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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EXHIBIT 2 The City of Santa Ana ("City") has reviewed the Developer's request for financial assistance, and at the City Council meeting on July 1, 2025, the City Council authorized and approved the issuance of this pre-commitment letter evidencing a commitment to reserve $920,000.00 (the "City Assistance") in Inclusionary Housing Funds as follows: (1) an allocation of$720,000 to the City's Down Payment Assistance Program (the "Down Payment Assistance Program Allocation"), and (2) a conditional award up to $200,000 for eligible relocation costs (the "Conditional Relocation Allocation"). The City Assistance will be available to Low and Moderate-Income households. Current residents of the Property with household incomes of less than 120% AMI and that qualify to purchase a unit within the Property will be given the right of first refusal to purchase a unit. The Down Payment Assistance Allocation shall be available for down payment assistance to individual households, structured as a silent mortgage based on homebuyer eligibility (the "Homebuyer Down Payment Assistance"). Homebuyers must meet the eligibility requirements for the Developer's Affordable Homeownership Program with a residency preference for local workers and residents of Santa Ana in accordance with Santa Ana Municipal Code Section 8-3500. Conversion and construction will comply with all City of Santa Ana, County, and State building codes. The Conditional Relocation Allocation will be available upon a determination by the City that the Project is subject to relocation benefits under California Government Code §§ 7260 or 66300.6. This letter shall evidence the City's pre-commitment of the City Assistance to the Developer for the Project subject to the conditions described below. City Assistance: The amount of the proposed City Assistance has been determined based upon the City's review of the Developer's request for the receipt of the City Assistance targeting Low and Moderate Income Households. The City Assistance shall be conditioned on and include the following terms: • City and Developer shall enter into a Memorandum of Understanding ("MOU") that sets forth terms under which the City shall provide the Homebuyer Down Payment Assistance and Conditional Relocation Allocation. • The Homebuyer Down Payment Assistance shall be available for Low and Moderate Income Households with income that does not exceed 120% of the Orange County AMI as set by the Department of Housing and Urban Development ("HUD"). • The MOU may, but is not required to, include provisions that govern if and how the City Assistance may be used in the event the total authorized Homebuyer Down Payment Assistance loans are less than the amount of the award in this pre-commitment ($720,000.00). The MOU may make these provisions subject to approval from the City Manager of an amended MOU.