Private v. Public Subsidies:
An Analysis of Chapter 774 Subsidies For The Production of
Low and Moderate Income Rental Housing
by
David Searson Carter
Bachelor of Science
Bates College
1982
SUBMITTED TO THE DEPARTMENT OF ARCHITECTURE
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE
MASTER OF SCIENCE IN REAL ESTATE DEVELOPMENT AT THE
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
SEPTEMBER,
1988
David Searson Carter 1988
The author hereby grants to M.I.T.
permission to reproduce and to distribute publicly copies
of this thesis document in whole or in part.
Signature of the Author
I
-vd
c-ar on Ca rte r
Department of
Architecture
August 8, 1988
Certified by_
Michael Wheeler
Visiting Professor of Urban Studies and Planning
Thesis Supervisor
Accepted by
_-
-Michael Wheeler
Chairman
Interdepartmental Degree Program in Real Estate Development
1
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Private v. Public Subsidies:
An Analysis of Chapter 774 Subsidies For The Production of
Low and Moderate Income Rental Housing
by
David Searson Carter
SUBMITTED TO THE DEPARTMENT OF ARCHITECTURE
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE
MASTER OF SCIENCE IN REAL ESTATE DEVELOPMENT AT THE
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
ABSTRACT
Massachusetts
"anti-snob
zoning
law"
-
Chapter
774
-
allows
qualifying developers of affordable housing to overcome local
regulating barriers by expediting the permitting process and
over-riding exclusionary zoning.
As presently interpreted, the
law applies only to developers receiving a "state or federal
subsidy. "
This study questions the appropriateness of that requirement.
It introduces the concept of a private subsidy as a possible
alternative to the state and federal programs.
A financial
analysis of the subsidy programs that currently qualify under
Chapter 774 to create low and moderate income rental housing
is used to determine the "economic value" of each.
The
programs are compared and contrasted to a private subsidy
alternative through a discounted cash flow method of analysis.
The results of the study indicate that a private subsidy would,
under certain conditions, be a valuable addition to the current
programs.
TABLE OF CONTENTS
CHAPTER 1 -----------------------------------------------INTRODUCTION
4
Chapter 774; An Overview
CHAPTER 2 ---------------------------------------------
9
Chapter 774; Standards and Process
CHAPTER 3
--------------------------------------------STATE HOUSING ASSISTANCE FOR RENTAL
PRODUCTION
Outline of (SHARP) Program
SHARP Point System
SHARP Analysis
16
CHAPTER 4 ---------------------------------------------
29
TAX EXEMPT LOCAL LOANS TO ENCOURAGE
RENTAL HOUSING
Outline of (TELLER) Program
TELLER Analysis
CHAPTER 5 ---------------------------------------------
32
LOW INCOME HOUSING TAX CREDIT
Outline of (TRA '86) Tax Credit Program
Selection Criteria
TRA '86 Analysis
CHAPTER 6 --------------------------------------------PRIVATE SUBSIDY PROGRAM - (Outline)
38
Qualifying Criteria
Private Subsidy Analysis
CHAPTER 7 ---------------------------------------------
45
COMPARATIVE ANALYSIS
Summary
Conclusion
BIBLIOGRAPHY ------------------------------------------
59
APPENDIX -----------------------------------------------
61
CHAPTER 1 - INTRODUCTION
In
Chapter
1969,
774
the Commonwealth
the
of
of
the production
to
incentives
income
benefits:
1)
exclude
single
This
housing.1
application
to
low
build
yields
able
higher
to
2)
the approval process;
expediting
disregard
local
zoning
- densities typically
densities
is
a
eligible
enables
which
process
by offering
incentive
primary
process
encourage
to
and
important
two
developers are allowed to by-pass virtually
thus
sometimes
a
Laws
established
housing
income
The
permitting
submit
moderate
boards,
moderate
developers.
to
developers
Massachusetts General
low and
"comprehensive"
of Massachusetts
all local
developers
ordinances
are
which
required to produce
low and moderate income housing.
The
legislative
for
authorities
goal
attempt
increasing
Specifically,
of
of
passage
it
to
to
Chapter
implement
the stock
was
of
aimed
thwart
establishing "a
low
at
housing
774
limiting
moderate
decent home and
Chapter 774 is now
Massachusetts General Laws.
Chapter
of
Though
production.
housing.
income
the power
state's
incentives
governmental
other
and
one
represents
local
zoning
a national
a suitable environment
40B,
sec.
20-23
of
the
for every
American
Housing
Chapter
Act
of
774,
family"
1949,
the
2
had been
twenty
country and
set forth
years
the
before
in
the
the
commonwealth
Federal
passage
had
of
not come
close to achieving this fundamental objective.
Local
zoning
increasingly
housing.
been
The
and
related
invoked
United
272
communities
but,
was
365
power
land
-
it
use
control
a parochialism
municipalities
would
even
(most
though
Affordable
in
they
ban
in
land
notably,
low
were
clearly
housing
became
a
and
Ambler
controlling
Much
seen
needed
NIMBY
growth
and
on
impact of
predictability-
locally,
the case
Specifically,
costly or
moderate
income
a
Realty
local
towns.
as
the
gave
of the
and
exercised
cities and
uses
v.
had
affordable
upheld
thereby
planning
was
of
Court
Euclid
and
fostered
also prompted
undesirable
Supreme
(1926),
regulations
siting
use of private property.
positive
because
use
the
in Village of
significant
restricting the
Euclid
U.S.
block
States
constitutionality of zoning
Company,
to
land
socially
housing),
regional
level.
(not-in-my-backyard)
problem.
As
to
a consequence,
exclusionary zoning
Jersey and
other
constitutional
have
states.
been
and
brought
For example,
in
in
statutory
the
challenges
courts of New
Southern
Burlington
2 Report of the U.S.
National Advisory commission of
Civil Disorders (Washington, D.C.:
U.S. Government Printing
Office, 1968) usually referred to as the Kerner Report, p. 467.
5
County
(1975),
N.A.A.C.P.
v.
Township
of Mount
Laurel,
336 A2d 713
the New Jersey Supreme Court held that:
a developing municipality may not, by a system of land use
regulation, make it physically and economically impossible to
provide low and moderate income housing in the municipality
for various categories of persons who need and want it.
The
court
New
Jersey
housing
Mount
ordered
Laurel
municipalities)
opportunities.
(and
to
by
provide
Unfortunately,
all
implication
and
create
other
expanded
implementation
of this
principle has proven slow and sometimes contradictory. 3
In
largely
Massachusetts
legislative.
intrusion
to build
low and
Upon
innovative
production
seven
of
the
and
have
one
Chapter
has
served
moderate
sustained
hundred
fifty
been
significant
developers
using a comprehensive
at
the
as
an
denials
a
has
by allowing
774 was
income
six
snob-zoning
represents
housing
breakthrough
years
low
authorities
of
income
enactment,
the
774
on
autonomy
local
moderate
legislative
throughout
attack
Chapter
into traditional
permit.4
state
the
recognized
state
by local
cases
an
level
and
for
the
impetus
housing.
as
Since
ZBA's
appealed.
1978
in only
These
3 Michael Wheeler,
"Resolving Local Regulatory Disputes
M.I.T. Housing
and Building Consensus for Affordable Housing,"
Policy Project. Working Paper #9, 1988.
4 In theory, Chapter 774 is only binding in Massachusetts
communities that have not reached a designated level of low
and moderate income housinq, but very few had met the
standard.
statistics are a clear indication of the impact of the law.
Even
that
a
so,
many
major
government
facet
developers
of
subsidies,
comprehensive
developers
of
the
limits
That
is,
unless developers
state
or
federal
comprehensive
getting
subsidy,
permitting
approval
low
process
can
and
apply
they
the
advocates
required
effectiveness.
process
"subsidized"
housing
program,
its
permitting
and
only
and
cannot
be
for greater densities,
use
invoked
income
receive
of
the
by
housing.
a recognized
avail themselves
and zoning
argue
By statute,
moderate
for
5
of the
over-ride.
Without
the developers,
in turn,
cannot produce less costly housing.
Though
the
affordability,
Specifically,
applying
the
could
subsidies
allege
contend
benefit
argue
financing
of
governmental
economic
critics
critics
they
for
use
that
if
this
that
are
the
increase
intended
to
insure
always
the
case.
not
administrative
actually
supposed
they were
actually
is
programs
they
was
spared
to
chew
up
provide.
this
cost
of
much
of
These
delay,
private
the
production
of
major
programs
which
low
and
moderate income housing.
This
paper
evaluates three
satisfy
the subsidy requirement under Chapter 774:
5 Cynthia Lacasse, "The Anti-Snob
Effectiveness of Chapter 774 in Getting
Built," M.I.T. 1982.
Zoning Law:
The
Affordable Housing
*
State
Housing Assistance for
Rental
Production
program
(SHARP)
*
Tax-Exempt
Local
Loans
to
Encourage
Rental
housing
(TELLER)
* Low Income Tax Credit program (TRA '86)
Specifically,
it
programs
compares
private
place.
and
subsidizing
Each
effectiveness
income
examines
the
net
economic
value offered
alternative
achieving
housing.
demonstrates
the
program
in
the
is
in
each
presently available
evaluated
with
the goal of creating
Perhaps
value
most
feasibility of
income housing without state or federal subsidies.
in
to a
the market
low and
low
these
program
respect
important,
developing
of
to
its
moderate
the
analysis
and
moderate
CHAPTER 2 - 774 STANDARDS AND PROCESS
Under
developers
a single
An
774's
to the
local zoning
permit
which
encompasses
Developers
by-pass
conservation
board,
"over-ride"
to reverse
comprehensive
apply
approvals.
planning
Chapter
adverse ZBA
board of
all
other
appeals
necessary
local
boards
and
commission,
clause written
permitting
into Chapter
process
(ZBA)
for
sub-division
including the
board
of health.6
774 allows
rulings which the state deems
the
State
unjustified
and/or exclusionary.
Chapter
774
The
receiving
a completed
application for
The
must
a decision
hearings
are
approved
(as
decision
render
closed.
under
defined
must hold
a timetable
process.
ZBA
ZBA
specifies
in
to the
If
Chapter
State
the
a hearing within thirty
the
conditions
for
within
application
Housing
the
days.
The
HAC
must
hold
twenty
days.
The
HAC
must then
forty
is
days
either
the project
applicant
Appeals
twenty
days after
a comprehensive
rendering
774),
approval
the
the
denied
or
appeal
the
(HAC)
within
hearing
within
a decision
within
initial
render
after
"uneconomic"
may
Committee
permit.
6 However, conservation commission approval is required
pursuant to the State Wetlands Act if applicable; and a
building permit is required subsequent to comprehensive permit
approval.
7
thirty days after its last hearing.
An
applicant
filing
for
a comprehensive
permit
under
Chapter 774 must meet four basic criteria; namely,
1)
The
developer
developer
profit
must be
is defined
developer,
dividend
"qualified."
under Chapter
a public
corporation
(as
A
qualified
774 as a non-
agency,
or
a limited
defined by the particular
subsidizing agency involved).
2)
The
development
income
must
housing.
include
The
low or
definition
moderate
income
housing
quantities
required
are
and
similarly
moderate
of
the
low
or
minimum
defined
by the
particular subsidizing agency involved.
3)
The
applicant
control
over
must
the
have
some
property
form
for
of
site
which
the
comprehensive permit is being requested.
4)
The applicant must have a letter of
qualified
federal
or
state
intent from a
agency
indicating
potential eligibility for subsidized funding. 8
7 Chapter 774 fails to provide specific limits with
respect to the cumulative time span of ZBA and HAC hearings;
consequently, the permitting time table is not absolutely
finite.
8 Massachusetts Housing Partnership "Questions and
Answers about the Comprehensive Permit Process" prepared by
Stockard and Engler, Inc.
It
must
the
be emphasized that the first
subsidizing
providing
agencies
funds.
a
and second
much
Specifically,
larger
they
provisions give
role
than
simply
guarantee that the
project
really will advance State housing policy.
Developers
provide
the
meeting
following
each
of
additional
the
above
information
criteria
as
part
of
must
the
comprehensive permit application.
1)
Primary
site
development
plans
showing
the
locations
and outlines of proposed buildings.
2)
A
report
of
existing
site
conditions
including
street elevations, traffic patterns, and buildings.
3)
Preliminary
architectural
drawings
including
floor
plans, elevations, and sections.
4)
A
list of
size of
proposed
units,
building types
number
including
of bedrooms,
floor
the
areas,
parking availabilities, and open spaces.
5)
A
preliminary
sub-division
plan
where
the
sub-
division of land is involved.
6)
A
preliminary
utilities
plan
including
sewage,
water, and drainage conditions.
7)
A
list of
requested exceptions to
ordinances including zoning by-laws. 9
9 Ibid.
local codes
and
A
the
qualified
local
permit
ZBA
for
developer
their
process.
The
ZBA
would
safety
of the community.
Chapter
the
serious
774 to approve
project
subject
submits
consideration
which
have
then
may
under
deny
adverse
the
the application.
reasonable
information
to
the comprehensive
a permit
impacts
Otherwise,
to
this
on
for
the
ZBA
a project
health
and
is compelled
The ZBA
conditions
may
by
approve
concerning
the
physical and economic characteristics of the project.
If the
with
conditions
developer
Any
project is
may
denied
render
that
by the local ZBA,
the
appeal the decision
developer
seeking an
project
to the
appeal must
or
is approved
"uneconomic,"
Commonwealth's
comply with
the
HAC.
the following
three Geographic Allocating Standards.
1)
The application
with
an
must be made
existing
in
low or moderate
a city or town
income
housing
stock of less than 10%.10
2)
The
low
total
or
amount
moderate
of
land
income
currently
housing
in
occupied
the
by
subject
community must comprise less than 1.5% of the
total
land
commercial,
in
the
community
and industrial
use,
zoned
for
(excluding
residential,
publicly owned
land).
10 Of the 351 municipalities in the Commonwealth,
23
currently exceed the 10% requirement with an additional 39 in
the 7% - 10% range.
3)
The
total
land
developed
the
as
land
in
the
low and moderate
current
total
area
year,
area
must
in
the
be
community
income
housing,
less than
community
being
or
in
.3%
of the
10
acres,
whichever is larger. 1 1
A
qualified
standards
that
may
renders
established
oversee
for
the
appeal
the
a mechanism
decisions of
board.
town
Chairman
selectman,
within
The
Governor
the
of the HAC)
complies
with
Chapter
ZBAs
in
HAC
is
appoints
remaining
The
774 to
regard
three
approval
HAC
regulate
was
and
to applications
comprised
of a five-
one city counselor
three members
are appointed
these
or a conditional
"uneconomic."
the local
permits.
The
who
either a denial
project
comprehensive
member
one
as
developer
(including
by the Commissioner
and
the
of the
Massachusetts Department of Community Affairs.
Chapter 774 defines low or moderate income housing as:
Any housing unit subsidized by the Federal or State
Government under any program to assist the construction of
low or moderate income housing as defined in the applicable
Federal or State Statute, whether built or operated by any
public agency or any nonprofit or limited dividend
organization.
The
State Attorney
has
concluded
from
General,
this
in an
advisory non-binding
language that
a project
must
opinion,
have
a
11 Metropolitan Area Planning Commission "Chapter 774:
An Interpretive Analysis for Cities and Towns"
(Boston:
Metropolitan Area Planning Commission, 1969), p. 4
13
state
or
federal
Accordingly,
of
low
subsidy
private
qualify
under
subsidies structured
and moderate
a comprehensive
to
income
permit.
units
To
will
date,
to
Chapter
buy-down
774.
the cost
not qualify a project for
this
opinion
has
not
been
challenged or interpreted in court.
The
Attorney
influenced
the
provides
federal
of
fe deral
Urban
Chapter
77 4.
But
Ho using
programs
this
as
h ave
void b y
sources
0
Opportu ni
Encourage
Assistance
on
with
the
the
housing.
now,
Tax
adminis tered
with
These
Program
HOP)
Rental
'86
ing
Housing
The HOP
program,
as
or
substantial
the
as
Since
a su bsidy
of the
(TRA
programs
Tax
TELLER),
(SHARP).
each
Low
the federal
V
has filled
hich qualify
Homeowners hip
L ocal
and
of
under
Federal
'86),
include:
Ex empt
1969,
De partment
three program s
SHAR P and
program,
a gency which
The Commonweal Lh
implementing
Ho
by
the exception
prog ram
demonstrate
housing.
qualified
discontinued.
Commonwealth's
TRA
income
has
an
c onstruction
moderate
subsidy.
Rental
For
the
"subsidized"
to
state subsidies to
Credit
been
of
developers
Development
recently
f
or
programs
ar d
interpretation
require
for
low or
Housing
Income
to
subsidizes
rehabilitati on
several
HAC
for
qualificatio i
General's
State
Loans
to
Housi ng
This paper will focus
TELLER
programs,
deals exclusively with
o n the other hand,
facilitate homeownership, and thus i s not really comparable.
along
rental
is designed to
Developers
either
non-profit,
This
paper
dividend
dividend
This
exclusively
developer.
It
therefore,
investment,
non-profit
or
all
be
the
understood
assumes that
other
private-sector
an appropriate
primarily by
as
that
return
on
limited
the
limited
investment.
limited dividend developers
appropriate,
things
are categorized
and limited dividend developers.
with
must
developer expects
analysis,
for subsidies
public agency,
deals
are motivated
on
who qualify
if
being
not excessive,
equal.
public agency developers
may
(By
returns
contrast,
have broader,
a
non-
financial objectives.)
This
rental
subsidy
hypothetical
in
each
paper
will
programs
private
chapter
chapter to follow.
begin
will
with
currently
an
introduction
in
subsidy alternative.
then
be
compared
existence
to the three
followed
by a
The financial analysis
and
contrasted
in
the
CHAPTER 3 - STATE HOUSING ASSISTANCE FOR RENTAL PRODUCTION
State
was
Housing
signed
development
program
which
is
Assistance for
into
law
of
rental
designed
the
private
in
Rental
December
housing
in
to "encourage
sector
of
could
Production
1983
the
to
stimulate
Commonwealth.
types of housing
not
(SHARP)
accomplish
the
The
development
without
some
form of government aid". 12
Under
Finance
the
Agency
SHARP
(MHFA)
financing through
most
recent
addition,
cover
the
funds"
to note that
must
be
fifteen
or
in
SHARP
(EOCD)
some
Massachusetts
construction
cases,
issue
was
provides an
shortfalls.
by the Executive
and accrue
SHARP
time
bond
program
operating
repaid.
year
the
and
Housing
permanent
the sale of tax-exempt or taxable bonds.
are provided
Development
provides
tax-exempt
projected
program,
funds are
at
annual
These
at 5%.
