Encelia "Otay Ranch" Apartments
SOURCES OF FUNDS
3/7/2023
Construction Sources Term
(Months) % Rate $ Amount $ Per Unit
Tax Exempt: Citibank 42 7.92% 35,000,000 200,000 Taxable Tail: Citibank 42 8.42% 17,420,000 99,543 Tax-Exempt Supplemental 36 7.92% 4,000,000 22,857 Taxable Tail: Taxable Supplemental 36 8.42% 870,000 4,971 Seller Carryback Loan - 0.00% 3,000,000 17,143 META/GP Loan - 0.00% 1,732,658 9,901 Tax Credit Equity - Federal 6,380,981 36,463 Tax Credit Equity - State 902,414 5,157 Deferred Operating Reserve 1,319,419 7,540 Def. Dev. Fee and Costs 9,737,285 55,642 TOTAL SOURCES 80,362,757 459,216
Permanent Sources Term
(Months) % Rate $ Amount $ Per Unit
Tax Exempt: TE: Original Loan 480 3.83% 33,090,000 189,086 Taxable Tail: TT: Original Loan 480 4.28% 2,900,000 16,571 Seller Carryback Loan - 0.00% 3,000,000 17,143 Tax Credit Equity - Federal 29,341,440 167,665 Tax Credit Equity - State 3,281,000 18,749 GAP/Deferred Dev Fee 8,750,318 50,002 TOTAL SOURCES 80,362,757 459,216
Encelia "Otay Ranch" Apartments
USES
Use Total Project Cost Residential Commercial
70% PVC for New
Construction/Rehab Per Unit Costs
LAND COST/ACQUISITION
Land Cost or Value 60,000 57,564 2,436 - 343 Total Land Cost or Value 60,000 57,564 2,436 - 343 Predevelopment Interest/Holding Cost 219,933 211,005 8,928 211,005 1,257 Total Acquisition Cost 219,933 211,005 8,928 211,005 1,257 Total Land Cost / Acquisition Cost 279,933 268,569 11,364 211,005 1,600
NEW CONSTRUCTION
Site Work 2,940,000 2,820,647 119,353 2,820,647 16,800 Structures 40,041,643 38,416,103 1,625,540 38,416,103 228,809 General Requirements 1,836,373 1,761,823 74,550 1,761,823 10,494 Contractor Overhead 595,686 571,503 24,183 571,503 3,404 Contractor Profit 595,686 571,503 24,183 571,503 3,404 Payment and Performance Bonds 378,489 363,124 15,365 363,124 2,163 General Liability Insurance 15,000 14,391 609 14,391 86 Total New Construction Costs 46,402,876 44,519,094 1,883,782 44,519,094 265,159
ARCHITECTURAL FEES
Design 1,281,250 1,229,236 52,014 1,229,236 7,321 Supervision 343,300 329,363 13,937 329,363 1,962 Total Architectural Costs 1,624,550 1,558,599 65,951 1,558,599 9,283 Total Survey & Engineering 1,649,036 1,582,092 66,945 1,582,092 9,423
CONSTRUCTION INTEREST & FEES
Construction Loan Interest 3,657,187 3,508,719 148,468 3,508,719 20,898 Origination Fee 519,675 498,578 21,097 498,578 2,970 Credit Enhancement/Application Fee 62,000 59,483 2,517 59,483 354 Bond Premium 302,100 289,836 12,264 - 1,726 Title & Recording 104,687 100,437 4,250 96,593 598 Taxes 65,000 62,361 2,639 62,361 371 Insurance 971,980 932,521 39,459 932,521 5,554 Total Construction Interest & Fees 5,682,628 5,451,935 230,693 5,158,256 32,472 Encelia "Otay Ranch" Apartments
USES
Use Total Project Cost Residential Commercial
70% PVC for New
Construction/Rehab Per Unit Costs
PERMANENT FINANCING
