80B - JOINT - AFFORDABLE HOUSING FUNDS AMCAL

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Pre -Commitment Letter for $6,195,000 December 20, 2016 AMCAL 1440 Santa Ana Fund, L.P. AMCAL Multi -Housing, hic. 2082 Michelson Drive, Suite 306 Irvine, CA 92612 Attention: Mario Turner SUBJECT: 69 Unit Multi -Family Housing Project 1440 East First Street, Santa Ana, California Dear Mr. Turner, AMCAL 1440 Santa Ana Fund, L.P., a California limited partnership ("Developer") requested financial assistance in connection with the proposed development of a 69 unit affordable housing complex to be located at 1440 East First Street, Santa Ana, California ("Project"). The City of Santa Ana ("City") and the Housing Authority of the City of Santa Ana ("Housing Authority") has reviewed the Developer's request for assistance and at the City Council/Housing Authority meeting on December 20, 2016, the Housing Authority Board authorized and approved issuance of this pre -commitment letter evidencing the preliminary award of $6,195,000 of funds to the Project (the "Agency Assistance"), which Agency Assistance shall be funded exclusively from the Low and Moderate Income Housing Asset Fund (the "LMIHAF") held by the Housing Authority of the City of Santa Ana acting as the Housing Successor Agency (the "Agency"). The City, Agency and the Developer have mutually agreed upon the pre -commitment of Agency Assistance in the maximum amount of $6,195,000. The purpose of this letter is to provide a pre -commitment from the Agency for a loan of up to $6,195,000 ("Agency Loan") from the LMIHAF held by the Housing Successor Agency. The Agency intends that this letter evidence the Agency's pre -commitment of the Agency Assistance to the Developer for the Project subject to the conditions described below. The loan agreements for these funds require City Council/Housing Authority approval prior to execution by the Developer and the Agency. The amount of the proposed Agency Loan has been determined based upon the City and Agency's review of the Developer's request for the receipt of the Agency Assistance and the development proforma and projected cash flows for the Project submitted by the Developer to the City/Agency as of March 18, 2016 ("Proforma"). The Housing Authority's Executive Director has authority to approve revised development proformas and projected cash flows for the Project; provided, however, that the Agency Assistance is not materially increased or extended. In relation to this Agency Loan, the City Council approved a conditional, pre -commitment loan of up to $8,795,000 on April 19, 2016 funded exclusively from inclusionary housing in -lieu fee payments made pursuant to the City's Housing Opportunity Ordinance (Article XVIII.I of Chapter 41 of the Santa Ana Municipal Code) by the market rate developer of that certain mixed-use 1