19E - RFP - AFFORDABLE RENTAL HOUSING PROJECTS

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acquisition/rehabilitation projects, twenty (20) years for new construction projects, or until the City loan is repaid whichever is longer. HOME and CDBG funded units must, at a minimum be affordable to very low and low income households. For projects located in the Transit Zoning Code area, at least ten (10) percent of the units must be affordable to and occupied by households with incomes at or below 30 percent of the area median income. As of the date of this RFP allowable rents were as follows: Beds Maximum 0% Rent Maximum 50% Rent (Very Low Maximum 5% Rent Low 0 $480 $843 1,076 1 $514 $903 1,154 2 $618 $1,083 1,387 3 $714 $1,252 $1,594 4 $796 $1,397 $1,759 Allowable rents must be reduced by a utility allowance for tenant paid utilities. A current utility allowance table is attached as Attachment 4. d. LOAN TERMS City assistance will be offered in the form of a long term loan secured by a promissory note and a deed of trust recorded against the property. If necessary, this loan may be subordinated to loans from other lenders. The loan will carry a 3 percent interest rate payable through residual receipts over a period of thirty (30) years. At the close of each fiscal year and as part of a required annual audit, the developer will calculate the amount of residual receipts, and make an annual payment to the City in an amount equal to 50 percent of the residual receipts. e. DISCLOSURES • Financial Statements submitted to the City in response to the requirements of this RFQ/RFP are subject to public records requests. Consequently the City cannot guarantee that they will be kept confidential. The City will require developers to enforce the federal occupancy standard of two persons per bedroom plus one. The City utilizes rent and income tables developed by HUD, and for 30 percent of median rents, tables developed by the California Tax Credit Allocation Committee. Allowable rents and incomes may remain unchanged or may go down from one year to the next. Attainable rents may be significantly less than allowable rents. The City anticipates that HUD may release new rent and income tables for the HOME Program at some time during the next several months. Both may be lower than the current tables. The City utilizes an Information Bulletin released annually by HUD to determine the maximum per unit HOME subsidy limits. The last such Bulletin was released May 31, 2012 with an effective date of January 1, 2012. When released, the new bulletin may increase or decrease the HOME subsidy limits applicable to this RFP. City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 12 19E-15