Item 62 - Pre-Commitment of Affordable Housing Funds for Jamboree Housing Corporation and WISEPlace

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Judson Brown, City of Santa Ana June 4, 2022 WISEPlace PSH Preliminary Financial Gap Analysis Page 8 2206004.SA.TRB 19090.018.025 In addition, as noted above, the direct cost estimates are at the high end of the typical range. KMA recommends that the City require the Developer to receive three general contractor bids, and ensure that all subcontractors are competitively bid out. If the costs included in the final general contractor contract differ from those utilized in this analysis, this analysis may need to be updated accordingly. STABILIZED NET OPERATING INCOME (TABLE 2) The Project’s funding sources include Tax Credits, an OCHFT Loan, and an AHP Loan. In addition, the City intends to utilize HOME – American Rescue Plan (HOME-ARP) funds for the Project. These programs publish the applicable income limits for households that are qualified for reside in the development. TCAC publishes rent standards for projects that receive Tax Credits. In addition, the HOME Program publishes rent standards that KMA recommends the City utilize to comply with HOME-ARP regulations. Given that the Project is structured as a 100% PSH project reserved for homeless households, the Developer assumes that the tenants will pay rent payments equal to 30% of Supplemental Security Income (SSI). The Developer will be required to adhere to the strictest of the standards imposed by the funding sources contributed to the Project. Achievable Rent Income The Project rents must adhere to the most restrictive of the requirements imposed by the funding sources. The rents used in this analysis are based on 2022 information published by HUD and TCAC. The maximum allowable rents, net of the appropriate utility allowances, are estimated as follows:1 1 The Project will pay for all utilities. Therefore, no utility allowance is deducted from the rents. EXHIBIT 3