It
not grants,
is
and
loans
are
set up on
frame,
after
which
the
loan
continue
the
"SHARP
Communities
SHARP
to
In
cash subsidy to
Most
renewed
8.5%.
so-called
Office of
interest
loans,
sold
The
important
as
such,
a maximum
is either
project
and
as
repaid,
low or
moderate income housing.
12 Executive Office of Communities and Development
"Program
Guidelines, State Housing Assistance for Rental
Production (SHARP).
July 1987, p 1.
16
The
"minimum
intent
amount
economically
debt
as
(over
ultimately,
SHARP
that is,
Fundamental
that
constant
the
program
of subsidy necessary"
feasible;
service.
theory
of
market
time),
are
cover all
to
provide
rents
rise
operating
and
SHARP
out of project
the
sustain the project as
expenses
to the viability of the program
the required
repaid
to
is
debt
service
and
is the
remains
subsidies decrease,
cash flow.
and
However,
the
SHARP subsidy:
shall not exceed in any one year , on a per unit basis, the
difference between the amount determined by EOCD to be
necessary to pay debt service on a typical, newly constructed
rental housing project at prevailing interest rates on bonds
whose interest is tax exempt from federal or state taxation,
and t
amount necessary to pay such service at 5% per
annum.
All SHARP
the
The
units
set
as.ide
low-income
households
developments must
in
units,
holding
perpetuity
in
Section
most
8 or
have a minimum
for
low-income
of 25% of
households.
cases,
will
be
marketed
Chapter
707
rental
to
assistance
certificates.
SHARP
"equity",
currently
where equity
allows
a 6% return
is defined
as
the
on
sum
the developer's
of the following
three categories:
1.
land
A developer's
allowance
13 lbid p. 4-5.
fee of 20% of project cost exclusive of
(appraised
value
of
the
land)
plus
developer's
overhead
of
5% of project costs
exclusive of
land allowance.
2.
A
"standard"
approximate
investment at closing,
2% of the mortgage
explicitly stated
cash
cash
in the program
investment
by
the
receive a 6% return,
developer
were
investment
would
to
if
amount.
is
attainable.
pay
cash
be counted
Although
guidelines,
developer
the
as equity,
to
not
any additional
also
For
for
expected
eligible to
example,
if
the
land,
this
for
purposes
cash
of
calculating the developer's permitted annual 6% dividend.
3.
A
over
construction
letter of
into an operating
period
credit
of 4%,
which
letter of credit.
purpose of the analysis to follow,
rolls
For the
this 4% letter of credit
is assumed to cost 1%of the total letter of credit. 14
SHARP
MHFA
funds
competitions
funds.
Projects
against
minimum
(covered
in
are awarded
developers
are awarded
the
two ways.
compete
for
First,
a
limited
funds on the basis of:
standards;
following
in
2)
A
merit-based
pages);
and
3)
funds
are
awarded
through
pool
of
1) a review
point
the total
system
amount
of
available funding.
Secondly,
Massachusetts
SHARP
SHARP
Housing
funds to
14 Ibid p. 3-4.
Partnership
proposals
which
(MHP) .
The
through
MHP
the
awards
have the support of the Local
Partnership.
Local
Commonwealth
by
Partnerships
MHP
moderate
income
MHP
consideration
for
as
housing
a
are established
way
of
encouraging
development.
must
also
throughout
Projects
meet
the
the
low
and
submitted
minimum
to
standards
estimated within the merit-based point system discussed below.
SHARP POINT SYSTEM
SHARP
on
a maximum
proposals
of
130
are evaluated
points.
on
Points
a point
are
system
earned
based
through
the
following three categories:
1)
Development
Quality Goals-
50 possible points.
which
30
carries
points
in
There
10 points.
Design-
The
has
a total of
are five sub-categories
Applicants must
this category
points in each sub-category.
A)
This category
and
receive
each of
score a total of
a minimum of 4
The five sub-categories are:
overall
quality
of
the
design
is
evaluated.
B)
Development
Team-
The
track
record
of
the
development team is evaluated.
C)
Site-
The
suitability
of
the
site,
availability of
utilities, zoning, and site control are evaluated.
D)
Management-
The quality of the
management
plan
is
evaluated.
E)
Marketability-
The feasibility of the
proposed
rent
schedule is taken into account.
2)
Overall
Impact Goals-
There
are a total of 50 points
in
this category allocated between four sub-categories:
A)
Housing
Needs-
evaluated
meets
on
the
(10
points)
the merits
local
of the
housing
need for three bedroom
Standards
The proposed
degree to which
needs;
units
for this category
project is
v.
for
example,
two bedroom
vary somewhat
it
the
units.
by
location.
B)
Community
positive
Impact-
community
(15
points)
impacts
are
Projects
more
with
favorably
reviewed.
C)
Affirmative
housing
Action-
and
job
(10
points)
opportunities
The
for
degree
of
minorities
is
ranked in this section.
E)
Readiness
will
to
Construct-
be given to those
(15
points)
Consideration
proposals that are
ready to
move quickly to construction.
3)
Affordability-Valuethis
takes
category.
into
separately
There
While
account
allocated
the
three
to
is
a maximum
of 30 points
affordability
criteria,
the
value
points
each
but
rather
Point Count-
The
unit
in
ranking
are
cumulated
not
as
indicated below:
A)
The
Unit
derived based on the following table;
point
count
is
TYPE OF UNIT
NUMBER OF POINTS
Low-income with a minimum of
10 points
25% in perpetuity
Low-income, 30 year term
8 points
Low-income, 15 year term
6 points
Moderate-income, 30 year term
5 points
15 year term
3 points
Moderate-income,
Market rental, 15 year term
2 points
Market rental, 7.5 year term
1 point
B)
The
Bedroom
larger
unit
Adjustment
size,
an
Factor-
adjustment
number of units
derived.
The
multiplied
by the appropriate
calculate the corresponding
factor table is as follows;
in
To
encourage
has
factor
each
category
is
factor
to
adjustment
points.
been
The adjustment
SIZE OF UNIT
ADJUSTMENT FACTOR
0 to 1 bedroom--------------------------0.60
2 bedrooms-------------------------1--1.00
3 bedrooms---------------------------1.40
4 bedrooms---------------------------1.70
C)
The
Assessment
determined
requested.
Cost
of
based
on
to the
the
Commonwealth-
initial
SHARP
This
is
amount
15
SHARP ANALYSIS
For
purposes
programs,
of
a hypothetical
The project
is
accommodate
located on
is seeking
applicable percentage of
25%,
to be rented
to
be
or 25
to
15 lbid p. 10-15.
(1/2)
low
units.
or
current
income
The
remaining
units.
$16,000
units
per
Land
unit.
subsidy
is
used.
of land located
zoning,
acre lots.
all
development
the
Under
approval for 100 residential
as market-rate
$1,600,000,
housing
across
a twenty acre tract
forty one-half
the developer
analysis
100-unit
According
MetroWest.
is set at
financial
in the
in
tract
can
Chapter
774,
units.
The
SHARP
section
75 units are assumed
acquisition is
Hard
assumed
costs
total
$6,432,500 (approximately
allocated
to
in
respect
to
rental
replacement
land
$59
development.
income
reserve,
per
and
per
sq.ft.),
of which
Operating
unit
operating
assumptions
type,
expenses
$500,000
with
laundry
income,
are
constant
held
and are listed in the first table of each section of analysis.
This
project
has
been
evaluated
under
four
different
SHARP financing alternatives:
1.
The first alternative
financing
MHFA
at
bond
a rate
issue.
assumes
of 8.5%,
For
the
as
use of
per
tax exempt
the most
complete analysis,
recent
see SHARP-4A
(Appendix A).
2.
The
financing
second alternative
at a rate of
10%.
assumes
the
use
For complete
of taxable
analysis,
see
SHARP-4B (Appendix B).
3.
The third alternative assumes the
financing
tax
at a rate of
credit of 4%.
For
use of tax exempt
8.5% combined
complete
with
analysis,
a low
income
see SHARP-4C
(Appendix C).
4.
The
combined
fourth
alternative assumes
with a 9% low
income tax
10% taxable
credit.
financing
For complete
analysis, see SHARP-4D (Appendix D).
A discount rate of
minimum
multi-unit
after-tax
housing
17.5% has
return-on-equity
projects
(see
been
used,
expected
discussion
representing the
by developers
below).
Finally,
of
a
holding
period
of ten
The
methodology
discounted
permits
employed
cash
flow
alternatives
subsidy programs
considered
to
to
as
developers
various
programs
the
money.
DCF
developers and
of the
is
in the table below:
each
to
in
by
of
by
is,
the
because
value
DCF
time
it
among
of
addresses
value
of
sophisticated
industry.
alternatives
the
to other
unique flows
numerous
real estate
is
methodology
technique
That
principle
and
DCF
differences
benefits over time.
of the four SHARP
considered
methodology
other
the
are characterized
used
is
alternative
each
most appropriate
currently
it
This
Theoretically,
investors in the
analysis
as
analysis of income properties.
evaluate
quantify the
which
used,
methodology.
investment
fundamental
been
be compared
well.
to
investment costs and
to
(DCF)
be the
enables
has
for financial
industry standard
the
is
years
are
The results
summarized
SEE
APPENDIX
FINANCIAL
VALUE
(NPV)
PROGRAM DESCRIPTION
523,000
D
SHARP - With a market rate loan
and a 9% tax credit.
C
SHARP - With tax-exempt financing
and a 4% tax credit.
349,000
A
SHARP - With tax-exempt financing
without a tax credit.
82,000
B
SHARP - Market rate financing
without tax credits.
(83,000)
The
the
defined
by
would
SHARP)
4% tax
loan
under the
time
is
comparisons
scenarios,
can
the
credit that
with
be
could
guidelines.
SHARP
associated
developer
(as
($349,000-$82,000)
$267,000
require
For
in
at the onset of a development to be induced
present value terms
to forgo the
dividend
variations of
value."
"financial
its
limited
maximizing
profit
a
example,
indicative of
is
program
SHARP
of the four
each
associated with
NPV
securing
analysis
in
This
report
this
assumes
the tax credit.
between
drawn
supplement
this
and
is only
a tax-exempt
no
additional
While
isolated
other
project
accurate for our
hypothetical (yet realistic) 100-unit development proposal.
of
the
A close
examination
SHARP
development
sensitivity to assumed
of
the financial
proposals
Revenue Growth
25
sensitivity analysis
illustrates
Factors.
their
hyper-
Specifically,
a
five
percent
units
is
(5%)
used
Revenue
as
per
SHARP
Guidelines.
(6%)
used for
is
variable
subsidy
is
Growth
the maximum
A
illustrated
in
"Sensitivity
Analysis:
Changes
in
Growth
Revenue
average NPV
For
example,
the
and
a 5% re venue growth
yet
using
represents
a
significant.
Aggressive
the market
the
amount
proposal
difference
rate
units
of
SHARP
units,
induce
which
to
may
require
It's
clear
on
the
percent
Unit
Land
market
NPV
respective
sensitivity is
After-Tax
NPV due to
Cost
Assumptions.
unit land cost
rate units,
falls
is $258,000;
to $-254,000.
$5 12,000,
which
the profitability
make
ap plied
than
set
is
for)
fund
for t he growth
is
This
arguably
unrealistically
-
rate of
(which
affects
a development
attainable.
rate
SHAR P program
additional
of
actually
rat e ass umptions
growth
MHFA
of
fun ds
to the
applications
over-aggressive
may
can
is
standardization
some
the
six
in the
assu mption s regarding the growth
greater
appear
for
ass uming a $16,000
rate for
rate,
a 3% growth
of
analyzes this
Effects
and
subsidized
The sensitivity of this
appendix
The chart which
entitled,
the
Factor
rate units.
each
for
allowance set fourth
Revenue Growth
the market
program.
Factor
of
may
Until
market
fall
rate
victim to
assumptions
which
aggressive projects
(unanticipated)
funding
in
the
future.
market
state.
growth
One
that
rates
over-aggressive
are
criticism of
extending
the
SHARP
assumptions
the
risk
program
concerning
horizon
that
for
should
the
be
raised
is
definition
the
SHARP
program
equity,
where
developers
allows
of
a developer
permitted
developer's
that a developer
for a total
housing
exclusive of
costs
is
developer
project
or $20.
cost,
withdrawn
be
"hard"
and
with
if
upon
under SHARP,
to
have
Under
the
6%
$25
level
of
limited
to
into the
20% of total
election,
funding
a limited
of the
an
not
permanent
dividend developer
equity
"phantom"
dividend
investing
costs are
overhead
be entitled to a maximum
dividend
developer's
and
rental
and "soft"
back
investing
earning
such
of
a limited
SHARP,
at the
allowed
would
includes
Furthermore,
the development
Therefore,
mortgage.
developer
from
(this
fee equal
($5),
a
to
a unit
development
fee
land).
used to raise a
produce
earning
credited
5% overhead
additional
project.
be
can
developer
would
with
credited
of
(exclusive
can
Under
land).
a hypothetical
project
the
cost of $100
a
An example may help.
consistent with non-subsidized programs.
Assume
on
20% and
fee of
distribution
cash
annual
a 6% return
"gimmicks"
The developers fee and overhead are
The
developer.
earn
project costs
of 5% of
overhead
to
a developers
includes
equity
dividend
limited
in
restriction,
the
the
cash
dividend
equity,
in turn,
$1.50
per year.
Unfortunately,
creates
"phantom"
developments
the creation of "phantom"
Specifically,
regulation.
typically employ
less
than
because
SHARP
cash
equity,
10% ($10)
even
the developer who
$100
project
annual
($1.50/$10)
be
that
noted
From
at
is,
on
SHARP
is
cash
developments
are
project
remain
even
is
the developer's
of
equity
project
in
Return
a project is
the
"affordability
arguably
the
developer's
has
on
Equity
index"
;
level
limited
leaving the
through
inefficient
SHARP
allocation
to
will
dividend
developers.
equity
in
a
fee and overhead
effect
as the actual
amount
this
limited
equity
in
Consequently,
which
should
a diminishing
(ROE)
increased.
It
15%
debt financed.
largely
induces developers
minimum
publicly financed
the
relationship
This
"gimmick"
to
investment.
that
a
receive
amount of cash
the actual
if
increased,
constant.
on
dividend
this means
to
usually not even a binding constraint on
However,
SHARP
permitted
the
dividend
a policy perspective,
"gimmick"
will
a minimum,
into the
of cash
is willing to invest $10
limit
score
points
on
a
the
balance of the project to be
subsidies.
of
public
subsidies are drained into over-funded projects.
The
funds,
result is
as
an
limited
CHAPTER 4 - TAX EXEMPT LOCAL LOANS TO ENCOURAGE
Tax
Exempt
(TELLER)
income
local
was
rental
Local
created
housing
housing
in
tax-exempt
housing
projects
bonds
in
Laws,
financed
There
of
are
the
two
as
a
way
level.
to finance
their
Constitution
a portion
1984
Encourage
by
units
low
section
TELLER
reserved
programs
to
and
through
of
(with
income
the
the
bonds
low
program,
EOCD
moderate
26(m)
low
which
this
Pursuant
tax-exempt
for
Housing
encourage
issuing
community.
and
Rental
Under
have the option of
Massachusetts
projects
to
at the local
authorities
approval)
Loans
RENTAL HOUSING
income
to
the
General
must have
households.
project can
16
meet
this criteria:
1)
The development
income
made
units.
may
set
aside 20% of the units
Under this
available to
program,
households
the
earning
units
less
than
as
low
must
be
50% of
the area median income.
2)
The
development
units
this
in
the
program,
households
may choose
development
the
earning
units
less
as
to
low
must
than
set
aside
income
be
units.
made
60% of
40% of
the
Under
available
area
the
to
median
income.
16 Executive Office of Communities and Development, "Tax
Exempt Local Loans to Encourage Rental Housing, TELLER
Program", Department of Community Affairs, 1985.
29
In
either
case,
the units
households for
a minimum
actual
of
amount
attractiveness
"lock-in"
the subsidy to
of
the
must
be
rented to
low
income
period of fifteen years.
the developer depends
tax-exempt
bond
financing
The
on
the
relative
to
taxable financing alternatives.
TELLER ANALYSIS
Under
are
limited
program,
the TELLER
to
is
a 10%
program,
on
return
limited
equity.
defined as the difference
dividend
Equity,
between
developers
under
this
the amount of the
loan awarded to the project and the total cost of the project.
The
100
unit
based
TELLER
project
program
described
is evaluated
in
using the
Chapter 2.
TELLER
the latest bond issue of 8.5% and
on
hypothetical
financing
is separated
is
into the
following two categories:
1.
Tax-exempt TELLER financing at 8.5%. Appendix E.
2.
Tax-exempt
TELLER
financing
with
a 4% low income
tax credit. Appendix F.
In
assumed
and
both
TELLER
scenarios,
to be affordable.
F reflect
the
limited
20% of the
The financial
dividends
and
have been
units
analyses in Appendix
unit
mix
as
E
required
under
the Teller
program.
The financial
value (NPV)
of the of
the two TELLER scenarios are shown below:
FINANCIAL
VALUE
(NPV)
SEE
APPENDIX
PROGRAM DESCRIPTION
F
TELLER - With a 4% tax credit.
709,000
E
TELLER - Without tax credit.
488,000
Sensitivity analysis indicates that the TELLER
also hyper-sensitive to market rate growth
a land
4%
cost of $16,000 per
tax
credit
$355,000 used for
alternative
and
about
the
a 5% growth
half that when
the market
drops
unit,
units.
-$276,000
3% for the market rate units is assumed.
alternative with
produces
an
a 6% revenue growth
The financial
drastically to
rate assumptions.
