Snowden House Apartments
Ossining Union Free School District April 2016
Standard Property Company (“SPC”) Overview
A national, full-service, multi-family real estate investment and management firm
SPC owns and operates more than 30 communities and 4,500 apartments in six states, serving working individuals and families, veterans, disabled citizens and seniors
Specialists in the acquisition, rehabilitation and preservation of “at-risk” affordable housing
Long-term owners and partners: three principals have more than 45 combined years of experience in the industry (see APPENDIX “Background – SPC Principals”)
Since 2010, have completed more than $600 million of property and distressed loan acquisitions, including 11 separate LIHTC transactions, consisting of nearly 2,200 units, raising over $250mm in debt and $100mm LIHTC
Offices in New York, Los Angeles, and Washington, D.C.
SPC Project Experience Lakeside Village Conversion of market rate housing to Affordable Housing 840 units in San Leandro, CA Largest Affordable Housing conversion in California history $142 million of total project costs Completed $22 million in capital improvements Full unit interior and common area upgrades Exterior remodel
SPC Project Experience – Lakeside Village Before
After
SPC Project Experience Lakeview House Long term preservation of Senior Affordable Housing property 152 Units in Bethesda, MD $48 million in total project costs Completed $4.7 million of renovations Full unit interior upgrade Common area improvements Energy efficiency upgrades Addressed all deferred maintenance New fitness center
SPC Project Experience – Lakeview House Before
After
Snowden House Apartments Property Overview
35 Snowden Avenue in Ossining (Ossining Union Free School District)
124 units of workforce Affordable Housing; 123 units covered by a HAP contract
Current HAP contract expires in 2016, making this affordable housing “at risk”
Units range from 1 bedroom apartments to 4 bedroom duplexes; very family friendly unit mix
Built in 1979, the 35+ year old property has significant deferred maintenance and physical needs
Existing building layout is inefficient, lacks the shared amenity space needed to cultivate a true “community” feel and experience
Nearly 100 of 124 current households at the community make less than 50% of the Area Median Income (“AMI”). 50 of the 124 current households make less than 30% of AMI
Snowden House Apartments serves the “very low-income” and “extremely low-income” within the Ossining community
Snowden House Apartments Location Maps 35 Snowden Avenue Ossining, NY 10562
Snowden House Apartments Existing Conditions
Snowden House Apartments Acquisition, Financing and Renovation Overview
Purchase Price: $27,500,000
Acquisition, rehabilitation and preservation as long-term (30 years) affordable housing
At closing, SPC will enter into a new 20-year Project Based HAP contract for the Project
Private activity tax-exempt volume cap bond financing and non competitive 4% LIHTC equity
Project Timeline: Closing (May 2016), Construction Start (June 2016), Completion (Summer 2017)
Upon acquisition, SPC will undertake a $5 million ($40,000 per unit) renovation; NO NEW CONSTRUCTION
Unit Upgrades: kitchens, bathrooms, energy efficient appliances and lights, flooring, cabinets, upgrade electrical panels (currently a fire hazard), etc.
Building Upgrades: new 1st floor space plan and layout, new resident lounge, new fitness center, new laundry room, new management office, back-up power system, etc.
All renovations will be “in place”; no residents will be displaced from their homes
Snowden House Apartments Affordable Housing Inventory in Ossining
There is a shortage of Affordable Housing in Ossining and Westchester County, particularly for families and households that are classified as “very low-income” (< 50% AMI) and “extremely low-income” (< 30% of AMI)
The Village of Ossining has not accepted a new applicant for a housing assistance voucher since March 2004, yet there remains over 120 applicants on the waitlist
Based on current unrestricted market rents, to avoid paying more than 30% of its gross income to rent, a household would need to earn approximately $50/hr to afford market rent on a 3-bedroom apartment in the Ossining area
Snowden House itself maintains waitlist with over 100 applicants currently
Current median hourly wage per household in the Ossining area is estimated at $32/hr
Ossining has recognized its need for more affordable housing. Newly built apartment buildings are required to set aside 10% of the apartments as “affordable”. However, “affordable” under these guidelines is defined < 80% AMI
Snowden House Apartments Community Impact
Labor Force Preservation: 52% of the labor force within Ossining works in the service, labor, transportation, and administration sectors
Generally, these are low paying, yet highly localized, occupations that would be at risk if local housing is not available
Diversity in the Ossining Union Free School District is important.
