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HomeMy WebLinkAboutStaff Report 4.A 02/24/2020p, L I85� DATE TO: FROM: February 24, 2020 Honorable Mayor and Members of the City Council through City Manager Jim Carney, Interim Housing Administrator SUBJECT: Consideration of a Resolution Approving Allocating City In -Lieu Housing Funds to Petaluma Ecumenical Properties for the proposed River City Affordable Housing Development at 951 Petaluma Blvd. South RECOMMENDATION It is recommended that the City Council approve a resolution authorizing an allocation of $1,500,000 of City In -Lieu funds for the Petaluma Ecumenical Properties (PEP) proposed fifty- four (54) veterans and homeless senior affordable rental housing development at 951 Petaluma Blvd. South (also currently known as the "River City Senior Apartments" project). BACKGROUND The affordability of housing in Petaluma has long been a priority for the Petaluma City Councils. City programs have done much to provide housing for every income level, with emphasis on first-time homebuyers, very low and low and moderate -income residents, and the homeless, all when funding was more plentiful. The City of Petaluma, through the partnership with affordable housing developers, has produced over 1500 housing units throughout the City. It is through these partnerships that the City fulfills Council goals and implements the Housing programs as detailed in the City's 2015-2023 General Plan Housing Element. The housing programs not only produced affordable housing, but also focused on preserving the affordable housing that the City currently has and preventing lower- income residents from losing their housing. In April of 2017, Petaluma issued a Request for Proposals for the development of affordable housing on the property at 951 Petaluma Boulevard South with submissions due on May 8, 2017. Three proposals were submitted, and staff reviewed all submittals. Interviews were held with all the proposers during the last week in May 2017. During the interview process it was communicated that the land would be the City's contribution to the development of the project. Petaluma Ecumenical Properties (PEP) was selected to develop the project. The City entered into an exclusive negotiating agreement with PEP on October 17, 2017 and on August 20, 2018, the City entered into a Development, Disposition and Loan Agreement (DDLA) with PEP addressing financing, project approval, and other conditions that, once satisfied, would result in transfer of most of the City -owned property at 951 Petaluma Boulevard South to PEP for construction of senior affordable housing on the site. Currently, the City has contributed to the development of the PEP project at 951 Petaluma Blvd South a total of $1,390,000, which includes the value of the land and predevelopment expenses. Of that total, $60,000 came from the In -Lieu Housing fund. At the March 18, 2019 City Council meeting, the Council considered a request from PEP to provide additional funding for the project to close a $1,500,000 funding gap. There was Council consensus at that time to provide additional funding for the River City Senior Apartments with a combination of $906,000 of the City's HOME program funds and an additional $600,000 to come from other housing funds at staff discretion, with the in -lieu housing fund balance to be preserved if at all possible. ATITC701, L11%., MTraTiTum r6q=cii t11 for the River City apartment project from the City's In -Lieu Housing fund. This request was made because the California Department of Housing and Community Development ("HCD") recently advised the City on December 31, 2019 that HCD is now requiring a full application submittal and be subject to an HCD approval process for the City's use the HOME funds. That application to HCD is a lengthier and more involved process than staff and our housing partners had experienced previously. From a timing and cost perspective, it could delay and hinder PEP's ability to apply for 4% tax credit funding, the application for which is due in February 2020, as well as other potential state and federal funding sources for the project. DISCUSSION The Housing Administrator reviewed in December 2019 the In -Lieu Housing Fund and due to unanticipated revenue received from Burbank Housing the fund balance can absorb this request. Additionally, City staff feel confident that there will likely be one or more affordable housing projects coming forward in the near future that will be able to utilize the HOME funding instead of the PEP Housing project. The Housing Administrator provided below a summary of the In -Lieu Housing Fund as of 7/1/2019 showing actual revenue received in the amount of $1,019,756. The unbudgeted amount was from Park Lane's assigned note which generates residual receipts. It was not included in the budget because the City does not typically anticipate receiving residual receipt income until after Burbank Housing completes the audit for Park Lane, which is usually in May or June. NJYJEI�+i . Budgeted (including Fund Summary adj) $4,198,689 Eii 989,771 1 2,939 2 6/30/2020 Given that the FY 20 estimated ending fund balance is greater than expected, there are sufficient In -Lieu funds to allow the City to allocate the additional $1,500,000 that PEP Housing is requesting rather than use of •funds The programs that have been allocated funds from the In -Lieu Housing fund for 19-20 are as follows: • Petaluma People Services $91,953 • PEP Housing — River City development $600,000 • Burbank Housing — Old Ehn rehab $520,000 • COTS $20,000 • Vets Resource Center $20,000 • Administrative Costs $90,000 $ 1,341,953 PEP River City Affordable Apartment Project 951 Petaluma Blvd, South: A current proforma is attached showing the sources and uses for the development funds for the River City Senior Housing project. PEP has secured 19 project -based vouchers, which will offset costs, with the Santa Rosa Housing Authority and has applied for funds with the Homeless Emergency Aid Program (HEAP) as well as funding from the Affordable Housing Program. According to their timeline, PEP will also submit a 4% tax credit application to the California Tax Credit Application Committee (TCAC) by January 17, 2020 and apply by February 13, 2020 for the state HCD Veterans and Homeless funding. Should those funding requests be approved Project construction is expected to commence in September 2020. Regional Housing Need Allocation The completion of this project will increase our fulfillment of Petaluma's Regional Housing Need Allocation (RHNA) in the Very Low category by 26%. Currently, we have fulfilled 5% of our allocation in that category, shown below: Budgeted (including Actual Difference Fund Summary aj) alance 6/30/2019 $3,795,182 ($4,787,892 1$992,710 1 119-20 Revenue $542,275 1 1 $542,275 1 119-20 Expenses ($1,369,174) $1,369,174) lst. Balance $2,968,283 $3,960,993 $992,710 6/30/2020 Given that the FY 20 estimated ending fund balance is greater