Agenda Packet_2024-07-16 (Revised)

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EXHIBIT 1 preference for families who live or work in the City of Santa Ana. Construction will comply with all City of Santa Ana, county, and state building codes. The City of Santa Ana ("City") has reviewed the Developer's request for financial assistance, and at the City Council meeting on November 15, 2022, the City Council authorized and approved issuance of this pre-commitment letter evidencing the preliminary award of $2,200,000 in Inclusionary Housing Funds consisting of ("City Assistance"): - A Conditional Grant in the maximum amount of$2,200,000 from the Inclusionary Housing Fund held by the City for the Project ("Conditional Inclusionary Housing Grant"). C This letter shall evidence the City's pre-commitment of the City Assistance to the Developer for the Project subject to the conditions described below. City Assistance: The amount of the proposed City Assistance has been determined based upon the City's review of the Developer's request for the receipt of the City Assistance and the development proforma and projected cash flows for the Project submitted by the Developer to the City ("Proforma"). The City Manager has the authority to approve revised development proformas and projected cash flows for the Project; provided, however, that the City Assistance is not increased or extended. The City Assistance shall include the following terms: • The Conditional Inclusionary Housing Grant shall be for a maximum principal amount of$2,200,000, or as much thereof, as is disbursed for hard and soft costs in constructing the Project, provided from the Inclusionary Housing Fund. • Provided Developer constructs the Project according to the Scope of Work and Schedule of Performance, the Developer will be subject to no repayment obligation. Upon the City's issuance of a Certificate of Completion, the Grant Agreement shall automatically terminate. In the event the Project is not constructed in compliance with the Scope of Work and Schedule of Performance within two (2) years from the date of the first disbursement of the Grant funds, the City may terminate the Grant Agreement and may seek repayment of Grant monies not expended on development and construction of the Project pursuant to the default remedy provisions of the Grant Agreement. • The six(6) "Housing Units" at the Project shall and will be restricted to an affordable home purchase price which will require that the six homes be sold to low-income qualified buyers who earn up to 80% of the Orange County Area Median Income as set by the Department of Housing and Urban Development ("HUD"). Future City Council 12 — 10 7/16/2024