Agenda, special meeting, first session — Del Mar City Council, June 13, 2022

Del Mar City Council Special Meeting Agenda
Del Mar City Hall – Via Teleconference Only
1050 Camino del Mar, Del Mar, California
June 13, 2022 City Council Special Meeting

INFORMATION RECEIVED

AFTER THE COUNCIL AGENDA

WAS DISTRIBUTED
(“Red Dots”)

CITY COUNCIL AGENDA QUESTIONS/COMMENTS
JUNE 13, 2022
Item 1: Presentation of the Findings from Phase I Planning Studies to Implement the City’s Housing Element.

Comment # 1:

How Keyser Marston Associates (KMA) calculated Total Value at Completion and how they calculated Cost of Construction is missing entirely. There are no specifics, details or data. No list of assumptions, input or formulas used. The tables in the finance report with numbers for Residual Land Value are the key critical work product from the consultants. However, without the missing information, the numbers for Residual Land Value (profit of positive or loss if negative) might as well have been pulled out of a hat.

Staff Response:

The KMA report summarizes the results of economic analyses prepared for varying multifamily development scenarios on public land, which were informed by detailed proformas prepared for each scenario. The report is organized to provide an overview of affordable housing programs and transactions; presents the financial feasibility analysis for each housing development prototype based on conceptual project types for each specific publicly owned site; the conclusions of the financial feasibility analysis for each affordability/financing scenario analyzed; and the key findings of the report.

The detailed proformas are the supporting technical analysis documents for the KMA financial feasibility study. They were not included as an attachment to the report, as based on their experience, the consultant wanted the opportunity to explain their analysis and conclusions at the workshop. Staff has attached the 75-page supplemental technical analysis (proformas) that provides the development costs, operating budget, and investment assumptions used in the analysis for each site and affordability scenario, which includes detailed factors (including but not limited to, direct and indirect costs, financing costs, gross scheduled income, effective gross income, operating expenses, net operating income, debt service costs, net operating income after debt services for state funding source, identified sources of funds, etc.), that determined the conclusions for each scenario. Residual land value analysis is the financial pro forma tool used to determine the relative feasibility of alternative scenarios. A conclusion of zero residual land value would mean that the project is feasible with just free land, and no additional financial contribution is required from the City. A negative residual land value represents the amount of financial contribution required from the City over and above free land.

Comment #2:

The analysis provides a table of the expected/typical value of local contribution. But it does not seem to recognize that Del Mar's local contribution is the land -- i.e., negotiating availability of the land from the State at no cost to the developer, e.g. a lease for $1 per year for Fairgrounds land. This should be a firm input to the analysis, yes? Because it will change the cost to build. The value of this land should have nothing to do with the 1 June 13, 2022 Item 01

CITY COUNCIL AGENDA QUESTIONS/COMMENTS
JUNE 13, 2022
equation for cost of building or feasibility. In the Fairgrounds scenarios, land will be free to the developer. It is unclear how the zero-cost land is factored into the financial analysis.

Staff Response:

KMA did not assume any land value for the Fairgrounds or City owned sites; all were treated as zero cost to the future developer in each of the proforma analysis prepared for each site and affordability scenario. In Section III-C of the report, which discusses Residual Land Value Methodology (page 16 and top of 17), it indicates that land acquisition costs are not considered in the total development costs considered for a project. The report also makes a number of references to “in addition to land contribution” or “in addition to free land” in applicable areas to disclose that land costs didn’t factor into the financial conclusions of the scenario being considered. 2 June 13, 2022 Item 01

TECHNICAL ANALYSIS
Affordable Housing Financial Feasibility Analysis
City of Del Mar

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3 June 13, 2022 Item 01

FAIRGROUNDS

WITH FAMILY HOUSING

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4 June 13, 2022 Item 01
TABLE A-1

PROJECT DESCRIPTION

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 1.0 Acre 1.0 Acre 1.0 Acre 1.0 Acre 1.0 Acre 1.0 Acre 1.0 Acre III. Gross Building Area (GBA)
Net Residential 39,272 SF 81% 39,272 SF 81% 39,272 SF 81% 39,272 SF 81% 39,272 SF 81% 39,272 SF 81% 39,272 SF 81% Circulation/Common Area 9,354 SF 19% 9,354 SF 19% 9,354 SF 19% 9,354 SF 19% 9,354 SF 19% 9,354 SF 19% 9,354 SF 19% Total GBA 48,626 SF 100% 48,626 SF 100% 48,626 SF 100% 48,626 SF 100% 48,626 SF 100% 48,626 SF 100% 48,626 SF 100% IV. Average Unit Size 727 SF 727 SF 727 SF 727 SF 727 SF 727 SF 727 SF V. Stories 3 Stories 3 Stories 3 Stories 3 Stories 3 Stories 3 Stories 3 Stories VI. Density 54 Units/Acre 54 Units/Acre 54 Units/Acre 54 Units/Acre 54 Units/Acre 54 Units/Acre 54 Units/Acre VII. Floor Area Ratio (FAR) 1.12 FAR 1.12 FAR 1.12 FAR 1.12 FAR 1.12 FAR 1.12 FAR 1.12 FAR VIII. Total Number of Units 54 Units 54 Units 54 Units 54 Units 54 Units 54 Units 54 Units IX. Unit Mix
One Bedroom 26 Units 48% 26 Units 48% 26 Units 48% 26 Units 48% 26 Units 48% 26 Units 48% 26 Units 48% Two Bedroom 14 Units 26% 14 Units 26% 14 Units 26% 14 Units 26% 14 Units 26% 14 Units 26% 14 Units 26% Three Bedroom 14 Units 26% 14 Units 26% 14 Units 26% 14 Units 26% 14 Units 26% 14 Units 26% 14 Units 26% Total 54 Units 100% 54 Units 100% 54 Units 100% 54 Units 100% 54 Units 100% 54 Units 100% 54 Units 100% X. Affordability MiX
Market-Rate Units 54 Units 100% of Total 43 Units 80% of Total 43 Units 80% of Total 43 Units 80% of Total 1 Unit (1) 2% of Total 1 Unit (1) 2% of Total 1 Unit (1) 2% of Total Affordable Units
30% AMI 0 Units 0% 11 Units 20% 0 Units 0% 0 Units 0% 53 Units 98% 0 Units 0% 0 Units 0% 50% AMI 0 Units 0% 0 Units 0% 11 Units 20% 0 Units 0% 0 Units 0% 53 Units 98% 0 Units 0% 80% AMI 0 Units 0% 0 Units 0% 0 Units 0% 11 Units 20% 0 Units 0% 0 Units 0% 53 Units 98% Total Affordbale Units 0 Units 0% of Total 11 Units 20% of Total 11 Units 20% of Total 11 Units 20% of Total 53 Units 98% of Total 53 Units 98% of Total 53 Units 98% of Total XI. Parking
Type Podium Podium Podium Podium Podium Podium Podium
Number of Spaces 69 Spaces 69 Spaces 69 Spaces 69 Spaces 69 Spaces 69 Spaces 69 Spaces Parking Ratio 1.3 Spaces/Unit 1.3 Spaces/Unit 1.3 Spaces/Unit 1.3 Spaces/Unit 1.3 Spaces/Unit 1.3 Spaces/Unit 1.3 Spaces/Unit (1) Reflects manager's unit.
100% @ Market-Rate
Type V Type V Type V

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
Type V Type V
Mixed-Income without Tax Credits All Affordable without Tax Credits 80% @ Market-Rate
20% @ 80% AMI
100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI
80% @ Market-Rate
20% @ 50% AMI
All Market-Rate
Type V Type V
80% @ Market-Rate
20% @ 30% AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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5 June 13, 2022 Item 01
TABLE A-2

DEVELOPMENT COSTS

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit Total Per Unit Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $1,742,000 $32,000 $40 Per SF Site $1,742,000 $32,000 $40 Per SF Site $1,742,000 $32,000 $40 Per SF Site Parking $2,070,000 $38,000 $30,000 Per Space $2,070,000 $38,000 $30,000 Per Space $2,070,000 $38,000 $30,000 Per Space Shell Construction $13,129,000 $243,100 $270 Per SF GBA $13,129,000 $243,000 $270 Per SF GBA $13,129,000 $243,000 $270 Per SF GBA FF&E/Amenities $540,000 $10,000 Allowance $540,000 $10,000 Allowance $405,000 $7,500 Allowance Contingency $874,000 $16,000 5.0% of Directs $874,000 $16,000 5.0% of Directs $867,000 $16,000 5.0% of Directs Total Direct Costs $18,355,000 $340,000 $377 Per SF GBA $18,355,000 $340,000 $377 Per SF GBA $18,213,000 $337,000 $375 Per SF GBA II. Indirect Costs
Architecture & Engineering $1,468,000 $27,000 8.0% of Directs $1,468,000 $27,000 8.0% of Directs $1,457,000 $27,000 8.0% of Directs Permits & Fees (3) $4,336,000 $80,300 $89 Per SF GBA $4,336,000 $80,300 $89 Per SF GBA $4,212,000 $78,000 $87 Per SF GBA Legal & Accounting $275,000 $5,000 1.5% of Directs $275,000 $5,000 1.5% of Directs $273,000 $5,000 1.5% of Directs Taxes & Insurance $275,000 $5,000 1.5% of Directs $275,000 $5,000 1.5% of Directs $273,000 $5,000 1.5% of Directs Developer Fee $734,000 $14,000 4.0% of Directs $734,000 $14,000 4.0% of Directs $729,000 $14,000 4.0% of Directs Marketing/Lease-Up $135,000 $2,500 Allowance $135,000 $2,500 Allowance $135,000 $2,500 Allowance Contingency $361,000 $7,000 5.0% of Indirects $361,000 $7,000 5.0% of Indirects $354,000 $7,000 5.0% of Indirects Total Indirect Costs $7,584,000 $140,000 41.3% of Directs $7,584,000 $140,000 41.3% of Directs $7,433,000 $138,000 40.8% of Directs III. Financing Costs(4) $1,836,000 $34,000 10.0% of Directs $1,836,000 $34,000 10.0% of Directs $1,821,000 $34,000 10.0% of Directs IV. Total Development Costs (5) $27,775,000 $514,000 $571 Per SF GBA $27,775,000 $514,000 $571 Per SF GBA $27,467,000 $509,000 $565 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Estimated allowance; not verified by KMA or the City of Del Mar. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Market-Rate
Comments
Mixed-Income without Tax Credits
Comments
All Affordable without Tax Credits
Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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6 June 13, 2022 Item 01
TABLE A-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI)
# Units $/SF $/Month Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual A. Market-Rate
One Bedroom 555 SF 26 $4.85 $2,700 $842,000 21 $4.85 $2,700 $680,000 21 $4.85 $2,700 $680,000 21 $4.85 $2,700 $680,000 Two Bedroom 777 SF 14 $4.35 $3,400 $571,000 11 $4.35 $3,400 $449,000 11 $4.35 $3,400 $449,000 11 $4.35 $3,400 $449,000 Three Bedroom 998 SF 14 $4.10 $4,100 $689,000 11 $4.10 $4,100 $541,000 11 $4.10 $4,100 $541,000 11 $4.10 $4,100 $541,000 Subtotal/Average 727 SF 54 $4.53 $3,200 $2,102,000 43 $4.53 $3,200 $1,670,000 43 $4.53 $3,200 $1,670,000 43 $4.53 $3,200 $1,670,000 B. Affordable
One Bedroom @ 30% AMI 555 SF -- -- -- -- 5 $1.05 $580 $35,000 -- -- -- -- -- -- -- -- One Bedroom @ 50% AMI 555 SF -- -- -- -- -- -- -- -- 5 $1.82 $1,007 $60,000 -- -- -- -- One Bedroom @ 80% AMI 555 SF -- -- -- -- -- -- -- -- -- -- -- -- 5 $2.97 $1,649 $99,000 Two Bedroom @ 30% AMI 777 SF -- -- -- -- 3 $0.83 $642 $23,000 -- -- -- -- -- -- -- -- Two Bedroom @ 50% AMI 777 SF -- -- -- -- -- -- -- -- 3 $1.45 $1,123 $40,000 -- -- -- -- Two Bedroom @ 80% AMI 777 SF -- -- -- -- -- -- -- -- -- -- -- -- 3 $2.37 $1,844 $66,000 Three Bedroom @ 30% AMI 998 SF -- -- -- -- 3 $0.71 $705 $25,000 -- -- -- -- -- -- -- -- Three Bedroom @ 50% AMI 998 SF -- -- -- -- -- -- -- -- 3 $1.24 $1,239 $45,000 -- -- -- -- Three Bedroom @ 80% AMI 998 SF -- -- -- -- -- -- -- -- -- -- -- -- 3 $2.04 $2,041 $73,000 Subtotal/Average 727 SF -- -- -- -- 11 $0.89 $629 $83,000 11 $1.56 $1,098 $145,000 11 $2.56 $1,803 $238,000 C. Total/Average 727 SF 54 $4.53 $3,200 $2,102,000 54 $3.72 $2,705 $1,753,000 54 $3.85 $2,801 $1,815,000 54 $4.05 $2,944 $1,908,000 Add: Other Income $150 /Unit/Month $97,000 $100 /Unit/Month $65,000 $100 /Unit/Month $65,000 $125 /Unit/Month $81,000 D. Total Gross Scheduled Income (GSI) $2,199,000 $1,818,000 $1,880,000 $1,989,000 II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($110,000) 5.0% of GSI ($91,000) 5.0% of GSI ($94,000) 5.0% of GSI ($99,000) Effective Gross Income (EGI) $2,089,000 $1,727,000 $1,786,000 $1,890,000 III. Operating Expenses
(Less) Operating Expenses $5,750 /Unit/Year ($311,000) $5,750 /Unit/Year ($310,500) $5,750 /Unit/Year ($310,500) $5,750 /Unit/Year ($310,500) (Less) Property Taxes $7,407 /Unit/Year (2) ($400,000) $5,889 /Unit/Year (2) ($318,000) $6,148 /Unit/Year (2) ($331,000) $6,574 /Unit/Year (2) ($355,000) (Less) Replacement Reserves $250 /Unit/Year ($14,000) $250 /Unit/Year ($14,000) $250 /Unit/Year ($14,000) $250 /Unit/Year ($14,000) Total Operating Expenses $13,426 /Unit/Year ($725,000) $11,898 /Unit/Year ($642,500) $12,157 /Unit/Year ($655,500) $12,583 /Unit/Year ($679,500) 35% of EGI 37% of EGI 37% of EGI 36% of EGI
IV. Net Operating Income (NOI) $1,364,000 $1,084,500 $1,130,500 $1,210,500 (1) Based on State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Based on capitalized income approach; assumes a 1.10% tax rate and 3.75% cap rate. (3) Assumes project will qualify for tax-exempt status.

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
Mixed Income without Tax Credits
Unit Size
All Market-Rate
80% Market-Rate
20% @ 30% AMI
80% Market-Rate
20% @ 50% AMI
80% Market-Rate
20% @ 80% AMI
100% @ Market-Rate
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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7 June 13, 2022 Item 01
TABLE A-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI)
A. Market-Rate
One Bedroom 555 SF
Two Bedroom 777 SF
Three Bedroom 998 SF
Subtotal/Average 727 SF
B. Affordable
One Bedroom @ 30% AMI 555 SF
One Bedroom @ 50% AMI 555 SF
One Bedroom @ 80% AMI 555 SF
Two Bedroom @ 30% AMI 777 SF
Two Bedroom @ 50% AMI 777 SF
Two Bedroom @ 80% AMI 777 SF
Three Bedroom @ 30% AMI 998 SF
Three Bedroom @ 50% AMI 998 SF
Three Bedroom @ 80% AMI 998 SF
Subtotal/Average 727 SF
C. Total/Average 727 SF
Add: Other Income
D. Total Gross Scheduled Income (GSI)
II. Effective Gross Income
(Less) Vacancy
Effective Gross Income (EGI)
III. Operating Expenses
(Less) Operating Expenses
(Less) Property Taxes
(Less) Replacement Reserves
Total Operating Expenses
IV. Net Operating Income (NOI)
(1) Based on State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Based on capitalized income approach; assumes a 1.10% tax rate and 3.75% cap rate. (3) Assumes project will qualify for tax-exempt status.

Unit Size # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual -- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- -- -- --
26 $1.05 $580 $181,000 -- -- -- -- -- -- -- --
-- -- -- -- 26 $1.82 $1,007 $314,000 -- -- -- --
-- -- -- -- -- -- -- -- 26 $2.97 $1,649 $514,000
14 $0.83 $642 $108,000 -- -- -- -- -- -- -- --
-- -- -- -- 14 $1.45 $1,123 $189,000 -- -- -- --
-- -- -- -- -- -- -- -- 14 $2.37 $1,844 $310,000
14 $0.71 $705 $118,000 -- -- -- -- -- -- -- --
-- -- -- -- 14 $1.24 $1,239 $208,000 -- -- -- --
-- -- -- -- -- -- -- -- 14 $2.04 $2,041 $343,000
54 $0.90 $628 $407,000 54 $1.57 $1,097 $711,000 54 $2.58 $1,801 $1,167,000 54 $0.86 $628 $407,000 54 $1.51 $1,097 $711,000 54 $2.48 $1,801 $1,167,000 $25 /Unit/Month $16,000 $25 /Unit/Month $16,000 $50 /Unit/Month $32,000 $423,000 $727,000 $1,199,000

5.0% of GSI ($21,000) 5.0% of GSI ($36,000) 5.0% of GSI ($60,000) $402,000 $691,000 $1,139,000
$5,750 /Unit/Year ($310,500) $5,750 /Unit/Year ($310,500) $5,750 /Unit/Year ($310,500) $0 /Unit/Year (3) $0 $0 /Unit/Year (3) $0 $0 /Unit/Year (3) $0 $250 /Unit/Year ($14,000) $250 /Unit/Year ($14,000) $250 /Unit/Year ($14,000) $6,009 /Unit/Year ($324,500) $6,009 /Unit/Year ($324,500) $6,009 /Unit/Year ($324,500) 81% of EGI 47% of EGI 28% of EGI
$77,500 $366,500 $814,500
All Affordable without Tax Credits

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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8 June 13, 2022 Item 01
TABLE A-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Capitalized Value Upon Completion
Stabilized Net Operating Income $1,364,000 $1,084,500 $1,130,500 $1,210,500 Capitalization Rate @ 3.75% 3.75% 3.75% 3.75%
Capitalized Value Upon Completion $674,000 /Unit $36,373,000 $536,000 /Unit $28,920,000 $558,000 /Unit $30,147,000 $598,000 /Unit $32,280,000 (Less) Cost of Sale 2.0% of Value ($727,000) 2.0% of Value ($578,000) 2.0% of Value ($603,000) 2.0% of Value ($646,000) (Less) Target Developer Profit 10.0% of Value ($3,637,000) 10.0% of Value ($2,892,000) 10.0% of Value ($3,015,000) 10.0% of Value ($3,228,000) II. Net Sales Proceeds $32,009,000 $25,450,000 $26,529,000 $28,406,000 (Less) Development Costs ($27,775,000) ($27,775,000) ($27,775,000) ($27,775,000) III. Residual Land Value $4,234,000 ($2,325,000) ($1,246,000) $631,000 Per Unit $78,000 ($43,000) ($23,000) $12,000
Per SF Site $97 ($53) ($29) $14

