Toolkit Rec ecovery Ho Housi using Dev evel elopm pmen ent T - PowerPoint PPT Presentation

Community Capital Assistance Project Toolkit

Rec ecovery Ho Housi using Dev evel elopm pmen ent T Toolkit – BUDGET T TOOL OL • This Excel Spread sheet will allow you to enter all of your accrued/expected development and operating expenses as well as calculate your debt service and track your sources of funding. • Formulas will be set so that you just enter your information in yellow cells and the calculations are done for you.

Recover ery H Housin ing D Dev evelo elopmen ent Toolkit it – BUD UDGET ET SOFT COSTS Recovery Housing Development Budget ABC Development Project Name: Project Address: 50 Number of Units/Beds: Use of Funds Total Per Unit Soft Costs Acquistion- Land (New Construction) $200,000 $4,000 Acquistion- Building (Renovation) $0 $0 Engineering $3,500 $70 Market Analysis $1,200 $24 Environmental Study- Phase I & II (if applicable) $3,000 $60 Survey (ALTA or Mortgage Location Survey) $3,500 $70 Physical Capital Needs Assessment (Renovation Only) $1,200 $24 Title and Recording $1,200 $24 Consulting Fees $5,000 $100 Real Estate Taxes/Impact Fees $1,500 $30 Additional Environmental (Soil Testing, Lead Testing, etc.) $0 $0 Additional civil engineering (if applicable) $0 $0 Architectural drawings & construction supervision $5,000 $100 Appraisal $500 $10 Legal Fees $2,200 $44 Lender Legal Fees $5,000 $100 Lender Loan Fees (Origination and Servicing) $3,000 $60 Construction Loan Interest $25,000 $500 Accounting $1,000 $20 Soft Cost Contingency $8,000 $160 2.30% Marketing Costs $3,000 $60 Other $0 $0 Other $0 $0 Other $0 $0 Other $0 $0 Development Fee $75,000 $1,500 5.47% Total Soft Costs $347,800 $6,956

Rec ecovery H Hou ousing D Development Toolk oolkit – BUDGE GET HARD COSTS Hard Cost - Construction Permits & Tap Fees $5,000 $100 Construction Insurance $300 $6 Bond (if required) $0 $0 Site Work $10,000 $200 Construction/Rehabilitation $1,000,000 $20,000 Appliances/Carpeting $4,000 $80 Building Permits / Tap Fees $2,000 $40 Contractor Fees - General Requirements $15,000 $300 1% Max - 6% Contractor Fees - Overhead $10,000 $200 1% Max - 2% Contractor Fees - Profit $15,000 $300 1% Max - 6% Contingency- Hard Cost $50,000 $1,000 4.93% 5% for New Construction / 10% for Rehabilitation Furniture, Fixtures & Equipment $3,000 $60 Other $400 $8 $1,114,700 $22,294 Total Hard Cost Capitalized Reserves Operating Reserves $0 6 months-operating expenses (Min 4 months of 1st year operating expenses ) Total Reserves $0 $0 $29,250 Total Development Budget $1,462,500

Rec ecovery H Hou ousing D Development Toolk oolkit – BUDGE GET SOURCES OF FUNDS Sources of Funds Total Per Unit Construction Sources of Funds 1,406,250 Construction period costs Bank/Bridge Loan $500,000 1,000,000 Non-bank sources Foundation Funds/Donated $250,000 4.00% Construction Loan Interest Rate City/County HOME or other $250,000 24 Term of Construction financing County ADAMHS $0 OMHAS Capital $0 Max Award- $500,000 FHLBank AHP OHFA HDGF Other $500,000 Total Construction Sources of Funds $1,500,000 Permanent Sources of Funds Bank $500,000 5.00% Permanent Loan Interest Rate Foundation Funds/Donated $250,000 24 Term of Permanent financing City/County HOME or other $250,000 03/01/19 Loan Closing Date County ADAMHS $0 OMHAS Capital $500,000 FHLBank AHP $0 OHFA HDGF $0 Other $0 Deferred Developer Fee $0 Total Permanent Sources of Funds $1,500,000 Surplus/(Gap) $0

