WASHINGTON AVENUE APARTMENTS
FINANCING SUMMARY
Affordability Mix # Units Net Rent
Extremely Low Income Units @20% AMI ‐ 1 BR 4 406
Extremely Low Income Units @20% AMI ‐ 2 BR 6 455
Extremely Low Income Units @20% AMI ‐ 3 BR 5 506
Extremely Low Income Units @30% AMI ‐ Studio 3 633
Extremely Low Income Units @30% AMI ‐ 1 BR 24 663
Extremely Low Income Units @30% AMI ‐ 2 BR 6 763
Extremely Low Income Units @30% AMI ‐ 3 BR 6 862
Very Low Income Units @40% AMI ‐ 1 BR 2 920
Very Low Income Units @40% AMI ‐ 2 BR 4 1,072
Very Low Income Units @40% AMI ‐ 3 BR 4 1,219
Very Low Income Units @50% AMI ‐ 1 BR 2 1,177
Very Low Income Units @50% AMI ‐ 2 BR 2 1,380
Very Low Income Units @50% AMI ‐ 3 BR 3 1,575
Manager's Units (2 BR) 1
72 Unit Mix
0 BR / 1 BA 3 4%
1 BR / 1 BA 32 44%
2 BD / 1 BA 19 26%
3 BD / 1 BA 18 25%
72 Development Budget Total Per Unit
Acquistion and Related Costs 4,229,200 58,739 Construction 40,121,253 557,240
Architecture and Engineering 1,761,600 24,467 Permits and Fees 2,460,521 34,174
Financing Costs 3,530,720 49,038
Other Soft Costs 4,892,428 67,950
56,995,722 791,607
Sources of Financing ‐ Permanent
Conventional Loan 2,374,000 32,972
HCD ‐ Multifamily Housing Program 19,763,531 274,493 County Measure A1 5,016,000 69,667
City of San Leandro 1,985,000 27,569
Accrued Defered Interest 225,416 3,131 Deferred Developer Fee 300,000 4,167 Tax Credit Contributions 27,331,775 379,608
56,995,722 791,607
WASHINGTON AVENUE APARTMENTS
USES OF FUNDS
USES OF FUNDS Total Acq/Predev. Construction Permanent
Acquisition and Related Costs 4,229,200 4,229,200 ‐ ‐ Land 3,500,000 3,500,000 Acquisition Loan and Fees 542,965 542,965 Other Costs 186,235 186,235 Construction ‐ 40,121,253 40,121,253 ‐ Demolition 205,200 205,200 Hard Costs 33,101,303 33,101,303 General Conditions 1,170,000 1,170,000 Overhead and Profit 1,283,041 1,283,041 Insurance and Bond 714,322 714,322 Owner's Construction Contingency 3,647,387 3,647,387 Architecture and Engineering 1,761,600 1,232,980 528,620 ‐ Architect 1,360,600 932,230 428,370 Engineering 401,000 300,750 100,250 Permits and Fees 2,460,521 150,000 2,310,521 ‐ Local Development Impact Fees ‐ 1,825,298 1,825,298 Local Permits 635,223 150,000 485,223 Financing Costs 3,530,720 543,907 2,986,813 ‐ Construction Loan Interest 2,278,109 2,278,109 Bond Costs of Issuance 788,177 79,473 708,704 Other Financing Fees 464,434 ‐ 464,434 Other Soft Costs 4,892,428 87,448 2,864,796 1,940,184 Insurance 139,706 ‐ 139,706 Furnishings 181,400 ‐ 181,400 Reserves 805,664 265,480 540,184 Legal Fees 120,500 50,000 ‐ 70,500 Construction Management 118,000 ‐ 118,000 Developer Fee 2,500,000 1,100,000 1,400,000 Other Soft Costs 1,027,158 37,448 989,710 TOTAL USES OF FUNDS 56,995,722 6,243,535 48,812,003 1,940,184
20-Year Cash Flow Version: 1.4.4 Feasibility w Perm Debt
Assumptions
Rent Increase: Residential Tenant Rents 2.00% Rent Increase - Section 8 2.00% Perm Loan - % Debt Svc Yr -1 0.0% Rent Increase: Commercial Rents 2.00% Rent Increase - NA 2.00% Perm Loan - % Debt Svc Yr 0 0.0% Expenses Increase: 3.00% Rent Increase - Test C 2.00% Perm Loan - % Debt Svc Yr 1 16.7% Reserve Increase: 0.00% Rent Increase - Test D 2.00% Perm Loan - % Debt Svc Yr 2 100.0% Perm Loan - % Debt Svc Yr 3 100.0%
Credit Period Year: (1) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Aggregrate Annual Rent Increase #DIV/0! 52.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% GROSS POTENTIAL INCOME - RESIDENTIAL 0 0 442,304 672,302 685,748 699,463 713,452 727,721 742,276 757,121 772,264 787,709 803,463 819,532 835,923 852,642 869,694 887,088 904,830 922,927 941,385 960,213 979,417 Incremental Income: Section 8 0 0 275,888 419,350 427,737 436,291 445,017 453,918 462,996 472,256 481,701 491,335 501,162 511,185 521,409 531,837 542,474 553,323 564,390 575,677 587,191 598,935 610,913 Misc. Income 0 0 2,304 3,502 3,572 3,644 3,716 3,791 3,867 3,944 4,023 4,103 4,185 4,269 4,354 4,441 4,530 4,621 4,713 4,808 4,904 5,002 5,102 Vacancy Loss - Residential 5.0% 0 0 (22,230) (33,790) (34,466) (35,155) (35,858) (36,576) (37,307) (38,053) (38,814) (39,591) (40,382) (41,190) (42,014) (42,854) (43,711) (44,585) (45,477) (46,387) (47,314) (48,261) (49,226) Vacancy