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HomeMy WebLinkAboutItem 13 - Quarterly Report for Housing Division Projects and Activities Community Development Agency www.santa-ana.org/community-development Item # 13 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 7, 2024 TOPIC: Housing Division Quarterly Report AGENDA TITLE Quarterly Report for Housing Division Projects and Activities RECOMMENDED ACTION Receive and file the Quarterly Report for Housing Division Projects and Activities for the period of January 1, 2024 to March 31, 2024 GOVERNMENT CODE §84308 APPLIES: No DISCUSSION This report for the quarter ending on March 31, 2024, provides information for all of the affordable housing projects and activities for the City’s Housing Division. The report is divided into seven sections: Loan Activity, Loan Portfolio Management and Monitoring, Density Bonus Agreements, Development Impact Fee Deferral Agreements, Rent Stabilization and Just Cause Eviction Ordinance, Affordable Housing Opportunity and Creation Ordinance, and Affordable Housing Development Projects. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Housing Division Quarterly Report: January 1, 2024 through March 31, 2024 2. Available Funds for Affordable Housing Development Projects 3. Project Timelines Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, Acting City Manager May 7, 2024 Page 1 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 Housing Division Quarterly Report Each quarter, the City of Santa Ana (City) provides a detailed summary of the different projects and activities undertaken the previous quarter. This Housing Division Quarterly Report (Quarterly Report) for the quarter ending on March 31, 2024 (Q3), provides information for all of the affordable housing projects and activities for the City’s Housing Division. The report is divided into seven sections: •Loan Activity •Loan Portfolio Management & Monitoring •Density Bonus Agreements •Development Impact Fee Deferral Agreements •Rent Stabilization and Just Cause Eviction Ordinance •Affordable Housing Opportunity & Creation Ordinance •Affordable Housing Development Projects Loan Activity Applications The Housing Division offers several different programs, including down payment assistance for first-time homebuyers and rehabilitation grants for mobile homes and single-family homes. Inquiries are received from the public and applications are mailed out, received and approved for these programs on a continual basis. Table 1 shows the number of inquiries, applications sent out, received and approved by type for the quarter and for the total 2023-24 fiscal year (FY 2023-24): Table 1: Applications Sent Out, Received, & Approved Program Inquiries Applications Sent Out Applications Received Applications Approved Q3 Total FY Q3 Total FY Q3 Total FY Q3 Total FY Residential Rehabilitation Grant Program 0 21 0 21 0 15 0 10 Down Payment Assistance Program 110 213 25 122 5 9 4 11 As illustrated in Table 1, the number of applications received typically falls below the number sent out during any given period. This is primarily due to the stringent program EXHIBIT 1 May 7, 2024 Page 2 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 guidelines mandated by the federal government for eligibility, as well as a shortage of properties for sale at affordable prices. As a result, many applicants find it challenging to meet the qualifications. Residential Rehabilitation Grant Program The City’s Residential Rehabilitation Grant Program (Residential Rehabilitation Program) is designed to improve and preserve affordable housing through the use of federal Community Development Block Grant (CDBG) funds. The Residential Rehabilitation Program is administered by Habitat for Humanity of Orange County (Habitat for Humanity) on behalf of the City. The Residential Rehabilitation Program provides grants of up to $25,000 for eligible home repairs for low-income homeowners at or below 80% of the Area Median Income (AMI), as defined by the U.S. Department of Housing and Urban Development (HUD). Eligible activities include the repair, replacement, and/or installation of major systems including plumbing, heating, electrical, windows, roof, paint, and handicap accessibility. The program's funding for FY 2023-24 was reauthorized by the City Council on May 2, 2023. Unfortunately, the City currently lacks available funds to process further applications. As depicted in Table 1, there have been no inquiries or applications sent, received, or approved. As of March 31, 2024, the City has received a total of 15 applications, with 10 granted approval for rehabilitation projects, and 1 project has been completed. Down Payment Assistance Program The City evaluates applicant eligibility and oversees the underwriting process for its Down Payment Assistance Program (DPAP), ensuring compliance with program guidelines and requirements. Throughout this quarter, staff conducted various outreach and educational activities on the program, including: • Participated in NeighborWorks Orange County’s (NeighborWorks OC) “Homebuyer 101 + City DPA” monthly meeting on January 9, February 13, and March 12, 2024. These 1.5-hour sessions, held from 5:45 PM to 7:00 PM, provided essential guidance for entry-level homebuyers, covering topics such as budgeting, credit, lending, and other homeownership-related matters. • Involved in NeighborWorks OC's 8-hour, HUD-approved, “Homebuyer Education” courses on January 20, February 10, and March 9, 2024. EXHIBIT 1 May 7, 2024 Page 3 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 • Hosted three workshops at the Salgado Community Center on February 2, Delhi Center on February 25, and Lawn Bowling Center on March 27, 2024. • Presented information on the program at the Salvador Community Center on January 25, at the invitation of Mayor Amezcua. • Participated in the “Tet Festival” on Centennial