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EXHIBIT 3 <br /> Judson Brown, City of Santa Ana February 10, 2025 <br /> Habitat Wellington — Preliminary Financial Gap Analysis Page 7 <br /> 3. The closing costs related to the sale of each affordable unit are estimated at $3,000 per <br /> unit, or$27,000. <br /> 4. Habitat proposes to fund an $8,000 reserve for the Homeowners Association. <br /> 5. The warranty costs are estimated at $65,000, which equates to approximately$7,200 <br /> per unit. <br /> KMA estimates the total financing costs at $470,000. <br /> TOTAL DEVELOPMFNT COSTS <br /> As shown in Table 1, KMA estimates the total development costs at $4.40 million. In <br /> comparison, Habitat estimates the total development costs at $4.37 million. This represents an <br /> approximately$28,000 differential, which equates to less than 1% of the total development <br /> costs. <br /> r-btimated Available Revenue <br /> KMA estimates the revenue available to the Project as follows: <br /> I UL&KAfE INCOML SALLS PRICt-S- INLLUSIONAKY HOUSINt FUNDS <br /> The City will provide Inclusionary Funds to the Project. As such, KMA estimated the affordable <br /> sales as follows: <br /> 1. The household income used in the calculations is based on the area median income <br /> published by the California Department of Housing and Community Development (HCD) <br /> and adjusted for the number of persons per household (Area Median Income (AMI)). <br /> KMA assumes the household size is estimated at one plus the number of bedrooms <br /> (four persons for a three-bedroom unit). <br /> 2. KMA assumes that the qualifying Moderate Income limits are set at 120% of AMI. <br /> 3. Since the Project consists of more than four units, the Project is required to have an <br /> HOA. Habitat estimates the annual HOA dues at $400 per unit per month. <br /> 4. Habitat estimates the homeowner's insurance cost at 0.75% of the affordable sales <br /> price. <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br />