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Judson Brown, City of Santa Ana <br />May 24 2017 <br />Tiny Tim Plaza Apartments Financial Feasibility <br />Paae 2 of 6 <br />The Site <br />The Virginia A. Nicholas Trust (Seller) currently owns the Site. On May 1, 2016, Magis Realty entered into <br />a Purchase and Sale Agreement (PSA), as amended, with the Seller for the purchase of the Site. Magis <br />Realty assigned its interest under PSA to the Developer pursuant to an Assignment of Buyers Interest <br />(Assignment). Please note that the Assignment as provided for CSG's review required execution by six <br />members of the Seller; however, only one Seller's signature was present. Therefore, CSG cannot <br />conclude that the Developer actually controls the Site. Note, further, that the amendment to the PSA <br />requires close of escrow by June 1, 2017. In the absence of a further amendment extending the period to <br />close escrow, the Developer must purchase the Site in order to retain control. According to an email <br />from the Developer to the City dated March 16, 2017, the Developer plans to use an acquisition loan from <br />the Low Income Investment Fund (LIIF) to purchase the Site; the Developer would like a commitment of <br />soft financing from the City before purchasing the Site. <br />Units And Affordabil <br />The Developer proposes affordability and unit mix as described Table 1, below. <br />'Table 1: Proposed Units and Affordability <br />Restriction (AMI) 2 -Bedroom 3 -Bedroom 4 -Bedroom Total <br />._. 30%AMI ..._.___ ---2 _.._ 3 5 _._.. <br />50%AMI <br />Note that CSG has adjusted the Developer's pro forma rents (i.e., increased) to conform with the 2017 <br />CTCAC rents applicable to Orange County <br />Request for Funds <br />The Developer has requested, via email to the City, subordinated financing in the amount of $6,000,000. <br />The Developer would like a commitment of these funds before purchasing the Site before the expiration <br />of the escrow period (June 1, 2017). <br />CSG Iadvisors SAN FRANCISCO 65A-LANTA 68 LOS ANGELES NEW YORK <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 />$60 <br />$649 <br />NA <br />2 Bedrooms <br />60%$1,408 <br />$60 <br />$1,353 <br />NA <br />3 BeIdrooms <br />............ <br />30% <br />..._.._.... . <br />$813 <br />$85 <br />$750 <br />NA <br />3 Bedrooms <br />60% <br />$1,627 <br />$85 <br />$1,564 <br />NA <br />4 Bedrooms <br />50% <br />$1,512 <br />$105 <br />$836 <br />NA <br />4 Bedrooms <br />60% <br />$1,815 <br />$105 <br />$1,744 <br />NA <br />Note that CSG has adjusted the Developer's pro forma rents (i.e., increased) to conform with the 2017 <br />CTCAC rents applicable to Orange County <br />Request for Funds <br />The Developer has requested, via email to the City, subordinated financing in the amount of $6,000,000. <br />The Developer would like a commitment of these funds before purchasing the Site before the expiration <br />of the escrow period (June 1, 2017). <br />CSG Iadvisors SAN FRANCISCO 65A-LANTA 68 LOS ANGELES NEW YORK <br />