HomeMy WebLinkAboutRes 2025-019Docusign Envelope ID: 5F5BCOBC-A6BE-424A-96A4-DEFC05DB841B
RESOLUTION NO. 2025-019
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT MAKING FINDINGS PURSUANT TO THE HEALTH AND
SAFETY CODE SECTION IN CONNECTION WITH A PROPOSED
AMENDMENT TO DISPOSITION, DEVELOPMENT AND LOAN
AGREEMENT BETWEEN THE PALM DESERT HOUSING AUTHORITY
AND CHELSEA INVESTMENT CORPORATION, (OR ITS DESIGNEE)
is:x iir_i�J
A. Pursuant to Health and Safety Code Section 34175(b) and the California Supreme
Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al.
(53 Cal. 4th 231 (2011), on February 1, 2012, all assets, properties, contracts, leases,
books and records, buildings, and equipment of the former Palm Desert Redevelopment
Agency ("Former Agency") transferred to the control of the Successor Agency to the
Former Agency (the "Successor Agency").
B. By its Resolution No. 2012-07 the City Council of the City of Palm Desert elected that
all assets, rights, powers, liabilities, duties, and obligations associated with housing
activities of the Former Agency be transferred from the Successor Agency to the Palm
Desert Housing Authority (the "Authority").
C. By its Resolution No. HA -47, the Authority accepted the housing functions and assets
of the Former Agency.
D. The Authority owns an approximately 1.84 acre lot located off Country Club Drive in
the City of Palm Desert, California described as APN No. 622-370-014 (the "Property").
The Authority proposes to convey the Property to Chelsea Investment Corporation (or its
designee) ("Chelsea") for the purpose of Chelsea constructing forty (40) units of housing,
thirty-nine (39) of which will be made available for rental to qualified households of low-
income, very -low income and extremely low-income, (10) of which shall be designated
for use by individuals with developmental disabilities and one (1) of which shall be used
for on -site management pursuant to a Disposition and Development and Loan
Agreement, dated June 13, 2024, between the Authority and Chelsea (the "Agreement").
E. The Authority and Chelsea desire to amend the Agreement in accordance with the
Amendment to Disposition, Development, and Loan Agreement, attached hereto and
incorporated herein and on file in the office of the Agency Secretary and City Clerk (the
"Amendment").
F. Following notice duly given, the City Council and Authority have held a full and fair
joint public hearing on the conveyance by the Authority of the Property to Chelsea
pursuant to Health and Safety Code Section 33433. The Authority has made available to
the public through the offices of the Authority Secretary and City Clerk a copy of the
Agreement and the Amendment, and a Summary Report (the "Report") describing,
among other matters, the cost of the Agreement, as amended by the Amendment, to the
Authority, prior to the joint public hearing as required by Health and Safety Code Section
33433.
G. Health and Safety Code Section 33433(a) and (b) generally provide that before any
property of the Former Agency, acquired in whole or in part, directly or indirectly, with tax
increment moneys is sold for development pursuant to the redevelopment plan, the sale
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019 Page 2
must first be approved by the legislative body by resolution after a public hearing and the
resolution must contain certain findings. Pursuant to its Resolution No. 2013-11, the City
Council authorized the Authority, as housing successor to the Former Agency, to convey
property for the development of housing projects pursuant to Health and Safety Code
Section 33433.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert,
California, as follows:
SECTION 1. On the basis of the Report and other information received by the
City, the City Council hereby finds and determines (i) that the consideration received by
the Authority pursuant to the Agreement, as amended by the Amendment, for the
conveyance of the Property is not less than the fair market value of the Property at its
highest and best use in accordance with the redevelopment plan as described in the
Agreement, as amended by the Amendment, and (ii) that the conveyance of the Property
pursuant to the Agreement, as amended by the Amendment, will provide housing for low-
income persons consistent with the implementation plan adopted by the Former Agency
pursuant to California Health and Safety Code Section 33490. The City Council further
finds that use of moneys in the Authority's Low and Moderate Income Housing Asset
Fund in accordance with the Agreement, as amended by the Amendment, is of benefit to
the project areas of the Former Agency.
SECTION 2. The officers of the City are hereby authorized and directed, jointly
and severally, to do all things which they may deem necessary or proper in order to
effectuate the purposes of this Resolution and the transactions contemplated hereby; and
any such actions previously taken by such officers are hereby ratified, confirmed and
approved.
ADOPTED ON MARCH 27, 2025.
Signed by: ��JJ
ncs7nmmnr 44n4
JAN C. HARNIK
MAYOR
ATTEST:
Signed by:
ANTHONY J. MEJIA
CITY CLERK
Docusign Envelope ID: 5F5BCOBC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 3
I, Anthony J. Mejia, Secretary of the Palm Desert Housing Authority, hereby certify
that Resolution No. 2025-019 is a full, true, and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Desert on March 27, 2025, by the
following vote:
AYES: NESTANDE, PRADETTO, QUINTANILLA, TRUBEE, AND HARNIK
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
RECUSED: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Desert, California, on
3/28/2025
Signed by:
�aa
ANTHONY J. MEJIA
SECRETARY
Docusign Envelope ID: 5F5BCOBC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 4
EXHIBIT A
AMENDMENT TO DISPOSITION, DEVELOPMENT, AND LOAN
AGREEMENT
THIS AMENDMENT TO DISPOSITION, DEVELOPMENT, AND LOAN
AGREEMENT (this "Amendment") is dated as of March 27, 2025, and is entered into by
and between the PALM DESERT HOUSING AUTHORITY ("Authority") and CHELSEA
INVESTMENT CORPORATION, a California corporation ("Developer").
