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HomeMy Public PortalAboutIndian Wells Housing Authority Agenda 10/8/2020The Special Housing Authority Meeting on Thursday, October 8, 2020 at 8:30 a.m. can be viewed live on the City's website by clicking "Council Meetings" button on the homepage or available on zoom/teleconference: Webinar ID 844 6213 6870 or by phone dial 1-669-900-9128. A password will be required to join Zoom meeting, please email CityClerk@indianwells.com or call City Hall at (760) 346-2489 to request password prior to the meeting. For members of the public wishing to submit public comment in connection with the Special Housing Authority meeting: all public comment need to be submitted via email at CityClerk@indianwells.com no later than 5:00 p.m. on Wednesday, October 7, 2020 so the comments may be distributed to Council Members. Any public records, relating to an open session agenda item, that is distributed within 72 hours of the meeting is available for public inspection at City Hall reception, 44-950 Eldorado Drive, Indian Wells during normal business hours. Special Housing Authority Meeting Agenda Thursday, October 8, 2020 8:30 AM VIA VIDEOCONFERENCE Pursuant to California Governor Newsom's Executive Orders N-25-20 issued on March 4, 2020 and N-29-20 issued on March 18,2020, the Special City Council Meeting will be conducted remotely through zoom/teleconference. 1 October 8, 2020Special Housing Authority Meeting Agenda 1. CONVENE THE INDIAN WELLS HOUSING AUTHORITY, AND ROLL CALL CHAIR TY PEABODY VICE CHAIR DANA REED COMMISSIONER RICHARD BALOCCO COMMISSIONER KIMBERLY MUZIK COMMISSIONER TED J. MERTENS COMMISSIONER CLARK MCCARTNEY COMMISSIONER GENEVA BERNS 2. APPROVAL OF THE FINAL AGENDA 3. PUBLIC COMMENTS All persons wishing to address the Housing Authority should fill out a Blue Public Comment Request form in advance and hand it to the Authority Secretary. At the appropriate time, please come forward to the podium and state your name for the record. A three-minute limit is customary. Please note that you may address the Authority on an agenda item at the time it is discussed, but only after being recognized by the Chairman. Under the Brown Act, the Authority should not take action on or discuss matters raised during public comment portion of the agenda which are not listed on the agenda. Commissioners may refer such matters to staff for factual information or to be placed on a subsequent agenda for consideration. Notwithstanding the foregoing, Commissioners and staff may briefly respond to statements made or questions posed during public comment, as long as such responses do not constitute any deliberation of the item. 4. GENERAL BUSINESS Approve Exclusive Negotiating Agreement with Abode Communities for Affordable Housing Development in Indian Wells 223-20A. RECOMMENDED ACTIONS: Housing Authority AUTHORIZES and DIRECTS the Executive Director to execute Exclusive Negotiating Agreement with Adobe Communities for the development of an affordable housing project in the City of Indian Wells. Exclusive Negotiating AgreementAttachments: Page 2 2 October 8, 2020Special Housing Authority Meeting Agenda 5. EXECUTIVE DIRECTOR'S COMMENTS 6. ADJOURNMENT To a regularly scheduled meeting of the Indian Wells Housing Authority to be held at 1:00 p.m. on November 19, 2020 via videoconference. Page 3 3 October 8, 2020Special Housing Authority Meeting Agenda In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (760) 346-2489. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. 