777 SOUTH FIGUEROA STREET, SUITE 2555 LOS ANGELES, CALIFORNIA 90017 PHONE 213.622.8095 2412001v2.SA.TRB
WWW.KEYSERMARSTON.COM 19090.018.038
ADVISORS IN:
Real Estate
Affordable Housing
Economic Development
BERKELEY
Debbie M. Kern
David Doezema
LOS ANGELES
Kathleen H. Head
Kevin E. Engstrom
Julie L. Romey
Tim R. Bretz
SAN DIEGO
Paul C. Marra
Linnie A. Gavino
EMERITUS
A. Jerry Keyser
Timothy C. Kelly
M
EMORANDUM
At
your request, Keyser Marston Associates, Inc. (KMA) prepared a preliminary financial gap analysis for the project to be developed at 621 West Alton Avenue (Site) by Habitat for Humanity of Orange County (Habitat). Habitat is currently in discussions with the property owner to purchase the Site.
Habitat proposes to demolish the existing structures on the Site, and construct 40 for- sale units to be sold to low and moderate income households (Project). Habitat is requesting $9.81 million in financial assistance from the City of Santa Ana (City). The purpose of the KMA analysis is to evaluate Habitat’s financial assistance request.
EXECUTIVE SUMMARY
The results of the KMA financial gap analysis are compared to Habitat’s financial proposal in the following table:
To: Judson Brown, Housing Division Manager
City of Santa Ana
From: Tim Bretz
Date: December 10, 2024
Subject: Habitat Alton Avenue – Preliminary Financial Gap Analysis
EXHIBIT 3
Judson Brown, City of Santa Ana December 10, 2024
Habitat Alton – Preliminary Financial Gap Analysis Page 2
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KMA Habitat Difference
Total Development Costs $27,281,000 $27,247,000 $34,000 (Less) Total Available Revenue (17,438,000) (17,439,000) (1,000)
Estimated Financial Gap $9,843,000 $9,808,000 $35,000
As shown in the preceding table, KMA estimates the Project’s financial gap at $9.84 million.
Comparatively, Habitat is requesting $9.81 million in financial assistance from the City. This equates to a $35,000 or less than 1% differential. As such, it can be concluded that the proposed City’s financial assistance is warranted by the Project’s economics.
The City proposes to utilize HOME Program (HOME) funds that are allocated to the City by the United States Department of Housing and Urban Development (HUD). Based on a preliminary HOME unit subsidy estimate, the Project will need to designate at least 30 units as HOME units.
PROJECT DESCRIPTION
The proposed scope of development can be described as follows:
1. The Site area totals approximately 87,110 square feet, or approximately 2.0 acres of land area.
2. The Site consists of multiple buildings that are used for religious entities. The buildings will be demolished in order to undertake the Project.
3. The Project’s unit mix can be summarized as follows:
a. The Project will include 40 for-sale units, in 20 duplex buildings, which equates to a density of 20 units per acre.
b. Each of the units will include three bedrooms and one and a half bathrooms. c. The units will consist of approximately 1,070 square feet of gross building area (GBA).
d. The Project’s total GBA is estimated at 42,800 square feet.
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Judson Brown, City of Santa Ana December 10, 2024
Habitat Alton – Preliminary Financial Gap Analysis Page 3
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4. The Project will include 96 parking spaces consisting of the following:
a. Each unit incorporates an attached garage consisting of one parking space plus an additional surface parking space adjacent to each unit. b. Sixteen (16) additional surface parking spaces will be provided, including two accessible stalls.
5. The Project’s affordability mix will consist of the following:
a. Thirty (30) units will be designated as HOME units and restricted to Low Income households; and
b. The remaining ten (10) units will be restricted to Moderate Income households.
FINANCIAL GAP ANALYSIS
KMA prepared a pro forma analysis to estimate the Project’s financial gap. The analysis is located at the end of this memorandum, and is organized as follows:
Table 1: Estimated Development Costs
Table 2: Estimated Available Revenue
Table 3: Estimated Financial Gap
Table 4: Silent Second Mortgage Revenue Calculations
Table 5: Preliminary HOME Cost Allocation
Table 6: Affordable Sales Price Calculation (HOME Units)
ESTIMATED DEVELOPMENT COSTS (TABLE 1)
KMA reviewed Habitat’s December 2024 pro forma, and then independently prepared a pro forma analysis for the Project. The resulting development costs are estimated as follows:
Property Assemblage Costs
The property assemblage costs are estimated at $4.93 million as follows:
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Judson Brown, City of Santa Ana December 10, 2024
Habitat Alton – Preliminary Financial Gap Analysis Page 4
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PROPERTY ACQUISITION COSTS
Based on information provided by Habitat, Habitat is proposing to purchase the Site for $4.25 million, or $49 per square foot of land area. Habitat did not provide an appraisal and/or purchase and sale agreement to confirm the purchase price.
