HABITAT FOR HUMANITY OF ORANGE COUNTY (2)

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�ti0 Wr,,^K Nlgv PROCEED �G COUNCi1 O n-(:Dh (6%10,CWLS 1aw,15 CONDITIONAL GRANT AGREEMENT INCLUSIONARY HOUSING PROGRAM A-2020-264 THIS CONDITIONAL GRANT AGREEMENT ("Agreement") dated, for identification purposes only, as of November 17, 2020, is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation ('City"), and Habitat for Humanity of Orange County, a nonprofit organization ("Developer") with reference to the following: RECITALS: A. The City's Housing Opportunity Ordinance ("Ordinance") was originally adopted by the City Council on November 28, 2011 (Ordinance No. NS-2825), and is codified in Article XV IILI of the Santa Ana Municipal Code ("SAMC"). The Ordinance was amended by the City Council on September 1, 2015 (Ordinance No. NS-2881), on October 6, 2015 (Ordinance No. NS-2885), and on September 1, 2020 (Ordinance No. NS- 2994). The Ordinance established standards and procedures to encourage the development of housing that is affordable to a range of households with varying income levels. Pursuant to SAMC section 41-1904(c), developers may pay an in -lieu fee in certain instances to satisfy the inclusionary requirements. These funds are deposited into the Inclusionary Housing Fund, as defined by SAMC section 41-1901, and are to be used to increase and improve the supply of affordable housing per SAMC section 41-1909. B. The Developer, Habitat for Humanity of Orange County, a nonprofit organization ("Habitat for Humanity") requested financial assistance in connection with the proposed development of two (2) single-family detached homes restricted for sale to moderate income families eaming no more than 120% of the Orange County Area Median Income ("Project") to be located at 416 Vance Street (APN 398-041-18) and 826 N. Lacy Street (APN 398-041-22) (collectively, the "Property"). The two (2) units will be affordable to family households earning no more than 120% of the Area Median Income ("AMI"). C. On March 5, 2019, the City of Santa Ana authorized the City Manager and the Clerk of the Council to execute a pre -loan commitment letter with Habitat for Humanity of Orange County for $231,494 in Inclusionary Housing Funds for the development of the Project located at 416 Vance Street (APN 398-041-18) and 826 N. Lacy Street (APN 398-041-22), subject to non -substantive changes approved by the City Manager and City Attorney. D. On November 17, 2020, the Santa Ana City Council agreed to change the terms of the pre -loan commitment from a loan to a conditional grant. E. The amount of the Conditional Inclusionary Grant was determined based upon the City's review of the Developer's request for the receipt of the Inclusionary Grant and the development proforma and projected cash flows for the Project submitted by the Developer to the City ("Profomma"). The City Project Manager has authority to approve revised development proformas and projected cash flows for the Project; provided, however, that the Inclusionary Grant is not materially increased or extended.