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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 4 <br /> to households with income that does not exceed the limits for Low and Moderate- <br /> Income Households for an affordable sales price that complies with the limits for an <br /> "affordable housing cost," as defined in California Health and Safety Code §50052.5. <br /> The affordable housing covenant will run with the land for a period of forty-five (45) <br /> years. <br /> This pre-commitment letter shall not obligate the City or any department thereof to <br /> approve any application or request for, or take any other action in connection with, any <br /> planning approval, permit, or other action necessary for the construction, rehabilitation, <br /> installation, or operation of the project. The pre-commitment letter will also be <br /> conditional on Habitat for Humanity obtaining approval of all required entitlements and <br /> discretionary actions to allow the construction, improvement, conversion, and/or <br /> development of nine (9) affordable ownership units at 425 E. Wellington Avenue. <br /> In compliance with the City's Affordable Housing Funds Policies and Procedures, KMA <br /> completed a preliminary financial gap analysis for this project (Exhibit 3). Following this <br /> analysis and completion of the procurement process, KMA confirmed the preliminary <br /> financial gap and need for the Review Panel's recommendation to award up to <br /> $920,000 in Inclusionary Housing Funds. This second project's economics are <br /> described in detail in KMA's analysis attached as Exhibit 3 to this report. <br /> ENVIRONMENTAL IMPACT <br /> There is no environmental impact associated with this action because the <br /> recommended action consists of a pre-commitment of funds. <br /> FISCAL IMPACT <br /> For 425 E. Wellington Avenue, the MOU is estimated to be finalized for City Council <br /> approval in FY 25-26. Upon future approval of the MOU, funds will be budgeted and <br /> available as shown below: <br /> Fiscal Accounting Unit Fund Accounting Unit, <br /> Year —Account # Description Account Amount <br /> Description <br /> FY 25-26 41718820-69152 Inclusionary Loans and Grants $920,000 <br /> Housing Fund <br /> Total $920,000 <br /> EXHIBITS <br /> 1. Staff Report from October 17, 2023 <br /> 2. Pre-Commitment Letter for 425 E. Wellington Avenue <br /> 3. Preliminary Financial Gap Analysis for 425 E. Wellington Avenue <br />