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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
P
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Judson Brown, City of Santa Ana February 10, 2025 <br />Habitat Wellington – Preliminary Financial Gap Analysis Page 9 <br /> <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br /> <br />Habitat Financial Assistance <br />Habitat proposes to utilize fundraising contributions to off-set a portion of the development <br />costs. As such, Habitat estimates the financial assistance that they will provide to the Project at <br />$590,800, or $65,600 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 $2,833,700 <br />Rental Income 229,700 <br />Habitat Financial Assistance 590,800 <br /> Estimated Available Revenue $3,654,200 <br /> <br />Financial Gap Calculation <br />The financial gap is estimated by deducting the Project’s available revenue from the Project’s <br />total development costs. Based on the preceding analysis, KMA estimates the Project’s financial <br />gap as follows: <br /> KMA <br />Total Development Costs $4,402,000 <br />(Less) Total Available Revenue (3,654,200) <br /> <br />Estimated Financial Gap $747,800 <br />Per Unit $83,100 <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 funding <br />from the City. Since this amount is less than the financial gap identified by KMA, it can be <br />EXHIBIT 5
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