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EXHIBIT 3 <br /> Judson Brown, City of Santa Ana February 10, 2025 <br /> Habitat Wellington — Preliminary Financial Gap Analysis Page 8 <br /> 5. The annual utilities are based on the utility allowances published by the Santa Ana <br /> Housing Authority (SAHA) as of October 1, 2024. KMA assumes the homeowners will pay <br /> for: electric cooking, electric heating, electric water heating, basic electricity, air <br /> conditioning, water, sewer and trash. <br /> 6. Habitat estimates the property tax cost based on 1.25% of the estimated affordable <br /> sales price. <br /> 7. The mortgage interest rate is set at 7.0%. The mortgage is assumed to be fully <br /> amortizing over 30 years and provided by a conventional lender. <br /> 8. The homebuyer down payment is set at 5% of the affordable sales price. <br /> Based on the assumptions outlined above, KMA estimates the Moderate Income affordable <br /> sales prices at $310,400 for the eight (8) one-bedroom units and $350,500 for the one (1) two- <br /> bedroom unit. <br /> AFFORDABLE SALES PRICE REVENUE <br /> KMA estimates that nine Moderate Income units will generate $2.83 million in affordable sales <br /> revenue. <br /> However, it is important to note that the affordable sales prices will ultimately be determined <br /> immediately prior to the sale of each unit. This analysis may need to be revised if the affordable <br /> sales prices differ from the sales prices utilized in this analysis. <br /> ADDITIONAL REVENUF <br /> ���rinl(�rna�ca <br /> The property is currently operating as an apartment building and is collecting rents from <br /> existing tenants. Habitat estimates that the Project will generate $229,700 in rental income <br /> during the condominium conversion process. Habitat will utilize this rental income as a funding <br /> source for the Project. <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br />