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 10 2206004.SA.TRB 19090.018.025 housing projects. Per the Developer, the Heroes Landing project currently operates at $7,200 per unit. Heroes Landing includes 76 units, and as such, economies of scale will be lost at the Project due to its smaller size. In addition, given that the Project is 100% PSH units, the Developer is implementing voice- down security measures, which adds $36,000 to the annual operating budget. 2. KMA assumes the Developer will apply for the property tax abatement that is accorded to non-profit housing organizations that own and operate apartment units that are restricted to households earning less than 80% of the Median. The Developer estimates that the Project will incur $6,700 per year in property tax assessment override costs. 3. The Developer is proposing to provide social services at an estimated cost of $149,800 per year, or $3,170 per PSH unit. This estimate is at the high end of the typical range. Per the Developer, this budget includes a 1.5 full-time equivalent (FTE) case manager, a 0.5 FTE resident services coordinator, and miscellaneous expenses such as staff benefits, supplies and indirect costs including administration, insurance, legal and accounting. The City should develop a social services plan with the Developer to ensure that the social services provided to the Project align with the Developer’s proposed social services budget. 4. The Project will be subject to an OCHFT monitoring fee set at $4,800 per year. 5. The Developer provided an allowance for replacement reserve deposits at $360 per unit per year, which meets the requirements of both TCAC and the OCHFT Program. Stabilized Net Operating Income The Project’s effective gross income is estimated at $583,000, and the operating expenses are estimated at $583,000. This results in an estimated stabilized net operating income of $0. It’s important to note, that the Project’s NOI would be negative without the subsidy provided by the COSR. EXHIBIT 3