than expected, there are sufficient In -Lieu funds to allow the City to allocate the additional $1,500,000 that PEP Housing is requesting rather than use of •funds The programs that have been allocated funds from the In -Lieu Housing fund for 19-20 are as follows: • Petaluma People Services $91,953 • PEP Housing — River City development $600,000 • Burbank Housing — Old Ehn rehab $520,000 • COTS $20,000 • Vets Resource Center $20,000 • Administrative Costs $90,000 $ 1,341,953 PEP River City Affordable Apartment Project 951 Petaluma Blvd, South: A current proforma is attached showing the sources and uses for the development funds for the River City Senior Housing project. PEP has secured 19 project -based vouchers, which will offset costs, with the Santa Rosa Housing Authority and has applied for funds with the Homeless Emergency Aid Program (HEAP) as well as funding from the Affordable Housing Program. According to their timeline, PEP will also submit a 4% tax credit application to the California Tax Credit Application Committee (TCAC) by January 17, 2020 and apply by February 13, 2020 for the state HCD Veterans and Homeless funding. Should those funding requests be approved Project construction is expected to commence in September 2020. Regional Housing Need Allocation The completion of this project will increase our fulfillment of Petaluma's Regional Housing Need Allocation (RHNA) in the Very Low category by 26%. Currently, we have fulfilled 5% of our allocation in that category, shown below: Regional Housing Need Allocation — 2015-2023 (as of 12/31/18) Income Category Housing Need issued % of Need met Very Low (0-50% of AMI) 199 �ermits 9 5% ILow (51% - 80% of AMI) 103 23 22% (Moderate (81%-120% AMI) 121 ( 47 39% Above Moderate (over 120% of AMI 322 636 198% ITOTAL UNITS 745 I 719 FINANCIAL IMPACTS Paving the total request from the In -Lieu Housinz fund - If the City funded the entire $1,500,000 amount of PEP's request from the In -Lieu Housing fund, the current fund balance would cover that amount. There is currently no anticipated new revenue expected from in lieu fees over the next 2-3 years as the projects in the pipeline are in preliminary planning stages not currently under construction. hnpact — The In -Lieu Housing Fund balance would be reduced by an additional $900,000 to an estimated balance of approximately $3 million. On the other hand, the City's HOME funding would be freed up to be applied to another affordable housing project. City Housing staff will seek to maximize CDBG funds and secure other new affordable housing funds proposed by the Governor and approved by the Legislature. PEP is applying for other federal and state project development funding. The City's In -Lieu funds are expected to be provided and utilized at project construction expected to start in September 2020. Therefore, the City's funds will be budgeted for the 2020-2021 fiscal year. However, should PEP request City In -Lieu funds before July 1, 2020, in the current 2019-2020 fiscal year, staff will request Council to consider a FY 19-20 budget amendment at that time. Also, prior to start of construction of the River City project, the Council will be asked to consider authorization of the Disposition and Development Agreement (DDLA) that was amended in November 2019 to be further amended regarding use of City In -Lieu funds and transfer of the City -owned site at 951 Petaluma Blvd, South to PEP. RECOMMENDATION For the reasons cited above, staff recommends the Council adopt the resolution for the allocation of an additional $900,000 of the City's In -Lieu funds to replace $900,000 in City HOME funds, given the short time frame PEP has available to potentially secure the tax credit, state HCD Veterans and Homeless and other funding. To fulfill the goals of the City Council to promote and implement programs to increase affordable housing, staff is recommending revising the existing funding allocation to the PEP project via adoption of a resolution to allocate a total of $1,500,000 of the City's In Lieu Housing funds for the development of the PEP proposed River City Senior low-income rental housing project at 951 Petaluma Blvd., South. 0 ATTACHMENTS 1. Resolution 2. Memorandum from Petaluma Ecumenical Properties Request for Additional City In -Lieu Housing Funds for the Affordable Housing Development at 951 Petaluma Blvd. South 3. Sources and Uses of Funds spreadsheet for the PEP proposed River City veteran and senior low-income rental project at 951 Petaluma Blvd. South. ATTACHMENT 1 Resolution No. 2020 - of the City of Petaluma, California RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETEALUMA ALLOCATING $1,500,000 OF HOUSING IN -LIEU FUNDS FOR THE TO PETALUMA ECUMENICAL PROPERTIES FOR THE PROPOSED FIFTY-FOUR VETERANS AND HOMLESS SENIOR LOW-INCOME RENTAL HOUSING DEVELOPMENT AT 951 PETALUMA BOULEVARD, SOUTH, KNOWS AS THE RIVER CITY SENIOR APARTMENTS WHEREAS, Petaluma Ecumenical Properties (PEP), a local affordable senior housing development non-profit organization has requested the City of Petaluma to allocate $1,500,000 from the City's Housing In -Lieu funds for the construction of the proposed River City Housing development; and WHEREAS, Petaluma Ecumenical Properties (PEP) has also requested the City of Petaluma to support the development of the proposed River City Senior low-income rental housing project on the City -owned site at 951 Petaluma Boulevard, South; and WHEREAS, Petaluma Ecumenical Properties (PEP) seeks other federal, state and private financing for the construction of the River City Senior project; and WHEREAS the City of Petaluma intends to support the development of the River City Senior housing development by transferring title of the site at 951 Petaluma Boulevard, South upon Petaluma Ecumenical Properties (PEP) securing the funds to build the project; and NOW THEREFORE, BE IT RESOLVED BY THE City Council of the City of Petaluma to allocate $1,500,000 of the Housing In -Lieu Funds to Petaluma Ecumenical Properties for the development of the River City Senior Housing project at 951 Petaluma Boulevard, South. I ATTACHMENT 2 Mary Stonnpe<rnarys@pephousing.org> Wed 1/8/20208:05AK4 ° Carney, James. ° Flynn, Peggy It was nice speaking with you yesterday. I promised I would email you with a project update. Because in February, we have to finalize our proforma. We just learned that HCD is requiring a new application for the use of the City's HOME funds before funds can be used for a project. Our experience with HCD and HOME is that it takes several months to get approval and funding. Due to the late nature of this information and our requirement to finalize our proforma and the need to use the City funding early in the construction process, we would like to move forward with all the City funds as in -lieu funds. We believe we will be successful with this round because we are including VHHP funding which will reduce our credit ask and make our application more competitive. We should be ready to move forward with construction in the late summer. HOME funds will further delay our project and add a $200,000 deficit to the project due to replacement reserves and added a transition reserve. The UMRs require a higher replacement reserve than TCAC/CDLAC. Please consider using the HOME funds for another project like the Mid -Pen project that is significantly behind our project schedule. Due to the pending deadline, we have including all in lieu housing funds in our proforma. We already have a letter from Sue with the City committing to those funds. agenda. Thank you in advance. Let's get this project built! Best wishes. Stompe Mary Executive Director b25Acacia Lane Santa Rosa, CAV54OV Work: 707-762-2336 707-7h2-2336ext. )A4 wvvvv.pcnhouainz.orsz 7 Attachment 3 RIVER CITY SENIOR APARTMENTS Page 1 .:....