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Judson Brown, City of Santa Ana February 10, 2025 <br />Habitat Wellington – Preliminary Financial Gap Analysis Page 6 <br /> <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br /> <br />2. Habitat estimates the public permits and fees costs at $3,800 per unit, or $34,000. City <br />staff should verify the accuracy of this estimate. <br />3. The taxes, legal and accounting costs are estimated at 3% of direct costs, or $103,000. <br />4. Habitat estimates the insurance costs at $27,000 or $3,000 per unit. <br />5. The Developer Fee is set at $207,000 which is based on the following: <br />a. Management and Overhead costs are set at $4,000 per month for an 18-month <br />development period. <br />b. Habitat will charge the Project to provide homeownership services to potential <br />affordable homebuyers. Habitat set this fee at $15,000 per unit. <br />6. An indirect cost contingency allowance equal to 7% of other indirect costs is provided. <br />KMA estimates the total indirect costs at $507,000. <br />Financing Costs <br />1. The interest costs to be incurred during the development period are estimated at <br />$340,000. This cost estimate is based on the following: <br />a. Habitat states that a $3.0 million predevelopment/construction loan will be <br />obtained from a third party lender for the Project. <br />b. KMA assumes the predevelopment/construction loan will carry the following <br />terms: <br />i. A 7.56% interest rate; <br />ii. An 18-month development period; and <br />iii. A 100% average outstanding balance. <br />2. The financing fees for the predevelopment/construction loan are estimated at 1.0 point, <br />or $30,000. <br />EXHIBIT 5