25I - AGMT - LOAN AGMT 940 MINNIE LP

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Loan Agreement with 940 Minnie LP March 18, 2014 Page 2 The City's review team was made up of senior staff from the Planning and Building Agency, the Community Development Agency's Successor Agency, and Housing Development Divisions. The team met on January 8, 2014 to review the proposal. It was determined that the proposal was fully compliant with the submission requirements of the RFP, and unanimously recommended that it be submitted to City Council for approval. The development team is composed of Orange Housing Development Corporation (OHDC) and C &C Development. They have tentatively chosen to name their partnership 940 Minnie, LP. Over the past twenty years, OHDC and C &C Development have partnered with each other and with the City on many successful affordable housing projects. The proposed project, located at 940 S. Minnie Street (Exhibit 1), will build on the City's existing focus in the Cornerstone Village neighborhood. The Minnie Street project is adjacent to other affordable housing properties currently owned by the developer. The acquisition and rehabilitation will assist in the long -term stabilization of the neighborhood and promote the City's goal of providing long -term, affordable housing, as well as assist in meeting the affordable housing goals as identified in the Housing Element and Consolidated Five Year Plan. The proposed project will be the twentieth building in the Cornerstone Village neighborhood that has been acquired and rehabilitated by OHDC. As part of the rehabilitation, the partnership is proposing to reconfigure the ten one - bedroom units into eight units. The proposed unit mix and rent restrictions are as follows: The proposed rents are the amount allowed pursuant to the Tax Credit Financing and are lower than what is allowed under HOME regulations. Therefore, the rent will be the lowest between tax credit and HOME regulations. The total project cost to acquire, rehabilitate and provide the proposed level of affordability in the building is $2,038,631. The tables below summarize the proposed funding sources and anticipated costs of the projects: Permanent Funding Sources 50% AMI Unit Size Very Low Income No. proposed Rent City of Santa Ana — HOME Funds $ 1,422,000 Units $ 2,038,631 One Bedroom 4 $814 Two Bedroom 2 $976 Three Bedroom 2 $ 1,110 The proposed rents are the amount allowed pursuant to the Tax Credit Financing and are lower than what is allowed under HOME regulations. Therefore, the rent will be the lowest between tax credit and HOME regulations. The total project cost to acquire, rehabilitate and provide the proposed level of affordability in the building is $2,038,631. The tables below summarize the proposed funding sources and anticipated costs of the projects: Permanent Funding Sources Amount Permanent Loan $ 500,000 Developer Equity $ 116,631 City of Santa Ana — HOME Funds $ 1,422,000 TOTAL $ 2,038,631 251 -2