ATTACHMENT B:
Developer Request Letter
6/24/25
Ariel Tolefree-Williams & Jay Virata
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA. 92262
RE: Affordable Housing Project being proposed at McCarthy and San Rafael, Palm Springs, Ca. Funding Request – +/- 5 Acres APN(s) 669-420-011, 012 & 014 Dear Ariel and Jay,
As you are aware my firm, Pacific West Communities, Inc., has been working on the above-mentioned project for the last 5 months. To date we have completed a pre-application with the City Planning Department. Design is ongoing and we are working on finalizing plans for our first formal submittal to the City within the next 30 days. As discussed early on in our conversations, this development will need funding from the City to be competitive in the 4% tax exempt bond funding cycle. To date we envision around 110-120 units on this site. In order for us to proceed we respectfully request $2,250,000 as a loan to purchase the land. The loan will have a term of 55 years at 3% interest and will be paid back out of the project’s residual receipts. We also request that the City impact fees are lent to the project with the same structure. We are happy to provide the City with anything you need to evaluate our request. Please contact me to further discuss (949)599-6069. We look forward to working with you.
Thank you,
Darren Berberian
McCarthy & San Rafael
A 115-Unit Affordable Housing Community
Palm Springs, CA
Financial Pro Forma
September 7, 2025
Prepared By:
Caleb Roope
[email protected]
Pacific West Communities, Inc.
430 East State Street, Suite 100
Eagle, ID 83616
208.461.0022 x 3015
9/7/2025
DEVELOPMENT BUDGET
McCarthy & San Rafael
Palm Springs, CA
Project Cost Per Cost Per Tax Credit
Costs Unit Res. Sq. Ft. Eligible Basis
Total Land Costs 2,250,000$ 19,565$ 24.82$ XXXXXXXXXX Total Building Acquisition Costs -$ -$ - $ - $ Construction Costs
Off-Site Work -$ -$ -$ -$ Commercial Space -$ -$ -$ XXXXXXXXXX On Site Work 3,450,000$ 30,000$ 38.06$ 3,450,000$ Structures 22,840,240$ 198,611$ 251.94$ 22,840,240$ General Requirements 1,577,414$ 13,717$ 17.40$ 1,577,414$ Contractor Overhead 557,353$ 4,847$ 6.15$ 557,353$ Contractor Profit 1,672,059$ 14,540$ 18.44$ 1,672,059$ Construction Contingency 1,510,000$ 13,130$ 16.66$ 1,510,000$ Total Construction Costs 31,607,066$ 274,844 $ 348.65 $ 31,607,066$ Financing Costs
Construction Loan Interest - Series A 900,000$ 7,826$ 9.93$ 900,000$ Construction Loan Fee - Series A 112,500$ 978$ 1.24$ 112,500$ Construction Lender Costs (Legal, Etc.) 100,000$ 870$ 1.10$ 100,000$ Bond Issuer / Trustee Fees & Costs 100,000$ 870$ 1.10$ 100,000$ Permanent Loan Fees 74,000$ 643$ 0.82$ XXXXXXXXXX Permanent Loan Costs 50,000$ 435$ 0.55$ XXXXXXXXXX Tax Credit Fees 74,310$ 646$ 0.82$ XXXXXXXXXX Bond Counsel, Financial Advisor, Etc. 80,000$ 696$ 0.88$ XXXXXXXXXX Series B & Taxable Interest & Fees 2,460,000$ 21,391$ 27.14$ 2,460,000$ Total Financing Costs 3,950,810 $ 34,355 $ 43.58 $ 3,672,500$ Soft Costs
Architectural 750,000$ 6,522$ 8.27$ 750,000$ Engineering/Surveying/Environmental 400,000$ 3,478$ 4.41$ 400,000$ Taxes During Construction 80,000$ 696$ 0.88$ 80,000$ Insurance 474,100$ 4,123$ 5.23$ 474,100$ Title & Recording 80,000$ 696$ 0.88$ 80,000$ Borrower Attorney 80,000$ 696$ 0.88$ 80,000$ Appraisal 15,000$ 130$ 0.17$ 15,000$ Local Tap, Building Permit, & Impact Fees4,625,000$ 40,217$ 51.02$ 4,625,000$ Marketing & Lease-Up 146,310$ 1,272$ 1.61$ XXXXXXXXXX Relocation Costs -$ -$ -$ XXXXXXXXXX Furnishings 50,000$ 435$ 0.55$ 50,000$ Cost Certification 15,000$ 130$ 0.17$ 15,000$ Market Study 10,000$ 87$ 0.11$ 10,000$ Soft Cost Contingency 900,000$ 7,826$ 9.93$ 900,000$ Developer Overhead & Fees 6,413,799$ 55,772$ 70.75$ 6,413,799$ Consultant Fee -$ -$ -$ -$ Total Soft Costs 14,039,209 $ 122,080 $ 154.86 $ 13,892,899$ Post Construction Interest & Reserves