=a t� N Prepared For: PEP Prepared By: California Housing Partnership Corporation Version: Vh H P App Revised: 1/30/2020 Filename: River City 013020 4pct VH H P App.xlsm TABLE OF CONTENTS TOTAL OID ...,...�...:::...A;;�s„err,..... o ,..,...: Sources of Funds............................................................... 1 Cash Flow (Residential)............................................ 11a Uses of Funds................................................................... 2 Cash Flow (Commercial) .......................................... 11b Developer Fee Calculation..................................................3 AMOUNT Outstanding Debt & Reserves (Book).......................... 12a Unit Mix & Rental Income....................................................4 Outstanding Debt & Reserves (Tax)............................ 12b Tax Credit Calculation........................................................ 5 Net Cash Flow Fee Accruals..................................... 12c Base Year Income & Expense .............................................. 6 Schedule of Existing Debt........................................ 12d Mortgage Calculation & Bond Ratios ..................................... 7 Schedule of Deductions.......................................... 13 Lease-up/Placed-in-Service Schedule ................................... 8 Analysis of Taxable Income...................................... 14 Net Syndication Proceeds ................................................... 9 Capital Account & Exit Tax Liability............................ 15 TCAC Calculations............................................................. 10a Investment Summary.............................................. 16 TCAC Transfer Event Calculation .......................................... 10b Net Quarterly Benefits............................................ 17 SOURCES OF FUNDS - PERMANENT : 01 A� s AN . k, iz. TOTAL OID INTEREST INTEREST AMOUNT COST RATE AMORT (Yr) COMMENTS Total Permanent Debt: 2,881,000 Conventional Perm Loan 2,881,000 4.200% 30.0 Term - 15 (yrs) Index - 10YT- 1800% Spread - 210 bps U/W Cushion - 25 bps City of Petaluma 1,500,000 1,000% 0,800% 55.0 City of Petaluma (Land Loan) 1,300,000 1.000% 0.800% 55.0 County of Sonoma Housing Fund 600,000 3.000% 1.788% 55.0 PEP Sponsor Loan (City of Petaluma) 108,000 0,000% 0,000% 55.0 VHHP Loan 5,922,679 3.000% 3.260% 55.0 HEAP Loan 975,000 3.000% 1.788% 55.0 PEP Sponsor Loan (Home Depot) 250,000 0,000% 0,000% 55.0 Deferred Developer Fee 959,949 0.000% 0.000% Capital Contributions General Partner (Developer Fee) 0 General Partner (Other) 100 Limited Partners 14,742,366 Equity Pricing: Federal 0.9700 State 0.8100 TOTAL SOURCES 29,239,095 Surplus7(Shodfall) 0 PERMANENT LOAN INTEREST RATE PERM LOAN TRANCHE B INVESTOR EQUITY STACK OTHER ASSUMPTIONS Base Rate 3.900% 3.900% Cushion 0.250% 0.250% LIHTC Equity (Federal+State) 14,742,366 Current AFR: 2.76% MIP 0.000% 0.000% Historic Tax Credit 0 AFR Month: 6/1/19 GNMAIServiang 0.000% 0.000% Investment Tax Credit (Solar Pb 0 AFR Cushion: 0.50% Issuer 0.050% 0.050% 4,000 Issuermin7yr Subtotal LP Equity 14,742,366 Total IAFR: 3.26% Trustee 0.000% 0.000% 0 perannum Rating 0.000% 0.000% 0 perannum CA Certificated Credit Sale 0 Remarketing 0.000% 0.000% 0 perannum Total Investor Equity 14,742,366 Rebate Analyst 0.000% 0.000% 0 perannum Total 4.200% 4.200% SOURCES OF FUNDS - CONSTRUCTION :, INTEREST AMOUNT RATE TERM (Mos.) COMMENTS Construction Loan 16,455,142 4.464% 24 Taxable Construction Loan 4,727,825 4.464% 24 City of Petaluma 1,500,000 1.000% 24 City of Petaluma (Land Loan) 1,300,000 1.000% 24 PEP Sponsor Loan (City of Petaluma) 108,000 0.000% 24 PEP Sponsor Loan (Home Depot) 250,000 0.000% 24 Costs Deferred Until Conversion 1,863,842 See page 2 -right column Deferred Developer Fee 959,949 Capital Contributions LP Equity - Construction Period General Partner (Developer Fee) 0 LP Equity used for construction 1,474,237 10.00% General Partner (Other) 100 LP Equity used for bond collateral 0 0.00% Limited Partners* 1,474,237 Total Equity During Constr 1,474,237 10.00% TOTAL SOURCES 30,214,095 Surplus/(Shortfall) 975,000 Sources Less Deferred To Conversion: 28.350.253 30.066, 595 CONSTRUCTION LOAN INTEREST RATE CONSTRUCTION LOAN VALUATION TAX-EXEMPT BOND DATA Index Type: LIBOR Restricted NOI 230,193 50% Test (see Page 7): 59.18% Current Index: 131% OAR 5.00% Issuer Inducement: TBD Spread: 1.75% Perm Loan Amount 4,603,864 CDLAC Alloc; 0.00 TBD Base Interest Rate (not including cushi 3.46% Credit Value 0.00 0 Percent of CDLAC Allocation Use 0.00% Cushion - Private Placement / Convent 1.00% Perm -Only Soft Debt 5,922,679 Const -only portion: 13,574,142 Interest Rate (All -In) 4.46% Total Value 10,526,543 LTV: 85.00% CDLAC Limit 22,707,500 Max. Const. Loan Amount 8,947,562 Commitment Amount TBD iz. RIVER CITY SENIOR APARTMENTS Page 2 Uses of Funds Demolition82,895 ,535 82.895 0 82,895 0 Version: VILHP App 0 0 0 Res Cost: 100.00% 2711 ,468 COST ALLOCATIONS I ELIGIBLE BASIS OTHER BAS'S & COST A .LOCATIONS 14,659,278 0 14,659,278 Res Sq Foot: 10000% 933,211 17,282 933,211 0 933,211 0 933211 0 933,211 100,000 GC- General Co nations 1,050,752 19,458 1,050,752 0 Defened to 0 Historic 0 1,050,752 1,050,752 GC - Overhead & Profit 734,413 13,600 DEPRECIABLE 0 Completion Land/Basis Rehab TO Tax 734,413 734,413 TOTAL TOTAL NOW NOW 265,155 CONST/ or for Tax Credit Credit Basis 0 TOTAL Per Unit RESIDENTIAL RESIDENTIAL DEPREC RESID NON -RES EXPENSE AMORTIZE REHAB ACO Perm Conv 50% Test Basis (Solar PV) ACQUISITION COSTS 0 120,658 120,658 Construction - Other- PhotoVoltaic System 198,927 3.684 198,927 0 198,927 0 Total Purchase Pace - Real Estate' 0 198,927 198.927 Contingency- Owners Construction 960.943 17,795 960.943 0 960,943 0 1 300,000 0 960,943 960.943 Contingency- Escalation 861,840 15,960 861,840 0 861,840 0 Total Construction Contract: 19,218,859' 861,840 861,840 610.532 11,306 610,532 0 610,532 0 Land 1,300,000 24.074 1,300,000 0 1,300,000 610.532 0 0 1,300,000 1,720 92.878 Legal -Acquisition 75.000 1,389 75.000 0 75,000 0 0 92,878 0 0 75,000 92,878 Off-site Improvements 311,730 5,773 311,730 0 0 311,730 0 