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Amendment to HOME Loan Agreement for the Santa Ana Veterans Village <br />July 16, 2019 <br />Page 3 <br />The Amendment to the original HOME Program loan keeps the same terms as the existing loan <br />including the same affordability restrictions and covenants. (Exhibit 4) The Amendment adds <br />$124,383 to the existing HOME loan amount of $352,963 for a new total loan amount of $477,346. <br />The additional $124,383 will be used to pay for unanticipated hard costs of construction that <br />increased after the project closed on their financing. <br />The Santa Ana Veterans Village project consists of a new construction development on a vacant <br />site. The project will provide 71 one -bedroom units and 5 two -bedroom units. With the exception <br />of a single one -bedroom property manager's unit, the remaining 75 units will be restricted to <br />homeless veterans. The design will feature one three-story building including a multipurpose <br />space, counseling offices for service providers, property management offices, a central laundry <br />facility, a fitness room, TV/lounge room, training room, a community kitchen, a community <br />garden, pet spa, and barbeque grills. Over 30% of the site is dedicated to open space and each <br />unit will have private open space by way of individual balconies. The interior of the units will <br />feature a full bathroom and a fully equipped kitchen with all appliances provided by the project, a <br />clothing closet, storage space, and a living room. All units will be fully furnished. Wrap -around <br />supportive services for the veterans will be provided on site by Step Up on Second, Goodwill of <br />Orange County's Tierney Center, Veterans Legal Institute, Strength in Support and the Veterans <br />Affairs Long Beach Healthcare System. <br />The unit mix and affordability restrictions are as follows: <br />Bedroom Size <br />30% AMI <br />Manager's Unit <br />Total <br />One -Bedroom <br />70 <br />1 <br />71 <br />Two -Bedroom <br />5 <br />5 <br />Totals <br />75 <br />1 <br />76 <br />Though challenges and obstacles are common for new construction projects, Jamboree Housing <br />needs this $124,383 in additional gap financing. Keyser Marston Associates completed a subsidy <br />layering analysis and confirmed that the $124,383 in additional funds is necessary for the <br />development of the project (Exhibit 5). Specifically, these additional funds will pay for unforeseen <br />construction costs. <br />If approved by City Council, $124,383 will be drawn down from HUD before the July 31, 2019 <br />deadline and these funds will be expended for the project. <br />STRATEGIC PLAN ALIGNMENT <br />The activities covered by this report allow the City to meet Goal #5 - Community Health, <br />Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities <br />and support efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy <br />A (Continue to explore options Citywide regarding the re -use of commercial or industrial buildings <br />25B-3 <br />