affordable senior units for only $14,000 per unit! · 2009. 6. 25. · 98 affordable senior units...

98 Affordable Senior Units for only $14,000 per unit! Introduction CityCentric Investments is proud to present the Berkeley community with the unprecedented opportunity to provide 98 permanently affordable senior citizen apartments in a well designed and situated infill project at the crossroads of San Pablo and Ashby Avenues for less than $15,000 per unit in Housing Trust Fund subsidy. The project also provides approximately 9,300 square feet of neighborhood serving retail space and a public plaza fronting San Pablo Avenue. CityCentric is requesting a Housing Trust Fund allocation of $1,381,450. The RFP issued for the HTF process indicates that only $650,000 is available in this cycle. The HAC and Council have historically seen compelling reason to commit housing trust funds outside the regular proposal cycles. The compelling reason in this case is the significant leveraging of $17.5 million dollars in tax credit financing. Since 2002 the average subsidy that the City has needed to provide for other affordable housing projects is $69,000 per unit (Oakland provides even higher average subsidies at @ $100K/unit). With project‐based Section 8 vouchers, CityCentric can deliver 98 permanently affordable senior housing units for under $15,000 per unit. That’s more than four times as many units for the money.

The plaza at Ashby Arts

Need for Affordable Senior Housing CityCentric and partners have been working on this restorative development project for the last several years. It started as a market rate condominium project packed with features and designed to mark one of Berkeley’s most prominent entry intersections. The economic tsunami of the last year and a half together with President Obama’s stimulus package has created a “perfect storm” of circumstances to reposition this project as affordable senior housing. These circumstances are creating the opportunity for the public sector and the private sectors to combine resources and directly leverage private capital for the sake of Berkeley’s current and future senior citizens. The need for affordable housing is well documented in California, and in particular Berkeley where property values have increased so significantly. Berkeley’s socio‐economic demographic is rapidly shifting. This shift is directly related to the lack of housing supply constructed in Berkeley. From 1970 and 1995 Berkeley only constructed 145 net new housing units. The lack of new housing supply coupled

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Ashby Arts Senior Housing June 2009 of 7

with local and regional population growth have made housing unaffordable for more and more people. The census numbers (1990 to 2007) provide some interesting data:

• 107.9% increase in the 55‐64 year old age group • 32% Increase in the 45 to 54 year old age group • 38.6% decrease in Berkeley’s African American population • 200% increase in households earning more than $100,000 per year

In addition, Berkeley’s birth rate is nearly twice its death rate. Housing has become a scarce and expensive commodity in Berkeley. It is even more so for low and fixed income residents. The children and grandchildren of people that have lived here for decades find themselves unable to afford to live here. The cost of housing has increased so much that many people who bought homes just five years ago would likely be unable to afford the same home today. Berkeley needs to build much more housing to house our own children, grandparents, and families. The Project The project proposes 98 permanently affordable senior citizen units and 9,300 square feet of retail. There are 79 one bedrooms, four two bedroom one bath, and 15 two bedroom two bath. The affordability of the units is deep, with 10% of the units at 30% AMI, 15% at 45% AMI, 50% at 50% AMI and 25% at 60% AMI. There are 18 parking spaces at grade for the retail (accessed from Ashby Avenue) and 25 spaces for the senior housing component. The project needs a waiver of 4 spaces on the commercial component, but the residential component meets zoning requirements. The project has more than 7,900 square feet of open space, exceeding the City’s standard by nearly 4,000 square feet. The open space is primarily located in a large central courtyard and on a deck at the fourth floor level at the southeast corner of the project. Residents will have views to the hills and to the south from the deck. The internal courtyard provides a well designed space with seating, plantings, and a game court. The project has many resident amenities. There is a lounge and a laundry room on each residential level, most of which will have nice westerly views. There is a grand residential lobby and seating area at the first floor level. There are two elevators to accommodate more efficient vertical circulation. There is approximately 1,900 square feet of community room at two levels. The community room is an essential part of the “village core” providing space for the property manager, lounge areas, and activity rooms for on‐site services (provided by Lifelong). The community room opens onto the internal courtyard and is a part of it. LifeLong Medical Care will provide supportive social services for the project. The services will be provided for a minimum of four hours per week. Programs will be designed to strengthen seniors, with a focus on life skills training, education and support. The programs will be provided by a coordinator to deliver counseling and case management, information and referrals on community resources, and mediation services.

