Transit-Oriented Development: A Public/Private EffortMay 19, 2011NALHFA

Cynthia A. Parker, President & CEOBRIDGE 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 StreetFinancing 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• 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 FundsSources Permanent Per Unit (131)

SFRA Funds $35,136,117 $268,215BEGIN (HCD) $3,930,000 $30,000BRIDGE MAP $1,637,500 $12,500Sales Proceeds $22,774,261 $173,849Total Sources $63,477,878 $484,564

Uses Permanent Per Unit (131)

Land & Acquisition $0 $0Construction $51,482,470 $392,996Indirect & Financing $9,303,908 $71,022Contingency & Reserves $1,151,500 $8,790Developer & Admin Fee $1,650,000 $12,595Total 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• Service Providers

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 UsesTotal Project Public Housing MOH Units Commercial

USES OF FUNDSPrepaid Land Lease 3,274,138 2,198,761 1,075,377 0Demolition 2,520,000 2,520,000 0 0Construction & Site Work 69,149,844 44,954,554 21,986,507 2,208,783Architecture & Engineering 5,357,937 3,393,397 1,659,652 304,888Furnishings & Equipment 1,401,968 941,498 460,470 0Municipal Fees & Permits 923,410 597,871 292,408 33,131Construction Loan Interest & Fees 5,667,507 3,593,774 1,757,653 316,080Permanent Loan Fees & Costs 629,789 354,640 173,449 101,700Taxes, Insurance, Escrow 1,533,422 954,571 466,865 111,986Legal, Misc 498,157 302,305 147,852 48,000Marketing and Lease Up 1,279,171 629,153 307,708 342,310ACC Initial Operating Period Deficit 185,832 185,832 0 0Reserves 2,197,923 1,354,085 743,686 100,152Syndication and TCAC Costs 423,867 284,650 139,217 0Construction Management 682,220 458,148 224,072 0Developer 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 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