128 CFR 35.102.35.104 ADA Title III Affidavit of Posting I, Anna Grandys, certify that on October 2, 2020, I caused to be posted a notice of a Special Housing Authority Meeting to be held on October 8, 2020 at 8:30 a.m. via videoconference. Notices were posted at Indian Wells Civic Center and City's Website [www.cityofindianwells.org] ______________________________ Anna Grandys City Clerk Page 4 4 October 8, 2020 Special Housing Meeting: Received Public Comments General Business #4A John E. Kobara, Indian Wells Resident Dear Ms. Grandys: I live at 45926 Algonquin Circle with my wife Sarah. We are relatively new to IW and have been impressed on how the City communicates with its residents and how you have handled this given the pandemic. Thanks for all you and the team at City Hall does. I have been following how the City has been responding to the crises of homelessness. I appreciate the efforts to mitigate the suffering in our city. I am writing to you to support the City's engagement with Abode Communities. For more than 12 years (through February of this year) I was the COO/EVP of the California Community Foundation (CCF) CCF is one of the largest and oldest foundations in the US. Based in Los Angeles, CCF's focus is on the well-being of LA County. Consequently, CCF has been investing in affordable housing for more than 30 years. More recently, CCF became one of the leading funders of permanent supportive housing to address the homelessness crisis there. CCF's job is to vet and evaluate grantees for its own grantmaking and for the 1700 foundations and funds it manages. Abode Communities has consistently been one of the best, highest performing and well managed non-profit housing agencies in the region. Robin Hughes and her team are extraordinary professionals. It is for these reasons that I congratulate the Council on the selection of Abode and urge them to move forward with their engagement of Abode Communities. Thanks for your consideration and time. Kurt Gaffney, Indian Wells Resident Dear City Clerk and City Council Members: As a resident of Indian Wells there is absolutely no reason or justification for the approximate six acres located on Highway 111, east of Miles Avenue and immediately adjacent to the Mountain View Villas, to develop a 99 affordable multifamily units. The city is not equipped to accommodate the increase in population of that demographic. There are NO PUBLIC SCHOOLS in Indian Wells, no parks, nor does the size of our police force warrant the protection and services for an increase of that many people potentially under the age of 55. The requirement can be met with affordable housing units that are less in number and more consistent with our cities existing housing communities. This proposed development will gradually over time lower the values and demand for the existing real estate in Indian Wells. There is no benefit or necessity for this type of a complex in our city and we do not have the means to service nor provide for it. City of Indian Wells 10/8/2020 44-950 Eldorado Drive, Indian Wells File #:223-20 Item #:A. Indian Wells Housing Authority Staff Report - Community Development October 8, 2020 Approve Exclusive Negotiating Agreement with Abode Communities for Affordable Housing Development in Indian Wells RECOMMENDED ACTIONS: Housing Authority AUTHORIZES and DIRECTS the Executive Director to execute Exclusive Negotiating Agreement with Adobe Communities for the development of an affordable housing project in the City of Indian Wells. BACKGROUND: In compliance with state law, cities throughout California are required to identify and construct affordable housing units in their communities. Indian Wells has constructed two such developments, the Indian Wells and Mountain View Villas. Currently, the Indian Wells Housing Authority is moving forward in the process to select a developer to facilitate the design and future operation of an affordable housing project in the community. Residents and other stakeholders will have ample opportunity to provide comments on any development at future community informational workshops. The City of Indian Wells will be sure to send out information on these community workshops once they are scheduled. DISCUSSION: At the May 21, 2020 Housing Authority Meeting, Staff was given direction to circulate a formal Request for Qualifications (“RFQ”) to non-profit housing developers (“Consultants”) who would be interested in partnering with the Housing Authority (“Authority”) to develop and operate a new affordable housing project within a portion of the Authority’s vacant property along HWY 111 (Attachment 1). The RFQ was officially released for 30-day solicitation period beginning June 1 st and concluded on June 30, 2020. Staff received eight (8) proposals from very well qualified housing consultants, including the following (alphabetical order): City of Indian Wells Printed on 10/2/2020Page 1 of 2 powered by Legistar™5 File #:223-20 Item #:A. ·Abode Communities ·Community Housing Opportunities Corporation ·Coachella Valley Housing Coalition ·EAH Housing ·LINC Housing ·National Community Renaissance (CORE) ·The Michaels Organization ·UHC 4H LLC Each of their proposals were thoroughly reviewed by a select group of staff members, including the city’s housing consultant, Kyser Marson. The top 3 Consultants were then chosen to move forward through an interview process with a subcommittee of the Authority. After completing the interview process, the subcommittee unanimously selected Abode Communities as the top-ranked Consultant for partnering with the Authority in developing a future affordable housing project within Indian Wells. Abode has been in business for over 50 years and has invested more than $645 million in private and public funds to produce 45+ developments that include nearly 3,000 units. They proclaim to be the leading provider of LEED certified units in California. They have extensive experience in obtaining entitlements, including zone changes, general plan amendments, CUPs, and land subdivision. They propose strategic community engagement, with a coordinated and iterative design processes. The team of Abode, MSA, and Latham recently secured approval for a 152-unit project, using SB 35 streamlining, in the City of Coachella. They have extensive experience in obtaining Tax Credits, Multifamily Bonds, HCD and HUD assistance. Housing Authority staff and consultants recommended the Authority authorize the Executive Director to execute an Exclusive Negotiating Agreement (“ENA”) with Abode Communities (Attachment 1). The ENA shall be for a period of 180 days, for the purpose of collaborating on the project design and entitlements, and ultimately negotiating the terms of a Disposition and Development Agreement to facilitate development and operation of the future affordable housing project. ATTACHMENT: 1.Exclusive Negotiating Agreement City of Indian Wells Printed on 10/2/2020Page 2 of 2 powered by Legistar™6 82573.00023\32633648.1 EXCLUSIVE NEGOTIATION AGREEMENT THIS EXCLUSIVE NEGOTIATION AGREEMENT (the "Agreement") is entered into this day of October, 2020, by and between the INDIAN WELLS HOUSING AUTHORITY, a public body, corporate and politic, in its capacity as Housing Successor to the Indian Wells Redevelopment Agency (the "Housing Authority"), and ABODE COMMUNITIES, a California non-profit public benefit corporation, ("Developer"), on the terms and provisions set forth below. Housing Authority and Developer are sometime referred to collectively herein as the “Parties.” RECITALS A. The Housing Authority is the owner of that certain real property consisting of approximately six (6) acres located on Highway 111, east of Miles Avenue and immediately adjacent to the Mountain View Villas age restricted affordable housing development (the “Property”). B. On June 1, 2020, the Housing Authority released a thirty (30) day Request for Qualifications (the “RFQ”) seeking statements of qualifications from affordable housing developers interested in acquiring the Property from the Housing Authority for the purpose of developing affordable housing. C. The Housing Authority received eight (8) statements of qualifications from well qualified affordable housing developers expressing interest in the proposed development opportunity, which statements of qualifications were reviewed by Housing Authority staff and consultants. D. After review of the proposed statements of qualifications and interview process, Housing Authority staff and consultants recommended that the Housing Authority engage in exclusive negotiations with Developer for the disposition of the Property for the purpose of developing affordable housing, and the Parties desire to enter into this Agreement to establish the terms of such exclusive negotiations. AGREEMENT NOW, THEREFORE, THE HOUSING AUTHORITY AND DEVELOPER HEREBY AGREE AS FOLLOWS: 100.NEGOTIATIONS 101.Good Faith Negotiations