SOURCES & USES OF FUNDS 6/7/2023 17:01
Project Name: Villa Serena Phase II 9%
Project Address: 339 Marcos Street, San Marcos
Developer: National Core 6/7/2023
SOURCES: CONSTRUCTION USES:
Construction Loan $33,279,949 Acquisition Costs/Closing $3,544,259 LIHTC - 9% $6,524,212 Architecture/Fees & Permits $3,065,614 City of San Marcos Existing Debt $2,956,452 Construction Cost $36,590,215 City of San Marcos New Loan $5,300,000 Indirect Construction/Legal $1,383,100 Developer's Fee $2,200,000
Rent-Up Costs/Reserves $679,459
Deferred Costs $1,982,123 Financing Costs $2,580,089
$50,042,736 $50,042,736
TOTAL
USES:
SOURCES: PERMANENT Acquisition Costs/Closing $3,544,259 Permanent Loan $7,133,395 Fees & Permits/Testing $3,065,614 LIHTC - 9% $26,096,847 (1) & (2) Construction Cost $36,590,215 City of San Marcos Existing Debt $2,956,452 Indirect Construction/Legal $1,383,100 City of San Marcos New Loan $5,300,000 Developer's Fee $2,200,000 San Diego County-HOME $3,421,431 Rent-Up Costs/Reserves $679,459 San Diego County NPLH $1,058,580 Financing Costs $2,580,089 San Diego County-ARPA $2,178,569
VS Phase 1 cost savings $1,254,712
City of San Marcos New Loan 2 $642,750
TOTAL $50,042,736 $50,042,736
1. Assumes federal tax credit pricing of $0.93 and state credit pricing of $.82, which is subject to change based on current pricing at the time of construction close.
2. Assumes federal tax credit equity of $23,247,673 & state credit equity of $2,849,174, subject to change based on current pricing at time of construction close.
DEVELOPMENT COSTS
Project Name: Villa Serena Phase II 9%
Project Address: 339 Marcos Street, San Marcos
Developer: National Core 07-Jun-2023
Number of Dwelling Units: 63 Gross Bldg Area (sf) 96,062 TOTAL $ PER $ PER SF % OF
COST UNIT BUILDING TOTAL
1. ACQUISITION COSTS:
Purchase Price/Land Value $3,544,259 $56,258.08 $36.90 7.08% Closing Costs $0 $0.00 $0.00 0.00%
Broker Fees $0 $0.00 $0.00 0.00%
Holding Costs $0 $0.00 $0.00 0.00%
TOTAL ACQUISITION COSTS $3,544,259 $56,258.08 $36.90 7.08%
2. FEES/PERMITS & STUDIES
Building Fees/Permits/Utility $300,000 $4,761.90 $3.12 0.60% Development Impact Fees $1,115,614 $17,708.15 $11.61 2.23% Civil Engineer and ALTA Survey $400,000 $6,349.21 $4.16 0.80% Environmental Documentation/Toxic Report $300,000 $4,761.90 $3.12 0.60% Arch. & Engineering Fees
Design $950,000 $15,079.37 $9.89 1.90%
Construction Supervision $0.00 $0.00 0.00%
Subtotal: $950,000 $15,079.37 $9.89 1.90%
TOTAL FEES/PERMITS & STUDIES $3,065,614 $48,660.53 $31.91 6.13%
3. DIRECT CONSTRUCTION COSTS:
Site Clearing/Demolition 1,107,619$ $17,581.25 $11.53 2.21% Residential Construction - Units 18,789,599$ $298,247.60 $195.60 37.55% Parking Structure $3,534,120 $56,097.14 $36.79 7.06%
