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Judson Brown, City of Santa Ana <br />Westview House: Financial Gap Analysis <br />March 19, 2020 <br />Page 2 <br />KMA Developer Difference <br />Total Development Costs $39,020,000 $39,017,000 $3,000 <br />(Less) Outside Funding Sources (35,125,000) (35,113,000) (12,000) <br />Financial Gap $3,895,000 $3,904,000 ($9,000) <br />As shown in the preceding table, KMA estimates the Project's financial gap at <br />$3,895,000. Comparatively, the Developer is requesting $3,904,000 in financial <br />assistance from the City. This equates to less than 1% differential, which can be <br />considered inconsequential. However, the KMA and Developer analyses differ on a line <br />item by line item basis. <br />Proposed Funding Sources <br />The following summarizes the proposed funding sources for the Project: <br />1. The Project's stabilized net operating income (NOI) supports $13.98 million in <br />Tax -Exempt Multifamily Bonds (Bonds), which are allocated by the California <br />Debt Limit Allocation Committee (CDLAC). <br />2. The Developer is proposing to utilize 4% Federal Low Income Housing Tax Credits <br />(Tax Credits) that are automatically awarded to projects that receive a Bond <br />allocation from CDLAC. The net Tax Credit proceeds are estimated at $11.61 <br />million. <br />3. The Developer intends to apply for 26 Section 8 Project -Based Vouchers (PBVs) <br />from the County of Orange. The PBVs are allocated to the Orange County <br />Housing Authority (OCHA) by the United States Department of Housing and <br />Urban Development (HUD). <br />4. The Developer propose to apply for a $7.11 million loan of No Place Like Home <br />Program (NPLH) funds that is awarded by the California Department of Housing <br />and Community Development (HCD). <br />2003012:SA:TRB <br />60 B-16 19090.017.022 <br />