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Funding <br />Conventional Loan <br />Source <br />Provided by California Community Reinvestment Corporation (CCRC) <br />9% Tax Credits <br />Allocated byTCAC, Provided by Bank of America as Investor <br />HOME Loan <br />Provided by City for construction of the Project <br />AHSC AHD Loan <br />Provided by California Housing and Community Development <br />Department (HCD) <br />AHSC Program Grant <br />Provided by HCD <br />Deferred Developer Fee <br />Provided by Developer <br />The KMA analysis concluded the following: <br />1. Underwriting Analysis: <br />The Project costs are estimated at $35,896,000 and the available funding sources <br />are estimated at $33,218,000, resulting in a financial gap of approximately <br />$2,678,000. The financial gap estimated by KMA is $51,000, or approximately <br />2% higher than the Developer's request of HOME funds from the City. Thus, the <br />analysis demonstrates that the proposed $2,627,000 in HOME assistance is <br />necessary to provide the proposed affordable housing units. <br />b. The cash flow analysis projects that the Project will have positive cash flow <br />through the 55 -year affordability and loan term. <br />C. The developer fee, cash flow projection, equity appreciation, and profit <br />anticipated to be generated by the Project are appropriate. <br />The Developer has demonstrated the development capacity and fiscal soundness to <br />undertake the Project. <br />3. The Developer provided a market study prepared by Novogradac & Company, LLP., <br />which demonstrates that there will be sufficient demand in the market area to absorb <br />the 57 affordable units within two to three months of opening. <br />4. Other HOME Requirements: <br />HOME Program Deadlines The Project is estimated to meet the construction <br />commencement, Project completion and Project lease -up <br />requirements imposed by HOME.' <br />Written Agreement The 2017 HOME Loan Agreement and Amendment meets <br />the HOME requirements for written agreements. <br />'The Project is currently under construction. The HOME Program regulations allow participating jurisdictions to <br />commit additional HOME funds up to one year after the completion of construction. <br />City of Santa Ana HOME Subsidy Layering Review: Santa Ana Arts Collective Page 12 <br />25J-24 <br />