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Item 18 - Approve a Pre-Commitment for HOME Program Funds
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Item 18 - Approve a Pre-Commitment for HOME Program Funds
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2/26/2025 11:45:44 AM
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City Clerk
Doc Type
Agenda Packet
Agency
Community Development
Item #
18
Date
3/4/2025
Destruction Year
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Judson Brown, City of Santa Ana December 10, 2024 <br />Habitat Alton – Preliminary Financial Gap Analysis Page 8 <br /> <br /> 2412001v2.SA.TRB <br /> 19090.018.038 <br /> <br />MODERATE INCOME SALES PRICES <br />The City is only providing HOME funds to the Project. The $9.81 million in proposed HOME <br />assistance requires at least 30 Low Income units. Habitat proposes to restrict the remaining ten <br />units to moderate income households. The City is amenable to Habitat establishing the <br />affordable sales prices for the Moderate Income units. Habitat is currently estimating the <br />moderate income sales prices at $389,500. <br />AFFORDABLE SALES PRICE REVENUE <br />KMA estimates that the 30 Low Income units will generate $9.01 million in affordable sales <br />revenue. Based on Habitat’s proposed moderate income sales prices, the 10 Moderate Income <br />units will generate $3.90 million in affordable sales revenue. As such, the total affordable sales <br />revenue is estimated at $12.90 million. <br />However, it is important to note that the affordable sales prices will ultimately be determined <br />immediately prior to the sale of each unit. This analysis may need to be revised if the affordable <br />sales prices differ from the sales prices utilized in this analysis. <br />ADDITIONAL REVENUE <br />Habitat proposes to utilize fundraising contributions to off-set a portion of the construction <br />costs. As such, Habitat estimates the financial assistance that they can provide to the Project at <br />$4.54 million, or $113,400 per unit. <br />ESTIMATED AVAILABLE REVENUE <br />The Project’s estimated total available revenue is equal to the sum of the Affordable Sales Price <br />revenue and the Project’s additional revenue. KMA estimates the total available revenue as <br />follows: <br />Affordable Sales Price Revenue $12,901,000 <br />Habitat Financial Assistance $4,537,000 <br /> Estimated Available Revenue $17,438,000 <br /> <br />EXHIBIT 3
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