TELLER
rate
program
is
At
a
NPV
of
rate
is
value of this TELLER
when
a growth
rate of
CHAPTER 5 - LOW INCOME HOUSING TAX CREDIT
Although
potential
(e.g. ,
construction
period
Tax
for
of
broken
into three
10
low
years
construction
Second,
other
rehabilitation
categories.
is
low
and
for
of
for
did establish the
Low
rehabilitation,
and
income
new
tax
credits
are
a credit of 9% per year
projects
that
qualifying
low
projects
subsidies to
housing
deductions
The
available for
federal
it
First,
income-sheltering
low-income
depreciation
housing.
rehabilitation
of
induce
construction,
available
a 4% credit
bonds or
to
the
income
is
or
used
most of the
interest and taxes),
Credit
out
removed
accelerated
acquisition
for
'86
formerly
development
Income
TRA
involve
the
income
units.
using tax
exempt
finance the construction or
units.
Finally,
a credit of 4% is
available for the acquisition of existing low income units.
The credits
low
income
project
To
be received
units on a straight
must
calculate
remain
the
"qualified"
low
years
have
low-income
dollar
credit percentage
will
may
is
owner s "qualified
units.
a present
basis"
on
of
qualified
line basis for ten years,
for
amount of
multiplied
income
by the owners
a period
credit
by the
value
(at
"qualified"
of fifteen
for
each
"qualified
A 9% credit
5%)
low
but the
year,
basis"
received
equal
to
income
years.
the
of the
over ten
70% of the
units.
The
4% credit
qualified
will
have
Credit percentages
basis.
Treasury,
val ue
a present
to
the
maintain
70%
(at
5%)
equal
are adjusted
and
to 30% of
monthly by the
30% present
values,
respectively.
States are
per
with
resident.
bond
this
program
financing,
financing.
is
based
national
population
country
could
current
population
be
$7,277,500 per year.
low
income
as
on
its
as
high
to credits
opposed
Much
of 250
sheer
million,
as
to
of the
equal
used
in
using
$312.5 million.
tax-
surrounding
Based
magnitude.
annual
to $1.25
conjunction
projects
excitement
the
in Massachusetts,
on
a
credit
for
the
Based
on
the
17
the credit would
amount
to
18
All projects,
for
low-income tax credits
This limit applies
"taxable"
exempt
allocated
tax
tax-exempt
as
well as
credits
must
meet
"taxable",
the
applying
following
three
criteria:
1)
The
project must
meet one
of the following
two
resident
targeting criteria:
a)
At
least 20% of the
be
rented
to households
rental
with
units
incomes
in
the project must
no higher than
50%
17 Richard S. Goldstein and Charles L. Edson, The Tax
Credit for Low Income Housing, Real Estate Review, Spring 1987
pp 54.
18 Low Income Housing Tax Credit
Office of Communities and Development, 1988.
Guidelines,
Executive
of the area median income; or
b)
At
least 40% of the
be
rented to
households
rental
with
units
in
incomes
t he
project must
no higher than 60%
of the area median income.
2)
The
"rent
than
higher
restricted"
30% of
units
must
set the
the
relevant
income
be
retained
as
gross
rents
li mitations
no
cited
above.
3)
project
The
minimur n of
must
fifteen
proportio nally.
years
or
the
rental
credit
housing
wil I be
for
a
pro-rated
19
SELECTION CRITERIA
Pursuant to
Order
No.
271
administrative
the
EOCD.
for
those
any
TRA
on
duties
'86,
Governor Dukakis
February
of the
low
With this assignment,
projects
project
not
subject to the
using
tax
12,
1987
tax
income
EOCD
signed
Executive
assigning
credit
program
to
set up a list of criteria
tax credit allocation;
exempt
the
bond
financing
or
that
is,
federal
subsidies.
First,
the
projects
must meet the
following
set of five
"threshold criteria":
1)
The
project must
19 Ibid.
p. 2
demonstrate
financial
feasibility and the
ability to
receive firm
receiving
of
expected
a tax
to
financial
commitments
within
credit commitment.
close financing
within
90
60 days of
Projects
days
of
are
then
receiving
the
tax credit commitment.
2)
The
development
team
must
demonstrate
the
ability
to
complete the project as proposed.
3) The project must be ready to move to construction.
4)
The
project
must
fit
within
the
goals
of the
tax
credit
program and the housing goals of the Commonwealth.
5)
The
project
Affirmative
must
Action
goals
opportunities to minorities.
Projects
permitted
Projects
associated
which
to move
are
meet
by
the
Commonwealth's
providing
housing
and
job
criteria"
are
20
meet
to the
allocated
with
help
these
"threshold
next stage of
tax
credits
the competitive
"competitive
based
on
a
criteria."
point
system
There are a total
criteria.
of
100 possible points allocated as follows:
A)
Housing
Need.
This
category
has
a total
of 40
points
allocated to three separate sub-categories.
1)
The degree
maximum
income
benefit
and
the tax credit will
to which
in
terms
affordable
of creation
units.
This
of
leverage the
additional
sub-category
low
has
a
total of 20 possible points.
2)
The
degree to which
20 Ibid. p. 6
the
low
income
units will
meet
the
needs of the community
and
the
region.
This
sub-
category has a total of 10 points.
3)
The
income
degree
to
and market
community
and
which
rate
region.
the entire
units)
This
will
project
meet
(both
low
the needs of the
sub-category has a total of 5
points.
4)
The
readiness
to
move to
construction.
This
sub-
category has a total of 5 points.
B)
Impact.
This category
has a total of 30 points
which
are
allocated through three sub-categories.
1)
The
positive impact that the
community
in which
it
is
project will
located.
have on the
This sub-category
has
a total of 15 points.
2)
The
degree to which
allocate other
the
project
state resources.
diverts
This
the
need to
sub-category
has
a
total of 10 points.
3)
The
degree
opportunities
for
to
which
the
minorities.
project
This
will
broaden
sub-category
has
a
total of 5 points.
C)
Quality.
This
category
has
a total
of 30 possible
points
allocated equally to three sub-categories.
1)
The qualifications of the development
team for a total
of 10 possible points.
2)
The
quality and suitability of the site for a total of
10 possible points.
3)
The
quality
of
the
design,
manageability,
compatibility for a total of 10 possible points. 2 1
TRA '86 ANALYSIS
Again,
the
hypothetical
100-unit
development
used
is
a 9% low-income tax
this
analysis.
Under
this
scenario,
and
a market
interest
rate
of 10% are
assumed.
See
in
credit
Appendix
G.
This
at the
value
scenario
standard
drops
of 3% (for
TELLER,
is
to
the
a financial
market unit growth
$249,000 at
market
5% and
units).
Ibid. p. 6-7.
value
equal to
$558,000
rate assumption of 6%.
-$236,000
This
hyper-sensitive to market
assumptions.
21
shows
proposal,
unit
at a growth
like SHARP
revenue growth
This
rate
and
rate
CHAPTER 6 - PRIVATE SUBSIDY PROPOSAL
Although
programs
the
differ
in
TELLER,
many
and TRA
regards,
they
the approval
Specifically,
similarities.
SHARP,
do
but also weighs
readiness
density,
design,
projects
throughout
the
become
a
focus
central
Consequently,
agencies
from
wield
of
required
subsidy,
These
the
significant
action
objectives,
allocation
of proposed
ancillary
factors
subsidizing
perspective the
a development
power.
important
program
affirmative
state.
Credit
process for each
and the geographic
to construct,
Tax
have
not only the dollars and cents of the
considers
'86
For
example,
have
agencies.
subsidizing
rather
than
defining "limited dividend developer", Chapter 774 provides that:
Determination whether an applicant for
permit to construct low or moderate
qualifies
as
a
limited
dividend
organization,...,
provides
determining
the
fate
agency,
subsidizing
subsidizing
the
of
the
agency
developer
process
a
properly
strong
applicants.
would
is
agency from which
left to the appropriate state or federal
applicant is required to obtain funding.
This
a comprehensive
income housing
lack
role
Absent
assurances
in
the
that
development proposals would serve their intended purpose.
If,
finance
low
in
fact,
and
a private subsidy
moderate
income
program
housing,
an
could efficiently
effective
review
process
would
consistency
required,
projects
of
be necessary
the
to monitor the
developments.
developers
could
If
mechanism
financing
used
private
is
this
review
needed
regardless
subsidy
program
would
clearly be
which
of
moderate
method
income
these
unacceptable,
not
some type of
the
ignored
were
permit to build
Accordingly,
to subsidize the low and
considerations
performance and
use a comprehensive
injurious to the public good.
policing
Any
still
and
of
units.
ancillary
inconsistent
with the central focus of Chapter 774.
Even
solved,
if
the
the
problems
requirement
Eliminating
the
of monitoring
to use state or federal
required
of
public
achieved through
three mechanisms.
First,
level,
could
a decision
program.
Second,
use
be sought
legislation
requirement.
Finally,
designed
works within
which
efficient
approach
could
the
be
at the
compared
be
a private subsidy
confines
could
of the
appears to
to
be
State judicial
program
subsidy program
when
could
passed changing
subsidy"
present
can
subsidies remains.
subsidies
in favor of
a "token
The development of a token
most
developments
the
this
be
law.
be the
judicial
and
legislative alternatives.
I
organized
propose
to
a system
by
which
a modest
provide a token subsidy for
and moderate income housing developments.
fund
would
privately financed
be
low
QUALIFYING CRITERIA FOR PRIVATE SUBSIDY PROGRAM
I suggest the MHFA
MHFA
the
presently
subsidy granting
background,
needed
Also,
issues
to
the
financial
and
obtain
level
administer this
site approval
process
in
new program.
letters
SHARP,
as an
it
The
a state-funded
subsidy would
feasibly)
project
could
review
initial step
has the
organization.
of
additional
(at
least
be understandably
Since
necessary
process
be
in
time
eliminated.
with
respect
to
lessened
because
no
state funds would at risk.
Prior
to
awarding
a site approval
letter,
MHFA
would
evaluate the project based on the following set of criteria:
1.
Quality of
architecture
the
would
Development
be evaluated
-
to
The
site
plan
insure that
it
and
is
in
keeping with local community character and standards.
2.
Development
Team
required to demonstrate
total
development
the financial
for the
demonstrated
institution.
The development team would
its ability to:
cost as
strength
balance
-
cash
equity;
a letter
The
raise 10% of the
and
necessary to qualify for
of the project.
by
1)
This
of commitment
development
team
be
2)
exhibit
financing
ability would
from
would
be
a lending
also
be
required
to have
secured a threshold
participation on
the
part of minorities of perhaps 10%.
3.
Affordability
match
the
The
project
affordability guidelines
existing qualified
minimum
-
would
be
of
least one other
at
This would
subsidizing agency.
of
percentages
required
as
units
affordable
to
include
well
as
would
be
income and rent level criteria.
4.
Tenant
required
in
units
Selection
to offer
All
-
a minimum
developments
of 20% of the
the project to qualified
that the
project is
income
In the event
minorities.
under-subscribed
low
by such
minorities,
the units may then be offered to other needy individuals.
In
the local
pending approval
view of the fact that projects
ZBA
are
moderate
income
exercised
when
issuing
failed to
developers
be
program)
would
approved
projects,
performance
in
housing
bond
initiate approved
To
applicants
equal
to
letters.
approval
damaged.
projects,
insure
would
five
care
community,
a
site
level of
the threshold
counted toward
percent
low and
would
be
Clearly
if
the process
(and
the construction
required
be
before
of
to
total
post
of
a
estimated
project costs.
The
in the
site
following
of public funds,
approval
manner.
letter issued
If the
by MHFA
project
the letter would be used
requires
would
be
used
the assistance
in its current capacity
as a pre-requisite to programs
project
letter
was
financially
could be
MHFA.
This
development
approval
and
be
feasible
SHARP.
through
However,
private
if
subsidy,
the
the
used to acquire a one dollar token
subsidy from
token
qualify
as
letter
such as
subsidy
"subsidized"
could then
presented
to the
would
by
be
effectively
a state
agency.
used to comply
local
ZBA
to
22
with
The
the
site
Chapter 774,
establish eligibility for
comprehensive permit consideration.
An
program
important
is
it
that
available for
the
time
low
element
opportunity
and
in
be
amount
and
of
effectively increases the
and
moderate
needed
to
financed
housing.
secure
subsidy
would
low-income
private financing
the
income
leverage
housing,
of
current
approval,
in
by
effect
subsidy
could,
increasing
the production
net
the
of low
would
spending;
the
reduced
developments
Moreover,
the
By decreasing
be proportionally
housing
involved
private subsidy
amount of funding
income
financially feasible.
moderate
increase
it
advantage of the
cost to developers
privately
fact,
practical
be
that
to
is,
getting more housing bang for each subsidy buck.
The
present agencies
have limited
resources
to
allocate
22 Conceivably an aggrieved abutter could challange such a
practice, or a local ZBA could refuse to recognize the
Appeals to the court or the
appropriateness of the application.
The fact that Chapter 774 was
HAC might well be pursued.
enacted to promote more affordable housing - not to promote
subsidies for their own sake - would be strong evidence in
support of the "token" subsidy program.
42
to
qualified
applicants,
and
moderate
the
last
income
several
and
this
housing
years,
units they can
these
qualified
proposals
does the
lack of funding
than
constrains
the amount
of
subsidize.
During
agencies have typically
the funds
to
had more
subsidize them.
limit the entire process,
low
Not only
it
also deters
other qualified developers from participating.
With
the
the
production
longer
implementation
of
be capped
market
low
by
conditions
and
of
a private
moderate
the public funds
,
the
private
significantly
increase
the
rate
housing.
course,
Of
attempt
to control
response
owned
by
local
parcels
development,
of
communities
viewed
as
housing
would
no
Depending
on
subsidy
program
production
would
of
and
might
for alternative
likely
One proactive
be to market
with
could
affordable
should
of development.
commensurate
of waiting
program,
available.
local communities
the direction
instead
income
subsidy
municipally-
this
type
proposals
of
which
might be less desirable.
PRIVATE SUBSIDY ANALYSIS
The
100
cost
of a private subsidy
unit development
Appendix H.
associated with
used throughout this paper
the same
is illustrated in
Consistent
private subsidy
with
program
moderate
income
revenue
assumptions
difference
in
down
subsidy
the
as
as
market
revenue growth
rate
in
the
the
other
programs.
is
the absence
This
they
public
the
rate to 3% (from
6%)
of
the
to low
and
cost and
any
The
unit
major
limitation
on
allows developers
to
available.
subsidy
revenue
For
same
program
become
units.
in project value of $739,000.
units
makes
like the
variations
subsidy programs,
and
of dividends.
program,
sensitive to
for
housing,
dividends
public
dedicates 20% of the
this program
the distribution
draw
existing
The
programs,
growth
example,
translates
rate
private
is
very
assumptions
a change
in
the
into a reduction
CHAPTER 7 - COMPARATIVE ANALYSIS 23
This
value"
comparative
base
line
zero).
Each
first,
on the
the
is
of
the
between
As
average,
values.
of
to the development,
compared
subsidy
method
for
is evaluated
(net
delay
for
each
15% and 20%,
I have
of
the
developers
yield
chosen
on
a uniform
purposes
of
results of the analysis
second,
financing
project density.
the
net present
public
soundly
an after-tax
depending
value;
subsidy
eight
to be
in three ways:
present)
discussed above,
Private-sector
17.5% for the
The
time
(stipulated
on the basis of breakeven
this type should
equity
return
DCF
calculated
of
its financial
breakeven
third,
alternatives.
projects
"financial
value of a private
basis of
and
Using
value
how much
public subsidy program
basis
approval;
an
evaluates
a particular subsidy brings
to the
on
analysis
subsidy
agree
return
that
on cash
project-specific risks.
expected
calculating
net
after-tax
present
are listed in the table on
the following page.
23 Many thanks are due to Tod McGrath for
patience in reviewing the financial analysis of this paper.
45
his time
and
Table 7A - NPV RATING
SEE
APPENDIX
NPV
PROGRAM DESCRIPTION
TELLER
TRA '86
709,000
With a 4% tax credit.
-
558,000
Market rate loan with
-
a 9% tax credit.
SHARP
523,000
With a market rate loan
-
and a 9% tax credit.
TELLER
-
488,000
Without tax credit.
SHARP
-
With tax-exempt financing
and a 4% tax credit.
349,000
SHARP
-
With tax-exempt financing
without a tax credit.
82,000
Market Subsidy Deal - Market rate
0
(Baseline)
financing without tax credits.
SHARP - Market rate financing
(83,000)
without tax credits.
developer
this
example,
For
using
without
tax
higher
than
the
credits
the
NPV
SHARP
realizes
same
Rating
program
a
net
development
with
table
tax-exempt
present
using
shows
value
of
a private
that
a
financing
$82,000
subsidy.
Conversely,
market
of
a developer
using
rate financing and
$83,000
less
than
the
SHARP
program
with
taxable
no tax credits has a net present value
the
net
present
value
achieved
through
market rate financing alone (the private subsidy program).
In
each
necessary
that
to obtain
required
development.
time,
case,
is
offset
arguably
from
both
by
which
a
assume
public subsidy
soon
-
a tax.
no greater than
the approval
the
delay.
Indeed,
we
expressly addresses
practical
and
time
housing
process takes
longer an applicant must wait for
when
the cost of
the
privately-financed
of course,
The
is
that
the less that subsidy is worth.
becomes
methodology
results
typical
money.
surprisingly
entirely
a
In practice,
and time
-
a given
for
subsidy approval,
point
these
policy
benefit
of
There comes a
the
After that,
are
subsidy
the
employing
is
subsidy
the
DCF
the time value of money
perspective.
We
must
also
expressly address the money value of time.
In
as
programs,
the
subsidies
in
benchmark,
in terms
much
as
time delays are
following
terms
analysis
of delays.
breakeven
time
quantifies
Using the
time delays
of the additional
a costly
(in
the
respective
private subsidy as a
are calculated
months)
reality of these
and
permissible
expressed
before a
public subsidy program loses its proforma value.
Developers
and
public administrators
disagree about time
tables;
but
every case
is
same.
the
stipulate
Rather than
I have calculated the declining value of each
average,
an
subsidy as
approval time drags on.
