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12 the County a memo detailing our recommendation regard ingthe County funding request. The memo also summarized strengths and weaknesses of the project and our review of the pro forma assumptions. RSG highlighted potential changes to the pro forma that could increase the project's financial feasibility and result in less County funding needed. • Developer Capacity Evaluation — RSG performed analyses indicating the feasibility of potential projects, highlighting whether any gap financing is needed. RSG also scrutinized the developer's assumptions to ensurethat the anticipated costs, revenues, and operating and replacement reserves were realistic and not over/understated. This included a detailed look at developerfees and deferred fees. Additionally, RSG prepared a long-term cash flow to ensure that prospective developers could remain solvent as an operator throughout the duration of the affordability period. RSG, delivered a peer review pro forma analysis, consisting of detailed construction and project phasing assessment, a phasing and post -stabilization 55-year operating forecast, and various measures of return on investment based on the proposed developer's preferred disposition of the project once developed. Housing, Real Estate, and Economic Development Consulting Services —City of South Gate Housing Authority RSG has worked with the City of South Gate Housing Authority since 2014. Since this time, we have assisted the City on a number of engagements including: • 9001-15 Long Beach Boulevard — RSG provided project feasibility and financial advisory services to the Housing Authority for the redevelopment of this property with Habitat for Humanity. Because of the unique nature of the ownership, RSG facilitated the creation of an ENA with Habitat that provides a framework for a combination of a mixed ownership and rental project to be operated by Habitat that fulfills a wide range of affordability, including the typically difficult to produce extremely low rental market. • 9019 Long Beach Boulevard — RSG provided site acquisition and relocation services to the Housing Authority who is currently in the process of assembling this property for a potential second phase for the project at 9001-15 Long Beach Boulevard. As part of this, RSG evaluated marked conditions, available financing, and corresponding restrictions for the larger project. RSG's role includes coordinating due diligence, including solicitation of environmental consultants, review of Phase II inspection reports, and advisory services to the client regarding their findings. Negotiations are ongoing with the seller due to elevated lead contamination discovered on the site. • Inclusionary Housing — As part of the City Council's desire to address the threat of gentrification with redevelopment in the community, RSG was asked to evaluate and present options for an inclusionary housing policy for consideration by the City. RSG conducted a review of fee levels in surrounding LA County communities, provided a policy framework to guide the rationale for an ordinance in the City, and provided informational briefings to the City Councilmembers. In June 2019, the City Council directed staff and RSG to prepare an ordinance and fee for consideration. • Grant Application Assistance — RSG prepared the SB 2 Planning Grant for the City of South Gate, which sought to fund and/or reimburse various programmatic and procedural changes at the City to help expedite the production of all types of housing. Working closely with staff, RSG identified eligible projects and potential uses that required a nexus finding that RSG documented. The City was awarded funding for the grant earlier this year and has requested RSG's services to assist with applying for the program's year 2 funding, the Permanent Local Housing Allocation Grant. RSG continues to work with City staff on completing the grant application for submission in late July. • Annual Reporting — RSG prepares the annual Housing Successor Agency expenditure report and the Housing Authority Annual Report for South Gate (as well as several other RSG clients). As part of this work, RSG is proactive to engage our clients in the identification of issues and opportunities for investment to maximize the use of these resources. • Lease Negotiations — The City, as housing successor, owns a commercial building on Tweedy Boulevard as an interim use following the dissolution of redevelopment. After the City recognized that a long-term plan for disposition or redevelopment is needed for the site, RSG assisted the City