Ventura County Housing Trust Fund
VC
HTF
Ventura County Housing Trust Fund
Executive Committee Chairperson Stephen Boggs The Boggs Group, LLC Vice Chair Sean Morreale Pacific Western Bank Treasurer Nancy Conk Housing Consultant Secretary Christy Madden County of Ventura, CEO Office Past Chairperson Marni Brook Montecito Bank & Trust Chair Emeritus Dawn Dyer Dyer Sheehan Group, Inc. Advisor Mary Ann Krause, AICP Urban Planner Board Members Nicholas Birck Housing Authority of the City of San Buenaventura Jennie Buckingham City of San Buenaventura Sal Gonzalez Retired, City of Oxnard Housing Director Peter Lyons City of Simi Valley David Moe City of Camarillo Lynn Oshita City of Thousand Oaks Mark Pettit Lauterbach & Associates Architects Greg Regier, Esq. Jackson Tidus, A Law Corporation Alex Russell Many Mansions Donna Sepulveda-Weber Stewart Title of California Ralph Velarde Ventura County Office of Education Chief Executive Officer: Linda Braunschweiger
April 5, 2017, 2017
David W. Rowlands City Manager City of Fillmore 250 Central Avenue Fillmore, CA 93015 Dear City Manager Rowlands, Since our inception in 2012, the Ventura County Housing Trust Fund (VCHTF) has raised over $4M and lent to affordable rental housing projects $3.7M. VCHTF provides short term, below market interest rate loans to developers (nonprofit and for profit) producing new affordable housing through our “Revolving Loan Fund”. At this time, we are asking all the cities in VC and the County to reinvest in this valuable loan fund. We would be honored to partner with the City of Fillmore through an investment by the City for $50,000 into the Housing Trust Fund. VCHTF is an independent 501(c)(3) non-profit and a State of California certified Community Development Financial Institution. Our mission is to support more housing choices, by generating and leveraging financial resources, working in partnership with the public, private, and non-profit sectors throughout Ventura County. We work closely with nonprofit and for profit developers building affordable housing. VCHTF places a priority on funding housing targeted toward Farmworkers, Homeless, Veterans, and Youth transitioning from Foster Care. VCHTF reviews loan applications from developers, analyses pro-formas, underwrites loans, prepares loan documents for funding, and manages in-house loan servicing. Over the last few years, our County has seen significant rent increases and real estate prices have returned to close to top dollar. At the same time, we have watched the demise of RDA funds, State and Federal affordable housing dollars significantly cut, and other grants sources dry up. These challenges have made the Housing Trust Fund even more valuable due to its leveraging ability, ability to raise funds not traditionally used for affordable housing, and our ability to be flexible addressing the special needs of our developers to make a deal successful. VCHTF offers predevelopment, construction, and GAP/Bridge loans to developers building affordable units. VCHTF was able to leverage all our municipal investments to bring other investments (public, private and charitable funds) into the Revolving Loan Fund to produce more loans throughout Ventura County. The Housing Trust Fund model is unique for this very reason that it is able to leverage funds from investors not traditionally funding Ventura County Housing Trust Fund | 805.330.6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012 www.vchousingtrustfund.org │ 501c3 nonprofit tax id# 45-3191747
Ventura County Housing Trust Fund affordable housing (example: RaboBank $250,000 EQ2 Investment, Montecito Bank $550,000, and McCune Foundation $150,000 investments). In addition, as loans are repaid (such as the projects listed below) funds are recycled back out into the community to develop more affordable housing units. Year
Amount
Applicant
Project
Details
Population Served
2013
$300,000 *
Santa Paula HA
Citrus Grove Apartments
new construction; 6 units + common area amenities
low income seniors
2013
$159,900 *
Ventura HA
Saratoga Distressed
purchase & refurbish 1 unit in a distressed condominium complex
VL income
2013
$200,000 *
Ventura HA
Castillo del Sol
new construction; 39 units + common area amenities
homeless, special needs
2014
$500,000 *
Cabrillo EDC
Camino Esperanza (Simi Valley)
new construction; 30 1bedroom apartments + common area
seniors, seniors with disabilities
2014
$250,000
Turning Point Foundatio n
Vince Street Project (Ventura)
refurbish commercial bldg into 10 SRO apartments
homeless vets
2014
$250,000
Santa Paula HA
Oakwood Court Apts (Santa Paula)
new construction; 8 units + common area amenities
low income seniors
2016
$300,000
Santa Paula HA
Citricos de Santa Paula
2016
$115,000
Ventura HA
SF De Minimus (for sale)
new construction; 11 1bedroom units + common area refurbish six homes; proceeds toward 140-unit affordable project
low income seniors
n/a
2016 & 2017
$1,625,000 Area HA Walnut Street new construction; 27 1-2-3 ELI & VL low (three County of Apts. bedroom units income separate Ventura (Moorpark) loans) * Loan repaid; funds returned without restriction to the Revolving Loan Fund to be used toward additional housing projects.
In 2016, VCHTF became certified as a State of California, Community Development Financial Institution (CDFI) through the Department of Insurance, California Organized Investment Network (COIN) program. VCHTF is now working on becoming a Federal Department of Treasury certified CDFI in 2017/2018. Becoming the only CDFI located in Ventura County lending for affordable multi-family developments has the potential to bring millions of Federal resources directly to Ventura County. As promised in our organizing phase, VCHTF has continued to research a potential dedicated source of funding for the HTF. The Board of Directors has committed in its Strategic Plan to make the identification of a dedicated source funding a priority in 2017/18. The long term success of VCHTF hinges on a successful dedicated source campaign in the near future.
