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AHSC Resolution, Density Bonus Agreement, and Mitigated Negative Declaration February 5, 2019 Page 3 the development of the project, in the event the additional sources of funding do not materialize. The Density Bonus Agreement is included as Exhibit 4. Additional details on this Agreement are provided below. Furthermore, in regards to land use, the project must comply with the provisions of CEQA requiring the evaluation of environmental impacts in connection with proposals for discretionary projects. An Initial Study and Mitigated Negative Declaration (IS/MND) with technical studies (geotechnical study, traffic study, infiltration study, Phase I Cultural Resources Inventory, Noise and Phase I site assessment), was prepared for the project. No areas of significant impact were determined from the construction or operation of the proposed project with the implementation of the mitigation measures for aesthetics, biological, cultural, noise, public services, hazards, and tribal cultural resources. In addition, a Mitigation Monitoring and Reporting Program (MMRP) has been prepared to ensure compliance with and effectiveness of the mitigation measures. The CEQA Resolution is included as Exhibit 6. Additional details on this Resolution are provided below. This Staff Report consolidates the above three City actions required to develop the Legacy Square affordable housing project at 609 N Spurgeon Street. Affordable Housing and Sustainable Communities Resolution and Agreement On November 1, 2018, HCD announced the availability of approximately $395 million in funding for the AHSC Program. The AHSC Program funds are offered through a Notice of Funding Availability that provides funding for projects that reduce GHG emissions by supporting more compact, infill development patterns, encouraging active transportation and transit usage, and protecting agricultural land from sprawl development. Funding for the AHSC Program is provided from the Greenhouse Gas Reduction Fund, an account established to receive auction proceeds from the California Cap -and -Trade Program. The application for AHSC funds to be submitted by National CORE (the "Developer") is not to exceed $20,000,000, of which up to $16,465,511 is requested for the Affordable Housing Development (AHD) at Legacy Square and up to $3,534,489 is requested for: • Sustainable Transportation Infrastructure (STI) - capital projects that result in the improvement or addition of infrastructure that encourages mode -shift from single occupancy vehicles by enhancing: 1) public transit service, 2) pedestrian networks, or 3) bicycle networks within the defined Project Area. • Transit -Related Amenities (TRA) - capital improvements that are publicly accessible and provide supportive amenities to pedestrians, cyclists and transit riders (i.e. bike parking, bus shelter, benches, street trees, etc.) within the defined Project Area; and • Program (PGM) activities - New active transportation, transit ridership, and/or workforce development programs or expansion of existing programs to serve new populations. The Legacy Square project is a 93 -unit new construction affordable housing development at 609 N. Spurgeon Street in Santa Ana targeting low-income families making 30% to 60% Area Median Income (Project). The development will also include 33 units of housing with supportive services. The AHSC Grant will be for a portion of the AHD and the STI and TRA improvements related to the Project. The STI and TRA improvements around the project include Class II buffered bicycle lanes on Civic Center Boulevard between Broadway and Santiago Street, Class IV bicycle lanes 75A-3