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Community Development Agency www.santa-ana.org/community-development Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report October 15, 2024 TOPIC: Permanent Supportive Housing Project at 918 Bewley Street AGENDA TITLE Conditional Grant Agreement and Affordable Housing Regulatory Agreement with Declaration of Covenants and Restrictions with Illumination Foundation (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute a conditional grant agreement and regulatory agreement with Illumination Foundation for $2,021,319 in Homeless Housing, Assistance and Prevention Program Round 1, 2, and 3 funds for the development of the Richard Lehn Intergenerational Housing Project located at 918 Bewley Street (APN 198-231-10) (Agreement No. A-2024-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION On July 18, 2023, the City Council authorized the City Manager to execute a pre- commitment letter with Illumination Foundation for $2,021,319 in Homeless Housing, Assistance and Prevention Program (HHAP) funds and eight project-based vouchers for the development of the Richard Lehn Intergenerational Housing Project located at 918 Bewley Street, Santa Ana, CA 92703 (APN 198-231-10) (Exhibit 1). Regarding these specific HHAP funds, the State of California Department of Housing and Community Development requires that a portion of the City’s HHAP Round 1, 2, and 3 funds be used for homeless youth. If the City does not use the designated portion of HHAP Round 1 funds to serve homeless youth at this project, the Round 1 funds will expire by June 30, 2025, with similar expiration dates for Round 2 and 3 thereafter. The Richard Lehn Intergenerational Project (Project) is a permanent supportive housing development with two residential buildings for homeless youth and seniors and a preschool. The Project includes the rehabilitation of two 2-story residential buildings into 11 residential units composed of two 1-bedroom units, seven 2-bedroom units, and two 3-bedroom units. One 1-bedroom unit and seven 2-bedroom units will be restricted to homeless youth at or below 30% of the Area Median Income (“AMI”). The two 3- bedroom units will be structured as shared housing for homeless senior citizens at or below 50% of the AMI. One 1-bedroom unit will be unrestricted and reserved for an on- site manager. An existing preschool building will also be renovated and will continue to City Council 18 – 1 10/15/2024