HomeMy WebLinkAboutItem 62 - Pre-Commitment of Affordable Housing Funds for Jamboree Housing Corporation and WISEPlace Community Development Agency
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Item # 62
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 21, 2022
TOPIC: Pre-Commitment of Affordable Housing Funds for Jamboree Housing
Corporation and WISEPlace; Density Bonus Agreement; Loan Forgiveness
TITLE
Approve a pre-commitment of $5,256,327 in HOME - American Rescue Plan funds,
$484,000 in Inclusionary Housing Funds, twenty-five (25) project-based vouchers, a
Density Bonus Agreement, and loan forgiveness for Jamboree Housing Corporation and
WISEPlace for the development of the WISEPlace Permanent Supportive Housing
project located at 1411 N. Broadway (Contingent upon approval of Housing Authority Item
#3)
RECOMMENDED ACTION
CITY COUNCIL
1. Authorize the City Manager to execute a pre-commitment letter with Jamboree
Housing Corporation (“Jamboree”) and WISEPlace for $5,256,237 in HOME
Investment Partnerships Program – American Rescue Plan (“HOME-ARP”) funds and
$484,000 in Inclusionary Housing Funds for the development of the WISEPlace
Permanent Supportive Housing project located at 1411 N. Broadway, Santa Ana, CA
92706, (APN 398-523-04), subject to non-substantive changes approved by the City
Manager and City Attorney.
2. Authorize the City Manager to execute a Density Bonus Agreement with North
Broadway Housing Partners LP (c/o of Jamboree and WISEPlace), for a 55-year term,
for the development of the WISEPlace Permanent Supportive Housing project located
at 1411 N. Broadway, Santa Ana, CA 92706, (APN 398-523-04), subject to non-
substantive changes approved by the City Manager and City Attorney.
3. Authorize the City Manager to forgive the existing City loan with WISEPlace for
$723,446.41 in Community Development Block Grant funds outstanding from a Loan
Agreement executed in 1996 and amended in 2001.
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COMMUNITY DEVELOPMENT COMMISSION RECOMMENDATION
At its regular meeting on May 25, 2022, the Community Development Commission
recommended approval of Recommended Action # 1 and 3 for City Council and the
Recommended Action # 1 for the Housing Authority, by a vote of 7:0.
PLANNING COMMISSION RECOMMENDATION
At its regular meeting on May 9, 2022, the Planning Commission recommended approval
of Density Bonus Agreement Application No. 2022-01, by a vote of 5:0 (Commissioners
McLoughlin and Pham absent).
HISTORIC RESOURCES COMMISSION ACTION
At its regular meeting on March 3, 2022, the Historic Resources Commission (“HRC”)
considered Historic Exterior Modification Application (“HEMA”) No. 2022-02 to allow
exterior modifications to the historic Santa Ana-Tustin Young Women’s Christian
Association building located on the subject property. The HRC recommended approval of
HEMA No. 2022-02, with added conditions, by a vote of 8:0 (Commissioner Frazier
absent).
DISCUSSION
On December 7, 2021, the City Council authorized the Community Development Agency
(“CDA”) to release a FY 2021-2022 Request for Proposals (“RFP # 21-136”) to develop
affordable rental and ownership project(s) in the City of Santa Ana with available funds
from the Inclusionary Housing Fund, HOME Investment Partnerships (“HOME”) Program,
HOME-American Rescue Plan (“HOME-ARP”) Program, Project-Based Voucher
Program, and the Neighborhood Stabilization Program fund (Exhibit 1). The RFP also
included one land asset owned by the Housing Authority of the City of Santa Ana. The
RFP was prepared in compliance with the City’s Affordable Housing Funds Policies and
Procedures amended by City Council on August 18, 2020.
Following this approval, on December 8, 2021, CDA issued RFP # 21-136 for Affordable
Housing Development. The RFP was published on both the City and Housing Authority’s
websites and Planet Bids; a public notice was published in the OC Register on December
10, 2021; an e-mail was sent out by Orange County’s largest affordable housing
membership associations including the Kennedy Commission, 2-1-1 Orange County, and
the Southern California Association of Nonprofit Housing; and a letter was e-mailed to
interested developers and nonprofit organizations who had previously requested to be
informed of development opportunities on CDA’s RFP Process Database.
The deadline for the City’s RFP # 21-136 for Affordable Housing Development closed on
Monday, February 28, 2022 at 5:00 p.m. The City received three (3) eligible proposals
prior to the deadline (two proposals were determined to be ineligible). The affordable
housing developers that submitted a proposal are:
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Affordable Housing Developers
Jamboree / WISEPlace
C&C Development
Habitat for Humanity
After the deadline, staff conducted a minimum threshold review of each proposal to
ensure compliance with the RFP requirements. Following the minimum threshold review,
staff formed a Review Panel that consisted of the Assistant City Manager/Executive
Director of the Community Development Agency, the Executive Director of the Planning
and Building Agency, the Principal Civil Engineer of the City’s Public Works Agency, the
Housing Division Manager and the Housing Programs Analyst. Keyser Marston
Associates and RSG, Inc. also served as third party advisors to the Review Panel.
In compliance with the City’s Affordable Housing Funds Policies and Procedures, the
Review Panel used the proposal Scoring and Selection Criteria from the RFP to conduct
their review and analysis of each proposal. In addition to the Scoring and Selection
Criteria from the RFP, the Review Panel also reviewed the proposed project design for
appropriateness for the proposed target group, compatibility with surrounding uses, cost
effectiveness of construction, and appropriateness of the design and construction for low
maintenance and long term durability.
On May 4, 2022, the Review Panel interviewed all of the developers who submitted a
proposal. Following these interviews, the Review Panel discussed and deliberated upon
the final scoring and selection of the proposals. The Review Panel agreed upon the final
scores below based on an average of the individual reviewer scores:
Developer Name Project Name Final Score
Jamboree/WISEPlace WISEPlace Permanent
Supportive Housing 95
Habitat for Humanity Washington Ave.75
C & C Development Borchard & Minnie
Apartments
Pending Further
Negotiation
Based on the scores above and the deliberative selection and review process followed
by the City, the Review Panel recommends the following award for this project:
Developer: Jamboree / WISEPlace
Project Name: WISEPlace Permanent Supportive Housing
Award Recommendation:
HOME-American Rescue Plan
(“HOME-ARP”) Funds $5,256,327
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Inclusionary Housing Funds $484,000
Project-Based Vouchers Twenty-Five
(25)
The pre-commitment letter for Jamboree and WISEPlace provides the enforceable
funding commitment from the City for $5,256,327 in HOME-ARP funds, and twenty-five
(25) project-based vouchers for the development of the WISEPlace permanent supportive
housing project located at 1411 N. Broadway, Santa Ana, CA 92706 (APN 398-523-04)
(Exhibit 2).
The pre-commitment letter also includes a provision for an additional award of $484,000
in Inclusionary Housing Funds for relocation benefits, if necessary. This is because there
are currently 20 shelter residents at WISEPlace. As occupants of transitional housing/an
emergency shelter, WISEPlace clients do not meet the definition of a displaced person,
because the housing they occupy is not permanent housing, and they do not pay for the
housing. The purpose of the housing they currently occupy is temporary housing until
they are matched with a permanent housing option. The units/beds they occupy does not
meet the definition of a “dwelling” under the Uniform Relocation Act (“URA”), and further,
the Department of Housing and Community Development issued guidance indicating that
the temporary sheltering of homeless persons does not trigger “tenancy” under Civil Code
section 1940 and related provisions.
However, while WISEPlace and Jamboree nor the City of Santa Ana have a legal
requirement to provide relocation assistance to WISEPlace residents in the event they
are not matched with an alternative housing or shelter option prior to the start of
construction and would need to vacate the site, WISEPlace and the City will each provide
$484,000 in a 50/50 split, if relocation assistance are to be provided to the site occupants
per the same requirements of the URA or CA Relocation Regulations. If the 20 current
WISEPlace residents are provided relocation assistance as calculated per the
requirements as the URA and California State Relocation Regulations, the estimated total
for relocation payments will be $968,000. WISEPlace will work with staff to relocate their
20 residents prior to the start of construction of the project. However, this additional
assistance will provide a guarantee that full relocation benefits are available, if necessary,
to the current residents if WISEPlace is unable to relocate them.
Among various other conditions in the pre-commitment letter, one of the primary
conditions is that the developer must provide verification that it has secured all of its
remaining financing for the development of the project in the form of the other enforceable
funding commitments in the project’s capital stack, which may include 9% or 4% Federal
Low Income Housing Tax Credits, State Housing Tax Credits, a commitment of affordable
housing funds from the County of Orange or State of California, Section 8 project-based
vouchers from the Orange County Housing Authority, or any other funding source needed
in the project’s capital stack to develop the Project and close on the financing, before staff
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will return to the City Council for consideration of the Loan Agreements for this project.
The pre-commitment letter is also conditional on the developer securing any and all
permits and discretionary approvals that may be required for the Project by the City. The
pre-commitment does not obligate the City or any department thereof to approve any
application or request for or take any other action in connection with any planning
approval, permit or other action necessary for the construction of the Project.
In compliance with the City’s Affordable Housing Funds Policies and Procedures, KMA
has conducted a preliminary financial gap analysis to confirm the project’s underwriting,
the financial gap, and other programmatic requirements related to the funding sources
(Exhibit 3). KMA reviewed the developer’s estimates and projections of rents, expenses,
reserves and development costs in accordance with industry-standard underwriting
guidelines. Following this preliminary financial gap analysis and the procurement and
deliberative process described above, staff recommends the full amount of the award to
City Council for final approval.
Project Description
Following the RFP process, Jamboree in partnership with WISEPlace is being
recommended by staff as the developers to co-develop an affordable housing community
at 1411 N. Broadway (the “Project”). The proposed name for the Project is WISEPlace
Permanent Supportive Housing (“WISEPlace PSH”). Renderings of the Project are
attached as Exhibit 4.
Jamboree is an experienced affordable and permanent supportive housing developer
focused on developing and rehabilitating housing throughout California. Since 1990,
Jamboree has successfully built a portfolio of over 100 projects comprising over 10,000
units. Jamboree currently has $1.1 billion in permanent supportive housing, affordable
and special needs housing projects under development and an estimated $3.2 billion in
developments in its portfolio. Jamboree has extensive affordable housing financing
experience, including securing 4% and 9% low income housing tax credits, and is well
versed in navigating regulatory complexities.
Jamboree is one of the leading non-profit developers of a wide range of housing and
community developments that serve families and individuals not served by traditional
market rate developers. Jamboree develops, acquires, renovates, and manages high
quality and permanently affordable family, senior and supportive housing communities
throughout the State of California. Jamboree has experience developing and operating
communities in Santa Ana including the recently opened permanent supportive housing
project Heroes Landing, which is exclusively for veterans. Additionally, Jamboree has four
completed developments in Santa Ana including Heroes’ Landing, First Point I and II,
Metro East and Cornerstone, and one development under construction, North Harbor
Village.
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Jamboree has formed a qualified team to design and partner with in supporting the
ongoing mission of the property. This includes, as Administrative General Partner and
supportive services provider, the local non-profit WISEPlace, architecture firm
Architecture Design Collaborative, the Orange County Health Care Agency, the Orange
County Housing Finance Trust, and experienced property management firm Quality
Management Group. On May 18, 2022, the Orange County Housing Finance Trust
(“OCHFT”) approved an award of $2,480,030 in funding. Councilmember Penaloza voted
in support of this award as City Council’s appointee to the OCHFT Board.
Since 1924, WISEPlace has served our homeless population, including unaccompanied
women. WISEPlace has transformed the lives of more than 8,400 individuals
experiencing homelessness since inception in the 1920s. Through the “WISEPlace Way”,
clients can achieve personal stability through case management and counseling, financial
empowerment, employment assistance, health and wellness, socialization activities,
addiction recovery, housing retention assistance and the setting of and completion of
personal goals. WISEPlace’s 90+ year history of serving the community has shown that
these are the components necessary to help prevent and end homelessness.
Project Site
Jamboree, in partnership with WISEPlace, is proposing to develop 0.6 acres located on
the site of WISEPlace’s current headquarters at 1411 N. Broadway. The site is located
along Broadway and Sycamore Street, between 15th Street and Washington Avenue.
Main Street, one block east of Sycamore Street, has regular Orange County
Transportation Authority bus service including Routes 53 and 83. The site is within one-
quarter mile of the Orange County Transportation Authority Route 60, with a stop at 17th
Street and Broadway. The Project is within one mile of the Santa Ana Regional
Transportation Center.
The Project site consists of an L-shaped parcel developed with a one- to two-story
institutional building located within the Broadway Corridor District of the Midtown Specific
Plan (SP-3) zoning designation. Through the City’s Adaptive Reuse Ordinance (“ARO”),
residential use will be allowable by right. The existing one-story East-West wing facing
Broadway will be renovated as part of an adaptive reuse, including three (3) units with the
existing landmark building. The four-story new construction portion will face Sycamore
and will have an additional 45 units. The Project will not require a zone change or
amendment to the current land use through the ARO. The proposed development gained
unanimous approval from the Historic Resources Commission on March 3, 2022 and the
Planning Commission on May 9, 2022.
Proposed Project
The proposed Project includes 47 studio Permanent Supportive Housing (“PSH”) units
and one (1) two-bedroom manager’s unit. 100% of the units will be set aside for extremely
low-income households at 30% Area Median Income. The studio units will be designated
as PSH for persons experiencing chronic homelessness. Fourteen (14) units will serve
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individuals experiencing chronic homelessness with a mental illness, financed by the
Mental Health Services Act (“MHSA”). Services will be provided for these residents on
site by the Orange County Health Care Agency.
The project consists of the adaptive reuse of the one-story East-West wing facing
Broadway, in order to preserve the landmark status of the existing building. The existing
North-South wing facing Sycamore will be demolished to accommodate the new
construction of a four-story building, with a podium-parking garage on the ground floor
and three levels of wood frame construction above. The massing on the fourth floor facing
Broadway is stepped back to provide a seamless indoor-outdoor community room space
on the fourth floor. The building architecture is complementary to the existing building’s
Spanish Colonial Revival style, while being differentiated and distinguishable from the
existing architecture. The sight lines along Broadway are preserved to maintain the
historic character from that street frontage. The ground floor amenities include a
community garden, barbeque area and seating, dog run, and renovation of the existing
patio and planters. The indoor amenities include two community rooms, a community
kitchen, laundry rooms on each floor, a computer room, and a fitness center.
Resident Services
WISEPlace will coordinate the delivery of all services, including those anticipated to be
committed through the Orange County Health Care Agency. A comprehensive range of
services will be offered to assist residents achieve and maintain self-sufficient, healthy
and purposeful lives. Working under the Housing First model and the “WISEPlace Way”,
WISEPlace will utilize strategies from an array of evidence-based models and practices
to ensure residents have access to all required services.
Thanks to the customized WISEPlace Way of comprehensive, person-centered wrap
around services, even in highly vulnerable populations, personal self-sufficiency can be
reached. In 2021, WISEPlace achieved the following outcomes:
77% of clients transitioned into stable housing
72% of clients increased their savings
39% of clients decreased their mental health symptoms
100% of clients were linked with benefits and resources
95% of clients retained housing
The Project will provide on-site supportive services for the PSH residents that provide
stability, community, and life skills training to adults diagnosed with a mental illness who
are homeless. An on-site Resident Clinical Services Coordinator will provide case
management services for the MHSA units.
WISEPlace will provide wrap-around services and coordination to activate the community
amenity spaces on site to meet the needs of all residents. An on-site Case Worker and
Resident Services Coordinator will create a Supportive Services Plan for the PSH
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community, ensuring residents have access to needed services to maintain housing, on-
site community building activities, and links to partner organizations.
Community Inclusion
As part of the development process, the development team has engaged local partners
to provide input on the proposed development. The Project team held two community
outreach meetings open to the public in February and March 2022. The team also met
with the Willard, Downtown, and Floral Park Neighborhood Associations. The
development has also received letters of support from several community organizations
including but not limited to Santa Ana Rotary, Dr. Snow of UC Irvine, Santa Ana Elks,
United Way, United to End Homelessness, Providence, Assistance League, Mariposa,
Working Wardrobes, Santa Ana Kiwanis, and Justice League.
The one-story adaptive reuse project will include commercial in the existing community
room space facing Broadway. A museum displaying the history of the Y.W.C.A. and
landmark building will be open to the public during regular business hours. WISEPlace
plans to partner with community organizations such as Orange County School of the Arts
for periodic art installations as well.
Finally, WISEPlace will continue to serve the broader community out of the development
as it will maintain its headquarters on-site upon completion.
Parking
The proposed site plan includes 20 covered parking spaces in the gated parking garage
with an entrance on Sycamore Street. The parking ratio is 0.42 spaces per PSH unit.
While the development team has included 20 parking stalls, PSH located near transit is
not required to provide any parking under State law. The developer has agreed to provide
a Parking Management Plan as part of the Density Bonus Agreement.
Unit Mix
The target population for WISEPlace PSH includes individuals experiencing chronic
homelessness with a local preference for residents of the Santa Ana community.
Fourteen (14) units will serve special needs formerly homeless with a mental illness. A
total of 47 studio units (100%) are reserved for extremely low-income individuals at or
below 30% of the Area Median Income (AMI). These 47 units are specifically designated
for permanent supportive housing for persons who are experiencing chronic
homelessness. The proposed unit mix and rent restrictions are as follows:
Bedroom
Size
30%
AMI (PSH)
Manager’s
Unit Total Units
Studio 47 47
Two-Bedroom 1 1
TOTAL 47 1 48
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Density Bonus Agreement
Jamboree requires approval of a Density Bonus Agreement (“DBA”) to allow the
construction of the WISEPlace PSH Project (Exhibit 5). The Planning Commission
recommended approval of the Density Bonus Agreement on May 9, 2022 by a vote of 5:0
(Commissioners McLoughlin and Pham absent) (Exhibit 6). In order for the Planning
Commission to recommend approval of the Density Bonus Agreement, the Historic
Resources Commission recommended approval of the Project on March 3, 2022 by a
vote of 8:0 (Commissioner Frazier absent) (Exhibit 7). Jamboree has paid the City's
Density Bonus Setup fee in the amount of $22,097.27 to prepare the agreement.
The California Density Bonus law allows developers proposing five or more residential
units to seek increases in base density for providing on-site housing units in exchange for
providing affordable units on site. To help make constructing on-site affordable units
feasible, the law allows developers to seek up to three incentives/concessions and an
unlimited number of waivers, which are essentially variances from development
standards that would help a project be built without significant burden and without
detriment to public health. The first version of the Density Bonus Law was adopted in
1979 and has since been amended at various times. Recent revisions allow affordable
housing developers to request incentives/concessions and/or waivers for 100-percent
affordable developments, even if they do not require a numerical density bonus.
Moreover, in early 2017, the law was amended to restrict the ability of local jurisdictions
to require studies to “justify” the density bonus and requested incentives/waivers and
places the onus on local jurisdictions to prove that the incentives/concessions or waivers
are not financially warranted.
The purpose of the State Density Bonus Law is to encourage the development and
availability of affordable housing by requiring the inclusion of affordable housing units within
new developments. Pursuant to California Government Code sections 65915 (d)(1) and
65915 (e)(1), a local jurisdiction is limited in its ability to deny requested concessions and
waivers and is preempted from denying the Density Bonus Agreement application. Due to
the project’s 100-percent affordability the developer can seek up to three density bonus
concessions and unlimited waivers, pursuant to Section 65915 et al. of the California
Government Code (Density Bonuses and Other Incentives). Although the City has analyzed
the Project for several areas of concern, the conditions of approval proposed for the Project
are intended to address any of the Project’s potential impacts. Table 1 outlines the
incentives/concessions and waivers requested by Jamboree and WISEPlace:
Table 1 Requested Incentives/Concessions
Standard Required Provided
Building Height and Number of
Stories
The maximum building height for all
buildings is 35 feet, or three stories,
whichever is less – Broadway
Corridor District of the Midtown
Specific Plan (SP-3) zoning
designation
The new building is proposed
at a height of 54 feet and 6-
inches and four stories –
Requires Concession (1 of
3), Cal. Gov’t Code Sec.
65915 (d)(1)(2)(B)
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Standard Required Provided
Underground Utility
Installations
All utilities as part of the proposed
project shall be required to be
installed underground – Section 41-
626 of SAMC - Underground utility
installations.
All proposed utilities will be
undergrounded with the
exception of existing
overhead power lines over the
existing building along with
recorded Southern California
Easement (to remain) –
Requires Concession (2 of
3), Cal. Gov’t Code Sec.
65915 (d)(1)(2)(B)
As designed, the Project is eligible to exercise its ability to seek State density bonus
incentives and/or concessions because it is a 100-percent affordable project for
permanent supportive housing. However, the Project does not seek an increase in
allowable dwelling units as the Project is designed as an adaptive reuse project. Pursuant
to Article XVI.II (Adaptive Reuse) in the SAMC, adaptive reuse projects can exceed the
maximum general plan density provided the adaptive reuse project complies with the
development standards.
In addition, the site is parked in compliance with California Government Code Section Cal.
65915 (p)(4). Pursuant to the California Density Bonus Law, and upon the request of the
developer, a City cannot impose any minimum vehicular parking requirement for a rental
supportive housing development, as defined in Section 50675.14 of the California Health
and Safety Code. Although not required to provide parking, the site provides twenty (20)
total parking spaces, or 0.42 spaces per unit, which includes two accessible parking stalls.
Lastly, pursuant to the adaptive reuse ordinance, parking spaces are not required for any
converted use within the building. Therefore, no parking is required for the
administrative/residential portions of the converted building within the one-story portion of
the building.
Key Terms in the Density Bonus Agreement
The following is a list of key terms in the Density Bonus Agreement:
Term of Agreement. The term of the Agreement shall commence on June 21,
2022 and shall continue until the date that is fifty-five (55) years after the City
issues the last certificate of occupancy for the Project.
Project. Developer shall develop, operate, and maintain, or cause the
development, operation and maintenance of, the Property as a forty-eight (48) unit
rental residential community, with forty-seven (47) Affordable Units for Extremely
Low Income Tenants.
Unit Mix. No less than forty-eight (48) Units, which shall be comprised of forty-
seven (47) studio units designated as Affordable Units pursuant to the terms and
conditions of the Agreement.
Affordable Rent Schedule. The rents shall be the maximum Monthly Rent that
may be charged to and paid by an Extremely-Low Income Tenant whose income
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does not exceed thirty (30%) of the area median income for Orange County.