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
100% Market-Rate 80% Market-Rate
20% @ 30% AMI
80% Market-Rate
20% @ 50% AMI
80% Market-Rate
20% @ 80% AMI
All Market-Rate Mixed-Income without Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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9 June 13, 2022 Item 01
TABLE A-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Capitalized Value Upon Completion
Stabilized Net Operating Income
Capitalization Rate @
Capitalized Value Upon Completion
(Less) Cost of Sale
(Less) Target Developer Profit
II. Net Sales Proceeds
(Less) Development Costs
III. Residual Land Value
Per Unit
Per SF Site
$77,500 $366,500 $814,500

4.00% 4.00% 4.00%
$36,000 /Unit $1,938,000 $170,000 /Unit $9,163,000 $377,000 /Unit $20,363,000

2.0% of Value ($39,000) 2.0% of Value ($183,000) 2.0% of Value ($407,000)

10.0% of Value ($194,000) 10.0% of Value ($916,000) 10.0% of Value ($2,036,000) $1,705,000 $8,064,000 $17,920,000
($27,467,000) ($27,467,000) ($27,467,000)
($25,762,000) ($19,403,000) ($9,547,000)
($477,000) ($359,000) ($177,000)
($591) ($445) ($219)
100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI
100% Affordable without Tax Credits

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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10 June 13, 2022 Item 01
100% Affordable with
Low Income Housing Tax Credits
Fairgrounds with Family Housing
Standalone Project - 1.0 Acre

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11 June 13, 2022 Item 01
TABLE A-5

PROJECT DESCRIPTION

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 1.0 Acre 1.0 Acre
III. Gross Building Area (GBA)
Net Residential 39,272 SF 81% 39,272 SF 81%
Circulation/Common Area 9,354 SF 19% 9,354 SF 19%
Total GBA 48,626 SF 100% 48,626 SF 100%
IV. Average Unit Size 727 SF 727 SF
V. Stories 3 Stories 3 Stories
VI. Density 54 Units/Acre 54.0 Units/Acre
VII. Floor Area Ratio (FAR) 1.12 FAR 1.1 FAR
VIII. Total Number of Units 54 Units 54 Units
IX. Unit Mix
One Bedroom 26 Units 48% 26 Units 48%
Two Bedroom 14 Units 26% 14 Units 26%
Three Bedroom 14 Units 26% 14 Units 26%
Total 54 Units 100% 54 Units 100%
X. Affordability Mix
0 Units 0% 0 Units 0%
53 Units 98% 53 Units 98%
0 Units 0% 0 Units 0%
Manager 1 Unit 2% 1 Unit 2%
Total/Average 54 Units 100% 54 Units 100%
Average Affordability
(excluding Manager units) 50.0% of AMI 50.0% of AMI
XI. Parking
Type Podium Podium
Number of Spaces 69 Spaces 69 Spaces
Parking Ratio 1.28 Spaces/Unit 1.28 Spaces/Unit
Units @ 30% of AMI
Units @ 50% of AMI
Units @ 80% of AMI

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
Type V
4%Tax Credits
Type V
9% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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12 June 13, 2022 Item 01
TABLE A-6

DEVELOPMENT COSTS

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit
Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $1,742,000 $32,000 $40 Per SF Site $1,742,000 $32,000 $40 Per SF Site Parking $2,070,000 $38,000 $30,000 Per Space $2,070,000 $38,000 $30,000 Per Space Shell Construction $13,858,000 $257,000 $285 Per SF GBA $13,858,000 $257,000 $285 Per SF GBA FF&E/Amenities $405,000 $7,500 Allowance $405,000 $7,500 Allowance Subtotal $18,075,000 $335,000 $372 Per SF GBA $18,075,000 $335,000 $372 Per SF GBA Add: Prevailing Wages $0 $0 0.0% of Above Directs $2,711,000 $50,000 15.0% of Above Directs Contingency $951,000 $18,000 5.0% of Above Directs $1,094,000 $20,000 5.0% of Directs Total Direct Costs $19,026,000 $352,000 $391 Per SF GBA $21,880,000 $405,000 $450 Per SF GBA II. Indirect Costs
Architecture & Engineering $1,522,000 $28,000 8.0% of Directs $1,750,000 $32,000 8.0% of Directs Permits & Fees (3) $4,212,000 $78,000 $87 Per SF GBA $4,212,000 $78,000 $87 Per SF GBA Legal & Accounting $285,000 $5,000 1.5% of Directs $328,000 $6,000 1.5% of Directs Taxes & Insurance $285,000 $5,000 1.5% of Directs $328,000 $6,000 1.5% of Directs Developer Fee $2,200,000 $41,000 11.6% of Directs $4,516,000 $84,000 20.6% of Directs Marketing/Lease-Up $135,000 $2,500 Allowance $135,000 $2,500 Allowance Contingency $432,000 $8,000 5.0% of Indirects $563,000 $10,000 5.0% of Indirects Total Indirect Costs $9,071,000 $168,000 47.7% of Directs $11,832,000 $219,000 54.1% of Directs III. Financing Costs(4)
Loan Fees $454,000 $8,000 2.4% of Directs $971,000 $18,000 4.4% of Directs Interest During Constructions $926,000 $17,000 4.9% of Directs $656,000 $12,000 3.0% of Directs Title/Recording/Escrow $27,000 $500 0.1% of Directs $27,000 $500 0.1% of Directs Interest During Lease-Up $515,000 $10,000 2.7% of Directs $364,000 $7,000 1.7% of Directs TCAC/Syndication Fees $189,000 $4,000 1.0% of Directs $171,000 $3,000 0.8% of Directs Operating Lease-Up/Reserves $195,000 $4,000 1.0% of Directs $198,000 $4,000 0.9% of Directs Total Financing Costs $2,306,000 $43,000 12.1% of Directs $2,387,000 $44,000 10.9% of Directs IV. Total Development Costs (5) $30,403,000 $563,000 $625 Per SF GBA $36,099,000 $669,000 $742 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Per the City of Del Mar, includes building permit fee, construction license tax, SMIP fee, and school district fees. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.

Comments Comments

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 11 ends

13 June 13, 2022 Item 01
TABLE A-7

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI) # Units $/SF $/Month (1) Annual $/SF $/Month (1) Annual One Bedroom @ 50% AMI 26 555 SF $1.82 $1,007 $314,000 $1.82 $1,007 $314,000 Two Bedroom @ 50% AMI 13 777 SF $1.45 $1,123 $175,000 $2.02 $1,123 $175,000 Two Bedroom @ Manager 1 777 SF $0.00 $0 $0 $0.00 $0 $0
Three Bedroom @ 50% AMI 14 998 SF $1.24 $1,239 $208,000 $1.24 $1,239 $208,000 Total/Average 54 727 SF $1.51 $1,100 $697,000 $1.51 $1,100 $697,000 Add: Other Income $15 /Unit/Month $10,000 $50 /Unit/Month $32,000 Total Gross Scheduled Income (GSI) $707,000 $729,000
II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($35,000) 5.0% of GSI ($36,000) Effective Gross Income (EGI) $672,000 $693,000
III. Operating Expenses
(Less) Operating Expenses $6,000 /Unit/Year ($324,000) $6,000 /Unit/Year ($324,000) (Less) Tenant Services $200 /Unit/Year ($10,800) $500 /Unit/Year ($27,000) (Less) Property Taxes/Assessments(2) $370 /Unit/Year ($20,000) $370 /Unit/Year ($20,000) (Less) Replacement Reserves $200 /Unit/Year ($11,000) $500 /Unit/Year ($27,000) (Less) Monitoring Fee $150 /Unit/Year ($8,000) $150 /Unit/Year ($8,000) Total Operating Expenses $6,922 /Unit/Year ($373,800) $7,519 /Unit/Year ($406,000)

55.6% of EGI 58.6% of EGI
IV. Net Operating Income (NOI) $298,200 $287,000
V. (Less) Debt Service - Other State Funding Source (3) 0% of Loan $0 0.42% of Loan ($34,000) VI. NOI after Debt Service for State Funding Source $298,200 $253,000 (1)
(2) Reflects special assessments only. Assumes project will qualify for tax-exempt status. (3) Reflects competitive State funding source, e.g., AHSC, MIP, MHP, IIG, etc.

Based on the lower of State of California Department of Housing and Community Development (HCD) 2022 income limits or California Tax Credit Allocation Committee 2022 maximum income and rent levels for projects placed in service on or after April 18, 2022.

Unit Size

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 12 ends

14 June 13, 2022 Item 01
TABLE A-8

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Sources of Funds Total Per Unit Total Per Unit
Supportable Permanent Loan (1) $4,024,000 $75,000 $3,874,000 $72,000 Tax Credit Equity Investment (2) $19,581,000 $363,000 $15,748,000 $292,000 Other State Funding Source (3) $0 $0 $5,400,000 $100,000 Deferred Developer Fee (4) $0 $0 $2,016,000 $37,000
General Partner Equity Contribution (4) $0 $0 $0 $0
Total Sources of Funds $23,605,000 $437,000 $27,038,000 $501,000 II. (Less) Development Costs ($30,403,000) ($563,000) ($36,099,000) ($669,000) III. Residual Land Value ($6,798,000) ($126,000) ($9,061,000) ($168,000)

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 13 ends

15 June 13, 2022 Item 01
TABLE A-8 (CONT'D.)

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
(1) Supportable Permanent Loan
NOI $298,200 $253,000
Interest Rate 5.50% 4.50%
Term (years) 35 35
Debt Coverage Ratio 1.15 1.15
Annual Debt Service $259,304 $220,000
Supportable Permanent Loan $4,024,000 $3,874,000
(2) Low Income Housing Tax Credits (Federal)
Estimate of Eligible Basis:

Total Development Costs $30,403,000 $36,099,000
(Less) Ineligible Costs 15% ($973,000) 4% ($1,475,000)
Eligible Basis $29,430,000 $34,624,000
Tax Credit Proceeds:

Maximum Eligible Basis $29,430,000 $34,624,000
(Less) Voluntary Credit Adjustment 35.0% ($10,301,000) 0.0% $0 Total Requested Unadjusted Basis $19,129,000 $34,624,000 Impacted Bonus Factor 130% $24,868,000 130% $45,011,200 Tax Credit Qualified Units/Applicable Factor 100% $24,868,000 100% $45,011,200 Tax Credit Rate 9.00% $2,238,000 4.00% $1,800,000
Total Tax Credits @ 10 $22,380,000 10 $18,000,000
Limited Partner Share 99.99% $22,378,000 99.99% $17,998,200 Tax Credit Equity Investment @ 87.5% $19,581,000 87.5% $15,748,000 (3) Other State Funding Source
Total Loan $0 $5,400,000
Annual Debt Service 0.00% $0 0.42% $23,000
(4) Estimate of Deferred Developer Fee
Eligible Basis $29,430,000 $34,624,000
(Less) Developer Fee ($2,200,000) ($4,516,000)
Unadjusted Eligible Basis $27,230,000 $30,108,000
Total Developer Fee 8.1% $2,200,000 15.0% $4,516,000
Developer Overhead Fee $2,200,000 $4,516,000
(Less) Deferred Developer Fee $0 ($2,016,000)
Upfront Developer Fee $2,200,000 $2,500,000

FAIRGROUNDS WITH FAMILY HOUSING

STANDALONE PROJECT
9% Tax Credits 4% Tax Credits
All Affordable with Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 14 ends

16 June 13, 2022 Item 01
TABLE B-1

PROJECT DESCRIPTION

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 1.5 Acre 1.5 Acre 1.5 Acre 1.5 Acre 1.5 Acre 1.5 Acre 1.5 Acre III. Gross Building Area (GBA)
Net Residential 59,628 SF 78% 59,628 SF 78% 59,628 SF 78% 59,628 SF 78% 59,628 SF 78% 59,628 SF 78% 59,628 SF 78% Circulation/Common Area 16,991 SF 22% 16,991 SF 22% 16,991 SF 22% 16,991 SF 22% 16,991 SF 22% 16,991 SF 22% 16,991 SF 22% Total GBA 76,619 SF 100% 76,619 SF 100% 76,619 SF 100% 76,619 SF 100% 76,619 SF 100% 76,619 SF 100% 76,619 SF 100% IV. Average Unit Size 745 SF 745 SF 745 SF 745 SF 745 SF 745 SF 745 SF V. Stories 3 Stories 3 Stories 3 Stories 3 Stories 3 Stories 3 Stories 3 Stories VI. Density 53 Units/Acre 53 Units/Acre 53 Units/Acre 53 Units/Acre 53 Units/Acre 53 Units/Acre 53 Units/Acre VII. Floor Area Ratio (FAR) 1.17 FAR 1.17 FAR 1.17 FAR 1.17 FAR 1.17 FAR 1.17 FAR 1.17 FAR VIII. Total Number of Units 80 Units 80 Units 80 Units 80 Units 80 Units 80 Units 80 Units IX. Unit Mix
One Bedroom 34 Units 43% 34 Units 43% 34 Units 43% 34 Units 43% 34 Units 43% 34 Units 43% 34 Units 43% Two Bedroom 22 Units 28% 22 Units 28% 22 Units 28% 22 Units 28% 22 Units 28% 22 Units 28% 22 Units 28% Three Bedroom 24 Units 30% 24 Units 30% 24 Units 30% 24 Units 30% 24 Units 30% 24 Units 30% 24 Units 30% Total 80 Units 100% 80 Units 100% 80 Units 100% 80 Units 100% 80 Units 100% 80 Units 100% 80 Units 100% X. Affordability MiX
Market-Rate Units 80 Units 100% of Total 64 Units 80% of Total 64 Units 80% of Total 64 Units 80% of Total 1 Unit (1) 1% of Total 1 Unit (1) 1% of Total 1 Unit (1) 1% of Total Affordable Units
30% AMI 0 Units 0% 16 Units 20% 0 Units 0% 0 Units 0% 79 Units 99% 0 Units 0% 0 Units 0% 50% AMI 0 Units 0% 0 Units 0% 16 Units 20% 0 Units 0% 0 Units 0% 79 Units 99% 0 Units 0% 80% AMI 0 Units 0% 0 Units 0% 0 Units 0% 16 Units 20% 0 Units 0% 0 Units 0% 79 Units 99% Total Affordbale Units 0 Units 0% of Total 16 Units 20% of Total 16 Units 20% of Total 16 Units 20% of Total 79 Units 99% of Total 79 Units 99% of Total 79 Units 99% of Total XI. Parking
Type Podium Podium Podium Podium Podium Podium Podium
Number of Spaces 124 Spaces 124 Spaces 124 Spaces 124 Spaces 124 Spaces 124 Spaces 124 Spaces Parking Ratio 1.6 Spaces/Unit 1.6 Spaces/Unit 1.6 Spaces/Unit 1.6 Spaces/Unit 1.6 Spaces/Unit 1.6 Spaces/Unit 1.6 Spaces/Unit (1) Reflects manager's unit.

Type V Type V Type V Type V Type V Type V Type V

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Market-Rate Mixed-Income without Tax Credits All Affordable without Tax Credits 100% @ Market-Rate 80% @ Market-Rate
20% @ 30% AMI
80% @ Market-Rate
20% @ 50% AMI
80% @ Market-Rate
20% @ 80% AMI
100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 15 ends

17 June 13, 2022 Item 01
TABLE B-2

DEVELOPMENT COSTS

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit Total Per Unit Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $2,614,000 $33,000 $40 Per SF Site $2,614,000 $33,000 $40 Per SF Site $2,614,000 $33,000 $40 Per SF Site Parking $3,720,000 $47,000 $30,000 Per Space $3,720,000 $47,000 $30,000 Per Space $3,720,000 $47,000 $30,000 Per Space Shell Construction $19,921,000 $249,000 $260 Per SF GBA $19,921,000 $249,000 $260 Per SF GBA $19,921,000 $249,000 $260 Per SF GBA FF&E/Amenities $800,000 $10,000 Allowance $800,000 $10,000 Allowance $600,000 $7,500 Allowance Contingency $1,353,000 $17,000 5.0% of Directs $1,353,000 $17,000 5.0% of Directs $1,343,000 $17,000 5.0% of Directs Total Direct Costs $28,408,000 $355,000 $371 Per SF GBA $28,408,000 $355,000 $371 Per SF GBA $28,198,000 $352,000 $368 Per SF GBA II. Indirect Costs
Architecture & Engineering $2,273,000 $28,000 8.0% of Directs $2,273,000 $28,000 8.0% of Directs $2,256,000 $28,000 8.0% of Directs Permits & Fees (3) $6,816,000 $85,200 $89 Per SF GBA $6,800,000 $85,000 $89 Per SF GBA $6,640,000 $83,000 $87 Per SF GBA Legal & Accounting $426,000 $5,000 1.5% of Directs $426,000 $5,000 1.5% of Directs $423,000 $5,000 1.5% of Directs Taxes & Insurance $426,000 $5,000 1.5% of Directs $426,000 $5,000 1.5% of Directs $423,000 $5,000 1.5% of Directs Developer Fee $1,136,000 $14,000 4.0% of Directs $1,136,000 $14,000 4.0% of Directs $1,128,000 $14,000 4.0% of Directs Marketing/Lease-Up $200,000 $2,500 Allowance $200,000 $2,500 Allowance $200,000 $2,500 Allowance Contingency $564,000 $7,000 5.0% of Indirects $563,000 $7,000 5.0% of Indirects $554,000 $7,000 5.0% of Indirects Total Indirect Costs $11,841,000 $148,000 41.7% of Directs $11,824,000 $148,000 41.6% of Directs $11,624,000 $145,000 41.2% of Directs III. Financing Costs(4) $2,841,000 $36,000 10.0% of Directs $2,841,000 $36,000 10.0% of Directs $2,820,000 $35,000 10.0% of Directs IV. Total Development Costs (5) $43,090,000 $539,000 $562 Per SF GBA $43,073,000 $538,000 $562 Per SF GBA $42,642,000 $533,000 $557 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Per the City of Del Mar, includes building permit fee, construction license tax, RTCIP, SMIP fee, and school district fees. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Market-Rate Mixed-Income without Tax Credits All Affordable without Tax Credits Comments Comments Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 16 ends

