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Commitment of Affordable Housing Funds, a Lease and PBVs to HomeAid January 15, 2019 Page 5 Based on the scores above and the relative scoring of proposals competing for the same land asset(s) or source of affordable housing funds (e.g. HUD-VASH PBVs), the Review Panel recommends the following award for this project: Developer: HomeAid Orange County and Mercy House Project Name: Frances Xavier Residence Developer Request: • $1,051,629 8 HUD-VASH PBVs Award Recommendation: • Lease Agreement for 801 E. Santa Ana Blvd. o Appraised Value as of Oct 25, 2018: $788,000.00 Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund): $1,069,947 • Project -Based Voucher Program (PBV): Three (3) HUD-VASH PBVs Staff notified HomeAid and Mercy House in writing of the award recommendation by the Review Panel, contingent on final approval by the Community Redevelopment and Housing Commission (CRHC) and Housing Authority (Exhibit 1). The pre -loan commitment letter with HomeAid with Mercy House as the service provider for $1,069,947 in Low and Moderate Income Housing Asset Funds and a 99 -year ground -lease of 801, 809 & 809 '/a E. Santa Ana Blvd (APN: 398-303-04 I 398-303-05 1 398-303-06 1 398-303-07) for the development of the Frances Xavier Residence affordable housing project provides the official award from the Housing Authority (Exhibit 2). In compliance the City's Affordable Housing Funds Policies and Procedures, the City's real estate advisor, Keyser Marston Associates (KMA), has confirmed the underwriting for the Project, the financial gap, and other programmatic requirements related to the funding sources. KMA has reviewed the developer's estimates and projections of rents, expenses, reserves and development costs in accordance with industry -standard underwriting guidelines and recommends the full amount of the award based on their underwriting and subsidy layering analysis (Exhibit 3). Project Description HomeAid Orange County, in partnership with Mercy House and with C & C Development acting as an advisor, is proposing to develop Frances Xavier Residence. The Proposed Project will be 100% affordable to households earning less than 80 percent of the Area Median Income (AMI). All units will be set-aside for Permanent Supportive Housing (PSH). However, the project may remove one PSH units to include an on-site property manager's unit of the 12 units which is not listed below. The proposed unit mix and rent restrictions are as follows: 3-5 PSH - 30%- 80% AM] Total 1 -bedroom 5 5 2 -bedroom 5 5 3-5