REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 7, 2025
FROM
CARRIE HARMON, Director, Community Development and Housing
SUBJECT
Title
Consent to Transfer of Ownership of the Village Green Apartments
End
RECOMMENDATION(S)
Recommendation
1. Consent to the transfer of ownership of the Village Green Apartments in the City of San Bernardino, from Village Green Preservation L.P. to Village Green Tax Credit L.P.
2. Approve the Assignment, Assumption and Consent Agreement with Village Green Preservation L.P. and Village Green Tax Credit L.P.
3. Approve Amendment No. 2 to Agreement No. 20-124 for the Assignment and Assumption of and Second Amendment to Accessibility Agreement between Village Green Preservation L.P. and Village Green Tax Credit L.P.
4. Authorize the Chief Executive Officer, or the Director of the Community Development and Housing Department, to execute any non-substantive amendments to the Assignment, Assumption and Consent Agreement, Accessibility Agreement No. 20-124, and any escrow instructions related to the sale of the Village Green Apartments, subject to review by County Counsel.
5. Direct the Director of Community Development and Housing Department to transmit all non-substantive amendments to the Assignment, Assumption and Consent Agreement, and Accessibility Agreement No. 20-124 related to the sale of the Village Green Apartments to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Carrie Harmon, Director, 382-3983)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote the Countywide Vision.
Create, Maintain and Grow Jobs and Economic Value in the County.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item does not impact Discretionary General Funding (Net County Cost). All costs associated with the refinance of the Village Green Apartments will be borne by Village Green Tax Credit L.P.
BACKGROUND INFORMATION
The Community Development and Housing Department (CDH) works to expand and preserve affordable housing opportunities, strengthen neighborhoods, and support community revitalization throughout San Bernardino County. CDH administers a range of state and federal programs that fund affordable housing development, shelter and supportive services, infrastructure, and community-based initiatives that improve quality of life for county residents. CDH also manages a portfolio of more than 500 low-income housing units developed with County funds. Oversight of this portfolio includes monitoring affordability restrictions and assessing the physical condition of properties to ensure their long-term use within the community. To address deferred maintenance, existing affordable housing developments often seek refinancing to secure funding for necessary rehabilitation and improvements.
The Village Green Apartments (Project) is a 184-unit affordable housing development in the City of San Bernardino that has served County residents since 2000. With 74 units reserved for households earning no more than 60% of Area Median Income, the Project has maintained its affordability commitments throughout multiple ownership transfers. The County originally supported the Project in 1998 through the issuance of $5.29 million in Multifamily Housing Revenue Bonds. Since that time, the property has undergone several transfers of ownership, each approved by the Board, while continuing to meet affordability and compliance requirements.
On November 1, 2011 (Item No. 21), the Board of Supervisors (Board) approved bond payoff by SB Village Green Apartments L.P. and transfer of ownership to Post Investment Group, LLC. Affordability restrictions were assumed by the new owner.
On March 11, 2014 (Item No. 10), the Board approved Amendment No. 2 to the Regulatory Agreement, which ensures the Project remains affordable by setting income limits, rent restrictions and long-term compliance requirements. The updates to the Agreement included establishing annual County monitoring fees and clarifying the multiple affordability requirements and consenting to the transfer of the property to PD Village Green L.P., which assumed all obligations under the Agreement.
On March 10, 2020 (Item No. 27), the Board approved the sale and transfer of the Project to Strategic Realty Holding, LLC, with all terms of the existing Regulatory Agreement remaining in effect. As a condition of the sale, a Certified Access Specialist inspection was conducted, identifying accessibility deficiencies. This led to the Board approving Accessibility Agreement No. 20-124, which requires remediation of all deficiencies as outlined in the scope of work.
On October 25, 2022 (Item No. 32), the Board approved the sale of the Project to SP Affordable Housing Group IV LLC., along with approval of Assignment, Assumption, and Consent Agreement No. 22-1007, and First Amendment to the Accessibility Agreement No. 20-124, with Village Green Preservation L.P. assuming all restrictions and obligations.
In May 2025, Las Palmas Housing & Development Corporation, serving as Managing General Partner and Developer for Village Green Tax Credit L.P., secured a $34.9 million allocation of 4% Federal Tax Credits and related tax-exempt bonds through the California Debt Limit Allocation Committee (CDLAC). This allocation was secured to support the proposed rehabilitation of Village Green Apartments.
This proposed rehabilitation, with an estimated cost of $70.8 million, will be financed through multiple sources, including $34.9 million in funding secured through CDLAC as noted above, $24.9 million in Low-Income Housing Tax Credit equity, a $3.25 million sponsor loan, $3.3 million from the operating reserve account, $3.7 million in deferred developer fee equity, and $800,000 in deferred maintenance reserves.
Construction is anticipated to begin in fall 2025 and conclude by summer 2027. The rehabilitation will modernize all units, correct accessibility deficiencies, address deferred maintenance, and implement health and safety improvements. At the same time, Project affordability restrictions will be extended for an additional 55 years to ensure the long-term preservation of this critical affordable housing resource. Beyond physical improvements, the Project will continue and expand resident services, such as after-school programs, adult education, and health and skill-building classes, recognizing that stable housing paired with supportive services strengthens families and fosters long-term community well-being.
The Low-Income Housing Tax Credit program - the federal program providing the tax credits awarded by the CDLAC - requires a restructuring of ownership prior to utilization of funds. Board approval of this item will authorize the transfer of ownership required to access the CDLAC-allocated funds described above and implement the rehabilitation of the Project.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on September 24, 2025; and County Finance and Administration (Paul Garcia, Administrative Analyst, 386-8392) on September 25, 2025.