Ventura County Housing Trust Fund | 805-330-6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012
Ventura County Housing Trust Fund As VCHTF moves into the next phase of growth, while continuing to fill the critical need of dollars for the development and preservation of affordable housing, we need the City of Fillmore’s help. We ask the City of Fillmore to show leadership and foresight by making an investment of $50,000 (over two years if needed) into the Housing Trust Fund. This investment will be leveraged to highly impact positive change for low income individuals and families with a priority on developing units for homeless, veterans, farm workers, and youth transitioning from foster care. Please feel free to contact me with any questions. I look forward to making a presentation to the City Council on April 25, 2017. Regards,
Linda Braunschweiger Linda Braunschweiger CEO 805-407-2455 [email protected]
Ventura County Housing Trust Fund | 805-330-6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012
VC
HTF Executive Committee Chairperson Stephen Boggs The Boggs Group, LLC Vice Chair Sean Morreale Pacific Western Bank Treasurer Nancy Conk Housing Consultant Secretary Christy Madden County of Ventura, CEO Office Past Chairperson Marni Brook Montecito Bank & Trust Chair Emeritus Dawn Dyer Dyer Sheehan Group, Inc. Advisor Mary Ann Krause, AICP Urban Planner Board Members Nicholas Birck Housing Authority of the City of San Buenaventura Jennie Buckingham City of San Buenaventura Sal Gonzalez Retired, City of Oxnard Housing Director
Ventura County Housing Trust Fund Mission
To support more housing choices, by generating and leveraging financial resources, working in partnership with the public, private, and non-profit sectors throughout Ventura County.
The Housing Trust Fund Model
In this era of limited resources, HTFs are able to attract capital from sources not traditionally dedicated to housing. They leverage these funds by combining private resources with foundation and public agency funds to build a revolving loan fund dedicated to expanding affordable and workforce housing. HTF loans often are made early in the development cycle, before traditional funding is available and thus provide financial support necessary to attract other money.
VCHTF’s Products
The “Revolving Loan Fund” provides below-market interest rate loans to developers who create new affordable housing (50% of AMI or below) within Ventura County. Eligible projects include: • New construction of affordable housing • Acquisition and conversion of market rate housing to affordable housing • Acquisition and conversion of non-residential properties to affordable housing Loans are awarded for: • Pre-development, gap financing, and/or construction of multi-family projects. • Short-term, maximum 3 to 5 years, GAP 6 months – 2 years • Minimum amount $50,000; maximum amount $1M • Projects with a long-term affordability requirement (30 to 55 years) (50% AMI or below) Priority is given to projects that serve: • Veterans, homeless, farmworkers, and young adults transitioning from foster care; • Families and individuals at the lowest income levels; • Residents from contributing jurisdictions.
The Process • • • •
Peter Lyons City of Simi Valley David Moe City of Camarillo Lynn Oshita City of Thousand Oaks Mark Pettit Lauterbach & Associates Architects Greg Regier, Esq. Jackson Tidus, A Law Corporation
History & Accomplishments •
• • •
Alex Russell Many Mansions Donna Sepulveda-Weber Stewart Title of California Ralph Velarde Ventura County Office of Education Chief Executive Officer: Linda Braunschweiger
Open NOFA (Notice of Funding Availability) process when loan capital is available. Pre-application, is required to determine project eligibility. Full applications are reviewed by professional underwriter and VCHTF Underwriting Committee, recommendations are submitted to the Board of Directors for approval. Program Guidelines, including pre-application and application forms, are available at our website: www.VCHousingTrustFund.org
•
2008 - VCHTF was started by Housing Opportunities Made Easier (HOME) based on interest from participants attending the annual Ventura County Housing Conferences. March, 2012 – VCHTF received independent 501c3 nonprofit status under IRS rules. 2012 – Awarded a $2.0 million matching grant by the State of California, Department of Housing & Community Development, from Prop. 1C bond measure. Oct. 2015, VCHTF completed raising the $2.0 million State match, including funds from the County of Ventura, six cities, several banks, private foundations and non-profits, businesses, and individual donors. Since 2013, VCHTF has loaned out over $4 million to nine projects, helping to create 132+ additional affordable housing units.
Ventura County Housing Trust Fund | 805.330.6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012 www.vchousingtrustfund.org │ 501c3 nonprofit tax id# 45-3191747
Ventura County Housing Trust Fund Year
Amount
Awardee
Project
Details
Population Served
2013
$300,000 *
Santa Paula Housing Authority
Citrus Grove Apartments
new construction; 6 units + common area amenities
low income seniors
2013
$159,900 *
Ventura Housing Authority
Saratoga Distressed
purchase & refurbish 1 unit in a distressed condominium complex
very low income
2013
$200,000 *
Ventura Housing Authority
Castillo del Sol
new construction; 39 units + common area amenities
homeless, special needs
2014
$500,000 *
Cabrillo Economic Development Corp
Camino Esperanza (Simi Valley)
new construction; 30 1-bedroom apartments + common area
seniors, seniors with disabilities
2014
$250,000
Turning Point Foundation
Vince Street Project (Ventura)
refurbish commercial bldg into 10 SRO apartments
homeless vets
2014
$250,000
Santa Paula Housing Authority
Oakwood Court Apts (Santa Paula)
new construction; 8 units + common area amenities
low income seniors
2016
$300,000
Santa Paula Housing Authority
Citricos de Santa Paula
new construction; 11 1-bedroom units + common area
low income seniors
2016
$115,000
Housing Authority of the City of San Buenaventura
SF De Minimus (for sale)
refurbish six homes; proceeds for 140-unit affordable development
n/a
Pre-development - new extremely low & construction; 27 1-2-3 bedroom very low income units Construction & Mini Perm: new extremely low & $875,000 & Area Housing Authority of Walnut Street 2017 construction; 27 1-2-3 bedroom very low income $250,000 the County of Ventura Apts. (Moorpark) units Loan repaid; funds returned without restriction to the Revolving Loan Fund to be used toward additional housing projects. 2016
*
$500,000 *
Area Housing Authority of the County of Ventura
Walnut Street Apts. (Moorpark)
Why Support VCHTF •
HTFs create new jobs. For every direct job created by housing production funded by a HTF, another 1.2 indirect jobs are created for a total of 2.2 jobs for the local economy.
•
As an independent non-profit, VCHTF attracts support across the political landscape, from traditional allies of affordable housing and others who see HTF’s independence from government as a key value.
•
Grants to VCHTF support a critical community need and are leveraged many times to provide new housing funding not easily accessible in a time of diminished resources.
•
The HTF is a revolving loan fund—that when loans are repaid those funds become available to lend to another project, allowing the original deposit to the fund to work over and over again.