The Housing Authority and Developer, acknowledging that time is of the essence, agree for the Negotiation Period set forth below to negotiate diligently and in good faith to prepare a Disposition and Development Agreement (the "DDA") to be considered for execution between the Housing Authority and the Developer, in the manner set forth herein, establishing the terms pursuant to which the Housing Authority will ground lease the Property to Developer with affordable covenants for a period of 60-years. The Property is shown on the "Map of the Property," attached hereto as Exhibit A and incorporated herein by reference. The Housing Attachment #1 7 2 82573.00023\32633648.1 Authority agrees, for the period set forth below, not to negotiate with any other person or entity regarding the conveyance of the Property or any portion thereof. The Property is currently undeveloped, and the Housing Authority desires that affordable housing be developed on the site with 99 affordable multifamily units and one (1) managers unit, in a configuration that provides for not more than two-story buildings. The Housing Authority and Developer desire to engage in negotiations for a mutually agreeable disposition and development agreement that will provide for the ground lease of the Property to Developer for development in accordance with the Housing Authority’s desired uses for the Property. During the Negotiation Period, the Housing Authority shall provide the Developer (and its authorized employees, contractors, consultants, representatives and agents) with reasonable access to the Property as necessary for the Developer to evaluate the Property for development as an affordable housing project subject to reasonable rules and requirements as may be imposed by the Housing Authority, including without limitation, inspections, investigations, tests and studies (including, without limitation, investigations with regard to zoning, building codes and other governmental regulations, architectural inspections, engineering tests, economic feasibility studies and soils, seismic and geologic reports, environmental testing and investigations to determine, among other things, if all needed entitlements can be procured in an acceptable form to develop and construct the proposed housing project 102.Duration of this Agreement The duration of this Agreement (the "Negotiation Period") shall be 180-days from the date of execution of this Agreement by the Housing Authority. If upon expiration of the Negotiation Period, Developer has not signed and submitted a DDA to the Housing Authority, then this Agreement shall automatically terminate unless this Agreement has been mutually extended by the Housing Authority and Developer. If a DDA is so signed and submitted by Developer to the Housing Authority on or before expiration of the Negotiation Period, then this Agreement and the Negotiation Period herein shall be extended without further action by the Housing Authority for forty-five (45) days from the date of such submittal during which time the Housing Authority shall take all steps legally necessary to (1) consider the terms and conditions of the proposed DDA, (2) if appropriate, take the actions necessary to authorize the Housing Authority to enter into the DDA, including but not limited to completion of compliance with the California Environmental Quality Act, and (3) execute the DDA. If the Housing Authority has not executed the DDA by such 45th day or any extension of such period, then this Agreement shall automatically terminate, unless the 45-day period has been mutually extended by the Housing Authority and Developer. The Housing Authority agrees to consider reasonable requests for extensions of time and shall, upon request, notify Developer in writing of the reasons for any decision not to execute the DDA. 200.CONVEYANCE OF THE PROPERTY; AUTHORITY ASSISTANCE The ground lease payments and/or other consideration to be paid by Developer for the Property under the DDA, and any additional assistance to be provided by the Housing Authority 8 3 82573.00023\32633648.1 will be established by the Housing Authority after negotiation with Developer. Such