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Subordination Agreement for the Depot at Santiago
<br />May 7, 2019
<br />Page 2
<br />needs and goals. The Depot includes approximately 9,317 SF of retail space, 3,431 SF of
<br />community room space, and a 1,037 SF laundry room. A community center with social services
<br />is operated by the Wooden Floor. As of March 2019, the Depot is currently 100% fully occupied
<br />and there are 1,250 applicants on the Waiting List.
<br />Following a competitive Request for Proposals process, on May 20, 2013, the City Council
<br />authorized the City Manager and Clerk of the Council to execute a loan agreement with the Depot
<br />at Santiago L.P. in the amount of $3,000,000, including $2,634,566 from the Community
<br />Development Block Grant (CDBG) Program and $365,434 from the HOME Investment
<br />Partnerships (HOME) Program. The City Council also approved an agreement for eight (8)
<br />project -based vouchers. C&C Development and Orange Housing Development Corporation
<br />used this initial funding to apply for various other sources of other financing to develop the Depot
<br />including but not limited to an Infill Infrastructure Grant (IIG) and an Affordable Housing and
<br />Sustainable Communities (AHSC) grant and loan from the State of California Department of
<br />Housing and Community Development (HCD). The sources for the Depot are provided below:
<br />Construction Sources
<br />Bank of America
<br />$24,636,448
<br />Mental Health Services Act (MHSA)
<br />$
<br />1,265,320
<br />City of Santa Ana CDBG Loan
<br />$
<br />2,634,566
<br />City of Santa Ana HOME Loan
<br />$
<br />365,434
<br />Infill Infrastructure Grant
<br />$
<br />2,000,000
<br />AHSC - Grant
<br />$
<br />3,500,000
<br />National Equity Fund
<br />$
<br />750,000
<br />General Partner Equity
<br />$
<br />100
<br />Developer Fee Deferred Until Completion
<br />$
<br />1,482,529
<br />Deferred Developer Fee
<br />$
<br />302,471
<br />Other Costs Deferred Until Completion
<br />$ 307,502
<br />$37,244,370
<br />Permanent
<br />CA Community Reinvestment Corporation
<br />$
<br />6,420,000
<br />AHSC — Loan
<br />$
<br />425,000
<br />MHSA
<br />$
<br />1,265,320
<br />City of Santa Ana CDBG Loan
<br />$
<br />2,634,566
<br />City of Santa Ana HOME Loan
<br />$
<br />365,434
<br />Deferred Developer Fee
<br />$
<br />302,471
<br />Infill Infrastructure Grant
<br />$
<br />2,000,000
<br />AHSC Grant
<br />$
<br />3,500,000
<br />General Partner Equity
<br />$
<br />100
<br />National Equity Fund
<br />$20,331,479
<br />$37,244,370
<br />Under HCD's Uniform Multifamily Regulations Section 8315(b)(2) (as follows), HCD will not
<br />subordinate to liens of local governments unless the local government's assistance to the project
<br />is more than twice the amount of the HCD assistance to the project:
<br />25A-2
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