Vallejo successor agency approves financing and renovation plan for Sereno Village Apartments

The Successor Agency to the former Vallejo Redevelopment Agency unanimously approved a resolution on a motion to authorize documents needed to refinance and renovate Sereno Village Apartments.

Chari Francisco, administrative manager at the Housing and Community Development Department, introduced Michael Rogers, a consultant with Eden Housing, who said the 126-unit property built in 2003 has aged and needs comprehensive repairs. "We got almost $17,000,000 in private tax credit equity," Rogers said, adding that Eden is contributing roughly $990,000 in sponsor equity and that construction will be paid at prevailing wages.

The resolution authorizes assignment, assumption and amendment of City of Vallejo redevelopment-agency loans to Sereno Village Associates and subordination of those loans to the project's construction and permanent lenders, enabling the tax-credit refinance that requires recasting local loans to preserve long-term affordability.

Rogers outlined the rehabilitation scope: new windows and roofs, exterior painting, upgraded trash areas, landscaping and hardscape, improved exterior lighting and a new security camera system, new flooring and upgraded bath fans to improve indoor air quality. He said about 40% of kitchens and baths will be renovated based on an architect's matrix prioritizing the worst units, and a number of units will be upgraded to meet current Americans with Disabilities Act standards.

The presenter said the project will be capitalized with an upfront replacement reserve and an ongoing replacement reserve sized by a physical-needs assessment. "We're capitalizing upfront, $1,000 a door, a replacement reserve," Rogers said. He also described a resident relocation plan for construction that uses nine vacant on-site units and will move residents in roughly eight-unit blocks for about 25 days into furnished temporary units on-site; the developer plans to hire movers and provide storage assistance.

Rogers said the housing authority provided 31 vouchers for the property, seven of which are for special-needs households, and that a robust service presence will continue at the site.

Councilmember Gordon asked whether funds will be set aside to address units that currently appear to be in decent condition but later need work; Rogers replied that the replacement reserve and capitalized funds will allow management to renovate units as needed.

Following questions, the board moved to adopt the resolution. The clerk conducted a roll-call vote; Mayor Soarscribe, Vice Mayor Matulik, Councilmember Beginzer, Councilmember Gordon, Mathias and Paul Maris voted yes. The motion carried unanimously with one council member absent. The board then closed the item and adjourned to its next housing authority meeting.

The successor agency's action clears a key local hurdle for the tax-credit refinance and capital program but does not itself start construction. The agency authorized the financing and loan-document changes that will let the project proceed to closing with construction and permanent lenders.