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Natalie Verlinich, City of Santa AnaApril 15, 2016 <br />First Street Apartments: Financial Gap Analysis Page 2 <br />The following outlines the financial gap calculations derived from the KMA pro forma <br />analysis: <br />Total Development Cost $28,506,000 <br />(Less ) Available Outside Funding Sources (19,711,000) <br />Estimated Financial Gap $8,795,000 <br />As shown in the preceding table, KMA estimates the financial gap at $8.79 million. This <br />is $105,000less than the Developer’s request fro $8.9 million in financial assistance. <br />This represents a 2% differential, which can be considered insignificant. As such, KMA <br />concludes that the Developer’s financial assistance request is necessary to provide the <br />proposed affordable housing units. <br />Available Funding Sources <br />KMA estimates that $19.71 million in outside funding sources are available to the <br />Project as follows: <br />1.The net operating income generated from the affordable rents supports <br />approximately $7.02million in permanent financing. <br />2.The revenue generated from the Project-Based Section 8 rental assistance <br />vouchers (PBVs) provided by the Santa Ana Housing Authority (Housing <br />Authority) supports approximately $1.46 million in permanent financing. <br />3.The Developer anticipates receiving an allocation of 9% Federal Low Income <br />Housing Tax Credits (Tax Credits) that are competitively awarded by the <br />California Tax Credit Allocation Committee (TCAC). KMA estimates the net Tax <br />Credit proceeds at $11.23 million. <br />The Developer is requesting $8.9million in financial assistance from the City for the <br />Project. The Developer intends to utilize in-lieu fee funds generated by the Housing <br />Opportunity Ordinance (HOO) as the funding source for this financial assistance request. <br />PROJECT DESCRIPTION <br />The proposed scope of development can be described as follows: <br />1604007:SA;TRB <br />19090.014.001 <br />