RECITALS:
A. Authority and Developer entered into a Disposition, Development, and Loan
Agreement dated June 13, 2024 ("DDLA").
B. Authority and Developer desire to amend the DDLA as hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing, and for other
consideration, the sufficiency of which is hereby acknowledged, the parties hereby agree
as follows:
1. Purchase Price. The purchase price for the Property shall be $1,680,000
(which is the fair market value of the Property as determined by a recent appraisal).
2. New Purchase Money Loan; Increase in Authority Loan Amount; Interest Rate.
The purchase price shall be loaned by Authority to Developer as a purchase money loan
on the terms of the Authority Loan and pursuant to the Authority Loan documents;
consequently, the Authority Loan amount is hereby increased from $3,000,000 to
$4,680,000.
For the $3,000,000 loan for city fees and construction costs, the interest rate
shall be 3% simple interest; for the remainder of the Authority Loan (the $1,680,000
purchase money loan), the interest rate shall be the long-term annual adjusted applicable
federal rate (AFR) published for April 2025 with unpaid, accrued interest being added
annually to principal (i.e., interest compounding annually).
3. No Density Bonus; No Density Bonus Agreement. Section 2.18 of the DDLA is
hereby deleted. All references to a density bonus agreement in the DDLA are hereby
deleted.
4. Definition of Residual Receipts. The definition of "Residual Receipts" in Section 1
of the DDLA is hereby deleted and the following is substituted in lieu thereof:
"Residual Receipts" in a particular calendar year for a Phase shall mean the cash
(without regard to the source) derived from the operation of the Project minus the following
determined on a cash basis: (i) all real estate and personal property taxes and
Docusign Envelope ID: 5F5BCOBC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019 Page 5
assessments, insurance premiums and reasonable costs of maintenance, operation and
management incurred by the Developer in connection with the operation and
maintenance, (ii) property management fees not to exceed four and one-half percent
(4.5%) of the gross revenue of the Project, (iii) the costs of servicing the senior
construction loan/financing ( and any approved refinancing thereof) and other sources of
permitted financing; (iv) amounts necessary to maintain a guaranty or other form of
security or bond for an operation reserve account, (v) amounts deposited into a
replacement initially capitalized reserve account in the minimum sum of Two Hundred
Fifty Dollars ($250.00) per unit per annum, increasing by three percent (3%) annually, (vi)
the repayment of any amounts loaned by the Developer for material development costs,
operating deficits or tax credit adjusters or other payments to the investor which costs
were not reasonably anticipated, (vii) deferred developer fees, (viii) a limited partner
monitoring fee in the annual amount of Five Thousand Dollars ($5,000.00), increasing by
ten percent (10%) every five years, unless fully paid on a permanent loan conversion; (ix)
a managing general partner fee in the annual amount of Five Thousand Dollars
($5,000.00), increasing three percent (3%) annually; (xi) an administrative general partner
fee in the annual amount of Five Thousand Dollars ($5,000.00), increasing three percent
(3%) annually; and (xii) a monitoring fee of Five Thousand Dollars ($5,000.00), increasing
three percent (3%) annually and payable annually in advance to the Authority. In no event
shall depreciation/amortization be deducted from cash revenues. Residual Receipts shall
be determined by the Developer and the Authority on a cash basis without regard to any
carry-over profit or loss from any prior calendar year, and shall be determined annually,
on or before June 1st for the preceding calendar year. Any deferred developer fee, limited
partner monitoring fee, managing general partner fee, and administrative general partner
fee may not accrue interest.
5. Additional Permitted Transfer. Section 7.4 of the DDLA is hereby
amended by adding the following subparagraph (g) as an additional permitted
transfer:
"(g) The removal and replacement of the general partner of Developer by the
tax credit investor in accordance with the terms of the amended and restated
agreement of limited partnership of the Developer."
6. One Month Extension of Completion Deadline. Item 9 of Exhibit G to the
DDLA is hereby amended by extending the September 1, 2026, completion date to
October 1, 2026.
7. Scope of Development. The scope of development attached as Exhibit F
to the DDLA is hereby deleted and the updated scope of development attached
hereto (designated Exhibit F) is hereby substituted in lieu thereof.
8. Financing Plan. The financing plan/proposal attached as Exhibit H to the
DDLA is hereby deleted and the updated financing plan attached hereto (designated
Exhibit H) is hereby substituted in lieu thereof.
9. Affordability Mix; Manager's Unit. With respect to the 59% AMI income
category, there will be seven (7) 59% AMI one -bedroom units, four (4) 59% AMI two-
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 6
bedroom units, and four (4) 59% AMI three -bedroom units. The manager's unit will
be a one -bedroom unit.
