This project aligns with the City’s housing priorities by:
• Creating 18 permanently affordable homeownership opportunities for low-income working families
• Preserving and improving an existing housing asset within the community • Stabilizing housing for families and supporting long-term neighborhood vitality • Leveraging Habitat’s model of volunteer engagement and homeowner partnership to maximize public investment
Habitat OC anticipates completing acquisition, rehabilitation, and resale of the homes to qualified first - time homebuyers within 24 months of funding award. To align with project planning and due diligence timelines, we respectfully request that the City Council initiate the proposal review process in anticipation of a potential funding consideration in September–October 2026 (see attached City Policy).
Habitat for Humanity of Orange County has a long history of partnering with the City of Santa Ana to expand access to affordable homeownership. We appreciate the City’s leadership in addressing the housing needs of working families and look forward to the opportunity to further discuss this project with the Council.
Thank you for your consideration.
Sincerely,
Michael Valentine
President and CEO
Habitat for Humanity of Orange County
Attachments: City of Santa Ana Affordable Housing Policies and Procedures - City Council Initiated Proposal Review
Project Description – Pine Street
cc Nunez, Alvaro [email protected]
Garcia, Michael (CDA) [email protected]
Brown, Judson [email protected]
de la Rosa, Velma [email protected]
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Affordable Housing Funds
Policies and Procedures
City of Santa Ana
Housing Division
and
Housing Authority of the
City of Santa Ana
Originally Adopted March 20, 2018
1st Amendment: August 18, 2020
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Affordable Housing Funds Policies and Procedures Page 10 Proposal Review
After each deadline for the Open RFP Process, the Housing Division staff shall review the Proposal to determine that the minimum Program and RFP Process requirements are met (minimum threshold review). Proposals that do not meet the minimum threshold review will be considered non-responsive. If the Proposal meets the minimum threshold review, the Housing Division will form a Review Panel. The Review Panel for the RFP Process will consist of at Community Development Agency and one outside agency or government-entity. If an employee is not available in one department, a second employee may be requested from one of the other two departments so long as there are at least two of the three City Agencies represented on the Review Panel.
Using the scoring and selection criteria provided in the RFP Process and provided below, the Review Panel shall determine whether the proposal is recommended for a pre-loan commitment, with or without conditions. Including the scoring and selection criteria, the Review Panel shall review the design of the proposed project 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. Proposed projects must receive a minimum threshold score of 75 points to move forward with the proposal review process. If the Review Panel determines, in its discretion, that the Proposal may be recommended for approval, the Housing Division shall request an underwriting and subsidy layering review by a real estate advisor selected by the City. The real estate advisor shall confirm the underwriting for the Project, the financial gap, and other programmatic requirements related to the funding sources. If the Review Panel determines that the Proposal will not be recommended for approval (i.e. the Proposal does not meet the minimum threshold score of 75 points), the Developer will be notified in writing of the decision and the result will be published in the Housing Division Quarterly Report.
City Council Initiated Proposal Review
A Developer may submit a request for a sole source award of funding directly to the City Council (the request cannot exceed the amount of the total Available Funds as published on a quarterly basis in the Housing Division Quarterly Report). At least one Councilmember must then submit a written request to staff to review . After a written request has been received, staff will request a complete proposal from the Developer. After the proposal has met a minimum threshold review by staff, the project will undergo an underwriting and subsidy layering review analysis by a real estate advisor selected by the City, to be paid for by the Developer. After the analysis has been completed, staff will present the real estate analysis and the proposal to City Council for direction without any recommendation(s) from staff on funding or not funding the project. If City Council requests a second real estate analysis to be conducted, the City will pay for the second analysis, not the developer.
City Council Initiated Proposal Review
A Developer may submit a request for a sole source award of funding directly to the City Council (the r equest cannot exceed the amount of the total Available Funds as published on a quarterly basis in the Housing Division Quarterly Report ). A t least one Councilmember must then submit a written request to staff to review . After a written request has been received, staff will request a complete proposal from the Developer . After the proposal has met a minimum threshold review by staff, the project will undergo an underwriting and subsidy layering review analysis by a real e state advisor selected by the City , to be paid for by the Developer. After the analysis has been completed, staff will present the real estate analysis and the proposal to City Council for direction without any recommendation(s) from staff on funding or not funding the project . If City Council requests a second real estate analysis to be conducted, the City will pay for the second analysis, not the developer.
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502 East Pine Street
Santa Ana, CA 92701
Overview: Habitat for Humanity of Orange County is evaluating the acquisition and rehabilitation of an existing multifamily condominium complex located at 520 East Pine Street. The project will convert the property into 18 permanently affordable homeownership opportunities for low-income working families in Santa Ana.
Project Cost: $13,071,680
Condo Complex
Description: Multifamily complex originally developed as a condo complex and currently has inactive HOA. Desirable unit mix consisting of 3, 2 bed/1.5 bath units, 10, 2 bed/1.5 bath townhomes, and 5, 3 bed/2 bath units. Three bedrooms are flats. Two-bedroom
- units are two-stories. Amenities include controlled access, private patios or balconies, elevator service, a gated subterranean parking garage, and on-site laundry. The complex has been operating as a rental property with no individual condo owners.
Project Goal: Complete a major rehabilitation of unit interiors and common areas to improve safety, durability, and quality of life for residents, while reducing future maintenance risk and ensuring long-term affordability for homeowners.
• Create 18 affordable homeownership opportunities for low-income working families • Provide first-time homeownership opportunities in Santa Ana’s competitive housing market • Preserve and improve an existing housing asset in the community • Stabilize housing for families and strengthen neighborhood vitality • Support long-term affordability through Habitat’s homeownership model Rehab Scope
(Preliminary): Habitat OC plans to complete substantial interior upgrades, including:
• New flooring
• Interior painting
• Renovation of kitchens (cabinets, counters, fixtures as appropriate) • Renovation of bathrooms (finishes and fixtures as appropriate) • Plumbing and electrical systems will be assessed and, if necessary, upgraded to support long-term performance and reliability.
• The building currently has heating only and no air conditioning. Habitat will evaluate the feasibility and cost of adding mini-split HVAC systems as part of the rehabilitation strategy, taking into account electrical capacity, and long-term operating impacts.
• To enhance safety and building function, Habitat OC will rehabilitate the common areas, including:
- Courtyard improvements, including water proofing and protective treatments as needed - Laundry room upgrades
- Elevator improvements/renovation
Due Diligence
Plan: During the due diligence phase, Habitat OC will engage qualified consultants to evaluate existing conditions and identify requirements, compliance obligations, and cost drivers. Planned assessments include:
• Phase I Environmental Site Assessment
• Lead-based paint testing
• Asbestos testing, including testing of popcorn ceilings as applicable • Structural engineering review
• Additional specialty consultants as needed (e.g., building systems, accessibility, and code compliance) HOA and Reserve
Considerations Habitat OC recognizes that HOA dues and reserves play a direct role in long-term homeowner stability. The rehabilitation plan will prioritize improvements that:
• Reduce future emergency repairs and unplanned assessments • Support appropriate reserve planning and long-term replacement cycles • Help mitigate upward pressure on HOA costs by addressing key building and common area needs proactively
Timeline: Habitat OC anticipates completing acquisition, rehabilitation, and resale of homes to qualified first-time homebuyers within 24 months of a funding award. Habitat OC is requesting that the City Council Initiated Proposal Review process be initiated now in anticipation of a potential funding consideration in September– October 2026.
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