HomeMy WebLinkAbout19G - AFFORDABLE HOUSING FUNDSAvailable Funds for Affordable Housing Development Projects
February 21, 2017
Page 2
• Housing Successor Agency (Low & Moderate Income Housing Asset Fund): These
funds are carried over and collected under the former Redevelopment Agency which was
dissolved in 2012. Funding may be deposited into this fund from the sale of Housing
Successor Agency land, principal and interest repayments from the current loan portfolio,
and available funds deposited as Recognized Obligation Payment Schedule (ROPS)
payments for enforceable obligations as approved by the Department of Finance.
Available funds for affordable housing development projects: $7.2M
• Inclusionary Housing: These funds are paid by developers when they opt -out of
developing affordable housing on-site on their projects and instead pay an in -lieu fee
required by the City's Housing Opportunity Ordinance. Available funds for affordable
housing development projects: $3.7M
• HOME Investment Partnerships Program (HOME): These funds are Federal funds that
the City receives from the U.S. Department of Housing and Urban Development (HUD) on
an annual basis as a Federal entitlement jurisdiction. Non-profit Community Housing
Development Organizations (CHDO's) may utilize 15% of the annual HOME Program
allocation. Allocation of funds must go through a competitive Request for Proposals (RFP)
process. Available funds for affordable housing development projects: $338,351
• Community Development Block Grant (CDBG): These are Federal funds that the City
receives from HUD on an annual basis as a Federal entitlement jurisdiction. Funding may
only be used for acquisition and rehabilitation projects (no new construction). Allocation of
funds must go through a competitive RFP process. Available funds for affordable
housing development projects: $640,000
The available funds for affordable housing development projects may be awarded to developers
by the City and/or Housing Authority via City Council action to address the need for more
affordable housing units.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability,
Engagement & Sustainability, Objective #3 (Facilitate diverse housing opportunities and support
efforts to preserve and improve the livability of Santa Ana neighborhoods).
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Available Funds for Affordable Housing Development Projects
February 21, 2017
Page 3
FISCAL IMPACT
There is no fiscal impact associated with this action.
- C.Robert C. Cortez
Deputy City Manager "
City Manager's Office
Exhibits: 1. List of Multi -Family Affordable Housing
2. Restrictions and Uses of Funds
3. Available Funds for Affordable Housing
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Development Projects Since 2009
Development Projects
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Exhibit 1
List of Multi -Family Affordable Housing Development Projects Since 2009
City of Santa Ana
Updated February 15, 2017
#
'
Project Name.
Loan Date
Total
Affordable
Units l6i
City/Agency
loan
Value of
Agency
Provided
Land'
Housing
Authority
Project -Based
Vouchers Value
Total City/Agency
Loan and Project -
o
Based Vouchers
City/Agency
Funds Per
Affordable
Unit
1
1410 Durant
2009
14
$
1,800,000
$
1,800,000
$ 128,571
2
702 N Lacy
2009
26
$
2,886,860
$
2,886,860
$ 111,033
3
702 S. Raitt
2009
8
$
1,495,662
$
1,495,662
$ 186,958
4
Terraces at Santiago
2010/2011
35
$
7,043,497
$
7,043,497
$ 201,243
5
435-437 S. Birch
2011
5
$
803,667
$ 350,000
$
1,153,667
$ 230,733
6
217-219 S. Birch
2011
5
$
803,667
$ 355,000
$
1,158,667
$ 231,733
7
2034-2038 Bush
2011
5
$
803,667
$ 350,000
$
1,153,667
$ 230,733
8
326 Garnsey Street
2011
25
_$
4,291,188
$
4,291,188
$ 171,648
9
Station District - R1
2011
74
$
10,800,000
$
10,800,000
$ 145,946
10
IStation District- R2
2012
39
$
4,770,000
$ 4,000,000
$
8,770,000
$ 224,872
11
Vista Del Rio
2012
40
$
2,069,000
$ 2,900,000
$
303,000
$
5,272,000
$ 131,800
12
Depot at Santiago
2013
69
$
3,000,000
$
710,460
$
3,710,460
$ 53,775
13
940 Minnie
2014
8
$
1,422,000
$
1,422,000
$ 177,750
