|
EXHIBIT 2
<br />Judson Brown, City of Santa Ana August 26, 2019
<br />Cornerstone Apartments: Updated Resyndication Proposal Page 3
<br />Development Cost Estimate
<br />The November 2018 and August 2019 development cost estimates are summarized in
<br />the following table:'
<br />November
<br />August 14,
<br />Difference
<br />2018
<br />2019
<br />Property Acquisition
<br />$17,560,001
<br />$17,500,001
<br />($60,000)
<br />Hard Construction Costs
<br />8,274,250
<br />8,449,522
<br />175,272
<br />Soft Costs
<br />2,104,688
<br />2,605,980
<br />501,292
<br />Developer Fee
<br />2,158,000
<br />2,158,000
<br />0
<br />Financing Costs
<br />1,461,965
<br />1,594,215
<br />132,250
<br />Total Development Cost
<br />$31,558,904
<br />$32,011,718
<br />$748,814
<br />As can be seen in the preceding table, the 1HC development cost estimate has increased
<br />by approximately $749,000. The largest cost increase is $368,000, and it is related to
<br />the JHC decision to temporarily relocate tenants while their units are being rehabilitated
<br />rather than attempting to undertake the work while the tenants remain in residence.
<br />The net Tax Credit equity being received by the Project increased by approximately
<br />$667,000 between November 2018 and August 14, 2019. The additional proceeds are
<br />being used to fund a portion of the increased development costs.
<br />Bond Proceeds
<br />Based on the interest rate reduction, the five year increase in the amortization period,
<br />and the use of 2019 Orange County household income information, the Bond proceeds
<br />to be received by the Project have increased by $2.4 million. These additional Bond
<br />funds are proposed to be used for the following purposes:
<br />1. A $1,704,000 additional prepayment of the City Loan's principal balance will be
<br />made. This brings the total prepayment amount to $2,204,000.
<br />'The proposed $1,704,000 million in additional City Loan principal prepayment is not included in the
<br />comparative cost estimate. The proposed additional prepayment is analyzed separately.
<br />1908006.SNA:KHH
<br />19190.017.003
<br />
|