Park on February 3 and the Shalom Center's “First Time Home Buying Fair” in the City of Anaheim on February 17, extending our outreach efforts to diverse community events. As a result of these efforts, four (4) down payment assistance loan applications were approved and four (4) closed escrow. Staff also received five (5) “My First Home” applications towards the end of March 2024, which will close escrow by the end of Q4, if approved. Emergency Solutions Grant Program The City’s Emergency Solutions Grant program assists individuals and families experiencing homelessness by enhancing emergency shelters, providing essential services, and administering rapid rehousing to prevent homelessness. As of July 1, 2023, the City entered into agreements with the Santa Ana Police Department and four nonprofits to administer these services. Throughout this second quarter, these organizations have been actively engaged in enrolling and delivering vital services to our residents. Table 2 provides quantitative data for Q3: Table 2: Emergency Solutions Grant Program Organization Name Estimated # in Scope of Work Clients Served (Jan-March 2024) SAPD Heart 50* 7 WISEPlace 1 3 Illumination Foundation RRH 3 3 Illumination Foundation HPP 1 0 2-1-1/United Way ** 11 Interval House 37 37 * Number reported is according to the original agreement. However, as a result of increased funding, this number is likely to be higher. ** Number is unavailable on the original agreement and has not been reported by 2-1-1. EXHIBIT 1 May 7, 2024 Page 4 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 Loan Portfolio Management & Monitoring Portfolio Management The Housing Division oversees the management of the residential loan portfolio, encompassing all loans provided by the City and the Santa Ana Housing Authority (Housing Authority), acting as the Housing Successor Agency. As of the end of this quarter, the principal balance is $149,661,396. This portfolio is comprised of 343 loans, of which 322 are deferred or residual receipt payment loans. Table 3 illustrates that the loan portfolio yielded $211,910.06 in principal and interest payments during the third quarter. The amount of revenue fluctuates each quarter. Table 3: Portfolio Revenue HOME CDBG Redevelopment CalHome Loan Payoffs $136,123.78 $0 $50,625.29 $0 Residual Receipts Payments $0 $0 $0 $0 Amortized Loan Payments $1,158.32 $2,673.84 $21,328.83 $0 Total for Q3 $137,282.10 $2,673.84 $71,954.12 $0 Compliance Monitoring As part of the requirements for these loans, staff must monitor the owner-occupancy of single-family homes that have received loans, and the building code compliance of units in rental projects with long-term affordability covenants. During this quarter, 30 owner- occupancy recertification letters were mailed and 16 were returned and processed. This number includes letters sent from previous months. Staff also conducted a total of 242 inspections during this quarter. Density Bonus Agreements Under the California Density Bonus law, developers proposing five or more residential units can seek incentives or concessions in exchange for providing on-site affordable units. To facilitate the feasibility of constructing these on-site affordable units, the law permits developers to request up to three incentives/concessions and an unlimited number of waivers. These waivers entail variances from development standards aimed at ensuring project feasibility without imposing an undue burden or compromising public health. As shown in Table 4, the City of Santa Ana has entered into the following Density Bonus Agreements as of the end of this quarter: EXHIBIT 1 May 7, 2024 Page 5 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 Table 4: Density Bonus Agreements Date of Agreement Housing Development Address Affordable Units October 2018 Metro East Senior Park 2222 E. First St. 415 rental units restricted for very low-income and low- income or senior tenants August 2018 First Point I & II Apartments 2110, 2114 and 2020 E. First St. 547 rental units restricted for very lo w-income and low- income tenants February 2019 Legacy Square 609 N. Spurgeon St. 92 rental units restricted for very low-income and low- income tenants November 2019 The Rafferty 114 & 117 E. Fifth St. 11 rental units restricted for very low-income tenants December 2021 FX Residences 801, 807, 809 and 809 ½ E. Santa Ana Blvd. 16 permanent supportive housing units June 2022 WISEPlace 1411 N. Broadway 47 permanent supportive housing units August 2022 Brandywine Acquisition Group 1814 & 1818 E. First St. 4 townhomes restricted for sale to moderate-income buyers October 2023 Unison Real Estate Group 1212 E. 4th St. 1 rental unit for very low- income November 2023 P & P Bros 322 N. Harbor Blvd. 2 rental units for very low- income Development Impact Fee Deferral Agreements Development impact fees, mandated by the Mitigation Fee Act, are one-time charges levied on new developments to offset the impacts they generate, in compliance with California law. These fees are not intended to address pre-existing deficiencies but rather to mitigate the effects of development activities. They can only finance improvements benefiting new developments, with fees allocated based on a reasonable correlation between the development, fee size, and revenue use. Unlike taxes, development impact fees do not require voter approval and are commonly utilized by cities to address the impacts of new developments on infrastructure like schools, parks, and transportation. EXHIBIT 1 May 7, 2024 Page 6 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 Before issuing building permits, the City currently mandates the payment of various development impact fees. However, affordable housing developers have the option to request deferral of specific fees under California Government Code section 66007. Upon approval by City Council, the City and property owner