff recommendation: Commission provide an advisory recommendation to City Council.
8. OTAY RANCH VILLAGE 2; CORNERSTONE COMMUNITIES AFFORDABLE
HOUSING
Consideration of a proposal to provide nine (9) accessory dwelling units within the Estancia
single family development of Otay Ranch Village 2 and payment of an in-lieu fee for
fifteen (15) of the 24 low and moderate-income housing units resulting from Cornerstone
Communities’ Balanced Communities Policy obligation for Otay Ranch Village Two.
Project Manager: Jose Dorado, Senior Management Analyst
Staff recommendation: Commission provide an advisory recommendation to City Council.
9. FIRST TIME HOMEBUYER FUNDING
Authorization to allocate $1,000,000 from the HOME Investment Partnership Act, Cal-
HOME, and Balanced Communities Program to provide below market rate interest loans
to assist low-income households with down payment and closing costs for the purchase of
their first home.
Project Manager: Jose Dorado, Senior Management Analyst
Staff recommendation: Commission provide an advisory recommendation to City Council.
Page 4 ׀ Housing Advisory Commission Agenda January 13, 2021
OTHER BUSINESS
10. STAFF COMMENTS
11. CHAIR’S COMMENTS
12. COMMISSIONERS’/BOARD MEMBERS’ COMMENTS
ADJOURNMENT to the regular meeting on Wednesday, April 28, 2021 in Conference Room
B111/B112 at 276 Fourth Avenue, Building C, Chula Vista, California.
Materials provided to the Housing Advisory Commission related to any open-session item on this
agenda are available for public review at https://chulavista.granicusideas.com/meetings or the
Chula Vista Development Services Department at mrodriguez@chulavistaca.gov during normal
business hours.
I declare under penalty of perjury that I am
employed by the City of Chula Vista in the
Development Services Department and that I
caused the document to be posted according
to Brown Act requirements.
Dated: 01/08/2021
Signed:
Item 2
MINUTES OF A REGULAR MEETING OF THE
HOUSING ADVISORY COMMISSION
OF THE CITY OF CHULA VISTA
October 28, 2020 Via Teleconference
6:00 p.m.
Pursuant to the Governor of the State of California's Executive Order N-29-20, and in the interest
of public health and safety during the COVID-19 pandemic, members of the Housing Advisory
Commission and staff participated in this meeting via teleconference. All votes were taken by roll
call.
CALL TO ORDER
ROLL CALL: Commissioners Bustamante, Cabral, Hoyos, Merino, and Chair Quero
Commissioner Lisama requested an excused absence.
Also, present Leilani Hines, Housing Manager, Jose Dorado, Sr. Management Analyst, Angelica Davis,
Sr. Management Analyst
CONSENT CALENDAR
1. APPROVAL OF MINUTES FROM January 22, 2020 and June 24, 2020
Staff recommendation: Review Attachments 1 and 2 and approve minutes
Commissioner Merino moved to approve the minutes. Commissioner Cabral seconded the
motion, and it carried, by the following vote:
Yes: 3 – Commissioners Merino, Cabral, Hoyos and Chair Quero
No: 0
Abstain: 0
ITEMS REMOVED FROM THE CONSENT CALENDAR
There were none.
PUBLIC COMMENTS
There were none.
ACTION ITEMS
2. 2021-2029 HOUSING ELEMENT UPDATE (6TH CYCLE)
Presentation on the status of the 2021-2029 Housing Element Update and proposed
housing priorities.
Project Manager: Leilani Hines, Housing Manger
Page 2 | Housing Advisory Commission Minutes October 28, 2020
Staff recommendation: Commission hear the presentation, discuss and provide comments.
Housing Manager Hines presented on the current process that we are in, housing
visioning phase. There are 11,000 new units in the past 8 years, 41% are low income.
State legislation to address need in the community in a realistic timeframe. There has
been a 40% increase in population. Goal is to promote livable, sustainable neighborhoods
for lower income families and provide education and outreach.
We are monitoring construction and land inventory to create opportunities and
incentivize affordable housing. We are making information accessible and being
inclusive in ideas. Our goal is to have our plan to the state by April 15, 2020.
3. OTAY RANCH APARTMENTS VILLAGE 8 WEST BY META HOUSING
Overview of a proposed affordable housing development, known as Otay Ranch
Apartments, developed in satisfaction of the City’s Balanced Communities Policy
Project Manager: Jose Dorado, Senior Management Analyst
Staff recommendation: Commission hear the presentation and discuss.
Senior Management Analyst Dorado provided an update on the Otay Ranch Apartments
Village 8 West by Meta Housing. This project is a master development providing 175
housing units; 5% low income, 5% moderate. There will be a lottery system drawn from
the interest list of those applicants who have provided the proper documentation for
application. Priority will be given to anyone displaced by city projects.
4. COVID-19 IMPACTS AND PROGRAMS TO ADDRESS
Overview of DSD Housing Division staff’s efforts in addressing the impacts of COVID-
19 on low and moderation income households, including rental assistance, food
assistance, eviction moratorium, homelessness, and other social issues facing these
residents.
Project Managers: Angelica Davis and Jose Dorado, Senior Management Analysts
Staff recommendation: Commission hear the presentation and discuss.
Senior Management Analyst Davis provided an update on COVID-19 impacts and
programs to address.
The city has received funding through the CARES ACT which has allowed for the
implementation of new programs and also prepare for issues the city new would be
presented with COVID-19. The housing division focused on the most vulnerable
population; homeless and seniors and started to anticipate and increase funding on food
programs and reached out to partners and increase services. There was and increase for
services in domestic violence, so we reached out to South Bay Community Services.
The Housing Division also created new opportunities in train to hire programs. We got
creative in repurposing services; the mobile medical unit for the Chula Vista school
district will be providing testing at school sites.
Page 3 | Housing Advisory Commission Minutes October 28, 2020
Senior Management Analyst Dorado provide an update on allocate CARES monies for
rental assistance, in May the city council allocate money to those who owed back rent
and those eligible received up to $6500. To date close to $1 million has been spent and
close to $250,000 remain to assist with COVID-19 related issues.
OTHER BUSINESS
5. STAFF COMMENTS
a. Housing Project Updates
i. Anita St/Wakeland Housing and Development Corporation
A site has been acquired and the Developer has been applying for financing
for construction.
ii. Millenia
Chelsea Investment Corporation is looking at development of a new
affordable housing development within the Millenia master planned
community in addition to the existing Duetta and Volta projects.
iii. Density Bonus Projects
Several market rate developers are moving forward within rental housing
that incorporates 10 percent of their housing as very low income. They
have been approved and going through the building permit process.
These developments include Bonita Glen, a development at the NEC of
Third and L, another at L St near Third Ave, and a senior development at
the NWC of Third and E St.
iv. Rolling Hills Garden; Expiring Covenants
The rent restrictions will be expiring within the next few years for a senior
development, Rolling Hills Gardens. The property owner is providing
ongoing noticing and disclosures to residents of the expiring covenants
and any available affordable housing opportunities.
b. Homeless Outreach
Senior Management Analyst Davis mentioned that tent from the city of San Diego
has been acquired to be able to provide a shelter. The city is now in a position to
operate in the south bay.
c. PLHA and Other Funding
PLHA represents 5-year funding from the State that Chula Vista has prioritized in its
spending plan permanent supportive housing, ADUs and a proposed bridge shelter for
the homeless.
Staff has also applied for LEAP funding from the State for the Housing Element and
its implementation programs.
Page 4 | Housing Advisory Commission Minutes October 28, 2020
6. CHAIR’S COMMENTS
Chair Quero mentioned that Commissioner Owusu has submitted a resignation notice and
that we now have an opportunity to bring on a new member.
7. COMMISSIONERS’/BOARD MEMBERS’ COMMENTS
Commissioner Merino suggested that we bring topics that come up in our neighborhood up
for discussion and meet to discuss those topics.
ADJOURNMENT Chair Quero adjourned the meeting at 7:50 p.m. to the regular meeting on
January 27, 2021 at 6 p.m. in Conference Room B111/B112 at 276 Fourth
Avenue, Building C, Chula Vista, California.
.
Materials provided to the Housing Advisory Commission related to any open-session item on this agenda
are available for public review at https://chulavista.granicusideas.com/meetings or the Chula Vista
Development Services Department at lhines@chulavistaca.gov during normal business hours.
In compliance with the AMERICANS WITH DISABILITIES ACT
The City of Chula Vista requests individuals who require special accommodations to access, attend,
and/or participate in a City meeting, activity, or service, contact the Housing Advisory Commission at
lhines@chulavistaca.gov (California Relay Service is available for the hearing impaired by dialing 711)
at least forty-eight hours in advance of the meeting.
____________________________________
Monica Rodriguez, Secretary
OR
If completed by secretary or staff to board/commission/committee:
Vicki Lisama 10/28/2020
Housing Advisory Commission
Leilani HInes
10/28/2020
v . 0 01 P a g e | 1
City of Chula Vista Boards & Commissions
Housing Advisory Commission
January 13, 2021 Item: 4
TITLE
CONSIDERATION OF THE DRAFT 2021 HOUSING ELEMENT UPDATE PUBLISHED FOR PUBLIC REVIEW AND
COMMENT
RECOMMENDED ACTION
Commission hear the presentation.
SUMMARY
The California State Legislature has identified the attainment of a decent home and suitable living
environment for every Californian as the State’s major housing goal. Recognizing the important role of
local planning and housing programs in the pursuit of this goal, the Legislature has mandated that all cities
and counties prepare a Housing Element as part of the comprehensive General Plan. In accordance with
California Government Code § 65588, the City of Chula Vista has prepared the Housing Element Update
for the 2021-2029 planning period to be submitted to the State Department of Housing and Community
Development by April 15, 2021.
ENVIRONMENTAL REVIEW
The 2021-2029 Housing Element of the City’s General Plan does not propose any changes to land uses or
densities within Chula Vista, nor does it call out or approve any specific development projects. Future
discretionary governmental approval of site specific housing projects will require review in accordance with
the California Environmental Quality Act (CEQA), and if applicable the National Environmental Policy Act
(NEPA). An Initial Study (IS 20-0004) has been conducted by the City of Chula Vista (including an
Environmental Checklist form) and the City does not anticipate that the proposed project will have a
significant environmental effect, and the preparation of an Environmental Impact Report will not be
required. A draft Negative Declaration has been prepared in accordance with Section 15070 of the CEQA
Guidelines and was published on December 4, 2020 and made available on the City’s website at
https://www.chulavistaca.gov/departments/development-services/planning/public-
notices/environmental-notices.
DISCUSSION
Pursuant to State Law, Chula Vista is required to prepare and adopt by April 15, 2021 a Housing Element
Update that covers the period of April 15, 2021 through April 15, 2029. The Housing Element includes the
following components:
▪ A review of the previous Element’s goals, policies, programs, and objectives to ascertain the
effectiveness of each of these components, as well as the overall effectiveness of the Housing Element;
▪ An assessment of housing needs and an inventory of resources and constraints related to meeting
these needs;
P a g e | 2
▪ An analysis of programs for the preservation of assisted housing developments;
▪ A statement of community goals, quantified objectives and policies relative to the maintenance,
preservation, improvement and development of housing; and,
▪ A policy program that provides a schedule of actions that the City should undertake, or intends to
undertake, in implementing the policies set forth in the Housing Element Update.
Housing Element Update Format
The Chula Vista Housing Element Update is organized into three sections, including:
Key Issues
The Housing Element update and the proposed programs and policies are based upon increasing legislative
actions to facilitate housing, the current economy and diminishing financial resources available for
affordable housing programs and projects. Key issues include:
▪ Recent legislative actions seek to ensure the availability at all times of land zoned for housing at
appropriate densities to accommodate the City’s Regional Housing Need Allocation (RHNA). The City
must continually monitor housing production and take responsibility and actions to ensure adequate
site capacity at all times for all income levels, particularly for lower-income households.
▪ Obligations to affirmatively furthering fair housing, defined as "taking meaningful actions…that
overcome patterns of segregation and foster inclusive communities free from barriers that restrict
access to opportunities." Therefore, emphasis is placed on more housing choices within higher
income neighborhoods.
▪ A greater need exists to preserve and expand affordable housing opportunities for those existing
extremely low- (≤30% of the Area Median Income or $34,650/year for a family of four) and very low-
income households (≤50% of the Area Median Income or $57,750/year for a family of four),
particularly for those most vulnerable populations such as the homeless, seniors, and the disabled;
and
▪ With less available resources to address the needs of lower income households, there are
opportunities to revitalize, reuse, and enhance existing resources and look at new collaborations to
Introduction
•Explains the purpose,
process and contents of
the Housing Element.
Policy &
Implementation Plan
•Details specific policies
and programs the City
will carry out to address
its housing goals and the
number of households to
be assisted and housing
units to be constructed,
rehabilitated, conserved
and preserved through
the policies and
programs.
Appendices
•Details the analysis in
developing the Housing
Element and provides
the supporting material,
including a demographic
analysis, constraints and
opportunities to
affordable housing and
the community outreach
process.
P a g e | 3
leverage resources for the benefit of those in need of housing but also for the economic benefit of
residents and the community.
The Policy and Implementation component of the Housing Element Update aims to provide the City and the
residential development community with policy and program tools that address these issues. The City’s
efforts will be concentrated on promoting balanced and diverse housing types and pricing and the City’s role
and processes to facilitate increased housing production.
Regional Housing Needs Assessment
State Housing Element Law mandates that a jurisdiction must show that it has adequate sites that will be
made available through appropriate zoning and development standards and with the required public
services and facilities for a variety of housing types and incomes. The projected need for housing used for
this evaluation is defined as the City’s share of the region’s housing needs for 2021-2029.
A Regional Housing Needs Assessment (RHNA) prepared by SANDAG and adopted July 10, 2020 for the
period beginning June 30, 2020 – April 15, 2029 (an 8 year period) identifies Chula Vista’s share of the
region’s housing needs as 11,105 new housing units, with 4,527 (41%) allocated for lower income
households.
Table 1: RHNA Allocation per Income Category
Income Category No. %
Extremely Low (0-30% of AMI) and Very Low-Income (0-50% of AMI) 1,777 16%
Low- Income (51-80% of AMI) 2,750 25%
Moderate-Income (81-120% of AMI) 1,911 17%
Above Moderate-Income (81-120% of AMI) 4,667 42%
TOTAL UNITS 11,105 100%
As required by State Housing Law, the City must plan for its share of the region’s new housing needs in all
four income categories by identifying an adequate supply of land zoned at the appropriate density levels to
accommodate each income category. The RHNA goals seek to ensure the City has, or plans to add, zoning
and land capacity to accommodate new housing growth and to ensure adequate site capacity at all times for
all income levels.
To address the City’s needs for very low and low income households (50-80% of AMI or $57,750-
$92,400/year for a family of four), Chula Vista must demonstrate that it has an adequate supply of land for
higher density housing (30 or more dwelling units per acre). Although zoning land for higher density
development does not guarantee the construction of housing that is affordable to low and moderate income
families, without such higher density zoning, the opportunity to use subsidies and implement affordable
P a g e | 4
housing programs for such households would not exist. Appendix C of the Housing Element Update provides
the details demonstrating that the City has adequate sites to satisfy this requirement.
