80A - AFFORD HOUSING LOAN - Laserfiche WebLink

Home Browse Search

EXHIBIT 3 Judson Brown, City of Santa Ana January 3, 2019 Santa Ana United Methodist Church: Financial Gap Analysis Page 8 Credit basis.2 In addition, the Bond funds must be sufficient to cover the construction costs that do not have funding from other sources. In this case, the Project's estimated N01 can only support a $1.13 million Bond; this will be called the Series A Bond. To fulfill the 50% test, and to provide bridge funding for costs that will be paid for by other sources upon the Project's completion, a Series B Bond totaling $34.47 million must be obtained. The sum of the Series A Bond and the Series B Bonds totals $35.60 million. The financing costs for the Project are estimated as follows: 1. The construction period and absorption period interest costs are estimated at $1.99 million. These costs are based on the following assumptions: a. The construction period interest costs are based on a 4.0% interest rate, an 18 -month construction period, and a 60% average outstanding balance. b. The absorption period interest costs are based on a six-month absorption period with a 100% average outstanding balance. 2. The financing fees for the Bonds are estimated at 1.50 points, or $534,000. 3. The following capitalized reserves will be provided: a. The Developer estimates the costs to provide bus passes to the Project's residents at $609,000; and b. A $176,000 capitalized operating reserve is provided, which equates to three months of operating expenses and debt service payments .3 4. The Tax Credit fees are estimated at $159,000 based on the following assumptions: z The Developer will ground lease the Site from the Santa Ana United Methodist Church. Thus, there are no land acquisition costs. 3 Per the Developer, for the purposes of calculating the capitalized operating reserve, the operating expenses exclude property taxes, social service expenses, bond issuer fees, and replacement reserve deposits. 1812009:SA:TRB 19090.017.008