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Community Development Finance | Fall 2012

CDFNEWSA New Starring RoleA Hollywood-friendly hospital site will soonbecome senior apartments

One of the wonder-ful things aboutbeing part of UnionBank’s CommunityD e v e l o p m e n t Finance (CDF) group is collaboratingwith affordable housing developers whoare making a transformative impact onthe lives of thousands of people.

In San Mateo, MidPen Housing brokeground on an innovative 120-unit development. Sixty apartments will beaffordable, with 10 reserved for resi-dents with developmental disabilities.A market-rate developer will build theother 60 units, making it a truly integrated mixed-income community.

In Seattle, Mercy Housing Northwestwill soon break ground on a develop-ment for 61 families, including a non-profit fitness center to help addresshealth issues in the community.

In Los Angeles, Thomas Safran & Associates has nearly completed a 124-unit senior development, includ-ing 30 Public Housing Assisted Units.

In Sacramento, Related of California istransforming a neglected lot into a vibrant mixed-use development withlow-income senior housing and a thriving retail component.

This is only a small sample of the workour clients are accomplishing, whichwill improve the lives of thousands formany years to come.

Annette BillingsleySenior Vice President & Division Head

A historic former hospital in Los Angeles with a long list of film and TV credits will soon reopen its doors as affordable apartments for senior citizens.

The Linda Vista Community Hospital is being redeveloped by Agoura Hills-basedAMCAL Multi-Housing, Inc. and the East LA Community Corporation (ELACC)to provide housing for low-income seniors in the Boyle Heights neighborhood, neardowntown Los Angeles. Phase I of the two-phase project will convert the formernurses’ dormitory on the site into 23 senior apartments.

In 1905, the original hospital opened under a different name to serve employees ofthe Atchison, Topeka and Santa Fe Railway. The facility was razed and rebuilt in1924. Though Linda Vista Community Hospital closed in 1991, the six-story Mission Revival edifice later became popular as a setting for movies such as “PearlHarbor” and “Outbreak,” the pilot episode of TV’s “E.R.,” and numerous musicvideos. With its impressive façade and distinctive interior, the hospital provided aneerily haunted setting for mystery and science-fiction productions as well.

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A rendering of the redeveloped Linda Vista Community Hospital

S E R V I N G C A L I F O R N I A , O R E G O N A N D WA S H I N G T O N

Recent PartnerGrand Openings

Cottonwood PlaceEden Housing

Fremont, CA

Dekko PlaceCompass Housing

Seattle, WA

Hayworth HouseWest Hollywood Community

Housing Corporation

West Hollywood, CA

Mercado ApartmentsAMCAL Multi-Housing

Perris, CA

Recent PartnerGroundbreakings

Birch Hills ApartmentsJamboree Housing

Brea, CA

Ford & MontereyEden Housing

San Jose, CA

Jefferson SquareThomas Safran & Associates

Los Angeles, CA

Impact Family VillageMercy Housing Northwest

Seattle, WA

MacArthur ApartmentsAMCAL Multi-Housing

Oakland, CA

Schapiro Knolls(Formerly named MP Minto)

MidPen Housing

Watsonville, CA

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In your work with Union Bank’s Consumer Lending group, you areresponsible for two focus areas:multicultural and Community Reinvestment Act (CRA) lending,which serves low- and moderate-income (LMI) customers. How arethose two approaches connected?

If we do a good job of lending to LMIindividuals, we will generally reach agood segment of the multicultural population as well. Both approacheshelp us serve important components ofour markets, and enable us to grow asa bank while making a difference in ourcommunities.

Why is multicultural lending so important to Union Bank?

The multicultural population is growingrapidly. California, our largest market,is the first majority minority state as ofthe 2010 census. Hispanics are forecastto account for 40 percent of the estimated 12 million new households tobe created in the U.S. over the next 10years. The African-American and Asianpopulations are growing as well, with Asians already representing a thirdof the population in our home city, San Francisco.

