50 units
Budget
ACQUISITION COSTS
Purchase Price 2,800,000$
Other Acquisition Costs -$
TOTAL ACQUISITION COSTS 2,800,000$
PROFESSIONAL FEES
Architecture & Engineering 2,400,000$
Other Professional / Consulting 600,000$
TOTAL PROFESSIONAL FEES 3,000,000$
FEES AND PERMITS
City/County Fees and Permits 1,650,000$
Utility Fees/Costs 850,000$
TOTAL FEES AND PERMITS 2,500,000$
CONSTRUCTION COSTS
Offsite Improvements 1,166,344$
Site Improvements 4,485,019$
Residential Structures (Community Building Included) 11,335,877$ Contractor Contingency 379,659$
General Conditions 1,586,521$
Contractor Profit 947,671$
Contractor Insurance 56,860$
Construction Bond Premiums 189,534$
Construction Contingency 1,007,375$
Construction Management 200,000$
TOTAL CONSTRUCTION COSTS 21,354,860$
FINANCING COSTS
Gap Loan Costs 25,000$
Construction Loan Costs 150,000$
Construction Loan Fees 156,000$
Construction Period Interest 677,000$
Post-Construction Interest 345,000$
Permanent Loan Costs 50,000$
TCAC Fees 132,000$
Misc. Finance Costs 50,000$
TOTAL FINANCING COSTS 1,585,000$
OTHER COSTS
Furnishings, Fixtures & Equipment 300,000$
Marketing Costs 185,000$
Legal Fees 300,000$
Soft Cost Contingency 100,000$
Accounting / Audit / Insurance 515,000$
Developer Fees 2,500,000$
Other Costs / Reserves 155,725$
Market Study 19,500$
TOTAL OTHER COSTS 4,075,225$
TOTAL DEVELOPMENT COSTS 35,315,085$
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 12,600$
Tenant Relations 800$
Misc. Administrative 4,500$
TOTAL ADMINISTRATION 35,800$
MANAGEMENT FEE
Contract Management 43,800$
TOTAL MANAGEMENT 43,800$
OPERATING
Electricity 10,750$
Water 46,500$
Rubbish Removal 19,500$
TOTAL OPERATING 76,750$
MAINTENANCE
Security 1,700$
Grounds 14,000$
Repairs 3,500$
Misc. Maintenance 12,900$
TOTAL MAINTENANCE 32,100$
SALARIES AND BENEFITS
Office Salaries 47,250$
Maintenance Salaries 58,240$
Payroll Taxes and Benefits 30,160$
TOTAL SALARIES AND BENEFITS 135,650$
TAXES AND INSURANCE
Real Estate Taxes 2,500$
Insurance 82,500$
TOTAL TAXES AND INSURANCE 85,000$
RESERVES AND OTHER EXPENSES
Replacement Reserves 15,000$
Social Programs 22,800$
TOTAL RESERVES AND OTHER COSTS 37,800$
TOTAL OPERATING EXPENSES 448,600$
EXHIBIT "D"
PRELIMINARY OPERATING EXPENSES
Construction Sources and Uses
Construction Sources
Construction Loan 15,451,961$
GP Equity 100$
Tax Credit Equity 1,622,299$
Residual Receipts Loan (Fontana Housing Authority) 5,262,308$ Residual Receipts Loan (City of Fontana) 8,737,692$
Land Acquisition Loan (City of Fontana) 2,800,000$
Deferred Developer Fee 1,250,000$
Deferred Operating Deficit Reserve 155,725$
Deferred TCAC Monitoring Fees 35,000$
Total Construction Sources 35,315,085$
Construction Uses
Total Development Cost 35,315,085$
Amount Over/(Under) -$
Permanent Sources and Uses
Permanent Sources
Tax Credit Equity 16,222,985$
GP Equity 100$
Permanent Financing 2,292,000$
Residual Receipts Loan (Fontana Housing Authority) 5,262,308$ Residual Receipts Loan (City of Fontana) 8,737,692$
Land Acquisition Loan (City of Fontana) 2,800,000$
Total Permanent Sources 35,315,085$
Uses
Total Development Cost 35,315,085$
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 688,848 709,513 730,799 752,723 775,304 798,564 822,521 847,196 872,612 898,790 925,754 953,527 982,133 1,011,597 1,041,944 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% (34,622) (35,661) (36,731) (37,833) (38,968) (40,137) (41,341) (42,581) (43,859) (45,174) (46,530) (47,925) (49,363) (50,844) (52,369) EFFECTIVE GROSS INCOME 657,826 677,560 697,887 718,824 740,389 762,600 785,478 809,043 833,314 858,313 884,063 910,584 937,902 966,039 995,020
EXPENSES
Administrative (35,800) (36,874) (37,980) (39,120) (40,293) (41,502) (42,747) (44,029) (45,350) (46,711) (48,112) (49,556) (51,042) (52,574) (54,151) Management Fee (43,800) (45,114) (46,467) (47,861) (49,297) (50,776) (52,299) (53,868) (55,485) (57,149) (58,864) (60,629) (62,448) (64,322) (66,251) Operating (76,750) (79,053) (81,424) (83,867) (86,383) (88,974) (91,644) (94,393) (97,225) (100,141) (103,146) (106,240) (109,427) (112,710) (116,091) Maintenance (32,100) (33,063) (34,055) (35,077) (36,129) (37,213) (38,329) (39,479) (40,663) (41,883) (43,140) (44,434) (45,767) (47,140) (48,554) Salaries (135,650) (139,720) (143,911) (148,228) (152,675) (157,256) (161,973) (166,832) (171,837) (176,992) (182,302) (187,771) (193,404) (199,207) (205,183) Taxes (escalated at 2.00%) (2,500) (2,550) (2,601) (2,653) (2,706) (2,760) (2,815) (2,872) (2,929) (2,988) (3,047) (3,108) (3,171) (3,234) (3,299) Insurance (82,500) (84,975) (87,524) (90,150) (92,854) (95,640) (98,509) (101,465) (104,509) (107,644) (110,873) (114,199) (117,625) (121,154) (124,789) 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 (448,600) (461,583) (474,955) (488,728) (502,913) (519,023) (534,071) (549,570) (565,534) (581,975) (600,560) (618,002) (635,966) (654,469) (673,526) NET OPERATING INCOME 209,226 215,977 222,932 230,096 237,476 243,577 251,407 259,472 267,780 276,338 283,503 292,583 301,936 311,570 321,494 EXHIBIT "D"
15 YEAR CASH FLOW PROJECTIONS