•
VCHTF is a key element in the “Ten Year Strategy to End Homelessness” in Ventura County.
•
Participation in VCHTF assists cities with Housing Element requirements and obtaining credits for the creation of affordable housing.
•
VCHTF board members and staff are highly knowledgeable and have significant expertise in affordable housing finance which can be beneficial to cities during times of reduced city staff.
•
VCHTF has a broad regional focus and understands the affordable housing industry in Ventura County.
•
VCHTF has strong existing partnerships with lenders, the real estate and development community, housing providers, the business community, and local and county government.
Ventura County Housing Trust Fund | 805-330-6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012
To support more housing choices, by generating and leveraging financial resources, working in partnership with the public, private, and non-profit sectors throughout Ventura County.
4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012 www.vchousingtrustfund.org │ office: 805-330-6987 | 501c3 nonprofit tax id# 45-3191747
A Message from Our Board Chair Marni Brook
Dear Valued Supporter: Let me start by saying, simply, thank you. We are so grateful for your continued and ongoing support of our mission. Our model is unique and representative of the “it takes a village” approach to taking on significant social issues and challenges.
2016 was a year of accomplishment and transition. By year end, we had accomplished the goals we set at our 2012 inception: We had successfully raised $2,000,000 locally, from our public, private and nonprofit partners, which was matched through the Proposition 1C grant from the State HCD. We had approved loans for local affordable housing developments totaling $3,700,000. We produced 5 successful annual fundraising events. We developed a wide base of grassroots support including businesses, individuals, nonprofits, the County of Ventura and 6 of the 10 cities. These accomplishments were guided by a staff of 1.5 people and a dedicated Board of Directors. This is a testament to our commitment to be as (continued on page 6)
Ventura County’s Housing Conundrum * Average 2-bedroom apartment rent (January)
$1,582
$1,642
$1,725
$1,878
$1,953
2013
2014
2015
2016
2017
77% earn below the $33.48/hr. ($66,960/yr.) needed to afford a 2-bedroom apartment.
2.66%, apartment
vacancy rate creates high demand
40 years, average
apartment age. Older buildings require more maintenance, are less efficient and are more likely to have expiring affordable * Dyer Sheehan Group Inc. Jan. 2017 Apartment Market Survey
The Affordable Housing Solution The Housing Trust Fund model We attract capital from sources not traditionally dedicated to housing We leverage these funds by combining private resources with foundation and public agency funds. We build a revolving loan fund dedicated to expanding affordable and workforce housing. Our loans often are made early in the development cycle, before traditional funding is available and thus we provide financial support necessary to attract other money.
Private Acquisition, & Rehab for Conversion
VCHTF Revolving Loan Priority Funding
Extremely-low to low-income households Homeless individuals & families Farm-workers Veterans Transitional-aged foster young-adults Developments in municipal-partner communities
Accomplishments Citricos de Santa Paula 11 1-story units for lowincome seniors with community area.
3
new loans funded in 2016
Single-family de minimus Rehab 6 homes for sale with proceeds to be used for new construction of 140-unit multi-family affordable housing. Walnut Street Apartments, Moorpark Pre-development loan to help construct 24-unit complex for very-low income families with common area playground, gardens, laundry, etc.
$2M+
Raised
+ $2M Grant Match = $4M+ Revolving Loan Fund
$2,574,900
Loans Funded
+ $1,135,000 Pending Escrow
= $3,709,900
2
Loan Volume
Grand Openings in 2016
Oakwood Court, Santa Paula 8 single-story homes for lowincome seniors with common area.
Castillo del Sol, Ventura 39 unit apartment complex for low-income persons with special needs. Includes on-site services and common area amenities.
COIN (California Organized Investment Network) certified State CDFI (Community Development Financial Institution) approved April, 2016
Affordable Housing Units Financed
0
20
40
60
80
100
120
140
135 new affordable housing units created to date using VCHTF funding. These loans benefit very-low income families, veterans, people with special needs, seniors, and homeless persons. A successful 2016 fundraising event
Housing Opportunities for People with Special Needs highlighting the need for supportive, independent and affordable housing for people with physical, developmental and mental disabilities. With the profound generosity of many:
$41,800 event net proceeds; $3,705 donations to the Lynn Jacobs Memorial Fund; $4,500 worth of community-building items for the 39 special-needs residents at Castillo del Sol to enrich social interaction, learning, healthy living and independence.
We formed a broad coalition with financial support from:
17
financial institutions
52
corporate partners,
26 non-profit groups, 8 municipalities, and 178 individual donors
2016 Financial Snapshot Balance Sheet as of 12/31/2016 ASSETS
LIABILITIES
Cash & Other Current
$1,306,744
Payroll
$1,264
Loan Receivable
$1,165,000
EQ2 Loans
State Grant Receivable
$1,055,900
Deferred Grant
$1,055,900
TOTAL
$3,527,644
TOTAL
$1,407,164
$350,000
EQUITY Restricted Net Assets
$1,734,111
Unrestricted Net Assets
$273,512
Net Income
$112,857
TOTAL EQUITY
$2,120,480 1/01/2016—12/31/2016
INCOME
EXPENSE
Grants
$157,500
Personnel
$108,995
Events
$46,923
Operating
$19,967
Loan Income
$46,460
Fundraising
$10,790
Donations
$11,010
Loan Fees
Other TOTAL
$3,743 $265,636
Other TOTAL
$2,025 $11,001 $152,778
Thank you to our major 2016 Event Donors: Autism Society of V. C. City National Bank Dyer Sheehan Group, Inc. Housing Authority—San Buenaventura Montecito Bank & Trust Union Bank
Contributions by Sector (inception to date)
Loan Fund Local Municipal Partners City of Camarillo City of Moorpark City of San Buenaventura City of Santa Paula City of Simi Valley City of Thousand Oaks County of Ventura
(continued from page 1) efficient as possible with the funds with which you have entrusted us. In addition to the successes we enjoyed in 2016, VCHTF also began working towards our future strategic goal of becoming a larger, more nimble and sustainable organization that will take the lead in keeping issues that impact affordable housing at the forefront in our community. To that end, we accomplished several important objectives: At the State level, we received our designation through COIN (California Organized Investment Network) as a CDFI (Community Development Financial Institution), providing access to more funding opportunities to benefit local affordable housing development. We have started pursuing CDFI certification at the Federal level. We began discussions about identifying and developing a sustainable source of funding. We began discussions about offering expanded products and services that will be relevant to affordable housing in Ventura County None of this could have been accomplished without your support and our shared belief that everyone in our community deserves access to affordable, dignified housing. We are very proud to be part of the solution, and hope you will continue to support us in carrying out this important mission. It has been my privilege to serve as your board chair. We have come a long way, accomplished many great things and look forward to what’s to come in 2017 and beyond.
