Affordable
Housing
Basics

APARTMENT & ACQUISITION PARTNERS

Tilden Properties/Setlich Capital

20 years operating apartments
$2 billion in acquisitions
Funding from Silicon Valley executive
Can move fast with strong terms
Based in San Francisco & Los Angeles
Willing to recapitalize assets and create joint ventures

Single Assets Development

A single asset corporation will purchase the building on behalf of the county, creating governmental ownership and repurpose of the building into workforce housing.

Private developer will negotiate price and terms for the building and assign that purchase and sale agreement to the corporation
Private developer responsible for project development and implementation
Corporation will be a non-profit public benefit corporation to meet governmental ownership definition

Tax Exempt Acquisition
Management

Funding of the acquisition accomplished via tax exempt project financing.

A long term, non-recourse financing supported solely by the cashflow generated from apartment rentals
All debt and equity used for financing will be encapsulated in the finance structure
Financing will cover the acquisition and related costs as well as substantial cash reserves
Given the governmental ownership, the property would be removed from the tax rolls with the resulting funds flowing to reduce debt more rapidly
After the acquisition debt is retired (approx. 35 years) the county will be able to use the asset as it sees fit
LA County used a similar approach for the development of four Health and Human Services Buildings during the early 90's

Property & Asset Management

All future project management contracted through professionals.

Program Administration & Asset Management
Property Management

Urban Low Income Apartment
Acquisition & Management

Rehabilitation and conversion of the apartments from market rate

to a mixed income workforce housing.

Assist all counties in meeting affordable housing goals
Project will use best efforts to target at mixed income community as follows:
- 1/3 of the units at 80% of Area Median Income
- 1/3 of the units at 100% of Area Median Income
- 1/3 of the units at 120% of Area Median Income

PROJECT CRITICAL STAGE

Program Troubleshooting
& Management

Timing

Program development and acquisitions is complex and time consuming which will require flexibility from all parties... including current owner
Traditional private property purchase and sale timelines are too rapid for a typical governmental body

Affordable Housing Basics