14
815 N. Harbor
2014/2015
69
$
3,260,000
$
719,050
$
3,979,050
$ 57,667
15
Santa Ana Arts Collective
2016
57
$
4,635,000
$
4,635,000
$ 81,316
16
The Orchard
2016
71
$
1,199,869
$
7,895,194
$
9,095,063
$ 128,099
Total 550
(1) Excludes Manager's Unit
(2) Based on Value of Tax Exempt Permanent Loan for Vouchers
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EXHIBIT 2
RESTRICTIONS AND USES OF AFFORDABLE
HOUSING FUNDS
Housina Successor Aaencv (Housing Authorit
The Housing Authority assumed the role of the Housing Successor Agency to the
former Redevelopment Agency when the Redevelopment Agency was dissolved in
February 2012, which includes the funds and properties in the Low and Moderate
Income Housing Asset Fund. Funds must be used to develop, acquire, rehabilitate,
acquire long-term affordability covenants for, or preserve lower income housing (at or
below 80% of the area median income (AMI)).
At least 30% of the funds must be spent on extremely low income housing (at or below
30% AMI) and no more than 20% of the funds may be spent on housing for households
earning between 60-80% AMI. These requirements must be met over a 5 -year period. If
an agency fails to meet these requirements in any 5 -year period, at least 50% of the
funds in each fiscal year must be spent for extremely low income households until the
extremely low income target is met. If the agency exceeds the expenditure limits for
households earning between 60-80% AMI, the agency is prohibited from spending
funds on housing in that income range until the limit is met.
Units developed with these funds have the following affordability requirements: 55 -years
for rental units and 45 -years for for-sale/ownership units. Rent, affordable sales price
and income limits are determined by methodologies set by the State of California.
If the Agency has fulfilled all replacement, affordable housing production, and
monitoring, database compilation and web site publication requirements, it may spend
up to $250,000 per fiscal year on homeless prevention and rapid rehousing services.
Inclusionary Housing Funds
The City's Inclusionary Housing Ordinance prescribes the use of the monies deposited
into the Inclusionary Housing Fund, which are to "be used to increase and improve the
supply of housing affordable to Moderate, Low, Very Low and Extremely Low Income
Households in the City'. Funds shall be used in accordance with the City's Housing
Element, Consolidated Plan, or subsequent plan adopted by the City Council to
construct, rehabilitate, or subsidize affordable housing or assist other government
entities, private organizations, or individuals to do so.
The Inclusionary Housing Fund may be used for the benefit of both rental and owner -
occupied housing. Eligible uses include, but are not limited to, assistance to housing
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development corporations, equity participation loans, grants, pre -home ownership co -
investment, pre -development loan funds, participation leases, or other public-private
partnership arrangements.
HOME Investment Partnerships Program (HOME) Funds
HOME eligible program activities include: (1) Homeowner Rehabilitation; (2) Homebuyer
Activities; (3) Rental Housing; and (4) Tenant -Based Rental Assistance (TBRA). For
affordable housing development, the City of Santa Ana provides HOME funds as a loan
to affordable housing developers, with a 3% interest rate for a 55 -year term repaid by
residual receipt payments.
HOME funds can be used for the following costs: new construction projects;
rehabilitation; reconstruction; conversion; site improvements; acquisition of property;
acquisition of vacant land; demolition; relocation costs; refinancing; capitalization of
project reserves; and project -related soft costs.
Prohibited activities and costs under the HOME program include: project reserve
accounts; TBRA for certain purposes; match for other federal programs; public housing;
acquisition of city -owned property; payment of delinquent taxes, fees, or charges; and
project -based rental assistance.