2015 and 2016 VCHTF Board Chair
Looking ahead to 2017 and beyond!
A working sub-committee is formed to develop a
Dedicated
Source of Funding, a key element to the long-term success of Housing Trust Funds.
We continue to pursue
CDFI certification
at the
Federal
level, opening up greater levels of opportunity.
Three loans are expected to pay off in 2017, putting an unencumbered
$865,000
back into the Revolving Loan Fund.
We continue to review our products and services offered in order to maximize our positive impact on affordable housing in the County.
We have developed a wide base of grassroots support including the County and 6 of the 10 cities as contributors to the revolving loan fund. We continue to work with the remaining 4 cities to become
municipal loan fund partners.
We Need Your Support! GIVE A MONETARY DONATION Automatic recurring or One-time donation Event sponsorship Corporate or foundation investment HELP WITH YOUR GIFT OF TIME AND SKILLS Serve on a sub-committee Help with technical expertise Volunteer to help at special events PROVIDE IN-KIND DONATIONS Office supplies & Printing Donation of auction items for fund-raising event Food, beverages, venue, speaker or other items for an event
Ventura County Housing Trust Fund The Ventura County Housing Trust Fund (VCHTF): a regional financial solution to the insufficient supply of affordable housing throughout Ventura County.
Mission To support more housing choices, by generating and leveraging financial resources, working in partnership with the public, private, and non-profit sectors throughout Ventura County.
2017 Board of Directors
Stephen Boggs, Chair, The Boggs Group LLC Sean Morreale, Vice Chair, Pacific Western Bank Christy Madden, Secretary, Ventura County Chief Executive Office Nancy Conk, Treasurer, Housing Consultant Marni Brook, Past Chair, Montecito Bank & Trust Mary Ann Krause, Advisor, AICP, Planner Dawn Dyer, Chair Emeritus, Dyer Sheehan Group Inc. Jennie Buckingham, City of Ventura Nicholas Birck, Housing Authority, City of Ventura Sal Gonzalez, Retired, Housing Director City of Oxnard Peter Lyons, City of Simi Valley David Moe, City of Camarillo Lynn Oshita, City of Thousand Oaks Mark Pettit, Lauterbach & Associates Architects, Inc. Greg Regier, Esq., Jackson DeMarco Tidus & Peckenpaugh Alex Russell, Many Mansions Donna Sepulveda-Weber, Stewart Title of California Ralph Velarde, VC Office of Education, Homeless & Foster Youth Services
Housing Trust Fund Model
Public, Private, and Charitable partnership In this era of limited resources, HTFs are able to attract capital from sources not traditionally dedicated to housing. Funds are leverage 8-10 times by combining private resources with foundation and public agency funds to build a revolving loan fund dedicated to expanding affordable and workforce housing. HTF loans often are made early in the development cycle, before traditional funding is available and thus provide financial support necessary to attract other money. Operations are paid by program fees, interest earned, and grants. VCHTF is seeking a dedicated source.
Key Concepts & Principles ▪
▪ ▪ ▪ ▪
Filling funding gaps in projects that create new affordable housing. Prioritizing projects for: homeless persons and families, youth transitioning from foster care, veterans, and farm workers. Being flexible with product design to meet the needs of our developer community. Operating a revolving loan fund which encourages participation from the County of Ventura and all 10 Cities. Developing ongoing funding from multiple dedicated funding sources and leveraging funds.
Products and Terms
The “Revolving Loan Fund” provides below-market interest rate loans to developers who create new affordable housing (50% of AMI or below) within Ventura County. Eligible projects include: New construction, Acquisition and conversion of market rate to affordable housing, Acquisition and conversion of non-residential properties to affordable housing Loans for: Pre-development, gap financing, and/or construction of multi-family projects Short-term 1 to 5 years Minimum amount $50,000; maximum amount $2M Projects with a long-term affordability requirement (30 to 55 years) Families and individuals at the lowest income levels Residents from contributing jurisdictions.
Eligible uses include:
Bridge loans Predevelopment expenses (architecture, engineering/soils, environmental reports, financial consultants) New construction Rehab of property being converted (site preparation, materials, labor)
VCHTF Accomplishments
Received a $2m matching grant from the State of California, Prop. 1C Local Housing Trust Fund program. Raised the matching $2m and disbursed all $4m in loans for the development of new affordable housing in Ventura County. Funded 138 low to extremely low income units of multi-family housing since inception. Affordable housing units have been built for homeless, veterans, farmworkers, seniors, families, and people with disabilities. Certified as a California Community Development Financials Institution (CDFI) through the COIN (CA Organized Investment Network). In the process of becoming a Federal Certified CDFI.
Leveraging Examples
City of Santa Paula: - Invested $50,000 into VCHTF - Received $850,000 in 3 loans - Leveraged up to $7,156,390 in development funds - Producing 25 affordable housing units City of Moorpark: - Invested $50,000 into VCHTF - Received $1,625,000 in 3 loans - Leveraged up to $16,887,129 in development funds - Producing 27 units McCune Foundation Investment: - Invested $150,000 Endowment Funds into VCHTF - Non-housing dollars invested for the development affordable housing
Conclusion
VCHTF would like to partner with the City of Moorpark. We ask the City of Fillmore to invest $50,000 into the Housing Trust Fund. Thank you for your support.
