Item 21 - First Amendment to Conditional Grant Agreement with Habitat for Humanity

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First Amendment to Conditional Grant Agreement with Habitat for Humanity. April 6, 2021 Page 2 6 2 2 a letter of support to Habitat for Humanity for the development of the Lacy Street Project when Habitat submitted their proposal to the City for an award of funds and a ground lease under a 2018 Request for Proposals (RFP # 18-056) process. The letter of support was a requirement in the Request for Proposals for the development of this Housing Authority-owned parcel located in the French Park neighborhood. Regarding Habitat for Humanity’s coordination with the Committee, in August 2018 Habitat for Humanity proposed the construction of two (2) 1,200 square foot, single-family homes on the site. The homes were to be identical and based upon the same product that had been previously built on Bush Street in the City of Santa Ana. It was Habitat for Humanity’s plan to use an existing product/architectural plan to avoid the expense of additional product design costs. This original proposal did not meet the French Park community’s Architectural Guidelines. Therefore, in December of 2018 Habitat for Humanity proposed the construction of a single-story “Craftsman-Style” home and a two- story “Victorian-Style” home as an alternative. To meet the needs of the Architectural Guidelines, these homes were to be approximately 1,550 and 1,650 square feet, respectively. Over the following 12 months, Habitat for Humanity engaged the services of an architectural firm and designed two distinct floor plans in coordination with the Committee. Over the course of this time there were many discussions and meetings, and many revisions to the original plans. In order to comply with the French Park community’s Architectural Guidelines, Habitat for Humanity needs an additional $333,777 for the development of the Lacy Street Project. These funds will offset a portion of the additional construction costs associated with this project to satisfy the French Park community’s requirements. Specifically, the Architectural Guidelines requires wood siding and wood windows, along with additional architectural fees incurred by Habitat for Humanity to construct these custom-built affordable homes. Therefore, staff is recommending approval of this First Amendment to the Conditional Grant Agreement with Habitat for Humanity for an additional $333,777 in Inclusionary Housing Funds (Exhibit 2). This will increase the total Inclusionary Grant amount to $565,271 for the development of the Lacy Street Project. FISCAL IMPACT Funds for the First Amendment to the Conditional Grant Agreement in the amount of $300,399 (90% of the amendment total) are available in the Inclusionary Housing Fund, Loans and Grants account (No. 41718820-69152) for expenditure in the current fiscal year. The remaining $33,378 (10%) will be budgeted and included in the FY 2022-23 budget based on the current schedule of performance. EXHIBIT(S) 1. Staff Report from November 17, 2020 2. First Amendment to Conditional Grant Agreement