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Judson Brown, City of Santa Ana <br />Westview House: Financial Gap Analysis <br />March 19, 2020 <br />Page 5 <br />Tax Credit @ 30%AMI/NPLH/ HOME (PSH) 2 26 <br />Tax Credit @ 30%AMI / HOME 37 <br />Tax Credit @ 60%AMI / HOME 21 <br />Unrestricted Manager's Unit 1 <br />Total Units 85 <br />FINANCIAL GAP ANALYSIS <br />KMA prepared a pro forma analysis to estimate the Project's financial gap. The analysis <br />is located at the end of this memorandum, and is organized as follows: <br />Table 1: <br />Estimated Development Costs <br />Table 2: <br />Stabilized Net Operating Income <br />Table 3: <br />Financial Gap Calculation <br />Table 4: <br />Cash Flow Analysis <br />Table 5: <br />HOME Cost Allocation <br />Estimated Development Costs (Table 1) <br />KMA reviewed the Developer's March 19, 2020 pro forma and then independently <br />prepared a pro forma analysis of the Project. The resulting development costs are <br />estimated as follows: <br />Property Acquisition Costs <br />The Developer entered into a purchase and sale agreement on October 11, 2019 to <br />acquire the vacant Site for $6,675,000, or $72 per square foot of land area. The <br />Developer provided an appraisal prepared by James G. Palmer Appraisals, Inc. on <br />January 3, 2020 that estimates the As -Is market value of the property at $6,286,000, or <br />$68 per square foot of land area. As such, the purchase price is $389,000, or <br />approximately 6% higher than the appraised value. <br />2 PSH refers to permanent supportive housing units. <br />2003012:SA:TRB <br />60 B-19 19090.017.022 <br />