RELOCATION COSTS
The property consists of multiple buildings that are leased to three tenants. Per Habitat, Federal relocation requirements stipulate that the maximum relocation assistance for businesses is $53,200 plus three months of rent payments, if required. As such, Habitat estimates the total relocation assistance at $213,000. However, Habitat did not provide a relocation plan for review. The City should review the relocation plan prior to disbursement of any financial assistance.
LOST RENT TO SELLER
The Seller has agreed to hold the property during the development period and complete the purchase transaction upon completion of construction. As such, the Seller will be holding the property for the estimated development period of approximately 24 months prior to receiving the agreed-upon purchase price.
To account for this holding period, Habitat is proposing to compensate the Seller for the loss of rent payments during the 24-month development period. Habitat estimates the lost rent payments to be made to the Seller at $386,000.
CLOSING COSTS
Habitat estimates the closing costs at 2% of the purchase price, or $85,000.
Direct Costs
The direct costs assume that the Project will be subject to Federal Davis Bacon prevailing wage requirements. In addition, the Project is subject to the provisions of the Build America Buy America Act (BABA). The direct costs can be summarized as follows:
1. Habitat estimates the site improvement costs at $4.0 million, or $46 per square foot of land area. The site improvement budget includes costs for demolition, grading, sewer EXHIBIT 3
Judson Brown, City of Santa Ana December 10, 2024
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system, utility connections, paving, landscaping, open space areas and street improvements.
2. The building costs are estimated at $10.70 million, or approximately $267,500 per unit.
3. The general conditions are estimated at 2.5% of construction costs, or $367,000.
4. Habitat will charge for the costs to supervise the construction of the Project. Habitat set the supervision costs at $320,000, which is based on $12,800 per month for 25 months.
5. A direct cost contingency allowance equal to 10% of other direct costs is provided.
KMA estimates the total direct costs at $16.89 million, which equates to approximately $422,200 per unit.
Indirect Costs
KMA utilized the following assumptions in estimating the indirect costs:
1. The architecture, engineering and consulting costs are estimated at 6% of direct costs, or $1.01 million.
2. Habitat estimates the public permits and fees costs at $45,700 per unit, or $1.83 million.
City staff should verify the accuracy of this estimate.
3. The taxes, insurance, legal and accounting costs are estimated at 3% of direct costs, or $507,000.
4. The Developer Fee is set at $844,000 which is based on the following:
a. Management and Overhead costs are set at $444,000 based on:
i. Project Management: $3,500 per month for 24 months; and ii. Administration: $10,000 per month for 36 months.
b. Habitat will charge the Project to provide homeownership services to potential affordable homebuyers. Habitat set this fee at $10,000 per unit.
5. An indirect cost contingency allowance equal to 10% of other indirect costs is provided.
EXHIBIT 3
Judson Brown, City of Santa Ana December 10, 2024
Habitat Alton – Preliminary Financial Gap Analysis Page 6
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KMA estimates the total indirect costs at $4.61 million.
Financing Costs
1. The interest costs to be incurred during the construction period are estimated at $489,000. This cost estimate is based on the following:
a. KMA assumes that Habitat will obtain a construction loan from a third party lender for the Project. KMA estimates the construction loan amount at $7.52 million, which is calculated based on the total development costs less the purchase price, Habitat fundraising assistance, Developer Fee, homebuyer closing costs, HOA reserves and warranty costs.
b. Habitat assumes the construction loan will carry the following terms:
i. A 6.5% interest rate;
ii. A 24-month construction period; and
iii. A 50% average outstanding balance.
2. The financing fees for the construction loan are estimated at 1.0 point, or $75,000.
3. The closing costs related to the sale of each affordable unit are set at $3,000 per unit, or $120,000.
4. Habitat proposes to fund a $24,000 reserve for the Homeowners Association.
5. The warranty costs are estimated at $140,000, which equates to $3,500 per unit.
KMA estimates the total financing costs at $848,000.
TOTAL DEVELOPMENT COSTS
As shown in Table 1, KMA estimates the total development costs at $27.28 million. In comparison, Habitat estimates the total development costs at $27.25 million. This represents a $34,000 differential, which equates to less than 1% of the total development costs.
