Item 27 - Public Hearing - Approve an Amended and Restated Regulatory Agreement for Garden Court Apartments Rehabilitation Project

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Garden Court Apartments Rehabilitation Project July 16, 2024 Page 4 housing for low-income households in the City and rehabilitate the entire property, including the 41 existing affordable housing units, ensuring the Project's sustainability and affordability for the next 55 years. OHDC states the City's current loan balance of $925,851 will also be repaid at construction loan closing. OHDC and C&C have worked closely with the City since 1994 to provide affordable housing for Santa Ana residents. OHDC and C&C currently own and operate 897 family and senior affordable units across 14 communities within the City. These include revitalization and rehabilitation developments such as Cornerstone Village, Wilshire/Minnie Neighborhood, Townsend and Raitt Neighborhood, and new construction development such as Andalucia Apartments, Depot at Santiago, and Terraces at Santiago. OHDC and C&C have never sold an affordable community they have developed in the City and they maintain a long- term commitment to serving the community. Amended and Restated Regulatory Agreement The Amended and Restated Regulatory Agreement is attached as Exhibit 1. The following key terms are incorporated into the Regulatory Agreement: • Owner: Orange Housing Development Corporation, who may request approval from the City in the future to transfer the property to C&C following a tax credit application and/or the rehabilitation of the project. • Term: 55 years from the date the Regulatory Agreement is recorded. • Unit Mix: There will be 41 units designated for families with an income equal to or less than 60% AMI and 42 units designated for families with an income equal to or less than 80% AMI. There will continue to be one (1) unrestricted manager's unit. The rents will be tied to the Tax Credit Allocation Committee rents. Restrictions on Rent Increases for Existing Households Currently Residing in the 60% AMI Units: The 60% AMI units are the same forty-one (41) units restricted under the Original Agreement. The maximum annual rent increase for tenants currently residing in one of the 60% AMI units shall not exceed five percent (5%) plus the percentage change in Consumer Price Index, or ten percent (10%), whichever is lower, of the rent authorized under the Original Agreement until the rent equals 60% AMI. Rents may be increased only once a year. Selection of Tenants: A new local preference will be added to the Resident Selection Plan for residents who live or work in the City. Rehabilitation and Maintenance: OHDC is responsible for the rehabilitation of the Project and ongoing maintenance of the property to ensure it remains in a healthy and safe condition over the 55-year term. The Regulatory Agreement does not contain an obligation for OHDC or C&C to proceed with the rehabilitation as proposed. Consent by Housing Authority: The Regulatory Agreement removes the Community Redevelopment Agency for the City of Santa Ana as a party. The Housing Authority, as the Successor Agency, will approve this through a consent. The Amended and Restated Regulatory Agreement has been signed by OHDC to acknowledge their acceptance of the terms.