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Pre-Commitments of $10,727,571 of Affordable Housing Funds for Habitat for Humanity <br />March 4, 2025 <br />Page 6 <br />4 <br />8 <br />5 <br />0 <br />a silent mortgage based on homebuyer eligibility. Homebuyers must meet the eligibility <br />requirements for Habitat for Humanity’s Affordable Homeownership Program with a <br />residency preference for local workers and residents of Santa Ana in accordance with <br />Santa Ana Municipal Code Section 8-3500. The conditional award of up to $200,000 for <br />eligible relocation costs will be available upon a determination by the City that the <br />Project is subject to relocation benefits under California Government Code §§7260 or <br />66300.6. The specific amounts utilized for relocation benefits will be based on actual <br />amounts determined immediately prior to the relocation of existing tenants. <br />The City and Habitat for Humanity will enter into a Memorandum of Understanding <br />("MOU") that sets forth the terms under which the City will provide the homebuyer Down <br />Payment Assistance and conditional relocation award. The MOU will specify that the <br />project is not undertaken by the City and is not in furtherance of a City program. Rather, <br />the MOU is a response to Habitat for Humanity’s request for financial assistance to <br />enhance affordability for qualified homebuyers by providing homebuyer Down Payment <br />Assistance through an existing City program. The MOU will require that Habitat for <br />Humanity execute an affordable housing covenant to offer the nine (9) affordable units <br />to households with income that does not exceed the limits for Low and Moderate- <br />Income Households for an affordable sales price that complies with the limits for an <br />"affordable housing cost," as defined in California Health and Safety Code §50052.5. <br />The affordable housing covenant will run with the land for a period of forty-five (45) <br />years. <br />This second pre-commitment letter shall not obligate the City or any department thereof <br />to approve any application or request for, or take any other action in connection with, <br />any planning approval, permit, or other action necessary for the construction, <br />rehabilitation, installation, or operation of the project. The pre-commitment letter will also <br />be conditional on Habitat for Humanity obtaining approval of all required entitlements <br />and discretionary actions to allow the construction, improvement, conversion, and/or <br />development of nine (9) affordable ownership units at 425 E. Wellington Avenue. <br />In compliance with the City’s Affordable Housing Funds Policies and Procedures, KMA <br />completed a second preliminary financial gap analysis for this project (Exhibit 5). <br />Following this analysis and completion of the procurement process, KMA confirmed the <br />preliminary financial gap and need for the Review Panel’s recommendation to award up <br />to $920,000 in Inclusionary Housing Funds. This second project’s economics are <br />described in detail in KMA’s analysis attached as Exhibit 5 to this report. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action because the <br />recommended actions consist of a pre-commitment of funds that is conditional upon <br />compliance with the California Environmental Quality Act and the National <br />Environmental Policy Act.