enter into a Development Impact Fee Deferral Agreement, deferring applicable fees and placing a lien on the property to secure payment. These deferred fees must be paid before the issuance of a certificate of occupancy or final building inspection. As shown in Table 5, the City has entered into the following outstanding Development Impact Fee Deferral Agreements awaiting payment as of the reporting date: Table 5: Development Impact Fee Deferral Agreements Date of Agreement Developer Housing Development Address Estimated Total Fees Due December 2021 Shelter Providers of Orange County 801, 807, 809 and 809 ½ E. Santa Ana Blvd. $510,000 July 2022 Washington Santa Ana Housing Partners 1126 &1146 E. Washington Ave. $652,717 Rent Stabilization and Just Cause Eviction Ordinance Effective November 18, 2022, the City Council adopted an amended Rent Stabilization and Just Cause Eviction Ordinance (Ordinance) that included a number of changes. The amended Ordinance expands the administration and enforcement of renter protections for Santa Ana residents by establishing a rental housing board and a rental registry. The amended Ordinance also includes additional petitions for tenants and landlords, voluntary mediation services, and other enhancements. To ensure accessibility, the City has provided user-friendly information about the Rent Stabilization Ordinance on its webpage, including the full text of the Ordinance and Frequently Asked Questions in English, Spanish, and Vietnamese. Both tenants and landlords are encouraged to sign up for updates. Program Updates The Ordinance ensures the enforcement of renter protections in Santa Ana by establishing a Rental Housing Board. In Q3, the Rental Housing Board welcomed a new member representing Ward 5, marking the second addition to the Rental Housing Board. Applications remain open until seven board members are approved by the City Council. EXHIBIT 1 May 7, 2024 Page 7 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 Throughout Q3, significant milestones were achieved in the Rent Stabilization Program. The Rent Stabilization Division hired two Housing Programs Analysts to bolster program operations and serve the community. Furthermore, collaboration with RSG, Inc. (RSG) continues for the long-term implementation of the Ordinance, alongside efforts to recruit additional staff and build a team to serve the community. Under the Ordinance, landlords are required to register their rental units with the City’s Rental Registry and pay rental registry fees, with the payment deadline set for February 29, 2024. Staff provided comprehensive support to landlords throughout the registration process, offering assistance both in-person and over the phone. Property owners were also given the opportunity to file property exemptions under Section 8-3147 of the Ordinance, with staff processing 654 exemptions before March 30, 2024. Additionally, staff reviewed and addressed 18 petitions received from tenants and landlords during this quarter. Staff conducted a series of virtual workshops to assist landlords with completing the registration process in the Rental Registry. In Q3, staff conducted the last workshop of the series by providing one informational workshop for property owners. In addition to the progress made towards the long-term implementation of the Rent Stabilization Program, staff has continued to serve the community in the following ways during Q3: • Reviewed and revised the rental registry portal by improving features for ease of use. • Reviewed and made continuous improvements to the layout, content, and forms on the Renter Protections webpage for easier access and understanding. • Fielded calls and emails from the public and provided information, referrals and education to renters and property owners on the City’s Ordinance. • Provided walk-in assistance to answer questions from property owners and assist with the Rental Registry at the Santa Ana WORK Center at 801 W Civic Center Dr., Suite 200, Santa Ana, CA 92701. • Welcomed two new board members to serve on the Rental Housing Board, bolstering its composition. EXHIBIT 1 May 7, 2024 Page 8 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 Residents Served Throughout this quarter, staff and RSG engaged with the public by fielding calls and offering information and education to both renters and property owners regarding the Ordinance. Table 6 presents a breakdown of the number of inquiries as follows: Table 6: Resident Inquiries Month # of Inquiries January 2024 681 February 2024 541 March 2024 350 Total 1,572 Throughout this quarter, staff also disseminated updates and information to Santa Ana residents. Staff utilized various channels including social media, newsletters, and email distribution lists to inform the public about programmatic updates, reaching a total of 38,238 Santa Ana residents. Affordable Funds and Land Assets for Affordable Housing Development Projects The City, along with the Housing Authority serving as the Housing Successor Agency, manages multiple sources of local, state, and federal funds to develop affordable housing. Exhibit 2 provides a summary of the funds available as of March 31, 2024. Affordable Housing Opportunity and Creation Ordinance On-Site Development Since 2011, the Affordable Housing Opportunity and Creation Ordinance (Ordinance) has facilitated the development of a total of 34 on-site units, consisting of 24 units available for ownership and 10 units designated for rental purposes. During this quarter, one (1) family successfully closed escrow on the purchase of an inclusionary unit at Park Place: Table 7: Units Built On-Site Ownership Rental Total 24 10 34 EXHIBIT 1 May 7, 2024 Page 9 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 In-Lieu Fees Generated All in-lieu fees, penalties, and other funds collected under the Ordinance, along with accrued interest, are deposited into