HomeMy WebLinkAbout2.0Casalago Chula Vista Project Memo_20211203
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
WORKFORCE HOUSING PROGRAM
CASALAGO EASTLAKE APARTMENTS
Opportunity to Immediately Convert 427 Market Rate Units to Low, Middle and Moderate Income Housing
2816 Cielo Circulo, Chula Vista
December 3, 2021
Public Benefits of CSCDA’s Workforce Housing Program
Immediately create 427 units of Low‐, Middle‐ and Moderate‐Income Housing in Chula Vista.
Residents receive initial rent savings of $3.3 million per year future rent increases capped at 4%. Rent savings are
typically reinvested into the local economy.
The Project will pay the City of Chula Vista a Host City Charge of $200,000/year escalating at 2%/year, making the
program entirely revenue neutral for the City plus an annual Monitoring Fee of $27,755 with 3%/year increases.
City receives the full value of the property under the Public Benefit Agreement. This is projected to return
approximately $625 million to the City on sale of the asset in Year 35, assuming the property remains
permanently affordable.
No liability for City. Minimal time & effort to approve program. No ongoing administration requirements.
Significant budgeted reserves and best‐in‐class operator to maintain asset in Class A condition.
CasaLago Eastlake Apartments is under contract to convert immediately following City approval.
CasaLago Eastlake Project Rent Savings
Under the Workforce Housing Program, rent at CasaLago will be lowered to no more than 35% of household income at
Low (<80% AMI) to Moderate (<120% AMI) levels with annual rent increases of no more than 4%. This provides stability
and long‐term attainability for residents.
Current residents will not be displaced by the program. If tenants do not qualify for restricted rents, they may remain at
their current market rent. Estimated 72% of current CasaLago residents are expected to already income‐qualify for
reduced rents. Eventually, all renters will qualify within the Low to Moderate income range.
RENTS
CURRENT LOW MIDDLE MODERATE TOTAL
MARKET <80% AMI <100% AMI <120% AMI CSCDA
Rent/Unit 143 units 142 units 142 units RESTRICTED
Unit Type Total Units % Avg SF Income <$77,568 Income <$96,960 Income <$116,352 RENT
1‐Bed 79 18.5% 808 $2,577 $2,163 $2,173 $2,182 $2,173
2‐Bed 183 42.9% 1161 $3,219 $2,545 $2,754 $2,762 $2,687
3‐Bed 165 38.6% 1311 $3,819 $2,828 $2,989 $3,018 $3,018
TOTAL 427 100.0% 1154 $3,332 $2,586 $2,731 $2,757 $2,691
Initial Resident Rent Savings/Mo. Vs. In Place ‐$746 ‐$601 ‐$575 ‐$641
% Savings ‐22.4%‐18.0%‐17.3%‐19.2%
Initial Resident Rent Savings/Year ‐$1,279,478 ‐$1,023,555 ‐$980,054 ‐$3,283,087
Income limits shown for a family of two (one bed unit)
CSCDA Rents Post‐Closing
CSCDA Workforce Housing Program for CasaLago Eastlake, Chula Vista
Page 2
CasaLago Eastlake Apartments
427 Units
Completed 2013
Amenities Include:
Two Resort Pools & Spa
Multiple Clubhouses
State of the Art Fitness Center
BBQ/Picnic Areas
Playground
Private One and Two Car Garages
Package Lockers
Lake Views