Item 14 - Pre -Commitment of Affordable Housing Funds for Illumination Foundation

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Pre -Commitment of Affordable Housing Funds for Illumination Foundation July 18, 2023 Page 2 eligible proposal from Illumination Foundation prior to the deadline of November 22, 2022 at 4:00 p.m. A Review Panel that consisted of the Homeless Services Division Manager, the Housing Division Manager, a Housing Programs Analyst, the Residential Construction Specialist, and a Senior Planner ensured compliance with the RFP requirements, used the proposal Scoring and Selection Criteria from the RFP, and reviewed the proposed project design for appropriateness for the proposed target population of TAY, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long-term durability. The Review Panel recommends the following award for this project: Developer: Illumination Foundation Project Name: Intergenerational Housing Project Award Recommendation: HHAP -Homeless Housing, Assistance and $2,021,319 Prevention Program Round 1, 2 and 3 Funds Project -Based Vouchers Eight (8) The pre -commitment letter for Illumination Foundation provides the enforceable funding commitment from the City for $2,021,319 in HHAP funds and eight (8) project -based vouchers for the development of the Intergenerational Housing Project located at 918 N. Bewley Street, Santa Ana, CA 92703 (APN 198-231-10) (Exhibit 1) (the "Project"). Among various other conditions in the pre -commitment letter, one of the primary conditions is that the developer must provide verification that it has secured all of its remaining financing for the development of the project. This should be in the form of other enforceable funding commitments in the project's capital stack, which may include fundraising amounts currently committed by the developer, a commitment of affordable housing funds from the County of Orange, Orange County Housing Finance Trust, CalOptima Health, or any other funding source needed in the project's capital stack to develop the Project and close on the financing. The pre -commitment letter is also conditional on the developer securing any and all permits and discretionary approvals that may be required for the project by the City. The pre -commitment does not obligate the City or any department thereof to approve any application or request for or take any other action in connection with any planning approval, permit, or other action necessary for the construction of the project. This will need to be completed before staff will return to the City Council for consideration of the Grant Agreement for this project. In compliance with the City's Affordable Housing Funds Policies and Procedures, Keyser Marston Associates (KMA) conducted a preliminary financial gap analysis to confirm the project's underwriting, the financial gap, and other programmatic requirements related to the funding sources (Exhibit 2). KMA reviewed the developer's