Orange Senior Housing Inc

TO PROVIDE HOUSING AND SUPPORTIVE SERVICES TO LOW AND MODERATE INCOME INDIVIDUALS AND FAMILIES.

DURING 2022, OSH CONTINUED IN ITS ROLE AS THE MANAGING GENERAL PARTNER OF THE TRIANGLE TERRACE AFFORDABLE LIMITED PARTNERSHIP, WHICH OWNS A 75-UNIT SENIOR AFFORDABLE APARTMENT COMMUNITY THAT WAS CONSTRUCTED FOR OSH IN THE 1980S, THEN RECAPITALIZED INTO A TAX CREDIT PARTNERSHIP AND RENOVATED DURING 2015-2016. HUD CLOSED OUT A SUCCESSFUL REAC INSPECTION WITH A REPORT IN JANUARY. A NEW PROPERTY MANAGEMENT ORGANIZATION, CONAM, WAS RETAINED AND BEGAN WORK ON MAY 1 WITH A NEW RESIDENT MANAGER AND MAINTENANCE TECHNICIAN. MJ HOUSING & SERVICES CONTINUED UNDER CONTRACT THROUGHOUT THE YEAR TO PROVIDE THE PART-TIME RESIDENT SERVICE COORDINATOR. OCCUPANCY FOR THE PROPERTY EXCEEDED 95% FOR THE YEAR. A SCHEDULED RENT INCREASE IN THE HOUSING ASSISTANCE PAYMENTS CONTRACT BETWEEN THE PARTNERSHIP AND THE US DEPARTMENT OF HOUSING & URBAN DEVELOPMENT (HUD) WAS RECEIVED IN NOVEMBER, EFFECTIVE ON DECEMBER 1, 2021. A DISTRIBUTION OF CASH IN DECEMBER FULLY PAID THE DEVELOPER FEE THAT WAS OWED FROM THE 2017 RENOVATION; OSH RECEIVED ITS CONTRACTED PROPORTION OF THAT FEE. OSH'S PARTNERSHIP INTEREST IN TRIANGLE TERRACE IS HELD BY A WHOLLY-OWNED SUBSIDIARY ORGANIZATION THAT IS A TAXABLE ENTITY. THERE IS A STAFF SERVICES AGREEMENT BETWEEN OSH AND ITS SUBSIDIARY ORGANIZATION.OSH ALSO CONTINUED THE PROCESS TOWARD DEVELOPING A NEW COMMUNITY OF SENIOR AFFORDABLE APARTMENTS NAMED KATELLA TERRACE ON 1.54 ACRES OF LAND IN THE CITY OF ORANGE. ENTITLEMENT TO CONSTRUCT 74 APARTMENT HOMES ON THE SITE WAS APPROVED BY THE CITY COUNCIL IN SEPTEMBER 2019. AS 2022 BEGAN, OSH CONTINUED ITS DISCUSSIONS WITH THE CITY OF ORANGE REGARDING FINANCIAL SUPPORT FOR THE PROJECT. IN FEBRUARY, THE CITY COUNCIL ADDOPTED A RESOLUTION TO ACCEPT A DONATION OF THE DEVELOPMENT SITE FROM OSH AND LEASE IT FOR 60 YEARS TO AN AFFILIATE OF OSH FOR THE DEVELOPMENT OF THE PROJECT. IN APRIL, THE CITY COUNCIL APPROVED A DISPOSITION & DEVELOPMENT AGREEMENT WITH A TO-BE-FORMED PARTNERSHIP BETWEEN OSH AND HORIZON-ELOM HOLDINGS TO LEASE THE SITE AND DEVELOP KATELLA TERRACE. IN JUNE, (1) THE CITY COUNCIL APPROVED A $780,000 LOAN OF HUD HOME INVESTMENT FUNDS TO OSH TO ASSIST WITH CONSTRUCTION OF THE PROJECT; (2) THE CITY ACCEPTED A DEED TO THE DEVELOPMENT SITE FROM OSH; AND (3) KATELLA TERRACE LIMITED PARTNERSHIP (KTLP) WAS FORMED BETWEEN OSH AND HORIZON-ELOM HOLDINGS. ON JUNE 30, KTLP APPLIED TO THE CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE (CTCAC) FOR AN ALLOCATION OF FEDERAL AND STATE TAX CREDITS TO FINANCE THE PROJECT. BY EXECUTING A RESERVATION LETTER DATED DECEMBER 15, KTLP ACCEPTED AN AWARD OF TAX CREDITS FROM CTCAC VALUED AT $26,974,000. DEVELOPMENT OF THE PROJECT IS FULLY FUNDED. PER CTCAC REGULATIONS, THE CONSTRUCTION OF KATELLA TERRACE MUST BEGIN BEFORE JUNE 30, 2023.