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~F <br />TI <br />~s~~f~cY Be~A~~ tVIEETINC o~ATE: <br />A~EN~v sEC~ETA~~ tysE ONLY: <br />MARCH 7, 2011 <br />TITLE: <br />LOAN AGREEMENT - <br />605-611 EAST VVASFIINGTON STREET <br />APPROVED <br />[] As Recommended <br />[] As Amended <br />^ Ordinance on 1~` Reading <br />t] Ordinance on 2"d Reading <br />[] Implementing Resolution <br />~ Set Public Hearing For_ <br />CONTINUED TO <br />~ R,r~i' (~ 1 r,~c~` FiLE NUMBER <br />INTERIMxECUTl1/E ®IRECT®~ <br />~E~oMMEN®®AcT~c~N <br />Authorize the Executive Director, or designee, and Agency Secretary to execute the attached loan <br />agreement with Santa Ana WBBB, LP in an amount not to exceed $3,888,497, subject to non- <br />substantive changes approved by the Executive Director and Agency General Counsel. <br />COMMUNITI° REDEVELOPMENT AND HOUSING COMMISSION ACTION <br />At its regular meeting on February 15, 2011, by a vote of 5:0 (Bist absent), the Community <br />62edevelopment and Housing Commission approved the recommended action. <br />DISCUSSION <br />On March 1, 2010, Orange Housing Development Corporation (OHDC), anon-profit 501(c)(3), and <br />C&C Development (C&C), afor-profit developer, were awarded the contract to implement the <br />multi-family rental program funded by the Federal National Stabilization Program (NSP). They have <br />formed a Limited Partnership Warned Santa Ana WBBB, LP (Developer) for financing purposes. <br />In June 2010, the developer acquired foreclosed vacant lots at 605-611 East Washington (Exhibit <br />1) using NSP funds. The entitlement process is being completed and the project is proceeding <br />with funding in order to commence construction. The developer proposes to construct 36 multi- <br />family rental units of which 10% or 4 units will be rented to extremely low income families (at or <br />below 30% of the Area Median Income (AMI)) and 31 units will be rented to very low income <br />families (at or below 50% of AMI). The one remaining unit will be designated as a manager unit. <br />The project will have 8two-bedrooms, 27 three-bedrooms and 1five-bedroom. The following table <br />contains the breakdown of the units by bedroom size and affordability as well as maximum rents: <br />4-1 <br />