HA - Item 03 - Pre -Commitment of Affordable Housing Funds for Illumination Foundation

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EXHIBIT 1 Page 13 The City Assistance shall include the following general terms: • The HHAP Grant shall be for a maximum amount of $2,021,319, or as much thereof as is disbursed for hard and soft costs in constructing the Project, provided from the HHAP funds. • The provision of HHAP funds will be structured as a grant; therefore, no repayment is due to the City unless the Project is in default. • Cost savings from the Project, if any, will be applied first to repay the City Assistance, as applicable. • All other funding sources must be secured through enforceable funding commitments prior to disbursement of any of the HHAP Grant funds. • An environmental review in compliance with the National Environmental Policy Act is required prior to entering into an Agreement to Enter into a Project -Based Vouchers Housing Assistance Payments Contract for the PBVs committed to the Project. Project -Based Vouchers: The basic terms of the award are as follows: • Funding Source: The eight (8) PBVs will be funded exclusively out of the tenant - based voucher program annual budget authority received by the Housing Authority from the U.S. Department of Housing and Urban Development ("HUD"). • Rents: The PBV Housing Assistance Payments ("HAP") Contract rents below are preliminary and contingent upon a reasonable rent determination to be conducted by the Housing Authority at the time of execution of the HAP Contract: o One -Bedroom: $2,219 o Two -Bedroom: $2,665 In accordance with HUD regulations and SAHA's Administrative Plan, these rents are subject to review prior to the execution of a HAP contract. • Annual Amount: The Project will receive PBVs for the eight (8) TAY units: 30% AM I Unit Size Proposed HAP No. Units Contract Rent One -Bedroom 2 $2,219 Two -Bedroom 6 $2,665