higuera-heights-finalreport

BANK OF AMERICA
AFFORDABLE HOUSING CHALLENGE
2014
CALIFORNIA POLYTECHNIC STATE UNIVERSITY
SAN LUIS OBISPO
LIVE SLO | HOUSING STUDIO

3
HIGUERA HEIGHTS
LIVE SLO HOUSING STUDIO
ACKNOWLEDGEMENTS
The Bank of America Affordable Housing Challenge has been a great opportunity to learn
about the process of affordable housing development. This interdisciplinary competition
mimics the collaborative nature of the development process, where developers, architects,
planners, landscape architects and other disciplines all play vital roles in delivering high qual-
ity affordable housing. Throughout the design process, Live SLO Housing Studio has received
expert guidance and assistance from a number of teachers, professionals, and advisors. We
would like to acknowledge the following individuals for their support and encouragement:
Rob Rossi Owner, Rossi Enterprises
Tyler Corey Housing Programs Manager, SLO Housing Authority
Hemalata Dandekar Department Head, City and Regional Planning, Cal Poly SLO
Menke Sethi Lecturer, Business, Cal Poly San Luis Obispo
Marcus Carloni Associate Planner, San Luis Obispo Community Development
Ken Trigueiro Director of Real Estate Finance, People’s Self Help Housing
Lori Saito Vice President, Wells Fargo Bank San Francisco
Karen Davis Community Development Banker, Bank of America
Suzan Ehdaie County of San Luis Obispo
Kent MacDonald Lecturer, Architecture, Cal Poly San Luis Obispo
William “Billy” Riggs Planning Commissioner, San Luis Obispo
Michael Multari Planning Commissioner, San Luis Obispo
Craig Gillet Founder and Board Partner, LifeSTEPS
Jenna Smith Executive Director, Central Coast Grown
Steve Carlin CEO, The Carlin Company and Oxbow Public Market
Mark Shaffer FunRide, Inc.
Vickey Farley Executive Assistant, Rossi Enterprises

5
HIGUERA HEIGHTS
TABLE OF CONTENTS
1. Project Overview 1
2. Executive Summary 3
3. The Market 3
Income and Employment Characteristics 3
Housing Characteristics 3
Need Analysis 4
Project Need 4
4. The Site 7
Location 7
Site Context 8
5. Entitlements 9
Regulatory Context 9
Entitlements and Permit Process 10
Concessions 10
Environmental Review 11
6. Design Concept 13
Design Overview 13
SLO Grown Market 14
Office Space 14
Floor Plans 16
Building Elevations 20
Building Perspective 22
7. Sustainable Construction 25
LEED Project 27
Materials Selection 28
Native and Drought Tolerant Landscape 32
8. Resident Amenities and Services 33
Amenities 33
Resident Services 33
9. Community Engagement 35
Predevelopment 35
Construction 35
Post-Construction and Outreach 35
10. Financing Structure 37
11. Development Timeline 47
12. Developer Capacity 49
13. Live SLO Housing Studio 50
14. Appendix 52

6
BANK OF AMERICA AFFORDABLE HOUSING CHALLENGE 2014
THIS PAGE INTENTIONALLY LEFT BLANK.

1
HIGUERA HEIGHTS
1. PROJECT OVERVIEW
Developer
Rob Rossi
Location
1105 Higuera Street
San Luis Obispo, CA 93401
Total Site Acreage
0.97 Total acres
0.97 Developable
Key Financing Sources
Seller Carry Back Note
Construction to Permanent Loan
Slo County Housing Trust
Federal LIHTC
Deferred Development Impact Fee
Homefunds SLO
Federal Home Loan Bank
Unit Type
Rental 98% Affordable
Total Units
51 Apartments
Unit Breakdown
14 Studios
20 Two Bedroom Apartments
16 Three Bedroom Apartments
1 Manager Studio
Target Population
Low-income service working families
Total Commercial Space
49,670 sq. ft. of total commercial
38,670 sq. ft. of developable commercial
Commercial Space Breakdown
5,560 sq. ft. Ground floor vendor
10,220 sq. ft. Ground floor retail
12,000 sq. ft. Second floor office
10,800 sq. ft. Third floor office
Amenities
Community Lounge
Computer Lab
Study Room
Fitness Center
Bike Storage
Private Interior Courtyard with BBQ
On-site Car Sharing
Covered Parking

2
CALIFORNIA POLYTECHNIC STATE UNIVERSITY2
2. EXECUTIVE SUMMARY
Live SLO Housing Studio, in partnership with Rob Rossi, presents Higuera Heights, a new
mixed-use affordable housing development in Downtown San Luis Obispo. Higuera Heights
will augment the surrounding community, as it will offer a range of amenities to the area,
including affordable housing, and commercial spaces. Taking advantage of its unique location,
Higuera Heights will serve as a gateway to the City’s downtown area.
San Luis Obispo (SLO) is a city of approximately 45,000 residents, located on the Central Coast
of California. San Luis Obispo is the largest city and County seat of San Luis Obispo County.
San Luis Obispo County is bordered by Monterey County to the north, Santa Barbara County
to the south, and Kern County to the east. The City is approximately ten miles from the Pacific
Ocean, and as a result, enjoys mild, warm weather for at least three seasons of the year. It
is home to California Polytechnic State University (Cal Poly), which enrolls approximately
19,000 students and focuses on “learn by doing”. The City has a large population of people
between the ages of 20 and 24, due to the presence of the University. High housing demand
from students and retirees means that housing is notoriously expensive, and the available
housing stock is limited. The Oprah Winfrey Show famously dubbed the City “America’s
happiest town” in 2011. However, with so many people unable to find an affordable place to
live, due to high rental costs, the City may have simply priced-out those who are struggling
to make ends meet.
PROJECT GOALS
Higuera Heights will provide low-cost housing opportunities for downtown workers making
approximately $20,000-$50,000 per year, thus making the City accessible to lower income
families. Live SLO Housing studio intends to extend the envelope of the pedestrian downtown
area across Santa Rosa Street by increasing density and attracting pedestrians outside the
existing heavily pedestrian zone. The project is designed to maintain an aesthetic that is not
too bold for San Luis Obispo’s traditional minded residents. The design is intended to be
reviewed favorably by the City’s laters of review committees, but also to be contemporary
and appealing to the younger demographic. The architecture ensures that all residents have
access to light and air, as well as to indoor facilities that they would use on a daily or weekly
basis for recreational and educational purposes. The project aims to satisfy both the needs
of the onsite residents and the surrounding community. It will provide spaces for businesses
and a permanent sustainable local and regional food market to ensure a healthy and diverse
food supply.

3
HIGUERA HEIGHTS
THE MARKET3. INCOME AND EMPLOYMENT
CHARACTERISTICS
Approximately 30% of SLO residents are be-
low the poverty level, a figure that is almost
double that of any other jurisdiction within
the county. As of the most recent American
Community Survey (2008-2012), the me-
dian household income in San Luis Obispo
was $46,651, while the average per-capita
income was $27,400.
Cal Poly is the City’s largest employer, and
as a result, approximately 24% of the city’s
25,576 employed residents work in the “ed-
ucational, health and social” sector. The next
largest industries are “retail” at 16%, and
“arts, entertainment and recreation, and ac-
commodation and food service” at 15% of
workers. The large percent of employees in
the latter two industries demonstrates the
importance of the service sector to the City’s
economy. Approximately 70% of workers
drove alone to work, while 10% used a car-
pool or vanpool. Just 2.9% took public trans-
portation, while 8% walked and 5% took
“other means”. The average commute time
was 15.4 minutes. According to the 2013
SLO Regional Housing Needs Plan, the City
is the largest job center in the County, with
an estimated 33,000 jobs. This leads to an
average of 1.71 jobs per household, and .73
jobs per person. With high housing costs in
SLO, many downtown workers choose to
commute from more affordable surround-
ing communities, including Paso Robles (29
miles away), Atascadero (17 miles away),
and Santa Maria (33 miles away).
HOUSING CHARACTERISTICS
In 2010, there were a total of 19,193 house-
holds in the City, with an average household
size of 2.29 persons. Over half (11,581) of
these households were “non-family” house-
holds, meaning that members of the house-
hold did not constitute a family unit. Approx-
imately 60% percent of housing units were
renter-occupied, while the remaining 39%
were owner-occupied. Table 1 provides the
average monthly rent in the City, as a per-
centage of household income in the past 12
months.
Table
2:
Monthly
Income
of
Renters
and
Rent-‐burden
Status

Income

Renter-‐occupied
housing
%
rent-‐burdened

Less
than
$20,000
38.7%

38.2%

$20,000
to
$34,999
19.5%

16.6%

$35,000
to
$49,999
11.5%

4.7%

$50,000
to
$74,999
14.5%

4.6%

$75,000
or
more
10.3%

1%

Zero
or
negative
income
0.6%

No
cash
rent
4.9%

Total

100%
60.5%

Households
paying
more
than
30%
of
their
income
towards
rent
are
considered
to
be
“burdened”
by

their
rent
payments.

Thirty-‐eight
point
seven
percent
of
renter-‐occupied
households
in
San
Luis
Obispo

earned
less
than
$20,000
dollars
per
month,
and
almost
all
of
those
(98.7%),
were
rent
burdened.
Of

households
earning
$20,000
to
$34,999,
85%
were
rent
burdened.
Of
households
earning
$35,000
to

$49,999,
40.9%
were
rent-‐
burdened.
Over
60%
of
SLO
residents
were
rent-‐burdened,
totaling
almost

30,000
people.
This
indicates
that
the
majority
of
the
population
in
the
City
struggles
to
pay
their
rent,

with
the
low-‐
and
medium
income
households
being
the
most
burdened.

Source: US Census American Community Survey (2008-2012)
Table 1: Monthly Income of Renters and Rent-burdened Status

4
THE MARKET3.
Households paying more than 30% of their
income towards rent are considered to be
“burdened” by their rent payments. Thirty-
eight point seven percent of renter-occupied
households in San Luis Obispo earned less
than $20,000 dollars per month, and almost
all of those (98.7%), were rent burdened.
Of households earning $20,000 to $34,999,
85% were rent burdened. Of households
earning $35,000 to $49,999, 40.9% were
rent- burdened. Over 60% of SLO residents
were rent-burdened, totaling almost 30,000
people. This indicates that the majority of
the population in the City struggles to pay
their rent, with the low- and medium income
households being the most burdened. This
indicates that there is a great need for afford-
able housing in SLO.
NEEDS ANALYSIS
The regional housing need allocation (RHNA)
is the share of regional housing needs that
is expected to be borne by each jurisdiction
within the region. Table 2 shows SLO’s re-
gional housing need allocation by income
level. Approximately 41% of the units allo-
cated to SLO through the RHNA are “above
moderate”, demonstrating the dire need for
market rate housing in SLO. Table four shows
the maximum monthly rent for various hous-
ing types which is affordable to low- and
moderate-income groups.
Table 4 shows actual average rents for vari-
ous housing types within a .43 miles radius
of the project site in San Luis Obispo.
When the maximum monthly rent affordabil-
ity standards are compared to the prevailing
rents near the project site, the need for af-
fordable housing in this area becomes very
clear. Only “moderate” income households
can afford market rate housing near the proj-
ect site. All income groups lower than moder-
ate could not afford housing at market rates.
A typical three person moderate-income
household in SLO County can earn up to
$81,450 per year, and still qualify for subsi-
dized housing. These households can likely
afford market-rate housing in the area, so the
project does not focus on them. Instead, the
project will focus on providing a mix of hous-
ing for very-low, and lower- income house-
holds, as well as some moderate-income
units.
Table 5W shows the State Income limits for
various income groups in San Luis Obispo
County. These categories are calculated based
on a percentage of the Area Median Income
(AMI), which is $75,400 in SLO County.
PROJECT NEED
This project seeks to serve the housing needs
of downtown service workers, entry-level
professionals, and anyone who works in SLO
but cannot afford its high rents and com-
mutes from a more affordable city. These are
the people who cook meals, clean streets,
wait at retail stores, answer calls and process
permit applications. Workers of this type in
SLO can earn anywhere from $10 to $25 per
Table
2:
Monthly
Income
of
Renters
and
Rent-‐burden
Status

Income

Renter-‐occupied
housing
%
rent-‐burdened

Less
than
$20,000
38.7%

38.2%

$20,000
to
$34,999
19.5%

16.6%

$35,000
to
$49,999
11.5%

4.7%

$50,000
to
$74,999
14.5%

4.6%

$75,000
or
more
10.3%

1%

Zero
or
negative
income
0.6%

No
cash
rent
4.9%

Total

100%
60.5%

Households
paying
more
than
30%
of
their
income
towards
rent
are
considered
to
be
“burdened”
by

their
rent
payments.

