29A - META HOUSING CORP - Laserfiche WebLink

Home Browse Search

MAYOR Miguel A. Pulido MAYOR PRO TEM Vincent F. Sarmiento COUNCILMEMBERS Angelica Amezcua P. David Benavides Michele Martinez Roman Reyna Sal Tinajero November 3, 2015 CITY MANAGER David Cavazos CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar CITY OF SANTA ANA 20 Civic Center Plaza a P.O. Box 1988 Santa Ana, California 92702 Www.santa-ana.oro EXHIBIT 2 Meta Housing Corporation Attn: Chris Maffris, Senior Vice President 1640 S. Sepulveda Blvd, Suite 425 Los Angeles, CA 90025 SUBJECT: SANTA ANA ARTS COLLECTIVE PROJECT — HOME LOAN PRE -COMMITMENT LETTER Dear Mr. Maffris: Meta Housing Corporation, a California corporation ("Developer") has submitted a proposal in response to the City of Santa Ana's Request for Proposals issued on June 1", 2015 and successfully was awarded financial assistance to the proposed affordable housing project called the "Santa Ana Arts Collective", which is an affordable, multi -family adaptive reuse 64 -unit apartment complex located at 1666 North Main Street in Santa Ana, California ("Project"). The City has reviewed the Developer's requests for assistance and on November 3, 2015 the City Council authorized and approved issuance of this pre -commitment letter evidencing the preliminary award of the HOME Loan, CDBG Loan and Inclusionary Housing Loan to the Developer for the Project under 24 CFR 92.504(c)(3) (together, "Santa Ana Assistance"). The project was awarded a pre -loan commitment of a total of $4,635,000 from the City of Santa Ana, including $2,260,000 in HOME Investment Partnerships Program (HOME) funding, $500,000 in Community Development Block Grant (CDBG) funding, and $1,875,000 from the City's Inclusionary Housing Funds. The loan agreements for these funds require City Council approval prior to execution by the Developer and the City of Santa Ana. The purpose of this letter is to provide a pre-comntitment from the City of Santa Ana for a loan of up to $2,260,000 ("HOME Loan") from funds received by the City as a participating jurisdiction ("PJ") under the federal HOME Investment Partnerships Program, in accordance with Title II of the Cranston -Gonzalez National Affordable Housing Act (42 U.S.C. 12701 12839) and the HOME Program regulations codified at 24 CFR Part 92, as amended by the "2013 HOME Final Rule" at 24 CFR Part 92 (Complete Rule) (together, the "HOME Program"). Santa Ana has made the Developer aware of the definition of "commitment" in 24 CFR 92.2 that prohibits the City as a PJ from providing a commitment (as the tern is defined therein) of HOME Program funds to any specific local project until "the [City] and project owner [Developer] have executed a written legally binding agreement under which HOME assistance will be provided to the owner for an identifiable project for which all necessaryfinancing has been securedd, a budget and schedule have been established, and underwriting has been completed and under which construction is scheduled to start within twelve months of the agreement date." (Italics added.) Notwithstanding the definition of "commitment" in 24 CPR 92.2, 24 CFR 92.504(c)(3) authorizes the City to "preliminarily award HOME funds for a proposed project, contingent on conditions such as obtaining other financing for the project" [italics added]; however, this section goes on to clearly confine that "[t]his preliminary award is not a commitment to a project. The written agreement committing the HOME funds to the project must meet the requirements of `conunit to a specific local project' in the definition of `comm tment' in §92.2 ..." Thus, while this letter is not a commitment of SANTA ANA CITY COUNCIL Miguel A. Pulitlo Vincent F. Sarmiento Michele Martinez Angelis Amezcua P. David Benavitles Raman Reyna Sal Tinajero Mayor Mayor Pro Tem. Ward 1 ! Ward !/a 3 Ward4 ! WardS Wartlfi MPulido(o)santa-ana are VSarmientonosanta-ana.oro I k ftnez(a)sonta-a_na.ora m tae r ! Daenavides(dsace-,oh, or RRevna(dsanta-ana.oro ! SunaieronDsantd-dna oro