ground lease payments and/or other consideration and additional assistance will be based upon such factors as the fair market value of the property, market conditions, affordability restrictions on the Property, Developer’s efforts to develop affordable housing in furtherance of the Housing Authority’s statutory obligations and satisfaction of the City of Indian Wells’ fair share of regional housing needs, condition of the improvements, risks of the Housing Authority, and risks of Developer, and will be subject to approval by the Housing Authority Board after a public hearing as required by law. Housing Authority and Developer further acknowledge that the negotiations between Housing Authority and Developer for the conveyance of the Property shall initially be based on the pro forma submitted by Developer on 8/21/2020 as part of its Statement of Qualifications, which pro forma is attached hereto and incorporated herein as Exhibit B. The Parties expect and intend that the DDA will also include certain other regulatory and loan documents that will be entered into and, as applicable, recorded upon conveyance of the Property, including, but not limited to, a Ground Lease conveying a leasehold interest in the Property to Developer, a Promissory Note and Deed of Trust for any loan made by the Housing Authority from the Low and Moderate Income Housing Asset Fund, and a Regulatory Agreement restricting the affordability of the multifamily units to be developed on the Property. 300. DEVELOPER 301. Nature of Developer Developer is a California non-profit public benefit corporation. 302. Office of Developer The principal office of the Developer is 1149 S. Hill Street, Suite 700, Los Angeles CA 90015. 303. Principal Representatives of Developer The principal representatives of Developer for purposes of negotiating the Development Proposal and DDA are Robin Hughes and Lara Regus. 304. Full Disclosure Developer has made full disclosure to the Housing Authority of its officers key managerial employees and all other material information concerning Developer. Notwithstanding the foregoing, Developer reserves the right at its discretion to join and associate with other entities in joint ventures, partnerships or otherwise for the purpose of developing the Property, provided that Developer retains management and control of such entities and remains fully responsible to the Housing Authority hereunder. 9 4 82573.00023\32633648.1 400. DEVELOPER'S FINANCIAL CAPACITY 401. Financial Ability Prior to execution of a DDA, the Developer shall submit to the Housing Authority satisfactory evidence of its ability to finance and complete the ground lease and development of the Property and fulfill the operation of the anticipated improvements to the Property as set forth in the DDA. Such evidence may include a financing plan that is contingent on securing certain public and private financing, including but not limited to an allocation of low income housing tax credits. 402. Full Disclosure Developer will be required to make and maintain full disclosure to the Housing Authority of its methods of financing to be used in the acquisition of the Property. Notwithstanding the foregoing, all proprietary information regarding the Developer’s business practice which may be provided to the Housing Authority shall remain confidential to the extent permissible by law including, without limitation, the California Public Records Act. 500. HOUSING AUTHORITY’S RESPONSIBILITIES 501. Environmental Documents The Housing Authority shall be responsible for conducting any review of the proposed development of the Property that it deems necessary and appropriate under the California Environmental Quality Act. Any costs, fees and charges associated with the requirements of the California Environmental Quality Act shall be paid by Developer, unless otherwise agreed by the Housing Authority, provided, however, the Housing Authority shall not incur any material cost for which it shall seek reimbursement without providing prior notice thereof to the Developer. The staff of the Housing Authority shall be available to meet with Developer to discuss the development of the Property, so that Developer shall have sufficient input to prepare its full proposal for the use the development of the Property. 