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The Project's EGI is estimated at $1,353,000 and the operating expenses are estimated at <br />$596,000. This results in an estimated stabilized NO1 of $757,000 <br />C. Financial Gap Analysis (Table 3) <br />A va!/a b/e fun ding Sources. - <br />The following summarizes the available funding sources: <br />Conventional Loan <br />Union Bank provided the Developer with an executed term sheet, dated June 6, 2018, for an up <br />to $23,000,000 construction loan and an estimated $9,790,000 permanent loan. The following <br />summarizes the associated loan terms: <br />1. Construction Loan: <br />a. An interest rate based on the 30-day LIBOR rate plus a 1.60% loan spread, which <br />has been set at 5.58%; <br />b. A 24-month term; <br />C. The loan is secured with a first trust deed during the construction period; and <br />d. The Developer is to provide a construction completion guaranty and repayment <br />guaranty. <br />2. Permanent Loan: <br />a. A 15-year term and a 40-year amortization; <br />b. Loan sizing based on 1.15 debt coverage ratio and maximum 80% loan to value <br />ratio based on a bank commissioned appraisal; <br />C. The loan will be secured with a first trust deed for the term of the loan; and <br />d. A currently estimated interest rate of 5.56%. <br />e. The permanent loan is currently estimated at $10.30 million, but will be finalized <br />at permanent loan closing. <br />f. The estimated annual debt service payment is $642,546. <br />9%Tax Credits <br />The Project received a $12,648,740 competitively awarded Tax Credit allocation from TCAC in a <br />Reservation Letter dated June 13, 2018. Union Bank has also committed to provide Tax Credit <br />equity at a rate of $1.02 per gross Tax Credit dollar. The equity will be provided as follows: <br />City of Santa Ana Underwriting & Subsidy Layering Review: Veteran's Village Page J 9 <br />25B-43 <br />