Post Construction Interest - Series A 650,000$ 5,652$ 7.17$ XXXXXXXXXX Post Construction Interest - Series B -$ -$ -$ XXXXXXXXXX Operating Reserve 424,575$ 3,692$ 4.68$ XXXXXXXXXX Total Post Construction Interest & Reserves 1,074,575$ 9,344 $ 11.85 $ XXXXXXXXXX Totals 52,921,660$ 460,188$ 583.76$ 49,172,465$ 9/7/2025
Tax Credit Financing 2,276,246$ Total Tax Credit Financing 22,762,461 $ Tax-Exempt Bonds - Series B 7,000,000$ Tax-Exempt Bonds - Series A 14,800,000 $ City of Palm Springs Land Loan 2,250,000$ Tax-Exempt Bonds - Series B 7,000,000 $ City of Palm Springs Fee Loan 2,500,000$ City of Palm Springs Land Loan 2,250,000 $ Other - $ City of Palm Springs Fee Loan 2,500,000$ Other - $ Other - $
Deferred Costs 1,074,575 $ Other - $
Deferred Developer Fee 6,413,799$ Other - $
Taxable Bonds 16,407,040 $ Other - $
Tax-Exempt Bonds - Series A 15,000,000$ Deferred Developer Fee 3,609,199 $ Total Sources of Funds 52,921,660$ Total Sources of Funds 52,921,660$ Total Land Costs 2,250,000 $ Total Land Costs 2,250,000 $ Total Building Acquisition Costs -$ Total Building Acquisition Costs - $ Construction Costs 30,097,066$ Construction Costs 30,097,066 $ Construction Contingency 1,510,000$ Construction Contingency 1,510,000 $ Financing Costs 3,950,810 $ Financing Costs 3,950,810 $ Architecture & Engineering 1,150,000$ Architecture & Engineering 1,150,000 $ Other Soft Costs 5,575,410 $ Other Soft Costs 5,575,410 $ Developer Fees 6,413,799 $ Developer Fees 6,413,799 $ Soft Cost Contingency 900,000$ Soft Cost Contingency 900,000 $ Post Construction Interest & Reserves 1,074,575$ Post Construction Interest & Reserves 1,074,575$ Total Uses of Funds 52,921,660$ Total Uses of Funds 52,921,660$ Sources of FundsSources of Funds
Uses of Funds Uses of Funds
SOURCES & USES
McCarthy & San Rafael
Palm Springs, CA
CONSTRUCTION PHASE PERMANENT PHASE
FINANCING & COMPLIANCE DETAILS9/7/2025
McCarthy & San Rafael
Palm Springs, CA
PERMANENT FINANCING
Total Project Costs 52,921,660 $
Tax Credit Financing
Tax Credit Eligible Basis 49,172,465$
Less: Grant Proceeds & Other Exclusions -$
Voluntary Basis Reduction -$
Requested Eligible Basis 49,172,465$
Difficult to Develop Bonus (Yes - 130%, No - 100%) 130% Total Adjusted Eligible Basis 63,924,205$
Times % of Affordable Units or Square Feet 100.00%
Qualified Basis Eligible to Receive Tax Credits 63,924,205$ Less Voluntary Credit Reduction 0.00% -$ 63,924,205$ Federal Credits State Credits
Times Credit % Floor 4.00% 30.00%
Times Number of Years 10 1
Total Tax Credits 25,569,680$ + 2,140,000$ = 27,709,680$ Syndicated at an Investment Rate of99.99% at a Price of 0.8215$ Credit Price $0.82 $0.84
Equals Tax Credit Equity Proceeds 22,762,461$
Total Tax Credit Financing 43.01% (22,762,461)$
Tax-Exempt Bonds - Series A 27.97% (14,800,000)$
Tax-Exempt Bonds - Series B 13.23% (7,000,000)$
City of Palm Springs Land Loan 4.25% (2,250,000)$
City of Palm Springs Fee Loan 4.72% (2,500,000)$
Other 0.00% -$
Deferred Developer Fee 6.82% (3,609,199)$
Financing Shortfall / (Overage) 0.00% -$
Max. HOME - No Davis Bacon HOME Units# Max. Subsidy Total Limit Max. HOME Units 0 1-Bedroom 0 -$ -$ -$ Ratio to Tot. Units 0.00% 2-Bedroom0 -$ -$ Loan Amount Tot. Project Costs 52,921,660$ 3-Bedroom 0 -$ -$ -$ HOME Loan -$ 4-Bedroom 0 -$ -$ O.K.
