team pasadena 1000 homes presentation
DESCRIPTION
Team Pasadena's presentation was named Best Presentation at the Urban Land Institute's 1000 Homes Competition.TRANSCRIPT
HOUSING HOMELESS FAMILIES IN PASADENA
Colleen Edwards, Ujjal Ghoshtagore, Tish Glaser, Jimmy Miyoshi, Nancy Sagar, Archana Rajan, advisor Dale Yonkin
Welcome
The Problem (Ujjal) Target Population (Nancy) Site Selection (Colleen) Design (Jimmy) Services (Arch) Pro Forma Financials (Tish) Wrap-up (Ujjal)
Pasadena Trends
1992 2000 2003 2005 2006 2007 2008 2009 2010
1017
879 853
10641001
825 836
1004
1137Homelessness is up 36%
from 2008
Num
ber
of
hom
ele
ss indiv
iduals Drivers
• Economic displacement
• Lack of affordable housing
• Decreased funding
71 Families, 262 Individuals
2005 2007 2009 20100
100200300400500600700 599
294322 262
Family homelessness is dropping
# o
f hom
ele
ss f
am
ilies
0
20
40
60
80
100
120
140
160
81 99
3745
In shelters & on the streets
Parents
Children
# o
f H
om
ele
ss I
n-d
ivid
ua
ls
Parents 82 (1.2 / family)
Children 180 (2.5 / family)
+ kids in foster care
Housing gap
500 families at risk
“The dire lack of affordable housing in Pasadena is both a leading contributor to the homeless crisis and a fundamental barrier to chronically homeless families to overcome their homelessness. ”
- Marv Gross, CEO, Union Station Homeless Services
14 units at Euclid Villa
50 beds at the Family Center
No PSH for families
Target population
Homeless families 71
"High need families with serious barriers to stability"
x
25%
Qualified families today
= 18
Future capacity+
12
Total units
3075 children36 adults
Profile: Mothers
Mental health problems
Substance abuse, self-medication
Domestic violence Victimized PTSD, depression,
anxiety Physical or
developmental disabilities (31%)
3+ major health problems (62%)
Unable to get medical treatment
Pregnancy (7%) Limited life skills Limited financial
stability Poor support
system Distrustful Limited parenting
skills Abusive behaviors
“Many of these people were born into poverty. They have suffered abuse and self-medicated, sometimes when they were kids. It’s not an accident that they’re homeless. It’s a wonder they weren’t homeless earlier.”
- Marv Gross, CEO, Union Station Homeless Services
Trauma has lifelong impact
Mental health disorders
Behavioral problems
Learning disabilities
Greater illness than “housed” children
Social & emotional delays
Foster care placement
En-rolled; 52%
Not en-
rolled; 48%
48% of homeless children aren't
enrolled in school
Children often experience terrible family violence
Requested Area: Colorado Blvd
Plan A: Best Western Inn
Asking$9.8 million
Plan B: La Pasada Inn
24 feet too close to the highway
Disqualified from City of Industry funding
Plan C: 3620 E. Colorado
18,870 sq ft
9,435 sq ft
Elizabeth Carniceria
Apartments
Adjacent Property
Amenities • Colorado/
Lotus bus stop
• <1 m to Ralph’s
• <½ m to Pasadena City Library
• <¾ m to Eaton Blanche Park
• <½ m to Wilson Elementary School
• <½ m to Wilson Middle School
• <2 m to many retail businesses
Services
High Needs
Families
Case Management
Low Control,Fair but Firm
common tenancy rules
Onsite services, workshops
Services for Children and
families
Primary Goal: Retention
“They say they will participate in services, but they don’t. You must remove all barriers for their participation.” – David Garcia, Pacific Services
Onsite ServicesUnion Station Homeless
Services
Case M
an
ag
em
en
t Substance abuse counseling
Benefits assistance Mental health care and counseling Trauma-specific counseling (including sexual abuse and physical abuse)
