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Loan Agreement with Santa Ana Village LP <br />December 4, 2018 <br />Page 2 <br />commit their financing for the project's capital stack. The City's HOME Program loan is already <br />subordinate to the private market loan from Union Bank as a senior lender. This second <br />Subordination Agreement will also allow CaIHFA as another senior lender to commit their financing <br />for the Project. If the Subordination Agreement is not approved by City Council, CalHFA will not be <br />able to commit their $2.912 million to the project and Jamboree will need to find another source of <br />financing to fill this financial gap before the expiration of their 9% low-income housing tax credits. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, <br />Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support <br />efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy C (Provide that <br />Santa Ana residents, employees, artists and veterans receive priority for affordable housing created <br />under the City's Housing Opportunity Ordinance or with City funding to the extent allowed under <br />state law). <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action <br />Steven A. Mendoza <br />Executive Director <br />Community Development Agency <br />Exhibits: 1. Project Budget <br />2. Subordination Agreement with CaIHFA <br />25B-2 <br />