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4 • RSG would be available for meetings and/or conference calls with City staff and developers. All meetings will be attended by either an RSG Principal or Associate. RSG can also assist with negotiating financial deal points to be included in any agreement between the selected developer and review or evaluate any alternate or subsequent developer pro forma revisions. HOME Subsidy Layering: Subsidy layering occurs when a project receives funds from more than one governmental source. Jurisdictions planning to combine HOME funds and other governmental funds for an affordable multi -family residential project must conduct an evaluation to demonstrate that the project will not receive more HOME funding than necessaryto provide affordable housing. RSG can prepare analysis that will comply with the published Housing and Urban Development ("HUD") Guidelines (CPD 98-1). HUD has prepared a HOME Multifamily Underwriting Evaluation Template (HOME Template) to assist jurisdictions in demonstrating that the project will not receive more HOME funds than necessary to provide affordable housing. The HOME Template is designed.to incorporate HOME Program requirements into the planning and analysis of the project as.well as accommodate the requirements of another affordable housing program. Site and neighborhood standards of 24 CFR 983.6(b) and 987.57(e) apply to new construction of rental housing, which places limiting conditions on building in areas of "minority concentration" and that are "racially mixed." RSG understands that if a Project falls within this category a Site and Neighborhood Standard Analysis will also be required. • RSG review includes Development & Operating Pro. Forma detailing: Review the developer's development pro forma to determine the reasonableness of estimated development costs, revenue assumptions and proposed financing structure, including, but not limited to, the potential for receiving HOME funds. A review as to whether the costs being funded by the HOME Program are eligible and the HOME funds per unit do not exceed the maximum per -unit subsidy limits. The HOME Program requires a review of rents, expenses, cash flows, and tax benefits. RSG will conduct an evaluation to determine whether the cash flow projections are reasonable given current economic conditions. • Project Evaluation: RSG will prepare a memorandum along with the completed HOME Template, detailing our findings and recommendations regarding the economic feasibility of the proposed development, as well as whether the total requested amount of HOME funding and other governmental assistance exceeds the amount necessary to make the project feasible due to the unreasonableness of the costs and/or projected rate of return. • Site and neighborhood standards Review: RSG will research and determine that the Project site is of adequate size, exposure, and contour to the proposed development, has adequate utilities, and not in an area of minority concentration. Our findings will be incorporated into the memorandum. Fiscal and Economic Impacts and Related Cash Flow Projections: RSG could provide the following analysis for proposed development projects, customized based on the details of each proposed development. Some of the details provided below are based on common preferences and could be customized for the City's preference at the time a deliverable is requested. • Forecast recurring City General Fund revenue impacts. RSG could prepare a 10-yearforecast of post - stabilization General Fund revenues directly attributed to a project. Direct revenues would be selected based on the proposed development and the City of Santa Ana's tax rates. Revenues could be calculated for the City. Projected revenues would be conservatively estimated and discounted to current dollars using a comparable municipal finance risk factor. Separately, in the case of proposed residential development, RSG could include an estimate of consumer spending In Santa Ana due to additional residents being added to the City. • . Forecast recurring City General Fund expenditures. Based on best practices for this type of an estimate, RSG could project the resulting additional demand on City services and their associated costs. For infill projects, additional costs are not expected to be particularly burdensome, but RSG would consider service thresholds that may be affected by incremental development. Generally, RSG