50 units
Budget
ACQUISITION COSTS
Purchase Price 2,800,000$
TOTAL ACQUISITION COSTS 2,800,000$
PROFESSIONAL FEES
Architecture & Engineering 2,200,000$
Other Professional / Consulting 700,000$
TOTAL PROFESSIONAL FEES 2,900,000$
FEES AND PERMITS
City/County Fees and Permits 1,900,000$
Utility Fees/Costs 700,000$
TOTAL FEES AND PERMITS 2,600,000$
CONSTRUCTION COSTS
Offsite Improvements 280,358$
Site Improvements 3,432,371$
Residential Structures (Community Building Included) 13,278,471$ Contractor Contingency 679,648$
General Conditions 1,019,472$
Contractor Overhead 540,320$
Contractor Profit 900,534$
Contractor Insurance 194,515$
Construction Contingency 1,016,285$
Construction Management 215,000$
TOTAL CONSTRUCTION COSTS 21,556,974$
FINANCING COSTS
Gap Loan Costs 25,000$
Construction Loan Costs 150,000$
Construction Loan Fees 91,000$
Construction Period Interest 771,000$
Post-Construction Interest 290,000$
Permanent Loan Costs 50,000$
Permanent Loan Fees 25,999$
Bond Issuance Costs 350,000$
TCAC Fees 51,500$
Misc. Finance Costs 50,000$
TOTAL FINANCING COSTS 1,854,499$
OTHER COSTS
Furnishings, Fixtures & Equipment 300,000$
Marketing Costs 200,000$
Legal Fees 400,000$
Soft Cost Contingency 82,303$
Accounting / Audit / Insurance 426,000$
Permanently Deferred Developer Fee 1,798,000$
Cash Developer Fees 2,500,000$
Other Costs / Reserves 155,934$
Market Study 14,500$
TOTAL OTHER COSTS 5,876,737$
TOTAL DEVELOPMENT COSTS 37,588,210$
EXHIBIT "D"
PRELIMINARY PROJECT BUDGET
50 Units
Budget
RENTING
Advertising 450$
Misc. Renting 1,250$
TOTAL RENTING 1,700$
ADMINISTRATION
Office 1,300$
Legal 1,600$
Audit 15,000$
Telephone/Computer 15,000$
Tenant Relations 800$
Misc. Administrative 4,500$
TOTAL ADMINISTRATION 38,200$
MANAGEMENT FEE
Contract Management 42,000$
TOTAL MANAGEMENT 42,000$
OPERATING
Electricity 429$
Water 23,724$
Gas -$
Sewer 17,851$
Exterminating 1,000$
Rubbish Removal 12,180$
Misc. Operating 1,500$
TOTAL OPERATING 56,684$
MAINTENANCE
Security 1,700$
Grounds 14,000$
Repairs 3,500$
Elevator -$
Misc. Maintenance 7,500$
TOTAL MAINTENANCE 26,700$
SALARIES AND BENEFITS
Office Salaries 52,740$
Maintenance Salaries 58,240$
Payroll Taxes and Benefits 30,160$
TOTAL SALARIES AND BENEFITS 141,140$
TAXES AND INSURANCE
Real Estate Taxes 1,500$
Business Taxes and Licenses 1,276$
Insurance 50,000$
TOTAL TAXES AND INSURANCE 52,776$
RESERVES AND OTHER EXPENSES
Replacement Reserves 15,000$
Social Programs 22,800$
TOTAL RESERVES AND OTHER COSTS 37,800$
TOTAL OPERATING EXPENSES 397,000$
EXHIBIT "D"
PRELIMINARY OPERATING EXPENSES
Construction Sources and Uses
Construction Sources
Tax Exempt Construction Loan 8,938,318$
Taxable Construction Loan 5,008,837$
Tax Credit Equity 1,422,121$
Residual Receipts Loan (Fontana Housing Authority) 5,262,308$ Residual Receipts Loan (City of Fontana) 10,837,692$
Land Acquisition Loan (City of Fontana) 2,800,000$
Land Acquisition Loan (City of Fontana) - Accrued Interest 15,000$ Residual Receipts Loan (City of Fontana) - Accrued Interest 53,000$ Residual Receipts Loan (Fontana Housing Authority) - Accrued Interest 26,000$ Deferred Developer Fee 3,048,000$
Deferred Operating Deficit Reserve 155,934$
Deferred TCAC Monitoring Fees 21,000$
Total Construction Sources 37,588,210$
Construction Uses
Total Development Cost 37,588,210$
Amount Over/(Under) -$
Permanent Sources and Uses
Permanent Sources
Tax Credit Equity 14,221,210$
Permanent Financing 2,575,000$
Residual Receipts Loan (Fontana Housing Authority) 5,262,308$ Residual Receipts Loan (City of Fontana) 10,837,692$
Land Acquisition Loan (City of Fontana) 2,800,000$
