NORTHWEST COMMISSION Heritage Square Senior Housing Project Update - - PowerPoint PPT Presentation

Housing Department

NORTHWEST COMMISSION Heritage Square Senior Housing Project Update

William K. Huang, Housing Director Philip Williams, BRIDGE Housing Anna Slaby, BRIDGE Housing Lynnelle Bryant, MasBuild November 7, 2013

Housing Department

Heritage Square Senior Project Update

Background–Critical Need for Affordable Senior Housing

• Soaring growth in senior population

Baby boomer generation began aging past 65 in 2011 Growth in LA Co senior population in coming 20 years quadruple the growth in the previous 20 years Senior population in LA Co projected to grow by 90%

• ver next two decades

quadruple the growth in the previous 20 years

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2008 2010 2035 Growth 2008-2035 Seniors (65+) 992,000 1,066,000 1,885,000 90% Total Population 9,771,000 9,819,000 11,348,000 16% Seniors/Total Pop. 10% 11% 17%

Housing Department

Heritage Square Senior Project Update

Background–Critical Need for Affordable Senior Housing

• Seniors not making ends meet at Federal Poverty Level

Elder Index* quickly replacing outdated Federal Poverty Level (FPL) as new standard for evaluating needs of seniors in California Elder Index measures actual costs of basic necessities for older adults. FPL is based only on cost of food. Income needed by elderly couple to meet basic needs (LA Co, 2009): $14,570 FPL vs. $29,741 Elderly Index (Very Low Income limit for Heritage Square = $34,200) * UCLA and Insight Center for Community Economic Development

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Housing Department

Heritage Square Senior Project Update

Fair Oaks Avenue Orange Grove Blvd

BRIDGE SENIOR HOUSING DEVELOPMENT SITE Housing Asset Site (future development)

Housing Department

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Heritage Square Senior Project Update

Background - Project Site

• 2.8 acre block acquired by City between 2004 and

2008 with local, state and federal affordable housing funds

• BRIDGE senior housing project to be developed
• n the northern half of the block

Housing Department

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Heritage Square Senior Project Update

Background - RFP and Developer Selection

• RFP was developed by the Heritage Square RFP

Working Group: 2 reps from Fair Oaks PAC, 2 reps from Northwest Commission, and 2 Housing staff

• Working Group convened 33 meetings between

May 2009 and April 2011

• RFP issued in Feb. 2011
• Proposals were submitted by BRIDGE Housing,

Mercy Housing, and National CORE

Housing Department

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Heritage Square Senior Project Update

Background - RFP and Developer Selection

• Third party housing consultants reviewed/scored

the proposals

• 5-member Independent Review Panel (IRP)

reviewed housing consultants’ determinations and recommended selection of BRIDGE in Aug. 2011

• IRP was comprised of 3 local affordable housing

professionals and 1 rep each from Northwest Commission and Fair Oaks PAC

Housing Department

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Heritage Square Senior Project Update

Background – Key Public Meetings

• July 23, 2009 (joint meeting of NWC, FOPAC): Introduce

Working Group, mission statement, tasks & responsibilities

• October 7, 2009 (EDTech Committee): general update on

Working Group activities

• December 5, 2009: Update on Working Group activities,

church demolition, site concept plans)

• April 22, 2010 (joint meeting of NWC, FOPAC): Review

first draft RFP

• May 5, 2010: (EDTech Committee): Review of first draft
• f RFP and update on Working Group activities

Housing Department

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Heritage Square Senior Project Update

Background – Key Public Meetings

• October 14, 2010 (joint meeting of NWC, FOPAC, CDC):

Review updated draft RFP

• September 12, 2011 (City Council): Approve Exclusive

Negotiation Agreement with BRIDGE

• November 2 & 7, 2011 (EDTech/City Council): Approve

development agreement with BRIDGE

• April 18 & 23, 2012 (EDTech/City Council): Approve

amendments to development agreement including $600k loan and Section 8 project-based vouchers for 69 units

Housing Department

Heritage Square Senior Project Update

Project Status - City Planning Entitlements

• Land Use/Zoning

MCUP approved by Hearing Officer on Sept. 19, 2012

• Project Design

Concept Design Review approved by Design Commission on December 10, 2012 Ad hoc subcommittee of 3 from Design Commission and 3 from Northwest Commission met on Jan. 3 & 17, 2013 to conduct a 50% Advisory Review Final Design Review approved by Design Commission on March 4, 2013 The process resulted in a better design, more responsive to the community’s desires

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Housing Department

Heritage Square Senior Project Update

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Housing Department

Heritage Square Senior Project Update

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Housing Department

Heritage Square Senior Project Update

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Housing Department

Heritage Square Senior Project Update

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Housing Department

Heritage Square Senior Project Update

Project Funding Sources

• Total $25,539,877
• Bank of America Loan “B” is underwritten with

City of Pasadena Section 8 Project-Based rental vouchers

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City of Pasadena Land City of Pasadena Loan B of A Permanent Loan “A” B of A Permanent Loan “B” Tax Credit Equity Amount $4,353,000 $600,000 $1,166,505 $2,549,333 $16,871,039 Secured? Yes Yes Yes Yes No

