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Judson Brown, City of Santa Ana October 6, 2021 <br />Francis Xavier Residence: Financial Gap Analysis Page 9 <br /> <br /> 2108022:SA:TRB <br /> 19090.017.010 <br /> <br />In addition, the NPLH Program will provide a COSR for eight units in the Project, and the <br />SNHP Program will provide a COSR for four units in the Project. <br />Estimated Effective Gross Income <br />KMA estimates the Project’s effective gross income (EGI) at $196,200 based on the <br />following: <br />1. The gross tenant-paid rents are estimated to total $53,200, which includes <br />laundry and miscellaneous income estimated at $26 per unit per month. <br />2. The gross PBV and COSR subsidies are estimated to total $150,000. <br />3. A 7% vacancy and collection allowance is applied to the gross tenant-paid <br />income and the PBV subsidy income. <br />Estimated Operating Expenses <br />The operating expenses are estimated at $180,800 based on the following: <br />1. The general operating expenses are estimated at approximately $5,700 per unit <br />per year. <br />2. KMA assumes that the Developer will apply for the property tax abatement that <br />is accorded to non-profit housing organizations that own and operate apartment <br />units restricted to households earning less than 80% of the area median income. <br />The property tax assessment overrides are estimated at $5,400. <br />3. The Developer estimates the social services expenses at $56,600, or $3,500 per <br />affordable unit per year. <br />4. The NPLH Loan has a mandatory debt service payment equal to 0.42% of the <br />NPLH Loan amount, which equals $6,600 per year. <br />5. The SNHP Loan has an annual fee of $7,500. <br />6. The replacement reserve deposits are set at $500 per unit per year, which is <br />required by the NPLH Program. <br />EXHIBIT 3