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Judson Brown, City of Santa Ana <br />Westview House: Financial Gap Analysis <br />March 19, 2020 <br />Page 13 <br />KMA estimates that the Project's stabilized NOI can support $13.98 million in Bonds. <br />Tax Credit Proceeds <br />KMA estimates the net Tax Credit proceeds at $11.61 million. This estimate is calculated <br />based on the following assumptions: <br />1. The Project's eligible Tax Credit basis is equal to the lesser of the depreciable <br />costs for the 85 Tax Credit units, or the threshold basis limits established by <br />TCAC. In this case, the depreciable costs of $30.10 million are less than the <br />threshold basis limits. <br />2. The Project is located in a designated "Difficult to Develop" census tract. This <br />allows the requested eligible basis to be increased by 30%. <br />3. The Developer set the annual Tax Credit rate at 3.19%. This rate is applied over <br />the 10-year Tax Credit period. <br />4. 100% of the Project's residential building area is included in the eligible basis is <br />located in units that qualify for Tax Credits. <br />5. The net syndication value supported by the Tax Credit is ultimately determined <br />based on competitive market conditions, and on the timing of disbursements. <br />Based on currently available information, the Developer estimates the proceeds <br />at $0.93 per gross Tax Credit dollar. <br />NPLH Loan <br />The Developer proposes to apply fora $7.11 million NPLH Loan from HCD in the next <br />NPLH funding round anticipated to be in the Fall 2020. The $7.11 million amount is <br />based on the maximum per unit loan limits in place at the time of this analysis. <br />Rising Tide Loan <br />The Developer received a commitment letter from Rising Tide, a non-profit affordable <br />housing investment group, to provide a $1.0 million loan (Rising Tide Loan). <br />2003012:SA:TRB <br />60 B 7 19090.017.022 <br />