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Ashby Arts represents a significant investment in public and private improvements to the surrounding neighborhood and the community. Along the San Pablo frontage there will be a plaza that is more than 500 square feet in size and providing seating for residents, neighbors, shoppers and café seating for a future restaurant. The project will also dedicate five feet of its Ashby frontage to allow the installation of a dedicated left turn lane for west bound Ashby, new signals, and improved pedestrian crossing phasing. This intersection will be redesigned (with Ashy Arts’ dedication and Bayer/West Berkeley Bowl mitigation funds) to create a much safer pedestrian environment across these busy state highways. Process As you know, there are myriad requirements and application processes necessary to achieve the public financing to construct this project. Ashby Arts currently has applications pending at the Berkeley Housing Authority for 98 project based Section 8 vouchers. There is an application pending the City’s consideration for the Housing Trust Fund allocation. An application was also just submitted for the State’s Tax Credit Allocation Committee. To meet California Tax Credit Allocation Committee’s (TCAC) funding deadline, decisions on PB Section 8 and Housing Trust Fund must be concluded on or before August 17, 2009. Additionally, the project’s use permit and design modifications must be finalized by the same date, at the latest. Financing:

• Project scores the maximum points of 146 in 2009’s only competition round for 9% low income housing tax credit competition and achieves a competitive tie break score;

• Nets $17.5 million in low income housing tax credits;

• Enterprise Social Partners has issued a Letter of Intent to syndicate the tax credits;

• Citibank has committed to a permanent loan of $11,575,00;

• Wells Fargo Bank has committed to a $20,000,000 construction loan;

• Developer provides a land bridge loan to the housing in the amount of $2,000,000;

• City’s HTF at $1.4 million represents less than 5% of the total project cost of $30 million, or less than $15k per unit; and,

• Developer will provide personal guarantees on $20,000,000 construction loan. The Ashby Arts Housing Trust Fund application has an ownership and financing structure that assumed the current owners would retain the retail portion of the project. RB Tech Center owns the project and would have paid for it with the equity from the retail. The residential air rights over the retail and parking area would have been purchased by Ashby Arts Associates. Ashby Arts Associates would have included the current owners and Satellite Senior Housing as property manager, service provider, and Co‐General Partner. The cost of the land was assumed to be $3.5MM. The total project cost was $31,663,020. There are several advantages to having Satellite Senior Homes as a project Co‐General Partner, including their great experience in property management and social services. Having the non‐profit partner would



have qualified the project for TCAC’s non‐profit pool, monies especially set aside for those projects. A non‐profit partner would also have exempted the project from property taxes. RB Tech Center and Satellite Senior Homes were not able to finish their negotiations for partnership. The problem with the original ownership model was that RB Tech Center would have received the tax credits and there are limited partners in the current ownership that need to be taken out of the project. For that to happen money would need to be assigned at TCAC’s discretion, and their decision could be subject to lengthy protests. The tax attorneys for the project (Novogradac and Company) advised that this transaction should be completed before the application. As a result, the ownership of the whole project will be Ashby Arts Associates consisting of CityCentric Investments as the Managing Co‐General Partner, and RB and L as the Co‐General Partner. RB&L will also be the Limited Partner. In shifting the ownership structure several changes in financing and services have occurred. Ecumenical Affordable Housing will provide property management services. LifeLong Medical Care will provide social services. The project no longer qualifies for property tax exemption, and the project cannot be prevailing wage. As a prevailing wage project the construction budget was $18MM. Now it is $15.9MM for a $2.1MM reduction. This project, with this level of subsidy, cannot be built with prevailing wage. However, the project will now be required to pay property taxes of $260,000 per year for the residential portion, which increases the project’s operating expenses by $2K per unit per year. The ownership change also means that the private equity will no longer be a part of the financing so the construction loan must be larger. The larger construction loan means an increase in financing charges ($900K up to $1.6MM). The project also previously assumed a tax credit investor construction contribution of $3.6MM and only $3MM is provided. The land cost now includes the $1.5MM in soft costs that was previously remaining in the financing structure as part of the private equity. The total project cost is now down to $30,450,000. Ashby Arts Associates intends to admit a non‐profit entity as a Co‐General Partner for the project, prior to breaking ground by the February, 2010 deadline. If that occurs, the TCAC allocation will be reduced to reflect the elimination of the property taxes for the residential portion. Community Benefits The most important benefit is 98 permanently affordable senior citizen housing units. Berkeley’s need for senior and affordable housing far exceeds its supply. This is creating significant difficulties for the community. The project’s well designed transit‐oriented density will help address many of Berkeley’s equity and environmental goals. Ashby Arts helps address all three of these critical socioeconomic challenges by providing permanently affordable senior housing in one of Berkeley’s most diverse remaining neighborhoods. Community benefits include:

