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Judson Brown, City of Santa Ana June 4, 2022 <br />WISEPlace PSH Preliminary Financial Gap Analysis Page 9 <br /> <br /> 2206004.SA.TRB <br /> 19090.018.025 <br /> <br />Rent Restriction <br /> Studio <br />Units <br />30% AMI TCAC / Low HOME / 30% SSI (PSH)2 <br />Number of Units 47 <br />Low HOME Rent $1,186 <br />TCAC Rent $711 <br />30% SSI Rent 3 $286 <br />Applicable Rent $286 <br /> <br />Estimated Effective Gross Income <br />KMA estimates the Project’s effective gross income (EGI) at approximately $583,300 <br />based on the following assumptions: <br />1. The gross rental income is estimated at $161,300. <br />2. The PBV subsidy overhang is estimated at $418,800 based on a payment <br />standard of $1,682 for studio units. <br />3. Laundry and miscellaneous income is estimated to average $9 per unit per <br />month for a total of $5,200 per year. <br />4. A vacancy and collection allowance equal to 7% of gross rental income is <br />provided, which equates to $41,000. <br />5. The first year COSR withdrawal is estimated at $39,000 <br />Estimated Operating Expenses <br />KMA estimates the Project’s operating expenses at approximately $583,400 based on <br />the following assumptions: <br />1. The general operating expenses are estimated at approximately $8,450 per unit <br />per year. This is at the high end of the typical range for similar affordable <br /> <br />2 AMI = Area Median Income <br />3 Per Developer. <br />EXHIBIT 3