CA-15-074 1 June 10, 2015
Project Number CA-15-074
Project Name Cloverdale Family Apartments
Site Address: 100 Healdsburg Avenue
Cloverdale, CA 95425
County: Sonoma
Census Tract:
Tax Credit Amounts Federal/Annual State/Total
Requested:
Recommended:
Applicant Information
Applicant: 100 Healdsburg Ave., L.P., a California limited partnership
Contact: Lori Koester
Address: 5947 Variel Avenue
Woodland Hills, CA 91367
Phone:
Fax:
Email: lkoester@corpoffices.org
General Partner(s) / Principal Owner(s): Corporation for Better Housing
General Partner Type: Nonprofit
Parent Company(ies): Corporation for Better Housing
Developer: Corporation for Better Housing
Investor/Consultant: Hunt Capital Partners, LLC
Management Agent(s): CBH Property Management, LLC
Project Information
Construction Type: New Construction
Total # of Residential Buildings: 1
Total # of Units: 32
No.
& % of Tax Credit Units: 31
Federal Set-Aside Elected: 40%/60%
Federal Subsidy: USDA RHS 514 / RHS 521 Rental Subsidy (31 units - 100%)
Utility Allowance: CUAC
Affordability Breakdown by Units and % (Lowest Income Points):
30% AMI: 4 10 %
45% AMI: 5 15 %
50% AMI (Rural): 16 50 %
REVISED
(818) 905-2430
(818) 905-2440
CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE
Project Staff Report
2015 First Round
June 10, 2015
1542.020
$891,973
$891,973
$3,479,740
$3,479,740
100%
CA-15-074 2 June 10, 2015
Information
Set-Aside:
Housing Type:
Geographic Area:
TCAC Project Analyst:
Unit Mix
16 2-Bedroom Units
16 3-Bedroom Units
32 Total Units
2 2 Bedrooms
2 2 Bedrooms
8 2 Bedrooms
3 2 Bedrooms
2 3 Bedrooms
3 3 Bedrooms
8 3 Bedrooms
3 3 Bedrooms
1 2 Bedrooms
Project Cost Summary at Application
Land and Acquisition
Construction Costs
Rehabilitation Costs
Construction Contingency
Relocation
Architectural/Engineering
Construction Interest, Perm Financing $877,000
Legal Fees, Appraisals
Reserves
Other Costs
Developer Fee
Commercial Costs
Total
$184,532
$1,451,968
$1,635,000
$0
$13,943,274
$8,156,928
$0
$407,846
$0
$340,000
$95,000
$795,000
60%
60%
Manager’s Unit
Proposed
Rent
(including
utilities)
$519
$779
2014 Rents Actual
% of Area Median
Income
30%
45%
Daniel Tran
$866
$1,039
$600
$900
$1,000
$1,200
Large Family
Rural (RHS 514)
N/A
Manager’s Unit
50%
50%
60%
30%
$0
Unit Type & Number
2014 Rents Targeted
% of Area Median
Income
30%
45%
60%
30%
45%
50%
45%
50%
CA-15-074 3 June 10, 2015
Project Financing Residential
Estimated Total Project Cost: Construction Cost Per Square Foot: $236
Estimated Residential Project Cost: Per Unit Cost:
Source Amount Source
Amount
Hunt Capital Partners, LLC Hunt Capital Partners, LLC
Tax Credit Equity Hunt Capital Tranche B Loan
USDA RHS 514
Deferred Developer Fee
Tax Credit Equity
TOTAL
Determination of Credit Amount(s)
Requested Eligible Basis:
130% High Cost Adjustment:
Applicable Fraction:
Qualified Basis Credit Reduction (2%)
Qualified Basis:
Applicable Rate:
Total Maximum Annual Federal Credit:
Total State Credit:
Approved Developer Fee in Project Cost:
Approved Developer Fee in Eligible Basis:
Investor/Consultant: Hunt Capital Partners, LLC
Federal Tax Credit Factor:
State Tax Credit Factor:
$0.93741
$0.62494
Per Regulation Section 10322(i)(4)(A), The “as if vacant” land value and the existing improvement value
established at application, as well as the eligible basis amount derived from those values, will be used during
all subsequent reviews including the placed in service review, for the purpose of determining the final award
of Tax Credits.
$3,479,740
$1,635,000
$1,400,000
$10,536,028
$891,973
$236,717
$11,599,125
7.69%
$567,297
$13,943,274 $435,727
$2,000,000
$732,500
$13,943,274
$11,835,842
No
100.00%
Per Regulation Section 10327(c)(2)(C), Once established at the initial funded application, the developer fee
cannot be increased, but may be decreased, in the event of a modification in basis.
$13,943,274
Permanent Financing
Construction Financing
$107,449
$11,400,000
$1,688,500
CA-15-074 4 June 10, 2015
Eligible Basis and Basis Limit
Requested Unadjusted Eligible Basis:
Actual Eligible Basis:
Unadjusted Threshold Basis Limit:
Total Adjusted Threshold Basis Limit:
Adjustments to Basis Limit:
One or More Energy Efficiency/Resource Conservation/Indoor Air Quality Features:
●Pr
oject
me
ets
al
l
re
quirements
ofUSEP
A
In
door
AirPl
us
Pr
ogram.
Local
Development Impact Fees
95% of Upper Floor Units are Elevator-Serviced
Tie-Breaker Information
First: Large Family
Second:
Cost Analysis and Line Item Review
Special Issues/Other Significant Information:
Local Reviewing Agency:
●Projecthasonsiterenewablegenerationestimatedtoproduce50%ormoreofannualelectricityuse
as indicated in TCAC Regulations.
