Agenda Packet_2025-07-01 - Laserfiche WebLink

Home Browse Search

Judson Brown, City of Santa Ana February 10, 2025 Habitat Wellington – Preliminary Financial Gap Analysis Page 13 2412002v3.SA.TRB 19090.018.035 i. Based on currently available information, KMA estimates the Project’s financial gap at $747,800. In comparison, Habitat is requesting $720,000 in Down Payment Assistance Program funding from the City. As such, Habitat’s request is supported by the Project economics. ii. KMA estimates that the Project exhibits a $27,800 unfunded financial gap. Habitat will need to secure funding sources for any unfunded financial gap in order for the Project to be financially feasible. The City should confirm that Habitat has secured all necessary funding sources before disbursing any funds. b. Conditional Relocation Allocation: The City may utilize up to $200,000 in Inclusionary Funds to provide relocation assistance to existing apartment tenants that do not purchase an affordable unit at the property. The specific amounts utilized for the Conditional Relocation Allocation will based on actual amounts determined immediately prior to the relocation of existing tenants. 2. Habitat purchased the property for $325,000, or approximately 12%, more than the appraised value. However, the City established the maximum amount of City Down Payment Assistance Program Allocation based on the funding limits established by the City’s Down Payment Assistance Program (DPAP). Habitat is required to fund any remaining financial gap amount after the affordable sales price revenue and City’s financial assistance amount is taken into consideration. Therefore, Habitat is responsible for the purchase price that exceeds the appraised value of the property. 3. Given the preliminary nature of the proposal, if the scope of development or financing assumptions change, the KMA analysis may need to be updated accordingly. 4. The affordable sales prices cannot be finalized until the Project commences sales activities. It is likely that the actual affordable sales prices will differ from the amounts estimated in this analysis. 5. The silent second mortgage and sales price differential calculations will occur once sales of the units commence. At that point, the appraised market values of the homes and the defined affordable sales prices will be utilized to determine the silent second mortgage amounts and any possible affordable sales price reductions that are necessary to entice affordable homebuyers. EXHIBIT 3 City Council 9 – 25 7/1/2025