The following
as
a benchmark.
subsidy program
number
of
analysis uses the
The time
(shown
months
in
in
is
scenario
and
based
is
on
if
any
further
subsidy program
with
each
to
render
delays
hypothetical
100-unit
illustrate
point
added value of each subsidy expires.
the
public
are those breakeven
the private subsidy was
the
intended
associated
the chart below)
which
developer worse off than
analysis
delays
private
used.
the
This
development
at
which
the
Table 7B - TIME DELAY
GRAPH IN
APPENDIX
PROGRAM DESCRIPTION
TELLER
With a 4% tax credit.
-
TRA '86
-
BREAKEVEN
TIMEDELAY
IN MONTHS
24+
Market rate loan with
a 9% tax credit.
SHARP
With a market rate loan
-
and a 9% tax credit.
TELLER
-
Without tax a tax credit.
SHARP
-
With tax-exempt financing
and a 4% tax credit.
SHARP
-
With tax-exempt financing
without a tax credit.
Market Subsidy Deal - Market rate
financing without tax credits.
SHARP - Market rate financing
without tax credits.
(SEE ACCOMPANYING GRAPHS)
0
(BASE CASE)
NEGATIVE
developer
For
example,
without tax
approval
and
the
credits
costing
up
time
under
of a project
(of
for
Delay
the Time
than
more
tables
certain
are
further
difficult to
market
the program would
and
Although
a developer
predict,
rather than
market,
enduring
may
profit
additional
conditions potential
approvals
for
financing
received.
in a more familiar
above,
time
tax-exempt
with
subsidy
the
Chart
expected
the
feels
If the time
to a public one.
a private subsidy
is greater than 3 months,
move to construction
waiting
in
program
SHARP
scenario.
subsidy
each
the
required
should estimate the time
developer
a
if
for
approvals
the commencement
should prefer
the
forgo
at
those listed
exceeds
estimated
various
under
financing
to secure
considering
this analysis)
in
type assumed
a developer
drawn:
alternatives
financial
end
be
can
conclusions
following
the
permit,
comprehensive
a
for
774
Chapter
under
qualify
would
subsidy
a private
that
Assuming
market
additional
risk.
For
graphic
illustration
evidence of
Dollars
policy
the
makers
of declining
importance
lost to delay
of
profit no
allow state
agencies to
incentives
for
value of
one.
subsidies
Expedited
development
of
process.
approvals
investments
and
affordable
the
strong
is
the approval
expediting
leverage current
expanded
administrators,
program
and
would
produce
housing
without added expenditure.
An
of
the
which
through
allowances
in
return
development
to
low or
how
also suggests
developer
who anticipates
inclined
Ironically,
and
delay.
design
a denser
that
added
density
project
may
to
trade-off
can
A
density.
that
cover
will
cost.
opposition
local
exacerbate
knew he could
If the developer
analysis
This
project
a
the
of
portion
delay for state approvals
a long
to
terms
density
increased
makers
but
time,
against approval
not
policy
and
developers
in
provides
housing.
income
is
774
some
allocating
moderate
subsidy,
receive
developers
for
subsidies
Chapter
produced.
product
actual
mechanism
be
of analyzing
alternative method
build promptly,
he
could afford to develop a less objectionable project.
The following
subsidy
from
programs
in
developer's
the
analysis quantifies the value of the various
terms
breakeven
of
Once
perspective.
acceptable
densities,
the
privately-
again,
subsidized
"Market"
deal is used as the base case,
instance,
project
densities
per
acre,
per
acre
subsidy
Clearly,
the comprehensive
under
approved
the
analysis answers
would
were
if
be
a developer
received
without
a subsidy program
willing to accept fewer than
Assuming
vary.
permit
the
willing
any
to five
units
many
units
"How
if
a given
time
delays?"
accept
additional
has value,
five units
to
density
the
that
is equal
question,
though in this
the developer would
per acre;
that is,
be
trade-
(see table 7C below)
off time for density.
Table 7C - DENSITY TRADE-OFF
GRAPH IN
APPENDIX
DENSITY IN
UNITS/ACRE
PROGRAM DESCRIPTION
TELLER
-
SHARP
-
With a 4% tax credit.
3.5
With a market rate loan
3.5
and a 9% tax credit.
TRA '86
-
3.75
Market rate loan with
a 9% tax credit.
TELLER
-
3.75
Without tax a tax credit.
SHARP
-
With tax-exempt financing
and a 4% tax credit.
4
SHARP
-
With tax-exempt financing
without a tax credit.
4.75
Market Subsidy Deal - Market rate
financing without tax credits.
5
(Base Case)
5.5
SHARP - Market rate financing
without tax credits.
(SEE ACCOMPANYING GRAPHS)
As the
can
translate
chart above
into
indicates,
large differences
small
changes
in the bottom
line.
in
density
Because
private
subsidies
to
demonstrated
additional
private
(in
the form
be
as
through
well
as
public
without the
however,
the
have been
bonuses)
financially feasible;
density achieved
subsidies,
of density
Chapter
774 process,
subsidies,
would
not
be
effective.
SUMMARY
As
774's
has
been
requirement
of
developers on
twist
different
dividend
developer
needs
return.
first
of
In
the
ironically
each
with a
object for
the
limited
render
ultimately
the
have
funds
suit
highest
be wise to
the developer may
will
best
will
project
program
leads
game
programs,
which
which
have
various
The
however,
to
"subsidy"
is to choose a program
and
Chapter
paper,
The
rule.
or
some cases,
consider
appears
housing.
an odyssey through
slightly
this
throughout
a "subsidy"
affordable
constrained
the
suggested
the time
at
a
particular project comes on line.
the
from
objective,
The
of
rules
the
participate.
"game"
The
same
token,
it
point of view,
to
competent
dilemma
insure that Chapter 774
the
the state's
entice
for
the
is used for
should
ultimately increase housing costs.
state
is
developers
is that
it
its intended purpose,
take care
not
to
to
have
needs
use
to
to
but by
certification
1)
Recommendation:
of
subsidy
should
be
Categorize
provided.
approved
Those
in
less
hierarchy of programs
subsidy
of
scrutiny.
projects
would
subsidy
A
requiring
less.
less
Projects
to
submit
a
more
Recognize that
projects
requiring
state
may
to
scarce
scrutinized
competitively
less
less public
providing
subsidy
to depth
according
requiring
ensure that
2)
program.
investment
substantial
projects
programs
public
deeper
comprehensive
more
in
programs
time with
would
participate
requiring
the
than
funds
not
those
have
requiring
be
state
dollars.
The
as
known
state
the
subsidy
"Municipal
created
game
has
Delay
Game."
This
The
against
Chapter
does
not
specify a time frame
review.
Through
the
use time delays,
to defeat
proposals,
Unfortunately,
myopically
offensive,
delay
game
the
focus
strategy.
forego
they also
municipalities
Specifically,
on
Delay
municipalities
to
local
in
hearing
not only try
Game"
defensive,
attractive opportunities
pits
for public
communities
"Municipal
response
specified
discourage future
act to
self-serving
game
timetable
governments
774
developers.
local
a
proposals.
tends
rather
which
to
than
play the
negotiate
better
designed and less offensive projects.
Developers,
increasing
"carrying
determined
costs"
to
safe in
secure
the
approvals,
pay
ever-
knowledge that state or
federal
subsidies
will
ultimately
render
the
project
"economically" feasible.
Recommendation:
hearing
public
guidelines
Establish
Don't
process.
to
followed
be
projects
allow
to
in
the
self-generate
the need for deeper subsidies.
and
State
can
program
subsidy
can be
it
where
subsidy,
state or federal
to
that a private
shown
produce
successfully
victim
a requirement for a
is there
Why
regulatory gimmicks.
useless
fallen
have
governments
federal
housing?
affordable
What is wrong with a private subsidy?
Local
Recommendation:
the
of
direction
future
affordable
a private
legislating
housing.
This private
concepts
that
between
towns,
of the
been
parts
of
Director
used
be
the
of
that
in
and
the
country.
Downtown
in
interest
as
the
recommend
produce
affordable
would
be one of several
"three-way
a
negotiation"
Commonwealth.
Private
and project approval time-lines are a
show
potential"
"swap
negotiated
concept of three-way
in various
utilized
to
well
would
I
housing.
subsidy program
developers,
issues
The
setting.
could
an
expressed
program
subsidy
project densities,
subsidies,
few
have all
government,
state
as
developers,
and
communities
forms
For
and
for various
in
this type of
settlements
reasons
in
has
other
Will
Fleissig,
former
Denver
Colorado,
coined
example,
Development
in
the term
"negotiated
which
brought
and
he
elected
settlement"
in
various parties
officials
reference
to the
process
including developers,
together
to
interact
by
neighbors,
on
complex
development issues. 2 4
distribution
of
in
developers
attempt to p ermit
an
demonstrates,
analysis
In
is
creates
SHARP
invested.
cash
actual
gimmick
SHARP
cash-flow.
this.
of
offender
dividen d"
"limited
The
m any
limits
perhaps
the
"phantom"
on
the
greatest
equity
for
higher effective dividends on
SHARP
the lim ited
sets
developments,
dividend
restrictions
as
this
are
non-
to
seek
binding due to lack of available cas h-flow.
dividend
Limited
earn
only
program
a
or
6%
project with
a
TELLER
be
able to earn
performance
of
the
unacceptable
to
most
they
are
program,
otherwise
they are
if
100% cash
equity,
on
Such
project.
private sector
induced
to
of development
depending
on
the
a developer wished to finance
return
a 10% cash
terms
dividend,
10% annual
For example,
selected.
(in
cash equity is constrained to
is,
The answer
Why?
financing).
developers
induce
state subsidies
not minimum,
maximum,
restrictions
he or she would only
a
restriction
as much
would
Therefore,
developers.
participate
inclined to borrow
despite superior
equity,
in
the
be
if
TELLER
money as possible
24 Wheeler, Michael, "Resolving Local Regulatory Disputes
and Building Consensus for Affordable Housing", MIT 1988, p. 27
56
to
financial
limit
The
public
f unds
than
are
of
percentage
of
supply
the
resulting
considerabl y
state
of
developer's
riskier
employed.
funding
of
cash
are that
equity were
cash
amounts
excessive
and
are
of the developments
a greater
Effectiv ely,
allocated
inefficiently
structure
if
limited
unfortunate consequences of this strategy
equity.
financial
their
on
restrictions
is
being
channeled into needlessly risky projects.
of
purposes
calculation
the
Although
limitations
distribution
cash
is
equity
different
for
under the
SHARP program, the same adverse financial consequences occur.
invested
but
which
in
limit
purportedly
which
restrictions)
legislative fictions
eliminate
and
do
fact
returns
financia I
on
Focus
Recommendation:
not,
highly
actual
(limited
a developer's
to
due
to
cash
dividend
return,
cash
leveraged
(risky)
affordable
housing
financial structures.
There
will
no
ever be built.
complements
will
are
almost
public
expenditure
and
produce
than
publicly-subsidized programs.
enough
a private subsidy program,
However,
streamlined
surely
that
guarantees
efficient
more
can
be
public subsidy
affordable
created
housing
under
the
which
programs
with
less
current
CONCLUSION
The
existing
analysis
public
presented
subsidy
in
this
paper,
programs
with
the
private
a subsidy alternative,
private
subsidy
and
to choose
cases,
the
as
two
approaches
subsidies
developers
analysis
would
financing
can
of
local
developments.
Also,
through
This
value
the
mitigate
use
"swap
resistance
of
market
potential"
to
(fear
induce
is
of)
private
available.
In most
subsidized
financing
of
a
respective
the
Finally,
risk.
that
significant in
the
developers
approvals,
higher
required
subsidy,
private
indicates
density for timely
most
of saving
reducing the time
by
subsidy programs
to swap
it
proforma
less than
benefits
likely
arrange
to
added
the
potentially
public
be willing
chance.
typical
necessary
years,
were
method,
longer exist.
no
secure
time
this
would
risk
market
reducing
developers
the
the combined
is
of
structured
the
Though
succeed.
existing public programs,
of the
to
shows that a properly
could
the
implementation
value of the private subsidy program
financial
time
program
comparing
if
given
light of the
density
housing
BIBLIOGRAPHY
Chapter 774,
Sections
Massachusetts General Laws.
20
to
23
of
Chapter 774: An Interpretive Analysis
Metropolitan Area Planning Commission, 1969.
Chapter
For
40B
Cities
and
Goldstein, Richard S., and Edson, Charles L., The Tax
Low Income Housing, Real Estate Review, Spring, 1987.
Kerner Report, Report of The U.S. National
of Civil Disorders, (Washington, D.C.: U.S.
Office, 1968).
sec.
20,
Towns,
Credit For
Advisory Commission
Government Printing
Lacasse, Cynthia, The Anti-Snob Zoning Law: The Effectiveness
of Chapter 774 in Getting Affordable Housing Built, M. I. T.
Masters Thesis, Department of Urban Studies and Planning, 1987.
Low Income Housing Tax Credit
Communities and Development, 1988.
Program Guidelines,
Production (SHARP),
Development, 1987.
Guidelines,
Executive
Office of
State Housing Assistance For Rental
Executive Office of Communities and
Questions and Answers About The
Massachusetts Housing Partnership.
Comprehensive
Permit
Process,
Southern Burlington County NAACP v. Township of Mt. Laurel,
67 N.J. 151, 336 A 2d 713 cert. denied, 423 U.S. 808 (1975); and
Southern Burlington County NAACP v. Township of Mt. Laurel,
161 N.J. Super. 317, 391 A.2d 935 (Super. Ct., Law Div. 1978).
Tax Exempt
Massachusetts
1985.
Local Loans To Encourage Rental Housing,
Executive Office of Communities and Development,
Village of Euclid v. Ambler Realty Co.,
272 U.S. 365 (1926).
Resolving Local Regulatory
Wheeler,
Michael,
Building Consensus For Affordable Housing, M.I.T.
#9, Center For Real Estate Development, 1988.
Disputes and
Working Paper
INTERVIEWS
Baldassari,
Cohen,
Carol - Metropolitan Area Planning Council
Howard - Mintz, Levin, Cohn,
Corman,
Murray - Chairman,
Committee.
DeLorey,
Brian
Frawley,
Brian
Gagliardi,
Housing
Appeals
Massachusetts Housing Finance Agency.
-
Homeownership Opportunity Program.
Special Commission on Implementation
Augusto - Chair.,
of Low and Moderate Income Housing Provisions.
Grace,
Kelley,
Massachusetts
Director, Tax Credit Program.
-
Peter
Ferris, Glovsky & Popeo.
Edwin - Housing Appeals Committee.
McGrath,
Tod - Massachusetts Institute of Technology.
Monahan,
Gail
-
Director, TELLER program.
Zapata, Cesar
-
Director, SHARP and MHFA programs.
Appendix A
2
3AFFORDABLE HOUSING ANALYSIS
4 (4A)
SHARP
DEAL
WITH
8.5% TAX-EXEMPT FINANCING,
WITHOUT
TAX
CREDITS
5 DAVID CARTER
6
7mnumnn*mnuuunumtnmmn*mmmn**n
28-Jul-88
mm
nimm
118
OPERATING ASSUMPTIONS:
OPERATING EXPENSES PER UNIT
LAUNDRY INCOME (NET) PER UNIT
RESERVE FOR REPLACEMENT PER UNIT PER YEAR
SHARP SUBSIDY/RESTRICTION ASSUMPTIONS:
$4,000
$100
$275
SHARP FUNDING (YES OR NO)
LIMITED DIVIDEND DISTRIBUTION
(YES OR NO)
DIVIDEND DISTRIBUTION Z
28-Jul-G8
6.00%
FINANCING ASSUMPTIONS:
=2
:==
====
MINIMUM DEVELOPER EQUITY CONTRIBUTION
(AS A I OF TOTAL DEVELOPMENT COST)
10.00%
LAND COST
UNIT LAND COST
UNITS
I AFFORDABLE
MINIMUM
TAXASSUMPTIONS:
======== Z
TAX CREDIT I
HOLDING PERIOD AFTER COMPLETION
0.00%
10.0
SITE SIZE INACRES (NET OF ROADS)
DENSITY (UNITS/ACRE)
TOTAL UNITS INDEVELOPMENT (CALC)
UNIT LAND COST/DENSITY TOGGLE
(0=SOLVE FOR DENSITY, 1=SOLVE FOR DELAY)
$1,600,000
$16,000
25.001
20.0
5.0
100
*
*
*
1
*
9
10 DEVELOPMENT PLAN:
*
28-Jul-88
11 =
12
13
14
15
16UNITS
17---------------------
18
19TWO BEDROOM, LOU INCOME (A)
20TUO BEDROOM, LOU INCOME (B)
21TW BEDROOM, MARKET (A)
22 TWO BEDROOM, MARKET (B)
23 THREE BEDROOM, LOU INCOME (A)
24 THREE BEDROOM, LOU INCOME (B)
25 THREE BEDROOM, MARKET (A)
26 THREE BEDROOM, MARKET (B)
27
28
TOTALS
RENTABLE
SQ.FT.
----------
1,000
1,100
1,000
1,100
11100
1,300
1,100
1,300
I OF
UNITS
PROJECTED
PROJECTED
TOTAL MONTHLY ANNUALPROJECTED
RENT/ 1STYEAR
RENTABLE RENT/
SG.FT.
---------------
6
6
30
30
6
6
8
8
---100
6,000
6,600
30,000
33,000
6,600
7,800
9,800
10,400
------109,200
UNIT
---------
$650
650
1,000
1,200
900
900
1,150
1,250
UNIT
$46,800
46,800
360,000
432,000
64,800
64,800
110,400
120,000
---------$1,245,600
23
34
35
36
---
#
*
*
f
*
*
#
#
29
30
31'AVERAGE' LOW INCOME UNIT
32 'AVERAGE' MARKET UNIT
*
RENT ROLL
------------------
17,800
7,900
12,000
14,400
10,800
10,800
13,800
15,000
*
*
1,125
1,082
24
76
----
100
27,000
82,200
775
1,121
9,300
13,453
223,200
1,022,400
*
*
-------
----------
f
109,200
$1,245,600
f
37 mmmummuunnmuumnummmmunmmanumuunnunmmmanununununmuummam
38
39 DEVELOPMENT COST ASSUMPTIONS:
40
44
45
46
47
48 LAND ACQUISITION
49
50
51 'HARD COSTS':
28-Jul-88
LINE
COST/
ITEM RENTABLE COST/
COSTS
SO.FT.