On-site Improvements 4,694,908$ $74,522.35 $48.87 9.38% Off-Site Improvements 1,769,979$ $28,094.91 $18.43 3.54% Subtotal: $29,896,226 $474,543.26 $311.22 59.74%
Contractor's Overhead & Profit 8.0% 2,391,698$ $37,963.46 $24.90 4.78% Subtotal: $32,287,924 $512,506.73 $336.12 64.52%
General Conditions 6.0% 1,793,774$ $28,472.60 $18.67 3.58% Contractor's Insurance & Bonds $766,126 $12,160.73 $7.98 1.53% Subtotal: $34,847,824 $540,979.32 $354.79 68.11%
Construction Contingency 5.0% $1,742,391 $27,657.00 $18.14 3.48% TOTAL DIRECT CONSTRUCTION COSTS $36,590,215 $430,473.11 $372.93 71.59%
4. INDIRECT CONSTRUCTION COSTS
Developer's Fee $2,200,000 $34,920.63 $22.90 4.40%
Deferred Developer Fee $0.00 $0.00 0.00%
SubTotal Developer's Fee $2,200,000 $34,920.63 $22.90 4.40% Relocation $781,000 $12,396.83 $8.13 1.56%
Prevailing Wage Consultant $100,000 $1,587.30 $1.04 0.20% Real Estate Taxes $25,000 $396.83 $0.26 0.05%
Legal - Organizational $100,000 $1,587.30 $1.04 0.20%
Legal - Syndication $50,000 $793.65 $0.52 0.10%
Audit/Inspections $44,100 $700.00 $0.46 0.09%
Bank Inspector Fees $33,000 $523.81 $0.34 0.07%
Misc. Soft Costs $100,000 $1,587.30 $1.04 0.20%
Indirect Construction Costs Contingency $150,000 $2,380.95 $1.56 0.30% TOTAL INDIRECT CONSTRUCTION COSTS $3,583,100 $56,874.60 $37.30 7.16%
5. RENT-UP COSTS
Marketing/Advertising Expense $30,000 $476.19 $0.31 0.06% Lease-up Reserve $50,000 $793.65 $0.52 0.10%
NPLH Transition Reserve $220,000 $3,492.06 $2.29 0.44%
Capitalized Operating Reserve $279,459 $4,435.86 $2.91 0.56% Common Area Furnishings $100,000 $1,587.30 $1.04 0.20%
TOTAL RENT-UP/MARKETING COSTS $679,459 $10,785.07 $7.07 1.36%
6. FINANCING COSTS
Construction Loan Interest - During Construction $1,049,327 $16,655.98 $10.92 2.10% Construction Loan Interest - During Lease-up $699,551 $11,103.98 $7.28 1.40% Construction/Acquisition Loan Fees $258,184 $4,098.16 $2.69 0.52% Appraisal/Market Study/Eng. Review $23,000 $365.08 $0.24 0.05% Lender Legal $100,000 $1,587.30 $1.04 0.20%
Permanent Loan Fees/Closing Costs $76,028 $1,206.79 $0.79 0.15% Tax Credit Allocation Fee & Deposit $204,000 $3,238.09 $2.12 0.41% Bond Issuance Costs $0.00 $0.00 0.00%
Borrower Legal $50,000 $793.65 $0.52 0.10%
MHSA Origination Fee $0 $0.00 $0.00 0.00%
Title and Recording (Constr./Perm.) $120,000 $1,904.76 $1.25 0.24% TOTAL FINANCING COSTS $2,580,089 $40,953.80 $26.86 5.16%
7. SUBTOTAL DEVELOPMENT COSTS $46,498,477 $587,747.12 $476.07 92.92% TOTAL LAND COSTS $3,544,259 $56,258.08 $36.90 7.08%
TOTAL DEVELOPMENT COSTS $50,042,736 $644,005.20 $512.97 100.00% Construction estimates are subject to change and may be revised due to entitlement issues, changes in construction standards, architectural and engineering requirements, and other unforseen circumstances.