502. Public Hearing A DDA resulting from the negotiations hereunder shall become effective only after and if the DDA has been considered and approved by the Housing Authority Board at a public hearing called for such purpose. 600. REAL ESTATE COMMISSIONS The Housing Authority shall not be liable for any real estate commissions or brokerage fees which may arise herefrom. The Housing Authority represents that it has engaged no broker, agent or finder in connection with this transaction, and Developer agrees to hold the Housing Authority harmless from any claim by any broker, agent or finder retained by the Developer. 10 5 82573.00023\32633648.1 700. LIMITATIONS OF THIS AGREEMENT By its execution of this Agreement, the Housing Authority is not committing itself to or agreeing to undertake: (1) disposition of land or a leasehold interest to Developer; or (2) any other acts or activities requiring the subsequent independent exercise of discretion by the Housing Authority, the City of Indian Wells or any agency or department thereof. This Agreement does not constitute a development agreement, disposition of property or exercise of control over property by the Housing Authority. Execution of this Agreement by the Housing Authority is merely an agreement to enter into a period of exclusive negotiations according to the terms hereof, reserving final discretion and approval by the Housing Authority as to any Purchase and Sale Agreement and all proceedings and decisions in connection therewith. This Agreement may be executed in any number of counterparts, which shall, collectively and separately, constitute one agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of California. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth above. October _____, 2020 INDIAN WELLS HOUSING AUTHORITY, a public body, corporate and politic By Executive Director “HOUSING AUTHORITY” October __, 2020 ABODE COMMUNITIES, a California non- profit public benefit corporation By: Its: “DEVELOPER” APPROVED AS TO FORM: By Housing Authority Counsel 11 1316923v1 33786/0013 82573.00023\32633648.1 EXHIBIT A MAP OF THE PROPERTY 12 EX H I B I T " A " 13 1316923v1 33786/0013 82573.00023\32633648.1 EXHIBIT B DEVELOPER PRO FORMA 14 In d i a n W e l l s A f f o r d a b l e H o u s i n g P r o j e c t ( R F Q N o . H A 2 0 2 0 - 0 1 ) Ab o d e C o m m u n i t i e s Su m m a r y o f S o u r c e s & U s e s a n d U n i t M i x PR O J E C T S O U R C E S & U S E S KE Y F I N A N C I N G A S S U M P T I O N S Pr o j e c t U s e s To t a l Pe r U n i t Co n s t r u c t i o n L o a n R a t e 4. 5 0 % A c q u i s i t i o n - G r o u n d L e a s e V a l u e 3, 0 0 0 , 0 0 0 30 , 0 0 0 Pe r m a n e n t L o a n R a t e 5. 0 0 % Ha r d C o s t s 33 , 1 9 1 , 4 0 0 33 1 , 9 1 4 P e r m a n e n t L o a n T e r m ( y r s ) 35 A r c h i t e c t u r e & E n g i n e e r i n g 2, 0 5 5 , 9 8 4 20 , 5 6 0 4% T a x C r e d i t R a t e 3. 1 5 % Fi n a n c i n g C o s t s 2, 5 7 4 , 3 2 4 25 , 7 4 3 Ta x C r e d i t P r i c e $0 . 9 0 Ot h e r S o f t C o s t s 1, 5 7 7 , 1 1 8 15 , 7 7 1 De v e l o p e r C o s t s 6, 6 8 4 , 6 9 7 66 , 8 4 7 TO T A L 49 , 0 8 3 , 5 2 2 49 0 , 8 3 5 Co n s t r u c t i o n S o u r c e s To t a l Pe r U n i t UN I T M I X & A F F O R D A B I L I T Y Co n s t r u c t i o n L o a n 32 , 4 8 6 , 5 9 1 32 4 , 8 6 6 Gr o u n d L e a s e N o t e 3, 0 0 0 , 0 0 0 30 , 0 0 0 Un i t S i z e AM I No . o f U n i t s Ci t y o f I n d i a n W e l l s H o u s i n g A u t h o r i t y L M I H A F 6, 0 7 3 , 1 3 4 60 , 7 3 1 30 % * 12 FH L B A f f o r d a b l e H o u s i n g P r o g r a m 1, 2 5 0 , 0 0 0 12 , 5 0 0 50 % 13 Ta x C r e d i t E q u i t y 1, 2 5 5 , 3 8 2 12 , 5 5 4 60 % 16 GP E q u i t y 10 0 1 80 % 7 De f e r r e d C o s t s 5, 0 1 8 , 3 1 5 50 , 1 8 3 30 % * 12 TO T A L 49 , 0 8 3 , 5 2 2 49 0 , 8 3 5 50 % 3 60 % 6 Pe r m a n e n t S o u r c e s To t a l Pe r U n i t 80 % 2 Pe r m a n e n t L o a n 5, 4 5 9 , 5 0 0 54 , 5 9 5 Ma n a g e r ' s U n i t 1 Gr o u n d L e a s e N o t e 3, 