18 June 13, 2022 Item 01
TABLE B-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI)
# Units $/SF $/Month Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual A. Market-Rate
One Bedroom 579 SF 34 $4.85 $2,800 $1,142,000 27 $4.85 $2,800 $907,000 27 $4.85 $2,800 $907,000 27 $4.85 $2,800 $907,000 Two Bedroom 807 SF 22 $4.35 $3,500 $924,000 18 $4.35 $3,500 $756,000 18 $4.35 $3,500 $756,000 18 $4.35 $3,500 $756,000 Three Bedroom 924 SF 24 $4.10 $3,800 $1,094,000 19 $4.10 $3,800 $866,000 19 $4.10 $3,800 $866,000 19 $4.10 $3,800 $866,000 Subtotal/Average 745 SF 80 $4.49 $3,300 $3,160,000 64 $4.49 $3,300 $2,529,000 64 $4.49 $3,300 $2,529,000 64 $4.49 $3,300 $2,529,000 B. Affordable
One Bedroom @ 30% AMI 579 SF -- -- -- -- 7 $1.00 $580 $49,000 -- -- -- -- -- -- -- -- One Bedroom @ 50% AMI 579 SF -- -- -- -- -- -- -- -- 7 $1.74 $1,007 $85,000 -- -- -- -- One Bedroom @ 80% AMI 579 SF -- -- -- -- -- -- -- -- -- -- -- -- 7 $2.85 $1,649 $139,000 Two Bedroom @ 30% AMI 807 SF -- -- -- -- 4 $0.80 $642 $31,000 -- -- -- -- -- -- -- -- Two Bedroom @ 50% AMI 807 SF -- -- -- -- -- -- -- -- 4 $1.39 $1,123 $54,000 -- -- -- -- Two Bedroom @ 80% AMI 807 SF -- -- -- -- -- -- -- -- -- -- -- -- 4 $2.28 $1,844 $89,000 Three Bedroom @ 30% AMI 924 SF -- -- -- -- 5 $0.76 $705 $42,000 -- -- -- -- -- -- -- -- Three Bedroom @ 50% AMI 924 SF -- -- -- -- -- -- -- -- 5 $1.34 $1,239 $74,000 -- -- -- -- Three Bedroom @ 80% AMI 924 SF -- -- -- -- -- -- -- -- -- -- -- -- 5 $2.21 $2,041 $122,000 Subtotal/Average 745 SF -- -- -- -- 16 $0.88 $635 $122,000 16 $1.53 $1,109 $213,000 16 $2.51 $1,823 $350,000 C. Total/Average 745 SF 80 $4.49 $3,300 $3,160,000 80 $3.70 $2,761 $2,651,000 80 $3.83 $2,856 $2,742,000 80 $4.02 $2,999 $2,879,000 Add: Other Income $150 /Unit/Month $144,000 $100 /Unit/Month $96,000 $100 /Unit/Month $96,000 $125 /Unit/Month $120,000 D. Total Gross Scheduled Income (GSI) $3,304,000 $2,747,000 $2,838,000 $2,999,000 II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($165,000) 5.0% of GSI ($137,000) 5.0% of GSI ($142,000) 5.0% of GSI ($150,000) Effective Gross Income (EGI) $3,139,000 $2,610,000 $2,696,000 $2,849,000 III. Operating Expenses
(Less) Operating Expenses $5,750 /Unit/Year ($460,000) $5,750 /Unit/Year ($460,000) $5,750 /Unit/Year ($460,000) $5,750 /Unit/Year ($460,000) (Less) Property Taxes $7,538 /Unit/Year (2) ($603,000) $6,038 /Unit/Year (2) ($483,000) $6,288 /Unit/Year (2) ($502,000) $6,713 /Unit/Year (2) ($537,000) (Less) Replacement Reserves $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) Total Operating Expenses $13,538 /Unit/Year ($1,083,000) $12,038 /Unit/Year ($963,000) $12,288 /Unit/Year ($982,000) $12,713 /Unit/Year ($1,017,000) 35% of EGI 37% of EGI 36% of EGI 36% of EGI
IV. Net Operating Income (NOI) $2,056,000 $1,647,000 $1,714,000 $1,832,000 (1) Based on State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Based on capitalized income approach; assumes a 1.10% tax rate and 3.75% cap rate. (3) Assumes project will qualify for tax-exempt status.

Unit Size

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Market-Rate Mixed Income without Tax Credits
100% @ Market-Rate 80% Market-Rate
20% @ 30% AMI
80% Market-Rate
20% @ 50% AMI
80% Market-Rate
20% @ 80% AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 17 ends

19 June 13, 2022 Item 01
TABLE B-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI)
A. Market-Rate
One Bedroom 579 SF
Two Bedroom 807 SF
Three Bedroom 924 SF
Subtotal/Average 745 SF
B. Affordable
One Bedroom @ 30% AMI 579 SF
One Bedroom @ 50% AMI 579 SF
One Bedroom @ 80% AMI 579 SF
Two Bedroom @ 30% AMI 807 SF
Two Bedroom @ 50% AMI 807 SF
Two Bedroom @ 80% AMI 807 SF
Three Bedroom @ 30% AMI 924 SF
Three Bedroom @ 50% AMI 924 SF
Three Bedroom @ 80% AMI 924 SF
Subtotal/Average 745 SF
C. Total/Average 745 SF
Add: Other Income
D. Total Gross Scheduled Income (GSI)
II. Effective Gross Income
(Less) Vacancy
Effective Gross Income (EGI)
III. Operating Expenses
(Less) Operating Expenses
(Less) Property Taxes
(Less) Replacement Reserves
Total Operating Expenses
IV. Net Operating Income (NOI)
(1) Based on State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Based on capitalized income approach; assumes a 1.10% tax rate and 3.75% cap rate. (3) Assumes project will qualify for tax-exempt status.

Unit Size # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual -- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- -- -- --
34 $1.00 $580 $237,000 -- -- -- -- -- -- -- --
-- -- -- -- 34 $1.74 $1,007 $411,000 -- -- -- --
-- -- -- -- -- -- -- -- 34 $2.85 $1,649 $673,000
22 $0.80 $642 $169,000 -- -- -- -- -- -- -- --
-- -- -- -- 22 $1.39 $1,123 $296,000 -- -- -- --
-- -- -- -- -- -- -- -- 24 $2.28 $1,844 $531,000
24 $0.76 $705 $203,000 -- -- -- -- -- -- -- --
-- -- -- -- 24 $1.34 $1,239 $357,000 -- -- -- --
-- -- -- -- -- -- -- -- 24 $2.21 $2,041 $588,000
80 $0.87 $634 $609,000 80 $1.52 $1,108 $1,064,000 80 $2.56 $1,867 $1,792,000 80 $0.85 $634 $609,000 80 $1.49 $1,108 $1,064,000 80 $2.50 $1,867 $1,792,000 $25 /Unit/Month $24,000 $25 /Unit/Month $24,000 $50 /Unit/Month $48,000 $633,000 $1,088,000 $1,840,000

5.0% of GSI ($32,000) 5.0% of GSI ($54,000) 5.0% of GSI ($92,000) $601,000 $1,034,000 $1,748,000
$5,750 /Unit/Year ($460,000) $5,750 /Unit/Year ($460,000) $5,750 /Unit/Year ($460,000) $0 /Unit/Year (3) $0 $0 /Unit/Year (3) $0 $0 /Unit/Year (3) $0 $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) $6,000 /Unit/Year ($480,000) $6,000 /Unit/Year ($480,000) $6,000 /Unit/Year ($480,000) 80% of EGI 46% of EGI 27% of EGI
$121,000 $554,000 $1,268,000
100% @ 50% AMI 100% @ 80% AMI

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable without Tax Credits
100% @ 30% AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 18 ends

20 June 13, 2022 Item 01
TABLE B-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Capitalized Value Upon Completion
Stabilized Net Operating Income $2,056,000 $1,647,000 $1,714,000 $1,832,000 Capitalization Rate @ 3.75% 3.75% 3.75% 3.75%
Capitalized Value Upon Completion $685,000 /Unit $54,827,000 $549,000 /Unit $43,920,000 $571,000 /Unit $45,707,000 $611,000 /Unit $48,853,000 (Less) Cost of Sale 2.0% of Value ($1,097,000) 2.0% of Value ($878,000) 2.0% of Value ($914,000) 2.0% of Value ($977,000) (Less) Target Developer Profit 10.0% of Value ($5,483,000) 10.0% of Value ($4,392,000) 10.0% of Value ($4,571,000) 10.0% of Value ($4,885,000) II. Net Sales Proceeds $48,247,000 $38,650,000 $40,222,000 $42,991,000 (Less) Development Costs ($43,090,000) ($43,073,000) ($43,073,000) ($43,073,000) III. Residual Land Value $5,157,000 ($4,423,000) ($2,851,000) ($82,000) Per Unit $64,000 ($55,000) ($36,000) ($1,000)
Per SF Site $79 ($68) ($44) ($1)
All Market-Rate Mixed-Income without Tax Credits
100% Market-Rate 80% Market-Rate
20% @ 30% AMI
80% Market-Rate
20% @ 50% AMI
80% Market-Rate
20% @ 80% AMI

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 19 ends

21 June 13, 2022 Item 01
TABLE B-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

4.00% 4.00% 4.00%
$38,000 /Unit $3,025,000 $173,000 /Unit $13,850,000 $396,000 /Unit $31,700,000

2.0% of Value ($61,000) 2.0% of Value ($277,000) 2.0% of Value ($634,000)

10.0% of Value ($303,000) 10.0% of Value ($1,385,000) 10.0% of Value ($3,170,000) $2,661,000 $12,188,000 $27,896,000
($42,642,000) ($42,642,000) ($42,642,000)
($39,981,000) ($30,454,000) ($14,746,000)
($500,000) ($381,000) ($184,000)
($612) ($466) ($226)
100% @ 50% AMI 100% @ 80% AMI
100% Affordable without Tax Credits
100% @ 30% AMI

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 20 ends

22 June 13, 2022 Item 01
100% Affordable with
Low Income Housing Tax Credits
Fairgrounds with Family Housing - 1.5 Acres
Standalone Project

Page 21 ends

23 June 13, 2022 Item 01
TABLE B-5

PROJECT DESCRIPTION

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 1.5 Acre 1.5 Acre
III. Gross Building Area (GBA)
Net Residential 59,628 SF 78% 59,628 SF 78%
Circulation/Common Area 16,991 SF 22% 16,991 SF 22%
Total GBA 76,619 SF 100% 76,619 SF 100%
IV. Average Unit Size 745 SF 745 SF
V. Stories 3 Stories 3 Stories
VI. Density 53 Units/Acre 53 Units/Acre
VII. Floor Area Ratio (FAR) 1.17 FAR 1.17 FAR
VIII. Total Number of Units 80 Units 80 Units
IX. Unit Mix
One Bedroom 34 Units 43% 34 Units 43%
Two Bedroom 22 Units 28% 22 Units 28%
Three Bedroom 24 Units 30% 24 Units 30%
Total 80 Units 100% 80 Units 100%
X. Affordability Mix
0 Units 0% 0 Units 0%
79 Units 99% 79 Units 99%
0 Units 0% 0 Units 0%
Manager 1 Unit 1% 1 Unit 1%
Total/Average 80 Units 100% 80 Units 100%
Average Affordability
(excluding Manager units) 50.0% of AMI 50.0% of AMI
XI. Parking
Type Podium Podium
Number of Spaces 124 Spaces 124 Spaces
Parking Ratio 1.6 Spaces/Unit 1.6 Spaces/Unit
Units @ 30% of AMI
Units @ 50% of AMI
Units @ 80% of AMI

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4%Tax Credits
Type V Type V
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 22 ends

24 June 13, 2022 Item 01
TABLE B-6

DEVELOPMENT COSTS

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit
Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $2,614,000 $33,000 $40 Per SF Site $2,614,000 $33,000 $40 Per SF Site Parking $3,720,000 $47,000 $30,000 Per Space $3,720,000 $47,000 $30,000 Per Space Shell Construction $21,070,000 $263,000 $275 Per SF GBA $21,070,000 $263,000 $275 Per SF GBA FF&E/Amenities $600,000 $7,500 Allowance $600,000 $7,500 Allowance Subtotal $28,004,000 $350,000 $365 Per SF GBA $28,004,000 $350,000 $365 Per SF GBA Add: Prevailing Wages $0 $0 0.0% of Above Directs $4,201,000 $53,000 15.0% of Above Directs Contingency $1,400,000 $18,000 5.0% of Directs $1,610,000 $20,000 5.0% of Directs Total Direct Costs $29,404,000 $368,000 $384 Per SF GBA $33,815,000 $423,000 $441 Per SF GBA II. Indirect Costs
Architecture & Engineering $2,352,000 $29,000 8.0% of Directs $2,705,000 $34,000 8.0% of Directs Permits & Fees (3) $6,640,000 $83,000 $87 Per SF GBA $6,640,000 $83,000 $87 Per SF GBA Legal & Accounting $441,000 $6,000 1.5% of Directs $507,000 $6,000 1.5% of Directs Taxes & Insurance $441,000 $6,000 1.5% of Directs $507,000 $6,000 1.5% of Directs Developer Fee $2,200,000 $28,000 7.5% of Directs $7,045,000 $88,000 20.8% of Directs Marketing/Lease-Up $200,000 $2,500 Allowance $200,000 $2,500 Alllowance Contingency $614,000 $8,000 5.0% of Indirects $880,000 $11,000 5.0% of Indirects Total Indirect Costs $12,888,000 $161,000 43.8% of Directs $18,484,000 $231,000 54.7% of Directs III. Financing Costs(4)
Loan Fees $647,000 $8,000 2.2% of Directs $1,782,000 $22,000 5.3% of Directs Interest During Constructions $1,257,000 $16,000 4.3% of Directs $1,203,000 $15,000 3.6% of Directs Title/Recording/Escrow $40,000 $500 0.1% of Directs $40,000 $500 0.1% of Directs Interest During Lease-Up $699,000 $9,000 2.4% of Directs $668,000 $8,000 2.0% of Directs TCAC/Syndication Fees $234,000 $3,000 0.8% of Directs $222,000 $3,000 0.7% of Directs Operating Lease-Up/Reserves $300,000 $4,000 1.0% of Directs $295,000 $4,000 0.9% of Directs Total Financing Costs $3,177,000 $40,000 10.8% of Directs $4,210,000 $53,000 12.5% of Directs IV. Total Development Costs (5) $45,469,000 $568,000 $593 Per SF GBA $56,509,000 $706,000 $738 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Per the City of Del Mar, includes building permit fee, construction license tax, SMIP fee, and school district fees. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Comments Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 23 ends

25 June 13, 2022 Item 01
TABLE B-7

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI) # Units $/SF $/Month (1) Annual $/SF $/Month (1) Annual One Bedroom @ 50% AMI 34 579 SF $1.74 $1,007 $411,000 $1.74 $1,007 $411,000 Two Bedroom @ 50% AMI 21 807 SF $1.39 $1,123 $283,000 $1.39 $1,123 $283,000 Two Bedroom @ Manager 1 807 SF $0.00 $0 $0 $0.00 $0 $0
Three Bedroom @ 50% AMI 24 924 SF $1.34 $1,239 $357,000 $1.34 $1,239 $357,000 Total/Average 80 745 SF $1.48 $1,100 $1,051,000 $1.48 $1,100 $1,051,000 Add: Other Income $50 /Unit/Month $48,000 $50 /Unit/Month $48,000 Total Gross Scheduled Income (GSI) $1,099,000 $1,099,000 II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($55,000) 5.0% of GSI ($55,000) Effective Gross Income (EGI) $1,044,000 $1,044,000
III. Operating Expenses
(Less) Operating Expenses $6,000 /Unit/Year ($480,000) $6,000 /Unit/Year ($480,000) (Less) Tenant Services $200 /Unit/Year ($16,000) $500 /Unit/Year ($16,000) (Less) Property Taxes/Assessments(2) $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) (Less) Replacement Reserves $250 /Unit/Year ($20,000) $500 /Unit/Year ($40,000) (Less) Monitoring Fee $150 /Unit/Year ($12,000) $150 /Unit/Year ($12,000) Total Operating Expenses $6,850 /Unit/Year ($548,000) $7,100 /Unit/Year ($568,000)

52.5% of EGI 54.4% of EGI
IV. Net Operating Income (NOI) $496,000 $476,000
V. (Less) Debt Service - Other State Funding Source (3) 0.00% of Loan $0 0.42% of Loan ($34,000) VI. NOI after Debt Service for State Funding Source $496,000 $442,000 (1)
(2) Reflects assessments only. Assumes project will qualify for tax-exempt status. (3) Reflects competitive State funding source, e.g., AHSC, MIP, MHP, IIG, etc.

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Unit Size
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 24 ends

26 June 13, 2022 Item 01
TABLE B-8

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Sources of Funds Total Per Unit Total Per Unit
Supportable Permanent Loan (1) $6,969,000 $87,000 $6,768,000 $85,000 Tax Credit Equity Investment (2) $27,852,000 $348,000 $24,576,000 $307,000 Other State Funding Source (3) $0 $0 $8,000,000 $100,000 Deferred Developer Fee (4) $0 $0 $4,545,000 $57,000
General Partner Equity Contribution (4) $0 $0 $0 $0
Total Sources of Funds $34,821,000 $435,000 $43,889,000 $549,000 II. (Less) Development Costs ($45,469,000) ($568,000) ($56,509,000) ($706,000) III. Residual Land Value ($10,648,000) ($133,000) ($12,620,000) ($158,000)

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 25 ends

27 June 13, 2022 Item 01
TABLE B-8 (CONT'D.)

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
(1) Supportable Permanent Loan
NOI $496,000 $442,000
Interest Rate 5.50% 4.50%
Term (years) 40 35
Debt Coverage Ratio 1.15 1.15
Annual Debt Service $431,304 $384,348
Supportable Permanent Loan $6,969,000 $6,768,000
(2) Low Income Housing Tax Credits (Federal)
Estimate of Eligible Basis:

Total Development Costs $45,469,000 $56,509,000
(Less) Ineligible Costs 3.0% ($1,381,000) 4.4% ($2,499,000) Eligible Basis $44,088,000 $54,010,000
Tax Credit Proceeds:

Maximum Eligible Basis $44,088,000 $54,010,000
(Less) Voluntary Credit Adjustment 40% ($17,635,000) 0.0% $0 Total Requested Unadjusted Basis $26,453,000 $54,010,000 Impacted Bonus Factor 130% $34,389,000 130% $70,213,000 Tax Credit Qualified Units/Applicable Factor 100% $34,389,000 100% $70,213,000 Tax Credit Rate 9.00% $3,095,000 4.00% $2,809,000
Total Tax Credits @ 10 $30,950,000 10 $28,090,000
Limited Partner Share 99.99% $30,947,000 99.99% $28,087,191 Tax Credit Equity Investment @ 90.0% $27,852,000 87.5% $24,576,000 (3) Other State Funding Source
Total Loan $0 $8,000,000
Annual Debt Service 0.00% $0 0.42% $33,600
(4) Estimate of Deferred Developer Fee
Eligible Basis $44,088,000 $54,010,000
(Less) Developer Fee ($2,200,000) ($7,045,000)
Unadjusted Eligible Basis $41,888,000 $46,965,000
Total Developer Fee 5.3% $2,200,000 15.0% $7,045,000
Developer Overhead Fee $2,200,000 $7,045,000
(Less) Deferred Developer Fee 0.0% $0 64.5% ($4,545,000) Upfront Developer Fee $2,200,000 $2,500,000

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 26 ends

28 June 13, 2022 Item 01
100% Affordable with
Low Income Housing Tax Credits
Fairgrounds and 28th Street with Family Housing
Scattered Sites - 1.06 Acres

