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INSURANCE NOT REQUIRED <br />WORK MAY PROCEED <br />MAYOR CLERK OF COUNCIL <br />Miguel A. Pulido r) ITC. DEC <br />MAYOR PRO'PEM ' L.l�1 ZO�p <br />Michele Martinez ® U <br />COUNCII.MEMBERS <br />P. David Benavides (�, <br />Vicente Sarmlento V � 0DA Iv0' <br />Jose Solon,o �t <br />Sal Tinalero <br />Juan Villages <br />November 20, 2018 <br />CITY OF SANTA ANA <br />20 Civic Center Plaza • P.O. Box 1988 <br />Santa Ana, California 92702 <br />www.santa-ana.oro <br />Cornerstone Housing Partners LP <br />c/o Jamboree Housing Corporation <br />Attn: Laura Archuleta <br />17701 Cowan Avenue, Suite 200 <br />Irvine, CA 92614 <br />A-2018-280 <br />EXHIBIT 1 <br />CITY MANAGER <br />Raid Godinez 11 <br />CITY ATTORNEY <br />Sonia R. Carvalho <br />CLERK OF THE COUNCIL <br />Maria D. Huizar <br />Re: 126 Unit Affordable Housing Apartment Project Known as Cornerstone Apartments <br />Located at 805 - 904 South Minnie Street, Santa Ana, California <br />Dear Ms. Archuleta, <br />On November 20, 2018, the City of Santa Ana and the Housing Authority of the City of <br />Santa Ana (collectively, the "City") authorized the City Manager and Executive Director <br />of the Housing Authority to execute a commitment letter to: 1) resubordinate the current <br />affordable housing loans for the Cornerstone Apartments at 805 - 904 South Minnie <br />Street, Santa Ana, California ("Property") to tax-exempt multifamily bonds (Bonds) in an <br />amount not to exceed $8,700,000 for the rehabilitation of the Property, and 2) execute <br />the necessary documents to level all rents onsite at the 50% Tax Credit Allocation <br />Committee ("TCAC") rents instead of the existing State of California Health and Safety <br />Code rents. <br />The City previously has made forty-two loans to Wakeham-Grant Apartments L.P. <br />("Existing Owner") in the aggregate principal and interest amount of $9,132,442 secured <br />by deeds of trust encumbering all or portions of the Property (individually, a "City Loan" <br />and, collectively, the "City Loans"). A description of each City Loan is set forth on <br />Exhibit "A" attached hereto. Cornerstone Housing Partners LP (the "New Owner") <br />desires to purchase the Property from Existing Owner, in order to obtain a new <br />construction and permanent tax-exempt loan (the "Senior Loan") to acquire and <br />substantially rehabilitate the Property, to obtain a seller carryback loan from Existing <br />Owner to pay a portion of the purchase price for the Property ("Carryback Loan"), to <br />obtain a new allocation of low income housing tax credits pursuant to Section 42 of the <br />Internal Revenue Code ("Tax Credits") and to assume the City Loans. <br />SANTA ANA CITY COUNCIL <br />ksguel A Pusdo MNele Moron. Mvenle Samtlemo Jose Scbdo P. Dodd Benaddes Juan Vaegas Sal Tlmjsm <br />Mayor Mayor Pro Tom. Ward 3 Wardt Ward Ward We'd5 Ward <br />rmvlgv(asanla-ana.mv nArraAnezOsanraana om xaamiema�a7sanla-ana"ry ladotla(dsanG•ena ary dEena0dns6Aeen1a-snaora hipeaasr6lsama•ana av sfinaiarelalsanla-ana.mv <br />80A-9 <br />