Thirty-‐eight
point
seven
percent
of
renter-‐occupied
households
in
San
Luis
Obispo

earned
less
than
$20,000
dollars
per
month,
and
almost
all
of
those
(98.7%),
were
rent
burdened.
Of

households
earning
$20,000
to
$34,999,
85%
were
rent
burdened.
Of
households
earning
$35,000
to

$49,999,
40.9%
were
rent-‐
burdened.
Over
60%
of
SLO
residents
were
rent-‐burdened,
totaling
almost

30,000
people.
This
indicates
that
the
majority
of
the
population
in
the
City
struggles
to
pay
their
rent,

with
the
low-‐
and
medium
income
households
being
the
most
burdened.

Needs
Analysis

The
regional
housing
need
allocation
(RHNA)
is
the
share
of
regional
housing
needs
that
are
expected
to

be
borne
by
each
jurisdiction
within
the
region.
Table
two
shows
SLO’s
regional
housing
need
allocation

by
income
level.

41.8%
of
the
units
allocated
to
SLO
through
the
RHNA
are
“above
moderate”,

demonstrating
the
dire
need
for
housing
that
is
affordable
to
people
making

Table
3:
San
Luis
Obispo
Housing
Need
Allocation
by
Income
Level

Income
Level
Very
Low
Low
Moderate

Above

Moderate

Total

Number
of
Units
285
179
201
478
1,144

Percent
of
Units
24.9%
15.6%
17.6%
41.8%
100%

Table
three
shows
the
maximum
monthly
rent
for
various
housing
types
which
is
affordable
to
low
and

moderate
income
groups.

Table
4:
Maximum
Monthly
Rent
Affordability
Standards

Dwelling
Size

Income
Group
Studio
1
Bedroom
2
Bedroom
3
Bedroom
4
Bedroom

Extremely
Low
$396
$452
$509
$588
$656

Source: San Luis Obispo County Regional Housing Needs Assessment, 2012
Table 2: San Luis Obispo Housing Need Allocation by Income
Level

5
HIGUERA HEIGHTS
Percent
of
Units
24.9%
15.6%
17.6%
41.8%
100%

Table
three
shows
the
maximum
monthly
rent
for
various
housing
types
which
is
affordable
to
low
and

moderate
income
groups.

Table
4:
Maximum
Monthly
Rent
Affordability
Standards

Dwelling
Size

Income
Group
Studio
1
Bedroom
2
Bedroom
3
Bedroom
4
Bedroom

Extremely
Low
$396
$452
$509
$588
$656

Very
Low
$660
$754
$848
$980
$1,093

Low

$792
$905
$1,018
$1,176
$1,312

Moderate
$1,100
$1,256
$1,256
$1,634
$1,822

Source: City of San Luis Obispo, Housing Element of the General Plan, 2010
Table
three
shows
actual
average
rents
for
various
housing
types
within
a
.43
miles
radius
of
the
project

site
in
San
Luis
Obispo.

Table
5:
Average
Monthly
Rents
within
.43
miles
of
project
site

Dwelling
Size

Studio
1
Bedroom
2
Bedroom
3
Bedroom
4
Bedroom

Rent
($)
839
1,018
1,422
2,164
2,400

Source:
rentometer.com

When
the
maximum
monthly
rent
affordability
standards
are
compared
to
the
prevailing
rents
near
the

project
site,
the
need
for
affordable
housing
in
this
area
becomes
very
clear.

Only
“moderate”
income

households
can
afford
market
rate
housing
near
the
project
site.
All
income
groups
lower
than

moderate
could
not
afford
housing
at
market
rates.

Table
four
shows
the
State
Income
limits
for
various
income
groups
in
San
Luis
Obispo
County.
These

categories
are
calculated
based
on
a
percentage
of
the
Area
Median
Income
(AMI),
which
is
$75,400
in

SLO
County.

Table
6:
Income
Limits
by
Family
Size
in
SLO
County

Family

Size

1
2
3
4
5
6
7
8

Extremely

Low
($)

15,850
18,100
20,350
22,600
24,450
26,250
28,050
29,850

Very
Low

($)

26,400
30,200
33,950
37,700
40,750
43,750
46,750
49,800

Lower
($)
42,250
48,250
54,300
60,300
65,150
69,950
74,800
79,600

Median

($)

52,800
60,300
67,850
75,400
81,450
87,450
93,500
99,550

Moderate

($)

63,350
72,400
81,450
90,500
97,750
105,000
112,200
119,450

A
typical
three
person
moderate-‐income
household
in
SLO
County
can
earn
up
to
$81,450
per
year.

These
households
can
likely
afford
market-‐rate
housing
in
the
area,
so
our
project
will
not
focus
on

them.
Instead,
the
project
will
focus
on
providing
a
mix
of
housing
for
“very-‐low”,
and
“lower”
income

households,
as
well
as
some
moderate-‐income
units.

Project
need

This
project
seeks
to
serve
the
housing
needs
of
downtown
service
workers,
entry-‐level
professionals,

and
anyone
who
works
in
SLO
but
cannot
afford
its
high
rents
and
would
otherwise
choose
to
commute

from
a
more
affordable
city.
These
are
the
people
who
cook
our
meals,
clean
our
streets,
wait
on
us
at

retail
stores,
answer
our
calls
and
process
our
permit
applications.
Workers
of
this
type
in
SLO
could

earn
anywhere
from
$10
to
$25
per
hour,
which
would
equate
to
approximately
$20,000
to
$50,000
per

year.
A
single
person
earning
$15/hour
would
qualify
as
“lower”
income
in
SLO
County,
while
a
couple

both
earning
$10/
hour
would
qualify
as
“very
low”.

These
workers
are
vital
to
the
functioning
of
the

City,
but
their
needs
are
not
being
met
by
the
current
housing
regime.
There
should
be
no
problem

Table
three
shows
actual
average
rents
for
various
housing
types
within
a
.43
miles
radius
of
the
project

site
in
San
Luis
Obispo.

Table
5:
Average
Monthly
Rents
within
.43
miles
of
project
site

Dwelling
Size

Studio
1
Bedroom
2
Bedroom
3
Bedroom
4
Bedroom

Rent
($)
839
1,018
1,422
2,164
2,400

Source:
rentometer.com

When
the
maximum
monthly
rent
affordability
standards
are
compared
to
the
prevailing
rents
near
the

project
site,
the
need
for
affordable
housing
in
this
area
becomes
very
clear.

Only
“moderate”
income

households
can
afford
market
rate
housing
near
the
project
site.
All
income
groups
lower
than

moderate
could
not
afford
housing
at
market
rates.

Table
four
shows
the
State
Income
limits
for
various
income
groups
in
San
Luis
Obispo
County.
These

categories
are
calculated
based
on
a
percentage
of
the
Area
Median
Income
(AMI),
which
is
$75,400
in

SLO
County.

Table
6:
Income
Limits
by
Family
Size
in
SLO
County

Family

Size

1
2
3
4
5
6
7
8

Extremely

Low
($)

15,850
18,100
20,350
22,600
24,450
26,250
28,050
29,850

Very
Low

($)

26,400
30,200
33,950
37,700
40,750
43,750
46,750
49,800

Lower
($)
42,250
48,250
54,300
60,300
65,150
69,950
74,800
79,600

Median

($)

52,800
60,300
67,850
75,400
81,450
87,450
93,500
99,550

Moderate

($)

63,350
72,400
81,450
90,500
97,750
105,000
112,200
119,450

A
typical
three
person
moderate-‐income
household
in
SLO
County
can
earn
up
to
$81,450
per
year.

These
households
can
likely
afford
market-‐rate
housing
in
the
area,
so
our
project
will
not
focus
on

them.
Instead,
the
project
will
focus
on
providing
a
mix
of
housing
for
“very-‐low”,
and
“lower”
income

households,
as
well
as
some
moderate-‐income
units.

Project
need

This
project
seeks
to
serve
the
housing
needs
of
downtown
service
workers,
entry-‐level
professionals,

and
anyone
who
works
in
SLO
but
cannot
afford
its
high
rents
and
would
otherwise
choose
to
commute

from
a
more
affordable
city.
These
are
the
people
who
cook
our
meals,
clean
our
streets,
wait
on
us
at

retail
stores,
answer
our
calls
and
process
our
permit
applications.
Workers
of
this
type
in
SLO
could

earn
anywhere
from
$10
to
$25
per
hour,
which
would
equate
to
approximately
$20,000
to
$50,000
per

year.
A
single
person
earning
$15/hour
would
qualify
as
“lower”
income
in
SLO
County,
while
a
couple

both
earning
$10/
hour
would
qualify
as
“very
low”.

These
workers
are
vital
to
the
functioning
of
the

City,
but
their
needs
are
not
being
met
by
the
current
housing
regime.
There
should
be
no
problem

Source: Rentometer.com
Source: San Luis Obispo County Regional Housing Needs Assessment, 2012
hour, which would equate to approximately
$20,000 to $50,000 per year. A single person
earning $15/hour would qualify as “lower”
income in SLO County, while a couple both
earning $10/ hour would qualify as “very
low”. These workers are vital to the func-
tioning of the City, but their needs are not be-
ing met by the current housing stock. There
should be no problem filling the affordable
units, as over 60% of SLO’s renters are rent
burdened, and 38% of those renters make
less than $20,000 per year.
Table 3: Maximum Monthly Rent Affordability Standards
Table 4: Average Monthly Rents Within .43 miles of project site

Table 5: Income Limits by Family Size in SLO County

7
HIGUERA HEIGHTS
THE SITE4. LOCATION
The project site is located at the corner
of Higuera Street and Santa Rosa Street,
less then half-mile south of U.S. Route
101 in downtown San Luis Obispo. The
site measures just under one acre and is
surrounded by commercial, office, and
government buildings. A 13,000-square feet
Bank of America branch building currently
occupies the site, which also provides
around 25,000 square feet of parking.
There is a great amount of vehicular and
pedestrian traffic going through the site due
to its proximity to the city’s downtown core
and City and County government buildings.
The site is located at the northeastern end
of downtown San Luis Obispo, just outside
of the city’s commercial downtown zone.
The project area is zoned Retail-Commercial
(C-R) so developments that provide both
commercial and residential uses (mixed-
use) are allowed. The site provides great
views of the hills to the north and of Higuera
Street, one of downtown’s main attractions.
Office areas to the east and busy right-of-
ways to the north and west, border the site.
Existing uses on the site include retail,
services, a parking structure, a gas station
and a bus stop for commuters. There are
two major commercial developments at
close proximity, including Downtown Center
Mall and Court Street Mall. These two
developments provide a wide array of retail
and service options, as well as coffee shops,
restaurants, a bookstore and a movie theater.
Additionally, the site is also close to various
amenities such as schools, a hospital, several
parks and the downtown transit station.
Project Site
San Luis Obispo, CAU.S. Route 101
N
California
San Luis Obispo
County

