Laserfiche WebLink
Given that the highest affordable rents being proposed for the subject property is $273, <br />the proposed rents represent at least an 85% discount from the currently prevailing <br />market rents. <br />The market area is experiencing very low vacancy rates ranging from 0.0%to 1.8%, and <br />waiting lists are maintained at both market rate and comparable income restricted <br />developments. <br />In addition, the Demand Estimate section of the study considers the number of existing <br />homeless households, number of homeless adults, and the number of homeless veterans, <br />concluding that there is considerable unmet demand for supportive housing targeted towards <br />homeless veterans in the area. There are currently only 12 existing affordable housing <br />developments in the area, and one development in the pipeline, that provide housing for <br />special needs households which could potentially compete with the proposed project. Based on <br />high rates of absorption at three recently constructed properties in the area, the proposed <br />project is anticipated to reach stabilized occupancy within one to two months of completion. <br />Based on the market assessment results, KMA concludes that there is adequate demand for <br />affordable housing to support the Project. Therefore, it is anticipated that the Project will be <br />leased up well before the six-month HOME requirement. <br />VI. HOME REQUIREMENTS <br />The following summarizes additional HOME requirements. <br />A. HOME Program Deadlines <br />Deadline <br />Acquisition <br />§92.2 states that acquisition of <br />N/A <br />housing will occur within 6 months of <br />contract date <br />Demolition/Construction <br />§92.2 states that <br />Under <br />construction/demolition of property <br />Construction <br />is scheduled or reasonably can be <br />expected to start within 12 months <br />of the agreement date (8/21/18). <br />Project Completion <br />§92.205(e)(2), 92.2 state that the <br />To be completed <br />project must be completed within 4 <br />within 18 <br />years of the date the funds are <br />months <br />committed to the project <br />(8/29/2018). <br />Lease -up <br />§92.252 states that HOME assisted <br />To be completed <br />units must be occupied by an eligible <br />within 6 months <br />tenant within six months following <br />project completion <br />City of Santa Ana Underwriting & Subsidy Layering Review: Veteran's Village Page 1 17 <br />25B-51 <br />