111708 PH DDA with Olson Urban Hsg LLC

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Public Hearing - DDA with Olson November 17, 2008 Page 3 a lottery process to be organized and conducted by Olson. Preference will be given to households, including veterans, who live or work in Santa Ana. The future sale of these properties will be income restricted for a period of forty -five years in accordance with California Redevelopment Law. Although Exhibit 1 reflects the maximum allowable by State law, the proposed sales prices for the moderate income homes are $240,000 - $299,000 due to current market conditions and sales listings /comparables in their specific location. These prices will be evaluated prior to sale to determine if the fair market value has increased. Exhibit 2 shows the phases, addresses, and affordability level of each proposed home. Per the DDA, Olson will begin the entitlement process within 30 days and anticipates commencing construction in August 2009. The sites will be conveyed in two separate phases. Of the 20 homes, twelve have three bedrooms and two baths. The remaining eight homes have four bedrooms and two baths. The homes are either 1200 square feet or 1435 square feet. The homebuyers will be responsible for obtaining their own first mortgage financing. Low income homebuyers may be eligible for second mortgage, down payment assistance loans offered by the City through the federal American Dream Down Payment Initiative Program (ADDI). The Agency will record a trust deed (silent- second) on each property in an amount equal to the difference between the fair market value of the home and the affordable sales price. The property at 719 and 812 N. Concord is currently owned by the City of Santa Ana and was recently appraised for the amount of $730,000. Before it can be sold to Olson as contemplated in the DDA, it must first be purchased by the Agency. ENVIRONMENTAL COMPLIANCE Developer negotiations and preparation of a conceptual development plan do not constitute a project under CEQA guidelines. 7-27