Westminster Housing Authority
SUBJECT
Title
Conditional Award of Funding under the 2025 Westminster Housing Authority Notice of Funding Availability (NOFA) for New Construction Affordable Rental Housing.
End
From: Christine Cordon, Executive Director
Requested by: Administration
Prepared by: Michael Son, Housing Specialist
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RECOMMENDED ACTION
Recommendation
A. Approve a conditional funding commitment in the amount of $3,000,000 in Westminster Housing Authority funds to Retirement Housing Foundation for the development of Milton Manor, subject to the conditions outlined in the Conditional Commitment Letter; and
B. Authorize the Executive Director to execute the loan agreement and all associated documents, in forms approved by the Westminster Housing Authority Legal Counsel, upon satisfaction of the conditional award terms.
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BACKGROUND
The Westminster Housing Authority (WHA) was established to oversee and manage housing assets transferred from the former Westminster Redevelopment Agency. As the housing successor agency, the WHA is responsible for:
• Administering housing funds that support the development and preservation of affordable housing;
• Ensuring long-term affordability covenants are maintained;
• Partnering with experienced developers, non-profit organizations, and public agencies to increase the supply of housing for lower-income households;
• Complying with State housing laws, including those governing excess surplus, income targeting, and affordability requirements.
The WHA plays a central role in advancing the City’s housing goals, supporting the production of new affordable housing, and ensuring housing stability for low income households in Westminster.
Notice of Funding Availability (NOFA)
On March 17, 2025, a NOFA was released making $3 million in WHA funding available for the new construction of affordable rental housing in Westminster. The NOFA prioritized projects that serve extremely low- to lower-income households and special needs populations, with an emphasis on thirty percent of the units restricted to extremely low-income households, 30% of the Area Median Income (AMI).
To ensure equal opportunity, the NOFA was posted online at the City’s Request for Proposal webpage, allowing all interested and eligible applicants to respond.
By the April 14, 2025 deadline, the WHA received three responses:
• Retirement Housing Foundation - A 54-unit senior housing project.
• 14125 Goldenwest L.P. / American Family Housing - A 29-unit special needs housing project.
• Golden Trophy Partners - A 13-unit senior mixed-use development.
Each application was evaluated based on the NOFA criteria, including developer experience and qualifications, project budget, sources and uses of funds, project readiness, populations served and affordability unit production.
Importantly, this funding action addresses the WHA’s excess surplus balance. In accordance with Health and Safety Code Section 34176.1(d), the WHA must encumber its excess surplus by April 2026. Failure to do so will result in forfeiture of the unencumbered amount to the State. Awarding funds through this NOFA ensures compliance with State Law.
Recommended Award
Applicant: Retirement Housing Foundation
Site Address: 13800 Milton Avenue, Westminster, CA 92683
Project Type: New Construction
Target Population: Seniors
Total Units: 54 units
WHA-Assisted Units: 20 units restricted at 30% AMI
WHA Loan Request: $3,000,000
Loan Terms (Proposed): 4.56% simple interest, loan repaid through residual receipts
The proposed project received land use entitlements in advance of the NOFA. The Westminster Planning Commission recommended project approval at its February 21, 2024 meeting. The Westminster City Council subsequently approved the project on April 10, 2024.
Analysis
The application meets the threshold requirements of the NOFA based on the following:
• Experience: The applicant has successfully developed and managed 181 affordable housing projects, with comparable unit mix and financing structures.
• Readiness: Site control has been established, and land use approvals have already been secured.
• Affordability: The proposed unit mix meets or exceeds the proportionality requirements under SB 341, with 20 units restricted for extremely low-income households.
• Population Served: The project targets Seniors, aligning with WHA priorities.
• Funding Leverage: The project includes commitments or applications for other financing sources.
Conditional Award Terms
The conditional award of WHA funds is subject to the following conditions:
• WHA Board Approval: Final approval by the Westminster Housing Authority Board.
• Permits and Entitlements: Developer must obtain all applicable City and regulatory approvals prior to construction.
• Evidence of Financing: Proof that all other project financing sources have been secured (e.g., tax credits and/or other federal/state/local funds).
• Affordability Compliance: 20 units must be restricted to extremely-low income households at or below 30% AMI.
• Development Milestones: Submission of an updated timeline for construction, lease-up, and stabilization.
• Loan Documentation: Execution of a loan agreement, promissory note, deed of trust, and regulatory agreement with a 55-year affordability covenant to be recorded against the property.
Next Steps
If the recommended action is approved, WHA staff will:
• Issue a conditional award letter to Retirement Housing Foundation;
• Coordinate with the Retirement Housing Foundation to satisfy pre-loan conditions including securing all financing, permits, and entitlements;
• Finalize loan documentation in consultation with the Authority Counsel; and
• Return to the WHA Board if any material modifications to the terms are required before execution.
Execution of the loan agreement and recordation of associated documents will occur prior to disbursement of WHA funds.
FISCAL IMPACT
Funding in the amount of $3,000,000 will be committed from the Westminster Housing Authority’s fund. Encumbering these funds before April 2026 will ensure compliance with State requirements and avoid forfeiture of excess surplus funds to the State.
LEGAL REVIEW
The Westminster Housing Authority Legal Counsel/City Attorney’s Office has reviewed as to form.
CONCLUSION
Awarding WHA funds to Retirement Housing Foundation advances the WHA’s goals to increase the supply of affordable rental housing and comply with State regulations regarding excess surplus. The recommended project meets all NOFA requirements and demonstrates the experience, capacity, and readiness necessary to successfully deliver long-term affordable housing for the Westminster community.
ATTACHMENTS
1. Draft Conditional Award Commitment Letter_13800 Milton
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office/Westminster Housing Authority Legal Counsel
Christine Cordon, City Manager/Executive Director