HA - Item 03 - 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 3 requirements related to the funding sources (Exhibit 2). KMA reviewed the developer's estimates and projections of rents, expenses, reserves, and development costs in accordance with industry -standard underwriting guidelines. Developer Background Illumination Foundation is a 501(c)(3) organization that was founded in 2008 with the mission of disrupting the cycle of homelessness in Orange County. They are a dynamic organization with the experience and capacity to acquire, develop, and operate affordable and permanent supportive housing. Illumination Foundation's experience consists of property acquisition, rehabilitation, conversion, design, and facility operation. Their ability to develop new projects is reinforced by their ability to conduct operations for completed projects and implement successful programs within them. Their shelters and permanent housing operations involve complex logistics, contract management, accessibility compliance, facility maintenance, and high -quality service delivery. In addition to development projects, Illumination Foundation operates extensively across several Southern California counties and is frequently called upon to assist communities with urgent needs, such as during the COVID-19 pandemic. During the pandemic, Illumination Foundation took an active role in the implementation of Project Roomkey in Orange County, providing support to converted sites that were created to mitigate the risks of COVID-19 to the most vulnerable. Besides currently providing the operation of the City's Navigation Center, Illumination Foundation has additionally completed several developments including the Fullerton Navigation Center (a 150-bed facility), the Riverside Recuperative Care (a 50-bed facility), and four family emergency shelters in the cities of Stanton and Anaheim. Illumination Foundation also has experience in purchasing a motel for conversion to recuperative care and has partnered with LifeArk to utilize an innovative modular building system to develop an 18-unit prefabricated permanent supportive housing project in El Monte. Illumination Foundation is a fiscally responsible and financially stable organization. In 2019, they experienced a 24% increase in revenue; in 2020, a 40% increase and more than a 50% growth in 2021. They transitioned from 90% reliance on non -recurring grants and limited donations in their earlier years to more than 80% of revenue from recurring government contracts and program fees as the organization has grown. Illumination Foundation has additionally invested in ways to engage and retain individual donors. Illumination Foundation has formed a qualified team of internal staff and developer partners to design a Project that supports the ongoing mission of the property. This includes Westgroup Designs as the architect and JLC Associates as one of three potential contractors who will bid on the project. Westgroup Designs is known for providing exceptional design solutions for their clients and has an extensive portfolio of outstanding projects including Google's Orange