Transit-Oriented Development: A Public / Private Effort May 19, 2011 NALHFA Cynthia A. Parker, President & CEO BRIDGE 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 to Produce at Scale

Transit-Oriented Development: Public/Private Opportunities  State of California and Redevelopment Agencies  Public and Private Developers  Surplus Land Disposition/Redevelopment Opportunities  Financial Resources Pass Through Federal Funds RDA Tax Incentives and Other Resources ($1billion annually) State TOD Funds (Prop 1C Funds

Transit-Oriented Development: Local Jurisdictions  Proper Zoning & General Plan Designations  Inclusionary Ordinances  Funding Resources  Encourage Partnerships (for profit, non profit)  Surplus Land

Transit-Oriented Development: Other Players  Public Agencies Financing: MTC, Housing Authorities, etc Surplus Land/Intensified Uses: School Districts, Transit Agencies, County Agencies  Community Based Organizations Churches Non-Profit Agencies

Transit-Oriented Development: Financial Markets  Public Finance Options  Banking  Equity Investment: Socially Responsible Screen  Foundations PRI’s Grants Research and Development

Transit-Oriented Development: First Take  One Church Street

Development Approach  Transit-Oriented Development First Residential Development on BART Property with Strobridge Court 25 Transit-Oriented Developments Linked to BART, Commuter Rail, Light Rail, and Local Transit Systems Regularly Awarded Grants to Incorporate Transit Linkages into New Developments

Transit-Oriented Development: Case Study  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

Transit-Oriented Development: Case Study  One Church Street

Transit-Oriented Development: Case Study  One Church Street Financing SourceAmountFinancing UseAmount HOPWA Loan $ 1,781,581Acquisition $ 6,394,344 HOME Loan $ 7,772,302Construction Costs $15,850,000 Tax Exempt BofA Loans $ 8,269,313Contingency $ - Tax Credit Investor Equity $ 7,894,889Soft Costs $ 986,107 Developer Equity & Loan $ 300,000Other Costs $ 3,049,298 AHP Grant $ 777,000Administrative Fee $ 340,000 MTC Grant $ 424,664Developer Fee $ 600,000 Total Sources $27,219,749Total Costs $27,219,749

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

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, parking spaces (incl. one car share space) SFRA contributed land and $35 million in construction financing that will convert to homeowner loans Will be 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 SourcesPermanentPer Unit (131) SFRA Funds$35,136,117$268,215 BEGIN (HCD)$3,930,000$30,000 BRIDGE MAP$1,637,500$12,500 Sales Proceeds$22,774,261$173,849 Total Sources$63,477,878$484,564 UsesPermanentPer Unit (131) Land & Acquisition$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

 Underutilized Housing Authority Land  Local Monies  Partnership For-Profits Non-Profits Housing Authority Redevelopment Agency Mayor’s Office of Housing Service Providers

North Beach Place

North Beach: Sources and Uses Total ProjectPublic HousingMOH UnitsCommercial SOURCES OF FUNDS Tax Credit Equity48,005,00037,344,74810,660,2520 Residential Mortgage13,292,5154,548,8488,743,6670 Section 8 Mortgage6,339,4534,823,9911,515,4620 HOPE VI Loan13,861, City of San Francisco MOH Loan8,449, AHP Loan1,000,000671,554328,4460 Reimbursements250,000 0 GP Capital100 0 Commercial Loan4,335,00000 Additional HOPE VI Grant3,020, Total Sources of Funds98,553,15564,270,86229,947,2934,335,000

North Beach: Sources and Uses Total ProjectPublic HousingMOH UnitsCommercial USES OF FUNDS Prepaid Land Lease3,274,1382,198,7611,075,3770 Demolition2,520, Construction & Site Work69,149,84444,954,55421,986,5072,208,783 Architecture & Engineering5,357,9373,393,3971,659,652304,888 Furnishings & Equipment1,401,968941,498460,4700 Municipal Fees & Permits923,410597,871292,40833,131 Construction Loan Interest & Fees5,667,5073,593,7741,757,653316,080 Permanent Loan Fees & Costs629,789354,640173,449101,700 Taxes, Insurance, Escrow1,533,422954,571466,865111,986 Legal, Misc498,157302,305147,85248,000 Marketing and Lease Up1,279,171629,153307,708342,310 ACC Initial Operating Period Deficit185, Reserves2,197,9231,354,085743,686100,152 Syndication and TCAC Costs423,867284,650139,2170 Construction Management682,220458,148224,0720 Developer Administration & Fees2,827,9701,547,625512,375767,970 Total Uses of Funds98,553,15564,270,86229,947,2934,335,000

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

COMM 22

 Partnering with two local nonprofits  First large-scale, mixed-use, transit-oriented development in So Cal  Redevelopment of school district maintenance facility; vacant for 20 years  Multiphased project: Family Rental 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