FULL_AGENDA_2019-01-19 (2) - Laserfiche WebLink

Home Browse Search

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