80A - AFFORD HOUSING LOAN - Laserfiche WebLink

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Commitment of Affordable Housing Funds and PBVs to National CORE and Mercy House January 15, 2019 Page 9 project, staff will return to City Council with the loan agreement for an amount not to exceed the funds committed in the pre -loan commitment letter. On January 8, 2019, the County of Orange Board of Supervisors authorized County staff to submit a joint project application to the State of California Housing and Community Development Department (HCD) for the first round of competitive No Place Like Home (NPLH) funding. The NPLH program will provide funding to support the development of supportive housing for adults with serious mental illness in the City of Santa Ana. The deadline for their NPLH application is January 30, 2019. NPLH funding in the amount of $6,013,136 is being requested from HCD to support the development of up to 16 of the 93 units in the project. The City's pre -commitment letter will enhance and support the Developer's application for this additional source of financing to make the project feasible. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective #3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods), and Strategy C (Provide that Santa Ana residents, employees, artists and veterans receive priority for affordable housing created under the City's Housing Opportunity Ordinance or with City funding to the extent allowed under state law). FISCAL IMPACT Upon approval of the loan agreement, funds in the amount of $3,170,547 within the Inclusionary Housing Fund will be made available for distribution (Loans and Grants account no. 41718820- 69152). Each project based voucher is estimated to be valued at $10,550 annually, based on HUD's initial award of the vouchers from April 2018. The actual annual expenditure for the eight vouchers may be different based on when the development of the project is completed and the units are leased. Funds will be budgeted in future fiscal years in the Housing Choice Voucher Program, Housing Assistance Payment account (no. 13618760-69158). Steven A. Mendoza Executive Director Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: �� @ov)_Y� Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Award Announcement to National CORE and Mercy House 2. Pre -Loan Commitment letter for National CORE and Mercy House 3. Underwriting and Subsidy Layering Analysis by Keyser Marston Associates . 11