Project Number
CA-23-658
Project Name
Oceanview Garden Apartments
Site Address:
Site 1 Site 2
819 Hearst Avenue 1816 6th Street
Berkeley, CA 94710 Berkeley, CA 94710
County: Alameda County: Alameda
Census Tract: 4220.00 Census Tract: 4220.00
Site 3
1721 5th Street
Berkeley, CA 94710
County: Alameda
Census Tract: 4220.00
Tax Credit Amounts Federal/Annual
*
Requested:
Recommended:
Applicant Information
Applicant: OAHS West Manager LLC
Contact: Jay Reinhard
Address: 980 Sylvan Ave
Englewood Cliffs, NJ 7632
Phone:
Email: jay@OAHSaffordable.com
General Partner(s) or Principal Owner(s): OAHS West Manager LLC
Kingdom Development, Inc.
General Partner Type: Joint Venture
Parent Company(ies): Orbach Affordable Housing Solutions LLC
Kingdom Development, Inc.
Developer: Orbach Affordable Housing Solutions
Bond Issuer: CalHFA
201-242-4800
CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE
Project Staff Report
Tax-Exempt Bond Project
December 6, 2023
Oceanview Garden Apartments, located at 819 Hearst Ave; 1816 6th Street; 1721 5th Street in Berkeley,
requested and is being recommended for a reservation of $1,756,090 in annual federal tax credits to finance
the acquisition & rehabilitation of 61 units of housing serving tenants with rents affordable to households
earning 30%-60% of area median income (AMI). The project will be developed by Orbach Affordable
Housing Solutions and is located in Senate District 9 and Assembly District 14.
Oceanview Garden Apartments is a re-syndication of an existing Low Income Housing Tax Credit (LIHTC)
project, Ocean View Garden Apartments (CA-2003-921). See Resyndication and Resyndication Transfer
Event below for additional information. The project will be receiving rental assistance in the form of HUD
Section 8 Project-based Vouchers.
State/Total
$0
$0
$1,756,090
$1,756,090
CA-23-658 1 December 6, 2023
Investor/Consultant: Berkadia
Management Agent: Orbach Affordable Management
Project Information
Construction Type:
Acquisition & Rehabilitation
Total # Residential Buildings: 13
Total # of Units: 62
No. / % of Low Income Units: 61
Federal Set-Aside Elected: 40%/60%
Federal Subsidy:
Information
Housing Type:
Geographic Area:
CTCAC Project Analyst:
55-Year Use / Affordability
Unit Mix
18 1-Bedroom Units
32 2-Bedroom Units
12 3-Bedroom Units
62 Total Units
14 1 Bedroom
1 1 Bedroom
3 1 Bedroom
21 2 Bedrooms
4 2 Bedrooms
4 2 Bedrooms
6 3 Bedrooms
2 3 Bedrooms
3 3 Bedrooms
1 3 Bedrooms
Unit Type
& Number
Non-Targeted
Nick White
$1,923
41
Proposed Rent
(including
utilities)
Percentage of
Affordable Units
100.00%
East Bay Region
Tax-Exempt / HUD Section 8 Project-based Vouchers (61 Units - 100%)
Aggregate
Targeting
13
30% AMI:
50% AMI:
60% AMI:
$1,153
21%
11%
67%
Number of
Units
$0
$2,307
$999
$1,665
$1,387
$1,665
7
$832
$1,998
CA-23-658 2 December 6, 2023
Project Cost Summary at Application
Land and Acquisition
Construction Costs
Rehabilitation Costs
Construction Hard Cost Contingency
Soft Cost Contingency
Relocation
Architectural/Engineering
Const. Interest, Perm. Financing
Legal Fees
Reserves
Other Costs
Developer Fee
Commercial Costs
Total
Residential
Construction Cost Per Square Foot:
Per Unit Cost:
True Cash Per Unit Cost*:
Source Source
Berkadia: Tax-Exempt Berkadia: Tax-Exempt
Berkadia: Taxable Berkadia: Taxable
Berkadia: Bridge Net Operating Income
Net Operating Income Developer Fee Contribution
Developer Fee Contribution Deferred Developer Fee
Deferred Developer Fee Tax Credit Equity
Tax Credit Equity
TOTAL
*Less Fee Waivers, Seller Carryback Loans, and Deferred Developer Fee
Determination of Credit Amount(s)
