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Judson Brown, City of Santa Ana <br />Lacy Street Project: Preliminary Financial Gap Analysis <br />EXHIBIT 2 <br />January 18, 2019 <br />Page 7 <br />building exterior. Habitat estimates the maintenance reserve deposits at $275 <br />per unit per month. <br />3. The monthly utilities costs are set at $178 per month for the three-bedroom <br />home and $209 per month for the four-bedroom home based on the 2019 Utility <br />Allowance Schedule published by the Authority. <br />4. The property tax cost estimate is based on 1.12% of the Affordable Sales Price. <br />5. The mortgage interest rate is set at 5.0%. The mortgage is assumed to be fully <br />amortizing over 30 -years and provided by a conventional lender. <br />6. The home buyer down payment is set at 5% of the Affordable Sales Price. <br />Affordable Sales Revenue <br />Based on the assumptions outlined above, KMA estimates the moderate income <br />Affordable Sales Prices as follows: <br />Three -Bedroom Unit $417,900 <br />Four -Bedroom Unit $452,100 <br />The resulting total affordable sales revenue is estimated at $870,000. In comparison, <br />Habitat estimates the Affordable Sales Prices at $407,000 per unit, which totals <br />$814,000 in affordable sales revenue. Habitat did not provide their Affordable Sales <br />Price calculations. <br />Additional Revenue <br />Habitat proposes to utilize In -Kind Contributions to off -set a portion of the construction <br />costs. Habitat estimates the In -Kind Contributions available to the Project at $28,000 <br />per unit, or $56,000. <br />• A • <br />L�' <br />1901009:9A:TRB <br />19090.017.011 <br />