These are significant numbers, and weare committed to understanding andlending to these diverse households.

Why is LMI lending a priority?

Union Bank is committed to meeting thecredit needs of all of our communities. It is important for us to provide tradi-tionally underserved LMI communitieswith equal access to responsible financialproducts and services.

What kind of partnerships hasUnion Bank created to help servemulticultural and LMI communities?

We have formed close partnerships withnumerous “trusted intermediaries” thatprovide education and other services tothe populations we’re working to reach.These include minority real estate tradeorganizations and community-based organizations, such as Community HousingWorks of San Diego, where I’ma member of the board of directors.

What do you find most energizingabout the work that you do?

We can make the dream of homeown-ership a reality for individuals whothink they otherwise couldn’t achieveit. There are many families in homestoday because we’ve provided themwith the right resources and the rightpartners. That makes me happy tocome into work every day. �

SpotlightInterview with Michael Innis-ThompsonSenior Vice President and Head of Community Lending

and Industry Relations. He joined Union Bank in 2010.

Creek. Approximately 15 miles away, ina very different landscape, is FoxCourts, completed in 2009 and offer-ing housing for low-income families indowntown Oakland. “When we built onthe site, it was old parking lots and autoshops,” Sawislak said. “We’ve been ableto develop in affluent communitieswhile also supporting the revitalizationof disadvantaged areas throughout theBay Area.”

Fortunately, in recent years the area surrounding Fox Courts has been completely transformed, with signifi-cant help from the City of Oakland.

Looking ahead, there’s reason for cautious optimism about affordablehousing in California, said Sawislak,who joined RCD in 1993. “This is defi-nitely one of the most difficult timesI’ve seen in the business,” he said, notingthat some in the industry compare it toa bleak stretch in the 1980s after federalhousing assistance was curtailed and before the advent of low-income housingtax credits.

Still, he believes the ongoing need for affordable housing will lead govern-ments to find replacements for redevel-opment funding, a process which willaccelerate once the economy finallyturns around. “There’s reason forhope – but it could take a little while,”he said. �

Founded in 1984, RCD has developedmore than 1,750 affordable housingunits serving more than 3,500 low-income residents, including more thana third who have special needs. RCDbegan by serving Berkeley, and has sinceexpanded to Alameda, Contra Costa,Solano and Marin counties.

“RCD is an organization that under-stands its mission, and performs it exceedingly well,” said Jonathan Klein,senior vice president of Union Bank’sCDF group and its Northern Californiamarket manager. “They have a thoughtfuland well-planned approach to meetingthe needs of their residents, and havecreated a business that is both strong andsustainable.”

A CDF client since 2006, RCD hasworked with Union Bank on six projects,recently including the Park Alameda(formerly called the Alameda Islander),which will transform a formerly blighted

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Resources for Community Development: Standing Tall in the Downturn

Alameda motel into 62 units of high-quality affordable housing just blocksfrom a vibrant commercial district.

Dan Sawislak, RCD’s Executive Director,credits the firm’s strength in part to itscapable staff of 25, who helped build arobust pipeline of projects before thedemise of redevelopment agencies inthe state earlier this year.

“We try to be very forward-thinking,looking down the road five to sevenyears,” Sawislak said. “Thanks to ourstrong portfolio, we see ourselves as sustainable even without the fundingsources we’ve lost.”

While RCD is firmly rooted in its East Bayhome base, the firm prides itself on thewide variety of communities it serves.Highlighting its versatility are two projects financed in part by CDF. In2008, RCD completed Villa Vasconcellos,a senior housing development in thethriving suburban community of Walnut

A rendering of the Park Alameda, which will transform a formerly blighted motel in Alameda, CA

The courtyard of Villa Vasconcellos in Walnut Creek, CA

Photo credit: Treve Johnson Photography

Fallout from the housing crisis and the continuing economic slow-

down have been hard on the affordable housing industry. But

one organization to not only survive but thrive during the down-

turn is Resources for Community Development (RCD), a Berkeley,

California-based housing provider showing remarkable resilience

despite the brisk headwinds.

