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 • The MOU shall specify that the Project is not undertaken by the City and is not in furtherance of a City program. Rather, the MOU is a response to Developer's request for financial assistance to enhance affordability for qualified homebuyers by providing Homebuyer Down Payment Assistance through an existing City program. • The MOU shall require that Developer execute an affordable housing covenant ("Affordable Housing Covenant") to offer the nine (9) affordable units to households with income that does not exceed the limits for Low and Moderate- Income Households for an affordable sales price that complies with the limits for an "affordable housing cost," as defined in California Health and Safety Code § 50052.5. In addition to the available Homebuyer Down Payment Assistance, the existing residents shall have a right of first refusal, which shall provide those households with the right to purchase an affordable unit. The Affordable Housing Covenant shall run with the land for a period of forty-five (45) years. • Developer shall assume any and all responsibility and be solely responsible for determining whether the project must comply with the relocation requirements under California Government Code § 7260 et seq. and implementing regulations and any other applicable federal, state, or local laws governing relocation of residential tenants, including but not limited to Division 2 of Article IX of Chapter 34 of the Santa Ana Municipal Code (§ 34-331 et seq.) (collectively, "Relocation Laws"). To the extent applicable, Developer shall comply with and be responsible for all costs of compliance with relevant Relocation Laws. • Developer shall assume any and all responsibility and be solely responsible for compliance with all tenant and eviction protections, including but not limited to protections under the California Tenant Protection Act (Civil Code § 1946.2), the Ellis Act (Government Code § 7060 et seq.), Santa Ana's Rent Stabilization and Just Cause Eviction Ordinance (Article XIX of Chapter 8 of the Santa Ana Municipal Code) (collectively, "Eviction Protections"). To the extent applicable, Developer shall comply with and be responsible for all costs of compliance with all relevant Eviction Protections. • Because the MOU will provide City Assistance as part of Homebuyer Down Payment Assistance for qualified homebuyers, the repayment obligation is based on the City's existing Down Payment Assistance Program. City shall not be obligated to make any payments to qualified homebuyers under the MOU unless and until Developer meets all conditions provided for in the MOU and qualified Low and Moderate-Income Households comply with all requirements to receive the Homebuyer Down Payment Assistance. • The nine (9) affordable ownership units at the Project shall be restricted by an Affordable Housing Covenant to an affordable home purchase price, which will require that the nine (9) homes be sold to qualified Low and Moderate-Income Households. Future sales of such single-family homes will be restricted to qualified Low and Moderate-Income Households for a period of at least forty-five (45) years.