80A - AGMT WITH HABITAT FOR HUMANITY

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Conditional Grant Agreement, Affordability Restrictions, and Ground Leases November 17, 2020 Page 4 • A single -story "Craftsman -style" home. This will be a three bedroom, two and a half bathroom residence, of approximately 1,500 sq. ft. • A second home that will be influenced by the "Victorian -Style" of architecture will be a two- story residence with four bedrooms and three bathrooms and will be approximately 1,700 sq. ft. It is important to note that the architectural designs proposed for the Project are more in line with custom home developments as opposed to Habitat for Humanity's original mission to provide "simple, decent and affordable" housing. The proposed architectural designs result in significantly higher construction costs than the projects typically constructed by Habitat for Humanity. These homes will be made available to qualifying moderate income families (up to 120% of Area Median Income) as set forth in California Health and Safety Code. Construction will comply with all City of Santa Ana building standards, as well as the Historic French Park community. In RFP #18-056, staff informed all applicants this vacant site will need to comply with the design guidelines of the French Park Historic District and will require review by the French Park Design Committee. The Historic French Park Association Architectural Review Committee provided a letter of support to Habitat for Humanity for the development of the Project. The construction of all required improvements associated with the development will be the responsibility of Habitat for Humanity. Materials will include composite roofing material, wood, or simulated wood siding, concrete -paving surfaces, and professionally designed landscape. The two homes will be constructed concurrently, with an anticipated building cycle of 10 months from the issuance of building permits. In summary, for the development of this project by Habitat for Humanity, staff is recommending approval of a Conditional Grant Agreement for $231,494 in Inclusionary Housing Funds, a 99-year Ground Lease of 416 Vance Street and 826 N Lacy Street, respectively, and Affordability and Maintenance Restrictions for each property. FISCAL IMPACT Funds for the Conditional Grant Agreement in the amount of $208,345 (90% of the total) are available in the Inclusionary Housing Fund, Loans and Grants account (No. 41718820-69152) for expenditure in the current fiscal year. The remaining $23,149 (10%) will be budgeted and included in the FY 21-2022 annual budget. Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director— Finance and Management Services Agency Submitted By: Steven A. Mendoza, Executive Director — Community Development Agency Exhibits: 1. March 5, 2019 Pre -Loan Commitment Letter 2. Conditional Grant Agreement 3. Affordability and Maintenance Restrictions Agreement - 416 Vance Street 4. Affordability and Maintenance Restrictions Agreement - 826 N Lacy Street 5. 99-Year Ground Lease Agreement - 416 Vance Street 6. 99-Year Ground Lease Agreement - 826 N Lacy Street • I .