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Judson Brown, City of Santa Ana March 19, 2020 <br />Westview House: Financial Gap Analysis Page 11 <br />Operating Subsidy <br />The Developer anticipates that the Project will be awarded an operating subsidy for 26 <br />PBVs from the County of Orange. The PBV subsidy income is equal to the difference <br />between the rent paid by the tenant and the OCHA payment standard rent. In addition, <br />the Developer will request that the OCHA payment standard rent be increased to 110% <br />of the fair market rent. As such, the Developer is applying the following payment <br />standards to the Project: <br />Unit Type Payment Standard <br />One -Bedroom Units $1,964 <br />Two -Bedroom Units $2,438 <br />Effective Gross Income <br />KMA estimates the Project's effective gross income at $1.44 million based on the <br />following: <br />1. The gross tenant -paid rent income is estimated at $1.09 million. <br />2. The gross operating subsidy income is estimated at $416,900. <br />3. The laundry and miscellaneous income is estimated at $15 per unit per month, <br />or $15,300 per year. <br />4. A 5%vacancy and collection allowance is applied to both the tenant -paid rent <br />income and the operating subsidy income. The vacancy and collection allowance <br />is estimated at $75,900. <br />Estimated Operating Expenses <br />The operating expenses are estimated at $6,200 per unit per year based on the <br />following: <br />1. The general operating expenses are estimated at $5,200 per unit per year, which <br />is above the minimum amount required byTCAC. <br />2003012:SA:TRB <br />60 B-25 19090.017.022 <br />