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Judson Brown, City of Santa Ana
<br />May 12, 2017
<br />First Street Apartments Financial Feasibility
<br />Paae 2 of 7
<br />Eight units will be the recipients of a project -based Section 8 contract awarded through the City of Santa
<br />Ana.
<br />The Project would contain affordable units as indicated in Table 1, below.
<br />Table 1: Proposed Units and Affordability
<br />Restriction (AMI) 2 -Bedroom 3 -Bedroom
<br />.__.. 30%AMI_ _... 29*.___ 4* _.
<br />50%AMI
<br />60%AMI
<br />4 17
<br />7.
<br />4 -Bedroom Total
<br />1 34
<br />21
<br />13
<br />Manager's Unit 1 1
<br />Total 35 28 6 69
<br />* four 2-bdm 30%AMI unis and 4 3-bdm 30% AM[ units will be subject to a Section 8 HAP contract.
<br />Table 2: Units Rents
<br />Request for Funds
<br />On January 18, 2017, the City notified the Developer that the City had provided a "pre -commitment" for
<br />a subordinate loan in the amount $2,600,000. The City's obligation to fund the loan in respect of its pre -
<br />commitment is subject to certain conditions, including receipt by the City of a certain In -Lieu Fee
<br />payment necessary to fund the loan.
<br />The City, through the Housing Authority of the City of Santa Ana, acting as successor agency to the
<br />Redevelopment Agency of the City of Santa Ana, has also provided a pre -commitment for a subordinate
<br />loan up to the amount of $6,195,000
<br />Financial Plan Analysis
<br />We have focused our analysis on a review of the Project's sources and uses in the context of the Project's
<br />proposed 9% tax credit financing. In most cases, subordinate financing from public agencies finances the
<br />"affordability gap" i.e., the financial gap resulting from the addition of affordable units. In the case of
<br />First Street Apartments, the subordinate financing, arguably, is not necessary to close an affordability gap
<br />but, rather, it is necessary to finance the financial gap necessitated by the completion for 9% tax credits.
<br />CSG Iadvisors SAN FRANCISCO ATLANTA LOS ANGELES NEW YORK
<br />65A-60
<br />Section 8
<br />AMI
<br />2017 CTCAC
<br />Utility
<br />Contract
<br />Bedroom Size
<br />Restriction
<br />Rent
<br />Allowance
<br />Net Rent
<br />Rent
<br />2 Bedrooms
<br />30%
<br />$704 _ _
<br />$55
<br />$649
<br />$1,685
<br />2 Bedrooms
<br />50%
<br />$1,173
<br />$55
<br />$1,718
<br />2 Bedrooms
<br />60%
<br />$1,408
<br />$55
<br />$1,353
<br />3Bedrooms
<br />30%
<br />$813
<br />$63
<br />$750
<br />.,. $2,367
<br />3 Bedrooms
<br />50%
<br />$1,356$63
<br />.......
<br />_..__.. _. .
<br />$1,293
<br />3 Bedrooms
<br />60%
<br />$1,627
<br />$63
<br />$1,564
<br />4 Bedrooms
<br />30%
<br />$907
<br />$71
<br />$836
<br />4 Bedrooms
<br />60%
<br />$1,815
<br />$71
<br />$1,744
<br />Request for Funds
<br />On January 18, 2017, the City notified the Developer that the City had provided a "pre -commitment" for
<br />a subordinate loan in the amount $2,600,000. The City's obligation to fund the loan in respect of its pre -
<br />commitment is subject to certain conditions, including receipt by the City of a certain In -Lieu Fee
<br />payment necessary to fund the loan.
<br />The City, through the Housing Authority of the City of Santa Ana, acting as successor agency to the
<br />Redevelopment Agency of the City of Santa Ana, has also provided a pre -commitment for a subordinate
<br />loan up to the amount of $6,195,000
<br />Financial Plan Analysis
<br />We have focused our analysis on a review of the Project's sources and uses in the context of the Project's
<br />proposed 9% tax credit financing. In most cases, subordinate financing from public agencies finances the
<br />"affordability gap" i.e., the financial gap resulting from the addition of affordable units. In the case of
<br />First Street Apartments, the subordinate financing, arguably, is not necessary to close an affordability gap
<br />but, rather, it is necessary to finance the financial gap necessitated by the completion for 9% tax credits.
<br />CSG Iadvisors SAN FRANCISCO ATLANTA LOS ANGELES NEW YORK
<br />65A-60
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