Credit Enhancement/Application Fee 17,500 16,790 710 - 100 Title & Recording 20,000 19,188 812 - 114 Other: Perm Loan Interest ( Const Lender) 2,447,435 2,348,079 99,357 - 13,985 Total Permanent Financing Costs 2,484,935 2,384,056 100,879 - 14,200
LEGAL FEES
Lender Legal Paid by Applicant 185,000 177,490 7,510 158,302 1,057 Legal: Partnership Legal / Other 343,845 329,886 13,959 236,542 1,965 Total Legal / Other Costs 528,845 507,376 21,469 394,844 3,022
RESERVES
6-Month Operating Reserve 1,319,419 1,265,856 53,563 - 7,540 Total Reserve Costs 1,319,419 1,265,856 53,563 - 7,540
CONTINGENCY COSTS
Soft Cost Contingency 100,000 95,940 4,060 95,940 571 Hard Cost Contingency 900,000 863,463 36,537 863,463 5,143 Total Contingency Cost 1,000,000 959,404 40,596 959,404 5,714
OTHER PROJECT COSTS
TCAC/CDLAC App/Allocation/Monitoring Fees 125,520 120,424 5,096 - 717 Environmental Audit 7,730 7,416 314 7,416 44 Local Development Impact Fees 7,470,483 7,167,210 303,273 7,167,210 42,688 Permit Processing Fees 422,000 404,868 17,132 404,868 2,411 Marketing 154,500 148,228 6,272 - 883 Furnishings 407,980 391,418 16,562 391,418 2,331 Market Study 9,075 8,707 368 8,707 52 Accounting/Reimbursables 97,000 93,062 3,938 93,062 554 Appraisal Costs 8,125 7,795 330 7,795 46 Other: Misc City/County/Other fees 13,450 12,904 546 - 77 Other: Organizational Costs 77,000 73,874 3,126 73,874 440 Other: Utility Connectons/Deposits 815,819 782,700 33,119 782,700 4,662 Other: Tenant Improvements 283,800 272,279 11,521 - 1,622 Total Other Costs 9,892,483 9,490,885 401,597 8,937,050 56,528 SUBTOTAL PROJECT COST 70,864,706 67,987,866 2,876,840 63,320,344 404,941
DEVELOPER COSTS
Developer Overhead/Profit 9,498,052 9,112,466 385,585 9,112,466 54,275 Total Developer Costs 9,498,052 9,112,466 385,585 9,112,466 54,275 TOTAL PROJECT COSTS 80,362,757 77,100,333 3,262,425 72,432,810 459,216 Encelia "Otay Ranch" Apartments
INCOME ANALYSIS
0 Bed 1 Bed 2 Bed 3 Bed Date Link/Source
654 823 1,116
Rent Schedules:
Rent @ 100% AMI TCAC $2,440 $2,927 $3,383 2022 Rents
Utility Allowance PHA 43.00$ 58.00$ 69.00$ 12/1/2021 Chula Vista UA Unit Breakdown
TCAC
Max
Rent/Unit
1 Bed 1 Bath 41 50% 50% 1,220$ 1,220$ 43$ 1,177$ 48,257$ 1 Bed 1 Bath 14 60% 60% 1,464$ 1,464$ 43$ 1,421$ 19,894$ 2 Bed 1 Bath 7 50% 50% 1,463$ 1,463$ 58$ 1,405$ 9,835$ 2 Bed 1 Bath 65 60% 60% 1,756$ 1,756$ 58$ 1,698$ 110,383$ 3 Bed 2 Bath 5 50% 50% 1,691$ 1,691$ 69$ 1,622$ 8,110$ 3 Bed 2 Bath 41 60% 60% 2,030$ 2,030$ 69$ 1,961$ 80,393$ Managers Unit Manager?
2 Bed Yes 2 Market
175 57% 1,638$ 1,657$ 1,600$ 276,872$ Monthly Annual
Affordable Rent <= 80% 276,872$ 3,322,462$
276,872$ 3,322,462$
Vacancy - GA 7.0% (19,381)$ (232,572)$
Other - Income 6,747$ 80,964$
Other - Inc. Vacancy 5.0% (337)$ (4,048)$
263,900$ 3,166,805$ Effective Gross Income
(Affordable/Property Mgr)
Potential Gross Income
Averages/Totals
Effective Gross Income
AMI
Restrict. Actual AMI's
TCAC: (San Diego County)
Avg. Sq. Ft.
