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Judson Brown, City of Santa Ana February 21, 2019 <br />Budget Inn: Preliminary Financial Gap Analysis Page 10 <br />The Project is a special needs project, and per TCAC regulations, is allowed to <br />increase the eligible construction cost Tax Credit basis by 30%. <br />4. The annual Federal Tax Credit rate is set at 9.0%. This rate is applied over the <br />10 -year Federal Tax Credit period. <br />5. 100% of the Project's building area that is included in eligible basis is located in <br />units that qualify for Federal Tax Credits. <br />6. The net syndication value supported by the Tax Credit is ultimately determined <br />based on competitive market conditions and on the timing of disbursements. <br />Based on currently available information, the Developer estimates the proceeds <br />at $0.97 per gross Tax Credit dollar. <br />OCCF Loan <br />The Developer is proposing to apply for a loan of $1.50 million from OCCF. <br />VHHP Loan <br />The Developer is proposing to apply for a loan of $3.56 million from the VHHP Program. <br />AHP Loan <br />The Developer is proposing to apply for a loan of $890,000 in AHP funds. <br />Deferred Developer Fee <br />The Developer is proposing to defer $139,000, or 8% of the Developer Fee that is <br />included in the Project's development costs. The deferred amount will be repaid from <br />the cash flow generated by the Project overtime. <br />Total Available Outside Funding Sources <br />As shown in Table 3, the outside funding sources available to the Project are estimated <br />at $28.08 million. <br />Financial Gap Calculation <br />Based on the preceding analysis, KMA estimates the Project's financial gap as follows: <br />1902016.SA.TRB <br />80B-28 19090.017.009 <br />