Successfully Financing Mixed Use Development and Place Making InfrastructureSeptember 26, 2011NHC

Kimberly McKay, Executive Vice PresidentBRIDGE Housing Corporation

Overview: Affordable Housing

Challenges

• Market Has No Incentive to Create

• High Construction Costs

• Land Cost/Availability

• Community Opposition

• Public Benefit Add-Ons

• Complicated Financing Structures

• Need for Gap Financing

One Church Street

One Church Street

Transit-Oriented Development

• First Residential Development on BART Property

One Church Street

One Church Street• 93-Units of Multifamily Affordable Apartments: One-

Bedroom: 30, Two-Bedroom: 35, Three-Bedroom: 28

• Directly Adjacent to Public Transportation

• On-site Child Care

• Community Room

• Computer Learning Center

• Ground-Level Retail Shop

• Significant Community Involvement throughout the Development Process

One Church Street

One Church Street

Financing Source Amount Financing Use Amount

HOPWA Loan $ 1,781,581 Acquisition $ 6,394,344

HOME Loan $ 7,772,302 Construction Costs $15,850,000

Tax Exempt BofA Loans $ 8,269,313 Contingency $ -

Tax Credit Investor Equity $ 7,894,889 Soft Costs $ 986,107

Developer Equity & Loan $ 300,000 Other Costs $ 3,049,298

AHP Grant $ 777,000 Administrative Fee $ 340,000

MTC Grant $ 424,664 Developer Fee $ 600,000

Total Sources $27,219,749 Total Costs $27,219,749

Irvington Village

Irvington Village

Pension Fund Investment Rezone Due to State Fair Share

Requirements Inclusionary Zoning City Funded NIMBY Issues State GO Bond Funding Mixed Income Master Plan/Joint Planning

Effort

Irvington Village

Irvington Village

Mission Walk

Mission Walk

330 & 335 Berry Street

CALTRAIN

Mission Walk

• 131 below market rate condominiums (includes 14 townhomes) on two sites (1.32 acres combined)

• Part of 2,900 units (655 affordable) to be developed in Mission Bay Redevelopment Area

• 1 – 3 Bedrooms; 606 – 1300 SF. Average Price of $235,906

• 114 parking spaces (incl. one car share space)

• SFRA contributed land and $35 million in construction financing that will convert to homeowner loans

• LEED certified

• Approximately $63 million total development costs

Mission Walk

Large Scale Redevelopment – Intense Planning Process/Negotiation with Land Owner

Predesignation of land uses Local Agency Selection of Developer Local Agency Financial Participation State Financial Participation Foundation Participation – Second

mortgage program

Mission Walk: Sources and Uses of Funds

Sources Permanent Per Unit (131)

SFRA Funds $35,136,117 $268,215

BEGIN (HCD) $3,930,000 $30,000

BRIDGE (Foundation funds) $1,637,500 $12,500

Sales Proceeds $22,774,261 $173,849

Total Sources $63,477,878 $484,564

Uses Permanent Per Unit (131)

Land & Acquisition $0 $0

Construction $51,482,470 $392,996

Indirect & Financing $9,303,908 $71,022

Contingency & Reserves $1,151,500 $8,790

Developer & Admin Fee $1,650,000 $12,595

Total Uses $63,477,878 $484,564

*Construction cost savings of $2MM or more will be returned to the SFRA at the end of the project.

Mission Walk

North Beach Place

North Beach Place

Underutilized Housing Authority Land

Local Monies

Partnership• For-Profits• Non-Profits• Housing Authority• Redevelopment Agency• Mayor’s Office of Housing

North Beach Place

North Beach Place

North Beach: Sources and Uses

Total Project Public Housing MOH Units Commercial

SOURCES OF FUNDS

Tax Credit Equity 48,005,000 37,344,748 10,660,252 0

Residential Mortgage 13,292,515 4,548,848 8,743,667 0

Section 8 Mortgage 6,339,453 4,823,991 1,515,462 0

HOPE VI Loan 13,861,721 13,861,721 0 0

City of San Francisco MOH Loan 8,449,366 0 8,449,366 0

AHP Loan 1,000,000 671,554 328,446 0

Reimbursements 250,000 250,000 0

GP Capital 100 100 0

Commercial Loan 4,335,000 0 0 4,335,000

Additional HOPE VI Grant 3,020,000 3,020,000 0 0

Total Sources of Funds 98,553,155 64,270,862 29,947,293 4,335,000

North Beach: Sources and Uses

Total Project Public Housing MOH Units Commercial

USES OF FUNDS

Prepaid Land Lease 3,274,138 2,198,761 1,075,377 0

Demolition 2,520,000 2,520,000 0 0

Construction & Site Work 69,149,844 44,954,554 21,986,507 2,208,783

Architecture & Engineering 5,357,937 3,393,397 1,659,652 304,888

Furnishings & Equipment 1,401,968 941,498 460,470 0

Municipal Fees & Permits 923,410 597,871 292,408 33,131

Construction Loan Interest & Fees 5,667,507 3,593,774 1,757,653 316,080

Permanent Loan Fees & Costs 629,789 354,640 173,449 101,700

Taxes, Insurance, Escrow 1,533,422 954,571 466,865 111,986

Legal, Misc 498,157 302,305 147,852 48,000

Marketing and Lease Up 1,279,171 629,153 307,708 342,310

ACC Initial Operating Period Deficit 185,832 185,832 0 0

Reserves 2,197,923 1,354,085 743,686 100,152

Syndication and TCAC Costs 423,867 284,650 139,217 0

Construction Management 682,220 458,148 224,072 0

Developer Administration & Fees 2,827,970 1,547,625 512,375 767,970

Total Uses of Funds 98,553,155 64,270,862 29,947,293 4,335,000

MacArthur Transit Village

Project Summary:

• 7.76 acres

• 516 Market Rate Homes

• 108 Affordable Homes

• 42,500 sf Commercial/ Retail

• 5,000 sf Child Care Facility

• 400+ stall parking garage

MacArthur BART Transit Village

MacArthur BART Transit Village

Market Rate + Retail

Affordable Garage Infrastructure

SourcesConstruction Loan $169,371,000 $0 $0 $0Permanent Mortgage $0 $1,285,000 $0 $0Investor Equity $59,990,000 $18,098,000 $6,531,000 $0

City RDA $8,140,000 $17,178,000 $0 $10,500,000 Proposition 1C $0 $4,014,000 $18,418,000 $14,849,000 Federal Funds $0 $135,000 $0 $1,313,000

Total Sources $237,501,000 $40,710,000 $24,949,000 $26,662,000

Uses Acquisition $20,440,000 $1,520,000 $4,700,000 $10,500,000

Construction $140,953,000 $30,860,000 $16,992,000 $13,075,000Indirects $37,610,000 $3,740,000 $987,000 $1,099,000Finance $17,104,000 $2,500,000 $0 $0Contingency $12,707,000 $490,000 $1,500,000 $1,352,000Organizational $8,687,000 $1,600,000 $770,000 $636,000

Total Uses $237,501,000 $40,710,000 $24,949,000 $26,662,000

MacArthur BART Transit Village

MacArthur BART Transit Village

COMM 22

COMM 22

Partnering with two local nonprofits

First large-scale, mixed-use, transit-oriented development for BRIDGE in So Cal

Redevelopment of school district maintenance facility; vacant for 20 years

Multiphased project:• Family Rental - 130 units + retail• Senior Rental - 70 units + daycare• Live/work lofts + retail - 38 units + retail• For-sale rowhomes - 17 units

COMM 22

COMM 22: Sources and Uses

COMM 22