Utility Allow.
Rent
Received Total RentLower of TCAC & # of Bedrooms # of Baths # of Units Encelia "Otay Ranch" Apartments
OPERATING EXPENSES
Expenses Budget
Salaries & Benefits
Manager 58,688$
Asst. Manager(s) 45,074$
Maintenance Manager 54,496$
Asst. Maintenance (Porter) 41,920$
Employee Burden 62,850$
Total Salaries & Benefits 263,028$
General Admin
Administrative 47,463$
Advertising/Marketing 2,500$
Total Administrative 49,963$
Repairs & Maintenance
Painting & Cleaning 15,500$
Repairs & Maint. 16,500$
Total Repairs & Maintenance 32,000$
Contract Services
Fire Sprinkler/Alarm Service 6,640$
Trash 35,700$
Pest Control 4,660$
Landscape/Grounds Maintenance 24,000$
Total Contract Services 71,000$
Utilities
Electric 30,228$
Water 93,432$
Gas 25,572$
Total Utilities 149,232$
Other Expenses
Management Fees 121,922$
Legal 2,500$
Audit 12,250$
Supportive Services 20,000$
Real Estate Taxes (Market Rate) 3,500$
Real Estate Taxes (CFD) 3,354$
Insurance 52,115$
Replacement Reserves 43,750$
Free Tenant WiFi 6,500$
Chula Vista Annual Bond Issuer Fee 17,000$
Total Other 282,891$
Total Expenses 848,114$
Encelia "Otay Ranch" Apartments
30-YEAR CASH FLOW
Calendar Year 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Stabilized Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Revenues
Gross Potential Rent 3,322,462 3,405,523 3,490,661 3,577,928 3,667,376 3,759,060 3,853,037 3,949,363 4,048,097 4,149,299 4,253,032 4,359,358 4,468,341 4,580,050 4,694,551 Vacancy Loss - Residential (232,572) (238,387) (244,346) (250,455) (256,716) (263,134) (269,713) (276,455) (283,367) (290,451) (297,712) (305,155) (312,784) (320,604) (328,619) Other Income 80,964 82,988 85,063 87,189 89,369 91,603 93,893 96,241 98,647 101,113 103,641 106,232 108,888 111,610 114,400 Other Vacancy Loss (4,048) (4,149) (4,253) (4,359) (4,468) (4,580) (4,695) (4,812) (4,932) (5,056) (5,182) (5,312) (5,444) (5,580) (5,720) Total Net Revenues 3,166,805 3,245,975 3,327,125 3,410,303 3,495,560 3,582,949 3,672,523 3,764,336 3,858,444 3,954,906 4,053,778 4,155,123 4,259,001 4,365,476 4,474,613 Total Expenses 848,114 875,030 902,875 931,664 961,428 992,201 1,024,017 1,056,913 1,090,924 1,126,090 1,162,449 1,200,043 1,238,913 1,279,104 1,320,661 Net Operating Income 2,318,691 2,370,945 2,424,249 2,478,639 2,534,132 2,590,748 2,648,506 2,707,423 2,767,520 2,828,816 2,891,329 2,955,080 3,020,088 3,086,372 3,153,952 Debt Service:
TE: Original Loan 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 1,629,766 TT: Original Loan 151,561 151,561 151,561 151,561 151,561 151,561 151,561 151,561 151,561 151,561 151,561 151,561 151,561 151,561 151,561 Total Debt 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327 1,781,327
1.30 1.33 1.36 1.39 1.42 1.45 1.49 1.52 1.55 1.59 1.62 1.66 1.70 1.73 1.77 Cash Flow After Debt Service 537,364 589,618 642,922 697,312 752,805 809,421 867,179 926,096 986,193 1,047,489 1,110,002 1,173,753 1,238,761 1,305,045 1,372,625