80A - PRE-LOAN COMMITMENT LACY PROJECT

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Commitment of Affordable Housing Funds and a Ground -Lease to Habitat for Humanity February 5, 2019 Page 6 Project Description Habitat for Humanity of Orange County is a nonprofit organization specializing in the construction of affordable homes for purchase by qualifying families. Since 1988, the Orange County affiliate has completed and sold 219 new homes in its service area. Thirty of those homes have been built in the City of Santa Ana. The project location is at the SW corner of Lacy and Vance Streets and is comprised of two single-family lots within the "Historic French Park" community. The Housing Authority will be providing a 99 -year ground lease on the land. Construction will consist of two (2) single-family detached homes. In multiple meetings and discussions with the Historic French Park Committee, the local residents made clear their strong desire that Habitat for Humanity design and construct homes that reflect the architectural elements and finishes that are present in the French Park community. In addition, there is an expectation that Habitat for Humanity will create two distinct floor plans for this project whose sizes are proportionate to the approximately 7,500 sq. ft. lots on which they will be built. With these requirements in mind, Habitat proposes the following: • A single -story "Craftsman -style" home. This residence will be a three bedroom, two and a half bath of approximately 1,500 sq. ft. • A second home that will be influenced by the 'Victorian -Style" of architecture. This will be a two-story residence with four bedrooms and three bathrooms and will be approximately 1,700 sq. ft. It is important to note that the architectural designs proposed for the Project are more in line with custom home developments as opposed to Habitat for Humanity's original mission to provide "simple, decent and affordable" housing. The proposed architectural designs result in significantly higher construction costs than the projects typically constructed by Habitat for Humanity. These homes will be made available to qualifying moderate income families (up to 120% of Area Median Income) as set forth in California Health and Safety Code. Construction will comply with all City of Santa Ana building standards, as well as the Historic French Park community. In RFP # 18-056, staff informed all applicants this vacant site will need to comply with the design guidelines of the French Park Historic District and will require review by the French Park Design Committee. The Historic French Park Association Architectural Review Committee provided a letter of support to Habitat for Humanity for the development of their project (Exhibit 3). The construction of all required improvements associated with the development will be the responsibility of Habitat for Humanity. Materials will include composite roofing material, wood, or simulated wood siding, concrete -paving surfaces, and professionally designed landscape. The two homes will be constructed concurrently, with an anticipated building cycle of 10 months from the issuance of building permits. For the development of this project by Habitat for Humanity of Orange County, the Review Panel is recommending an award of $231,494 in Inclusionary Housing Funds and a 99 -year ground - lease of 826 N Lacy Street and 830 N. Lacy Street (APN: 398-041-22 / 398-041-18) following a competitive selection process through RFP # 18-056 in compliance with the City's Affordable 80A-6