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EXHIBIT 1 CSG I advisors 1 Post Street, Suite 575 San Francisca, CA 94104 rel. 415.4561454 Memorandum To: Judson Brown, City of Santa Ana From: John Hamilton, CSG Advisors Date: May24,2017 Re: Tiny Tim Plaza Apartments Financial Feasibility Review SUMMARY Ject Overview and the Proposed Community Development Partners proposes to develop a 51 -unit affordable housing development, to be located at 2223 and 2237 West 51h Street, in the City of Santa Ana. The Developer proposes to purchase the existing site, which is currently a strip mall and parking lot. The Developer would rehabilitate and "re - purpose" the existing commercial for use by non -profits and community agencies, and newly develop 51 units of affordable housing, Units in the Project would be affordable to families earning between 30% and 60% of area median income. The Proposed Financing The Developer proposes to finance the Project using the proceeds of the issuance of tax-exempt bonds along with the equity derived from the sale of 4% low-income housing tax credits and deferred Developer fee. In addition, the Developer proposes to obtain five Section 8 vouchers, and funds from the State of California's Affordable Housing Sustainable Communities (AHSC) program and New Market Tax Credits to eliminate the Project's financing deficit. Conclusion The Project has a financing deficit of approximately $11.7M. The Developer proposes, in addition to funds requested from the City, to close the financing clef icft with a permanent loan funded by commercial rents; and funds from the AHSC, New Market Tax Credits, and the use of Section 8 vouchers. The project has not yet applied for these sources. The suitability of the Project for those sources and the likelihood of success in obtaining those sources should be the source of a separate analysis. PROJECT FINANCIAL ANALYSIS ct Community Development Partners (the "Developer"), an experienced developer of affordable housing, proposes to develop a 51 -unit affordable housing development, to be located at 2223 and 22237 West 51' Street (the "Site"), In the City of Santa Ana. The Developer proposes to purchase the existing site, which Is currently a strip mall and parking lot. The Developer would rehabilitate and "re -purpose" the existing commercial for use by non -profits and community agencies, and newly develop 51 units of affordable housing. The Developer proposes to finance the Project using the proceeds of the issuance of tax-exempt bonds along with the equity derived from the sale of 4% low-income housing tax credits. SAN FRANCISCO ATLANTA 3ANGELES NEW YORK