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EXHIBIT 3 <br /> Judson Brown, City of Santa Ana February 10, 2025 <br /> Habitat Wellington — Preliminary Financial Gap Analysis Page 13 <br /> i. Based on currently available information, KMA estimates the Project's <br /> financial gap at $747,800. In comparison, Habitat is requesting $720,000 <br /> in Down Payment Assistance Program funding from the City. As such, <br /> Habitat's request is supported by the Project economics. <br /> ii. KMA estimates that the Project exhibits a $27,800 unfunded financial <br /> gap. Habitat will need to secure funding sources for any unfunded <br /> financial gap in order for the Project to be financially feasible. The City <br /> should confirm that Habitat has secured all necessary funding sources <br /> before disbursing any funds. <br /> b. Conditional Relocation Allocation: The City may utilize up to $200,000 in <br /> Inclusionary Funds to provide relocation assistance to existing apartment tenants <br /> that do not purchase an affordable unit at the property. The specific amounts <br /> utilized for the Conditional Relocation Allocation will based on actual amounts <br /> determined immediately prior to the relocation of existing tenants. <br /> 2. Habitat purchased the property for $325,000, or approximately 12%, more than the <br /> appraised value. However, the City established the maximum amount of City Down <br /> Payment Assistance Program Allocation based on the funding limits established by the <br /> City's Down Payment Assistance Program (DPAP). Habitat is required to fund any <br /> remaining financial gap amount after the affordable sales price revenue and City's <br /> financial assistance amount is taken into consideration. Therefore, Habitat is responsible <br /> for the purchase price that exceeds the appraised value of the property. <br /> 3. Given the preliminary nature of the proposal, if the scope of development or financing <br /> assumptions change, the KMA analysis may need to be updated accordingly. <br /> 4. The affordable sales prices cannot be finalized until the Project commences sales <br /> activities. It is likely that the actual affordable sales prices will differ from the amounts <br /> estimated in this analysis. <br /> 5. The silent second mortgage and sales price differential calculations will occur once sales <br /> 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 /> 2412002v3.SA.TRB <br /> 19090.018.035 <br />