Selection of Tenants. Each Affordable Unit shall be leased to Eligible Households
that are chronically homeless and document-ready individuals on the Coordinated
Entry List. All residents will be referred from the County of Orange Coordinated
Entry System. Developer shall give preference in leasing units to households that
live and/or work in the City of Santa Ana or who have an active Housing Choice
Voucher.
Onsite Supportive Services, Programs and Amenities. Developer shall provide
residents of the Project, or cause to be provided to residents of the Project, access
to discounted or no-cost onsite supportive services, programming and amenities
that promote independent living and economic mobility and include but are not
limited to health and wellness services, social activities, and physical or
recreational amenities.
Maintenance. Owner shall, at all times during the term of this Agreement, cause
the Property and the Project to be maintained in a decent, safe and sanitary
manner, regardless of cause of the disrepair, to the extent commercially
reasonable.
Onsite Parking Management Plan. Developer has agreed to provide twenty (20)
onsite parking stalls for residents and visitors of the Project and actively monitor
the parking demand of the Project site. Developer shall continually monitor and
take commercially reasonable measures to manage the parking demand of the
Project site - to mitigate the use of offsite parking spaces on private or public
properties and/or right-of-way. Prior to issuance of the Certificate of Occupancy,
Developer shall submit and obtain approval from the Planning and Building Agency
of a Parking Management Plan ("PMP") to address the parking demands of the
Project. The approved PMP shall be adhered to and be enforced by the Project at
all times.
The Density Bonus Agreement has been pre-signed by the developer indicating their
acceptance of the terms. The agreement is not considered final until the City Council has
reviewed and approved the agreement, and the agreement is executed by all parties.
CDBG Loan Forgiveness
In 1993, the former Community Redevelopment Agency of the City of Santa Ana (“Former
Agency”) provided WISEPlace, formerly known as the YWCA of South Orange County, a
$50,000 predevelopment loan of tax increment funds for the purposes of developing a
Single Room Occupancy Hotel (“SRO”) project on the site. However, this project was
deemed financially infeasible by the Former Agency, and in August 1999, the $50,000
predevelopment loan was forgiven by the Former Agency.
In 1996, the City provided WISEPlace a $900,000 loan of Community Development Block
Grant (“CDBG”) funds (“CDBG Loan”) to finance the rehabilitation of the site for the
purposes of providing permanent affordable rental housing. The CDBG Loan was
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structured with a 55-year term and a 1% simple interest rate. The loan repayments were
to be made from 50% of the project’s residual receipts.
In 2001, the City amended the terms of the CDBG Loan. At that time, the outstanding
principal balance of the loan was set at $916,265, which consisted of two components:
(1) a $250,000 component, and (2) a $666,616 component. The amended promissory
note set the loan term at 55 years – starting in 2002 and ending in 2056. The interest
rate was set at 1% and was applied to the $666,265 component of the CDBG Loan, which
resulted in annual interest payment of $6,662.65 per year.
WISEPlace was required to make interest only payments of $6,662.65 per year for the
55-year loan term. However, as long as the project was not in default, the amended
promissory note required the City to forgive $16,666 of the CDGB Loan per year for the
first 15 years. This resulted in $250,000 of the $916,265 CDBG Loan being forgiven. The
current outstanding loan balance is currently $723,446.41. Per the terms of the amended
promissory note, WISEPlace is required to continue paying annual interest only payments
until the end of the loan term in 2056. The entire balance of the CDBG Loan ($723,446.41
plus interest) will become due and payable at that time.
The current financial structure of the Project requires WISEPlace to enter into a long-term
ground lease with a to-be-formed Tax Credit partnership. The Tax Credit partnership will
consist of WISEPlace, Jamboree and a Tax Credit Investor. However, per discussions
with Jamboree and WISEPlace, the Tax Credit partnership cannot assume any of
WISEPlace’s existing debt – including the existing CDBG Loan. Furthermore, given that
the Tax Credit partnership will be ground leasing the site from WISEPlace, there are no
available sales proceeds to pay off the existing CDBG Loan. As such, to effectuate the
proposed WISEPlace PSH project, WISEPlace is requesting forgiveness of the existing
CDBG Loan.
Staff recommends that the City Council approve WISEPlace’s CDBG Loan forgiveness
request. As discussed above, the amended promissory note already allowed for loan
forgiveness during the first 15 years of the loan term. The additional loan forgiveness
would be in line with past City actions regarding loans provided to WISEPlace. In addition,
the CDBG Loan is structured with interest only payments; therefore, none of the
outstanding principal balance is currently being paid down. This would leave an
outstanding balance of $723,446.41 plus interest to be repaid in full in Year 2056.
Additionally, as part of the proposed Project, the City will be placing new City loan(s) on
the Project. Thus, the City will still be entitled to receive residual receipts from the PSH
project.
ENVIRONMENTAL IMPACT
Pursuant to the Adaptive Reuse Ordinance (Ordinance No. NS-2874), the proposed
project is found and determined to be consistent with the General Plan of the City of Santa
Ana. Therefore, in accordance with the California Environmental Quality Act, the
Pre-Commitment of Affordable Housing Funds for Jamboree and WISEPlace
June 21, 2022
Page 13
2
7
6
5
recommended action is exempt from further review under Section 15194 (Affordable
Housing Exemption), as this project meets all the required criteria as a 100-percent
affordable/permanent supportive housing development. Based on this analysis, a Notice
of Exemption, Environmental Review No. 2022-05 will be filed for this project.
FISCAL IMPACT
The various agreements, including the loan agreements, are estimated to be finalized for
City Council approval in FY 2022-23. Upon future approval of the loan agreements, funds
will be budgeted and available as shown below:
Fiscal
Year
Accounting
Unit – Account
#
Fund Description
Accounting Unit,
Account
Description
Amount
FY 22-23 18218780-
69152
HOME-ARP
Program Loans & Grants $5,256,327
FY 22-23 41718820-
69152
Inclusionary Housing
Fund Loans and Grants $484,000
Total Loans 5,740,327
The forgiveness of the CDBG Loan will have two impacts. First, the $6,662.65 per year
for the remainder of the loan term will no longer be paid to the City. Second, the entire
balance of the CDBG Loan due to the City will be forgiven and no longer payable to the
City.
EXHIBITS
1.Staff Report from December 7, 2021
2. Pre-Commitment Letter with Jamboree and WISEPlace
3. Preliminary Financial Gap Analysis by Keyser Marston Associates
4. Proposed Project Renderings / Preliminary Site Plan
5. Density Bonus Agreement
6.Planning Commission Staff Report from May 9, 2022
7.Historic Resources Commission Staff Report from March 3, 2022
Submitted By: Steven A. Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
SANTA ANA CITY COUNCIL
Vicente Sarmiento
Mayor
vsarmiento@santa-ana.org
Phil Bacerra
Mayor Pro Tem, Ward 4
pbacerraa@santa-ana.org
Thai Viet Phan
Ward 1
tphan@santa-ana.org
Nelida Mendoza
Ward 2
nmendoza@santa-ana.org
Jessie Lopez
Ward 3
jessielopez@santa-ana.org
Johnathan Ryan Hernandez
Ward 5
jryanhernandez@santa-ana.org
David Penaloza
Ward 6
dpenaloza@santa-ana.org
MAYOR
Vicente Sarmiento
MAYOR PRO TEM
Phil Bacerra
COUNCILMEMBERS
Johnathan Ryan Hernandez
Jessie Lopez
Nelida Mendoza
David Penaloza
Thai Viet Phan CITY OF SANTA ANA
COMMUNITY DEVELOPMENT AGENCY
20 Civic Center Plaza M-25
Santa Ana, California 92702
www.santa-ana.org
CITY MANAGER
Kristine Ridge
CITY ATTORNEY
Sonia R. Carvalho
CLERK OF THE COUNCIL
Daisy Gomez
June 21, 2022
Tish Kelly Sent via E-mail
Vice President, Development
Jamboree Housing Corporation
Brateil Aghasi
Chief Executive Officer
WISEPlace
Re: WISEPlace Permanent Supportive Housing
1411 N. Broadway, Santa Ana, CA 92706
Pre-Commitment Letter for HOME – American Rescue Plan (“HOME –ARP”) Loan,
Inclusionary Housing Funds Loan, Twenty-Five (25) Project-Based Vouchers, and
CDBG Loan Forgiveness
Dear Mses. Kelly and Aghasi,
Jamboree Housing Corporation (“Jamboree”), in partnership with the fee owner of the
WISEPlace apartment development (“Owner,” and collectively with Jamboree, the
“Developer”), requested financial assistance in connection with the proposed
development of a forty-eight (48) unit affordable housing complex, with forty-seven (47)
units restricted for chronically homeless individuals, to be located at 1411 N. Broadway,
Santa Ana, CA 92706 (APN 398-523-04) (the “Project”).
The Project will be an adaptive reuse of the existing one-story structure and the demolition
of the existing two-story gym structure along Sycamore. The new construction
component will include one story within the existing building along Broadway and a four-
story new building along Sycamore. The Project requires a Density Bonus Agreement to
be approved by the City Council.
The City of Santa Ana (“City”) and the Housing Authority of the City of Santa Ana
(“Housing Authority”) have reviewed the Developer's request for assistance, and at the
EXHIBIT 2
P a g e | 2
City Council / Special Housing Authority meeting on June 21, 2022, the City Council and
Housing Authority Board authorized and approved issuance of this pre-commitment letter
evidencing the preliminary award of (collectively, the “City Assistance”):
- A loan in the maximum amount of $5,256,327 funded from the HOME
Investment Partnerships Program – American Rescue Plan (“HOME –ARP”)
funds held by the City of Santa Ana for the Project (“HOME-ARP Loan”);
- A loan in the maximum amount of $484,000 from the Inclusionary Housing
Fund held by the City for the Project (“Inclusionary Loan”) to be used for
relocation purposes only if necessary;
- Twenty-Five (25) U.S. Department of Housing and Urban Development
Project-Based Vouchers (“PBV”) from the Housing Authority of the City of
Santa Ana.
This letter shall evidence the City’s pre-commitment of the City Assistance to the
Developer for the Project subject to the conditions described below.
City Assistance:
The amount of the proposed City Assistance has been determined based upon the City’s
review of the Developer's request for the receipt of the City Assistance and the
development proforma and projected cash flows for the Project submitted by the
Developer to the City (“Proforma”). The City Manager has authority to approve revised
development proformas and projected cash flows for the Project; provided, however, that
the City Assistance is not increased or extended.
The City Assistance shall include the following loan terms:
The HOME-ARP Loan shall be for a maximum principal amount of $5,256,327, or
as much thereof as is disbursed for hard and soft costs in constructing the Project,
provided from the HOME Investment Partnerships Program – American Rescue
Plan fund:
o A portion of the $5,256,327 will be in the form of capital funds, repayable
from residual receipts.
o The remaining portion of the $5,256,327 will be in the form of capitalized
operating subsidy reserve.
o The exact amounts may be determined at construction closing.
3% simple interest per annum.
Repayment from 50% of Residual Receipts (pro-rata with payments due in
connection with other financing provided by other public agencies) (after payment
of operating expenses, including social services expenses and monitoring fees,
debt service, any deferred developer fee, and partnership fees to be described in
the Agreement), with the remaining 50% to be disbursed to the Developer.
EXHIBIT 2
P a g e | 3
o Any repayments to the soft loans must be based on the pro rata share of all
the soft loan balances (the same as the residual receipts splits).
Remaining principal and accrued interest due upon the 55th anniversary of the
issuance of Certificate of Occupancy or earlier upon sale, refinancing or an
uncured default. On that date, the City agrees to review the performance of the
Property and consider in good faith any reasonable request by Developer to modify
the terms or extend the term of the City Promissory Note. Additionally, the City will
receive 50% of the net proceeds received from any sale or refinancing of the
Project in order to repay any outstanding principal or interest due on the City
Promissory Note, after payment of outstanding conventional debt, payment in full
of any deferred developer fee, payment for any necessary repairs, and
establishment of any reserves and transaction costs.
Cost savings from the Project, if any, will be applied first to pay down the City
Assistance, subject to compliance with the Tax Credit Allocation Committee
(“TCAC”) Regulations and California Health and Safety Code, as applicable.
After all other funding sources have been secured through enforceable funding
commitments, a HOME Subsidy Layering Review is required in order to confirm
the eligible amount of HOME-ARP funds committed to the Project.
An environmental review in compliance with the National Environmental Policy Act
is required prior to entering into a Loan Agreement for the HOME -ARP funds
committed to the Project.
The HOME-ARP Loan shall also require specific HOME-ARP designated units in the
Project. The City’s preliminary HOME-ARP Cost Allocation Analysis suggests that
approximately nine (9) units in the Project will be designated as HOME-ARP assisted-
units.
The Inclusionary Loan shall have the same terms above and be for a maximum principal
amount of $484,000, or as much thereof as is disbursed for relocation benefits for current
WISEPlace residents in the event the residents are not matched with an alternative
housing or shelter option prior to the start of construction and would need to vacate the
site, provided from the Inclusionary Housing Fund. If relocation assistance is to be
provided to the site occupants per the same requirements as the Uniform Relocation Act
(“URA”) or California Relocation Regulations, the Owner will also contribute an equal
amount, dollar for dollar, in matching funds to the Inclusionary Loan. For example, if the
twenty (20) current WISEPlace residents are provided relocation assistance as calculated
per the requirements of the URA and California State Relocation Regulations, the
estimated total for relocation payments will be $968,000, to be paid equally by the
Inclusionary Loan and the Owner. The Owner will work with staff to relocate their 20
WISEPlace residents prior to the start of construction of the pro ject. The Inclusionary
Loan is for relocation purposes only, so if the Owner is able to relocate residents prior to
the start of construction of the project, then the Inclusionary Loan funds shall be
EXHIBIT 2
P a g e | 4
proportionately reduced, or will not be required at all if all residents are rel ocated prior to
the commencement of the project.
Project-Based Vouchers:
The basic terms of the award are as follows:
Funding Source: The twenty-five (25) PBVs will be funded exclusively out of the
tenant-based voucher program annual budget authority received by the Housing
Authority from the U.S. Department of Housing and Urban Development (HUD).
Rents: The PBV Housing Assistance Payments (HAP) Contract rents below are
preliminary and contingent upon a reasonable rent determination to be conducted by
the Housing Authority at the time of execution of the HAP Contract:
o Studio: $1,682
In accordance with HUD regulations and SAHA’s Administrative Plan, these rents
are subject to review prior to the execution of a HAP contract.
Annual Amount: The Project will receive PBVs for twenty-five (25) units:
Unit Size
30% AMI
No. Units Proposed Rent
Studio 25 $1,682
The estimated maximum annual amount received under this award is $560,100.
These estimates assume 100% occupancy of the units over the twelve-month period
with contract rent amounts limited to the current applicable Santa Ana Housing
Authority Payment Standard.
Term: The HAP Contract will have a term of twenty (20) years. Any time before the
expiration of the HAP Contract, the Developer may request an additional twenty (20)
years, subject to a determination by the Housing Authority that it is appropriate to
continue providing permanent supportive housing for chronically homeless
individuals or to expand housing opportunities and HUD funding. Subsequent
extensions are subject to the same requirements.
Units Receiving Assistance: The maximum number of units receiving PBV
assistance will be twenty-five (25).
Local Preference:
o All individuals and families shall be chronically homeless individuals with,
subject to compliance with applicable fair housing laws, a preference for
EXHIBIT 2
P a g e | 5
local residents from the City of Santa Ana based on the City’s local
residency screening criteria.
o An absolute preference shall be for current WISEPlace residents who are
unable to be relocated prior to the start of construction and who qualify for
relocation assistance paid for by the Inclusionary Loan and the Owner
until the completion of the project. The “absolute” nature of this
preference means that these current WISEPlace shelter residents will be
selected if determined eligible for occupancy at the project before any
other applicants are to be determined eligible.
CDBG Loan Forgiveness:
In 1996, the City provided the Owner a $900,000 loan of Community Development Block
Grant (“CDBG”) funds (“CDBG Loan”) to finance the rehabilitation of the site for the
purposes of providing permanent affordable rental housing. The CDBG Loan was
structured with a 55-year term and a 1% simple interest rate. The loan repayments were
to be made from 50% of the project’s residual receipts.
In 2001, the City amended the terms of the CDBG Loan. At that time, the outstanding
principal balance of the loan was set at $916,265, which consisted of t wo components:
(1) a $250,000 component, and (2) a $666,616 component. The amended promissory
note set the loan term at 55 years – starting in 2002 and ending in 2056.
The current outstanding CDBG Loan balance is currently $723,446.41. Per the terms of
the amended promissory note, the Owner is required to continue paying annual interest
only payments until the end of the loan term in 2056. The entire balance of the CDBG
Loan ($723,446.41 plus interest) will become due and payable at that time. Following the
fulfillment of the conditions provided herein, the entirety of the CDBG Loan will be forgiven
by the City, including any interest that may have accrued since the date of this letter.
General Provisions:
The City's obligation to provide the City Assistance and CDBG Loan Forgiveness to the
Project is subject to each of the following conditions:
Developer must provide proof that it has secured all of its remaining financing for
the development of the Project in the form of enforceable fund ing commitments,
which may include 9% or 4% Federal Low Income Housing Tax Credits, State
Housing Tax Credits, a commitment of affordable housing funds from the County
of Orange or State of California, Section 8 project-based vouchers from the Orange
County Housing Authority, or any other funding source needed in the Project’s
capital stack to develop the Project before staff will return to the City Council for
consideration of the HOME-ARP Loan Agreement and Inclusionary Loan
Agreement.
EXHIBIT 2
P a g e | 6
100% of the affordable units (less one (1) manager’s unit) in the Project will be
restricted to extremely low-income, chronically homeless households at 30% of the
Area Median Income.
The Project consists of forty-seven (47) permanent supportive housing units for
chronically homeless individuals and families. All individuals and families shall
be referred from the Orange County Coordinated Entry System except for those
current WISEPlace residents who qualify for an absolute preference.
The rent standards for the Project must comply with the strictest of the standards
imposed by TCAC and the HOME Program regulations, or other funding sources
contributed to the Project, as applicable and with respect to the units assisted by
each applicable funding source.
All provided funding and Project requirements shall conform to the City’s most
recently adopted Affordable Housing Funds Policies and Procedures, unless
alternative requirements are expressly provided in the executed Loan Agreements
for the City Assistance or any other documents related to the development of the
Project.
Approval of all required entitlements and discretionary actions, to allow the
adaptive reuse and construction (as applicable) of a forty-eight (48) unit affordable
housing complex, with forty-seven (47) units restricted for chronically homeless
individuals, to be located at 1411 N. Broadway, Santa Ana, CA 92706 (APN 398-
523-04).
The City's obligation to provide the City Assistance and CDBG Loan Forgiveness
is and shall remain subject to all covenants, conditions, and restrictions set forth in
the Loan Agreements, 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.
Review and approval of the Loan documents evidencing the City Assistance by
the City Council including the Loan Agreement(s), Promissory Note(s),
Affordability Restrictions and Deed(s) of Trust.
Developer must provide proof that it has received and reviewed three general
contractor bids, and that all subcontractors are competitively bid out. Specifically, the
Developer must obtain three general contractor bids; all subcontractors must be
competitively bid out; and the City must review and approve the final general
contractor’s contract.
Execution of HAP Contracts and all necessary documents for the PBV’s.
Compliance with applicable federal regulations set forth in 24 Code of Federal
Regulations (CFR) Part 570 and 24 CFR Part 983, applicable HOME-ARP
requirements, and all other federal, state, and local laws and regulations.
EXHIBIT 2
P a g e | 7
Developer, at its sole cost and expense, will be responsible for securing any and all
permits and discretionary approvals that may be required for the Pro ject by the City or
any other federal, state, or local governmental entity having jurisdiction over the Property
or Project. Notably, this pre-commitment letter shall not obligate the City or any
department thereof to approve any application o r request for or take any other action in
connection with any planning approval, permit or other action necessary for the
construction, rehabilitation, installation or operation of the Project.
This pre-commitment letter for the Project will expire on June 21, 2024.
If you have any questions or require any additional information regarding this pre -
commitment letter, please contact Judson Brown, Housing Division Manager, by
telephone at (714) 667-2241 or by e-mail at jbrown@santa-ana.org.
Sincerely,
On behalf of the City of Santa Ana:
________________________________
Kristine Ridge
City Manager
On behalf of the Housing Authority of
the City of Santa Ana:
________________________________
Steven A. Mendoza
Executive Director
Attest:
_________________________________
Daisy Gomez
Clerk of the Council / Recording Secretary
APPROVED AS TO FORM
Sonia R. Carvalho
Authority General Counsel
___________________________
By: Ryan O. Hodge
Assistant City Attorney
EXHIBIT 2
500 SOUTH GRAND AVENUE, SUITE 1480 LOS ANGELES, CALIFORNIA 90071 PHONE 213.622.8095
2206004.SA.TRB
WWW.KEYSERMARSTON.COM 19090.018.025
ADVISORS IN:
Real Estate
Affordable Housing
Economic Development
BERKELEY
A. Jerry Keyser
Debbie M. Kern
David Doezema
LOS ANGELES
Kathleen H. Head
James A. Rabe
Gregory D. Soo-Hoo
Kevin E. Engstrom
Julie L. Romey
Tim R. Bretz
SAN DIEGO
Paul C. Marra
MEMORANDUM
To: Judson Brown, Housing Division Manager
City of Santa Ana
From: Tim Bretz
Date: June 4, 2022
Subject: WISEPlace Permanent Supportive Housing – Preliminary Financial Gap
Analysis
At your request, Keyser Marston Associates, Inc. (KMA) prepared a preliminary financial
gap analysis for the project proposed to be developed at 1411 North Broadway (Site) by
WISEPlace and Jamboree Housing Corporation (collectively “Developer”). The Developer
is proposing to construct a 48-unit apartment project with 47 units designated as
Permanent Supportive Housing (PSH) units and restricted to extremely-low income
households (Project). One unit will be unrestricted and reserved for an on-site manager.
The Developer is requesting financial assistance from the City of Santa Ana (City) for the
purposes of developing the Project. The purpose of this KMA analysis is to evaluate the
Developer’s request for financial assistance.
EXECUTIVE SUMMARY
Estimated Financial Gap
The results of the KMA preliminary financial gap analysis are compared to the
Developer’s financial assistance request in the following table:
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 2
2206004.SA.TRB
19090.018.025
KMA Developer Difference
Total Development Costs $28,726,000 $28,785,000 ($59 ,000)
Outside Funding Sources 23,529,000 23,529,000 -0-
Financial Gap $5,197,000 $5,256,000 ($59,000)
As shown in the preceding table, KMA estimates the Project’s financial gap at $5.20
million, which is $59,000, or approximately 1% less than the Developer’s financial gap
estimate. This differential can be considered inconsequential for a Project of this
magnitude.