• 98 senior housing units ranging in affordability from 30% to 60% AMI

• Public subsidy request of less than $15,000/unit + Section 8 certificates



• Vital and pedestrian oriented ground floor retail along San Pablo Avenue, with a mid‐block plaza

• Sensitive transition from active urban edge to softer neighborhood character

• Strong architectural statement at Berkeley’s southwestern gateway with public art components

• LEED certified green/sustainable project with solar panels for thermal and electrical energy

• Project endorsed by Greenbelt Alliance;

• City Car Share pod accessible to the public;

• Significantly reduced traffic noise for the Carrison Street neighbors;

• Improved and Safer Ashby/San Pablo intersection, with a west bound Ashby left turn lane

• Removes a vacant lot and restores the pedestrian way and streetscape at a highly visible gateway intersection;

• Provides eyes and ears on the street;

• Brings $20 million in expenditure for jobs in Berkeley; and,

• Transit Oriented Development with significant environmental benefits (see table below)

ENVIRONMENTAL BENEFITS 98‐unit Transit Oriented Senior Citizen Housing Development Compared to Single‐Family Development

Greenhouse Gas (GHG) reduction @175,000 lbs CO2/year

Energy savings (BTU) 3,430,000,000 BTU/year

Vehicle Miles Traveled (VMT) reduction

@490,000 miles/year (20,000 gallons of gas or 356 barrels of oil)

Proximity of Services and Transit The project site is located in an area that is rich in services. Directly north of the project, across Ashby Avenue is a Walgreen’s Pharmacy. A new full service grocery store (West Berkeley Bowl) is located two blocks to the north and west of the project. There are two parks within 1,000 feet of the site. One is the Mabel/Haskell Neighborhood Park. It is a small pocket park located one block from the project site. The second is San Pablo Park. San Pablo Park is a large community serving park located three blocks from the project site. It also supports the Francis Albrier Community Center which provides a social hall, arts and crafts room, and a publicly accessible computer lab, among other services. The project is also close to numerous other retail goods and services, including:

• full service grocery store (West Berkeley Bowl ‐ three blocks)

• over 60 health clinic (one half mile)

• South Berkeley Senior Center (3/4 of a mile, on AC Transit line 9 that stops at project corner)

• Walgreen’s Pharmacy (across the street)

• hardware store (two blocks)

• at least four café/coffee shops (within three blocks)

• convenience store and deli (across the street)

• fabric/crafts store (across the street)



The project site is located at the corner of Ashby and San Pablo Avenues. As a result, it is directly adjacent to some of Berkeley’s best and most frequent transit services. The following AC Transit lines have stops at the corner of Ashby and San Pablo Avenues:

• 72R (rapid bus), 12 minute weekday headways north and south

• 72 and 72M, 16 minute weekend and weekday headways north and south

• 9, 20 minute headways east and west

• 802, Hourly service into Downtown Oakland

• J, Transbay Service into San Francisco with 20 minute weekday headways

Additional nearby transit services include:

• Ashby BART station, one mile east with bus service at 20 minute headways on the AC Transit 9 line

• The Emery‐Go‐Round provides free transit service to Emeryville’s significant retail opportunities and stops three blocks from the project site and.

