25B - AGMT - AMEND LOAN AGMT SA VETS

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Amendment to HOME Loan Agreement for the Santa Ana Veterans Village July 16, 2019 Page 2 In order to commit and expend these HOME Program funds before the deadline for recapture on July 31, 2019, staff worked proactively to determine if there were eligible proposals that could be received from developers for the $124,383 of expiring funds. Staff approached Jamboree Housing and Community Development Partners to determine if their two projects that are under construction (Santa Ana Veterans Village and Aqua Housing, respectively) need these additional funds. Community Development Partners has a need, but the expenses they requested were not an eligible use of the funds. Specifically, they were seeking to pay for furnishings for the units in their project. Jamboree Housing indicated that they had a need and could use the funds for eligible expenses in their Santa Ana Veterans Village project. Therefore, on June 24, 2019, Jamboree Housing submitted a written proposal to the City to use and expend the $124,383 in expiring HOME Program funds (Exhibit 3) for their Santa Ana Veterans Village project. Specially, during the demolition of existing asphalt and concrete pavements for the project, a second buried layer of asphalt was discovered beneath the driveway section of the Northeast parking lot. Due to it being buried, this material was not shown on the geotechnical report; thus, the $67,841 cost associated with the demolition and removal of this material was not reflected in Jamboree's initial development budget. Additionally, during recent grading activities, approximately 400 cubic yards of contaminated soil was encountered onsite. The discovery of contaminated soil resulted in a $35,271 added to Jamboree's development budget. Furthermore, consecutive days of inclement weather have posed yet another challenge. The stockpiled soil contained a high moisture content and needed to be air dried prior to it being treated onsite. The cost to airdry the contaminated soil was $58,176. Although the additional HOME Program funds will not cover the entirety of these unforeseen costs, Jamboree is requesting the $124,383 in financial assistance from the City for the successful development of their project. Background on Funding for the Santa Ana Veterans Village Project and the Amendment On April 4, 2017, the Housing Authority Board awarded Jamboree Housing Corporation seventy- five (75) project -based vouchers for the Santa Ana Veterans Village project located at 3312 West 1st St, Santa Ana, CA 92703 to create 75 permanent supportive housing units with wrap -around supportive services to be provided by Step Up on Second for homeless veterans. The Housing Authority also authorized the Executive Director of the Housing Authority to execute an Agreement to enter into a Project -Based Vouchers Housing Assistance Payments Contract (AHAP) between the Housing Authority and Jamboree Housing Corporation for the development of the Santa Ana Veterans Village project. Also, on August 21, 2018, City Council authorized the City Manager to execute a Loan Agreement with Santa Ana Village L.P. (c/o Jamboree Housing Corporation) for $352,963 in HOME Program funds for the Santa Ana Veterans Village project. Following these two funding approvals by the Housing Authority and City Council, the AHAP Contract and HOME Program Loan Agreement with Santa Ana Village L.P. were executed for the development of the project. With these two Agreements approved, Jamboree Housing closed on their financing in December 2018 and broke ground on the project in January 2019. 25B-2