Item 27 - Extension of Pre-Loan Commitment for North Harbor Village and TEFRA

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Extension of Pre-Loan Commitment for North Harbor Village and TEFRA Resolution March 2, 2021 Page 3 4 9 5 increases during the rehabilitation of the motel (Exhibit 3). The $1.6 million will generally be used as a backstop to ensure the rehabilitation project is successful. The extension will be for two years. If City Council does not approve the extension, staff will need to return to City Council on March 16, 2021 with a recommendation to approve the CDBG Loan Documents for the project in order to comply with the City’s original pre-loan commitment letter for the project. Project Description The North Harbor Village project is a motel rehabilitation project that will provide 89 units of permanent supportive housing for homeless individuals. This will be the City’s third motel conversion project in the last five years for people experiencing homelessness following the development of the Orchard and Casa Querencia. The Orchard project converted the former Guest House motel into 72 units of permanent supportive housing and the Casa Querencia project converted the former Aqua Motel. Both the Guest House and Aqua Motel were high-crime, short-term use motels prior to their conversion into permanent supportive housing with wrap-around supportive services. Fifty-five of the units at North Harbor Village will be designated for chronically homeless individuals and 34 units will be designated for homeless veterans. There will be a local preference for individuals who live or work in Santa Ana. The unit mix and rent restrictions are as follows: Unit Size No. Units AMI Studio 89 30% TEFRA Resolution North Harbor Housing Partners LP (the “Borrower”), a partnership of which Jamboree Housing Corporation (the “Developer”), consisting of the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (“CMFA”) adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $30,000,000 (the “Bonds”) for the acquisition, construction, improvement and equipping of the North Harbor Village project located at 1108 North Harbor Boulevard. However, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Ana must conduct a public hearing (the “TEFRA Hearing”) providing for the members of the community an opportunity to speak in favor of or against the use of tax- exempt bonds for the refinancing of the project. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project (in this case the City) must provide its approval of the issuance of the Bonds by the Authority for the refinancing of the project. On February 12, 2020, staff held a staff- level TEFRA Hearing, telephonically, as permitted by the Internal Revenue Service to satisfy the public hearing requirement in light of the COVID-19 pandemic, at which time