Construction Financing
Riverside Tax Credit Financing 2,276,246$
Unit Number County Basis Tax-Exempt Bonds - Series B 7,000,000$ Size of Units Limits Totals City of Palm Springs Land Loan2,250,000$ S 0 - $ -$ City of Palm Springs Fee Loan 2,500,000$ 1 56 374,708$ 20,983,648$ Other -$ 2 29 452,000$ 13,108,000$ Other -$ 3 30 578,560$ 17,356,800$ Deferred Costs 1,074,575$ Base Limit 51,448,448$ Deferred Developer Fee 6,413,799$ Base Limit Plus Adjustments55,473,448$ Taxable Bonds 16,407,040$ Requested Eligible Basis49,172,465$ Tax-Exempt Bonds - Series A 15,000,000$ % Below / (Above) Cost Limit11.3586% Total Project Costs 52,921,660$ Subsidy by Type
Compliance with LIHTC Eligible Basis Limits
OPERATING & LOAN DETAILS
Project: McCarthy & San Rafael Location: Palm Springs, CA 9/7/2025 AMI Numbe r Avg. Unit Gross Utility Net Monthly Annual
Type Rent Level of Units Sq. Ft. Rent Allowance Rent Totals Totals Studio 30% 0 000 0 0 0
Studio 50% 0 000 0 0 0
Studio 60% 0 000 0 0 0
Studio 80% 0 000 0 0 0
1BR/1BA 30% 20 582 629 30 599 11,980 143,760
1BR/1BA 50% 18 582 1,049 30 1,019 18,342 220,104
1BR/1BA 60% 4 582 1,259 30 1,229 4,916 58,992
1BR/1BA 80% 14 582 1,679 30 1,649 23,086 277,032
2BR/1BA 30% 8 757 755 40 715 5,720 68,640
2BR/1BA 50% 5 757 1,258 40 1,218 6,090 73,080
2BR/1BA 60% 1 757 1,510 40 1,470 1,470 17,640
2BR/1BA 80% 14 757 2,014 40 1,974 27,636 331,632
3BR/2BA 30% 1 1,034 873 50 823 823 9,876
3BR/2BA 50% 1 1,034 1,455 50 1,405 1,405 16,860
3BR/2BA 60% 1 1,034 1,746 50 1,696 1,696 20,352
3BR/2BA 80% 27 1,034 2,328 50 2,278 61,506 738,072
2BR/1BA Manager's 1 757 0 0 00 0
Total Units & Sq. Ft. 115 85,565 % of Sq. Ft. % of Units 164,670 $ 1,976,040 $ Community Facilities & Common Areas 5,091 Affordable Affordable Total Project Sq. Ft. 90,656 100.00% 100.00%
Total Annual Rental Income 1,976,040$
Operating Deficit Guarantee
10% of Perm. 1,480,000$ Other Income
Year 1 Op. Exp. 690,000$ Resident Charges 150$ 17,250$ Guarantee 1,480,000$ Commercian Income (Net of Vacancy) -$ -$ Total Annual Other Income 17,250 $
Replacement Reserves Total Annual Potential Gross Income 1,993,290$ Standard/Unit 250$ Vacancy & Collection Loss 5% (99,665)$ UMR Min/Unit 600$
Reserve / Unit 250$ Annual Effective Gross Income 1,893,625$ Project Unit Mix
Unit Type Numbe r % of Total
Studio 0 0.00%
1 Bdrm./1 Bath. 56 48.70%
2 Bdrm./1 Bath. 29 25.22%
3 Bdrm./2 Bath. 30 26.09%
Totals 115 100.01%
Unit Type Numbe
r % of Units Factor
30% 29 25.44% 0.08
50% 24 21.05% 0.11
60% 6 5.26% 0.03
80% 55 48.25% 0.39
59.91%
Average Affordability
Average Affordability
OPERATING & LOAN DETAILS (continued)
Project: McCarthy & San Rafael Location: Palm Springs, CA 9/7/2025 ANNUAL EXPENSES % of Annual % of Total
EGI Operating Exp. Per Unit Total
Real Estate Taxes & Special Assessments 0.54% 1.48% 89.00 $ 10,200 $ State Taxes 0.04% 0.12% 7.00 $ 800$
Insurance 3.34% 9.17% 550.00 $ 63,250 $
Licenses 0.02% 0.05% 3.00 $ 350$
Fuel & Gas 0.00% 0.00% -$ - $
Electricity 1.17% 3.22% 193.00$ 22,200 $
Water & Sewer 4.49% 12.34% 740.00$ 85,100 $
Trash Removal 2.01% 5.50% 330.00$ 38,000 $
Pest Control 0.11% 0.29% 17.00 $ 2,000 $
Building & Maintenance Repairs 1.71% 4.70% 282.00$ 32,400 $ Building & Maintenance Supplies 0.90% 2.48% 149.00$ 17,100 $ Supportive Services 0.79% 2.17% 130.00 $ 15,000$ Annual Issuer & Trustee Fees 0.58% 1.58% 95.00 $ 10,900$ Gardening & Landscaping 1.21% 3.34% 200.00$ 23,000 $ Management Fee 3.50% 9.52% 571.00$ 65,700 $