311,730 0 311,730 311,730 35,000 HARD COSTS NEW CONSTRUCTION Demolition82,895 ,535 82.895 0 82,895 0 0 0 0 0 0 Hard Costs -Unit Construction 14,659,278 2711 ,468 14,659,278 0 14,659,278 0 14,659,278 0 14,659,278 14,659,278 Site Improvements/Landscape 933,211 17,282 933,211 0 933,211 0 933211 0 933,211 100,000 GC- General Co nations 1,050,752 19,458 1,050,752 0 1,050,752 0 1,050,752 0 1,050,752 1,050,752 GC - Overhead & Profit 734,413 13,600 734,413 0 734,413 0 734,413 0 734,413 734,413 GO Insurance 265,155 4,910 265,155 0 265,155 0 265,155 0 265,155 265,155 GO Bond Premium 120,658 2,234 120,658 0 120,658 0 120,658 0 120,658 120,658 Construction - Other- PhotoVoltaic System 198,927 3.684 198,927 0 198,927 0 198.927 0 198,927 198.927 Contingency- Owners Construction 960.943 17,795 960.943 0 960,943 0 960,943 0 960,943 960.943 Contingency- Escalation 861,840 15,960 861,840 0 861,840 0 861,840 0 861,840 861,840 REHAB SOFT COSTS Architecture - Supervision 675,000 12,500 675,000 0 675,000 0 675,000 0 675,000 675,000 6987 Design/Engmeenng-MEP 100,000 1.852 100,000 0 100,000 0 100,000 0 100,000 100,000 1035 Design/Engmeenng - Waterproofing 96.000 1,778 96.000 0 96,000 0 96,000 0 96,000 96,000 Design/Engmeenng- Stormwater management 54.000 1,000 54.000 0 54,000 0 54,000 0 54,000 54,000 Geotech/Soils Report 20,000 370 20,000 0 20,000 0 20,000 0 20,000 20,000 Engmeenng/ALTA Survey 212.000 3,926 212.000 0 212,000 0 212,000 0 212,000 212,000 Prevailing Wage Monitor 27.000 500 27.000 0 27,000 0 27,000 0 27,000 27,000 279 Local Development Impact Fees 610.532 11,306 610,532 0 610,532 0 610.532 0 610,532 610.532 Local Permits/Fees 92,878 1,720 92.878 0 92,878 0 92,878 0 92,878 92,878 Security During Const 35,000 648 35,000 0 35,000 0 35,000 0 35,000 35,000 Real Estate Taxes During Const 10.000 185 10.000 0 10,000 0 0 10,000 0 10,000 10,000 Insurance During Const 100.000 1,852 100.000 0 100,000 0 100,000 0 100,000 100,000 1035 Appraisal 10.500 194 10,500 0 10,500 0 10,500 0 10,500 10,500 Market/Rent Comp Study 9.500 176 9,500 0 9,500 0 0 0 0 Soft Cost Contingency 239,741 4,440 239.741 0 239,741 0 239,741 0 239,741 239,741 Predev Loan Interest/Fees 25.000 463 25,000 0 25,000 0 25,000 0 0 25,000 25,000 Construction Loan Interest 1,010,073 18,705 1,010,073 0 661,139 0 348,934 661,139 0 661,139 661,139 4,576 Construction Loan Interest - Tail 105,531 1A54 105,531 0 0 0 105,531 0 0 0 0 0 Ttle/Recording/Escrow-Construction 60.000 1,111 60.000 0 60,000 0 60.000 0 60,000 60.000 Tltie/Recording/Escrow-Permanent 12,500 231 12.500 0 12,500 12,500 Mie/Recording/Escrow -Syndication 10.000 185 10.000 0 0 Legal (Owner) Construction Closing 30.000 556 30,000 0 30,000 0 30,000 0 30,000 30,000 Permanent Closing 10.000 185 10.000 0 10,000 10,000 Organrzabon of Plastic 5,000 93 5,000 0 5,000 0 Syndication - LP 45.000 833 45.000 0 45,000 0 Syndication Consulting 77.500 1,435 77.500 0 77,500 2,500 Addit/Cost Cemfcation 20,000 370 20,000 0 20,000 0 0 TCAC Appicabon/Res/Momtonng Fee 34273635 34273 0 34,273 22,140 Marketing 75,000 1.389 75,000 0 75,000 0 Capitabzed Operating Reserve (3 mos) 158,055 2,927 158,055 0 158,055 35,555 Camia6'adSubsidy Tummostion Reserve (12 mo 192,147 3.558 192,147 0 192,147 192,147 Development Consulting 95.000 1.759 95.000 0 95,000 0 95,000 0 95,000 95,000 Developer Fee 3,048.949 56,462 3,048.949 0 3,048,949 0 3,048,949 0 1,589,000 3,048,949 3,048,949 31,926 COSTS OF ISSUANCE/FINANCING FEES Bond Counsel 55,000 1,019 55.000 0 0 0 55,000 0 0 0 0 Issuer Application Fee 2,500 46 2,500 0 0 0 2,500 0 0 0 0 15suer Fee -Upfront 24,207 448 24,207 0 0 0 24,207 0 0 0 0 Issuer Fee- Annual Dunng Const 16,455 305 16.455 0 0 0 16,455 0 0 0 0 Construction Lender Origination Fee 123,414 2,285 123.414 0 80,780 0 42,634 80,780 0 80,780 80,780 Canslmcbon Lender Expenses 34.000 630 34,000 0 22,255 0 11,745 22,255 0 22,255 22,255 Construction Lender Counsel 45,500 843 45.500 0 29,782 0 15,718 29,782 0 29,782 29,782 Penna nent Lender Expenses 10.000 185 10.000 0 0 0 10,000 0 0 0 0 Permanent Lender Counsel 15.000 278 15.000 0 0 0 15,000 0 0 0 0 Permanent Loan Origination Fee 28.810 534 28.810 0 0 0 28,810 0 0 0 0 CDLAC Fee 5.759 107 5.759 0 0 0 5,759 0 0 0 0 DEAD Fee 2,468 46 2,468 0 0 0 2,468 0 0 0 0 COI Contingency 15,000 278 15,000 0 0 0 15,000 0 0 0 0 Subtotal-Financing/Costs ofissuance 378,113 7,002 378,113 0 132,816 0 245,297 132,816 132,816 0 TOTAL DEVELOPMENT COSTS 29,239,095 541,465 29,239,095 0 1,950,597 26,432,462 0 529,465 316,570 26,432,462 0 1,863,842 27,807,462 25,300,324 244,765 TDO PerUnit 541.465 10000% TDC Net of accrued interest 29.239,095 TDC TCAC 29.091,595 29.091,595 RIVER CITY SENIOR APARTMENTS Developer Fee Calculation DEVELOPER FEE CALCULATION Maximum Base Developer Fee per TCAC Maximum Developer Fee per HCD Maximum Developer Fee per Local Maximum Developer Fee per TCAC/CDLAC App Most Restrictive Maximum Developer Fee: ACO. 0 0.00% 0 Maximum Cash Fee per TCAC (Lesser of Calc. or Reservation Amount) Maximum Cash Fee per HCD Maximum Cash Fee per Local Maximum Cash Fee per Owner Most Restrictive Maximum Cash Fee: DEVELOPER FEE PAYMENT SCHEDULE 0 0 0 CONST. Fee per Base TCAC Formula 3,493,277 Percent of Total 100.00% Max. Allowable Fee per TCAC (prorated) 3,493,277 Less: Development Consulting (95,000) Net Allowable 3,398,277 Less: Owner Reduction 0 Net Allowable 3,398,277 Maximum Base Developer Fee per TCAC Maximum Developer Fee per HCD Maximum Developer Fee per Local Maximum Developer Fee per TCAC/CDLAC App Most Restrictive Maximum Developer Fee: ACO. 0 0.00% 0 Maximum Cash Fee per TCAC (Lesser of Calc. or Reservation Amount) Maximum Cash Fee per HCD Maximum Cash Fee per Local Maximum Cash Fee per Owner Most Restrictive Maximum Cash Fee: DEVELOPER FEE PAYMENT SCHEDULE 0 0 0 Plus: Deferred Developer Fee 959,949 Plus: GP Capital 0 Total Developer Fee 3,048,949 31.48% 0.00% TOTAL 3,493,277 100.00% 3,493,277 (95, 000) 3,398,277 0 3,398,277 3,398,277 N/A N/A 3,048,949 3,048,949 2,405,000 2,1 13,418 N/A N/A 2,113,418 r � t.,;h`oa�:,IH r� Fa'...:•rm'p=4,r,trg +o. Version: VhHP App Page 3 Amount % of Cash Fee % of Total Fee Construction Close 500,000 23.93% 16.40% Interim Milestone 1 - 0.00% 0.00% Interim Milestone 2 0.00% 0.00% Interim Milestone 3 0.00% 0.00% Completion - 0.00% 0.00% Conversion 1,439,000 68.88% 47.20% Final LP Pay -in 1 100,000 4.79% 3.28% Final LP Pay -in 2 50,000 2.39% 1.64% Total: Cash Fee 2,089,000 Plus: Deferred Developer Fee 959,949 Plus: GP Capital 0 Total Developer Fee 3,048,949 31.48% 0.00% TOTAL 3,493,277 100.00% 3,493,277 (95, 000) 3,398,277 0 3,398,277 3,398,277 N/A N/A 3,048,949 3,048,949 2,405,000 2,1 13,418 N/A N/A 2,113,418 r � t.,;h`oa�:,IH r� Fa'...:•rm'p=4,r,trg +o. Version: VhHP App Page 3 RIVER CITY SENIOR APARTMENTS Page ;':.:rr& Rental Income � ...................... .....................:........ .. .. ... .......:................. w^1.....