8
SITE CONTEXT
THE SITE4.
¯
Legend
Project Site
0.50 mi Radius
0.25 mi Radius
Hospital
Government
School
Library
Park
Grocery/Convenience Store
Bus Routes
2
5
Highway 101
Downtown
San Luis Obispo
To LA
To SF
Cal Poly
0 0.1 0.2 0.3 0.40.05
Miles
1
2
5 6
8
10
12
13
14
15
16
17
1811
3
9
7
4
0.25 miles5 min. walk
0.50 miles10 min. walk
Table 1: Amenities within 0.5 miles of the project site
Number Name Service Distance
1 San Luis Obispo Civic Center Area Public Use 0.1 mi
2 Shell Station Gas Station 0.0 mi
3 Albertson's Grocery Store 0.2 mi
4 French Hospital Medical Center Hospital 0.5 mi
5 San Luis Obispo Library Library 0.2 mi
6 Rite Aid Pharmacy 0.0 mi
7 Palm Street Parking Structure Parking 0.2 mi
8 Cheng Park Park 0.1 mi
9 Mitchell Park Park 0.2 mi
10 Mission Plaza Park 0.3 mi
11 Route 2 & 5 ‐ Santa Rosa at Higuera Public Transit 0.0 mi
12 USPS Mission San Luis Obispo Post Office 0.2 mi
13 Downtown Center Mall Retail 0.2 mi
14 Court Street Mall Retail 0.2 mi
15 Amtrak Station Train Station 0.5 mi
16 Vicente Ementary School School 0.5 mi
17 San Luis Obispo High School School 0.5 mi
18 Alta Vista Adult School School 0.5 mi

9
HIGUERA HEIGHTS
ENTITLEMENTS5. Regulatory Context
Current zoning for the project site is Retail-
Residential (C-R), which allows up to 36 resi-
dential dwelling units per net acre, and up
to 140,000 square feet of gross floor area.
Building height in the site is permitted up to
45 feet and the maximum floor area ratio is
not to exceed 4.0. No building shall exceed
60,000 square feet of gross floor area.
Multi-family residential and commercial
parking requirements are applicable to the
project, which will require 1 space per studio
apartment, 1.5 spaces for first bedroom plus
½ space for each additional bedroom in a
unit, plus 1 space for each five units in devel-
opments of more than five units. Additional-
ly, 1 parking space will be required per every
300 square feet gross floor area and 1 space
per every 60 square feet customer use area,
including waiting seating, counter service ar-
eas, plus one space per every 100 square feet
food preparation areas. The City may reduce
the parking requirement for mixed- use proj-
ects up to 20% by allowing shared parking.
According to the City’s Community Design
Guidelines, the project plan should empha-
size the needs of pedestrians and cyclists
rather than cars. It should also create a pleas-
ant, comfortable, safe, and distinct place for
residents, without the project “turning its
back” on the surrounding neighborhood. The
height and scale of new buildings and altera-
tions to existing buildings must fit within the
context and vertical scale of existing devel-
opment and provide human scale and pro-
portion. New buildings that are significantly
taller or shorter than adjacent buildings will
have to provide appropriate visual transi-
tions.
¯
0 0.08 0.16 0.24 0.320.04
Miles
Legend
Project Site
Zoning
C-C
C-D
C-N
C-R
C-S
C-T
C/OS
O
PF
R-1
R-2
R-3
R-4

10
ENTITLEMENTS5.
Entitlement and
Permit Process
Higuera Heights is subject to a development
plan review in compliance with the City of
San Luis Obispo’s zoning and land use or-
dinance. The permit application requires a
submission of a site plan, preliminary floor
plans, architectural elevations, a landscape
plan, and a grading plan to the Planning De-
partment for review. Due to the size of the
project, the permit process may also include
one or more public hearings. The public in-
put process is a tried and tested way for
the City to identify potential issues with the
project that may be raised by neighbors and
nearby businesses. The project site is not im-
mediately adjacent to residential units, how-
ever, all effort has been made to minimize the
projects input on the surrounding area. After
conclusion of a public hearing, the San Luis
Obispo City Planning Commission may ap-
prove, conditionally approve, or disapprove
the issuance of a building permit. Live SLO
Housing Studio will work with the public
and the Planning Department to mitigate po-
tential issues that might arise. Although af-
fordable housing projects can sometimes be
controversial, the lack of affordable housing
in San Luis Obispo and the absence of near-
by residents should help to reduce potential
challenges to Higuera Heights.
Concessions
The City of San Luis Obispo is required by
the State Government Code section 65915
to grant incentives or concessions to an af-
fordable housing development within its
jurisdiction. Live SLO Housing is allowed to
receive up to three concessions from the City
as long as the project meets the following re-
quirements:
1. Provide more than 11 dwelling units of
multifamily rental units.
2. Provide at least 15% of total units afford-
able to very-low-income housholds.
3. Ensure long-term housing affordability.
Summary of Development Standards and Regulations
Table 6: Summary of Development Standards and Regulations
Development Standards Land Use Ordinance Development Standards
Compliance
Zoning Designation (C-R) Commercial-Retail Yes
Density 36 maximum units per acre No, 41% density bonus
FAR 4.0 maximum (in downtown core) Yes
Height 45 feet maximum No, 5 ft. Concession
Setback 0 feet 0
Open Space NA NA
Off-street Parking 1/ housing unit, 1/500 sq ft. for mixed
use projects
Yes,partially satisfied with in-
lieu fees
Maximum building size 60,000 sq. ft. (Retail only) Yes
Landscaping N/A N/A
Maximum lot coverage 100% Yes

11
HIGUERA HEIGHTS
Higuera Heights will conform to the lot’s cur-
rent zoning designation, but will also take ad-
vantage of several incentives offered by the
City for affordable housing. The City allows
normally density bonuses of up to 35% for
mixed income buildings that provide at least
20 affordable housing. However, projects ex-
ceeding 30% affordable are allowed an ad-
ditional density bonus. Higuera Heights will
take advantage of a 41% density bonus, in re-
turn for providing 100% affordable housing
on site. Higuera Heights will take advantage
of the density bonus, a height increase from
45 to 50 feet (for the affordable house build-
ing only), and an expansion of the down-
town parking district to include the site. The
downtown parking district boundaries are
currently one block from the site, but the City
indicated that they were already considering
extending it several blocks North and East.
Environmental Review
The California Environmental Quality Act,
(CEQA) is a statute that requires state and
local agencies to identify the significant en-
vironmental impacts of their actions and to
avoid or mitigate those impacts, if feasible.
Certain types of projects, including urban in-
fill projects, are “categorically except” from
CEQA review, because they are assumed to
not have a significant impact on the envi-
ronment. Under CEQA Guidelines § 15332, a
project is exempt from CEQA if:
(a) The project is consistent with the appli-
cable general plan designation and all appli-
cable general plan policies as well as with ap-
plicable zoning designation and regulations.
(b) The proposed development occurs with-
in city limits on a project site of no more than
five acres substantially surrounded by urban
uses.
(c) The project site has no value as habitat for
endangered, rare or threatened species.
(d) Approval of the project would not result
in any significant effects relating to traffic,
noise, air quality, or water quality.
(e) The site can be adequately served by all
required utilities and public services.
Higuera Heights meets the above urban infill
criteria, and will be categorically except from
CEQA review.

12
ENTITLEMENTS5.

13
HIGUERA HEIGHTS
DESIGN CONCEPT6. Design Overview
Higuera Heights is nestled between down-
town San Luis Obispo to the southwest, and
the mountains of Reservoir Canyon Natural
Reserve to the northeast. This location at
the brim of downtown puts residents within
walking distance of jobs, shopping, and tran-
sit, while affording breathtaking views of the
nearby mountains. The building’s traditional
materials, sleek lines, and urban feel comple-
ment the existing character of the downtown
area. The pedestrian-oriented site plan flows
seamlessly into its surroundings, allowing
easy access to the nearby Higuera Street
shopping area.
The project contains two primary compo-
nents: the Higuera Heights affordable hous-
ing complex, and the Higuera Heights Plaza.
These components blend together to create
a vibrant, mixed-use, urban lifestyle that is
currently unprecedented in San Luis Obis-
po. A resident can enjoy nearby amenities
without sacrificing the safety and privacy of
an all-residential site. This is accomplished
through horizontal mixing of uses, by which
the residents are physically separated from
the market plaza, and given their own inte-
rior landscaped space in which to relax and
play.
Higuera Heights Affordable Housing
The affordable housing building is situated
on the northeast of the site, in order to cap-
ture mountain views and provide a buffer
from the busy Santa Rosa Street traffic. The
building consists of four residential floors
above a ground floor parking garage. The
unit mix includes fourteen, 456 square foot
studio apartments, twenty two-bedroom
apartments, each about 750 square feet, and
sixteen three-bedroom apartments, each
around 1,000 square feet. The first floor of
the building contains a semi-sheltered, U-
shaped outdoor park that provides interior
air, light, and privacy for residents. The park
is landscaped using 100% native California
plants, which have been selected for their
drought tolerance and ability to absorb and
filter stormwater runoff from the site dur-
ing wet months. All of the units have oper-
able windows, which allow ample access to
natural light and air. Units are built using
rustic, traditional materials like brick, wood,
and steel. In the bathrooms, high efficiency
toilets utilize the stormwater from the build-
ing’s roof for flushing. Each floor includes
a laundry room and multi-use community
space, such as a computer lab, study room, or
fitness center.
Higuera Heights Plaza
Higuera Heights Plaza is an office and re-
tail complex composed of the buildings at
the southwest portion of the site. Higuera
Heights Plaza includes an interior courtyard,
an indoor/outdoor public market, restau-
rants, shops, and upper-floor office spaces.
On the interior of the plaza is a public mar-
ket called SLO Grown Market. This market,
which is based on the concepts of Pikes
Place Market in Seattle, and Oxbow Market
in Napa, contains 17 small stalls (300-400
square feet) that are rented to various local
vendors selling produce, meat, handmade
goods, and prepared food from a variety of
different international cuisines. On the exte-
rior of the buildings, facing Higuera and Santa
Rosa Street, there are several larger “anchor”
retail spaces occupied by businesses such as
restaurants or a wine bar. The entrance to
the interior SLO Grown Market is framed by
a large arched sign, enticing pedestrians on
Higuera St. to walk in for a meal, or to peruse
the unique artisan goods that the community
of San Luis Obispo has to offer.