UNIT
---1 0 -14.65
l1,600,000
$14.65
53 RESIDENTIAL CONSTRUCTION COSTS
54 LAND DEVELOPMENT (SITE, SEWER, ETC.)
55
56
TOTAL HARD COSTS
57
58
59 'SOFT' COSTS:
60
61 ARCHITECTURAL & ENGINEERING
62 BOND PREMIUM (.004%)
63 PERMITS AND SURVEYS
64 CONSTRUCTION LOAN INTEREST
65 OAS APPLICATION FEE
66 MORTGAGE APPLICATION FEE
67 INSPECTION FEE
68 LOAN POINTS
69 REAL ESTATE TAXES
70 INSURANCE
71 LEGAL FEES
72 TITLE & RECORDING EXPENSES
73 ACCOUNTING & COST CERTIFICATION
74 RENT-UP AND MARKETING
75 DEVELOPER'S FEE
76 DEVELOPER'S OVERHEAD
77 SOFT COST CONTINGENCY (5%)
5,932,500
500,000
6
5-------
54.33
4.58
8-----
6,432,500
177,975
25,730
150,000
551,801
79
TOTAL
SOFT
COSTS
82 TOTAL DEVELOPMENT COSTS (MHFA)
3
84 TOTAL CASH DEVELOPMENT COSTS
87
-1600
$16,000
% OF
TOTAL
COSTS
-3---
13.94%
58.91
59,325
5,000
2---64,325
51.68%
4.36%
-.-0
56.04%
16,
421
41,053
168,809
25,000
100,000
100,000
15,000
15,000
50,000
1,575,500
393,875
31,649
1.63
0.24
1.37
5.05
0.08
0.15
0.38
1.55
0.23
0.92
0.92
0.14
0.14
0.46
14.43
3.61
0.29
1,780
257
1,500
5,518
82
164
411
1,688
250
1,000
1,000
150
150
500
15,755
3,939
316
1.55%
0.22%
1.31%
4.81%
0.07%
0.14%
0.36%
1.47%
0.22%
0.87%
0.87%
0.13%
0.13%
0.44%
13.73%
3.43%
0.28%
3,446,024
31.56
34,460
30.02%
$11,478,524
$105.11
$114,785
100.00%
8,211
$9,509,149
88****************************************************************
DEVELOPMENT COST ASSUMPTIONS:
28-Jul-88
ESTIMATED BREAKDOWN OF RESIDENTIAL CONSTRUCTION COSTS
I Of
TOTAL
'HARD'
COSTS
LINE
ITEM
COSTS
COST/
RENTABLE
SQ.FT.
COST/
UNIT
$200,000
1,000,000
1,400,000
700,000
1,300,000
1,000,000
50,000
$1.83
$2,000
9.16
12.82
10,000
3.37%
16.861
14,000
23.60%
7,000
13,000
10,000
500
11.80%
21.91%
16.86%
282,500
6.41
11.90
9.16
0.46
2.59
$5,932,500
$54.33
$59,325
RESIDENTIAL CONSTRUCTION COSTS:
SITE PREPARATION AND IMPROVEMENTS
SUBGRADE
FRAMING
ENCLOSURE
INTERIOR FINISHINGS I FITTINGS
MECHANICAL/ELECTRICAL/PLUMBING
OTHER MISCELLANEOUS
CONTINGENCY 1 5%
TOTAL RESIDENTIAL CONSTRUCTION COSTS
117
65
2,825
0.84%
4.76%
100.00%
es se .e
.. s
es
....
e.. e.
139
e ues.eee .
.ees
e e ......
e .
21-J9t -90
-
143
144 1VEW
to
3fui
OION (CIN, 666(ET UNITS
145 6(001
66IN FACIN: 9SfI5I3E0
UITS
5.01
u m N woo
141
14
149
-InO
151PITEVIIALIFYERS:
353 linit611*
152
LU
06011I
6ils
WITS
153
6686111 WNITS
354-
6.11
5.61
0P I I
6
106
1
----
--
1A8A
0 f
via
I
YENl
3
2
----
----
----
$223,2 M
1,022,40
4234,5
3,062,144
---
624,01
1,141,165
I
4
-
--
I
1
6
YEN
11 V I
S
5
It
YEN6
Vial
6
1
VIl
14
16
YENl
YEN
YEAR
15
1
6
vial
10
e
Y
121
11
..
12311,362
11,2117,695
6420,811
0441,13
621,3
31634,065
1321,1111
1,450,214
1,531,312
2,180,706
2,311,541 1,621,550
- - - -- - - - - - -
6264,666
1,3X1, 202
$271,311
1,210,756
1346,2511
1,127,323
633,561
1,130,%63
1311,141 1
1.140,126 2
155
156
157
10AL POTENTIAL ETWIS
15 LESS VACANCY0
1 562,2W
159 PLUSI636 (r1 LAUli6
1,245,6W
65,5I5
(KY)
61,142
10,040
18,103
1,416,0171362,051
1,394,147
1,311,104
13,6m
ltoc
62,653
13,236
61,410
12,561
11,110
3,13,320
163
164 LESS3EIi6 (IPENSES
165 LESSREPLACENNT
RESERV
166-
32,506
21,5W
1,26,111
31,325
26,615
It?
366 NET 316A106 [KO3PF
21,540
113,324
56,315
642,111
66,636
15,340
173 LESSKIT SEN(ICE:
I1I
INTEREST
172 PRINCIPAL
110,243
164,510
756,431 151,17
62,166
1,414,163
1,336,30
410,681
30,311
43,215
33,635
336,5m6 153,55
31,053
223,105 262,600
951,133 1,010.3171 .3073,2694
1,140,0M
144,291
136,423
127,121
68,431
14,51
1,676,111
1,41,511,53,7
452,116
33,426
415
35,016
4",3I6
3XE53
303,233 345,312
390,681
437123
41,301
3,233, 0114 3,286, 36 13,366,264
11,212
101,122
63,336
616,662
U6620
664,361
1.51,311
1,851,314,2,753,461
2,601,503
,
111,126
122,105
130,071 131,673
14,165
15,36
15,136
22,605
21,321
--4----. ,6.
6,40.
161,121
3330
360-
161
162E fECT1W GlOS 306661
1,141,403
1,653,61W
11,16
303,1
12,625
61.012
16,604
16,01,
3,1 4 :,6-0,405
3,611,213
2,492,833
1,
2,3-, 56
,li4.532
1,1
%
6,1
2,102,114
20,1
2,225,423
524,3
102,44
554,352
511,110
666,163
63103
737,525
365 51,65543,630
54,44
42,662
44,15
41,034
593,410
538,%2
3,451,356
1,541,261
1,73,513
1,846,432
2
2,3
66
4,316
3,6X6,11
656,4231
640,537
623,213
305,25 192,490
134,116 201,634
125,105
33,35
346,636
162,615 1
174
I15A I56
t533,231
rm 1
OPERATI0NS
33,1611
61,112
662,313
118,146 11,354
$240,251 6301,053 31,116
6453,2A3
618,121 6106,260 1603,152
6905,546 61,013,405
3InroWiWsvEisivis to
Ki63 (6066061 33.
ye3
323,63
0
6
6
0
6
6
0
0
0
6
6
0
0
117
I78 5013(ES31 (0l0m:
179
3633
S636 P 1UIt0AV (PER
3,FA040,0
0
1, 6000
1,000,0W
3,000,000
1,000,0%
3,0 ,00
3,064,04
00,6
000
3,60,00
3
3,000,004346
IN0 SNM
Ufill M ARCH
3,010
6
6
1
6
6
0 6
6
0
6
6
0
0
I66 REMIN
DEVELOPER
CONTRIBUTION
0
6
0
0
6
0
0
6
6
0
6
6
6
0
3I2
CAN0
AVAILAB
E roe v5
e11WT10 KV.
0
1,112
62,333
136,306
11,350
240,257
301,053
371,116
453,2611,013,405533,237
61,12
106,260
603,152
15,546
163 PENti63CASN
61
UTIONS
16KV.
0
,112
662,313
136,306
11,30
16,655
616,655
61,.
655
110,655
631,655
11".655
611,655
6190,65511",655
164
135 KTSEhICEC0VERAGE
(I3N 36
6, 3
1
.36
3.63
3.61
1.14
1.21
3.21
1.31
1.45 2.09
3.542.22
3.65
3.1
3.64
3.14
0
1,000,000
31
1"
III
essessessessess.*uggsgessesesgeesees
of soup
ANALySiS
Uil63
I R1PAYMENT:
VIN
192
1
TEAR
2
VIM
3
VIMR
4
VIMR
5
YEN
via
6
28 Julas
YEAR 108 YEAR
14 1
I5
0YEN
9
TEA
TEN
YEAR T
12 3
1 36
194
S3t6
TURNS A6VA666
60623,030
356INTEREST
f 51
3,615
11
987163
ri M3PEAI136
I1 INWISTONSINW AK 6*6006
11"
200(306183 W DISTRIBUTECA,3T,04
CAN OLo
6
203
702
195
6,304
6,631
6,154
1,21
6
6
0
6
32,6
32,36
A~i0
MM-DIS3TRIU6EO
MS CY
CAN
1111
r
o
6
6
6
6
6
0
gigolo.
3 124 1111011
5
to
t6
t0
t0
7,663
5,566
24
363
103
0
336,311
532
(61
41,603
1331,661
345, 1
353,251
13,331
0
0
0
6 366,6122,626
342,502
6
6
366,001 441,435
112,0311,21.41E
6s
00
0
66 s0 60
t03
(01
6
so 0E
0
0 0
"01
to)
363
6
0
421,413
37,604
633,21
714,91
622,141
2,356,313 3,065,21
3,666,30
661
4
0 10)
303
6
6
6
I
30)
(0
33
u
m
m
u
m
u
204
205 ANALYSIS OF PROJECT DEBT SERVICE:
=========== ===
206-- ====
207
208
209
210
211MORTGAGE PRINCIPAL
212 INTEREST RATE
213 MHFA ADMINISTRATIVE FEE
214 TERM
215 ANNUAL PAYMENT
216 ANNUAL PAYMENT CONSTANT
217
218
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235I
236
237
238
239
240
241
242
243
246
247
248
249
250
251
252
253
u
e
e
m
u
m
m
u
n
am
u
28-Jul-88
$8,558,234
8.501
0.501
30
$833,027
10.17%
YEAR
BEG.
BAL.
$8,558,234
8,495,448
8,427,011
8,352,415
8,271,105
8,182,477
8,085,873
7,980,574
7,865,798
7,740,693
7,604,328
7,455,690
7,293,675
7,117,078
6,924,588
6,714,773
6,486,076
6,236,795
5,965,080
5,668,909
5,346,084
4,994,204
4,610, 655
4,192,587
3,726, 893
3,240,186
2,698,775
2,108,638
1,465,388
764,245
m
e
PAYMENT
INTEREST
& FEES
$833,027
$770,241
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,
027
833,027
833, 027
833,027
823,027
833,027
833,027
833,027
764,590
758, 431
751,
717
744,399
736,
423
727,729
718,
252
707,922
696,662
684,389
671,012
656,431
640,537
623,213
604,330
583,747
561,312
536,857
510,202
481,148
449, 478
414,959
377,
333
336,320
291,617
242,890
189,777
131,385
68,782
AMORT'N
$62,786
68,437
74,596
81,310
88,628
96,604
105,299
114,776
125,105
136,365
148,638
162,015
176,597
192,490
209,814
228, 698
249,280
271,716
:36,170
322,825
351,880
383,549
418,068
455, 694
496,
707
541,411
END.
BAL.
$8,495,448
8,427,011
8,352, 415
8,271,105
8,182,477
8,085,873
7,980,574
7,865,798
7,740,693
7,604,328
7,455,690
7,293,675
7,117,078
6,924,588
6,714,773
6,486,076
6,236,795
5,965,080
5,668,909
5,346,084
4,994,204
4,610,655
4,192,587
3,736,893
3,240,186
2,698, 775
590,128
643, 250
701,.12
764,245
1,465,388
764, 245
0
eesseseessesseessessettessSssessessesseSeSsessesseessesseestessesseessessessesseessessessSSsteesessessessessessesse0essesse*essemenessessessesseessesseessesseeesesJul
254eSeSsseSSeeSssss,,SSessssesseSSeSSesseSSeSSe,,15SIseSSesseeSSessSSeeseSSe
e811
255
256POO~rnN03AL1S11
U
251
250
253
26)
1A03(01l0S2600A3ilif 0ES:
~
28 hiK 88
~
77711100
TM0060E
:-C1STGETIU-|
28.00E
262
263
264
265
26601130E100123305
10
0
Ito
3
----
00$793,320
263 PIUS(PtFCMN21I
RESERVE
269 LESS63016AGE
iTE30i7EES
210 LESS
271
LESS 0MIlIl002103: 31A0
212
213 MAAKE00 01
27410 31112 fLIA011L112)
215
211 I031NUEIN
CADICT
211
278
279 TOTALTAI
Kirits (Lllil)
200
230
0
0
0
NPRECIAIlN
0
0
iIN01
EE
r
--------
v E SI IT
va34
40
----
6942,19
04
IT
-
V E AI
YE5
5
----
I IsV I S I N E N I
YE
2 6
----
IM95,340
to0
27,500
3
23,675
36,319
31.835
710,241
764,510
50,431
f
295,170 0 215,1 0
0295, 10
5,621
5,627
0
0
0 5,621
--------------------------- ------ - ---------0250,38)
114,333)
1134,111)
210,166)
0
0
0
010,235
1
54,413
37,573
8
YEAR
7
----
8
----
EW1
9
10
--
151,133 il,0l0,377 01,073,24
2 I AI S
YEW
it
YEA
-
12
$0se
070,235 054,413
037,573
to
019,647
YE
14
01,140,00M0 1,211,004 01,206,309
15
1,366,264
5
01,451,1%
35,016
31,53
33,695
40,630
42,662
44,795
41,034
49,36
751,11
744,399
736,423
727,729
718,252
101,122
6%,662
644,319
295,790
215, 1
215,110
21, 110
211
215,1"
215,10
215, 10
5,621
5,627
5,627
5,621
5,627
5,627
5,627
5,621
---------- ---------------------------- ------------------- ------------------f2,013)
70,542
147,70 230,03
311,600
410,347
510,144
615,393
721,511
19,647
564
(19,152)
040,31)
(64,401)
(8f,2n)
(115,031)
(142,140)
5%4 (619,1522
(141,311)(164,401
(3it,921
($115,0311
(0142,840)
0
---------- ----------
3
11172,4500)
(203,052)
:.:....
234
FLoS:
ANALYSIS
O AfTER-T
A CASN
265P30OI0MA
28 Ju -8u1
2"7
201
1 0111
RATE
O1P ETURN
O EQUIT
110110IMUENi
21
INVES00161
:-C30SlmlioN-|
17.51
IN6V(ESIN3
E
YEARS
EARS
21
VE YEW YEA
t
YEAR
YE0
YE 2R
213
13
10
11
12
0
6
1
a
9
33
1
2
--- --- -- -- - ------ - -- ---------2"4
295
2% CASN
IO(NUlfI
(100,13,000
I0
141,015
so
se
s
to
s
se
s so
o
to
SO
0
10,655 10,655
211CAS 3152i0010l0 (i3(111) r30 01ERA MNS
16,655
612,313
20,106
177,350 110,655 10,1'5
0
1,112
0
0
0
42,23
164,401 (00,1202 2205,0372
19,647
514
(1,752:
2 TAI KRIM11( ialill f
0
6
0
70,235
54,413
37,573
0
0
0
0 5,355,11
0
29
SAIlSPROCEEDS
0
0
0
0
0
0
0
0
---- ---0-0-01- - --------------- - 0,------------------------------- -----------------------------300
301
S
30210TAL
Ai(R-TA CASHft1NS
201,60,000)
t0
141,0
5 $919116 1137,7521177,913 1170,
14
1149,215 1126,247 s101,72715,930,00 No
$64,115
670,235
303
304 AiE1-AI
3E 1SEN VALUE
012,000
305 Aff1 AI 111(131EAL RAEOr E1M3
18.21
306
301
300 e
ss
0s55
e
Se SSIe
292
TIE
lEd
ET
s
s
s
e
s
210
YEW
1,541,217
1,63
33,426
00
0 0
0
0
0
0
0
0
---------- -------------------------------------------------------------------------------- -----------------------------
0
----------
YEAR
YER
YE
Y1W0
E
YE
14
YEAR
25
so
1
0
0
0
0----------------to
0
0
0
0
to
0
671,012
1
295,710
2
5,621 5
---------- (172,454)
(
0
05
30j9*i**f***I*****************************************4i*44*I44*************I****
310
311 ANALYSIS OF NET SALES PROCEEDS:
312 ========================
313
315
316
317 GROSS SALES PRICE#
318
319 LESS COMMISSION I 3Z
320 LESS MHfA "APPRE CIATION PARTICIPATION' I
321
322 NET SALES PRICE
323
324 LESS ADJUSTED BASIS:
COST BASIS
325
326
PLUS: APPLI CATION OF RESERVE
LESS: DEPRE CIATION
327
328
LESS: COST AMORTIZATION
329
330
331
332 TAXABLE GAIN ON SALE
333
334 TAXLIABILITY
335
336
337
28-Jul-88
*
$15,180,714
455,421
0
0.00%
14,725,
293
9,903,024
345,892
2,957, 896
56,270
7,234,750
7,490,542
$2,097,352
---------
338
339
340
341GROSS SALES PRICE#
342
343 LESS COMMISSION 8 3%
0.00%
344 LESS MHFA "APPREC IATION PARTICIPATION' I
345
346 NET SALES PRICE
347
LESS TAXLIABILITY
LESS OUTSTANDING DEBT:
FIRST MORTGAGE LOAN
SHARP LOAN
PLUS NON-DISTRIBUTED PROJECT CASH FLOW RESERVE (WITH INTEREST)
PROCEEDS
NETSALES
*
115,180,714
455, 421
0
14,
725, 293
2,097,352
7,604, 328
(0)
831, 568
$5,855,181
INCOME
CAPITALIZED B 9.0%
NETOPERATING
*
*mmmemmm
e***mem mtm
memm
mmu
mu*H
enu
350*neseeeseegssggggggessesegsgggggssegess
32
P9131MA
STATEMNI
or
SINCES A llSESif CASI:
:-COSTUETI
:
IITEST3EIT
%I
31
YEAR
TSll
0
310 SmCES
o CASiN:
311
372 IWIEPER E3lTi
ICASI
373 EWANEAR
FMIHA ZI
wFrus
314 mw
375
T OPERAII10 INCUi
376
INTEREST
ON100 DISIIBUTE3CASH
rtLU
311 ST SALES
PICE
373 BISIRISiITIU
if CASN
fLU ESERW
319
31
32
SEAR
I
-- - ----
----
EA
2
----
TEAR
----
90
Es.