Proposed Funding Sources
The following summarizes the proposed funding sources for the Project:
1. The Housing Authority of the City of Santa Ana (Housing Authority) proposes to
provide twenty-five (25) Section 8 Project-Based Vouchers (PBVs) that are
allocated to the Housing Authority by the United States Department of Housing
and Urban Development (HUD).
2. The Developer is proposing to apply for 9% Federal Low Income Housing Tax
Credits (Tax Credits) that are competitively awarded by the California Tax Credit
Allocation Committee (TCAC). The net Federal Tax Credit proceeds are estimated
at $20.05 million.
3. The Developer was awarded a $2.48 million loan of Mental Health Services Act
(MHSA) funds from the Orange County Housing Finance Trust (OCHFT).
4. The Developer applied for a $1.0 million loan of Affordable Housing Program
(AHP) funds that are awarded by the Federal Home Loan Bank of San Francisco.
PROJECT DESCRIPTION
WISEPlace currently owns the Site, and uses the location for their headquarters. The
property has earned a Landmark Designation for serving women as the former YWCA.
The Site is improved with a one-story structure facing Broadway and a two-story
structure along Sycamore Street. As the Landmark Designation status prohibits
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 3
2206004.SA.TRB
19090.018.025
demolition and redevelopment of the property, the Developer is proposing an adaptive
reuse of the existing one-story structure. The Developer proposes to demolish the
existing two-story structure along Sycamore Street, which would then be replaced with
a newly constructed four-story building.
In order to develop the Project, WISEPlace proposes to ground lease the Site to the
Developer (partnership between WISEPlace and Jamboree Housing Corporation) for $1
per year. The ground lease will be for a term of at least 65 years.
The proposed scope of development can be described as follows:
1. The Site is comprised of 0.6 acres, or 26,136 square feet of land area.
2. The Project’s unit mix is as follows:
Number of
Units
Unit Size
(SF)
Studio Units 47 410
Two-Bedroom Units 1 979
Total / Weighted Average 48 422
3. The gross building area (GBA) is estimated at 31,428 square feet, which is
comprised of the following:
a. The residential living area is estimated at 20,267 square feet;
b. The community room / leasing / social service GBA is estimated at 6,502
square feet; and
c. The circulation / common area GBA is estimated at 4,659 square feet.
4. The Project includes 20 at-grade structured parking spaces, which equates to
approximately 0.4 parking spaces per unit.
5. The Project’s proposed affordability mix is as follows:
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 4
2206004.SA.TRB
19090.018.025
Tax Credit @ 30% Median / Low HOME 47
Unrestricted Manager’s Unit 1
Total Units 48
FINANCIAL GAP ANALYSIS
KMA prepared a pro forma analysis to assist in evaluating the Developer’s proposal. The
analysis is located at the end of this memorandum, and is organized as follows:
Table 1: Estimated Development Costs
Table 2: Stabilized Net Operating Income
Table 3: Financial Gap Calculation
Table 4: Capitalized Operating Subsidy Reserve Analysis
Table 5: Cash Flow Analysis
ESTIMATED DEVELOPMENT COSTS (TABLE 1)
KMA reviewed the Developer’s development cost estimates, and then independently
prepared a pro forma analysis for the Project. The resulting development costs are
estimated as follows:
Direct Costs
The direct cost estimates assume that the Project will be subject to State of California
and/or Federal Davis Bacon prevailing wage requirements. The direct costs applied in
this analysis are based on estimates provided by the Developer and can be summarized
as follows:
1. The Developer estimated the off-site improvement costs at $463,000. City staff
should verify the scope and cost of the off-site improvements required to serve
the Project.
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 5
2206004.SA.TRB
19090.018.025
2. The on-site improvement costs are estimated at $54 per square foot of land
area, or $1.41 million. This includes the demolition costs of one existing building.
3. The residential building costs are estimated at $425 per square foot of GBA, or
$13.36 million. This includes the podium parking costs for 20 podium parking
spaces. In addition, this line item includes the adaptive reuse costs for the
existing one-story building which will remain on the Site.
4. A $192,000 allowance for furnishing, fixtures and equipment is provided.
5. A 14% allowance for contractor fees and general requirements is provided,
which is the maximum allowed by TCAC.
6. An allowance for construction bonds / general liability insurance at 2% of
construction costs is provided.
7. A direct cost contingency allowance equal to 5% of other direct costs is provided.
KMA estimates the total direct costs at $18.85 million. This equates to $597 per square
foot of GBA
It is important to note that the Project’s direct cost estimates are at the high end of the
typical range for similar affordable housing projects. Per the Developer, they worked
with their in-house general contractor to estimate the direct costs used in this analysis.
The Developer stated that their cost estimates are based on similar developments that
were recently bought out and also based on feedback from major subcontractors with
regards to current pricing. However, the construction industry is currently experiencing
exponential increases in costs due to supply chain issues and labor shortages.
In addition, the Developer noted that the Project consists of a hybrid of adaptive
reuse/rehabilitation and new construction. Based on the Developer’s experience,
unforeseen conditions are often discovered when opening up existing walls,
foundations, roofs, etc. that lead to increased costs. Furthermore, the historic nature of
the building adds additional complexity, as the Developer will need to work around and
refurbish existing features. The direct cost budget includes additional costs such as
support for the existing roof while removing load-bearing walls and replacing items that
are in disrepair with items that match the building’s historic character.
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 6
2206004.SA.TRB
19090.018.025
Prior to formally committing any funds, the City should review the general contractor’s
contract to confirm the validity of the cost estimates used in this analysis. If the costs
identified in the general contractor’s contract differ from the estimates used in this
analysis, this analysis may need to be updated accordingly.
Indirect Costs
1. The architecture, engineering and consulting costs are estimated at 7% of direct
costs
2. The Developer estimates the public permits and fees costs at $1.49 million, or
approximately $31,000 per unit. City staff should verify the accuracy of this
estimate.
3. The taxes, insurance, legal and accounting costs are estimated at 3% of direct
costs.
4. The Developer included an $85,000 allowance for relocation costs in the
development budget.
5. An approximately $2,700 per unit allowance for marketing and leasing costs is
provided.
6. The Developer Fee is set at $2.20 million, which is the maximum amount allowed
to be included in the Project by TCAC.
7. An indirect cost contingency allowance equal to 10% of other indirect costs is
provided.
KMA estimates the total indirect costs at $6.25 million.
Financing Costs
The financing costs for the Project are estimated as follows:
1. The construction period and absorption period interest costs are estimated at
$1.16 million. This estimate is based on the following assumptions:
a. A $16.58 million construction loan;
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 7
2206004.SA.TRB
19090.018.025
b. A 5.25% interest rate;
c. A 20-month construction period with a 50% average outstanding loan
balance; and
d. A 10-month absorption/conversion period with a 100% average
outstanding balance.
2. The financing fees for the construction loan are estimated at 1.25 points, or
$207,000.
3. The following capital reserves are included:
a. A $2.10 million Capitalized Operating Subsidy Reserve (COSR) is provided.
The COSR was sized based on the estimated operating deficits over a 20-
year period (See Table 4 for KMA estimate).
b. A $146,000 capitalized operating reserve, which is equal to three months
of operating expenses.
4. The Tax Credit fees are estimated at $107,000 based on the following:
a. A $2,000 application fee;
b. A $410 per unit monitoring fee; and
c. Four percent (4%) of gross Tax Credit proceeds for one year.
KMA estimates the total financing costs at $3.72 million.
Total Development Costs
As shown in Table 1, KMA estimates the total development costs at $28.73 million,
which equates to approximately $598,500 per unit. This is $59,000 less than the
Developer’s estimate, which equates to a less than 1% differential.
It is important to note that the total development costs include a $2.10 million COSR,
which will be used to fund operations over a 20-year period. When the $2.10 million is
removed from the total development costs, the total construction costs equate to
$26.63 million, or $554,700 per unit.
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 8
2206004.SA.TRB
19090.018.025
In addition, as noted above, the direct cost estimates are at the high end of the typical
range. KMA recommends that the City require the Developer to receive three general
contractor bids, and ensure that all subcontractors are competitively bid out. If the
costs included in the final general contractor contract differ from those utilized in this
analysis, this analysis may need to be updated accordingly.
STABILIZED NET OPERATING INCOME (TABLE 2)
The Project’s funding sources include Tax Credits, an OCHFT Loan, and an AHP Loan. In
addition, the City intends to utilize HOME – American Rescue Plan (HOME-ARP) funds
for the Project. These programs publish the applicable income limits for households that
are qualified for reside in the development.
TCAC publishes rent standards for projects that receive Tax Credits. In addition, the
HOME Program publishes rent standards that KMA recommends the City utilize to
comply with HOME-ARP regulations. Given that the Project is structured as a 100% PSH
project reserved for homeless households, the Developer assumes that the tenants will
pay rent payments equal to 30% of Supplemental Security Income (SSI).
The Developer will be required to adhere to the strictest of the standards imposed by
the funding sources contributed to the Project.
Achievable Rent Income
The Project rents must adhere to the most restrictive of the requirements imposed by
the funding sources. The rents used in this analysis are based on 2022 information
published by HUD and TCAC. The maximum allowable rents, net of the appropriate
utility allowances, are estimated as follows:1
1 The Project will pay for all utilities. Therefore, no utility allowance is deducted from the rents.
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 9
2206004.SA.TRB
19090.018.025
Rent Restriction
Studio
Units
30% AMI TCAC / Low HOME / 30% SSI (PSH)2
Number of Units 47
Low HOME Rent $1,186
TCAC Rent $711
30% SSI Rent 3 $286
Applicable Rent $286
Estimated Effective Gross Income
KMA estimates the Project’s effective gross income (EGI) at approximately $583,300
based on the following assumptions:
1. The gross rental income is estimated at $161,300.
2. The PBV subsidy overhang is estimated at $418,800 based on a payment
standard of $1,682 for studio units.
3. Laundry and miscellaneous income is estimated to average $9 per unit per
month for a total of $5,200 per year.
4. A vacancy and collection allowance equal to 7% of gross rental income is
provided, which equates to $41,000.
5. The first year COSR withdrawal is estimated at $39,000
Estimated Operating Expenses
KMA estimates the Project’s operating expenses at approximately $583,400 based on
the following assumptions:
1. The general operating expenses are estimated at approximately $8,450 per unit
per year. This is at the high end of the typical range for similar affordable
2 AMI = Area Median Income
3 Per Developer.
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 10
2206004.SA.TRB
19090.018.025
housing projects. Per the Developer, the Heroes Landing project currently
operates at $7,200 per unit. Heroes Landing includes 76 units, and as such,
economies of scale will be lost at the Project due to its smaller size. In addition,
given that the Project is 100% PSH units, the Developer is implementing voice-
down security measures, which adds $36,000 to the annual operating budget.
2. KMA assumes the Developer will apply for the property tax abatement that is
accorded to non-profit housing organizations that own and operate apartment
units that are restricted to households earning less than 80% of the Median. The
Developer estimates that the Project will incur $6,700 per year in property tax
assessment override costs.
3. The Developer is proposing to provide social services at an estimated cost of
$149,800 per year, or $3,170 per PSH unit. This estimate is at the high end of the
typical range. Per the Developer, this budget includes a 1.5 full-time equivalent
(FTE) case manager, a 0.5 FTE resident services coordinator, and miscellaneous
expenses such as staff benefits, supplies and indirect costs including
administration, insurance, legal and accounting. The City should develop a social
services plan with the Developer to ensure that the social services provided to
the Project align with the Developer’s proposed social services budget.
4. The Project will be subject to an OCHFT monitoring fee set at $4,800 per year.
5. The Developer provided an allowance for replacement reserve deposits at $360
per unit per year, which meets the requirements of both TCAC and the OCHFT
Program.
Stabilized Net Operating Income
The Project’s effective gross income is estimated at $583,000, and the operating
expenses are estimated at $583,000. This results in an estimated stabilized net
operating income of $0. It’s important to note, that the Project’s NOI would be negative
without the subsidy provided by the COSR.
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 11
2206004.SA.TRB
19090.018.025
FINANCIAL GAP CALCULATION
The financial gap is estimated by deducting the available outside funding sources from
the Project’s total development costs. The outside funding sources anticipated to be
received by the Project are described in the following sections of this analysis.
Available Funding Sources
Permanent Loan
The Project’s NOI does not support a permanent loan.
Tax Credit Proceeds
Tax Credit Basis
KMA estimates the net Tax Credit proceeds at $20.05 million. This estimate is based on
the following assumptions:
1. The Project’s eligible Tax Credit basis is equal to the lesser of the depreciable
costs for the 48 Tax Credit units, or the threshold basis limits established by
TCAC. In this case, the Project’s depreciable costs are less than the threshold
basis limits allowed by TCAC.
2. To increase the competitiveness of the Project’s Tax Credit application in the
TCAC tiebreaker process, the Developer is proposing to voluntarily exclude a
portion of the eligible Tax Credit basis.
3. The Project is located in a designated “Difficult to Develop” census tract.
4. The current Tax Credit regulations set the annual Tax Credit rate at 9.0%. This
rate is applied over the 10-year Tax Credit period.
5. 100% of the Project’s building area is located in units that qualify for Tax Credits.
6. The net syndication value supported by the Tax Credit is ultimately determined
based on competitive market conditions and on the timing of the disbursements.
Based on currently available information, KMA and the Developer estimate the
proceeds at $0.94 per gross Federal Tax Credit dollar.
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 12
2206004.SA.TRB
19090.018.025
OCHFT Loan
The Developer received an award for a $2.48 million loan from OCHFT.
AHP Loan
The Developer applied for a $1.0 million loan of AHP funds.
Deferred Developer Fee
The Developer is not proposing to defer any of the Developer Fee as a permanent
funding source.
Total Available Funding Sources
As shown in Table 3, KMA estimates the outside funding sources available to the Project
to be $23.53 million.
Estimated Financial Gap
Based on the preceding analysis, KMA estimates the Project’s financial gap as follows:
Total Development Costs $28,726 ,000
(Less) Total Available Outside Funding Sources (23,529,000)
Financial Gap $5,197,000
Per Unit $108,300
As shown in the table above, KMA estimates that the Project exhibits a $5.20 million
financial gap. In comparison, the Developer is requesting $5.26 million in financial
assistance from the City. This equates to a $59,000, or approximately 1% differential,
which can be considered inconsequential for a Project of this magnitude.
CAPITALIZED OPERATING SUBSIDY RESERVE ANALYSIS (TABLE 4)
KMA also conducted a COSR analysis to estimate the amount of capitalized operating
assistance necessary to sustain the Project’s operations for a 20-year period.
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 13
2206004.SA.TRB
19090.018.025
The following describes the basic cash flow assumptions:
1. Year 1 is based on the pro forma rent and expense assumptions presented in the
stabilized NOI analysis (Table 2).
2. Additional revenue and expense assumptions are as follows:
a. The affordable rental income, PBV subsidy income and miscellaneous
income are escalated at 2.0% per year.
b. The general operating expenses and OCHFT monitoring fees are escalated
at 3.0% per year.
c. The property taxes are escalated at 2.0% per year.
d. The social service expenses are escalated at 2.5% per year.
e. The replacement reserve deposits remain constant.
As shown in Table 4, the Project’s NOI is negative in Year 1, and becomes increasingly
negative over the 20-year period. KMA estimates that the operating deficits during this
20-year period total $2.12 million. In comparison, the Developer is assuming a $2.10
million COSR for the Project, which is approximately equal to the KMA estimate.
CASH FLOW ANALYSIS (TABLE 5)
KMA prepared a 55-year cash flow analysis for the Project. The cash flow analysis is
based on the assumptions outlined above. As shown in the cash flow, the Project
operates at a break-even amount during the first 20 years due to the withdrawal of
funds from the COSR.
However, it is important to note that the COSR is expected to be fully expended by Year
20. At that time, the Project’s NOI will become immediately negative, and the Project
will not be operationally feasible.
As such, the City must anticipate that the Project will require additional operating
subsidies after Year 20, or the Project will need to be restructured to generate more
rental income. Furthermore, under the current structure, the Project does not generate
any residual receipts payments.
EXHIBIT 3
Judson Brown, City of Santa Ana June 4, 2022
WISEPlace PSH Preliminary Financial Gap Analysis Page 14
2206004.SA.TRB
19090.018.025
CONCLUSIONS / RECOMMENDATIONS
The following summarizes the conclusions of the KMA analysis:
1. Based on the currently available information, it is KMA’s conclusion that the
Developer’s request for $5.26 million in financial assistance from the City is
supported by the Project’s economics.
2. It is important to note that, with the use of a COSR, the Project is structured to
be operationally feasible for only 20 years. After Year 20, the Project’s NOI is
expected to be negative. As such, the Project will need to identify additional
operating subsidies or complete a financial restructuring by that time.
3. The Developer’s direct costs estimates are at the high end of the typical range.
As such, KMA recommends that the City require:
a. The Developer should obtain three general contractor bids;
b. All subcontractors should be competitively bid out; and
c. The City should review the final general contractor’s contract, and if the
costs differ from those used in this analysis, this analysis may need to be
updated.
4. The City will receive Regional Housing Needs Assessment (RHNA) credit for 47
Extremely Low Income units.
EXHIBIT 3
TABLE 1
ESTIMATED DEVELOPMENT COSTS
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Direct Costs 1
Off-site Improvements 2 $463,000
On-site Improvements 26,136 Sf Land $54 /Sf Land 1,410,000
Residential Building Costs 31,428 Sf GBA $425 /SF GBA 13,357,000
Furnishings, Fixtures & Equipment 192,000
Contractor Fees / General Requirements 14%Construction Costs 2,132,000
General Liability Insurance / Const Bonds 2%Construction Costs 305,000
Contingency Allowance 5%Other Direct Costs 893,000
Total Direct Costs 31,428 Sf GBA $597 /Sf GBA $18,752,000
II.Indirect Costs
Architecture, Engineering & Consulting 7%Direct Costs $1,219,000
Public Permits & Fees 2 48 Units $31,049 /Unit 1,490,000
Taxes, Insurance, Legal & Accounting 3%Direct Costs 563,000
Relocation Costs 85,000
Marketing & Leasing 48 Units $2,667 /Unit 128,000
Developer Fee 3 11%Eligible Costs 2,200,000
Contingency Allowance 10%Other Indirect Costs 569,000
Total Indirect Costs $6,254,000
III.Financing Costs
Interest During Construction 4 $16,577,000 Loan Amount 5.25%Interest $1,160,000
Financing Fees
Construction Loan $16,577,000 Loan Amount 1.25 Points 207,000
Capitalized Reserves
COSR 5 2,100,000
Operating Reserve 3 Months Op Exp 146,000
TCAC Fees 6 107,000
Total Financing Costs $3,720,000
IV.Total Construction Costs (Net COSR)48 Units $554,700 /Unit $26,626,000
Total Development Costs 48 Units $598,500 /Unit $28,726,000
1
2 Based on Developer estimate. City staff should verify this estimate.
3 Equal to the maximum amount allowed by TCAC.
4
5 Based on Developer estimate. See TABLE 4 for KMA estimate.
6 Includes a $2,000 application fee; $410/unit monitoring fee; and 4% of the gross Tax Credit proceeds for one year.
Includes debt on the 90% of the Tax Credit Equity that will not be funded during construction. Assumes a 20-month construction period with a 50%
average outstanding balance and a 6-month absorption period with a 100% average outstanding balance.
Estimates assume that Federal Davis Bacon and/or State prevailing wage requirements will be imposed on the Project. The direct costs are based on
Developer estimates, and will need to be verified with general contractor bids.
Prepared by: Keyser Marston Associates, Inc.
File name: Santa Ana Wiseplace_6 4 22.xlsx; Pro Forma_9%; trb
EXHIBIT 3
TABLE 2
STABILIZED NET OPERATING INCOME
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Income 1
Manager's Unit 1 Unit $0 /Unit/Month $0
Base Income
Tax Credit @ 30% Median/Low HOME/30% SSI
Studio Units @ (410-Sf)47 Units $286 /Unit/Month 161,300
Section 8 Subsidy Income
Tax Credit @ 30% Median/Low HOME/30% SSI
Studio Units @ (410-Sf)25 Units $1,396 /Unit/Month 418,800
Laundry/Miscellaneous Income 48 Units $9 /Unit/Month 5,200
Gross Rent Income 48 Units $585,300
COSR Withdrawl 39,000
(Less) Vacancy & Collection Allowance 7.0%Gross Rent Income (41,000)
Effective Gross Rent Income $583,300
II.Operating Expenses
General Operating Expenses 48 Units $8,450 /Unit $405,600
Property Taxes 2 48 Units $139 /Unit 6,700
Social Services 47 Affordable Units $3,170 /Affordable Unit 149,000
OCHFT Monitoring Fee 48 Units $100 /Unit 4,800
Replacement Reserve 48 Units $360 /Unit 17,300
Total Operating Expenses 48 Units $12,154 /Unit $583,400
III.Stabilized Net Operating Income ($100)
1
2
Based on Orange County 2022 Incomes distributed by HUD. As pertinent, the rents are based on rents published in 2022 by TCAC and the HOME
Program. The Project will pay all utilities.
Assumes the Developer will apply for the property tax welfare exemption accorded to non-profit housing organizations that own and operate
apartment units restricted to households earning no more than 80% AMI.
Prepared by: Keyser Marston Associates, Inc.
File name: Santa Ana Wiseplace_6 4 22.xlsx; Pro Forma_9%; trb
EXHIBIT 3
TABLE 3
FINANCIAL GAP CALCULATION
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Available Funding Sources
Federal 9% Tax Credit Equity 1
Gross Tax Credit Value $21,331,000
Syndication Rate $0.94 /Tax Credit Dollar
Net Tax Credit Equity $20,049,000
OC Housing Finance Trust 2 $2,480,000
AHP 2 $1,000,000
Deferred Developer Fee 2 $0
Total Available Funding Sources $23,529,000
II.Financial Gap Calculation
Total Development Costs $28,726,000
(Less) Total Available Funding Sources (23,529,000)
III.Financial Gap 48 Units $108,300 /Unit $5,197,000
1
2 Based on Developer estimate.
Assumes a $18.2 million eligible basis, plus a 130% difficult-to-develop premium, a 9.0% Tax Credit rate and an applicable fraction of 100%.
Prepared by: Keyser Marston Associates, Inc.