On
sit
e W
ork
sh
op
s Living SkillsMoney management Emotions management Healthy relationship skillsLegal InfoAIDS/HIV education
Fam
ily/C
hild
S
erv
ices
Parenting Classes, Family Therapy, Child CareGroup ActivitiesFood Pantry, TransportationCreativity building Legal/Juvenile supportReferrals
Property Management
The John Stewart Company
Strong Partnership = Success-ful PSH
Onsite Property Manager
Case Managers
Tenant Qualification
24 hour onsite Manager
Annual Reporting
Case Management
Tenancy Agreement
Low Control
Onsite Workshops
Family/Kids Services
Educate
Engage
Enhance
PSHFor
Families
Local Residents
Local Schools
Local Businesses
Community Outreach Educate
Disperse Fears, misconceptions
Engage Bus tours
VolunteeringStudent
Internships
EnhanceEvents, Art
projects Story time for kids
EducateNew Neighbor on
the block
EngageDiscuss Needs
Of residents
EnhanceProvide BusinessSet up Contracts
EducateProject Briefing
EngageFund raisers,
Events
EnhanceRefer homeless
To suitable home
EducateBenefits to City,
Children, Families
EngageDirect involvement for political support
EnhanceCity Projects
participation by PSH residents
EducatePsychological
effects of homelessness
EngageObtain help to spot homeless families
EnhanceKids events
Nonprofits, City Departments
City Officials / Political Support
Build Community Support – Educate Engage Enhance
Educate
Engage
Enhance
Sources & Uses
Threshold Basis Calculation
Pro Forma Income & Expense SummaryFamily / 9% Tax CreditsLos Angeles
Rent @ 100% AMI
Utility Allowance
0 $904 $01 $1,145 $612 $1,430 $803 $1,920 $0
Beds Baths Sq. Ft. /Unit# of
Units % of AMIRent/Unit
Utility Allow.
Rent Received
Monthly Rent Subsidy
Affordable Units1 1 510 15 30% $445 61 $384 $5,760 $11,4152 1 750 14 30% $535 80 $455 $6,370 $13,650
Affordable Units Subtotal 626 29 30% $488 $70 $418 $12,130 $25,065
Market Rate UnitsManagers Unit
2 1 750 1 100% $1,430 $0 $1,430 $1,430Market Rate Units Subtotal 750 1 $1,430 $0 $1,430 $1,430
Total for All Units 630 30 $520 $452 $13,560
Total Annual Rent $162,720Other Income $5.00 $1,800Rent Subsidy $300,780
Vacancy 10%$(46,530
)Effective Gross
Income $418,770
15-Year Cash Flow Projection
Family / 9% Tax Credits
Inflation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Rental Income 2.5% 162,720 166,788 170,958 175,232 179,612 184,103 188,705 193,423 198,259 203,215 208,295 213,503 218,840 224,311 229,919
Other 2.5% 1,800 1,845 1,891 1,938 1,987 2,037 2,087 2,140 2,193 2,248 2,304 2,362 2,421 2,481 2,543
Operating Subsidy 2.5% 300,780 308,300 316,007 323,907 332,005 340,305 348,813 357,533 366,471 375,633 385,024 394,649 404,516 414,629 424,994
TOTAL GROSS POTENTIAL REVENUE 465,300 476,933 488,856 501,077 513,604 526,444 539,605 553,095 566,923 581,096 595,623 610,514 625,777 641,421 657,457
Vacancy @ 10% 3.5% 46,530 47,693 48,886 50,108 51,360 52,644 53,961 55,310 56,692 58,110 59,562 61,051 62,578 64,142 65,746
TOTAL NET RENTAL INCOME 418,770 429,239 439,970 450,969 462,244 473,800 485,645 497,786 510,231 522,986 536,061 549,463 563,199 577,279 591,711
Advertising 3.5% 3,000 3,105 3,214 3,326 3,443 3,563 3,688 3,817 3,950 4,089 4,232 4,380 4,533 4,692 4,856
Legal 3.5% 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814 7,053 7,300 7,555 7,820 8,093
Accounting 3.5% 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814 7,053 7,300 7,555 7,820 8,093
Other Administrative 3.5% 6,000 6,210 6,427 6,652 6,885 7,126 7,376 7,634 7,901 8,177 8,464 8,760 9,066 9,384 9,712