TOTAL
SOURCES
OrCASH
S
23-Jul-U8
314
X15
366
IE
YEAR
3
----
1l,
600,000
A 4,271,111 4,279,1170
A
123,RIA
0
793,3239 342,79
1"5,340
0
0
3
0
0
0
A
-----------------------------------
INVESTnIT
ARS
TEAR
SEA
4
-
-
----
YEA
5
----
TEAR
---.
SEAR
6
----
AS
to
00
A
0
0
0
0
S
0
0
0
I,073,
234 1,140,0
151,1331,010,3771
I
0
0
0
0
0
A
S0
0
A
0
----------------------------
SE ARS
vEaR
TEA
7
----
----
so
0
0
1,286,3091,366,264
15,-791 31,552
14,725,213
831,568
IA
0
I1,Z02,187
116,%2,677
11,010,377
11,073,2461,140,000
61,211,004
60,000Al,14,271,111 $4,271,1117916,330 3642,799 I95,340 S951,133
... 2- :::= ===
=
=====.. ==. == ==2======.
=
SEAR
1
---.
AS
0
0
0
EAR
9
---1o
0
H
0
0
SEAR
to
0
I
0
0
S
0
0
A
- -A0
IT
11
10
12
1
=====
===
=
----
0
I
9
0;
T===:=
3s
Us USES
ir CASN:
3s
386
37
3w
61, If
4,27,17
ACIISIIU i LIMEWLPENT
6H0,00AA
KSELAPENT
i
EIUE3CK3NIS/LAN
IRTEBEST
I FEES: EwA NfIME
IRAN
0
I
00
10
to
to
I0
15
AR
A1
0 0
00
A
A
60
0
0
0
0
136,423
0
727,721
713,252
701,122
6%,662
0
7170,241 714,590 751,431
151,717 744,311
%,604
M,623 105,299
0
0A
74,5%
81,310
62,73E
6,437
114,776
125,105
7,740,693
0
0
0
6
00
0
0 0
13,303
0
0
A
116,397
0
0
1
041,601
0
512(0)
(0)
0
H
0
0
0
0
0
0 0
0
0
0 2,011,352
190,655 10,155
0
62,313
116,106 177,350
0
9,772
19655 6,045,637
0
0
276,505 382,133
0
0
A
0
186,39
0
---------------------------- ---------- - - ----- - -- - - - --------- -- ------ -------------------
is
4,27-,117-
so
AlTIIATIU:
MAimRMAGE
0
EVA INKIrKIT
SERVICE
RESERVE
0
0
REPAYENITOF SmRP rim1i
0
0
312
TAN
LIARILITI U SALE
0
313 *LIITED DIVITRD' IISTIIUNIONS
FLOM
RESERVS
TISTRIBUIEB
PUJECfCASH
39 VON
-----------15
3%
0916,330
311
TOTAL
USES
iF CASN
$I, 600,000 $4,2719,17 I4,279,117
1042,711
995,340
1951,133 11,010,377 11,073,24 61,140,080 AI,211,004 IA
11,302,11Io 116,%2,177
Ho
31=
399
400 sS
eessesses
eeseSes
g*SSgsgge
*gsgsgseseseseeesgegeeeeueeseegegesesesmeeusssseeuseseeeseseeeseeeegs
es.,eusuemgegee*eeesegsuemseeseteessteesseuegn~o~eeseseesteesesse.,,,,,,m,.,s,,,g,,egg,;s
361
39
311
0
190,655
BREAKEVEN TIME DELAY ANALYSIS:
BASELINE ('MARKET DEAL') AFTER-T
PROFORMA TINE DELAY (INMONTHS1
28-Jul-S8
$0
0
AFTER-TAX NET PRESENT VALUE ("AT $82, 000
DELAYED
'ATNPV'
PRESENT
VALUE OF
BASELINE
'ATNPV' SUBSIDY
582, 000
60,000
38,000
16,000
(6,000)
(27,)00)
(42,000)
(69,000)
(89, 000)
(109,000)
(129, 000)
(149,000)
(168,000)
(187,000)
(206,000)
(225,000)
(243,000)
(261,000)
(279,000)
(297,000)
(314,000)
(331,000)
(348,000)
(-65,000)
(381,000)
$82,000
60,000
38,000
16,000
(6,000)
(27,000)
(48,000)
(69,000)
(89,000)
(109,000)
(129,000)
(149,000)
(168,000)
(187,000)
(206,000)
(225,000)
(243,000)
(261,000)
(279,000)
(297,000)
(314,000)
(331,000)
(348,000)
(365,000)
(38,000)
TIME-
MONTHS OF
TIME DELAY
446 munmmumunummmuummunmuummumm
447 m
448
AND UNIT LAND COST ASSUMPTIONS
449 SENSITIVITY ANALYSIS: EFFECTS ON AFTER-TAX NPV DUE TOCHANGES INREVENUE GROWTH
28-Jul-88
450 =====================
UNI T L AND COS TS
$24,000
$4,000
$8,000
$ 2,000 $16,000
$20,000
+ATNPV
(420,000) (692,000) (94
0.00%
43,000) (1,167,000) (1,390,000) (1,614,000)
(221,000) (487,000) (73
53,
000) (976,000) (1,200,000) (1,423,000)
1.00%
2.001
(29,000) (295,000) (55
59,
000) (788,000) (1,003,000) (1,218,000)
174,000
41,000) (590,000) (816,000) (1,034,000)
(87,000) (34
3.00%
ANNUAL
376,000
122,000
4.00%
(1315,000) (361,000) (575,000) (811,000)
REVENUE
(151,000) (379,000) (569,000)
584,000
6,000
336,000
GROWTH
5.001
82,000
(145,000) (371,000>
799,000
559,000
6.00%
313,000
FACTOR
324,000
(125,000)
100,000
5I,
000
1,029,000
790,000
55
7.00%
('MARKET" UNITS)
579,000
135,000
79
99,000
353,000
1,270,000 1,037,000
8.001
405,000
623,000
64,000 845,000
1,528,000 1,299,000 1,06
9.00%
7,000 1,127,000
908,000
693,000
1,805,000 1,575,000 1,34
10.00%
t
*
I
467
468
469 SENSITIVITY ANALYSIS: EFFECT ON AFTER-TAI NET PRESENT VALUE OF CHANGES IN DENSITY (HOLDING
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
UNITS/
ACRE
-----2.00
2.25
2.50
2.75
3.00
3.25
3.50
3.75
4.00
4.25
4.50
4.75
5.00
5.25
5.50
5.75
6.00
6.25
6.50
6.75
7.00
7.25
7.50
7.75
8.00
8.25
8.50
8.75
9.00
9.25
9.50
9.75
10.00
AFTER-TAX
NPV
--------($650,000)
(549,000)
(543,000)
(438,000)
(348,000)
(338,000)
(286,000)
(206,000)
(202,000)
(106,000)
(20,000)
79,000
82,000
181,000
269,000
283,000
375,000
482,000
484,000
590,000
683,000
697,000
790,000
893,000
897,000
999,000
1,092,000
1,097,000
1,199,000
1,301,000
1,407,000
1,414,000
1,519,000
*
*
f
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Appendix B
2
3 AFFORDABLE HOUSING ANALYSIS
4 (48) SHARP DEAL WITH 10.01 TAXABLE FINANCING, WITHOUT TAX CREDITS
5 DAVID CARTER
6
7
28-Jul-88
*
*
*
*
*
SHARP SUBSIDY/RESTRICTION ASSUMPTIONS:
VPERATINS ASSUMPTIONS:
OPERATING EXPENSES PER UNIT
LAUNDRY INCOME (NET) PEP UNIT
RESERVE FOR PEPLACEMENT PER UNIT PER YEAR
$4,000
$100
$275
SHARP FUNDING (YES OR NO)
LIMITED DIVIDEND DISTRIBUTION
(YES OR NO)
DIVIDEND DISTRIBUTION %
28-Jul-9B
6.00%
rNANCING ASSUMPTIONS:
MINIMUM DEVELOPER EgUITY CONTRIBUTION
(ASA I OF TOTAL DEVELOPMENT COST)
10.00%
LAND COST
UNIT LAND COST
MINIMUM I AFFORDABLE UNITS
$1,600,000
$16,000
25.00%
TAXASSUMPTIONS:
TAXCREDIT
I
HOLDING PERIOD AFTER COMPLETION
0.00%
10.0
SITE SIZE IN ACRES (NET OF ROADS)
DENSITY (UNITS/ACRE)
70TAL UNITS INDEVELOPMENT (CALC)
UNIT LAND COST/DENSITY TOGGLE
(0=SOLVE FOR DENSITY, I=SOLVE FOR DELAY)
20.0
5.0
I00
1
*
9
9
10DEVELOPMENT PLAN:
11======== = =
12
13
!4
15
16 UNITS
17 ----18
19 TWO BEDROOM, LOW INCOME (A)
20 TWO BEDROOM, LOW INCOME (B)
21 TWO BEDROOM, MARKET (A)
22 TWO BEDROOM, MARKET (8)
23 THREE BEDROOM, LOW INCOME (A)
24 THREE BEDROOM, LOW INCOME (8)
25 THREE BEDROOM, MARKET (A)
26 THREE BEDROOM, MARKET (B)
27
2B
TOTALS
29
+
*
28-Jul-88
RENTABLE
SQ.FT.
-------1,000
1,100
1,000
1,100
1,100
1,300
1,100
1,300
TOTAL
IOF RENTABLE
UNITS
SQ.FT.
----- --------
PROJECTED
MONTHLY
RENT/
UNIT
---------
PROJECTED
ANNUAL
RENT/
UNIT
--------$7,800
7,800
12,000
14,400
10,800
10,800
13,800
15,000
6
6
30
30
6
6
8
8
---100
6,000
6,600
30,000
33,000
6,600
7,800
8,800
10,400
------109,200
$650
650
1,000
1,200
900
900
1,150
1,250
24
'6
27,000
82,200
775
1,121
*
PROJECTED
IST
YEAR
RENT ROLL
---------$46,900
46,800
360,000
432,000
64,800
64,800
110,400120,000
---------$1,245,600
*
I
+
t
*
*
I
*
30
31 "AVERAGE' LOW INCOME UNIT
32 'AVERA6E" MARKET UNIT
33
34
35
36
1,125
1,082
----
100
9,300
13,453
223,200
1,022,400
-------
----------
109,200
S1,245,600
*
*
*
38
39 DEVELOPMENT CST ASSUMPTIONS:
40 ======================
28-Jul-98
COST/
RENTABLE
LINE
ITEM
48 LAND ACQUISITION
49
50
51 "HARD COSTS':
RESIDENTIAL CONSTRUCTION COSTS
LAND DEVELOPMENT (SITE, SEWER, ETC.)
TOTAL HARD COSTS
% OF
TOTAL
COSTS
COSTS
SQ.FT.
COST/
UNIT
$1,600,000
$14.65
$16,000
5,932,500
500,000
54.33
4.58
59,325
5,000
51.22%
4.32%
6,432,500
58.91
64,325
55.54%
177,975
25,730
150,000
634,571
8,211
41,053
!e,809
25,000
100,000
100,000
15,000
15,000
50,000
1,592,054
398,014
31,649
1.63
0.24
1.37
5.31
0.08
0.15
0.38
1.55
0.23
0.92
0.92
0.14
0.14
0.46
14.58
3.64
0.29
150
150
500
1;,921
3,980
316
1.54%
0.22%
1.30%
5.48%
0.07%
0.14%
0.35%
1.46%
0.22%
0.86%
0.86%
0.13%
0.13%
0.43%
13.75%
3.44%
0.27%
3,549,487
32.50
35,495
30.65%
$11,581,987
$106.06
$115,320
100.00%
13.81%
58
59 'SOFT' COSTS:
61
62
63
64
65
66
67
68
69
70
7!
72
73
74
75
76
77
78
79
80
ARCHITECTURAL & ENGINEERING
BOND PREMIUM (.004%)
PERMITS AND SURVEYS
CONSTRUCTION LOAN INTEREST
OAS APPLICATION FEE
MORTGAGE APPLICATION FEE
INSPECTION FEE
LOAN POINTS
REAL ESTATE TAXES
INSURANCE
FEES
LE2AL
TITLE & RECORDING EXPENSES
ACCOUNTING & COST CERTIFICATION
RENT-UP AND MARKET!NG
DEVELOPER'S FEE
DEVELOPER'S OVERHEAD
SOFT COST CONTINGENCY (5%)
TOTAL SOFT COSTS
1,780
257
1,500
6,l46
82
164
411
1,688
250
1,000
81
32 TOTAL DEVELOPMENT COSTS (MHFA)
$9,591,919
84 TOTAL CASH DEVELOPMENT COSTS
57
m
m
m
tm
em
mm
n
m
n
nu
u
m
u
un
ntn
n
tnu
nntn
t
38
28-Jul-89
DEVELOPMENT COST ASSUMPTIONS: ESTIMATED BREAKDOWN OF RESIDENTIAL CONSTRUCTION COSTS
% OF
TOTAL
LINE
ITEM
COSTS
COST/
RENTABLE
SQ.FT.
200, 000
1,000,000
1,400,000
700,000
1,300,000
1,000,000
$1.83
$2,000
50,000
282,500
9.16
12.82
6.41
11.90
9.16
0.46
2.59
10,000
14,000
7,000
13,000
10,000
500
2,825
3.37%
16.86%
23.60%
11.80%
21.91%
16.86%
0.84%
4.76Z
55,932,500
S54.33
559,325
100.00%
COST/ 'HARD'
UNIT
COSTS
RESIDENTIAL CONSTRUCTION COSTS:
SITE PREPARATION AND IMPROVEMENTS
SUBGRADE
FRAMING
ENCLOSURE
INTERIOR FINISHINGS I FITTINGS
MECHANICAL/ELECTRICAL/PLUMBIN6
OTHER MISCELLANEOUS
CONTINGENCY 1 5%
TOTAL RESIDENTIAL CONSTRUCTION COSTS
117
-9141
M 1esse
140
28-Jul-60
O PERATIONS:
143
1ACTOR: qist(T
N6006IN
1442VE 0
1456EV.' G000IN FACTOR: S0PS2l0E0
146EtIPENSE6gut" FACTOR
147
240
149
254
151POTENIALREVENUES:
152 600 22r60 UN2TS
153 006ET tI02S2
UNITS
6.01
UNIS5.01
5.01
YEAR
6PFR A
YE
2ia
I
7 E5A
2
----
PERATIG
S
YEN
YEA
we
3
----
---------------------
-----------
1,245,600 1,319,104
1,394,047
--
YER
1
----
5
----
4
----
4256,302
4246,070
6223,20 6234,50
2,217,65
1,141,761
1,022,400 1,003,744
154
YEAR
YEA
YE ARS
R
Y5R
YE20
YE3
---
-.
----
----
----
4363,569
0321,760
0346,256
621209
314,065
6284,311
1,630,163
1,629,55
1,727,323
1,31,202
1,450,214 1,537,312
------ ----------- -- - - - - ------------- ----------- --------- - ---
6271,301
1,26,75M
---------
12
if
15 10
141
1
1
----
1301,746
1
-
6
1
0400,035
,2
2,057,270 2
----------- - --
1,940,620
-
-- -
655
POTENIALKVE S
TTAL
I57
0 52
251 LESSVACANCY
twariy
(NET)
i00E
re1A
159 PLUS
156
1,476,077
62,20
65,145
69,742
10,040
20,600
2,236
11,120
--------------------- -----------
160
1,749,403
1,653,060
1,562,057
1,151,311
1,851,276
82,653
87,470
73,004
76,103
17,100
12,625 13,382
14,185 15,036 15,930 26,895
----------- ----------- ----- ------ ------ ----
1,903
--
2,073,580
2,114,532
-
2,456,102
2,322,56
116,128
17,1%6
103,671
101,727
22,60
20,122
22,321
-------- ----------- -- -- -----
12,561
122,052
- - - - -
- --- -- --
62
IlNC0E
162 ErFEtiVE GROSS
2,193,320
163
164
165
LESS 2P0PAT1N6 OIPENSES
LESS REP.ACEEN0 PESERVE
266
i67
ICO0
166 6NTOPERATI026
2,212,714 2,225,423
2,96,74.
1,676,2:2
1,773,0441,877,291
1,411,579
1,503,717
1,262,79 1,326,3402,414,13
--- ------ --- -------.. .
.. .. ....... -------------------- ------------- - ----- -
372,500
312,225
27,500
2,875
--------------------27,500
713,320
410,61
30,327
-----------
43f,215
31,62
-----------
56,614
118,520
951,133 1,010,377
56,375
642,799
695,340
452,776
32,1:0 2
----------25155
475,415
5,098
-------- --17,053
1,073,24 1,140,000
1,211,004
2,286,309
2,355,32
2,412,033
-77---44-- -,----
w7,970
66,763
5501,352
44,795
40,630
42,662
----- ----- ----------- ---- 1
491,16
524,145
3,653
30,695
----------- ------
223,105
1,366,264
262,
2,630,405
,-
637,101
47,034
- ---- --
---
7 I 33,2':
345,81:
2,730,573
1,451,256
1,541,287
2,6U,171
290,607
2,046,432
-
437,721
668,956%
7
49,3065
- - . ..
.