File name: Santa Ana Wiseplace_6 4 22.xlsx; Pro Forma_9%; trb
EXHIBIT 3
TABLE 4
CAPITALIZED OPERATING SUBSIDY RESERVE ANALYSIS
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
I.Gross Residential Income 1
Gross Rent Income $161,300 $164,526 $167,817 $171,173 $174,596 $178,088 $181,650 $185,283 $188,989 $192,768 $196,624
Section 8 Subsidy Income 418,800 427,176 435,720 444,434 453,323 462,389 471,637 481,070 490,691 500,505 510,515
Laundry/Miscellaneous Income 5,200 5,304 5,410 5,518 5,629 5,741 5,856 5,973 6,093 6,214 6,339
(Less) Vacancy & Collection Allowance (40,971)(41,790)(42,626)(43,479)(44,348)(45,235)(46,140)(47,063)(48,004)(48,964)(49,943)
Effective Gross Rent Income $544,329 $555,216 $566,320 $577,646 $589,199 $600,983 $613,003 $625,263 $637,768 $650,524 $663,534
II.Operating Expenses 2
General Operating Expenses $405,600 $417,768 $430,301 $443,210 $456,506 $470,202 $484,308 $498,837 $513,802 $529,216 $545,092
Property Taxes 6,700 6,834 6,971 7,110 7,252 7,397 7,545 7,696 7,850 8,007 8,167
Social Services 149,000 152,725 156,543 160,457 164,468 168,580 172,794 177,114 181,542 186,081 190,733
OCHFT Monitoring Fee 4,800 4,944 5,092 5,245 5,402 5,565 5,731 5,903 6,080 6,263 6,451
Replacement Reserve 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300
Total Operating Expenses $583,400 $599,571 $616,207 $633,322 $650,929 $669,043 $687,679 $706,851 $726,575 $746,867 $767,743
III.Net Operating Income ($39,071)($44,355)($49,887)($55,675)($61,730)($68,060)($74,676)($81,588)($88,806)($96,343)($104,209)
IV.Required COSR Amount (20-Year Total)($2,116,781)
1
2
The affordable rents, PBV subsidy and
miscellaneous income are assumed to increase
by 102.0%/year. Assumes Year 1 is at
stabilization.
General operating expenses are assumed to
increase by 103.0%/year, property taxes at
102.0%/year, social services at 102.5%/year and
replacement reserves remain constant.
EXHIBIT 3
TABLE 4
CAPITALIZED OPERATING SUBSIDY RESERVE ANALYSIS
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Gross Residential Income 1
Gross Rent Income
Section 8 Subsidy Income
Laundry/Miscellaneous Income
(Less) Vacancy & Collection Allowance
Effective Gross Rent Income
II.Operating Expenses 2
General Operating Expenses
Property Taxes
Social Services
OCHFT Monitoring Fee
Replacement Reserve
Total Operating Expenses
III.Net Operating Income
IV.Required COSR Amount (20-Year Total)
1
2
The affordable rents, PBV subsidy and
miscellaneous income are assumed to increase
by 102.0%/year. Assumes Year 1 is at
stabilization.
General operating expenses are assumed to
increase by 103.0%/year, property taxes at
102.0%/year, social services at 102.5%/year and
replacement reserves remain constant.
Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
$200,556 $204,567 $208,659 $212,832 $217,089 $221,430 $225,859 $230,376 $234,984
520,725 531,140 541,762 552,598 563,650 574,923 586,421 598,150 610,113
6,466 6,595 6,727 6,861 6,999 7,138 7,281 7,427 7,575
(50,942)(51,961)(53,000)(54,060)(55,141)(56,244)(57,369)(58,516)(59,687)
$676,805 $690,341 $704,148 $718,231 $732,595 $747,247 $762,192 $777,436 $792,985
$561,445 $578,289 $595,637 $613,506 $631,912 $650,869 $670,395 $690,507 $711,222
8,331 8,497 8,667 8,841 9,017 9,198 9,382 9,569 9,761
195,501 200,388 205,398 210,533 215,796 221,191 226,721 232,389 238,199
6,644 6,844 7,049 7,260 7,478 7,703 7,934 8,172 8,417
17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300
$789,221 $811,318 834,052 $857,440 $881,504 $906,261 $931,731 $957,937 $984,898
($112,416)($120,977)($129,904)($139,210)($148,908)($159,013)($169,539)($180,501)($191,914)
EXHIBIT 3
TABLE 5
CASH FLOW ANALYSIS
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Gross Residential Income 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Rent Income $161,300 $164,526 $167,817 $171,173 $174,596 $178,088 $181,650 $185,283 $188,989 $192,768
Section 8 Subsidy Income 418,800 427,176 435,720 444,434 453,323 462,389 471,637 481,070 490,691 500,505
City COSR Withdrawl 2 39,071 44,355 49,887 55,675 61,730 68,060 74,676 81,588 88,806 96,343
Laundry/Miscellaneous Income 5,200 5,304 5,410 5,518 5,629 5,741 5,856 5,973 6,093 6,214
(Less) Vacancy & Collection Allowance (40,971)(41,790)(42,626)(43,479)(44,348)(45,235)(46,140)(47,063)(48,004)(48,964)
Effective Gross Rent Income $583,400 $599,571 $616,207 $633,322 $650,929 $669,043 $687,679 $706,851 $726,575 $746,867
II.Operating Expenses 2
General Operating Expenses $405,600 $417,768 $430,301 $443,210 $456,506 $470,202 $484,308 $498,837 $513,802 $529,216
Property Taxes 6,700 6,834 6,971 7,110 7,252 7,397 7,545 7,696 7,850 8,007
Social Services 149,000 152,725 156,543 160,457 164,468 168,580 172,794 177,114 181,542 186,081
OCHFT Monitoring Fee 4,800 4,944 5,092 5,245 5,402 5,565 5,731 5,903 6,080 6,263
Replacement Reserve 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300
Total Operating Expenses $583,400 $599,571 $616,207 $633,322 $650,929 $669,043 $687,679 $706,851 $726,575 $746,867
III.Net Operating Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
IV.Cash Flow Available for Contingent Payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(Less) Asset and Partnership Fees 4 0 0 0 0 0 0 0 0 0 0
(Less) Deferred Developer Fee 0 0 0 0 0 0 0 0 0 0
V.Cash Flow after Contingent Payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Nominal Dollars $0 $0 NPV @ 6% Discount Rate
VI.Residual Receipt Payments to CIty $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Nominal Dollars $0 $0 NPV @ 6% Discount Rate
VII.Residual Receipt Payments to OCHFT $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Nominal Dollars $0 $0 NPV @ 6% Discount Rate
VIII.Net Cash Flow to Developer $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Nominal Dollars $0 $0 NPV @ 6% Discount Rate
1
2
3
4
The affordable rents and miscellaneous income
are assumed to increase by 102.0%/year.
Assumes Year 1 is at stabilization.
General operating expenses are assumed to
increase by 103.0%/year, property taxes at
102.0%/year, social services at 102.5%/year and
replacement and operating reserves remain
constant.
Assumes fees increase at 103.0%/year.
SEE TABLE 4
EXHIBIT 3
TABLE 5
CASH FLOW ANALYSIS
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Gross Residential Income 1
Gross Rent Income
Section 8 Subsidy Income
City COSR Withdrawl 2
Laundry/Miscellaneous Income
(Less) Vacancy & Collection Allowance
Effective Gross Rent Income
II.Operating Expenses 2
General Operating Expenses
Property Taxes
Social Services
OCHFT Monitoring Fee
Replacement Reserve
Total Operating Expenses
III.Net Operating Income
IV.Cash Flow Available for Contingent Payments
(Less) Asset and Partnership Fees 4
(Less) Deferred Developer Fee
V.Cash Flow after Contingent Payments
Nominal Dollars
VI.Residual Receipt Payments to CIty
Nominal Dollars
VII.Residual Receipt Payments to OCHFT
Nominal Dollars
VIII.Net Cash Flow to Developer
Nominal Dollars
1
2
3
4
The affordable rents and miscellaneous income
are assumed to increase by 102.0%/year.
Assumes Year 1 is at stabilization.
General operating expenses are assumed to
increase by 103.0%/year, property taxes at
102.0%/year, social services at 102.5%/year and
replacement and operating reserves remain
constant.
Assumes fees increase at 103.0%/year.
SEE TABLE 4
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21
$196,624 $200,556 $204,567 $208,659 $212,832 $217,089 $221,430 $225,859 $230,376 $234,984 $239,683
510,515 520,725 531,140 541,762 552,598 563,650 574,923 586,421 598,150 610,113 622,315
104,209 112,416 120,977 129,904 139,210 148,908 159,013 169,539 180,501 191,914
6,339 6,466 6,595 6,727 6,861 6,999 7,138 7,281 7,427 7,575 7,727
(49,943)(50,942)(51,961)(53,000)(54,060)(55,141)(56,244)(57,369)(58,516)(59,687)(60,881)
$767,743 $789,221 $811,318 $834,052 $857,440 $881,504 $906,261 $931,731 $957,937 $984,898 $808,844
$545,092 $561,445 $578,289 $595,637 $613,506 $631,912 $650,869 $670,395 $690,507 $711,222 $732,559
8,167 8,331 8,497 8,667 8,841 9,017 9,198 9,382 9,569 9,761 9,956
190,733 195,501 200,388 205,398 210,533 215,796 221,191 226,721 232,389 238,199 244,154
6,451 6,644 6,844 7,049 7,260 7,478 7,703 7,934 8,172 8,417 8,669
17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300
$767,743 $789,221 $811,318 834,052 $857,440 $881,504 $906,261 $931,731 $957,937 $984,898 $1,012,638
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($203,793)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
EXHIBIT 3
TABLE 5
CASH FLOW ANALYSIS
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Gross Residential Income 1
Gross Rent Income
Section 8 Subsidy Income
City COSR Withdrawl 2
Laundry/Miscellaneous Income
(Less) Vacancy & Collection Allowance
Effective Gross Rent Income
II.Operating Expenses 2
General Operating Expenses
Property Taxes
Social Services
OCHFT Monitoring Fee
Replacement Reserve
Total Operating Expenses
III.Net Operating Income
IV.Cash Flow Available for Contingent Payments
(Less) Asset and Partnership Fees 4
(Less) Deferred Developer Fee
V.Cash Flow after Contingent Payments
Nominal Dollars
VI.Residual Receipt Payments to CIty
Nominal Dollars
VII.Residual Receipt Payments to OCHFT
Nominal Dollars
VIII.Net Cash Flow to Developer
Nominal Dollars
1
2
3
4
The affordable rents and miscellaneous income
are assumed to increase by 102.0%/year.
Assumes Year 1 is at stabilization.
General operating expenses are assumed to
increase by 103.0%/year, property taxes at
102.0%/year, social services at 102.5%/year and
replacement and operating reserves remain
constant.
Assumes fees increase at 103.0%/year.
SEE TABLE 4
Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year 31 Year 32
$244,477 $249,367 $254,354 $259,441 $264,630 $269,922 $275,321 $280,827 $286,444 $292,173 $298,016
634,761 647,456 660,405 673,614 687,086 700,828 714,844 729,141 743,724 758,598 773,770
7,881 8,039 8,200 8,364 8,531 8,702 8,876 9,053 9,234 9,419 9,607
(62,098)(63,340)(64,607)(65,899)(67,217)(68,561)(69,933)(71,331)(72,758)(74,213)(75,697)
$825,021 $841,522 $858,352 $875,519 $893,030 $910,890 $929,108 $947,690 $966,644 $985,977 $1,005,696
$754,535 $777,172 $800,487 $824,501 $849,236 $874,713 $900,955 $927,983 $955,823 $984,498 $1,014,033
10,155 10,358 10,565 10,777 10,992 11,212 11,436 11,665 11,898 12,136 12,379
250,258 256,514 262,927 269,500 276,238 283,144 290,222 297,478 304,915 312,538 320,351
8,929 9,197 9,473 9,757 10,050 10,352 10,662 10,982 11,312 11,651 12,000
17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300
$1,041,178 $1,070,541 $1,100,752 $1,131,835 $1,163,816 $1,196,721 $1,230,575 $1,265,408 $1,301,247 $1,338,122 $1,376,063
($216,156)($229,019)($242,400)($256,316)($270,787)($285,830)($301,467)($317,718)($334,603)($352,145)($370,366)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
EXHIBIT 3
TABLE 5
CASH FLOW ANALYSIS
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Gross Residential Income 1
Gross Rent Income
Section 8 Subsidy Income
City COSR Withdrawl 2
Laundry/Miscellaneous Income
(Less) Vacancy & Collection Allowance
Effective Gross Rent Income
II.Operating Expenses 2
General Operating Expenses
Property Taxes
Social Services
OCHFT Monitoring Fee
Replacement Reserve
Total Operating Expenses
III.Net Operating Income
IV.Cash Flow Available for Contingent Payments
(Less) Asset and Partnership Fees 4
(Less) Deferred Developer Fee
V.Cash Flow after Contingent Payments
Nominal Dollars
VI.Residual Receipt Payments to CIty
Nominal Dollars
VII.Residual Receipt Payments to OCHFT
Nominal Dollars
VIII.Net Cash Flow to Developer
Nominal Dollars
1
2
3
4
The affordable rents and miscellaneous income
are assumed to increase by 102.0%/year.
Assumes Year 1 is at stabilization.
General operating expenses are assumed to
increase by 103.0%/year, property taxes at
102.0%/year, social services at 102.5%/year and
replacement and operating reserves remain
constant.
Assumes fees increase at 103.0%/year.
SEE TABLE 4
Year 33 Year 34 Year 35 Year 36 Year 37 Year 38 Year 39 Year 40 Year 41 Year 42 Year 43
$303,976 $310,056 $316,257 $322,582 $329,034 $335,615 $342,327 $349,173 $356,157 $363,280 $370,546
789,246 805,031 821,131 837,554 854,305 871,391 888,819 906,595 924,727 943,222 962,086
9,800 9,996 10,196 10,399 10,607 10,820 11,036 11,257 11,482 11,711 11,946
(77,211)(78,755)(80,331)(81,937)(83,576)(85,247)(86,952)(88,691)(90,465)(92,275)(94,120)
$1,025,810 $1,046,327 $1,067,253 $1,088,598 $1,110,370 $1,132,578 $1,155,229 $1,178,334 $1,201,900 $1,225,938 $1,250,457
$1,044,454 $1,075,787 $1,108,061 $1,141,303 $1,175,542 $1,210,808 $1,247,132 $1,284,546 $1,323,083 $1,362,775 $1,403,658
12,626 12,879 13,137 13,399 13,667 13,941 14,219 14,504 14,794 15,090 15,392
328,360 336,569 344,983 353,608 362,448 371,509 380,797 390,317 400,075 410,076 420,328
12,360 12,731 13,113 13,507 13,912 14,329 14,759 15,202 15,658 16,128 16,611
17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300
$1,415,100 $1,455,266 $1,496,593 $1,539,116 $1,582,868 $1,627,887 $1,674,207 $1,721,868 $1,770,909 $1,821,369 $1,873,289
($389,290)($408,940)($429,340)($450,518)($472,498)($495,309)($518,978)($543,535)($569,008)($595,430)($622,832)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
EXHIBIT 3
TABLE 5
CASH FLOW ANALYSIS
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Gross Residential Income 1
Gross Rent Income
Section 8 Subsidy Income
City COSR Withdrawl 2
Laundry/Miscellaneous Income
(Less) Vacancy & Collection Allowance
Effective Gross Rent Income
II.Operating Expenses 2
General Operating Expenses
Property Taxes
Social Services
OCHFT Monitoring Fee
Replacement Reserve
Total Operating Expenses
III.Net Operating Income
IV.Cash Flow Available for Contingent Payments
(Less) Asset and Partnership Fees 4
(Less) Deferred Developer Fee
V.Cash Flow after Contingent Payments
Nominal Dollars
VI.Residual Receipt Payments to CIty
Nominal Dollars
VII.Residual Receipt Payments to OCHFT
Nominal Dollars
VIII.Net Cash Flow to Developer
Nominal Dollars
1
2
3
4
The affordable rents and miscellaneous income
are assumed to increase by 102.0%/year.
Assumes Year 1 is at stabilization.
General operating expenses are assumed to
increase by 103.0%/year, property taxes at
102.0%/year, social services at 102.5%/year and
replacement and operating reserves remain
constant.
Assumes fees increase at 103.0%/year.
SEE TABLE 4
Year 44 Year 45 Year 46 Year 47 Year 48 Year 49 Year 50 Year 51 Year 52 Year 53 Year 54
$377,956 $385,516 $393,226 $401,090 $409,112 $417,294 $425,640 $434,153 $442,836 $451,693 $460,727
981,328 1,000,954 1,020,973 1,041,393 1,062,221 1,083,465 1,105,134 1,127,237 1,149,782 1,172,777 1,196,233
12,185 12,428 12,677 12,930 13,189 13,453 13,722 13,996 14,276 14,562 14,853
(96,002)(97,922)(99,881)(101,879)(103,916)(105,994)(108,114)(110,277)(112,482)(114,732)(117,026)
$1,275,466 $1,300,976 $1,326,995 $1,353,535 $1,380,606 $1,408,218 $1,436,382 $1,465,110 $1,494,412 $1,524,300 $1,554,786
$1,445,768 $1,489,141 $1,533,815 $1,579,830 $1,627,225 $1,676,041 $1,726,323 $1,778,112 $1,831,456 $1,886,399 $1,942,991
15,699 16,013 16,334 16,660 16,994 17,333 17,680 18,034 18,394 18,762 19,137
430,836 441,607 452,648 463,964 475,563 487,452 499,638 512,129 524,932 538,056 551,507
17,110 17,623 18,152 18,696 19,257 19,835 20,430 21,043 21,674 22,324 22,994
17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300 17,300
$1,926,714 $1,981,685 $2,038,248 $2,096,450 $2,156,338 $2,217,961 $2,281,371 $2,346,618 $2,413,756 $2,482,842 $2,553,930
($651,247)($680,709)($711,253)($742,915)($775,732)($809,744)($844,989)($881,508)($919,344)($958,541)($999,144)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
EXHIBIT 3
TABLE 5
CASH FLOW ANALYSIS
9% TAX CREDITS
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
I.Gross Residential Income 1
Gross Rent Income
Section 8 Subsidy Income
City COSR Withdrawl 2
Laundry/Miscellaneous Income
(Less) Vacancy & Collection Allowance
Effective Gross Rent Income
II.Operating Expenses 2
General Operating Expenses
Property Taxes
Social Services
OCHFT Monitoring Fee
Replacement Reserve
Total Operating Expenses
III.Net Operating Income
IV.Cash Flow Available for Contingent Payments
(Less) Asset and Partnership Fees 4
(Less) Deferred Developer Fee
V.Cash Flow after Contingent Payments
Nominal Dollars
VI.Residual Receipt Payments to CIty
Nominal Dollars
VII.Residual Receipt Payments to OCHFT
Nominal Dollars
VIII.Net Cash Flow to Developer
Nominal Dollars
1
2
3
4
The affordable rents and miscellaneous income
are assumed to increase by 102.0%/year.
Assumes Year 1 is at stabilization.
General operating expenses are assumed to
increase by 103.0%/year, property taxes at
102.0%/year, social services at 102.5%/year and
replacement and operating reserves remain
constant.
Assumes fees increase at 103.0%/year.
SEE TABLE 4
Year 55
$469,941
1,220,158
15,150
(119,367)
$1,585,882
$2,001,281
19,520
565,295
23,684
17,300
$2,627,080
($1,041,198)
$0
0
0
$0
$0
$0
$0
EXHIBIT 3
TABLE 1
PRELIMINARY HOME-ARP COST ALLOCATION WORKSHEET - STANDARD MODEL
WISEPLACE PSH PROJECT
SANTA ANA, CALIFORNIA
Step 1: Determine Comparability, Select Method of Cost Allocation Net Residential SF 20,267
Step 2: Proposed HOME-ARP Investment 1 $5,256,327
Step 3: Calculate Actual Cost of HOME-ARP Units
Total Development Costs 1 $28,785,652
Ineligible Development Costs 2 (4,261,666)
Unit-Specific Upgrades 0
Relocation Costs 0
Assign Relocation Exclusively to HOME Units?NA
Base Project Cost $1,210 /Sf Gross Residential SF $24,523,986
Number of Units # of Bdrms Unit Size Cost/Unit Total HOME-ARP Costs
34 Studio 400 $484,018 $16,456,615
Subtotal HOME Unit Costs $16,456,615
Add: Relocation Costs Allocated Exclusively to HOME-ARP Units (if applicable)$0
Actual Cost of HOME-ARP Units $16,456,615
Step 4: Calculate Maximum Project Subsidy
Unit Size # of Units 2022 Max Subsidy/Unit Maximum Subsidy
0 Bedroom 34 $159,754 $5,431,636
1 Bedroom 0 $183,132 0
2 Bedroom 0 $222,694 0
3 Bedroom 0 $288,094 0
4 Bedroom 0 $316,236 0
Maximum Project Subsidy 34 $5,431,636
Step 5: Maximum HOME-ARP Investment, Lesser of
Proposed Investment (Step 2)$5,256,327
Actual Cost of HOME Units (Step 3)$16,456,615
Maximum Project Subsidy (Step 4)$5,431,636
Maximum HOME-ARP Investment 34 HOME-ARP Units $5,256,327
1
2
Includes $0 in Santa Ana Project Delivery costs.
The ineligibe costs include: off-site improvements, community building, capitalized reserves and furnishings.
Prepared by: Keyser Marston Associates, Inc.