Page 27 ends

29 June 13, 2022 Item 01
TABLE C-1

PROJECT DESCRIPTION

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 1.0 Acre 1.0 Acre
III. Gross Building Area (GBA)
Net Residential 39,272 SF 81% 39,272 SF 81%
Circulation/Common Area 9,354 SF 19% 9,354 SF 19%
Total GBA 48,626 SF 100% 48,626 SF 100%
IV. Average Unit Size 689 SF 689 SF
V. Stories 3 Stories 3 Stories
VI. Density 57 Units/Acre 57 Units/Acre
VII. Floor Area Ratio (FAR) 1.12 FAR 1.12 FAR
VIII. Total Number of Units 57 Units 57 Units
IX. Unit Mix
One Bedroom 28 Units 48% 28 Units 48%
Two Bedroom 15 Units 26% 15 Units 26%
Three Bedroom 14 Units 26% 14 Units 26%
Total 57 Units 100% 57 Units 100%
X. Affordablility Mix
0 Units 0% 0 Units 0%
56 Units 98% 56 Units 98%
0 Units 0% 0 Units 0%
Manager 1 Unit 2% 1 Unit 2%
Total/Average 57 Units 57 Units
Average Affordability
(excluding Manager units) 50.0% of AMI 50.0% of AMI
XI. Parking
Type Podium Podium
Number of Spaces 69 Spaces 69 Spaces
Parking Ratio 1.2 Spaces/Unit 1.2 Spaces/Unit
Units @ 30% of AMI
Units @ 50% of AMI
Units @ 80% of AMI
FAIRGROUNDS AND 28TH STREET WITH FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4%Tax Credits
Type V Type V
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 28 ends

30 June 13, 2022 Item 01
TABLE C-2

DEVELOPMENT COSTS

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit
Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $1,742,000 $31,000 $40 Per SF Site $1,742,000 $31,000 $40 Per SF Site Parking $2,070,000 $36,000 $30,000 Per Space $2,070,000 $36,000 $30,000 Per Space Shell Construction $14,102,000 $247,000 $290 Per SF GBA $14,102,000 $247,000 $290 Per SF GBA FF&E/Amenities $428,000 $7,500 Allowance $428,000 $7,500 Allowance Subtotal $18,342,000 $322,000 $377 Per SF GBA $18,342,000 $322,000 $377 Per SF GBA Add: Prevailing Wages $0 $0 0.0% of Above Directs $2,751,000 $48,000 15.0% of Above Directs Contingency $917,000 $16,000 5.0% of Directs $1,055,000 $19,000 5.0% of Directs Total Direct Costs $19,259,000 $338,000 $396 Per SF GBA $22,148,000 $389,000 $455 Per SF GBA II. Indirect Costs
Architecture & Engineering $1,541,000 $27,000 8.0% of Directs $1,772,000 $31,000 8.0% of Directs Permits & Fees (3) $4,218,000 $74,000 $87 Per SF GBA $4,218,000 $74,000 $87 Per SF GBA Legal & Accounting $289,000 $5,000 1.5% of Directs $332,000 $6,000 1.5% of Directs Taxes & Insurance $289,000 $5,000 1.5% of Directs $332,000 $6,000 1.5% of Directs Developer Fee $2,200,000 $39,000 11.4% of Directs $4,593,000 $81,000 20.7% of Directs Marketing/Lease-Up $143,000 $2,500 Allowance $143,000 $2,500 Allowance Contingency $434,000 $8,000 5.0% of Indirects $570,000 $10,000 5.0% of Indirects Total Indirect Costs $9,114,000 $160,000 47.3% of Directs $11,960,000 $210,000 54.0% of Directs III. Financing Costs(4)
Loan Fees $459,000 $8,000 2.4% of Directs $1,162,000 $20,000 5.2% of Directs Interest During Constructions $912,000 $16,000 4.7% of Directs $784,000 $14,000 3.5% of Directs Title/Recording/Escrow $29,000 $500 0.2% of Directs $29,000 $500 0.1% of Directs Interest During Lease-Up $507,000 $9,000 2.6% of Directs $436,000 $8,000 2.0% of Directs TCAC/Syndication Fees $182,000 $3,000 0.9% of Directs $173,000 $3,000 0.8% of Directs Operating Lease-Up/Reserves $212,000 $4,000 1.1% of Directs $208,000 $4,000 0.9% of Directs Total Financing Costs $2,301,000 $40,000 11.9% of Directs $2,792,000 $49,000 12.6% of Directs IV. Total Development Costs (5) $30,674,000 $538,000 $631 Per SF GBA $36,900,000 $647,000 $759 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Per City of Del Mar, includes building permit fee, construction license tax, SMIP fee, and school fees. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.

FAIRGROUNDS AND 28TH STREET WITH FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Comments Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 29 ends

31 June 13, 2022 Item 01
TABLE C-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI) # Units $/SF $/Month (1) Annual $/SF $/Month (1) Annual One Bedroom @ 50% AMI 28 579 SF $1.74 $1,007 $338,000 $1.74 $1,007 $338,000 Two Bedroom @ 50% AMI 14 807 SF $1.39 $1,123 $189,000 $1.39 $1,123 $189,000 Two Bedroom @ Manager 1 807 SF $0.00 $0 $0 $0.00 $0 $0
Three Bedroom @ 50% AMI 14 924 SF $1.34 $1,239 $208,000 $1.34 $1,239 $208,000 Total/Average 57 724 SF $1.52 $1,100 $735,000 $1.52 $1,100 $735,000 Add: Other Income $50 /Unit/Month $34,000 $50 /Unit/Month $34,000 Total Gross Scheduled Income (GSI) $769,000 $769,000
II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($38,000) 5.0% of GSI ($38,000) Effective Gross Income (EGI) $731,000 $731,000
III. Operating Expenses
(Less) Operating Expenses $6,000 /Unit/Year ($342,000) $6,000 /Unit/Year ($342,000) (Less) Tenant Services $200 /Unit/Year ($11,000) $500 /Unit/Year ($29,000) (Less) Property Taxes/Assessments(2) $351 /Unit/Year ($20,000) $351 /Unit/Year ($20,000) (Less) Replacement Reserves $250 /Unit/Year ($14,000) $500 /Unit/Year ($29,000) (Less) Monitoring Fee $150 /Unit/Year ($9,000) $150 /Unit/Year ($9,000) Total Operating Expenses $6,947 /Unit/Year ($396,000) $7,526 /Unit/Year ($429,000)

54.2% of EGI 58.7% of EGI
IV. Net Operating Income (NOI) $335,000 $302,000
V. (Less) Debt Service - Other State Funding Source (3) 0.00% of Loan $0 0.42% of Loan ($34,000) VI. NOI after Debt Service for State Funding Source $335,000 $268,000 (1)
(2) Reflects special assessments only. Assumes project will qualify for tax-exempt status. (3) Reflects competitive State funding source, e.g., AHSC, MIP, MHP, IIG, etc.

FAIRGROUNDS 28TH STREET WITH FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Unit Size
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 30 ends

32 June 13, 2022 Item 01
TABLE C-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Sources of Funds Total Per Unit Total Per Unit
Supportable Permanent Loan (1) $4,520,000 $79,000 $4,104,000 $72,000 Tax Credit Equity Investment (2) $18,547,000 $325,000 $16,020,000 $281,000 Other State Funding Source (3) $0 $0 $5,700,000 $100,000 Deferred Developer Fee (4) $0 $0 $2,093,000 $37,000
General Partner Equity Contribution (4) $0 $0 $0 $0
Total Sources of Funds $23,067,000 $405,000 $27,917,000 $490,000 II. (Less) Development Costs ($30,674,000) ($538,000) ($36,900,000) ($647,000) III. Residual Land Value ($7,607,000) ($133,000) ($8,983,000) ($158,000) FAIRGROUNDS AND 28TH STREET WITH FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 31 ends

33 June 13, 2022 Item 01
TABLE C-4 (CONT'D.)

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
(1) Supportable Permanent Loan
NOI $335,000 $268,000
Interest Rate 5.50% 4.50%
Term (years) 35 35
Debt Coverage Ratio 1.15 1.15
Annual Debt Service $291,304 $233,043
Supportable Permanent Loan $4,520,000 $4,104,000
(2) Low Income Housing Tax Credits (Federal)
Estimate of Eligible Basis:

Total Development Costs $30,674,000 $36,900,000
(Less) Ineligible Costs 4% ($1,321,000) 5% ($1,686,000) Eligible Basis $29,353,000 $35,214,000
Tax Credit Proceeds:

Maximum Eligible Basis $29,353,000 $35,214,000
(Less) Voluntary Credit Adjustment 40.0% ($11,741,000) 0.0% $0 Total Requested Unadjusted Basis $17,612,000 $35,214,000 Impacted Bonus Factor 130% $22,896,000 130% $45,778,200 Tax Credit Qualified Units/Applicable Factor 100% 22896000 100% $45,778,200 Tax Credit Rate 9.00% $2,061,000 4.00% $1,831,000
Total Tax Credits @ 10 20610000 10 $18,310,000
Limited Partner Share 99.99% $20,608,000 99.99% $18,308,000 Tax Credit Equity Investment @ 90.0% $18,547,000 87.5% $16,020,000 (3) Other State Funding Source
Total Loan $0 $5,700,000
Annual Debt Service 0.00% $0 0.42% $100,000
(4) Estimate of Deferred Developer Fee
Eligible Basis $29,353,000 $35,214,000
(Less) Developer Fee $2,200,000 ($4,593,000)
Unadjusted Eligible Basis $31,553,000 $30,621,000
Total Developer Fee 7.0% $2,200,000 15.0% $4,593,000
Developer Overhead Fee $2,200,000 $4,593,000
(Less) Deferred Developer Fee $0 45.6% ($2,093,000)
Upfront Developer Fee $2,200,000 $2,500,000
FAIRGROUNDS WITH 28TH STREET FAMILY HOUSING -

SCATTERED SITES
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 32 ends

34 June 13, 2022 Item 01
100% Affordable with
Low Income Housing Tax Credits
Fairgrounds and 28th Street with Family Housing
Scattered Sites - 1.56 Acres

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35 June 13, 2022 Item 01
TABLE D-1

PROJECT DESCRIPTION

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 1.5 Acre 1.5 Acre
III. Gross Building Area (GBA)
Net Residential 59,628 SF 78% 59,628 SF 78%
Circulation/Common Area 16,991 SF 22% 16,991 SF 22%
Total GBA 76,619 SF 100% 76,619 SF 100%
IV. Average Unit Size 718 SF 718 SF
V. Stories 3 Stories 3 Stories
VI. Density 55 Units/Acre 55 Units/Acre
VII. Floor Area Ratio (FAR) 1.17 FAR 1.17 FAR
VIII. Total Number of Units 83 Units 83 Units
IX. Unit Mix
One Bedroom 36 Units 43% 36 Units 43%
Two Bedroom 23 Units 28% 23 Units 28%
Three Bedroom 24 Units 29% 24 Units 29%
Total 83 Units 100% 83 Units 100%
X. Affordability Mix
0 Units 0% 0 Units 0%
82 Units 99% 82 Units 99%
0 Units 0% 0 Units 0%
Manager 1 Unit 1% 1 Unit 1%
Total/Average 83 Units 100% 83 Units 100%
Average Affordability
(excluding Manager units) 50.0% of AMI 50.0% of AMI
XI. Parking
Type Podium Podium
Number of Spaces 124 Spaces 124 Spaces
Parking Ratio 1.5 Spaces/Unit 1.5 Spaces/Unit
Units @ 30% of AMI
Units @ 50% of AMI
Units @ 80% of AMI
FAIRGROUNDS AND 28TH STREET WITH FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4%Tax Credits
Type V Type V
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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36 June 13, 2022 Item 01
TABLE D-2

DEVELOPMENT COSTS

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit
Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $2,614,000 $31,000 $40 Per SF Site $2,614,000 $31,000 $40 Per SF Site Parking $3,720,000 $45,000 $30,000 Per Space $3,720,000 $45,000 $30,000 Per Space Shell Construction $22,220,000 $268,000 $290 Per SF GBA $22,220,000 $268,000 $290 Per SF GBA FF&E/Amenities $623,000 $7,500 Allowance $623,000 $7,500 Allowance Subtotal $29,177,000 $352,000 $381 Per SF GBA $29,177,000 $352,000 $381 Per SF GBA Add: Prevailing Wages $0 $0 0.0% of Above Directs $4,377,000 $53,000 15.0% of Above Directs Contingency $1,459,000 $18,000 5.0% of Directs $1,678,000 $20,000 5.0% of Directs Total Direct Costs $30,636,000 $369,000 $400 Per SF GBA $35,232,000 $424,000 $460 Per SF GBA II. Indirect Costs
Architecture & Engineering $2,451,000 $30,000 8.0% of Directs $2,819,000 $34,000 8.0% of Directs Permits & Fees (3) $6,640,000 $80,000 $87 Per SF GBA $6,640,000 $80,000 $87 Per SF GBA Legal & Accounting $460,000 $6,000 1.5% of Directs $528,000 $6,000 1.5% of Directs Taxes & Insurance $460,000 $6,000 1.5% of Directs $528,000 $6,000 1.5% of Directs Developer Fee $2,200,000 $27,000 7.2% of Directs $7,294,000 $88,000 20.7% of Directs Marketing/Lease-Up $208,000 $2,500 Allowance $208,000 $2,500 Allowance Contingency $621,000 $7,000 5.0% of Indirects $901,000 $11,000 5.0% of Indirects Total Indirect Costs $13,040,000 $157,000 42.6% of Directs $18,918,000 $228,000 53.7% of Directs III. Financing Costs(4)
Loan Fees $697,000 $8,000 2.3% of Directs $1,845,000 $22,000 5.2% of Directs Interest During Constructions $1,384,000 $17,000 4.5% of Directs $1,246,000 $15,000 3.5% of Directs Title/Recording/Escrow $42,000 $500 0.1% of Directs $42,000 $500 0.1% of Directs Interest During Lease-Up $769,000 $9,000 2.5% of Directs $692,000 $8,000 2.0% of Directs TCAC/Syndication Fees $239,000 $3,000 0.8% of Directs $227,000 $3,000 0.6% of Directs Operating Lease-Up/Reserves $311,000 $4,000 1.0% of Directs $309,000 $4,000 0.9% of Directs Total Financing Costs $3,442,000 $41,000 11.2% of Directs $4,361,000 $53,000 12.4% of Directs IV. Total Development Costs (5) $47,118,000 $568,000 $615 Per SF GBA $58,511,000 $705,000 $764 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Per City of Del Mar, includes building permit fee, construction license tax, SMIP fee, and school fees. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.

FAIRGROUNDS 28TH STREET WITH FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Comments Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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37 June 13, 2022 Item 01
TABLE D-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI) # Units $/SF $/Month (1) Annual $/SF $/Month (1) Annual One Bedroom @ 50% AMI 36 579 SF $1.74 $1,007 $435,000 $1.74 $1,007 $435,000 Two Bedroom @ 50% AMI 22 807 SF $1.39 $1,123 $296,000 $1.39 $1,123 $296,000 Two Bedroom @ Manager 1 807 SF $0.00 $0 $0 $0.00 $0 $0
Three Bedroom @ 50% AMI 24 924 SF $1.34 $1,239 $357,000 $0.00 $1,239 $357,000 Total/Average 83 742 SF $1.48 $1,100 $1,088,000 $1.48 $1,100 $1,088,000 Add: Other Income $50 /Unit/Month $50,000 $50 /Unit/Month $50,000 Total Gross Scheduled Income (GSI) $1,138,000 $1,138,000 II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($57,000) 5.0% of GSI ($57,000) Effective Gross Income (EGI) $1,081,000 $1,081,000
III. Operating Expenses
(Less) Operating Expenses $6,000 /Unit/Year ($498,000) $6,000 /Unit/Year ($498,000) (Less) Tenant Services $200 /Unit/Year ($17,000) $500 /Unit/Year ($42,000) (Less) Property Taxes/Assessments(2) $241 /Unit/Year ($20,000) $241 /Unit/Year ($20,000) (Less) Replacement Reserves $250 /Unit/Year ($21,000) $500 /Unit/Year ($42,000) (Less) Monitoring Fee $150 /Unit/Year ($12,000) $150 /Unit/Year ($12,000) Total Operating Expenses $6,843 /Unit/Year ($568,000) $7,398 /Unit/Year ($614,000)

52.5% of EGI 56.8% of EGI
IV. Net Operating Income (NOI) $513,000 $467,000
V. (Less) Debt Service - Other State Funding Source (3) 0.00% of Loan $0 0.42% of Loan ($34,000) VI. NOI after Debt Service for State Funding Source $513,000 $433,000 (1)
(2) Reflects special assessments only. Assumes project will qualify for tax-exempt status. (3) Reflects competitive State funding source, e.g., AHSC, MIP, MHP, IIG, etc.

FAIRGROUNDS AND 28TH STREET WITH FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Unit Size
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 36 ends

38 June 13, 2022 Item 01
TABLE D-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Sources of Funds Total Per Unit Total Per Unit
Supportable Permanent Loan (1) $6,922,000 $83,000 $6,630,000 $80,000 Tax Credit Equity Investment (2) $28,050,000 $338,000 $25,442,000 $307,000 Other State Funding Source (3) $0 $0 $8,300,000 $100,000 Deferred Developer Fee (4) $0 $0 $4,794,000 $58,000
General Partner Equity Contribution (4) $0 $0 $0 $0
Total Sources of Funds $34,972,000 $421,000 $45,166,000 $544,000 II. (Less) Development Costs ($47,118,000) ($568,000) ($58,511,000) ($705,000) III. Residual Land Value ($12,146,000) ($146,000) ($13,345,000) ($161,000) FAIRGROUNDS AND 28TH STREET WITH FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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39 June 13, 2022 Item 01
TABLE D-4 (CONT'D.)