>;. Unit Mix Version: VhHP App UTILITY ALLOWANCES OBR 1BR 2BR 3BR 4BR 5BR1 AVERAGE AFFORDABILITY FOR VASH 72 LIHTC UNITS (% of Median) 39.53 % Non-VASH 72 9% TCAC INCOME TARGETING POINTS: 50.001 RENT LIMITS AS OF YEAR: 20191 RESIDENTIAL INCOME LIHTC _. Tier PIVER PI VEP Cf TY V.ibFt Rent/In-P., TCA. 30% 0 VASH SUBSIDIZED TOTAL 5 3,690 44,280 0 0 0 44,280 1LIHTC -Tier s Unit Actual Per Unit Per Unit Per Unit Total Total # of Per Unit Net Per Unit Total Total Total Unit Floor Rent TCAC Monthly Regulatory Actual Net Monthly Net Annual Net Subsidized Per Unit Per Unit Per Unit Subsidy Subsidy Monthly Annual Annual Type Number Area AMI % Gross Rent Net Rent Rent Rent Rent Units Rents increment Subsidy Subsidy Income IBR 19 642 30% 607 535 535 10,165 121,980 19 1,519 984 18,696 224,352 346,3321 TOTAL 19 1BR 21 642 50% 10,165 121,980 19 0 0 18,696 224,352 346,332 All 19 are VHHP units TOTAL 21 19,740 236,880 0 0 0 LIHTC - Tier 2 RIVER GrY Rent/Income Per- TCAC 30% 0 NOT 0 Unit Actual Per Unit Per Unit Per Unit Total Tota. # of Per Unit Net Per Unit Tota Total Total Unit Floor Rent TCAC Monthly Regulatory Actual Net Monthly Net Annual Net Subsidized Subsidy Subsidy Monthlyl Annual Annual Type Number Area AMI % Gross Rent Net Rent Rent Rent Rent Units Rents increment Subsidy Subsidy Income 113 1 642 30 % 607 535 535 535 6.420 0 0 0 0 0 6.420 TOTAL 1 535 6,420 0 0 0 6,4201 Thus Is a VHHP unit (keeping as a separate her for now in case we are able to use 2 Uas 1LIHTC -Tier 3 RIVEii CI'T'Y Rent/Income Per TCAC 35% 0 NOT 0 Unit Actual Per Unit Per Unit Per Unit Total Tota. # of Per Unit Net Per Unit Total Total Total Unit Floor Rent TCAC Monthly Regulatory Actual Ne[ Monthly Net Annual Net Subsidized Subsidy Subsidy Monthly Annual Annual Type Number Area AMI % Gross Rent Net Rent Rent Rent Rent Units Rents increment Subsidy Subsidy Income 1BR 7 642 35% 708 636 636 4,452 53.424 0 0 0 0 0 53.424 TOTAL 7 4,452 53,424 0 0 0 53,4241 2 of these are VHHP units LIHTC - Tier 4 NiVLN'Ci t Rent/Income Per. TCAC 40% 0 NOT 0 Unit Actual Per Unit Per Unit Per Unit Total To. ta # of Per Unit Net Per Unit Total Total Tota: Unit Floor Rent TCAC Monthly Regulatory Actual Net Monthly Net Annual Net Subsidized Subsidy Subsidy Monthly Annual Annual Type Number Area AMI % Gross Rent Net Rent Rent Rent Rent Units Rents increment Subsitly Subsidy Income 1 BR 5 642 40% 810 738 738 3.690 44.280 0 0 0 0 0 44.280 TOTAL 5 3,690 44,280 0 0 0 44,280 1LIHTC -Tier s RIVER CtFY Units Rent/Income Per. TCAC 50% 0 Units With With NOT 0 Actual Per Unit Per Unit Per Unit Unit Actual Per Unit Per Unit Per Unit Total Total # of Per Unit Net Per Unit Total Total Tota: Unit Floor Rent TCAC Monthly Regulatory Actual Net Monthly Net Annual Net Subsidized Rent Subsidy Subsidy Monthly Annual Annual Type Number Area AMI % Gross Rent Net Rent Rent Rent Rent Units Rents increment Subs Subsidy Income 1BR 21 642 50% 1.012 940 940 19,740 236.880 0 0 0 0 0 236.8801 TOTAL 21 19,740 236,880 0 0 0 236,8801 Staff Units -Site 1 PIVER CITY Units Units COMMERCIAL INCOME Test DTest Per Unit Units With With Units With With Unit Actual Per Unit Per Unit Per Unit Total To. ta Unit FloorRent TCAC Monthly Regulatory Actual Net Monthly Net Annual Net Type Number Area AMI % Gross Rent Net Rent Rent Rent Rent 2BR 1 980 0% 0 0 0 0 0 TOTAL 1 Commeraal Tenant 4 TOTAL 10,00 540 6,480 0 0 TOTAL RESIDENTIAL INCOME Tota: Total Monthly Annual Monthly Annual Monthly Monthly Annual No Section 8 Section 8 VASH VASH Test C Annual Test Number Net Rent Rent Income Income Income Income Income .income LIHTC 53 38,582 462,984 0 0 18,696 224,352 0 0 Non-LIHTC 0 0 0 0 0 0 0 0 0 Staff Units 1 0 0 0 0 0 0 0 0 TOTAL 54 38,582 462,984 0 0 18,696 224,352 0 0 MISCELLANEOUS INCOME Units Units COMMERCIAL INCOME Test DTest Per Unit Units With With Units With With Without Income Per Monthly Annual Subsidy Total Units Month Tota: Total 0 Laundry I Vending 10.00 540 6,480 Commercial Tenant 1 Other 000 0 0 Commercial Tenant 2 Parking 000 0 0 Commeraal Tenant 3 0 4BR 0 0 0 0 Commeraal Tenant 4 TOTAL 10,00 540 6,480 Commeraal Tenant 5 0 TOTAL 0 19 0 0 Commercial Tenant 6 541 Commerce Tenant 7 TOTAL SUBSIDIZED UNIT MIX SUMMARY I Monthly Units Units Units Test DTest Unit Units With With Units With With Without Income Type Section 8 VASH Test C Test D Subsidy Total Units OUR 0 0 0 0 0 0 1FR 0 19 0 0 34 53 2BR 0 0 0 0 1 1 3BR 0 0 0 0 0 0 4BR 0 0 0 0 0 0 5 B 0 0 0 0 0 0 TOTAL 0 19 0 0 35 541 I Monthly Annual Grand Total Test DTest D Total Floor Income Income Income Area 0 0 687,336 34,026 0 0 0 0 0 0 0 980 0 0 687,336 35,0061 ' Monthly Annual Annual Rental Rental Monthly NNN NNN Floor Area Income Income Income Income 0 0 0 0 0 0 0 0 0 0 0 0 I RIVER CITY SENIOR APARTMENTS Calculation of Tax Credits Version: VhHP App TOTAL ELIGIBLE COSTS Less: 50% Energy Investment Tax Credit (Res. Portion) Historic Tax Credit (Res. Portion) Non -Eligible Federal Financing Non -Eligible Grants Soft Loan Basis Deduction lVoluntary Reduction for Tie -Breaker ELIGIBLE BASIS Threshold Basis Limit TBL: Exclude GP Cap/DDFfor 4%/State REQUESTED UNADJUSTED ELIGIBLE BASIS (For Tiebreaker) HIGH COST ADJUSTMENT (Y or N) Y A in 2020 (951 Petaluma Blvd. S. Petaluma, CA 94952) with *? ADJUSTED ELIGIBLE BASIS APPLICABLE FRACTION* QUALIFIED CREDIT BASIS CREDIT RATE (TCAC UNDERWRITING) State - Total Federal Annual/Yr 1-3 State Year 4 - State Page 5 MAX. POTENTIAL FEDERAL CREDIT (No Vol Basic Reduct/Actaal Rate) FEDERAL Credit Rates 3.18% 3.18% CALIFORNIA 1,113,335 1,113,335 Credit Rate Locked? NO CONST/ MAX. CREDIT AMOUNT PER TCAC UNDERWRITING CONST/ 1,113,335 1,113,335 ACQUISITION REHAB TOTAL ACQUISITION REHAB TOTAL 0 26,432,462 26,432,462 0 26,432,462 26,432,462 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (10,200,000) (10,200,000) 0 26,432,462 26,432,462 0 16,232,462 16,232,462 55, 073,157 959,949 0 26,432,462 26,432,462 0 16,232,462 16,232,462 100.0% 130.0% 100.0% 100.0% 0 34,362,201 34,362,201 0 16,232,462 16,232,462 100.0% 100.0% 100.0% 100.0% 0 34,362,201 34,362,201 0 16,232,462 16,232,462 13.0% 30.0% 3.24% 3.24% 3.18% 9.00% 3.46% 3.00% MAX. POTENTIAL FEDERAL CREDIT (No Vol Basic Reduct/Actaal Rate) Credit Rates 3.18% 3.18% Potential Credit 0 1,113,335 1,113,335 Credit Rate Locked? NO MAX. CREDIT AMOUNT PER TCAC UNDERWRITING Federal Annual/Yr 1 State 0 1,113,335 1,113,335 Yr 2 State Yr 3 State Yr4 State Total MAX PER PROJECT ALLOCATION (9% ONLY) ACTUAL TCAC CREDIT RESERVATION Federal Annual/Total State MAXIMUM ALLOWABLE CREDITS (Lesser of above) Federal Annual/Total State MAXIMUM ALLOWABLE - TEN YEAR TOTAL FIRST YEAR CREDIT CALCULATION (Federal) Actual Basis Method? Y Maximum Potential Federal Credit w/ Actual Basis -Annual Wgt Avg Lease -up (from Page 7) Maximum Potential Prorated Credit w/ Actual Basis TCAC Credit Reservation -Annual First Year Credit (Lesser of Above) r min-, N/A N/A N/A 0 1,113,335 1,113,335 11,133,353 0 2,378,922 2,378,922 0 2,378,922 2,378,922 0 111,895 111,895 0 0 0 0 4,869,739 4,869,739 N/A N/A N/A 4,869,739 Per unit 90,180 4,869,739 Acquisition Rehab/NC "A" Bldgs: Acq Rehab/NC "B" Bldgs: Acq Rehab/NC 0 1,113,335 0 