A New Starring Role continued from page 1

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Construction on Phase I of the redevel-opment began in June 2012; the $9 million effort is expected to be completeby February 2013. Union Bank’s CDFgroup provided low-income housing tax

credit equity and historic tax credit equity investments totaling $3.9 million.Other funding sources include $4.2million in loans from the federal Neighborhood Stabilization Program(NSP), administered by the Los Angeles Housing Department.

The next phase of the Linda Vista projectwill convert patient rooms in the mainhospital building into up to 97 apart-ments. Once complete, the site will in-clude a computer lab, fitness room, andcommon areas for the broader commu-nity to enjoy. AMCAL is partnering withELACC on neighborhood outreach.

Thanks to AMCAL’s partnership withLifeSTEPS, a support service provider,residents will have free access to servicesincluding computer training, referralservices, and social events.

Plans for the redevelopment had to alignto Linda Vista’s historic features. “This site

A rendering of the redeveloped nurses’ dormitory at Linda Vista Community Hospital

MidPen Housing Invests in Santa Cruz CountyCDF recently celebrated the groundbreaking of the Schapiro Knolls projectdeveloped by MidPen Housing. Located near Watsonville, CA in Santa CruzCounty, Schapiro Knolls will provide 88 apartments as well as support services such as afterschool tutoring and vocational development. CDF provided a low-income housing tax credit investment, a construction loan anda permanent loan totaling nearly $36 million.

The project is named in honor of Erik Schapiro, a former top housing officialin the county, and expected to be completed in May of 2013. �

is listed on the National Register of Historic Places, so we’re working care-fully,” said AMCAL Project ManagerKecia Boulware. “This is not a situationwhere you gut the building and rebuildfrom a blank canvas.”

CDF Vice President Perica Bell said theproject was especially attractive toUnion Bank because it serves a closelyknit community in Boyle Heights and represents an environmentally responsible adaptive reuse. �

Plans for the redevelopment had toalign to Linda Vista’s historic features.

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CDF Invests With New Partner inWashington State

As part of its continued growth intothe Pacific Northwest, the CDF grouphas provided financing for the reha-bilitation of a senior housing complexwith a new partner, Pacific NorthernConstruction Company (PNCC). The renovation at the Tri-CourtApartments in Kent, Washington,south of Seattle, will result in 378units for low-income seniors in threebuildings along with a central foun-tain, a fitness center, communityroom and other amenities.

Hayworth House CelebratesGrand Opening

The West Hollywood CommunityHousing Corporation recently cele-brated the Grand Opening of Hay-worth House, a green renovation of aformerly abandoned 1950s apartmentbuilding. The project includes 47 affordable apartments for seniors thatincorporate a variety of sustainablefeatures, including low-flow plumb-ing fixtures and recycled decking. TheCDF group provided $15.8 million inloans and tax credit equity for the ren-ovation, and sponsored its GrandOpening celebration.

Vista Grande Named Rehab ofthe Year

Vista Grande Apartments, a family affordable housing development insoutheast San Diego, won the 2012Ruby Award for Rehabilitation Proj-ect of the Year given by the San DiegoHousing Federation. Developed byWakeland Housing & DevelopmentCorporation, Vista Grande features 49units as well as extensive supportservices for residents. The CDF groupprovided financing for the develop-ment, which celebrated its Grand Re-Opening in 2011.

Vernon Davis and EAH HousingAnnounce Renewal Project

San Francisco 49ers star Vernon Davisis working with EAH Housing to makea “positive impact.” That’s the name of

a renewal project recently announcedfor the family resource center of EAH’s Crescent Park Apartments inRichmond. The project will renovatethe facility’s kitchen, computer roomand recreation room, which will be transformed into an outdoor recreational sporting space. New computers and a community-themedmural will also be included.

