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EXHIBIT 5 Judson Brown, City of Santa Ana November 8, 2018 Cornerstone Apartments Rehabilitation Analysis Page 4 The sales proceeds are proposed to be allocated in a typical fashion. The proposed allocation complies with the City Loans prohibition on JHC receiving any cash proceeds from a sale of the Project until the City Loans are fully repaid. Proposed Rehabilitation Scope JHC engaged EMG to conduct a Physical Needs Assessment (PNA) for the Project that complies with the requirements imposed by the California Tax Credit Allocation Committee and by Fannie Mae. The PNA was used as a starting point in the development of a proposed rehabilitation scope for the Project. In addition, based on the results of a resident needs survey, JHC is proposing to add parking lifts to the Project which will provide 30 additional parking spaces. JHC is also proposing to install a solar photovoltaic system to serve the Project. It is anticipated that the execution of the proposed rehabilitation scope will meet the physical needs exhibited by the Project over the next 15 years. The proposed scope also meets tenants' needs by providing additional parking and a solar voltaic system that will reduce the energy costs incurred by the tenants. Developer Fee The Developer has included a $2,158,000 Developer Fee in the Project's budget. This Fee represents approximately 15% of the development costs excluding the Project acquisition costs. The proposed Developer Fee comports with the requirements imposed by the Tax Credit program. Moreover, it is KMA's opinion that given the amount of rehabilitation work that is proposed to be undertaken, a Developer Fee of this magnitude is acceptable. It should also be noted that the Developer has agreed to defer $1,050,000 of the Developer Fee. This represents nearly half of the total Developer Fee amount. The deferred amount will be recouped from the cash flow generated by the Project over time. 1810020.SNA:KHH 19190.017.003