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Commitment of Affordable Housing Funds and PBVs to National CORE and Mercy House January 15, 2019 Page 5 On December 4, 2018, staff notified National CORE and Mercy House in writing of the award recommendation by the Review Panel, contingent on final approval by the Community Redevelopment and Housing Commission (CRHC) and City Council / Housing Authority (Exhibit 1). The pre -loan commitment letter with National CORE with Mercy House as the service provider for $3,170,547 in Inclusionary Housing Funds for the development of the Santa Ana United Methodist Church affordable housing project located at 609 N Spurgeon Street, Santa Ana, CA 92701 provides the official award from the City (Exhibit 2). In compliance the City's Affordable Housing Funds Policies and Procedures, the City's real estate advisor, Keyser Marston Associates (KMA), has confirmed the underwriting for the Project, the financial gap, and other programmatic requirements related to the funding sources. KMA has reviewed the developer's estimates and projections of rents, expenses, reserves and development costs in accordance with industry -standard underwriting guidelines and recommends the full amount of the award based on their underwriting and subsidy layering analysis (Exhibit 3). Project Description After a competitive multi -stage Request for Proposal (RFP) process that included Statement of Qualifitications, proposals, presentations and an interview with the church congregation, National CORE in partnership with Mercy House was selected by the Santa Ana United Methodist Church (UMC) to co -develop an affordable housing community on the 1.74 -acre site owned by UMC. Drawing from more than 55 years of combined experience in the successful development and ongoing management of affordable housing communities, National CORE and Mercy House are both 501(c)(3) private sector non-profit community builders that are ideally suited to collaborate with the Santa Ana United Methodist Church to develop an enriched, transit -oriented eco -system that will support the unique housing needs of the City of Santa Ana. The collaboration between National CORE and Mercy House provides many complimentary resources ranging from in- house general contracting, construction services and property management; great success in competing and receiving state, federal, and private financing; and experience from the development of a large portfolio of award-winning affordable housing developments. All these benefits will ensure the greatest results for the residents and surrounding community. National CORE has been a thought leader and pioneer in developing sustainable models of affordable housing that leverage community resources in a unique combination of quality developments paired with life -enhancing supportive services. Headquartered in Rancho Cucamonga, California National CORE was established in 1992 as a 501(c)(3) non-profit public benefit corporation. Starting with just 248 affordable homes, the company's portfolio has grown to include over 9,000 apartment homes in four states, of which 7,000 units are located in Southern California. National CORE currently serves roughly 27,000 residents and is the developer, owner, operator, and services provider for all our properties, thus ensuring long-term affordability as well as the maintenance of high-quality affordable communities. National CORE's portfolio includes development and management of mixed -income, mixed-use, deeply affordable, new construction and rehabilitation of both family, special needs, Veteran, and senior developments. To date National Core has secured approximately $950M in tax credit equity financing, $875M of tax- exempt bonds allocation and over $300M of public agency subsidy. National CORE recently received $20 million as part of the Transformative Climate Communities (TCC) program in partnership with the City of Ontario and a $20 million Affordable Housing Sustainable Communities (AHSC) program in partnership with the Housing Authority of the County of San Bernardino. 80A-5