Management Fee 3.5% 25,126 26,006 26,916 27,858 28,833 29,842 30,887 31,968 33,086 34,244 35,443 36,683 37,967 39,296 40,672
Utilities 3.5% 15,000 15,525 16,068 16,631 17,213 17,815 18,439 19,084 19,752 20,443 21,159 21,900 22,666 23,459 24,280
Water & Sewer 3.5% 15,000 15,525 16,068 16,631 17,213 17,815 18,439 19,084 19,752 20,443 21,159 21,900 22,666 23,459 24,280
On-Site Manager 3.5% 33,000 34,155 35,350 36,588 37,868 39,194 40,565 41,985 43,455 44,976 46,550 48,179 49,865 51,611 53,417
Assistant Manager 3.5% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Maintenance Personnel 3.5% 8,000 8,280 8,570 8,870 9,180 9,501 9,834 10,178 10,534 10,903 11,285 11,680 12,089 12,512 12,950
Other Payroll 3.5% 7,000 7,245 7,499 7,761 8,033 8,314 8,605 8,906 9,218 9,540 9,874 10,220 10,577 10,948 11,331
Insurance 3.5% 9,000 9,315 9,641 9,978 10,328 10,689 11,063 11,451 11,851 12,266 12,695 13,140 13,600 14,076 14,568
Real Estate Taxes 2.0% 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095 6,217 6,341 6,468 6,597
Painting 3.5% 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814 7,053 7,300 7,555 7,820 8,093
Repairs 3.5% 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814 7,053 7,300 7,555 7,820 8,093
Trash Removal 3.5% 10,000 10,350 10,712 11,087 11,475 11,877 12,293 12,723 13,168 13,629 14,106 14,600 15,111 15,640 16,187
Exterminating 3.5% 2,500 2,588 2,678 2,772 2,869 2,969 3,073 3,181 3,292 3,407 3,526 3,650 3,778 3,910 4,047
Grounds Maintenance 3.5% 6,000 6,210 6,427 6,652 6,885 7,126 7,376 7,634 7,901 8,177 8,464 8,760 9,066 9,384 9,712
Other Maintenance 3.5% 3,000 3,105 3,214 3,326 3,443 3,563 3,688 3,817 3,950 4,089 4,232 4,380 4,533 4,692 4,856
Elevator 3.5% 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814 7,053 7,300 7,555 7,820 8,093
Case Management 3.5% 120,000 124,200 128,547 133,046 137,703 142,522 147,511 152,674 158,017 163,548 169,272 175,196 181,328 187,675 194,243
Service Amenities 3.5% 40,000 41,400 42,849 44,349 45,901 47,507 49,170 50,891 52,672 54,516 56,424 58,399 60,443 62,558 64,748
Operating Reserve 3.5% 8,136 8,421 8,715 9,021 9,336 9,663 10,001 10,351 10,714 11,089 11,477 11,878 12,294 12,724 13,170
Replacement Reserve 3.5% 18,000 18,630 19,282 19,957 20,655 21,378 22,127 22,901 23,703 24,532 25,391 26,279 27,199 28,151 29,137
TOTAL EXPENSES 358,762 371,244 384,161 397,529 411,362 425,679 440,495 455,828 471,696 488,117 505,111 522,699 540,900 559,737 579,230
Rent Reserves Payment 2,012 4,198 6,567 9,126 11,887 14,858 18,050 21,473 25,138 29,058 33,244 37,709 42,465 47,527
NET OPERATING RENTAL INCOME 60,008 60,008 60,008 60,008 60,008 60,008 60,008 60,008 60,008 60,008 60,008 60,008 60,008 60,008 60,008
DEBT SERVICE 50,007 50,007 50,007 50,007 50,007 50,007 50,007 50,007 50,007 50,007 50,007 50,007 50,007 50,007 50,007
Asset Management Fee 3.0% 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563
Partnership Management Fee 3.0% 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439 13,842 14,258 14,685 15,126
FORECASTED CASH AVAILABLE (4,999) (5,449) (5,912) (6,390) (6,881) (7,388) (7,909) (8,447) (9,000) (9,570) (10,157) (10,762) (11,385) (12,027) (12,688)
Debt Coverage Ratio 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20
Deferred Developer Fee Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest 3.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Outstanding Fee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent Reserves Balance 303,314 301,302 297,103 290,536 281,410 269,523 254,665 236,615 215,143 190,004 160,946 127,702 89,993 47,527 0
Tiny but positive!
