HomeMy WebLinkAbout15 - Request to Commit $3 Million in Funding to American Family Housing for the Travelodge North Homekey Project at 1400 Bristol Street, Costa Mesa - PowerPoint�I
July 11, 2023
Item No. 15
REQUEST TO COMMIT
FUNDING FOR
TRAVELODGE NORTH
HOMEKEY PROJECT
Newport Beach City Council Meeting
July 11, 2023
PROPOSED TRAVELODGE NORTH
HOMEKEY PROJECT
American Family Housing in escrow to purchase site at 1400
Bristol Street, Costa Mesa
Project would convert 120-room motel into 76 permanent
supportive housing units and two manager's units
Would remain permanent supportive housing for a minimum
term of 55 years
Total estimated development cost: $45,386,520
Estimated project completion: late 2024/ early 2025
PROPOSED FUNDING SOURCES
Funding Source
Amount
Homekey Program Award
$27,700,000
Homekey - Relocation
$750,000
County of Orange HOME
$2,400,000
County of Orange MHSA
$4,421,520
City of Costa Mesa
$4,000,000
City of Newport Beach
$3,000,000
Private Loan
$3,115,000
TOTAL
$45,386,520
PROPOSED NEWPORT BEACH PARTICIPATION
$3,000,000 loan
55-year term
3.00% simple interest rate (repaid out of a portion of the
project's residual receipts)
Local preference on 12 units for Newport Beach
SUMMARY / NEXT STEPS
If funding commitment is approved, City will send letter to
American Family Housing
City funding contingent upon:
Award of funds from all other funding sources
Commitment of local preference of 12 units for Newport Beach
Successful completion of pre -acquisition, due diligence work
Should all funding be secured, staff will return to the City
Council with a loan agreement
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