14
DESIGN CONCEPT6.
SLO Grown Market
The concept of “market hall” type retail is an
old model that began as a way for farmers to
cut out the middle men who were using un-
fair business practices. In recent years, Mar-
ket halls have made a comeback, as interest
in local food has increased. Examples of this
type of market include San Francisco’s Ferry
Building,Seattle’sPikesPlaceMarket,LosAn-
geles’s Grand Central Market, and numerous
smaller market halls in smaller cities such
as Alameda, Oakland, and Napa, CA. These
market halls can range in size from 5,000 sq
ft. to several acres, and typically contain per-
manent vendor booths from 250 to 3,000 sq.
ft. The vendor booths can be occupied by a
range of artisans and food producers, from
bakers to coffee roasters and ranchers. San
Luis Obispo enjoys a very popular Thursday
night downtown farmer’s market, located on
Higuera St, that is a regional draw for resi-
dents and tourists alike. However, the mar-
ket is only open once a week and there are
no grocery stores in downtown. SLO Grown
Market will increase access to fresh foods in
San Luis Obispo, while also providing a year-
round, permanent market for local farmer’s
goods.
Physical infrastructure provided for the SLO
Grown Market includes a loading dock, cold
storage, utility hook-ups (electricity, water,
drainage, etc), common eating areas, and
parking for cars and bikes.
Office Space
The upper two floors of Higuera Plaza will
be for office and professional use. The proj-
ect site is located within several blocks of a
number of important government buildings,
including a courthouse and county govern-
ment offices. This creates strong demand for
offices for those who provide government
services (such as lawyers). In addition, sever-
al high-tech companies have recently moved
to San Luis Obispo, including i-fixit, drawn by
the coastal lifestyle and the talent pool at Cal
Poly. These types of businesses would also be
a potential tenant. San Luis Obispo had a low-
er office vacancy rate of 13.6% in 2012, low-
er than the national average of 16.2%. While
local vacancy data is not yet available after
2012, national rates have dropped to 15.4%.
and anecdotal evidence suggests that SLO’s
vacancy rate has dropped since 2012 as well.
San Francisco currently has the lowest office
vacancy rate in the nation, at 10.2%. This low
vacancy rate suggests a hot market for office
space. In San Luis Obispo, many homes near
the downtown core have been converted to
office, due to a lack of office supply. Higuera
Plaza will help to address the lack of office
space, and potentially allow for the conver-
sion of some buildings back to residential
uses, thereby increasing the housing supply.

15
HIGUERA HEIGHTS
Parking
Of�ice
To Downtown
Gateway
Corner
Extend the core
Parking
Lot
SantaRosaStreet
Marsh Street
Number Name Service
1 County of San Luis Obispo Public Use
2 Shell Station Gas Station
3 Petra Restaurant
4 Wells Fargo Advisors Bank
5 San Luis Obispo Council of Governments Public Use
N
site context and adjAcent uses
1 2 3
4
5

16
DESIGN CONCEPT6.
Studio Unit | 450 sq ft
2 Bedroom Unit | 750 sq ft
15 units total
20 units total
16 units total
Living/ Dining Room
14’8” x 20’
Bedroom
9’8” x 8‘8”’
Bedroom
9’8” x 15’
Living/ Dining Room
18’8” x 20’
Bedroom
9’8” x 8’8”
Bedroom
9’8” x 9’8”
Bedroom
10’ x 14’
Living/ Dining Room
22’6” x 11’8”
Bedroom Niche
10’ x 8‘4”’
3 BEDROOM UNIT
2 BEDROOM UNIT
STUDIO UNIT
UNIT FLOOR PLANS

17
HIGUERA HEIGHTS
15 units total
20 units total
16 units total
Community Spaces | 650-900 sq ft
4 spaces total
Retail Spaces | SLO Grown Market
23 spaces total
Community
Lounge
Study
Room
Laundry
Facilities
Of�ice Space
1800 sq ft
Of�ice Space
1600 sq ft
Of�ice Space
1400 sq ft
Of�ice Space
1300 sq ft
Of�ice Space
2000 sq ft
Of�ice Space
1100 sq ft
Of�ice Space
1100 sq ft
Of�ice Space
2000 sq ft
Retail Space
1100 sq ft
Retail Space
1300 sq ft
Retail Space
1200 sq ft
Retail Space
850 sq ft
Retail Space
1300 sq ft
Retail Space
1300 sq ft
Retail Space
1200 sq ft
Vendor Space
300 sq ft
Vendor Space
300 sq ft
Vendor Space
200 sq ft
Vendor Space
200 sq ft
Vendor Space
200 sq ft
Vendor Space
250 sq ft Vendor Space
300 sq ft
Vendor Space
275 sq ft
Vendor Space
200 sq ft
VendorSpace
300sqft
VendorSpace
300sqft
VendorSpace
350sqft
VendorSpace
200sqft
VendorSpace
200sqft
VendorSpace
250sqft
VendorStorage
250sqft
Of�ice Spaces | 1000-2000 sq ft
15 spaces total
FIRST FLOOR
SECOND FLOOR
FLOOR PLANS

18
15 units total
20 units total
16 units total
Community Spaces | 650-900 sq ft
4 spaces total
Retail Spaces | 300- 2000 sq ft
23 spaces total
Laundry
Facilities
Fitness
Center
Laundry
Facilities
Of�ice Space
1800 sq ft
Of�ice Space
1600 sq ft
Of�ice Space
1400 sq ft
Of�ice Space
1300 sq ft
Of�ice Space
1800 sq ft
Of�ice Space
1000 sq ft
Of�ice Space
1100 sq ft
Of�ice Spaces | 1000-2000 sq ft
15 spaces total
THIRD FLOOR
FOURTH & FIFTH FLOOR [SIMILAR]
FLOOR PLANS

19
HIGUERA HEIGHTS
DESIGN CONCEPT6.
VIEW FROM HIGUERA STREET AT SANTA ROSA STREET

20
EAST ELEVATION
WEST ELEVATION
ELEVATIONS
DESIGN CONCEPT6.

21
HIGUERA HEIGHTS
SOUTH ELEVATION
NORTH ELEVATION
Green Screen Trellis
A permeable metal trellis covered
with vines allows for air to
ventilate while providing visual
screening of the interior parking.
Steel Fin and Overhang Shades
Brick Siding
Fiber Cement Siding
Provides the look of a natural wood grain
but more durable and requires less mainte-
nance. This product also features 30%
recycled material and utilizes the by-product
�ly ash that is typically dumped into land�ills.
Dual Pane Low
E with Argon
Windows
Operable Windows
Allows the occupants to naturally
ventilate their units based on
their own needs.
Photovoltaic Panels
Over 20,000 sq ft of PV panels
will cover the roofs of Higuera
Heights and Higuera Heights
Plaza generating electricity that
will help to offset the residents
monthly energy costs
ELEVATIONS

22
PERSPECTIVE 1
LOOKING SOUTH-EAST FROM HIGUERA STREET

23
HIGUERA HEIGHTS
LOOKING SOUTH-WEST FROM HIGUERA HEIGHTS
PERSPECTIVE 2

24

25
HIGUERA HEIGHTS
DESIGN CONCEPT6.
Western Redbud
California Sycamore
Photovoltaic Panels
Residential Barbeque Area
Red Fescue
Green Roof (Field Sedge)
Permeable Pavers
annotated site plan

26
DESIGN CONCEPT6.
NATIVE AND DROUGHT
TOLERANT LANDSCAPE
Why Plant Native Species?
In order to be as ecologically responsible,
resource efficient, and regionally inspired
as possible, Live SLO has made native land-
scaping a priority in the design of Higuera
Heights. There are many reasons native
plants are beneficial to use in the urban land-
scape. Native species save a considerable
amount of water because they are adapted
to California’s dry climate, and require lit-
tle irrigation. They are also generally lower
maintenance, and require fewer chemicals
because they have developed tolerances to
local diseases and pests. In addition, native
plant species provide habitat for wildlife like
birds and butterflies, and increase the over-
all biodiversity of the area by contributing to
the local ecology.
The plants we have selected for the Higuera
Heights plaza are all extremely hardy and
low maintenance. They are also extremely
drought tolerant. This means that once they
are established, they can remain healthy
without water for months at a time. This is
especially important in California today, as
Governor Brown has declared a state-wide
drought emergency. We are currently expe-
riencing the worst water shortage since the
1600’s, and native landscaping has the po-
tential to put a significant dent in the amount
of water California consumes.
Featured Natives
Trees
California Sycamore, Platanus racemosa
Western Redbud, Cercis occidentalis:
Midlevel Plants
California Wild Rose, Rosa californica
Deer Grass, Muhlenbergia rigens
Ground Covers
Clustered Field Sedge, Carex praegrasilis
Red Fescue, Festuca rubra
Beach Strawberry, Fragaria chiloensis

27
HIGUERA HEIGHTS
SUSTAINABLE CONSTRUCTION7. LEED
Live SLO Housing Studio has followed Lead-
ership in Energy and Environmental Design
(LEED) New Construction and Major Reno-
vations guidelines during its design process,
in order to ensure a sustainable and energy
efficient project. LEED, a program of the US
Green Building Council (USGBC), is the indus-
try standard for rating the sustainability of
development projects, and rates each project
based on an extensive point system in mul-
tiple categories. Live SLO Housing Studio is
confident that Higuera Heights could achieve
a LEED Gold rating based on the 2009 rating
system. Additional consultation with a LEED
professional may be required during the de-
velopment process.
Sustainable Sites
Higuera Heights is located on a previously
developed urban infill site, covered in imper-
vious surfaces, and far away from protected
areas like wetlands and nature reserves. The
site is within 1/2 mile of a wide variety of ser-
vices. It is very close to transit options, with
a SLO Transit bus stop adjacent to it, and is
.7 miles to the closest AMTRAK station. Also,
many employment, shopping, and entertain-
ment options are located nearby.
Indoor bike storage is provided for residents
and workers. Onsite parking has been mini-
mized, through several parking incentives
for mixed-use, affordable housing projects
and projects with bicycle parking. The on-
site parking is set underneath the structure,
reducing overall heat absorption and heat-
island effect.
The project significantly increases the over-
all permeability of the site, by using veg-
etated roofs, bioswale systems, rainwater
catchment, and permeable paving. All non-
emergency interior lighting is automatically
controlled to turn off during atypical hours,
and a manual override is provided.
Water Efficiency
The landscaping of Higuera Heights is ex-
tremely drought tolerant, and will require
regular watering for only 1-2 years as the
plants become established. After that, they
will be watered only occasionally and if nec-
essary can go completely without water for
months at a time. Non-potable water is used
for irrigation when available. Irrigation is
kept to a minimum, and only used when nec-
essary.
Indoor potable water use is kept to a mini-
mum by incorporating water-saving faucets,
showerheads, and recycled rainwater for toi-
lets and urinals.
Energy and Atmosphere
Higuera Heights will enter into a power pur-
chase agreement (PPA) with a local solar
company to install solar panels on its roof.
A PPA will allow the solar panels to provide
renewable energy for the development, at no

28
up-front cost. Higuera Heights has approxi-
mately 20,000 square feet of usable roof area
for solar infrastructure. Given the assump-
tion that our residential component will use
approximately 380,000 kWh annually (6.7
kWh per square foot annually), and that our
retail component will use approximately
600,000 kWh annually (14.3 kWh per square
foot annually), Higuera Heights should pro-
duce over 13% of it’s electricity through pho-
tovoltaic cells using only half of the total roof-
top area. This would be accomplished using a
10,000 square feet, 80-kilowatt photovoltaic
system provided by Sungevity, SunRun, or a
similar provider.
MATERIALS SELECTIONS
There were two primary factors considered
during material and product selection: sus-
tainability and residential comfort. With
those two objectives in mind, sustainable,
high-performance, and high-recycled con-
tent products were selected. These products
positively benefit the residents through their
durability, reduced energy consumption and
healthier living conditions.
Sustainable Construction and
Exterior Finishes
Material sourcing focused on locally pro-
duced and manufactured products. Sourcing
materials locally helps cut down on the ship-
ping expenses and carbon footprint associ-
ated with long-distance transit. It also helps
to stimulate the local economy and create
economies of scale.
SUSTAINABLE CONSTRUCTION7.
Materials and Resources
Higuera Heights is in a prime location to take
advantage of locally sourced materials, as it
is located within 500 miles of many mate-
rial suppliers in both Northern and Southern
California. Materials such as fly-ash concrete,
lumber, and brick can all be found within a
distance acceptable by LEED standards. Dur-
ing the demolition process, nonhazardous
materials such as concrete, asphalt and glass
will be sorted and recycled. During construc-
tion,wastesuchaspackagingwillberecycled,
and excess materials such as weatherboard,
brick, or glass will be salvaged for later con-
struction use. The wood used in construction
shall be a minimum of 50% (based on cost)
certified by the Forest Stewardship council,
in order to promote the responsible manage-
ment of our forests.
Indoor Environmental Quality
Higuera Heights will utilize low-emitting ma-
terials for its interiors in order to contribute
to a safe, healthy indoor living environment.
Residents are provided with zoned lighting
controls, occupancy-sensing light fixtures in
common areas, and adjustable thermal con-
trols for each unit. Residences will also have
ample access to outdoor daylight and views.
*Please refer to Appendix for the attached
2009 LEED Project Checklist, which details the
breakdown of credits which are applicable to
Higuera Heights.