Revolving Loan Fund Municipal Partners:
Financial Sector Partners:
Non-Profit & Public Partners:
Corporate Partners:
Corporate Partners:
HTF
Ventura County Housing Trust Fund
Executive Committee Chairperson Stephen Boggs The Boggs Group, LLC Vice Chair Sean Morreale Pacific Western Bank Treasurer Nancy Conk Housing Consultant Secretary Christy Madden County of Ventura, CEO Office Past Chairperson Marni Brook Montecito Bank & Trust Chair Emeritus Dawn Dyer Dyer Sheehan Group, Inc. Advisor Mary Ann Krause, AICP Urban Planner Board Members Nicholas Birck Housing Authority of the City of San Buenaventura Jennie Buckingham City of San Buenaventura Sal Gonzalez Retired, City of Oxnard Housing Director Peter Lyons City of Simi Valley David Moe City of Camarillo Lynn Oshita City of Thousand Oaks Mark Pettit Lauterbach & Associates Architects Greg Regier, Esq. Jackson Tidus, A Law Corporation Alex Russell Many Mansions Donna Sepulveda-Weber Stewart Title of California Ralph Velarde Ventura County Office of Education Chief Executive Officer: Linda Braunschweiger
April 5, 2017, 2017
David W. Rowlands City Manager City of Fillmore 250 Central Avenue Fillmore, CA 93015 Dear City Manager Rowlands, Since our inception in 2012, the Ventura County Housing Trust Fund (VCHTF) has raised over $4M and lent to affordable rental housing projects $3.7M. VCHTF provides short term, below market interest rate loans to developers (nonprofit and for profit) producing new affordable housing through our “Revolving Loan Fund”. At this time, we are asking all the cities in VC and the County to reinvest in this valuable loan fund. We would be honored to partner with the City of Fillmore through an investment by the City for $50,000 into the Housing Trust Fund. VCHTF is an independent 501(c)(3) non-profit and a State of California certified Community Development Financial Institution. Our mission is to support more housing choices, by generating and leveraging financial resources, working in partnership with the public, private, and non-profit sectors throughout Ventura County. We work closely with nonprofit and for profit developers building affordable housing. VCHTF places a priority on funding housing targeted toward Farmworkers, Homeless, Veterans, and Youth transitioning from Foster Care. VCHTF reviews loan applications from developers, analyses pro-formas, underwrites loans, prepares loan documents for funding, and manages in-house loan servicing. Over the last few years, our County has seen significant rent increases and real estate prices have returned to close to top dollar. At the same time, we have watched the demise of RDA funds, State and Federal affordable housing dollars significantly cut, and other grants sources dry up. These challenges have made the Housing Trust Fund even more valuable due to its leveraging ability, ability to raise funds not traditionally used for affordable housing, and our ability to be flexible addressing the special needs of our developers to make a deal successful. VCHTF offers predevelopment, construction, and GAP/Bridge loans to developers building affordable units. VCHTF was able to leverage all our municipal investments to bring other investments (public, private and charitable funds) into the Revolving Loan Fund to produce more loans throughout Ventura County. The Housing Trust Fund model is unique for this very reason that it is able to leverage funds from investors not traditionally funding Ventura County Housing Trust Fund | 805.330.6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012 www.vchousingtrustfund.org │ 501c3 nonprofit tax id# 45-3191747
Ventura County Housing Trust Fund affordable housing (example: RaboBank $250,000 EQ2 Investment, Montecito Bank $550,000, and McCune Foundation $150,000 investments). In addition, as loans are repaid (such as the projects listed below) funds are recycled back out into the community to develop more affordable housing units. Year
Amount
Applicant
Project
Details
Population Served
2013
$300,000 *
Santa Paula HA
Citrus Grove Apartments
new construction; 6 units + common area amenities
low income seniors
2013
$159,900 *
Ventura HA
Saratoga Distressed
purchase & refurbish 1 unit in a distressed condominium complex
VL income
2013
$200,000 *
Ventura HA
Castillo del Sol
new construction; 39 units + common area amenities
homeless, special needs
2014
$500,000 *
Cabrillo EDC
Camino Esperanza (Simi Valley)
new construction; 30 1bedroom apartments + common area
seniors, seniors with disabilities
2014
$250,000
Turning Point Foundatio n
Vince Street Project (Ventura)
refurbish commercial bldg into 10 SRO apartments
homeless vets
2014
$250,000
Santa Paula HA
Oakwood Court Apts (Santa Paula)
new construction; 8 units + common area amenities
low income seniors
2016
$300,000
Santa Paula HA
Citricos de Santa Paula
2016
$115,000
Ventura HA
SF De Minimus (for sale)
new construction; 11 1bedroom units + common area refurbish six homes; proceeds toward 140-unit affordable project
low income seniors
n/a
2016 & 2017
$1,625,000 Area HA Walnut Street new construction; 27 1-2-3 ELI & VL low (three County of Apts. bedroom units income separate Ventura (Moorpark) loans) * Loan repaid; funds returned without restriction to the Revolving Loan Fund to be used toward additional housing projects.
In 2016, VCHTF became certified as a State of California, Community Development Financial Institution (CDFI) through the Department of Insurance, California Organized Investment Network (COIN) program. VCHTF is now working on becoming a Federal Department of Treasury certified CDFI in 2017/2018. Becoming the only CDFI located in Ventura County lending for affordable multi-family developments has the potential to bring millions of Federal resources directly to Ventura County. As promised in our organizing phase, VCHTF has continued to research a potential dedicated source of funding for the HTF. The Board of Directors has committed in its Strategic Plan to make the identification of a dedicated source funding a priority in 2017/18. The long term success of VCHTF hinges on a successful dedicated source campaign in the near future.