Goals, Policies and Programs
The centerpiece of the Housing Element is the Policy and Implementation Plan with goals, policies, and
implementing programs to address the identified needs. In developing the goals, objectives, policies, and
programs described in this Plan, the City assessed its housing needs, evaluated the performance of existing
programs, and received input from the community through participation in an on-line survey and various
public meetings. In substantial compliance with the requirements of State law, the City will be striving to
provide programs to meet the current and future housing needs of all income levels of the community
through the following goals:
To realize these goals, the Policy and Implementation Plan details objectives, policies, and implementing
programs which form the blueprint for housing actions. While the plan covers a broad array of housing
issues that are applicable Citywide, the emphasis of the 2021-2029 Policy and Implementation Plan is on
actions enabling the City to maintain and increase housing opportunities affordable to very low, low, and
moderate income households.
Public Participation Process
The Development Services Department solicited community input in preparing and reviewing the City’s draft
Housing Element Update. The City conducted an on-line survey, meet with various stakeholders, held public
meetings and presented at various public meetings to obtain the views of citizens, developers, social service
agencies, and other interested persons on the City’s housing needs, and policies and programs to be
implemented to address these needs. The following outlines the public participation process:
▪ Public Survey Period (Available in English and Spanish from May 4th, 2020 to September 4th, 2020);
▪ Three stakeholder meetings (Citizen Oversight Committee on January 30, 2019; Service Providers
and Development Community on August 20, 2020);
▪ One community workshop simultaneously in English and Spanish (August 24, 2020);
Goal 1
•Promote Housing
that Helps to
Create Safe,
Livable, and
Sustainable
Neighborhoods
Goal 2
•Facilitate the
Construction and
Provision of
Quality Housing
to Meet the City’s
Diverse Needs
(by Type, size,
ownership level,
and income
levels)
Goal 3
•Create
opportunities for
affordable
housing,
particularly in
vulnerable areas
AND in areas of
opportunity
Goal 4
•Promote
equitable and
accessible
housing options
and resources.
P a g e | 5
▪ Housing Advisory Commission meetings (July 24, 2019, October 23, 2019, January 23, 2020, June 24,
2020, October 28, 2020);
▪ Planning Commission (October 23, 2019 and June 24, 2020)
▪ Commission on Aging (February 12, 2020)
▪ Growth Management Oversight Committee (September 17, 2020)
▪ 30-day Public Review period (December 4, 2020 through January 4, 2020)
A summary of the comments received are included within Appendix G of the Draft Housing Element Update.
The draft environmental documents, along with the Draft Housing Element Update, were published on
December 4, 2020 and made available on the City’s website at
https://www.chulavistaca.gov/departments/development-services/planning/public-
notices/environmental-notices for a 30-day review and comment period, ending Monday, January 4, 2021.
No comments were received on the Negative Declaration for the Housing Element update during the 30-day
comment period from December 4, 2020 through January 4, 2021. Comments from the San Diego Housing
Federation on the Draft Housing Element Update were received and is included as Attachment 2.
Next Steps and Schedule
It is anticipated that the City will begin the process of adoption of the Housing Element update in late
February 2021 beginning with the Planning Commission and the Housing Advisory Commission. It is
expected that the Housing Element update will then be submitted to State HCD for their review prior to
adoption by the City Council.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the Housing Advisory Commission members and has found no
property holdings within 1,000 feet of the boundaries of the property which is the subject of this action.
Consequently, this item does not present a disqualifying real property-related financial conflict of interest
under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political
Reform Act (Cal. Gov’t Code §87100,et seq.).
Staff is not independently aware, and has not been informed by any HAC member, of any other fact that may
constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Costs associated with the preparation of the Housing Element update and the associated environmental
documents are incorporated in the Development Services Department budget and may be reimbursed with
funding received from the 2020 Local Early Action Planning (LEAP) Grant Program.
Implementation of the policies and programs outlined within the Housing Element may require additional
resources within the Development Services Department. As each of the policies and programs are developed
and implemented, staff will complete a more thorough analysis of staffing and resource needs and the fiscal
impact. The ongoing fiscal impact is uncertain at this time and will depend on the type of housing
development that results from the update of the Housing Element.
P a g e | 6
ONGOING FISCAL IMPACT
The ongoing fiscal impact is uncertain at this time and will depend on the type of housing development that
results from the update of the Housing Element. Resulting process improvements that accelerate housing
production and activities to facilitate compliance in implementing the sixth cycle regional housing need
assessment (RHNA) may be reimbursed from the LEAP Grant Program.
ATTACHMENTS
1. Draft 2021 Housing Element Update and Appendices (available at
https://www.chulavistaca.gov/departments/development-services/housing-element-update)
2. Written Correspondence from San Diego Housing Federation dated January 4, 2021
Staff Contact: Leilani Hines, Housing Manager, Chula Vista Housing Authority
3939 Iowa Street, Ste. 1
San Diego, CA 92104
Phone: (619) 239-6693
Fax: (619) 239-5523
www.housingsandiego.org
San Diego’s Voice for Affordable Housing
January 4, 2021
Mr. Scott Donaghe
Principal Planner
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Submitted via email: sdonaghe@chulavistaca.gov
Re: Draft 6th Cycle Housing Element
Dear Mr. Donaghe:
On behalf of the San Diego Housing Federation, we are writing to provide comments and
feedback on the draft 6th Cycle Housing Element for the City of Chula Vista.
The draft Housing Element contains several actionable items that will help Chula Vista make
progress toward meeting its housing goals. In particular, the city’s emphasis on by-right
approval for affordable housing, enforcement of density minimums, and many efforts to
address homelessness and the needs of unsheltered individuals are noteworthy. We applaud
these components of the draft Housing Element and would like to make some additional
recommendations to strengthen the plan’s impact on achieving housing goals.
Implementing State Legislation
The San Diego Housing Federation was a proud co-sponsor of AB 1486, a bill that strengthened
and clarified the state’s Surplus Land Act. City implementation of this bill will advance Goal #2
to facilitate the construction and provision of quality housing to meet the city’s diverse needs
(HE-29). Identifying unused City-owned sites for housing can help to ensure the City is
compliant with the State Surplus Land Act and helps support the development of affordable
housing.
We are pleased to see Housing Program 3.6 included in this plan to update the City’s Density
Bonus Ordinance (HE-51). We recommend that the City move quickly to implement AB 1763, a
bill we supported which provides a density bonus for developments that are 100 percent
affordable, to serve as a tool for building affordable housing. The City should also work to
implement AB 2345, a bill we supported that builds on the success of the City of San Diego’s
Affordable Homes Bonus Program (AHBP) by taking the program statewide. A report by
Circulate San Diego, “Equity and Climate for Homes,” found that 63 percent of AHBP projects
were located in high and highest resource census tracts, demonstrating the program’s role in
affirmatively furthering fair housing.
San Diego’s Voice for Affordable Housing
Local funding for affordable housing
The draft Housing Element recognizes the need for funding to build housing that is affordable
to low-income individuals and families and that federal and state funding is a critical piece to
the resources puzzle. We recommend that the Housing Element specifically include a goal to
prioritize funds made available through the Permanent Local Housing Allocation (PLHA), also
known as the Building Homes and Jobs Act (SB 2, 2017), for the development of deed-restricted
affordable housing. Maximizing the use of these funds to build housing for extremely low-,
very low-, and moderate income households will help the City meet its RHNA obligations.
Additionally, as local gap financing is critical, we encourage the City to consider dedicating
former redevelopment funds, sometimes called “boomerang funds,” as a local source of
funding for affordable housing.
Affirmatively furthering fair housing and equity
As noted in the housing element demographics report (Appendix A-6), the City of Chula Vista
is a diverse community that is predominately Hispanic. Especially in comparison to some other
cities in the region, Chula Vista represents a good model for creating inclusive and racially
diverse communities. However, the demographics report does not provide data on areas of
concentrated poverty that would help Chula Vista identify where certain patterns of
community segregation may exist. This information would be helpful for implementation of
Housing Program 3.9 to track lower income housing units by District (HE-53) and advance
affirmatively furthering fair housing goals.
We recommend that the City review the California Department of Housing and Community
Development (HCD) 2020 Analysis of Impediments to Fair Housing Choice and include the
recommendations and actions outlined in the report. We additionally recommend that the City
work with HCD on AFFH recommendations as they relate specifically to Housing Elements and
incorporate those recommendations in the plan.
Housing and Climate Change
Our September 2016 report, “Location Matters: Affordable Housing and VMT Reduction in San
Diego County,” found that lower-income households are more likely to live in transit-rich areas,
own fewer cars, are likely to live in larger building and smaller units, all factors that make
affordable housing near transit a key greenhouse gas reduction strategy. In addition, the City’s
Climate Action Plan calls for housing density near transit (Climate Action Plan Strategy Focus
#7, page 8). However, the mentions of the Climate Action Plan in the Housing Element are in
relation to energy efficiency measures and make no mention of dense, deed-restricted
affordable housing as a greenhouse gas reduction tool. We urge the City to examine the role of
affordable housing in helping the City to meet both its RHNA obligations and its Climate
Action Plan goals.
We thank you for consideration of our feedback and comments. We appreciate the time and
effort that Planning Department staff have dedicated to the draft Housing Element document
San Diego’s Voice for Affordable Housing
and look forward to supporting the City of Chula Vista in adopting a robust plan that will help
to meet the City’s housing goals.
Sincerely,
Laura Nunn
Chief of Policy & Education
P a g e | 1
City of Chula Vista Boards & Commissions
Housing Advisory Commission
January 13, 2021 Item: 5
TITLE
RESOLUTION OF THE HOUSING ADVISORY COMMISSION OF THE CITY OF CHULA VISTA RECOMMENDING
THAT THE CITY COUNCIL AMEND THE PERMANENT LOCAL HOUSING ALLOCATION PLAN AND
AUTHORIZE RECEIPT OF GRANT FUNDS
RECOMMENDED ACTION
Commission provide an advisory recommendation to the City Council.
SUMMARY
On February 26, 2020, the California Department of Housing and Community Development (HCD) issued a
Notice of Funding Availability (NOFA) for approximately $195 million under the Permanent Local Housing
Allocation (PLHA) Grant Program. Funding can be used for the acceleration of affordable housing
production and to facilitate compliance with the City of Chula Vista’s housing goals. This action requests
acceptance of the City’s PLHA Plan and authorization to receive the funds consistent with the amended Plan
as an Entitlement Local Governmental Agency.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California
Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under
Section 15378 of the State CEQA Guidelines because the action consists of an application that provides
financial assistance to local governments for eligible housing-related projects and programs to assist in
addressing the unmet housing needs of their local communities; therefore, pursuant to Section 15060(c)(3)
of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
DISCUSSION
In 2017, the California Legislature passed Senate Bill 2 Planning Grants Program (SB 2), which established
a permanent source of funding intended to increase the affordable housing stock in California. The program
is funded by a $75 fee levied on certain real estate transactions and is expected to generate between $250
and $300 million annually to be distributed among local jurisdictions throughout the State via a Notice of
Funding Availability (NOFA).
On February 26, 2020, HCD released a NOFA for the PHLA Grant Program (SB2) which provides funding to
jurisdictions to further its affordable housing production and to facilitate compliance with the City’s
housing goals. The City of Chula Vista is considered an entitlement jurisdiction and will receive this funding
for the next five years. The City is eligible to receive funding that may be used on a variety of eligible
housing-related programs and activities consistent with its plan for the use of the PLHA funding over a five-
year period (“PHLA Plan”, see Attachment 1). Staff is recommending that the initial plan submitted to HCD
be amended to prioritize funding a proposed bridge shelter for the homeless. Since completion of the plan
in July 2020, there has been an increase in anticipated costs for the proposed bridge shelter and the
housing needs of the homeless community have continued to increase.
P a g e | 2
Funding Priority: Provide funding for the operation of a Bridge Shelter.
The 2020 Point in Time Count demonstrated that in the City of Chula Vista there are a total of 313
individuals experiencing homelessness, both sheltered and unsheltered. These numbers are representative
of the information that volunteers were able to gather through visual counting and interviewing. The City,
in partnership with social service organizations, will better be able to provide resources and assist these
residents through a bridge shelter program. Services will be centralized to be able to meet clients where
they are instead of having them go to individual service providers. The City seeks to address the impacts of
COVID-19 and the effect on the homeless population. Their vulnerability and lack of resources puts
homeless individuals at a disadvantage and leaves them with little to no options to defend themselves
against this virus. Therefore, staff recommends that years 1-5 of PLHA funding be used to fund the capital
and operational costs of the shelter.
The use of PLHA funds for these proposed activities allows the City to better use its other funding resources
such as CDBG, CDBG-CARES, HOME, ESG, ESG CARES 1 and ESG CARES 2. Staff has experience leveraging
these funds to achieve housing goals and prioritize the needs of Chula Vista residents , housed and
unhoused. Year 1 funding allocation is estimated at $1,059,483. Total funding years (1-5) is estimated at $5
million and will be based upon annual applicable real estate transactions.
DECISION-MAKER CONFLICT
Staff has determined that the action contemplated by this item is ministerial, secretarial, manual, or clerical
in nature and, as such, does not require the City Council members to make or participate in making a
governmental decision, pursuant to California Code of Regulations Title 2, section 18704(d)(1).
Consequently, this item does not present a conflict of interest under the Political Reform Act (Cal. Gov't
Code§ 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member of any other fact
that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
If awarded the grant from the California Department of Housing and Community Development PLHA
program, staff will request the City Council accept and appropriate these funds.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact. If the grant is successful, PLHA may provide program administration
costs of up to 5 percent. In addition, the grant provides funding for City staff costs that are needed to carry
out the proposed activity.
ATTACHMENTS
1. Permanent Housing Allocation Plan
Staff Contact: Dania Gonzalez, Management Analyst
City Zip
Eligible Applicant Type: Entitlement
Local Government Recipient of PLHA Formula Allocation: Chula Vista
276 Fourth Avenue
City:Chula Vista
Yes
§302(b) Applicant or Delegating Local Government has submitted the current or prior year's Annual Progress Report to the Department of Housing and Community
Development pursuant to Governemnt Code Section 65400. Yes
File Name:
Approximate PLHA Formula Allocation Amount:$52,974Allowable Local Admin (5%):$1,059,483
No
App1 TIN
App1 Signature Block
App1 Resolution
§300(d) If Applicant answered "Yes" above, has the Applicant attached the legally binding agreement required by §300 (c) and (d)?
Signature Block - upload in Microsoft Word Document Attached and on USB?Yes
File Name:
File Name:
§302(c)(4)(D) Applicant certifies that the Plan was authorized and adopted by resolution by the Local Government and that the public had an adequate opportunity to review
and comment on its content
§302(c)(7) Applicant certifies that it will ensure that the PLHA assistance is in the form of a low-interest, deferred loan to the Sponsor of the Project, if funds are used for the
development of an Affordable Rental Housing Development. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust.Yes
Threshold Requirements, §302
Applicant Agreement Legally binding agreement between Delegating and Administering Local
Governments
§301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested
by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The
county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city
also shall be a grant or low-interest deferred loan to the affordable housing Project.
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance.
§301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
§301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing.
§301(a)(6) Assisting persons who are experiencing or At-risk of homelessness, including, but not limited to, providing rapid re-housing, rental assistance, supportive/case
management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new
construction, rehabilitation, and preservation of permanent and transitional housing.
§301(a)(5) Capitalized Reserves for services connected to the preservation and creation of new permanent supportive housing.
§301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.
§301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds.
§301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units
(ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy
for a term of no less than 30 days.