EXHIBIT 3
Judson Brown, City of Santa Ana December 10, 2024
Habitat Alton – Preliminary Financial Gap Analysis Page 7
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It is important to note that the site plan and development scope have not been finalized. Given the preliminary nature of Habitat’s proposal, this analysis will need to be revised if the scope of development changes materially.
Estimated Available Revenue
KMA estimates the revenue available to the Project as follows:
LOW INCOME SALES PRICES – HOME UNITS
The Project is required to designate at least 30 units as HOME units. The HOME Program does not define a methodology for setting the affordable sales prices. As such, KMA estimated the Low Income sales prices for the HOME units as follows:
1. The household income used in the calculations is based on the Low Income limits published by HUD. KMA assumes the household size is estimated at one plus the number of bedrooms (four persons for a three-bedroom unit).
2. Since the Project consists of more than four units, the Project is required to have an HOA. Habitat estimates the annual HOA dues at $400 per unit per month.
3. Habitat estimates the homeowner’s insurance cost at 0.75% of the affordable sales price, or approximately $2,250 per year.
4. The annual utilities are based on the utility allowances published by the Santa Ana Housing Authority (SAHA) as of October 1, 2024. KMA assumes the homeowners will pay for: electric cooking, electric heating, electric water heating, basic electricity, air conditioning, water, sewer and trash.
5. Habitat estimates the property tax cost based on 1.25% of the estimated affordable sales price.
6. The mortgage interest rate is set at 7.0%. The mortgage is assumed to be fully amortizing over 30 years and provided by a conventional lender.
7. The homebuyer downpayment is set at 5% of the affordable sales price.
Based on the assumptions outlined above, KMA estimates the Low Income Affordable Sales Prices for the HOME units at $300,200.
EXHIBIT 3
Judson Brown, City of Santa Ana December 10, 2024
Habitat Alton – Preliminary Financial Gap Analysis Page 8
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MODERATE INCOME SALES PRICES
The City is only providing HOME funds to the Project. The $9.81 million in proposed HOME assistance requires at least 30 Low Income units. Habitat proposes to restrict the remaining ten units to moderate income households. The City is amenable to Habitat establishing the affordable sales prices for the Moderate Income units. Habitat is currently estimating the moderate income sales prices at $389,500.
AFFORDABLE SALES PRICE REVENUE
KMA estimates that the 30 Low Income units will generate $9.01 million in affordable sales revenue. Based on Habitat’s proposed moderate income sales prices, the 10 Moderate Income units will generate $3.90 million in affordable sales revenue. As such, the total affordable sales revenue is estimated at $12.90 million.
However, it is important to note that the affordable sales prices will ultimately be determined immediately prior to the sale of each unit. This analysis may need to be revised if the affordable sales prices differ from the sales prices utilized in this analysis.
ADDITIONAL REVENUE
Habitat proposes to utilize fundraising contributions to off-set a portion of the construction costs. As such, Habitat estimates the financial assistance that they can provide to the Project at $4.54 million, or $113,400 per unit.
ESTIMATED AVAILABLE REVENUE
The Project’s estimated total available revenue is equal to the sum of the Affordable Sales Price revenue and the Project’s additional revenue. KMA estimates the total available revenue as follows:
Affordable Sales Price Revenue $12,901,000
Habitat Financial Assistance $4,537,000
Estimated Available Revenue $17,438,000
EXHIBIT 3
Judson Brown, City of Santa Ana December 10, 2024
Habitat Alton – Preliminary Financial Gap Analysis Page 9
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Financial Gap Calculation
The financial gap is estimated by deducting the Project’s available revenue from the Project’s total development costs. Based on the preceding analysis, KMA estimates the Project’s financial gap as follows:
KMA
Total Development Costs $27,281,000
(Less) Total Available Revenue (17,438,000)
Estimated Financial Gap $9,843,000
Per Unit $246,100
As shown in the preceding table, KMA estimates the Project’s financial gap at $9.84 million.
Comparatively, Habitat is requesting $9.81 million in financial assistance from the City. Since this amount is less that the financial gap identified by KMA, it can be concluded that the proposed City financial assistance is warranted by the project economics.
The City will need to confirm that Habitat has secured all necessary funding sources before formally committing HOME funds to the Project.
