Item 21 - Pre-Commitment of Affordable Housing Funds for Habitat for Humanity of OC

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Pre-Commitment of Affordable Housing Funds for Habitat for Humanity of Orange County November 15, 2022 Page 2 3 0 6 7 was sent out to Orange County’s largest affordable housing membership associations, interested developers, and nonprofit organizations from CDA’s RFP Process Database. After the RFP deadline (February 28, 2022), staff conducted a minimum threshold review and three of the five proposals submitted were determined to be eligible as follows: C&C Development Habitat for Humanity of Orange County Jamboree / WISEPlace In compliance with the City’s Affordable Housing Funds Policies and Procedures, a Review Panel, composed of City staff and housing consultants, used the Scoring and Selection Criteria from the RFP and reviewed the proposed designs for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the designs and construction for low maintenance and long-term durability. After interviews of the development teams, the Review Panel recommended the following: •Developer and Project: Habitat for Humanity of Orange County - Washington Avenue •Award: $2.2 million from Inclusionary Housing Funds The pre-commitment letter between the City and Habitat for Humanity of Orange County (“Habitat for Humanity”) provides the enforceable funding commitment of $2,200,000 for the development of six affordable ownership units (Exhibit 2) at 1921 W Washington Avenue, Santa Ana, CA 92706 (APN 405-101-37) (the “Project”). The pre-commitment letter is conditional on Habitat for Humanity obtaining permits and approvals from the City, ensuring at least 5 percent of the dwelling units provide mobility features, providing at least 2 percent of the dwelling units are equipped with communication features, and establishing a local preference for residents who live and/or work in the City. In compliance with the City’s Affordable Housing Funds Policies and Procedures, Keyser Marston Associates was tasked with conducting a financial gap analysis; reviewing the developer’s estimates and projections of sales price, expenses, reserves and development costs; and confirming the project’s underwriting and other requirements pertinent to the funding sources (Exhibit 3). Following this analysis and completion of the procurement process, City staff affirms the Review Panel recommendation to award $2,200,000 for the Project and present to City Council for consideration. Project Description Habitat for Humanity acquired the site in December 2021 and will utilize the property’s R-2 zoning. The Project may require development concessions that must be approved by the City, and Habitat for Humanity must comply with the City’s Sunshine Ordinance. The Project is designed with three (3) duplex buildings with “farmhouse-style” architecture to be constructed with concrete roof tiles, composite wood siding, concrete paving