Yes
§301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to
Extremely low-,Very low-, Low-, or Moderate-income households, including necessary operating subsidies.
Included?§301(a) Eligible activities are limited to the following:
Yes
Entity Address 276 Fourth Avenue Chula Vista State CA 91910
On behalf of the entity identified below, I certify that: The information, statements and attachments included in this application are, to the best of my knowledge and belief, true and
correct and I possess the legal authority to submit this application on behalf of the entity identified in the signature block.
7/20/20
Signature Date
Entity name:City of Chula Vista Phone Number:619-691-5263
City Manager
Certifications
Maria V. Kachadoorian
TitleAuthorized Representative Printed Name
Applicant agrees to adhere to §503, Reporting.Yes
Applicant agrees to adhere to §502, Cancellation/Termination.
Taxpayer Identification Number Document Attached and on USB?Yes
Instructions: If the Local Government Recipient of the PLHA Formula Allocation delegated its PLHA formula allocation to a Local Housing Trust Fund or to another Local Government,
the Applicant (for which information is required below) is the Local Housing Trust Fund or administering Local Government. The PLHA award will be made to the Applicant (upon meeting
threshold requirements) and the Applicant is responsible for meeting all program requirements throughout the term of the Standard Agreement.
The 302(c)(4) Plan template worksheet requires first choosing one or more of the Eligible Activities listed below. If "Yes" is clicked, the 302(c)(4) Plan worksheet opens a series of
questions about what precise activities are planned. Some specific activities, such as providing downpayment assistance to lower-income households for acquisition of an affordable
home, could be included under either Activity 2 or 9. Please only choose one of those Activities; don't list the downpayment assistance under both Activities.
If the PLHA funds are used for the same Activity but for different Area Median Income (AMI) level, select the same Activity twice (or more times) and the different AMI level the Activity
will serve. Please enter the percentage of funds allocated to the Activity in only the first Activity listing to avoid double counting the funding allocation.
Eligible Applicants §300
§300(a) Eligible Applicants for the entitlement formula component described in Section §100(b)(1) are limited to the metropolitan cities and urban counties allocated a grant for the
federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section §5306.
Applicant: City of Chula Vista
Address:
County:
Yes
Yes
YesApplicant agrees to adhere to §501, Audits/Monitoring of PLHA Files.
YesApplicant agrees to adhere to §500, Accounting Records.
Yes
§302(c)(5) Applicant certifies that the Plan submitted is for a term of five years. Local Governments agree to inform the Department of changes made to the Plan in each
succeeding year of the term of the Plan.Yes
§302(c)(6) Applicant certifies that it will ensure compliance with §302(c)(6) if funds are used for the acquisition, construction, or rehabilitation of for-sale housing projects or
units within for-sale housing projects.
§302(c)(8) Has Applicant attached a program income reuse plan describing how repaid loans will be reused for eligible activities specified in Section 301?Yes
Yes
Administration
Local Government Formula Allocation Rev. 2/26/20
Yes
§302(c)(4) Does the application include a Plan in accordance with §302(c)(4)?
CA Zip:91910 San Diego
§300(d) Is Applicant delegated by another Local government to administer on its behalf its formula allocation of program funds?
N/A
File Name:PLHA webpage for Resolution Document Attached and on USB?
State:
Attached and on USB?Yes
§302(c)(3) Applicant certifies that, if the Local Government proposes allocation of funds for any activity to another entity, the Local government’s selection process had no
conflicts of interest and was accesible to the public.
§302(c)(2) Applicant certifies that submission of the application was authorized by the governing board of the Applicant.
Eligible Activities, §301
§302(a) Housing Element compliance: Applicant or Delegating Local Government's Housing Element was adopted by the Local Government’s governing body by the
application deadline and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to Government Code Section 65585.
PLHA Page 1 Formula Allocation Application
§302(c)(4)(E)(ii) Unmet share of
the RHNA at the AMI Level
§302(c)(4)(E)(ii) Projected
Number of Households Served 25 25
3068
TOTAL
3068
50
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the
Proposed Affordable Rental
Housing Activity
80%80%
§302(c)(4)(E)(ii) Area Median
Income Level Served 30%30%
§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.
As outlined within Chula Vista's 2013 Housing Element, Objective H-6 specifically calls for the City to "promote the development of a variety of housing choices, coupled with
appropriate services, to meet the needs of special population groups, including the homeless, those “at-risk” of becoming homeless, persons with disabilities, and seniors." With over
312 homeless persons within Chula Vista as of the 2020 Point in Time Count and 68% of those being unsheltered and as further detailed within the Housing Element there is a
significant gap of the number of unsheltered within the community and the beds available for the general population of homeless.
Housing Element Program 1.1.4 calls for the City to "acquire and rehabilitate existing rental housing throughout the Northwest and Southwest planning areas of the City and set aside a
number of the housing units for very low-income and/or special need households at affordable rents."
Of Chula Vista's 5th Cycle RHNA goal, 34% is to serve extremely low and very low-income households at 50% of the AMI.
§301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-
, low-, or moderate-income households, including necessary Operating subsidies.
§302(c)(4)(E)(i) Provide a description of how allocated funds will be used for each proposed Affordable Rental Housing Activity.
§302(c)(4) Plan Rev. 2/26/20
§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
The City of Chula Vista is proposing 100% of its PLHA funding towards housing opportunities for those earning up to 50 percent of the San Diego County Area Median Income (AMI)
through three types of activities in order of priority as follows: 1) Funding of a minimum 50 bed with a capacity of up to 150-beds low barrier Bridge Shelter; 2) Pre-development and/or
gap financing for the acquisition and development of rental property for use as permanent supportive housing for persons at 30% or less of the AMI for an affordability term of 55 years;
and, 3) to begin a new program to provide loans for the construction of accessory dwelling units for persons at 50% or less of the area median income for a minimum term of 20 years.
In response to the City's declaration of a shelter crisis in 2018 and the current public health crisis of COVID-19, Chula Vista intends to prioritize its PLHA funding to fund in part the
operation of a proposed Bridge Shelter that will provide an opportunity for those most vulnerable within the community safe and stable shelter. Since the City of Chula Vista is receiving
ESG Cares funding, funding will be used first for permanent supportive housing and ADU's for the first two years; after this, the funding will be used for the emergency shelter. Chula
Vista will continue to seek funding for other activities as described based upon leveraging and the most efficient and effective use of various funding sources that may be available at
that time. Use of PLHA funds for this unmet housing need through beds in a Bridge Shelter, permanent supportive rental housing, or ADUs benefiting those economically vulnerable §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of
Area Median Income (AMI).
PLHA funding will only be allocated to activities (e.g. homeless shelter, permanent supportive housing, ADUs for very low income households) seeking to benefit households that are
homeless, at-risk of homelessness and those with household incomes at or less than 50% of the Area Median Income services and, as such, serving the homeless and those
economically vulnerable households meets the requirement to prioritize investments that increase the supply of housing for households with incomes at or below 60% AMI.
The City has experience in leveraging HOME funds and Housing Successor funds to support acquisition and rehabilitation and new construction projects serving households at 30% to
60% AMI that have been funded with tax credits, Multifamily Housing Revenue bonds, State Multifamily Housing funds and other state and county funds. This existing plan will be
utilized for administering PLHA funds as well. The City is currently in process of working with multiple potential projects that can be assisted with PLHA funds. The funding of homeless
services and shelters and affordable housing requires the leveraging of multiple layers of financing. The City and its Housing Authority proposes to combine its available CDBG, ESG,
HOME and remaining Housing Successor funds with PLHA funds to maximize the number of units that can be produced and services and beds available.
Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301))
The provision of affordable permanent supportive housing for those earning up to 30% of the AMI is consistent with the City’s 2013-2021 Certified Housing Element. The City currently
has a pipeline of proposed projects needing financial gap assistance. In leveraging its available Successor Housing funds, the Chula Vista Housing Authority is obligated to provide
financial assistance to those households at 30% of AMI. One or more of current and upcoming projects can utilize PLHA funds. PLHA funds combined with City’s existing HOME and
Housing Successor funds will allow the City to continue to assist developers bring hundreds of new affordable units to the City, thereby bringing the City closer to meeting its RHNA
goals.
Funding Allocation Year 2019 2020 2021 2022 2023
Complete the table below for each proposed Affordable Rental Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more
than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual
funding allocated to the Activity one time (to avoid double counting).
PLHA Page 2 302(c)(4) Plan
§302(c)(4)(E)(i) Provide a description of how allocated funds will be used for each proposed Affordable Rental and
Ownership Housing Activity.
Percentage of Funds Allocated for Affordable
Owner-occupied Workforce Housing
It is anticipated that 100% of the PHLA will be allocated towards operation of the bridge shelter as the City's first priority for the five-year period covered under this Plan or until such time
as other funding resources become available. Should the City's priorities shift away from funding of the Shelter, the City may seek to provide loans to homeowners for the construction
and provision of accessory dwelling units (ADU) to those households at or below 50% of the AMI. The City will make funding available to homeowners on a first come first serve basis
should they agree through the recordation of covenants on their property for a term of 20 years to provide the ADU as affordable to and occupied by households at 50% of the AMI. The
City and homeowner will enter into a Loan Agreement secured by a Deed of Trust and accompanied by a detailed Declaration of Covenants, Conditions and Restrictions to be recorded
on title of the property and running with the land for the duration of the term. City staff will monitor construction until completion of construction. The City will assist homeowners as
needed with identification of qualified renters and its well trained and experienced staff that will conduct the annual covenant monitoring process.
Funding Allocation Year 2019 2020 2021 2022 2023
§302(c)(4)(E)(ii) Unmet share of
the RHNA at AMI Level
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Activity (55 years required for
rental housing projects)
20 20
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of each Affordable Rental and Ownership Housing project.
§302(c)(4)(E)(ii) Projected
Number of Households Served 2 2 4
§302(c)(4)(E)(i) Percentage of
Funds Allocated for Each
Affordable Housing Activity
20%20%
3063
§302(c)(4)(E)(ii) Area Median
Income Level Served 50%50%TOTAL
Complete the table below for each proposed Affordable Rental and Ownership Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting
households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the
percentage of annual funding allocated to the Activity one time (to avoid double counting).
Type of Affordable Housing
Activity ADU ADU
3063
It is anticipated that 100% of the PHLA will be allocated towards operation of the bridge shelter as the City's first priority for the five-year period covered under this Plan or until such time
as other funding resources become available. Should the City's priorities shift away from funding of the Shelter, a competitive NOFA for the development of affordable permanent
supportive rental housing projects for 30% AMI or below will be issued for six weeks. A two-week review period will immediately follow, where highly qualified City staff will review all
proposals, and the most successful project will be identified. Selected projects must demonstrate that they have the capacity to secure other funding sources (i.e. tax credits, county
funds, state funds, etc.). The Chula Vista Housing Authority will approve a loan to the selected developer who will then receive a commitment of PLHA funds for the purposes of gap
funding. When the developer has secured all necessary financing for a project, the City will enter into a Affordable Housing Loan Agreement (residual receipts) secured by a Deed of
Trust and accompanied by a detailed Regulatory Agreement. City staff will monitor construction and coordinate the conversion to permanent financing following the completion of §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that
meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30
days.
55 Years 55 Years 55 Years 55 Years 55 Years 55 Years
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Affordable Rental Housing
Activity (55 years required for
rental housing projects)
55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
PLHA Page 3 302(c)(4) Plan
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance.
§301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
150
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Activity (55 years required for
rental housing projects)
N/A N/A N/A
§302(c)(4)(E)(ii) Projected
Number of Households Served 50 50 50
§302(c)(4)(E)(i) Provide a description of how allocated funds will be used for the proposed Activity.
§302(c)(4)(E)(ii) Unmet share of
the RHNA at AMI Level N/A N/A N/A 0
30%30%30%
Type of Activity for Persons
Experiencing or At Risk of
Homelessness
§301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing.
§301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.Emregency SheltersEmregency SheltersEmregency Shelters§301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing.
TOTAL§302(c)(4)(E)(ii) Area Median
Income Level Served
On May 12, 2020,Chula Vista accepted the use of a Sprung structure from the Lucky Duck Foundation and formerly used by the City of San Diego for Bridge Shelter. Additionally,
Council approved the use of CARES funding of $1.8 million to be used for off and on-site improvements and ramp up costs for the shelter. It is further anticipated that remaining HEAP
funds of $200,000 may also be available. 100% of Chula Vista's PLHA will partially fund operation of the shelter. The City will leverage other funding sources (e.g. HEAP, Successor
Housing, HHAP, etc) to fully fund the shelter's operation. A request for proposals for the operator of the shelter will be issued in the Summer of 2020. All necessary on and off-site
improvements are currently in design. Chula Vista anticipates the opening of the shelter by this Winter for the cold wet months and to serve as potential shelter for the most vulnerable
should the region see a resurgence of COVID-19.
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the
Proposed Activity
100%100%100%
Funding Allocation Year 2019 2020 2021 2022 2023
It is anticipated that 100% of the PLHA will be allocated towards operation of the bridge shelter as the City's first priority for the 5-year period covered under this Plan or until such time
as other funding resources become available. The Chula Vista Bridge Shelter will offer a safe and dignified place for adult men and women experiencing homelessness to receive
bridge housing, emergency shelter, and appropriate services needed while preparing for permanent housing placements using the Housing First model. Chula Vista will begin with 50
beds, but with a maximum capacity of 150 beds, in a sprung structure providing not only housing but wrap-around support services necessary to move guests forward towards self-
sufficiency and healing by providing strategic pathways and interventions.
Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area
Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the
Activity one time (to avoid double counting).
Chula Vista will be adopting its ADU ordinance by the Fall 2020. To reduce barriers, in the coming year, City staff will analyze the County of San Diego's and other jurisdiction's
accepted design plans for ADUs for acceptance by the City for streamlining. Within the next year, staff will monitor the demand for ADU development, financing available to
homeowners, and analyze potential properties within the City meeting the development critieria. In the next 2-3 years, staff will develop a financing program to assist those
homeowners willing to provide housing for very low income households, should the program be deemed to be beneficial to both parties.
§301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds.
§301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management
services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and
preservation of permanent and transitional housing.
PLHA Page 4 302(c)(4) Plan
File Name:Plan Adoption
§302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the
Local jurisdiction and that the public had an adequate opportunity to review and comment
on its content.
Attached and on USB?Yes
§301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in
an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be
in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan
to the affordable housing Project.
PLHA Page 5 302(c)(4) Plan
P a g e | 1
City of Chula Vista Boards & Commissions
Housing Advisory Commission
January 13, 2021 Item: 6
TITLE
RESOLUTION OF THE HOUSING ADVISORY COMMISSION OF THE CITY OF CHULA VISTA RECOMMENDING
THAT THE CITY COUNCIL AUTHORIZE THE CITY TO BECOME A MEMBER OF THE CALIFORNIA COMMUNITY
HOUSING AGENCY (“CALCHA”); SUPPORTING CALCHA’S ISSUANCE OF TAX-EXEMPT BONDS FOR THE
PRODUCTION, PRESERVATION AND PROTECTION OF ESSENTIAL MIDDLE-INCOME RENTAL HOUSING;
AND TAKE ALL ACTIONS NECESSARY FOR PARTICIPATION THEREIN.
RECOMMENDED ACTION
Commission provide an advisory recommendation to the City Council.