the Inclusionary Housing Fund. Since its inception, the Inclusionary Housing Fund has generated $29,277,446, to be used for the development of housing affordable to low- and moderate-income households. Additionally, a reasonable portion of these funds is allocated to cover administrative or related expenses associated with the administration of the Ordinance. Table 8 shows the in-lieu fees received per fiscal year since the Ordinance’s inception: Table 8: In-Lieu Fees Received per Fiscal Year FYs 2009-2018 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 $10,563,306 $7,236,945 $0 $3,709,875 $6,933,320 $0 *$834,000 * Number reported represents the total fees received and not the current fund balance. The in-lieu fees generated have been used to create new affordable homeownership and rental housing opportunities, as well as to establish emergency shelter facilities. Table 9 and Table 10 below provides a summary of how in-lieu fees have been used by the City, separated between expenditures and commitments: Table 9: Inclusionary Housing Fund Expenditures Project or Program Inclusionary Housing Funds Expended # of Units Address Santa Ana Arts Collective $4,775,000 57 1666 N. Main St. La Placita Cinco $1,300,000 50 2239 W. 5th St. The Link Interim Emergency Shelter $7,893,866 N/A 2320 S Redhill Ave. Archways Santa Ana (formerly called Westview House) $1,514,113 84 2530 and 2534 Westminster Ave. Habitat for Humanity “Lacy & Vance” $565,271 2 826 N. Lacy St. & 830 N. Lacy St. EXHIBIT 1 May 7, 2024 Page 10 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 WISEPlace Steps to Independence Public Service Program $90,000 N/A N/A Down Payment Assistance Program $1,400,000 15 N/A TOTAL $17,538,250 208 Table 10: Inclusionary Housing Fund Commitments Project Inclusionary Housing Funds Committed # of Units Address Habitat for Humanity “Washington Street” $2,200,000 6 1921 W. Washington Ave. Down Payment Assistance Program $1,377,021 N/A N/A TOTAL $3,577,021 6 Affordable Housing Development Projects Currently, there are six (6) affordable housing projects under construction, and two (2) affordable projects in pre-development. Below is a concise overview and status update for each project. Exhibit 3 provides a development timeline for each project. The most recent Request for Proposals (RFP) for Affordable Homeownership Opportunities was issued on October 19, 2023. Initially, the review deadline was set for December 15, 2023, but the deadline was extended to May 1, 2024 following City Council approval. Projects Under Construction Estrella Springs (1108 N. Harbor) (Formerly called North Harbor Village) Developer Jamboree Housing Corporation Description Acquisition and rehabilitation of a former motel yielding 89 units of permanent supportive housing. City / Authority Funds CDBG ($1,687,047); Eight-nine (89) Project-Based Vouchers (PBVs) consisting of 34 HUD-VASH PBVs and 55 regular PBVs. Update During this quarter, construction activities included insulation, drywall, paint cabinets completion and appliances and fixtures installation in Building C. Building A drywall and insulation completed with cabinets, appliances, and fixtures started. Landscape installation started. Electrical trim is underway in units. Flatwork is nearing EXHIBIT 1 May 7, 2024 Page 11 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 completion. Stucco work and mural are completed. All plans are approved by City. Completion is anticipated for April 2024 for Building C followed by Building A and then Building B with Temporary Certificates of Occupancy (TCO) requested in phases in April/May and COO by June/July 2024. Archways Santa Ana (2530 Westminster Ave.) (Formerly called Westview House) Developer Community Development Partners with Mercy House as the service provider Description New construction of an affordable multifamily apartment development consisting of 84 units of both large family and PSH units and one (1) manager’s unit. Twenty-six of the units will be funded by Mainstream Program PBVs and Mental Health Services Act (MHSA) funds through the No Place Like Home (NPLH) program. City / Authority Funds Inclusionary Housing ($1,514,113), HOME Investment Partnerships Program ($2,003,705), Rental Rehabilitation Program ($386,523), and twenty-six (26) Mainstream Program PBVs Update Southern California Edison’s (SCE) initial power design for the building contained errors, requiring a redesign. This process lasted eight (8) weeks and delayed SCE's ability to energize the building, consequently pushing the expected Temporary Certificate of Occupancy (TCO) to July. The development team is actively pressuring SCE to expedite the power provision process, as construction of both the buildings and site will be completed by the end of April, pending power availability. Although there is optimism regarding an earlier TCO, this will only be confirmed once SCE initiates their work in the coming weeks. Despite the delays, lease-up and marketing activities were initially halted but have since resumed. Crossroads at Washington (1126, 1136 and 1146 E. Washington Ave.) Developer The Related Companies of California with A Community of Friends as co-developer and lead service provider Description New construction of a 100% affordable multifamily apartment complex consisting of 85 units of rental housing and one (1) manager’s unit. All units will be affordable to households earning less than 30% AMI of which 43 units will be set-aside for permanent supportive housing. City / Authority Funds HOME Investment Partnerships Program (HOME) ($3,007,489), Neighborhood Stabilization Program ($1,637,420), sixty-five (65) year ground lease agreement for 1126, 1136 and 1146 E. Washington Ave. (Appraised Value as of September 22, 2019: $4,108,136) and fifteen (15) PBVs Update The interior work for the majority of units in both buildings has been finalized. However, outstanding