65A - AFFORDABLE HOUSING OPTIONS

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Natalie Verlinich, City of Santa Ana April 15, 2016 First Street Apartments: Financial Gap Analysis Page 2 The following outlines the financial gap calculations derived from the KMA pro forma analysis: Total Development Cost $28,506,000 (Less ) Available Outside Funding Sources (19,711,000) Estimated Financial Gap $8,795,000 As shown in the preceding table, KMA estimates the financial gap at $8.79 million. This is $105,000 less than the Developer's request fro $8.9 million in financial assistance. This represents a 2% differential, which can be considered insignificant. As such, KMA concludes that the Developer's financial assistance request is necessary to provide the proposed affordable housing units. Available Funding Sources KMA estimates that $19.71 million in outside funding sources are available to the Project as follows: 1. The net operating income generated from the affordable rents supports approximately $7.02 million in permanent financing. 2. The revenue generated from the Project -Based Section 8 rental assistance vouchers (PBVs) provided by the Santa Ana Housing Authority (Housing Authority) supports approximately $1.46 million in permanent financing. The Developer anticipates receiving an allocation of 9% Federal Low Income Housing Tax Credits (Tax Credits) that are competitively awarded by the California Tax Credit Allocation Committee (TCAC). KMA estimates the net Tax Credit proceeds at $11.23 million. The Developer is requesting $8.9 million in financial assistance from the City for the Project. The Developer intends to utilize in -lieu fee funds generated by the Housing Opportunity Ordinance (HOO) as the funding source for this financial assistance request. -;TO) 1X41 MR] *Yy1]I:AI[a]►1 The proposed scope of development can be described as follows: 1604007:SA;TRB 19090.014.001 65A-42