25L - AGMT VETERANS VILLAGE PROJ

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proposed project, contingent on conditions such as obtaining other financing for the project." However, this section goes on to clearly confirm that "[t]his preliminary award is not a commitment to a project. The written agreement committing the HOME funds to the project must meet the requirements of `commit to a specific local project' in the definition of `commitment' in §92.2 ..." Thus, while this letter is not a commitment as defined under the HOME Program of federal funds for Santa Ana as the term commitment is defined therein, Santa Ana intends that this letter evidence the City's preliminary award of the HOME Program Loan to the Developer for the Project subject to the conditions described below. Further, Santa Ana states its objective for the Developer to satisfy the provisions of the TCAC Regulations, in particular Section 10325, albeit there is no intention to violate HOME Program requirements, in particular 24 CFR 92.2. The amount of the HOME Loan to be provided to the Project has been determined based upon Santa Ana's review of the Developer's application and the development proforma and projected cash flows for the Project submitted by the Developer to Santa Ana as of May 5, 2017 ("Proforma"). The Unit Mix is an important part of the Developer's proposal to Santa Ana because the Project is intended to serve a target population of extremely low-income persons. The Project will also provide a preference for homeless veterans, which is consistent with the City's adopted Consolidated Plan and Five -Year Strategic Plan. The Community Development Agency's Executive Director has authority to approve revised development proformas and projected cash flows for the Project; provided, however, that the HOME Loan is not materially increased or extended. The City's obligation to provide the HOME Loan are subject to each of the following conditions: hi order for the HOME Loan to be committed in the form of a HOME Loan Agreement, all other financing must be place. The City may not enter into a written agreement that commits HOME funds until all other required funding has been secured by means of a firma commitment, a budget and production schedule has been established, and underwriting completed. In order to facilitate this process, the City will require the Developer to provide evidence of a firm commitment for any additional funds required by the Project. If the Developer cannot provide the financing commitments, their application will be denied. 2. Approval of the HOME Loan Agreement by the City Manager and Clerk of the Council for the City of Santa Ana. 3. Compliance with the HOME Program and applicable federal regulations set forth in 24 CFR Part 92. 4. Compliance with and completion of environmental review of the Project pursuant to the California Environmental Quality Act ("CEQA") and the National Environmental Protection Act ("NEPA") and approval thereof. 5. 75 of the 76 "Housing Units" at the Project shall and will be restricted to an "Affordable Rent" as defined by the California Tax Credit Allocation Committee Regulations for a period not less than 55 years pursuant to conditions, covenants and restrictions recorded against the Project in the Official Records, County of Orange, California. One (1) Housing Unit will be rented to an on-site property manager and will not be rent -restricted. 25L-6