1,113,335 0 0 66.8% 66.8% 0.0% 0.0% 0 743,974 0 0 0 1,113,335 0 1,113,335 0 0 0 743,974 0 0 RIVER CITY SENIOR APARTMENTS Base Year Income & Expense Version: VhHP App INCOME Scheduled Gross Income - Residential Total Gross Subsidy Income - VASH Misc. Income Vacancy Loss - Residential Vacancy Loss - VASH EFFECTIVE GROSS INCOME EXPENSES - RESIDENTIAL Administrative Advertising Legal Accounting/Audit Security Other: Misc. Admin Total Administrative Management Fee Utilities Fuel Gas Electricity Water/Sewer Internet Total Utilities Payroll/Payroll Taxes On -Site Manager/Office Admin Maintenance Payroll Manager Unit Expense/(Credit) Payroll Taxes/Benefits Total Payroll/Payroll Taxes Insurance Maintenance Painting Repairs Trash Removal Exterminating Grounds Elevator Other Total Maintenance Other Annual Post Construction BMP Inspection Misc. Tax/License SPONSOR OPEX INFLATOR TO COMPLETION Total Other Resident Services Tenant Services Mental Illness Counseling Total Resident Services Replacement Reserve Real Estate Taxes TOTAL EXPENSES - RESIDENTIAL Per Unit PerAnnum (incl. Reserves) Per Unit Per Annum (w/o taxes/res/svc)) TCAC Minimum (w/o taxes/res/svc) TOTAL EXPENSES - COMMERCIAL NET AVAILABLE INCOME Less: Mandatory Annual HCD Payment (Grossed Up for DSCR Factor) Less: Local Compliance Fee ADJUSTED NET AVAILABLE INCOME: TOTAL ADJUSTED NET OF COMMERCIAL: ADJUSTED NET AVAILABLE INCOME: NET OF OP SUBSIDY Debt Service Coverage Ratio AVAILABLE FOR DEBT SERVICE (OP SUBSIDY OVERHANG) NET AVAILABLE INCOME AFTER SENIOR DEBT SERVICE r 5.0% 5.0% Page 6 462,984 224,352 6,480 (23,473) (11,218) 659,125 225 1,500 15,906 12,500 11,560 3,500 41,691 11,340 46,656 0 46,270 0 9,500 25,000 2,250 2,800 30,000 36,750 50,000 40,000 0 80,000 35,650 32,400 125,650 16,600 0 9,200 12,200 930 9,100 3,500 11,340 46,270 2,000 800 0 2,800 30,000 50,000 0 80,000 32,400 115 428,932 7,943 5,860 4,100 1.15 0 230,193 (28,607) (3,710) 197,877 197,877 (15,258) 1.15 185,334 25,810 RIVER CITY SENIOR APARTMENTS Mortgage Calculation/Bond Ratios Version: VhHP App PERM LOAN Page 7 Uses baseline year NOI; includes annual fees Financing Type: Conventional Perm Loan Underwriting Maximum Constraint Loan Amount Rate: 4.150% Debt Service Coverage 1.15 2,881,189 Term (mths): 360 Lender Commitment NA NOI for DS: 197.877 Max PMT @ DSCR: 172,067 MAXIMUM MORTGAGE 2,881,189 Annual Fees: 4 000 Annual DS Payment 168,067 INTEREST RATE STACK PERM LOAN Base Rate 3.9000% Cushion 0.2500% MIP 0.0000% GNMA/Servicing 0.0000% Issuer 0.0500% Trustee 0.0000% Rating 0.0000% Remarketing 0.0000% Rebate Analyst 0.0000% TOTAL 4.2000% DCR 1.15 LOAN AMOUNT COMPARISON SELECTED 1 PERM LOAN 2,881,189 2,881,189 TRANCHE B 0 0 221(d)(4) 2,634,512 0 BOND/ REHABILITATION RATIOS Tax -Exempt Financing Ratio CDLAC Allocation Limit Effective Date Limits 11/1/18 Units Per -Unit Limit Total Limit Studio and SRO 0 402,500 0 One BR 53 420,000 22,260,000 Series A Bonds 2,881,000 Two BR 1 447,500 447,500 Series B Bonds 0 Three BR 0 492,500 0 Short Term Bonds (Construction Loan Portior 13.574.142 Four BR or More 0 517,500 0 TOTAL TAX-EXEMPT FINANCING 16,455,142 TOTAL 22,707,500 TOTAL BASIS + LAND ALLOCATION 27,807,462 Potential Bond Size 8,947,562 Over/(Under) -13,759,938 Percent Tax -Exempt Financing 59.18% Page 7 RIVER CITY SENIOR APARTMENTS Lease -Up / Placed -in -Service Schedule SCHEDULE Completed Lease Up by Month I Start of Construction September 1. 2020 Completion March 1, 2022 100% Occupancy June 1, 2022 Conversion September 1, 2022 Form(s) 8609 December 1. 2022 LIHTC SCHEDULE LIHTC SCHEDULE -- 2/3 CREDITS SINGLE BUILDING / MULTIPLE BUILDINGS - GROUP A SINGLE BUILDING / MULTIPLE BUILDINGS - GROUP A 1st Tax Credit Year. 20221 1 st Tax Credit Year: 20231 Version: VhHP App OPERATIONS SCHEDULE YEAR 1 2022 Page 8 Completed Lease Up by Month I Completed Lease Up by Month I Completed Lease Up by Month Month No. Units Percent) Month No. Units Percent) Month No. Units Percent Jan -22 0 0.0% Jan -23 0 0.0% Jan -22 0 0.0% Feb -22 0 0.0% Feb -23 0 0.0% Feb -22 0 0.0% Mar -22 0 0.0% Mar -23 0 0.0% Mar -22 0 0.0% Apr -22 18 34.0% Apr -23 0 0.0% Apr -22 18 33.3% May -22 18 34.0% May -23 0 0.0% May -22 18 33.3% Jun -22 17 32.1% Jun -23 0 0.0% Jun -22 18 33.3% Jul -22 0 0,0% Jul -23 0 0,0% Jul -22 0 0,0% Aug -22 0 0.0% Aug -23 0 0.0% Aug -22 0 0.0% Sep -22 0 0.0% Sep -23 0 0.0% Sep -22 0 0.0% Oct -22 0 0.0% Oct -23 0 0.0% Oct -22 0 0.0% Nov -22 0 0.0% Nov -23 0 0.0% Nov -22 0 0.0% Dec -22 0 0,0% Dec -23 0 0,0% Dec -22 0 0.0% Total 53 100.0% Total 0 0.0% Total 54 100.0% Total Avg % Qual. Occ. 66.8 % Total Avg % Qual. Occ. 0.0 % Total %Operating in First Year 66.7 MULTIPLE BUILDINGS - GROUP B MULTIPLE BUILDINGS - GROUP B YEAR 2 (cumulative) 2023 1st Tax Credit Year: 2023 1st Tax Credit Year: 2024 Month No. Units Percent Month No. Units Percent Month No. Units Percent Jan -23 0 0.0% Jan -24 0 0.0% Jan -23 54 100.0% Feb -23 0 0.0% Feb -24 0 0.0% Feb -23 0 0.0% Mar -23 0 0.0% Mar -24 0 0.0% Mar -23 0 0.0% Apr -23 0 0,0% Apr -24 0 0,0% Apr -23 0 0.0% May -23 0 0.0% May -24 0 0.0% May -23 0 0.0% Jun -23 0 0.0% Jun -24 0 0.0% Jun -23 0 0.0% Jul -23 0 0.0% Jul -24 0 0.0% Jul -23 0 0.0% Aug -23 0 0.0% Aug -24 0 0.0% Aug -23 0 0.0% Sep -23 0 0.0% Sep -24 0 0.0% Sep -23 0 0,0% Oct -23 0 0.0% Oct -24 0 0.0% Oct -23 0 0.0% Nov -23 0 0,0% Nov -24 0 0,0% Nov -23 0 0.0% Dec -23 0 0.0% Dec -24 0 0.0% Dec -23 0 0.0% Total 0 0.0% Total 0 0.0% Total 54 100.0% Total Avg % Qual. Occ. 0.0% Total Avg % Qual. Occ. 0.0% Total % Operating in 2nd Year 100.0% PIS SCHEDULE FOR BUILDING BASIS DEPRECIAT ON PIS SCHEDULE FOR REHAB/NC BASIS DEPRECIATION PIS SCHEDULE FOR SITEWORK/PERS. PROP. DEPRECIATION YEAR 1 YEAR 1 YEAR 1 Mid -Month Convention 2022 Mid -Month Convention 2022 Mid -Year Convention 2022 Bldg. PIS by Month Bldg. PIS by Month Bldg. PIS by Month Month No. Units Dep. Percent Month Building No. No. Units Percent Month Building No. No. Units Percent Jan -22 0 0.0% Jan -22 0 0 0.0% Jan -22 0 0 0.0% Feb -22 0 0.0% Feb -22 0 0 0.0% Feb -22 0 0 0.0% Mar -22 0 0.0% Mar -22 1 54 4.2% Mar -22 1 54 0.0% Apr -22 18 1,4% Apr -22 0 54 83% Apr -22 0 0 0,0% May -22 36 4.2% May -22 0 54 8.3% May -22 0 0 0.0% Jun -22 54 6.9% Jun -22 0 54 8.3% Jun -22 0 0 0.0% Jul -22 54 8.3% Jul -22 0 54 8.3% Jul -22 0 0 8.3% Aug -22 54 8.3% Aug -22 0 54 8.3% Aug -22 0 0 8.3% Sep -22 54 8.3% Sep -22 0 54 8.3% Sep -22 0 0 8.3% Oct -22 54 8.3% Oct -22 0 54 8.3% Oct -22 0 0 8.3% Nov -22 54 83% Nov -22 0 54 83% Nov -22 0 0 83% Dec -22 54 8.3% Dec -22 0 54 8.3% Dec -22 0 0 8.3% TOTAL 54 62.5% TOTAL 54 79.2% TOTAL 54 50.0% Total Avg % PIS Y1 62.5% Total Avg % PIS Y1 79.2% Total Avg % PIS Y1 50.0% YEAR 2 (cumulative) YEAR 2 (cumulative) YEAR 2 (non -cumulative) Jan -23 54 8.3% Jan -23 0 54 8.3% Jan -23 0 0 8.3% Feb -23 54 8.3% Feb -23 0 54 8.3% Feb -23 0 0 8.3% Mar -23 54 8.3% Mar -23 0 54 8.3% Mar -23 0 0 8.3% Apr -23 54 8.3% Apr -23 0 54 8.3% Apr -23 0 0 8.3% May -23 54 8.3% May -23 0 54 8.3% May -23 0 0 8.3% Jun -23 54 8.3% Jun -23 0 54 8.3% Jun -23 0 0 