10. No Other Changes. Except as otherwise modified herein, the terms and
provisions of the DDLA shall remain unchanged and are hereby ratified and
confirmed.
11. Counterparts. This Amendment may be executed in counterparts, each
of which shall be deemed an original, but all of which, together, shall constitute one
and the same instrument.
12. Electronic/Email Delivery. Executed originals of this Amendment may be
delivered by email/PDF.
[SIGNATURES ON FOLLOWING PAGE]
Docusign Envelope ID: 5F5BCOBC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 7
IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date first written above.
DEVELOPER:
CHELSEA INVESTMENT CORPORATION,
a California corporation
By:
Cheri Hoffman
President
AUTHORITY:
J_1I&191261121:4 aImM1ll6y1►[e1_T1�I:Is]VIVA
By:
Chris Escobedo
Interim City Manager
APPROVED AS TO FORM:
Bruce Galloway
Richards Watson Gershon
Special Counsel to Authority
Docusign Envelope ID: 5F5BCOBC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 8
EXHIBIT "F"
UPDATED SCOPE OF DEVELOPMENT
A 40 -unit apartment complex, with 20 one -bedroom apartments, 10 two -bedroom
apartments, and 10 three -bedroom apartments (including one (1) one -bedroom manager
unit).
50 total off-street parking spaces, of which 40 will be carport covered spaces.
The Developer shall develop a 40 multi -family rental housing development, with
20 one -bedroom apartments, 10 two -bedroom apartments, and 10 three -bedroom
apartments (including 1 one -bedroom manager unit). All capitalized terms not defined
herein shall have the meaning ascribed to such terms in the Agreement,
The Project shall conform to plans approved by the City, including all conditions
and mitigation measures imposed by the City in connection with the
entitlement/development approval process of the City.
The Project shall be constructed on the Property (such property consisting of
approximately 1.84 acres of vacant land located off of Country Club Drive in the City of
Palm Desert). The Project, which will be called "Arc Village", will be built as a single
phase. The quality of construction shall be of a high level.
HOUSING TYPE
Arc Village will construct forty (40) multi -family rental units, thirty-nine (39) of which
shall be made available to and occupied by households with incomes less than 60% AMI,
and ten (10) of which shall be designated for use by individuals with developmental and/or
intellectual disabilities and/or Desert Arc participants. Units will consist of a mix of one,
two and three -bedroom units, and be restricted by a recorded Housing Agreement. One
of the units shall be used for on -site management.
SITE AMENITIES
1. Attached 1,543 square -foot community lounge with:
a. On -site office area
b. Communal Kitchen
c. Lounge
d. Restrooms
2. BBQ Gathering Space
3. Laundry Facilities
4. Enclosed Tot -Lot with Play Structure, Shade Structure and Benches
5. On -Site Property Management
6. 49 off-street parking spaces, 40 of which will be carport covered spaces.
Docusign Envelope ID: 5F5BCOBC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019 Page 9
CONSTRUCTION TYPE & ARCHITECTURAL GOALS
The Construction Type will be Type VB Construction with NFPA 13 fire sprinklers
(1 -hour walls between occupancy separations). This project to be construction of a two-
story multi -family apartment building consisting of (40) residential dwelling units. The
Architectural goal is to blend into the existing development using neutral tones as well as
provide articulation of the exterior with recesses and different materials.
SUSTAINABLE BUILDING / GREEN BUILDING PRACTICES
This project will comply with all applicable `Green Building Standards' and
`Minimum Sustainable Building Specifications' required by the State of California and the
City of Palm Desert. The project will meet the State of California Title 24 Requirements
and provide both solar power and EV charging.
UNIT AMENITIES
1. Energy Star Appliances
a. Stove/Oven
b. Refrigerator
c. Dishwasher
d. Garbage Disposal
2. Solid Surface Countertops
3. Upgraded Cabinets
4. Central Air Conditioning/Heating
5. Window Blinds
6. Carpet, Vinyl or Tile
7. Patio or Balcony
8. Storage Closet, to be located on patio/balcony.
SOCIAL SERVICE PROGRAMS
1. Social Service Programs will be conducted on site and available for all
residents free of charge. A program coordinator will be hired, or a contract will be
executed with a local nonprofit, to provide family appropriate classes for the residents, as
well as collaborate with outside nonprofits and agencies to expand program options.
Residents will have input as to which classes and programs are offered at the center.
Typically, the classes and programs will include adult educational and skill building
classes to include computer literacy, ESL and art classes, job counseling, financial
literacy, health and wellness workshops and a food distribution program.
The Developer shall commence and complete the Project in accordance with the
Schedule of Performance. The Project shall conform to and shall complete and satisfy
any and all conditions from the City's entitlement approval of Project.
I. DEVELOPMENT STANDARDS
The improvements shall conform to all applicable Governmental Requirements,
including without limitation, local subdivision, zoning, building code and other applicable
Docusign Envelope ID: 5F5BCOBC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019 Page 10
ordinances, resolutions, policies, applicable general and Specific Plans, and regulations
of the City of Palm Desert ("City Ordinances") and the following development standards:
A. General Requirements:
1. Vehicular Access. The placement of vehicular driveways shall be
coordinated with the needs of proper street traffic flow as approved by the City in
accordance with City Ordinances. In the interest of minimizing traffic congestion, the City
of Palm Desert will control the number and location of curb breaks for access to the
Project for off street parking and truck loading. All access driveways shall require written
approval of the City.
