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Affordable Housing Project at 2530 & 2534 Westminster Avenue <br />May 17, 2022 <br />Page 2 <br />2 <br />6 <br />8 <br />9 <br />5. Authorize the City Manager to execute a future Subordination Agreement with the <br />State of California Department of Housing and Community Development, Citibank, <br />and/or the County of Orange, for the City’s three Loan Agreements, after the <br />Westview House affordable housing project is complete, subject to approval as to <br />form by the City Attorney. <br />6. Conduct a Tax Equity and Fiscal Responsibility Act Hearing in consideration of the <br />issuance of tax-exempt bond financing by the California Statewide Communities <br />Development Authority on behalf of Westview House, LP, for the benefit of <br />Westview House Apartments to finance the acquisition, construction, <br />improvement, and equipping of the Project, an 85-unit multifamily rental housing <br />project located at 2530 & 2534 Westminster Avenue, Santa Ana, California (APNs <br />198-132-21 and 198-132-23). <br />7. Adopt a resolution approving the issuance of revenue bonds by the California <br />Statewide Communities Development Authority in an amount not to exceed <br />$45,000,000 for the purpose of financing the acquisition, construction, <br />improvement and equipping of the Westview House affordable housing project <br />located at 2530 & 2534 Westminster Avenue, Santa Ana, CA 92701 (APNs 198- <br />132-21 and 198-132-23). <br />EXECUTIVE SUMMARY <br />On April 7, 2020, the City Council approved an award of $3,904,341 in funding for the <br />development of the Westview House affordable housing project located at 2530 & 2534 <br />Westminster Avenue by Community Development Partners. The Westview House project <br />will have 84 new affordable units and 1 manager’s unit, with 58 three- and four-bedroom <br />units for large families, and 26 one- and two-bedroom affordable units for persons <br />experiencing homelessness. A total of 75 percent of the units will be set aside for <br />extremely low-income households at 30-percent Area Median Income. After two years of <br />predevelopment in which Community Development Partners worked with staff to secure <br />all of their remaining sources of financing in their capital stack as a condition of the City’s <br />award of funds, staff is now returning to the City Council for approval of their three Loan <br />Agreements. In addition, staff is also recommending approval of a Subordination <br />Agreement to subordinate the City’s three Loan Agreements to a senior loan from <br />Umpqua Bank; a future Subordination Agreement with the State of California Department <br />of Housing and Community Development; and a resolution for the issuance of revenue <br />bonds. <br />DISCUSSION <br />On April 7, 2020, the City Council authorized the City Manager to execute a pre- <br />commitment letter with Community Development Partners (“CDP”) and Mercy House <br />Community Housing Development Organization (“Mercy House CHDO”) for $3,904,341 <br />in affordable housing funds consisting of $2,003,705 in HOME Investment Partnerships <br />Program funds, $1,514,113 in Inclusionary Housing funds, and $386,523 in Rental <br />Rehabilitation Program funds for the development of the Westview House affordable