Rec ecovery H Hou ousing D Development Toolk oolkit – BUDGE GET OPERATING BUDGET Recovery Housing Operating Budget ABC Development Utility Rent Occupancy Rents # of Bedrooms # of Units Gross Rent Allowance Net Rent Annual Restriction Restriction 0 20 275 75 200 48000 1 30 335 90 245 88200 2 0 0 3 0 0 0 0 0 0 0 0 0 0 Total 50 $136,200 Operating Proforma REVENUE 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 Growth % Rent 1.02 136,200 138,924 141,702 144,537 147,427 150,376 153,383 156,451 159,580 162,772 166,027 169,348 172,735 176,189 179,713 Less Vacancy & Non Collection 7% 9,534 9,725 9,919 10,118 10,320 10,526 10,737 10,952 11,171 11,394 11,622 11,854 12,091 12,333 12,580 Operating Subsidy Gross Effective Rental Income 126,666 129,199 131,783 134,419 137,107 139,849 142,646 145,499 148,409 151,378 154,405 157,493 160,643 163,856 167,133 EXPENSES Per Unit Base Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 1.03 Management Fee (% Gross Rents) 8% 10,133 10,336 10,543 10,754 10,969 11,188 11,412 11,640 11,873 12,110 12,352 12,599 12,851 13,108 13,371 Utilities - Common Areas 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Utilities - Apartments 100 5000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 Water, Sewer, Storm Water 72 3600 3,708 3,819 3,934 4,052 4,173 4,299 4,428 4,560 4,697 4,838 4,983 5,133 5,287 5,445 5,609 Property Insurance 140 7000 7,210 7,426 7,649 7,879 8,115 8,358 8,609 8,867 9,133 9,407 9,690 9,980 10,280 10,588 10,906 Real Estate Taxes 160 8000 8,240 8,487 8,742 9,004 9,274 9,552 9,839 10,134 10,438 10,751 11,074 11,406 11,748 12,101 12,464 Maintenance 200 10000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439 13,842 14,258 14,685 15,126 15,580 Administrative 25 1250 1,288 1,326 1,366 1,407 1,449 1,493 1,537 1,583 1,631 1,680 1,730 1,782 1,836 1,891 1,947 Legal & Audit 40 2000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 2,768 2,852 2,937 3,025 3,116 Property Marketing (1% GEI) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Expenses 737 36,850 48,089 49,430 50,810 52,229 53,688 55,189 56,733 58,320 59,954 61,634 63,361 65,139 66,967 68,847 70,782 NET OPERATING INCOME 78,577 79,769 80,974 82,190 83,420 84,661 85,914 87,179 88,456 89,744 91,044 92,355 93,676 95,009 96,351

Rec ecovery H Hou ousing D Development Toolk oolkit – BUDGE GET DEBT SERVICE DEBT SERVICE 1st Mortgage - Permanent Financing Amount 500,000 Beginning Balance 500,000 495,134 480,294 464,711 448,349 431,169 413,130 394,190 374,302 353,419 331,493 308,470 284,296 258,914 232,262 Interest Rate 5.00% Principal 4,866 14,841 15,583 16,362 17,180 18,039 18,941 19,888 20,882 21,926 23,023 24,174 25,383 26,652 27,984 Amortization (Years) 20 Interest 8,333 24,757 24,015 23,236 22,417 21,558 20,657 19,709 18,715 17,671 16,575 15,424 14,215 12,946 11,613 Term in Years 20 Ending Balance 495,134 480,294 464,711 448,349 431,169 413,130 394,190 374,302 353,419 331,493 308,470 284,296 258,914 232,262 204,278 Annual Payment $39,597 Payment 13,199 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 Months in Service 1st year 4 Date of Loan Closing 03/01/19 1st Mortgage - Permanent Financing Amount 0 Beginning Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Interest Rate 0.00% Principal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Amortization (Years) 0 Interest 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Term in Years 0 Ending Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Annual Payment $0 Payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Months in Service 1st year 4 Date of Loan Closing 01/00/00 1st Mortgage - Permanent Financing Amount 0 Beginning Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Interest Rate 0.00% Principal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Amortization (Years) 0 Interest 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Term in Years 0 Ending Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Annual Payment $0 Payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Months in Service 1st year 4 Date of Loan Closing 01/00/00 TOTAL DEBT SERVICE 13,199 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 39,597 CASH FLOW 65378 40172 41376 42593 43822 45063 46317 47582 48858 50147 51446 52757 54079 55411 56754 Debt Service Coverage 1.56 1.58 1.59 1.61 1.63 1.64 1.66 1.67 1.69 1.71 1.72 1.74 1.75 1.76 Replacement Reserves Per Unit 5,833 18,025 18,566 19,123 19,696 20,287 20,896 21,523 22,168 22,834 23,519 24,224 24,951 25,699 26,470 17500 350

Toolk oolkit S it Sect ectio ions • Project Pre-Development • Questions when identifying a property • Questions when identifying an architect • Questions when identifying a general contractor • Soft Costs • Hard Costs • Operating Costs • Green Elements • Advanced Green Elements

PROEJ EJCT P PRE-DEVE VELOP OPMENT NT • Questions to consider when identifying a property • New Construction • NIMBY resistance? • Utilities? • Access? • Existing Building • Inspection • Scope the sewers. NIMBY (Not In My Back Yard) resistance?