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Judson Brown, City of Santa Ana December 10, 2024 <br />Habitat Alton – Preliminary Financial Gap Analysis Page 5 <br /> <br /> 2412001v2.SA.TRB <br /> 19090.018.038 <br /> <br />system, utility connections, paving, landscaping, open space areas and street <br />improvements. <br />2. The building costs are estimated at $10.70 million, or approximately $267,500 per unit. <br />3. The general conditions are estimated at 2.5% of construction costs, or $367,000. <br />4. Habitat will charge for the costs to supervise the construction of the Project. Habitat set <br />the supervision costs at $320,000, which is based on $12,800 per month for 25 months. <br />5. A direct cost contingency allowance equal to 10% of other direct costs is provided. <br />KMA estimates the total direct costs at $16.89 million, which equates to approximately <br />$422,200 per unit. <br />Indirect Costs <br />KMA utilized the following assumptions in estimating the indirect costs: <br />1. The architecture, engineering and consulting costs are estimated at 6% of direct costs, <br />or $1.01 million. <br />2. Habitat estimates the public permits and fees costs at $45,700 per unit, or $1.83 million. <br />City staff should verify the accuracy of this estimate. <br />3. The taxes, insurance, legal and accounting costs are estimated at 3% of direct costs, or <br />$507,000. <br />4. The Developer Fee is set at $844,000 which is based on the following: <br />a. Management and Overhead costs are set at $444,000 based on: <br />i. Project Management: $3,500 per month for 24 months; and <br />ii. Administration: $10,000 per month for 36 months. <br />b. Habitat will charge the Project to provide homeownership services to potential <br />affordable homebuyers. Habitat set this fee at $10,000 per unit. <br />5. An indirect cost contingency allowance equal to 10% of other indirect costs is provided. <br />EXHIBIT 3