SUMMARY
The California Community Housing Agency (CalCHA) is political subdivision of the State specifically created
to provide, preserve, and support housing production for moderate-income, and middle-income households
throughout the state. CalCHA partners with local jurisdictions to issue governmental purpose revenue bonds
to finance the acquisition or development of rent-restricted rental communities for moderate income
households earning 80-120% of Area Median Income (AMI). By providing below-market rents and capping
annual increases, CalCHA benefits the middle-income work force who are not eligible for traditional
affordable housing programs for lower-income households yet are often priced out of the communities
where they work.
ENVIRONMENTAL REVIEW
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act
State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
DISCUSSION
Housing affordability is an increasing issue in California and has been a high priority of the City Council
throughout the housing crisis. There are currently affordable housing programs funded by the City that
create rental opportunities for low-and moderate-income households, such as the City’s Balanced
Communities Policy of the Housing Element (also known as “Inclusionary Housing”). However, because of
the structure of State and federal funding sources, as well as the State Density Bonus Law, affordable rental
housing targets almost exclusively lower-income households, particularly those with incomes below 60% of
AMI. While the Chula Vista Housing Authority exists for the issuance of tax exempt bonds for affordable
housing, its role is limited to providing financing for those housing projects serving households at or below
80 percent of AMI.
P a g e | 2
The California Community Housing Agency (CalCHA) is a joint powers authority, which was created in 2019
to address the needs of those moderate- to middle-income households, or those earning between 80% and
120% of AMI. In San Diego County, this equates to annual income between $92,400 to $138,600 for a
household of four, per the California Tax Credit Allocation Committee’s 2020 maximum income levels .
Through its Essential Middle-Income Rental Housing Program (Program), CalCHA acquires existing market-
rate apartment communities through the issuance and sale of its own governmental purpose bonds. CalCHA
is granted a 100% property tax exemption for each property it acquires. These complexes are then converted
to rent- restricted units for Median-Income and Moderate-Income households earning no more than 120%
of AMI. Existing tenants are not displaced, but all new tenants would need to income-qualify. It is expected
that all housing units are in compliance with affordability requirements within one to two years as leases
expire and tenants are able to participate in the Program.
Joining the joint powers authority would bring the possibility of increased affordable housing opportunities
to the City that is not dependent on local subsidy and would provide rental housing affordable to middle
income renters, who often do not have access to rent regulated affordable rental housing at their income
level. Rents on affordable units created through this Program would be capped at a maximum of 35% of the
applicable percentage of AMI, and annual rent increase percentages are also capped at a maximum of 4%,
well below the limits allowed with Assembly Bill (AB)1482. Effective January 1, 2020 AB1482 brought
changes to tenant protections in California. These include limits to rent increases to no more than two per
year and capping rent increases to 5% plus inflation, but no more than 10% per year.
For the Program to acquire properties in Chula Vista, the City would first need to become a member of
CalCHA. Once that process is completed, any properties identified are brought to designated City staff for
approval to allow CalCHA to move forward with acquisition of the property. If they are granted approval,
the City would need to sign a Purchase Option Agreement for the property. Between years 1 and 15, there is
no obligation or City involvement with the acquired property. The Purchase Option Agreement allows, but
does not obligate, the City to purchase the property between years 15 and 30 of the bonds. To maintain
affordability beyond 30 years, the City would likely need to assign its purchase option to a non-profit housing
corporation. If the City elects not to exercise its purchase option, CalCHA maintains the right to sell the
property after Year 30, at which time all net sale proceeds would be granted to the City. The City would
receive any surplus cash flow from the property during the life of the bonds. The City has the option of
directing any revenues it may receive from the Program to be used for affordable housing, or the City could
opt to keep the revenue unrestricted. The City would not be a direct party to the real estate transaction or
financial transaction. The bonds issued by CalCHA for a project are payable solely out of the revenues and
receipts derived from the project being financed and are not obligations of the City.
To date, the following jurisdictions are members of CalCHA:
Carson Dublin Fairfield
Glendale Hayward La Mesa
Larkspur Livermore Marin County
Menlo Park Morgan Hill Mountain View
Napa Rancho Cordova Santa Rosa
Walnut Creek
P a g e | 3
In addition, since its inception in January 2019, CalCHA has acquired four assets:
1) Annadel Apartments in Santa Rosa (390 units),
2) Verdant at Green Valley in Fairfield (286 units),
3) Serenity at Larkspur in Larkspur (342 units), and
4) The Arbors in Livermore (162 units) – all totaling more than $550 million of
acquisitions/conversions.
Any fiscal impact would occur in the future if, and when, the City exercised its right under a Purchase Option
Agreement to purchase a property from CalCHA. Staff would analyze any such purchase and report to the
City Council for their consideration. The Purchase Option Agreement does not create an obligation on the
part of the City to purchase or acquire the property. Should any property acquired through the Program
generate income through surplus cash flow or a one-time sale, the City would receive the generated income.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and
consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There are no financial expenditures, liabilities, or obligations created by joining CalCHA.
ONGOING FISCAL IMPACT
There are no ongoing impacts to the General Fund. CalCHA’s Program is implemented at no cost to the City.
ATTACHMENTS
1. CalCHA’s Joint Exercise of Powers Agreement and First Amendment
2. Purchas Option Agreement Template
Staff Contact: Dania Gonzalez, Management Analyst
RECORDING REQUESTED BY
California Community Housing Agency
WHEN RECORDED RETURN TO:
Orrick, Herrington & Sutcliffe LLP
405 Howard Street
San Francisco, CA 94105
Attention: Jesse Albani
PURCHASE OPTION AGREEMENT
By and Between
CALIFORNIA COMMUNITY HOUSING AGENCY
and
CITY OF [CITY]
_________________________
Dated as of [DATE]
_________________________
Relating to
CALIFORNIA COMMUNITY HOUSING AGENCY
ESSENTIAL HOUSING REVENUE BONDS, [SERIES]
([PROPERTY NAME])
and
CALIFORNIA COMMUNITY HOUSING AGENCY
SUBORDINATE ESSENTIAL HOUSING REVENUE BONDS, [SERIES]
([PROPERTY NAME])
PURCHASE OPTION AGREEMENT
This PURCHASE OPTION AGREEMENT (“Option Agreement ”) is made effective as of
[DATE] (“Effective Date”) by and between the CALIFORNIA COMMUNITY HOUSING
AGENCY a joint exercise of powers agency organized and existing under the laws of the state of
California (including its successors and assigns, “Owner”) and City of [CITY] (“Host”).
BACKGROUND
WHEREAS, the Owner proposes to issue Bonds (as hereinafter defined) to finance Owner’s
acquisition of the certain multifamily rental housing project (the “Project”) located at [ADDRESS]
in [CITY], California, located on the real property site described in Exhibit A hereto; and
WHEREAS, the Owner intends to offer the Project to the Host pursuant to this Option
Agreement.
AGREEMENT
In consideration of the mutual covenants herein contained, and such other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, Owner and Host
mutually agree as follows:
Section 1. Grant of Option. Owner hereby grants to Host an option (“Option”) to
purchase the Optioned Property (as herein defined) upon payment of the Option Price (as herein
provided) within the Option Term (as herein defined) and in compliance with and observance of
all of the terms and conditions of this Option Agreement.
Section 2. Definitions. Capitalized terms used in this Option Agreement shall have the
meanings assigned to them in this Section 2; capitalized terms used in this Option Agreement and
not defined in this Section 2 or elsewhere herein shall have the meanings assigned to them in the
Indenture (herein defined).
(a) “Authority Indemnified Parties” – the Owner and each of its offic ers, governing
members, directors, officials, employees, attorneys, agents and members.
(b) “Bonds” – collectively, (i) the California Community Housing Agency
Essential Housing Revenue Bonds, [SERIES] ([PROPERTY NAME]) (the “Series A Bonds”),
and (ii) the California Community Housing Agency Subordinate Essential Housing Revenue
Bonds, [SERIES] ([PROPERTY NAME]) (the “Series B Bonds”), with such other series and sub-
series designations as may be set forth in the Indenture, originally issued to finance Owner’s
acquisition of the Project and related transaction costs.
(c) “Bond Trustee” – Wilmington Trust, National Association or any successor
trustee under the Indenture.
(d) “Closing” – shall have the meaning set forth in Section 9 hereof.
(e) “Conveyance” – that transaction or series of transactions by which Owner shall
transfer, bargain, sell and convey any and all right, title or interest in and to the Optioned Property
to Host.
(f) “Extraordinary Costs and Expenses” – shall have the meaning set forth in the
Indenture.
(g) “Indenture” – the Indenture of Trust dated as of [DATE] between Owner, as
issuer, and the Bond Trustee, as trustee, pursuant to which the Bonds were issued.
(h) “Manager” – Catalyst Housing Group LLC and its successors and assigns.
(i) “Option Price” – the sum of the amounts set forth below:
i. an amount sufficient to either prepay, redeem in whole or fully defease
for redemption on the earliest call date all Project Debt; plus
ii. any fees or other amounts not identified in clause (i) that may be necessary
to effect the complete release from and discharge of any lien, mortgage or other
encumbrance on the Optioned Property; plus
iii. any amounts due to Owner (including the Authority Indemnified Persons,
as provided in the Indenture), the Bond Trustee or any predecessor or successor, or any
other Person under any indenture, loan agreement, bond, note or other instrument
relating to any Satisfied Indebtedness (including, without limitation, indemnification
amounts, Owner’s Extraordinary Costs and Expenses, recurrent and extraordinary fees
and expenses, and reimbursable costs and expenses of any kind or nature); plus
iv. Transaction Costs; minus
v. The amount of any Project Debt assumed by Host; and minus
vi. Any funds held by or for Owner under the Indenture applied to the
retirement of Project Debt.
(j) “Option Exercise Date” – the date fifteen (15) years from the issuance of the
Bonds.
(k) “Option Term” – shall commence on the Option Exercise Date and, if not
exercised, shall terminate at 11:59 p.m. local time on the date that is fourteen (14) years from the
Option Exercise Date.
(l) “Optioned Property” – means all of Owner’s right, title and interest (which
includes fee simple title to the real property) in and to all property and assets used in or otherwise
related to the operation of the Project including, without limitation, all real property and interests
in real property, all tangible and intangible personal property including furniture, fixtures,
equipment, supplies, intellectual property, licenses, permits, approvals, and contractual rights of
any kind or nature together with the right to own and carry on the business and operations of the
Project.
(m) “Outstanding” – with respect to Bonds, as of any given date, all Bonds which
have been authenticated and delivered by the Trustee under the Indenture, except: (i) Bonds
cancelled at or prior to such date or delivered to or acquired by the Trustee or prior to such date
for cancellation; (ii) Bonds deemed to be paid in accordance with Article VIII of the Indenture;
and (iii) Bonds in lieu of which other Bonds have been authenticated under the Indenture.
(n) “Project Debt” – any debt secured by the Project and incurred to fin ance or
refinance Owner’s acquisition of the Project and related transaction costs, including any portion
of the Bonds and any bonds, notes or other indebtedness issued by Owner to refund the Bonds in
whole or in part.
(o) “Transaction Costs” – to the extent not otherwise described herein, any costs or
expenses of any kind or nature associated with or incurred by Owner and Host in connection with
the consummation of the Conveyance, any refinancing of the Project or assumption of Project Debt
regardless of whether such costs and expenses are customarily borne by the seller or purchaser in
any such transaction, including but not limted to taxes, recording fees and other impositions,
Owner’s and Host’s legal and other professional fees, fees for verification agents, bidding agents,
escrow agents, custiodians or trustees, assumption fees, prepayment fees, the cost of the appraisal,
surveys, inspections, title commitments, title insurance premiums and other title-related fees, and
all amounts required for indemnification of Authority, Trustee and Manager.
Section 3. Effectiveness; Term and Termination. The Option shall become effective
on the Option Exercise Date and may be exercised during the Option Term. Owner agrees that it
will not enter into any agreement to sell all or any part of the Optioned Property during the Option
Term, without the specific written request of the Host and written consent of the Owner, which
consent shall not be unreasonably withheld, and delivery of an Opinion of Bond Counsel to the
Owner substantially to the effect that such sale will not, in and of itself, adversely affect the
exclusion of interest on the Bonds from gross income for purposes of federal income taxation .
After expiration of the Option Term, Host shall not be precluded from purchasing all or any portion
of the Optioned Property from Owner at a price and on the terms agreed upon by Host and Owner,
but Owner shall not be precluded from seeking or agreeing to sell, or consummating the sale of,
all or any portion thereof to any third person.
Section 4. Manner of Exercise.
(a) Owner’s Notice. At least six (6) months prior to the Option Exercise Date, Owner
shall provide Host notice of the Option Exercise Date; provided, however, that failure to provide
such notice shall not affect the sufficiency or validity of any proceedings taken in connection with
the exercise of the Option.
(b) Host’s Notice. To exercise the Option, Host shall provide a notice (an “Exercise
Notice”) to Owner at any time prior to the end of the Option Term.
(c) Owner’s Response. Within fifteen (15) business days of its receipt of the Exercise
Notice, Owner shall provide Host with written estimate of the amounts comprising the Option
Price.
(d) Host’s Response. Within fifteen (15) business days of its receipt of Owner’s
estimate under Subsection (c), Host shall notify Owner in writing either (i) that it is withdrawing
its Exercise Notice, or (ii) that it intends to proceed with the purchase of the Optioned Property.
(e) Fixing of Option Price; Contractual Obligation. Unless Host notifies Owner in
writing that it is withdrawing its Exercise Notice within fifteen (15) business days of its receipt of
Owner’s estimate under Section 4(c) hereof, Host shall deliver to Owner a purchase agreement
therefor in form and substance satisfactory to Owner and its counsel subject to the terms and
conditions of this Option Agreement. Unless Owner shall have objected to the form of purchase
agreement within fifteen (15) business days of its receipt thereof, Owner shall be deemed to have
accepted the terms of the purchase agreement without the need for the signature of Owner thereon,
and Host shall be obligated to purchase and Owner shall be obligated to sell and convey to Host
good and marketable title to the Optioned Property at the Option Price within ninety (90) days
thereafter.
Section 5. Determination of Option Price. Unless the parties otherwise agree, Owner
shall cooperate with Host and provide Host with all information and records in its possession, and
access to counsel and other professionals, to assist Host in determining and updating the Option
Price.
Section 6. Surplus Cash. The Owner shall cause the Trustee to create an account (the
“Excess Revenue Fund”) under (i) the Indenture or (ii) in the event that the Bonds have been retired
and the Indenture discharged, a separate trust agreement identifying Owner as trustor, a trustee
selected by Owner as trustee, and Host as beneficiary, into which excess revenue over expenses
shall be deposited. Upon the commencement of the Option Term, after full payment of the fees,
charges and expenses of the Owner and the Trustee and other amounts required to be paid pursuant
to the Indenture or other documents relating to then-outstanding Project Debt, amounts remaining
in the Excess Revenue Fund shall be transferred to the Host. Thereafter, amounts in the Excess
Revenue Fund shall be transferred to the Host periodically.
The Host shall apply amounts in the Excess Revenue Fund to the payment of
the Option Price and thereafter shall apply such funds in its sole discretion.
Section 7. Terms of Conveyance.
(a) The Conveyance shall be in the nature of a grant deed in which Owner shall
deliver one or more deeds, bills of sale, or other instruments of transfer without r ecourse or
warranty of any kind or nature.
