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EXHIBIT 1 EXHIBIT 5 CSG j advisors I Post Street, Suite 575 Son Francisco, CA 94104 tel. 415,956.2454 Memorandum To: Judson Brown, City of Santa Ana From: John Hamilton, CSG Advisors Dates May 9, 2017 Re: Santa Ana Arts Coffective Financial Feasibility Review SUMMARY Project Overview and the Proposed Meta Housing proposes to develop the Santa Ana Arts Collective (the "Project"), a 58 -unit adaptive reuse of a mid -rise building located In the City of Santa Ana (the "City"). The Project would target artists, and would be affordable to Individuals and families earning from 30% AMI to 60% AM]. The Proposed Financl The Developer proposes to finance the Project though funds committed through the California Housing and Community Development's (HCD) Affordable Housing and Sustainable Communities (AHSC) program, equity from the syndication of 9% federal Low Income Housing Tax Credits (LIHTC), and funds from the City of Santa Ana. The Project has received an allocation of 9% LIHTC from the California Tax Credit Allocation Committee (CTCAC) in the annual amount (for 10 yrs) of $1,790,841; a commitment of $4,635,000 from the City of Santa Ana; and $6,254,630 of funds from AHSC, The Developer has secured senior lender commitments from Wells Fargo (as construction lender) and CCRC (as permanent lender). Conclusion The Project, as analyzed using most recent CTCAC rents and certain budget modifications as proposed by CSG, demonstrates a financial shortfall of ($1,481,215). The City may choose to fill this financing deficit on behalf of the Developer, or require the Developer to pursue other sources. PROJECT FINANCIAL ANALYSIS Project Description Meta Housing (the "Developer"), an experienced developer of affordable housing, proposes an "adaptive reuse" of an existing mid -rise office building. The Project, the Santa Ana Arts Collective, is located at 1666 North Main Street, in Santa Ana. The Developer proposes to convert the building to 58 units (57 affordable units plus 1 unrestricted manager's unit). The Developer proposes to finance the Project with an allocation of 9% low-income housing tax credits (LIHTC), committed funds from the City, end committed funds from HCDs AHSC program. The Developer proposes to target artists as the building's primary residents. The Project would contain affordable units as indicated in Table 1, below. SAN FRANCISCO ATLANTA 8 ANGELES > NEW YORK