Attach 3 - CHW Proposal

PREPARED FOR: CITY OF HERCULES | JANUARY 14, 2026 ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? CITY??OF??HERCULES NOTICE??OF??FUNDING AVAILABILITY BAYLINE??APARTMENTS ASSESSOR’S?? PARCEL?? NO.?? 404-??490-102-5??&?? 404-490-101-??7 ?? ?? P. 619.282.6647 | F. 619.640.7119 3111 Camino del Rio North, Suite 800 | San Diego, CA 92108 chworks.org ?? ???????????????????????????????????? ???????????????????????????????????????? ?????????????????????????????????????????????????????????????? ?????????????????????????????? ?????????????????????????????????????????? ???????????????????????????????????????????????? ?????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? P. 619.282.6647 | F. 619.640.7119 3111 Camino del Rio North, Suite 800 | San Diego, CA 92108 chworks.org ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????? ???????????????????????????????????? ???????????????????????????????????? ?????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 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???????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????? ???????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????? ?????????????????????????????????????? ?????????????????????? A. DEVELOPMENT TEAM’S EXPERTISE OVERVIEW OF DEVELOPMENT ENTITY Community HousingWorks QUALIFICATIONS Community HousingWorks (CHW) is a nationally recognized 501(c)(3) nonprofit organization that believes “opportunity begins with a stable home.” Founded and headquartered in San Diego County in 1988, Community HousingWorks develops and owns life-changing affordable apartment communities with residentcentered services for working families, older adults, and people with disabilities to forge stronger futures. CHW has successfully developed new and renovated existing multi-family, affordable rental apartments in urban, suburban and rural communities in California and Texas. With 5,185 rental apartments operating in 54 communities statewide as of November 2025, and with 338 units currently in construction and another 2,500+ apartments in predevelopment, CHW proudly serves more than 12,000 residents each year. CHW is an exemplary member of the national NeighborWorks Network®, a founding member of the Housing Opportunities Collaborative, an award-winning affiliate of UnidosUS, and the national Housing Partnership Network. In addition to developing quality, cost-effective apartment communities, CHW distinguishes itself from other developers with outcome-based programs for our residents. CHW delivers innovative, nationally recognized onsite programs to residents to give people the knowledge and tools to achieve their goals and dreams. As a result, many adult residents are able to get out of debt, improve their credit, and start a practice of saving for the future, all of which are critical elements to forging pathways out of poverty. Youth have a safe place to learn and grow, to improve their reading ability, and have a better opportunity to succeed in school. Our board of directors, donors, and fund-raising programs help support the cost of these services. Community HousingWorks best illustrates our approach with the following graphic of impact on residents: North Santa Fe | Vista, CA DEVELOPER EXPERIENCE Since 1988, CHW’s Housing and Real Estate Development Department has established a successful track record as an innovative real estate developer. Our rental developments thrive both in higher income “high opportunity” communities, such as Carlsbad and suburban Poway, and also revitalize neighborhoods and change lives in urban core communities. Developments like Kalos (San Diego), North Santa Fe (Vista), Mission Cove (Oceanside), Paradise Creek (National City), La Costa Paloma (Carlsbad), and Solara (Poway) illustrate CHW’s experience with largescale new construction, complex sites, master plans, challenging site conditions from alluvial soils bordering blue line stream creeks to contaminated soil. We are experienced in construction types including Type V, Type III modified over Type I-the form that is comparable to the future of infill housing. The successful development and operation of these rental communities demonstrate our capacity to acquire, design, purchase land, obtain entitlements, finance, build and operate residential properties. Unlike some affordable housing nonprofits whose portfolio list has thousands of units where they were not the primary developer but only the tax-exempt partner to secure property tax exemptions, CHW has been the sole developer, or the lead partner, in the development of all communities in our portfolio, with the exception of Paradise Creek where we were a substantial partner. PORTFOLIO OVERVIEW In the last several years, CHW grew by over 40%, transforming itself into a powerhouse