OPERATING EXPENSES
Project Name: Villa Serena Phase II 9%
Project Address: 339 Marcos Street, San Marcos
Developer: National Core 07-Jun-2023
ANNUAL MONTHLY PER UNIT UNIT/MO. % TOTAL
63 1. MANAGEMENT
Contract Management Fee $49,140 $4,095.00 $780.00 $65.00 8.21% TOTAL MANAGEMENT $49,140 $4,095.00 $780.00 $65.00 8.21%
2. ADMINISTRATION
Marketing $1,500 $125.00 $23.81 $1.98 0.25%
Audit $18,000 $1,500.00 $285.71 $23.81 3.01%
Legal $3,000 $250.00 $47.62 $3.97 0.50%
Office Expenses $25,000 $2,083.33 $396.83 $33.07 4.18%
TOTAL ADMINISTRATION $47,500 $3,958.33 $753.97 $62.83 7.94%
3. SALARIES AND BENEFITS
On-Site Manager/Asst. Manager $45,000 $3,750.00 $714.29 $59.52 7.52% Maintenance Personnel $40,000 $3,333.33 $634.92 $52.91 6.69% Janitorial Personnel $0 $0.00 $0.00 $0.00 0.00%
Case Manager $0 $0.00 $0.00 $0.00 0.00%
Security Patrol $0.00 $0.00 $0.00 0.00%
Payroll Txs, Ins & Wkr. Comp. $34,000 $2,833.33 $539.68 $44.97 5.68% TOTAL SALARIES $119,000 $9,916.67 $1,888.89 $157.41 19.89%
4. MAINTENANCE
Supplies $12,000 $1,000.00 $190.48 $15.87 2.01%
Repairs Contract/Maintenance $14,000 $1,166.67 $222.22 $18.52 2.34% Pest Control $3,500 $291.67 $55.56 $4.63 0.58%
Grounds Contract $18,000 $1,500.00 $285.71 $23.81 3.01% Turnover Costs $6,000 $500.00 $95.24 $7.94 1.00%
Elevator(s) $10,000 $833.33 $158.73 $13.23 1.67%
TOTAL MAINTENANCE $63,500 $5,291.67 $1,007.94 $83.99 10.61%
5. UTILITIES NOT PAID BY TENANTS
Trash Removal $20,000 $1,666.67 $317.46 $26.46 3.34%
Electricity $50,000 $4,166.67 $793.65 $66.14 8.36%
Water/Sewer $60,480 $5,040.00 $960.00 $80.00 10.11%
Gas $0.00 $0.00 $0.00 0.00%
TOTAL UTILITIES $130,480 $10,873.33 $2,071.11 $172.59 21.81%
6. INSURANCE
Property & Liability Insurance $50,000 $4,166.67 $793.65 $66.14 8.36% TOTAL INSURANCE $50,000 $4,166.67 $793.65 $66.14 8.36%
7. TAXES/RESERVES
Real Estate Taxes $3,000 $250.00 $47.62 $3.97 0.50%
Replacement Reserves $31,500 $2,625.00 $500.00 $41.67 5.26% TOTAL TAXES $34,500 $2,875.00 $547.62 $45.63 5.77%
8. OTHER
County Servicing Fee $4,000 $333.33 $63.49 $5.29 0.67%
San Marcos Housing Support $0.00 $0.00 $0.00 0.00%
Support Services $45,360 $3,780.00 $720.00 $60.00 7.58% CFDs $40,983 $3,415.28 $650.53 $54.21 6.85%
San Marcos Asset Monitoring Fee $13,860 $1,155.00 $220.00 $18.33 2.00% TOTAL OTHER $104,203 $8,683.62 $1,654.02 $137.84 17.42%
TOTAL OPERATING EXPENSES $598,323 $49,860.28 $9,497.20 $791.43 100.00%
RENT SCHEDULE
Project Name: Villa Serena Phase II 9%
Project Address: 339 Marcos Street, San Marcos
Developer Name: National Core 07-Jun-2023
AREA MEDIAN INCOME
$137,800 Monthly Monthly Monthly Total Total Total
Unit Percent Gross Utility Net Number Monthly Annual # of Type Median Rent Allow. Rent of Units Rent Rent ($) Bdrms.
