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Judson Brown, City of Santa Ana December 10, 2024 <br />Habitat Alton – Preliminary Financial Gap Analysis Page 7 <br /> <br /> 2412001v2.SA.TRB <br /> 19090.018.038 <br /> <br />It is important to note that the site plan and development scope have not been finalized. Given <br />the preliminary nature of Habitat’s proposal, this analysis will need to be revised if the scope of <br />development changes materially. <br />Estimated Available Revenue <br />KMA estimates the revenue available to the Project as follows: <br />LOW INCOME SALES PRICES – HOME UNITS <br />The Project is required to designate at least 30 units as HOME units. The HOME Program does <br />not define a methodology for setting the affordable sales prices. As such, KMA estimated the <br />Low Income sales prices for the HOME units as follows: <br />1. The household income used in the calculations is based on the Low Income limits <br />published by HUD. KMA assumes the household size is estimated at one plus the <br />number of bedrooms (four persons for a three-bedroom unit). <br />2. Since the Project consists of more than four units, the Project is required to have an <br />HOA. Habitat estimates the annual HOA dues at $400 per unit per month. <br />3. Habitat estimates the homeowner’s insurance cost at 0.75% of the affordable sales <br />price, or approximately $2,250 per year. <br />4. The annual utilities are based on the utility allowances published by the Santa Ana <br />Housing Authority (SAHA) as of October 1, 2024. KMA assumes the homeowners will pay <br />for: electric cooking, electric heating, electric water heating, basic electricity, air <br />conditioning, water, sewer and trash. <br />5. Habitat estimates the property tax cost based on 1.25% of the estimated affordable <br />sales price. <br />6. The mortgage interest rate is set at 7.0%. The mortgage is assumed to be fully <br />amortizing over 30 years and provided by a conventional lender. <br />7. The homebuyer downpayment is set at 5% of the affordable sales price. <br />Based on the assumptions outlined above, KMA estimates the Low Income Affordable Sales <br />Prices for the HOME units at $300,200. <br />EXHIBIT 3