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Southern California Presbyterian Homes Golden State Mobile Home Owners Ralph Carrico , Flory, Olson and Van Osdel st. Vincent De Paul Zucker Systems In addition to these groups, there are presently three community based nonprofit housing development corporations operating in Santa Ana that have the interest and capacity to acquire and manage subsidized housing. These groups include: Civic Center Barrio Housing Corporation Orange County Community Housing Corporation Santa Ana Neighborhood Housing Service While the City of Santa Aha operates an independent Housing Authority, this organization does not currently own or operate housing. Contacts will be initiated however with other public agencies that may have an interest in acquiring and managing subsidized housing. Financing/Subsidy Resources Under the provisions of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (the Act), the owners of federal, mortgage subsidized affordable housing interested in continuing to operate the housing, are entitled to incentives sufficient to yield eight percent of the preservation equity of the project, limited by the federal cost limits and subject to appropriations. Incentives available include rent increases, increases in Section 8 contract rents, additional Section 8 certificates, access to excess reserves, and residual receipts, flexible subsidies, or Section 241(d) insurance for capital improvements, equity take-out loans under Section 241(f), and possible redirection of Section 236 interest reduction payment to a second mortgage. These incentives are negotiated by the owner and the U.S. Department of Housing and Urban Development and must be sufficient to cover the annual authorized return, debt service on any rehabilitation loan, debt service on the HUD mortgage, operating expenses, and adequate reserves. Owners of federal mortgage subsidized affordable housing interested in a voluntary sale to a priority purchaser i.e.; tenant council, nonprofit corporation, or state/local agency can trigger the availability of HUD financial assistance subject to appropriations. Through this approach HUD must provide assistance sufficient to enable acquisition at a purchase price not greater than the project's preservation value, to pay the debt service on the mortgage, and debt service on any rehab loan, to meet project operating expenses and adequate reserves, and to receive an adequate return on any cash investment made to acquire the project. 11