Any gated access shall comply with the requirements of the City and will be
subject to review.
2. Building Signs. Signs shall be limited in size, subdued and
otherwise designed to contribute positively to the environment. Signs identifying the
building use will be permitted, but their height, size, location, color, lighting and design
will be subject to City approval, and signs must conform to the City Ordinances.
3. Screening. All outdoor storage of materials or equipment shall be
enclosed or screened to the extent and in the manner required by the City.
4. Landscaping. The developer shall provide and maintain
landscaping within the project area and within setback area along all street frontages and
internal property boundaries and conforming to the plans as hereafter approved by the
City. Landscaping shall consist of trees, shrubs and installation of an automatic irrigation
system adequate to maintain such plant material. The type and size of trees to be
planted, together with a landscaping plan are to be determined by the Developer and in
accordance with applicable ordinances and requirements.
5. Utilities. All utilities on the Property provided to service the units
constructed by the Developer shall be underground at the Developer's expense.
6. Building Design. Buildings shall be constructed such that the
improvements shall be of high architectural quality and shall be effectively and
aesthetically designed and in conformance with City approvals.
7. Energy Considerations. The design of the improvements shall
include, where feasible, energy conservation construction techniques and design,
including co -generation facilities and active and passive solar energy design. The
Developer shall be required to demonstrate consideration of such energy features during
the design review process and to consistency with energy conservation provisions of the
building code.
8. Site Preparation. The City of Palm Desert, at its cost and expense,
shall prepare the Property for development. Such preparations shall consist of the
complete demolition and removal of all existing improvements, if any.
Docusign Envelope ID: 5F5BCOBC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019 Page 11
9. Environmental Impact Mitigation Measures. To the extent
required under the terms of the DDLA, the Developer shall implement any and all
mitigation measures and/or mitigation monitoring requirements as identified in any
certified environmental document, certified or mitigated negative declaration adopted in
connection with the project.
10. Construction Fence. The Developer shall install a temporary
construction chain link fence with opaque screening. The construction fence shall be
maintained free of litter and in good repair for the duration of its installation.
11. Development Identification Signs. Prior to commencement of
construction on the Property, the Developer shall prepare and install, at its cost and
expense, one sign on the barricade around the Property which identifies the
Development. The sign shall be at least four (4) feet by six (6) feet and be visible to
passing pedestrians and vehicular traffic. The design of the sign, as well as the proposed
location, shall be submitted to the City and the Authority for review and approval prior to
installation. The sign shall, at a minimum, include:
- Illustration of development
- Development name
- Logo of the City of Palm Desert
- List of City Council Members
- Information number
- Completion Date
B. Design Features:
The following design features are considered essential components to the
improvements:
Accessible Units — An agreed upon number of units are to be fully handicap
accessible in compliance with State Housing Code — Title 24 requirements.
Overall Design Quality, Materials, Colors, Design Features — Quality of design is
important, materials and colors are to be approved by the City.
All southern -facing windows, located on the second floor of the southernmost
elevation of the building shall be privacy windows. Said privacy windows shall be
designed to obscure views through the glass by window treatments including, but not
limited to, frosted glass, patterned glass, or other acceptable methods which visually
obstruct views through the glass. The use of external window treatments, such as an
applied film or self-adhesive material to alter light transmission through the window shall
not be used. Final construction plans shall provide sufficient information to demonstrate
compliance with this condition of approval and shall be subject to approval by the
Development Services Department.
II. SPECIAL AMENITIES
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 12
The Developer shall undertake all improvements required by the City as a
condition of development of the Property, as more particularly provided in the City
approvals given for the Property.
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 13
EXHIBIT "H"
UPDATED FINANCING PROPOSAL/PLAN
(Attached.)
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 14
Affordable Development Financing Plan
Arc Village CIC, LP ("AVC LP") will be the owner of Arc Village Apartments. AVC LP will acquire the
property, finance and operate the apartments.
Arc Village Apartments is the proposed 40 -unit development, to be located directly south of Desert Arc,
primarily using 9% Low Income Housing Tax Credits ("LIHTC") equity, a permanent loan from U.S. Bank,
a land donation from the Palm Desert Housing Authority, loans from the Palm Desert Housing Authority,
and CROP DDS funding from the Inland Regional Center. The total development cost is estimated at
$23,528,579.
Chelsea received a 9% tax credit award from TCAC for $1,532,725 in federal tax credits annually over 10
years. Our investor, U.S. Bank, is expected to pay $0.89 per credit for a total investment of $13,639,888.
Funding is expected to be as follows:
LIHTC Equity
$13,639,888
GP Equity
$100
Perm Loan TrancheA
$3,130,000
Priority Deferred Developer Fee
$352,771
Acquisition Loan
$1,680,000
Palm Desert Housing Authority Loan
$3,000,000
DDS - CRDP
$1,500,000
TCAC Deposit Refund / Monitoring Fee
$45,819
Total Development Cost
$23,528,579
The Perm Loan is underwritten at a 7.64% interest rate with a 35 -year amortization and 17 -year
term. Soft debt is underwritten at 3.0% interest rate and will receive a pro rate share of half of the
cash flow after the deferred developer fee is repaid.
