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Amendments to Loan Agreements for the Santa Ana Arts Collective <br />June 15, 2021 <br />Page 3 <br />1 <br />8 <br />0 <br />1 <br />California Housing and Community Development Affordable Housing Loan and the <br />CalHFA SNHP Loan. The new residual receipt split would be divided according to the <br />table below, with the other 50% kept by Meta: <br />SOURCE PERCENTAGE <br />CDBG Loan 1.64% <br />HOME Loan 8.64% <br />Inclusionary Housing Loan 15.70% <br />State of California Housing and Community <br />Development Affordable Housing Loan 16.25% <br />CalHFA SNHP Loan 7.77% <br />TOTAL 50.00% <br />The Amended and Restated CDBG and Inclusionary Housing Funds Loan Agreement <br />has already been amended twice, so this would be the third Amendment for this Loan <br />Agreement (Exhibit 1). The HOME Loan Agreement has been amended once so this <br />would be the Second Amendment to the HOME Loan Agreement (Exhibit 2). <br />In addition, the Department of Housing and Community Development (“HCD”) requires <br />the City of Santa Ana to subordinate to their loans. This is a requirement for State funding <br />for local affordable housing projects. The HCD Affordable Housing and Sustainable <br />Communities funding consists of a $4,944,130 loan for the Affordable Housing <br />Development, $1,310,500 as a grant for a Sustainability Transportation Infrastructure <br />project, and $22,500 as a grant to support the Southern California Association of <br />Governments’ (SCAG). HCD requires that all City funding be subordinated to their loan. <br />HCD has not yet provided the City with their Subordination Agreement as part of Meta’s <br />permanent loan conversion, but this action would authorize the City Manager to execute <br />a future Subordination Agreement with HCD for their AHSC loan agreement, subject to <br />approval as to form by the City Attorney, as soon as it is provided by HCD. <br />Finally, on November 21, 2016, the City and Meta Housing Corporation applied for the <br />HCD AHSC program together and were awarded funding in 2017. It consisted of a <br />$4,944,130 award for a loan for the Affordable Housing Development, $1,310,500 as a <br />grant for a Sustainability Transportation Infrastructure project, and $22,500 as a grant to <br />support SCAG’s Go Human program. While the City has always been the payee of the <br />$1,310,500 as a grant for a Sustainability Transportation Infrastructure project, approval <br />of the resolution will allow the City of Santa Ana to accept the $22,500 funding contribution <br />to SCAG's Go Human program from HCD and submit the funding to SCAG to fulfill the <br />grant obligations (Exhibit 3). For legal reasons, Meta Housing Corporation cannot accept <br />the $22,500 funding contribution to SCAG's Go Human program.