CITY ATTORNEY
Sonia R. Carvalho
CITY MANAGER
Alvaro Nuñez
CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org Councilmember-Requested Item Report
DATE
April 7, 2026
TOPIC
City Council Initiated Proposal Review in Accordance with the City of Santa Ana Affordable Housing Funds Policies and Procedures - Habitat for Humanity Affordable Homeownership Project
COUNCILMEMBER-REQUESTED ITEM TITLE
Discuss and Consider Providing Direction to the City Manager and Community Development Agency to Conduct a Review of a Proposed Habitat for Humanity Affordable Homeownership Project at 502 East Pine Street, Including Evaluation of Potential Affordable Housing Funding to Support the Project.
BACKGROUND
Habitat for Humanity of Orange County (“Habitat”) has requested that the City Council review its proposal and approve a sole-source award of funding allowable under the adopted Affordable Housing Funds Policies and Procedures utilizing the City Council Initiated Proposal Review process (See Exhibit 1 on page 10).
The proposal involves the acquisition and rehabilitation of an existing 18-unit condominium complex located at 502 East Pine Street, which currently operates as rental housing (See Exhibit 2). Habitat proposes to rehabilitate the property and convert the units into permanently affordable homeownership opportunities for low- income working families in Santa Ana. Planned improvements include interior rehabilitation of the units, upgrades to plumbing and electrical systems, and improvements to shared amenities such as the courtyard, laundry facilities, elevator, and parking structure.
The estimated total development cost is approximately $13.07 million, and Habitat has requested $6 million in City affordable housing funding to support acquisition and rehabilitation of the property.
Habitat anticipates completing acquisition, rehabilitation, and resale to qualified first- time homebuyers within approximately 24 months after funding approval.
DISCUSSION
Santa Ana continues to face one of the most competitive housing markets in California, where rising housing costs make homeownership increasingly out of reach for many working families. While the City has made progress in supporting affordable rental housing, opportunities for affordable homeownership remain limited.
This proposal represents an opportunity to:
CITY ATTORNEY
Sonia R. Carvalho
CITY MANAGER
Alvaro Nuñez
CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org Expand homeownership opportunities for Santa Ana residents Support working families building generational wealth Preserve and improve an existing housing asset within the community Stabilize neighborhoods and help prevent displacement Leverage a proven nonprofit housing model that combines public investment, volunteer labor, and homeowner partnership
Initiating a review of this project will allow staff to evaluate its feasibility and determine whether City participation could advance Santa Ana’s goals around housing stability, affordability, and long-term community investment.
Requested Scope of Report and Hearing
Direct the City Manager and Community Development Agency to:
1. Request a complete proposal from Habitat for Humanity.
2. Review and determine if complete proposal has met minimum threshold.
3. If minimum threshold is met, project to undergo an underwriting and subsidy layering review analysis by a real estate advisor selected by the City, to be paid for by Habitat for Humanity.
4. After the analysis has been completed, staff will present the real estate advisor’s analysis and the proposal to City Council for direction without any recommendation(s) from staff on funding or not funding the project.
SUBMITTED BY
Councilmember Benjamin Vazquez
EXHIBIT(S)
1. Affordable Housing Funds Policies and Procedures
2. Habitat for Humanity of Orange County request letter dated March 12, 2026 and attachment