City Hall West
201 S Anaheim Blvd, 2nd Floor
Anaheim, CA 92805
TEL (714) 765-4320
FAX (714) 765-4331
www.anaheim.net
February 28, 2023
Toll West Coast, LLC
350 Commerce, Suite 200
Irvine, CA 92602
Attn: Mr. Isaac Boyd
SUBJECT: Preliminary Funding Commitment Letter by the Anaheim Housing Authority for Down Payment Assistance for the 292- Unit, 100 West Affordable Homeownership Housing Project in Anaheim, California Dear Mr. Boyd:
Toll West Coast, LLC (“Developer”) submitted a request for down payment assistance in the amount of up to $2,900,000 (“Down Payment Assistance”) from the City’s Building Equity and Growth in Neighborhoods (“BEGIN”) program income funds to assist first - time home buyers in Developer’s 100 West homeownership project (“Project”) located at 100-394 West Cerritos Avenue. The Project is being developed in accordance with that certain Density Bonus Memorandum with Community & Economic Development Affordable For-Sale Housing Development dated September 10, 2019, now the Housing & Community Development Department (the “DBL Memorandum”), as memorialized by that certain Density Bonus Housing Agreement dated June 1, 2022 to implement the DBL Memorandum (the “DBH Agreement”).
On January 30, 2018, the Anaheim Housing Authority (“Authority”) approved a Preliminary Funding Commitment, approving down payment assistance for twenty-nine (29) units of the proposed 292-unit homeownership development project described herein as “Project” pursuant to that certain Preliminary Funding Commitment letter dated January 18, 2018 by and between the Authority and Greenlaw Partners, Inc. Greenlaw Partners, Inc. subsequently transferred the development rights of the Project to Toll West Coast, LLC., (“New Developer”), which is currently in the final development stages of the P roject. The New Developer has requested approval to transfer the Preliminary Funding Commitment for the down payment assistance to Toll West Coast, LLC., in order to provide down payment assistance opportunities for moderate -income homebuyers for the Project.
The City of Anaheim’s affordable housing programs include funds received from loan pay-offs, including the BEGIN program. BEGIN funds serve as a revolving fund that help provide homeownership down payment assistance opportunities for moderate- income households.
City of Anaheim
ANAHEIM HOUSING AUTHORITY
City Hall West
201 S Anaheim Blvd, 10th Floor
Anaheim, CA 92805
TEL (714) 765-4320
FAX (714) 765-4331
www.anaheim.net
Toll West Coast, LLC.
Preliminary Funding Commitment Letter by the Anaheim Housing Authority for Down Payment Assistance to the 292-Unit, 100 West Homeownership Affordable Housing Project
February 28, 2023
The Project is a 292-unit, for-sale residential development project consisting of 146 carriage units, 98 towns, and 48 flats, each with two to four bedrooms and ranging from 1,200 to 1,953 square feet. The Project received Density Bonus Housing Incentives as part of the Project entitlements and committed a total of 10% (i.e. 30) of the 292-units as affordable to moderate-income buyers earning up to 120% of the Orange County Median Income as determined by the United States Department of Housing and Urban Development and as set forth by regulation of the California Department of Housing and Community Development, pursuant to California Health and Safety Code Section 50093.
This Preliminary Funding Commitment Letter shall provide Down Payment Assistance for twenty-nine (29) of the thirty (30) affordable units in the Project to assist future moderate-income first-time homebuyers. A total of 30 affordable housing units shall be made available to moderate-income households, sold to initial buyers at an affordable housing cost as more particularly set forth in the DBH Agreement. The remaining 262 units will be non-restricted units will and be sold to above-moderate income buyers.
The Preliminary Funding Commitment Letter outlines the terms and conditions of the Housing Authority’s provision of Down Payment Assistance for the Project. The affordable housing units shall be bound by the affordable housing restrictions.
The Authority has reviewed the Developer’s request to transfer the Preliminary Funding Commitment for Down Payment Assistance to Toll West Coast, LLC., and on February 28, 2023, the Governing Board of the Anaheim Housing Authority authorized issuance of this letter evidencing the Preliminary Funding Commitment of the Down Payment Assistance to the Developer for the Project (“Anaheim Assistance”).
