I was honored to lead a team in the second annual Urban Land Institute "1000 Homes" real estate development competition to create permanent supportive housing proposals for a partner city. Our team, comprised of 3 UCLA Anderson EMBA students, 2 USC MREDs and a fabulous architect, was paired with Pasadena and asked to develop housing for homeless families. On June 3, we were awarded "best presentation" and were thrilled at the judges' accolades for our needs analysis, thoughtful and beautiful design, proformas and service proposal. Great work and thank you to Colleen Edwards, Tish Glaser, Jimmy Miyoshi, Archana Rajan, Ujjal Ghoshtagore, and our fabulous advisor, Dale Yonkin. And of course, we must thank Bill Huang and Anne Lansing, our clients from the City of Pasadena. Enjoy!

1. Housing homeless families in pasadena Colleen Edwards, UjjalGhoshtagore, Tish Glaser, Jimmy Miyoshi, Nancy Sagar, ArchanaRajan, advisor Dale Yonkin

2. Welcome The Problem (Ujjal) Target Population (Nancy) Site Selection (Colleen) Design (Jimmy) Services (Arch) Pro Forma Financials (Tish) Wrap-up (Ujjal)

4. Lack of affordable housing

6. Housing gap 14 units at Euclid Villa 50 beds at the Family Center No PSH for families “The dire lack of affordable housing in Pasadena is both a leading contributor to the homeless crisis and a fundamental barrier to chronically homeless families to overcome their homelessness. ” - Marv Gross, CEO, Union Station Homeless Services 500 families at risk

7. Target population 75 children 36 adults

9. Substance abuse, self-medication

10. Domestic violence

11. Victimized

12. PTSD, depression, anxiety

13. Physical or developmental disabilities (31%)

14. 3+ major health problems (62%)

15. Unable to get medical treatment

16. Pregnancy (7%)

17. Limited life skills

18. Limited financial stability

19. Poor support system

20. Distrustful

21. Limited parenting skills

22. Abusive behaviors“Many of these people were born into poverty. They have suffered abuse and self-medicated, sometimes when they were kids. It’s not an accident that they’re homeless. It’s a wonder they weren’t homeless earlier.” - Marv Gross, CEO, Union Station Homeless Services

24. Behavioral problems

25. Learning disabilities

26. Greater illness than “housed” children

27. Social & emotional delays

29. Plan A: Best Western Inn Asking $9.8 million

30. Plan B: La Pasada Inn 24 feet too close to the highway Disqualified from City of Industry funding

31. Plan C: 3620 E. Colorado 18,870 sq ft 9,435 sq ft

32. Elizabeth Carniceria Apartments

33. Adjacent Property

35. <1 m to Ralph’s

36. <½ m to Pasadena City Library

37. <¾ m to Eaton Blanche Park

38. <½ m to Wilson Elementary School

39. <½ m to Wilson Middle School

45. Services Primary Goal: Retention “They say they will participate in services, but they don’t. You must remove all barriers for their participation.” – David Garcia, Pacific Services

46. Onsite Services Union Station Homeless Services

47. Property Management The John Stewart Company Tenant Qualification 24 hour onsite Manager Annual Reporting Case Management Onsite Property Manager Case Managers Tenancy Agreement Low Control Onsite Workshops Family/Kids Services Strong Partnership = Successful PSH

48. Educate Engage Enhance Local Residents PSH For Families Local Businesses Local Schools Community Outreach Educate Disperse Fears, misconceptions Engage Bus tours Volunteering Student Internships Enhance Events, Art projects Story time for kids Educate New Neighbor on the block Engage Discuss Needs Of residents Enhance Provide Business Set up Contracts Educate Project Briefing Engage Fund raisers, Events Enhance Refer homeless To suitable home Educate Benefits to City, Children, Families Engage Direct involvement for political support Enhance City Projects participation by PSH residents Educate Psychological effects of homelessness Engage Obtain help to spot homeless families Enhance Kids events Educate Engage Enhance Nonprofits, City Departments City Officials / Political Support Build Community Support – Educate Engage Enhance

49. Sources & Uses

50. Threshold Basis Calculation

51. Pro Forma Income & Expense SummaryFamily / 9% Tax Credits

52. 15-Year Cash Flow Projection Tiny but positive!

53. Final Thoughts Our approach is replicable, and our proposal helps families and children -- a logical growth area for permanent supportive housing.

54. Q&A Thank you!

55. Best Western Site Too large, too expensive, too risky to finance Lot size (~ 1 acre) and structure (63 motel rooms) larger than needed Population study indicates ~ 30 units is right size Too large a project may alienate community, instead of engaging it $9.8 million asking price reflects value as a going concern Perhaps negotiable to 8-9 million, plus 1-2 million in renovation -> total 9 – 11 million project cost Using 1.66 units per PSH unit -> 37-38 units, 25% more than selected site High acquisition cost is penalized in competitive loan applications; project unlikely to reach fruition

56. Comparables

57. Property details Substandard apartments Adjacent property 2915 sq ft market built 1946 216 sq ft accessory building built in 1949 (8) 1-bedrooms @ 297 sq ft Total 2,376 sq ft, built in 1957 (8) 1-bedrooms @ 434 sq ft each Total 3,472 sq ft, built in 1954 (2) 2-bedrooms @ 581 sq ft Total 1,162 sq ft, built in 1924, remodeled in 1948) (2) commercial buildings measuring 2,000 & 2,520 sq ft Built in 1932

58. C-3 Zone Summary of Entitlements