80B - JOINT - AFFORDABLE HOUSING FUNDS AMCAL

Home Browse Search

AMCAL 1440 Santa Ana Fund, L.P. December 20, 2016 Page 3 in the Official Records, County of Orange, California. 34 of the 68 Housing Units at the Project shall and will be restricted to households earning 30% or less of the AMI unless the City and the Developer may reasonably determine that a lesser number of Housing Units at the Project should be restricted to household earning 30% or less of AMI is necessary to cause the Project to be competitive for tax credit financing and/or to be financially viable. One (1) Housing Unit will be rented to an on-site property manager; the manager's unit will not be rent -restricted. 5. The Loan Agreement shall provide that each of the following conditions shall be met prior to the disbursement of any portion of the Loan: a. All grading permits shall have been issued and the City shall have issued a letter stating that building permits are ready to issue, subject only to payment of fees and the completion of grading of the Project site. b. Developer shall have secured all necessary financing and fimding for the construction and operation of the Project. Such financing and funding shall be sufficient to pay all Project development costs, through lease -up, as set forth in a final budget consistent with the approved Proforma (or as otherwise approved by the City), C. The Developer shall have provided evidence to the City that the Developer has obtained insurance policies and certificates or endorsements acceptable to the City, as described in the Loan Agreement. d. The Developer shall have provided construction security in favor of the City, which may include a completion guarantee from AMCAL Multi- Housing, Inc; and/or a letter of credit and/or performance & payment bonds from the general contractor for the Project (or some combination of these), in an amount sufficient to ensure the Project will be completed and placed in service within the time set forth in the Project schedule approved by Santa Ana. C. Developer shall submit and obtain Executive Director of the Community Development Agency's approval of the constriction contract, Developer's limited partnership agreement for the limited partnership entity to be formed to own and operate the Project, and management, marketing and tenant selection plans for the Project. 6. The City's obligation to provide the Loan is and shall remain subject to all covenants, conditions, and restrictions set forth in the Loan Agreement, and in particular City's analysis of the available funding sources and development and operating costs of the Project and the overall economic feasibility of the Project. This conditional, pre -commitment letter for the project will expire two (2) years from issuance of the letter to the Developer. The Developer and the City agree in the Loan Agreement that the provision of any funds to the Project is and shall be conditioned on the City's determination to