SILENT SECOND MORTGAGE REVENUE CALCULATION (TABLE 4)
As a basic premise it must be assumed that the total of the liens accepted by a homebuyer cannot exceed the unrestricted market value of the home. Furthermore, based on previous City homeownership projects, the City will record a second trust deed equal to the difference between the Affordable Sales Price and the estimated market value of the home.
KMA assumes that the City’s second trust deed will be structured as a deferred payment loan which are commonly known as silent second mortgages. These loans typically become due and payable when the home is resold to a non-affordable homebuyer. KMA assumes that the City’s silent second trust deed will fall second in the lien hierarchy behind the conventional first trust deed mortgage.
The calculations used to estimate the supportable silent mortgages are presented in the following sections of this analysis.
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Judson Brown, City of Santa Ana December 10, 2024
Habitat Alton – Preliminary Financial Gap Analysis Page 10
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Market Rate Sales Prices
Habitat provided sales comparables for the Project’s nearby market area for the purpose of estimating the current silent second mortgage amount. Based on these comparables, KMA estimates the market rate sales price for an attached three-bedroom unit at $750,000.
In addition, the HOME Program establishes a maximum sales price for the HOME units.
Ultimately, the market rate sales price will be set at the lesser of the appraised fair market value of the unit or the maximum HOME sales price in effect at the time of sale.
Available Silent Second Mortgage Revenue
Based on the estimated market rate sales prices, the available silent second mortgage revenue is estimated at as follows:
Three-Bedroom Units
Low Income
Units
Moderate
Income Units
Market Rate Sales Price $750,000 $750,000
(Less) Affordable Sales Price (300,200) (389,500)
Silent Second Mortgage Amounts (Per Unit) $449,800 $360,500
It is important to note that this calculation will need to be revisited once sales of the units commence. At that point, the appraised market values of the homes, maximum HOME sales prices, and the defined Affordable Sales Prices will be utilized to determine the silent second mortgage amounts.
PRELIMINARY HOME COST ALLOCATION (TABLE 5)
KMA completed a preliminary HOME cost allocation for the Project. The HOME cost allocation analysis is based in part on the 2024 maximum HOME subsidy limits of $327,293 for three- bedroom units. The provision of $9.81 million in HOME funds to the Project requires that at least 30 units be designated as HOME units. All of the HOME units will be restricted to Low Income households.
EXHIBIT 3
Judson Brown, City of Santa Ana December 10, 2024
Habitat Alton – Preliminary Financial Gap Analysis Page 11
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CONCLUSIONS / RECOMMENDATIONS
The following summarizes the conclusions of the KMA analysis:
1. Based on currently available information, KMA estimates the Project’s financial gap at $9.84 million. In comparison, the Developer is requesting $9.81 million in financial assistance from the City. As such, the Developer’s request is supported by the Project economics.
2. Based on the preliminary HOME Cost Allocation Analysis, the City must designate at least 30 units in the Project as HOME units.
3. It is important to note that the City cannot formally commit HOME funds to the Project until after all of the other financing sources have received formal commitments. At that time, the City must prepare a HOME Subsidy Layering Review in order to formally commit HOME funds to the Project.
4. Given the preliminary nature of the proposal, if the scope of development or financing assumptions change, the KMA analysis may need to be updated accordingly.
5. The affordable sales prices cannot be finalized until the Project commences sales activities. It is likely that the actual affordable sales prices will differ from the amounts estimated in this analysis.
6. KMA recommends that the City retain 10% of the City’s financial assistance amount (or $981,800) until after the completion of construction. If the assumptions utilized in this analysis change materially, the financial gap analysis should be re-evaluated prior to the release of that amount to ensure that the $981,800 is still warranted by the Project.
7. The City’s HOME funds have various expenditure deadlines. KMA recommends that the City include a schedule of performance in the preliminary commitment documentation to ensure that the Project moves forward in time to meet the HOME fund expenditure deadlines.
