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Commitment of Affordable Housing Funds and Project -Based Vouchers to Jamboree Housing <br />March 5, 2019 <br />Page 5 <br />On December 4, 2018, staff notified Jamboree in writing of the award recommendation by the <br />Review Panel, contingent on final approval by the Community Redevelopment and Housing <br />Commission (CRHC) and City Council / Housing Authority (Exhibit 1). The pre -loan commitment <br />letter with Jamboree for $1,687,047 in CDBG funds provides the official award from the City <br />(Exhibit 2). In compliance the City's Affordable Housing Funds Policies and Procedures, the <br />City's real estate advisor, Keyser Marston Associates (KMA), has confirmed the underwriting for <br />the Project, the financial gap, and other programmatic requirements related to the funding <br />sources. KMA has reviewed the developer's estimates and projections of rents, expenses, <br />reserves and development costs in accordance with industry -standard underwriting guidelines <br />and recommends the full amount of the award based on their underwriting and subsidy layering <br />analysis (Exhibit 3). <br />Project Description <br />Jamboree proposes to acquire the current Budget Inn and Suites, and rehabilitate the <br />development, adding a community clinic of approximately 4,000 square feet. Jamboree currently <br />has site control through March 2019 via an executed purchase and sale agreement. <br />The award recommendation for 89 HUD-VASH project -based vouchers and $1,687,047 in CDBG <br />Program funds will create permanent supportive housing for 89 homeless veterans with wrap <br />around supportive services. Jamboree has adopted a "whatever it takes" model of supporting the <br />needs of chronically homeless residents, with high success rates at their projects like the <br />Rockwood Apartments and Diamond Apartments in Anaheim, and Doria Apartments in Irvine. All <br />89 units would be targeted to individuals earning no more than 30% of the area median income <br />that are based on 30% of monthly Supplemental Security Income payments for an individual and <br />assuming the zero -bedroom contract rents based on the 2017 rent schedule. Per the HUD-VASH <br />regulations, this project would be serving individuals that qualify under the McKinney-Vento <br />definition of homelessness. <br />Unit Size <br />No. Units <br />AMI Proposed Rent <br />Studio <br />89 <br />30% $1,387 <br />Unit Size <br />No. Units <br />AMI <br />Proposed Rent <br />Studio <br />89 <br />30% <br />$1,387 <br />SOURCES <br />Tax Credit Equity <br />$15,934,856 <br />Permanent Loan <br />$6,379,792 <br />Orange County Community Foundation <br />$1,500,000 <br />Veterans Housing and Homelessness Prevention <br />$3,560,000 <br />Federal Home Loan Bank Affordable Housing Program <br />$500,000 <br />City of Santa Ana <br />$1,687,047 <br />Deferred Developer Fee <br />$136,157 <br />TOTAL SOURCES <br />$29,697,852 <br />