3 - PRE-LOAN_COMMITMENT_2019-01-15

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Commitment of Affordable Housing Funds, a Lease and PBVs to HomeAid January 15, 2019 Page 8 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 $1,069,947 within the Low and Moderate Income Housing Asset Fund will be made availalble for distribution (account number 60718830-69152). Any payment associated with the lease agreement will be addressed at the time the agreement is presented to the Housing Authority Board for approval. 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 three 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). Juds n Brown Housing Division Manager Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Award Announcement to HomeAid and Mercy House 2. Pre -Loan Commitment Letter with HomeAid and Mercy House 3. Underwriting and Subsidy Layering Analysis by Keyser Marston Associates UK