467,107
5
70%,702
7
169
270 LESSKe SEPVICE:
272
inERST
172
FRil'IPAL
906,436
47,7?6
615,000
58,274
"1,425
52,737
083,006
71,155
8n9,769
64,313
675,5
70,626
50,158
%,004
07,21
0,002
040,07
206,705
636,939
227,2
624,630
072,030
1.-,532
143,133
2
158,267
173
174
1AsFOW
6(ric20r 1606E2i
(060,8421 II2,331 2650,6221 203,0211 65E,215 0I2,222 15,12 625,641 0:,146 0412,102 641c,14 6587,125 0662,627
0
0
0
0
0
222,33
56,622
3,021
0
0
T0O0(61
COVERAGE
(1.1 7RI
256,256
I77
171 SORCESor fl~IN6:
04,004 1,000,0001,000,0
2,004,004 1,000,700
2,000,000
ff0
,040,044 2,060,004 2,040,000 1,000,0041,000,0001,000,000
I1 0A2I6ISilMPWILAP
200
0P401
ru6s0AA6E
2%,258
222,363
58,622
3,02
0
0
0
0
0
0
0
6
0
0
0
0
0
0
0
0
0
0
I6I RUI
K101.1E' C11101111U011
205,118 256,641
332,146 412,102
412,94
507,125
662,87
TOKY.
0
0
0
0
%,215 119,22
12 CAS AVAAtE 000 2S7I3UT20N
677l,34 2192,314 0192,314
to
60
56,215 4119,122 1185,918
00
0
183
PI002E2( CASH I2STRIBUI S T0 K2 .
..
--..
..
..
..
124
-----113~~~~~~~~~58,1
.35
1.43
0.52
1.62
1.72
1.00
2.06
2.12
1.19
1.27
2iN r06,
IF An2
1.10
2.00
1.00
2050
KT
SERIf CVERAGE
175
1760LOO0266
REi2It
IWA
6764,422
0
12,270
0
0
0
2,000,00
1,,00,00
0
0
0
0
0
764,422
617,277
0212,314 0192,394 0192,314
9,27
-2.
2.14
0
0
012,314
0
012,34
19
191
192
10
000yS1
s orSirPoullim
====Y====
==
EAR
==
YEAR
1
15 SN6APP
216241i
KPA ENT:
(20:3$
ST
0 65t
40A0Eu(
OPERATIONS
197 PA7FNIS r
204
" UsM0ING 6AL CE
I1 A6UAL 6ISf2IBUE0PROJECT
rASo
NOR
00
200(UnA2fVE R 2ISRIBUT CASH
FL0
201
202esaessesseaen,,geseenaeaaeseanteenese
0256,258
6,476
0
262,665
0
0
ssees,,,,,
0I2,33
15,17
0
31.94
0
0
20Jul-66
YE
At
YEAR
2
650,622 63,029
20,%8
0
0
461,735
0
0
4
0
YEAR
3
to
23,53
0
4%,327
0
0
YE
A
4
YEAR
5
0
24,816
0
0
521,144
6
0
0
0
YfAP
YEAR
6
YEAR
7
YEAR
B
YEAR
YEAR
TAR
10
9
0
0
0
0o
26,72
26,942
26,057
27,360
0
0
64,446
131,753
219,700 231,004
538,841
426,030
547,20
574,562
0
65,5%
314,131 490,423
0
0
50,750
0
65,56
460,327
0
0
s0
21,302
0
227,623
512,027I
-
1,542,76
YA
12
22
to
11,311
0
0
13
24
I
0
t
0
to 60
0
0
6I9,7'e6
2,242,644
,,e,,toe0,,,,,,,,,,,0,,,,,e,,,,ou,,,
*en
eoa*..soeusasuesu,
e
usuuigseo
gueigggggegSese
sgggg,,ggss
,gsg,,,gg,,g,,gmegggggsggggnsegengegngggggueenggsenegenneesggsseesennge**os,,,,,sssg,,
0
0
ANALYSIS
OF
28-Jul-88
PROJECT DEBT
SERVICE:
MORTGAGE PRINCIPAL
INTEREST RATE
MHFA ADMINISTRATIVE FEE
TERM
ANNUAL PAYMENT
ANNUAL PAYMENT CONSTANT
$8,632,727
10.001
0.50%
30
$954,162
10.17%
YEAR
253mn
*Hm
*+um
***
tu
BEG.BAL.
PAYMENT
$8,632,727
8,585,001
8,532,:54
8,473,990
8,409,597
8,338,442
8,259, 816
3,-72,935
8,076,930
7,970,846
7,853,623
7,724,091
7,580, 958
7,422, 796
7,248,028
7,054,908
6,841,511
6,605,708
6,345,145
6,057,223
5,739,069
5,387,509
4,999,035
4,569,772
4,095,436
3,571,294
2,992,118
2,352,128
1,644,339
863,495
$954,162
954,162
954,162
954,162
954,162
954,162
954,162
nu
u
334,t162
954,
162
954,162
954, 162
954,162
954,162
954,162
954,162
954, 162
954,162
954,162
954,162
954,162
954,162
954,162
954, 162
954,162
954,162
954,162
354, 162
954,162
954, 62
954, 162
tn
*
INTEREST
& FEES
$906,
436
901,425
895,888
889,769
883,008
875,526
867,281
958,58
848,078
836,939
824,630
811,030
796,001
779,
394
761,043
740,765
718,359
693,599
666,240
636,008
602,602
565,688
524,899
479,826
430,021
374, 986
314,172
246,973
172,719
90,667
M H*
AMORT'N
END. DAL.
$47,726
52,737
58,274
64,393
71,155
78,626
86,882
$8,585,001
8,532,264
8,473,990
8,409,597
8,338,442
8,259,816
8,172,935
%,004
8,076,930
106,085 7,970,846
117,223 7,853,623
129,532 7,724,091
143,133 7,580,958
158,162 7,422,796
174,769 7,248,028
192,1.19
7,054,908
212,397 6,841,511
235,804 6,605,708
260,563 6,345,145
287, 922 6,057,223
3!9, 154 5,739,069
5,387,509
3,560
388,474 4,999,035
429,264 4,569,772
474,336 4,095,436
524,142 3,571,294
579,176 2,992,118
639,990 2,352,128
707,189 1,644,939
963,495
781,444
(0)
863,495
***u
*
*"
"
*"
"
*
falloff##
254 -SS.. ss...sessse,.e
1s11#11e#904111s
footlssessses Islsess1
se1 sesesss1#1
seimsssesesees
eses
s ......
.e....ee...
.....
0#11sse
25
251 P9o00W000
All10lSIS
Br0*1 1)11liS 011*10tiTIES):
02g
Jbl so
=
=
=
= =
==
== =
257 ==
251
259
260fr(0TIVFIAI RAN
S 4V
T
I E AIS
20.000
:-C1St)U(0101
261
262
YEW
YEW
TEO
EA0
00EAR
YEAt
263
4
5
6&
0
1
2
3
7
N 9
10
E
15
13
14
---------- ---- ----------264
215
O" *IE 6 IK N
266 M111
t
00
09 0703,320 0942,90
1195,340 1951,1331t,010,377 11,073,24
01,140,010
1,211,004 1,216,109 11,166,264
11,451,156
01,541,287
261
26
PLus RIPIACFEfnT OSEORE
27,504
20,175 30,3090 31,135
33,421
0
35,098
36,853
40,630
38,65
40, m0
42,662
44,795
47,034
ST 6 r(ES
INtK
261 LESS110MT0AGE
M09,716 193,09(i 075,526 367,291
906,46
901,425
958,158 141,071 036,039
024,630
110,03.
79c,101
210 LESS 9ECIAI0ON
0
293,050
29,54 291,950
29,950
2m,150
298,150 290,?50
298,950
?m',950
290,950
---- 271 LESSAMORTIZION:
wNirArI.Cim06 TEE6
5,627
5,627
5,62
5,120
5,627
5,627
5,627
5,6271
5,627
5,62
5,627
---------------------------------------------.----..------ ---.-----. --------..272
----.--.. --..--0
273 1AKA0tE I00K
0390,113)4334,3201(274,06)
(211,37) (143,701)
(71,731
06,%4
174,24 267,410
36,743
42,75
5,075
505,
7U
0
274 TAI
BENEI
uoABILlITY
59,006
40,250 20,085
109,254
96,946
(41,800)
(1,421)
(24,350'
(14,175) (102,6"1
I X2,016
(964,0211
275
276 INVESTMNT
TAICRDIOS
0
0
0
0
0
00
0
0
0
0
0
-------- -- ------------------------- -- ----------------------------------- --- ----- - -- - - - ?77
sses
esessssestesases
.
s~asse
if
I
11
61,66,L97
0
0
290,050
0
0
-------
0
93,612
0
0
273
271 I0TALTARKNFrIS (l0ttIA1010
20
201
.04
.05
to
6109,254
093,612
0
to
tm====giI ?22===22-=====
=====
==
176,946
659,16
:==
==
040,259
120,095
===
-===I
(124,350)140,00
til,421)
====
==--
(1974,175)
I:
(102,6981 1132,01)
-
)064,021
I
-
AtALSISOrArTER-TACASH06DUS:
'00600RA
s0ssee10
.97
200
289
290
E9Ufff0 RATE
or
29
EIM
IRNE
-YEAR
YEAP
VfAR
0
----
293
294
295
2%
1A500NV0ST111
(11,100,001
to
1640,01
00
297 CAS * ISit0 IU0I*
004)0(000
6001 0000*o 017
29
TAI
METl
Ii 1t
0LITY)
0
0
0
109,254
299NISALES
0
PRWEEDS
0
---------300
301
302TOA AETAI
CASK 6 TO0 S
(11,600,00)0
303
304ARi0 1* A
NF PRESEN VA6
(113,000)
305
A6-9TAT
INTE
AL.RATEOrRETURN
16.71
301
30?es
17-51
10U0i0 iSTMNT
ON
YEW
YEAR
vEM
1
o0
YEAR
YEAR
S
N F
YEtAP
2
2
----
----
76,046
0
to
0640,0
0109,254
003,612
I
0
YE
EAR
4
----
----
0
to
00
0
0
0
0
59,116 40,29
20,095 ',4.10
0
------------------------
S0
0
93,612
0
----------
N V
'-
I I
5
----
0
(24,359'
0
0
140,00
0
676,946
S
7
-.-.-
0
(74,175)
---059,116
I
YEAR
YEAR
6
----
0
----------
A
E
0
0
--
so 00
56,215
0
-.---
06,473
N
---0o
(ti,122
0
0
-
1139,207
-
YEARe
10
1'
9
0
tA
IV
N
F
0
S
Y I S
YEM
-
so
IS,~
--
-
-----
0004,407
f0
0
1
m
0:'
" 2 4,79,04
-0160,044
0
3
--
0143,t0
1
309
***
*****
*
*
******
*********t****************
*
310
311ANALYSIS OF NET SALES PROCEEDS:
312
313
315
316
317 GROSS SALES PRICE#
318
319 LESS COMMISSION 1 3%
320 LESS MHFA 'APPRE CIATION PARTICIPATION' I
321
222 NET SALES PRICE
324 LESS ADJUSTED BASIS:
325
COST BASIS
326
PLUS:APPLI CATION OF RESERVE
327
LESS: DEPRE CIATION
328
LESS: COST AMORTIZATION
329
330
331
332 TAXABLE GAIN ON SAI
LE
333
334 TAXLIABILITY
335
3316
337
338
339
4ttttttttt
28-Jul-88
$15,180,714
455,421
0
0.00%
14,725,293
9,989,933
345,892
2,989,499
56,270
GROSS SALES PRICE#
34:
343 LE C"MMISSI( N 3% ~
344 LESS MHFA 'AP!
PECIATICN PARTICIPATION'
0.00%
345
346 NET SALES PRICE
347
348 LESS TAXLIABI LITY
349 LESS OUTSTANDI NG DEBT:
FIRST MORTGA GE LOAN
350
351 SHARP LOAN
252 PLUS NON-DISTR IBUTED PROJECT CASH FLOW RESERVE (WITH INTEREST)
353
-54
355 NET SALES PPCCEEDS
356
357
'
NET OPERATING
3478,549
:NCOME CAPITALIZED 1 9.0%
358
7,290,056
---------7,435,237
$2,081,866
$15,180,714
'f5, 421
0
14,725,293
2,081,866
7,853,623
0
0
S4,799,204
4tit
m.ume.nu~e
sses sem
eesseseses
3,1
362P3FOPNASTATEMNT
OF
SU1ESANDUSES
O
CASH:
364
ISYES ET
363
YEW
TIME
33
370 SUMCESIS
377
0
(ASA:
KIt&ELER
--- --
600,000
YEAR
I
----
YEA
E
NT Y
YEAR
--
YEAR
YEAR
6
4
----
YEAR
3
-----
- -
7
----
0
3,029
IUICEIS'
731AtS
.. ,340
951,133
0
0
A
0
VEAR
----
5
----
0
1,073,284
1,010,377
0
0
0
0
0
0
SISME
YEAP
to
iM6
0I
IIVE
AIS
YEAR
5
2
----
372
E0U7TY (CASA?
so
-0
37,
373
rliarmll
0 4,316,64 4,316,.4
0
314
Si*P409
0
0
0
26,2503
375
El1 SPERAIlll6 IK631
0
0 3.4
4,.3..
342,799
376
J0: 3O07T731U3E3 (ASA (lIA PES.0
0
0
377 WYSALESP11CEC
0
0
. . 0...
373
37ISAYIINi
I C si (AS tDLU ISEEVE
0
0
----------------37,
330
CESINCASH
$4,316,364
Al,600,00064,316,34
11,049,57
IUWA
1573018
,VI
2-
364
35
36
367
0
0
0
0
NT
E
YEAR
--
AI
S
YEAR
YEAR
9
----
70
to
04
0
30
30
0
0
0
0
1,211,004
1,206,09
1,366,264
0
0
0
0 74,725,213
0
A
YEAR
14
YEAR
f
75
Ao
50
0
0
------------------1954,162
64,162
3954,162 $1,01A,377 17,073,'14
11,140,010
11,17,,04 30 01,236,3
30
116,011,557
33
334UlSES
U CASH:
335
311 ACUISlIYI
SE LMB/PRN33tW3
Y 000
,60,
331KSE'.EtV V IIPOROEWSIS/tANS
SAAB
0
353 IUYfESYS fEES:
54*r 3l076AGE
0
339 All7t7I7ATY7l:
0
330
ofA4 Iurs tBi~ SERV7CE
RESERVE
0
391 3YPAYWST
P SMURP
msius1%
0
392 7*IAILItOi
UiSALE
0
313 'LISIYES
SIYIIEU' iSTRYIS~IJYIOS
0
394 ARM-8SIS
PRDJC CASHA PLt0
NWA
ilOSYSAGE
fUIS7AE
3%6
337
TYYILUSSP&
ASA
600,000
so
4,316,34
0
Al,
so
4,316,364
0
0
0
0
0
0
PESERVE
----
----
34,376,354
30
0
30
'
906,436
0
0
901,425
52,73759,274
0
0
47,726
95,4E
0
0
0
0
0
0
0
31,041,579
3954,162
30
339,763
64,313
30
s0
N33,00
71,155
0
0
0
S,215
875,536
79,626
0
0
0
3354,762
0
367,237
56,332
119,122:
c
------ - ---------37,
4,316,34
0
-- -0--
so
0
835,151
%,004
0
64,443
0
191,394
0
P0,762 37,'70,377 A:,073,28e
30
7,9370
0
192,314
37,:40,YO'
,
46
219,70
2,001,366
4,92,197
c
07,f17,00A
31
07,26,3(9
376,091,57
to
to
399
400
messeesessesemessesesenesessesggnnene
12
gsegse
,,u,,,,,,,gn,,gn,,nesg,,gengg
n,,,,,,
e
m,,s,,,,,,me,,,,,,,,g,,,,g,,,o,,,,,,,m,,,,,
emsesugsesneesggesessss
esseenA
A
~o:f44$4H4H4*4*Hi*44HHI*H4444*44*44*I*444*4*~*II44sE4444~j~~4
BREAKEVEN TIME
DELAY
ANALYSIS:
28-Jul-88
BASELINE ("NARKET DEAL") AFTER-T
$0
PROFORMA TIME DELAY (IN4ONTHSY
0
AFTER-TAX NET PRESENT VALUE ("AT (183,000)
TIREMONTHS OF
TIME DELAY
DELAYED
'ATNPV'
PRESENT
VALUE OF
SUBSIDY
($83,000)
($82,000)
(104,000)
(124,000)
(143,000)
(163,000)
(182,000)
(201,000)
(220,0300)
(23,000)
(256,000)
(274,000)
(104,000)
(124,000)
(143,000)
(163,1000)
(:32,300)
-RAAP%
(343,000)
(201,000)
(220,000)
(228,300)
(246,'200)
(274,000)
(292,000)
(309,000)
(226,000)
(243,000)
(360,000)
(360,000)
377, 000)
(393,000)
(409,000)
(425,000)
(441,000)
(456,000)
(472,000)
(487,000)
(50!,000)
(377,000)
(393,000)
(292,000)
(309,000)
(226,000)
446
BASELINE
"ATNPV'
'409,00-
(425,000)
(441,000)
(456,000)
472, COO)
(487,000)
(501,
'00)
'*I**I*H4#4~4f*f**4ffEf4*f**44~9**f*IflH4I*I**I*4H*e*~4*49*4*IIf
447'
448
449 SENSITIVITY ANALYSIS: EFFECTS ON AFTER-TAX NPV DUE TOCHANGES INREVENUE GROWTH AND UNIT LAND COST ASSUMPTIONS
450=
28-ul-88*
451
1NT L AND COS T S
452
+ATNPV
$0
$4,000
$8,000
S12,000
$16,000
$20,000
$24,0
453
0.00% (440,000) (671,000) (902,000) (1,133,000) (1,364,000) (1,595,000) (1,825,000)
454
455
456
ANNUAL
457
REVENUE
458
GROWTH
459
FACTOR
460 '"ARKET' UNITS)
461
462
463
464
465
466
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
(250,000)
(53,000)
166,000
368,000
589,000
816,000
1,054,000
1,303,000
!,569,000
1,852,000
(481,000)
(293,000)
(94,000)
132,000
344,000
577,000
819,000
1,075,000
1,341,000
1,626,000
(712,000)
(513,000)
(328,000)
(88,000)
107,000
342,000
587,000
842,000
1,112,000
1,398,000
(943,000) (1,173,000) (1,404,000) (1,635,000)
(737,000) (968,000) (1,199,000) (1,430,000)
(550,000) (769,000) (987,000) (1,209,000)
(331,000)
(78,000)
110,000
355,000
617,000
888,000
1,177,000
(568,000)
(303,000)
(83,000)
129,000
388,000
663,000
953,000
(794,000) (1,013,000)
(541,000) (776,000)
(257,000) (495,000)
(83,000) (243,000)
163,000
(59,000)
440,000
215,000
730,000
510,000
t
*
*
*
*
*
*
467
468
469 SENSITIVITY ANALYSIS:
470 =
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
*
EFFECT ON AFTER-TAX NET PRESENT VALUE OF CHANGES IN DENSITY (HOLDING
UNITS/
ACRE
-----2.00
2.25
2.50
2.75
3.00
3.25
3.50
3.75
4.00
4.25
4.50
4.75
5.00
5.25
5.50
5.75
6.00
s.25
6.50
6.75
7.00
7.25
7.50
7.75
8.00
8.25
8.50
9.75
9.00
9.25
3.50
9.75
10.00
*
(750,000)
(667,000)
(669,000)
*
*
*
f
*
f
*
(573,00)
*
AFTER-TAX
NFV
---------
(493,000)
(486,000)
(399,000)
(301,000)
(303,000)
(205,000)
(141,000)
(88,000)
(83,000)
(29,000)
45,000
51,000
128,000
2!6,000
213,000
301,000
381,000
386,000
466,000
553,000
550,000
639,000
722,000
811,000
808,000
898,000
978,000
984,00
1,'65,000
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
~HIMV
S1103SO XVi % K1IM 'BN13vVNIJ
IdW3X3-XVI Z9*BHIM
*
*BB-Inr-B8z
9
GIAVO 9
IV30 ddVHS (0t) t
SISA1VNV gNisOH 3i0VU80JJV E
D XTpuaddv
118
119
120 OPERATING ASSUMPTIONS:
121==
=
==
SHARP SUBSIDY/RESTRICTION ASSUMPTIONS:
==s=
122 OPERATING EXPENSES PER UNIT
123LAUNDRY INCOME (NET) PER UNIT
124 RESERVE FOR REPLACEMENT PER UNIT PER YEAR
125
126 FINANCING ASSUMPTIONS:
127
=
=LAND
128 MINIMUM DEVELOPER EDUITY CONTRIBUTION
12L (ASA OFTOTAL DEVELOPMENT COST)
130
131TAXASSUMPTIONS:
132 ==zzzzzzzSITE
133TAXCREDIT 1
134
135
136HOLDING PERIOD AFTER COMPLETION
137
139
= = ===
$4,000
$100
$275
10.001
4.001
10.0
==
==
28-Jul-88
#
====
SHARP FUNDING (YES OR NO)
LIMITED DIVIDEND DISTRIBUTION
(YES ORNO)
DIVIDEND DISTRIBUTION 1
YES
YES
COST
UNIT LAND COST
T
MINIMUM AFFORDABLE
UNITS
$1,600,000
$16,000
SIZE INACRES (NET OrROADS)
DENSITY (UNITS/ACRE)
TOTAL UNITS INDEVELOPMENT CCALC)
UNIT LAND COST/DENSITY TOGGLE
(0SOLVE FOR DENSITY, 1:SOLVE FOR DELAY)
#
6.00Z
25.0N)#
.