ONE BEDROOM 30% $775 $48 $727 8 $5,816 $69,792 8
(tax credit units = 1.5 30% $775 $48 $727 $0 $0 0
persons/bdrm) 40% $1,034 $48 $986 2 $1,972 $23,664 2
50% $1,292 $48 $1,244 2 $2,488 $29,856 2
60% $1,551 $48 $1,503 0$ 0 $ 0 0
12 TWO BEDROOM 30% $930 $56 $874 3 $2,622 $31,464 6
(tax credit units = 1.5 35% $0 $56 ($56) $0 $0 0
persons/bdrm) 40% $1,241 $56 $1,185 12 $14,220 $170,640 24 50% $1,551 $56 $1,495 2 $2,990 $35,880 4
60% $1,861 $56 $1,805 13 $23,465 $281,580 26
30 THREE BEDROOM 30% $1,075 $68 $1,007 2 $2,014 $24,168 6 (tax credit units = 1.5 35% $0 $68 ($68) $0 $0 0
40% $1,433 $68 $1,365 8 $10,920 $131,040 24
persons/bdrm) 50% $1,791 $68 $1,723 2 $3,446 $41,352 6
60% $2,150 $68 $2,082 8 $16,656 $199,872 24
20 MANAGER Exempt $0 $0 $0 1 $0 $0 3
TOTAL 63 $86,609 $1,039,308 135
30% 13 20.63%
35% 0 0.00%
40% 22 34.92%
50% 6 9.52%
60% 21 33.33%
Mgr 1 1.59%
63 100%
CASH FLOW PROJECTIONS
Project Name: Villa Serena Phase II 9%
Project Address 339 Marcos Street, San Marcos
Developer Name: National Core 07-Jun-2023
ASSUMPTIONS: Total Per Unit Percent
Residential Income Infl. Rate: 2.50% Unit Operating Exp: $7,579.05 Conventional Loan Rate: 6.54% TOTAL DEV. COSTS: $50,042,736 $794,329.14 100.00% Laundry & Misc. Infl. Factor: 2.50% Replacement Reserve: $500. 00 Conventional Loan Yrs: 35 Permanent Loan $7,133,395 $113,228.49 14.25% Operating Expense Infl. Factor: 3.50% Real Estate Taxes: $47. 62 Conventional Loan Type: AMORTIZED LIHTC - 9% $26,096,847 $414,235.66 52 .15% Vacancy Rate: 5.00% SHSA Annual Fee Yr 1 $0 Cash Available for D ebt Service: $519,514 City of San Marcos Existing Debt $2,956,452 $46, 927.82 5.91% Number of Units: 63 SHA Annual Mon Fee $720 City of San Marcos New Loan $5,300,000 $84,126.98 10.59% Vacancy Rate: VASH/MHSA 10.00% CFDs $651 San Diego County-HOME $3,421,431 $54,308.43 6.84% County Monitoring Fee Infl Factor: 1.00% County Monitoring Fee $63 San Diego County NPLH $1,058,580 $16,802.86 2.12% Laundry, Misc/Year: $7,560.00 San Diego County-ARPA $2,178,569 $34,580.46 4.35% VS Phase 1 cost savings $1,254,712 $19,916.06 2.51%
City of San Marcos New Loan 2 $642,750 $10,202.38 1.28% YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 Residential Income $1,039,308 $1,065,291 $1,091,923 $1,119,221 $1,147,202 $1,175,882 $1,205,279 $1,235, 411 $1,266,296 $1,297,953 $1,330,4 02 $1,363,662 $1,397,754 $1,432,698 $1,468,515 Residential Income - PBV $231,216 $236,996 $242,921 $248, 994 $255,219 $261,600 $268,140 $274,843 $281,714 $288,757 $295,976 $303,375 $310,9 60 $318,734 $326,702 Laundry & Miscellaneous 7,560 7,749 7,943 8,141 8,345 8, 553 8,767 8,986 9,211 9,441 9,677 9,919 10,167 10,422 10,682 GROSS INCOME 1,278,084 1,310,036 1,342,787 1,376,357 1,410,766 1,446,035 1,482,186 1,519,240 1,557,221 