0 0 0 , 0 0 0 30 , 0 0 0 30 % * 6 Ci t y o f I n d i a n W e l l s H o u s i n g A u t h o r i t y L M I H A F 6, 0 7 3 , 1 3 4 60 , 7 3 1 50 % 4 Ca l H C D M u l t i f a m i l y H o u s i n g P r o g r a m 17 , 5 0 1 , 2 4 6 17 5 , 0 1 2 60 % 14 FH L B A f f o r d a b l e H o u s i n g P r o g r a m 1, 2 5 0 , 0 0 0 12 , 5 0 0 80 % 4 Ta x C r e d i t E q u i t y 12 , 5 5 3 , 8 2 2 12 5 , 5 3 8 GP E q u i t y / D e f e r r e d D e v e l o p e r F e e 3, 2 4 5 , 8 2 1 32 , 4 5 8 TO T A L 49 , 0 8 3 , 5 2 2 49 0 , 8 3 5 1B R 2B R 3B R *3 0 % A M I u n i t s s u b s i d i z e d w i t h P r o j e c t B a s e d S e c t i o n 8 V o u c h e r s f r o m th e H A R I V C O 10 0 To t a l U n i t s 48 24 28 15 In d i a n W e l l s A f f o r d a b l e H o u s i n g P r o j e c t ( R F Q N o . H A 2 0 2 0 - 0 1 ) Ab o d e C o m m u n i t i e s It e m To t a l Co m m e n t s & A s s u m p t i o n s AC Q U I S I T I O N L a n d V a l u e $3 , 0 0 0 , 0 0 0 Ba s e d o n t w o a f f o r d a b l e h o u s i n g G r o u n d L e a s e t r a n s a c t i o n s i n t h e C o a c h e l l a V a l l e y CO N S T R U C T I O N S i t e I m p r o v e m e n t s $2 , 7 6 3 , 6 0 0 S t r u c t u r e s $2 3 , 2 4 8 , 4 6 9 O v e r h e a d & P r o f i t $4 , 1 6 1 , 9 3 1 In c l u d e s O H & P , G e n e r a l R e q s , I n s u r a n c e , a n d B o n d TO T A L C O N S T R U C T I O N C O S T S $3 0 , 1 7 4 , 0 0 0 CO N S T R U C T I O N C O N T I N G E N C Y $3 , 0 1 7 , 4 0 0 10 % o f T o t a l C o n s t r u c t i o n C o s t s AR C H I T E C T U R E & D E S I G N A r c h i t e c t u r e $1 , 8 6 0 , 5 4 9 E n g i n e e r i n g $1 9 5 , 4 3 5 P e r m i t t i n g & F e e s $7 2 2 , 1 2 8 In c l u d e s d e v e l o p m e n t i m p a c t f e e s a n d p e r m i t t i n g f e e s CO N S T R U C T I O N F I N A N C I N G P r e d e v e l o p m e n t I n t e r e s t & E x p e n s e s $6 8 , 0 5 8 As s u m e s 2 4 m o n t h p r e d e v e l o p m e n t t e r m C o n s t r u c t i o n L o a n I n t e r e s t $1 , 7 5 4 , 2 7 6 As s u m e s 2 4 m o n t h c o n s t r u c t i o n t e r m F e e s , T r a n s a c t i o n C o s t s & B o n d E x p e n s e s $3 9 4 , 8 2 0 I n s u r a n c e $1 5 0 , 0 0 0 Co u r s e o f c o n s t r u c t i o n i n s u r a n c e C l o s i n g C o s t s $8 3 , 6 2 5 PE R M A N E N T F I N A N C I N G F e e s , T r a n s a c t i o n & C l o s i n g C o s t s $6 6 , 5 9 5 SY N D I C A T I O N T C A C F e e s $5 6 , 9 5 0 C o n s u l t a n t , A d m i n i s t r a t i o n & A u d i t $9 7 , 5 0 0 LE G A L F E E S $1 6 5 , 2 0 0 SO F T C O S T S R e p o r t s $3 2 , 0 0 0 E n t i t l e m e n t s C o n s u l t i n g $1 5 0 , 0 0 0 M a r k e t i n g $2 9 , 4 4 8 C o n s t r u c t i o n M a n a g e m e n t & M o n i t o r i n g $2 4 2 , 0 0 0 F u r n i s h i n g s $6 0 , 0 0 0 S o f t C o s t C o n t i n g e n c y $2 4 3 , 8 1 6 RE S E R V E S O p e r a t i n g R e s e r v e $2 4 6 , 0 3 5 R e n t a l S u b s i d y T r a n s i t i o n R e s e r v e $4 6 6 , 9 5 5 DE V E L O P E R E X P E N S E S A d m i n i s t r a t i o n & A c c o u n t i n g $3 0 , 3 0 0 D e v e l o p e r F e e $5 , 7 7 6 , 4 3 3 To t a l p a i d D e v e l o p e r F e e i s a p p r o x $ 3 . 2 M M w i t h b a l a n c e c o n t r i b u t e d b a c k i n t o t h e p r o j e c t a s G P E q u i t y TO T A L D E V E L O P M E N T C O S T S $4 9 , 0 8 3 , 5 2 2 De t a i l e d P r o j e c t B u d g e t 16 In d i a n W e l l s A f f o r d a b l e H o u s i n g P r o j e c t ( R F Q N o . H A 2 0 2 0 - 0 1 ) 43 8 , 0 4 2 Ab o d e C o m m u n i t i e s Ca s h F l o w , Y e a r s 1 - 1 5 RE S I D E N T I A L C A S H F L O W Fa c t o r Tr e n d 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Gr o s s R e s i d e n t i a l I n c o m e 2. 5 0 % 94 4 , 1 7 2 96 7 , 7 7 6 99 1 , 9 7 1 1, 0 1 6 , 7 7 0 1, 0 4 2 , 1 8 9 1, 0 6 8 , 2 4 4 1, 0 9 4 , 9 5 0 1, 1 2 2 , 3 2 4 1, 1 5 0 , 3 8 2 1, 1 7 9 , 1 4 1 1, 2 0 8 , 6 2 0 1, 2 3 8 , 8 3 5 1, 2 6 9 , 8 0 6 1, 3 0 1 , 5 5 2 1, 3 3 4 , 0 9 0 Mi s c e l l a n e o u s I n c o m e ( l a u n d r y ) $4 2 . 0 0 PU P A 2. 5 0 % 4, 2 0 0 4, 3 0 5 4, 4 1 3 4, 5 2 3 4, 6 3 6 4, 7 5 2 4, 8 7 1 4, 9 9 2 5, 1 1 7 5, 2 4 5 5, 3 7 6 5, 5 1 1 5, 6 4 9 5, 7 9 0 5, 9 3 4 Va c a n c y R a t e 5. 