File name: Santa Ana Wiseplace_6 4 22.xlsx; HOME-ARP; trb
EXHIBIT 3
WISEPlaceSupportive Housing
•47 studio homes, and 1 two-bedroom for
onsite property manager
•Future residents will pay no more than 30%
of their income on rent
•Extremely low-income (30% AMI) individuals
experiencing chronic homelessness
EXHIBIT 4
Existing Site Plan
Existing Building to Remain
126’-10” ±53’
North-South
Wing to be
Demolished
Portion of
Existing
Building to be
Demolished
EXHIBIT 4
First Floor Plan
Adaptive Reuse New Construction
EXHIBIT 4
Typical Floor Plan
EXHIBIT 4
Fourth Floor Plan
EXHIBIT 4
South Elevation
EXHIBIT 4
West Elevation
EXHIBIT 4
Renderings
EXHIBIT 4
3716D-203716D-203716D-203716D-2005 1020 FeetScale: 1" = 10'COPYRIGHT CWISEPLACE PSHSANTA ANA, CA23231 SOUTH POINTE DR.LAGUNA HILLS, CA 92653949.267.1660CHRIS WEIMHOLT# 190090ENTITLEMENTSUBMITTAL03/15/2022N. BROADWAYPROPERTY LINE / LIMIT OF WORKPROPERTY LINE / LIMIT OF WORKPROPERTY LINE / LIMIT OF WORKLIMIT OF WORKLIMIT OF WORKLIMIT OF WORKPROPERTY LINE / LIMIT OF WORKN.SYCAMORE ST.EXISTING TREE - PROTECT IN PLACEREFERENCE LEGEND12345678910111213141516EXISTING SIDEWALK - PROTECT IN PLACEEXISTING PAVING - PROTECT IN PLACEEXISTING CURB AND GUTTER - PROTECT IN PLACEEXISTING FREESTANDING WALL - PROTECT IN PLACEEXISTING PLANTER WALL - REPAIR TO MATCH EXISTINGEXISTING FENCING - PROTECT IN PLACEEXISTING GATE - PROTECT IN PLACEEXISTING UTILITY - PROTECT IN PLACEEXISTING STEPS - PROTECT IN PLACEEXISTING BUILDING COLUMN - PROTECT IN PLACEBUILDING OVERHANG - PER ARCHITECTBUILDING DOOR - PER ARCHITECTNEW PEDESTRIAN PAVING AT RIGHT OF WAY - BY OTHERSNEW VEHICULAR PAVING AT DRIVEWAY - BY OTHERSNEW TRANSFORMER - BY OTHERS17PARAPET WALL - BY ARCHTIECT18EXISTING MONUMENT SIGN - RELOCATION TBD19OUTDOOR BBQ LIGHTINGFENCE LEGENDSITE AMENITIES LEGENDGATE LEGENDFOR MATERIALS, COLORS, FINISHES AND MODELS, SEE MASTERCONSTRUCTION LEGEND, SHEET L1.XXP-1PAVING LEGENDP-1P-2DESCRIPTIONDETAILITEMCONCRETE PAVINGP-3P-4P-5F-1F-2SA-1SA-2SA-3SA-4SA-5G-1G-2G-3DETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXCONCRETE STEPSCONCRETE RAMPSYNTHETIC TURFMOW CURBPERIMETER FENCE - 6' HTDOG FENCE - 42" HTOUTDOOR KITCHEN AND GRILLDINING FURNISHINGSLOUNGE FURNISHINGSBENCHDOG WASTE STATIONENTRY GATE - 6' HTPERIMETER GATE - 6' HTDOG GATE - 42" HTDETAIL XSHEET L.X.XXR-1R-2HANDRAIL AT RAMPHANDRAIL AT STEPSRAILING LEGENDDETAIL XSHEET L.X.XXDETAIL XSHEET L.X.XXSA-6COMPOST BINDETAIL XSHEET L.X.XXP-6DETAIL XSHEET L.X.XXPEDESTAL PAVINGP-7DETAIL XSHEET L.X.XXDECOMPOSED GRANITEF-3DETAIL XSHEET L.X.XXMOVABLE SCREENING FENCESA-7RAISED PLANTERSDETAIL XSHEET L.X.XX139PAPAPAPAPAP-1P-2R-1PA11TYP.G-1F-1183341212911516SA-1SA-2SA-3SA-4F-2G-2G-3P-781111565134P-4R-2Ground LevelConstructionPlanL1.01PA2TYP.13P-19R-1P-3PAPAF-12P-5SA-5PAPAPA9F-3PA14G-2G-2G-2PAPAPAP-1PAPA(3)SA-6SA-7PAPAPAEXHIBIT 4
1
9138-126780\1517029.2
RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO:
City of Santa Ana
Clerk of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
________________________________________________________________________
Free Recording pursuant to
Government Code 27383
DENSITY BONUS HOUSING AGREEMENT
This DENSITY BONUS HOUSING AGREEMENT (“Agreement”), made and entered
into this 21st day of June, 2022, by and between the City of Santa Ana, a charter city and municipal
corporation of the State of California (“City”), and North Broadway Housing Partners LP, a
California limited partnership (“Developer”). City and Developer are sometimes referred to
collectively as the “Parties” and individually as a “Party.”
RECITALS
A.On or about March 10, 2022, JHC-Acquisitions LLC, a California limited liability
company (“JHC-Acquisitions”) and WISEPlace, a California nonprofit corporation (“Property
Owner”), entered into that certain Option to Lease (the “Option Agreement”), pursuant to which
the Property Owner granted to JHC-Acquisitions an option to ground lease that certain property
located within the City of Santa Ana, County of Orange, State of California, commonly known as
1411 N. Broadway Avenue, Santa Ana, California, 92706, and legally described as set forth in
Exhibit A attached hereto and incorporated herein by this reference as if set forth in full
(“Property”).
B.Each of Developer and JHC-Acquisitions is an affiliate of Jamboree Housing
Corporation, a California nonprofit public benefit corporation. Developer and the Property Owner
intend for (i) Developer to assume from JHC-Acquisitions all of JHC-Acquisitions’ rights and
obligations under the Option to Lease, and pursuant thereto to ground lease the Property from
Property Owner, and (ii) the Property Owner to become a non-managing member of the limited
liability company that serves as Developer’s managing general partner.
C.Developer is proposing to develop an affordable rental residential community
consisting of forty-eight (48) units with forty-seven (47) units of permanent supportive housing
for homeless individuals and 6,500 square feet of community space and common areas on the
Property, as more particularly set forth in Density Bonus Application No. DBA-2022-1
(“Project”).
D.Santa Ana Municipal Code sections 41-1600, et seq. (“City Density Bonus for
Affordable Housing”), and California Government Code sections 65915, et seq. (“State Density
EXHIBIT 5
2
9138-126780\1517029.2
Bonus Law”), set forth a process to provide increased residential densities and incentives,
concessions, and waivers to property owners or developers who guarantee that a portion of their
residential development will be available to low income, very-low income, or senior (also known
as "qualified") households. These regulations are intended to materially assist the housing industry
in providing adequate and affordable housing for all economic segments of the community and to
provide a balance of housing opportunities for very-low income, low income and senior
households throughout the city.
E. The Project is proposing a total number of forty-eight (48) residential units,
including forty-seven (47) units for extremely-low income households and one manager’s unit.
The Project will provide 20 total onsite parking spaces or 0.42 spaces per unit. No parking
concession is requested or provided.
F. The Project complies with the affordable housing requirements set forth in the State
Density Bonus Law and City Density Bonus for Affordable Housing. For purposes of this
Agreement, the Project shall be the “housing development” as defined in the State Density Bonus
Law.
G. In light of the purpose of the State Density Bonus Law and City Density Bonus for
Affordable Housing, and the express provisions of Government Code Section 65915(d)(2)(B), the
City has determined to grant Developer’s application for one concession and one waiver.
H. This Agreement, and the exhibits attached hereto and incorporated herein by
reference, are intended to set forth the terms and conditions for the implementation of the Project’s
requirement to provide affordable housing units in exchange for receiving the density bonus
concession and waiver set forth herein.
NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein
by this reference, and of the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:
1. DEFINITIONS AND EXHIBITS
1.1 Definitions. In addition to the terms that may be defined elsewhere in this
Agreement, the following terms when used in this Agreement shall be defined as follows:
1.1.1 "Adjusted for family size appropriate to the unit" shall have the
meaning set forth by Health and Safety Code Section 50052.5(h).
1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be
charged to and paid by an Eligible Household for the Affordable Units, as required by the terms
of this Agreement. The Affordable Rent shall be adjusted to reflect a reasonable utilities allowance
for utilities paid by the household using the Santa Ana Housing Authority Multi -Family Housing
Utility Allowance Schedule, and shall be updated no less than annually.
EXHIBIT 5
3
9138-126780\1517029.2
1.1.3 “Affordable Rent Schedule” means a rent schedule established as of the
date of issuance of an occupancy permit (exclusive of tenant utility payments or security deposits)
for the required number/percentage of the total number of units in the Project which are to be
rented or available for rent to Extremely-Low Income Tenants. Said Affordable Rent Schedule
shall be established at the time of the issuance of the occupancy permit (“Initial Rent Schedule”)
and shall be created in accordance with Health and Safety Code section 50053(b), and shall be
updated no less than annually.
1.1.4 "Affordable Units" means forty-seven (47) units, which shall be
comprised of forty-seven (47) studio units for Extremely-Low Income Tenants. Any change to
the number or distribution of Affordable Units is subject to City Manager approval.
1.1.5 "Agreement" means this Density Bonus Housing Agreement.
1.1.7 "City" means the City of Santa Ana, California
1.1.8 "City Council" means the City Council of the City of Santa Ana.
1.1.9 "City Attorney" means the City Attorney for the City of Santa Ana.
1.1.10 "City Manager" means the City Manager for the City of Santa Ana.
1.1.11 "City's Planning Commission" means the Planning Commission for the
City of Santa Ana.
1.1.12 ''Density Bonus Housing Agreement Term" means the period during
which this Agreement shall be in full force and effect, as provided for in Section 6 below.
1.1.14 "Developer" means North Broadway Housing Partners LP and its
permitted successors and assigns to all or any part of the Property, Project or this Agreement.
1.1.15 "Effective Date" means the date the Developer and the City shall record or
cause to be recorded in the Official Records for Orange County, California, an executed original
of this Agreement, pursuant to section 4.1 herein.
1.1.16 "Eligible Household" means a Household whose income does not exceed
the qualifying limit for an “Extremely-Low Income Tenant” as defined herein.
1.1.17 “Extremely-Low Income Tenant” means persons and families whose
income does not exceed thirty (30%) of the area median income for the Orange County, California
Primary Metropolitan Statistical Area (“PMSA”), adjusted for household size, as published by the
California Department of Housing and Community Development (“HCD”).
1.1.18 "Household" means all persons residing in a Unit.
EXHIBIT 5
4
9138-126780\1517029.2
1.1.19 "Median Income" means the Orange County, California area median
income, adjusted for family size, as periodically published by HCD.
1.1.20 "Monthly Rent" means the total of monthly payments for: (a) use and
occupancy of each Affordable Unit and land and facilities associated therewith; (b) any separately
charged fees or service charges assessed by Developer which are required of all tenants, other than
security deposits, application fees or credit check fees; (c) a reasonable allowance for an adequate
level of service of utilities not included in (a) or (b) above, including garbage collection, sewer,
water, electricity, gas and other heating, cooking and refrigeration fuels, but not including
telephone or cable service, to the extent applicable and charged to tenant; and, (d) possessory
interest, taxes or other fees or charges assessed for use of the land and facilities associated
therewith by a public or private entity other than Developer. In the event that certain utility charges
are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent
for that type of utility charge.
1.1.21 "Project" means that certain affordable residential development as more
particularly described in Recital B and Section 2 of this Agreement.
1.1.22 "Property" means that certain real property more particularly described in
the legal description in Exhibit A and improvements thereon.
1.1.23 "State Density Bonus Law" means Government Code sections 65915, et
seq., as they exist on the Effective Date.
1.1.24 "Unit" means a residential dwelling unit within the Project to be
constructed or caused to be constructed by Developer pursuant to this Agreement.
1.1.25 "Unrestricted Units" means the Units within the Project to be constructed
or caused to be constructed by Developer to a Household without restriction.
1.1.26 “Very-Low Income Tenant” means persons and families whose income
does not exceed fifty (50%) of the area median income for the Orange County, California PMSA,
adjusted for household size, as published by HCD.
1.2 Exhibits. The following documents are attached to, and by this reference made a
part of, this Agreement:
1.2.1 Exhibit A – Legal Description of the Property
1.2.2 Exhibit B – Tenant Verification
1.2.3 Exhibit C – Annual Tenant Recertification
1.2.4 Exhibit D – Annual Rental Housing Compliance Report
1.2.5 Exhibit E – Notice of Affordability Restrictions on Transfer of Property
EXHIBIT 5
5
9138-126780\1517029.2
2. DEVELOPMENT OF THE PROPERTY
2.1 Project. Developer shall develop, operate, and maintain, or cause the development,
operation and maintenance of, the Property as a forty-eight (48) unit rental residential community,
with forty-seven (47) Affordable Units for Extremely Low Income Tenants.
2.2 Density Bonus. The Project Units are allowed under the City’s Adaptive Reuse
Ordinance. Therefore, no density bonus is required or provided.
2.3 Development Concessions, Incentives, and Waivers. As set forth in the City
entitlements, Developer petitioned for and is hereby granted the following concessions, incentives,
and waivers as part of the approval of Density Bonus Application No. DBA-2022-1 for the Project:
2.3.1 Onsite parking shall be provided in compliance with Government Code
Section 65915(p)(4). No parking concession is requested or provided. Pursuant to the Project
plans, the Developer is proposing to provide 20 total onsite parking spaces or 0.42 spaces per unit.
2.3.2 The permitted building height for this Project shall be increased in
accordance with Government Code Section 65915(d)(2)(B), such that the maximum building
height for this Project shall be 54 feet and 6 inches and four (4) stories.
2.3.3 Certain development standards for this Project shall be waived in
accordance with Government Code Section65915(d)(2)(B), such that all proposed utilities will be
undergrounded with the exception of existing overhead power lines over the existing building
along with the recorded Southern California Easement (to remain).
2.4 No Further Concessions, Incentives, or Waivers. Developer acknowledges and
agrees that the concessions, incentives, and waivers set forth in section 2.3 above fully satisfies
any duty City may have under the City Density Bonus for Affordable Housing, the Density Bonus
Law, or any other law or regulation to provide any density bonus incentive or to waive any
building, zoning, or other requirement in connection with a density bonus. By this Agreement,
Developer releases any and all claims Developer may have against City in any way relating to or
arising from City’s obligation to waive requirements of or provide development incentives
pursuant to the City Density Bonus for Affordable Housing and the Density Bonus Law applicable
to the Project.
2.5 Unrestricted Units. The Project, for purposes of this Agreement, may have no more
than one (1) Unrestricted Unit (i.e. – manager’s unit) comprised of one (1) two-bedroom unit.
2.6 Affordable Units. The Project, for purposes of this Agreement, shall have no less
than forty-eight (48) Units, which shall be comprised of forty-seven (47) studio units designated
as Affordable Units pursuant to the terms and conditions of this Agreement. The Affordable Units
shall be consistent with all applicable City approvals.
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2.7 Minimum Development Standards for Affordable Units. The Affordable Units
shall be constructed in accordance with all applicable City approvals.
2.8 Permits and Processing; Compliance with Laws. Developer, at its sole cost and
expense, or as otherwise set forth in a separate written agreement, shall secure or cause to be
secured any and all permits that may be required for development of the Project by City or any
other federal, state, or local governmental entity with jurisdiction over the Property or Project.
Upon securing any and all required permits, and all necessary financing and property interests,
Developer shall carry out and perform the development, operation, and maintenance of the Project
or cause the performance of the development, operation, and maintenance of the Project, in
conformity with all applicable federal, state, and local laws and regulations, and all conditions of
approval issued by the City Council and City's Planning Commission for the Project. Any changes
to the Project shall be reviewed by the City to determine compliance with this Agreement. If any
changes to the Project shall materially alter the ability of Developer to comply with any terms of
this Agreement in City’s sole determination, then City and Developer shall meet and confer to
address amendments and revisions to this Agreement as necessary.
2.9 Relocation Prior to Development of Project. If relocation is required prior to the
completion of development of the Project, Developer shall have the sole and exclusive
responsibility for providing relocation assistance and paying all relocation costs as may be required
to comply with applicable federal and state laws and regulations. In addition to any other indemnity
provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of
City’s choosing and the consent of Developer, which shall not be unreasonably withheld and which
may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all
of its officials, officers, employees, representatives, volunteers and agents from any and all alleged
or actual claims, causes of action, liabilities, and damages from any third party for relocation
assistance, benefits and costs prior to the completion of the development of the Project.
2.10 Local Sourcing Plan. Developer agrees to make a good faith effort to encourage
contractors and suppliers to hire and procure locally, to the extent that it is cost effective and does
not delay the overall project development schedule. Prior to issuance of a Building Permit,
Developer shall develop and submit or cause the development and submittal to the Community
Development Agency (the “CDA”) a local sourcing plan for the Project targeting, to the extent
commercially reasonable, the hiring of qualified workers, construction contractors, or the
purchasing of goods locally within the City of Santa Ana. The plan must be reviewed and approved
by the CDA which if not granted or denied within five (5) business days, shall be deemed approved
(with such approval not to be unreasonably withheld, conditioned or delayed) and be implemented
for the construction of the project prior to issuance of Building Permit.
2.11 Mechanic's Liens; Indemnification. Developer shall take all actions reasonably
necessary to remove any future mechanic's liens or other similar liens (including design
professional liens) against the Property or Project, or any part thereof, by reason of work, labor,
services, or materials supplied or claimed to have been supplied to Developer or caused by, at the
direction of, or on behalf of Developer. Prior to the recording of this Agreement (or memorandum
thereof) pursuant to Section 4.1 below, Developer shall provide evidence from the Title Company
of any new recordings against the Property or Project. City hereby reserves all rights to post notices
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of non-responsibility and any other notices as may be appropriate upon a filing of a mechanic's
lien. In addition to any other indemnity provided by Developer under this Agreement, Developer
shall indemnify, defend (with counsel of City’s choosing and the consent of Developer, which
shall not be unreasonably withheld - and which may be joint defense counsel upon City's and
Developer's consent), and hold harmless City and all of its officials, officers, employees,
representatives, volunteers and agents from any and all alleged or actual claims, causes of action,
liabilities, and damages from any third party by reason of a mechanic's lien or work, labor, services,
or materials supplied or claimed to have been supplied to Developer or caused by, at the direction
of, or on behalf of, Developer.
3. AFFORDABILITY
3.1 Total Affordability Term. Each Affordable Unit shall be restricted to use and
occupancy by an Eligible Household for a total period of no less than fifty-five (55) years ("Total
Affordability Term"). The Total Affordability Term for an Affordable Unit shall commence on
the date that the building in which the Affordable Unit is located receives all required occupancy
permits from the City.
3.2 Memorializing Commencement of Total Affordability Term. Developer shall keep
or cause to be kept detailed records of the commencement date of the Total Affordability Term for
each Affordable Unit. City shall have the right to review and verify said records without a fee
from City to Developer to ensure that the commencement date specified by Developer for an
Affordable Unit coincides with the date that the initial Affordable Unit received all permits from
City required for occupancy of the Unit. In the event that a conflict exists between the date
specified by Developer for the commencement of the Total Affordability Term for an Affordable
Unit and the date specified by City's issuance of all required permits for occupancy of the Unit,
the date specified by City's issuance of all required permits for occupancy of the Unit shall control.
3.3 Levels of Affordability.
3.3.1 Extremely-Low Income Tenants. Subject to the terms of Section 5,
Developer covenants that no less than forty-seven (47) Affordable Units in the Project shall at all
times during the Density Bonus Housing Agreement Term be rented to, or held vacant and
available for immediate occupancy by Extremely-Low Income Tenants, at an Affordable Rent.
4. OPERATION OF THE PROJECT BY DEVELOPER
4.1 Payment of Density Bonus Setup Fee. Prior to the Effective Date, Developer
delivered payment to City of the required density bonus setup fee in the amount of one-eighth
(1/8th) of one percent (1%) of the total estimated construction budget for the Project.
4.2 Recording of Documents. No later than issuance of building permits for the Project,
Developer and the City shall record or cause to be recorded in the Official Records for Orange
County, California, an executed original of this Agreement. City shall cooperate with Developer
in promptly executing in recordable form this Agreement. The date of recording of the Agreement
shall be the Effective Date of the Agreement. Upon the date of recording, the terms and conditions
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of this Agreement shall be binding upon and run with the Property and the Project. It is the express
intent and agreement between the Parties that this Agreement shall remain binding and enforceable
against the Property, the Project, and the Units to ensure compliance with the State Density Bonus
Law and City Density Bonus Law, and to ensure the continued supply of Affordable Units in the
Project, except as expressly set forth in this Agreement.
4.2 Rental of Units. Upon the completion of construction of the Project and receipt by
Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to
be rented each Affordable Unit for the Total Affordability Term for such Affordable Unit in
accordance with the terms and conditions set forth in this Agreement, which provide among other
terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible
Household for the Total Affordability Term.
4.3 Location of Affordable Units. During the Density Bonus Housing Agreement
Term, the Affordable Units shall be dispersed throughout the Project in accordance with the terms
and conditions set forth in this Agreement.
4.4 Occupancy Levels. The number of persons permitted to occupy each Affordable
Unit shall not exceed two persons.
4.5 Use of the Property. All uses conducted on the Property by Developer, including,
without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall
conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal,
state, and local laws, rules, and regulations. The Project shall at all times during the term of this
Agreement be used as a rental supportive housing complex and none of the Affordable Units in
the Project, nor shall the Property or an y portion thereof, ever be used as a hotel, motel, dormitory,
fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home, or be
converted to condominium ownership. All of the community facilities and any social programs
provided to the Project’s residents shall be available on an equal, nondiscriminatory basis to
residents of all Units at the Project.
4.6 Maintenance. Developer shall, at all times during the term of this Agreement, cause
the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of
cause of the disrepair, to the extent commercially reasonable. City, and any of its employees,
agents, contractors or designees shall have the right to enter upon the Property at reasonable times
following not less than -forty-eight (48) hours’ prior written notice and in a reasonable manner to
inspect the Project. If at any time Developer fails to maintain the Project or the Property in
accordance with this Agreement and such condition is not corrected within seven (7) days after
written notice from City with respect to debris and waste material, or within thirty (30) days after
written notice from City with respect to general maintenance, landscaping and building
improvements, unless Developer has initiated corrections and City has agreed to a reasonable
amount of time to complete corrections, then City, in addition to whatever remedy it may have at
law or at equity, shall have the right to enter upon the applicable portion of the Project or the
Property and perform all acts and work necessary to protect, maintain, and preserve the Project
and the Property, and to attach a lien upon the Property, or to assess the Property, in the amount
of the expenditures arising from such acts and work of protection, maintenance, and preservation
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by City and/or costs of such cure, including a reasonable administrative charge, which amount
shall be promptly paid by Developer to City upon demand. Notwithstanding the foregoing, City
acknowledges and agrees that the priority of any such lien shall be deemed to be the date such lien
is filed, and not the date this Agreement is recorded.
