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 4 4 8 5 0 There will be two parking spaces adjacent and dedicated to each home (one enclosed and one surface). There will also be 16 additional surface parking stalls for guests, including two ADA-accessible stalls. The overall design and materials of the new construction will be compatible with and complement the variation of styles within the neighborhood. Overall, the project will include a design and quality construction materials that will ensure that the project ages well for the duration of the building’s lifetime. Keyser Marston Associates, Inc. (“KMA”) estimates the low income affordable sales prices at $300,200 and Habitat for Humanity is currently estimating the moderate income affordable sales prices at $389,500. This project is being developed in partnership with Bill Taormina who is the current owner of the land. Mr. Taormina will be holding title of the land through the entitlement and building process. As such, he will continue to be responsible for holding costs and pay for the property taxes and required insurance for the duration of the project and up until the new homes are sold. Habitat for Humanity and Mr. Taormina have entered into a Memorandum of Understanding with the agreed upon terms and details of the partnership and land purchase. The project will require relocation of the existing religious organizations currently occupying and renting the existing structures on the property in compliance with the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act (“Uniform Relocation Act”), and all state and local relocation requirements. Currently, three religious organizations rent the existing structures including Faith Community Church of Santa Ana, Fundamentalist Baptist Church, and Turning Point Fellowship. These tenants will be provided relocation assistance that complies with the federal Uniform Relocation Act as required by the HOME Program federal funds. Per Habitat for Humanity, Federal relocation requirements stipulate that the maximum relocation assistance for businesses is $53,200 plus three months of rent payments, if required. As such, Habitat for Humanity estimates the total relocation assistance at $213,000. Once the three religious organizations vacate the existing structures, Habitat for Humanity will pay Mr. Taormina the rent paid by the vacating occupants and begin the process to demolish the buildings. From an initial review of the project by the City’s Planning and Building Agency, the timeline for processing the application and obtaining necessary approvals is expected to take approximately seven (7) to 12 months. The property is currently zoned as LR-7 (Low Density Residential, seven (7) units per acre). To the extent required under state housing laws, Habitat for Humanity may need to request a General Plan Amendment and zone change. Habitat for Humanity may also be required to comply with the City’s Sunshine Ordinance, which includes holding two community meetings. A California Environmental Quality Act review may be required and a Density Bonus Agreement may also be necessary, depending on the concessions and waivers needed for the development of the project.