Item 21 - Amendment to the Affordable Housing Funds Policies and Procedures

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Affordable Housing Funds Policies and Procedures Page 23 VII.FUNDING SOURCES Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund) Source of Funds Funding sources for this program are generated from proceeds from the sale of former Redevelopment Agency housing assets, residual receipts from former Re development Agency assets (i.e. loans), as well as a portion of the loan repayments from the former Redevelopment Agency to the City. Sources are set aside for the purpose of increasing, improving and preserving the community’s supply of low and moderate income housing as stipulated by California Health and Safety Code Section 34176. (Further information on grant terms provided in Section III). This fund includes land assets owned by the Housing Authority acting as the Housing Successor Agency that must be developed for affordable housing or sold at or above fair market value to increase the Low and Moderate Income Housing Asset Fund. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC ’s) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects All new construction projects shall be affordable to households whose income, as adjusted for household size, does not exceed 80% of area median income. Eligible acquisition and/or rehabilitation projects will: (1)have four or more apartments or be congregate housing or mobile home units, except where the Housing Division Manager finds that the project will provide a substantial public benefit; (2)be in need of rehabilitation as defined herein; (3)be located in the City of Santa Ana; (4)be free from significant adverse environmental conditions, except those that can be mitigated at a reasonable cost through rehabilitation; and, (5)minimize tenant displacement. Eligible Uses and Activities Program funds can be used to make loans or grants to eligible borrowers who will provide affordable housing, principally for low- and moderate-income households. Eligible uses of deferred payment loan funds or grants include, but are not limited to, the following: Exhibit 1