title
CC:HA - ACTION ITEM - Approval of a Commitment Letter for a $21 Million Construction and Permanent Loan to 4464 Sepulveda Blvd, LP and Community Corporation of Santa Monica for the Jubilo Village Affordable Housing Project.
body
Meeting Date: September 8, 2025
Contact Person/Dept.: Jesse Mays - Assistant City Manager
Tevis Barnes - Director of Housing and Human Services
Lisa Soghor - Chief Financial Officer
Phone Number: City Manager's Office (310) 253-6000
Housing and Human Services (310) 253-5780
Finance Department (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/04/2025)
Department Approval: John Nachbar, City Manager (09/04/2025) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council and the Culver City Housing Authority (Housing Authority) Board discuss and, if desired, approve a Commitment Letter for a $21 million construction and permanent loan to 4464 Sepulveda, LP and Community Corporation of Santa Monica for the Jubilo Village affordable housing project.
BACKGROUND
Jubilo Village
Jubilo Village is a proposed 100% affordable housing development at 4464 Sepulveda Boulevard that will provide 93 affordable one, two and three-bedroom apartments to at-risk and low-income households, as well as two manager's units. Jubilo will be service-enriched and provide onsite supportive services through a partnership with Upward Bound House, a Culver City local emergency shelter for homeless children and their families. In addition to providing residents with access to resources, Jubilo will also include onsite property management services. Jubilo will be developed by 4464 Sepulveda, LP in partnership with Community Corporation of Santa Monica ("CCSM") on property owned by Culver Palms United Methodist Church ("the Church").
2022 Loan
In 2021, the City and Housing Authority executed a commitment to Jubilo of a $2 million construction and permanent loan. In 2022, the City and Housing Authority executed a commitment increasing the previous construction and permanent loan commitment to $4 million.
In 2023, the City agreed to serve as a pass through for a $1 million State of California grant facilitated by Assemblymember Isaac Bryan for Jubilo Village.
In 2024, the City and Housing Authority amended the loan and grant commitment letter with CCSM for the $4 million loan to add the $1 million pass-through grant.
2025 Loan
The Fiscal Year 2025-2026 Budget, approved on June 9, 2025, includes the $4 million loan from the Housing Authority Fund approved in Fiscal Year 2022-2023, the $1 million pass-through grant, and a new $16 million loan directed by City Council on March 10, 2025 for a total of $21 million. At the June 9 City Council meeting, the City Council provided direction on the terms of a $20 million loan and $1 million grant commitment letter which would replace the 2024 commitment letter. The City Council directed staff to negotiate a loan commitment letter with CCSM and return to City Council for approval of the letter.
DISCUSSION
The new loan commitment letter (Attachment 1) will supplement the 2024 loan commitment letter for a $4 million loan and $1 million pass-through grant to reflect the increase in funding and additional terms. The draft loan commitment letter will increase the City's loan commitment to a total of $21 million, which consists of $14 million in City funds, the $1 million grant from the state (which will be distributed as a loan from the City), and $6 million in Housing Authority funds. The letter has been negotiated with CCSM and is substantially in alignment with the terms included in the staff report for the June 9, 2025 City Council meeting. The letter also includes the additional policy direction provided by City Council at the meeting:
* Up to 49% of Jubilo Village units will be occupied by households earning no greater than 80% of Los Angeles County Median income. (Page 2, "Occupancy Restrictions")
* An uncured breach of State tax credit conditions will invalidate the City's loan commitment. (Page 9, #23(i))
* Jubilo Village will be leased-up according to the local preference policy of the City of Culver City (which includes priority to (i) persons and families who reside in Culver City, (ii) people who work full time or part time in Culver City, and (iii) children and their families attending K-12 school in Culver City (public or private)). (Page 9, #26)
* CCSM will conduct an affirmative advertising campaign in order to notify and to educate Culver City residents about how to apply for the upcoming units. The outreach will start prior to the application submission start date and will include advertising in local newspapers. CCSM will hold at least one community workshop prior to the application submission deadline that provides instructions on how to apply. CCSM will distribute information flyers to the Culver City Unified School District (CCUSD), Upward Bound House, Saint Joseph Center, Urban Alchemy, Exodus Recovery Inc., and other local service providers informing the public about Jubilo Village and the application process. (Page 9, #27)