Requirements for HOME -funded projects include, but are not limited, to the following
requirements. HOME funds must be used for households at or below 80% AMI with
HOME rents determined annually by U.S. Department of Housing and Urban
Development (HUD). HOME -funded properties must meet certain minimum property
standards, which are outlined in the City's Property Standards. The HOME affordability
period is 5 to 20 years depending on the HOME assistance; however, the City's
affordability period is 55 -years for all rental projects. The City monitors these units
during the affordability period for compliance through on-site physical inspections,
review of tenant files and programmatic requirements, and annual reports. The City is
required to meet prescribed timeliness requirements to commit within 2 -years and
expend within 5 -years of receiving the HOME funds.
Community Development Block Grant (CDBG) Funds
CDBG eligible program activities related to housing include: (1) homeowner assistance;
(2) rental rehabilitation activities; (3) homeowner rehabilitation activities; (4) housing
services in connection with the HOME Program; and (5) acquisition of existing housing.
Prohibited activities and costs under the CDBG program, as related to affordable
housing development, includes: operating and maintenance expenses, and new
housing construction projects.
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For multi -family rental housing, at least 51 % of the units must be occupied by low- or
moderate -income households. Qualified households must have incomes at or below
80% of the AMI. All CDBG-assisted rental units must bring the properties up to local
codes and standards. The City monitors rental units through on-site physical
inspections, review of tenant files and programmatic requirements, and annual reports.
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Exhibit 3
Available Funds for Affordable Housing Development Projects
As of February 14, 2017
Housing Successor Agency (Housing Authority)
$10,378,674 Cash on Hand
$4,218,690 Deposit of ROPS 2nd Installment for FY 16/17
($6,195,000) Proposed AMCAL Housing Successor Agency Loan Agreement (2/21 City Council)
($789,853) Reconciling amount (ROPS Projects)
($338,564) Habitat for Humanity Disposition and Development Agreement
TBD Administrative Costs Allowance 2
$7,273,946 Available Funds
Inclusionary Housing Funds
$5,877,690 Cash on Hand
$2,600,000 Anticipated HOO funds from Heritage Village OC LLC in 2017
($2,600,000) Proposed AMCAL Conditional Inclusionary Housing Funds Loan Agreement 4
($2,061,503) Santa Ana Arts Collective Pre -Commitment Loan & Associated Project Costs
($36,896) Administrative Costs Allowance (CDA/PBA)
$3,779,291 Available Funds
HOME Program
$2,931,129 Funds to Drawdown
($2,260,000) Santa Ana Arts Collective Pre -Commitment Loan
($332,778) Community Housing Development Organizations (CHDO) Set -Aside
$338,351 Available Funds to Drawdown
CDBG Program (Acquisition/Rehabilitation Projects Only)
$1,140,000 Funds to Drawdown
($500,000) Santa Ana Arts Collective Pre -Commitment Loan
$640,000 Available Funds to Drawdown
' Educational Revenue Augmentation Fund (ERAF) / Supplemental Educational Revenue Augmentation Fund (SERAF) repayment approved by Department of Finance via
the Recognized Obligation Payment Schedule (HOPS). Future repayment schedule of remaining loan balance to be determined pursuant to Dissolution Laws.
° The Housing Successor Agency relies on available cash to fund the monitoring and compliance functions related to the former Redevelopment Agency's housing loans.
s Housing Opportunity Ordinance (HOO)
° In -lieu fees anticipated to be received from the Heritage Village OC in FY 2016/17.
Pre -loan amount is $1,876,000.
The $332,778 includes funds correctly available as noted In the February 7, 2017 City Council Agenda item 250. An additional $171,771.80 is estimated in future funding.
° All unencumbered funds at fiscal year end are expected to be rolled over to the Unappropriated Balance for CDBG Capital Projects in FY 17/18.
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