City of Anaheim Housing Authority | On Call Financial Consulting Services | June 2026 | 20 Service Area Approaches
Area 1 — Real Estate Market and Financial Feasibili-
ty Analysis (Pro Forma Review & Underwriting)
KMA will discuss the proposed project with Housing
Authority staff and determine the type of analysis,
budget and schedule for the project. KMA will then
use current market conditions and typical underwrit-
ing requirements to prepare a pro forma analysis of
the project. The pro forma analysis will evaluate the
project's financial feasibility, including any identified financial gap amount. KMA will evaluate potential
outside funding sources that can be utilized to fill the identified financial gap. KMA will prepare a cash flow
analysis for each project to evaluate the long-term
operational feasibility of the project, as well as the
potential repayments to be made on any Authority
loans. KMA will provide a written technical memoran-
dum summarizing the proposed project and financial
assistance request and terms, as well as a recommen-
dation on the maximum assistance that should be
provided to the project, and will be available to work
with the Authority's legal counsel, attend developer
negotiations, review staff reports, and attend public
meetings.
Evaluation of Development Proposals. KMA typically
utilizes the following work plan when assisting clients with the evaluation of development proposals:
1. R eview and evaluate each developer's qualifica -
tions, including development team experience,
the developer's financial statements, and prop-
erty and asset management experience.
2. R eview and evaluate each developer's proposal,
including the developer's pro forma (develop-
ment budget, affordability restrictions, operat-
ing expense assumptions, and proposed funding
sources); the project's cash flow and proposed
residual receipts percentages; the amount and
structure of the financial assistance being re-
quested; and any other relevant financial infor-
mation.
3. Iden tify any deficiencies and/or areas that
require clarification, including preparation of a
list of follow-up questions for each developer,
and identify feasibility issues associated with the
submitted proposals.
4. Pr epare a comparison chart of the proposals
received.
5. If r equested, assist with selecting the short list
of proposers to proceed to the interview phase
and participate in the developer interview pro-
cess.
6. Comple te any evaluation sheets utilized by the
Authority.
7. P articipate in meetings with staff throughout the
evaluation process.
Area 2 — Economic, Financial, and Demographic
Research and Report Writing
For economic and demographic assignments, KMA
gathers and analyzes economic, financial, and demo-
graphic data for specific geographic areas, industries, or sites, and prepares clear written reports tailored
to the Authority's decision needs. KMA's market and
demographic studies draw on the firm's proprietary
models and its senior staff's experience with market
feasibility, highest-and-best-use, and reuse analyses.
Courtney Holt and Kevin Engstrom lead market, de-
mographic, and feasibility studies, supported by Ryan
Koyanagi, ensuring that economic research is ground-
ed in current market conditions and presented in a
form usable by staff and decision-makers.
Area 3 — Tax Credit and Public Finance Analysis (ex-
cluding municipal advisory services)
KMA supports bond- and tax-credit-financed trans-
actions at the analytical level: evaluating 9% and 4%
Low-Income Housing Tax Credit structures, tax-ex-
empt multifamily bond and CDLAC-allocated financ-
ing, subsidy layering reviews, and the feasibility of
projects that incorporate public finance sources. KMA
quantifies the warranted level of public investment
Scope of Services
City of Anaheim Housing Authority | On Call Financial Consulting Services | June 2026 | 21 and evaluates how proposed financing structures
affect project feasibility and long-term operations.
As stated in the cover letter, KMA is not a registered
municipal advisor and is not proposing to provide
municipal advisory services; KMA does not advise on
the structuring, timing, terms, or issuance of munici-
pal securities, and recommends the Authority retain a
separately registered municipal advisor for any securi- ties issuance.
Additional Advisory Support
KMA will be available to provide additional advisory
services on an as-needed basis. These services may
include advising on issues related to complying with
the Surplus Land Act, the structuring of property
sales/ground leases for affordable and market rate
residential developments, compiling a draft DDA
term sheet based on project specifics, assisting with
ground lease/loan closings, preparing reuse analysis
as required by State law, and alternative financing
strategies, as well as the requirements imposed by
California Redevelopment Law. KMA will assign the
analysis to a qualified principal depending on the spe- cific analysis being requested.
Project Timeline and Implementation Plan
KMA understands that the Authority will contract for
services on an as-needed basis and assign projects
as necessary. While specific projects have not been
identified, KMA's implementation approach for each
assignment is as follows:
1. The Authority contacts Tim Bretz with a descrip-
tion of the engagement.
2. Mr. Bretz assigns the engagement to the appro-
priate KMA principal(s), who prepare a proposed
scope of work, a timeline, and a budget for the
engagement for the Authority's approval.
3. Upon approval, KMA delivers the work product
in accordance with the agreed-upon scope of
work and timeline.
4. Throughout each engagement, KMA staff are
available for virtual meetings, in-person meet-
ings, conference calls, and public meetings as
needed.
KMA's track record of producing approximately 40%
of its Housing Practice assignments within 24 to 48
hours demonstrates the firm's ability to meet com-
pressed timelines while maintaining principal-level
review on every deliverable. For each assignment,
KMA proposes a project-specific schedule with clear
milestones at the scope-approval stage so that the
Authority has predictable delivery dates.
Innovation and Value-Add
KMA brings several sources of added value to the
Authority. First, KMA's proprietary financial feasi-
bility and fiscal-impact models ensure a consistent,
well-tested analytical approach across assignments
and reduce turnaround time. Second, the firm's
specialty subgroups in affordable housing, public
finance, and ground-lease structuring make firmwide
best practices and analytical tools available to every
engagement, so the Authority benefits from the full
depth of the firm rather than a single analyst. Third,
KMA's continuity as Anaheim's incumbent advisor
since the late 1980s means no ramp-up cost and
institutional knowledge of the Authority's portfolio
and funding sources. KMA welcomes the opportunity
to identify additional efficiencies, such as standard-
ized underwriting templates and reusable analytical
frameworks, that can lower the per-assignment cost
to the Authority over the life of the contract.