(b) The Optioned Property will be conveyed to Host in AS IS CONDITION, WITH
ALL FAULTS, and without representations or warranties of any kind or nature as to the condition
of the Property. Host acknowledges that Owner will convey the Optioned Property AS IS and that
OWNER IS MAKING NO WARRANTIES AND REPRESENTATIONS, EXPRESS OR
IMPLIED, with reference to the condition of the Property. HOST WAIVES ANY AND ALL
CLAIMS AGAINST OWNER, INCLUDING BUT NOT LIMITED TO, CLAIMS BAS ED IN
PART, INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE, STRICT LIABILITY AND
STRICT RESPONSIBILITY, IN CONTRACT, IN WARRANTY, IN EQUITY, OR UNDER
ANY STATUTE, LAW OR REGULATION ARISING DIRECTLY OR INDIRECTLY OUT OF
ANY CONDITION OF THE PROPERTY.
(c) There shall be no partial transfer and that, upon consummation of the
Conveyance, Owner shall be fully divested of any and all right, title or interest in and to the
Optioned Property.
(d) Upon payment of the Option Price, as adjusted for any prorations, credits and
charges, Owner shall convey title to the Optioned Property by quit claim deed reasonably
satisfactory in form and substance to Host.
Section 8. Closing. The closing of the Conveyance (“Closing”) shall take place not later
than the ninetieth (90th) calendar day following the date on which the parties agree on the terms of
the purchase agreement pursuant to Section 4(e) hereof at such time within normal business hours
and at such place as may be designated by Host.
(a) Prorations. All general and special real property taxes and assessments, and rents
shall be prorated as of the Closing, with Host responsible for all such items to the extent arising or
due at any time following the closing. General real property taxes shall be prorated at the time o f
Closing based on the net general real property taxes for the year of Closing.
(b) Limitation. If, after taking into account all adjustments and prorations, the net
amount due Owner at Closing is less than the Option Price, the Option Price, as the case may be,
shall instead be the Option Price, it being understood and agreed that in no event shall Owner
receive proceeds less than the amount necessary to fully retire or defease, as the case may be, the
Series A Bonds and the Series B Bonds and otherwise satisfy all of the payments constituting the
components of the Option Price.
Section 9. Recording. This Option Agreement, and any amendment thereto, shall be
recorded with the recorder’s office of the County of Solano; provided, that in the event Host fails
to exercise the Option, then upon termination of the term of this Option Agreement, Host shall
cooperate with Owner to remove any such recorded Option Agreement or amendment ther eto from
title to the Optioned Property upon Owner’s reasonable request therefor and, in any event, by no
later than thirty (30) days after the expiration of the original term of this Option Agreement. In the
event that, within said time, Host fails to so cooperate and provide its original signature to a
termination of such recorded Option Agreement or amendment thereto, then Host hereby
irrevocably constitutes and appoints Owner as Host’s true and lawful attorney (and agent -in-fact)
to execute in Host’s name any such termination.
Section 10. Possession. Physical possession of the Optioned Property shall be delivered
to Host at the time of Closing.
Section 11. Title Insurance, Title Defects.
(a) Within fifteen (15) business days after it receives the Option Exercise Notice,
Owner shall provide Host with a title commitment (the “Title Commitment”) in the customary
ALTA form of Standard Owner’s Policy of Title Insurance in Host’s favor, for the amount
equivalent to the Option Price (whichever is applicable), with a commitment to insure good and
marketable fee simple title to the Optioned Property in Host, issued by a title ins urance company
licensed to do business in the State of California and acceptable to Host (the “Title Company”).
The policy shall show the status of title to the Optioned Property and show all exceptions, including
easements, restrictions, rights-of-way, covenants, reservations, and other conditions of record, if
any, affecting the subject real estate. Accompanying the Title Commitment, Owner shall also have
Title Company furnish Host with true, correct, complete, and legible copies of all documents
affecting title to the subject real estate. The cost and expense of such Standard Owner’s Title
Commitment shall be payable as a Transaction Cost. Host shall pay the additional premium due if
Host elects to obtain an extended coverage policy of title insurance and /or extended coverage
endorsements. Owner shall cooperate with Host, at no expense to Owner, by providing an affidavit
to Title Company to induce Title Company to issue to Host at Closing a “GAP” endorsement to
the Title Commitment showing the effective da te of the Title Commitment to be the time and date
of Closing.
(b) If the Title Commitment shows exceptions to title which are unacceptable to Host,
Host shall, within ten (10) business days after receipt of the Title Commitment and not later than
twenty (20) business days before the date for Closing, notify Owner of such fact and Owner shall
have twenty (20) business days after Owner receives Host’s written objections to cure such defects
and to present a Title Commitment on the basis of which Closing may occur or to notify Host that
Owner will not cure same. If Owner cannot or will not cure such defects within such twenty (20)
day period and thereafter convey title to the Property as required in this Agreement, then Host shall
have the right (at Host’s option) to either:
(i) Rescind the Option Exercise Notice and Owner may proceed to close the
sale under the terms of the third-party offer, if there is a third-party offer; or
(ii) Accept whatever title Owner can or will convey, without reduction in the
purchase price because of such title defects. Any exceptions to title disclosed on the
Title Commitment to which Host does not timely object to in writing or to which Host
objects but thereafter accepts by Closing shall be included as a “Permitted Exception.”
Section 12. Assignment. The Host shall not assign the Option without the prior written
consent of the Owner, which consent shall not be unreasonably withheld, and delivery of an
Opinion of Bond Counsel to the Owner substantially to the effect that such assignment will not, in
and of itself, adversely affect the exclusion of interest on the Bonds from gross income for purposes
of federal income taxation. Notwithstanding the foregoing, neither party to this Option Agreement
shall assign its interests, obligations, rights and/or responsibilities under this Option Agreement
without the prior written consent of the other party.
Section 13. No Individual Liability. No Authority Indemnified Person shall be
individually or personally liable for the payment of any sum hereunder or be subject to any
personal liability or accountability by reason of the execution and delivery of this Option
Agreement , or by any proceedings for the determination of the Option Price, or Host’s exercise
or waiver of same, or otherwise except in the case of such Authority Indemnified Person’s own
willful misconduct.
Section 14. Notices, Governing Law, Binding Effect and Other Miscellaneous
Provisions.
(a) Notices. All notices provided for in this Option Agreement shall be in
writing and shall be given to Owner or Host at the address set forth below or at such other address
as they individually may specify thereafter by written notice in accordance herewith:
If to Owner: California Community Housing Agency
1400 W. Lacey Blvd., Building 1
Hanford, California 93230
Attention: Michael LaPierre
With a copy to: Catalyst Housing Group
21 Ward Street, Suite 2
Larkspur, California 94939
Attention: Jordan Moss
If to Host: City of [CITY]
[ADDRESS]
Attention: [NAME, DEPARTMENT]
Such notices shall be deemed effective upon actual delivery or upon the date that any such delivery
was attempted and acceptance thereof was refused, or if mailed, certified return receipt requested,
postage prepaid, properly addressed, three (3) days after posting.
(b) Consents and Approvals. All consents and approvals and waivers required
or asserted hereunder shall be in writing, signed by the party from whom such consent, approval,
waiver or notice is requested, provided that no written consent or approval of Owner shall be
required for any action that Host may, in its reasonable good faith judgment, find it necessary to
take in the event of an emergency.
(c) Cooperation. Owner will keep Host advised of its complete name at all
times, including any change of such name. Host will keep Owner advised of its complet e name at
all times, including any change of such name.
(d) Pronouns. Where appropriate to the context, words of one gender include
all genders, and the singular includes the plural and vice versa.
(e) Amendments. This Option Agreement may not be modified except in a
written instrument signed by Host and Owner.
(f) Complete Agreement. This Option Agreement together with all schedules
and exhibits attached hereto and made part thereof supersedes all previous agreements,
understandings and representations made by or between the parties hereto.
(g) Governing Law. This Option Agreement shall be governed by and
construed in accordance with the laws of the State of California, without regard to conflicts of law
principles. All claims of whatever character arising out of this Option Agreement, or under any
statute or common law relating in any way, directly or indirectly, to the subject matter hereof or to
the dealings between Owner and any other party hereto, if and to the extent that such claim
potentially could or actually does involve Owner, shall be brought in any state or federal court of
competent jurisdiction located in Kings County, California. By executing and delivering this
Option Agreement, each party hereto irrevocably: (i) accepts generally and unconditionally the
exclusive jurisdiction and venue of such courts; (ii) waives any defense of forum non -conveniens;
and (iii) agrees not to seek removal of such proceedings to any court or forum other than as
specified above. The foregoing shall not be deemed or construed to constitute a waiver by Owner
of any prior notice or procedural requirements applicable to actions or claims against or involving
governmental units and/or political subdivisions of the State of California that may exist at the
time of and in connection with such matter.
(h) Legal Construction. In case any one or more of the provisions contained in
this Option Agreement shall for any reason be held by a court of competent jurisdiction to be
invalid, illegal or unenforceable in any respect, such invalid provision shall be deemed severable,
and shall not affect the validity or enforceability of any other provisions of this Option Agreement,
all of which shall remain fully enforceable.
(i) Term. This Agreement shall terminate upon the earlier of (a) the
Conveyance or (b) the first date on which all Project Debt has been retired and Owner has made
an absolute assignment to Host of all future Surplus Cash.
(j) Captions. The captions used in this Option Agreement are solely for
convenience, and shall not be deemed to constitute a part of the substance of the Option Agreement
for purpose of its construction.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have executed this Option Agreement as of the date set
forth above.
CALIFORNIA COMMUNITY HOUSING
AGENCY
By:
________________
CITY OF [CITY]
By:
________________________________
Signature Page to Purchase Option Agreement
A Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California )
County of ______________________ )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
v . 0 01 P a g e | 1
City of Chula Vista Boards & Commissions
Housing Advisory Commission
January 13, 2021 Item No. 7
TITLE
RESOLUTION OF THE HOUSING ADVISORY COMMISSION OF THE CITY OF CHULA VISTA RECOMMENDING
THE CITY COUNCIL APPROVE THE ISSUANCE, SALE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE
BONDS OF THE CHULA VISTA HOUSING AUTHORITY AND THAT THE CHULA VISTA HOUSING AUTHORITY
EXPRESS ITS INTENT TO ISSUE TAX-EXEMPT OBLIGATIONS FOR THE PROPOSED DEVELOPMENT OF
COLUMBA APARTMENTS
RECOMMENDED ACTION
Commission provide an advisory recommendation to the City Council.
SUMMARY
The Chula Vista Housing Authority (“CVHA”) has received a request from Chelsea Investment Corporation
(“Project Sponsor”) on behalf of Millenia II CIC, LP to consider the issuance of tax exempt private activity
bonds to finance the construction, maintenance, and operation of 200 affordable units for lower-income
households at Columba Apartments (the “Project”). The Project is located at the northwest corner of Solstice
Avenue and Optima Street in the Millenia (formerly known as the Eastern Urban Center) master planned
community.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed project for compliance with the California
Environmental Quality Act (CEQA) and has determined that the Project was adequately covered in previously
certified Final Second Tier Environmental Impact Report (EIR 07-01) – SCH No. 2007041074 for Otay Ranch
Eastern Urban Center (EUC) Sectional Planning Area (SPA) Plan and Tentative Map. Therefore, no further
CEQA review or documentation is necessary.
DISCUSSION
The Project Sponsor is requesting that the CVHA be the conduit bond issuer for tax-exempt private activity
bonds (“tax-exempt bonds”) in an aggregate amount not to exceed $60 million for new construction and
operation of the Project located at northwest corner of Solstice Avenue and Optima Street (Attachment 1:
Locator Map). An application will be submitted by February 5, 2021 to the California Debt Limit Allocation
Committee (CDLAC), the State bonding authority, and for the companion tax credits from the California Tax
Credit Allocation Committee (CTCAC). The bond allocation and tax credit contributions will be used to
substantially finance the Project.
In compliance with Section 147(f) of the Internal Revenue Service Code of 1986, reflecting the Tax Equity
and Fiscal Responsibility Act of 1982 (TEFRA), the Chula Vista’s hearing officer, the City Manager, as
appointed by City Council Resolution No. 2020-248, held the TEFRA (public hearing) on Tuesday December
29, 2020 at 4:00 p.m. at the City Council Chambers of the City of Chula Vista, California to allow public
P a g e | 2
comments in the issuance of the notes and the Project for which bond funds will be allocated. No comments
were received at this public hearing. At this time, the Housing Advisory Commission (HAC) is asked to
consider a recommendation to the City Council and the CVHA regarding the issuance tax exempt private
activity bonds to finance the Project and its approval of the issuance, sale, and delivery of multi-family
housing revenue bonds by the CVHA at such time a bond allocation is received.
The Development Team
The development team will be led by Project Sponsor, Chelsea Investment Corporation, an award winning,
for-profit corporation headquartered in Carlsbad, California. Since 1995, Project Sponsor and its affiliates
have developed approximately 9,768 rental units in 77 Chelsea-owned developments in four states. Project
Sponsor has substantial experience in a wide range of housing developments and has developed multiple
rental housing developments in Chula Vista using City loan funds. At bond closing, a limited partnership,
Millenia II CIC, LP, will be created to construct, maintain and operate the Project. Millenia II CIC, LP will serve
as the Administrative General Partner, with Pacific Southwest Community Development Corporation
(PSCDC), a California Non-Profit Public Benefit Corporation as Managing Partner.
Table 1 - Development Team Summary
Role FIRM/CONTACT
Ownership Millenia II CIC, LP
Managing General Partner 0.01 % PSCDC
Administrative General Partner 0.09 % TBD
Tax Credit Investor/Limited Partner 99.99 % TBD
Property Management ConAm Management
Corporation
Lender/Purchaser TBD
Architect JWDA
General Contractor Emmerson Construction, Inc.
Project Sponsor will be responsible for managing the construction of the property through completion and
cost certification, with a general contractor overseeing construction. The Project Sponsor will also be
responsible for preparation of annual property-specific budgets, marketing, leasing, overseeing property
management and maintenance, income-qualification of residents, annual reporting to investor and lender,
payments to lenders and provide resident services. The property will be managed by ConAm Management
Corporation, a San Diego based multifamily real estate services company that operates more than 53,000
apartment communities across 11 states.
The Proposed Project
The Project will be built within the Millenia (Eastern Urban Center) master planned community in eastern
Chula Vista, providing rental housing opportunities for extremely low- to low-income households and
assisting the City in meeting its Regional Housing Needs Allocation (RHNA). The development envisions 200
units that consists of 60 1-bedroom units, 80 2-bedroom units, 60 3-bedroom units and two units for on-site
management. Project amenities includes a community room, property management office, outdoor
courtyards, and a tot lot.
P a g e | 3
The Project is ideally located for the convenience of residents. The Project is within comfortable walking and
biking distance to recreational opportunities and neighborhood services and has direct access to public
transportation.
Nearby amenities and services include:
▪ Less than .5 miles from the Vons grocery store and other nearby shopping including Otay Ranch Mall; &
▪ Less than .5 mile from Stylus and Stata parks.
The Project cost for both acquisition and construction is estimated to total $95 million, as summarized in
Table 2 below.
