80A - JOINT -AFFORDABLE HOUSING - Laserfiche WebLink

Home Browse Search

EXHIBIT 7 CSG I advisors 1 Post Street, Suite 575 San Francisco, CA 94104 tel. 415.956.2454 Memorandum To: Judson Brown, City of Santa Ana From: John Hamilton, CSG Advisors Date: May 12, 2017 Re: First Street Apartments Financial Feasibility Review SUMMARY Project Overview and the Proposed Project AMCAL Enterprises (the "Developer") to develop the First Street Apartments (the "Project"), a 69 -unit new construction family housing project located in the City of Santa Ana (the "City"). The Project would target families and would be affordable to individuals and families earning from 30% AMI to 60%AMI. The Proposed Financing The Developer proposes to finance the Project though private senior first mortgage loans, subordinate financing from the City of Santa Ana, and equity from the syndication of 9% federal Low Income Housing Tax Credits (LIHTC). The Developer proposes to submit an application for an allocation of Low Income Housing Tax Credits to the 2017 second application round of the California Tax Credit Allocation Committee (CTCAC). The Developer has tentative secured senior construction and permanent loan commitment from JPMorgan CHASE Bank Conclusion The Project will be competing for 9% Low Income Housing Tax Credits. Absent the CTCAC particular tie breaker - and maximum deferred developer fee -the project would not require funds from the City. However, the nature of the CTCAC competition requires committed public funds in order to be successful. The City must decide the level of tie-breaker it wishes to target in combination with the amount of City funds necessary to achieve that target. PROJECT FINANCIAL ANALYSIS Project Description AMCAL Enterprises (the "Developer"), an experienced developer of affordable housing, proposes to develop a 69 -unit affordable housing development, for families, to be located at 1440 East First Street, in the City of Santa Ana. The Developer has already purchased the site from an un -related party, Grand Frontier Investments, LLC. The Developer proposes to construct 7 buildings: 6 buildings would house 68 affordable units and one manager's unit; 1 building would be a non-residential community building. The Developer proposes to finance the Project with an allocation of 9% low-income housing tax credits (LIHTC), committed funds from the City, and senior first mortgage financing for JPMorgan CHASE or another lender. SAN FRANCISCO ATLANTA 80" -6'' S ANGELES NEW YORK