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<br />City of Santa Ana Community Development Agency <br />Request for Proposals for Affordable Housing Development <br />Page 10 <br />For all projects, the narrative must also address site control, current zoning and any required zoning <br />changes, anticipated development costs, City and Authority funds required, requested City and Authority <br />loan terms, developer access to additional funds required for the project, and proof that the property is <br />under contract. A site map showing the project’s location should accompany this narrative. <br /> <br />The narrative must include a description of the various sources of financing that will be needed to <br />complete the project as either a 4% Low-Income Housing Tax Credit deal and as a 9% Low-Income <br />Housing Tax Credit deal. The narrative should provide a projected tie breaker score for 9% Low-Income <br />Housing Tax Credits with a best case and worst case scenario based on the capital stack being pursued, <br />with a relative comparison to the most recent tie breaker scores for the type of project being proposed in <br />the last three 9% tax credit rounds. Clearly state if the project will be ready to apply for 9% Low-Income <br />Housing Tax Credits during FY 2022 – 2023. This should include evidence of progression towards <br />planning entitlements and other requirements necessary for the tax credit application. Clearly state if the <br />project will be competing with another project owned by the developer in Orange County for an upcoming <br />9% Low-Income Housing Tax Credit round, including a comparison of the projected tie breaker scores <br />for both projects. <br /> <br />3) Development Pro Forma. Identify the sources and uses of all funds necessary to complete the project, <br />including the project’s anticipated cash flows over a period of years equal to 15 years and 30 years. The <br />pro forma should identify important underlying assumptions that govern the cash flows, including but not <br />necessarily limited to, the amounts and frequency of loan repayments (all sources), annual rent increases, <br />occupancy levels, operating costs as a percent of revenue, timing and amounts of replacement costs. The <br />cost estimates in the Sources and Uses budget should assume the payment of Davis-Bacon prevailing <br />wages and relocation benefits, if applicable. The pro forma must include a calculation of the return on <br />investment to the developer. Please make sure to include the following: <br /> <br /> Land Costs <br />o The property assemblage costs should include the following if applicable: acquisition costs, <br />relocation costs, demolition costs, and closing costs. The developer should include an appraisal <br />and the proposed purchase and sale agreement (if available). <br /> <br /> Construction Costs <br />o Identify whether the direct cost estimate reflects a premium for prevailing wages <br /> <br /> Provide a direct construction cost breakdown (include a contractor’s detailed estimate, if available) that <br />disaggregates the following information: <br />o Off-site improvements; <br />o On-site improvements; <br />o Parking costs; <br />o Residential shell costs; <br />o Community room/office space costs; <br />o Commercial space shell costs; <br />o Commercial space tenant improvement costs; <br />o General conditions; <br />o Contractor fees; and <br />o Direct cost contingency allowance. <br /> <br /> Provide a breakdown of the project’s indirect costs such as: <br />o Architecture, engineering and consulting fees; <br />o Public permits and fees costs including all city fees, school district fees, impact fees and any <br />other fees that would be assessed on the projects; <br />o Taxes, legal and accounting costs; <br />EXHIBIT 1