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CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY <br />REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT <br />EXHIBIT A - SCOPE OF SERVICES <br />1. INTRODUCTION <br />The City of Santa Ana (City) has adopted a Consolidated Five Year Plan (Plan) that governs its <br />expenditure of formula grant funds received from the U.S. Department of Housing and Urban <br />Development (HUD). The Plan identifies new construction and acquisition/rehabilitation of <br />affordable rental housing units as high priorities. It further stipulates that HOME Investment <br />Partnership Act funds (HOME) and Community Development Block Grant funds (CDBG) may <br />appropriately be used to meet these goals. As of the date of this Request for Proposals (RFP) the <br />City has approximately $2.8 million in HOME funds approximately $1 million in CDBG funds <br />available to commit to such activities. <br />In order to meet these goals, the City is soliciting proposals for the development of affordable <br />multifamily projects from developers who are experienced, financially creative and capable of <br />developing, managing and maintaining high quality rental housing. The City will entertain <br />proposals for either of these two types of projects: <br />• Acquisition and Rehabilitation of Existing Residential Rental Projects in the City of Santa <br />Ana <br />• New Construction of Residential Rental Projects in the City of Santa Ana <br />The selected developer will also have a demonstrated history of working cooperatively with <br />surrounding neighborhoods in all phases of project development. Both nonprofit and for profit <br />developers are eligible to apply, either individually or in partnership with other entities. Due to <br />HUD's commitment deadlines for the City's funds, it is imperative that applicants be able to <br />demonstrate site control for the land they propose to develop or the existing facility they propose to <br />acquire and rehabilitate. HUD policy generally discourages the use of federal grant funds as the <br />only financing source for multifamily projects. As a consequence, developers who can <br />demonstrate the capability to make non-federal funds a significant part of the financing mix for their <br />proposed project will score higher in the selection process than those who cannot. <br />a. DEVELOPMENT SITE PREFERENCES <br />The City is not making any parcels it owns available for development through this RFP, and it will <br />entertain proposals for suitable properties located anywhere in the City. However, the City prefers <br />to maximize the positive impact of its limited federal housing development funds by concentrating <br />their expenditure in targeted areas of the City. The City has identified three geographical areas <br />where it has targeted significant public resources in the past, and where it would like to see <br />additional resources targeted in the future. The three are known as follows: Cornerstone Village <br />(Attachment 1), Station District Transit Zoning Code (Attachment 2), and Townsend-Raitt <br />(Attachment 3). Please note that one of the rating criteria of this RFP is location of the proposed <br />project. <br />Both the Plan and the City's Housing Element identify affordable rental housing suitable for larger <br />City of Santa Ana Community Development Agency <br />Request for Proposals for Affordable Housing Development <br />Page 10 <br />19E-13