Land Acquisition Loan (City of Fontana) - Accrued Interest 15,000$ Residual Receipts Loan (City of Fontana) - Accrued Interest 53,000$ Residual Receipts Loan (Fontana Housing Authority) - Accrued Interest 26,000$ Deferred Developer Fee 1,798,000$
Total Permanent Sources 37,588,210$
Uses
Total Development Cost 37,588,210$
Amount Over/(Under) -$
EXHIBIT "D"
SOURCES AND USES OF FUNDS
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
INCOME
Gross Rental Income 700,776 721,799 743,453 765,757 788,730 812,391 836,763 861,866 887,722 914,354 941,784 970,038 999,139 1,029,113 1,059,987 Laundry Income 3,600 3,708 3,819 3,934 4,052 4,173 4,299 4,428 4,560 4,697 4,838 4,983 5,133 5,287 5,445 Vacancy @ 5.0% (35,219) (36,275) (37,364) (38,485) (39,639) (40,828) (42,053) (43,315) (44,614) (45,953) (47,331) (48,751) (50,214) (51,720) (53,272) EFFECTIVE GROSS INCOME 669,157 689,232 709,909 731,206 753,142 775,737 799,009 822,979 847,668 873,098 899,291 926,270 954,058 982,680 1,012,160
EXPENSES
Administrative (38,200) (39,346) (40,526) (41,742) (42,994) (44,284) (45,613) (46,981) (48,391) (49,842) (51,338) (52,878) (54,464) (56,098) (57,781) Management Fee (42,000) (43,260) (44,558) (45,895) (47,271) (48,690) (50,150) (51,655) (53,204) (54,800) (56,444) (58,138) (59,882) (61,678) (63,529) Operating (56,684) (58,385) (60,136) (61,940) (63,798) (65,712) (67,684) (69,714) (71,806) (73,960) (76,179) (78,464) (80,818) (83,242) (85,740) Maintenance (26,700) (27,501) (28,326) (29,176) (30,051) (30,953) (31,881) (32,838) (33,823) (34,837) (35,883) (36,959) (38,068) (39,210) (40,386) Salaries (141,140) (145,374) (149,735) (154,227) (158,854) (163,620) (168,529) (173,584) (178,792) (184,156) (189,680) (195,371) (201,232) (207,269) (213,487) Taxes (escalated at 2.00%) (2,776) (2,832) (2,888) (2,946) (3,005) (3,065) (3,126) (3,189) (3,253) (3,318) (3,384) (3,452) (3,521) (3,591) (3,663) Insurance (50,000) (51,500) (53,045) (54,636) (56,275) (57,964) (59,703) (61,494) (63,339) (65,239) (67,196) (69,212) (71,288) (73,427) (75,629) Renting (1,700) (1,751) (1,804) (1,858) (1,913) (1,971) (2,030) (2,091) (2,154) (2,218) (2,285) (2,353) (2,424) (2,497) (2,571) Social Programs (22,800) (23,484) (24,189) (24,914) (25,662) (26,431) (27,224) (28,041) (28,882) (29,749) (30,641) (31,561) (32,507) (33,483) (34,487) Replacement Reserves (15,000) (15,000) (15,000) (15,000) (15,000) (16,500) (16,500) (16,500) (16,500) (16,500) (18,150) (18,150) (18,150) (18,150) (18,150) TOTAL OPERATING EXPENSES (397,000) (408,432) (420,207) (432,334) (444,825) (459,189) (472,440) (486,086) (500,142) (514,619) (531,179) (546,536) (562,353) (578,644) (595,423) NET OPERATING INCOME 272,157 280,800 289,702 298,872 308,318 316,547 326,569 336,893 347,526 358,479 368,112 379,734 391,705 404,036 416,737
DEBT SERVICE
Permanent Financing (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) (226,733) Cash Flow After Debt Service 45,424 54,066 62,969 72,139 81,584 89,814 99,836 110,159 120,793 131,746 141,379 153,000 164,972 177,302 190,004 SLP Fee (5,000) (5,150) (5,305) (5,464) (5,628) (5,796) (5,970) (6,149) (6,334) (6,524) (6,720) (6,921) (7,129) (7,343) (7,563) Partnership Administration Fee (30,000) (30,900) (31,827) (32,782) (33,765) (34,778) (35,822) (36,896) (38,003) (39,143) (40,317) (41,527) (42,773) (44,056) (45,378) Cash Flow After Fees 10,424 18,016 25,837 33,893 42,191 49,239 58,044 67,114 76,456 86,079 94,342 104,552 115,070 125,904 137,063 Less: Payment From Available Cash Flow (10,424) (18,016) (25,837) (33,893) (42,191) (49,239) (58,044) (67,114) (76,456) (86,079) (94,342) (104,552) (115,070) (125,904) (137,063) Net Cash Flow After Developer Fee Repayment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 EXHIBIT "D"
15 YEAR CASH FLOW PROJECTIONS