80A - PH AGMT WITH COUNTY OF ORANGE 65 YR GROUND LEASE

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Joint Powers Authority, Ground Lease, and Option Agreement For the Crossroads at Washington February 18, 2020 Page 9 per month charge depending on unit income restrictions), Leasehold Mortgages, and Best Management Practices. The 65-Year Ground Lease has been signed by the Developer to acknowledge their acceptance of the terms. The Lease is not considered final until the Agency and County Board of Supervisors have reviewed and approved the Agreement, the Optionee exercises their option to enter into the Lease under the Option Agreement, and the Ground Lease is executed by all parties. The approval of the 65-year Ground Lease is contingent on approval of the Option Agreement and the Joint Powers Agreement. Resolution Granting Consent for Project -Based Vouchers The Orange County Housing Authority ("OCHA") is recommending an award of forty-three (43) project -based vouchers the Developer for the development of the Crossroads at Washington. However, in order for OCHA to administer project -based vouchers in the City of Santa Ana, they must receive approval from our jurisdiction in the form of a resolution (Exhibit 5). This is because the OCHA serves the entire County as their jurisdiction and our Housing Authority only serves the City of Santa Ana as our jurisdiction. Therefore, the resolution grants consent to the OCHA to administer project -based vouchers in our jurisdiction for the development of the Project. Regional Housing Needs Allocation Agreement The Regional Housing Needs Allocation Agreement is between the County of Orange ("County") and the City (Exhibit 6). In its simplest form, the Agreement gives the County credit for the 43 extremely low-income affordable housing units that they will be financing on their County -owned parcel. The Agreement is in the form of a Memorandum of Understanding (MOU) regarding the County's and City's Regional Housing Needs Allocation for future Housing Element planning periods. The MOU allows for the transfer to the City of Santa Ana of some share of the County's RHNA allocation obligation for the sixth housing element planning period from 2021-2029. The following is a list of key items agreed upon in the MOU: • The Orange County Board of Supervisors approved a loan for the Crossroads at Washington in the amount of $2,280,701 on February 25, 2020, toward the completion of 43 units within the Project. The Orange County Board of Supervisors, acting as the Board of Commissioners to the Orange County Housing Authority, also approved the use of 43 Project -Based Housing Choice Vouchers on February 25, 2020, toward the completion of 43 units within the Project. • Under the Housing Element Law, the City and County must revise the Housing Element of its general plan utilizing the latest RHNA allocation adopted by SCAG. The next required revision to the Housing Elements for the City and County is designated as the sixth required revision by Government Code Section 65588, and is identified by SCAG as the 2021-2029 Housing Element Planning Period. • The City intends to issue, upon application, residential building permits for construction of affordable housing on 1126 and 1146 E. Washington Ave. during the 2021-29 Planning Period, while the housing remains in the City's jurisdiction, in order to satisfy the City's RHNA allocation obligation for the 2021-29 Planning Period. o This will give the City eighty-five (85) extremely low-income housing units to meet the City's RHNA allocation obligation. . 11