Table 2 – Estimated Costs
Description Total Estimated Costs Estimated Costs
per Unit
Estimated Costs
per Gross Building
Sq Ft
Acquisition $11,000,000 $55,000 $71
Construction & Hard Costs $50,753,758 $253,769 $329
Soft Costs $33,696,836 $168,484 $218
TOTAL COSTS $95,450,594 $477,253 $618
TOTAL Dwelling Units (DUs) 200
TOTAL Gross Bldg Sq Ft 154,400
Income & Rent Restrictions
For the bond financing, Section 142 (d) of the Internal Revenue Code requires either a minimum of 20
percent of the rental units in the Project to be available for occupancy by persons or families whose income
does not exceed 50 percent of the area median income (AMI) for the San Diego Primary Metropolitan
Statistical Area, or alternatively, at least 40 percent of the rental units are required to be ava ilable for
occupancy by persons or families whose income does not exceed 60 percent of the AMI. The units are made
available at affordable rents established by the applicable State law.
The project will exceed the affordability requirements with 198 units currently restricted as affordable for
extremely low to low-income households, ranging from 30 percent to 70 percent of area median income,
with two units reserved for the resident managers, as detailed in Table 3 below. The Project proposes to
maintain the existing income and rent restrictions for fifty-five years from the effective date of the bond
financing agreements. These income and rent restrictions will be outlined within a bond regulatory
agreement to be recorded against the property and shall be in compliance with the CDLAC Committee
Regulations and the Low Income Housing Tax Credit program as set forth in Section 42 of the Internal
Revenue Code in 1986, as amended (“LIHTC”).
Table 3 – Affordability and Monthly Rent
(Effective April 2020)
P a g e | 4
Unit Type Sq Ft Total No.
of Units
Gross Monthly
Rent1
Monthly Household
Income2
1 Bdrm 550 60
30% AMI 6 $ 649.00 $ 2,023
50% AMI 6 $ 1,083.00 $ 3,371
60% AMI 24 $ 1,299.00 $ 4,045
70% AMI 24 $ 1,566.00 $ 4,719
2 Bdrm 760 79
30% AMI 8 $ 780.00 $ 2,310
50% AMI 8 $ 1,300.00 $ 3,850
60% AMI 31 $ 1,560.00 $ 4,620
70% AMI 32 $ 1,820.00 $ 5,390
3 Bdrm 1,010 59
30% AMI 6 $ 901.00 $ 2,600
50% AMI 6 $ 1,501.00 $ 4,333
60% AMI 23 $ 1,802.00 $ 5,200
70% AMI 24 $ 2,102.00 $ 6,067
MGR's Units 2
TOTAL 154,400 200
1 LIHTC Rent Limits for 2020
2 Assumes 1 person per bedroom
Compliance with the income and rent restrictions will be subject annually to a regulatory audit and annual
tax credit certification. Compliance with strict property management policies and procedures will ensure
that income and rent restrictions will be maintained for the full 55-year compliance period.
Proposed Housing Bonds/Notes
Multifamily housing financing often involves the issuance of tax-exempt Multifamily Housing Revenue
Bonds/Notes (Notes) on behalf of private developers of qualifying affordable rental apartment projects. The
advantages of tax-exempt financing to developers include below-market interest rates, longer loan terms,
and access to Low-income Housing Tax Credits (Tax Credits) – features that are not available with typical
conventional multifamily housing mortgage loans.
Utilizing the CVHA’s tax-exempt borrowing status, the lower tax-exempt interest rate financing (and making
Federal four percent Tax Credits available) is passed on to developers of affordable rental housing. The
CVHA’s ability to issue tax-exempt bonds/notes is limited under the U.S. Internal Revenue Code.
To issue tax-exempt bonds/notes for a development, the CVHA must first submit an application to the CDLAC
for a tax-exempt bond/note allocation. The Project Sponsor intends to submit an application to CDLAC for
a $60,000,000 tax-exempt bond/note allocation by the February 5, 2021 deadline and will also apply to
CTCAC for companion Tax Credits. CDLAC will make its final awards in April 2021.
P a g e | 5
The Notes will be used for new construction financing. The Notes will meet the requirements of the CVHA’s
Multifamily Housing Revenue Bond Program policy and will fully comply with the City bond disclosure
policies, as well as State and Federal tax law.
Proposed Financing
The Tax-Exempt Multi-Family Revenue Bonds and Low-Income Housing Tax Credit financing will support
the majority of the estimated $95.45 million total development cost of the Project. The Project Sponsor has
requested the CVHA consider the issuance of a series of tax-exempt obligations with a total aggregate
principal not to exceed $60 million to provide construction and permanent loans to finance the Project. The
bond amount that is ultimately issued will be based upon project costs, revenues and interest rates prevailing
at the time of bond issuance.
The Project Sponsor will also apply for approximately $41.3 million in Low Income Housing Tax Credits. A
Tax Credit Investor will be identified prior to Project closing.
The balance of needed funds for the construction and permanent financing of the Project is proposed to be
provided by a seller note, land donation, Junior C bond, and a deferred developer fee. No financial assistance
from the City or the CVHA is being requested for the Project. The Project pro-forma submitted by the Project
Sponsor is provided as Attachment 3.
Development Schedule
The estimated development timeline is as follows:
Table 4 – Schedule
Milestones Date
TEFRA Hearing December 29, 2020
Housing Advisory Commission meeting January 13, 2021
Housing Authority & City Council meeting:
Bond Inducement and TEFRA Resolutions
January 19, 2021
CDLAC/CTAC Application Submittal February 5, 2021
CDLAC Award April 28, 2021
Housing Authority & City Council meeting for Final Bond
Authorization
Fall 2021
Start Construction October 2021
Complete Construction June 2023
Lease Up Complete October 2023
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the Housing Advisory Commission members and has found no
property holdings within 1,000 feet of the boundaries of the property which is the subject of this action.
Consequently, this item does not present a disqualifying real property-related financial conflict of interest
under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political
Reform Act (Cal. Gov’t Code §87100,et seq.).
P a g e | 6
Staff is not independently aware, and has not been informed by any HAC member, of any other fact that may
constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Bond Financing is a self-supporting program with the Project Sponsor responsible for the payment of all
costs of issuance and other costs of the bonds. The CVHA will receive compensation for its services in issuing
bonds by charging an origination fee equal to 20 basis points (0.20%) of the total original principal amount
of the bonds to be issued, with a minimum fee of $15,000. The issuance fee estimated to be paid to the CVHA
by the owner will be $120,000 ($60 million x 0.0020).
ONGOING FISCAL IMPACT
The Multifamily Housing Revenue Bond program is self-supporting. Staff costs associated with monitoring
compliance of the regulatory restrictions and administration of the outstanding bonds will be reimbursed
from an annual administrative fee of $21,000 paid to the CVHA by the owner for the term of the bond
regulatory agreement.
ATTACHMENTS
1. Locator Map
2. Project Pro Forma
Staff Contact: Jose Dorado, Sr. Management Analyst, Chula Vista Housing Authority
Attachment 1
Revision Date:
Print Date:
Closing Completion Conversion 8,609
$17,500/unit 3,500,000$ Equity Pay In 10%0%88%2%
Basis Eligible Acquisition Cost 11.52%$37,500/unit 7,500,000 0.8700$
11,000,000 0.7400$
0.8700$
$4,750/unit 950,000 3.07%
$0/unit 0 96.99%
$0/acre 0
0 stalls #DIV/0!0
#DIV/0!$241,685/unit 48,336,912 0
0.0%$0/unit 0
$0/unit 0
5.0%$12,084/unit 2,416,846
$328.72/gsf 50,753,758
AMI Studio 1BR 2BR 3BR Totals
5,450 Sq. Ft.0 550 760 1,010 154,400
1.74% of GC $4,420/unit 884,050 250 UA $37 $47 $58
$30,233/unit 6,046,619 5.00%120%0 0 0 0 0
$1,313/unit 262,500 1.15 100%0 0 0 0 0
$3,883/unit 776,681 35 70%0 24 32 24 80
$40,476/unit 8,095,237 4.00%60%0 24 31 23 78
$54,566/unit 10,913,121 4.50%50%0 6 8 6 20
$30,673/unit 6,134,594 13,099,519 40%0 0 0 0 0
$2,920/unit 584,034 55,000,000 30%0 6 8 6 20
33,696,836 5,000,000 Mgr.0 0 1 1 2
73,099,519 Totals 0 60 80 60 200
95,450,594
Cash Developer Fee 4,196,242 Tiebreaker 227,200 Bedrooms for tiebreaker 250
DDA/QCT BoostDDA (2021 confirmed)Tract #: 113.04 130%
Federal LIHTC Equity 31%29,860,099 No
State LIHTC Equity 12%11,483,616 65.10%
0%0 N/A
37%34,890,000 N/A
5%5,000,000 Large Family
7%6,716,879 None
8%7,500,000 Opportunity Map designation 2021 High Resource
0%0 Solar State Fed
0 0 0
0 0 3,432,195
100%95,450,594 0 0 3,432,195
A&E
Total Development Costs
Sources
Legal Fees
Reserves
Development Impact and Permit Fees
Developer Fee
Total Development Sources
Seller Note
Developer's Equity Contribution
Permanent Loan (Tranche A)
$168,484/unit
$477,253/unit
PROJECT UNIT & INCOME MIX
PROJECT TIMING
5/1/21
11/1/21
2/1/23
5/1/23
Financing Fees and Interest
Overhead, Profit, General Conditions
Owner Hard Costs Contingency
Subtotal Hard Costs
Remaining Development Soft costs
PROJECT SUMMARY
Millenia II - 200 Unit family project
Design Assist (excluded from contingency)
Offsites
Sitework
16,000,000
Estimate
Federal Tax Credit Price
State Tax Credit Price
Hard Costs
Parking
12/1/20 12:00 AM
FINANCING ASSUMPTIONSSOURCES AND USES SUMMARY
Equity
$253,769/unit
Type III modified
5
Structured
$55,000/unit
Owner Soft Costs Contingency
Subtotal Soft Costs
Debt
Tax- Exempt Bonds - Construction
Tax Credit Considerations
Opr. Exp./Unit/Year
Replacement Reserves/Unit/Year
Vacancy Rate
2nd Yr Credit Delivery
CA 9% Tiebreaker
Tax- Exempt Bonds - C Bond
Total Construction Loan
Rural Designation
Prevailing Wage (State, Federal, Both):
GAP/IIG Request
12/1/23
1st Yr Credit Delivery
2023
Construction Begin - Initial Closing
Interest Rate - Construction Loan
DCR
Perm Loan Amort
Deferred Developer Fee Tax Credit Allocation
Interest Rate - Permanent Loan
Taxable Tail
50% Test (for Bond Inducement)
CA 9% Site Amenity Score
3rd Yr Credit Delivery
Housing Set Aside
Construction Complete
Lease Up Complete
Conversion/Stabilizatiion
8609
PRELIM DEVELOPMENT PROGRAMMING SUMMARY
Chula Vista
San Diego
$57,750
3.100
High Resource
4% & Bonds state credits
9% Credit Rate
4% Credit Rate
LP Interest
10 Yr Federal Tax Credits
3 Yr State Credits
35,387,104
Solar Credits
Donate for Leverage
Solar Tax Credit Price
City:
Development Costs
Acquisition
Land Cost
Subtotal Acquisition
MSA:
4 Person 50% AMI:
Site (acres):
Construction Type:
No. of Stories:
Parking Type:
No. of Stalls:
All - in Construction Costs
GC Contingecy
Census Tract 133.14
Impact Fees per Unit:
Financing Sources:
38,224
Subordinate Cash Flow C bond
9/1/23
DRAFT
Construction Stabilization Conversion 8609 Total
Subtotal 6mos
41,450,800
SOURCES OF FUNDS
1 2,986,010 - 26,276,887 597,202 29,860,099
2 57,418 1,148,362 - 10,105,582 229,672 11,483,616
3 - - - - -
4 - - - - -
5 66,256,347 1,843,172 (68,099,519) - -
6 - - 34,890,000 - 34,890,000
7 - - - - -
8 - - 6,716,879 - 6,716,879
9 $25,000/unit 5,000,000 - - 5,000,000
10 $0/unit - - - - -
11 - - - -
12 - - - - -
13 $37,500/unit 7,500,000 - - - 7,500,000
14 - - - - -
15 GAP - 0 - 0
16 Total Sources of Funds 82,890,718 1,843,172 9,889,830 826,874 95,450,594
17
18
19 USES OF FUNDS
20 ACQUISITION
21 Land Cost $17,500/unit 3,500,000 - - - 3,500,000
26 Basis Eligible Acquisition Cost $37,500/unit 7,500,000 - - - 7,500,000
27 Other: Closing Costs - - - - -
28 Subtotal Site AcquisitionTotal Land / Acquitisiton 11,000,000 - - - 11,000,000
29
47 NEW CONSTRUCTION
48 Design Assist (excluded from contingency)-$ 950,000 - - - 950,000
49 Off-site Improvements -$ - - - - -
50 Solar - - - - -
51 Site Work (Assumes 2 acre sheet graded pad)$0/acre - - - - -
52 Parking Garage $0/stall - - - - -
53 Vertical $0.00/sq ft 41,450,800 - - - 41,450,800
54 GC Contingency 0.00%- - - - -
55 General Requirements 6%2,544,048 - - - 2,544,048
56 Contractor Overhead 4%1,696,032 - - - 1,696,032
57 Contractor Profit 4%1,696,032 - - - 1,696,032
58 Contractor General Liability Insurance - - - - -
59 Other:- - - - -
60 Total New Construction $241,685/unit 48,336,912 - - - 48,336,912
61
62 ARCHITECTURAL
63 Building - - - - -
64 Landscape 50,000 50,000
65 Energy Consultant 40,000 40,000
66 Other: Acoustic Study - -
67 Other: Traffic Study - -
68 Other:12,500 - - - 12,500
69 Total Architectural 102,500 - - - 102,500
70
71 SURVEY & ENGINEERING
72 Civil 781,550 - - - 781,550
73 ALTA - - - -
74 Staking - - - - -
75 Structural Testing - - - - -
76 Soils - - - - -
77 Other: - - - - -
78 Other:- - - - -
79 Other:- - - - -
80 Total Survey & Engineering 781,550 - - - 781,550
81
82 CONTINGENCY COSTS
83 Hard Cost Contingency 5%2,416,846 - - - 2,416,846
84 Soft Cost Contingency 3%584,034 - - - 584,034
85 Subtotal ImprovementsTotal Contingency 3,000,880 - - - 3,000,880
86
87 CONSTRUCTION PERIOD EXPENSES
88 Construction Loan Interest 2,525,447 1,508,048 (84,765) - 3,948,730
89 Soft Loan Interest - - - - -
90 C Bond Interest 675,000 225,000 - - 900,000
91 Origination Fee 1.00%662,563 - - - 662,563
92 Credit Enhancement & Application Fee - - - - -
93 Owner Paid Bonds - - - - -
94 Lender Inspection Fees 45,000 - - - 45,000
95 Taxes During Construction 7,500 - - - 7,500
96 Other: Application fee - - - - -
97 Insurance During Construction 250,000 - - - 250,000
98 Title and Recording Fees 40,000 - - - 40,000
99 Construction Mgmt. and Monitoring - - - - -
100 Predevelopment Loan Interest - - - - -
101 Other: Accounting & Admin - - - - -
102 Other:- - - - -
103 Subtotal Interest/FeesTotal Construction Period Expense 4,205,511 1,733,048 (84,765) - 5,853,793
104
PROJECTED SOURCES AND USES OF FUNDS
Millenia II - 200 Unit family project
Federal LIHTC Equity
State LIHTC Equity
Developer's Equity Contribution
Solar Rebates
Construction Loan
MHP General
Seller Note
Residual Receipt Loans Accrued Interest
Permanent Loan (Tranche A)
Deferred Developer Fee