tasks remain, including exterior finishes, site work, energizing, off-sites, and inspections. Delays have occurred due to issues with SCE. The project is anticipated to receive TCOs by mid-June and Certificates of Occupancy (COO) by the end of June. Property management is actively reaching EXHIBIT 1 May 7, 2024 Page 12 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 out to applicants to arrange interviews and facilitate the tenant selection process. Additionally, the Corporation for Supportive Housing and Orange County Housing Authority staff are continuing with the referral and matching process for the permanent supportive housing units. Habitat for Humanity (826 N. Lacy & 830 N. Lacy St.) Developer Habitat for Humanity Description New construction of two (2) single-family detached homes for homeownership serving households up to 120% AMI. City / Authority Funds Inclusionary Housing ($565,271) and a 99-year ground lease agreement for 416 Vance St. and 826 N. Lacy St. (Appraised Value as of Oct 25, 2018: $578,000) Update All inspections for the one-story Craftsman home (formerly located at 416 Vance St., now 830 Lacy St.) have been successfully completed. The family purchased the home and moved in on March 29, 2024. The installation of the street light post for this project is scheduled for late July 2024. Delays have arisen due to SCE's demand for concrete light posts impacting the supply chain. Habitat for Humanity maintained volunteer engagement throughout Q2, with a total of 1,304 unique volunteers contributing 24,000 hours since the project's inception. WISEPlace Permanent Supportive Housing (1411 N. Broadway) Developer Jamboree Housing Corporation with WISEPlace as the co-developer and lead service provider Description Adaptive reuse and new construction of the WISEPlace building to provide 47 permanent supportive housing units, and one (1) manager’s unit. City / Authority Funds HOME-American Rescue Plan ($5,256,327); Twenty-five (25) PBVs Update The developer secured construction loan financing and commenced construction in March 2023. The foundation slab was poured on October 13, 2023. Currently, Walton is engaged in various tasks including window installation, historical preservation of windows, roof tile installation, sidewalk and curb paving on Sycamore St., MEP rough installation completion, and initial lath and plaster work. The project is 97% procured, with submittals in progress. Anticipated construction completion is slated for November 2024. EXHIBIT 1 May 7, 2024 Page 13 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 FX Residences (801, 807, 809, and 809 ½ East Santa Ana Boulevard) Developer HomeAid Orange County, Inc. with Mercy House as the service provider Description New construction of an affordable multifamily apartment complex consisting of 16 units of permanent supportive housing, and one (1) manager’s unit. Authority Funds Housing Successor Agency ($1,656,947), three (3) PBVs, 99-year ground lease agreement for 801 E. Santa Ana Blvd. (Appraised Value as of Oct 25, 2018: $788,000) Update Collaborating with OCFA and the City’s Public Work Agency, the relocation of the underground water pump was completed by the first week of January 2024. Window installation took place in December. By the end of December, the developer waterproofed the site to mitigate potential rain delays during the rainy season. Plumbing and electrical work are currently underway, with rough inspections in progress. Solar approvals and installations are slated to commence in April. Upon completion of all MEP inspections, drywall installation will commence. Stucco work is expected to begin in May. Project completion is estimated for August 2024. Projects in Pre-Development Habitat for Humanity (1921 W. Washington Ave.) Developer Habitat for Humanity Description New construction of three (3) duplexes / six (6) homes for homeownership serving households up to 80% AMI. City Funds Inclusionary Housing Funds ($2,200,000) Update A demolition permit was obtained, and demolition was successfully completed in January 2024. Prior to demolition, volunteers contributed to a pre-demolition cleanup effort. Habitat secured construction financing through NeighborWorks of Orange County. Habitat is currently conducting New Home Buyer Orientations as part of its initiative to engage with families and select six eligible families for the six townhomes slated for construction. Additionally, Habitat has developed and is implementing a strategy to ensure its outreach efforts attract qualified homebuyers in accordance with the City’s local preference policy. Throughout Q3, Habitat has maintained volunteer engagement. Since the project's inception, a total of 26 unique volunteers have contributed a combined total of 208 hours. EXHIBIT 1 May 7, 2024 Page 14 City of Santa Ana – Quarterly Report Third Quarter of FY 2023-24 JANUARY – MARCH 2024 Richard Lehn Intergenerational Housing (918 N. Bewley St.) (Formerly called Bewley St. Intergenerational Housing Project) Developer Illumination Foundation Description Rehabilitation of two (2) two-story residential buildings into 11 rental units for homeless transitional-age youth and senior citizens. City Funds Homeless Housing, Assistance and Prevention (HHAP) ($2,021,319); Eight (8) PBVs Update The developer received comments from the Planning and Building Agency and is working to respond. The developer is also working with the City on PBV approval and the NEPA environmental review. EXHIBIT 1 Available Funds for Affordable Housing Development Projects As of March 31, 2024 Housing Successor Agency (Housing Authority) $3,987,769 Cash on Hand ($165,695)Frances Xavier Residence Project Pre-Commitment Loan 1 ($250,000)Administrative Costs Allowance 2 ($3,251,805)Administrative Costs Allowance for Future Fiscal Years 3 ($307,386)Crossroads at Washington Option Agreement Amendment 4 ($12,883)Crossroads