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EXHIBIT 2 <br />Judson Brown, City of Santa Ana May 22, 2019 <br />1126-46 E. Washington Ave: Preliminary Financial Gap Analysis Page 8 <br />Stabilized Net Operating Income (Table 2) <br />The Project's funding sources include Tax Credits, HOME funds and NSP funds. In <br />addition, the Housing Authority Parcel was purchased with Property Tax Increment <br />Housing Set -Aside (Set -Aside) Funds. These programs all publish the applicable income <br />limits for households that are qualified to reside in the development. <br />TCAC and the HOME Program publish rent standards for projects that receive Tax <br />Credits and HOME funds, respectively. Comparatively, Health and Safety Code Section <br />50053 defines the methodology that must be used to calculate the affordable housing <br />costs for projects that include Set -Aside Funds. The Developer will be required to <br />adhere to the strictest of the standards imposed by the funding sources contributed to <br />the Project. <br />Achievable Rent Income <br />The rents used in this analysis are based on 2019 information published by TCAC and <br />HCD, and 2018 information published by the HOME Program.' For the purposes of this <br />analysis, KMA set the HOME rents at the Low HOME standard; however, only 20% of the <br />HOME -designated units need to be restricted to Low HOME rents. The maximum <br />allowable rents, net of the appropriate utility allowances, are estimated as follows:' <br />30% <br />Moderate <br />Low <br />Applicable <br />TCAC <br />H&SC <br />HOME <br />Rents <br />Rent Restriction <br />Studios <br />$575 <br />$1,837 <br />$909 <br />$575 <br />1-Bedrooms <br />611 <br />2,097 <br />969 <br />611 <br />2-Bedrooms <br />723 <br />2,345 <br />1,152 <br />723 <br />3-Bedrooms <br />825 <br />2,592 <br />1,321 <br />825 <br />4-Bedrooms <br />907 <br />2,783 <br />1,460 <br />907 <br />3 As of May 22, 2019, HUD had not yet published the 2019 HOME rents. <br />4 The monthly utility allowances are estimated at: $48 for studio units; $56 for one -bedroom units; $78 for <br />two -bedroom units; $100 for three -bedroom units; and $125 for four -bedroom units. <br />1905019:SA:TRB <br />19090.017.019 <br />FO • <br />