CalHFA board approves North City permanent loan and MIP subsidy for San Marcos project

The California Housing Finance Agency Board on Feb. 20 approved the final permanent loan commitment for North City, a 224‑unit family project in San Marcos, San Diego County.

CalHFA staff said the transaction will include a $39,150,000 permanent loan and a $4,000,000 Mixed Income Program subsidy. Staff told the board the project will be a four‑story elevator‑served building that targets units between 30% and 70% of area median income and includes an underwriting exception related to a local density‑bonus agreement.

Staff also described the capital stack, noting taxable construction debt and a developer deferred contribution (listed in documents as Carmel Enterprises LLC) as part of the permanent financing plan. Staff said these were negotiated elements of the transaction and that underwriting had accounted for construction‑to‑perm timing, repayment priority and residual‑receipts flow.

The motion to approve Resolution 25‑04 was made by Mr. Henning, seconded by Director Sotelo, and carried on a roll call that recorded affirmative votes from Chair Cervantes; Miss Kurgan; Mr. Henning; Mr. Prince; Mr. Fiegels; Miss Sotelo; Mr. Olmstead; Dr. White; and Mr. Williams. The public record includes an earlier statement that a director would recuse from this item; the roll call did not show any listed recusals at the time of the vote.

Why this matters: The approval demonstrates CalHFA’s continuing pairing of MIP subsidy with permanent CalHFA financing to address financing gaps in multifamily projects and the agency’s willingness to accept complex capital stacks that include taxable construction funding and deferred developer contributions.

Where it goes next: Staff will finalize documentation and proceed to closing under the board‑approved terms.