County approves tax-exempt bonds for Springbrook Grove Apts

The San Diego County Board of Supervisors approved the issuance of tax-exempt revenue bonds to SADI, LLC, for the acquisition, construction, and development of the Springbrook Grove Apartments.

The supervisors’ February 12 vote authorizes the California Statewide Communities Development Authority to issue up to $16 million of tax-exempt bonds to SADI, LLC, for the complex in the 400 block of Alturas Road.

The California Statewide Communities Development Authority was created to provide local governments, non-profit public benefit corporations, and private entities with access to low-cost, tax-exempt financing for projects which create jobs, help communities prosper, and improve the quality of life of local residents. Since its inception the CSCDA has issued more than $30 billion of tax-exempt bonds.

The CSCDA is a joint powers authority whose members consist of more than 470 cities, counties, and special districts. The CSCDA has statutory authority to issue bonds, notes, or other financing documents in order to promote economic development, including the provision and maintenance of multi-family housing. However, the jurisdiction in which the project is located must approve the project and the financing in order for the CSCDA to issue the financing mechanism.

SADI, LLC, was formed for the purpose of providing safe and affordable housing to California residents. The organization specializes in developing and rehabilitating affordable living communities with the use of Federal and state tax credits and tax-exempt bonds.

SADI staff oversees each phase of the development including the entitlement phase, the negotiation of terms with equity investors, the closing of construction loans, the project construction, leasing, the conversion of the construction loan to a permanent loan, and the ongoing management of the project.

The team members who comprise SADI, LLC, have completed more than 4,000 affordable units and have developed relations with numerous tax credit investors and affordable housing lenders.

Springbrook Grove will include 44 units on the 1.77 acre site. The existing structures which are considered to be deteriorated and blighted will be removed and replaced with eight two-story buildings over structured parking.

The new complex will have 26 two-bedroom and 18 three-bedroom garden style apartments and will also include public open space, a community room and computer learning center, tot lots, free Internet access, and energy-efficient appliances.

The rental fees will be based upon 30 to 60 percent of the county’s median family income.

The Board of Supervisors had originally approved issuance of the bonds on February 7, 2007, but due to a delay in receiving other funding sources for the project the bonds were not issued within one year of the previous public hearing. A new hearing was required to satisfy Internal Revenue Code requirements.

The role of the County of San Diego was to hold a public hearing and approve the issuance of the bonds. The CSCDA rather than the county will issue the bonds, and SADI, LLC, is responsible for their repayment.