A construction loan of approximately $14,028,660 will be used to bridge the tax credit equity and
finance the construction of Arc Village. The loan is underwritten at a 7.11 % interest rate.
Construction is expected to take 13 months. The loan will be for 24 months to allow for lease up
and stabilization after construction completion.
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 15
PROJECT SUMMARY
an1rz625
Arc Village Apsarlrnel+e
13395 Cncny c4e Gr+e, P4m 005d CA 9]280
R.rerz.e Courvry
CM.b:
D.(ml.d
Landlixlutling a.ieting'mlprpvam.Mei
$0,000/601
1,760.000
DIr04 Ccrrclrucli10000loldlc GarR0190n5(i
$360,901MT
60 14,432.4
D. eIepmeri Impactt Fee.
$20,99000
1,159.603
F8E
$16445414
65].660
Flrnncln. Fool .rnl I4areel
546,241/11/4
1,601.256
Developer Fee
$62500041
2,500,000
Other 501 Gals
329,19204
1,161.672
044 fleo.900.41 0044
%00,21400
23,520.379
Fauea.
Federal LIHTC Eerily
5340,99700
10.606.000IOU
$311.111
000
PerOP/Tooaft nlCO*0164UUI
Permanem L08re
$62,780Ark
3.310.000
Privily Dekned Developer F..
5881900
352.771
e40JIeltlen Lean
$42 00000
1,450,000
Sub.rdlnele Defend Dewl.Pm Fee
Private P1.Oemek Juder Rend
Soo Local
Soo Sake
TCAC Dp.alf ReMdiMOnh1001ng Fee
Other
50/tall
$010111
5112,500Ae01
$01111
$1,14504
$01003
%88,21400
0
0
4,500.000
0
45.819
0
22,528,579
LIHTG Ten GTedn Rate
9.00%
10 Yr Federal Tao Cretl/e
15,327,250
SIk. T. Credn Toll
0
Federal P.O CredO Price
$ 0.0900
Stale TO Cred9 Pdce
§
Solar Ton CrednPrice
$
DDMOCT60041
Y
Opr. Eop.AJriVYeer
5,913
Rekacemem Resenrc/iroWear
250
Vac.nry Rite
5.0056
OCT
1.15
P610 Loon Am0d
35
Inlereel Rke. P.mlerenl Lr.n
7.64%
INansl Role. Cerelnssllen Lem,
7.11%
TIERREAXER
64,37%
TN.1 C.nknl.n.n Lem
141126.660
Tao. Exempt Eends. C.nsfsurnon
0
Tao Exempt Rends- Cen.hlYdenlPeml
0
50947.04
Na
Prevailln 1010 0:
None
Clj
CHELSEA
PROJECT UNITS INCOME MIX
8M1 8h19i4 18@ 798 788 998 7gf99E
xw sF s5o ne n3 9s6 1,zsa
0057854 .259
i
0
0
0
0
0
0
pk
0
0
0
0
0
0
74%
0
0
0
0
0
0
e4%
0
1
4
4
0
15
50%
0
6
3
3
0
12
4%
0
4
2
2
0
0
$e%
0
2
1
1
0
4
M.
0
1
0
0
0
1
TeUlt
I
49
ii
IT
I
44
Tao Credit 411ocklon 00/06.1.2.
CemlruHlon Cmslrg
April -25
Censtruc110n Eegln
May.25
Cerlslructlon Cemp4le
J1ne26
Lear. Up Complete
Seplember.26
CerlverslervSlablll10ion
Daeemberv26
6609
400.27
P.14011.1 Isl Year Credll 011111 y
744,245
Eslinal.d 2nd Year Cr.9d 0.10/cry
1.532,572
Eelinaled 4010 Year Credit De11ve
1 532,572
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 16
PROJECTED SOURCES AND USES OF FUNDS
034
d LI01c13TC E¢av
151 1)0479
Conewsun 2337
7 11301(Loan33] m
71111 41)461 2 el
1) 413f)de�()eveloper Fee
17105Nm Lam
531.11 04110354L90.
ToeNF4m6. 72571005
Tlgnsoei27,0. Ao51xnng Fee
TW/ 8o4rwsa(Fvi6ls
L 4OF FINES
ACOUI91109
LOS) 0101
dNer Laid 89409152153,04110501 Pave
72171001553719
Tees Le15]/110165410n
91 022 (L12210411106
10327 2)1mw
717 1792)14) 22111
91,02301
1011
Patting Garage
Wce
0445,21214287/
Gerelel Re53Ym1ems
1emrecwr 0722 urizn savicee
Cb14 h
72.9325 C22tinp170 mcy
55[71715
Tola'6Mw O4r1T154rew1
SAC 471)071RNY3/47VF1O50 NSERING
0451.7471340414
241177/5301331134
Cmar.