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
(1) Supportable Permanent Loan
NOI $513,000 $433,000
Interest Rate 5.50% 4.50%
Term (years) 35 35.0
Debt Coverage Ratio 1.15 1.15
Annual Debt Service $446,087 $376,522
Supportable Permanent Loan $6,922,000 $6,630,000
(2) Low Income Housing Tax Credits (Federal)
Estimate of Eligible Basis:

Total Development Costs $47,118,000 $58,511,000
(Less) Ineligible Costs 3% ($1,455,000) 4% ($2,589,000) Eligible Basis $45,663,000 $55,922,000
Tax Credit Proceeds:

Maximum Eligible Basis $45,663,000 $55,922,000
(Less) Voluntary Credit Adjustment 40.0% ($18,265,000) 0.0% $0 Total Requested Unadjusted Basis $27,398,000 $55,922,000 Impacted Bonus Factor 130% $35,617,000 130% $72,698,600 Tax Credit Qualified Units/Applicable Factor 100% 35617000 100% $72,698,600 Tax Credit Rate 9.00% $3,206,000 4.00% $2,908,000
Total Tax Credits @ 10 $32,060,000 10 $29,080,000
Limited Partner Share 99.99% $32,057,000 99.99% $29,077,092 Tax Credit Equity Investment @ 87.5% $28,050,000 87.5% $25,442,000 (3) Other State Funding Source
Total Loan $0 $8,300,000
Annual Debt Service 0.00% $0 0.42% $34,000
(4) Estimate of Deferred Developer Fee
Eligible Basis $45,663,000 $55,922,000
(Less) Developer Fee ($2,200,000) ($7,294,000)
Unadjusted Eligible Basis $43,463,000 $48,628,000
Total Developer Fee 5.1% $2,200,000 15.0% $7,294,000
Developer Overhead Fee $2,200,000 $7,294,000
(Less) Deferred Developer Fee 0.00% $0 65.7% ($4,794,000) Upfront Developer Fee $2,200,000 $2,500,000
FAIRGROUNDS AND 28TH STREET WITH FAMILY HOUSING -

SCATTERED SITES
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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40 June 13, 2022 Item 01

FAIRGROUNDS

WITH SENIOR HOUSING

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41 June 13, 2022 Item 01
TABLE E-1

PROJECT DESCRIPTION

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 1.5 Acre 1.5 Acre 1.5 Acre 1.5 Acre 1.5 Acre 1.5 Acre 1.5 Acre III. Gross Building Area (GBA)
Net Residential 41,648 SF 78% 41,648 SF 78% 41,648 SF 78% 41,648 SF 78% 41,648 SF 78% 41,648 SF 78% 41,648 SF 78% Circulation/Common Area 11,749 SF 22% 11,749 SF 22% 11,749 SF 22% 11,749 SF 22% 11,749 SF 22% 11,749 SF 22% 11,749 SF 22% Total GBA 53,397 SF 100% 53,397 SF 100% 53,397 SF 100% 53,397 SF 100% 53,397 SF 100% 53,397 SF 100% 53,397 SF 100% IV. Average Unit Size 534 SF 534 SF 534 SF 534 SF 534 SF 534 SF 534 SF V. Stories 3 Stories 3 Stories 3 Stories 3 Stories 3 Stories 3 Stories 3 Stories VI. Density 52 Units/Acre 52 Units/Acre 52 Units/Acre 52 Units/Acre 52 Units/Acre 52 Units/Acre 52 Units/Acre VII. Floor Area Ratio (FAR) 0.82 FAR 0.82 FAR 0.82 FAR 0.82 FAR 0.82 FAR 0.82 FAR 0.82 FAR VIII. Total Number of Units 78 Units 78 Units 78 Units 78 Units 78 Units 78 Units 78 Units IX. Unit Mix
One Bedroom 78 Units 100% 78 Units 100% 78 Units 100% 78 Units 100% 78 Units 100% 78 Units 100% 78 Units 100% Two Bedroom --- Units 0% --- Units 0% --- Units 0% --- Units 0% --- Units 0% --- Units 0% --- Units 0% Three Bedroom --- Units 0% --- Units 0% --- Units 0% --- Units 0% --- Units 0% --- Units 0% --- Units 0% Total 78 Units 100% 78 Units 100% 78 Units 100% 78 Units 100% 78 Units 100% 78 Units 100% 78 Units 100% X. Affordability MiX
Market-Rate Units 78 Units 100% of Total 62 Units 80% of Total 62 Units 80% of Total 62 Units 80% of Total 1 Unit (1) 1% of Total 1 Unit (1) 1% of Total 1 Unit (1) 1% of Total Affordable Units
30% AMI 0 Units 0% 16 Units 20% 0 Units 0% 0 Units 0% 77 Units 99% 0 Units 0% 0 Units 0% 50% AMI 0 Units 0% 0 Units 0% 16 Units 20% 0 Units 0% 0 Units 0% 77 Units 99% 0 Units 0% 80% AMI 0 Units 0% 0 Units 0% 0 Units 0% 16 Units 20% 0 Units 0% 0 Units 0% 77 Units 99% Total Affordbale Units 0 Units 0% of Total 16 Units 20% of Total 16 Units 20% of Total 16 Units 20% of Total 77 Units 99% of Total 77 Units 99% of Total 77 Units 99% of Total XI. Parking
Type Podium Podium Podium Podium Podium Podium Podium
Number of Spaces 78 Spaces 78 Spaces 78 Spaces 78 Spaces 78 Spaces 78 Spaces 78 Spaces Parking Ratio 1.0 Spaces/Unit 1.0 Spaces/Unit 1.0 Spaces/Unit 1.0 Spaces/Unit 1.0 Spaces/Unit 1.0 Spaces/Unit 1.0 Spaces/Unit (1) Reflects manager's unit.

Type V Type V Type V Type V Type V Type V Type V

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
All Market-Rate Mixed-Income without Tax Credits All Affordable without Tax Credits 100% @ Market-Rate 80% @ Market-Rate
20% @ 30% AMI
80% @ Market-Rate
20% @ 50% AMI
80% @ Market-Rate
20% @ 80% AMI
100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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42 June 13, 2022 Item 01
TABLE E-2

DEVELOPMENT COSTS

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit Total Per Unit Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $2,614,000 $34,000 $40 Per SF Site $2,614,000 $34,000 $40 Per SF Site $2,614,000 $34,000 $40 Per SF Site Parking $2,340,000 $30,000 $30,000 Per Space $2,340,000 $30,000 $30,000 Per Space $2,340,000 $30,000 $30,000 Per Space Shell Construction $15,218,000 $195,100 $285 Per SF GBA $15,218,000 $195,000 $285 Per SF GBA $15,218,000 $195,000 $285 Per SF GBA FF&E/Amenities $780,000 $10,000 Allowance $780,000 $10,000 Allowance $780,000 $10,000 Allowance Contingency $1,048,000 $13,000 5.0% of Directs $1,048,000 $13,000 5.0% of Directs $1,048,000 $13,000 5.0% of Directs Total Direct Costs $22,000,000 $282,000 $412 Per SF GBA $22,000,000 $282,000 $412 Per SF GBA $22,000,000 $282,000 $412 Per SF GBA II. Indirect Costs
Architecture & Engineering $1,760,000 $23,000 8.0% of Directs $1,760,000 $23,000 8.0% of Directs $1,760,000 $23,000 8.0% of Directs Permits & Fees (3) $4,812,600 $61,700 $90 Per SF GBA $4,758,000 $61,000 $89 Per SF GBA $4,602,000 $59,000 $86 Per SF GBA Legal & Accounting $330,000 $4,000 1.5% of Directs $330,000 $4,000 1.5% of Directs $330,000 $4,000 1.5% of Directs Taxes & Insurance $330,000 $4,000 1.5% of Directs $330,000 $4,000 1.5% of Directs $330,000 $4,000 1.5% of Directs Developer Fee $880,000 $11,000 4.0% of Directs $880,000 $11,000 4.0% of Directs $880,000 $11,000 4.0% of Directs Marketing/Lease-Up $195,000 $2,500 Allowance $195,000 $2,500 Allowance $195,000 $2,500 Allowance Contingency $415,000 $5,000 5.0% of Indirects $413,000 $5,000 5.0% of Indirects $405,000 $5,000 5.0% of Indirects Total Indirect Costs $8,722,600 $112,000 39.6% of Directs $8,666,000 $111,000 39.4% of Directs $8,502,000 $109,000 38.6% of Directs III. Financing Costs(4) $2,200,000 $28,000 10.0% of Directs $2,200,000 $28,000 10.0% of Directs $2,200,000 $28,000 10.0% of Directs IV. Total Development Costs (5) $32,922,600 $422,000 $617 Per SF GBA $32,866,000 $421,000 $616 Per SF GBA $32,702,000 $419,000 $612 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Per the City of Del Mar, includes building permit fee, construction license tax, RTCIP, SMIP fee, and school district fees. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
All Market-Rate Mixed-Income without Tax Credits All Affordable without Tax Credits Comments Comments Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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43 June 13, 2022 Item 01
TABLE E-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI)
# Units $/SF $/Month Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual A. Market-Rate
One Bedroom 534 SF 78 $4.85 $2,590 $2,424,000 62 $4.85 $2,590 $1,927,000 62 $4.85 $2,590 $1,927,000 62 $4.85 $2,590 $1,927,000 Two Bedroom -- SF -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Three Bedroom -- SF -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Subtotal/Average 534 SF 78 $4.85 $2,600 $2,424,000 62 $4.85 $2,600 $1,927,000 62 $4.85 $2,600 $1,927,000 62 $4.85 $2,600 $1,927,000 B. Affordable
One Bedroom @ 30% AMI 534 SF -- -- -- -- 16 $1.09 $580 $111,000 -- -- -- -- -- -- -- -- One Bedroom @ 50% AMI 534 SF -- -- -- -- -- -- -- -- 16 $1.89 $1,007 $193,000 -- -- -- -- One Bedroom @ 80% AMI 534 SF -- -- -- -- -- -- -- -- -- -- -- -- 16 $3.09 $1,649 $317,000 Two Bedroom @ 30% AMI -- SF -- -- -- -- 0 $0.00 $642 $0 -- -- -- -- -- -- -- -- Two Bedroom @ 50% AMI -- SF -- -- -- -- -- -- -- -- 0 $0.00 $1,123 $0 -- -- -- -- Two Bedroom @ 80% AMI -- SF -- -- -- -- -- -- -- -- -- -- -- -- 0 $0.00 $1,844 $0 Three Bedroom @ 30% AMI -- SF -- -- -- -- 0 $0.00 $705 $0 -- -- -- -- -- -- -- -- Three Bedroom @ 50% AMI -- SF -- -- -- -- -- -- -- -- 0 $0.00 $1,239 $0 -- -- -- -- Three Bedroom @ 80% AMI -- SF -- -- -- -- -- -- -- -- -- -- -- -- 0 $0.00 $2,041 $0 Subtotal/Average 534 SF -- -- -- -- 16 $1.09 $578 $111,000 16 $1.89 $1,005 $193,000 16 $3.09 $1,651 $317,000 C. Total/Average 534 SF 78 $4.85 $2,600 $2,424,000 78 $4.08 $2,177 $2,038,000 78 $4.24 $2,265 $2,120,000 78 $4.49 $2,397 $2,244,000 Add: Other Income $100 /Unit/Month $94,000 $75 /Unit/Month $70,000 $75 /Unit/Month $70,000 $75 /Unit/Month $70,000 D. Total Gross Scheduled Income (GSI) $2,518,000 $2,108,000 $2,190,000 $2,314,000 II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($126,000) 5.0% of GSI ($105,000) 5.0% of GSI ($110,000) 5.0% of GSI ($116,000) Effective Gross Income (EGI) $2,392,000 $2,003,000 $2,080,000 $2,198,000 III. Operating Expenses
(Less) Operating Expenses $5,750 /Unit/Year ($449,000) $5,750 /Unit/Year ($448,500) $5,750 /Unit/Year ($448,500) $5,750 /Unit/Year ($448,500) (Less) Property Taxes $5,590 /Unit/Year (2) ($436,000) $4,462 /Unit/Year (2) ($348,000) $4,679 /Unit/Year (2) ($366,000) $5,026 /Unit/Year (2) ($392,000) (Less) Replacement Reserves $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) Total Operating Expenses $11,603 /Unit/Year ($905,000) $10,468 /Unit/Year ($816,500) $10,686 /Unit/Year ($834,500) $11,032 /Unit/Year ($860,500) 38% of EGI 41% of EGI 40% of EGI 39% of EGI
IV. Net Operating Income (NOI) $1,487,000 $1,186,500 $1,245,500 $1,337,500 (1) Based on State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Based on capitalized income approach; assumes a 1.10% tax rate and 3.75% cap rate. (3) Assumes project will qualify for tax-exempt status.

Unit Size

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
All Market-Rate Mixed Income without Tax Credits
100% @ Market-Rate 80% Market-Rate
20% @ 30% AMI
80% Market-Rate
20% @ 50% AMI
80% Market-Rate
20% @ 80% AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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44 June 13, 2022 Item 01
TABLE E-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI)
A. Market-Rate
One Bedroom 534 SF
Two Bedroom -- SF
Three Bedroom -- SF
Subtotal/Average 534 SF
B. Affordable
One Bedroom @ 30% AMI 534 SF
One Bedroom @ 50% AMI 534 SF
One Bedroom @ 80% AMI 534 SF
Two Bedroom @ 30% AMI -- SF
Two Bedroom @ 50% AMI -- SF
Two Bedroom @ 80% AMI -- SF
Three Bedroom @ 30% AMI -- SF
Three Bedroom @ 50% AMI -- SF
Three Bedroom @ 80% AMI -- SF
Subtotal/Average 534 SF
C. Total/Average 534 SF
Add: Other Income
D. Total Gross Scheduled Income (GSI)
II. Effective Gross Income
(Less) Vacancy
Effective Gross Income (EGI)
III. Operating Expenses
(Less) Operating Expenses
(Less) Property Taxes
(Less) Replacement Reserves
Total Operating Expenses
IV. Net Operating Income (NOI)
(1) Based on State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Based on capitalized income approach; assumes a 1.10% tax rate and 3.75% cap rate. (3) Assumes project will qualify for tax-exempt status.

Unit Size # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual -- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- -- -- --
78 $1.09 $580 $543,000 -- -- -- -- -- -- -- --
-- -- -- -- 78 $1.89 $1,007 $943,000 -- -- -- --
-- -- -- -- -- -- -- -- 78 $3.09 $1,649 $1,543,000
0 $0.00 $642 $0 -- -- -- -- -- -- -- --
-- -- -- -- 0 $0.00 $1,123 $0 -- -- -- --
-- -- -- -- -- -- -- -- 0 $0.00 $1,844 $0
0 $0.00 $705 $0 -- -- -- -- -- -- -- --
-- -- -- -- 0 $0.00 $1,239 $0 -- -- -- --
-- -- -- -- -- -- -- -- 0 $0.00 $2,041 $0
78 $1.09 $580 $543,000 78 $1.89 $1,007 $943,000 78 $3.09 $1,649 $1,543,000 78 $1.09 $580 $543,000 78 $1.89 $1,007 $943,000 78 $3.09 $1,649 $1,543,000 $50 /Unit/Month $47,000 $50 /Unit/Month $47,000 $75 /Unit/Month $70,000 $590,000 $990,000 $1,613,000

5.0% of GSI ($30,000) 5.0% of GSI ($50,000) 5.0% of GSI ($81,000) $560,000 $940,000 $1,532,000
$5,750 /Unit/Year ($448,500) $5,750 /Unit/Year ($448,500) $5,750 /Unit/Year ($448,500) $0 /Unit/Year (3) $0 $0 /Unit/Year (3) $0 $0 /Unit/Year (3) $0 $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) $250 /Unit/Year ($20,000) $6,006 /Unit/Year ($468,500) $6,006 /Unit/Year ($468,500) $6,006 /Unit/Year ($468,500) 84% of EGI 50% of EGI 31% of EGI
$91,500 $471,500 $1,063,500
100% @ 50% AMI 100% @ 80% AMI

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
All Affordable without Tax Credits
100% @ 30% AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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45 June 13, 2022 Item 01
TABLE E-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Capitalized Value Upon Completion
Stabilized Net Operating Income $1,487,000 $1,186,500 $1,245,500 $1,337,500 Capitalization Rate @ 3.75% 3.75% 3.75% 3.75%
Capitalized Value Upon Completion $508,000 /Unit $39,653,000 $406,000 /Unit $31,640,000 $426,000 /Unit $33,213,000 $457,000 /Unit $35,667,000 (Less) Cost of Sale 2.0% of Value ($793,000) 2.0% of Value ($633,000) 2.0% of Value ($664,000) 2.0% of Value ($713,000) (Less) Target Developer Profit 10.0% of Value ($3,965,000) 10.0% of Value ($3,164,000) 10.0% of Value ($3,321,000) 10.0% of Value ($3,567,000) II. Net Sales Proceeds $34,895,000 $27,843,000 $29,228,000 $31,387,000 (Less) Development Costs ($32,922,600) ($32,866,000) ($32,866,000) ($32,866,000) III. Residual Land Value $1,972,000 ($5,023,000) ($3,638,000) ($1,479,000) Per Unit $25,000 ($64,000) ($47,000) ($19,000)
Per SF Site $30 ($77) ($56) ($23)
All Market-Rate Mixed-Income without Tax Credits
100% Market-Rate 80% Market-Rate
20% @ 30% AMI
80% Market-Rate
20% @ 50% AMI
80% Market-Rate
20% @ 80% AMI

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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46 June 13, 2022 Item 01
TABLE E-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

4.00% 4.00% 4.00%
$29,000 /Unit $2,288,000 $151,000 /Unit $11,788,000 $341,000 /Unit $26,588,000

2.0% of Value ($46,000) 2.0% of Value ($236,000) 2.0% of Value ($532,000)

10.0% of Value ($229,000) 10.0% of Value ($1,179,000) 10.0% of Value ($2,659,000) $2,013,000 $10,373,000 $23,397,000
($32,702,000) ($32,702,000) ($32,702,000)
($30,689,000) ($22,329,000) ($9,305,000)
($393,000) ($286,000) ($119,000)
($470) ($342) ($142)
100% @ 50% AMI 100% @ 80% AMI
100% Affordable without Tax Credits
100% @ 30% AMI

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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47 June 13, 2022 Item 01
100% Affordable with
Low Income Housing Tax Credits
Fairgrounds with Senior Housing
Standalone Project - 1.5 Acres

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48 June 13, 2022 Item 01
TABLE E-5

PROJECT DESCRIPTION

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 1.5 Acre 1.5 Acre
III. Gross Building Area (GBA)
Net Residential 41,648 SF 81% 41,648 SF 78%
Circulation/Common Area 11,749 SF 19% 11,749 SF 22%
Total GBA 53,397 SF 100% 53,397 SF 100%
IV. Average Unit Size 534 SF 534 SF
V. Stories 3 Stories 3 Stories
VI. Density 52 Units/Acre 52.0 Units/Acre
VII. Floor Area Ratio (FAR) 0.82 FAR 0.8 FAR
VIII. Total Number of Units 78 Units 78 Units
IX. Unit Mix
One Bedroom 78 Units 100% 78 Units 0%
Two Bedroom 0 Units 0% 0 Units 0%
Three Bedroom 0 Units 0% 0 Units 0%
Total 78 Units 100% 78 Units 0%
X. Affordability Mix
0 Units 0% 0 Units 0%
77 Units 99% 77 Units 99%
0 Units 0% 0 Units 0%
Manager 1 Unit 1% 1 Unit 1%
Total/Average 78 Units 100% 78 Units 100%
Average Affordability
(excluding Manager units)
X. Parking
Type Podium Podium
Number of Spaces 78 Spaces 78 Spaces
Parking Ratio 1.0 Spaces/Unit 1.0 Spaces/Unit
Units @ 30% of AMI
Units @ 50% of AMI
Units @ 80% of AMI

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4%Tax Credits
Type V Type V
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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49 June 13, 2022 Item 01
TABLE E-6