Ventura County Housing Trust Fund | 805-330-6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012
Ventura County Housing Trust Fund As VCHTF moves into the next phase of growth, while continuing to fill the critical need of dollars for the development and preservation of affordable housing, we need the City of Fillmore’s help. We ask the City of Fillmore to show leadership and foresight by making an investment of $50,000 (over two years if needed) into the Housing Trust Fund. This investment will be leveraged to highly impact positive change for low income individuals and families with a priority on developing units for homeless, veterans, farm workers, and youth transitioning from foster care. Please feel free to contact me with any questions. I look forward to making a presentation to the City Council on April 25, 2017. Regards,
Linda Braunschweiger Linda Braunschweiger CEO 805-407-2455 [email protected]
Ventura County Housing Trust Fund | 805-330-6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012
VC
HTF Executive Committee Chairperson Stephen Boggs The Boggs Group, LLC Vice Chair Sean Morreale Pacific Western Bank Treasurer Nancy Conk Housing Consultant Secretary Christy Madden County of Ventura, CEO Office Past Chairperson Marni Brook Montecito Bank & Trust Chair Emeritus Dawn Dyer Dyer Sheehan Group, Inc. Advisor Mary Ann Krause, AICP Urban Planner Board Members Nicholas Birck Housing Authority of the City of San Buenaventura Jennie Buckingham City of San Buenaventura Sal Gonzalez Retired, City of Oxnard Housing Director
Ventura County Housing Trust Fund Mission
To support more housing choices, by generating and leveraging financial resources, working in partnership with the public, private, and non-profit sectors throughout Ventura County.
The Housing Trust Fund Model
In this era of limited resources, HTFs are able to attract capital from sources not traditionally dedicated to housing. They leverage these funds by combining private resources with foundation and public agency funds to build a revolving loan fund dedicated to expanding affordable and workforce housing. HTF loans often are made early in the development cycle, before traditional funding is available and thus provide financial support necessary to attract other money.
VCHTF’s Products
The “Revolving Loan Fund” provides below-market interest rate loans to developers who create new affordable housing (50% of AMI or below) within Ventura County. Eligible projects include: • New construction of affordable housing • Acquisition and conversion of market rate housing to affordable housing • Acquisition and conversion of non-residential properties to affordable housing Loans are awarded for: • Pre-development, gap financing, and/or construction of multi-family projects. • Short-term, maximum 3 to 5 years, GAP 6 months – 2 years • Minimum amount $50,000; maximum amount $1M • Projects with a long-term affordability requirement (30 to 55 years) (50% AMI or below) Priority is given to projects that serve: • Veterans, homeless, farmworkers, and young adults transitioning from foster care; • Families and individuals at the lowest income levels; • Residents from contributing jurisdictions.
The Process • • • •
Peter Lyons City of Simi Valley David Moe City of Camarillo Lynn Oshita City of Thousand Oaks Mark Pettit Lauterbach & Associates Architects Greg Regier, Esq. Jackson Tidus, A Law Corporation
History & Accomplishments •
• • •
Alex Russell Many Mansions Donna Sepulveda-Weber Stewart Title of California Ralph Velarde Ventura County Office of Education Chief Executive Officer: Linda Braunschweiger
Open NOFA (Notice of Funding Availability) process when loan capital is available. Pre-application, is required to determine project eligibility. Full applications are reviewed by professional underwriter and VCHTF Underwriting Committee, recommendations are submitted to the Board of Directors for approval. Program Guidelines, including pre-application and application forms, are available at our website: www.VCHousingTrustFund.org
•
2008 - VCHTF was started by Housing Opportunities Made Easier (HOME) based on interest from participants attending the annual Ventura County Housing Conferences. March, 2012 – VCHTF received independent 501c3 nonprofit status under IRS rules. 2012 – Awarded a $2.0 million matching grant by the State of California, Department of Housing & Community Development, from Prop. 1C bond measure. Oct. 2015, VCHTF completed raising the $2.0 million State match, including funds from the County of Ventura, six cities, several banks, private foundations and non-profits, businesses, and individual donors. Since 2013, VCHTF has loaned out over $4 million to nine projects, helping to create 132+ additional affordable housing units.
Ventura County Housing Trust Fund | 805.330.6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012 www.vchousingtrustfund.org │ 501c3 nonprofit tax id# 45-3191747
Ventura County Housing Trust Fund Year
Amount
Awardee
Project
Details
Population Served
2013
$300,000 *
Santa Paula Housing Authority
Citrus Grove Apartments
new construction; 6 units + common area amenities
low income seniors
2013
$159,900 *
Ventura Housing Authority
Saratoga Distressed
purchase & refurbish 1 unit in a distressed condominium complex
very low income
2013
$200,000 *
Ventura Housing Authority
Castillo del Sol
new construction; 39 units + common area amenities
homeless, special needs
2014
$500,000 *
Cabrillo Economic Development Corp
Camino Esperanza (Simi Valley)
new construction; 30 1-bedroom apartments + common area
seniors, seniors with disabilities
2014
$250,000
Turning Point Foundation
Vince Street Project (Ventura)
refurbish commercial bldg into 10 SRO apartments
homeless vets
2014
$250,000
Santa Paula Housing Authority
Oakwood Court Apts (Santa Paula)
new construction; 8 units + common area amenities
low income seniors
2016
$300,000
Santa Paula Housing Authority
Citricos de Santa Paula
new construction; 11 1-bedroom units + common area
low income seniors
2016
$115,000
Housing Authority of the City of San Buenaventura
SF De Minimus (for sale)
refurbish six homes; proceeds for 140-unit affordable development
n/a
Pre-development - new extremely low & construction; 27 1-2-3 bedroom very low income units Construction & Mini Perm: new extremely low & $875,000 & Area Housing Authority of Walnut Street 2017 construction; 27 1-2-3 bedroom very low income $250,000 the County of Ventura Apts. (Moorpark) units Loan repaid; funds returned without restriction to the Revolving Loan Fund to be used toward additional housing projects. 2016
*
$500,000 *
Area Housing Authority of the County of Ventura
Walnut Street Apts. (Moorpark)
Why Support VCHTF •
HTFs create new jobs. For every direct job created by housing production funded by a HTF, another 1.2 indirect jobs are created for a total of 2.2 jobs for the local economy.
•
As an independent non-profit, VCHTF attracts support across the political landscape, from traditional allies of affordable housing and others who see HTF’s independence from government as a key value.
•
Grants to VCHTF support a critical community need and are leveraged many times to provide new housing funding not easily accessible in a time of diminished resources.
•
The HTF is a revolving loan fund—that when loans are repaid those funds become available to lend to another project, allowing the original deposit to the fund to work over and over again.