EXHIBIT 3
TABLE 1
ESTIMATED DEVELOPMENT COSTS
FOR-SALE: 30 LOW INCOME UNITS & 10 MODERATE INCOME UNITS
HABITAT FOR HUMANITY - ALTON
SANTA ANA, CALIFORNIA
I. Property Assemblage Costs
Property Acquisition Costs 1 87,110 Sf Land $49 /Sf Land $4,250,000 Relocation Costs 213,000
Lost Rent Paid to Seller 386,000
Closing Costs 2.0% Property Acquisition Costs 85,000
Total Property Assemblage Costs $4,934,000
II. Direct Costs 2
On-Site Improvements 87,110 Sf Land $46 /Sf Land $3,995,000 Building Costs 40 Units $267,500 /Unit 10,700,000
General Conditions 3 2.5% Construction Costs 367,000
Habitat Supervision 3 320,000
Contingency Allowance 10% Other Direct Costs 1,506,000
Total Direct Costs 40 Units $422,200 /Unit $16,888,000
III. Indirect Costs
Architecture, Engineering & Consulting 6% Direct Costs $1,013,000 Public Permits & Fees 4 40 Units $45,700 /Unit 1,828,000 Taxes, Ins., Legal & Accounting 3% Direct Costs 507,000 Developer Fee 3 3% Net Development Cost (Excl. Dev Fee) 844,000 Contingency Allowance 10% Other Indirect Costs 419,000
Total Indirect Costs $4,611,000
IV. Financing Costs
Interest During Construction 5 $7,523,000 Loan 6.50% Interest $489,000 Loan Origination Fee $7,523,000 Loan 1.0 Point 75,000
Closing Costs 40 Units $3,000 /Unit 120,000
HOA Reserves 40 Units $600 /Unit 24,000
Warranties 40 Units $3,500 /Unit 140,000
Total Financing Costs $848,000
V. Total Development Costs 40 Units $682,000 /Unit $27,281,000 1 2
3 4
5 Based on Habitat estimate. An appraisal was not provided for review.
Based on Habitat estimates. Assumes that Federal Davis Badon wage requirements will be imposed on the Project. The Project will also be subject to the provisions of the Build America Buy America Act.
The loan interest is based on an 24-month loan term and a 50% average outstanding balance.
Based on Habitat estimates. City staff should verify the accuracy of this estimate.
Based on estimate provided by Habitat.
Prepared by: Keyser Marston Associates, Inc.
File name: Habitat Alton_12 6 24; Pf
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TABLE 2
ESTIMATED AVAILABLE REVENUE
FOR-SALE: 30 LOW INCOME UNITS & 10 MODERATE INCOME UNITS
HABITAT FOR HUMANITY - ALTON
SANTA ANA, CALIFORNIA
I. Affordable Sales Revenue
HOME Low Income - Three-Bedroom Units 1 30 Units $300,200 /Unit $9,006,000 Moderate Income - Three-Bedroom Units 2 10 Units $389,500 /Unit 3,895,000 Total Affordable Sales Revenue $12,901,000
II. Habitat Financial Assistance 40 Units $113,400 /Unit $4,537,000 III. Estimated Available Revenue 40 Units $435,950 /Unit $17,438,000 1 See TABLE 6 for the KMA affordable sales price calculations. 2 Per Habitat.
Prepared by: Keyser Marston Associates, Inc.
File name: Habitat Alton_12 6 24; Pf
EXHIBIT 3
TABLE 3
ESTIMATED FINANCIAL GAP
FOR-SALE: 30 LOW INCOME UNITS & 10 MODERATE INCOME UNITS
HABITAT FOR HUMANITY - ALTON
SANTA ANA, CALIFORNIA
I. Total Development Costs See TABLE 1 $27,281,000
II. (Less) Estimated Available Revenue See TABLE 2 ($17,438,000) III. Estimated Financial Gap 40 Units $246,100 /Unit $9,843,000 Prepared by: Keyser Marston Associates, Inc.
File name: Habitat Alton_12 6 24; Pf
EXHIBIT 3
TABLE 4
SILENT MORTGAGE REVENUE SAMPLE CALCULATIONS
FOR-SALE: 30 LOW INCOME UNITS & 10 MODERATE INCOME UNITS
HABITAT FOR HUMANITY - ALTON
SANTA ANA, CALIFORNIA
Silent Mortgage Capacity After City Downpayment Assistance I. HOME Low Income: Three-Bedroom Units
Estimated Market Rate Sales Price 1 $750,000
(Less) HOME Low Income Affordable Sales Price 2 (300,200) Available Silent Mortgage Capacity Per Low Income Unit $449,800 II. Moderate Income: Three Bedroom Units
Estimated Market Rate Sales Price 1 $750,000
(Less) Moderate Income Affordable Sales Price 2 (389,500) Available Silent Mortgage Capacity Per Moderate Income Unit $360,500 1 2 The final Affordable Sales Prices will be set prior to the sale of each unit.
Based on sales comparables provided by Habitat. The 2024 HOME sales limit is $789,000. At the time of sale for each unit, the prevailing market rate sale price will be determined based on the lesser of: (1) the fair market appraised value that assumes no income restrictions or the maximum HOME sales price limits.