On-Site Manager(s) 5.82% 15.98% 959.00 $ 110,240 $ Other Payroll 3.83% 10.50% 630.00$ 72,500 $
Manager's Unit Expense 0.00% 0.00% - $ -$
Cleaning Supplies 0.05% 0.15% 9.00$ 1,000 $ Benefits 1.63% 4.49% 269.00 $ 30,960 $
Payroll Taxes & Work Comp 1.71% 4.69% 281.00 $ 32,350 $ Advertising 0.01% 0.03% 2.00$ 200 $
Telephone 0.32% 0.87% 52.00 $ 6,000$
Legal & Accounting 0.42% 1.16% 70.00 $ 8,000$ Operating Reserves 0.00% 0.00% - $ -$
Office Supplies & Expense 0.26% 0.72% 43.00 $ 5,000$ Miscellaneous Administrative 0.48% 1.28% 79.00 $ 9,000 $ Replacement Reserves 1.52% 4.17% 250.00 $ 28,750 $ Annual Expenses - Per Unit & Total 6,000$ 690,000$ Annual Net Operating Income - Per Unit & Total 10,466$ 1,203,625$
PERMANENT DEBT ANALYSIS
LTV Restricted Loan Amounts DSC Ratio Restricted Loan Amounts Cap Rate 8.500% 9.000% 9.500% ** ** Fixed Loan
Loan-To-Value Restriction 90% 90% 90% ** ** Amount
Debt Service Coverage 1.39 1.47 1.55 1.15 1.20 1.19
Loan Amount 12,744,265$ 12,036,250 $ 11,402,763 $ 15,362,537 $ 14,722,431 $ 14,800,000$ Constant ** ** ** 0.068129 0.068129 0.068129
Interest Rate 6.250% 6.250% 6.250% 6.250% 6.250% 6.250% Amortization Period in Years 40 40 40 40 40 40
Annual Debt Service 868,251$ 820,015 $ 776,856 $ 1,046,630$ 1,003,021 $ 1,008,300 $ Annual Cash Flow 335,374$ 383,610 $ 426,769 $ 156,995 $ 200,604 $ 195,325 $ Loan Selection x
McCarthy & San Rafael Palm Springs, CA 9/7/2025
Multi-Year Stabilized Operating Pro-Forma
Net Rent / No. of Annual Year Year Year Year Year
RENTAL INCOME % AMI Unit - Year 1Units Increase 1 2 3 4 5 Studio 30% 0 0 2.5% - - - - - Studio 50% 0 0 2.5% - - - - - Studio 60% 0 0 2.5% - - - - - Studio 80% 0 0 2.5% - - - - - 1BR/1BA 30% 599 20 2.5% 143,760 147,354 151,038 154,814 158,684 1BR/1BA 50% 1,019 18 2.5% 220,104 225,607 231,247 237,028 242,954 1BR/1BA 60% 1,229 4 2.5% 58,992 60,467 61,978 63,528 65,116 1BR/1BA 80% 1,649 14 2.5% 277,032 283,958 291,057 298,333 305,791 2BR/1BA 30% 715 8 2.5% 68,640 70,356 72,115 73,918 75,766 2BR/1BA 50% 1,218 5 2.5% 73,080 74,907 76,780 78,699 80,667 2BR/1BA 60% 1,470 1 2.5% 17,640 18,081 18,533 18,996 19,471 2BR/1BA 80% 1,974 14 2.5% 331,632 339,923 348,421 357,131 366,060 3BR/2BA 30% 823 1 2.5% 9,876 10,123 10,376 10,635 10,901 3BR/2BA 50% 1,405 1 2.5% 16,860 17,282 17,714 18,156 18,610 3BR/2BA 60% 1,696 1 2.5% 20,352 20,861 21,382 21,917 22,465 3BR/2BA 80% 2,278 27 2.5% 738,072 756,524 775,437 794,823 814,693 2BR/1BA Manager's 0 1 2.5% - - - - - TOTAL RENTAL INCOME 115 1,976,040 2,025,441 2,076,077 2,127,979 2,181,178 OTHER INCOME Units Incr./Yr. Year-1 Year-2 Year-3 Year-4 Year-5 Resident Charges 115 2.5% 17,250 17,681 18,123 18,576 19,041 Commercian Income (Net of Vacancy) 115 2.5% - - - - - TOTAL OTHER INCOME 17,250 17,681 18,123 18,576 19,041 TOTAL INCOME 1,993,290 2,043,122 2,094,200 2,146,555 2,200,219 Less Vacancy Allowance 5% (99,665) (102,156) (104,710) (107,328) (110,011) GROSS INCOME 1,893,625 1,940,966 1,989,490 2,039,227 2,090,208 OPERATING EXPENSES Per Unit - Yr. 1%EGI Incr./Yr. Year-1 Year-2 Year-3 Year-4 Year-5 Advertising 2 $ 0.0% 3.5% 200 207 214 222 230 Legal 17 $ 0.1% 3.5% 2,000 2,070 2,142 2,217 