C Bond
MHP General
Developer fee contribution
Permanent Loan (Tranche B)
DRAFT
Construction Stabilization Conversion 8609 Total
Subtotal 6mos
41,450,800
PROJECTED SOURCES AND USES OF FUNDS
Millenia II - 200 Unit family project
105 PERMANENT FINANCING EXPENSES
106 Loan Origination Fees 0.00%- - 15,000 - 15,000
107 Credit Enhancement & Application Fee - - - - -
108 Title and Recording Fees - - 7,577 - 7,577
109 Property Taxes - - - - -
110 Insurance - - - - -
111 Other: Issuer Fee 0.125%85,124 85,124 - - 170,249
112 Other: - - - -
113 Total Permanent Financing 85,124 85,124 22,577 - 192,826
114
115 LEGAL FEES
116 Construction Lender Legal 60,000 - - - 60,000
117 Permanent Lender Legal - - 7,500 - 7,500
118 Sponsor Legal 60,000 - - - 60,000
119 Organizational Legal 50,000 - - - 50,000
120 Other Legal (Issuer Legal, Bond Counsel)60,000 - - - 60,000
121 Other:- - - - -
122 Other: GP Legal 25,000 - - - 25,000
123 Total Legal Fees 255,000 - 7,500 - 262,500
124
125 CAPITALIZED RESERVES
126 Operating Reserve 3 months - - 776,681 - 776,681
127 Replacement Reserve - - - - -
128 Rent-up Reserve - - - - -
129 Transition Reserve (2 years)- - - - -
130 Other: Prepaid HOA - - - - -
131 Other: Capitalized LP Fee - - - - -
132 Total Reserves - - 776,681 - 776,681
133
134 REPORTS & STUDIES
135 Market Study 10,000 - - - 10,000
136 Relocation Plan & consulting - - - - -
137 Appraisal 10,000 - - - 10,000
138 Environmental - - - - -
139 Other: Lender Deposit - - - - -
140 Other: Investor Deposit - - - - -
141 Other: Soils Report - - - - -
142 Other: Phase I - - - - -
143 Total Reports & Studies 20,000 - - - 20,000
144
145 OTHER
146 TCAC App./Alloc/Monitoring Fees 37,387 - 81,590 118,977
147 CDLAC/CDIAC Fees 0.05%134,050 - - - 134,050
148 Local Permit Fees $2,252/unit 450,400 - - - 450,400
149 Water & Sewer Fee $2,903/unit 580,652 580,652
150 School Fees $9,494/unit 1,898,782 1,898,782
149 Local Development Impact Fees $38,224/unit 7,644,837 - - - 7,644,837
150 CFD Prepayment $15,748/unit 3,149,634 - - - 3,149,634
151 Syndicator/Investor Fees & Expenses - - - - -
152 Furnishings - - - - -
153 Final Cost Audit Expense - 15,000 - - 15,000
154 Marketing 95,000 10,000 - - 105,000
155 MGP Services Fee 25,000 - - - 25,000
156 SDHC Ap, Orig, Servicing, Legal, Const Review - - - - -
157 Accounting/Finance/Admin 87,500 - - - 87,500
158 Other: CPA Opinion - - - - -
159 Bond Performance Deposit - - - - -
160 Total Other Costs 14,103,242 25,000 81,590 - 14,209,832
161
162 DEVELOPER COSTS
163 Developer Fee 1,000,000 - 9,086,247 826,874 10,913,121
164 Consultant/Processing Agent - - - - -
165 Project Administration - - - - -
166 Syndication Consultant - - - - -
167 Guarantee Fees - - - - -
168 Broker Fees Paid to Related Party - - - - -
169 Construction Oversight & Mgmt - - - - -
170 Total Developer Costs 1,000,000 - 9,086,247 826,874 10,913,121
171
172
173 Total Uses of Funds 82,890,718 1,843,172 9,889,830 826,874 95,450,594
174 Net Source & Use - - - - -
175 Distributions -
176 Balance of Funds - - - -
DRAFT
Millenia II - 200 Unit family project
2020 rents
Square Total Gross Utility Adjust Monthly Annual
Rent:Restriction %AMI Units Feet/Unit Sq. Ft.Rents Allowance for mkt Net Rent Rent
1BR/1BA LIHTC 120%0 550 0 -$ 37$ -$ -$
1BR/1BA LIHTC 100%0 550 0 -$ 37$ -$ -$
1BR/1BA LIHTC 70%24 550 13,200 1,516$ 37$ -$ 1,479$ 425,952$
1BR/1BA LIHTC 60%24 550 13,200 1,299$ 37$ -$ 1,262$ 363,456$
1BR/1BA LIHTC 50%6 550 3,300 1,083$ 37$ 1,046$ 75,312$
1BR/1BA LIHTC 40%0 550 0 866$ 37$ 829$ -$
1BR/1BA LIHTC 30%6 550 3,300 650$ 37$ 613$ 44,122$
2BR/1BA LIHTC 120%0 760 0 -$ 47$ -$ -$
2BR/1BA LIHTC 100%0 760 0 -$ 47$ -$ -$
2BR/1BA LIHTC 70%32 760 24,320 1,820$ 47$ -$ 1,773$ 680,832$
2BR/1BA LIHTC 60%31 760 23,560 1,560$ 47$ 1,513$ 562,836$
2BR/1BA LIHTC 50%8 760 6,080 1,300$ 47$ 1,253$ 120,288$
2BR/1BA LIHTC 40%0 760 0 1,040$ 47$ 993$ -$
2BR/1BA LIHTC 30%8 760 6,080 780$ 47$ 733$ 70,368$
3BR/2BA LIHTC 120%0 1,010 0 -$ 58$ -$ -$
3BR/2BA LIHTC 100%0 1,010 0 -$ 58$ -$ -$
3BR/2BA LIHTC 70%24 1,010 24,240 2,102$ 58$ -$ 2,044$ 588,672$
3BR/2BA LIHTC 60%23 1,010 23,230 1,802$ 58$ 1,744$ 481,344$
3BR/2BA LIHTC 50%6 1,010 6,060 1,501$ 58$ 1,443$ 103,896$
3BR/2BA LIHTC 40%0 1,010 0 1,201$ 58$ 1,143$ -$
3BR/2BA LIHTC 30%6 1,010 6,060 901$ 58$ 843$ 60,667$
2BR/1BA MGR 1 760 760 -$ -$ -$ -$
3BR/2BA MGR 1 1,010 1,010 -$
Total Rents 200 154,400 3,577,745
Community Room/Office 0
% Loss to Efficiency 0%0
Construction Square Feet 154,400
Income from Operations PUPM
Laundry 12.00$ 28,800
Other Income (App. Fees, Late, etc.)8.00$ 19,200
Garage -$ 0 Garages 0
Cable & Highspeed Data Income -$ 0
Telephone Income -$ 0
Sub-Total 20.00$ 3,625,745
Less: Vacancies @ 5%181,287
Commercial Income 0
Less: Vacancies @ 25%0
Total Income 3,444,458
Operating Expenses PUPA Comps Diff
Admin/Misc.427$ -$ 427$ 85,400
Management Fee 660$ 660$ 132,000
Utilities 1,550$ -$ 1,550$ 310,000
Payroll 1,162$ -$ 1,162$ 232,400
Repair & Maintenance/Landscaping 835$ -$ 835$ 167,000
Insruance 285$ -$ 285$ 57,000
Taxes (HOA, CFD)531$ -$ 531$ 106,200
Other -$ -$ 0
Total Expenses 5,450$ 1,090,000
Net Operating Income 2,354,458
Reserves $250.00/unit 50,000
Services 30,000
Issuer and Monitoring Fee 0.125%City CV 49,613
Mandatory Debt Service 0.420%0
Net Income Available for Debt Service 2,224,845
DSC TEST 1.16
Tranche B Tranche C
0 5,000,000
4.25%4.00%
35
35
1.15
0
0
2,224,845
OPERATING BUDGET & INCOME ANALYSIS
Amortization
Notes
Debt Service Coverage
Monthly Payment
Annual Payment
Cash Flow After D/S
Tranche A
34,890,000
35
35
1.15
159,759
1,917,111
307,734
Loan Sizing
Loan Amount
Interest
Term
DRAFT
TAX CREDITS & BASIS CALCULATION
Millenia II - 200 Unit family project
ACTUAL OR EST.70%30%
DESCRIPTION OF COSTS OF COSTS ELIGIBLE BASIS ELIGIBLE BASIS
ACQUISITION
Land Cost 3,500,000$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Demolition -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Legal & Carrying Costs -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Land Lease Rent Prepayment -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Verifiable Carrying Costs -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Existing Improvement Costs 7,500,000$ XXXXXXXXXXXXX 7,500,000$
Other: Closing Costs -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
TOTAL LAND/AQUISITION COSTS 11,000,000$ -$ 7,500,000$
REHABILITATION
Off-Site Improvements -$ -$
Environmental Remediation -$ -$
Site Work -$ -$
Structures -$ -$
General Requirements -$ -$
Contractor Overhead -$ -$
Contractor Profit -$ -$
Contractor General Liability Insurance -$ -$
Other:-$ -$
TOTAL REHABILITATION COSTS -$ -$ -$
RELOCATION
Temporary Relocation -$ -$
Permanent Relocation -$ XXXXXXXXXXXXX
TOTAL RELOCATION COSTS -$ -$ -$
NEW CONSTRUCTION
Design Assist (excluded from contingency)950,000$ 950,000$
Off-site Improvements -$ -$
Solar -$ -$
Site Work (Assumes 2 acre sheet graded pad)-$ -$
Parking Garage -$ -$
Vertical 41,450,800$ 41,450,800$
GC Contingency -$ -$
General Requirements 2,544,048$ 2,544,048$
Contractor Overhead 1,696,032$ 1,696,032$
Contractor Profit 1,696,032$ 1,696,032$
Contractor General Liability Insurance -$ -$
Other:-$ -$
TOTAL CONSTRUCTION 48,336,912$ -$ 48,336,912$
ARCHITECTURAL FEES
Building -$ -$
Landscape 50,000$ 50,000$
Energy Consultant 40,000$ 40,000$
Other: Acoustic Study -$ -$
Other: Traffic Study -$ -$
Other:12,500$ 12,500$
TOTAL ARCHITECTURAL COSTS 102,500$ -$ 102,500$
SURVEY & ENGINEERING
Civil 781,550$ 781,550$
ALTA -$ -$
Staking -$ -$
Structural Testing -$ -$
Soils -$ -$
Other: -$ -$
Other:-$ -$
Other:-$ -$
TOTAL SURVEY & ENGINEERING 781,550$ -$ 781,550$
CONTINGENCY COSTS
Hard Cost Contingency 2,416,846$ 2,416,846$
Soft Cost Contingency 584,034$ 584,034$
TOTAL CONTINGENCY COSTS 3,000,880$ -$ 3,000,880$
CONSTRUCTION PERIOD EXPENSES
Construction Loan Interest 3,948,730$ 2,525,447$
C Bond Loan Interest -$ -$
C Bond Interest 900,000$ 675,000$
Origination Fee 662,563$ 496,923$
Credit Enhancement & Application Fee -$ -$
Owner Paid Bonds -$ -$
Lender Inspection Fees 45,000$ 45,000$
Taxes During Construction 7,500$ 5,625$
Prevailing Wage Monitoring -$ -$
Insurance During Construction 250,000$ 187,500$
Title and Recording Fees 40,000$ 30,000$
Construction Management & Testing -$ -$
Predevelopment Loan Interest -$ -$
Other: Accounting & Admin -$ -$
Other:-$ -$
TOTAL CONSTRUCTION PERIOD EXPENSE 5,853,793$ -$ 3,965,495$
PERMANENT FINANCING EXPENSES
Loan Origination Fee 15,000$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Credit Enhancement & Application Fee -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Title and Recording Fees 7,577$ XXXXXXXXXXXXX XXXXXXXXXXXXX
DRAFT
Property Taxes -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Insurance -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Other: Issuer Fee 170,249$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Other: -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
TOTAL PERMANENT FINANCING COSTS 192,826$ -$ -$
LEGAL FEES
Construction Lender Legal 60,000$ 60,000$
Permanent Lender Legal 7,500$ XXXXXXXXXXXXX
Sponsor Legal 60,000$ 60,000$
Organizational Legal 50,000$ 50,000$
Bond Legal 60,000$ XXXXXXXXXXXXX
CPA, Opinion -$ -$
Other: GP Legal 25,000$ 25,000$
TOTAL LEGAL 262,500$ -$ 195,000$
CAPITALIZED RESERVES
Operating Reserve 776,681$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Replacement Reserve -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Rent-up Reserve -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Transition Reserve -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Other: Prepaid HOA -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Other: Capitalized LP Fee -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
TOTAL RESERVE COSTS 776,681$ -$ XXXXXXXXXXXXX
REPORTS & STUDIES
Appraisal 10,000$ 10,000$
Market Study -$ -$
Physical Needs Assessment 10,000$ 10,000$
Environmental Studies -$ -$
Other: Lender Deposit -$ -$
Other: Investor Deposit -$ -$
Other: Soils Report -$ -$
Other: Phase I -$ -$
TOTAL REPORTS & STUDIES 20,000$ -$ 20,000$
OTHER EXPENSES
TCAC App./Alloc/Monitoring Fees 118,977$ XXXXXXXXXXXXX XXXXXXXXXXXXX
CDLAC/CDIAC Fees 134,050$ XXXXXXXXXXXXX
Local Permit Fees 450,400$ 450,400$
Local Development Impact Fees 10,124,271$ 10,124,271$
CFD Prepayment 3,149,634$ 3,149,634$
Syndicator/Investor Fees & Expenses -$ XXXXXXXXXXXXX XXXXXXXXXXXXX
Furnishings -$ -$
Final Cost Audit Expense 15,000$ 15,000$
Marketing 105,000$ XXXXXXXXXXXXX XXXXXXXXXXXXX
MGP Services Fee 25,000$ 25,000$
SDHC Ap, Orig, Servicing, Legal, Const Review -$ -$
Accounting/Finance/Admin 87,500$ 87,500$
Other: CPA Opinion -$ -$
Other:-$ -$
TOTAL OTHER COSTS 14,209,832$ -$ 13,851,805$
DEVELOPER COSTS
Developer Fee Limit - Per Application -$ -$
Developer Fee Calculation 10,913,121$ -$ 10,913,121$
Developer Fee 10,913,121$ -$ 10,913,121$
Consultants/Processing Agent -$ -$
Project Administration -$ -$
Syndication Consultant -$ -$
Guarantee Fees -$ -$
Broker Fees Paid to Related Party -$ -$
Construction Oversight & Mgmt -$ -$
TOTAL DEVELOPER FEE 10,913,121$ -$ 10,913,121$
TOTAL RESIDENTIAL COSTS 95,450,594$ -$ 88,667,262$
TOTAL COMMERCIAL COSTS -$ -$
TOTAL PROJECT AND BASIS COSTS 95,450,594$ -$ 88,667,262$
-$
Adjustment for Excess Basis -$
Additional Amount Voluntarily Excluded From Basis -$
Requested Undadjusted Eligible Basis -$ 88,667,262$
130% DIFFICULT DEVELOPMENT FACTOR?Tract #: 113.04 y 115,267,441$
Credit Reduction 19.88%-$
Total Adjusted Qualified Basis 115,267,441$
TX CREDITS @ % LI Eligible@ Tx Credit Rt 100.00%3.07%3.07%
TX CREDITS @ % LI Eligible -$ 3,538,710$
TX CREDITS OVER TEN YEARS -$ 35,387,104$
TX CREDIT EQ'Y@$/Credit@% Investment 0.8700$ 96.99%29,860,099$
State Tax Credits - 13% of Eligible Basis & Over 4 Yrs 30.00%18.04%16,000,000$
State Tax Credits Equity 0.7400$ 96.99%11,483,616$
DRAFT
OPERATIONAL CASH FLOW
Millenia II - 200 Unit family project
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Gross Revenue Inflation @ 2.00%3,625,745 3,698,260 3,772,225 3,847,669 3,924,623 4,003,115 4,083,178 4,164,841 4,248,138 4,333,101 4,419,763 4,508,158 4,598,321 4,690,288 4,784,093 4,879,775
Vacancy 5%(181,287)(184,913)(188,611)(192,383)(196,231)(200,156)(204,159)(208,242)(212,407)(216,655)(220,988)(225,408)(229,916)(234,514)(239,205)(243,989)
Net Revenue 3,444,458 3,513,347 3,583,614 3,655,286 3,728,392 3,802,959 3,879,019 3,956,599 4,035,731 4,116,446 4,198,775 4,282,750 4,368,405 4,455,773 4,544,889 4,635,786
Operating Expenses Inflation @ 3.00%1,090,000 1,122,700 1,156,381 1,191,072 1,226,805 1,263,609 1,301,517 1,340,563 1,380,779 1,422,203 1,464,869 1,508,815 1,554,079 1,600,702 1,648,723 1,698,184
Net Operating Income 2,354,458 2,390,647 2,427,233 2,464,213 2,501,587 2,539,351 2,577,502 2,616,037 2,654,952 2,694,243 2,733,906 2,773,935 2,814,326 2,855,071 2,896,166 2,937,602
Replacement Reserves 3.00%50,000 51,500 53,045 54,636 56,275 57,964 59,703 61,494 63,339 65,239 67,196 69,212 71,288 73,427 75,629 77,898
Services Inflation @ 3.00%30,000 30,900 31,827 32,782 33,765 34,778 35,822 36,896 38,003 39,143 40,317 41,527 42,773 44,056 45,378 46,739
Cash Available to Debt Service 2,274,458 2,308,247 2,342,361 2,376,795 2,411,546 2,446,609 2,481,977 2,517,647 2,553,610 2,589,861 2,626,392 2,663,196 2,700,265 2,737,589 2,775,159 2,812,964
Principal and Interest 0 4.25%1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111 1,917,111
Issuer and Monitoring Fee 0.00%49,613 49,613 49,613 49,613 49,613 49,613 49,613 49,613 49,613 49,613 49,613 49,613 49,613 49,613 49,613 49,613
Other 0.42%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Managing GP Fee/LP Fees 5,000 3.00%5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790
Net Project Cash Flow 302,734 336,374 370,333 404,609 439,196 474,089 509,284 544,774 580,553 616,614 652,950 689,552 726,413 763,523 800,873 838,452
Resident Services 0 3.00%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
LP Fee 7,500 3.00%7,500 7,725 7,957 8,195 8,441 8,695 8,955 9,224 9,501 9,786 10,079 10,382 10,693 11,014 11,344 11,685