Prepared by: Keyser Marston Associates, Inc.
File name: Habitat Alton_12 6 24; Pf
EXHIBIT 3
TABLE 5
PRELIMINARY HOME COST ALLOCATION WORKSHEET - STANDARD MODEL
HABITAT FOR HUMANITY - ALTON
SANTA ANA, CALIFORNIA
Step 1: Determine Comparability, Select Method of Cost Allocation Net Residential SF 42,800 Step 2: Proposed HOME Investment 1 $9,807,571
Step 3: Calculate Actual Cost of HOME Units
Total Development Costs 1 $27,246,338
Ineligible Development Costs 2 (24,000)
Unit-Specific Upgrades 0
Relocation Costs 0
Assign Relocation Exclusively to HOME Units? NA
Base Project Cost $636 /Sf Gross Residential SF $27,222,338 Number of Units # of Bdrms Unit Size Cost/Unit Total Cost 30 3 1,070 $680,558 $20,416,754
Subtotal HOME Unit Costs $20,416,754
Add: Relocation Costs Allocated Exclusively to HOME Units (if applicable) $0 Actual Cost of HOME Units $20,416,754
Step 4: Calculate Maximum Project Subsidy
Unit Size # of Units 2024 Max Subsidy/Unit Maximum Subsidy 0 Bedroom 0 $181,488 $0
1 Bedroom 0 $208,049 0
2 Bedroom 0 $252,994 0
3 Bedroom 30 $327,293 9,818,790
4 Bedroom 0 $359,263 0
Maximum Project Subsidy 30 $9,818,790
Step 5: Maximum HOME Investment, Lesser of
Proposed Investment (Step 2) $9,807,571
Actual Cost of HOME Units (Step 3) $20,416,754
Maximum Project Subsidy (Step 4) $9,818,790
Maximum HOME Investment 30 HOME Units $9,807,571
1 2
Includes $0 in Santa Ana Project Delivery costs.
The ineligibe costs include: capitalized reserves.
Prepared by: Keyser Marston Associates, Inc.
File name: Habitat Alton_12 6 24; HOME
EXHIBIT 3
TABLE 6
HOME LOW INCOME SALES PRICES
HABITAT FOR HUMANITY - ALTON
SANTA ANA, CALIFORNIA
Low Income
I. HOME Program 80% HUD Median
1 Person $88,400
2 Person $101,000
3 Person $113,650
4 Person $126,250
5 Person $136,350
6 Person $146,450
7 Person $156,550
8 Person $166,650
II. Affordable Sales Price Calculation
One-Bedroom
Unit
Two-Bedroom
Unit
Three-Bedroom
Unit
Four-Bedroom
Unit
A. Income Available for Housing Expenses
Benchmark Household Size 2 3 4 5
Household Income Limit $101,000 $113,650 $126,250 $136,350 % Income Allotted to Housing Costs 30% 30% 30% 30%
Total Income Available for Housing Expenses $30,300 $34,095 $37,875 $40,905 B. Ongoing Expenses
HOA Fees ($400/Unit/Month) $4,800 $4,800 $4,800 $4,800
Insurance @ 0.75% of Affordable Sales Price 1,793 2,027 2,252 2,414 Annual Utilities Allowance 2 2,592 3,396 4,296 5,268
Property Taxes @ 1.25% of Affordable Sales Price 2,989 3,378 3,754 4,023 Total Ongoing Expenses $12,174 $13,601 $15,102 $16,505
C. Income Available for Mortgage Debt Service $18,126 $20,494 $22,773 $24,400 D. Affordable Sales Prices
Supportable Mortgage @ 7.00% Interest Rate 3 $227,000 $256,700 $285,200 $305,600 Home Buyer Down Payment @ 5% of Affordable Sales Price 12,000 13,500 15,000 16,100 III. Affordable Sales Prices $239,000 $270,200 $300,200 $321,700 1 2
3 Based on the utility allowances published by the Santa Ana Housing Authority on October 1, 2024.
Based on Habitat estimate which is approximately equal to the Freddie Mac monthly average between November 2023 and October 2024, for a fixed- interest rate loan with a 30-year amortization period.
Based on 80% HUD Median. The affordable sales prices will ultimately be determined immediately prior to the sale of the units.
Low Income Sales Price
Prepared by: Keyser Marston Associates, Inc.
File name: Habitat Alton_12 6 24; HUD Afford
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