•
VCHTF is a key element in the “Ten Year Strategy to End Homelessness” in Ventura County.
•
Participation in VCHTF assists cities with Housing Element requirements and obtaining credits for the creation of affordable housing.
•
VCHTF board members and staff are highly knowledgeable and have significant expertise in affordable housing finance which can be beneficial to cities during times of reduced city staff.
•
VCHTF has a broad regional focus and understands the affordable housing industry in Ventura County.
•
VCHTF has strong existing partnerships with lenders, the real estate and development community, housing providers, the business community, and local and county government.
Ventura County Housing Trust Fund | 805-330-6987 | 4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012
To support more housing choices, by generating and leveraging financial resources, working in partnership with the public, private, and non-profit sectors throughout Ventura County.
4001 Mission Oaks Blvd., Suite O, Camarillo, CA 93012 www.vchousingtrustfund.org │ office: 805-330-6987 | 501c3 nonprofit tax id# 45-3191747
A Message from Our Board Chair Marni Brook
Dear Valued Supporter: Let me start by saying, simply, thank you. We are so grateful for your continued and ongoing support of our mission. Our model is unique and representative of the “it takes a village” approach to taking on significant social issues and challenges.
2016 was a year of accomplishment and transition. By year end, we had accomplished the goals we set at our 2012 inception: We had successfully raised $2,000,000 locally, from our public, private and nonprofit partners, which was matched through the Proposition 1C grant from the State HCD. We had approved loans for local affordable housing developments totaling $3,700,000. We produced 5 successful annual fundraising events. We developed a wide base of grassroots support including businesses, individuals, nonprofits, the County of Ventura and 6 of the 10 cities. These accomplishments were guided by a staff of 1.5 people and a dedicated Board of Directors. This is a testament to our commitment to be as (continued on page 6)
Ventura County’s Housing Conundrum * Average 2-bedroom apartment rent (January)
$1,582
$1,642
$1,725
$1,878
$1,953
2013
2014
2015
2016
2017
77% earn below the $33.48/hr. ($66,960/yr.) needed to afford a 2-bedroom apartment.
2.66%, apartment
vacancy rate creates high demand
40 years, average
apartment age. Older buildings require more maintenance, are less efficient and are more likely to have expiring affordable * Dyer Sheehan Group Inc. Jan. 2017 Apartment Market Survey
The Affordable Housing Solution The Housing Trust Fund model We attract capital from sources not traditionally dedicated to housing We leverage these funds by combining private resources with foundation and public agency funds. We build a revolving loan fund dedicated to expanding affordable and workforce housing. Our loans often are made early in the development cycle, before traditional funding is available and thus we provide financial support necessary to attract other money.
Private Acquisition, & Rehab for Conversion
VCHTF Revolving Loan Priority Funding
Extremely-low to low-income households Homeless individuals & families Farm-workers Veterans Transitional-aged foster young-adults Developments in municipal-partner communities
Accomplishments Citricos de Santa Paula 11 1-story units for lowincome seniors with community area.
3
new loans funded in 2016
Single-family de minimus Rehab 6 homes for sale with proceeds to be used for new construction of 140-unit multi-family affordable housing. Walnut Street Apartments, Moorpark Pre-development loan to help construct 24-unit complex for very-low income families with common area playground, gardens, laundry, etc.
$2M+
Raised
+ $2M Grant Match = $4M+ Revolving Loan Fund
$2,574,900
Loans Funded
+ $1,135,000 Pending Escrow
= $3,709,900
2
Loan Volume
Grand Openings in 2016
Oakwood Court, Santa Paula 8 single-story homes for lowincome seniors with common area.
Castillo del Sol, Ventura 39 unit apartment complex for low-income persons with special needs. Includes on-site services and common area amenities.
COIN (California Organized Investment Network) certified State CDFI (Community Development Financial Institution) approved April, 2016
Affordable Housing Units Financed
0
20
40
60
80
100
120
140
135 new affordable housing units created to date using VCHTF funding. These loans benefit very-low income families, veterans, people with special needs, seniors, and homeless persons. A successful 2016 fundraising event
Housing Opportunities for People with Special Needs highlighting the need for supportive, independent and affordable housing for people with physical, developmental and mental disabilities. With the profound generosity of many:
$41,800 event net proceeds; $3,705 donations to the Lynn Jacobs Memorial Fund; $4,500 worth of community-building items for the 39 special-needs residents at Castillo del Sol to enrich social interaction, learning, healthy living and independence.
We formed a broad coalition with financial support from:
17
financial institutions
52
corporate partners,
26 non-profit groups, 8 municipalities, and 178 individual donors
2016 Financial Snapshot Balance Sheet as of 12/31/2016 ASSETS
LIABILITIES
Cash & Other Current
$1,306,744
Payroll
$1,264
Loan Receivable
$1,165,000
EQ2 Loans
State Grant Receivable
$1,055,900
Deferred Grant
$1,055,900
TOTAL
$3,527,644
TOTAL
$1,407,164
$350,000
EQUITY Restricted Net Assets
$1,734,111
Unrestricted Net Assets
$273,512
Net Income
$112,857
TOTAL EQUITY
$2,120,480 1/01/2016—12/31/2016
INCOME
EXPENSE
Grants
$157,500
Personnel
$108,995
Events
$46,923
Operating
$19,967
Loan Income
$46,460
Fundraising
$10,790
Donations
$11,010
Loan Fees
Other TOTAL
$3,743 $265,636
Other TOTAL
$2,025 $11,001 $152,778
Thank you to our major 2016 Event Donors: Autism Society of V. C. City National Bank Dyer Sheehan Group, Inc. Housing Authority—San Buenaventura Montecito Bank & Trust Union Bank
Contributions by Sector (inception to date)
Loan Fund Local Municipal Partners City of Camarillo City of Moorpark City of San Buenaventura City of Santa Paula City of Simi Valley City of Thousand Oaks County of Ventura
(continued from page 1) efficient as possible with the funds with which you have entrusted us. In addition to the successes we enjoyed in 2016, VCHTF also began working towards our future strategic goal of becoming a larger, more nimble and sustainable organization that will take the lead in keeping issues that impact affordable housing at the forefront in our community. To that end, we accomplished several important objectives: At the State level, we received our designation through COIN (California Organized Investment Network) as a CDFI (Community Development Financial Institution), providing access to more funding opportunities to benefit local affordable housing development. We have started pursuing CDFI certification at the Federal level. We began discussions about identifying and developing a sustainable source of funding. We began discussions about offering expanded products and services that will be relevant to affordable housing in Ventura County None of this could have been accomplished without your support and our shared belief that everyone in our community deserves access to affordable, dignified housing. We are very proud to be part of the solution, and hope you will continue to support us in carrying out this important mission. It has been my privilege to serve as your board chair. We have come a long way, accomplished many great things and look forward to what’s to come in 2017 and beyond.