The project was facilitated by CDFVice President Fiona Hsu, whohelped to connect EAH to Davis’charitable foundation.

Fair Oaks Plaza Named Award Finalist

Fair Oaks Plaza, a low-income seniorcomplex in Sunnyvale, California, hasbeen named a 2012 Readers’ ChoiceAward Finalist by Affordable HousingFinance magazine for Best Seniors development in the United States.Developed by MidPen Housing, FairOaks Plaza offers 124 affordableapartments next to a new Santa ClaraCounty health clinic.

In an innovative financing arrange-ment, CDF teamed with Google toprovide tax credit investments for theproject, located less than 10 milesfrom Google’s headquarters. FairOaks Plaza opened in 2011.

CDF Head Among San Francisco’s“Most Influential”

Annette Billingsley, CDF senior vicepresident and division head, wasnamed one of the Bay Area’s “Most Influential Women in Bay Area Business” of 2012 by the San FranciscoBusiness Times. The annual list honorswomen in the region doing the most to shape Bay Area companies and communities.

CDF Division Head Annette Billingsley standswith Wakeland Housing & Development PresidentKen Sauder at Vista Grande's Grand Re-Openingin 2011

City and community leaders join in the kick-off ofthe Positive Impact Project at EAH Housing’sCrescent Park Apartments

The Tri-Court Apartments

News Briefs

CDFNEWS200 Pringle Avenue, Walnut Creek, CA 94596

©2012 Union Bank, N.A. unionbank.com

TEAM NEWSUnion Bank’s CDF group is pleased to

announce that Elsa Rodriguez has joinedthe division’s Southern California team

as a Loan Officer. She is responsible for

underwriting and closing construction

loans and LIHTC investments.

Johanna Gullick and Jonathan Kleinhave been promoted to senior vice

president. Gullick serves as CDF’s South-

ern California market manager, while

Klein holds that position for Northern

California and the Pacific Northwest.

On CDF’s Southern California team,

Perica Bell has been promoted to vice president and Jessica Mackenziehas been promoted to assistant vice

president.

Financing subject to credit and collateral approval. Other restrictionsmay apply. Terms and conditions subject to change.

95000 (9/12)

CONTACT THE TEAMUnion Bank’s CDF group employs an expert staff with decades of experience in debt and equity financing and a passion forcommunity development. Members of the CDF team help customers navigate complex financial and regulatory issues to create affordable housing with an emphasis on smart growth and environmental sustainability. For more information, pleaseemail cdfinfo@unionbank.com or contact a member of the team directly.

ManagementAnnette BillingsleySenior Vice President Division Head(925) 947-2486

Judy Kong-CheungSenior Vice PresidentChief Financial Officer(925) 947-2457

Terce SandiferSenior Vice PresidentOriginations Manager(925) 947-2473

Chris JohnstonVice PresidentCo-Director of Asset Management(425) 452-1880

Rita WangVice PresidentCo-Director of Asset Management(925) 947-2445

Northern California & Pacific Northwest Jonathan KleinSenior Vice PresidentNorCal and Pacific Northwest Market Manager(925) 947-2461

Bryan FriendVice President (425) 452-1486

Fiona HsuVice President(925) 947-2449

Ted HolmanVice President(925) 947-2491

Debbie KoskiAssistant Vice President(925) 947-2412

Dameon PhilpottsAssistant Vice President(925) 947-3069

Angela SeitzAnalyst(925) 947-2490

Southern California

Johanna GullickSenior Vice President/ SoCal Market Manager(310) 551-8967

Brian FrankelVice President(925) 947-2479

Perica BellVice President(310) 551-8964

Jessica MackenzieAssistant Vice President(310) 551-8969

Elsa RodriguezLoan Officer(310) 551-8968