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Judson Brown, City of Santa Ana
<br />May 24 2017
<br />Tiny Tim Plaza Apartments Financial Feasibility
<br />Page 4 of 6
<br />Costs of Bond Issuance
<br />$93,314
<br />$93,314
<br />Permits and Fees
<br />$900,000
<br />$900,000
<br />Soft Costs
<br />$508,786
<br />$508,786
<br />_ Other Costs
<br />$400,000
<br />$400,000
<br />Subtotal Project Costs
<br />$23,890,144
<br />$24,127,134
<br />LOS ANGELES NEW YORK
<br />Max Developer Fee per CTCAC (assuming
<br />Developer Fee
<br />$2400000
<br />$2,576,205 $17620515 eligible basis of approx._$17,174,701)
<br />Total Development Cost'
<br />$26,290,144 1
<br />$26,703,339
<br />PERMANENT SOURCES
<br />Permanent Loan - Residential
<br />$8,420,587
<br />$7,829,652
<br />($590,935)
<br />See Discussion below
<br />Permanent Loan - Retail
<br />$2,113,746
<br />$0
<br />($2,113,746)
<br />See Discussion, below
<br />DSCR _
<br />1.15._
<br />Cash Flow Available to Support Debt
<br />$459,309
<br />Reflects total 12 -year cash flow (after
<br />LOS ANGELES NEW YORK
<br />partnership and asset management fees
<br />starting at $18,500) available for payment of
<br />Deferred Developer Fees
<br />$1,014,984
<br />$1,330,993
<br />$316,009
<br />deferredfees.
<br />Low Income Housing Tax Credit
<br />Equity
<br />$5770.828
<br />$5,8411,326
<br />1 $70,498
<br />_See Discussion Below
<br />TOTAL SOURCES
<br />$17320.145
<br />$15001971
<br />($565,768)
<br />SURPLUS (DEFICIT) ($8,969,999) ($11,701,368)($968,963)
<br />*Developer's budget total of $26,320,144 does not correctly total by $30,000 (error in Developer's "Indirect
<br />Construction" total)
<br />Discussion of Table 3
<br />The "Uses" portion of Table 3 shows the Developer's budget, contrasted with modifications proposed by
<br />CSG.
<br />• Total New Construction Costs: Supported by a "Conceptual Estimate" provided by the Advent
<br />Companies. I.e., these are very preliminary estimates based on conceptual drawings.
<br />• Construction Loan Interest: CSG has applied typical underwriting criteria i.e., 60% average
<br />outstanding balance, during the term (24 mos), at the underwriting interest rate (3.65%).
<br />• Developer Fee: CSG has adjusted the Developer Fee to reflect 15% of unadjusted eligible basis (i.e.,
<br />$17,174,701) not including the Developer Fee as allowed by CTCAC for 4% tax credit projects.
<br />The "Sources" portion of the table illustrates proposed corrections to certain of the sources.
<br />• Permanent Loan - Residential: We have sized the Permanent Loan with out reference to Section 8,
<br />because the developer has not applied for or secured an award of Section 8 vouchers. The
<br />calculation of the permanent loans is as indicated below based on terms consistent with the market
<br />and typical Citibank tax-exempt bond transactions:
<br />Tax Credit Rents
<br />Effective Gross Rents $793,406
<br />(per Developer units mix and 5%
<br />vacancy)
<br />Operating Expenses and Reserves$2(
<br />65 200)
<br />Net Cash Flow
<br />$528,206
<br />DSCR _
<br />1.15._
<br />Cash Flow Available to Support Debt
<br />$459,309
<br />CSG advisors SAN FRANCISCO65 ATLANTTA
<br />LOS ANGELES NEW YORK
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