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EXHIBIT 2 <br />Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 <br />Bewley Street — Preliminary Financial Gap Analysis Page 11 <br />KMA estimates the Developer will need to provide a $2.77 million loan to the Project. <br />Based on an 8.25% interest rate, the annual interest rate payments would equate to <br />$228,500 per year. <br />Fundraising / Grant Funds <br />The Developer proposes to utilize the following additional funding sources for the <br />Project: <br />1. The Developer has secured $1 million in fundraising dollars. <br />2. The Developer has committed to securing at least $1.50 million in additional <br />fundraising dollars for the Project. <br />TOTAL AVAILABLE FUNDING SOURCES <br />As shown in Table 3, KMA estimates the outside funding sources available to the Project <br />at $5.27 million. <br />ESTIMATED FINANCIAL GAP <br />Based on the preceding analysis, KMA estimates the Project's financial gap as follows: <br />Total Development Costs $7,339,00 <br />(Less) Total Available Outside Funding Sources (5,269,500) <br />Financial Gap $2,069,500 <br />Per Unit $188,100 <br />As shown in the table above, KMA estimates that the Project exhibits a $2.07 million <br />financial gap. In comparison, the Developer is requesting $2.02 million in financial <br />assistance from the City. This represents a $48,200, or less than 3% differential, which <br />can be considered inconsequential for a Project of this scope. <br />2306002v3.SA.TRB <br />19090.018.028 <br />