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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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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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6/25/2025 1:35:50 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Community Development
Item #
09
Date
7/1/2025
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Pre-Commitment of $920,000 in Affordable Housing Funds for Habitat for Humanity of <br /> Orange County <br /> July 1, 2025 <br /> Page 2 <br /> A Review Panel, composed of City staff from the Community Development Agency and <br /> Planning and Building Agency together with an affordable housing consultant, used the <br /> Scoring and Selection Criteria from the RFP to review all of the proposals. Habitat for <br /> Humanity of Orange County, Jamboree Housing, THRIVE Santa Ana, Mary Erikson, <br /> and Orange County Community Housing Corporation ("OCCHC") each submitted a <br /> proposal during the period that the RFP was open. Jamboree Housing and THRIVE <br /> Santa Ana ended up withdrawing their proposals. The proposal from OCCHC that was <br /> scored and reviewed did not meet the minimum threshold requirements and the <br /> proposal from Mary Erikson was determined to be infeasible because it was cost <br /> prohibitive. Following this review and scoring process, and substantial due diligence, the <br /> Review Panel is recommending the following award for a project with Habitat for <br /> Humanity to create nine (9) new affordable ownership opportunities: <br /> Developer: Habitat for Humanity of Orange County <br /> • 425 E. Wellington Avenue: Up to $920,000 in Inclusionary <br /> Housing Funds for eligible homebuyers to purchase nine (9) <br /> existing rental units that will be converted into affordable ownership <br /> condominium units including: (1) an allocation of $720,000 to the <br /> City's Down Payment Assistance Program, and (2) a conditional <br /> award up to $200,000 for eligible relocation costs. <br /> Background on Habitat for Humanity of Orange County <br /> Habitat for Humanity of Orange County ("Habitat for Humanity") is a nonprofit <br /> organization dedicated to providing affordable housing for qualifying families. Since <br /> 1988, the organization has completed and sold 239 homes in Orange County, including <br /> 32 affordable homes in the City of Santa Ana. Habitat for Humanity is currently building <br /> an additional six (6) new homes in the City at 1921 W. Washington Ave for low-income <br /> families at 80% of the AMI that was made possible with $2.2 million from the City's <br /> Inclusionary Housing Fund. Habitat for Humanity also currently administers the City's <br /> Residential Rehabilitation Grant Program with $500,000 per year in Community <br /> Development Block Grant funds. The organization is the largest provider of affordable <br /> ownership opportunities in Orange County and also advocates for fair housing policies, <br /> addresses substandard housing conditions, and offers families training and resources to <br /> achieve homeownership. <br /> Project Description - 425 E. Wellington Avenue <br /> The pre-commitment letter for 425 E. Wellington Avenue, Santa Ana, CA (APN 398- <br /> 028-12) between the City and Habitat for Humanity provides an enforceable funding <br /> commitment of up to $920,000 in Inclusionary Housing Funds for eligible homebuyers to <br /> purchase nine (9) existing rental units that will be converted into affordable ownership <br /> condominium units including: (1) an allocation of$720,000 to the City's Down Payment <br /> Assistance Program, and (2) a conditional award up to $200,000 for eligible relocation <br /> costs (Exhibit 2). The letter is referred to as a pre-commitment because the City has <br />
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