Item 28 - Fiscal Year 2023-24 Request for Proposals for Affordable Homeownership Opportunities

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EXHIBIT 2 their expenditure in targeted areas of the City. The City has identified eight (8) geographical areas where it has targeted significant public resources in the past, and where it would like to see additional resources targeted in the future. These geographical areas include City -owned sites and areas as follows: 1st Street Hotel Conversion, Cornerstone Village, Townsend-Raitt, Cedar -Evergreen, and 1900-2000 Myrtle Street (see Attachments 1 through 8 in this Exhibit). The proposed disposition and development of the City -owned sites would be solely for the development of affordable housing in accordance with requirements for an exemption from the California Surplus Land Act (Gov. Cody section 54220 et seg.). Revision 3-ADD Page 4, (VI) Minimum Qualifications In order to meet the City's goals, the City is soliciting proposals for the development of affordable h.,.r,or,wnersh ) housing projects from developers who are experienced, very knowledgeable of affordable housing programs and its requirements, financially creative and capable of developing, managing and maintaining high quality housing. Revision 4-ADD Page 7, (ii) Developer Experience A narrative describing recent affordable h^mQ^i°f^Q.,h ig residential development experience, with an emphasis on experience gained in the last five years on projects similar to the one being proposed. Revision 5-ADD Page 9, (VI)(G)(1)(d)(ii) Proposal Content - Financial Parameters Low income housina tax credits (if applicable): ■ Provide eligible basis, gross and net tax credit proceeds calculations. ■ Provide the self -scoring sheet for the 9% TCAC or CDLAC applications. Explain why the protect does not receive the maximum points, if applicable. ■ Provide the tiebreaker calculation for 9% TCAC projects. ■ Provide a description of the various sources of financing that will be needed to complete the project as either a 4% Low -Income Housing Tax Credit deal and as a 9% Low -Income Housing Tax Credit deal. The narrative should provide a projected tie breaker score for 9% Low -Income Housing Tax Credits with a best case and worst -case scenario based on the capital stack being pursued, with a relative comparison to the most recent tie breaker scores for the type of project being proposed in the last three 9% tax credit rounds. Clearly state if the project will be ready to apply for 9% Low - Income Housing Tax Credits during FY 2024 — 2025. This should include evidence of progression towards planning entitlements and other requirements necessary for the tax credit application. Clearly state if the project will be competing with another project owned by the developer in Orange County for an upcoming 9% Low -Income Housing Tax Credit round, including a comparison of the projected tie breaker scores for both projects. Project Cash Flow ■ Provide a cash flow analysis that shows the order of repayment priorities. Be explicit about the cash flow assumptions. Revision 6-ADD Page 10, (VI)(G)(6) Project Rental Income / Sales Prices Include evidence that the rental income / sales prices shown in the pro forma are reasonable and achievable. Please include a preliminary market study analysis that supports that this is achievable. Revision 7-ADD Page 11, 5. Number of proposed copies RFP 23-156 FOR AFFORDABLE HOMEOWNERSHIP HOUSING OPPORTUNITIES Revision 8 -ADD Page 16, (XI)(D)(1) Ranking Criteria Each member of the Review Panel will evaluate and rank each affordable rental housing proposal using the evaluation criteria listed below: COMPETITIVE SELECTION CRITERIA 1. LEVEL OF AFFORDABILITY AND TARGET POPULATION ELIGIBLE (Max. 25 Points) POINTS Project significantly increases affordable housing opportunities for large families (three- and four -bedroom units) 10