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Disposition and Development Agreement and Loan Agreements
<br />August 17, 2010
<br />Page 2
<br />3. Authorize the Executive Director and Agency Secretary to execute a loan agreement with Santa
<br />Ana WBBB, LP in an amount not to exceed $530,000, subject to non-substantive changes
<br />approved by the Executive Director and Agency General Counsel for 435-437 South Birch
<br />Street.
<br />4. Authorize the Executive Director and Agency Secretary to execute a loan agreement with Santa
<br />Ana WBBB, LP in an amount not to exceed $530,000, subject to non-substantive changes
<br />approved by the Executive Director and Agency General Counsel for 2034-2038 Bush Street.
<br />DISCUSSION
<br />A key objective of the Redevelopment Agency is to expand and preserve affordable housing. To
<br />that end, in December 2009 the Agency selected developers resulting from a Request for
<br />Qualifications for both single family and multi-family residential units on properties owned by the
<br />Agency. Orange Housing Development Corporation (OHDC), a non-profit 501(c)(3), and C&C
<br />Development (C&C), a for-profit developer, was selected as developer for the multi-family housing
<br />parcels. They will form a Limited Partnership named Santa Ana WBBB, LP for financing purposes.
<br />The proposed project includes 215-217 South Birch, 435-437 South Birch and 2034-2038 Bush.
<br />The developers are proposing to merge the adjoining parcels (Exhibit 1) for each project site into
<br />one parcel and construct five units on each combined parcel. Each site will contain 2 two-
<br />bedrooms and 3 three-bedrooms. The units will be affordable to very low-income households
<br />(50% AMI). The beginning rents will be $989 for two-bedrooms and $1,125 for three bedrooms.
<br />In order to fund the construction, the partnership will apply for tax exempt bonds and tax credits.
<br />In addition, the project will need additional funds that will be provided by the City and
<br />Redevelopment Agency. The following table summarizes the sources and uses:
<br />Sources 215-217 S. Birch 435-437 S. Birch 2034-2038 Bush
<br />Permanent Lender $ 325,347 $ 325,347 $ 325,347
<br />HOME $ 500,000 $ 500,000 $ 500,000
<br />Tax-Increment $ 530,000 $ 530,000 $ 530,000
<br />General Partner Equity $ 11 $ 11 $ 11
<br />Limited Partner Equity $ 503,143 $ 503,143 $ 503,143
<br />Total $1,858,501 $1,858,501 $1,858,501
<br />Uses 215-217 S. Birch 435-437 S. Birch 2034-2038 Bush
<br />Construction $ 1,100,327 $ 1,100,327 $ 1,100,327
<br />Soft Costs $ 666,421 $ 666,421 $ 666,421
<br />Costs Deferred Until
<br />Conversion $ 36,799 $ 36,799 $ 36,799
<br />Financing Costs $ 54,954 $ 54,954 $ 54,954
<br />Total $ 1,858,501 $ 1,858,501 $ 1,858,501
<br />8OA-18
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