Item 23 - Councilmember Requested Item Regarding Affordable Housing Funds and Policies

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502 East Pine Street Santa Ana, CA 92701 Overview: Habitat for Humanity of Orange County is evaluating the acquisition and rehabilitation of an existing multifamily condominium complex located at 520 East Pine Street. The project will convert the property into 18 permanently affordable homeownership opportunities for low-income working families in Santa Ana. Project Cost: $13,071,680 Condo Complex Description: Multifamily complex originally developed as a condo complex and currently has inactive HOA. Desirable unit mix consisting of 3, 2 bed/1.5 bath units, 10, 2 bed/1.5 bath townhomes, and 5, 3 bed/2 bath units. Three bedrooms are flats. Two-bedroom- units are two-stories. Amenities include controlled access, private patios or balconies, elevator service, a gated subterranean parking garage, and on-site laundry. The complex has been operating as a rental property with no individual condo owners. Project Goal: Complete a major rehabilitation of unit interiors and common areas to improve safety, durability, and quality of life for residents, while reducing future maintenance risk and ensuring long-term affordability for homeowners. • Create 18 affordable homeownership opportunities for low-income working families • Provide first-time homeownership opportunities in Santa Ana’s competitive housing market • Preserve and improve an existing housing asset in the community • Stabilize housing for families and strengthen neighborhood vitality • Support long-term affordability through Habitat’s homeownership model Rehab Scope (Preliminary): Habitat OC plans to complete substantial interior upgrades, including: • New flooring • Interior painting • Renovation of kitchens (cabinets, counters, fixtures as appropriate) • Renovation of bathrooms (finishes and fixtures as appropriate) • Plumbing and electrical systems will be assessed and, if necessary, upgraded to support long-term performance and reliability. • The building currently has heating only and no air conditioning. Habitat will evaluate the feasibility and cost of adding mini-split HVAC systems as part of the rehabilitation strategy, taking into account electrical capacity, and long-term operating impacts. • To enhance safety and building function, Habitat OC will rehabilitate the common areas, including: - Courtyard improvements, including water proofing and protective treatments as needed - Laundry room upgrades - Elevator improvements/renovation Due Diligence Plan: During the due diligence phase, Habitat OC will engage qualified consultants to evaluate existing conditions and identify requirements, compliance obligations, and cost drivers. Planned assessments include: • Phase I Environmental Site Assessment • Lead-based paint testing • Asbestos testing, including testing of popcorn ceilings as applicable • Structural engineering review • Additional specialty consultants as needed (e.g., building systems, accessibility, and code compliance) HOA and Reserve Considerations Habitat OC recognizes that HOA dues and reserves play a direct role in long-term homeowner stability. The rehabilitation plan will prioritize improvements that: • Reduce future emergency repairs and unplanned assessments • Support appropriate reserve planning and long-term replacement cycles • Help mitigate upward pressure on HOA costs by addressing key building and common area needs proactively Timeline: Habitat OC anticipates completing acquisition, rehabilitation, and resale of homes to qualified first-time homebuyers within 24 months of a funding award. Habitat OC is requesting that the City Council Initiated Proposal Review process be initiated now in anticipation of a potential funding consideration in September– October 2026.