Item 16 - Affordable Housing Project at 801, 807, 809 and 809 ½ E. Santa Ana Blvd

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LOAN AGREEMENT HOUSING SUCCESSOR AGENCY FUNDS THIS LOAN AGREEMENT (“Agreement”) dated, for identification purposes only, as of _____, 2021, is made and entered into by and between the Housing Authority of the City of Santa Ana (CA093), acting as the Housing Successor Agency, a public body, corporate and politic (“Agency”), and Shelter Providers of Orange County, Inc., DBA HomeAid Orange County (“Developer”) with reference to the following: RECITALS: A. The Agency is authorized by the Community Redevelopment Law of the State of California (Health and Safety Code section 33000, et seq.) (“CRL”) to expend funds to increase the supply of very low and low income housing available at affordable housing costs. In part to further this goal, the Agency has created the Merged Project Areas, within the City (the “Project Area”), and adopted a Redevelopment Plan for the redevelopment of the Project Area. In accordance with Section 33334.2, et seq., of the CRL, the Agency sets aside a portion of the tax increment revenues it receives from the Merged Project Area in a separate low and moderate housing asset fund, which the Agency uses for the construction, preservation, and rehabilitation of affordable housing for low income households. B. Developer requested financial assistance in connection with the proposed ground lease, development, construction, ownership, occupancy, and operation of a seventeen (17) unit affordable housing complex (“Project”) to be located at 801, 807, 809 and 809 ½ E. Santa Ana Blvd., Santa Ana, California, and legally described as set forth in Exhibit A attached hereto and incorporated herein (“Property”). Nine (9) of the units will be permanent supportive housing for households earning no more than 30% of the Area Median Income; Seven (7) of the units will be permanent supportive housing for households earning no more than 25% of the Area Median Income; and one (1) of the units is reserved for an on-site manager. Office space within the development will be provided for use as space for the case managers that will provide mental health services. On-site amenities will include a courtyard, community room and a lounge area. Mercy House Living Centers (“Mercy House”) will manage the onsite manager. C. The City of Santa Ana (“City”) and the Housing Authority of the City of Santa Ana (“Housing Authority”) reviewed Developer’s request for assistance and at the City Council/Housing Authority meeting on January 15, 2019, the Housing Authority Board authorized and approved issuance of a conditional, pre-commitment letter evidencing the preliminary award of $1,069,947 of funds to the Project (“Agency Loan”), to be funded exclusively from the Low and Moderate Income Housing Asset Fund (the “LMIHAF”) held by the Agency. D. The amount of the Agency Loan was determined based upon the City and Agency’s review of the Developer’s request for the receipt of the Agency Loan and the development proforma and projected cash flows for the Project submitted by the Developer to the City/Agency as of January, 2019 (“Proforma”). The Housing Authority’s Executive EXHIBIT 4