4.6.1 Property Maintenance Agreement. Subject to review and applicability by the
Planning and Building Agency (the “PBA”), the CDA, the Public Works Agency (the “PWA”),
and the City Attorney to ensure that the Property and all improvements located thereupon are
properly maintained, Developer shall execute a maintenance agreement with the City of Santa Ana
or Housing Authority, as applicable, prior to occupancy which shall be recorded against the
Property and which shall be in a form reasonably satisfactory to the City Attorney. The
maintenance agreement shall contain covenants, conditions and restrictions relating to the
following:
(a) Compliance with operational conditions applicable during any period(s) of
construction or major repair (e.g., proper screening and securing of the c onstruction site;
implementation of proper erosion control, dust control and noise mitigation measure;
adherence to approved project phasing etc.);
(b) Compliance with ongoing operational conditions, requirement and restrictions
as applicable, the proper storage and disposal of trash and debris, and/or restrictions on
certain uses;
(c) Ongoing compliance with approved design and construction parameters,
signage parameters and restrictions as well as landscape designs, as applicable;
(d) Ongoing maintenance, repair and upkeep of the Property and all improvements
located thereupon (including but not limited to controls on the proliferation of trash and
debris about the Property; the proper and timely removal of graffiti; the timely
maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings,
structures and/or improvements; the timely maintenance, repair and upkeep of exterior
paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly
accessible bathrooms and bathroom fixtures, landscaping and related landscape
improvements and the like, as applicable);
(e) If Developer and the owner of the Property are different (e.g., if the applicant is
a tenant or licensee of the Property or any portion thereof), both the applicant and the owner
of the Property shall be signatories to the maintenance agreement and both shall be jointly
and severally liable for compliance with its terms;
(f) The maintenance agreement shall further provide that any party responsible for
complying with its terms shall not assign its ownership interest in the Property or any
interest in any lease, sublease, license or sublicense, except as set forth herein or unless the
prospective assignee agrees in writing to assume all of the duties and obligations and
responsibilities set forth under the maintenance agreement;
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(g) The maintenance agreement shall contain provisions relating to the enforcement
of its conditions by the City and shall also contain provisions authorizing the City to
recover costs and expenses which the City may incur arising out of any enforcement and/or
remediation efforts which the City may undertake in order to cure any deficiency in
maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of
the Property. The maintenance agreement shall further provide that any unreimbursed costs
and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use
restrictions shall become a lien upon the Property in an amount equivalent to the actual
costs and/or expense incurred by the City (provided, however, that City acknowledges and
agrees that the priority of any such lien shall be deemed to be the date such lien is filed,
and not the date this Agreement is recorded); and,
(h) The execution and recordation of the maintenance agreement shall be a
condition precedent to the issuance of the Certification of Occupancy.
4.7 Management Plan. Prior to Certificate of Occupancy, Developer shall submit for
the reasonable approval of City a “Management Plan” which sets forth in detail the property
management duties, a tenant selection process in accordance with this Agreement, a security
system (comprised of security cameras with audio voice down capability) and crime prevention
program, the procedures for the collection of rent, the procedures for eviction of tenants, the rules
and regulations for the Property and manner of enforcement, a standard lease form, an operating
budget, the identity and emergency contact information of the professional property management
company to be contracted with to provide onsite property management services at the Property
(“Property Manager”), and other matters relevant to the management of the Property. The
Management Plan shall require Developer to adhere to a fair lease and grievance procedure. The
management of the Property shall be in compliance with the Management Plan as approved by
City.
If City determines that the performance of the Property Manager is deficient based upon
the standards set forth in the approved Management Plan and in this Agreement, City shall provide
written notice to Developer of such deficiencies and Developer shall use commercially reasonable
efforts to correct such deficiencies. In the event that such deficiencies have not been cured within
thirty (30) days, or, if cure is not reasonably possible within 30 days, then unless actions to
commence a cure are taken within 30 days and continued thereafter with diligence, City shall have
the right to require Developer to immediately remove and replace the Property Manager with
another property manager or property management company which is reasonably acceptable to the
City Manager, which is not related to or affiliated with Developer, and which has not less than five
(5) years’ experience in property management, including significant experience managing housing
facilities of the size, quality and scope of the Project. City acknowledges that Developer’s investor
limited partner has the right, under Developer’s limited partnership agreement, to direct the general
partner to remove the Property Manager. Developer agrees to give City notice of the proposed
replacement Property Manager. Such proposed replacement Property Manager shall be subject to
the City’s approval (with such approval not to be unreasonably withheld, conditioned or delayed).
4.8 Rental Lease Agreement. Developer shall prepare and obtain City’s approval,
which approval shall not be unreasonably withheld, conditioned or delayed, of a rental lease
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agreement (“Lease Agreement”). All Lease Agreements must 1) identify the names and ages of
all members of the household who will occupy the Affordable Unit; and 2) state that the
Household’s right to occupy the Affordable Unit is subject to compliance with the Median Income
requirements, as periodically published by HCD. All Lease Agreements must be consistent with
the terms contained in this Density Bonus Agreement.
4.8.1 Prohibited Lease Terms. The Lease Agreement may not contain any of the
following provisions:
(a) Agreement to be Sued. Agreement by the tenant to be sued, to admit to guilt,
or to a judgment in favor of the Developer in a lawsuit brought in connection
with the lease;
(b) Treatment of Property. Agreement by tenant that the Developer may take, hold,
or sell personal property of household members without notice to tenant and a
court decision on the rights of the parties. This prohibition, however, does not
apply to an agreement by the tenant concerning disposition of personal property
remaining in the housing unit after the tenant has moved out of the unit. The
Developer may dispose of this personal property in accordance with State law;
(c) Excusing Developer of Responsibility. Agreement by the tenant not to hold the
Developer of the Developer’s agent legally responsible for any action or failure
to act, whether intentional or negligent;
(d) Waiver of Notice. Agreement of the tenant that the Developer may institute a
lawsuit without notice to the tenant;
(e) Waiver of Legal Proceedings. Agreement by the tenant that the Developer may
evict the tenant or household members without instituting a civil court
proceeding in which the tenant has the opportunity to present a defense, or
before a court decision on the rights of the parties;
(f) Waiver of a Jury Trial. Agreement by the tenant to waive any rights to a trial
by jury;
(g) Waiver of Right to Appeal Court Decision. Agreement by the tenant to waive
the tenant’s right to appeal, or to otherwise challenge in court, a court decision
in connection with the lease; and
(h) Tenant Chargeable with Cost of Legal Action Regardless of Outcome.
Agreement by the tenant to pay attorney’s fees or other legal costs even if the
tenant wins in a court proceeding by the Developer against the tenant. The
tenant, however, may be obligated to pay attorney’s fees and costs if the tenant
loses, if provided for under applicable law or court ruling.
4.9 Selection of Tenants.
4.9.1 Developer shall review the selection of tenants for the Affordable Units in
compliance with lawful and reasonable criteria and the requirements of this Agreement. Each
Affordable Unit shall be leased to Eligible Households that are chronically homeless and
document-ready individuals on the Coordinated Entry List. All residents will be referred from the
County of Orange Coordinated Entry System.
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4.9.2 Local preference for Santa Ana residents and workers in tenant selection for
the Affordable Units shall be a requirement of the Project. Subject to applicable laws and
regulations governing nondiscrimination and preferences in housing occupancy required by the
State of California, the Developer shall give preference or cause for the preference in leasing the
Affordable Units to households that live and/or work in the City of Santa Ana or who have an
active Housing Choice Voucher issued by the Housing Authority of the City of Santa Ana or any
other Public Housing Authority.
4.9.3 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer
shall require the tenant(s) or cause for the tenant(s) to be required to execute a written lease and to
complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit
B) certifying that the tenant(s) occupying the Affordable Unit is/are an Eligible Household and
otherwise meet(s) the eligibility requirements established for the Affordable Unit. Developer shall
verify the income of the tenant(s) as set forth herein. Developer and City shall be entitled to rely
on the Tenant Income Verification Form and supporting documentation provided by tenant(s)
unless Developer or City has knowledge of, or a reasonable basis for belief as to, the inaccuracy
or falsehood of any of the supporting documentation.
4.10 Income Verification and Certification.
Developer covenants to City that it will at all times abide by all specific compliance
standards set forth in the regulatory agreements entered into between the Developer and all public
funding sources. Developer will abide by all standards including but not limited to number of
extremely-low and very-low and low-income affordable units by number of bedrooms, standards
for qualifying household incomes and other qualifying criteria. Developer shall provide City with
a certified copy of each of the recorded regulatory agreements applicable to the Project. The
compliance standards set forth in said regulatory agreements are hereby incorporated by reference
as fully set forth herein. In the event of a conflict between this Agreement and the regulatory
agreements: (1) the more stringent requirement shall prevail if such interpretation eliminates the
relevant conflict; or (2) regulatory agreements, or any of them, shall prevail.
Developer shall be entitled to rely on the Tenant Income Verification Form and supporting
documentation provided by tenant(s) unless Developer has knowledge of, or a reasonable basis for
belief as to, the inaccuracy or falsehood of any of the supporting documentation. Developer shall
make reasonable efforts to verify or cause to be verified that the income and asset statement
provided by an applicant in an income certification is accurate by taking, at a minimum, at least
one of the following steps as a part of the verification process: (1) obtain three months consecutive
pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax
year, (3) obtain an income verification form from the applicant’s current employer, (4) obtain an
income verification form from the Social Security Administration and/or the California
Department of Social Services if the applicant receives assistance from either of such agencies, or
(5) if the applicant is unemployed and has no such tax return, obtain another form of independent
verification.
4.10.1 Gross Household Income. Gross household income means all income from
whatever source from all adult Household members, which is anticipated to be received during the
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12-month period following the date of the determination of Gross Household Income. The
applicable sources of income are defined in California Code of Regulations Title 25 Housing and
Community Development Section 6914.
4.10.2 Annual Recertification. Developer agrees to recertify or cause to be
recertified household eligibility annually. Notification of Annual Tenant Recertification shall be
sent to the household in substantially the form attached hereto as Exhibit C. An Annual Rental
Housing Compliance Report (“Annual Compliance Report”) shall be sent by Developer to the City
in substantially the form attached hereto as Exhibit D for City’s review and approval. The Annual
Compliance Report shall be due to the City within 30 days of the anniversary of the
commencement of the Total Affordability Term, which is the date that each building receives all
required occupancy permits from the City.
4.11 Monitoring and Recordkeeping. Throughout the Term of this Agreement,
Developer shall annually complete or cause to be completed and submit to City a Certification of
Continuing Program Compliance in the form provided by City. Developer agrees to pay annually
to City a fee (“City Monitoring Fee”), for the purpose of paying the actual costs associated with
the City’s obligation to monitor Developer’s compliance with the affordability restrictions
contained in this Agreement related to the Affordable Units, not to exceed monitoring costs for up
to forty-seven (47) Affordable Units. The City Monitoring Fee, including any increases thereto, is
set by City resolution, based on review and analysis of the actual costs incurred by City to perform
said monitoring activities. As of the Effective Date, the City Monitoring Fee is One Hundred
Eleven Dollars and Ninety-One Cents ($111.91) per unit. Representatives of City shall be entitled
to enter the Property if necessary after review of above documentation, upon at least forty-eight
(48) hours written notice, to monitor compliance with this Agreement, and shall be entitled to
inspect the records of the Project relating to the Affordable Units and to conduct an independent
audit or inspection of such records at a location within the City that is reasonably acceptable to the
City without a fee from the City. Developer agrees to cooperate with City in making the Property
and the records of the Project relating to the Affordable Units available for such inspection or
audit. Developer agrees to maintain or cause for the maintenance of each record of the Project for
no less than five (5) years after creation of each such record.
Developer shall allow the City to conduct annual inspections of each of the Affordable
Units on the Property after the date of construction completion, with not less than forty-eight (48)
hours prior written notice. Developer shall commence to cure or cause the commencement to cure
any defects or deficiencies found by the City while conducting such inspections within ten (10)
business days of written notice thereof, or such longer period as is reasonable within the reasonable
discretion of the City.
4.12 Notice of Affordability Restrictions on Transfer of Property. In the event the
Property Owner wishes to sell or transfer the Property, or the Developer wishes to sell or transfer
the Project and assign the ground lease to the Property, during the Total Affordability Term, the
City and the Developer shall execute and deposit into escrow, or record against the Propert y, a
Notice of Affordability Restrictions on Transfer of the Property as contained herein (Exhibit E).
The sale or transfer of the Property, or assignment of ground lease, shall not be effective unless
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and until the City and the transferee execute the documents necessary to transfer the Density Bonus
Agreement obligations from the Developer to the transferee.
4.13 Onsite Supportive Services, Programs and Amenities. Throughout the Term of this
Agreement, and to the extent such can be coordinated with and supplied by philanthropic and other
social welfare providers, Developer shall provide residents of the Project, or cause to be provided
to residents of the Project, access to discounted or no-cost onsite supportive services, programming
and amenities that promote independent living and economic mobility and include but are not
limited to: health and wellness services, social activities, and physical or recreational amenities.
4.14 Alternative Transportation and Energy Source, Resource Conservation, and LEED
Certification. While not a condition of the Project’s Density Bonus, in recognition of the City’s
desire to optimize the energy efficiency of the Project, Developer agrees to consult with the project
design team, a CABEC certified 2016 Certified Energy Analyst, a LEED AP Homes (low-rise and
mid-rise), LEED AP BD+C (high rise), National Green Building Standard (NGBS) Green Verifier,
or GreenPoint Rater (one person may meet both of these latter qualifications) early in the Project
design process to evaluate a building energy model analysis and identify and consider energy
efficiency or generation measures. Prior to the meeting, the energy analyst shall complete an initial
energy model based on either current T24 standards or, if the Project is eligible, the California
Utility Allowance Calculator using best available information on the Project. To the extent
financially feasible for the Project, Developer agrees to incorporate and optimize energy efficient
building materials, methods, and amenities.
4.15 Onsite Property Manager. The Project shall have 24-hour on-site Property
management services and personnel. Up-to-date 24-hour contact information for the on-site
personnel shall be provided to the following City agencies on an ongoing basis:
(a) Police Department
(b) Fire Department
(c) Planning and Building Agency
(d) Community Development Agency
4.16 Emergency Evacuation Plan. Developer shall submit and obtain approval of an
Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to
issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for
the on-site personnel shall be provided to the City on an ongoing basis and the approved EEP shall
be kept onsite and also be submitted to the following City agencies:
(a) Police Department
(b) Fire Department
(c) Planning and Building Agency
(d) Community Development Agency
4.17 Crime Free Housing Policy. Developer shall work with City staff to develop a crime
free housing policy, procedure, and design plan (the “CFH Plan”). Developer shall submit and
obtain approval from the PBA that the CFH Plan meets the requirements of this Subsection 4.17
prior to issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented
and administered by Property management.
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4.18 Onsite Parking Management Plan. Developer has agreed to provide twenty (20) onsite
parking stalls for residents and visitors of the Project and actively monitor the parking demand of
the Project site. Developer shall continually monitor and take commercially reasonable measures
to manage the parking demand of the Project site - to mitigate the use of offsite parking spaces on
private or public properties and/or right-of-way. Prior to issuance of the Certificate of Occupancy,
Developer shall submit and obtain approval from the Planning and Building Agency of a Parking
Management Plan (the "PMP") to address the parking demands of the Project. The approved PMP
shall be adhered to and be enforced by the Project at all times.
4.19 Marketing and Resident Selection Plan. Each Affordable Unit shall be leased to
Eligible Households selected by Developer who meet all of the requirements provided herein.
Prior to Certificate of Occupancy, Developer shall prepare and obtain City’s approval of a
marketing program and resident selection plan for the leasing of the Affordable Units at the Project
(“Marketing Program”). The leasing of the Affordable Units shall thereafter be marketed in
accordance with the Marketing Program as the same may be amended from time to time with
City’s prior written approval. Upon request, Developer shall provide City with periodic reports
with respect to the leasing of the Housing Units.
4.19.1 The Marketing Program shall include, but is not limited to,
marketing and community outreach activities, proposed tenant selection criteria,
occupancy standards, income requirements, timeline and details for outreach and
marketing, data collection, record keeping and monitoring, procedures for complaints, and
compliance assessment. Components of the resident selection plan shall include, but are
not limited to, the application process, interview procedure, apartment offer and
assignment, rejected applications, and wait list management. All requirements set forth
herein shall be incorporated in the Marketing Program.
5. EFFECT OF LOSS OF PROJECT SUBSIDY AND/OR FORECLOSURE
It is anticipated that the Project will be supported by various subsidy programs, including,
without limitation, Project-Based Section 8 rental subsidy payments, and a capitalized operating
subsidy reserve (collectively with any other subsidies committed to the Project as of the Effective
Date, the “Project Subsidy”). Notwithstanding anything to the contrary contained in this
Agreement, if, during the “Density Bonus Housing Agreement Term” (as defined in Section 6
below), (i) any portion of the Project Subsidy is reduced, terminated or not renewed, through no
fault of Developer, such that the Project Subsidy as it exists as of the Effective Date is no longer
available (or available in a lesser amount) then the Developer may request approval of the City
(any such request, an “Affordability Adjustment Request”) to (a) allow persons and families whose
income does not exceed sixty (60%) of the area median income for the Orange County, California
PMSA, adjusted for household size, as published by HCD (“60% Households”) to rent and occupy
some or all of the Affordable Units (any such Affordable Units, the “Adjusted Affordable Units"),
and (b) to increase the rent on the Adjusted Affordable Units to rents that are affordable to 60%
Households, pursuant to Health and Safety Code section 50053(b).
EXHIBIT 5
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Concurrently with any Affordability Adjustment Request, Developer shall provide City
with evidence of the anticipated reduction or termination of the Project Subsidy, and of the
adjustments and increases necessary to enable the Project to attain, and to maintain throughout the
Density Bonus Housing Agreement Term, a positive cash flow. Developer’s Affordability
Adjustment Request and/or the termination of special and/or target population requirements is
subject to the City’s approval, such approval not to be unreasonably withheld, conditioned or
delayed.
Upon City’s approval of any Affordability Adjustment Request, Developer hereby agrees
to the following:
A. Developer shall provide tenants in the Adjusted Affordable Units with at least sixty
(60) days’ written notice of any rent increase and shall notify each tenant that if they have received
a tenant-based voucher from the Santa Ana Housing Authority or any other governmental entity
they may use such voucher to pay the rent for their Adjusted Affordable Unit;
B. No later than sixty (60) days prior to the proposed implementation of any rent
increase, Developer shall submit to City a schedule of any proposed increase in the rent for review
and approval by City (such approval not to be unreasonably withheld, conditioned or delayed).
6. TERM OF THIS AGREEMENT
The term of this Agreement ("Density Bonus Housing Agreement Term") shall commence
on the Effective Date and shall continue until the date that is fifty-five (55) years after the City
issues the last certificate of occupancy for the building in which the Affordable Units are located.
7. DEFAULT AND TERMINATION; INDEMNIFICATION
7.1 Default. Failure or delay by any Party to perform any term or provision of this
Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party
specifying the default (or such other period spe cifically provided herein), constitutes a default
under this Agreement; provided, however, if such default is of the nature reasonably requiring
more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by
commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such
cure to completion. Except as required to protect against further damages, the injured Party may
not institute proceedings against the Party in default until the time for cure has expired. Failure or
delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time
of default.
7.2 Rights and Remedies Cumulative. The rights and remedies of the Parties are
cumulative, and the exercise by either Party of one or more of its rights or remedies shall not
preclude the exercise by it, at the same or different times, of any other rights or remedies for the
same default or any other default by the other Party. Notwithstanding anything to the contrary
contained in this Agreement, in no event shall either Party be liable for speculative, consequential,
punitive or other indirect damages, and each Party waives any right to collect speculative,
consequential, punitive or other indirect damages against the other Party.
EXHIBIT 5
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7.3 Indemnification. In addition to any other indemnity specifically provided in this
Agreement, Developer agrees to defend (with counsel of City’s choosing and the consent of
Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be
joint defense counsel upon City's and Developer's consent) indemnify and hold harmless City and
its respective officers, officials, agents, employees, representatives, and volunteers (collectively,
"Indemnitees") from and against any loss, liability, claim, or judgment arising from any act or
omission of Developer in connection with its obligations under this Agreement, except to the
extent caused by the negligence or willful misconduct of any of the Indemnitees.
7.4 Termination. Prior to the issuance of building permits for the Project, Developer
has the right to terminate this Agreement by written notice to City if one or more of the following
does not occur: (1) approval and execution of a ground lease between Property Owner and
Developer (or an entity formed by Developer to lease the Property) in their reasonable discretion
for the lease of the Property; or, (2) receipt by Developer of all financing required for the Project.
8. ASSIGNMENT; COVENANTS RUN WITH THE LAND
8.1 Assignment by Developer.
8.1.1 Prohibited Transfers or Assignments. Except as authorized in this Section
or Section 8.1.2 below, Developer shall not sell, transfer, or assign the Property or Project in whole
or in part, or transfer or assign Developer's rights and obligations in this Agreement, in whole or
in part, without City's prior written approval, which shall not be unreasonably withheld,
conditioned or delayed (“Permitted Transfer”); provided, however, Developer shall have the right
without City’s prior written approval to transfer or assign the Property, Project and/or Developer’s
rights and obligations in this Agreement to any entity that is controlled by, or is under common
control with, Developer or Developer’s managing general partner, and Developer shall thereafter
be released from any future obligations under this Agreement. In connection with Permitted
Transfer, Developer shall: (i) notify City in writing of the sale, transfer, or assignment of all or any
portion of the Property, and (ii) deliver to City an assignment and assumption agreement (or other
agreement) in a form approved by City in its reasonable discretion and executed by Developer and
its transferee/assignee pursuant to which Developer's transferee/assignee assumes all of
Developer's covenants and obligations set forth herein with respect to the Property or the portion
thereof so transferred. Any request for transfer or assignment of the Agreement by Developer
shall require the payment of fees or a deposit to pay for the City’s actual, documented expenses to
review the request. Upon the delivery of the assignment and assumption agreement as provided
for above for a Permitted Transfer, or in the event of a sale of the Property/Project as provided for
in this Section 8.1.1, Developer shall be released from any future obligations under this
Agreement.
8.1.2 Lease of Property. Developer agrees and declares that the Property and the
Project shall be leased, rented, used, occupied, operated, and approved subject to all obligations
set forth or incorporated in this Agreement, all of which are for the purpose of enhancing and
protecting the value and attractiveness of the Property and the Project. All of the obligations set
forth or incorporated in this Agreement shall constitute covenants which run with the land and
EXHIBIT 5
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shall be binding on Developer and its successors and assigns, and all parties having or acquiring
any right, title or interest in, or to any part of the Property or Project. Developer further
understands and agrees that the Density Bonus permit approvals received for this Project have
been made on the condition that Developer and all subsequent lessees, or other successors and
assigns of the Property and/or Project lease and rent the Affordable Units in accordance with the
terms and conditions stipulated in Sections 4, 5 and 6 of this Agreement for a term of fifty-five
(55) consecutive years commencing upon the date of issuance of the last certificate of occupancy
for the Project.
