Laserfiche WebLink
Page 12 <br />City Council/ Special Housing Authority meeting on June 21, 2022, the City Council and <br />Housing Authority Board authorized and approved issuance of this pre-commitment letter <br />evidencing the preliminary award of (collectively, the "City Assistance"): <br />- A loan in the maximum amount of $5,256,327 funded from the HOME <br />Investment Partnerships Program -American Rescue Plan ("HOME -ARP") <br />funds held by the City of Santa Ana for the Project ("HOME-ARP Loan"); <br />-A loan in the maximum amount of $484,000 from the lnclusionary Housing <br />Fund held by the City for the Project ("lnclusionary Loan") to be used for <br />relocation purposes only if necessary; <br />-Twenty-Five (25) U.S. Department of Housing and Urban Development <br />Project-Based Vouchers ("PBV") from the Housing Authority of the City of <br />Santa Ana. <br />This letter shall evidence the City's pre-commitment of the City Assistance to the <br />Developer for the Project subject to the conditions described below. <br />City Assistance: <br />The amount of the proposed City Assistance has been determined based upon the City's <br />review of the Developer's request for the receipt of the City Assistance and the <br />development proforma and projected cash flows for the Project submitted by the <br />Developer to the City ("Proforma"). The City Manager has authority to approve revised <br />development proformas and projected cash flows for the Project; provided, however, that <br />the City Assistance is not increased or extended. <br />The City Assistance shall include the following loan terms: <br />•The HOME-ARP Loan shall be for a maximum principal amount of $5,256,327, or <br />as much thereof as is disbursed for hard and soft costs in constructing the Project, <br />provided from the HOME Investment Partnerships Program -American Rescue <br />Plan fund: <br />o A portion of the $5,256,327 will be in the form of capital funds, repayable <br />from residual receipts. <br />o The remaining portion of the $5,256,327 will be in the form of capitalized <br />operating subsidy reserve. <br />o The exact amounts may be determined at construction closing. <br />•3% simple interest per annum. <br />•Repayment from 50% of Residual Receipts (pro-rata with payments due in <br />connection with other financing provided by other public agencies) (after payment <br />of operating expenses, including social services expenses and monitoring fees, <br />debt service, any deferred developer fee, and partnership fees to be described in <br />the Agreement), with the remaining 50% to be disbursed to the Developer. <br />EXHIBIT 2