DEVELOPMENT COSTS

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit
Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $2,614,000 $34,000 $40 Per SF Site $2,614,000 $34,000 $40 Per SF Site Parking $2,340,000 $30,000 $30,000 Per Space $2,340,000 $30,000 $30,000 Per Space Shell Construction $16,019,000 $205,000 $300 Per SF GBA $16,019,000 $205,000 $300 Per SF GBA FF&E/Amenities $585,000 $7,500 Allowance $585,000 $7,500 Allowance Subtotal $21,558,000 $276,000 $404 Per SF GBA $21,558,000 $276,000 $404 Per SF GBA Add: Prevailing Wages $0 $0 0.0% of Above Directs $3,234,000 $41,000 15% of Above Directs Contingency $1,078,000 $14,000 5.0% of Directs $1,240,000 $16,000 5.0% of Directs Total Direct Costs $22,636,000 $290,000 $424 Per SF GBA $26,032,000 $334,000 $488 Per SF GBA II. Indirect Costs
Architecture & Engineering $1,811,000 $23,000 8.0% of Directs $2,083,000 $27,000 8.0% of Directs Permits & Fees (3) $4,602,000 $59,000 $86 Per SF GBA $4,602,000 $59,000 $86 Per SF GBA Legal & Accounting $340,000 $4,000 1.5% of Directs $390,000 $5,000 1.5% of Directs Taxes & Insurance $340,000 $4,000 1.5% of Directs $390,000 $5,000 1.5% of Directs Developer Fee $2,200,000 $28,000 9.7% of Directs $5,341,000 $68,000 20.5% of Directs Marketing/Lease-Up $195,000 $2,500 Allowance $195,000 $2,500 Allowance Contingency $474,000 $6,000 5.0% of Indirects $650,000 $8,000 5.0% of Indirects Total Indirect Costs $9,962,000 $128,000 44.0% of Directs $13,651,000 $175,000 52.4% of Directs III. Financing Costs(4)
Loan Fees $536,000 $7,000 2.4% of Directs $1,351,000 $17,000 5.2% of Directs Interest During Constructions $1,051,000 $13,000 4.6% of Directs $912,000 $12,000 3.5% of Directs Title/Recording/Escrow $39,000 $500 0.2% of Directs $39,000 $500 0.1% of Directs Interest During Lease-Up $584,000 $7,000 2.6% of Directs $507,000 $7,000 1.9% of Directs TCAC/Syndication Fees $205,000 $3,000 0.9% of Directs $194,000 $2,000 0.7% of Directs Operating Lease-Up/Reserves $270,000 $3,000 1.2% of Directs $269,000 $3,000 1.0% of Directs Total Financing Costs $2,685,000 $34,000 11.9% of Directs $3,272,000 $42,000 12.6% of Directs IV. Total Development Costs (5) $35,283,000 $452,000 $661 Per SF GBA $42,955,000 $551,000 $804 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Per City of Del Mar, includes building permit fee, construction license tax, SMIP fee, and school fees. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Comments Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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50 June 13, 2022 Item 01
TABLE E-7

NET OPERATING INCOME

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI) # Units $/SF $/Month (1) Annual $/SF $/Month (1) Annual One Bedroom @ 50% AMI 77 534 SF $1.89 $1,007 $930,000 $1.89 $1,007 $930,000 One Bedroom @ Manager 1 534 SF $0.00 $0 $0 $0.00 $0 $0
Two Bedroom @ 50% AMI 0 -- SF $0.00 $0 $0 $0.00 $0 $0
Three Bedroom @ 50% AMI 0 -- SF $0.00 $0 $0 $0.00 $0 $0 Total/Average 78 534 SF $1.87 $1,000 $930,000 $1.87 $1,000 $930,000 Add: Other Income $50 /Unit/Month $47,000 $50 /Unit/Month $47,000 Total Gross Scheduled Income (GSI) $977,000 $977,000
II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($49,000) 5.0% of GSI ($49,000) Effective Gross Income (EGI) $928,000 $928,000
III. Operating Expenses
(Less) Operating Expenses $5,750 /Unit/Year ($449,000) $5,750 /Unit/Year ($449,000) (Less) Tenant Services $200 /Unit/Year ($16,000) $500 /Unit/Year ($39,000) (Less) Property Taxes/Assessments(2) $256 /Unit/Year ($20,000) $256 /Unit/Year ($20,000) (Less) Replacement Reserves $250 /Unit/Year ($20,000) $500 /Unit/Year ($39,000) (Less) Monitoring Fee $150 /Unit/Year ($12,000) $150 /Unit/Year ($12,000) Total Operating Expenses $6,628 /Unit/Year ($517,000) $7,167 /Unit/Year ($559,000)

55.7% of EGI 60.2% of EGI
IV. Net Operating Income (NOI) $411,000 $369,000
V. (Less) Debt Service - Other State Funding Source (3) 0.00% of Loan $0 0.42% of Loan ($34,000) VI. NOI after Debt Service for State Funding Source $411,000 $335,000 (1)
(2) Reflects special assessments only. Assumes project will qualify for tax-exempt status. (3) Reflects competitive State funding source, e.g., AHSC, MIP, MHP, IIG, etc.

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Unit Size
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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51 June 13, 2022 Item 01
TABLE E-8

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Sources of Funds Total Per Unit Total Per Unit
Supportable Permanent Loan (1) $5,546,000 $71,000 $5,129,000 $66,000 Tax Credit Equity Investment (2) $20,928,000 $268,000 $18,627,000 $239,000 Other State Funding Source (3) $0 $0 $7,800,000 $100,000 Deferred Developer Fee (4) $0 $0 $2,841,000 $36,000
General Partner Equity Contribution (4) $0 $0 $0 $0
Total Sources of Funds $26,474,000 $339,000 $34,397,000 $441,000 II. (Less) Development Costs ($35,283,000) ($452,000) ($42,955,000) ($551,000) III. Residual Land Value ($8,809,000) ($113,000) ($8,558,000) ($110,000)

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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52 June 13, 2022 Item 01
TABLE E-8 (CONT'D.)

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
(1) Supportable Permanent Loan
NOI $411,000 $335,000
Interest Rate 5.50% 4.50%
Term (years) 35 35
Debt Coverage Ratio 1.15 1.15
Annual Debt Service $357,391 $291,304
Supportable Permanent Loan $5,546,000 $5,129,000
(2) Low Income Housing Tax Credits (Federal)
Estimate of Eligible Basis:

Total Development Costs $35,283,000 $42,955,000
(Less) Ineligible Costs 3.4% ($1,206,000) 4.7% ($2,009,000) Eligible Basis $34,077,000 $40,946,000
Tax Credit Proceeds:

Maximum Eligible Basis $34,077,000 $40,946,000
(Less) Voluntary Credit Adjustment 40.0% ($13,631,000) 0.0% $0 Total Requested Unadjusted Basis $20,446,000 $40,946,000 Impacted Bonus Factor 130% $26,580,000 130% $53,230,000 Tax Credit Qualified Units/Applicable Factor 100% $26,580,000 100% $53,230,000 Tax Credit Rate 9.00% $2,392,000 4.00% $2,129,000
Total Tax Credits @ 10 $23,920,000 10 $21,290,000
Limited Partner Share 99.99% $23,918,000 99.99% $21,288,000 Tax Credit Equity Investment @ 87.5% $20,928,000 87.5% $18,627,000 (3) Other State Funding Source
Total Loan $0 $7,800,000
Annual Debt Service 0.00% $0 0.42% $34,000
(4) Estimate of Deferred Developer Fee
Eligible Basis $34,077,000 $40,946,000
(Less) Developer Fee ($2,200,000) ($5,341,000)
Unadjusted Eligible Basis $31,877,000 $35,605,000
Total Developer Fee 15.0% 6.9% $2,200,000 15.0% $5,341,000 Developer Overhead Fee $2,200,000 $5,341,000
(Less) Deferred Developer Fee 0.0% $0 53.2% ($2,841,000) Upfront Developer Fee $2,200,000 $2,500,000

FAIRGROUNDS WITH SENIOR HOUSING

STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

Page 51 ends

53 June 13, 2022 Item 01
28TH STREET

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54 June 13, 2022 Item 01
TABLE F-1
RESIDUAL LAND VALUE ANALYSIS - 28TH STREET - STANDALONE PROJECT

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 0.06 Acres 0.06 Acres 0.06 Acres 0.06 Acres III. Grosss Building Area
Net Residential 1,835 SF 92% 1,835 SF 92% 1,835 SF 92% 1,835 SF 92% Circulation/Common Area 154 SF 8% 154 SF 8% 154 SF 8% 154 SF 8% Total GBA 1,989 SF 100% 1,989 SF 100% 1,989 SF 100% 1,989 SF 100% IV. Average Unit Size 612 SF 612 SF 612 SF 612 SF
V. Stories 3 Stories 3 Stories 3 Stories 3 Stories
VI. Density 50 Units/Acre 50 Units/Acre 50 Units/Acre 50 Units/Acre VII. Floor Area Ratio (FAR) 0.76 FAR 0.76 FAR 0.76 FAR 0.76 FAR VIII. Total Number of Units 3 Units 3 Units 3 Units 3 Units IX. Unit Mix
One Bedroom 2 Units 67% 2 Units 67% 2 Units 67% 2 Units 67% Two Bedroom 1 Unit 33% 1 Unit 33% 1 Unit 33% 1 Unit 33% Total 3 Units 100% 3 Units 100% 3 Units 100% 3 Units 100% X. Affordability Mix
Market-Rate Units 3 Units 100% of Total 0 Units 0% of Total 0 Units 0% of Total 0 Units 0% of Total Affordable Units
30% AMI 0 Units 0% 3 Units 0 Units 0 Units
50% AMI 0 Units 0% 0 Units 3 Units 0 Units
80% AMI 0 Units 0% 0 Units 0 Units 3 Units
Total Affordbale Units 0 Units 0% of Total 3 Units 100% of Total 3 Units 100% of Total 3 Units 100% of Total XI. Parking
Type Podium Podium Podium Podium
Number of Spaces 4 Spaces 4 Spaces 4 Spaces 4 Spaces
Parking Ratio 1.3 Spaces/Unit 1.3 Spaces/Unit 1.3 Spaces/Unit 1.3 Spaces/Unit 28TH STREET - STANDALONE PROJECT
All Market-Rate Affordable without Tax Credits
100% @ Market Rate
Type V Type V Type V Type V
100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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55 June 13, 2022 Item 01
TABLE F-2

DEVELOPMENT COSTS

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit
Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $105,000 $35,000 $40 Per SF Site $105,000 $35,000 $40 Per SF Site Parking $160,000 $53,000 $40,000 Per Space $160,000 $53,000 $40,000 Per Space Shell Construction $627,000 $209,000 $315 Per SF GBA $627,000 $209,000 $315 Per SF GBA FF&E/Amenities $15,000 $5,000 Allowance $15,000 $5,000 Allowance Contingency $45,000 $15,000 5.0% of Directs $45,000 $15,000 5.0% of Directs Total Direct Costs $952,000 $317,000 $479 Per SF GBA $952,000 $317,000 $479 Per SF GBA II. Indirect Costs
Architecture & Engineering $67,000 $22,000 7.0% of Directs $67,000 $22,000 7.0% of Directs Permits & Fees (3) $179,400 $59,800 $90 Per SF GBA $171,000 $57,000 $86 Per SF GBA Legal & Accounting $14,000 $5,000 1.5% of Directs $14,000 $5,000 1.5% of Directs Taxes & Insurance $14,000 $5,000 1.5% of Directs $14,000 $5,000 1.5% of Directs Developer Fee $38,000 $13,000 4.0% of Directs $38,000 $13,000 4.0% of Directs Marketing/Lease-Up $7,500 $2,500 Allowanace $7,500 $2,500 Allowanace Contingency $16,000 $5,000 5.0% of Indirects $16,000 $5,000 5.0% of Indirects Total Indirect Costs $335,900 $112,000 35.3% of Directs $327,500 $109,000 34.4% of Directs III. Financing Costs(4) $95,000 $32,000 10.0% of Directs $95,000 $32,000 10.0% of Directs IV. Total Development Costs (5) $1,382,900 $461,000 $695 Per SF GBA $1,374,500 $458,000 $691 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Per the City of Del Mar, includes building permit fee, construction license tax, RTCIP, SMIP fee, and school district fees. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.
28TH STREET - STANDALONE PROJECT
All Market-Rate All Affordable without Tax Credits
Comments Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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56 June 13, 2022 Item 01
TABLE F-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI)
# Units $/SF $/Month Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual A. Market-Rate
One Bedroom 454 SF 2 $5.50 $2,500 $60,000 -- -- -- -- -- -- -- -- -- -- -- -- Two Bedroom 927 SF 1 $5.00 $4,600 $55,000 -- -- -- -- -- -- -- -- -- -- -- -- Subtotal/Average 612 SF 3 $5.33 $3,200 $115,000 -- -- -- -- -- -- -- -- -- -- -- -- B. Affordable
One Bedroom @ 30% AMI 454 SF -- -- -- -- 2 $1.28 $580 $14,000 -- -- -- -- -- -- -- -- One Bedroom @ 50% AMI 454 SF -- -- -- -- -- -- -- -- 2 $2.22 $1,007 $24,000 -- -- -- -- One Bedroom @ 80% AMI 454 SF -- -- -- -- -- -- -- -- -- -- -- -- 2 $3.63 $1,649 $40,000 Two Bedroom @ 30% AMI 927 SF -- -- -- -- 1 $0.69 $642 $8,000 -- -- -- -- -- -- -- -- Two Bedroom @ 50% AMI 927 SF -- -- -- -- -- -- -- -- 1 $1.21 $1,123 $13,000 -- -- -- -- Two Bedroom @ 80% AMI 927 SF -- -- -- -- -- -- -- -- -- -- -- -- 1 $1.99 $1,844 $22,000 Subtotal/Average 612 SF -- -- -- -- 3 $1.00 $611 $22,000 3 $1.68 $1,028 $37,000 3 $2.82 $1,722 $62,000 C. Total/Average 612 SF 3 $5.33 $3,200 $115,000 3 $1.00 $611 $22,000 3 $1.68 $1,028 $37,000 3 $2.82 $1,722 $62,000 Add: Other Income $150 /Unit/Month $5,000 $25 /Unit/Month $1,000 $25 /Unit/Month $1,000 $50 /Unit/Month $2,000 D. Total Gross Scheduled Income (GSI) $120,000 $23,000 $38,000 $64,000 II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($6,000) 5.0% of GSI ($1,000) 5.0% of GSI ($2,000) 5.0% of GSI ($3,000) Effective Gross Income (EGI) $114,000 $22,000 $36,000 $61,000 III. Operating Expenses
(Less) Operating Expenses $5,750 /Unit/Year ($17,000) $5,750 /Unit/Year ($17,250) $5,750 /Unit/Year ($17,250) $5,750 /Unit/Year ($17,250) (Less) Property Taxes $7,333 /Unit/Year (2) ($22,000) $0 /Unit/Year (3) $0 $0 /Unit/Year (3) $0 $0 /Unit/Year (3) $0 (Less) Replacement Reserves $250 /Unit/Year ($1,000) $250 /Unit/Year ($1,000) $250 /Unit/Year ($1,000) $250 /Unit/Year ($1,000) Total Operating Expenses $13,333 /Unit/Year ($40,000) $6,083 /Unit/Year ($18,250) $6,083 /Unit/Year ($18,250) $6,083 /Unit/Year ($18,250) 35% of EGI 83% of EGI 51% of EGI 30% of EGI
IV. Net Operating Income (NOI) $74,000 $3,750 $17,750 $42,750 (1) Based on State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Based on capitalized income approach; assumes a 1.10% tax rate and 3.75% cap rate. (3) Assumes project will qualify for tax-exempt status.

Unit Size
28TH STREET - STANDALONE PROJECT
All Market-Rate Mixed Income without Tax Credits
100% @ Market-Rate 100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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57 June 13, 2022 Item 01
TABLE F-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Capitalized Value Upon Completion
Stabilized Net Operating Income $74,000 $3,750 $17,750 $42,750 Capitalization Rate @ 3.75% 4.00% 4.00% 4.00%
Capitalized Value Upon Completion $658,000 /Unit $1,973,000 $31,000 /Unit $94,000 $148,000 /Unit $444,000 $356,000 /Unit $1,069,000 (Less) Cost of Sale 2.0% of Value ($39,000) 2.0% of Value ($2,000) 2.0% of Value ($9,000) 2.0% of Value ($21,000) (Less) Target Developer Profit 10.0% of Value ($197,000) 10.0% of Value ($9,000) 10.0% of Value ($44,000) 10.0% of Value ($107,000) II. Net Sales Proceeds $1,737,000 $83,000 $391,000 $941,000 (Less) Development Costs ($1,382,900) ($1,374,500) ($1,374,500) ($1,374,500) III. Residual Land Value $354,000 ($1,292,000) ($984,000) ($434,000) Per Unit $118,000 ($431,000) ($328,000) ($145,000)
Per SF Site $135 ($494) ($376) ($166)
28TH STREET - STANDALONE PROJECT
All Market-Rate 100% Affordable without Tax Credits
100% Market-Rate 100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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58 June 13, 2022 Item 01

CIVIC CENTER

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59 June 13, 2022 Item 01
TABLE G-1

RESIDUAL LAND VALUE ANALYSIS - CIVIC CENTER- STANDALONE PROJECT

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Construction Type
II. Site Area 0.10 Acres 0.10 Acres 0.10 Acres 0.10 Acres III. Grosss Building Area
Net Residential 2,872 SF 92% 2,872 SF 92% 2,872 SF 92% 2,872 SF 92% Circulation/Common Area 237 SF 8% 237 SF 8% 237 SF 8% 237 SF 8% Total GBA 3,109 SF 100% 3,109 SF 100% 3,109 SF 100% 3,109 SF 100% IV. Average Unit Size 718 SF 718 SF 718 SF 718 SF
V. Stories 2 Stories 2 Stories 2 Stories 2 Stories
VI. Density 40 Units/Acre 40 Units/Acre 40 Units/Acre 40 Units/Acre VII. Floor Area Ratio (FAR) 0.71 FAR 0.71 FAR 0.71 FAR 0.71 FAR VIII. Total Number of Units 4 Units 4 Units 4 Units 4 Units IX. Unit Mix
One Bedroom 0 Units 0% 0 Units 0% 0 Units 0% 0 Units 0% Two Bedroom 4 Units 100% 4 Units 100% 4 Units 100% 4 Units 100% Total 4 Units 100% 4 Units 100% 4 Units 100% 4 Units 100% X. Affordability Mix
Market-Rate Units 4 Units 100% of Total 0 Units 0% of Total 0 Units 0% of Total 0 Units 0% of Total Affordable Units
30% AMI 0 Units 0% 4 Units 0 Units 0 Units
50% AMI 0 Units 0% 0 Units 4 Units 0 Units
80% AMI 0 Units 0% 0 Units 0 Units 4 Units
Total Affordbale Units 0 Units 0% of Total 4 Units 100% of Total 4 Units 100% of Total 4 Units 100% of Total XI. Parking
Type Off-site Off-site Off-site Off-site
Number of Spaces 9 Spaces (1) 6 Spaces (2) 6 Spaces (2) 6 Spaces (2) Parking Ratio 2.3 Spaces/Unit 1.5 Spaces/Unit 1.5 Spaces/Unit 1.5 Spaces/Unit (1) Based on City of Del Mar parking ratio requirements. (2) Based on State of California affordable housing parking ratios.