Based on conversations with Ossining officials, the families that populate Snowden House bring a diversity of backgrounds and experiences to the school system that would otherwise be lacking.
Employment Impact
A Westchester based Architect has been retained for the Project
The Albany based General Contractor anticipates 100+ construction jobs will be created
Subcontractors, Suppliers and Service Contractors will be sourced locally, when feasible
Expected Staffing Plan - 4 employees, two full time and two part-time. management on-site (no current on-site management staff)
Will bring
Request for Support 1.) General Community Support A request has been made to Westchester County Industrial Development Agency (the “IDA”) for private activity tax-exempt volume cap bond financing which will allow the Project to qualify for “by-right” 4% Low Income Housing Tax Credits. Also, mortgage recording and sales use tax relief have been requested from the IDA.
2.) Extension of current Payment in Lieu of Taxes (“PILOT”) benefits Snowden has been a straight lease Project with the IDA since 2006 and the current PILOT agreement runs thru 2026. SPC has made a request to the Village of Ossining, Town of Ossining and Ossining Union Free School District to assign and extend the current abatement of real property taxes. Alongside SPC, debt and equity partners are making 15+ year commitments to maintain the Project as quality workforce Affordable Housing, therefore they bear much of the risk associated with the Project longterm. In order to make the necessary long-term ownership commitments to the Project, our capital partners require certainty on the future of real property taxes. PILOT payments equal the greater of (i) 10% of the annual Shelter Rent of the Project, or (ii) Fifty Thousand Dollars ($50,000.00) per annum, based on one hundred percent occupancy, to be reduced pro rata to the extent occupancy is less.
APPENDIX
Background - SPC Principals
14 www.standardproperty.com
SPC Principals Joe Ouellette Joined Standard Property Company in 2015 as a Partner Over 15 years experience in the apartment industry, has played an integral role in the acquisition, redevelopment and asset management of nearly 16,000 apartment units, valued in excess of $1 billion, located throughout the United States and Puerto Rico Formerly, Vice President of Transactions at Aimco, a real estate investment trust (REIT) and one of the nation’s largest owners and operators of market rate and affordable housing Received a B.S. in Finance from Virginia Polytechnic Institute and State University, and a M.S. in Real Estate from Johns Hopkins University, Carey Business School Current Board Member of Alexandria Housing Development Corporation, a Virginia based non-profit focused on the development and ownership of affordable housing in the City of Alexandria, Virginia Current Board Member of the City of Alexandria Affordable Housing Advisory Committee, which advises the City Council on issues regarding the maintenance and promotion of affordable housing, makes recommendations for policies governing the expenditures of the City's Housing Trust Fund monies, and oversees the administration of the Trust Fund
SPC Principals Scott J. Alter
Co-founder of Standard Property Company
Formerly, an investment professional at Stockbridge Real Estate Funds, a $2.7 billion real estate opportunity fund at the time of his departure
Prior to joining Stockbridge, Mr. Alter worked as a Financial Analyst in Merrill Lynch & Co.’s real estate, hospitality and leisure investment banking division
Received a B.S. in Industrial and Labor Relations from Cornell University with a concentration in Labor Economics and Finance
Current Board Member of Housing on Merit, a California based non-profit focused on providing housing for homeless, female veterans
Current Board Member of The Giving Circles Fund, a movement of Next Gen philanthropists who utilize the power of collective action to create lasting change
SPC Principals Jeffrey E. Jaeger
Co-founder of Standard Property Company
Co-founder and former Chief Operating Officer of Jackson Square Properties, a value-added investment company with over 10,000 apartments and 1,000 mobile home park units at the time of departure
Prior to joining JSP, worked in the capital transactions department at Lend Lease Real Estate Investments
Licensed California Real Estate Broker
Holds a Bachelor of Arts degree from the University of California, Berkeley
Current Board Member of Housing on Merit, a California based non-profit focused on providing housing for homeless, female veterans
Current Board Member of Inner City Arts, one of the nation's most effective arts education providers in the heart of Skid Row, Los Angeles, CA
Advisory Board Member of Banc of California (NYSE: BANC)
