Item 09 - Approve a Pre-Commitment of up to $920,000 in Inclusionary Housing Funds for Eligible Homebuyers to Purchase Nine (9) Existing Rental Units that will be coverted into Affordable Ownership Condominium Units Located at 425 E. Wellington Avenue

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EXHIBIT 2 • Developer must provide proof that it has secured all of its remaining financing for the conversion of the Project in the form of enforceable funding commitments and agrees that Developer shall be solely and exclusively responsible for any and all Project costs in the event all or some of the City Assistance is not approved or authorized. • Developer and City shall enter into the MOU setting forth the terms and conditions for the Homebuyer Down Payment Assistance loans for individual homeowners and any other uses of the City Assistance, and the disbursements of the Conditional Relocation Allocation, if any. • Execution of an Affordable Housing Covenant and recording the same against the Property. • Developer shall assume any and all responsibility and be solely responsible for determining whether laborers employed relative to the construction or installation of the Project must be paid the prevailing per diem wage rate for their labor classification, as determined by the state, pursuant to labor code sections 1720, et seq. If applicable, Developer shall comply with the City's Community Workforce Agreement. • All provided funding and Project requirements shall conform to the City's most recently adopted Affordable Housing Funds Policies and Procedures and the City's Down Payment Assistance Program, unless alternative requirements (e.g., reduction of 3% down payment requirement to 1%) are expressly provided in the executed MOU or any other documents related to the conversion of the Project. • Approval of all required entitlements and discretionary actions to allow the construction, improvement, conversion, and/or development of nine (9) affordable ownership units to be located at 425 East Wellington Avenue, Santa Ana, CA, 92701 (APN 398-028-12). • The City's obligation to provide the City Assistance is and shall remain subject to all covenants, conditions, and restrictions set forth in this pre-commitment letter and the MOU, and in particular, the City's analysis of the available funding sources and development and operating costs of the Project and the overall economic feasibility of the Project. • Developer's compliance with any applicable Relocation Laws. • For any disbursement of the Homebuyer Down Payment Assistance, each Homebuyer shall comply with the City's Down Payment Assistance Program. • Developer must comply with all other conditions specified in the MOU for disbursement of funds, including execution and recordation of the Affordable Housing Covenant.