Type V Type V Type V Type V

CIVIC CENTER - STANDALONE PROJECT
All Market-Rate Affordable without Tax Credits
100% @ Market Rate 100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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60 June 13, 2022 Item 01
TABLE G-2

DEVELOPMENT COSTS

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Direct Costs (1) Total Per Unit Total Per Unit
Off-Site Improvements (2) $0 $0 $0 Per SF Site $0 $0 $0 Per SF Site On-Site Improvements/Landscaping (2) $174,000 $44,000 $40 Per SF Site $174,000 $44,000 $40 Per SF Site Parking $0 $0 $0 Per Space $0 $0 $0 Per Space
Shell Construction $979,000 $245,000 $315 Per SF GBA $979,000 $245,000 $315 Per SF GBA FF&E/Amenities $20,000 $5,000 Allowance $20,000 $5,000 Allowance Contingency $59,000 $15,000 5.0% of Directs $59,000 $15,000 5.0% of Directs Total Direct Costs $1,232,000 $308,000 $396 Per SF GBA $1,232,000 $308,000 $396 Per SF GBA II. Indirect Costs
Architecture & Engineering $86,000 $22,000 7.0% of Directs $99,000 $25,000 8.0% of Directs Permits & Fees (3) $278,800 $69,700 $90 Per SF GBA $268,000 $67,000 $86 Per SF GBA Legal & Accounting $18,000 $5,000 1.5% of Directs $18,000 $5,000 1.5% of Directs Taxes & Insurance $18,000 $5,000 1.5% of Directs $18,000 $5,000 1.5% of Directs Developer Fee $49,000 $12,000 4.0% of Directs $49,000 $12,000 4.0% of Directs Marketing/Lease-Up $10,000 $2,500 Allowance $10,000 $2,500 Allowance Contingency $23,000 $6,000 5.0% of Indirects $23,000 $6,000 5.0% of Indirects Total Indirect Costs $482,800 $121,000 39.2% of Directs $485,000 $121,000 39.4% of Directs III. Financing Costs(4) $123,000 $31,000 10.0% of Directs $123,000 $31,000 10.0% of Directs IV. Total Development Costs (5) $1,837,800 $459,000 $591 Per SF GBA $1,840,000 $460,000 $592 Per SF GBA (1) Excludes the payment of prevailing wages.
(2) Estimated allowance; not verified by KMA or the City of Del Mar. (3) Per the City of Del Mar, includes building permit fee, construction license tax, RTCIP, SMIP fee, and school district fees. (4) Includes loan fees, interest during construction, and interest lease-up. (5) Excludes acquisition costs.

CIVIC CENTER- STANDALONE PROJECT
All Market-Rate All Affordable without Tax Credits
Comments Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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61 June 13, 2022 Item 01
TABLE G-3

NET OPERATING INCOME

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Gross Scheduled Income (GSI)
# Units $/SF $/Month Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual # Units $/SF $/Month (1) Annual A. Market-Rate
Two Bedroom 718 SF 4 $5.00 $3,600 $173,000 -- -- -- -- -- -- -- -- -- -- -- -- Subtotal/Average 718 SF 4 $5.00 $3,600 $173,000 -- -- -- -- -- -- -- -- -- -- -- -- B. Affordable
Two Bedroom @ 30% AMI 718 SF -- -- -- -- 4 $0.89 $642 $31,000 -- -- -- -- -- -- -- -- Two Bedroom @ 50% AMI 718 SF -- -- -- -- -- -- -- -- 4 $1.56 $1,123 $54,000 -- -- -- -- Two Bedroom @ 80% AMI 718 SF -- -- -- -- -- -- -- -- -- -- -- -- 4 $2.57 $1,844 $89,000 Subtotal/Average 718 SF -- -- -- -- 4 $0.90 $646 $31,000 4 $1.57 $1,125 $54,000 4 $2.58 $1,854 $89,000 C. Total/Average 718 SF 4 $5.00 $3,600 $173,000 4 $0.90 $646 $31,000 4 $1.57 $1,125 $54,000 4 $2.58 $1,854 $89,000 Add: Other Income $150 /Unit/Month $7,000 $25 /Unit/Month $1,000 $25 /Unit/Month $1,000 $25 /Unit/Month $1,000 D. Total Gross Scheduled Income (GSI) $180,000 $32,000 $55,000 $90,000 II. Effective Gross Income
(Less) Vacancy 5.0% of GSI ($9,000) 5.0% of GSI ($2,000) 5.0% of GSI ($3,000) 5.0% of GSI ($5,000) Effective Gross Income (EGI) $171,000 $30,000 $52,000 $85,000 III. Operating Expenses
(Less) Operating Expenses $5,750 /Unit/Year ($23,000) $5,750 /Unit/Year ($23,000) $5,750 /Unit/Year ($23,000) $5,750 /Unit/Year ($23,000) (Less) Property Taxes $7,750 /Unit/Year (2) ($31,000) $5,750 /Unit/Year (3) $0 $5,750 /Unit/Year (3) $0 $5,750 /Unit/Year (3) $0 (Less) Replacement Reserves $250 /Unit/Year ($1,000) $250 /Unit/Year ($1,000) $250 /Unit/Year ($1,000) $250 /Unit/Year ($1,000) Total Operating Expenses $13,750 /Unit/Year ($55,000) $6,000 /Unit/Year ($24,000) $6,000 /Unit/Year ($24,000) $6,000 /Unit/Year ($24,000) 32% of EGI 80% of EGI 46% of EGI 28% of EGI
IV. Net Operating Income (NOI) $116,000 $6,000 $28,000 $61,000 (1) Based on State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Based on capitalized income approach; assumes a 1.00% tax rate and 3.75% cap rate. (3) Assumes project will qualify for tax-exempt status.

Unit Size

CIVIC CENTER - STANDALONE PROJECT
All Market-Rate Mixed Income without Tax Credits
100% @ Market-Rate 100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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62 June 13, 2022 Item 01
TABLE G-4

RESIDUAL LAND VALUE

AFFORDABLE HOUSING FINANCIAL FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Capitalized Value Upon Completion
Stabilized Net Operating Income $116,000 $6,000 $28,000 $61,000 Capitalization Rate @ 3.75% 4.00% 4.00% 4.00%
Capitalized Value Upon Completion $773,000 /Unit $3,093,000 $38,000 /Unit $150,000 $175,000 /Unit $700,000 $381,000 /Unit $1,525,000 (Less) Cost of Sale 2.0% of Value ($62,000) 2.0% of Value ($3,000) 2.0% of Value ($14,000) 2.0% of Value ($31,000) (Less) Target Developer Profit 10.0% of Value ($309,000) 10.0% of Value ($15,000) 10.0% of Value ($70,000) 10.0% of Value ($153,000) II. Net Sales Proceeds $2,722,000 $132,000 $616,000 $1,341,000 (Less) Development Costs ($1,837,800) ($1,840,000) ($1,840,000) ($1,840,000) III. Residual Land Value $884,000 ($1,708,000) ($1,224,000) ($499,000) Per Unit $221,000 ($427,000) ($306,000) ($125,000)
Per SF Site $203 ($392) ($281) ($115)

CIVIC CENTER - STANDALONE PROJECT
All Market-Rate 100% Affordable without Tax Credits
100% Market-Rate 100% @ 30% AMI 100% @ 50% AMI 100% @ 80% AMI Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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63 June 13, 2022 Item 01
Supporting Worksheets
Affordable Housing Financial Feasibility Analysis
City of Del Mar

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64 June 13, 2022 Item 01
WORKSHEET 1

ESTIMATE OF PERMITS & FEES

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
1A 1B 1A + 2 1B + 2 1C 2 3
Fairgrounds w/Family
Housing
Fairgrounds w/Family
Housing
Fairgrounds and 28th
Street
Fairgrounds and 28th
Street
Fairgrounds w/Senior
Housing 28th Street Civic Center
Standalone Project Standalone Project w/Family Housing - Scattered Sites
w/Family Housing -
Scattered Sites
Standalone Project Standalone Project Standalone Project I. Project Description
Acres 1.0 Acre 1.5 Acres 1.0 Acre 1.5 Acres 1.5 Acres 0.06 Acres 0.10 Acres Gross Building Area 48,626 SF 76,619 SF 48,626 SF 76,619 SF 53,397 SF 1,989 SF 3,109 SF Number of Units 54 Units 80 Units 57 Units 83 Units 78 Units 3 Units 4 Units II. Estimate of Permits & Fees
Building Permit Fee $82.00 /SF (1) $3,987,332 $6,282,758 $3,987,332 $6,282,758 $4,378,554 $163,098 $254,938 Construction License Tax $0.35 /SF $17,019 $26,817 $17,019 $26,817 $18,689 $696 $1,088 RTCIP $2,583.82 /Unit $139,526 $206,706 $147,278 $214,457 $201,538 $7,751 $10,335 SMIP Fee (2) $0.10 /1,000 SF $4.86 $7.66 $4.86 $7.66 $5.34 $0.50 $0.50 School District Fees (3) $3.94 /SF $191,586 $301,879 $191,586 $301,879 $210,384 $7,837 $12,249 III. Subtotal Permits & Fees $4,335,469 $6,818,167 $4,343,220 $6,825,918 $4,809,170 $179,383 $278,611 IV. Add: Contingency @ 0.0% of Subtotal $0 $0 $0 $0 $0 $0 $0 V. Total Permits & Fees $4,335,469 $6,818,167 $4,343,220 $6,825,918 $4,809,170 $179,383 $278,611 Per Unit $80,300 $85,200 $76,200 $82,200 $61,700 $59,800 $69,700 Per SF GBA $89 $89 $89 $89 $90 $90 $90
(1) Reflects rate for Apartment Houses with Type V (Wood Frame) construction. (2) SMIP = Strong Motion Instrumentation & Seismic Hazard Mapping Fee. Minimum fee of $0.50. (3) Does not apply to units that are under 500 SF in size.

Source: City of Del Mar Fee Schedules
Prepared by: Keyser Marston Associates, Inc.

Filename: Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022\6/13/2022; ema

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65 June 13, 2022 Item 01
WORKSHEET 2
FINANCING COST ASSUMPTIONS - 100% AFFORDABLE WITH TAX CREDITS

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Loan Fees
Eligible Basis $29,430,000
Add: Land $0
Aggregate Basis $29,430,000
Minimum Required Tax-Exempt Bond 55% $16,187,000
Permanent Loan $4,024,000
Tax Credit Proceeds @ Permanent Loan 75% $14,686,000
Construction Loan Amount $18,710,000
Construction Loan Fees:

Loan Amount $18,710,000 $16,187,000
Points / Issuance Costs 2.0 6.0
Total Loan Fees $374,000 $971,000
Permanent Loan Fees:

Loan Amount $4,024,000
Loan Points 2.0
Permanent Loan Fees $80,000
Total Loan Fees $454,000 $971,000
II. Interest During Construction
Interest Rate 5.5% 4.5%
Term (Months) 18 18
Average Balance Out 60.0% 60.0%
Interest During Construction $926,000 $656,000
III. Interest During Lease-Up
Interest Rate 5.5% 4.5%
Term (Months) 6 6
Average Balance Out 100.0% 100.0%
Interest During Lease-Up $515,000 $364,000
IV. TCAC Fees
Application Fee $2,000 $2,000
Compliance Monitoring Fee $410 /Unit $22,000 $410 /Unit $22,000 One Year of Tax Credit Value @ 4.0% $90,000 4.0% $72,000 Total TCAC Fees $114,000 $96,000
Syndication Fees $75,000 $75,000
Total TCAC/Syndication Fees $189,000 $171,000
V. Operating Lease-Up/Reserves
Operating Expenses $373,800 @ 3 Mo. $93,000 $406,000 @ 3 Mo. $102,000 Debt Service $259,304 @ 3 Mo. $65,000 $220,000 @ 3 Mo. $55,000 10% of Operating Expenses 10.0% $37,000 10.0% $41,000
Total Operating Reserves $195,000 $198,000
1A
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
Prepared by: Keyser Marston Associates, Inc.

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66 June 13, 2022 Item 01
WORKSHEET 2
FINANCING COST ASSUMPTIONS - 100% AFFORDABLE WITH TAX CREDITS

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
I. Loan Fees
Eligible Basis
Add: Land
Aggregate Basis
Minimum Required Tax-Exempt Bond
Permanent Loan
Tax Credit Proceeds @ Permanent Loan
Construction Loan Amount
Construction Loan Fees:

Loan Amount
Points / Issuance Costs
Total Loan Fees
Permanent Loan Fees:

Loan Amount
Loan Points
Permanent Loan Fees
Total Loan Fees
II. Interest During Construction
Interest Rate
Term (Months)
Average Balance Out
Interest During Construction
III. Interest During Lease-Up
Interest Rate
Term (Months)
Average Balance Out
Interest During Lease-Up
IV. TCAC Fees
Application Fee
Compliance Monitoring Fee
One Year of Tax Credit Value @
Total TCAC Fees
Syndication Fees
Total TCAC/Syndication Fees
V. Operating Lease-Up/Reserves
Operating Expenses
Debt Service
10% of Operating Expenses
Total Operating Reserves

ABLE WITH TAX CREDITS
$54,010,000
$0
$54,010,000
55% $29,706,000
$6,969,000
75% $18,432,000
$25,401,000
$25,401,000 $29,706,000

2.0 6.0
$508,000 $1,782,000
$6,969,000

2.0 $139,000
$647,000 $1,782,000

5.5% 4.5%
18 18

60.0% 60.0%
$1,257,000 $1,203,000

5.5% 4.5%
6 6
100.0% 100.0%
$699,000 $668,000
$2,000 $2,000
$410 /Unit $33,000 $410 /Unit $33,000

4.0% $124,000 4.0% $112,000
$159,000 $147,000
$75,000 $75,000
$234,000 $222,000
$548,000 @ 3 Mo. $137,000 $568,000 @ 3 Mo. $142,000
$431,304 @ 3 Mo. $108,000 $384,348 @ 3 Mo. $96,000

10.0% $55,000 10.0% $57,000
$300,000 $295,000
1B

FAIRGROUNDS WITH FAMILY HOUSING - STANDALONE PROJECT
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

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67 June 13, 2022 Item 01
WORKSHEET 2
FINANCING COST ASSUMPTIONS - 100% AFFORDABLE WITH TAX CREDITS

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

Loan Amount
Points / Issuance Costs
Total Loan Fees
Permanent Loan Fees:

ABLE WITH TAX CREDITS
$35,214,000
$0
$35,214,000
55% $19,368,000
$4,520,000
75% $13,910,000
$18,430,000
$18,430,000 $19,368,000

2.0 6.0
$369,000 $1,162,000
$4,520,000

2.0 $90,000
$459,000 $1,162,000

5.5% 4.5%
18 18

60.0% 60.0%
$912,000 $784,000

5.5% 4.5%
6 6
100.0% 100.0%
$507,000 $436,000
$2,000 $2,000
$410 /Unit $23,000 $410 /Unit $23,000

4.0% $82,000 4.0% $73,000
$107,000 $98,000
$75,000 $75,000
$182,000 $173,000
$396,000 @ 3 Mo. $99,000 $429,000 @ 3 Mo. $107,000
$291,304 @ 3 Mo. $73,000 $233,043 @ 3 Mo. $58,000

10.0% $40,000 10.0% $43,000
$212,000 $208,000
FAIRGROUNDS WITH 28TH STREET FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
1A + 2
Prepared by: Keyser Marston Associates, Inc.

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68 June 13, 2022 Item 01
WORKSHEET 2
FINANCING COST ASSUMPTIONS - 100% AFFORDABLE WITH TAX CREDITS

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

Loan Amount
Points / Issuance Costs
Total Loan Fees
Permanent Loan Fees:

ABLE WITH TAX CREDITS
$55,922,000
$0
$55,922,000
55% $30,757,000
$6,922,000
75% $21,038,000
$27,960,000
$27,960,000 $30,757,000

2.0 6.0
$559,000 $1,845,000
$6,922,000

2.0 $138,000
$697,000 $1,845,000

5.5% 4.5%
18 18

60.0% 60.0%
$1,384,000 $1,246,000

5.5% 4.5%
6 6
100.0% 100.0%
$769,000 $692,000
$2,000 $2,000
$410 /Unit $34,000 $410 /Unit $34,000

4.0% $128,000 4.0% $116,000
$164,000 $152,000
$75,000 $75,000
$239,000 $227,000
$568,000 @ 3 Mo. $142,000 $614,000 @ 3 Mo. $154,000
$446,087 @ 3 Mo. $112,000 $376,522 @ 3 Mo. $94,000

10.0% $57,000 10.0% $61,000
$311,000 $309,000
1B + 2
FAIRGROUNDS WITH 28TH STREET FAMILY HOUSING - SCATTERED SITES All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

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69 June 13, 2022 Item 01
WORKSHEET 2
FINANCING COST ASSUMPTIONS - 100% AFFORDABLE WITH TAX CREDITS

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

Loan Amount
Points / Issuance Costs
Total Loan Fees
Permanent Loan Fees:

ABLE WITH TAX CREDITS
$40,946,000
$0
$40,946,000
55% $22,520,000
$5,546,000
75% $15,696,000
$21,242,000
$21,242,000 $22,520,000

2.0 6.0
$425,000 $1,351,000
$5,546,000

2.0 $111,000
$536,000 $1,351,000

5.5% 4.5%
18 1800.0%

60.0% 60.0%
$1,051,000 $912,000

5.5% 4.5%
600.0% 600.0%
100.0% 100.0%
$584,000 $507,000
$2,000 $2,000
$410 /Unit $32,000 $410 /Unit $32,000

4.0% $96,000 4.0% $85,160
$130,000 $119,160
$75,000 $75,000
$205,000 $194,160
$517,000 @ 3 Mo. $129,000 $559,000 @ 3 Mo. $140,000
$357,391 @ 3 Mo. $89,000 $291,304 @ 3 Mo. $73,000

10.0% $52,000 10.0% $56,000
$270,000 $269,000
1C

FAIRGROUNDS WITH SENIOR HOUSING - STANDALONE
All Affordable with Tax Credits
9% Tax Credits 4% Tax Credits
Prepared by: Keyser Marston Associates, Inc.

Filename i:\Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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70 June 13, 2022 Item 01
WORKSHEET 3
ESTIMATE OF AFFORDABLE RENTS - 30% AMI, 2022

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
Number of Bedrooms 1 2 3
A. City of Del Mar
Percent of AMI 30% 30% 30%
Assumed Family Size 2.0 3.0 4.0
Household Income (1) $25,665 $28,860 $32,070
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $642 $722 $802
(Less) Utility Allowance (1) ($62) ($80) ($97)
Maximum Monthly Rent $580 $642 $705
(1) State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Reflects County of San Diego utility allowances, as of December 1, 2021.

Monthly Utility One Two Three
Electric Heating $9 $12 $14
Electric Cooking $5 $7 $8
Other Electric $29 $37 $45
Electric Water Heating $19 $24 $30
Total $62 $80 $97
Prepared by: Keyser Marston Associates, Inc.

