Option 1: Design • 15 Units (No community room/no manager onsite)
• Possible Populations: Mod Income
Farmworker/workforce housing
• Plus Laundry Room (500 sf) • 21 Parking Spaces • Unit Size: 550 sf • Craftsman and Ranch Style Alternating • Maintenance Shed: 500 sf Development
Options
For 498 Alta Street,
Gonzales, CA
October 3, 2024
Option 1 Budget
Development
Budget
Land/Acq: $50,000
Hard Costs $4,087,145
Const Cost/Unit $272,476
Soft Costs $1,301,143
Total Development $5,438,288
Costs
TDC/Unit $362,552
Sources Amount Terms
Construction
Const. Loan $3.1M 9.5%, 70%LTC, 18 mnth
Land cont. Fee Deferral,
Investment
Private Ag/City $2M
Permanent
Loan $2.3M 6.5% 10 yr, 25 amort
Resident Ag/mod income
workforce hsg. And city
contribution
Private ag $3.1M
investor/city
Total Perm: $5.4M
sources:
Operating Budget
Gross Op Rents $331,200
Vacancy ($16,560)
Op. Exp. ($73,500)
Net Op Inc. $241,140
Debt Service at $185,492
1.3 DSCR
Rent
Subsidy?
Unit Quant Rent UA
Mix/A
MI
1BR 15 1900 60 N
Mgr 0
Option 1:
Schedule
Approvals/Permits/Financing:
1 Year
Construction Time: 1.5 Years
(includes offsites, utilities,
etc.)
Total Time: 2.5 Years
Option 2 Design
· 32 Units (Including 1 Manager’s
Unit, 2 Story, Senior/Disabled)
· 1 Bedroom Units (550 sf)
· 29 Parking Spaces
· Manager's Unit
· Community Room and Laundry
Room
Option 2 Budget
Development
Budget
Land/Acq: $440,000
Hard Costs $19,151,369
Const Cost/Unit $598,480
Soft Costs $5,745,410
Total Development $25,336,779
Costs
TDC/Unit $791,774
Sources Amount Terms
Construction
Con. Loan $14M
9% Credits $2M
HCD $1M
HUD/Home $3.9M
City $400K
Permanent
9% Credits $10M
MHP (will run out) approx. 250k/unit
(IIG/MHP)
HCD $6M
Perm Debt $5M 30 year, 6.5% int
HUD/Home $3.9M $198/unit (state) (12M cap)
City $400K
Total Perm Sources: $25.3M
Operating Budget
Gross Op Rents $684,480
Vacancy ($34,224)
Op. Exp. ($156,800)
Net Op Inc. $493,456
Debt Service at $411,213
1.2 DSCR
Rent
Subsidy?
Unit Quant Rent UA
Mix/
AMI
1BR 31 1900 60Y
Mgr100N
Option 2: Schedule
· Approvals/Permits/Financing: 5 Years
· Approval & Design
· Construction Time: 26 Months (PG&E)
· Total Time: 7.5 Years
Assumptions
· TCAC/State Financing Environment requires
2-3 Rounds before approval. Since the state
bond didn’t pass, HCD funds will soon run
out.
· PG&E/Joint Trench, Wet utilities, full
8’soundwall included in schedule/estimates
· No Water supply/credit Issues
· CEQA/Noise/Traffic
· Timing of Decision by the City
· Rental Income based on “fair market rent”
with a discount for local market conditions.
Assumes either 100% HCV or PBV.
· Option 1 is non prevailing wage
· Option 1 requires a willing financial partner
in this scenario
Questions
for the City:
• What are your RHNA Goals?
• How important is timing versus number of
units?
• What can the City of Gonzales Contribute?
• Impact/Planning/Permit fees
• Land
• Other sources
• What populations do you want to serve?
• How much political/local support can we
expect for either scenario in Gonzales?
• Next steps?