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Judson Brown, City of Santa Ana <br />Habitat Washington Avenue — Preliminary Financial Gap Analysis <br />Table 1: Estimated Development Costs <br />Table 2: Estimated Available Revenue <br />EXHIBIT 3 <br />October 27, 2022 <br />Page 3 <br />Table 3: Estimated Financial Gap <br />Table 4: Silent Second Mortgage Revenue Calculation <br />Table S: Affordable Sales Price Calculation <br />Estimated Development Costs (Table 1) <br />KMA reviewed Habitat's October 2022 pro forma, and then independently prepared a <br />pro forma analysis of the Project. The resulting construction costs are estimated as <br />follows: <br />PROPERTY ACQUISITION COSTS <br />Based on information provided by Habitat, Habitat purchased the Site for $580,000, <br />which equates to a purchase price of $36 per square foot of land area. Habitat did not <br />provide an appraisal and/or purchase and sale agreement to confirm the purchase price. <br />DIRECT COSTS <br />The direct costs assume that the Project will not be subject to State of California and/or <br />Federal Davis Bacon prevailing wage requirements. The direct costs can be summarized <br />as follows: <br />1. The site improvement costs are estimated at $581,000, or $36 per square foot of <br />land area. <br />2. The building costs are estimated at $1.58 million. This equates to $196 per <br />square foot of GBA, or $263,000 per unit. KMA assumes that the general <br />conditions and Habitat supervision costs are included in this line item. <br />3. A direct cost contingency allowance equal to 10% of other direct costs is <br />provided. <br />KMA estimates the total direct costs at $2.38 million. This equates to $295 per square <br />foot of GBA or $396,000 per unit. <br />City Council 21 —11 12445✓2.20 <br />19090.018.026 <br />