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EXHIBIT 3 <br />Judson Brown, City of Santa Ana January 9, 2019 <br />Francis Xavier Residence: Preliminary Financial Gap Analysis Page 8 <br />The Authority will provide VASH Vouchers for three of the income -restricted units. The <br />VASH payments are based on the difference between the rent paid by the tenant and <br />the fair market rent (FMR) approved by HUD. The 2019 FMRs are as follows: <br />1. $1,599 per unit per month for the one -bedroom units; and <br />2. $1,996 per unit per month for the two-bedroom units. <br />In addition, the NPLH Program will provide a COSR for nine one -bedroom units in the <br />Project. The Developer estimates the FMR for the COSR units at $845 per unit per <br />month. <br />Estimated Effective Gross Income <br />KMA estimates the Project's effective gross income (EGI) at $142,600 based on the <br />following: <br />1. The gross tenant -paid rents are estimated to total $40,300. <br />2. The gross VASH and COSR subsidies are estimated to total $118,100. <br />3. A 10% vacancy and collection allowance is applied to the gross income. <br />Estimated Operating Expenses <br />The operating expenses are estimated at $88,300 based on the following: <br />1. The general operating expenses are estimated at $5,700 per unit per year. <br />2. KMA assumes that the Developer will apply for the property tax abatement that <br />is accorded to non-profit housing organizations that own and operate apartment <br />units restricted to households earning less than 80% of the area median income. <br />The property tax assessment overrides are estimated at $4,200. <br />3. The Project's operating budget does not include any social service expenses. Per <br />the Developer, under the NPLH Program the social services will be provided by <br />the County of Orange or their designated service provider to provide social <br />services to the Project's residents. <br />1901007:SA:TRB <br />19090.017.010 <br />3-25 <br />