Item 18 - Approve a Pre-Commitment for HOME Program Funds

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Pre-Commitments of $10,727,571 of Affordable Housing Funds for Habitat for Humanity March 4, 2025 Page 3 4 8 5 0 including: (1) an allocation of $720,000 to the City's Down Payment Assistance Program, and (2) a conditional award up to $200,000 for eligible relocation costs. Background on Habitat for Humanity of Orange County Habitat for Humanity of Orange County (“Habitat for Humanity”) is a nonprofit organization dedicated to providing affordable housing for qualifying families. Since 1988, the organization has completed and sold 239 homes in Orange County, including 32 affordable homes in the City of Santa Ana. Habitat for Humanity is currently building an additional six (6) new homes in the City at 1921 W. Washington Ave for low-income families at 80% of the AMI that was made possible with $2.2 million from the City’s Inclusionary Housing Fund. Habitat for Humanity also currently administers the City’s Residential Rehabilitation Grant Program with $500,000 per year in Community Development Block Grant funds. The organization is the largest provider of affordable ownership opportunities in Orange County and also advocates for fair housing policies, addresses substandard housing conditions, and offers families training and resources to achieve homeownership. Project Description - 621 W. Alton Avenue The first pre-commitment letter for 621 W. Alton Avenue, Santa Ana, CA (APN 410-351- 02) between the City and Habitat for Humanity provides an enforceable funding commitment of $9,807,571 in HOME Program funds for the development of 40 new affordable ownership units (Exhibit 2). The letter is referred to as a pre-commitment because the HOME Program has strict commitment requirements under 24 CFR Part 92 that must be met before a full commitment can be issued in the form of a Conditional Grant Agreement. Specifically, Habitat for Humanity proposes to demolish the existing structures on the property to build 40 new homes for affordable ownership. The project will include 30 three-bedroom, one and a half-bath homes for low-income households earning up to 80% of the AMI ("Low-Income Households") and 10 three-bedroom, one and a half-bath homes for moderate-income households earning up to 120% AMI ("Moderate-Income Households"). The AMI is currently $129,000 for a four-person household, as published by the California Department of Housing and Community Development. Households must also meet the eligibility requirements for Habitat for Humanity’s Affordable Homeownership Program with a residency preference for local residents and workers in Santa Ana in accordance with Santa Ana Municipal Code Section 8-3500. In a preliminary design drafted by Habitat for Humanity, each unit will have a two-story in a duplex configuration and will be approximately 1,070 square feet in size. At least two (2) of the homes will be Americans with Disabilities Act (ADA) compliant. The site bridges the larger scale of existing multi-family properties to the north and east of the project site with the existing single-family homes to the west. The proposed units are arranged along paseos with a modest central courtyard located at the paseo intersection, complementing the large park (Lillie King Park) across the street. Each unit features a front porch and private patio. Garages and guest parking are accessed via a looping alley, allowing efficient movement for trash collection and emergency vehicles.