1,596, 152 1,636,056 1,676,957 1,718,881 1,761,853 1 ,805,899 Vacancy 52,343 53,652 54,993 56,368 57,777 59,222 60, 702 62,220 63,775 65,370 67,004 68,679 70,396 72,156 73,960 Vacancy- PSH 23,122 23,700 24,292 24,899 25,522 26,160 26,814 27,484 28,171 28,876 29,598 30,338 31,096 31,873 32,670 EFFECTIVE GROSS INCOME 1,225,741 1,256,384 1,287,794 1,319,989 1,352,988 1,386,813 1,421,483 1,457,020 1,493,446 1,530, 782 1,569,052 1,608,278 1,648,485 1,689,697 1 ,731,939 Operating Expenses 477,480 494,192 511,489 529,391 547,919 567,096 586,945 607,488 628, 750 650,756 673,533 697,106 721,505 746,758 772,894 RE Taxes/Special Assessments 3,000 3,060 3,121 3,184 3,247 3,312 3,378 3,446 3,515 3,585 3,657 3,730 3,805 3,881 3,958 Replacement Reserve 31,500 32,445 33,418 34,421 35,454 36,517 37,613 38,741 39,903 41,100 42,333 43,603 44,911 46,259 47,647 San Marcos Monitoring Fee 45,360 46,721 48,122 49,566 51, 053 52,585 54,162 55,787 57,461 59,185 60,960 62,789 64,673 66,613 68,611 San Marcos CFD 40,983 42,213 43,479 44,784 46,127 47, 511 48,936 50,404 51,917 53,474 55,078 56,731 58,433 60,185 61,991 County Compliance Monitoring Fee 4,000 4,040 4,080 4,121 4,162 4,204 4,246 4,289 4,331 4,375 4,418 4,463 4,507 4,552 4,598 NOI BEFORE DEBT SERVICE 623,417 633,714 644,084 654,522 665,026 675,587 686,203 696, 865 707,569 718,307 729,072 739,856 750,651 761,449 772,240 DEBT SERVICE 519,514 519,514 519,514 519,514 519,514 519,514 519,514 519, 514 519,514 519,514 519,514 519,514 519,514 519,514 519,514 Bond Monitoring/Trustee Fees 00000000000 0000
Debt Service Coverage 1.20 1.22 1.24 1.26 1.28 1.30 1.32 1.34 1.36 1.38 1.40 1.42 1.44 1.47 1.49 CASH AVAILABLE FOR PAYMENTS 103,903 114,199 124,569 135,008 145,511 156,073 166,688 177, 351 188,055 198,793 209,557 220,342 231,137 241,935 252,726 0000000000 0000
Partnership/Asset Management Fees 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 19,002 19, 572 20,159 20,764 21,386 22,028 22,689 CASH AVAILABLE FOR DEFERRED FEES 88,903 98,749 108,656 118,617 128,629 138,684 148,778 158, 903 169,053 179,221 189,399 199,578 209,750 219,907 230,037 D e f e r r e d D e v F e e P a y m e n t @ A F R 0 . 0 0 % 0000000000 0000 D e f e r r e d D e v F e e B a l a n c e D u e 0 00000000000 0000 CASH AVAILABLE FOR DISTRIBUTION 88,903 98,749 108,656 118,617 128,629 138,684 148,778 158, 903 169,053 179,221 189,399 199,578 209,750 219,907 230,037
TAX CREDIT CALCULATION
Project Costs 9% Basis State Credits
LAND COSTS
Land Cost $3,544,259 XXXXXXXXXX
Legal/Broker Fees $0 XXXXXXXXXX
TOTAL LAND COSTS $3,544,259 XXXXXXXXXX
TOTAL ACQUISITION COSTS $3,544,259 $0
NEW CONSTRUCTION
Demolition $1,107,619 XXXXXXXXXX
Structures/On-Sites $28,788,607 $28,788,607
General Requirements $1,793,774 $1,793,774
