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EXHIBIT 3 <br /> Judson Brown, City of Santa Ana February 10, 2025 <br /> Habitat Wellington — Preliminary Financial Gap Analysis Page 12 <br /> However, this calculation is provided for illustrative purposes only at this time. The calculation <br /> will need to be conducted at the time of sale of each unit and must be based on the actual <br /> appraised value and affordable sales prices at the time of sale. <br /> Affordable Sales Price Differential <br /> Furthermore, it is important to note that there typically needs to be a sales price differential <br /> between the market rate sales price and the affordable sales price in order to entice <br /> homebuyers to accept an affordability covenant. <br /> The following illustrates the price differential based on the currently estimated market rate <br /> sales affordable sales prices: <br /> Moderate Income Units <br /> One-Bedroom Two-Bedroom <br /> Units Unit <br /> Market Rate Sales Price $345,600 $389,700 <br /> (Less) Affordable Sales Price (310,400) (350,500) <br /> Price Differential $35,200 $39,200 <br /> of Market Rate Sales Price 10% 10% <br /> Ultimately, the silent second mortgage and sales price differential calculations will occur once <br /> sales of the units commence. At that point, the appraised market values of the homes and the <br /> defined Affordable Sales Prices will be utilized to determine the silent second mortgage <br /> amounts and any possible affordable sales price reductions that are necessary to entice <br /> affordable homebuyers. <br /> CONCLUSIONS / RECOMMENDATIONS <br /> The following summarizes the conclusions of the KMA analysis: <br /> 1. City Financial Assistance: <br /> a. Down Payment Assistance Program Allocation: <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br />