Housing Department

Heritage Square Senior Project Update

Why Heritage Square did not receive Tax Credits

• BRIDGE submitted application in 1st funding

round, March 2013 Application did not get funded Knocked out of competition due primarily to a technical deficiency Conventional permanent lender commitment letter did not acknowledge that underwriting was based in part on City’s Section 8 Project- Based rental subsidy The letter has been corrected

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Housing Department

Heritage Square Senior Project Update

Why Heritage Square did not receive Tax Credits

• Edged out of 2nd funding round, July 2013

Funding in one of two eligible categories that the project competed in was fully allocated Statewide 15% senior housing cap was hit before we could compete in the second category

• 99 applications were submitted, 44 funded
• Heritage Square had the highest score among 5

competing projects in the LA County region (excluding LA City projects)

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Housing Department

Heritage Square Senior Project Update

Why Heritage Square did not receive Tax Credits

• However, tax credit allocations are not made

strictly by score Funding is first allocated among the various Setaside pools And then allocated by geographic region Projects serving homeless populations are given priority over other projects with higher scores

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Housing Department

Heritage Square Senior Project Update

Why Heritage Square did not receive Tax Credits

• There are 4 Setaside pools: Nonprofit, Rural, At-Risk,

Special Needs. Heritage Square can compete only in the Nonprofit Setaside pool. Competition in NONPROFIT SETASIDE Pool

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Project Name Housing Type City Score (Tie Breaker) Credits Whittier Place Homeless SN

• Unincorp. LA

59.496 $764,973 Carondelet Aps Homeless SN Los Angeles 54.025 $1,089,512 1701 MLK Jr. Way Homeless SN Oakland 42.960 $962,405 Maybell Orchard Senior Palo Alto 58.334 $1,087,124 Heritage Square Senior Pasadena 56.151 $0 – Not Homeless

Housing Department

Heritage Square Senior Project Update

Why Heritage Square did not receive Tax Credits

• There are 11 Geographic Regions: City of LA, Balance of

LA County, and 9 other regions statewide. Heritage Square can compete only in Balance of LA County. Competition BALANCE OF LA COUNTY Region

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Project Name Housing Type City Score (Tie Breaker) Credits Vernon Family Apts Large Family Vernon 49.147 $807,053 El Monte Gateway Large Family El Monte 44.835 $2,091,546 Harding Apts Large Family San Fernando 38.520 $756,163 Long Beach & 21st Apts Special Needs Long Beach 27.521 $1,192,699 Heritage Square Senior Pasadena 56.151 $0 – Snr Cap

Housing Department

Heritage Square Senior Project Update

Why Heritage Square did not receive Tax Credits

• A senior project (Inglewood) applied in and was

funded from the At-Risk Setaside pool, but the funding was still counted towards the statewide 15% senior housing cap.

• A senior project (Half Moon Bay) competed in the

Rural Setaside pool and applied for an unusually high funding amount (over $2.4M). This caused the 15% senior housing cap to be maxed out earlier than usual.

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Housing Department

Heritage Square Senior Project Update

Moving Forward

• BRIDGE to apply for tax credits in Spring 2014

Per City development agreement Fewer projects competing Proposed regulatory changes work in our favor by reducing the number of rehab projects and senior projects which will count against the senior cap Possible additional financial leveraging to increase score

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Housing Department

Heritage Square Senior Project Update

Moving Forward (after tax credits are secured)

• Relocate Historic Decker House

Identification of relocation site in progress Requires Historic Preservation Commission to approve Certificate of Appropriateness

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Housing Department

Heritage Square Senior Project Update

Moving Forward (after tax credits are secured)

• Implement Local Benefits Plan (LBP)

Project is subject to 20% local hiring, 20% local subcontracting, and 20% procurement of materials from local vendors BRIDGE to select new GC by year end. GC will incorporate the LBP goals into subcontractor contracts MASBuild to collaborate with GC to conduct subcontractor workshops

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Housing Department

Heritage Square Senior Project Update

Moving Forward (after tax credits are secured)

• Heritage Square South

Southern half of the City-owned block was approved by State in Feb. 2013 as a Housing Asset for the development primarily as affordable housing Development to be initiated after senior project proceeds successfully

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Housing Department

Heritage Square Senior Project Update

Moving Forward

• Project Schedule – Key Events

March 2014 – BRIDGE submits tax credit application May 2014 – Tax credit award, begin working construction drawings, City plan check process Late Fall 2014 – Contract with GC, begin awarding sub-contractor contracts November 2014 – Building permit issued, start construction February 2015 – Construction completion

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