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Judson Brown, City of Santa Ana February 10, 2025 <br />Habitat Wellington – Preliminary Financial Gap Analysis Page 14 <br /> <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br /> <br />a. Based on current estimates of market rate sales prices, the City will not be able <br />to secure the full $80,000 per unit in City Down Payment Assistance with silent <br />second mortgages. KMA estimates that approximately $399,200 of the City’s <br />$720,000 in City Down Payment Assistance Program funds will not be able to be <br />secured by the affordable units. <br />b. The affordable sales prices may need to be reduced further in order to entice <br />homebuyers to accept an affordable covenant. <br />6. KMA typically recommends that the City retain 10% of the City’s financial assistance <br />amount (or $92,000) until after the completion of the construction. However, in this <br />instance, the City will provide the Down Payment Assistance Program funds directly to <br />eligible homebuyers and any relocation assistance will be based on actual relocation <br />costs at the time of the relocation of tenants. As such, there is no need to impose a 10% <br />retention requirement on the Project. <br /> <br />EXHIBIT 5