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Item 09 - Approve a Pre-Commitment of up to $920,000 in Inclusionary Housing Funds for Eligible Homebuyers to Purchase Nine (9) Existing Rental Units that will be coverted into Affordable Ownership Condominium Units Located at 425 E. Wellington Avenue
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Item 09 - Approve a Pre-Commitment of up to $920,000 in Inclusionary Housing Funds for Eligible Homebuyers to Purchase Nine (9) Existing Rental Units that will be coverted into Affordable Ownership Condominium Units Located at 425 E. Wellington Avenue
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6/25/2025 1:35:50 PM
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6/25/2025 1:35:29 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Community Development
Item #
09
Date
7/1/2025
Destruction Year
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EXHIBIT 3 <br /> Judson Brown, City of Santa Ana February 10, 2025 <br /> Habitat Wellington — Preliminary Financial Gap Analysis Page 9 <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 /> 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 /> Estimated Financial Gap $747,800 <br /> Per Unit $83,100 <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 /> 2412002v3.SA.TRB <br /> 19090.018.035 <br />
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