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71 June 13, 2022 Item 01
WORKSHEET 4
ESTIMATE OF AFFORDABLE RENTS - 50% AMI, 2022

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
Number of Bedrooms 1 2 3
A. City of Del Mar
Percent of AMI 50% 50% 50%
Assumed Family Size 2.0 3.0 4.0
Household Income (1) $42,775 $48,100 $53,450
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,069 $1,203 $1,336
(Less) Utility Allowance (2) ($62) ($80) ($97)
Maximum Monthly Rent $1,007 $1,123 $1,239
B. Low Income Housing Tax Credit (LIHTC) Program
Percent of AMI 50% 50% 50%
Assumed Family Size 1.5 3.0 4.5
Household Income (3) $48,800 $58,550 $67,675
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost(4) $1,220 $1,463 $1,691
(Less) Utility Allowance (2) ($62) ($80) ($97)
Maximum Monthly Rent $1,158 $1,383 $1,594
C. Maximum Monthly Rent $1,007 $1,123 $1,239
(1) State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Reflects County of San Diego utility allowances, as of December 1, 2021.

Monthly Utility One Two Three
Electric Heating $9 $12 $14
Electric Cooking $5 $7 $8
Other Electric $29 $37 $45
Electric Water Heating $19 $24 $30
Total $62 $80 $97
(3) California Tax Credit Allocation Committee 2022 maximum income levels for projects placed in service on or after April 18, 2022. (4) California Tax Credit Allocation Committee 2022 maximum rents for projects placed in service on or after April 18, 2022.

Prepared by: Keyser Marston Associates, Inc.

Filename i:\Del Mar_Affordable Housing Feasibilty Assessment_v3_06-08-2022;6/13/2022;ejr

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72 June 13, 2022 Item 01
WORKSHEET 5
ESTIMATE OF AFFORDABLE RENTS - 60% AMI, 2022

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
Number of Bedrooms 1 2 3
A. City of Del Mar
Percent of AMI 60% 60% 60%
Assumed Family Size 2.0 3.0 4.0
Household Income (1) $51,330 $57,720 $64,140
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,283 $1,443 $1,604
(Less) Utility Allowance (2) ($62) ($80) ($97)
Maximum Monthly Rent $1,221 $1,363 $1,507
B. Low Income Housing Tax Credit (LIHTC) Program
Percent of AMI 60% 60% 60%
Assumed Family Size 1.5 3.0 4.5
Household Income (3) $58,560 $70,260 $81,210
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost(4) $1,464 $1,756 $2,030
(Less) Utility Allowance (2) ($62) ($80) ($97)
Maximum Monthly Rent $1,402 $1,676 $1,933
C. Maximum Monthly Rent $1,221 $1,363 $1,507
(1) State of California Department of Housing and Community Development (HCD) 2022 income limits. (2) Reflects County of San Diego utility allowances, as of December 1, 2021.

Prepared by: Keyser Marston Associates, Inc.

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73 June 13, 2022 Item 01
WORKSHEET 6
ESTIMATE OF AFFORDABLE RENTS - 80% AMI, 2022

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
Number of Bedrooms 1 2 3
A. City of Del Mar
Percent of AMI 80% 80% 80%
Assumed Family Size 2.0 3.0 4.0
Household Income (1) $68,440 $76,960 $85,520
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,711 $1,924 $2,138
(Less) Utility Allowance (2) ($62) ($80) ($97)
Maximum Monthly Rent $1,649 $1,844 $2,041
(1) Reflects County of San Diego utility allowances, as of December 1, 2021.

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74 June 13, 2022 Item 01

NORTH COASTAL CITIES
WORKSHEET 7
SURVEY OF MULTI-FAMILY LAND SALES, JANUARY 2018 TO PRESENT (1)

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
Sale Date Address City Sale Price Acres $/SF Buyer (True) Company Proposed Use 4/4/2019 777-793 2nd St Encinitas $2,950,000 0.23 $290 ABP Capital LLC Commercial, Mixed Use, MultiFamily, Office 8/15/2018 2646 State St Carlsbad $2,500,000 0.25 $230 Tao Yu Apartment Units, MultiFamily 5/4/2021 215 Oceanside Blvd Oceanside $1,300,000 0.13 $230 -- Apartment Units, MultiFamily 8/19/2021 654 N Coast Highway 101 Encinitas $5,900,000 0.63 $215 Saeed Shahri MultiFamily 12/21/2021 2690 Roosevelt St Carlsbad $3,850,000 0.44 $201 Randolf Cherewick MultiFamily 2/1/2019 1909 S Myers St Oceanside $3,350,000 0.42 $183 Mark McCord Apartment Units 5/17/2018 3068-3080 State St Carlsbad $3,300,000 0.41 $183 Del Mar Alliance Apartment Units - Condo, Mixed Use, MultiFamily 4/15/2022 2646 State St Carlsbad $1,690,000 0.25 $155 -- Apartment Units, MultiFamily 1/22/2020 570-580 Laguna Dr Carlsbad $5,000,000 0.75 $154 Brett Farrow Apartment Units, Mixed Use, Office 4/2/2018 Roosevelt St Carlsbad $3,000,000 0.47 $147 Scott Lissoy MultiFamily 8/31/2018 301-307 West St Oceanside $1,300,000 0.23 $130 Hall Land Company Inc MultiFamily 10/2/2019 328 S Coast Hwy Oceanside $1,300,000 0.23 $129 Blumkin Family Trust MultiFamily, Retail 1/2/2019 438 Tamarack Ave Carlsbad $1,960,000 0.39 $117 Michael Fulton MultiFamily 8/19/2021 1016 Costa Pacifica Way Oceanside $8,104,000 1.67 $112 Wood Residential Services Apartment Units, Mixed Use, MultiFamily, Retail 5/1/2018 150 S Myers St Oceanside $1,000,000 0.21 $111 BS Products, Inc. MultiFamily 9/12/2018 700 Stevens Ave Solana Beach $2,800,000 0.67 $97 The City of Solana Beach Mixed Use, MultiFamily, Retail 2/5/2021 2951 Manchester Ave Cardiff By The Sea $1,087,500 1.10 $23 Floit Properties, Inc. MultiFamily 1/29/2020 504 S The Strand Oceanside -- 0.11 -- -- Apartment Units Minimum $1,000,000 0.11 $23
Maximum $8,104,000 1.67 $290
Median $2,800,000 0.40 $154
Average $2,964,206 0.48 $159
(1) Reflects land sold in the cities of Del Mar, Oceanside, Solana Beach, and Encinitias. Excludes properties east of the I-5.

Land
Source: CoStar Group, April 2022.

Prepared by: Keyser Marston Associates, Inc.

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75 June 13, 2022 Item 01

SORTED BY AVERAGE RENT/SF

ALL UNITS
WORKSHEET 8
SURVEY OF APARTMENT RENTS, NORTH COASTAL CITIES (1)

AFFORDABLE HOUSING FEASIBILITY ANALYSIS

CITY OF DEL MAR
Number Monthly Monthly Monthly Monthly Monthly Vacancy Year Property Name Property Address City of Stories SF Rent (2) Rent/SF SF Rent (2) Rent/SF SF Rent (2) Rent/SF SF Rent (2) Rent/SF Total SF Rent (2) Rent/SF Rate Built Elan Sandpiper 833 S Cedros Ave Solana Beach 2 400 $2,104 $5.26 700 $2,639 $3.77 --- --- --- --- --- --- 54 411 $2,063 $5.02 --- 1973 Elan Beachhouse 2515 Camino Del Mar Del Mar 2 --- --- --- 750 $3,668 $4.89 980 $4,067 $4.15 -- -- -- 14 783 $3,727 $4.76 5.8% 2013 One Paseo Living 3200 Paseo Village Way San Diego 5 --- --- --- 769 $3,891 $5.06 $1,114 $5,113 $4.59 1,441 $6,052 $4.20 608 974 $4,597 $4.72 1.3 2019 SOLA 13385 Highlands Pl San Diego 4 456 $2,362 $5.18 741 $3,305 $4.46 1,102 $4,210 $3.82 1,287 $5,122 3.98 252 940 $3,816 $4.06 2.5% 2018 The Beach Colony 2821 Camino Del Mar Del Mar 2 --- --- --- 730 $2,694 $3.69 966 $3,313 $3.43 --- --- --- 86 702 $2,738 $3.90 --- 1968 Solana Mar Apartments 309 N Solana Hills Dr Solana Beach 2 450 $2,196 $4.88 608 $2,408 $3.96 1,000 $3,110 $3.11 --- --- --- 124 673 $2,510 $3.73 --- 1975 Village Apartments 3642 Village Dr Carlsbad 1 --- --- --- 706 $2,669 $3.78 --- --- --- --- --- --- 98 705 $2,630 $3.73 0.0% 1962 Pierside South 115 N Cleveland St Oceanside 7 570 $2,297 $4.03 840 $3,083 $3.67 1,201 $3,843 $3.20 --- --- --- 110 902 $3,265 $3.62 --- 2018 Altura 11921 Carmel Creek Rd San Diego 3 --- --- --- 845 $3,405 $4.03 1,141 $4,313 $3.78 1,729 $5,239 3.03 181 1,179 $4,268 $3.62 --- 2017 Pierside 250 Mission Ave Oceanside 4 674 $2,379 $3.53 738 $2,871 $3.89 1,035 $3,447 $3.33 --- --- --- 66 852 $3,076 $3.61 --- 2016 Ocean Crest Apartments 873 Stevens Ave Solana Beach 3 690 $2,953 $4.28 894 $3,192 $3.57 1,012 $3,532 $3.49 --- --- --- 146 947 $3,324 $3.51 2.0% 1986 Avino 5040 Camino San Fermin San Diego 2 --- --- --- 774 $2,709 $3.50 1,070 $3,713 $3.47 1,266 $4,254 3.36 279 1,080 $3,704 $3.43 0.0% 2016 Carlsbad Coast 357 Chestnut Ave Carlsbad 2 --- --- --- 380 $2,227 $5.86 900 $2,385 $2.65 --- --- --- 72 680 $2,326 $3.42 --- 1974 San Katrina Apartments 336 Pine Ave Carlsbad 2 575 $2,294 $3.99 650 $2,594 $3.99 887 $2,688 $3.03 --- --- --- 50 770 $2,610 $3.39 1.7% 1985 Bella Del Mar 14031 Mango Dr Del Mar 2 --- --- --- 765 $2,915 $3.81 1,027 $3,389 $3.30 --- --- --- 60 1,010 $3,353 $3.32 --- 1981 Torrey Gardens 10625 Calle Mar De Mariposa San Diego 1 --- --- --- 830 $2,681 $3.23 1,132 $3,487 $3.08 1,203 $4,090 3.40 384 993 $3,178 $3.20 2.1% 2014 SALT 371 N Cleveland St Oceanside 1 --- --- --- 781 $2,554 $3.27 1,186 $3,534 $2.98 --- --- --- 52 909 $2,882 $3.17 0.0% 2019 The Terraces at Del Mar 526 Camino Del Mar Del Mar 2 400 $1,904 $4.76 749 $2,232 $2.98 1,100 $2,684 $2.44 --- --- --- 53 769 $2,292 $2.98 2.6% 1961 The Village 415 Grant St Oceanside 2 --- --- --- --- --- --- 650 $1,905 $2.93 --- --- --- 86 650 $1,918 $2.95 --- 1953 Silverado Senior Community 805 Valley Ave Solana Beach 2 --- --- --- 560 $1,652 $2.95 --- --- --- --- --- --- 80 560 $1,652 $2.95 --- 1986 Ocean Breeze Senior Village 960 Vine St Oceanside 3 437 $1,394 $3.19 500 $1,470 $2.94 --- --- --- --- --- --- 130 499 $1,462 $2.93 2.8% 1985 Ocean Air 10500 W Ocean Air Dr San Diego 3 --- --- --- 1,075 $3,204 $2.98 1,210 $3,642 $3.01 1,497 $4,222 2.82 100 1,326 $3,845 $2.90 --- 2015 Solana Highlands 701 S Nardo Ave Solana Beach 2 --- --- --- 689 $2,163 $3.14 917 $2,494 $2.72 1,050 $3,192 $3.04 194 824 $2,381 $2.89 0.5% 1971 Los Arboles Apartments 201 4th St Del Mar 3 --- --- --- 739 $2,786 $3.77 1,045 $2,842 $2.72 1,350 $3,483 $2.58 97 1,016 $2,906 $2.86 --- 1970 Elan Sandcastle Shores Apartment Homes 315-395 Walnut Ave Carlsbad 2 --- --- --- --- --- --- 863 $2,468 $2.86 --- --- --- 64 862 $2,465 $2.86 --- 1986 Carlton by the Sea 295 Chestnut Ave Carlsbad 2 580 $1,746 $3.01 630 $1,814 $2.88 1,100 $2,486 $2.26 --- --- --- 52 680 $1,890 $2.78 10.3% 1964 The Arbors of Carlsbad 2601 Jefferson St Carlsbad 2 --- --- --- 640 $1,958 $3.06 920 $2,420 $2.63 1,050 $2,667 $2.54 58 895 $2,399 $2.68 --- 1973 Jefferson House II Senior Apartments 2848 Jefferson St Carlsbad 3 --- --- --- 525 $1,360 $2.59 650 $1,671 $2.57 --- --- --- 57 540 $1,404 $2.60 --- 1988 Sandpointe Apartment Homes 450 Morse St Oceanside 2 450 $1,386 $3.08 650 $1,645 $2.53 850 $1,947 $2.29 --- --- --- 64 625 $1,619 $2.59 --- 1973 Villas at Carlsbad 2600-2695 Kremeyer Cir Carlsbad 2 329 $2,181 $6.63 --- --- --- 987 $2,438 $2.47 --- --- --- 102 984 $2,490 $2.53 --- 1966 Elan Village North Apartments 854 Vine St Oceanside 2 --- --- --- 700 $1,918 $2.74 970 $2,124 $2.19 --- --- --- 96 790 $1,983 $2.51 --- 1989 Cardiff By The Sea 2170 Carol View Dr Cardiff By The Sea 3 --- --- --- 775 $2,193 $2.83 1,033 $2,459 $2.38 1,160 $2,888 $2.49 300 995 $2,448 $2.46 --- 1986 Carmel Creek 11724 Carmel Creek Rd San Diego 3 --- --- --- 799 $2,908 $3.64 1,163 $3,582 $3.08 1,371 $4,291 $3.13 348 1,104 $3,533 $3.20 1.30% 2000 Del Mar Ridge 12629 El Camino Real San Diego 4 --- --- --- 894 $3,049 $3.41 1,314 $3,574 $2.72 1,425 $4,090 $2.87 181 1,240 $3,546 $2.86 0.30% 1998 The Village at Del Mar Heights Apartments 13138 Kellam Ct San Diego 2 --- --- --- 700 $3,080 $4.40 1,050 $3,644 $3.47 --- --- --- 168 933 $3,452 $3.70 1.20% 1986 Torrey Hills 11026 W Ocean Air Dr San Diego 3 --- --- --- 797 $2,981 $3.74 1,076 $3,540 $3.29 1,255 $4,430 $3.53 340 980 $3,381 $3.45 1.20% 2000 Signature Point 13006 Signature Pt San Diego 2 --- --- --- --- --- --- 1,180 $4,401 $3.73 1,328 $5,153 $3.88 262 1,244 $4,727 $3.80 0.00% 2002 Torrey Ridge 4695 Torrey Cir San Diego 3 --- --- --- 881 $3,057 $3.47 1,174 $3,698 $3.15 1,584 $4,530 $2.86 430 1,102 $3,537 $3.21 0.23% 2001 The Club Torrey Pines 12646 Torrey Bluff Dr San Diego 2 --- --- --- 628 $2,449 $3.90 944 $3,040 $3.22 --- --- --- 400 817 $2,819 $3.45 0.00% 1988 Torrey Villas 11100 Vista Sorrento Pky San Diego 3 --- --- --- 876 $3,057 $3.49 1,245 $3,760 $3.02 1,421 $5,329 $3.75 473 1,164 $3,713 $3.19 1.95% 2002 Magnolia Manor 673 Magnolia Ave Carlsbad 1 --- --- --- --- --- --- --- --- --- --- --- --- 54 --- --- --- 0.00% 1977 BluWater Crossing 6790 Embarcadero Ln Carlsbad 3 --- --- --- 1,766 $3,673 $2.08 2,790 $4,910 $1.76 --- --- --- 66 2,138 $4,190 $1.96 6.5% 2009 Minimum 329 $1,386 $3.01 380 $1,360 $2.08 650 $1,671 $1.76 1,050 $2,667 $2.49 14 411 $1,404 $1.96 0.0% 1953 Maximum 690 $2,953 $6.63 1,766 $3,891 $5.86 2,790 $5,113 $4.59 1,729 $6,052 $4.20 608 2,138 $4,727 $5.02 1.3% 2019 Median 453 $2,189 $4.16 741 $2,694 $3.57 1,045 $3,447 $3.03 1,339 $4,272 $3.09 99 902 $2,882 $3.20 0.0% 1986 Average 501 $2,100 $4.32 759 $2,653 $3.57 1,081 $3,240 $3.04 1,339 $4,314 $3.22 164 908 $2,930 $3.28 0.1% 1990 (1) Includes cities of San Diego, Del Mar, Oceanside, Solana Beach, Encinitas, and Cardiff By The Sea. (2) Reflects effective rent.

Studio One Bedroom Two Bedroom Three Bedroom All Units - Total/Averages Source: CoStar Group, Inc.

Prepared by: Keyser Marston Associates, Inc.

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LIMITING CONDITIONS

1. The analysis contained in this document is based, in part, on data from secondary sources such as state and local government, planning agencies, real estate brokers, and other third parties. While KMA believes that these sources are reliable, we cannot guarantee their accuracy.

2. The analysis assumes that neither the local nor national economy will experience a major recession. If an unforeseen change occurs in the economy, the conclusions contained herein may no longer be valid.

3. The findings are based on economic rather than political considerations. Therefore, they should be construed neither as a representation nor opinion that government approvals for development can be secured.

4. Development opportunities are assumed to be achievable during the specified time frame. A change in development schedule requires that the conclusions contained herein be reviewed for validity.

5. The analysis, opinions, recommendations and conclusions of this document are KMA's informed judgment based on market and economic conditions as of the date of this report. Due to the volatility of market conditions and complex dynamics influencing the economic conditions of the building and development industry, conclusions and recommended actions contained herein should not be relied upon as sole input for final business decisions regarding current and future development and planning.

6. Any estimates of development costs, capitalization rates, income and/or expense projections are based on the best available project-specific data as well as the experiences of similar projects. They are not intended to be projections of the future for the specific project. No warranty or representation is made that any of the estimates or projections will actually materialize.

7. KMA is not advising or recommending any action be taken by City with respect to any prospective, new or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms and other similar matters concerning such financial products or issues).

8. KMA is not acting as a Municipal Advisor to the City and does not assume any fiduciary duty hereunder, including, without limitation, a fiduciary duty to the City pursuant to Section 15B of the Exchange Act with respect to the services provided hereunder and any information and material contained in KMA’s work product.

9. The City shall discuss any such information and material contained in KMA’s work product with any and all internal and/or external advisors and experts, including its own municipal advisors, that it deems appropriate before acting on the information and material.

D R A F T
77 June 13, 2022 Item 01

Del Mar City CouncilJune 13, 2022

Del Mar City Council
June 13, 2022