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Judson Brown, City of Santa Ana February 10, 2025 <br />Habitat Wellington – Preliminary Financial Gap Analysis Page 2 <br /> <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br /> <br />The purpose of the KMA analysis is to evaluate Habitat’s financial assistance request. <br />EXECUTIVE SUMMARY <br />As noted previously, the City’s financial assistance package is proposed to be structured in two <br />components: <br />Down Payment Assistance Program Allocation <br />KMA completed a financial gap analysis to evaluate Habitat’s request for $720,000 in Down <br />Payment Assistance Program funds. The results of the KMA financial gap analysis are compared <br />to Habitat’s financial proposal in the following table: <br /> KMA Habitat Difference <br />Total Development Costs $4,402,000 $4,374,200 $27,800 <br />(Less) Total Available Revenue (3,654,200) (3,654,200) (-0-) <br /> <br />Estimated Financial Gap $747,800 $720,000 $27,800 <br /> <br />As shown in the preceding table, KMA estimates the Project’s financial gap at $747,800. <br />Comparatively, Habitat is requesting $720,000 in Down Payment Assistance Program funds <br />from the City. This represents a $27,800, or approximately 4% differential. Habitat will be <br />responsible for any unfunded financial gap above the $7200,000 in financial assistance <br />proposed to be provided by the City. As such, it can be concluded that the City’s proposed <br />Down Payment Assistance Program funding is warranted by the Project’s economics. <br />The City proposes to utilize $720,000 in Inclusionary Funds to provide Down Payment <br />Assistance Program funds to eligible homebuyers. The City Down Payment Assistance Program <br />Allocation is based on providing up to $80,000 per unit in down payment assistance to each <br />eligible Moderate or Low Income homebuyer. <br />Conditional Relocation Allocation <br />The City may utilize up to $200,000 in Inclusionary Funds to provide relocation assistance to <br />existing apartment tenants that do not purchase an affordable unit at the property (City <br />Relocation Assistance). The specific amounts utilized for the Conditional Relocation Allocation <br />EXHIBIT 5