at Washington Environmental Assessment Oversight 5 $0 Available Funds Inclusionary Housing Funds $8,661,947 Cash on Hand ($1,377,021)Down Payment Assistance Program 6 ($56,527)Lacy Street Project Grant 7 ($151,411)Westview House Loan 8 ($17,154)Westview House Project Cost ($2,200,000)1921 W. Washington Project Pre-Commitment 13 ($1,635,411)Administrative Costs Allowance (CDA/PBA) $3,224,423 Available Funds HOME Program $9,054,043 Funds to Drawdown ($300,749)Crossroads at Washington Loan 10 ($200,371)Westview House Loan 8 $8,552,923 Available Funds to Drawdown HOME-American Rescue Plan Program (PSH Projects Only) $1,464,630 Funds to Drawdown ($1,464,630)WISEPlace PSH Loan 12 $0 Available Funds to Drawdown CDBG Program (Acquisition/Rehabilitation Projects Only) $4,690 Funds to Drawdown $4,690 Available Funds to Drawdown Rental Rehabilitation Grant Program $49,190 Cash on Hand 11 ($38,652)Westview House Loan 8 $10,538 Available Funds CalHome Progam $762,979 Cash on Hand 9 ($762,979)Down Payment Assistance Program 6 $0 Available Funds $11,792,574 Total Available Funds 1 Approved by Housing Authority on January 15, 2019. Additional $587,000 approved by Housing Authority on December 7, 2021. 2 The Housing Successor Agency relies on available cash to fund the monitoring and compliance functions related to the former Redevelopment Agency's housing loans. 3 Funds to be set aside for compliance and monitoring requirements due to uncertainty of future repayment revenues. 4 Approved by Housing Authority on December 15, 2020. Additional $150,000 maximum approved by Housing Authority on August 17, 2021 (2nd Amendment to Option Agreement). 5 Approved by Housing Authority on July 20, 2021. 6 $400,000 originally approved by City Council on March 6, 2018. Nine loans paid through end of September 2021. Additional $1,200,000 approved by Council on November 2, 2021. 6 Additional $1,527,020.60 approved by Council on October 17, 2023. 7 Approved by City Council/Housing Authority on March 5, 2019. Additional $333,777 approved by City Council on April 6, 2021. 8 Approved by City Council on May 17, 2022. 9 Approved by City Council on October 17, 2023. 10 Approved by City Council on June 21, 2022. 11 Old program income available after close out of program with HUD. 12 Approved by City Council on March 7, 2023. 13 Approved by City Council on November 15, 2022. Exhibit 2 EXHIBIT 3 May 7, 2024 Page 1 Current Affordable Housing Development Project Timelines Projects under Construction Estrella Springs – 1108 N. Harbor (Formerly called North Harbor Village) Mar 19 Start of design development Mar 19 Applied to FHLBSF for AHP Financing ($890,000) Mar 19 Award of VASH Vouchers & City Loan by City Council (89 Vouchers and $1,687,047) Mar 19 Start environmental approval process with City of Santa Ana (CEQA/NEPA) Mar 19 Applied for Home Depot Grant ($500,000) Jun 19 CEQA / NEPA Approval – City of Santa Ana Jun 19 AHP Award Date ($890,000) Aug 20 Applied to HCD for MHP 1st Round Funding ($13,316,412) Dec 19 Notified project did not receive 1st Round MHP funding Feb 20 Applied to HCD for VHHP Funding ($10,000,000) Mar 20 Applied to HCD for MHP 2nd round funding Mar 20 Applied to OCHFT Financing ($2,292,920) May 20 Notified project did not receive 2st Round MHP funding May 20 Received OCHFT funding award ($2,292,920) Jun 20 Received VHHP funding award ($10,000,000) Jun 20 Submitted Plans for Ministerial Design Approval Jun 20 Applied for CDLAC tax-exempt bond allocation ($24,000,000) Jul 20 Applied for TCAC 4% competitive state and federal tax credits ($9,896,911) Sept 20 CDLAC Allocation Nov 20 Ministerial Design Approval (upon completion of community meeting on 11/4/2020) Oct 20 TCAC Allocation Oct 20 Start construction documents for rehab Nov 20 Submit first plan check Dec 20 Awarded Home Depot Grant Jan 21 Receipt of first plan check comments Jan 21 Submit second plan check Feb 21 Receipt of second plan check comments Feb 21 Submit third plan check Mar 21 Received permit ready EXHIBIT 3 May 7, 2024 Page 2 Apr 21 Construction loan closing Apr 21 Pull Permits and start construction May 21 Site Demolition Dec 21 Work on mock up units begins Jun 22 Structural retrofitting and repairs July 22 Roofing and Framing Aug 22 Stock drywall & Inspections Aug 22 Gutter, Awning and Painting & installation of stairs Oct 22 OCHFT Loan finalized Apr 23 Interior refurbishments & finishes Sept 23 Plan resubmittal/Plan Coordination Oct 23 Roof/Drywall Nov 23 Complete Flooring Mar 24 Stucco April 24 Interiors, fixtures, and appliances April 24 Lease up Mar 24 Scaffold finishes Apr 24 Final Cleaning Apr 24 Grading/Paving for parking lot and site work Apr/May 24 Elevator Apr- Jun 24 Construction Completion (by phase for TCO) Jul 24 Full Occupancy Archways Santa Ana – 2530 Westminster Ave (Formerly called Westview House) Oct 19 City of Santa Ana RFP submittal May 20 OC 2020 Supportive Housing NOFA Submittal Dec 20 OC 2020 Supportive Housing NOFA award Jan 21 City of Santa Ana PBV Award Jan 21 Construction/permanent debt commitments Jan 21 Receive Entitlements Jan 21 No Place Like Home application Mar 21 OCHFT application May 21 OCHFT Award Jun 21 No Place Like Home commitment Sep 21 CDLAC/TCAC 4% application Dec 21 CDLAC/TCAC 4% award EXHIBIT 3 May 7, 2024 Page 3 May 22 Close on construction financing Jun 22 Construction permits issued Jun 22 Construction start Nov 22 Groundbreaking Ceremony Dec 22 Grading activities completed and concrete poured Apr 23 Floor sheathing and pre-rough complete in buildings A and B Jun 23 Rough framing and roofing are complete Jun 23 Window installation in both buildings Jul 23 Working on utility rough-ins Jul 23 Roof Truss in Building B Jul 23 Drywall Production Jan 24 Initial Lease up Calls Feb 24 SCE Redesign needed Apr 24 Lease Up Continued Apr 24 Buildings and Site Complete (except Power) Jun 24 Building/Equipment testing with power July 24 