2,295 Accounting/Audit 52 $ 0.3% 3.5% 6,000 6,210 6,427 6,652 6,885 Security - $ 0.0% 3.5% - - - - - Other: Telephone, Office Expense, Misc. 174 $ 1.1% 3.5% 20,000 20,700 21,425 22,174 22,950 Management Fee 571 $ 3.5% 3.5% 65,700 68,000 70,379 72,843 75,392 Fuel 2 $ 0.0% 3.5% 200 207 214 222 230 Gas (2) $ 0.0% 3.5% (200) (207) (214) (222) (230) Electricity 193 $ 1.2% 3.5% 22,200 22,977 23,781 24,614 25,475 Water/Sewer 740 $ 4.5% 3.5% 85,100 88,079 91,161 94,352 97,654 On-Site Manager 959 $ 5.8% 3.5% 110,240 114,098 118,092 122,225 126,503 Maintenance Personnel 630 $ 3.8% 3.5% 72,500 75,038 77,664 80,382 83,195 Other: Payroll Taxes, Work Comp, Benefits 551 $ 3.3% 3.5% 63,310 65,526 67,819 70,193 72,650 Insurance 550 $ 3.3% 3.5% 63,250 65,464 67,755 70,126 72,581 Painting 50 $ 0.3% 3.5% 5,750 5,951 6,160 6,375 6,598 Repairs 232 $ 1.4% 3.5% 26,650 27,583 28,548 29,547 30,581 Trash Removal 330 $ 2.0% 3.5% 38,000 39,330 40,707 42,131 43,606 Exterminating 17 $ 0.1% 3.5% 2,000 2,070 2,142 2,217 2,295 Grounds 200 $ 1.2% 3.5% 23,000 23,805 24,638 25,501 26,393 Elevator - $ 0.0% 3.5% - - - - - Other: Cleaning & Building Supplies 157 $ 1.0% 3.5% 18,100 18,734 19,389 20,068 20,770 Other: Licenses 3 $ 0.0% 3.5% 350 362 375 388 402 Other: State Tax 7 $ 0.0% 3.5% 800 828 857 887 918 Other: Issuer / Trustee Fees 95 $ 0.6% 3.5% 10,900 11,282 11,676 12,085 12,508 Other: - $ 0.0% 3.5% - - - - - Other: -$ 0.0% 3.5% - - - - - TOTAL OPERATING EXPENSES 5,531$ 636,050 658,312 681,353 705,200 729,882 Internet Expense - $ 0.0% 3.5% - - - - - Service Amenities 130 $ 0.8% 3.5% 15,000 15,525 16,068 16,631 17,213 Reserve for Replacement 250 $ 1.5% 0.0% 28,750 28,750 28,750 28,750 28,750 Real Estate Taxes 89$ 0.5% 2.0% 10,200 10,404 10,612 10,824 11,041 TOTAL EXPENSES, TAXES & RESERVES 6,000$ 690,000 712,991 736,783 761,405 786,886 CASH FLOW AVAILABLE FOR DEBT SERVICE 1,203,625 1,227,976 1,252,707 1,277,822 1,303,323 DEBT SERVICE & OTHER DISTRIBUTIONS Loan Amount Year-1 Year-2 Year-3 Year-4 Year-5 Tax-Exempt Bonds - Series A Hard 14,800,000$ 1,008,300 1,008,300 1,008,300 1,008,300 1,008,300 Other NA -$ - - - - - Asset Management Fees Soft 19,000$ 19,000 19,000 19,000 19,000 19,000 Deferred Developer Fee Soft 3,609,199$ 44,081 50,169 56,352 62,630 69,006 Tax-Exempt Bonds - Series B Soft 7,000,000$ 132,244 150,507 169,055 187,892 207,017 City of Palm Springs Land Loan Soft 2,250,000$ - - - - - City of Palm Springs Fee Loan Soft 2,500,000$ - - - - - Other Soft -$ - - - - -
ANNUAL NET CASH FLOW - - - - - Deferred Dev. Fee Balance Interest Rate: 0.00% 3,565,118 3,514,950 3,458,598 3,395,968 3,326,962 Debt Service Coverage Ratio on Hard Debt 1.19 1.22 1.24 1.27 1.29 McCarthy & San Rafael Palm Springs, CA
Multi-Year Stabilized Operating Pro-Forma
Net Rent / No. of Annual
RENTAL INCOME % AMI Unit - Year 1Units Increase
Studio 30% 0 0 2.5%
Studio 50% 0 0 2.5%
Studio 60% 0 0 2.5%
Studio 80% 0 0 2.5%
1BR/1BA 30% 599 20 2.5%
1BR/1BA 50% 1,019 18 2.5%
1BR/1BA 60% 1,229 4 2.5%
1BR/1BA 80% 1,649 14 2.5%
2BR/1BA 30% 715 8 2.5%
2BR/1BA 50% 1,218 5 2.5%
2BR/1BA 60% 1,470 1 2.5%
2BR/1BA 80% 1,974 14 2.5%
3BR/2BA 30% 823 1 2.5%
3BR/2BA 50% 1,405 1 2.5%
3BR/2BA 60% 1,696 1 2.5%
3BR/2BA 80% 2,278 27 2.5%
2BR/1BA Manager's 0 1 2.5%
TOTAL RENTAL INCOME 115
OTHER INCOME Units Incr./Yr.
