1 / 12

City Council Concord Senior Housing 275 E. Cordova Street

Approval of key business terms for the Concord Senior Housing project's financial restructuring and renovation to preserve affordable housing for seniors. Sale to developer, renovations, financial details, and key milestones included.

moloney
Download Presentation

City Council Concord Senior Housing 275 E. Cordova Street

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. City CouncilConcord Senior Housing 275 E. Cordova Street James Wong, Senior Project Manager December 17, 2018

  2. Recommendation • Find that the project is categorically exempt under Class 1 (Existing Facilities) of CEQA • Approve key business terms of Disposition, Development and Loan Agreement as described in agenda report

  3. Concord Senior Housing

  4. Background • The Concord is a low income senior apartment complex built in 1966 on City-owned land • Rent-subsidized under HUD Section 8 program • In 1986, developer Retirement Housing Foundation purchased the Concord from the original owner • In 1989, City purchased fee title to the land to preserve long-term affordability and entered into a 42-year ground lease with RHF as tenant • FPRS owns a 93% beneficial interest in the Concord, the City 7%

  5. Background • In May 2015, RHF initiated negotiations on the financial restructuring and renovation of the Concord • Financial consultant services provided by David Rosen & Associates under City contract • The 52-year old apartment complex is in need of substantial rehab to extend the building’s useful life • Last major renovation in 1993 - fire sprinkler system

  6. Background • City to sell to RHF the Concord property, less the Surface Parking Lot (to be held by City for future disposition) • The sale would be subject to City approval of a parcel map application that is currently being processed • FPRS/City to receive an estimated $22.27M cash sale proceeds in 3 installments over next 4 years • The transaction would financially restructure and substantially renovate the Concord, and preserve this source of affordable housing for seniors.

  7. Key Business Terms of DDLA • RHF to secure 4% tax credits and tax-exempt bond financing from the state, and Section 8 project-based rent subsidy from HUD. • City to sell Concord property (less surface parking lot) to RHF, at current estimated sale price of $44.28M • HUD $1.1M loan to be repaid in full • RHF to pay to FPRS/City an estimated $22.27M cash sale proceeds in 3 installments over next 4 years

  8. Key Business Terms of DDLA • City to provide a carryback Seller Loan in the estimated amount of $20.91M. • Seller Loan: secured by recorded trust deed; 55-year term; 2.5% simple; fixed rate interest; converts to permanent financing upon completion, repaid through annual residual receipts (93% to FPRS) • Scope of work includes substantial renovation of dwelling units, mechanical/building systems, common areas, building exterior, landscaping, and parking. • Affordable housing restrictions per 55-year covenant • RHF compliance w/ all city policies including First Source Hiring, Minimum Wage Ordinance

  9. Concord Senior Housing Existing Parking

  10. Parcel Split Existing Parking Relocated Parking

  11. Schedule – Key Milestones • Feb 2019 – RHF submits Rent Application to HUD • July 2019 – RHF applies for tax credits and bond financing • Dec 2019 – Project Closing. City sells Concord to RHF. RHF pays 1st installment of sale proceeds to FPRS/City. Renovation commences. • Sept 2021 – Renovation completion • March 2022 – Permanent loan conversion. RHF pays 2nd installment of sale proceeds to FPRS/City. • March 2023 – RHF files first-year tax return and pays 3rd (final) installment of sale proceeds to FPRS/City

More Related