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EXHIBIT 1 <br />Judson Brown, City of Santa Ane <br />May 24 2017 <br />Tiny Tim Plaza Apartments Financial Feasibility <br />Page 2 of 6 <br />The Site <br />The Virginia A. Nicholas Trust (Seller) currently owns the Site. On May 1, 2016, Magis Realty entered Into <br />a Purchase and Sale Agreement (PSA), as amended, with the Seller for the purchase of the Site. Magis <br />Realty assigned its interest under PSA to the Developer pursuantto an Assignment of Buyers Interest <br />(Assignment). Please note thatthe Assignment as provided for CSG's review required execution by six <br />members of the Seller; however, only one Seller's signature was present. Therefore, CSG cannot <br />conclude that the Developer actually controls the Site. Note, further, that the amendment to the PSA <br />requires close of escrow by June 1, 2017. In the absence of a further amendment extending the period to <br />close escrow, the Developer must purchase the Sito in order to retain control. According to an email <br />from the Developer to the City dated March 16, 2017, the Developer plans to use an acquisition loan from <br />the Low Income Investment Fund (I -IIF) to purchase the Site; the Developer would like a commitment of <br />soft financing from the City before purchasing the Site. <br />Units And Affordability <br />The Developer proposes affordability and unit mix as described Table 1, below. <br />Table 1: Proposed Units and Affordability <br />Restrlcticn (AMB2-Bedr gay 15adtssm 4-Badroom _Total <br />30% AMI 2 3 5 <br />50%AMI <br />60%AMI 17 26 1 44 <br />Manager's Unit 1 1 <br />Total 20 29 2 51 <br />Table 2: Units Rents <br />Section a <br />AMI 2017 CTCAC Utility Contract <br />30% $813 <br />3 Bedrooms <br />$105 $836 <br />$105 $1,744 <br />Note that CSG has adjusted the Developer's pro forma rents (i.e., Increased) to conform with the 2017 <br />CTCAC rents applicable to Orange County <br />Reauest for Funds <br />The Developer has requested, via email to the City, subordinated financing In the amount of $6,000,000. <br />The Developerwould like a commitment of these funds before purchasing the Site before the expiration <br />of the escrow period (June 1, 2017). <br />CSG I advisors BAN PRAN01800 LOS ANGELES NEW YORK <br />