Resident Charges 115 2.5%
Commercian Income (Net of Vacancy) 115 2.5%
TOTAL OTHER INCOME
TOTAL INCOME
Less Vacancy Allowance 5%
GROSS INCOME
OPERATING EXPENSES Per Unit - Yr. 1%EGI Incr./Yr.
Advertising 2 $ 0.0% 3.5%
Legal 17 $ 0.1% 3.5%
Accounting/Audit 52 $ 0.3% 3.5%
Security - $ 0.0% 3.5%
Other: Telephone, Office Expense, Misc. 174 $ 1.1% 3.5% Management Fee 571 $ 3.5% 3.5%
Fuel 2 $ 0.0% 3.5%
Gas (2) $ 0.0% 3.5%
Electricity 193 $ 1.2% 3.5%
Water/Sewer 740 $ 4.5% 3.5%
On-Site Manager 959 $ 5.8% 3.5%
Maintenance Personnel 630 $ 3.8% 3.5%
Other: Payroll Taxes, Work Comp, Benefits 551 $ 3.3% 3.5% Insurance 550 $ 3.3% 3.5%
Painting 50 $ 0.3% 3.5%
Repairs 232 $ 1.4% 3.5%
Trash Removal 330 $ 2.0% 3.5%
Exterminating 17 $ 0.1% 3.5%
Grounds 200 $ 1.2% 3.5%
Elevator - $ 0.0% 3.5%
Other: Cleaning & Building Supplies 157 $ 1.0% 3.5% Other: Licenses 3 $ 0.0% 3.5%
Other: State Tax 7 $ 0.0% 3.5%
Other: Issuer / Trustee Fees 95 $ 0.6% 3.5% Other: - $ 0.0% 3.5%
Other: -$ 0.0% 3.5%
TOTAL OPERATING EXPENSES 5,531$
Internet Expense - $ 0.0% 3.5%
Service Amenities 130 $ 0.8% 3.5%
Reserve for Replacement 250 $ 1.5% 0.0%
Real Estate Taxes 89$ 0.5% 2.0%
TOTAL EXPENSES, TAXES & RESERVES 6,000$
CASH FLOW AVAILABLE FOR DEBT SERVICE
DEBT SERVICE & OTHER DISTRIBUTIONS Loan Amount
Tax-Exempt Bonds - Series A Hard 14,800,000$
Other NA -$
Asset Management Fees Soft 19,000$
Deferred Developer Fee Soft 3,609,199$
Tax-Exempt Bonds - Series B Soft 7,000,000$
City of Palm Springs Land Loan Soft 2,250,000$
City of Palm Springs Fee Loan Soft 2,500,000$
Other Soft -$
ANNUAL NET CASH FLOW
Deferred Dev. Fee Balance Interest Rate: 0.00%
Debt Service Coverage Ratio on Hard Debt
Year Year Year Year Year
6 7 8 9 10
- - - - - - - - - - - - - - - - - - - - 162,651 166,718 170,885 175,158 179,537 249,027 255,253 261,634 268,175 274,880 66,744 68,413 70,123 71,876 73,673 313,436 321,272 329,304 337,537 345,975 77,660 79,601 81,591 83,631 85,722 82,683 84,750 86,869 89,041 91,267 19,958 20,457 20,968 21,493 22,030 375,211 384,591 394,206 404,061 414,163 11,174 11,453 11,739 12,033 12,334 19,076 19,552 20,041 20,542 21,056 23,026 23,602 24,192 24,797 25,417 835,061 855,937 877,336 899,269 921,751 - - - - - 2,235,708 2,291,601 2,348,891 2,407,613 2,467,803 Year-6 Year-7 Year-8 Year-9 Year-10