29
HIGUERA HEIGHTS
Dual Pane Low E with Argon Windows
The project will utilize dual-pane, low-e win-
dows in order to increase insulation and save
energy. One of the most important character-
istics of windows is their rate of heat loss, or
U-value. The U value of a traditional window
is 1.3 whereas a dual-pane low-e window
with argon gas is valued at 0.33, performing
four times better than standard single pane
windows.
Concrete with Fly-ash Podium Construc-
tion
Fly-ash is a by-product of the coal manufac-
turing process that can be utilized to par-
tially replace Portland cement [up to 50%].
Fly ash notably increases the workability of
the concrete mixture as well as increases the
mixtures overall durability and strength once
cured. To further reduce the environmental
impact of the concrete structure, recycled ag-
gregate material, such as old concrete mix-
tures, can be utilized. This reduces raw mate-
rial consumption and frees up landfill space
that would otherwise have been taken up by
used concrete.
Wood Stick Framing Construction
[Floors 3-5]
All wood utilized within the project will be
Forest Stewardship Council (FSC) certified.
FSC wood is sustainably harvested from re-
sponsible sources, rather than through acts
of illegal deforestation.
Brick Exterior Finishes
The project incorporates traditional materi-
als, such as brick, into our design in order to
maintain the character of historic downtown
San Luis Obispo. Brick can also be sourced lo-
cally, from the “Air-Vol” brick manufacturing
plant, located within SLO city limits. Utilizing
a local manufacturer will save on shipping
costs associated with the transportation of
the brick siding.
Certainteed Weatherboards
Fiber Cement Siding
Certainteed fiber cement will be used as sid-
ing, as it offers the grain, coloring and look
of wood siding, but with a longer lasting du-

30
rability. This product also features over 30%
recycled content, including coal fly-ash. Fiber
cement panels are non-combustible, termite
and rot free, sealed against moisture and
maintenance free.
Interior Paint
Traditional interior paints and finishes con-
tain volatile organic compounds (VOCs) that
release low-levels of toxins into the air for
years after the initial coating is applied. Zero
VOC paints and finishes are made from raw
and natural ingredients such as water, natu-
ral minerals, plant oils and dyes; they do not
contain any harmful chemicals or toxins and
help to contribute to a healthier living envi-
ronment for the occupants.
Marmoleum Flooring
[Kitchen and Bathrooms]
Marmoleum flooring is an all-natural prod-
uct made from raw materials such as flax
seed, pine resin, wood flour paste and natu-
ral pigments and is poly-vinyl chloride (PVC)
free. PVC is commonly seen in the form of
white piping used for channeling water but
it is also a common flooring material. PVC
degrades over time, releasing microplastics
into the environment that contain persistent
organic pollutants, which are undesirable for
human health and safety.
Interface No Glue Carpet Tiles
[Living and Bedrooms]
Carpet tiles offer greater ease and flexibility
of installation than traditional carpet rolls.
They can be easily swapped out for a re-
placement in the event of a spill or accident
and can save the substantial costs associated
with carpet replacement. By utilizing stick-
down installation, rather than glue down, it
also reduces the amount of harmful chemi-
cals being applied within a residence. The In-
terface company offers up to 100% recycled
nylon face fiber carpeting. The recycled con-
tent comes from old carpet rolls and squares
that have been stripped down to their fibers
and utilized again.

31
HIGUERA HEIGHTS
Plywood and Bamboo Cabinetry
The cabinetry will be made of ¾” prefinished
plywood with a ½” bamboo veneer. Plywood
is a very cheap and easy material to utilize
in construction while the bamboo veneer
offers a more attractive finished look using
a rapidly renewable species of wood. Both
wood products would be FSC certified to en-
sure that their harvesting and manufacturing
were conducted in a responsible and sustain-
able fashion.
Recycled High-Density
Polyethylene Countertops
The project will utilize fully recycled coun-
ter tops. The 3D Form company produces a
100% post-consumer recycled content coun-
tertop surface that consists of recycled sham-
poo, detergent, chemical and milk bottles.
Kitchen and Bathroom Appliances
All kitchen applicances, including the refrig-
erator, stove and dishwasher, will be certi-
fied Energy Star. Energy Star products use
30-50% less water and utilize 50-60% less
energy than conventional applicances; thus
cutting back on water and energy consump-
tion and monthly utilities expenses for the
tenants.
All bathroom fixtures, faucets, showerheads
will be specified “Water Sense” products, the
equivalent of an energy star rating for non-
appliances.
Toilets are the biggest indoor water users,
consuming on average 23% of residential wa-
ter use. By utilizing dual flush toilets one can
save up to 68% of toilet water consumption.
To further reduce the amount of potable wa-
ter being consumed within the development
the toilets can utilize recycled rainwater that
is harvested and contained within the site.

32

33
HIGUERA HEIGHTS
RESIDENT SERVICES AND AMENITIES8. Higuera Heights will offer a variety of ame-
nities to its residents that promote a healthy
lifestyle and personal development. These
amenities include a community lounge, a
computer lab, a study room, and a fitness
center.
AMENITIES
Community Lounge
The lounge, approximately 900 square feet,
provides common space for education, com-
munity events and social gatherings. These
activities might include family activities, ed-
ucational opportunities, wellness programs
and other social opportunities that support
the residents’ general well-being and quality
of life. The lounge features couches, a televi-
sion, coffee tables, desks and chairs to en-
courage social interactions.
Computer Lab
The computer lab provides a vocational and
technical environment that will guide, devel-
op and encourage residents toward their ed-
ucational and career goals. The computer lab
is available to support individuals in carrying
out educational, work, and skill building ob-
jectives for job mobility. Residents have free
access to all computers, printers, and Inter-
net.
Study Room
The 650 square foot study room is available
for residents who need a space for studying,
reading or other learning activities. In ad-
dition, residents can use this room to hold
meetings, do homework and even play board
games. The study room contains tables and
chairs to accommodate users during the day
and the After School Program for kindergar-
ten through 12th grade residents.
Fitness Center
A 650 square feet fitness center encourages
residents to maintain a healthy lifestyle. Lo-
cated on the fourth floor, the fitness center
is a health, recreational, and social space
geared towards exercise. Residents can en-
gage in individual fitness opportunities such
as cardiovascular training and weight train-
ing, while promoting social interaction.
Laundry Rooms
A 200 square feet laundry room with 3 sets
of washer and dryers is located on each floor.
This provides convenient and easy access for
all residents.
RESIDENT SERVICES
After-School Program
An after-school program will be offered in
the study room for kindergarten to 12th
grade students, in order to support working
parents and families. LifeSTEPS, a longstand-
ing provider of educational and supportive
services, will run the program. Their staff
will also coordinate two to four educational
classes per month, designed specifically to
address the educational needs and interests
of residents. In addition to this, the Cal Poly
department of education will partner with
Higuera Heights to provide student volun-
teers, who will serve as mentors and tutors.
The program will provide a safe environment
for children to engage in educational, recre-
ational, cultural, and social activities during
after-school hours. Students will have the
opportunity to explore interests, gain work
skills, assume leadership roles, interact with
similar aged peers, connect to adult role
models and mentors, and become involved
with their communities.

34
Computer Training Program
In today’s technological world, it is crucial for
all adults to have basic computer skills. In or-
der to encourage personal and professional
development, Life Steps will offer computer
training in the computer lab. These classes
will start with computer basics and Internet
for beginners and then progress to specific
software applications such as Word, Excel,
and PowerPoint. LifeSTEPS will also run this
program.
FunRide
FunRide is a car-sharing service, headquar-
tered in San Luis Obispo. FunRide carsare
located at various sites around the Central
Coast, and can be rented for $6.50 per hour or
by the day. Higuera Heights will partner with
FunRide to provide deeply discounted yearly
memberships to low-income residents. In ad-
dition, a designated FunRide parking space
“pod” is provided on site.
Onsite Management
Higuera Heights will be operated and man-
aged primarily by the developer, Rob Rossi.
The manager will be responsible for main-
taining the facilities, grounds, and landscap-
ing with the assistance of staff. In addition
to this, the manager will be instrumental in
creating a safe and healthy environment for
the residents and serve as a resource for the
community.
The Carlin Company will be the master les-
see and operator of the “SLO Grown Market”
component of Higuera Plaza. The Carlin Com-
pany has extensive experience in this arena,
and is the operator of the Oxbow Market in
Napa and developer of the Ferry Building
Market in San Francisco.
The developer, Rob Rossi, will operate the of-
fice space component of Higuera Plaza.

Office
of
the
Dean

Building
2,
Room
123

(805)
756-‐1503

jmargeru@calpoly.edu

Tuesday,
May
6,
2014

Team
LIVE
SLO

Attention:
Erik
Castillo

Dear
Mr.
Castillo,

Thank
you
for
the
information
you
have
p
the
Higuera
Heights
project.
Low
income
sustained,
offers
more
than
just
a
place
to
to
achieve
their
dreams.
Your
goals
of
cre
for
families
and
nearby
businesses
seem

the
educational
and
care
needs
of
the
chi
part
of
the
complete
package
that
you
are
RESIDENT SERVICES & AMENITIES8.

35
HIGUERA HEIGHTS
COMMUNITY ENGAGEMENT9. Live SLO Housing Studio has made it a prior-
ity to engage with the San Luis Obispo com-
munity and local government agencies in
order to ensure the political feasibility and
acceptance of the project. The Team has iden-
tified the following key project stakeholders:
• City of SLO Housing Authority
• City of SLO Planning Commission
• Local restaurants and retail establish-
ments
• Local organizations serving low-income
families
• Nearby residents
• Cal Poly Students
• Local farmers
PRE-DEVELOPMENT
Initial meetings have already been conduct-
ed with key stakeholders in order to gain
support for the project, and to ensure that
the project proposal will not face regulatory
barriers or political opposition. The team has
had face-to-face, or phone meetings with de-
cision makers in the following institutions,
corporations, and local government agen-
cies:
• San Luis Obispo Housing Authority
• San Luis Obispo Community Develop-
ment Department
• San Luis Obispo City Council Members
• San Luis Obispo County
• Cal Poly Department of Education
• People’s Self Help Housing
• Central Coast Grown
• San Luis Obispo Thursday night Farmer’s
Market Vendors
• The Carlin Company
• FunRide
• LifeSteps
CONSTRUCTION
Throughout the construction process Live
SLO Housing Studio will host several meet-
ings with local residents, community groups
and stakeholders. These meetings will pro-
vide the opportunity to rally community sup-
port for the project, while identifying any po-
tential negative impacts that the project may
have. Feasible mitigation measures may be
implemented to address potential concerns.
Once construction is nearing completion,
Live SLO Housing Studio will contact the City
Housing Authority to obtain a list of poten-
tial pre-qualified low-income and very-low
income tenants. These families and persons
will get priority in reserving a unit, based on-
their early expression of need.
POST CONSTRUCTION AND
OUTREACH
Upon completion of the project, Live SLO
Housing Studio will host a Grand Opening for
residents, community members and partner
organizations. The grand opening will high-
light the amenities of the project, and include
a tour and food samples from the local ven-
dors.

