25J - AGMT ARTS COLLECTIVE GRANT

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The NOI is projected to be positive through Year 55. Thus, it is concluded that the Project will have a positive cash flow during the term of the HOME affordability and loan terms. E. Profit and Returns The following analyzes the anticipated profit to the Developer/Owner. Developer Fees $2,000,000, which is the maximum allowed per TCAC. Cash Flow The Developer will receive 50% of the annual residual receipts, which are estimated to total $3.57 million over 55 years, or a net present value of $306,000. This equates to an estimated 3% IRR based on the $2.0 million deferred Developer Fee provided by the Developer. Tax Benefits The Project will generate $17.53 million in Federal Tax Credits that will be sold to Bank of America and the cash will be used as equity in the Project. Equity Appreciation The equity appreciation is not expected to be significant until year 56 when the units are converted to market rate units. identity of Interest Roles No related parties will be benefiting from the Project. In conclusion, the developer fee, cash flow projection, equity appreciation, and profit anticipated to be generated by the Project are appropriate. IV. DEVELOPER ASSESSMENT The Developer, Meta Housing Corporation, was founded in 1993 and is based in Los Angeles, California. The Developer develops and manages affordable and mixed -income apartment communities throughout California. The Developer's model focuses on projects that are financially viable, architecturally pleasing, affirmatively marketed with fairly selected tenants, service enriched, well-built and maintained, and compliant with all funder requirements. Since 1993, the Developer has developed more than 8,700 residential units with costs of over $2.1 billion. These projects include a grocery store in South Los Angeles, adaptive reuse of a nine -story bank building in Los Angeles's Chinatown, numerous arts colonies, housing for veterans and formerly homeless individuals and families, along with many transit -oriented and inclusionary housing developments. The following provides an assessment of the experience and the capacity of the Developer to implement the Project, as well as the fiscal soundness of the Developer to meet its financial obligations and risks of the Project. City of Santa Ana HOME Subsidy Layering Review: Santa Ana Arts Collective Page 113 25J-35