25H - AGMT - AFFORDABLE HOUSING 2151 E 1ST ST

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Loan Agreement - Guest House LP for Affordable Housing June 21, 2016 Page 2 The criteria used to evaluate proposals included: demonstrated ability of the developer team to develop (20 %); demonstrated ability to manage affordable rental units so as to ensure both on- going compliance with affordability requirements and long term financial solvency (15 %); demonstrated readiness of the proposed project to proceed (30 %); proposed levels of affordability (15 %); extent to which City funds will be leveraged by outside funds as shown by sources and uses budget (10 %); anticipated cash flows as shown by the pro forma (5 %); and status as a CHDO (5 %). For the evaluation of the proposals received under the RFP, staff formed a Review Panel consisting of senior staff from the Planning and Building Agency, the Community Development Agency, Keyser Marston Associates Inc., and the Orange County Community Services department. The panel met on April 20, 2016 to review the proposals and interview the developer teams. Each proposal was evaluated based on the RFP criteria, with the average scores below: Proposal Average Score Community Development Partners / Guest House 101 Meta Housing Corporation / 17th St Rehab 76 The top -rated proposal, Community Development Partners /Guest House, was unanimously recommended by the Review Panel to be submitted to the Community Redevelopment and Housing Commission for award and recommendation to City Council for final approval. Project Description Community Development Partners (Developer) is an experienced multifamily and mixed -use developer focused on creating and preserving vibrant affordable housing communities that are sustainable and enhance the fabric of the surrounding community. The Developer is experienced in developing housing for low- income seniors, families, veterans, and individuals experiencing homelessness. The Developer is based in Orange County. Since 2012, the Developer has received eight tax credit allocations for projects totaling over $100 million in project development costs. The Developer has created the Guest House, LP as an entity for this project. The Developer has partnered with Mercy House for this project to provide the services and expertise for serving the homeless population. Mercy House is a Santa Ana based non - profit service provider dedicated to serving populations with the most critical needs such as veterans and individuals who are homeless or disabled. Mercy House has been serving such populations for over 25 years. The proposed project, located at 2151 E. First Street (Exhibit 1) is an acquisition and rehabilitation of an existing, market rate hotel. The project will provide 58 studio units and 14 one - bedroom units serving chronically homeless residents earning at or below 60% of the Area Median Income (AMI). The design will feature four two -story buildings, a community garden, commercial kitchen, outdoor courtyard and laundry facilities. Interior units will be improved with Energy Star appliances, new cabinets, countertops and vinyl flooring. The project currently 25H -2