Supplemental funding for Pine View Apartments approved
Last updated 12/25/2008 at Noon
The San Diego County Board of Supervisors approved an additional $724,276 for the rehabilitation of the Pine View Apartments complex.
The supervisors’ December 10 approval allocates up to $510,000 of US Department of Housing and Urban Development (HUD) funds and up to $214,276 of Housing Authority Real Estate Reserve money.
The HUD funding is part of the county’s HOME Investment Partnerships Program allocation.
The Pine View Apartments are located in the 1100 block of Alturas Road. The 101-unit complex is currently owned and operated by Community Housing Solutions, a nonprofit subsidiary of Community Housing Works.
In September 2004 the supervisors approved a $2,623,000 allocation of HOME and Community Development Block Grant funding for the purchase and rehabilitation of the complex, which provides housing for families earning no more than 80 percent of the area median income.
One of the residential units is a three-bedroom apartment, and the remaining apartments consist of 76 two-bedroom units and 24 one-bedroom units.
The parking lot has 140 open stalls, and the complex also include recreational and physical fitness areas, a computer room and learning center, picnic areas with barbecues, a playground, and laundry facilities.
The initial financing totaled $13,114,100, including $9,000,000 of bond financing secured by Citibank.
The property was purchased for $10,900,000 after being appraised in 2004 for $10,700,000 in its existing state and $11,000,000 after the restrictive covenants.
In June 2006 the property was appraised at $9,000,000, and in March 2008 the complex was appraised at $6,740,000.
Over the past two years the county’s Department of Housing and Community Development has been involved in dialogue with Community Housing Works, Citibank, HUD, and other lien holders and lenders to identify and negotiate a plan to ensure the complex’s long-term viability with additional rehabilitation and debt restructuring.
In June 2008 the Department of Housing and Urban Development contracted with EMG Corporation to prepare a physical needs assessment of the property which identified its current condition and specific repair needs.
The assessment identified $667,548 in critical and short-term repair needs, and a seven-percent contingency was added to cover unanticipated costs along with $10,000 to cover estimated administrative expenses related to the loan processing, underwriting, and environmental review.
The conditions of the supplemental loan include a requirement that Community Housing Works invest $650,000 into the property’s rehabilitation needs and provide a clear financial strategy for anticipated refinancing of the property in 2014.
The loan will be repaid over a period of 55 years and will be secured by a deed of trust recorded against the property.
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