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Loan Agreement - Guest House LP for Affordable Housing <br />June 21, 2016 <br />Page 4 <br />Indirect and Soft Costs <br />$1,759,631 <br />Developer Fee <br />$2,122,988 <br />Financing Costs <br />$622,145 <br />Project Reserves <br />$614,844 <br />TOTAL: <br />$18,173,086 <br />The City of Santa Ana funding sources, the HOME Program funds, will be provided by means of <br />a 55 -year City loan carrying a three percent interest rate and payable by residual receipts. <br />Execution of the loan agreement documents will be contingent upon completion of the National <br />Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA) <br />requirements, completion of a subsidy layering analysis by the City's financial consultant, and <br />loan commitments from all other funding sources. <br />On March 1, 2016, the Housing Authority of the City of Santa Ana approved the award of 71 <br />project -based vouchers for the Guest House LP to serve chronically homeless individuals and <br />families. This additional award of $1,199,869 will assist the long -term financial viability of the <br />project to serve chronically homeless individuals and families as well as increase the supportive <br />services provided on -site for these hard -to -house families. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, <br />Engagement & Sustainability, Objective #3 (Facilitate diverse housing opportunities and support <br />efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy A (Continue <br />to explore options Citywide regarding the re -use of commercial or industrial buildings that are <br />currently underutilized or vacant for mixed -use residential projects), and Strategy C (Provide that <br />Santa Ana residents, employees, artists and veterans receive priority for affordable housing <br />created under the City's Housing Opportunity Ordinance or with City funding to the extent allowed <br />under state law). <br />FISCAL IMPACT <br />Funds are available in the HOME Program funds as follows: <br />Funding Source <br />HOME Program <br />Grant Year Fiscal Year Account No. <br />Pre -2015 <br />2016 -2017 <br />13018780 -69152 <br />Amount <br />1,199,869 <br />Prior year HOME Program funds will be carried forward to fiscal year 2016 -2017. Funds are <br />anticipated to be committed and expended in fiscal year 2016 -2017 once other project financing <br />is in place for the project. <br />25H -4 <br />