36

37
HIGUERA HEIGHTS
FINANCIAL STRUCTURE10.The Higuera Heights project includes the
main affordable housing component known
as Higuera Heights (A), and a commercial
sub-component known as Higuera Heights
Plaza (B). For the purposes of the Bank of
America Low Income Housing Challenge, the
main project and sub-components have been
physically and financially separated. They
are two separate buildings, owned by differ-
ent legal entities, which operate under the
greater project title of Higuera Heights. Proj-
ect financing is presented in order of project
size.
COSTS OVERVIEW
The Higuera Heights project has projected
development costs of roughly $16.5 million
to construct 50 new affordable housing units
(69,000 sqft). The project is financially fea-
sible primarily due to the following resourc-
es: the Low Income Housing Tax Credit (LI-
HTC) program, made available through the
California Tax Credit Allocation Committee
(CTCAC), and the extremely favorable seller-
carry back note which confers interest in the
property in exchange for all residual income
and returns subordinate to all expenses and
debt service.
REVENUE OVERVIEW
The rental revenue generated by the project
is limited by the allowable rents under San
Luis Obispo affordable housing guidelines.
The project targetss renters making 50%
of area median income (AMI). The revenue
generated is enough to cover operating ex-
penses and debt service, while any remain-
ing residual cash flow accrues value to the
previous owner through the seller carry
back note. Operating expenses and reserves
account for roughly 46% of rental revenue,
and a 6-month operating margin is under-
written to be kept as reserve. A summarized
breakdown of project development costs are
shown in exhibit 1A, while funding is shown
in Exhibit 2A.
Item Unit/Cost Funding Type
Project Square Footage 69140 Loans:
Land Aqcuitision 2,800,000$
Unit and Common Construction 8,871,700$
Site Development 691,400$
Local Fees 525,000$ Equity:
Other Hard Costs 75,000$
Soft Costs 2,910,569$ Grants:
Hard Cost Contingency 506,905$
Soft Cost contingency 115,778$
Total Development Costs 16,496,353$
Total Developed $/SF 238.59$ Total Funding
Higuera Heights Development Summary - Exhibit 1A Higuera H
Unit/Cost Funding Type Source Amount % total
140 Loans: Seller Carry Back Note 2,800,000$ 17%
2,800,000 Permanent Loan 2,582,917$ 16%
8,871,700 Federal Home Loan Bank 500,000$ 3%
691,400
525,000 Equity: Federal LIHTC 9,713,436$ 59%
75,000
2,910,569 Grants: Deferred Dev. Impact Fee 100,000$ 1%
506,905 Homefunds SLO 300,000$ 2%
115,778 SLO County Housing Trust 500,000$ 3%
16,496,353
238.59 Total Funding 16,496,353$ 100%
Summary - Exhibit 1A Higuera Heights Funding Breakdown - Exhibit 2A

38
FINANCIAL STRUCTURE10
GRANTS OVERVIEW
The Federal Home Loan Banks' Affordable
Housing Program Grant: $500,000
Having exceeded most of the program’s eli-
gibility requirements, Team Live Slo has esti-
mated the grant to be $10,000 per unit based
on historical data from local nonprofit, Peo-
ples’ Self-Help Housing, for a grant total of
$500,000 to be acquired after the 9% LIHTC
funding is secured and applied to construc-
tion costs incurred during development.
County of San Luis Obispo’s HOME Invest-
ment Partnership (HOME) Funds: 300,000
In compliance with regulations in Title 24 of
the Code of Federal Regulations, Part 92, San
Luis Obispo County has allotted $300,000
to use for the construction in the Higuera
Heights affordable project.
Deferred Development Impact Fee: $100,000
In an effort to encourage economic devel-
opment within the County of San Luis Obis-
po, the County has allotted Higuera Heights
$100,000 to use in the deferral of local fee
payments, for our long-term commitment to
the benefit of all residents fee as a multi-fam-
ily residential project.
County of San Luis Obispo Housing Trust
Fund: $500,000
The County of San Luis Obispo Housing Trust
provides funds to help finance affordable
housing projects in the area, with most of
the available funds to be limited to the devel-
opment of low, very low, and extremely low
income units. With our qualifications and
the availability of funds in San Luis Obispo
County, Housing Trust funds of $10,000 per
unit are estimated and will assist in financing
pre-development costs including environ-
mental review, and early phase design devel-
opment, along with preliminary construction
costs.
Uneligible Costs Assumptions
for LIHTC
Total Budget
Affordable Component Total 16,496,353
Uneligable Costs Total 3,995,569
Eligible Basis for LIHTC 12,500,783
Total Eligible Basis $ 11,814,326.00
* QCT Allowance 130%
Total Adjusted Eligible Basis $ 15,358,623.80
* Applicable Fraction 100%
Total Qualified Basis $ 15,358,623.80
Voluntary Credit Percent
Reduction
45.00%
Total Credit Reduction $6,911,381.19
Total Adjusted Qualfied Basis $8,447,242.61
Present Value Credit Percent 7.59%
Annual LIHTC Amount $ 641,145.71
Total Tax Credit Amount (x10) $ 6,411,457.14
Equity Value of Tax Credits 1.05 $ 6,732,030.00

39
HIGUERA HEIGHTS
Item Total Budget LIHTC BASIS
Construction
Loan
SLO CO
HOME
Funds
SLO
County
Housing
Federal
Home
Loan Bank
Deferred
Developme
nt
Seller Carry-
Back Note
Perm Loan
Federal 9%
LIHTC
Initial Equity
Investment
Federal 9%
LIHTC
Remaning
Equity
Operating Expenses Monthly Annual
% of
Total
Land Purchase $ 2,800,000 $ 2,800,000 General & Administrative
Advertising and credit checks $ 40.00 $ 480.00 0.25%
Hard Costs $ 10,670,005 $ 10,645,005 $ 8,598,661 $ 300,000 $ 200,000 $ 500,000 $ 100,000 $ 2,582,917 $ 971,344 $ 6,015,744 Legal $ 40.00 $ 480.00 0.25%
Unit and Common Construction $ 8,871,700 $ 8,871,700 $ 6,900,356 $ 300,000 $ 200,000 $ 500,000 $ 2,582,917 $ 971,344 $ 4,317,439 Accounting/audit $ 850.00 $ 10,200.00 5.33%
Site Development $ 691,400 $ 691,400 $ 691,400 $ 691,400 Supplies $ 150.00 $ 1,800.00 0.94%
Furnishings & Technology $ 50,000 $ 50,000 $ 50,000 $ 50,000 Management fees $ 2,400.00 $ 28,800.00 15.04%
Local Fees. development impact, ceqa etc $ 525,000 $ 525,000 $ 425,000 $ 100,000 $ 425,000 Telephone $ 75.00 $ 900.00 0.47%
Hard Cost Contingency $ 506,905 $ 506,905 $ 506,905 $ 506,905 $ 42,660.00 22.28%
Demolition $ 25,000 $ 25,000 $ 25,000 Utilities - Common Use
Electricity $ 350.00 $ 4,200.00 2.19%
Soft Cost $ 3,026,348 $ 1,855,778 $ 2,726,348 $ 300,000 $ 2,726,348 Gas $ 200.00 $ 2,400.00 1.25%
Architectural and Landscape $ 305,000 $ 305,000 $ 165,000 $ 140,000 165,000$ Water & Sewage $ 3,500.00 $ 42,000.00 21.94%
Engineering $ 270,000 $ 270,000 $ 155,000 $ 115,000 155,000$ $ 48,600.00 25.39%
Site Survey $ 20,000 $ 20,000 $ - $ 20,000 -$ Payroll
Parking In Lieu fees $ 85,000 $ 85,000 85,000$ Manager Salary $ 1,500.00 $ 18,000.00 9.40%
Consultants (Land Use, Outreach, etc.) $ 25,000 $ - $ 25,000
-$
Maintenance personnel $ 1,000.00 $ 12,000.00 6.27%
Real Estate Taxes $ 46,200 $ 46,200 46,200$ Med insurance/benefits $ 800.00 $ 9,600.00 5.01%
Construction Loan Interest Reserve $ 506,565 $ 506,565 506,565$ Payroll taxes $ 350.00 $ 4,200.00 2.19%
Construction Loan Fee and Expenses (1%) $ 113,250 $ 113,250
113,250$
$ 43,800.00 22.88%
Construction Loan Inspection $ 20,000 $ 20,000 20,000$ Taxes and Insurance
Construction Loan Title and Escrow $ 15,000 $ 15,000 15,000$ Property and liability insurance $ 824.00 $ 9,888.00 5.16%
Operating Reserve $ 95,725 $ 95,725 95,725$ CA Partnership Tax $ 67.00 $ 804.00 0.42%
Third Party Market Study $ 8,000 $ 8,000
8,000$
Real Estate Assessment Taxes (.1%) $ 1,158.00 $ 13,896.00 7.26%
TCAC Monitoring Fees $ 50,000 $ 50,000 50,000$ $ 24,588.00 12.84%
Rent up & marketing $ 45,000 $ 45,000 45,000$ Operating & Maintenance
Syndication Consultant $ 50,000 $ 50,000 50,000$ Repairs $ 1,200.00 $ 14,400.00 7.52%
Legal, Broker, Due Dil, Title & Org. Costs,
escrow
$ 25,000 $ 25,000 25,000$ Trash and Recycling $ 250.00 $ 3,000.00 1.57%
Tax Credit and Organization $ 40,000 $ 40,000 40,000$ Grounds $ 1,000.00 $ 12,000.00 6.27%
Developer Fee $ 1,000,000 $ 1,000,000 $ 1,000,000 1,000,000$ Contract services $ 200.00 $ 2,400.00 1.25%
Perm Loan Fee (1%) & Deposit $ 45,829 $ 45,829 45,829$ $ 31,800.00 16.61%
Insurance $ 110,000 $ 110,000 $ 110,000 110,000$ Total Operating Expenses $ 15,954.00 $ 191,448.00 100%
Audit $ 10,000 $ 10,000 $ 10,000 10,000$
Appraisal and lender review $ 15,000 $ 15,000 $ 15,000 15,000$ Rental Income Monthly Annual
Environmental Review Phase 1 $ 10,000 $ 10,000 $ 10,000 10,000$ From Rent Schedule $ 39,120 $ 469,440
Soft Cost Contingency (5%) $ 115,778 $ 115,778 $ 115,778 115,778$ Less: Vacancy (5%) $ (1,956) $ (23,472)
LIHTC Subtotals $ 971,344 $ 8,742,093 Net Rental Income $ 37,164 $ 445,968
Total $ 16,496,353 $ 12,500,783 $ 11,325,009 $ 300,000 $ 500,000 $ 500,000 $ 100,000 $ 2,800,000 $ 2,582,917 LIHTC TOTAL: 9,713,436$
Development Budget Higuera Heights - Exhibit 3A Higuera Heights Operating Budget - 4A

