Laserfiche WebLink
Judson Brown, City of Santa Ana February 10, 2025 <br />Habitat Wellington – Preliminary Financial Gap Analysis Page 8 <br /> <br /> 2412002v3.SA.TRB <br /> 19090.018.035 <br /> <br />5. The annual utilities are based on the utility allowances published by the Santa Ana <br />Housing Authority (SAHA) as of October 1, 2024. KMA assumes the homeowners will pay <br />for: electric cooking, electric heating, electric water heating, basic electricity, air <br />conditioning, water, sewer and trash. <br />6. Habitat estimates the property tax cost based on 1.25% of the estimated affordable <br />sales price. <br />7. The mortgage interest rate is set at 7.0%. The mortgage is assumed to be fully <br />amortizing over 30 years and provided by a conventional lender. <br />8. The homebuyer down payment is set at 5% of the affordable sales price. <br />Based on the assumptions outlined above, KMA estimates the Moderate Income affordable <br />sales prices at $310,400 for the eight (8) one-bedroom units and $350,500 for the one (1) two- <br />bedroom unit. <br />AFFORDABLE SALES PRICE REVENUE <br />KMA estimates that nine Moderate Income units will generate $2.83 million in affordable sales <br />revenue. <br />However, it is important to note that the affordable sales prices will ultimately be determined <br />immediately prior to the sale of each unit. This analysis may need to be revised if the affordable <br />sales prices differ from the sales prices utilized in this analysis. <br />ADDITIONAL REVENUE <br />Rental Income <br />The property is currently operating as an apartment building and is collecting rents from <br />existing tenants. Habitat estimates that the Project will generate $229,700 in rental income <br />during the condominium conversion process. Habitat will utilize this rental income as a funding <br />source for the Project. <br />EXHIBIT 3 <br />  <br />  <br />City Council 9 – 20 7/1/2025