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Approved List of Community Housing Development Organizations <br />February 7, 2017 <br />Page 2 <br />their legal status, organization structure, capacity, and experience as required by the HOME <br />regulations. <br />The City of Santa Ana provided organizations with an opportunity to apply for the 15 percent set - <br />aside of CHDO funds under prior Request for Proposals. However, the selected projects were <br />unable to qualify or fully use the CHDO funds made available by the City. In order for the City to <br />fully use this set -aside of HOME funds and meet HUD's commitment deadlines, the City released <br />a Request for Qualifications # 16 -120 (RFQ) for CHDOs on September 26, 2016, for affordable <br />rental and ownership housing in Santa Ana. City Council received and filed the RFQ on <br />September 20, 2016 prior to issuance. The purpose of the RFQ was to qualify and certify <br />CHDOs in order to place them on an Approved CHDO List. Once placed on the Approved CHDO <br />List, selected and approved CHDOs are able to utilize HOME CHDO funds based on the review, <br />approval and selection of the City at its sole discretion for qualified and eligible projects until the <br />funds are fully exhausted within a three -year deadline and /or the City has met its CHDO HOME <br />commitment deadline for each fiscal year. Based on the new HOME rules, HOME commitments <br />cannot occur until all financing for the project has been fully committed. The selected CHDOs will <br />be responsible for contributing and securing additional funds as necessary, for acquiring the land, <br />completing the improvements, and lease -up and operation of each project. <br />The RFQ was placed on the City's website, published in a general circulation newspaper, and <br />directly e- mailed to local housing developers who have previously shown an interest in affordable <br />housing development projects. <br />Three proposals were received by the deadline of October 28, 2016, and were reviewed by a <br />panel based on HUD requirements and the RFQ requirements. Proposals were received by <br />Jamboree Housing Corporation, American Family Housing, and Mercy House. All three <br />proposers qualified as CHDOs and are being recommended by staff for certification and approval <br />for utilizing the CHDO funds. <br />A draft template agreement (Exhibit 1) is being provided only as a reference. This agreement <br />would be executed by City staff with Jamboree Housing Corporation, American Family Housing or <br />Mercy House as Community Housing Development Organizations after submission of a project to <br />utilize HOME CHDO funds based on the review, approval and selection by the City at its sole <br />discretion for qualified and eligible projects until the funds are fully exhausted. This <br />recommended action will facilitate the capacity for these pre - qualified organizations to fully use <br />the CHDO funds made available by the City because the template agreement will not require <br />future consideration by City Council and thereby delay their ability to compete for single - family, <br />duplex, or four -plex developments in the private market which have shorter escrow periods. The <br />City has the following deadlines for these CHDO funds for commitment and expenditures. A <br />commitment is a signed loan agreement after all other funding sources are committed, including <br />Low Income Housing Tax Credits. <br />25C -2 <br />