Final Thoughts
Our approach is replicable, and our proposal helps families and children -- a logical growth area for
permanent supportive housing.
Q&A
Thank you!
Best Western Site
Lot size (~ 1 acre) and structure (63 motel rooms) larger than needed Population study indicates ~ 30 units is right size Too large a project may alienate community, instead of
engaging it $9.8 million asking price reflects value as a going
concern Perhaps negotiable to 8-9 million, plus 1-2 million in
renovation -> total 9 – 11 million project cost Using 1.66 units per PSH unit -> 37-38 units, 25%
more than selected site High acquisition cost is penalized in competitive
loan applications; project unlikely to reach fruition
Too large, too expensive, too risky to finance
ComparablesAddress
Size (SF)
$ $/SF Comment
Dissimilar Properties3731 Colorado
Blvd.2,500
$ 750,000
$300.00
1-story commercial building, small lot
78 5,663$
1,295,000$228.6
91- and 2- story commercial
building, small lot
3570 E Foothill 108,900$
3,100,000$
28.47Large vacant parcel
Comparable Properties2176 E.
Colorado Blvd.10,019
$ 1,950,000
$194.63
1- story commercial building
1837 E. Colorado Blvd.
19,166$
2,750,000$143.4
8Apartment building
Projected Purchase PriceTheoretical $/SF Low
16,000$
2,295,680$143.4
8Theoretical $/SF High
16,000$
3,114,080$194.6
3
Average $/SF$169.0
6
Property details
Substandard apartments
Adjacent property
2915 sq ft market built 1946
216 sq ft accessory building built in 1949
(8) 1-bedrooms @ 297 sq ft Total 2,376 sq ft, built in 1957
(8) 1-bedrooms @ 434 sq ft each Total 3,472 sq ft, built in 1954
(2) 2-bedrooms @ 581 sq ft Total 1,162 sq ft, built in 1924,
remodeled in 1948)
(2) commercial buildings measuring 2,000 & 2,520 sq ft
Built in 1932
C-3 Zone Summary of Entitlements
By-Right Density 50 Units/Acre
By-Right Units 21.7 units
Density Bonus 50% Density Incentive Unit Count
32 units
By-Right Parking: One bedroom 1-1/2 spaces, two bedroom 2 spaces
At 14 one bedroom and 15 two bedroom units: 51 spaces
Density Bonus Parking Incentive: One bedroom .75 spaces/unit, Two bedroom 1.5 spaces/unit
At 14 one bedroom and 15 two bedroom units: 34 spaces
Building Height Restriction 35’
Additional Density Bonus Incentive Possibilities (3 allowed)
Additional 10’ of height OR up to 20% modification from side yard/setback requirement. Up to a 35% modification of front and rear yard/setback requirements.
Required entitlement: Conditional Use Permit for apartment building in a commercial zone
INNOVATION: Discretionary application to further reduce parking