Adjacent and Surrounding Uses The subject site is a 34,210 square foot vacant lot at the southeast corner of Ashby and San Pablo avenues in the City of Berkeley. The proposed project will support 98 affordable senior citizen dwelling units. The project is within the boundaries of the Ashby Node of the C‐W (West Berkeley Commercial) zoning requirements. The C‐W zoning district runs the length of San Pablo Avenue and is identified in City policy documents as encouraging transit oriented development. The zoning allows for higher density and mixed‐use infill development. The site is adjacent to San Pablo Avenue on the west, Ashby Avenue to the north, and Carrison Street to the South. Along the northeast property line is a mixed‐use (office/residential) building, and along the southeast a residential property. The following table describes the adjacent and confronting uses.

Direction Use

North Retail (Walgreen’s Pharmacy)

South Residential

East Mixed use (office/res. north half of lot), Residential (south half of lot)

West Mixed Use (retail/residential)

Developer Team:

• Developer team includes Ali Kashani and Mark Rhoades with two decades’ experience in planning and affordable housing development primarily in Berkeley;



• Development team includes Rawson Blum Leon with four decades’ experience developing retail in the Bay Area

• Developer is working with an experienced general contractor who has prepared a detailed cost estimate for the project;

• Design team includes one of California’s premier architectural firms with unique expertise in both housing and retail;

• Developer has contracted with Ecumenical Affordable Housing for management services and with Lifelong Medical Care for resident services.

For more information about this project, contact: CityCentric Investments Ali Kashani, or Mark Rhoades, AICP 5715 Claremont Avenue Oakland, CA 94618 tel: 510.420.6900


Ashby Arts 9% TCAC Application Affordable Senior Citizen Housing 1200 Ashby Avenue Berkeley, CA 94702

by: CityCentric Investments 5715 Claremont Avenue Oakland, CA 94618 510.420.6900

Tab 23, Site and Service Amenities Transit Proximity/Frequency

Samples of Schedules and Headways for AC Transit Lines 72 Rapid (weekdays only), 72 (weekends and weekdays), 72M (weekends and weekdays) and 9 (weekends and weekdays). For full schedule and route information please see http://www.actransit.org/maps/. All three lines stop at the corner of Ashby and San Pablo Avenue, in front of the project site. 72R Northbound Weekday Northbound 72R 72R 72R 72R 72R 72R 72R 72R 72R 72R 72R 72R Jack London Square (Second St. & Clay St.) 1052a 1104a 1116a 1128a 1140a 1152a 1204p 1216p 1228p 1240p 1252p 104p Contra Costa College 1148a 1200p 1212p 1224p 1236p 1248p 107p 119p 131p 143p 155p 207p Northbound 72R 72R 72R 72R 72R 72R 72R 72R 72R 72R 72R 72R Jack London Square (Second St. & Clay St.) 116p 128p 140p 152p 204p 216p 228p 240p 252p 304p 316p 328p Contra Costa College 219p 231p 243p 255p 307p 319p 331p 343p 402p 414p 426p 438p Northbound 72R 72R 72R 72R 72R 72R 72R 72R 72R 72R 72R 72R Jack London Square (Second St. & Clay St.) 340p 352p 404p 416p 428p 440p 452p 504p 516p 528p 540p 552p Contra Costa College 450p 502p 514p 526p 538p 550p 602p 614p 626p 638p 650p 658p 9 Eastbound Weekday Dwight Way & San Pablo Ave. 635a 655a 716a 736a 756a 816a 832a 835a 855a 915a 935a 955a Ashby Ave. & San Pablo Ave. 641a 701a 723a 743a 803a 823a 839a 841a 901a 921a 941a 1001a Ashby BART 649a 709a 732a 752a 812a 832a 848a 850a 910a 930a 950a 1010a Ashby Ave. & Claremont Ave. 657a 717a 742a 802a 822a 842a 858a 859a 919a 939a 959a 1019a Eastbound 9 9 9 9 9 9 9 9 9 9 9 9 Berkeley BART 1007a 1027a 1047a 1107a 1127a 1147a 1207p 1232p 112p 142p 212p 242p Dwight Way & San Pablo Ave. 1015a 1035a 1055a 1115a 1135a 1156a 1216p 1241p 121p 152p 222p 252p Ashby Ave. & San Pablo Ave. 1021a 1041a 1101a 1121a 1141a 1202p 1222p 1247p 127p 159p 229p 259p