TCO received Nov 24 All units leased Apr 25 Perm debt conversion Crossroads at Washington – 1126, 1136 and 1146 E. Washington Avenue Aug 19 Submitted PSH application to County Oct 19 Submitted for planning entitlements Oct 19 Community meeting Nov 19 Approval of Joint Powers Agreement, Option to Ground Lease, Voucher Resolution and Cooperation Agreement, and Regional Housing Needs Assessment (RHNA) Agreement and Density Bonus Dec 19 NEPA EA City Approval – City of Santa Ana submits NEPA EA to HUD Feb 20 PSH Funds and Voucher approval from County Board of Supervisors Feb 20 Planning entitlements approved Mar 20 TCAC 9% Application – 1st Round 2020 Jul 20 TCAC FCAA/9% Application – 2nd Round 2020 Oct 20 TCAC FCAA/9% Award – 2nd Round 2020 Mar 21 Submitted OCHFT PSH NOFA Application May 21 OCHFT PSH NOFA Award EXHIBIT 3 May 7, 2024 Page 4 Dec 21 Submit DTSC Equitable Community Revitalization Grant (ECRG) Pre- Qualifying Application Feb 22 Submit for 1st plan check Mar 22 DTSC approves draft Removal Action Workplan; draft Removal Implementation Plan under review Apr 22 DTSC ECRG Full Application Jul 22 DTSC ECRG Award Jul 22 City issues permit ready letter Jul 22 Construction finance closing/Start construction Nov 22 Building foundation complete Dec 22 Framing began Aug 23 Interior work, installation of cabinets & doors for Building 1136 Sept 23 Installing the insulation and hanging drywall on Building 1146 Nov 23 Lease up Wait list open Jan 24 Lease up Interviews May 17 Scheduled permanent power on site June 14 Temporary Certificate of Occupancy June 30 Certificate of Occupancy Sept 24 Full occupancy Habitat for Humanity – 826 N. Lacy Street & 830 Lacy Street May 20 DDA signed June 20 Prepare grading plans Oct 20 Prepare architectural plans Oct 20 Submit Neighborhood Review Application Feb 21 Final Approval from Historic French Park Committee Apr 21 Submit Site Review Application Dec 21 Submit grading/ Non-Priority WQMP Jan 22 Submit architectural plans May 22 Planning Commission Approval Jul 22 Grading permit issued Aug 22 Groundbreaking Aug 22 Building Permits issued Aug 22 Commence Grading Sep 22 Begin Foundation Construction Oct 22 Framing Ceremony/Framing Construction Begins Jan 23 Roof diaphragm sheathing and exterior sheathing completed EXHIBIT 3 May 7, 2024 Page 5 Jan 23 Roof sheathing/frame and shear walls Inspection Jan 23 Buildings dried Jan 23 House wrap and waterproofing Jan 23 Drywall stack complete Jan 23 Exterior Door installation complete Jan 23 Homebuyer outreach and application open Feb 23 Window installation complete Feb 23 Rough in plumbing Feb 23 Rough in electrical Feb 23 Rough in mechanical Feb 23 Rough in fire sprinkler- OCFA Mar 23 MEP Inspection Mar 23 OCFA Inspection Mar 23 Structural/framing complete Mar 23 Structural/framing Inspection Mar 23 Seal exterior penetrations Mar 23 Wood siding started Mar 23 Start exterior wood trim carpentry-ongoing Mar 23 Insulation completion and inspection Mar 23 Drywall hanging Mar 23 Preliminary homebuyer application review May 23 Habitat for Humanity Leaders Build on-site May 23 Re-launchHomebuyer outreach May 23 Interior paint completed Jun 23 Porch-flatwork, interior door installation and cabinetry installation Jul 23 Painting completion Jul 23 Homebuyer application review and selection Jul 23 Gas pressure test inspection Aug 23 Roofs finished Aug 23 Water meter release (Backflow device inspection) Aug 23 Electrical meter release Sep 23 Families income qualified as moderate-income families and meet the City program ratios Sep 23 Street improvements (curbs, asphalt, and ADA ramp) Sep 23 Solar inspection Sep 23 Orange County Fire Authority Final inspection Sep 23 SCE trench inspection EXHIBIT 3 May 7, 2024 Page 6 Sep 23 Flatwork completed Sep 23 Family Dedication Day Ceremony Oct 23 Construction Completion Nov 23 Police Final Inspection and sign off Nov 23 Planning final inspection and sign off (826 Lacy) Nov 23 Public Works final inspection and sign off (826 Lacy) Nov 23 Building final inspection and sign off (826 Lacy) Nov 23 Compliance final inspection and sign off (826 Lacy) Dec 23 City approves homebuyer qualifications and closes escrow (826 Lacy) Dec 23 Homeowners move in (826 Lacy) Jan 24 Planning final inspection and sign off (830 Lacy) Jan 24 Building final inspection and sign off (830 Lacy) Jan 24 Compliance final inspection and sign off (830 Lacy) Mar 24 City approves homebuyer qualifications and closes escrow (830 Lacy) Mar 24 Homeowners moved in Jul 24 Street Light Pole installed WISEPlace Permanent Supportive Housing – 1411 N. Broadway May 19 Start of conceptual design development Sept 19 Applied to City of Santa Ana for Financing Feb 20 Notified not awarded City of Santa Ana Financing Mar 20 Applied to Orange County Housing Finance Trust (OCHFT) Financing Apr 20 Met with City of Santa Ana Planning Staff on entitlements May 20 Notified not awarded OCHFT Financing Jun 21 Met with City of Santa Ana staff to review revised conceptual plans Jan 22 Submitted Historic Resource Commission and entitlements application to City of Santa Ana Feb 22 Applied to City of Santa Ana for HOME-ARP Funding and PBVs Mar 22 City of Santa Ana Historic Resource Commission Approval Mar 22 Applied to OCHFT Financing Mar 22 Applied to AHP Financing Apr 22 Awarded City of Santa Ana for HOME-ARP Funding and PBVs May 22 Awarded OCHFT Funding May 22 City of Santa Ana Planning Commission Approval of entitlements May 22 City of Santa Ana Community Development Commission Approval of Funding and Density Bonus Agreement (DBA) Jun 22 Notified not awarded AHP Funding EXHIBIT 3 May 7, 2024 Page 7 Jun 22 Applied to County of Orange for ARPA Funding Jun 22 City of Santa Ana City Council Approval of DBA Jun 22 Awarded County of Orange ARPA Funding Jun 22 Applied for TCAC 9% competitive federal tax credits Sept 22 TCAC Allocation Sept 22 Start Construction Documents, Plan Check and