8.3% Jul -23 54 8.3% Jul -23 0 54 8.3% Jul -23 0 0 8.3% Aug -23 54 8.3% Aug -23 0 54 8.3% Aug -23 0 0 8.3% Sep -23 54 8.3% Sep -23 0 54 8.3% Sep -23 0 0 8.3% Oct -23 54 8.3% Oct -23 0 54 8.3% Oct -23 0 0 8.3% Nov -23 54 83% Nov -23 0 54 83% Nov -23 0 0 83% Dec -23 54 8.3% Dec -23 0 54 8.3% Dec -23 0 0 8.3% TOTAL 54 100.0% TOTAL 54 100.0% TOTAL 0 100.0% Total Avg % PIS Y2 100.0% Total Avg % PIS Y2 100.0% Total Avg % PIS Y2 100.0% RIVER CITY SENIOR APARTMENTS Calculation of Net Syndication Proceeds Version: VhHP App Total Federal Credit (10 yr) & State Credit 16,003,092 Total Federal Credit 11,133,353 Total State Credit 4,869,739 Gross Proceeds (Total) 14,742,366 Gross Proceeds - Federal Credit 10, 798,273 Gross Proceeds - State Credit 3,944,094 Gross Proceeds (net of Energy/Historic Credit Proceeds) 14,742,366 Less: LP Syndication Costs Attorney 50,000 Accountant 20,000 Consulting 77,500 Other: Total Syndication Costs 147,500 Total Syndication Costs/Gross Proceeds 0.01 % (Syndication Load) Net Proceeds 14,594,866 Net Proceeds/Total Fed and State Credit 0.912003 tax credit price Gross Proceeds (Total)/Total Fed and State Credit 0.921220 tax credit price Gross Proceeds - Federal/State Disaggregated Federal 0.970000 tax credit price State 0.810000 tax credit price Net Proceeds - Federal/State Disaggregated Federal 0.960199 tax credit price State 0.801816 tax credit price Certficated State Credits Total State Credit Certificates 0 Gross Proceeds from Certificated Credits 0 Gross Proceeds/Certificated Credit 0.81000 Total Equity Gross Proceeds from LIHTC 14,742,366 Gross Proceeds from Energy Credit 0 Gross Proceeds from Historic Credit 0 Total Equity 14,742,366 RIVER CITY SENIOR APARTMENTS . ..................................... ............... .... TCAC Calculations & Scoring Version: VhHP App THRESHOLD BASIS LIMIT 26,432,462 Total Eligible Basis Net of Developer Fee 23,288,513 Total HCD Adjusted Threshold Basis Limit 25,987,382 County: Sonoma Adjusted Threshold Basis Limit Multiplied by 160% 41,579,812 Total Eligible Basis - High Cost Test for Dev Fee Calc. 25,788,513 9% or 4% credits: 4% Total Adjusted TBL (Net of Boosts for Affordability) 25,987,382 Amount Over/(Under) 160% Limit (15,147,349) Year: 2020 Cash Fee Factor 100.383%1 Base Limits for Geographic Region Threshold Basis Limit for This Project Per Unit Unit Type 9% 4% Unit Type # Units Basis Limit Total 0 BR 268,043 312,334 0 BR 0 312,334 0 1 BR 309,051 360,118 1 BR 53 360,118 19,086,254 2 BR 372,800 434,400 2 BR 1 434,400 434,400 3 BR 477,184 556,032 3 BR 0 556.032 0 4 BR 531,613 619,454 4 BR 0 619,454 0 5 BR 531,613 619,454 5 BR 0 619.454 0 54 19,520,654 Energy/Resource Efficiency Boosts Additional Basis Adjustments Boost for Prevailing Wage 20,0% 3,904,131 Renewables (50% tot./90 % area) 0% Boost for Project Labor Agreement 0,0% Renewables (75% CA/90% area) 0% Boost for Parking beneath Units 0.0% Title 24 + 15% 0% Boost for Childcare 0.0% Post -rehab improvement > 80% 0% Boost for 100% Special Needs 0.0% Greywater landscaping 0% Boost for elevator service 10.0% 1,952,065 Community gardens > 60 s.f. 0% Subtotal Boost 30.0% 5,856,196 Natural flooring kitchens 0% Boost for Energy / Resource Efficiency 0.0% 0 Natural flooring common area 0% Toxic/Seismic Abatement Costs 0,0% 0 EPA Indoor Air Plus Program met 0% Local Development Impact Fees 610,532 High Opportunity Area 0% 0 BONDS: Boost for units <= 50% AMI (excl. CA credit projec 1.0% 9,565,120 Subtotal Efficiency (Max 10%) 0% BONDS: Boost for units <= 35% AMI (excl. CA credit projec 2.0% 19,520,654 Total Threshold Basis Limit 55,073,157 Potential Eligible Basis (Less DDF/GP for 4%/state) 27,392,412 Eligible Basis Surplus / Deficit 27,680,745 TCAC HIGH COST TEST Total Eligible Basis 26,432,462 Total Adjusted TBL (Net of Fee Waivers) 55,073,157 Percentage of ATBL 47.995% Amount Over/(Under) 130% Limit (45,162,641) Page 10a HCD HIGH COST TEST I HIGH COST TEST FOR HCD CASH DEVELOPER FEE CALCULATION Total HCD Eligible Basis 26,432,462 Total Eligible Basis Net of Developer Fee 23,288,513 Total HCD Adjusted Threshold Basis Limit 25,987,382 Cash Developer Fee allowed by TCAC for 4% projects 2,500,000 Adjusted Threshold Basis Limit Multiplied by 160% 41,579,812 Total Eligible Basis - High Cost Test for Dev Fee Calc. 25,788,513 HCD high cost test result 101.713% Total Adjusted TBL (Net of Boosts for Affordability) 25,987,382 Amount Over/(Under) 160% Limit (15,147,349) Hiqh Cost Factor 99.235% Cash Fee Factor 100.383%1 i,. RIVER CITY SENIOR APARTMENTS 15 -Year Cash Flow Assumptions Vereton: Vh HP App Page lla Rent Increase Resldenhal Tenant Reni 2 00"° 0 Penn Loan - °" Debt Svc Yr -1 0 0"° 30,410 31,634 32762 33787 34704 35,50] 36,189 36744 3],165 3],446 37,578 37,555 3],368 3],009 36,471 35743 Rent Incmase -Section 8 2 00"r" Penn Loan -"6 Debt Svc Yr 0 0 0"r" Rent increase-VASH 211W, 0 P- Loan -°°Debt Svc Yr1 333°" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Rent Incmase Commercial Rents 2 00°" Penn Loan -% Debt Svc Yr 2 100 0°" Expenses increase 300°x" 0 Penn Loan -°a Debt Svc Yr3 1000°° 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Reserve Increase 000"° Rpardrral Rec.rnK loans T.tai"-" Credit Period Year: (1) 01 2 7 4 5 5 7 8 9 10 11 11 13 14 15 16 17 C4vof Petaluma 1609"" 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2031 2033 2034 2035 2036 2037 2038 GR OSS POTENTIAL INCOME -RESIDENTIAL CRy of Petaluma ILand Loan) 13 94"fi 0 0 308,656 469157 478,540 488,111 497,873 50]831 51],98] 528,347 538,914 549692 560,686 571,900 583,338 595005 606,905 619,043 631,424 Incremental Income VASH County of Sonoma H. -'D Fund 6 44"" 0 0 149,568 22]343 231,890 236,528 241,259 246084 251,005 256,026 261.146 266369 211,6% 2]],130 282,6]3 288326 294,093 299,9]5 305,9]4 Mrsc Income VHHP Loan General Partner 63 53"r" 90 00"" 0 0 4,320 6 S6fi 6,698 6,832 6 968 7108 ],250 ],395 ] 543 ] fi94 ],047 8,004 8 164 8 328 8,494 8,664 8 838 Vacancy Loss-Resrden0al 50°� 10 009° 0 0 (15,6491 (23786) (24,2621 (24]4]( (25,2421 (2574]) (2F, 2621 (26,]87( (2],3231 (278'91 (284271 (28,9951 (29,5751 (30 167) (30,]701 (31,3851 (32,0131 Vacancy Loss-VASH 50"r.. 0 0]( 4]81 1l 13671 1t 15951 11 18261 1( 2,0631 1l 2304 11 25501 1t z861 1( 3,05711( 33181t 35851 N 3,85]11( 4.13411( 441fi1 1t 4,]051 11 4,9991 1( 5,2991 GROSS EFFECTIVE INCOME TOTAL Cl-,umuto LP 0 0 439,417 F67 A14 681272 694,897 708795 722 A71 737431 752179 767223 782 567 ]98,219 814,183 830467 84]0]6 864,01] 881298 898924 Operating Expenses vul5tandartl Inflator 30"" 90" 0 0 264,355 404463 416,59] 429,094 441,967 455226 468,883 482,950 497,438 512361 52],]32 543,564 559,871 576 667 593,96] 611,786 630,140 TOTAL EXPENSES Excess Dlstnbuhons to GP 0 0 264 355 404 463 416 597 42094 441=167 455 226 468 883 482 950 497 438 512 361 527 732 543 564 559 871 576 667 593 967 611 786 630 140 Tofal E4pe--ResldenNal 30':" 0 0 264355 404463 416,597 429094 441,967 455226 468,883 482950 497438 512361 527,732 543564 559871 576667 593,967 611786 630,140 T.fai