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EXHIBIT 3 <br /> Judson Brown, City of Santa Ana February 10, 2025 <br /> Habitat Wellington — Preliminary Financial Gap Analysis Page 5 <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 Cost <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 /> 2412002v3.SA.TRB <br /> 19090.018.035 <br />