0 0 % (4 7 , 4 1 9 ) (4 8 , 6 0 4 ) (4 9 , 8 1 9 ) (5 1 , 0 6 5 ) (5 2 , 3 4 1 ) (5 3 , 6 5 0 ) (5 4 , 9 9 1 ) (5 6 , 3 6 6 ) (5 7 , 7 7 5 ) (5 9 , 2 1 9 ) (6 0 , 7 0 0 ) (6 2 , 2 1 7 ) (6 3 , 7 7 3 ) (6 5 , 3 6 7 ) (6 7 , 0 0 1 ) Re n t a l / O p e r a t i n g S u b s i d y Y 2. 5 0 % 32 2 , 4 1 6 33 0 , 4 7 6 33 8 , 7 3 8 34 7 , 2 0 7 35 5 , 8 8 7 36 4 , 7 8 4 37 3 , 9 0 4 38 3 , 2 5 1 39 2 , 8 3 3 40 2 , 6 5 3 41 2 , 7 2 0 42 3 , 0 3 8 43 3 , 6 1 4 44 4 , 4 5 4 45 5 , 5 6 5 Va c a n c y R a t e ( s u b s i d i z e d u n i t s ) 5. 0 0 % (1 6 , 1 2 1 ) (1 6 , 5 2 4 ) (1 6 , 9 3 7 ) (1 7 , 3 6 0 ) (1 7 , 7 9 4 ) (1 8 , 2 3 9 ) (1 8 , 6 9 5 ) (1 9 , 1 6 3 ) (1 9 , 6 4 2 ) (2 0 , 1 3 3 ) (2 0 , 6 3 6 ) (2 1 , 1 5 2 ) (2 1 , 6 8 1 ) (2 2 , 2 2 3 ) (2 2 , 7 7 8 ) EF F E C T I V E G R O S S I N C O M E 1, 2 0 7 , 2 4 9 1, 2 3 7 , 4 3 0 1, 2 6 8 , 3 6 6 1, 3 0 0 , 0 7 5 1, 3 3 2 , 5 7 7 1, 3 6 5 , 8 9 1 1, 4 0 0 , 0 3 8 1, 4 3 5 , 0 3 9 1, 4 7 0 , 9 1 5 1, 5 0 7 , 6 8 8 1, 5 4 5 , 3 8 0 1, 5 8 4 , 0 1 5 1, 6 2 3 , 6 1 5 1, 6 6 4 , 2 0 6 1, 7 0 5 , 8 1 1 Re s i d e n t i a l O p e r a t i n g E x p e n s e s $6 , 5 3 5 PU P A 3. 5 0 % (6 5 3 , 5 0 0 ) (6 7 6 , 3 7 3 ) (7 0 0 , 0 4 6 ) (7 2 4 , 5 4 7 ) (7 4 9 , 9 0 6 ) (7 7 6 , 1 5 3 ) (8 0 3 , 3 1 8 ) (8 3 1 , 4 3 4 ) (8 6 0 , 5 3 5 ) (8 9 0 , 6 5 3 ) (9 2 1 , 8 2 6 ) (9 5 4 , 0 9 0 ) (9 8 7 , 4 8 3 ) (1 , 0 2 2 , 0 4 5 ) (1 , 0 5 7 , 8 1 7 ) Re s i d e n t S e r v i c e s - B e y o n d H o m e s $5 0 0 3. 5 0 % (5 0 , 0 0 0 ) (5 1 , 7 5 0 ) (5 3 , 5 6 1 ) (5 5 , 4 3 6 ) (5 7 , 3 7 6 ) (5 9 , 3 8 4 ) (6 1 , 4 6 3 ) (6 3 , 6 1 4 ) (6 5 , 8 4 0 ) (6 8 , 1 4 5 ) (7 0 , 5 3 0 ) (7 2 , 9 9 8 ) (7 5 , 5 5 3 ) (7 8 , 1 9 8 ) (8 0 , 9 3 5 ) Re p l a c e m e n t R e s e r v e $5 0 0 PU P A $5 0 0 (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) (5 0 , 0 0 0 ) Ca l H C D I n t e r e s t 0. 4 2 % pe r a n n u m (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) (7 3 , 5 0 5 ) NE T O P E R A T I N G I N C O M E 38 0 , 2 4 3 38 5 , 8 0 2 39 1 , 2 5 4 39 6 , 5 8 6 40 1 , 7 8 9 40 6 , 8 4 8 41 1 , 7 5 2 41 6 , 4 8 6 42 1 , 0 3 5 42 5 , 3 8 5 42 9 , 5 1 9 43 3 , 4 2 1 43 7 , 0 7 3 44 0 , 4 5 7 44 3 , 5 5 4 De b t S e r v i c e (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) (3 3 0 , 6 4 1 ) NE T C A S H F L O W 49 , 6 0 2 55 , 1 6 1 60 , 6 1 2 65 , 9 4 5 71 , 1 4 8 76 , 2 0 7 81 , 1 1 1 85 , 8 4 4 90 , 3 9 4 94 , 7 4 3 98 , 8 7 8 10 2 , 7 8 0 10 6 , 4 3 2 10 9 , 8 1 6 11 2 , 9 1 3 DI S T R I B U T I O N O F R E S I D E N T I A L C A S H F L O W Fa c t o r Tr e n d 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Ne t R e s i d e n t i a l C a s h F l o w 49 , 6 0 2 55 , 1 6 1 60 , 6 1 2 65 , 9 4 5 71 , 1 4 8 76 , 2 0 7 81 , 1 1 1 85 , 8 4 4 90 , 3 9 4 94 , 7 4 3 98 , 8 7 8 10 2 , 7 8 0 10 6 , 4 3 2 10 9 , 8 1 6 11 2 , 9 1 3 LP A s s e t M a n a g e m e n t F e e $3 , 0 0 0 pe r a n n u m 3. 5 0 % (3 , 0 0 0 ) (3 , 1 0 5 ) (3 , 2 1 4 ) (3 , 3 2 6 ) (3 , 4 4 3 ) (3 , 5 6 3 ) (3 , 6 8 8 ) (3 , 8 1 7 ) (3 , 9 5 0 ) (4 , 0 8 9 ) (4 , 2 3 2 ) (4 , 3 8 0 ) (4 , 5 3 3 ) (4 , 6 9 2 ) (4 , 8 5 6 ) De f e r r e d D e v e l o p e r F e e $6 9 5 , 5 7 5 0. 0 0 % (4 6 , 6 0 2 ) (5 2 , 0 5 6 ) (5 7 , 3 9 9 ) (6 2 , 6 1 9 ) (6 7 , 7 0 5 ) (7 2 , 6 4 4 ) (7 7 , 4 2 3 ) (8 2 , 0 2 8 ) (8 6 , 4 4 3 ) (9 0 , 6 5 5 ) (0 ) 0 0 0 0 Pa r t n e r s h i p M a n a g e m e n t F e e $1 2 , 0 0 0 pe r a n n u m 3. 5 0 % 0 0 0 0 0 0 0 0 0 0 (9 4 , 6 4 6 ) (8 0 , 5 7 8 ) (1 8 , 1 3 3 ) (1 8 , 7 6 7 ) (1 9 , 4 2 4 ) Re s i d u a l R e c e i p t - G r o u n d L e a s e 5. 6 4 % sh a r e 0 0 0 0 0 0 0 0 0 0 0 (1 , 0 0 6 ) (4 , 7 2 8 ) (4 , 8 7 4 ) (5 , 0 0 3 ) Re s i d u a l R e c e i p t - C i t y o f I n d i a n W e l l s 11 . 4 3 % sh a r e 0 0 0 0 0 0 0 0 0 0 0 (2 , 0 3 6 ) (9 , 5 7 2 ) (9 , 8 6 8 ) (1 0 , 1 2 8 ) Re s i d u a l R e c e i p t - M H P 32 . 9 3 % sh a r e 0 0 0 0 0 0 0 0 0 0 0 (5 , 8 6 9 ) (2 7 , 5 8 3 ) (2 8 , 4 3 6 ) (2 9 , 1 8 6 ) Re s i d u a l R e c e i p t - L i m i t e d P a r t n e r s h i p 50 . 0 0 % sh a r e 0 0 0 0 0 0 0 0 0 0 0 (8 , 9 1 1 ) (4 1 , 8 8 3 ) (4 3 , 1 7 8 ) (4 4 , 3 1 6 ) 17