8.1.3 Subsequent Assignment. As used in this Agreement, the term "Developer"
shall be deemed to include any such transferee or assignee after the date such sale, transfer, or
assignment occurs in compliance with this Agreement.
8.1.4 Unpermitted Assignments Void. Any sale, transfer, or assignment made in
violation of this Agreement shall be null and void, and City shall have the right to pursue any right
or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales,
transfers, or assignments.
8.2 Covenants Run with the Land. The Property shall be used, occupied and improved
subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions,
restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall
run with the Property and shall be binding upon Developer and all persons having any right, title
or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall
inure to the benefit of City and its successors and assigns, and may be enforced by City and its
successors and assigns. The covenants established in this Agreement shall, without regard to
technical classification and designation, be binding for the benefit and in favor of City and its
successors and assigns, and the parties hereto expressly agree that this Agreement and the
covenants herein shall run in favor of City. Furthermore, all of the covenants, conditions, and
restrictions contained herein shall also constitute easements in gross running in favor of City. City
is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants
running with the land, for and in its own right and for the purposes of protecting the interests of
the community and other parties, public or private, in whose favor and for whose benefit this
Agreement and the covenants running with the land have been provided. Developer hereby
declares its understanding and intent that the burden of the covenants set forth herein touch and
concern the land and that the Developer's lease interest in the Property is rendered less valuable
thereby. Developer hereby further declares its understanding and intent that the benefit of such
covenants touch and concern the land by enhancing and increasing the enjoyment and use of the
Property by the citizens of City and by furthering the health, safety, and welfare of the residents
of City.
9. MISCELLANEOUS
9.1 Entire Agreement. This Agreement and all of its exhibits and attachments set forth
and contain the entire understanding and agreement of the parties with respect to the density bonus
incentive and concession provided to the Project, and there are no oral or written representations,
understandings or ancillary covenants, undertakings or agreements which are not contained or
EXHIBIT 5
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expressly referred to herein. No testimony or evidence of any such representations, understandings
or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine
the terms or conditions of this Agreement.
9.2 Amendment. Any alteration, change or modification of or to this Agreement, in
order to become effective, shall be made in writing and in each instance approved by the City
Council, or through the City Manager as detailed herein, and signed on behalf of each Party. The
City Manager shall have the authority to make approvals, issue interpretations, execute documents,
waive provisions, and/or enter into amendments of this Agreement on behalf of City, including
but not limited to amendments to this Agreement for consistency with other Project agreements,
funding sources or to assist Developer in obtaining other funding sources. Any requested
alteration, change or modification of the Agreement by Developer shall require the payment of
fees or deposit by Developer to City, as applicable, to pay for City’s actual, documented expenses
to review the request. Each alteration, change, or modification to this Agreement shall be recorded
against the Property in the Official Records of Orange County, California.
9.3 Notices.
9.3.1 Delivery. As used in this Agreement, "notice" includes, but is not limited
to, the communication of notice, request, demand, approval, statement, report, acceptance,
consent, waiver, appointment or other communication required or permitted hereunder. All notices
shall be in writing and shall be considered given either: (i) when delivered in person to the
recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in
the United States mail in a sealed envelope as either registered or certified mail with return receipt
requested, and postage and postal charges prepaid, and addressed to the recipient named below; or
(iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and
postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with
a known and reliable next-day document delivery service (such as Federal Express), charges
prepaid and delivery scheduled next-day to the recipient named below, provided that the sending
party receives a confirmation of delivery from the delivery service provider . All notices shall be
addressed as follows:
If to City: City of Santa Ana
Community Development Agency
20 Civic Center Plaza (M-26)
P.0. Box 1988
Santa Ana, California 92702
Attention: Housing Manager
With a copy to: Office of the City Attorney
City of Santa Ana
20 Civic Center Plaza, 7th Floor (M-29)
Santa Ana, California 92702
If to Developer: During construction:
Jamboree Housing Corporation
EXHIBIT 5
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17701 Cowan Ave., Suite 200
Irvine, CA 92614
Attention: Chief Executive Officer
Following construction:
Jamboree Housing Corporation
17701 Cowan Ave., Suite 200
Irvine, CA 92614
Attention: Asset Manager
With copies to: Rutan & Tucker, LLP
18575 Jamboree Road, 9th Floor
Irvine, CA 92612
Attention: Patrick D. McCalla
And to: WISEPlace
1411 N. Broadway
Santa Ana, CA 92706
Attention: Brateil Aghasi
And to: Odu & Associates, PC
31805 Temecula Parkway #720
Temecula, CA 92592
Attention: Nkechi C. Odu, Esq.
9.3.2 Change of Address. Either Party may, by notice given at any time, require
subsequent notices to be given to another person or entity, whether a party or an officer or
representative of a Party, or to a different address, or both. Notices given before actual receipt of
notice of change shall not be invalidated by the change.
9.4 Severability. If any term, provision, covenant or condition of this Agreement shall
be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected
thereby to the extent such remaining provisions are not rendered impractical to perform, taking
into consideration the purposes of this Agreement.
9.5 Interpretation and Governing Law. This Agreement and any dispute hereunder
shall be governed and interpreted in accordance with the laws of the State of California without
regard to conflict of law principles. This Agreement shall be construed as a whole according to
its fair language and common meaning to achieve the objectives and purposes of the Parties hereto,
and the rule of construction to the effect that ambiguities are to be resolved against the drafting
Party shall not be employed in interpreting this Agreement, all Parties having been represented by
counsel in the negotiation and preparation hereof.
9.6 Section Headings. All section headings and subheadings are inserted for
convenience only and shall not affect any construction or interpretation of this Agreement.
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9.7 Singular and Plural. As used herein, the singular of any word includes the plural,
and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include
the other as context so dictates.
9.8 Intentionally Omitted.
9.9 Time of Essence. Time is of the essence in the performance of the provisions of
this Agreement as to which time is an element.
9.10 Computation of Days. Unless otherwise specified in this Agreement or any Exhibit
attached hereto, use of the term "days" shall mean calendar days. For purposes of this Agreement
and all Exhibits attached hereto, "business days" shall mean every day of the week except
Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a)
or successor statute, and any days in which Santa Ana City Hall is closed for business.
9.11 Waiver. Failure by a Party to insist upon the strict performance of any of the
provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon
the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand
strict compliance by the other Party with the terms of this Agreement thereafter.
9.12 Non-Discrimination. In performing its obligations under this Agreement,
Developer shall not discriminate because of race, color, creed, religion, sex, marital status, sexual
orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable
law, in the recruitment, selection, training, utilization, promotion, termination or other related
activities. Developer affirms that it is an equal opportunity employer and shall comply with all
applicable federal, state and local laws and regulations.
9.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall
have any right of action based upon any provision of this Agreement.
9.14 Force Majeure. Neither Party shall be deemed to be in default where failure or
delay in performance of any of its obligations under this Agreement is caused by floods,
earthquakes, other Acts of God, fires, epidemics or pandemics as declared by federal, state, or local
emergency resolution, wars, riots or similar hostilities, strikes and other labor difficulties beyond
the Party's control (including the Party's employment force), court actions (such as restraining
orders or injunctions), or other causes reasonably beyond the Party's control, including delays by
any governmental entity (although the City may not benefit from this provision for a delay that
results from City's failure to perform its obligations under this Agreement), or an insurance
company of either party. If any such events shall occur, the term of this Agreement and the time
for performance by either Party of any of its obligations hereunder may be extended by the written
agreement of the Parties for the period of time that such events prevented such performance.
9.15 Mutual Covenants. The covenants contained herein are mutual covenants and also
constitute conditions to the concurrent or subsequent performance by the Party benefited thereby
of the covenants to be performed hereunder by such benefited Party.
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9.16 Successors in Interest. The burdens of this Agreement shall be binding upon, and
the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to
this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and
constitute covenants running with the land. Each covenant to do or refrain from doing some act
hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon
every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding
upon each Party and each successor in interest approved pursuant to this Agreement during
ownership of the Property or any portion thereof.
9.17 Counterparts. This Agreement may be executed by the Parties in counterparts,
which counterparts shall be construed together and have the same effect as if all of the Parties had
executed the same instrument.
9.18 Jurisdiction and Venue. Any action at law or in equity under this Agreement or
brought by a Party hereto for the purpose of enforcing, construing or determining the validity of
any provision of this Agreement shall be filed and tried in the Superior Court of the County of
Orange, State of California, and the Parties hereto waive all provisions of law providing for the
filing, removal or change of venue to any other court.
9.19 Project as a Private Undertaking. It is specifically understood and agreed by and
between the Parties hereto that the development of the Project is a private development, that neither
Party is acting as the agent of the other in any respect hereunder, and that each Party is an
independent contracting entity with respect to the terms, covenants and conditions contained in
this Agreement. No partnership, joint venture or other association of any kind is formed by this
Agreement. The only relationship between City and Developer is that of a government entity
regulating the development of private property and the Developer of such property.
9.20 Further Actions and Instruments. Each of the Parties shall cooperate with and
provide reasonable assistance to the other to the extent contemplated hereunder in the performance
of all obligations under this Agreement and in the satisfaction of the Project and conditions of this
Agreement. Upon the request of either Party at any time, the other Party shall promptly execute,
with acknowledgment or affidavit if reasonably required, and file or record such required
instruments and writings and take any actions as may be reasonably necessary under the terms of
this Agreement to carry out the intent and to fulfill the provisions of this Agreement or the Project
or to evidence or consummate the transactions contemplated by this Agreement. City hereby
authorizes City Manager to take such other actions and negotiate and execute any additional
agreements or amendments to this agreement as may be reasonably necessary or proper to fulfill
the City's obligations under this Agreement. The City Manager may delegate her or his powers
and duties under this Agreement to an authorized management level employee of the City.
9.21 Estoppel Certificate. Within ten (10) business days following a written request by
any of the Parties, the other Party shall execute and deliver to the requesting Party a statement
certifying that (i) either this Agreement is unmodified and in full force and effect or there have
been specified (date and nature) modifications to the Agreement, but it remains in full force and
effect as modified; and (ii) either there are no known current uncured defaults under this
EXHIBIT 5
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Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The
statement shall also provide any other reasonable information requested. The failure to timely
deliver this statement shall constitute a conclusive presumption that this Agreement is in full force
and effect without modification, except as may be represented by the requesting Party, and that
there are no uncured defaults in the performance of the requesting Party, except as may be
represented by the requesting Party.
9.22 No Subordination; Mortgagee Protection; Covenants Do Not Impair Liens. City's
approval of the necessary land use entitlements that authorize Developer to develop, operate, and
maintain the Project or to cause the development, operation and maintenance of the Project was
based upon Developer's obligation to provide the Affordable Units pursuant to the State Density
Bonus Law, City Density Bonus for Affordable Housing, and the terms and conditions of this
Agreement. For the Term of the Density Bonus Housing Agreement, this Agreement shall have
priority over any and all mortgages, deeds of trust, and other similar forms of secured financing
recorded against the Property or any portion thereof. Developer expressly understands and
acknowledges that state law requires preservation of affordability covenants in connection with
the approval of this density bonus project. This Agreement shall not prevent or limit Developer, in
Developer’s reasonable discretion, from encumbering the Property or any portion thereof of or any
improvement thereon by any mortgage, deed of trust or other security device securing financing
with respect to the Property or Project and such action shall not constitute an assignment of this
Agreement. No violation or breach of covenants, conditions, restrictions, provisions, or limitations
contained in this Agreement shall defeat or render invalid or diminish or in any way impair the
lien or charge of any mortgage or deed of trust or security instrument.
9.23 Attorneys' Fees and Costs. If either Party to this Agreement commences an action
against the other Party to this Agreement arising out of or in connection with this Agreement, the
prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs
of investigation, and costs of suit from the losing Party.
9.24 Authority to Execute. The person or persons executing this Agreement on behalf
of each Party warrants and represents that he or she/they have the authority to execute this
Agreement on behalf of his or her/their corporation, partnership or business entity and warrants
and represents that he or she/they has/have the authority to bind the Party to the performance of its
obligations hereunder.
{Signatures on following page}
EXHIBIT 5
EXHIBIT 5
EXHIBIT 5
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9138-126780\1517029.2
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
EXHIBIT 5
Order No: 09196820-919-KRC-KRE
EXHIBIT “A”
All that certain real property situated in the County of Orange, State of California, described as follows:
PARCEL 1:
THE EAST 130.00 FEET OF THAT PORTION OF THE LAND ALLOTTED TO JACOB ROSS, AS DESCRIBED IN
THE FINAL DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, WHICH WAS ENTERED
SEPTEMBER 12, 1869 IN BOOK “B”, PAGE 410 OF JUDGMENTS OF THE DISTRICT COURT OF THE 17TH
JUDICIAL DISTRICT IN AND FOR LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED, AS FOLLOWS:
BEGINNING AT A POINT 1028.50 FEET SOUTH OF THE NORTHEAST CORNER OF SECTION 12, TOWNSHIP 5
SOUTH, RANGE 10 WEST, SAN BERNARDINO MERIDIAN;
THENCE WEST 319.70 FEET TO A PORTION THE CENTERLINE OF SYCAMORE STREET, AS DESCRIBED IN
THAT CERTAIN FINAL JUDGMENT, SUPERIOR COURT CASE NO. 23280, A CERTIFIED COPY OF WHICH WAS
RECORDED JANUARY 8, 1929 IN BOOK 227, PAGE 401 OF OFFICIAL RECORDS OF ORANGE COUNTY,
CALIFORNIA, SAID POINT BEING THE TRUE POINT OF BEGINNING;
THENCE WEST 310.37 FEET TO THE SOUTHWEST CORNER OF THE LAND DESCRIBED IN A DEED TO T. J.
MULLINIX RECORDED OCTOBER 29, 1897 IN BOOK 33, PAGE 197 OF DEEDS OF SAID ORANGE COUNTY;
THENCE NORTH 77 FEET 1 INCH;
THENCE EAST 310.37 FEET TO SAID CENTERLINE;
THENCE SOUTH 77 FEET 1 INCH TO THE TRUE POINT OF BEGINNING.
PARCEL 2:
THE WEST HALF OF THAT PORTION OF THE LAND ALLOTTED TO JACOB ROSS, AS DESCRIBED IN THE
FINAL DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, WHICH WAS ENTERED
SEPTEMBER 12, 1868 IN BOOK “B”, PAGE 410 OF JUDGEMENT OF THE DISTRICT COURT OF THE 17TH
JUDICIAL DISTRICT IN AND FOR LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT 1028.50 FEET SOUTH OF THE NORTHEAST CORNER OF SECTION 12, TOWNSHIP 5
SOUTH, RANGE 10 WEST, SAN BERNARDINO MERIDIAN;
THENCE WEST 630.00 FEET;
THENCE SOUTH 75.00 FEET;
THENCE EAST 630.00 FEET;
THENCE NORTH 75.00 FEET TO THE POINT OF BEGINNING.
THE EAST LINE OF SAID WEST HALF BEING THE CENTERLINE OF SYCAMORE STREET, AS DESCRIBED IN
THAT CERTAIN FINAL JUDGMENT, SUPERIOR COURT CASE NO. 23280, A CERTIFIED COPY OF WHICH WAS
RECORDED JANUARY 8, 1929 IN BOOK 227, PAGE 401 OF OFFICIAL RECORDS OF ORANGE COUNTY,
CALIFORNIA.
Assessor’s Parcel Number: 398-523-04
MAP
EXHIBIT 5
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9138-126780\1517029.2
EXHIBIT B
TENANT VERIFICATION
EXHIBIT 5
1
TENANT INCOME CERTIFICATION
Initial Certification Recertification Other ____________
Effective Date: _____________________
Move-In Date: ______________________
(MM-DD-YYYY)
PART I - DEVELOPMENT DATA
County: _______________ TCAC#: BIN#:
If applicable, CDLAC#:
Property Name:
Address:
Unit Number: # Bedrooms: Square Footage: ___________
PART II. HOUSEHOLD COMPOSITION
Vacant (Check if unit was vacant on December 31 of the Effective Date Year)
HH
Mbr # Last Name First Name
Middle
Initial
Relationship to Head
of Household
Date of Birth
(MM/DD/YYYY)
Student Status
(Check One)
Last 4 digits of
Social Security #
1 HEAD
2
3
4
5
6
7
PART III. GROSS ANNUAL INCOME (USE ANNUAL AMOUNTS)
HH
Mbr #
(A)
Employment or Wages
(B)
Soc. Security/Pensions
(C)
Public Assistance
(D)
Other Income
TOTALS $ $ $ $
Add totals from (A) through (D), above TOTAL INCOME (E): $
PART IV. INCOME FROM ASSETS
HH
Mbr #
(F)
Type of Asset
(G)
C/I
(H)
Cash Value of Asset
(I)
Annual Income from Asset
TOTALS: $ $
Enter Column (H) Total Passbook Rate
If over $5000 $_____________ X 0.06% = (J) Imputed Income $
Enter the greater of the total of column I, or J: imputed income TOTAL INCOME FROM ASSETS (K) $
(L) Total Annual Household Income from all Sources [Add (E) + (K)] $
HOUSEHOLD CERTIFICATION & SIGNATURES
The information on this form will be used to determine maximum income eligibility. I/we have provided for each person(s) set forth in Part II acceptable verification of
current anticipated annual income. I/we agree to notify the landlord immediately upon any member of the household moving out of the unit or any new member
moving in. I/we agree to notify the landlord immediately upon any member becoming a full time student.
Under penalties of perjury, I/we certify that the information presented in this Certification is true and accurate to the best of my/our knowledge and belief. The undersigned
further understands that providing false representations herein constitutes an act of fraud. False, misleading or incomplete information may result in the termination of
the lease agreement.
Signature (Date) Signature (Date)
Signature (Date) Signature
FT/PT/NA
FT/PT/NA
FT/PT/NA
FT/PT/NA
FT/PT/NA
FT/PT/NA
FT/PT/NA
(Date)
Tenant Income Certification (April 2021)
EXHIBIT 5
Tenant Income Certification (April 2021)2
PART V. DETERMINATION OF INCOME ELIGIBILITY
RECERTIFICATION ONLY:
TOTAL ANNUAL HOUSEHOLD
INCOME FROM ALL SOURCES:
From item (L) on page 1 $
Unit Meets Federal
Income Restriction at:
60% 50%
Current Federal LIHTC
Income Limit x 140%:
$
If Applicable, Current Federal Bond
Income Limit per Family Size:
Household Income as of Move-in:
Or Federal A.I.T. at:
80% 70% 60% 50%
40% 30% 20%
Unit Meets State Deeper
Targeting Income Restriction
at:
Other ______%
Household Income exceeds
140% at recertification:
Yes No
$
$
Household Size at Move-in:
PART VI. RENT
Tenant Paid Monthly Rent: $ Federal Rent Assistance: $____________ *Source: ______
Monthly Utility Allowance:
Other Monthly Non-optional charges:
$ Non-Federal Rent Assistance: $____________ (*0-8)
Total Monthly Rent Assistance: $____________ $
GROSS MONTHLY RENT FOR UNIT:
(Tenant paid rent plus Utility Allowance &
other non-optional charges) $
*Source of Federal Assistance
1 **HUD Multi-Family Project Based Rental Assistance (PBRA)
2 Section 8 Moderate Rehabilitation
3 Public Housing Operating Subsidy
4 HOME Rental Assistance
5 HUD Housing Choice Voucher (HCV), tenant-based
6 HUD Project-Based Voucher (PBV)
7 USDA Section 521 Rental Assistance Program
8 Other Federal Rental Assistance
0 Missing
** (PBRA) Includes: Section 8 New Construction/Substantial Rehabilitation;
Section 8 Loan Management; Section 8 Property Disposition; Section 202
Project Rental Assistance Contracts (PRAC)
Maximum Federal LIHTC Rent Limit for
this unit: $
If Applicable, Maximum Federal & State
LIHTC Bond Rent Limit for this unit:
Unit Meets Federal Rent Restriction at:
Or Federal A.I.T. at:
If Applicable, Unit Meets Bond Rent
Restriction at:
Unit Meets State Deeper
Targeting Rent Restriction at:
$
60% 50%
80% 70% 60%
50% 40% 30%
20%
60%50%
Other: ________%
PART VII. STUDENT STATUS
*Student Explanation:
ARE ALL OCCUPANTS FULL TIME STUDENTS? If yes, Enter student explanation* 1 AFDC / TANF Assistance
(also attach documentation) 2 Job Training Program
Yes No 3 Single Parent/Dependent Child
Enter
1-5
4 Married/Joint Return
5 Former Foster Care
PART VIII. PROGRAM TYPE
Identify the program(s) for which this household’s unit will be counted toward the property’s occupancy requirements.
Select one of the following.
9% Allocated Federal Housing Tax Credit
4% Allocated Federal Housing Tax Credit
Tax-Exempt Bond Only (No tax credits)
Select all that apply.
HOME (including TCAP)
CDBG
Other HUD, including 202, 811, and 236
National Housing Trust Fund
USDA Rural Housing Service, including 514, 515, and 538
Other state or local housing programs
SIGNATURE OF OWNER/REPRESENTATIVE
Based on the representations herein and upon the proof and documentation required to be submitted, the individual(s) named in Part II of this Tenant
Income Certification is/are eligible under the provisions of Section 42 of the Internal Revenue Code, as amended, and the Lan d Use Restriction
Agreement (if applicable), to live in a unit in this Project.
SIGNATURE OF OWNER/REPRESENTATIVE DATE
Current Federal LIHTC Income Limit per
Family Size (Federal Income Restriction at
60%, 50% or A.I.T. (20% - 80%)):$
EXHIBIT 5
Tenant Income Certification (April 2021)3
PART IX. SUPPLEMENTAL INFORMATION FORM
The California Tax Credit Allocation Committee (CTCAC) requests the following information in order to comply with the Housing
and Economic Recovery Act (HERA) of 2008, which requires all Low Income Housing Tax Credit (LIHTC) properties to collect and
submit to the U.S. Department of Housing and Urban Development (HUD), certain demographic and economic information on tenants
residing in LIHTC financed properties. Although the CTCAC would appreciate receiving this information, you may choose not to
furnish it. You will not be discriminated against on the basis of this information, or on whether or not you choose to furnis h it. If you
do not wish to furnish this information, please check the box at the bottom of the page and initial .