Tcts hrchlbdvll
200251 Cnni14149
ScftOp55Cm1Igercy
Tktl Owdnan,
I
51031
fl5xp5
]15181
257
619
1.771
4.77
0071
9]43,649345
S
21.12
420417
-
-
-
11819®
1.167050
11.1479910 150.101+
17498,659
00
W
100
-
090?17
36038]1
3889,190
3,136,191
1558401
15442.404
550236
140]8,680
17357001
1130790 67)
740186635
-
-
-
-
-
-
-
9310.71
331172
1560,030
-
-
-
-
£.100000
-
352.711
352,771
1.350.0]0
1011/07
-
-
17(2001
-
-
-
-
.w2?W
-
-
-
1.7297
-
' "019
i,mo:m4
16.519
815Ats
5,141579
yES,tT
3A1>t,®1
7A(71,tee
0450.721
1782091
36532372
580502
1935350 58,501
58532.673
98177
1A&,WO
-
3014601
1.680.6)0
07204
10190
-
-
-
-
-
43
5Rma
1
1196
-
-
-
1,3@01100
-
1.T60A00
138503
341,459
814547
615023
10741 121/0013
211911
217911
42223
505,504
35;505
-
495895
814610
819,815
619,810
123,9]4
2,417073
4073,414
0
-
1.57304
1,917455
1501,955
1,967955
391$91
7,961,990
7461,1
14,259
56.112
1045
27815
20,915
69107
504671
500.111
30,103
155,119
1925219
112849
112299
39$90
5766465
226581
246550816481
18618
113191
147.171
141,141
147.171
29)94
816]11
616.311
195135
611,}35
5644.797
0,370541
4430311
7,210¢11
616,191
11359]%
.
13,153,329
33,43]
-
3,988
4,995
4985
4895
998
53490
53450
155853
82602
112.703
112,103
112.173
22.121
014461
609,361
189,116
93,6]9
117,097
897,387
117097
58413
357,90!
-
-
667,9(71
0
22,7(7
41739
103,271
5536
101,121117,147
3127
5707
111.140
10029
32799
25643
318550
1
624.248
10 904
T0W0
714.53
17,673
135,106
111175
64159
281779
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 17
PROJECTED SOURCES AND USES OF PUN DS
01 4 1104, 4 005
C01.Smu[TIW1 l*mpp Ex7E115EE
75 2125 72 5 74 2 12115621
754451elWmertl Lam I
CtiVn20m1A5cfc7ipn F w
Pe
91mr31na[1? Det r9io anln Fee
152Eelflap6100410505057415
79009. 013175750 05
Cu2de70m
04]054]72 5442* 94] atl 70017070
417005- 60111
CN9_ Sew7M1v
TYY CoIn nctlon P1Yotl 0505115
F0M474J31 FlNWJC * EWENSES
497 4421 7.24
7007057037500077
con hI 17C45lFA lass
1212 22tam
Teel PeananmEliw'an9
E6PL 1
4915004
*2110155471
Tots' LqY Few
VPITPiIZmprsmVEs
CAaa0RF1240
714ns7m Rwerce
TEES R.nnn
PE9053056 5710505
04047525
6154104111101
Rv[wel0Nm 5144157
Caha.
TRYR.p*n.0&Ww
67002
515501'47 Fags
20 Dee Ee0(4]111111051h Foes
3n5702754975260 701411115)
197015 70275497502600504115450)
0070 PreyRa4ew(5A)
r,757nen1(451145 antl CM I SAI
2054 File Fl.
C-0 Ssi<e Fe1
Metla9q 9 Lwse Rwsii5v 055371 LBS] orcandience
FFeE
CaheF POP 75605
OS 1l00xm Tplr
*207OFFR700915
4900Far Fee
*21
T.ZM WOSOPEI COO.
To1Y W w.1 Fun05
000
30—
H32M11
*1578811
0
-
5,218
32002
101415
157056
70445
381,156
a-19,632
905,262
110258
110255
110246
0
510257
110103
-
145263
0
45506
3
45
4,625
-0.615
125
44510
-
6530
1,000
490]0
11 500
62 815
815
815
125
63,54
7
1404]0
1505100
55749
0
-
6004]
-
-
-
60,000
049
60,04]
0
O
00451
19.335
18215
10338
105,515
00 ,506
ID5,825
5a60.491,050
255.@5
414,653
10.505
65442
114,113
161491
506.604
4.112,683
414936 .
1.257,439
:....
5,40
0
-
-
_3; w.i
34.,567
125118
-
125 710
26118
11.1
-
114,141
.,.4]o
14a�
0
4597
6504
11,010
1 024
152311
175
17540
12,604
201,338
-
-
-
-
29,04]
17.0.12
235.000
-
-
-
-
-
- 13-70:.2,
135,49
475
sax
0710
8920
-
-
-
0010
740
3180
20710
-
-
-
74,54]
7449
95396
492551
428150
622,160
0
151,176
417177
&+1,405
631,43
1100
1514]
4.1164,127
4.171
025
3554]
2154]
5449
50.000
50000
100000
45040
121,202
9],912
15520
21,125
21,125
21,125
4225
240502
219,500
0
25000
15000
96,40
150
24002
25,701
54,2723
9349
0
2102
vcm
22540
I,UI.
01,755.
1.11.91
250170
-
-
-
-
700,04
1650000 19].05
26110.00
12011']
00004]
1.51,_]0 141[
2
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 18
Arc Village Apartments
Estimate of LIHTC Basis Calculation
0% 100%
ACTUAL OR EST.