40

41
HIGUERA HEIGHTS
LOAN STRUCTURE
The structure of the Higuera Heights con-
struction loan assumes an 18 month loan
term with a commitment of 2.15% interest
from Wells Fargo. The construction loan con-
verts into a permanent loan with 6.50% an-
nual percentage rate (APR) at expiry and is
paid off through both the perm loan capital
and the remaining tax credit equity financ-
ing. The tax credit equity investor is assumed
to put 10% of their investment up front to fi-
nance the project, which allows the lender to
assume the majority of the construction risk.
The remaining 90% is used to pay off the
loan 90-days after the building is delivered,
and most likely fully leased. The project loan
financing is underwritten at a standard 5%
vacancy rate for affordable housing.
Although Wells Fargo has stipulated their
expected loan commitment terms of 2.15%
for the construction rate, and $86,500 in
loan fees/origination, we have underwrit-
ten the reserve to an implied rate of 4% and
$113,250 in fees to account for any financial
contingencies.
TAX CREDITS
Higuera Heights anticipates securing fund-
ing primarily through the Low Income Hous-
ing Tax Credit (LIHTC) program based on the
qualifications of the project and the very high
tie-breaker score. Higuera Heights will pro-
vide 50 affordable housing units for renters
at 50% area median income (AMI). The proj-
ect’s location in downtown San Luis Obispo,
affords excellent access to every major ame-
nity all within a 5 minute walking distance.
The project will participate in funding as part
of a quality census tract (QCT) zone, and vol-
untarily surrender over $3.1 Million dollars
(25%) of its LIHTC Eligible Basis to increase
its competitive tie-breaker score.
The Higuera Heights Plaza project is expect-
ed to cost roughly $14.4 Million to construct
a 40 unit, 49,500 sqft. retail and office plaza.
It provides a vibrant market hall with farmer-
vendors and sorely needed office space for
the general downtown area. Refer to exhib-
its 1B and 3B for more detailed development
budget information for this component. The
project is a relatively standard commercial
development, with 30% equity in place by
the existing developer and owner Rob Rossi,
and a 70% loan to finance it, shown in exhibit
2B.
Uneligible Costs Assumptions for LIHTC Total Budget Uneligible Costs Assumptions for LIHTC Total Budget
Affordable Component Total 16,496,353 Land Purchase $ 2,800,000
Uneligable Costs Total 3,995,569 Parking In Lieu fees $ 85,000
Eligible Basis for LIHTC 12,500,783 Consultants (Land Use, Outreach, etc.) $ 25,000
Real Estate Taxes $ 46,200
Operating Reserve $ 95,725
Total Eligible Basis $12,500,783 Third Party Market Study $ 8,000
QCT Allowance 1.30 Perm Loan Fee (1%) & Deposit $ 50,550
Total Adjusted Eligible Basis $ 16,251,017 TCAC Monitoring Fees $ 50,000
Applicable Fraction 1.00 Rent up & marketing $ 45,000
Total Qualified Basis $ 16,251,017 Syndication Consultant $ 50,000
Present Value Credit Percent 7.59% Legal, Broker, Due Dil, Title & Org. Costs, escrow $ 25,000
Annual LIHTC Amount $ 1,233,452 Tax Credit and Organization $ 40,000
Total Tax Credit Amount (x10) $ 12,334,522 Demolition $25,000
Equity Value of Tax Credits $ 1.05 $ 12,951,248 Construction Loan Interest Reserve $ 506,565
Construction Loan Fee and Expenses (1%) $ 113,250
Voluntary Surrender - Cut of 25.00% 3,083,631$ Construction Loan Inspection $ 20,000
New total tax credit Ask 75.00% 9,250,892$ Construction Loan Title and Escrow $ 15,000
New equity value of tax credits 1.05$ 9,713,436$ Total Uneligable Costs $3,995,569
Basis and Adjustments
Tax Credit Calculations - 6A
Uneligible Costs Assumptions for LIHTC Total Budget Uneligible Costs Assumptions for LIHTC
Affordable Component Total 16,496,353 Land Purchase
Uneligable Costs Total 3,995,569 Parking In Lieu fees
Eligible Basis for LIHTC 12,500,783 Consultants (Land Use, Outreach, etc.)
Real Estate Taxes
Operating Reserve
Total Eligible Basis $12,500,783 Third Party Market Study
QCT Allowance 1.30 Perm Loan Fee (1%) & Deposit
Total Adjusted Eligible Basis $ 16,251,017 TCAC Monitoring Fees
Applicable Fraction 1.00 Rent up & marketing
Total Qualified Basis $ 16,251,017 Syndication Consultant
Present Value Credit Percent 7.59% Legal, Broker, Due Dil, Title & Org. Costs, escrow
Annual LIHTC Amount $ 1,233,452 Tax Credit and Organization
Total Tax Credit Amount (x10) $ 12,334,522 Demolition
Equity Value of Tax Credits $ 1.05 $ 12,951,248 Construction Loan Interest Reserve
Construction Loan Fee and Expenses (1%)
Voluntary Surrender - Cut of 25.00% 3,083,631$ Construction Loan Inspection
New total tax credit Ask 75.00% 9,250,892$ Construction Loan Title and Escrow
New equity value of tax credits 1.05$ 9,713,436$ Total Uneligable Costs
Tax Credit Calculations - 6A
Uneligible Costs Assumptions for LIHTC Total Budget
Affordable Component Total 16,496,353 L
Uneligable Costs Total 3,995,569 P
Eligible Basis for LIHTC 12,500,783 C
R
O
Total Eligible Basis $12,500,783 T
QCT Allowance 1.30 P
Total Adjusted Eligible Basis $ 16,251,017 T
Applicable Fraction 1.00 R
Total Qualified Basis $ 16,251,017 S
Present Value Credit Percent 7.59% L
Annual LIHTC Amount $ 1,233,452 T
Total Tax Credit Amount (x10) $ 12,334,522 D
Equity Value of Tax Credits $ 1.05 $ 12,951,248 C
C
Voluntary Surrender - Cut of 25.00% 3,083,631$ C
New total tax credit Ask 75.00% 9,250,892$ C
New equity value of tax credits 1.05$ 9,713,436$ T
Tax Credit Calculati

42
Item Unit/Cost Funding Type
Project Square Footage 49670 Loans: Const
Land Aqcuitision 4,200,000$ Equity: Inves
Unit and Common Construction 6,350,500$ Total Funding
Site Development 251,079$
Local Fees 500,000$
Other Hard Costs 75,000$
Soft costs 2,558,030$
Hard Cost Contingency 358,828$
Soft cost contingency 127,901$
Total Development Costs 14,421,339$
Total Developed $/SF 290.34$
Higuera Heights Development Summary - Exhibit 1B Higuera Heigh
Item Total Budget Equity Investment Construction Loan
Permanent
Loan -
Operating Expen
Land Purchase $ 4,200,000 $ 4,200,000 General & Administrative
Advertising and credit checks
Hard Costs $ 7,535,407 $ 7,535,407 $ 7,535,407 Legal
Unit and Common Construction $ 6,350,500 $ 6,350,500 Accounting/audit
Site Development $ 251,079 $ 251,079 Supplies
Demolition $ 25,000 $ 25,000 Management fees 5% inclusive
Furnishings & Technology $ 50,000 $ 50,000 Telephone
Local Fees. development impact. Etc $ 500,000 $ 500,000
Hard Cost Contingency (5%) $ 358,828 $ 358,828 Utilities - Common Use (CAMS a
Electricity
Soft Cost $ 2,685,931 $ 2,685,931 $ 2,685,931 Gas
Architectural and Landscape $ 380,000 $ 380,000 Water & Sewage
Engineering $ 350,000 $ 350,000
Site Survey $ 20,000 $ 20,000 Payroll
In Lieu Parking fees $ 374,000 $ 374,000
Consultants (Land Use, Outreach, etc.) $ 25,000 $ 25,000 Maintenance personnel
Real Estate Taxes $ 69,300 $ 69,300 Med insurance/benefits
Construction Loan Interest Reserve $ 597,952 $ 597,952 Payroll taxes
Construction Loan Fee and Expenses (1%) $ 102,214 $ 102,214
Construction Loan Inspection $ 20,000 $ 20,000 Taxes and Insurance (CAMS app
Construction Loan Title and Escrow $ 15,000 $ 15,000 Property and liability insurance
Insurance $ 110,000 $ 110,000 CA Partnership Tax
Audit $ 10,000 $ 10,000 Real Estate Taxes (1.1%)
Appraisal and lender review $ 15,000 $ 15,000
Operating Reserve $ 81,000 $ 81,000 Operating & Maintenance (CAM
Third Party Market Study $ 8,000 $ 8,000 Repairs
Perm Loan Fee (1%) & Deposit $ 102,214 $ 102,214 Trash and Recycling
Environmental Review Phase 1 $ 10,000 $ 10,000 Grounds
Rent up & marketing $ 50,000 $ 50,000 Contract services
TI Allowance $ 193,350 $ 193,350
Legal, Broker, Due Dil, Title & Org. Costs, escrow $ 25,000 $ 25,000
Soft Cost Contingency (5%) $ 127,901 $ 127,901 Total Operating Expenses
Total $ 14,421,339 $ 4,200,000 $ 10,221,339 $ 10,221,339 Rental Incom
From Rent Schedule
Less: Vacancy (35%)
Net Rental Income
Development Budget Higuera Heights Plaza - Exhibit 3B Higuera Heights
st Funding Type Source Amount % total
Loans: Construction to Perm Loan 10,221,339$ 70.88%
4,200,000 Equity: Investment Equity 4,200,000$ 29.12%
6,350,500 Total Funding 14,421,339$ 100.00%
251,079
500,000
75,000
2,558,030
358,828
127,901
14,421,339
290.34
hibit 1B Higuera Heights Plaza Funding Breakdown - Exhibit 2B
FINANCIAL STRUCTURE10.

43
HIGUERA HEIGHTS
struction Loan
Permanent
Loan -
Operating Expenses Monthly Annual
% of
Total
General & Administrative
Advertising and credit checks $ 500.00 $ 6,000.00 1.68%
7,535,407 $ 7,535,407 Legal $ 200.00 $ 2,400.00 0.67%
6,350,500 Accounting/audit $ 400.00 $ 4,800.00 1.35%
251,079 Supplies $ 120.00 $ 1,440.00 0.40%
25,000 Management fees 5% inclusive $ 5,581.11 $ 66,973.36 18.78%
50,000 Telephone $ 75.00 $ 900.00 0.25%
500,000 $ 82,513.36 23.14%
358,828 Utilities - Common Use (CAMS applicable)
Electricity $ 300.00 $ 3,600.00 1.01%
2,685,931 $ 2,685,931 Gas $ 100.00 $ 1,200.00 0.34%
380,000 Water & Sewage $ 2,500.00 $ 30,000.00 8.41%
350,000 $ 34,800.00 9.76%
20,000 Payroll
374,000
25,000 Maintenance personnel $ 1,000.00 $ 12,000.00 3.37%
69,300 Med insurance/benefits $ 800.00 $ 9,600.00 2.69%
597,952 Payroll taxes $ 350.00 $ 4,200.00 1.18%
102,214 $ 25,800.00 7.24%
20,000 Taxes and Insurance (CAMS applicable)
15,000 Property and liability insurance $ 600.00 $ 7,200.00 2.02%
110,000 CA Partnership Tax $ 67.00 $ 804.00 0.23%
10,000 Real Estate Taxes (1.1%) $ 13,219.56 $ 158,634.73
15,000 $ 166,638.73 46.74%
81,000 Operating & Maintenance (CAMS applicable)
8,000 Repairs $ 1,500.00 $ 18,000.00 5.05%
102,214 Trash and Recycling $ 250.00 $ 3,000.00 0.84%
10,000 Grounds $ 1,500.00 $ 18,000.00 5.05%
50,000 Contract services $ 650.00 $ 7,800.00 2.19%
193,350 $ 46,800.00 13.13%
25,000
127,901 Total Operating Expenses $ 29,712.67 $ 356,552.09 100%
10,221,339 $ 10,221,339 Rental Income Monthly Annual
From Rent Schedule $ 171,727 $ 2,060,719
Less: Vacancy (35%) $ (77,277) $ (927,323)
Net Rental Income $ 94,450 $ 1,133,395
it 3B Higuera Heights Plaza Operating Budget - Exhibit 3B
HIGUERA HEIGHTS PLAZA
The Higuera Heights Plaza loan is also struc-
tured assuming an 18 month construction
loan, which converts entirely into a perma-
nent loan at expiry. The project is under-
written at a 35% vacancy rate to comply
with conservative assumptions required by
lenders. It is also underwritten with an APR
of 6.5% for the financing, and will cover op-
erating expenses, reserves, and debt service
at 50% occupancy.
A significant amount of pre-leasing would
occur in the year preceding construction, and
Higuera Heights Plaza would be delivered at
65% occupancy from pre-leasing alone. Our
needs analysis of the market robustly justi-
fies this occupancy assumption, which will
be accomplished through charging lower
rents than similar product types in the area.
Our developer, Mr. Rob Rossi, has assured us,
though his extensive experience as both a

