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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 21, 2018 <br />TITLE: <br />APPROVE LOAN AGREEMENT WITH <br />SANTA ANA VILLAGE LP FOR THE SANTA <br />ANA VETERANS VILLAGE PROJECT - <br />GRANTFUNDED <br />{STRATEGIC PLAN NO 5,3) <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s' Reading <br />❑ Ordinance on 2n° Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and the Clerk of the Council to execute a Loan Agreement with <br />Santa Ana Village LP (c/o Jamboree Housing Corporation) for $352,962.90 in HOME <br />Investment Partnerships Program funds to create 75 units of permanent supportive housing at <br />3312 West 1St Street in Santa Ana, subject to non -substantive changes approved by the City <br />Manager and City Attorney. <br />Authorize the City Manager and Clerk of the Council to execute a Subordination Agreement <br />with Union Bank, for the Loan Agreement with Jamboree Housing Corporation, subject to non - <br />substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />As an entitlement jurisdiction, the City of Santa Ana annually receives federal grant funds through <br />the HOME Investment Partnerships Program (HOME) for the development of affordable housing. <br />The HOME Program regulations require that entitlement jurisdictions set-aside at least 15 percent <br />of their annual HOME Program allocation for housing that is developed, owned, or sponsored by <br />Community Housing Development Organizations (CHDO). A CHDO is a nonprofit, community- <br />based organization with the capacity to develop affordable housing for the community. In order to <br />qualify for designation as a CHDO, the organization must meet the requirements pertaining to <br />their legal status, organization structure, capacity, and experience as required by the HOME <br />regulations. <br />Jamboree Housing Corporation is on the City's Approved List of CHDOs and is prequalified to <br />apply for the 15 percent set-aside of HOME Program funds. On May 5, 2017, Jamboree Housing <br />Corporation submitted a proposal to the City forfor the development of the Santa Ana Veterans <br />Village project. On June 20, 2017, a pre -commitment letter for a loan of up to $504,550 was <br />provided to Jamboree (Exhibit 1). Due to timing constrain lts from HUD for the use of the funds, <br />the pre -commitment was reduced to $352,962.90. <br />25L-1 <br />