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Judson Brown, City of Santa Ana <br />May 24 2017 <br />Tiny Tim Plaza Apartments Financial Feasibility <br />Page 3 of 6 <br />Financial Plan Analysis <br />The Developer proposes to use 4% tax credits and tax-exempt bonds to financing, in part, the Project. <br />In addition, the Developer proposes: <br />Funding to be obtained through the State of California's Affordable Housing Sustainable <br />Communities program; <br />New Market Tax Credits <br />• Section 8 vouchers for the five 30% AMI units. <br />However, as the Developer has neither obtained, applied for, nor provided draft applications for these <br />sources, CSG has not accounted for them in this analysis. Nor have we evaluated the Project for <br />competitiveness or suitability for any of the above. <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 4% tax credit financing. <br />In order to achieve the foregoing, the analysis proceeds as follows <br />Side-by-side comparison of the Developer's sources and uses budget with a "Base Budget" <br />constructed by CSG, with explanation of variances. <br />Building upon the CSG Base Budget, comparison of the Developer's sources and use budget <br />with a CSG -constructed budget including deferred developer fee. <br />Table 3, below, provides a consolidated form of the Developer's budget compared to the CSG "Base <br />Budget" showing modifications proposed by CSG. In creating this analysis and variance, we have used <br />the Developer's assumptions (except as noted) and modeled the Project using the applicable CTCAC <br />application form. <br />Table 3: Variance Analysis of Developer's Budget to CSG "Base Budget" <br />USES <br />Budget Item Developer CSG Variance Notes/Explanation of Variance <br />Total Land /Acquisition Cost $3,996,300 $3,996,300 Includes land and holding costs <br />Total New Construction Costs <br />Total Construction Contingency (5%) $763,515 $763,515 <br />Total Architectural Costs <br />Total Survey and Engineering $150,500 $150,500 <br />Construction Loan Interest $690,000 $926,990 $236,990 See discussion below <br />Construction Loan <br />Origination Fee $221,000 $221,000 0.75% commitment Fee per chase letter <br />Permanent Origination Fee $10,000 $10,000 Typical Citi "Conversion fee" <br />Total Attorney Costs <br />$165,000 $165,000 <br />Total Reserve Costs <br />6 mos. Operating Reserve typical of Citi <br />$371,938 $371,938 underwriting <br />Total Appraisal Costs <br />10,000Q 10,0000r0 <br />CSG Iadvisors <br />/� <br />SAN FRANCISCO Q0�#t'R'T1 LOS ANGELES NEW YORK <br />