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EXHIBIT 1 <br />Judson Brown, City of Santa Ana <br />May 12, 2017 <br />First Street Apartments Financial Feasibility <br />Pace 5 of 7 <br />• Permanent Origination Fee, The Chase commitment letter does not Indicate a permanent <br />origination fee. <br />The "Sources" portion of the table illustrates proposed corrections to certain of the sources. <br />• Chase: We have evaluated the interest rate and terms contained In the Chase commitment letter <br />(also taking Into account the Developer's Indication that the California Community Reinvestment <br />Corporation (CCRC) may provide the permanent loan) with recent proposals from CCRC as well as <br />published rates from Citibank. Recent indications from CCRC have been in the 5.65% range <br />(including for the Santa Ana Arts Collective). Citibank, in its "Cltl Community Capital's Multifamily <br />Housing Indicative Rates and Terms" publication (May 10, 2017) Indicates, for a forward commitment <br />loan for 946 UHTC project (1 Syr term, 30-35yr amortization), all-ir rates of 5.41%— 5,91%. We have, <br />therefore lowered the underwriting rate from 6.5°/ to 6.0%. The calculation of the permanent loans <br />Is as Indicated below: <br />Tax Credit Rents Section 8 Increment <br />EffectMe Gross Rents $806,573 per Developer units mix and 5% $120,977 <br />City of Santa Ana Inclusionary Funds and Low Income Housing Tax Credit Equity: these two entries <br />are "toggles" to eliminate the financing gap and maintain the targeted CTCAC tle-breaker, <br />CSG Base -Budget with Deferred Developer Fee. <br />Forthis scenario, we have adjusted the sources of the CSG Base Budget to reflect the addition of <br />deferred Developer Fee. The amount of deferred fee was calculated as the sum of all cashflows in years <br />1-12. The amount of City loan and Low Income Housing Tax Credit Equity were "toggles" to maintain <br />the 44,7% tie-breaker target and eliminate financing deficits. A summary of the Scenario follows in Table <br />4 below, <br />USES <br />Table 4: CSG Base -Budget with Deferred Developer Fee <br />cubist Item Devalooer 0A YAdaa_ce Exolanation of variance <br />Total Development Costs $30119900 $29,735,354 ($463,646) <br />PERMANENT SOURCES <br />JPMorgan Chase -Perm Loan $5,109,022 $5,413,350 $304,320 Perabove <br />JPMorgan C_hese-Sectlor 8 Loan $1,451,023 $1,537,459 $86,436 Per ahcva <br />Reduction to balance budget while <br />maintaining some approximate CTCAC tie- <br />CRyofSanta Ana -Inclusionary Funds $2,600,000 $1,986,876 ($613,124) breaker <br />caGladviscris SAN FRANCISCO LOB ANGELES NEW YORK <br />LFOODIN1101 <br />