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EXHIBIT 1
<br />Judson Brown, City of Santa Ana
<br />May 24 2017
<br />Tlny Tim Plaza Apartments Financial Feasibility
<br />Pace 4 of 6
<br />Costs of Bond Issuance
<br />$93,314
<br />$93,314
<br />Permits and Feee
<br />$90010M
<br />$900,000
<br />Soft Costs
<br />$508,786
<br />$508,786
<br />Other Costs
<br />$400,000
<br />$400,000
<br />Subtotal Project Costs
<br />$23,890,144
<br />$24,127,134 _
<br />Developer Fee
<br />gam
<br />Max Developer Fee per CTCAC (assuming
<br />sam205 i],j5,2os.15 eligible basis of approx.$17,174,701)
<br />Total Development Cost*
<br />$26,290,144
<br />$26,703,339 $413,195
<br />PERMANENT SOURCES
<br />Permanent Loan -Residential
<br />$8,420,587
<br />$7,829,652
<br />($590,935]
<br />See Discussion, below
<br />Permanent Loan - Retail
<br />$2,113,746
<br />$0
<br />($2,113,7461
<br />See Discussion, below
<br />DSCR
<br />Cash Flow Available to Support Da6t
<br />$459,309mm
<br />Reflects total 12 -year cash flow (after
<br />partnership and asset management fees
<br />starting at $18,500) available forpaym•nt of
<br />Deferred Developer Fees
<br />$1,014,984
<br />$1,330,993
<br />$316,009
<br />deferred fees.
<br />Low Income Housing Tax Credit
<br />Equity
<br />029
<br />681 326
<br />$70,498
<br />Sao Discussion, Below
<br />I TOTAL SOURCES
<br />$17.320.145
<br />15001977
<br />($565,769)
<br />1 SURPLUS/(DEFICI'q ($8,969,99.91{$11,701368) �.{$966,963) !
<br />*Developer's budget total of $26,320,144 does not correctly total by $30,000 (error in Developer's "Indirect
<br />Construction" total)
<br />Discussion of Table 3
<br />The "Uses" portlon of Table 3 shows the Developer's budget, contrasted with modifications proposed by
<br />CSG.
<br />• Total New Construction Costs: Supported by a "Conceptual Estimate' provided by the Advent
<br />Companies. Le., these are very preliminary estimates based on conceptual drawings,
<br />• Construction Loan Interest: CSG has applied typical underwriting criteria i.e., 60% average
<br />outstanding balance, during the term (24 mos), at the underwriting Interest rate (3.65%).
<br />• Developer Fee: CSG has adjusted the Developer Fee to reflect 15% of unadjusted eligible basis (i.e..
<br />$17,174,701) not including the Developer Fee as allowed by CTCAC for 4% tax credit projects.
<br />The "Sources" portion of the table Illustrates proposed corrections to certain of the sources.
<br />• Permanent Loan - Residential: We have sized the Permanent Loan with out reference to Section 8,
<br />because the developer has not applied for or secured an award of Sectlon 8 vouchers. The
<br />calculation of the permanent loans is as indicated below based on terms consistent with the market
<br />and typical Citibank tax-exempt bond transactions:
<br />(+•SjG Iadvisors SAN FRANCISCO LOS ANGELES NEW YORK
<br />Tex Credit Rents
<br />Effective Gross Rents
<br />$793,406 (per Developer units mix and 55%
<br />vacancy)
<br />Oparatingonses and ftasorves5,i9Q1
<br />_
<br />Net Cash Flow
<br />$528,206
<br />DSCR
<br />Cash Flow Available to Support Da6t
<br />$459,309mm
<br />(+•SjG Iadvisors SAN FRANCISCO LOS ANGELES NEW YORK
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