2015 and 2016 VCHTF Board Chair
Looking ahead to 2017 and beyond!
A working sub-committee is formed to develop a
Dedicated
Source of Funding, a key element to the long-term success of Housing Trust Funds.
We continue to pursue
CDFI certification
at the
Federal
level, opening up greater levels of opportunity.
Three loans are expected to pay off in 2017, putting an unencumbered
$865,000
back into the Revolving Loan Fund.
We continue to review our products and services offered in order to maximize our positive impact on affordable housing in the County.
We have developed a wide base of grassroots support including the County and 6 of the 10 cities as contributors to the revolving loan fund. We continue to work with the remaining 4 cities to become
municipal loan fund partners.
We Need Your Support! GIVE A MONETARY DONATION Automatic recurring or One-time donation Event sponsorship Corporate or foundation investment HELP WITH YOUR GIFT OF TIME AND SKILLS Serve on a sub-committee Help with technical expertise Volunteer to help at special events PROVIDE IN-KIND DONATIONS Office supplies & Printing Donation of auction items for fund-raising event Food, beverages, venue, speaker or other items for an event
Ventura County Housing Trust Fund The Ventura County Housing Trust Fund (VCHTF): a regional financial solution to the insufficient supply of affordable housing throughout Ventura County.
Mission To support more housing choices, by generating and leveraging financial resources, working in partnership with the public, private, and non-profit sectors throughout Ventura County.
2017 Board of Directors
Stephen Boggs, Chair, The Boggs Group LLC Sean Morreale, Vice Chair, Pacific Western Bank Christy Madden, Secretary, Ventura County Chief Executive Office Nancy Conk, Treasurer, Housing Consultant Marni Brook, Past Chair, Montecito Bank & Trust Mary Ann Krause, Advisor, AICP, Planner Dawn Dyer, Chair Emeritus, Dyer Sheehan Group Inc. Jennie Buckingham, City of Ventura Nicholas Birck, Housing Authority, City of Ventura Sal Gonzalez, Retired, Housing Director City of Oxnard Peter Lyons, City of Simi Valley David Moe, City of Camarillo Lynn Oshita, City of Thousand Oaks Mark Pettit, Lauterbach & Associates Architects, Inc. Greg Regier, Esq., Jackson DeMarco Tidus & Peckenpaugh Alex Russell, Many Mansions Donna Sepulveda-Weber, Stewart Title of California Ralph Velarde, VC Office of Education, Homeless & Foster Youth Services
Housing Trust Fund Model
Public, Private, and Charitable partnership In this era of limited resources, HTFs are able to attract capital from sources not traditionally dedicated to housing. Funds are leverage 8-10 times by combining private resources with foundation and public agency funds to build a revolving loan fund dedicated to expanding affordable and workforce housing. HTF loans often are made early in the development cycle, before traditional funding is available and thus provide financial support necessary to attract other money. Operations are paid by program fees, interest earned, and grants. VCHTF is seeking a dedicated source.
Key Concepts & Principles ▪
▪ ▪ ▪ ▪
Filling funding gaps in projects that create new affordable housing. Prioritizing projects for: homeless persons and families, youth transitioning from foster care, veterans, and farm workers. Being flexible with product design to meet the needs of our developer community. Operating a revolving loan fund which encourages participation from the County of Ventura and all 10 Cities. Developing ongoing funding from multiple dedicated funding sources and leveraging funds.
Products and Terms
The “Revolving Loan Fund” provides below-market interest rate loans to developers who create new affordable housing (50% of AMI or below) within Ventura County. Eligible projects include: New construction, Acquisition and conversion of market rate to affordable housing, Acquisition and conversion of non-residential properties to affordable housing Loans for: Pre-development, gap financing, and/or construction of multi-family projects Short-term 1 to 5 years Minimum amount $50,000; maximum amount $2M Projects with a long-term affordability requirement (30 to 55 years) Families and individuals at the lowest income levels Residents from contributing jurisdictions.
Eligible uses include:
Bridge loans Predevelopment expenses (architecture, engineering/soils, environmental reports, financial consultants) New construction Rehab of property being converted (site preparation, materials, labor)
VCHTF Accomplishments
Received a $2m matching grant from the State of California, Prop. 1C Local Housing Trust Fund program. Raised the matching $2m and disbursed all $4m in loans for the development of new affordable housing in Ventura County. Funded 138 low to extremely low income units of multi-family housing since inception. Affordable housing units have been built for homeless, veterans, farmworkers, seniors, families, and people with disabilities. Certified as a California Community Development Financials Institution (CDFI) through the COIN (CA Organized Investment Network). In the process of becoming a Federal Certified CDFI.
Leveraging Examples
City of Santa Paula: - Invested $50,000 into VCHTF - Received $850,000 in 3 loans - Leveraged up to $7,156,390 in development funds - Producing 25 affordable housing units City of Moorpark: - Invested $50,000 into VCHTF - Received $1,625,000 in 3 loans - Leveraged up to $16,887,129 in development funds - Producing 27 units McCune Foundation Investment: - Invested $150,000 Endowment Funds into VCHTF - Non-housing dollars invested for the development affordable housing
Conclusion
VCHTF would like to partner with the City of Moorpark. We ask the City of Fillmore to invest $50,000 into the Housing Trust Fund. Thank you for your support.
Revolving Loan Fund Municipal Partners:
Financial Sector Partners:
Non-Profit & Public Partners:
Corporate Partners:
Corporate Partners:
