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Given that the units are not uniform in size, KMA used the Standard Method to determine the <br />cost allocation. As detailed in Table 5, KMA estimated that eligible project costs equate to $638 <br />per square foot of gross residential area. Therefore, a total of $7.70 million can be allocated to <br />the 11 HOME -designated units as specified in AppendixA —Table 5. <br />However, there is also a maximum HOME subsidy requirement that must be met. In order to <br />commit $2,627,631 to this Project, based on the 2018 maximum subsidy limits, three one - <br />bedroom units and eight three-bedroom units need to be restricted as HOME units. <br />The following summarizes the maximum HOME subsidy that can be made to the Project based <br />on 11 HOME units: <br />Maximum I <br />HOME Minimum HOME <br />Assistance Designated <br />Proposed HOME Assistance $2,627,631 N/A <br />Cost Allocation Test $7,695,589 11 units <br />Maximum Subsidy Test $2,627,632 11 units <br />Maximum Allowable HOME Subsidy $2,627,631 11 units <br />F. Affordability Period <br />The HOME assisted units must meet the affordability requirements for not less than the <br />applicable period specified in the following table, beginning after project completion: <br />Projects <br />Acquisition / Rehabilitation Projects: <br />Minimum <br />Affordability <br />PeriodRental <br />HOME Funds Under $15,000 per Unit <br />5 Years <br />HOME Funds Under $15,000 - $40,000 per Unit <br />10 Years <br />HOME Funds Over $40,000 per Unit <br />15 Years <br />Rehabilitation Projects Involving Refinancing <br />15 Years <br />New Construction Projects <br />20 Years <br />The HOME Program affordability requirements must: <br />1. Apply without regard to the term of any loan or mortgage, repayment of the HOME <br />investment, or the transfer of ownership; <br />2. Be imposed by a deed restriction, a covenant running with the land, an agreement <br />restricting the use of the property, or other mechanisms approved by HUD and must <br />give the City the right to require specific performance; and <br />3. Must be recorded in accordance with State recordation laws. <br />City of Santa Ana HOME Subsidy Layering Review: Santa Ana Arts Collective Page 120 <br />25J-42 <br />