44
FINANCIAL STRUCTURE10
developer and land owner in downtown San
Luis Obispo, that rent assumptions should
range from $3.50-7.00 per square foot (psf)
for this premier location. In order to prelease
the project, Live SLO housing studio expects
to bring in rents of only $3.25-5.00 psf in the
pre-leasing stages of the project. Commercial
and office occupancy rates in SLO County av-
erage 88% currently, so we believe it is rea-
sonable to assume we could achieve 65% in
the first year alone.
LOAN TERMS
Live SLO housing studio has obtained term
sheets to indicate the loan rates that can be
expected for the projects. The banks that
supplied the term sheets required an in-
depth justification of our assumptions for
rental income, operating expenses, reserves,
development budget, and compliance stan-
dards. These term sheets exist for two pur-
poses: to provide a concrete financing source
to show the project is finanically feasible and
viable as-is, and to provide a benchmark for
all of the financial assumptions that relate to
the development budget. Live SLO housing
studio has applied both the rate types and
terms stipulated in the term sheets for both
Higuera Heights, and Higuera Heights Plaza
directly to the development budget and debt
service expense provisions of the project
spreadsheets provided throughout this pro-
posal.
The market hall concept will synergize well
with the Higuera Heights affordable housing
units by providing local produce and easy
access to the intimate downtown pesestrian
culture. The primary reason for developing
Higuera Heights Plaza as a sub-component
of the Higuera Heights project is to comply
with the goals of the site’s C-R zoning dis-
trict, which calls for a mix of housing, retail
and commercial uses.
Both Higuera Heights and Higuera Heights
Plaza are financed with construction loans
that are converted into permanent loans at
expiry. The main difference between the fi-
nancing of the two projects is that Higuera
Heights project’s tax credit investor will pay
the remainder of the loan’s equity at perma-
nent loan conversion. The combination of
tax credit equity and permanent loan will ful-
ly repay the construction loan. Conversion of
the construction loan to the permanent loan
and final tax credit equity pay-in are subject
to the project achieving 95% occupancy for
90-days stabilized operations. The project’s
construction loan interest-only payments as-
sume a 15-month construction development
timeline with an additional 3-month lease-
up and occupancy period. The construction
loan includes two additional three-month
options to extend should there be a delay in
either construction or lease-up.
The project financing assumes construction
loan interest payments based on 0% of the
outstanding loan balance between months
1-3, in order to make use of other funding
sources first (HOME, AHP and County funds).
Subsequently, it provides 50% of the out-
standing balance between months 4-16. Fi-
nally, the loan interest reserve then provides
100% of the outstanding balance between
months 17-24 (including the two 3-month
options to extend). The interest reserve un-
derwriting rate is assumed to be 4% and
includes an additional 1.85% interest rate
cushion should rates fluctuate during the
course of the construction loan.

45
HIGUERA HEIGHTS
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Base Rental Revenues $ 469,440 $ 478,829 $ 488,405 $ 498,173 $ 508,137 $ 518,300 $ 528,666 $ 539,239 $ 550,024 $ 561,024 $ 572,245 $ 583,690 $ 595,363 $ 607,271 $ 619,416 $ 631,804 $ 644,441 $ 657,329
Ancillary Income $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Gross Rental Revenue $ 469,440 $ 478,829 $ 488,405 $ 498,173 $ 508,137 $ 518,300 $ 528,666 $ 539,239 $ 550,024 $ 561,024 $ 572,245 $ 583,690 $ 595,363 $ 607,271 $ 619,416 $ 631,804 $ 644,441 $ 657,329
Less: Vacancies @ 5% $ (23,472) $ (23,941) $ (24,420) $ (24,909) $ (25,407) $ (25,915) $ (26,433) $ (26,962) $ (27,501) $ (28,051) $ (28,612) $ (29,184) $ (29,768) $ (30,364) $ (30,971) $ (31,590) $ (32,222) $ (32,866)
Effective Gross Income $ 445,968 $ 454,887 $ 463,985 $ 473,265 $ 482,730 $ 492,385 $ 502,232 $ 512,277 $ 522,523 $ 532,973 $ 543,633 $ 554,505 $ 565,595 $ 576,907 $ 588,445 $ 600,214 $ 612,218 $ 624,463
Less: Operating Expenses $ (191,448) $ (197,191) $ (203,107) $ (209,200) $ (215,476) $ (221,941) $ (228,599) $ (235,457) $ (242,521) $ (249,796) $ (257,290) $ (265,009) $ (272,959) $ (281,148) $ (289,582) $ (298,270) $ (307,218) $ (316,434)
Replacement Reserves $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (19,999) $ (19,998) $ (19,997)
Net Operating Income $ 234,520 $ 237,696 $ 240,878 $ 244,064 $ 247,254 $ 250,444 $ 253,633 $ 256,820 $ 260,002 $ 263,177 $ 266,342 $ 269,496 $ 272,636 $ 275,759 $ 278,863 $ 281,945 $ 285,003 $ 288,031
Debt Service (6.5% APR) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910) $ (195,910)
Debt Service Coverage Ratio 1.20 1.21 1.23 1.25 1.26 1.28 1.29 1.31 1.33 1.34 1.36 1.38 1.39 1.41 1.42 1.44 1.45 1.47
Annual Cash Flow $ 38,610.49 $ 41,786.41 $ 44,968.41 $ 48,154.90 $ 51,344.19 $ 54,534.50 $ 57,723.97 $ 60,910.65 $ 64,092.48 $ 67,267.32 $ 70,432.89 $ 73,586.84 $ 76,726.68 $ 79,849.81 $ 82,953.52 $ 86,035.96 $ 89,093.15 $ 92,121.98
Year 1 2 3 4 5 6 7 8 9 10
Base Rental Revenues $ 2,060,719 $ 2,101,933 $ 2,143,972 $ 2,186,851 $ 2,230,588 $ 2,275,200 $ 2,320,704 $ 2,367,118 $ 2,414,460 $ 2,462,750
Ancillary Income $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Gross Rental Revenue $ 2,060,719 $ 2,101,933 $ 2,143,972 $ 2,186,851 $ 2,230,588 $ 2,275,200 $ 2,320,704 $ 2,367,118 $ 2,414,460 $ 2,462,750
Less: Vacancies @ 35% $ (721,252) $ (735,677) $ (750,390) $ (765,398) $ (780,706) $ (796,320) $ (812,246) $ (828,491) $ (845,061) $ (861,962)
Effective Gross Income $ 1,339,467 $ 1,366,257 $ 1,393,582 $ 1,421,453 $ 1,449,882 $ 1,478,880 $ 1,508,458 $ 1,538,627 $ 1,569,399 $ 1,600,787
Less: Operating Expenses $ (356,552) $ (367,249) $ (378,266) $ (389,614) $ (401,303) $ (413,342) $ (425,742) $ (438,514) $ (451,670) $ (465,220)
Replacement Reserves $ (20,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000)
Net Operating Income $ 962,915 $ 989,008 $ 1,005,316 $ 1,021,839 $ 1,038,580 $ 1,055,538 $ 1,072,716 $ 1,090,113 $ 1,107,730 $ 1,125,568
Debt Service (6.5% APR) $ (775,270) $ (775,270) $ (775,270) $ (775,270) $ (775,270) $ (775,270) $ (775,270) $ (775,270) $ (775,270) $ (775,270)
Debt Service Coverage Ratio 1.24 1.28 1.30 1.32 1.34 1.36 1.38 1.41 1.43 1.45
Annual Cash Flow $ 187,645 $ 213,738 $ 230,046 $ 246,569 $ 263,310 $ 280,269 $ 297,446 $ 314,843 $ 332,460 $ 350,298
Higuera Heights 18 Year Cashflow Analysis - Exhibit 5A
Higuera Heights Plaza 10 year Cashflow Analysis - Exhibit 5B

46

47
HIGUERA HEIGHTS
DEVELOPMENT TABLE11.
ID Task Name Start Finish
1 Entitlements 6/1/14 2/28/15
2 Development
Permit and
6/1/14 8/7/14
3 CEQA Initial St6/1/14 8/30/14
4 CEQ Design
and Review
9/1/14 12/31/14
5 Final Review
and Approval
1/1/15 2/28/15
6 Financing 6/1/14 8/15/15
7 Pre‐Developm
Financing ‐
SLO Housing
Trust Secured
6/1/14 7/30/14
8 9% Low
Income
Housing Tax
2/1/15 6/16/15
9 AHP Committm8/1/14 12/31/14
10 AHP Secured 1/16/15 8/14/15
11 Construction
Loan Secured
9/6/15 11/14/15
12 Permanent
Loan Secured
1/16/17 3/15/17
13 Design &
Construction
10/10/14 8/29/15
14 Design Phase‐
DD Set
10/10/14 2/28/15
15 Construction
Documents
3/3/15 5/30/15
16 Plan Check &
Approval
6/2/15 8/1/15
17 Contractor Bid6/2/15 8/1/15
18 Bid Selection
& Contract
8/4/15 8/29/15
19 Construction 9/1/15 4/7/17
20 Construction P9/1/15 3/31/17
21 Certificates of
Occupancy
4/1/17 4/7/17
22 Rent Up &
Property
9/30/16 6/30/17
23 Marketing &
Fair Housing
9/30/16 2/18/17
24 Tenant Selecti12/31/16 4/7/17
25 Stabilized
75%
4/1/17 6/30/17
Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2
2015 2016 2017

48

49
HIGUERA HEIGHTS
DEVELOPER CAPACITY12.
The Live SLO housing studio is partnered with Rob Rossi, a long standing California devel-
oper with deep roots in San Luis Obispo. Mr. Rossi graduated from Cal Poly in 1976 with a
degree in Architecture. He both develops and holds projects that have shaped the culture of
San Luis Obispo. He started his business with a $5,000 project, and grew it into what Rossi
Enterprises is today, a multimillion dollar company that has reshaped the future of San Luis
Obispo through construction and innovation in both land use and design. An abbreviated list
of his assets and developments include: the Promontory Office Complex after purchasing
the famous Fremont Theater, co-ownership of the Ancient Peaks winery and vineyards, the
Avila Village Inn off the Bob Jones Bike Trail, co-ownership in the buildings that compose the
French Hospital Medical Center in San Luis Obispo, the Granada Building in downtown San
Luis Obispo, and a nine-story office building on State Street in Santa Barbara.
Rossi has donated both his time and millions of dollars, philanthropically, here in SLO, and
genuinely cares about the impact his projects have on the SLO community. He has differen-
tiated himself as a developer with a keen eye for business and a great capacity to give back
to the community with quality designs that embrace the cultural heritage of the City. When
first meeting with Rob, he said he would “have no problem taking a short term financial hit,
so long as it would benefit the growth of San Luis Obispo, and pencil out in the long term”.
As our site’s land owner and developer partner, Rossi has allowed us to create an affordable
housing project that caters to a very specific need, (large family affordable housing in SLO)
while creating a vibrant, pedestrian-oriented project that contributes to an even more active
downtown culture.

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