Expenses - C.mm.rclal 30°-� 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NET OPERATING INCOME 0 0 175,062 263451 264,675 265,803 266,828 26]]45 268,54] 269,230 269,785 270206 270486 270,619 270,596 270409 2]0,050 269,512 268,784 REPLACEMENT RESERVE 3?400 0 0 21,600 32400 32,400 32,400 32400 32400 32,400 32,400 32400 32400 32,400 32,400 32,400 32400 32,400 32,400 32400 Mandatory Annual HOD P--0 42"" 0 0 0 24 875 24 875 24 875 24 875 24 875 24 875 24 875 24 875 24 875 24 875 24 875 24 875 24 875 24 875 24 875 24 875 Local Compliance Fee 3710 0 024]3 3710 3]10 33_10 3]10 3 7 3]10 33_10 3]10 3 7 3]10 33_10 3]10 3 7 3]10 33_10 3]10 NET REMAINING INCOME 0 0 150.989 202466 203,690 204,818 205.843 206760 20],562 208,244 208,799 209221 209,501 209,634 209,610 209424 209,065 208,526 207.799 PERM LOAN Conventlonai Penn Loan Pnnclpai Balance (Ending) 2,881,000 0 0 2868,834 2,818893 2,]66,838 2]12,582 2656031 2,59]088 2,535,652 24]1617 2404,8]3 2,335306 2262,]9] 2187221 2108448 2,026343 1940,]65 1851,56] 1758,596 Annual Issuer Fee 4,000 0050°" 0 0 0 4660 4,000 4,000 4,000 a600 4,000 4,000 4,000 4660 4,000 4,000 4,000 4660 4,000 4,000 4,000 P._ Loan P&I 168 056 0 0 42,014 168 056 168,056 168,056 168,056 168 056 168,056 168,05' 168,056 168 056 168,056 168,056 168,056 168 056 168,056 168,05E 168,056 nteres[Payment 0 0 29,848 118114 116,001 113,800 111,505 109113 106,619 104,021 101,312 98489 95,546 92,4]9 89,283 85951 82,478 ]8,858 ]5.085 Pnnupal Payment 0 0 12 166 49 942 52 054 54 256 56 551 58 943 61 436 64 035 66 744 69 567 72 509 75 576 78 773 82 105 85 578 89 198 92071 TOTAL SERIES A DEBT SERVICE 0 0 42 014 172 056 172,056 1]2,056 172 056 172 GOO 172,056 1]2,056 172 056 172 GOO 172,056 172,056 172 056 172 GOO 172,056 1]2,056 172 056 NET COMMERCIAL CASH FLOW 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NET CASH FLOW 0 0 108,9]5 30,410 31,634 32,762 33,787 34,704 35,50] 36,189 36,744 3],165 37,446 37,578 37,555 3],368 37609 36,471 35,743 Remarmnq Net Gash Flow 0 0 108975 30410 31,634 32,762 33,787 34704 35,50] 36,189 36,744 3]165 37,446 37,578 37,555 3]368 37,009 36,471 35,743 Debt Service Coverage Ra[lo IAII Debt, NA NA 1 15 1 18 1 18 1 19 1 20 1 20 1 21 1 21 1 21 1 22 1 22 1 22 1 22 1 22 1 22 1 21 1 21 Debt Service Coverage Rah. IExciudrn. Sub.ldmate Debt) NA NA 1 15 1 18 1 18 1 19 1 20 1 20 1 21 1 21 1 21 1 22 1 22 1 22 1 22 1 22 1 22 1 21 1 21 DISTRIBUTION OF CASH FLOW DDF I AnnualAmt 0 0 0 108,9]5 30,410 31,634 32762 33787 34704 35,50] 36,189 36744 3],165 3],446 37,578 37,555 3],368 3],009 36,471 35743 DDF N-tnferest Rate 2 00°1 LP AMFI AnnuatAmt 7500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Inflator 1 00"" GPPMF2 AnnflalAmt 25,0001 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Inflator 1 00¢" Rpardrral Rec.rnK loans T.tai"-" 50001" C4vof Petaluma 1609"" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CRy of Petaluma ILand Loan) 13 94"fi 0 0 0 0 0 0 0 0 0 0 0 0 0 0 County of Sonoma H. -'D Fund 6 44"" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 VHHP Loan General Partner 63 53"r" 90 00"" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lmlted Panner 10 009° 0 0 0 U 0 0 0 U 0 0 0 U 0 0 0 U 0 0 0 TOTAL Cumulative t. GP 115,552 48056 49,49] 50,982 52,512 54087 55,]10 5],381 59102 608]5 62,]02 64,583 66,520 68516 70,5]1 ]2689 ]4,869 TOTAL Cl-,umuto LP 0 0 0 0 0 0 0 0 0 0 0 U 0 0 0 0 0 0 0 Maximum Net Cash Ff.. t. GP 90" 0A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Excess Dlstnbuhons to GP 0 0 15,552 48 056 49,497 50,982 52,512 54 087 55,]10 57,381 59102 60 875 62,702 64,583 66 520 68 516 70,571 72,689 74,869 RIVER CITY SENIOR APARTMENTS HCD VHHP Program VHHP Loan Limits County: Year: Sonoma 2019 Page X-4 Version: Initial 9%/VHHP Feasibility v.6 Base Loan Limits 0 BR 1 BR 2 BR 3 BR 4 BR+ 22 95,260 60% AMI 175,000 175,000 175,000 175,000 175,000 0 0 55% AMI 188,684 189,693 192,574 195,311 197,615 54 121,244 50% AMI 202,225 204,242 210,003 215,477 220,087 Percent VSH: 45% AMI 215,909 218,790 227,577 235,788 242,702 Calculated Points 40% AMI 229,450 233,339 245,007 255,955 265,174 Total Points 35% AMI 243,134 248,032 262,581 276,121 287,789 30% AMI 256,675 262,581 280,010 296,432 310,404 25% AMI 270,359 277,130 297,584 316,598 332,876 20% AMI 283,900 291,678 315,014 336,909 355,491 15% AMI 297,584 306,371 332,588 357,076 378,107 MGR UNITS: 175,000 175,000 175,000 175,000 175,000 VHHP: 9% addition to MHP base limit (175,000) (80,000) (175,000) (175,000) (175,000) VHHP: 4% addition to MHP base limij (175,000) 0 0 (175,000) (175,000) Assisted Unit Mix and Loan Calculation Unit AMI 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR % at AMI level 60% AMI 0 0 0 0 0 0 0.00% 55% AMI 0 0 0 0 0 0 0.00% 50% AMI 0 0 0 0 0 0 0.00% 45% AMI 0 0 0 0 0 0 0.00% 40% AMI 0 0 0 0 0 0 0.00% 35% AMI 0 2 0 0 0 0 9.09% 30% AMI 0 20 0 0 0 0 90.91% 25% AMI 0 0 0 0 0 0 0.00% 20% AMI 0 0 0 0 0 0 0.00% 15% AMI 0 0 0 0 0 0 0.00% Subtotal 0 22 0 0 0 0 Mgr Units 0 0 1 0 0 0 Total 0 22 1 0 0 0 % VHHP at 30% AMI (45% Min) 90.91% VHHP Max Per Loan Limit 15,922,679 VHHP Max Loan Per NOFA 10,000,000 Sponsor Limit (or lower request) Max Eligible VHHP 5,922,679 VHHP Supportive Service Coordination Costs VHHP Points: Unix Mix Max Op Ex Units Total Budget VHHP SH - Chronically Homeless 4,330 22 95,260 VHHP SH -Homeless w Disability 3,247 0 0 Extremely Low Income: 1,407 0 0 Other Units: 812 32 25,984 31 19,902 54 121,244 VHHP Points: Unix Mix VHHP Points: Rental Subsidy Number of Special Needs Units OR ELI Units for Non -SH 22 Number of Committed Operating Subsidies 19 Percent of Supportive Housing Units with subsidy 86.4% Points 25 Units Square Feet % of Assisted VHHP SH - Chronically Homeless 22 14,124 100.00% VHHP SH -Homeless w Disability 0 0 0.00% VHHP Other Homeless 0 0 0.00% VHHP Other Assisted Units 0 0 0.00% Unassisted Units 31 19,902 0.00% Total 53 34,026 100.00% Total VHHP Assisted 22 14,124 Percent VSH: 41.51% 41.51% 100.00% Percent VHHP 41.51% 41,51% Calculated Points 25 Maximum Points 25 Total Points 25 VHHP Points: Rental Subsidy Number of Special Needs Units OR ELI Units for Non -SH 22 Number of Committed Operating Subsidies 19 Percent of Supportive Housing Units with subsidy 86.4% Points 25 RIVER CITY SENIOR APARTMENTS Page X-4 HCD VHHP Program Version: Initial 9%/VHHP Feasibility v.6 Calculated Points 17 Maximum Points 20 Total Points 17 VHHP Points: Leveraging Funds do not need to be committed; excludes deferred developer fee, funds deposited for scheduled operating deficits but includes land donation with appraisal Permanent Sources for Assisted Units Total VHHP Share Conventional Perm Loan 2,881,000 1,195,887 General Partner (Other) 100 42 Tax Credit Equity 14,742,366 6,119,473 Total 32,475,178 13,480,263 Less VHHP: 5,922,679 Less Operating Deficit Reserve: Total VHHP Perm Sources: 7,557,584 Requested VHHP Funds 5,922,679 Percent of Funds to VHHP Assisted Units 128% Percent above 50% 78% Calculated Points 22.50 Maximum Points 15 Total Points 15.00 r �¢ X'.o„um