19D - AFFORDABLE HOUSING RFP - Laserfiche WebLink

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Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC's) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects All new construction projects shall be affordable to households whose income, as adjusted for household size, does not exceed 80% of area median income. Eligible acquisition and/or rehabilitation projects will: 1) have four or more apartments or be congregate housing 'or mobile home units, except where the Housing Division Manager finds that the project will provide a substantial public benefit; 2) be in need of rehabilitation as defined herein; - 3) be located in the City of Santa Ana; 4) be free from significant adverse environmental,conditions, except those that can be mitigated at a reasonable cost through rehabilitation; ands, 5) minimize tenant displacement. Eligible Uses and Activities ` Program funds can be used to make loans or grants to eligible borrowers who will provide affordable housing, principally for low- and moderate -income househblds_: - Eligible uses of deferred payment loan funds or grants include, but are not limited to, the following: 1) acquisition and/or rehabilitation of eligible properties for rental or transitional housing; 2) acquisition and conversion of non-residential property to multifamily rental housing units; and 3) new construction of housing units for rental or transitional housing. Affordability Requirements As required by State law, all projects shall be targeted to households earning 80% or less of the area median income, based on the Statb of California Housing and Community Development income and rent limits. State law also requires that at least thirty percent (30%) shall be expended for rental housing affordable to and occupied by "low-income' households does not exceed thirty percent (30%) of the area median income and no more than twenty percent (20%) affordable to and, occupied by households between 60% of the area median income and 80% of the area median income. Units are considered affordable when,the'rent, less a deduction for a utility allowance, for a "very low-income" household does not exceed thirty percent (30%) of 50% of the area median income; for a "low-income" household does not exceed thirty percent (30%) of 60% of the area median income. Very low-income households are households whose incomes do not exceed 50% of the area median income. Low-income households are households whose incomes do not exceed 80% of the area median income. The area median income as referenced above is the Orange County area median income figure, adjusted for household size, as published by the California Department of Housing and Community Development (HCD) from time to time. Security The loan or grant shall be secured by a Deed of Trust and Promissory Note which may be subordinated to deeds of trust securing other Federal, State, or City loans, or loans from conventional financing institutions used in conjunction with the Low and Moderate Income Housing Asset Fund loan on the same property. The City must City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Pa a 15 19 -19