Laserfiche WebLink
EXHIBIT 1 <br />C & C Development Co., LLC <br />Orange Housing Development Corporation <br />October 30, 2017 <br />City of Santa Ana <br />Mr. Judson Brown <br />Community Development Agency <br />20 Civic Center Plaza (M-26) <br />Santa Ana, CA 92701 <br />RE: Increase to Permitted Property Management Fees for Affordable Communities <br />Mr. Brown: <br />Historically, the property management fees associated with the affordable developments that we have <br />completed in the City of Santa Ana has ranged from 6.00% to 8.00% of gross rents. The specific property <br />management fee for each property is identified within the Operating Expense definition with the City <br />and/or Agency Loan Note for each development. <br />Over the past few years we have witnessed little to no year over year increase in the gross rents that are <br />collected for each development. During this same period the cost to provide management services has <br />increased. We have also witnessed increased frequency of audits and higher level of compliance <br />associated with the management of properties over the past few years. We have attached a schedule <br />outlining the year over year Increase (or decreases) in the TCAC and HCD rents for Orange County. As an <br />example, between 2009 and 2017 HCD rents for 3 -bedroom units have increased 2.2% for a total rent <br />increase during that period of only $24. <br />Realizing that this was occurring, we started setting management fees at 8.00% of gross rents for <br />projects that we're completed during the past few years. <br />Following is a list of properties owned and managed in Santa Ana and current management fee as a <br />percentage of gross rents. <br />Property <br />Management Fee <br />Garden Court Apartments <br />8.00% <br />Minnie 1, II, II <br />8.00% <br />901 E. 61s Street <br />8.00% <br />Ross & Durant <br />6.25% <br />Wilshire & Minnie <br />6.50% <br />Townsend & Raitt <br />6.50% <br />1410 N. Durant <br />6.50% <br />Lacy & Raitt <br />7.00% <br />326 S Garnsey <br />7.00% <br />Terraces, BBB's <br />8.00% <br />Depot @ Santiago <br />8.00% <br />940 Minnie <br />8.00% <br />815 N. Harbor <br />8.00% <br />14211 YORBA ST, STH 200, TUSTIN, CA 92780 <br />PHONE: (114) 288-7600 • FAX: (866) 570-0728 <br />• 11 <br />