Requested Eligible Basis (Rehabilitation):
130% High Cost Adjustment:
Requested Eligible Basis (Acquisition):
Applicable Fraction:
Qualified Basis (Rehabilitation):
Qualified Basis (Acquisition):
Applicable Rate:
Maximum Annual Federal Credit, Rehabilitation:
Maximum Annual Federal Credit, Acquisition:
Total Maximum Annual Federal Credit:
Approved Developer Fee in Project Cost:
Approved Developer Fee in Eligible Basis:
Investor/Consultant:
Federal Tax Credit Factor:
State Tax Credit Factor:
Amount
$24,000,000
$5,400,000
$557,384
$329,438
$5,400,000
$6,243,832
$225,731
$630,256
$6,400,904
$0
$2,933,065
$472,147
$668,934
Amount
$330,140
$750,815
$127
$756,091
$562,257
Construction Financing
$557,384
$693,127
$10,000,000
$329,438
$24,000,000
$677,127
Permanent Financing
$47,207,781
$16,243,832
$9,572,225
No
$34,334,853
100.00%
$9,572,225
$34,334,853
4.00%
$382,696
$1,373,394
$1,756,090
$2,933,065
$2,883,544
Berkadia
$0.92500
$0.00000
$47,207,781
$210,000
$1,504,487
$100,000
$33,169,860
CA-23-658 3 December 6, 2023
As required by the IRS, the newly resyndicated project will continue to use the originally assigned Building
Identification Numbers (BINs).
The newly resyndicated project shall continue to meet the rents and income targeting levels in the existing
regulatory agreement(s) and any deeper targeting levels in the new regulatory agreement(s) for the duration
of the new regulatory agreement(s). Existing households determined to be income-qualified for purposes of
IRC §42 credit during the 15-year compliance period are concurrently income-qualified households for
purposes of the extended use agreement. As a result, any household determined to be income qualified at
the time of move-in under the existing regulatory agreement (CA-03-921) is a qualified low-income household
for the subsequent allocation (existing household eligibility is “grandfathered”).
The project is a resyndication where the existing regulatory agreement requires service amenities. The
project shall provide a similar or greater level of services for a period of at least 15 years under the new
regulatory agreement. The project is deemed to have met this requirement based on CTCAC staff’s review
of the commitment in the application. The services documented in the placed in service package will be
reviewed by CTCAC staff for compliance with this requirement at the time of the placed in service
submission.
The project is a resyndication occurring concurrently with a Transfer Event with distribution of Net Project
Equity. The rehabilitation scope of work shall include all of the Short Term Work in the amount of $329,428.
There is a Developer Fee Contribution of at least $329,428, allowing the applicant to receive eligible basis for
the entire Short Term Work amount
The applicant has requested and been granted a waiver to reduce the 10% mobility feature requirement
under CTCAC Regulation Section 10325(f)(7)(K) down to 5%.
Resyndication and Resyndication Transfer Event
Prior to closing, the applicant or its assignee shall obtain CTCAC's consent to assign and assume the
existing Regulatory Agreement (CA-03-921). To be eligible for a new award of tax credits, the owner must
provide documentation with the Form 8609 request (the placed in service submission) that the acquisition
date and the placed in service date both occurred after the existing federal 15 year compliance period was
completed. For resyndications that were originally rehabilitation and acquisition, the resyndication acquisition
date cannot occur before the last rehabilitation credit year of the original credit period.