recognized by Affordable Housing Finance Magazine as number 44 of the “Top 50 Affordable Housing Developers” nationwide in 2020 (we were also selected on the list in 2014 and 2016). Community HousingWorks’ portfolio is valued at nearly $1 billion. In December 2024, CHW had Unrestricted Net Assets of $191 million. We maintain a cash position covering at least six months of operations and derive our income from diverse funding sources including governments, foundations, corporate grants, individual donors, developer fees, and asset management fees. The diversity of funding sources and business lines has allowed CHW to be resilient and grow significantly. Kalos | San Diego, CA North Park Seniors | San Diego, CA PROJECT FINANCING STRENGTH CHW has been recognized for many forms of innovation including finance, design, and resident services programming. As the 2010 recipient of Novogradac’s Journal of Tax Credits “Developments of Distinction for Innovative HUD Financing” award, CHW has clearly demonstrated our ability to innovate and create replicable templates for complex financing. We have a successful record of obtaining competitive financing from sources including private lenders, Low-Income Housing Tax Credit ( L I H T C ) investors, the U.S. Department of Housing and Urban Development (HUD), a n d the State of California. These include awards from the Transit Oriented Development (TOD), Infill Infrastructure (IIG) Program, Multi-Family Housing Program (MHP), and t h e Affordable Housing Sustainable Communities (AHSC or Cap and Trade). Additionally, CHW has won Federal Home Loan Bank’s (FHLBank) Affordable Housing Program (AHP) multiple times from both the San Francisco and Atlanta Districts. CHW has received over 30 tax credit allocations from the California Tax Credit Allocation Committee (CTCAC), and has strong access to capital, both debt and equity, from internal and third-party sources. Our financial strength and development success recently allowed us to attract an equity investment (not tax credits) of $13 million to help purchase a community of 198 apartments (NEF/Morgan Stanley Fund) in Concord, California. Undertaking: Innovative HUD Finance Exemplar: Turnagain Apartments In this acquisition and substantial renovation in Fallbrook, CHW was able to combine an unusual HUD finance program, the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA), with low-income housing tax credits. As essentially the first project to succeed in deciphering how HUD could do this in order to preserve aging, affordable apartments and extend the affordability restrictions, we created new policy at HUD. Our counsel’s brief was reviewed and accepted by HUD’s chief counsel in Washington, D.C., we were able to obtain income protection vouchers for our residents as well as a new, project-based Section 8 contract that reflected subsidy rents based on both hard and soft debt. An expected challenge was the meltdown of the financial markets: we closed financing on October 3, 2008, the day that the headlines in the Wall Street Journal read “On the edge of an abyss”. Nevertheless, we were able to continue with our lender and investor, complete the project on time and on budget, and provide improved homes for the 80 families who live there. After this project, CHW was able to use this model for two other San Diego County LIHPRHA projects and we paved the way for other affordable housing developers to be able to preserve former LIHPRHA projects. COST EFFICIENCY, SCHEDULE, AND ENTITLEMENTS CHW works with top architects to design apartment complexes that fit seamlessly into the existing community and complement and enhance the surrounding homes and neighborhoods. Our cost-effective designs are attractive and responsive to community needs and context. A study by Keyser Marston Associates, “Construction Cost Comparison Analysis – Affordable vs. Market Rate Development,” released by the San Diego Housing Commission in 2011, highlighted our cost-conscious design achievements, favorably comparing Kalos Apartments (our 83-unit, four-story, wood frame with a concrete podium in San Diego’s North Park neighborhood) to several other local developments. Undertaking: On Time, Under Budget, Stellar Costs by Industry Norms Exemplar: North Santa Fe Apartments CHW’s family development in Vista is an example of our experience and qualifications regarding cost efficiency and budget construction performance illustrating that, in addition to rehab projects, CHW excels at new construction. Constructed by Sun Country Builders, costs were below other tax credit developments. The city selected CHW through an RFQ process in July 2012. By the following June, CHW had completed full design and entitlements on a complicated site for a 68-unit podium (underground garage) construction