19,517 20,005 20,505 21,017 21,543 - - - - - 19,517 20,005 20,505 21,017 21,543 2,255,225 2,311,605 2,369,395 2,428,630 2,489,346 (112,761) (115,580) (118,470) (121,432) (124,467) 2,142,464 2,196,025 2,250,925 2,307,198 2,364,879 Year-6 Year-7 Year-8 Year-9 Year-10
238 246 254 263 273 2,375 2,459 2,545 2,634 2,726 7,126 7,376 7,634 7,901 8,177 - - - - - 23,754 24,585 25,446 26,336 27,258 78,031 80,762 83,589 86,514 89,542 238 246 254 263 273 (238) (246) (254) (263) (273) 26,367 27,289 28,245 29,233 30,256 101,072 104,610 108,271 112,060 115,983 130,931 135,513 140,256 145,165 150,246 86,107 89,121 92,240 95,469 98,810 75,192 77,824 80,548 83,367 86,285 75,121 77,750 80,472 83,288 86,203 6,829 7,068 7,316 7,572 7,837 31,652 32,760 33,906 35,093 36,321 45,132 46,712 48,347 50,039 51,790 2,375 2,459 2,545 2,634 2,726 27,317 28,273 29,262 30,287 31,347 - - - - - 21,497 22,250 23,028 23,834 24,668 416 430 445 461 477 950 983 1,018 1,053 1,090 12,946 13,399 13,868 14,353 14,856 - - - - - - - - - - 755,428 781,868 809,233 837,556 866,871 - - - - - 17,815 18,439 19,084 19,752 20,443 28,750 28,750 28,750 28,750 28,750 11,262 11,487 11,717 11,951 12,190 813,255 840,544 868,784 898,009 928,254 1,329,209 1,355,482 1,382,141 1,409,189 1,436,625 Year-6 Year-7 Year-8 Year-9 Year-10
1,008,300 1,008,300 1,008,300 1,008,300 1,008,300 - - - - - 19,000 19,000 19,000 19,000 19,000 75,477 82,046 88,710 95,472 102,331 226,432 246,136 266,131 286,417 306,994 - - - - - - - - - - - - - - - - - - - - 3,251,485 3,169,439 3,080,729 2,985,257 2,882,926
1.32 1.34 1.37 1.40 1.43
McCarthy & San Rafael Palm Springs, CA
Multi-Year Stabilized Operating Pro-Forma
Net Rent / No. of Annual
RENTAL INCOME % AMI Unit - Year 1Units Increase
Studio 30% 0 0 2.5%
Studio 50% 0 0 2.5%
Studio 60% 0 0 2.5%
Studio 80% 0 0 2.5%
1BR/1BA 30% 599 20 2.5%
1BR/1BA 50% 1,019 18 2.5%
1BR/1BA 60% 1,229 4 2.5%
1BR/1BA 80% 1,649 14 2.5%
2BR/1BA 30% 715 8 2.5%
2BR/1BA 50% 1,218 5 2.5%
2BR/1BA 60% 1,470 1 2.5%
2BR/1BA 80% 1,974 14 2.5%
3BR/2BA 30% 823 1 2.5%
3BR/2BA 50% 1,405 1 2.5%
3BR/2BA 60% 1,696 1 2.5%
3BR/2BA 80% 2,278 27 2.5%
2BR/1BA Manager's 0 1 2.5%
TOTAL RENTAL INCOME 115
OTHER INCOME Units Incr./Yr.
Resident Charges 115 2.5%
Commercian Income (Net of Vacancy) 115 2.5%
TOTAL OTHER INCOME
TOTAL INCOME
Less Vacancy Allowance 5%
GROSS INCOME
OPERATING EXPENSES Per Unit - Yr. 1%EGI Incr./Yr.
