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EXHIBIT 2 <br />ADVISORS IN: <br />Real Estate <br />Affordable Housing To: <br />Economic Development <br />BERKELEY <br />A. Jerry Keyser <br />From: <br />Timothy C. Kelly <br />Debbie M. Kern <br />David Doezema <br />Kevin Feeney <br />Date: <br />Los ANOELES <br />Kathleen H. Head <br />James A. Rabe <br />Subject: <br />Gregory D. Soo-Hoo <br />Kevin E. Engstrom <br />Julie L. Romey <br />Tim R. Bretz <br />0 <br />KEYSER MARSTON ASSOCIATES. <br />ADVISORS IN PUBLIC/PRIVATE REAL ESTATE DEVELOPMENT <br />MEMORANDUM <br />Judson Brown, Housing Division Manager <br />City of Santa Ana <br />Kathleen Head <br />August 26, 2019 <br />Cornerstone Apartments: Updated Resyndication Proposal <br />At your request, Keyser Marston Associates, Inc. (KMA) evaluated the August 14, 2019 <br />SAa <br />Paul C.. Marra proposal submitted by Jamboree Housing Corporation (JHC) for the Low Income Housing <br />Tax Credit (Tax Credit) resyndication of the 127-unit Cornerstone Apartments (Project). <br />The purpose of the KMA analysis is to evaluate the JHC request to modify the <br />subordination terms associated with the loans that were provided to the Project by the <br />City of Santa Ana (City) and the Housing Authority of the City of Santa Ana (Authority). <br />BACKGROUND STATEMENT <br />In 2001 and 2003, the City and Authority provided 42 loans to a partnership that used <br />the loans to fund a portion of the acquisition and rehabilitation costs associated with <br />the Project (City Loan). As of November 2018, the City Loans were subordinated to in <br />$3.95 million in existing Bond debt. <br />In November 2018 the City and Authority approved the JHC resyndication proposal. As <br />part of the resyndication, the City and Authority agreed to the following: <br />1. JHC is required to prepay $500,000 of the City Loan's principal balance; and <br />2. The remaining principal and interest balance of the City Loan is subordinated to <br />$8.7 million in newly issued Bonds. <br />500 SOUTH GRAND AVENUE, SUITE 1480�- LOS ANGELES, CALIFORNIA 90071: PHONE 213.622.8095 <br />W W W.KEYSERMARSTON.COM <br />80A-13 <br />1908006.SNA:KHH <br />19190.017.003 <br />