Performance Bond Premium $0 $0
Contractor Overhead $2,391,698 $2,391,698
Contractor General Liability $766,126 $766,126
CONSTRUCTION CONTINGENCY $1,742,391 $1,742,391
TOTAL CONSTRUCTION COSTS $36,590,215 $35,482,596
PERMITS/FEES/ARCHITECTURE
Bldg Fees/Permits $300,000 $300,000
Development Impact Fees $1,115,614 $1,115,614
Surveys/Environmental $700,000 $700,000
Design and Reimbursables $950,000 $950,000
TOTAL ARCHITECTURAL COSTS $3,065,614 $3,065,614
CONSTRUCTION INTEREST AND FEES
Construction Loan Interest - Durin
g Constructio $1,049,327 $1,049,327
Construction Loan Interest - During Lease-up $699,551 $174,888 Origination Fee $258,184 $129,092
As-built Appraisal $23,000 $23,000
Title & Recording $60,000 $60,000
MHSA Origination Fee $0 $0
TOTAL CONSTRUCTION INTEREST & FEE
S $2,090,062 $1,436,306
PERMANENT FINANCING
Perm. Loan Origination Fee $76,028 XXXXXXXXXXXXXX
Credit Enhancement and Application Fee $0 XXXXXXXXXXXXXX Title and Recording $60,000 XXXXXXXXXXXXXX
TOTAL PERMANENT FINANCING COSTS $136,028 $0
LEGAL FEES
Lender Legal Costs Paid by Applicant $100,000 $100,000
Legal Syndication $50,000 $50,000
Legal Organizational $150,000 $150,000
TOTAL ATTORNEY COSTS $300,000 $300,000
RESERVES
Marketing $30,000 XXXXXXXXXX
Lease-Up Reserves $50,000 XXXXXXXXXX
Capitalized Replacement Reserve $220,000 XXXXXXXXXX
Capitalized Operating Reserve $279,459 XXXXXXXXXX
Furnishings $100,000 $100,000
TOTAL RENT RESERVE COSTS $679,459 $100,000
OTHER
TCAC Appl/Resrv./Monitoring Fees $204,000 XXXXXXXXXX
Other Uneligible Costs XXXXXXXXXX
Rent Transition $100,000 XXXXXXXXXX
Soft Costs Contingency $150,000 $100,000
Relocation $781,000 XXXXXXXXXX
Accounting/Audit $44,100 $44,100
Prevailing Wage Monitor $33,000 $33,000
Taxes $25,000 $25,000
Insurance $100,000 $100,000
TOTAL OTHER COSTS $1,437,100 $302,100
DEVELOPER COSTS
Developer Overhead/Fee $2,200,000 $2,200,000
$0 $0
Other (Acquisition Basis) $0 $0
TOTAL DEVELOPER COSTS $2,200,000 $2,200,000
TOTAL RESIDENTIAL COSTS $50,042,736 $42,886,616
TOTAL ELIGIBLE BASIS $35,994,480
TOTAL REQUESTED BASIS ($8,216,705) $27,777,775 $27,777,775 High Cost Area Adjustment 100.00% 100.00%
SUBTOTAL ADJUSTED ELIGIBLE BASIS $27,777,775 $27,777,775 TOTAL ADJUSTED ELIGIBLE BASIS $27,777,775 $27,777,775
Ratio of low income units to all units 100.00% 100.00%
TOTAL QUALIFIED BASIS $27,777,775 $27,777,775
(2%) Basis Reduction $0 State Credit (Yr 1-3) 9%
TOTAL ADJUSTED REQUESTED BASIS $27,777,775 State Credit Yr 4 3% Applicable Federal Tax Credit Factor 9.00%
TOTAL ANNUAL FEDERAL CREDIT $2,500,000 $2,500,000 State Credit Amt $8,333,332.52 Per year for 10 yrs 10
MAXIMUM FEDERAL CREDIT $24,999,998
x Tax Credit Factor (cents on the $) $0.930 State Pricing $0.820
99.99%
Estimated Syndication Net Proceeds $23,247,673 6,833,333 $