Project Site 1200 Ashby

Ashby BART 1030a 1050a 1110a 1130a 1150a 1211p 1231p 1256p 136p 208p 238p 308p Ashby Ave. & Claremont Ave. 1039a 1059a 1119a 1139a 1159a 1220p 1240p 105p 145p 218p 248p 318p Eastbound 9 9 9 9 9 9 9 9 9 9 9 9 72 Northbound Weekday Northbound 72 72M 72 72M 72 72M 72 72M 72 72M 72 72M Oakland Amtrak 458a 541a 557a 613a 628a 643a 703a 723a 739a 753a 14th St. & Broadway 505a 533a 548a 604a 620a 635a 650a 710a 730a 746a 800a 40th St. & San Pablo Ave. 515a 543a 558a 614a 630a 645a 701a 721a 741a 757a 811a Ashby Ave. & San Pablo Ave. 519a 547a 602a 618a 634a 649a 708a 728a 748a 804a 818a University Ave. & San Pablo Ave. 525a 553a 608a 624a 640a 655a 714a 734a 754a 810a 824a Northbound 72 72M 72 72M 72 72M 72 72M 72 72M 72 72M Oakland Amtrak 809a 823a 839a 853a 909a 923a 939a 950a 1005a 1020a 1035a 1050a 14th St. & Broadway 816a 830a 846a 900a 916a 930a 946a 957a 1012a 1027a 1042a 1057a 40th St. & San Pablo Ave. 827a 841a 857a 911a 927a 941a 957a 1009a 1024a 1039a 1054a 1109a Ashby Ave. & San Pablo Ave. 834a 848a 904a 918a 934a 948a 1004a 1016a 1031a 1046a 1101a 1116a University Ave. & San Pablo Ave. 840a 854a 910a 924a 940a 954a 1010a 1024a 1039a 1054a 1109a 1124a El Cerrito Plaza BART 851a 905a 921a 935a 951a 1005a 1021a 1035a 1050a 1105a 1120a 1135a


http://www.actransit.org/maps/



Tab 23, Site and Service Amenities Services Proximity

San Pablo Park

West Berkeley Bowl, full service grocery

Walgreens Pharmacy)

Parks Haskell/Mabel Park N/W corner of Mabel and Haskell Streets Berkeley 510.981.6700 San Pablo Neighborhood Park N/E corner of Russell and Mabel Streets, Berkeley 510.981.6700

Pharmacy Walgreen’s Pharmacy 2995 San Pablo Avenue, Berkeley 510.548.2104

Project Site ‐ 1200 AshbyDensity = 98 units on 34,210 sf = 124 units/acre

Full Service Grocery West Berkeley Bowl 920 Heinz Avenue, Berkeley

Convenience Store (with staple items)

510.843.6929

Convenience Store (w/staples) Haskell/Mabel Park Tip Top Deli

3012 San Pablo Avenue, Berkeley 510.549.1126

1,000 Feet


Project Site 1200 Ashby Ave.

Over 60’s Health Center/ Life Long Medical Care 1860 Alcatraz, Berkeley 510.601.6060



Tab 23, Site and Service Amenities Health Clinic Proximity


Tab 23, Site and Service Amenities Photographs and Contacts for Services and Amenities

San Pablo Neighborhood Park Over 60’s Health Center/Life Long Medical Care

contact: Yolanda Mendoza contact: Nathan Landau

2995 San Pablo Avenue, Berkeley 1600 Franklin Street, Oakland

N/W corner of Mabel and Haskell Streets, Berkeley 920 Heinz Avenue, Berkeley

N/E corner of Russell and Mabel Streets, Berkeley 1860 Alcatraz, Berkeley

Haskell/Mabel Park West Berkeley Bowl

contact: Scott Ferris contact: Glen Yasuda

contact: Scott Ferris contact: Marty Lynch

510.981.6700 510.898.9555

510.981.6700 510.601.6060

510.548.2104 510.891.4700

Walgreen’s Pharmacy AC Transit

Photographs and Contact Information for Service Amenities for 1200 Ashby Avenue, Berkeley



3012 San Pablo Avenue, Berkeley

contact: Reyad Salameh 510.549.1126

Tip Top Deli


http://www.flickr.com/photos/ml_kap/3527624066/�

http://www.actransit.org/riderinfo/rapid/�

affordable senior units for only $14,000 per unit! · 2009. 6. 25. · 98 affordable senior units...

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