Enter both Ethnicity and Race codes for each household member (see below for codes).
TENANT DEMOGRAPHIC PROFILE
HH
Mbr # Last Name First Name
Middle
Initial Race Ethnicity Disabled
1
2
3
4
5
6
7
The Following Race Codes should be used:
1 – White – A person having origins in any of the original people of Europe, the Middle East or North Africa.
2 – Black/African American – A person having origins in any of the black racial groups of Africa. Terms such as “Haitian” apply to this
category.
3 – American Indian/Alaska Native – A person having origins in any of the original peoples of North and South America (including Central
America), and who maintain tribal affiliation or community attachment.
4 – Asian – A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent:
4a – Asian India 4e – Korean
4b – Chinese 4f – Vietnamese
4c – Filipino 4g – Other Asian
4d – Japanese
5 – Native Hawaiian/Other Pacific Islander – A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other
Pacific Islands:
5a – Native Hawaiian 5c – Samoan
5b – Guamanian or Chamorro 5d – Other Pacific Islander
6 – Other
7 – Did not respond. (Please initial below)
Note: Multiple racial categories may be indicated as such: 31 – American Indian/Alaska Native & White, 41 – Asian & White, etc.
The Following Ethnicity Codes should be used:
1 – Hispanic – A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race.
Terms such as “Latino” or “Spanish Origin” apply to this category.
2 – Not Hispanic – A person not of Cuban, Mexican, Puerto Rican, South or Central American, o r other Spanish culture or origin, regardless
of race.
3 – Did not respond. (Please initial below)
Disability Status:
1 – Yes
If any member of the household is disabled according to Fair Housing Act definition for handicap (disability):
•A physical or mental impairment which substantially limits one or more major life activities; a record of such an impairment or
being regarded as having such an impairment. For a definition of “physical or mental impairment” and other terms used, please see
24 CFR 100.201, available at http://fairhousing.com/legal-research/hud-regulations/24-cfr-100201-definitions.
•“Handicap” does not include current, illegal use of or addiction to a controlled substance.
•An individual shall not be considered to have a handicap solely because that individual is a transgender.
2 – No
3 – Did not respond (Please initial below)
Resident/Applicant: I do not wish to furnish information regarding ethnicity, race and other household composition.
(Initials) __________ __________ _________ __________ __________ __________ __________
(HH#) 1. 2. 3. 4. 5. 6. 7.
EXHIBIT 5
Tenant Income Certification (April 2021)4
INSTRUCTIONS FOR COMPLETING
TENANT INCOME CERTIFICATION
This form is to be completed by the owner or an authorized representative.
Part I - Development Data
Enter the type of tenant certification: Initial Certification (move-in), Recertification (annual recertification), or Other. If other, designate the purpose
of the recertification (i.e., a unit transfer, a change in household composition, or other state-required recertification).
Effective Date Enter the effective date of the certification. For move-in, this should be the move-in date.
For annual income recertification’s, this effective date should be no later than one year
from the effective date of the previous (re)certification.
Move-In Date Enter the most recent date the household tax credit qualified. This could be the move-in
date or in an acquisition rehab property, this is not the date the tenant moved into the
unit, it is the most recent date the management company income qualified the unit for
tax credit purposes.
Property Name Enter the name of the development.
County
TCAC#
Enter the county (or equivalent) in which the building is located.
Enter the project number assigned to the property by TCAC. Please include hyphens
between the state abbreviation, four digit allocating year, and project specific number.
For example: CA-2010-123
BIN # Enter the building number assigned to the building (from IRS Form 8609).
Address Enter the physical address of the building, including street number and name, city, state,
and zip code.
If applicable, CDLAC# If project is awarded 4% bonds please enter the project number assigned to the property
by CDLAC. Please include hyphens between the state abbreviation, four digit allocating
year, and project specific number. For example: 16-436
Unit Number Enter the unit number.
# Bedrooms
Square Footage
Vacant Unit
Enter the number of bedrooms in the unit.
Enter the square footage for the entire unit.
Check if unit was vacant on December 31 of requesting year. For example, for the
collection of 2011 data, this would refer to December 31, 2011.
Part II - Household Composition
List all occupants of the unit. State each household member’s relationship to the head of household by using one of the foll owing definitions:
H Head of Household S Spouse U Unborn Child/Anticipated
A Adult Co-Tenant O Other Family Member Adoption or Foster
C Child F Foster child(ren)/adult(s)
L Live-in Caretaker N None of the above
Date of Birth
Student Status
Last Four Digits of Social Security
Number
Enter each household member’s date of birth.
Check FT for Full-time student, PT for Part-time student, or N/A if household member
is not a student and question does not apply.
For each tenant 15 years of age or older, enter the last four digits of the social security
number or the last four digits of the alien registration number. If the last four digits of
SSN or alien registration is missing, enter 0000. For tenants under age 15, social security
number not required, although please enter 0000.
If there are more than 7 occupants, use an additional sheet of paper to list the remaining household members and attach it to the certification.
EXHIBIT 5
Tenant Income Certification (April 2021)5
Part III - Annual Income
See HUD Handbook 4350.3 for complete instructions on verifying and calculating income, including acceptable forms of verification.
From the third party verification forms obtained from each income source, enter the gross amount anticipated to be received for the twelve months
from the effective date of the (re)certification. Complete a separate line for each income -earning member. List each respective household member
number from Part II. Include anticipated income only if documentation exists verifying pending employment. If any adult state s zero-income, please
note “zero” in the columns of Part III.
Column (A) Enter the annual amount of wages, salaries, tips, commissions, bonuses, and other income from employment;
distributed profits and/or net income from a business.
Column (B) Enter the annual amount of Social Security, Supplemental Security Income, pensions, military retirement, etc.
Column (C) Enter the annual amount of income received from public assistance (i.e., TANF, general assistance, disability,
etc.).
Column (D) Enter the annual amount of alimony, child support, unemployment benefits, or any other income regularly
received by the household.
Row (E) Add the totals from columns (A) through (D), above. Enter this amount.
Part IV - Income from Assets
See HUD Handbook 4350.3 for complete instructions on verifying and calculating income from as sets, including acceptable forms of
verification.
From the third party verification forms obtained from each asset source, list the gross amount anticipated to be received dur ing the twelve months
from the effective date of the certification. If individual household member income is provided, list the respective household member number from
Part II and complete a separate line for each member.
Column (F) List the type of asset (i.e., checking account, savings account, etc.)
Column (G) Enter C (for current, if the family currently owns or holds the asset), or I (for imputed, if the family has disposed
of the asset for less than fair market value within two years of the effective date of (re)certification).
Column (H) Enter the cash value of the respective asset.
Column (I) Enter the anticipated annual income from the asset (i.e., savings account balance multiplied by the annual
interest rate).
TOTALS Add the total of Column (H) and Column (I), respectively.
If the total in Column (H) is greater than $5,000, you must do an imputed calculation of asset income. Enter the Total Cash Value, multiply by
0.06% and enter the amount in (J), Imputed Income.
Row (K)
Row (L)
Enter the greater of the total in Column (I) or (J)
Total Annual Household Income From all Sources Add (E) and (K) and enter the total
HOUSEHOLD CERTIFICATION AND SIGNATURES
After all verifications of income and/or assets have been received and calculated, each household member age 18 or older must sign and date the
Tenant Income Certification. For move-in, it is recommended that the Tenant Income Certification be signed no earlier than 5 days prior to the
effective date of the certification.
Total Annual Household Income from all
Sources
Current Federal LIHTC Income Limit per
Unit Meets Federal Income Restriction at
60%, 50% or A.I.T (20% - 80%)
Current Bond Income Limit per Family
Size
Part V – Determination of Income Eligibility
Enter the number from item (L).
Enter the Current Move-in Income Limit for the household size – specifically, the max income
limit for the federal 60%, 50% or A.I.T (20% - 80%) set aside.
Enter the Current most restrictive Move-in Income Limit for the household size – specifically, the
max income limit incorporating both federal and in some instances more restrictive state standards
as reflected in the 50% or 60% set aside detailed in the Bond Regulatory Agreement.
EXHIBIT 5
Tenant Income Certification (April 2021)6
For recertifications only. Enter the household income from the move-in certification.
Enter the number of household members from the move-in certification.
For recertifications only. Multiply the current LIHTC Maximum Move-in Income Limit by
140% and enter the total. 140% is based on the Federal Set-Aside of 20/50 or 40/60, or
A.I.T. (20% - 60% = 140% X 60%, 70% = 140% X 70% and 80% = 140% X 80%) as
elected by the owner for the property, not deeper targeting elections of 30%, 40%,
45%, 50%, etc. Below, indicate whether the household income exceeds that total. If the
Gross Annual Income at recertification is greater than 140% of the LIHTC Income Limit per
Family Size at Move-in date (above), then the available unit rule must be followed.
Check the appropriate box for the income restriction that the household meets according to
what is required by the federal set-aside(s) for the project.
If your agency requires an income restriction lower than the federal limit, enter the percent
required.
Part VI - Rent
Household Income at Move-in
Household Size at Move-in
Current Federal LIHTC Income Limit x
140%
Unit Meets Federal Income Restriction
at or Federal A.I.T. at
Unit Meets State Deeper Targeting
Income Restriction at
Tenant Paid Monthly Rent
Federal Rent Assistance
Non-Federal Rent Assistance
Total Monthly Rent Assistance
Source of Federal Rent Assistance
Monthly Utility Allowance
Other Monthly Non-Optional Charges
Gross Monthly Rent for Unit
Maximum LIHTC Rent Limit for this
unit
Maximum LIHTC Bond Rent Limit for
this unit
Unit Meets Federal Rent Restriction at
or Federal A.I.T. at
Unit Meets Bond Rent Restriction at
Unit Meets State Deeper Targeting Rent
Restriction at
Enter the amount the tenant pays toward rent (not including rent assistance payments such as
Section 8).
Enter the amount of rent assistance received from a federal program, if any.
Enter the amount of non-federal rent assistance received, if any.
Enter the amount of total rent assistance received, if any.
If federal rent assistance is received, indicate the single program source.
Enter the utility allowance. If the owner pays all utilities, enter zero.
Enter the amount of non-optional charges, such as mandatory garage rent, storage lockers,
charges for services provided by the development, etc.
Enter the total of Tenant Paid Rent plus Utility Allowance and other non-optional charges.
The total may NOT include amounts other than Tenant Paid Rent, Utility Allowances and
other non-optional charges. In accordance with the definition of Gross Rent in IRC
§42(g)(2)(B), it may not include any rent assistance amount.
Enter the maximum allowable gross rent for the unit. This amount must be the maximum
amount allowed by the Current Income Limit per Family Size – specifically, the max rent
limit for the federal 50%, 60% or A.I.T. (20% - 80%) set aside. This does not include state
deeper targeting levels.
Enter the maximum allowable gross rent for the unit. This amount must be the maximum
amount allowed by the Current Income Limit per Family Size – specifically, the max rent
incorporating both federal and in some instances more restrictive state standards as reflected
in the 50% or 60% set aside detailed in the Bond Regulatory Agreement.
Indicate the appropriate rent restriction that the unit meets according to what is required by
the federal set-aside(s) for the project.
Indicate the appropriate rent restriction that the unit meets according to what is required by
the federal and state law for the project.
If your agency requires a rent restriction lower than the federal limit, enter the percent
required.
Part VII - Student Status
If all household members are full time* students, check “yes”. Full-time status is determined by the school the student attends. If at least one
household member is not a full-time student, check “no.”
If “yes” is checked, the appropriate exemption must be listed in the box to the right. If none of the exemptions apply, the household is ineligible to
rent the unit.
EXHIBIT 5
Tenant Income Certification (April 2021)7
Part VIII – Program Type
Select the program(s) for which this household’s unit will be counted toward the property’s occupancy requirements. One response from the first
column must be selected.
SIGNATURE OF OWNER/REPRESENTATIVE
It is the responsibility of the owner or the owner’s representative to sign and date this document immediately following execution by the resident(s).
The responsibility of documenting and determining eligibility (including completing and signing the Tenant Income Certificati on form) and ensuring
such documentation is kept in the tenant file is extremely important and should be conducted by someone well trained in tax c redit compliance.
These instructions should not be considered a complete guide on tax credit compliance. The responsibility for compliance with federal program
regulations lies with the owner of the building(s) for which the credit is allowable.
PART IX. SUPPLEMENTAL INFORMATION
Complete this portion of the form at move-in and at recertification’s (only if household composition has changed from the previous
year’s certification).
Tenant Demographic Profile Complete for each member of the household, including minors. Use codes listed on
supplemental form for Race, Ethnicity, and Disability Status.
Resident/Applicant Initials All tenants who wish not to furnish supplemental information should initial this section.
Parent/Guardian may complete and initial for minor child(ren).
EXHIBIT 5
TENANT INCOME CERTIFICATION QUESTIONNAIRE
One Form per Adult Member of the Household
NAME: TELEPHONE NUMBER:
_______________________________________________________ ________________________
Initial Certification BIN #_________________________
Re-certification
Other Unit #_________________________
INCOME INFORMATION
YES NO MONTHLY GROSS INCOME
1. I am self-employed. (List nature of self employment)
_______________________________________________
(use net income from self-employment only)
$_________________
2. I have a job and receive wages, salary, overtime pay, commissions, fees, tips, bonuses, and/or
other compensation: List the businesses and/or companies that pay you:
Name of Employer
1)__________________________________________
2)__________________________________________
3)__________________________________________
$_________________
$_________________
$_________________
3. I receive cash contributions of gifts including rent or utility payments, on an ongoing basis from
persons not living with me.
$_________________
4. I receive unemployment benefits.
$_________________
5. I receive Veteran’s Administration, GI Bill, or National Guard/Military benefits/income.
$_________________
6. I receive periodic social security payments.
$_________________
7. The household receives unearned income from family members age 17 or under (example:
Social Security, Trust Fund disbursements, etc.).
$_________________
8. I receive Supplemental Security Income (SSI).
$_________________
9. I receive disability or death benefits other than Social Security.
$_________________
10. I receive Public Assistance Income (examples: TANF, AFDC)
$_________________
11.
I am entitled to receive child support payments.
I am currently receiving child support payments.
If yes, from how many persons do you receive support? ________
I am currently making efforts to collect child support owed to me. List efforts being made to
collect child support:
$_________________
$_________________
12. I receive alimony/spousal support payments
$__________________
13.
I receive periodic payments from trusts, annuities, inheritance, retirement funds or pensions,
insurance policies, or lottery winnings.
If yes, list sources:
1)_____________________________________
$__________________
$__________________
14. I receive income from real or personal property. (use net earned income)
$__________________
15. Student financial aid (public or private, not including student loans)
Subtract cost of tuition from Aid received
*For Households receiving Section 8 Assistance Only
$__________________
ASSET INFORMATION
YES NO INTEREST RATE CASH VALUE
16. I have a checking account(s).
If yes, list bank(s)
1)_____________________________
2)_____________________________
_______%
_______%
$____________
$____________
Tenant Income Questionnaire (July 2018)
EXHIBIT 5
17. I have a savings account(s)
If yes, list bank(s)
1)________________________________
2)________________________________
_______%
_______%
$_____________
$_____________
18. I have an EBT, Debit Visa, MasterCard account(s). (Including Social
Security wages, Unemployment, Public Assistance, Disability, Etc…)
If yes, list sources(s) of income being received/type of account(s)
1)________________________________
2)________________________________
3)________________________________
$_____________
$_____________
$_____________
19. I have a revocable trust(s)
If yes, list bank(s)
1)_______________________________
_______%
$_____________
20. I own real estate.
If yes, provide description:
_____________________________________________
$____________
21. I own stocks, bonds, or Treasury Bills
If yes, list sources/bank names
1)_______________________________
2)_______________________________
3)_______________________________
______%
______%
______%
$____________
$____________
$____________
22. I have Certificates of Deposit (CD) or Money Market Account(s).
If yes, list sources/bank names
1)_______________________________
2)_______________________________
3)_______________________________
_______%
_______%
_______%
$____________
$____________
$____________
23. I have an IRA/Lump Sum Pension/Keogh Account/401K.
If yes, list bank(s)
1)_______________________________
2)_______________________________
_______%
_______%
$____________
$____________
24. I have a whole life insurance policy.
If yes, how many policies __________
$_____________
25. I have cash on hand.
$_____________
26. I have disposed of assets (i.e. gave away money/assets) for less than the
fair market value in the past 2 years.
If yes, list items and date disposed:
1)_________________________________________
2)_________________________________________
$_____________
$_____________
STUDENT STATUS
YES NO
Does the household consist of all persons who are full-time students (Examples: K-12, College, Trade School, etc.)?
Does the household consist of all persons who have been a full-time student 5 months in the current calendar year?
Does your household anticipate becoming an all full-time student household in the next 12 months?
If you answered yes to any of the previous three questions are you:
• Receiving assistance under Title IV of the Social Security Act (AFDC/TANF/Cal Works - not SSA/SSI)
• Enrolled in a job training program receiving assistance through the Job Training Participation Act (JTPA) or
other similar program
• Married and filing (or are entitled to file) a joint tax return
• Single parent with a dependant child or children and neither you nor your child(ren) are dependent of another
individual
• Previously enrolled in the Foster Care program (currently age 18-24)
UNDER PENALTIES OF PERJURY, I CERTIFY THAT THE INFORMATION PRESENTED ON THIS FORM IS TRUE AND ACCURATE TO THE BEST OF MY/OUR KNOWLEDGE. THE UNDERSIGNED FURTHER
UNDERSTANDS THAT PROVIDING FALSE REPRESENTATIONS HEREIN CONSTITUES AN ACT OF FRAUD. FALSE, MISLEADING OR INCOMPLETE INFORMATION WILL RESULT IN THE DENIAL OF APPLICATION
OR TERMINATION OF THE LEASE AGREEMENT.
_________________________________ ________________________________________ ______________________
PRINTED NAME OF APPLICANT/TENANT SIGNATURE OF APPLICANT/TENANT DATE
_________________________________________________ _____________________
WITNESSED BY (SIGNATURE OF OWNER/REPRESENTATIVE) DATE
Tenant Income Questionnaire (July 2018)
EXHIBIT 5
28
9138-126780\1517029.2
EXHIBIT C
ANNUAL TENANT RECERTIFICATION
EXHIBIT 5
Tax Credit Program Recertification Notice
02/01/2022
Dear Resident:
Our records show that you are due for your annual recertification on Wednesday, June 1, 2022. To complete our review of your
income and family composition, you must meet with Sharese Flowers and supply the required information at least three weeks
before that date. Please contact Sharese Flowers at (909) 889-8417 as soon as possible to set up an appointment.
The Internal Revenue Service (IRS) requires that we annually recertify all household incomes as defined by the section 42 LIHTC
Program. An annual recertification must be completed to continue occupancy in your unit.
Thank you in advance for your cooperation.
Sincerely,
Property Manager
Vista Pointe Apartments
2170 North Rancho Avenue
Colton, CA 92324
Phone: (909) 889-8417 TTY:(711) -
Resident Name
2190 Rancho Avenue
Colton, CA 92324
EXHIBIT 5
29
9138-126780\1517029.2
EXHIBIT D
ANNUAL RENTAL HOUSING COMPLIANCE REPORT
EXHIBIT 5
Project:Date:
Address:Reporting Period:
Total # of Units in the Project:# of Affordable Units:
Very-Low Income Units
Compliance Report Completed By: Low Income Units
Phone Number:
Unit #
Household
Name
Household
Size
Household
Income
# of
Bedrooms
Gross
Rent
Utility
Allowance
Net
Rent
Date 1st
Occupied
Date of Last
Income
Recertification
Income
Restriction
(Very-Low or Low)
HOUSING OPPORTUNITY ORDINANCE COMPLIANCE REPORT
ANNUAL RENTAL HOUSING COMPLIANCE REPORT
Prepared by: Keyser Marston Associates, Inc.
File name: Exhibit D - Annual Rental Housing Compliance.xlsx Page 1
EXHIBIT 5
30
9138-126780\1517029.2
EXHIBIT E
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
EXHIBIT 5
EXHIBIT E
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
NOTICE IS HEREBY GIVEN that the CITY OF SANTA ANA, a charter city and municipal
corporation organized and existing under the Constitution and laws of the State of California, has
entered into a Density Bonus Agreement with North Broadway Housing Partners LP, a
California limited partnership (“Developer”). The Density Bonus Agreement imposes income
and affordability covenants on designated units (the “Affordable Units”) within the property
located at 1411 N. Broadway Avenue, Santa Ana, Orange County, and further described in the
legal description provided in Exhibit A to the Density Bonus Agreement (the “Property”).
The Density Bonus Agreement was recorded as Document/Instrument Number
______________________, and shall remain in effect until _______________ ______, 20____
(the “Termination Date”) (Insert date of the termination of the “Total Affordability Term”). The
Density Bonus Agreement imposes the following income and affordability restrictions on the
Affordable Units.
Number of Bedrooms Extremely-Low
Income
Households
Low
Income
Households
Studio Units 47
One-Bedroom Units
Two-Bedroom Units
Three-Bedroom Units
Four-Bedroom Units
In the event the fee owner of the Property (“Property Owner”) wishes to sell or transfer the
Property prior to the Termination Date, or the Developer wishes to assign the ground lease to the
Property, the City and the Property Owner and/or Developer shall execute and deposit into
escrow, or record against the Property, this Notice of Affordability Covenants on Transfer of the
Property. Further, any assignment of ground lease shall not be effective unless and until the City
and transferee execute the documents necessary to transfer the Density Bonus Agreement
obligations from the Developer to the transferee.
This Notice of Affordability Covenants on Transfer of the Property in no way modifies the
provisions of the Density Bonus Agreement. In the event of any conflict between this Notice of
Affordability Covenants on Transfer of the Property and the Density Bonus Agreement, the
terms of the Density Bonus Agreement shall prevail.
IN WITNESS WHEREOF, the Parties hereto have duly executed this Notice of Affordability
Restrictions on Transfer of Property as of the dates set forth below.
[Signatures on Following Pages]
EXHIBIT 5
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
CITY:
CITY OF SANTA ANA
A California Charter City and Municipal
Corporation
By: _______________________
Name: Kristine Ridge
Its: City Manager_____________
Date: ________________________
APPROVED AS TO LEGAL FORM:
By: ________________________
Ryan O. Hodge
Assistant City Attorney
EXHIBIT 5
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
PROPERTY OWNER:
A
By:_______________________
Name:
Its:
Date: ________________________
EXHIBIT 5
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
DEVELOPER:
A
By:_______________________
Name:
Its:
Date: ________________________
EXHIBIT 5