ACQ
NCIREHAB
DESCRIPTION OF COSTS
OF COSTS
ELIGIBLE BASIS
ELIGIBLE BASIS
ACQUISITION
Land Cost
$ 1,680,000
Building Cost
$
$
Broker Fees
$
Site Improvement Purchase
$
$
Offiste Improvement Purchase
$
$
Other Land Related Expenses / Option Pmnt
$ 80,000
Other Closing Costs
$
TOTAL LAND/AQUISITION COSTS
$ 1,760,000
$
$
RELOCATION
Relocation Admin And Temp Relocation
$ -
Permanent Relocation Expense
$
TOTAL RELOCATION COSTS
$
NEW CONSTRUCTION
Demolition
$
Design Assistance
$ 510,346
$ 510,346
Off -site Improvements
$ 852,053
$ 852,053
Site Work
$ 2,478,472
$ 2,478,472
Solar
$
$
Parking Garage
$ -
$ -
Vertical
$ 7,951,820
$ 7,951,820
Commercial incl. fees
$
$
GC Contingency
$ 294,817
$ 294,817
General Requirements
$ 805,454
$ 805,454
Contractor Preconstruction Services
$ 245,525
$ 245,525
Contractor Fees
$ 615,311
$ 615,311
Design Contingency
$
$
Escalation
$
$
TOTAL CONSTRUCTION
$ 13,753,798
$
$ 13,753,798
ARCHITECTURAL FEES
Other Architectural
$ 53,450
$ 53,450
Survey/Engineering
$ 604,354
$ 604,354
Other:
$ -
$ -
TOTAL ARCHITECTURAL COSTS
$ 657,804
$
$ 657,804
CONTINGENCY COSTS
Hard Cost Contingency
$ 678,246
$ 678,246
Soft Cost Contingency
$ 102,934
$ 102,934
TOTAL CONTINGENCY COSTS
$ 781,179
$
$ 781,179
CONSTRUCTION PERIOD EXPENSES
Construction Loan Interest
$ 855,992
$ 381,156
Private Placement Junior Bond Interest
$
$
Soft Loan Interest
$
$
Predevelopment Loan Interest
$ 110,256
$ 110,256
Origination/Application Fee
$ 140,287
$ 105,215
Subordinate/Soft Debt Origination Fee
$ -
$ -
Lender Reports and Inspections
$ 44,500
$ 44,500
Title/Recording/Taxes
$ 52,500
$ 39,375
Insurance During Construction
$ 150,000
$ 150,000
Construction Mgmt and Monitoring
$ 40,000
$ 40,000
Other - Solar
$ 205,625
$ 205,625
Other - Security
$ 98,338
$ 98,338
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 19
Arc Village Apartments
Estimate of LIHTC Basis Calculation
TOTAL CONSTRUCTION PERIOD EXPENSE
$ 1,697,498
$
$ 1,174,465
PERMANENT FINANCING EXPENSES
Loan Origination Fees
$
Title/Recording/Taxes
$ 5,000
Insurance
$ 23,640
Other: Bondrlssuer/FA fees
$
Other: LIHTC fees
$ 125,118
TOTAL PERMANENT FINANCING COSTS
$ 153,758
$
$
LEGAL FEES
Lender Legal
$ 60,000
$ 33,750
Sponsor Legal
$ 175,000
$ 57,750
TOTAL LEGAL
$ 235,000
$
$ 91,500
CAPITALIZED RESERVES
Operating Reserve
$ 135,830
Transition Reserve
$
Other Reserve
$
TOTAL RESERVE COSTS
$ 135,830
REPORTS & STUDIES
Market Study
$ 4,750
$ 4,750
Appraisal
$ 4,750
$ 4,750
Environmental
$ 8,420
$ 8,420
Preconstruction Studies
$ 24,500
$ 24,500
Other:
$
$
TOTAL REPORTS & STUDIES
$ 42,420
$
$ 42,420
OTHER EXPENSES
Local Permit Fees
$ 528,150
$ 528,150
Local Development Impact Fees
$ 631,453
$ 631,453
Accounting/Reimbursable/Cost Certification
$ 62,500
$ 62,500
Financial Consulting/App Prep/Review (SA)
$ 100,000
$ 100,000
Entitlement Services and CM (SA)
$ 249,500
$ 249,500
Tenant File Review
$
$
GP Service Fee
$ 25,000
Marketing & Lease Up
$ 80,000
Prevailing Wage / Labor Compliance
$
$
FF&E
$ 27,500
$ 27,500
Other: P&P Bond
$ 107,188
$ 107,188
TOTAL OTHER COSTS
$ 1,811,291
$
$ 1,706,291
DEVELOPER COSTS
Developer Fee
S 2,500,000
S
S 2,500,000
TOTAL DEVELOPER FEE
$ 2,500,000
$
$ 2,500,000
TOTAL RESIDENTIAL COSTS
$ 23,528,579
$
$ 20,707,458
REDUCE BY TOTAL COMMERCIAL COSTS
$
$
TOTAL RESIDENTIAL PROJECT
$ 23,528,579
$
$ 20,707,458
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 20
Arc Village Apartments
Estimate of LIHTC Basis Calculation
Adjustment for Excess Basis
$ 2,843,325
Additional Amount Voluntarily Excluded From Basis
$
$ 4,763,919
Requested Undadjusted Eligible Basis
$
$ 13,100,214
130% FACTOR?
