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Judson Brown, City of Santa Ana October 27, 2022 <br />Habitat Washington Avenue – Preliminary Financial Gap Analysis Page 7 <br /> <br /> 2208010v2:SA:TRB <br /> 19090.018.026 <br /> <br />ESTIMATED AVAILABLE REVENUE <br />The Project’s estimated total available revenue is equal to the sum of the Affordable <br />Sale Price revenue and the Project’s additional revenue. KMA estimates the total <br />available revenue as follows: <br />Affordable Sales Price Revenue $1,053,000 <br />Habitat Financial Assistance $1,001,000 <br /> Estimated Available Revenue $2,054,000 <br /> <br />Financial Gap Calculation <br />The financial gap is estimated by deducting the Project’s available revenue from the <br />Project’s total development costs. Based on the preceding analysis, KMA estimates the <br />Project’s financial gap as follows: <br /> KMA <br />Total Development Costs $4,290,000 <br />(Less) Total Available Revenue (2,054,000) <br /> <br />Estimated Financial Gap $2,236,000 <br />Per Unit $372,700 <br /> <br />As shown in the preceding table, KMA estimates the Project’s financial gap at $2.24 <br />million. Comparatively, Habitat estimates the Project’s financial gap at $2.20 million. <br />This equates to a $36,000, or less than 2% differential, which is primarily due the <br />difference in affordable sales price calculations between KMA and Habitat. <br />Per Habitat’s assistance request, the City proposes to provide up to $2.20 million in <br />Inclusionary Housing Funds to the Project. Since this amount is less than the financial <br />gap identified by KMA, it is therefore KMA’s conclusion that the proposed assistance <br />package will not provide a windfall profit to Habitat. <br />EXHIBIT 3