Deferred Developer Fee 50%of Avail Cashflow 1.00%147,617 164,324 181,188 198,207 215,377 232,697 250,164 267,775 285,526 303,414 321,435 339,585 357,860 376,254 394,764 413,383
Deferred fee 6,716,879 48.8%
Cash Available After Deferred Fee Payment 147,617 164,324 181,188 198,207 215,377 232,697 250,164 267,775 285,526 303,414 321,435 339,585 357,860 376,254 394,764 413,383
C Bond 100%of Avail Cashflow 147,617 164,324 181,188 198,207 215,377 232,697 250,164 267,775 285,526 303,414 321,435 339,585 357,860 376,254 394,764 413,383
75%of Avail Cashflow 5,000,000 48.8%48.9%48.9%49.0%49%49%49%49%49%49%49%49%49%49%49%49%
Cash Available AfterC Bond Payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash Available After C Bond 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Seller Loan 25.0%of Avail Cashflow 3.00%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash Flow Available After Soft Loan Loans 100.00%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Partnership Admin Fee (90% of Cash Flow)90.00%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash Flow Available after Partnership Admin Fee 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
LP Distribution 96.99%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
GP Distribution 3.01%0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Remaining Cash Flow After Partnership Distribution 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
DRAFT
v . 0 01 P a g e | 1
City of Chula Vista Boards & Commissions
Housing Advisory Commission
January 13, 2021 Item: 8
TITLE
RESOLUTION OF THE HOUSING ADVISORY COMMISSION OF THE CITY OF CHULA VISTA RECOMMENDING
THE CITY COUNCIL APPROVE THE PROVISION OF NINE ACCESSORY DWELLING UNITS WITHIN THE
ESTANCIA DEVELOPMENT OF OTAY RANCH VILLAGE TWO AND PAYMENT OF IN-LIUE FEES FOR FIFTEEN
AFFORDABLE UNITS IN SATISFACTION OF THE BALANCED COMMUNITIES POLICY FOR RESIDENTIAL
DEVELOPMENTS OF CORNERSTONE COMMUNITIES
RECOMMENDED ACTION
Commission provide an advisory recommendation to the City Council.
SUMMARY
Cornerstone Communities (Developer) currently owns and is in process of developing a total of 233 housing
units within the Otay Ranch Village 2 (the “Project”). In accordance with the City of Chula Vista’s General
Plan Housing Element Balanced Communities Policy the Project requires the provision of housing affordable
to low and moderate income households. The Developer proposes to meet this affordable housing obligation
by entering into an Agreement to Post Security for Affordable Housing Obligation for nine (9) units and pay
the in-lieu fee for the remaining 15- unit obligation.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed project for compliance with the California
Environmental Quality Act (CEQA) and has determined that the project was adequately covered in previously
certified Final Second Tier Environmental Impact Report, EIR 02-02 and Final Supplemental Environmental
Impact Report, SEIR 12-01 for the Otay Ranch Village 2 Sectional Planning Area (SPA) Plan. In addition,
notwithstanding the foregoing, the Development Services Director has also determined that the activity
qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State
Guidelines. Thus, no further environmental review or documentation is required.
DISCUSSION
On May 23, 2006, the City approved the Otay Ranch Village 2 Section Planning Area (SPA) Plan by Resolution
Number 2006-156. The Affordable Housing Program of the SPA Plan provides for five percent of all newly
constructed dwelling units in Village 2 to be designated for occupancy and affordable by low-income
households and five percent for moderate-income households consistent with Policy 5.1.1 of the City’s
Housing Element of the General Plan (“Balanced Communities Policy”).
Proposed Project
Cornerstone Communities has ownership interest and is developing several residential communities within
Otay Ranch Village 2. Based upon the total number of residential units to be developed by Cornerstone within
Village 2, the affordable housing requirement is 12 units for low- and 12 for moderate-income households.
P a g e | 2
Table 1: Cornerstone Communities in Otay Ranch Village 2
Development
Name
Total
DUs
Affordable
DUs Type
Estancia 37 9 Single Family Home/For Sale with Affordable
ADUs.
Cambria 60 Single Family Home/ For Sale
Aventine 100 Single Family Home/For Sale
Monterra 36 Townhomes/For Sale
Total 233 9
Balanced Communities 2010 Affordable Housing Agreement
Currently, the only development still under construction is the 37-unit housing development known as
Estancia that consists of single-family homes located in Neighborhood R-37 in Otay Ranch Village 2. Estancia
will be located near multi-family and other single-family homes (see Attachment 1: Locator Map).
Developer has proposed the construction of nine (9) units within Estancia to be sold with attached accessory
dwelling units to be restricted for occupancy and affordable to very low- and low-income households in
satisfaction of the City’s Balanced Communities Policy. Developer will be paying the in-lieu fee per the Otay
Village 2 Affordable Housing Agreement for fifteen (15) units of the remaining affordable housing units.
The Developer’s method to meet its affordable housing obligation is consistent with the Otay Ranch Village
2 Affordable Housing Agreement date September 14, 2010. The Developer is also allowed to pursue
alternative methods of compliance with the Balanced Communities Policy and can request incentive credits
by providing units that meet the critical needs of very low-income households. Said incentive credit includes
receiving 2.0 moderate-income unit credits for each very low-income unit provided (4 very low-income DUs
x 2 credits = 8 moderate-income credits).
By incorporating ADUs within the Estancia Project, opportunities are made available to lower-income
households for inclusion within neighborhoods primarily comprised of single-family homes. Each individual
homeowner will be required to rent the attached ADU to a very-low or low-income household at an
affordable rental rate.
Developer will require each buyer to sign a separate Declaration of Covenants Conditions and Restrictions
(CC&Rs) to be recorded against the individual property and will be binding on the homeowner and any future
owners in the Property. The CC&Rs will run with the land for 20-years. With each execution and recordation
of a CC&R by a homebuyer, a very low- or low-income unit shall be credited towards satisfaction of
Developer’s remaining 9-unit affordable housing obligation, after paying the in-lieu fee on 15 units. In the
event the Developer is not able to obtain all 9 units with CC&Rs, an in-lieu fee will be paid to the City for any
remaining balance.
P a g e | 3
Conclusion
As established in the City’s Housing Element of the General Plan and given the current housing market
conditions in California, the City has a pressing need for quality affordable housing and in general, more
balanced and varied housing, particularly in the eastern area of the City to accommodate all economic
segments of the community. The Project will provide an integrated mix of affordable housing for working
lower-income households along with market rate housing, onsite amenities, and a desirable location directly
adjacent to key neighborhood services, amenities and facilities. Consistent with State Housing laws, the
Project will affirmatively further fair housing in “overcoming patterns of segregation, fostering inclusive
communities" and "addressing significant disparities in housing needs and in access to opportunity."
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the Housing Advisory Commissioners and has found no property
holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently,
this item does not present a disqualifying real property-related financial conflict of interest under California
Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t
Code §87100, et seq.).
Staff is not independently aware, and has not been informed by any Housing Advisory Member, of any other
fact that may constitute a basis for a decision-maker conflict of interest in this matter.”
CURRENT-YEAR FISCAL IMPACT
The Balanced Communities Program is self-supporting, with the Developer is responsible for the payment of
all costs to process the Affordable Housing Agreement. There is no net impact to the General Fund,
Development Services Fund, or Housing Fund in the current fiscal year as a result of this action.
ONGOING FISCAL IMPACT
There will be no ongoing fiscal impact to the General Fund. Staff costs associated with ongoing compliance
monitoring are fully funded through the Housing Authority fund.
ATTACHMENTS
1. Locator Map
Staff Contact: Jose Dorado, Senior Management Analyst, DSD-Housing
OTR V2 CORNERSTONE
Date Printed:Ju ly 1 0, 202 0
Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification.
0 260 520 780 1,040130
ft
P a g e | 1
City of Chula Vista Boards & Commissions
Housing Advisory Commission
January 13, 2021 Item: 9
TITLE
RESOLUTION OF THE HOUSING ADVISORY COMMISSION OF THE CITY OF CHULA VISTA RECOMMENDING
THAT THE CITY COUNCIL AUTHORIZE $1,000,000 TOWARDS A FIRST TIME HOMEBUYER ASSISTANCE
PROGRAM FOR LOW INCOME HOUSEHOLDS USING FUNDING FROM THE HOME INVESTMENT
PARTNERSHIP ACT, CAL-HOME, AND BALANCED COMMUNITIES PROGRAM.
RECOMMENDED ACTION
Commission provide an advisory recommendation to the City Council.
SUMMARY
The City of Chula Vista provides low-income households down payment and closing cost assistance to
purchase their first home, known as the First Time Homebuyer Program (the “FTHB Program”) . This action
requests authorization to allocate $1,000,000 towards the City’s FTHB Program using available funding.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California
Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under
Section 15378(b)(4) of the State CEQA Guidelines because the action consists of an application to create a
government funding mechanism to provide assistance to low-income homebuyers to purchase existing
single-family homes which have previously been constructed or are in projects that have already been
reviewed under CEQA. Thus, no further environmental review is necessary.
DISCUSSION
The City of Chula Vista (the “City”) has had an active first time homebuyer program since 2004. The City
provides down payment and closing cost assistance to low-income first time homebuyers earning less than
eighty percent (80%) of the Area Median Income (Attachment 1). Assistance is capped at $70,000 with a 3
percent interest deferred for a 30-year term and secured by a Promissory Note and Deed of Trust.
Participating homebuyers are required to attend an eight-hour homebuyer education class provided by a
HUD approved organization.
The funding sources previously used to fund the FTHB Program include HOME entitlement funds, CalHome,
and Balanced Communities Program funds. Additionally, from time to time, the City receives loan
repayments from borrowers who received funding to purchase their first home. These loan repayments are
to be recycled back into the FTHB Program.
Based on a review of the various fund balances, the City has available $1,000,000 that can be allocated
towards the FTHB, using an allocation of HOME entitlement funds and loan repayments from the following
P a g e | 2
sources: HOME, CalHome and Balanced Communities Program. The FTHB Program will be required to
conform to Program Guidelines for each funding source. All future repayments of housing assistance loans
will be deposited into the respective trust account to provide additional loans after the initial $1,000,000 in
assistance funds have been fully expended.
Service Providers
Staff will also be soliciting proposals from a homebuyer program administrator to assist in the management
and implementation of the FTHB Program and will enter into a Memorandum of Understanding with HUD
approved homebuyer education providers to provide pre and post purchase counseling.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and
consequently, the real property holdings of the Housing Advisory Commission members do not create a
disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't
Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any Housing Advisory Commission
member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no fiscal impact in the current fiscal year.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact.
ATTACHMENTS
1. Summary of First Homebuyer Program
Staff Contact: Jose Dorado, Senior Management Analyst- Housing Division
Education
• Take an
8-hour HUD-
certified
educationclassapproved by
Springboard
(SB)
First TimeHomebuyer
Eligible Household Criteria
Total available
gap financing
is up to
$70,000.
The Process...
Primary Financing
Pre-Qualification
•Choose a SBCertified Lender
•Establish 1st
mortgage qualification
Apply for CV
FTHB Program
• Cityapplication(s)
Locate Eligible
Property
•Submitpurchase offer
• Due diligence
• Voluntary
Acquisition &Final PurchaseOffer
Escrow
•Lender
submittalto SB/City
•SB/City
underwrites City loan
CV FTHB
Loan Servicing
•SB or
City
provides
annual
loan
servicing
1 2 3 4 5 6
CONTACT
City of Chula
Housing Division
www.chulavistaca.gov/housing
• Home must be Principal Residence.
• Must be a U.S. citizen or eligible immigrant.
• Household must qualify for primary financing.
• A minimum of 3% of the total purchase price must be contributed by
buyer.
•City of Chula Vista's Balanced Communities Program guidelines shall
apply.
Eligible Properties
• Properties must be located in Chula Vista
• Single family home, townhome, condominium only
10/17
PROGRAMS
• No ownership interest in residential property within the past three years.
• Total gross household annual income shall not exceed the limits below (HCD;
effective 07/01/2020) Household Size (number of people)
1 2 3 4 5 6 7 8
HCD $64,700 $73,950 $83,200 $92,400 $99,800 $107,200 $114,600 $122,000
Vista