Tract #: 451.24
Y
$ 17,030,278
Total Adjusted Qualified Basis
$
$ 17,030,278
TX CREDITS @ % LI Eligible@ Tx Credit RI
100.00%
4.00%
9.00%
TX CREDITS @ % LI Eligible
hard code award
$
$ 1,532,725
TX CREDITS OVER TEN YEARS
$ -
$ 15,327,250
TX CREDIT EQUITY INVESTMENT
$ 0.8900
99.99%
$ 13,639,888
State Tax Credits
30.00%
$ -
$ -
State Tax Credit Equity
$
100.00%
$
Solar Credits
30.00%
$
Solar Equity
$
99.99%
$
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019
Page 21
Arc Village Apartments Revision Date: 311112025
Detailed Operating Budget and Income Analysis
Sear 2024 Expenses Source TCAC Min 2022
MSA Riverside County UA source RivCo HA OA 711/24
4 Person 50% AMI $51,250 Other per 612024 commitment letter
Square
Total
Gross
Utility
Monthly
Annual
Rent:
Restriction
%AMI
Units
FeetlUnit
S . Ft.
Rents
Allowance
Net Rent
Rent
1BR11 BA
City HCD
59%
7
578
4,046
$ 1150
$ 8400
$ 1,056
$ 89544
1BRII BA
LIFIrC
50%
6
578
3468
A 951
$ 8400
A 877
$ 63,144
1BR11 BA
LIHfC
40%
4
578
2,312
$ 769
$ 8400
$ 685
$ 32,880
1BR11 BA
LIFRC
30%
2
578
1,156
A 575
$ 8400
A 492
$ 11,808
1BR118A
MGR
M r_
1
578
578
A
$ 8400
$
$
2BR118A
CityHCD
59%
4
733
2,932
A 1,294
$ 11800
A 1,176
$ 56,448
2861166
City HCD
50%
3
733
2,199
$ 1,097
$ 11800
$ 979
$ 35,244
2861166
L11 -RC
40%
2
733
1,466
$ 922
$ 11800
$ 804
$ 19,296
2BR/1BA
Ci HCD
30%
1
733
733
$ 658
$ 11800
$ 540
$ 6,480
3BRI2BA
City HCD
59%
4
954
3,816
$ 1,438
$ 15300
$ 1,285
$ 61,680
3BRI2BA
City HCD
50%
3
954
2,862
$ 1,219
$ 15300
$ 1,066
$ 38,376
3BRI2BA
LIHTC
40%
2
954
1908
$ 1,066
$ 15300
$ 913
$ 21912
3BRI2BA
City HCD
30%
1
954
954
$ 731
$ 15300
$ 578
$ 6,936
Total Rents
40
28,430
443,748
Community Room/Office
2500 %Loss to Effic 15% 4,640
Construction Square Feet 30,930
Income from Operations
PUPM
Total Rents
443,748
Laundry
$ 10.00
4,800
Otherincome lApp. Fees, Late. eto.l
$ 10.00
4,800
Sub -Total
$ 20.00
453348
Rental Assistance
162,180
Less: Vacancies
5%
30,776
Commercial Income
$ PSF RENT Commercial SF
0
Less: Seocr,oies@
50%
0
Total Income
584752
Operating Expenses
PUPA Notes
Admin
$ 663
26503
Mana ement Fee
$ 600
24 000
Utilities
$ 1,189
47541
Pa roll
$ 2174
86967
Repels 6 Meieteoetroe
$ 622
24878
nH
$ 591
23,649
Those OA, CFD
$ 75
3,000
Additional ex en
$ -
0
Total Eopenses
$ 5,913 4700 min for TCAC IELF no elev co/out taxes
236,529
Commercial ExpensesEopenses
$ pet
0
Net Operating Income
348223
Peserves
$250 00/unit
10.009
Services
$500/unit
20 000
Other Annual Cost
0
Sloe Mooit000q Fees
0.000% 0 erioir000r per unit moni[orin qfee
5,000
Soft Loan Payments
0.420%
0
Net Income Available for Debt Service
313,223
Loan Sizing
Loan Type:
Private
Tranche A
Loan Amount
3,310.000
Interest
7.64%
Term
17
Amortization
35
Debt Service Coverage
1.15
Monthly Payment
22549
Annual Payment
271,791
Cash Flow After D/S
41.432
Max Loan Amount
0
RA Contract
Annual
Rent
Units
Overhan
$ 1,865
2.00
$ 28,320
$ 1865
2.00
$ 32,952
$ 2395
1.00
$ 19,092
$ 2 395
1.00
$ 22260
$ 3 227
1.00
$ 27,768
$ 3227
1.00
$ 31,788
RA Total
8
162,180
Docusign Envelope ID: 5F5BC0BC-A6BE-424A-96A4-DEFC05DB841B
Resolution No. 2025-019 Page 22
Cash Flow