25F - AGMT - 605-611 EAST WASHINGTON ST LOAN

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 7, 2011 TITLE: LOAN AGREEMENT - 605-611 EAST WASHINGTON STREET ?l CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 15` Reading ? Ordinance on 2"d Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the City Manager, or designee, and Clerk of the Council to execute the attached loan agreement with Santa Ana WBBB, LP in an amount not to exceed $2,500,000, subject to non- substantive changes approved by the City Manager and City Attorney. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION At its regular meeting on February 15, 2011, by a vote of 5:0 (Bist absent), the Community Redevelopment and Housing Commission approved the recommended action. DISCUSSION On March 1, 2010, Orange Housing Development Corporation (OHDC), a non-profit 501(c)(3), and C&C Development (C&C), a for-profit developer, were awarded the contract to implement the multi-family rental program funded by the Federal National Stabilization Program (NSP). They have formed a Limited Partnership named Santa Ana WBBB, LP (Developer) for financing purposes. In June 2010, the developer acquired foreclosed vacant lots at 605-611 East Washington (Exhibit 1) using NSP funds. The entitlement process is being completed and the project is proceeding with funding in order to commence construction. The developer proposes to construct 36 multi- family rental units of which 10% or 4 units will be rented to extremely low income families (at or below 30% of the Area Median Income (AMI)) and 31 units will be rented to very low income families (at or below 50% of AMI). The one remaining unit will be designated as a manager unit. The project will have 8 two-bedrooms, 27 three-bedrooms and 1 five-bedroom. The following table contains the breakdown of the units by bedroom size and affordability as well as maximum rents: 25F-1