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Pre-Commitment of Affordable Housing Funds for Jamboree and WISEPlace <br />June 21, 2022 <br />Page 4 <br />2 <br />7 <br />6 <br />5 <br />Inclusionary Housing Funds $484,000 <br />Project-Based Vouchers Twenty-Five <br />(25) <br />The pre-commitment letter for Jamboree and WISEPlace provides the enforceable <br />funding commitment from the City for $5,256,327 in HOME-ARP funds, and twenty-five <br />(25) project-based vouchers for the development of the WISEPlace permanent supportive <br />housing project located at 1411 N. Broadway, Santa Ana, CA 92706 (APN 398-523-04) <br />(Exhibit 2). <br />The pre-commitment letter also includes a provision for an additional award of $484,000 <br />in Inclusionary Housing Funds for relocation benefits, if necessary. This is because there <br />are currently 20 shelter residents at WISEPlace. As occupants of transitional housing/an <br />emergency shelter, WISEPlace clients do not meet the definition of a displaced person, <br />because the housing they occupy is not permanent housing, and they do not pay for the <br />housing. The purpose of the housing they currently occupy is temporary housing until <br />they are matched with a permanent housing option. The units/beds they occupy does not <br />meet the definition of a “dwelling” under the Uniform Relocation Act (“URA”), and further, <br />the Department of Housing and Community Development issued guidance indicating that <br />the temporary sheltering of homeless persons does not trigger “tenancy” under Civil Code <br />section 1940 and related provisions. <br />However, while WISEPlace and Jamboree nor the City of Santa Ana have a legal <br />requirement to provide relocation assistance to WISEPlace residents in the event they <br />are not matched with an alternative housing or shelter option prior to the start of <br />construction and would need to vacate the site, WISEPlace and the City will each provide <br />$484,000 in a 50/50 split, if relocation assistance are to be provided to the site occupants <br />per the same requirements of the URA or CA Relocation Regulations. If the 20 current <br />WISEPlace residents are provided relocation assistance as calculated per the <br />requirements as the URA and California State Relocation Regulations, the estimated total <br />for relocation payments will be $968,000. WISEPlace will work with staff to relocate their <br />20 residents prior to the start of construction of the project. However, this additional <br />assistance will provide a guarantee that full relocation benefits are available, if necessary, <br />to the current residents if WISEPlace is unable to relocate them. <br />Among various other conditions in the pre-commitment letter, one of the primary <br />conditions is that the developer must provide verification that it has secured all of its <br />remaining financing for the development of the project in the form of the other enforceable <br />funding commitments in the project’s capital stack, which may include 9% or 4% Federal <br />Low Income Housing Tax Credits, State Housing Tax Credits, a commitment of affordable <br />housing funds from the County of Orange or State of California, Section 8 project-based <br />vouchers from the Orange County Housing Authority, or any other funding source needed <br />in the project’s capital stack to develop the Project and close on the financing, before staff