The Authori ty intends that this letter evidences the Authority’s Preliminary Funding Commitment to the Developer for the Project subject to the conditions described below .
Further, the Authority states its objective for the Developer to provide affordable housing units made available to moderate-income households.
The specific amount of the Down Payment Assistance to be provided to the Project will be determined and provided based on the Authority’s review of the prospective buyer’s application for the Down Payment Assistance to be submitted by the buyer . The Authority Executive Director will have the authority to finalize this Preliminary Funding Commitment Letter and approve all implementing documents including loan agreements and affordable housing covenants for the Down Payment Assistance for the Proje ct; provided, however, that the Anaheim Assistance is not materially increased or extended.
The Down Payment Assistance will have the following terms:
i. An amount not to exceed a total sum of $2,900,000 for the Project; ii. An amount up to $100,000 for each moderate-income buyer; iii. Twenty-nine (29) of the 2 bedroom units shall be designated as the A ffordable Housing Units.
City Hall West
201 S Anaheim Blvd, 10th Floor
Anaheim, CA 92805
TEL (714) 765-4320
FAX (714) 765-4331
www.anaheim.net
Toll West Coast, LLC.
Preliminary Funding Commitment Letter by the Anaheim Housing Authority for Down Payment Assistance to the 292-Unit, 100 West Homeownership Affordable Housing Project
February 28, 2023
iv. The Affordable Housing Units shall be disbursed throughout the Project.
The Authority’s disbursement of the Down Payment Assistance to the Project will be subject to each of the following conditions:
i. Submittal of a Site Plan for the Project to the Authority, identifying the location of the Affordable Housing Units , which the parties agree has been satisfied and the agreed upon Site Plan is attached hereto.
ii. Twenty-nine (29) of the 292 housing units will be made available to moderate - income buyers at 120% of the Area Median Income for the initial buyers. iii. The 29 Affordable Housing Units shall be sold at an Affordable Housing Cost for Moderate Income Households and shall be calculated as the product of 35% times 110% of the area median income for Orange County adjusted for the household size appropriate for the unit under HSC Section 50052.5(b)(4). In this regard for a Moderate Income Household the purchase price shall result in an annual out of pocket Monthly Housing Cost in compliance with HSC Section 50052.5, which shall not be less than twenty- eight percent ( 28%) of the gross income of the Homebuyer household, nor exceed the product of thirty-five percent (35%) times one hundred ten percent (110%) of the Area Median Income ("AMI") adjusted for family size appropriate to the housing unit. For purposes of determ ining the Affordable Housing Cost for a Moderate Income Household that has a gross income that exceeds one hundred ten percent (110%) of the AMI adjusted for family size, the Monthly Housing Cost shall not exceed the product of thirty-five percent (35%) of the actual gross income of the Homebuyer household.
Affordable Housing Cost for each Affordable Unit shall be calculated as of the date of the original sale of each Affordable Unit.
iv. The Down Payment Assistance to be provided to the Project will be determ ined and provided based on the Authority’s review of the prospective buyer’s Down Payment Assistance application for the Project to be submitted by the buyer. The Authority Executive Director will have the authority to finalize the Preliminary Funding Com mitment Letter and approve all implementing documents for the Down Payment Assistance for the Project; provided, however, that the Anaheim Assistance is not materially increased or extended.
In addition to the for egoing, notwithstanding any sta tement set forth in this letter, Developer and Authority agree and acknowledge that the Funding Commitment may occur only upon satisfactory completion of the above conditions.
City Hall West
201 S Anaheim Blvd, 10th Floor
Anaheim, CA 92805
TEL (714) 765-4320
FAX (714) 765-4331
www.anaheim.net
Toll West Coast, LLC.
Preliminary Funding Commitment Letter by the Anaheim Housing Authority for Down Payment Assistance to the 292-Unit, 100 West Homeownership Affordable Housing Project
February 28, 2023
Should you have any questions or require additional information, please contact Andy Nogal, Deputy Director, at (714) 765-4368 or by email at [email protected].
Sincerely,
Grace Ruiz-Stepter
Executive Director
cc: Andy Nogal, Deputy Director
AGREED AND ACCEPTED
this __th day of ____________, 2023:
TOLL WEST COAST, LLC
By: Toll West Coast, LLC
By: _________________________
Name: _________________________
Title: _________________________