80B - JAMBOREE HOUSING PRE-LOAN COMMITMENT

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Commitment of Affordable Housing Funds and Project -Based Vouchers to Jamboree Housing March 5, 2019 Page 7 project, located about a mile away. The proposed development will be leasing after the SAW project, so Jamboree will have relevant experience in working with both the VA and County to ensure they can lease units quickly. Jamboree will finance this development using competitive 9% low-income housing tax credits. The 89 VASH vouchers and $1,687,047 in CDBG Program Funds significantly support the competitiveness of this project in securing this source of project financing. The project will require the award of Veterans Housing and Homelessness Prevention funds from State of California Department of Housing and Community Development, which has only one round of funding annually. This will push Jamboree's 9% tax credit application out to the first round of 2020. At the moment, the capital structure has a 69.62% second tiebreaker score for the competitive 9% tax credits. This score would be very competitive in the Nonprofit — Homeless apportionment, as the range of scores for this past round is between 49%-73%. In this past round, a 69.62% tiebreaker would have been the second highest tiebreaker in the set-aside; a 70% tiebreaker would have allocated in both the first round of 2018 as well as the second round of 2017. Similar to SAW, Jamboree will also secure private community foundation loan from Orange County Community Foundation as well as funding from AHP. For the development of this project by Jamboree Housing, the Review Panel is recommending an award of $1,687,047 in Community Development Block Grant Funds and eighty-nine (89) HUD- VASH PBVs following a competitive selection process through RFP # 18-056 in compliance with the City's Affordable Housing Funds Policies and Procedures. After Jamboree receives an allocation of low-income housing tax credits for the development of the 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. Please note CDBG program expenditures for FY 2017-18 totaled approximately $5.7 million. 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 future approval of the loan agreement, funds in the amount of $1,687,047 will be available in the Community Development Block Grant, Loans and Grants account (no. 13518782-69152). 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 value of the vouchers on an annual basis totals $938,950. The actual annual expenditure for the eighty-nine 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). Foerlliffi