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Pre -Commitment of Affordable Housing Funds and a Ground Lease to Related Companies <br />July 2, 2019 <br />Page 11 <br />This TIC ownership structure could help to simplify ground leasing and developing a jointly held <br />property. The percentage ownership for each landowner will be determined based on the <br />percentage of the current acreage between the two parcels. The Housing Authority's parcel is <br />1.456 acres and the County's parcel is .83 acres. One ground lease agreement with both <br />landowners can then be entered into with Related for the development of the site. During the <br />development process the parcels will be combined into one, creating a single APN number, which <br />will allow more flexibility on site development. <br />Following approval by the City Council / Housing Authority, staff will work with the County to bring <br />the Project to the Board of Supervisors for selection of Related and ACOF as the Project developer <br />and approval of a ground -lease agreement and joint powers agreement arrangement with the City. <br />Staff will draft and negotiate a Tenants in Common agreement, a Joint Powers Agreement, or <br />similar document, and any other required actions necessary to draft that Tenants in Common <br />agreement with the County of Orange for the joint ownership and development of the Crossroads <br />at Washington. The approval of the Tenants in Common agreement and Joint Powers Agreement <br />will be contingent upon final approval by the City Council and the County Board of Supervisors. <br />The final project will require review of the site plan by an interdepartmental team of staff and may <br />require review and approval by the Planning Commission. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, <br />Engagement & Sustainability, Objective #3 (Facilitate diverse housing opportunities and support <br />efforts to preserve and improve the livability of Santa Ana neighborhoods), and Strategy C (Provide <br />that Santa Ana residents, employees, artists and veterans receive priority for affordable housing <br />created under the City's Housing Opportunity Ordinance or with City funding to the extent allowed <br />under state law). <br />FISCAL IMPACT <br />The various agreements, including the loan payment, are estimated to be finalized for City Council <br />/ Housing Authority approval in FY 2020-21. Upon future approval of the loan agreements, funds <br />will be budgeted and available as shown below: , <br />Fiscal <br />Accounting Unit <br />Accounting Unit, <br />Year <br />— Account # <br />Fund Description <br />Account <br />Amount <br />Description <br />FY 20-21 <br />13018780-69152 <br />HOME Program <br />Loans & Grants <br />$3,007,489 <br />FY 20-21 <br />14218760-69152 <br />Neighborhood <br />Loans & Grants <br />$ 788,000 <br />Stabilization Program 1 <br />FY 20-21 <br />14218761-69152 <br />Neighborhood <br />Loans & Grants <br />$ 131,000 <br />Stabilization Program 2 <br />FY 20-21 <br />14218762-69152 <br />Neighborhood <br />Loans & Grants <br />$ 44,951 <br />Stabilization Program 3 <br />Total Loans <br />$3,971,440 <br />