Item 05 - Crossroads at Washington Affordable Housing Project at 1126, 1136, & 1146 East Washington Ave.

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Crossroads at Washington Affordable Housing Project at 1126, 1136, & 1146 East Washington Avenue June 21, 2022 Page 2 2 8 1 5 Crossroads at Washington affordable housing project located at 1126, 1136, & 1146 East Washington Avenue, Santa Ana, CA 92701, (APNs 398-092-14 and 398-092- 13), subject to non-substantive changes approved by the Executive Director of the Housing Authority and Authority General Counsel. 3. Authorize the Executive Director of the Housing Authority to execute a Land Use Covenant with the State of California Department of Toxic Substances Control to protect present or future human health or safety or the environment as a result of the presence of hazardous materials on the property at 1126, 1136, & 1146 East Washington Avenue, Santa Ana, CA 92701, (APNs 398-092-14 and 398-092-13), subject to approval as to form by the Authority General Counsel. 4. Authorize the Executive Director of the Housing Authority to execute an Equitable Community Revitalization Grant Agreement with the State of California Department of Toxic Substances Control to address and remediate present or future human health or safety or the environment as a result of the presence of hazardous materials on the property at 1126, 1136, & 1146 East Washington Avenue, Santa Ana, CA 92701, (APNs 398-092-14 and 398-092-13), subject to approval as to form by the Authority General Counsel. 5. Adopt a Resolution approving the Ground Lease of the Housing Authority-owned property at 1126, 1136, & 1146 East Washington Avenue, Santa Ana, CA 92701, (APNs 398-092-14 and 398-092-13) as required under California Health and Safety Code Section 33433. EXECUTIVE SUMMARY On five separate meetings, City Council has unanimously approved various actions for the development of the Crossroads at Washington project. This Staff Report is the culmination of all of the previous actions by City Council and will allow The Related Companies of California to close on their financing and develop the project on the Housing Authority-owned property that has been joined with the County’s property. The Crossroads at Washington project will have 85 new affordable units and 1 manager’s unit, with 42 three- and four-bedroom units for large families, and 43 one- and two-bedroom affordable units for persons experiencing homelessness. 100% of the units will be for extremely low-income households at 30% Area Median Income. For the City Council actions, regarding the two Loan Agreements, on July 2, 2019, City Council approved an award of $3,971,440 in funding and on August 17, 2021, City Council increased that award by $333,742 to pay for an increase in development costs. The action herein includes another increase of $339,727 in additional funds to pay for an unanticipated increase in development costs. Regarding the Development Impact Fee Deferral Agreement, this will further assist the project to offset their increase in development costs. Regarding the Subordination Agreements, U.S. Bank and the County