Advertising 2 $ 0.0% 3.5%
Legal 17 $ 0.1% 3.5%
Accounting/Audit 52 $ 0.3% 3.5%
Security - $ 0.0% 3.5%
Other: Telephone, Office Expense, Misc. 174 $ 1.1% 3.5% Management Fee 571 $ 3.5% 3.5%
Fuel 2 $ 0.0% 3.5%
Gas (2) $ 0.0% 3.5%
Electricity 193 $ 1.2% 3.5%
Water/Sewer 740 $ 4.5% 3.5%
On-Site Manager 959 $ 5.8% 3.5%
Maintenance Personnel 630 $ 3.8% 3.5%
Other: Payroll Taxes, Work Comp, Benefits 551 $ 3.3% 3.5% Insurance 550 $ 3.3% 3.5%
Painting 50 $ 0.3% 3.5%
Repairs 232 $ 1.4% 3.5%
Trash Removal 330 $ 2.0% 3.5%
Exterminating 17 $ 0.1% 3.5%
Grounds 200 $ 1.2% 3.5%
Elevator - $ 0.0% 3.5%
Other: Cleaning & Building Supplies 157 $ 1.0% 3.5% Other: Licenses 3 $ 0.0% 3.5%
Other: State Tax 7 $ 0.0% 3.5%
Other: Issuer / Trustee Fees 95 $ 0.6% 3.5% Other: - $ 0.0% 3.5%
Other: -$ 0.0% 3.5%
TOTAL OPERATING EXPENSES 5,531$
Internet Expense - $ 0.0% 3.5%
Service Amenities 130 $ 0.8% 3.5%
Reserve for Replacement 250 $ 1.5% 0.0%
Real Estate Taxes 89$ 0.5% 2.0%
TOTAL EXPENSES, TAXES & RESERVES 6,000$
CASH FLOW AVAILABLE FOR DEBT SERVICE
DEBT SERVICE & OTHER DISTRIBUTIONS Loan Amount
Tax-Exempt Bonds - Series A Hard 14,800,000$
Other NA -$
Asset Management Fees Soft 19,000$
Deferred Developer Fee Soft 3,609,199$
Tax-Exempt Bonds - Series B Soft 7,000,000$
City of Palm Springs Land Loan Soft 2,250,000$
City of Palm Springs Fee Loan Soft 2,500,000$
Other Soft -$
ANNUAL NET CASH FLOW
Deferred Dev. Fee Balance Interest Rate: 0.00%
Debt Service Coverage Ratio on Hard Debt
Year Year Year Year Year
11 12 13 14 15
- - - - - - - - - - - - - - - - - - - - 184,025 188,626 193,341 198,175 203,129 281,752 288,796 296,015 303,416 311,001 75,515 77,403 79,338 81,321 83,354 354,624 363,490 372,577 381,892 391,439 87,865 90,062 92,313 94,621 96,987 93,549 95,887 98,284 100,742 103,260 22,581 23,145 23,724 24,317 24,925 424,517 435,130 446,008 457,158 468,587 12,642 12,958 13,282 13,614 13,955 21,582 22,122 22,675 23,242 23,823 26,052 26,704 27,371 28,055 28,757 944,795 968,414 992,625 1,017,440 1,042,876 - - - - - 2,529,498 2,592,736 2,657,554 2,723,993 2,792,093 Year-11 Year-12 Year-13 Year-14 Year-15
22,081 22,633 23,199 23,779 24,374 - - - - - 22,081 22,633 23,199 23,779 24,374 2,551,580 2,615,369 2,680,753 2,747,772 2,816,467 (127,579) (130,768) (134,038) (137,389) (140,823) 2,424,001 2,484,601 2,546,715 2,610,383 2,675,644 Year-11 Year-12 Year-13 Year-14 Year-15
282 292 302 313 324 2,821 2,920 3,022 3,128 3,237 8,464 8,760 9,066 9,384 9,712 - - - - - 28,212 29,199 30,221 31,279 32,374 92,676 95,920 99,277 102,752 106,348 282 292 302 313 324 (282) (292) (302) (313) (324) 31,315 32,411 33,546 34,720 35,935 120,042 124,243 128,592 133,093 137,751 155,504 160,947 166,580 172,411 178,445 102,268 105,848 109,552 113,387 117,355 89,305 92,431 95,666 99,014 102,480 89,220 92,343 95,575 98,920 102,382 8,111 8,395 8,689 8,993 9,307 37,592 38,908 40,270 41,679 43,138 53,603 55,479 57,421 59,430 61,510 2,821 2,920 3,022 3,128 3,237 32,444 33,579 34,755 35,971 37,230 - - - - - 25,532 26,425 27,350 28,308 29,298 494 511 529 547 567 1,128 1,168 1,209 1,251 1,295 15,376 15,914 16,471 17,047 17,644 - - - - - - - - - - 897,211 928,614 961,115 994,754 1,029,571 - - - - - 21,159 21,900 22,666 23,459 24,280 28,750 28,750 28,750 28,750 28,750 12,434 12,682 12,936 13,195 13,459 959,554 991,946 1,025,467 1,060,158 1,096,060 1,464,447 1,492,656 1,521,248 1,550,225 1,579,584 Year-11 Year-12 Year-13 Year-14 Year-15
1,008,300 1,008,300 1,008,300 1,008,300 1,008,300 - - - - - 19,000 19,000 19,000 19,000 19,000 109,287 116,339 123,487 130,731 138,071 327,860 349,017 370,461 392,194 414,213 - - - - - - - - - - - - - - - - - - - - 2,773,639 2,657,300 2,533,813 2,403,082 2,265,011
1.45 1.48 1.51 1.54 1.57