Agenda Packet_2025-07-01 - Laserfiche WebLink

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TABLE 1 ESTIMATED DEVELOPMENT COSTS 9 FOR-SALE MODERATE INCOME UNITS HABITAT FOR HUMANITY - WELLINGTON SANTA ANA, CALIFORNIA I.Property Assemblage Costs Property Acquisition Costs 1 9 Units $345,000 /Unit $3,105,000 Relocation Costs 2 60,000 Closing Costs 2%Property Acquisition Costs 69,000 Total Property Assemblage Costs $3,234,000 II.Direct Costs 3 On-Site Improvements 9,148 Sf Land $3 /Sf Land $30,000 Rehabilitation Costs 9 Units $8,461 /Unit 76,000 Prevailing Wage Premium 30%Construction Costs 32,000 General Conditions 4 20%Construction Costs 28,000 Habitat Supervision 0%Construction Costs 0 Contingency Allowance 15%Other Direct Costs 25,000 Total Direct Costs 9 Units $21,200 /Unit $191,000 III.Indirect Costs Architecture, Engineering & Consulting 3%Assemblage + Direct Costs $103,000 Public Permits & Fees 5 9 Units $3,773 /Unit 34,000 Taxes, Legal & Accounting 3%Assemblage + Direct Costs 103,000 Insurance 9 Units $3,000 /Unit 27,000 Developer Fee 4 5%Net Development Cost (Excl. Dev Fee)207,000 Contingency Allowance 7%Other Indirect Costs 33,000 Total Indirect Costs $507,000 IV.Financing Costs Interest During Construction 6 $3,000,000 Loan 7.6%Interest $340,000 Loan Origination Fee $3,000,000 Loan 1.0 Point 30,000 Closing Costs 9 Units $3,000 /Unit 27,000 HOA Reserves 9 Units $889 /Unit 8,000 Warranties 9 Units $7,183 /Unit 65,000 Total Financing Costs $470,000 V.Total Development Costs 9 Units $489,100 /Unit $4,402,000 1 2 3 4 5 6 Based on Habitat estimate. An appraisal prepared by AEI Consultants estimated the market value of the property at $2.78 million on 7/26/2024. Habitat's purchase price is $325,000 or approximately 12% higher than the appraised value of the property. Based on Habitat estimates. Assumes that the City's Community Workforce Agreement wage requirements will be imposed on the Project. Per Habitat, the Project will obtain a $3.0 million predevelopment/construction loan. The loan interest is based on an 18-month loan term and a 100% average outstanding balance. Based on Habitat estimates. City staff should verify the accuracy of this estimate. Based on estimate provided by Habitat. Assumes existing tenants that do not purchase a unit are provided relocation assistance equal to up to 3 months of rent payments. Prepared by: Keyser Marston Associates, Inc. File name: Habitat Wellington_2 10 25; Pf EXHIBIT 3 City Council 9 – 27 7/1/2025