Permitting Jan 23 Closing Kick Off Mar 23 Receive grading permit and building permit ready letter Mar 23 Construction loan closing Mar 23 Pull Permits and start construction Apr 23 Site Demolition Jun 23 Groundbreaking Ceremony Jul 23 Storm drain system complete Aug 23 Concrete footings & Columns Complete Sept 23 Structural Framing on Existing Building Complete Oct 23 Concrete pour ground floor slab on grad complete Nov 23 Podium Complete Dec 23 Framing 2nd Floor Complete Jan 24 Framing Third to Fourth Floors Complete Feb 24 Roof Tiebacks- Installation complete and structural observation done Mar 24 Fire Sprinkler Permit Received HVAC inspection done Apr 24 Roofing Framing Complete Jun 24 Drywall Complete, Switchgear received July 24 Dry In Complete, Lath & Plaster Complete Aug 24 Interior Finishes Complete Permanent Power Sept 24 Exterior Finishes Complete Nov 24 Construction Complete May 25 100% Full occupancy (6 months) FX Residences – 801, 807, 809, and 809 ½ E. Santa Ana Boulevard Jan 19 Council approval for land lease and project funding Jan 19 Submittal of application for NPLH funding Feb 19 Confirm with City staff that project site can yield additional units under existing zoning Mar 19 Revise conceptual drawings for additional five (5) units (17 total units, up from the original 12 units) Mar 19 SNHP funding application submitted to County EXHIBIT 3 May 7, 2024 Page 8 Apr 19 City staff to review revised conceptual design Apr 19 Begin development agreement May19 Board of Supervisors meeting for SNHP funding Jul 19 Execute Development Agreement Jul 19 Formal awards letters for NPLH funding to be issued Aug19 Initial planning submittal Sept19 Sunshine Ordinance Meeting Mar 21 Planning Commission Meeting (ministerial approval of density bonus) Oct 21 Submit for first plan check Dec 21 City Council Meeting (ministerial approval of density bonus) Dec 21 City Council approval of additional $587,000 for construction costs Feb 22 Building permit submittal Mar 22 Received 1st set of comments back from Plan Check, consultants working on responses. Jul 22 FX Funding Closing Meetings begin, 2nd Building Plan Submittal Aug 22 Building and grading comments being addressed Oct 22 Construction Funding Closing process is underway Dec 22 Dry closed funding for CalHFA/SNHP and City of Santa Ana April 23 Met with city planner to clarify all comments on 3rd submittal April 23 Submit 4th building review & OCFA building review May 23 Pull building and PGP permits June 23 Groundbreaking Ceremony July 23 Start of Construction Aug 23 Grading, trenching and forming underway Sept 23 Foundation poured Oct 23 Block Wall along North property line completed Oct 23 First floor framing begun Nov 23 1st and 2nd floor framing complete Dec 23 Roofing Jan 24 Plumbing Jan 24 Fire Riser Moved Jan 24 Connection to street complete Feb 24 Street Lights install Feb 24 Electrical & Mechanicals Apr 24 MEP Inspection Apr 24 Solar Rough May 24 Drywall Texture EXHIBIT 3 May 7, 2024 Page 9 May 24 Solar Panels May 24 Scaffolding down May 24 Water main and storm drain work to begin May 24 Begin Stucco May 24 Landscape start Jun 24 Cabinetry Install Jun 24 Electric Finish and Grade Finish Jun 24 Solar finish, trim finish, and control boxes Jun 24 Landscape finish Jul 24 Flooring finish Jul 24 Electric meter and appliance install Jul 24 Final Paint Start Jul 24 Final Paint Finish Aug 24 Certificate of Occupancy Projects in Pre-Development Habitat for Humanity – 1921 Washington Avenue Dec 21 Habitat for Humanity OC closed escrow on property Aug 22 Subsidy approval from Community Development Commission Nov 22 Subsidy approval from City Council Dec 22 Submit demon permit application Jan 23 Demo Permit Issued Feb 23 Submit site plan review application Apr 23 First Sunshine Ordinance meeting. Geological Soils Testing May 23 Second Sunshine Ordinance meeting Jun 23 Second Sunshine Ordinance meeting report submitted Jun 23 Responses to comments received submitted July 23 Comments from second submittal received. Meeting with Planning to discuss comments and density bonus waiver requests Aug 23 Meetings with Public Works to discuss comments and density bonus waiver requests Sep 23 Meetings with Public Works to discuss comments and density bonus waiver requests Oct 23 Submit responses to comments from July 2023 Nov 23 Demolition Permit Nov 23 Site Clean up Jan 24 Demolition of existing structures EXHIBIT 3 May 7, 2024 Page 10 Feb 24 Secured construction lending Mar 24 Secured three lending partners for homebuyer loans April 24 Planning Department approval April 24 Submit grading / non-priority WQMP April 24 Submit architectural plans at risk May 24 Planning Commission approval Jul 24 Building permit issued Jul 24 Groundbreaking ceremony Jul 24 Begin foundation construction Sep 24 Framing day ceremony Mar 25 Complete rough inspections Mar 25 Construction Completion Richard Lehn Intergenerational Housing – 918 N Bewley St. (Formerly called Bewley St. Intergenerational Housing Project) Nov 22 City of Santa Ana RFP submittal Nov 22 Design development Apr 23 Submitted plans to Planning Division Jun 23 Community Development Commission approval of Pre-Commitment Letter Jul 23 City Council approval of Pre-Commitment Letter Aug 23 CalOptima HHIP funding application ($3,000,000) Sep 23 Start environmental approval process (NEPA) Sep 23 Sunshine Ordinance Community Meeting 1 Oct 23 Sunshine Ordinance Community Meeting 2 Oct 23 Planning Division approval to proceed with plan check Oct 23 Received CalOptima HHIP funding ($3,000,000) Jun 24 NEPA EA approval Jun 24 HUD voucher approval Jun 24 Building Division approval Jul 24 City Council final approval Jul 24 Pull construction permit Jul 24 Start construction Jul 24 Demolition Sep 24 Rough framing complete Nov 24 MEP complete Jan 25 Construction complete Jan 25 Commence Lease Up EXHIBIT 3 May 7, 2024 Page 11 Mar 25 All units leased