Laserfiche WebLink
EXHIBIT 2 <br />D. Layering Requirements <br />HOME regulations require projects to provide a layering analysis demonstrating that the HOME <br />assistance is required to provide affordable housing. Based on the results of the preceding <br />underwriting analysis, KMA concludes that the Developer's request of $352,963 in HOME <br />assistance from the City is warranted by the Project economics. As such, it can be concluded <br />that the assistance package complies with the HOME layering requirement. <br />E. Cost Allocation (§92.205(d)) and HOME Unit Designation (Table 5) <br />HOME funds may only be used to pay eligible costs for HOME assisted units. When the City <br />designates fewer than 100% of the units as HOME assisted, the City must calculate the eligible <br />costs that are allocable to the assisted units and may only pay the actual costs related to those <br />HOME assisted units, capped by the maximum subsidy limits previously described. The <br />financial gap analysis concludes that the Project needs $352,963 in HOME assistance. <br />Given that the units are not uniform in size, KMA used the Standard Method to determine the <br />cost allocation. As detailed in Table 5, KMA estimated that eligible project costs equate to $469 <br />per square foot of gross residential area. Therefore, a total of $363,454 allocated to one 788 <br />square foot two-bedroom units. Therefore, the $352,963 of HOME funds requires at least one <br />two bedroom unit to be restricted as a HOME unit. <br />However, there is also a maximum HOME subsidy requirement that must been met. In order to <br />commit $352,963 to this Project, based on the 2018 maximum subsidy limits, a one -bedroom <br />unit and a two-bedroom unit needs to be restricted as a HOME unit. <br />The following summarizes the maximum HOME subsidy that can made to the Project based on <br />two HOME units: <br />F. Affordability Period <br />The HOME assisted units must meet the affordability requirements for not less than the <br />applicable period specified in the following table, beginning after project completion: <br />City of Santa Ana Underwriting & Subsidy Layering Review: Veteran's Village Page 119 <br />25L-29 <br />