Significant Information / Additional Conditions
This project involves the substantial rehabilitation of 3 scattered-site buildings located in the city of Los
Angeles.
At place-in-service, any units not occupied by income-qualified tenants will be not considered tax credit units
and the applicable fraction will be adjusted accordingly. However, these units will be rent-restricted at 60% of
area median income (AMI) in the recorded CTCAC regulatory agreement in order to meet the scattered-site
requirement of Section 42(g)(7) of the Internal Revenue Code. The recorded CTCAC regulatory agreement
will also require that upon turnover the unit(s) must be occupied by income-qualified tenants.
Except as allowed for projects basing cost on assumed third party debt, the “as if vacant” land value and the
existing improvement value established at application for all projects, as well as the eligible basis amount
derived from those values, shall not increase during all subsequent reviews including the placed in service
review, for the purpose of determining the final award of Tax Credits. The sum of the third party debt
encumbering the property may increase during subsequent reviews to reflect the actual amount.
CA-23-658 4 December 6, 2023
Standard Conditions
The applicant/owner is required to comply with the CDLAC Resolution. At the time of the CTCAC placed in
service review, CTCAC staff will verify that the project is in compliance with all applicable items of CDLAC
Resolution Exhibit A.
The applicant must pay CTCAC a reservation fee calculated in accordance with regulation. Additionally,
CTCAC requires the project owner to pay a monitoring fee before issuance of tax forms.
CTCAC makes the preliminary reservation only for the project specified above in the form presented, and
involving the parties referred to in the application. No changes in the development team or the project as
presented will be permitted without the express approval of CTCAC.
State tax credit recipients are limited to cash distributions from project operations pursuant to California
Revenue and Taxation Code Section 12206(d). By accepting the tax credit reservation, the applicant/owner
is agreeing to comply with the statutory limitations and requirements.
The applicant anticipates financing more than 50% of the project aggregate basis with tax-exempt bond
proceeds as calculated by the project tax professional. Therefore, the federal credit reserved for this project
will not count against the annual ceiling.
If applicant is receiving tax-exempt bond financing from other than CalHFA, the applicant shall apply for a
bond allocation from the California Debt Limit Allocation Committee’s next scheduled meeting, if not
previously granted an allocation; shall have received an allocation from CDLAC; and, shall issue bonds within
time limits specified by CDLAC.
CDLAC Additional Conditions
Credit awards are contingent upon applicant's acceptance of any revised total project cost, qualified basis
and tax credit amount determined by CTCAC in its final feasibility analysis.
The applicant/owner shall be subject to underwriting criteria set forth in Section 10327 of the regulations
through the final feasibility analysis performed by CTCAC at placed-in-service.
If the applicant has requested the use of a CUAC utility allowance, CTCAC's Compliance staff will review the
CUAC documentation for this project prior to placed in service. Until written approval is received from
CTCAC, this project is not eligible to use a utility allowance based on the CUAC.
All fees charged to the project must be within CTCAC limitations. Fees in excess of these limitations will not
be considered when determining the amount of credit when the project is placed-in-service.
All unexpended funds in reserve accounts established for the project must remain with the project to be used
for the benefit of the property and/or its residents, except for the portion of any accounts funded with deferred
developer fees.
As project costs are preliminary estimates only, staff recommends that a reservation be made in the amount
of federal credit and state credit shown above on condition that the final project costs be supported by
itemized lender approved costs and certified costs after the buildings are placed in service.
CA-23-658 5 December 6, 2023
If points were awarded by CDLAC for housing type, the project shall comply with the housing type
requirements at the time of CTCAC’s Placed In Service review. The housing type requirement shall be
conditioned in the CTCAC Regulatory Agreement and CTCAC Compliance staff shall verify the project is
meeting those housing type requirements, consistent with California Code of Regulations, title 4, section
10322(i).
CA-23-658 6 December 6, 2023