$11,835,842
Staff analysis of project costs to determine reasonableness found all fees to be within TCAC’s underwriting
guidelines and TCAC limitations. Annual operating expenses meet the minimum operating expenses
established in the Regulations, and the project pro forma shows a positive cash flow from year one. Staff
has calculated federal tax credits based on 7.69% of the qualified basis, or, in the case of acquisition credit or
credit combined with federal subsidies, 3.30%. Applicants are cautioned to consider the expected federal
rate when negotiating with investors. TCAC's financial evaluation at project completion will determine the
final allocation.
Legal Status: Staff has reviewed the Applicant's responses to the questions contained in the Legal Status
portion of the Application. No information was disclosed that raised any question regarding the financial
viability or legal integrity of the applicant.
The Local Reviewing Agency, City of Cloverdale, has completed a site review of this project and strongly
supports this project.
●Communitygardensofatleast60squarefeetperunit
28.054%
●Projecthasonsiterenewablegenerationestimatedtoproduce75%ormoreofannualcommonarea
electricity use as indicated in TCAC Regulations.
$9,076,224
$12,163,842
$11,838,661
The applicant’s estimate of contractor profit, overhead and general requirement costs slighty exceeds the
limits established by regulation. At final review prior to the issuance of the IRS 8609 tax forms, any costs
and basis in excess of the limit will not be allowed.
CA-15-074 5 June 10, 2015
Federal Tax Credits/Annual
State Tax Credits/Total
Standard Conditions
Additional Conditions: None
The applicant/owner shall be subject to underwriting criteria set forth in Section 10327 of the regulations
through the final feasibility analysis performed by TCAC at placed-in-service.
Credit awards are contingent upon applicant's acceptance of any revised total project cost, qualified basis and
tax credit amount determined by TCAC in its final feasibility analysis.
The applicant must ensure the project meets all Additional Threshold Requirements of the proposed project.
If points were awarded for service amenities, the applicant will be required to provide such amenity or
amenities identified in the application, for a minimum period of ten years and at no cost to the tenants.
Applicants that received points for sustainable building methods (energy efficiency) must submit the
certification required by Section 10325(c)(6) at project completion. Applicants that received increases
(exceptions to limits) in the threshold basis limit under Section 10327(c)(5) must submit the certification
required by Section 10322(i)(2) at project completion.
The applicant must pay TCAC a performance deposit and allocation fee calculated in accordance with
regulation. Additionally, TCAC requires the project owner to pay a monitoring fee before issuance of tax
forms.
As project costs are preliminary estimates only, staff recommends that a reservation be made in the amount
of federal credit and state credit shown above on condition that the final project costs be supported by
itemized lender approved costs and certified costs after the buildings are placed in service.
All unexpended funds in reserve accounts established for the project must remain with the project to be used
for the benefit of the property and/or its residents, except for the portion of any accounts funded with
deferred developer fees.
All fees charged to the project must be within TCAC limitations. Fees in excess of these limitations will not
be considered when determining the amount of credit when the project is placed-in-service.
The applicant must submit all documentation required for a Carryover Allocation and any Readiness to
Proceed Requirements elected. Failure to provide the documentation at the time required may result in
rescission of the Credit reservation and cancellation of a carryover allocation.
Recommendation: Staff recommends that the Committee make a preliminary reservation of tax credits in
the following amount(s) contingent upon standard conditions and any additional conditions imposed by the
Committee:
$891,973
$3,479,740
TCAC makes the preliminary reservation only for the project specified above in the form presented, and
involving the parties referred to in the application. No changes in the development team or the project as
presented will be permitted without the express approval of TCAC.
CA-15-074 6 June 10, 2015
20
2
18
9
6
3
10
15
4
3
2
3
3
3
1
10
5
5
10
5
5
52
50
2
20
2
2
148
Total Points
Basic Targeting
Deeper Targeting – at least 10% of units @ 30% AMI or less
Readiness to Proceed
Miscellaneous Federal and State Policies
Lowest Income
State Credit Substitution
Sustainable Building Methods
LARGE FAMILY, SENIOR, AT-RISK HOUSING TYPES
Aft
er school program for school age children, minimum of 10 hours/week
Wi
thin 1 mile of a pharmacy
Within 1 mile of medical clinic or hospital
Adult ed/health & wellness/skill bldg classes, minimum 60 hrs/yr instruction
Service Amenities
Within 3/4 mile of public middle school (rural)
Within 3 miles of a full-scale grocery/supermarket of at least 25,000 sf
General Partner Experience
Within 1 mile of public library
Housing Needs
Within ¼ mile of regular bus stop (or dial-a-ride service for rural set-aside)
Within ½ mile of public park or community center open to general public
Site Amenities
Cost Efficiency / Credit Reduction / Public Funds
Credit Reduction
Public Funds
Owner / Management Characteristics
Management Experience
148
2
20
2
50
10
5
1
10
3
10
1
20
20
20
9
6
3
3
Develop project to requirements of: LEED Gold
5
10
5
148
2
20
3
2
50
52
3
3
2
DO NOT RELY ON SCORING IN THIS COMPETITIVE CYCLE FOR FUTURE APPLICATIONS.
ALL RE-APPLICATIONS ARE REVIEWED WITHOUT RELIANCE ON PAST SCORING.
Please Note: If more than the maximum Site Amenity points were requested, not all amenities may
have been scored and/or verified.
Requested
Points
Max. Possible
Points
Points System
20
2
18
15
9
6
3
4
3
10
15
4
Points
Awarded
10
3
2
3
5 5
5 5
Develop project in accordance w/ requirements of: LEED
NEW CONSTRUCTION/ADAPTIVE REUSE
5
2
52
2