Negotiations between City staff and CCSM after the June 9 meeting resulted in Loan Commitment Letter language that is in addition to or modified from the loan terms included in the June 9 staff report:
* The borrower entity has been changed to the limited partnership that is the project owner: 4464 Sepulveda Blvd., L.P., rather than Community Corporation of Santa Monica. 4464 Sepulveda Blvd., L.P. is a partnership consisting of Community Corporation of Santa Monica and the tax credit investor. The obligations related to indemnification will still apply to Community Corporation of Santa Monica. (Page 1)
* $9 million in funding will be provided throughout the construction period, which is expected to begin in November 2025 and conclude two years later in November 2027. Funds will be disbursed as documentation of eligible expenses is received, until the $9 million is exhausted. (Page 3, "Disbursement")
* $12 million in funding will be provided at issuance of the temporary certificate of occupancy, rather than at close of permanent financing, also subject to documentation of eligible expenses. The expected date of this funding remains the same (Fiscal Year 2026-2027). (Page 3, "Disbursement")
* Eligible expenses for reimbursement using City loan funds include construction of the housing project. No City or Housing Authority loan funds may be used for any developer fees, land lease payments, or costs and expenses for the design, construction, or operation for any building or facilities used for sectarian religious purposes. (Page 1)
* CCSM has already held the community meetings required as part of the City's earlier loan commitment. These occurred in 2022, 2023, and 2024. The references to these meetings have been removed from the Commitment Letter.
* The language regarding indemnification has been modified. (Page 9, #24)
* CCSM is required to complete an exclusive access agreement for Jubilo Village for internet services from the City's Culver Connect Municipal Fiber Network's ISP provider. (Page 9, #28)
* CCSM will be required to complete an agreement with the City for use of the Jubilo Village roof for an antenna mast and related equipment for the City's Culver Connect Municipal Fiber Network, as well as related conduit and ongoing power supply, at no cost to the City. This will facilitate high-speed internet data connectivity in City parks, and potentially businesses and residences. (Page 10, #29)
* CCSM will continue to apply for other funding sources, but CCSM will not reduce the City's loan amount accordingly should they obtain additional funding. (Page 10)
FISCAL ANALYSIS
The Adopted Budget for Fiscal Year 2025-2026 includes funding for Jubilo Village in the following amounts $6 million from the Housing Authority Fund (Fund 476), $1,557,080 from the Affordable Housing Linkage Fee (Fund 439), $442,920 from the General Fund, and $1 million from the pass-through grant from the State. Additionally, the Adopted Budget for Fiscal Year 2025-2026 created a new Committed Reserve for Jubilo Village in the amount of $12 million by moving funds from the City's Contingency Reserve for emergencies. The total amount of funding from the City and the Housing Authority for the Jubilo Village project is $21 million.
$9 million in funding will be provided throughout the construction period, which is expected to begin in November 2025 and conclude two years later in November 2027. Funds will be disbursed as documentation of eligible expenses is received, until the $9 million is exhausted.
The $12 million in funding set aside in the Committed Reserve for Jubilo Village will be provided at issuance of the temporary certificate of occupancy, rather than at close of permanent financing, also subject to documentation of eligible expenses. The expected date for release of this funding is in Fiscal Year 2026-2027.
ATTACHMENTS
1. 2025-09-08 ATT Draft Loan Commitment Letter
MOTION(S)
That the City Council and the Housing Authority Board:
1. Approve a loan commitment letter to 4464 Sepulveda Blvd., L.P. and Community Corporation of Santa Monica for a $21 million construction and permanent loan; and
2. Authorize the City Attorney/Housing Authority General Counsel to review/prepare any necessary documents, including a loan commitment letter and loan agreement based on the terms of the loan commitment letter; and
3. Authorize the City Manager/Executive Director to execute such documents on behalf of the City/Authority.