EXHIBIT “C”
Sources and Uses of Funds
Development Costs
Project Name - Avalon Commons Phase II : 44 Units
Cost Amount Cost Per
Unit
Cost Per
Square
Foot
Acquisition Costs
Land $1,000,062 $22,729 $25
Existing Structures $0 need data need data
need data need data
Site Work Costs (not included in construction
contract)
Demolition/Clearance $0 need data need data
Site Remediation $0 need data need data
Off-Site Costs (these are not HOME eligible) $50,000
Improvements $600,000 $13,636 $15
Construction Equipment (HOME eligible portion) $0 need data need data Construction Equipment (non-HOME eligible portion) $0 need data need data need data need data
need data need data
Construction / Rehabilitation Costs (construction
Site Work Included in Construction Contract $0 need data need data Construction Equipment (HOME eligible portion) $0 need data need data Construction Equipment (non-HOME eligible portion) $0 need data need data New Construction $19,263,457 $437,806 $473
Rehabilitation $0 need data need data
General Requirements $380,000 $8,636 $9
Builder’s Overhead $1,140,000 $25,909 $28
Builder Profit $1,330,000 $30,227 $33
Performance Bond Premium $165,000 $3,750 $4
Construction Contingency $950,000 $21,591 $23
need data need data
need data need data
Architectural and Engineering Fees
Architect Fee -- Design $200,000 $4,545 $5
Architect Fee -- Construction Supervision $0 need data need data Engineering Fees $120,000 $2,727 $3
$0 need data need data
Other Owner Costs
Project Consultant Fees $0 need data need data
Owner Attorney Fees (initial closing) $45,000 $1,023 $1 Owner Attorney Fees (final closing) $0 need data need data Syndication Costs $825,000 $18,750 $20
Other Owner Organizational Expenses $25,000 $568 $1
Market Study $5,000 $114 $0
Survey $0 need data need data
Appraisal Fees $2,500 $57 $0
Environmental Studies $15,000 $341 $0
Capital Needs Assessment need data need data
need data need data
Tap Fees and Impact Fees $810,000 $18,409 $20
Building Permits and Fees $600,000 $13,636 $15
Tax Credit Fees $126,000 $2,864 $3
Accounting / Cost Certification / Audit $25,000 $568 $1 Soft Cost Contingency $150,000 $3,409 $4
need data need data
need data need data
Interim Financing Costs
Construction Period Insurance need data need data
Construction Period Taxes need data need data
Construction Interest (see calculation below) $2,000,000 $45,455 $49 Construction Loan Origination Fee $50,000 $1,136 $1
Construction Loan Legal Fees need data need data
Other Construction Loan Fees need data need data
Bond Costs of Issuance need data need data
Title and Recording Costs (for the construction loan) $90,000 $2,045 $2 need data need data
need data need data
Permanent Financing Costs
Credit Report need data need data
Lender Origination / Financing Fee $317,000 $7,205 $8
Lender’s Counsel Fee need data need data
Other Lender Fees need data need data
Title and Recording Costs (for permanent financing) $10,000 $227 $0 Establish Tax and Insurance Escrows need data need data need data need data
need data need data
Developer's Fee $2,200,000 $50,000 $54
Initial Project Reserves
Initial Rent-Up Reserve (not HOME eligible) need data need data Initial Operating Reserve (HOME-eligible portion) $74,509 $1,693 $2 Initial Operating Reserve (non-HOME-eligible portion)
Initial Debt Service Reserve (not HOME eligible) need data need data Initial Replacement Reserve (not HOME eligible) need data need data need data need data
need data need data
Project Administration and Management Costs
Marketing/Management $5,000 $114 $0
Operating Expenses need data need data
Furniture, Fixtures & Equipment $0 need data need data
Tenant Relocation Costs $0 need data need data
Prevailing Wage Compliance $100,000 $2,273 $2
need data need data
Other Development Costs
need data need data
need data need data
need data need data
need data need data
need data need data
need data need data
Total Development Costs $32,673,528
Construction Loan Amount
Interest Rate
Estimated First Draw Amount
Months of Construction
Months Const. Loan Outstanding After Completion
Average Outstanding Balance
Interest on first draw, during construction period $0
Interest on remaining funds, during construction $0
Construction interest after completion $0
Total Construction Interest $0
Notes:
Construction Contingency is 4.9%
General Requirements is 1.9% of construction costs
Builder’s Overhead is 5.6% of construction costs
Builder Profit is 6.5% of construction costs
Construction Interest Calculation
$20,378,457 Construction Costs before Contractor Compensation $950,000 Construction Contingency
$380,000 General Requirements
$1,140,000 Builder’s Overhead
$1,330,000 Builder Profit
$30,399,019 Developer Fee Base
$2,200,000 Developer's Fee
Developer's Fee is 7.2% of total development cost (excluding developer fee and initial reserves)