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Judson Brown, City of Santa Ana February 10, 2025 <br />Habitat Wellington – Preliminary Financial Gap Analysis Page 5 <br /> <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br /> <br />However, Habitat will provide current tenants that earn 120% AMI or less and qualify to <br />purchase an affordable unit with a Right of First Refusal to purchase a unit at an affordable <br />sales price. <br />CLOSING COSTS <br />Habitat estimates the closing costs at $69,000 or approximately 2% of the purchase price. <br />Direct Costs <br />The direct costs assume that the Project will be subject to the City’s Community Workforce <br />Agreement. The direct costs can be summarized as follows: <br />1. Habitat estimates the site improvement costs at $30,000, or $3 per square foot of land <br />area. The site improvement costs include asphalt repaving and trash enclosure <br />improvements. <br />2. The building renovation costs are estimated at $76,000, or approximately $8,500 per <br />unit. The scope of rehabilitation includes new water meters, garage doors, windows, <br />and additional repairs required by the insurance company. <br />3. The prevailing wage premium is estimated at 30% of construction costs, or $32,000. <br />4. The general conditions are estimated at 20% of construction costs, or $28,000. <br />5. Habitat will not charge for the costs to supervise the construction of the Project. <br />6. A direct cost contingency allowance equal to 15% of other direct costs is provided. <br />KMA estimates the total direct costs at $191,000, which equates to approximately $21,200 per <br />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 3% of the property <br />assemblage and direct costs, or $103,000. <br />EXHIBIT 5