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EXHIBIT 2 <br />VI. HOME REQUIREMENTS <br />The following summarizes additional HOME requirements. <br />A. HOME Program Deadlines <br />Deadline <br />Acquisition <br />§92.2 states that acquisition of <br />N/A <br />housing will occur within 6 <br />months of contract date <br />Demolition/Construction <br />§92.2 states that <br />To occur by <br />construction/demolition of <br />August 21, 2019 <br />property is scheduled or <br />reasonably can be expected to <br />start within 12 months of the <br />agreement date (8/21/18). <br />Project Completion <br />§92.205(e)(2), 92.2 state that the <br />To be <br />project must be completed <br />completed <br />within 4 years of the date the <br />within 18 <br />funds are committed to the <br />months <br />project (8/29/2018). <br />Lease -up <br />§92.252 states that HOME <br />To be <br />assisted units must be occupied <br />completed <br />by an eligible tenant within six <br />within 6 <br />months following project <br />months <br />completion <br />B. Cost Reasonableness <br />The construction costs have been estimated in detail by a third party consultant, Advent <br />Companies, as of May 25, 2018. In addition, the indirect and financing costs were reviewed by <br />KMA and found to be reasonable when compared to similar project in the region. However, if <br />there are any changes to the scope of development or costs increases experienced by the <br />Project during construction, a third party will be required to review the revised estimates. <br />C. Written Agreement <br />The City must execute a written agreement (HOME Agreement) before committing HOME <br />funds to the Project. The written agreement must capture the Project and financing terms that <br />result from the underwriting process. The following summarizes the financial deal points <br />memorialized in the written agreement: <br />1. The term of the HOME Agreement as well as the term for the HOME Loan and the <br />HOME affordability restrictions is 55 years. <br />City of Santa Ana Underwriting & Subsidy Layering Review: Veteran's Village Page 117 <br />25L-27 <br />