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EXHIBIT 1 <br />Jamboree <br />411, <br />September 28, 2018 <br />Judson Brown <br />Housing Division Manager <br />City of Santa Ana <br />Community Development Agency, Housing and Neighborhood Development Division <br />20 Civic Center Plaza (M-26) <br />Santa Ana, CA 92701 <br />RE: Wakeham Grant Apartments Request for Resubordination <br />Dear Judson: <br />As you know, we have been diligently working to balance the capital needs evident onsite at <br />Wakeham Grant Apartments ("Cornerstone") with the available capital since earlier this year. <br />Located in one of the most expensive counties in California to live, we understand the value of <br />every affordable unit in the City's housing stock. The initial rehabilitation of Cornerstone left many <br />capital needs unmet, and we now have our only opportunity for the next 15+ years to properly <br />recapitalize the improvements to ensure the long term financial security of these affordable units. <br />That said, we similarly understand the concern that the City is not receiving any repayment from <br />this resyndication and have worked to restructure the capital to allow for $500,000 in <br />sale proceeds to repay the existing City obligation. This revised proposal allows us to <br />properly recapitalize Cornerstone to ensure the financial health of the property for the next 15 <br />years, as well as address several goals outlined in the City Strategic Plan. <br />We have generated a superior debt offer from Union Bank yielding about $1 million in additional <br />debt proceeds. It is important to understand that while the budget has decreased, short of the <br />loss of the community building, the overall scope of the rehab remains largely the same. In most <br />cases, we were able to identify VE opportunities stemming from using materials that were lower <br />cost, but of a quality necessary to preserve the long term economic health of Cornerstone. One <br />such example is identifying the silicon product for the reroofing, which costs a fraction of the TPO <br />overlay roof but maintains both the cool roof properties as well as the 20 year warranty. <br />J A M B 0 R E E H 0 U E I N G C 0 R P 0 P A T 1 0 N <br />REGIONAL DFFICES. <br />SACRAMENTO AND SAN DIEGO <br />17701 COWAN AVENUE SUITE 200 IRVINE CA 92614 <br />P84.9.263,9676 <br />F 949 263 0647 <br />jamboreehousing. com <br />