Loss - Section 8 10.0% 0 0 (27,589) (41,935) (42,774) (43,629) (44,502) (45,392) (46,300) (47,226) (48,170) (49,134) (50,116) (51,119) (52,141) (53,184) (54,247) (55,332) (56,439) (57,568) (58,719) (59,893) (61,091) GROSS EFFECTIVE INCOME 0 0 670,677 1,019,429 1,039,817 1,060,614 1,081,826 1,103,462 1,125,532 1,148,042 1,171,003 1,194,423 1,218,312 1,242,678 1,267,531 1,292,882 1,318,740 1,345,115 1,372,017 1,399,457 1,427,446 1,455,995 1,485,115 Operating Expenses w/ Standard Inflator 3.0% 0 0 422,491 646,412 665,804 685,778 706,352 727,542 749,368 771,849 795,005 818,855 843,421 868,723 894,785 921,629 949,277 977,756 1,007,088 1,037,301 1,068,420 1,100,473 1,133,487 TOTAL EXPENSES 0 0 422,491 646,412 665,804 685,778 706,352 727,542 749,368 771,849 795,005 818,855 843,421 868,723 894,785 921,629 949,277 977,756 1,007,088 1,037,301 1,068,420 1,100,473 1,133,487 Total Expenses - Residential 3.0% 0 0 422,491 646,412 665,804 685,778 706,352 727,542 749,368 771,849 795,005 818,855 843,421 868,723 894,785 921,629 949,277 977,756 1,007,088 1,037,301 1,068,420 1,100,473 1,133,487 NET OPERATING INCOME 0 0 248,185 373,017 374,013 374,835 375,474 375,920 376,163 376,193 375,998 375,568 374,891 373,955 372,746 371,254 369,462 367,359 364,928 362,156 359,026 355,523 351,628 REPLACEMENT RESERVE 43,200 0 0 28,800 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 Mandatory Annual HCD Payment 0.42% 0 0 13,834 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 83,007 NET REMAINING INCOME 0 0 205,551 246,810 247,806 248,629 249,268 249,714 249,956 249,986 249,791 249,361 248,684 247,748 246,540 245,047 243,256 241,152 238,722 235,949 232,819 229,316 225,421 PERM LOAN - TRANCHE A Conventional Perm Loan - A Tranche Principal Balance (Ending) 2,374,000 0 0 2,368,557 2,301,255 2,230,150 2,155,027 2,075,658 1,991,804 1,903,211 1,809,611 1,710,722 1,606,244 1,495,862 1,379,242 1,256,031 1,125,857 988,327 843,025 689,511 527,321 355,966 174,926 0 Annual Issuer Fee 2,500 0.125% 0 0 0 2,961 2,877 2,788 2,694 2,595 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Trustee 4,000 0.000% 0 0 0 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Series A Bond P&I 196,126 0 0 16,344 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 196,126 179,782 Interest Payment 0 0 10,901 128,825 125,021 121,003 116,757 112,272 107,533 102,527 97,237 91,648 85,744 79,506 72,916 65,953 58,596 50,824 42,612 33,937 24,771 15,087 4,856 Principal Payment 0 0 5,443 67,302 71,105 75,123 79,369 83,854 88,593 93,600 98,889 104,478 110,382 116,620 123,211 130,174 137,530 145,303 153,514 162,190 171,355 181,039 174,926 TOTAL SERIES A DEBT SERVICE 0 0 16,344 203,087 203,003 202,914 202,820 202,721 202,626 202,626 202,626 202,626 202,626 202,626 202,626 202,626 202,626 202,626 202,626 202,626 202,626 202,626 186,282
NET CASH FLOW 0 0 189,207 43,723 44,804 45,715 46,447 46,993 47,330 47,360 47,165 46,735 46,058 45,122 43,913 42,420 40,629 38,526 36,095 33,323 30,193 26,689 39,139 Debt Service Coverage Ratio (All Debt) N/A N/A 1.15 1.22 1.22 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.22 1.22 1.21 1.20 1.19 1.18 1.16 1.15 1.13 1.21
DISTRIBUTION OF CASH FLOW
LP AMF 1 Annual Amt: 5,000 0 0 833 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Inflator: 0.00%
GP PMF 2 Annual Amt: 20,000 0 0 3,333 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Inflator: 0.00%
DDF Annual Amt: 300,000 0 0 185,040 18,723 19,804 20,715 21,447 21,993 12,278 0 0 0 0 0 0 0 0 0 0 0 0 0 0 DDF Note Interest Rate: 0.00%
Residual Receipts Loans Total % 50.00%
HCD MHP 73.84% 0 0 0 0 0 0 0 0 3,711 8,255 8,184 8,025 7,775 7,429 6,983 6,432 5,770 4,994 4,097 3,073 1,917 624 5,220 County Measure A1 18.74% 0 0 0 0 0 0 0 0 942 2,095 2,077 2,037 1,973 1,886 1,772 1,632 1,465 1,267 1,040 780 487 158 1,325 City of San Leandro 7.42% 0 0 0 0 0 0 0 0 373 829 822 806 781 746 701 646 580 502 411 309 193 63 524 Sponsor Distribution (50%) Annual Amt: 1 0 0 0 0 0 0 0 0 5,026 11,180 11,083 10,868 10,529 10,061 9,457 8,710 7,815 6,763 5,548 4,162 2,597 845 7,070 NCF %: 100.00%
Washington Avenue Apartments