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EXHIBIT 5 <br />,G01> <br />KEYSER MARSTON ASSOCIATES, <br />ADVISORS IN PUBLIC/PRIVATE REAL ESTATE DEVELOPMENT <br />MEMORANDUM <br />ADvisORs IN: <br />Real Estate <br />To: <br />Judson Brown, Housing Division Manager <br />Affordable Housing <br />Economic Development <br />City of Santa Ana <br />BERKELEY <br />A. Jerry Keyser <br />From: <br />Kathleen Head <br />Timothy C. Kelly <br />Debbie M. Kern <br />David Doezema <br />Date: <br />November 8, 2018 <br />LOSANGELFS <br />Kathleen H. Head <br />James A. Rabe <br />Gregory D. Soo -Hoo <br />Subject: <br />Cornerstone Apartments Rehabilitation Analysis <br />Kevin E. Engstrom <br />Julie L. Romey <br />SAN DIEGO <br />Paul C. Marra At your request, Keyser Marston Associates, Inc. (KMA) evaluated the proposal <br />submitted by Jamboree Housing Corporation (JHC) to restructure the financial <br />transaction for the 127 -unit Cornerstone Apartments (Project). The purpose of the KMA <br />analysis is to assess the impact of the proposed transaction on the loans that the City of <br />Santa Ana (City) and the Housing Authority of the City of Santa Ana (Housing Authority) <br />provided to the Project. <br />BACKGROUND STATEMENT <br />In 2001 and 2003, the City and the Authority provided 42 loans to a partnership that <br />used the loans to fund a portion of the costs incurred to acquire and rehabilitate the <br />Project (City Loans). The balance of the Project costs were funded with Tax -Exempt <br />Multifamily Bonds (Bonds) and 4% Low Income Housing Tax Credits (Tax Credits). As <br />requirements of the Bonds/Tax Credits and the City Loans, long-term income and <br />affordability covenants were imposed on the apartments. Specifically, the covenants <br />require the units to meet the following standards: <br />1. The units must be rented to very -low income households that earn less than 50% <br />of the area median income (AMI). The definition of very -low income is provided <br />in California Health and Safety Code Section 50105 (H&SC Section 50105). <br />500 SOUTH GRAND AVENUE, SUITE 1480> LOS ANGELES, CALIFORNIA 90071 > PHONE 213.622.8095 <br />W W W.KEYSERMARSTON.COM <br />80A-21 <br />1810020.SNA:KHH <br />19190.017.003 <br />