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Item 09 - Approve a Pre-Commitment of up to $920,000 in Inclusionary Housing Funds for Eligible Homebuyers to Purchase Nine (9) Existing Rental Units that will be coverted into Affordable Ownership Condominium Units Located at 425 E. Wellington Avenue
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Item 09 - Approve a Pre-Commitment of up to $920,000 in Inclusionary Housing Funds for Eligible Homebuyers to Purchase Nine (9) Existing Rental Units that will be coverted into Affordable Ownership Condominium Units Located at 425 E. Wellington Avenue
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6/25/2025 1:35:50 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Community Development
Item #
09
Date
7/1/2025
Destruction Year
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EXHIBIT 3 <br /> Judson Brown, City of Santa Ana February 10, 2025 <br /> Habitat Wellington — Preliminary Financial Gap Analysis Page 11 <br /> Available Silent Second Mortgage Revenue <br /> Based on the estimated market rate sales prices, the available silent second mortgage revenue <br /> is estimated at as follows: <br /> Moderate Income Units <br /> One-Bedroom Two-Bedroom <br /> Units Unit <br /> Market Rate Sales Price $345,600 $389,700 <br /> (Less) Affordable Sales Price (310,400) (350,500) <br /> Silent Second Mortgage Amounts (Per Unit) $35,200 $39,200 <br /> Number of Units 8 1 <br /> Available Silent Second Mortgage Capacity $281,600 $39,200 <br /> Total Amount of City Down Payment <br /> Assistance Secured as Silent Mortgages $320,800 <br /> Thus, it is important to note that based on the estimated market rate prices, the City will not be <br /> able to secure the full $80,000 in City Down Payment Assistance Program funding per unit. The <br /> City will only be able to secure the amount of mortgage capacity between the appraised market <br /> value and the first mortgage amount. <br /> Based on current estimates, the City will be able to secure $320,800 of the $720,000 in City <br /> Down Payment Assistance Program funding as silent mortgages. <br /> Proposed City Down Payment Assistance $720,000 <br /> (Less) Amount Secured by Silent Mortgages (320,800) <br /> Estimated Amount Unable to be Secured Against $399,200 <br /> Affordable Units <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br />
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