4 - Housing Successor Agency RFP

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City of Santa Ana Community Development Agency Request for Proposals for Housing Successor Agency Properties Page 10 Service-Enriched Housing. Proposers shall clearly highlight any City’s goals that the proposed project would align with. These Agency properties shall have a maximum income to be at or below 120% of the Area Median Income (AMI) for Orange County. Income limits are determined by the State of California Department of Housing and Community Development. Pursuant to Section 34176.1 (a)(3)(B), the Agency is required to spend 30% of its Low and Moderate Income Housing Asset Fund (LMIHAF) for the development of rental housing affordable to and occupied by households earning 30% or less of the AMI (extremely low income households). At the time of this RFP, the 2015 Income Limits for Orange County were as followed: Household Size Extremely Low Very Low Low Income Moderate Income 1 person $20,250 $33,750 $53,950 $73,250 2 persons $23,150 $38,550 $61,650 $83,700 3 persons $26,050 $43,350 $69,350 $94,200 4 persons $28,900 $48,150 $77,050 $104,650 5 persons $31,250 $52,050 $83,250 $113,000 6 persons $33,550 $55,900 $89,400 $121,400 7 persons $36,730 $59,750 $95,550 $129,750 8 persons $40,890 $63,600 $101,750 $138,150 B. FUNDING FOR DEEPER AFFORDABILITY C. TERM OF AFFORDABILITY AND MAXIMUM ALLOWABLE RENTS The selected developer shall enter into an Agreement with the Housing Successor Agency. This Agreement and other attendant documents shall provide for repayment of the loan. They shall also impose affordability covenants of no less than fifty-five (55) years for proposed projects or until the City loan is repaid whichever is longer. Allowable rents must be reduced by a utility allowance for tenant paid utilities. Income limits are determined by the State of California Department of Housing and Community Development. Rent limits follow Health & Safety Code Sections 50052.2 and 50053. The 2015 Income Limits can be found here: http://www.hcd.ca.gov/housing- policy-development/housing-resource-center/reports/state/inc2k15.pdf D. AGREEMENT TERMS Agency assistance will be offered in the form of a long term loan secured by a promissory note in the amount of the fair market value of the property and a deed of trust recorded against the property. Should the Developer wish to include the property as part of the subsidy towards the project for a lesser amount, the Developer shall identify this subsidy in the proposal. The Agency will perform a subsidy layering analysis to ensure that the project is not over-subsidized by the Agency and City. If necessary, this loan may be subordinated to loans from other lenders in accordance with the City’s subordination guidelines. 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 75 4-13