San Diego Housing Commission Finance Plan Update as of September 2011

Real Estate Department San Diego Housing Commission November 15, 2011

Background
SDHC transitioned out of Public Housing in September 2007

HUD mandated to create a minimum of 350 affordable units

SDHC created the Finance Plan Approved by Housing Authority October 2009 Total Gross Proceeds $95,383,400 Fannie Mae December 2009 FHA August 2010

Finance Plan Update November 2011 2

Partnerships & Acquisitions

Finance Plan Update November 2011 3

Partnership Investments
Partnerships Riverwalk # of Units 49 Type Family Investment $4,475,000 SDHC Investment Per Unit $91,327

Arbor Village Vista Grande

Mercado Del Barrio Mission Apartments Terramar 21 Total

111 48
91 84 21 404

Family Family
Family Family Family

$7,900,000 $3,800,000
$7,000,000 $6,000,000 $2,100,000 $31,275,000

$71,171 $79,167
$76,923 $71,429 $100,000 $77,413

Finance Plan Update November 2011 4

Publicly Owned Investments

Property # of Units Type Investment SDHC Investment Per Unit $47,248 $200,766 $207,730 $2,236 $112,887

Hotel Sandford Mariner's Village Courtyard Apartments Hotel Churchill Total

129 171 37 91 428

Senior Family Family SRO

$6,095,000 $34,331,000 $7,686,000 $203,500* $48,315,500

*Invest amount for Hotel Churchill is the result of the legal settlement paid. Finance Plan Update November 2011 5

Riverwalk Apartments
New Construction Units: SDHC Total Cost: SDHC Investment Per Unit:
Type 1br/1ba 2br/1ba 3br/2ba Units 19 10 20

49 $4,475,000 $91,327
% AMI 30% - 60% 30% - 60% 30% - 60%

Affirmed Housing 9% Tax Credits District 8

Finance Plan Update November 2011 6

Arbor Village Apartments

Acquisition & Rehabilitation Units: 111 + 1M SDHC Total Cost: $7,900,000 SDHC Investment Per Unit: $71,171

Type 1br/1ba 2br/1ba 3br/2ba

Units 36 24 51

% AMI 30% - 60% 30% - 60% 30% - 60%

LINC Housing 9% Tax Credits District 4

Finance Plan Update November 2011 7

Vista Grande Apartments

Acquisition & Rehabilitation Units: 48 Total Cost: $3,800,000 Cost Investment Per Unit: $79,167
Type 2br/1ba 3br/1ba 4br/2ba Units 2 1 45 % AMI 30% - 45% 50% 30% - 50%

Wakeland Housing & Development Corp. 9% Tax Credits District 4

Finance Plan Update November 2011 8

Mercado del Barrio Apartments

New Construction (Open 2012) Units: 91 SDHC Total Cost: $7,000,000 SDHC Investment Per Unit: $78,923

Type 1br/1ba 2br/1ba 3br/2ba

Units 19 40 32

% AMI 30% - 60% 30% - 60% 30% - 60%

Chelsea Investment Corporation & San Diego Redevelopment Agency 9% Tax Credits District 8
Finance Plan Update November 2011 9

Mission Apartments
New Construction (Open 3/2012) Units: 84 + 1M SDHC Total Cost: $6,000,000 SDHC Investment Per Unit: $71,429
Type 2br/1ba 3br/2ba Units 79 5 % AMI 50%-60% 50%-60% AMCAL Mission Funds, L.P. 4% Tax Credits Tax Exempt Bonds District 2
Finance Plan Update November 2011 10

Terramar Apartments
New Construction Units: 20 + 1M Total Cost: $2,100,000 Cost Investment Per Unit: $100,000 Type 1 bedroom 2 bedroom 3 bedroom Units 4 11 5 % AMI 50% - 60% 50% - 60% 50% - 60%

Chelsea Investment Corporation 4% Tax Credits District 1

Finance Plan Update November 2011 11

Hotel Sandford Apartments

Acquisition & Historic Rehabilitation Units: 129 + 1M SDHC Total Cost: $6,095,000 SDHC Investment Per Unit: $47,248

Type SRO SRO

Units 52 77

% AMI 45% 50%

Direct Purchase $6,095,000 Loan from CCDC District 2

Finance Plan Update November 2011 12

Mariners Village
New Acquisition Units: SDHC Total Cost: SDHC Investment Per Unit: Type 1br/1ba 2br/1ba 3br/2ba Units 20 108 44 171 + 1M $34,331,000 $200,766 % AMI 80% 80% 80% Direct Purchase District 4

Finance Plan Update November 2011 13

Courtyard Apartments
Acquisition Units: SDHC Total Cost: SDHC Investment Per Unit: Type 1br/1ba 2br/2ba 3br/2ba Units 4 26 7

37 $7,686,000

$207,730
% AMI 80% 80% 80% Direct Purchase District 3

Finance Plan Update November 2011 14

Hotel Churchill
Acquisition Units: SDHC Total Cost: SDHC Investment Per Unit:
Type
SRO

91 $203,500*

$2,236
% AMI
TBD

Units
91

Direct Purchase District 2

*Invest amount for Hotel Churchill is the result of the legal settlement paid. Finance Plan Update November 2011 15

New Unit Distributions by Council District

District 2 304 units Hotel Sandford, Mission Apts, Hotel Churchill District 1 21 units Terramar District 3 3% 37 units Courtyard 4%

40%

District 8 17% 140 units Riverwalk, Mercado District 4 330 units Arbor Village, Vista Grande, Mariner's

37%

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Finance Plan Performance

Finance Plan Update November 2011 17

Remaining Funds
Dollar Amount
Total Loan Proceeds Less: Fees and Set Aside Less: Asset / Development Fee $95,383,400 (5,626,943) (2,033,140)

Proceeds Available for Investment

Proceeds Used and/or Committed

$87,723,317
(79,590,500)

Amount Available for Investment as of 10/11

$8,132,817

Finance Plan Update November 2011 18

Net Balance - Approved vs. Actual

FY 2011 Q4 (4/11 6/11) Original Finance Plan (9/09) NOI - former Public Housing units Total Debt Service (est.) Net Balance (Approved Plan) Actual NOI - former Public Housing units Total Debt Service Net Balance (Actual) FY 2012 Q1 (7/11 9/11)

$2,877,882 (1,911,708) $966,174

$2,983,944 (2,011,884) $972,060

$2,799,178 (1,656,646) $1,142,532

$3,498,217 (1,634,411) $1,863,806

Finance Plan Update November 2011 19

Next Steps
Utilize remaining $8.1 million New acquisition estimated for Spring 2012 Continue monitoring financial and operating performance of partnerships and acquisitions Possible refinance of newly acquired assets upon Housing Authority approval

Continue to provide housing opportunities to the residents of San Diego

Finance Plan Update November 2011 20

San Diego Housing Commission Finance Plan Update as of September 2011

Real Estate Department San Diego Housing Commission November 15, 2011