20.0
5.0
100
#
*
3
28-Jul-8
10DEVELOPMENT PLAN:
11=========
RENTABLE
SD.FT.
15
16 UNITS
17 ----TWO BEDROOM, LOW INCOME (A)
TWO
BEDROOM, LOW INCOME (8)
TWO BEDROOM, MARKET (A)
TWO
BEDROOM, MARKET (B)
THREE BEDROOM, LOW INCOME (A)
THREE BEDROOM, LOW INCOME (8)
THREE BEDROOM, MARKET (A)
THREE BEDROOM, MARKET (B)
28
UNITS
1,000
1,100
1,000
1,100
1,100
1,300
1,100
1,300
TOTALS
31 'AVERAGE' LOW INCOME UNIT
32 'AVERAGE' MARKET UNIT
IOF
1,125
1,082
PROJECTED
ANNUAL
RENT/
UNIT
PROJECTED
IST YEAR
RENT ROLL
$650
650
$7,800
7,800
12,000
14,400
10,800
10,800
13,800
15,000
$46,800
46,800
360,000
432,000
64,900
64,800
110,400
120,000
6,000
6,600
30,000
33,000
6,600
7,800
8,800
10,400
100
109,200
24
76
27,000
82,200
100
36
PROJECTED
TOTAL MONTHLY
RENTABLE
RENT/
SO.FT.
UNIT
109,200
1,000
1,200
900
900
1,150
1,250
775
1,121
9,300
13,453
*
*
*
*
*
*
*
*
----------
*
$1,245,600
*
223,200
1,022,400
$1,245,600
37
38
39 DEVELOPMENT COST ASSUMPTIONS:
40 ===================
28-Jul-88
LINE
ITEM
COSTS
48 LAND ACQUISITION
51 'HARD COSTS':
52
53 RESIDENTIAL CONSTRUCTION COSTS
54 LAND DEVELOPMENT (SITE, SEWER, ETC.)
TOTAL HARD COSTS
59
TOTAL SOFT COSTS
92 TOTAL DEVELOPMENT COSTS (MHFA)
83
84 TOTAL CASH DEVELOPMENT COSTS
85
87
% OF
TOTAL
COSTS
$14.65
$16,000
13.94%
5,932,500
500, 000
54.33
4.58
59,325
5,000
51.68%
4.36%
6,432,500
58.91
64,325
56.04%
177,975
25,730
150,000
551,801
8,211
16,
421
41,053
168,809
25,000
100,000
100,000
15,000
15,000
50,000
1,575,500
393,875
31,649
1.63
0.24
1.37
5.05
0.08
0.15
0.38
1.55
0.23
0.92
0.92
0.14
0.14
0.46
14.43
3.61
0.29
1,780
257
1,500
5,518
82
164
411
1,688
250
1,000
1,000
150
150
500
15,755
3,939
316
1.55%
0.22%
1.31%
4.81%
0.07%
0.14%
0.36%
1.47%
0.22%
0.87%
0.87%
0.13%
0.13%
0.44%
13.73%
3.43%
0.28%
3,446,024
31.56
34,460
30.02%
$11,478,524
$105.11
$114,785
100.00%
'SOFT'
COSTS:
ARCHITECTURAL I ENGINEERING
BOND PREMIUM (.004%)
PERMITS AND SURVEYS
CONSTRUCTION LOAN INTEREST
OAS APPLICATION FEE
MORTGAGE APPLICATION FEE
INSPECTION FEE
LOAN POINTS
REAL ESTATE TAXES
INSURANCE
LEGAL FEES
TITLE & RECORDING EXPENSES
ACCOUNTING & COST CERTIFICATION
RENT-UP AND MARKETING
DEVELOPER'S FEE
DEVELOPER'S OVERHEAD
SOFT COST CONTINGENCY (5%)
79
$1,600,000
COST/
RENTABLE COST/
SQ.FT.
UNIT
$9,509,149
88 *************************************************t********tetete
89
90 DEVELOPMENT COST ASSUMPTIONS: ESTIMATED BREAKDOWN OF RESIDENTIAL CONSTRUCTION COSTS
28-Jul-88
9L
92
93
94
95
z OF
LINE
COST/
96
TOTAL
97
COST/
'HARD'
ITEM RENTABLE
COSTS
COSTS
SG.FT.
UNIT
98
--... --......---.--oo
RESIDENTIAL CONSTRUCTION COSTS:
SITE PREPARATION AND IMPROVEMENTS
SUBGRADE
FRAMING
ENCLOSURE
INTERIOR FINISHINGS I FITTINGS
MECHANICAL/ELECTRICAL/PLUMBING
OTHER MISCELLANEOUS
CONTINGENCY 1 51
TOTAL RESIDENTIAL CONSTRUCTION COSTS
1,400,000
700,000
1,300,000
1,000,000
50,000
282,500
$1.83
9.16
12.82
6.41
11.90
9.16
0.46
2.59
$2,000
10,000
14,000
7,000
13,000
10,000
500
2,825
$5,932,500
$54.33
$59,325
$200,000
1,000,000
2
117
2=2
===22
3.37%
16.86%
23.60%
11.80%
21.91%
16.86%
0.84%
4.76%
100.001
_ zz
**9SOlOI~Ol96@*SSlI6UIgg,,,,,,.IlI,,,I,,,,,,,S,..4.g,,g.,.g,,,,,,.,,,.,...
149
141"KWAit AMLSIS O
142.....................
CA*i 1Lu (KilCmi
rRm
m
n..
mm
m...m
144SWIM
0m0
F1TR: 8mu
143KV01
6810M8l FACTOR:
146EI001NSE 688NT 0AC70
Ms91
6.01
5.41
M5-151POTENTAL
KW S:
I52 INI0E
Wits
13
9*001UNITS5
A
IP.E
YEN
0*8
149
----
0f8
..
T
IN IT
I
.
E AIS
----
YEN
4
3
----
ING
pII A I
P
008
YEN
YA
2
----
via
Y E A
RS
YEA
YEIE
5
---
6
- -
A
a14
- -
7
. .
1223,2M $234,361 S24,071
6256,312 1271,301 8284,066 0299,109 1314,065 8321,768 9346,2% 6363,561 8311,14 8400,135
1,822,4001,003,7441,141,016 01
1, 2",,156 01,,2102 1,450,21 1,537,312
1,621,550
1,721,323
TOTAL POTENTIAL REVENUES
I LESS9AA I51
15P.S 11E rm
28-Jul
Is
S11151108E
5.01UNITS
YEAE
155
156
ISO
.
OPERATIONS:
1,245,600
62,389
0,040
MANNY9 (8I)
65,565
69,742
10,600
1,394,847
1,311,104
13,804
78,103
11,231
1,562,057
1,476,077
82,653
87,470
12,519
11,110
12,625
1,653,011
1,749,403
1,81,376
2,601,583 1,951,311
2,753,41
222,105 130,07
15,036
15,939
21,32"
137,L73
16,815
22,609
2,102,7142,223,4232,355,322 2,492,833
2,638,405
14,185
10
8420,807
0441,121
1,82'0,113
1,140,920
2,1 0,106 2,311,348
09,727 11,128
11,%6
103,679
13,38'
1
15
- -
12k1
11
2,057,270o
2,073,580
2,114,532
17,10
2,322,%
18,"]3
2
20,122
161
m2
163
164
165
EfFECTf
amS
iEm
1,193,328 1,212,799
LESS
OPERATING
EIPSES
LISS #[PLACEMNT RESERVE
1,3X,30
372,500
11
16OFTPERATIN ME1
27,500
193,320
1,414,113 1,41,571
%,375 1,64
842,719985,340
637,101
61,9%
47,034
4
11,528
151,155
187,053
223,905 22,100
303,231
345,812
390,617
437,721
417,187
513,410
538,112
51,133 1,010,3177 1,73,284 1,140,000 1,211,004 1,201,301 1,366,264 1,451,156 1,541,28 1,636,971
1,841,432
1,731,503
Ifl
170
171
1,583,797 1,676,118 1,773,844 1,871,21 1,9,7%
391,125
410,1611
431,215
452,716
475,415
499,11
524,945
550,352
577,170
60,763
702,404
737,525
27,50
28,875
30,31
31,135
33,426
35,09
31,853
30,65 50,05540,630
42,62
44,795
54,441
LESS
KITSERVICE:
INTEREST
172
PRIKIPAL
173
174
175CASK
ilm(Krici)
1716
FUNDING
MI
770,241
764,590
758,431
751,717
744,391
73,423
62,786
68,437
74,5%
81,310
88,62
%,604
---------------------------.-.------.-- -- ......-- ---...---. .. -.---.......-- -- - - - -- - - -
r8m
FOR KIT
PERATI0ONS
COVERE
(639,707)
123,010
(1.I I1)
01,772
0
862,313
0
8118,106
0
6240,251
1171,350
0
1307,053
0
0
III
OFruBme
111 11179101 SM*P I01A7 MPET 1AI00 1,00m
180 SARP FUNiDS ADVANEE
191 01101111 KML0PE
CONTRIBUTN110
182CASN
AvAltAREroe 11S0iimi9m 08 Kv.
0
113P011111E9CAUil 11ST18it 1015 10 K .
114
185 KIT SEVICE COVERE(1T111 FUDI, IF A11)
727,729
719,252
101,122
611,662
140,31
623,213
105,211
114,776
192,410 125,105
201,114I,365
- - - - -- - - -- - - - -- - - 8317,1716
453,281
8905,546 01,013,405
4
0
0
1
614,31
6171,012 6
162,015
1
149,638
8533,237
0
1618,129
0
8708,260
8
6
0
Son
179
1,00,00
123,010
0
1,772
62,313
0
91,772
1.10
1,800,04
1,040,000
0
8
0
0
177,350
118,10
662,313
1.01
118,16
1.07
1,000,00
1,800,800
1, 0,000
1,000,00
1,004,000
1,000,000
1,000,000 1,440,400 1,M0,00
1,040,000 1,000,8000
0
0
4
0
0
0
0
8
8
0
0
0
0
9
0
.0
0
0
0
0
0
240,251
307,053
377,176
453,281 905,546
5',.'7
('1,20
803,152
1,013,405 F9,1:1
11171,350
0190,655
1190,655
110,655
910,1655
6110,655
$10,655
4150,655
015,6
6190,655
slO,655
1.14
1.21
1.29
1.37
1.45
2.0
1.54
*saususesug,, ges,,
2.22 1.64
1.85
1.74
1
eeggg
119
ANALYSIS
Dr SHARP
rWiliiN6I
191"=
=
==
I"
REPAYINEMI:
=
==
AR
=
va
1
192
I13
----
15ISiUlS
AWAKED
1123,010
1%
-- tst
7 51 3,05
117PAlIlMI
ro
I1"
MAKllCE
126,018
I9 IsAL 6N-11 15 10tR fi PfOJECT CASi Ft i
20 CU180AIVE
MIISiIOUTEOCASiLOL
0
201
GUISIMal16
o
6,619
6,50
I
4
----
7,0
0
132,39 139,001 145,959 153,257
3
111,31
48
0
0
0
0
0
(0)
0
186,001
7
---.
to
YEAR
114
....
YEN
--.
YW
YEA
10
115
-
it
i
12 1
..
to
so10
$0
of
0
(0)
(0)
0
116,357
512
(0)
10)
00
0
(0)
801
0
116,809 714,891262,626
342,582
427,473
822,741
1,737,094 2,350,311
3,065,231 3,80,030
so
(0)
(0)
0
441,435
0
101
4
0
1 9
0
----
24
YEAR
6
5
--
so
5,5%6
7,663
vie
vEaR
W
3
----
so
6,304
YEN
2
----
----
28 Jul-91
YEA
9,601
0
0
0
192,017 1,211,41
s.,e,,,,,,,,,,,,,,,,,,..............
0
0
517,604
1
6
204
SERVICE:
205 ANALYSIS OF PROJECT DEBT
206
207
208
209
210
211MORTGAGE PRINCIPAL
212iNTEREST RATE
213 MHFA ADMINISTRATIVE FEE
214 TERM
215 ANNUAL PAYMENT
216 ANNUAL PAYMENT CONSTANT
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
*
252
253
28-Jul-88
$8,558,234
8.501
0.50%
30
*
*
#
f
*
*
$833,027
10.171
YEAR
---1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
BEG.BAL.
---------
PAYMENT
-------
INTEREST
& FEES
--------
AMORT'N
-------
$8,558,234
8,495,448
8,427,011
8,352,415
8,271,105
8,182,477
8,085,873
7,980,574
7,865,798
7,740,693
7,604,328
7,455,690
7,293,675
7,117,078
6,924,588
6,714,773
6,486,076
6,436,795
5,965,080
5,668,909
5,346,084
4,994,204
4,610,655
4,192,587
3,736,893
3,240,186
2,698,775
2,108,638
1,465,388
764,245
$833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
833,027
$770,241
764,590
758,431
751,717
744,399
736,423
727,729
718,252
707,922
696,662
684,389
671,012
656,431
640,537
623,213
604,330
583,747
561,312
536,857
510,202
481,148
449,478
414,959
377,333
336,320
291,617
242,890
189,777
131,885
68,782
$62,786 $8,495,448
68,437 8,427,011
74,596 8,352,415
81,310 8,271,105
88,628 8,182,477
96,604 8,085,873
105,299 7,990,574
114,776 7,865,798
125,105 7,740,693
136,365 7,604,328
148,638 7,455,690
162,015 7,293,675
176,597 7,117,078
192,490 6,924,588
209,914 6,714,773
228,698 6,486,076
249,280 6,236,795
271,716 5,965,080
296,170 5,668,909
322,825 5,346,084
351,980 4,994,204
383,549 4,610,655
418,068 4,192,587
455,694 3,736,393
496,707 3,240,186
541,411 2,698,775
590,138 2,108,638
643,250 1,465,388
764,245
701,142
0
764,245
END. BAL.
---------
*
f
*
f
f
*
*
*
4
*
f
*
f
f
*
*
*
*
*
f
f
*
*
#
+
*
*
*
f
*
*
*
93
254*esmsess
ose,,sssesemsesessses,
6 4 0
0S......................s.............................................................
255
rwmNA A ATSiS NO,
251?..........1.....
250
259
260EFTECIIVW
TN RATE
261
2m
mr2TS (LA2imitE
S)h
TAN
20-Jil-8
26.00t
INV0ES0IN6E
-lMIEIIm-!
7I2
0
TOM
100
iM
YEN
2
1
I
TEARS
YEAR
3
YEA
YEAR
E3
4
5
VE ST
YEAR
6
8
7EM
9
I
EI
A 1
t0
7
5
TEM
2) 13
YEAR
7(0
I
1EAR
2
0E03
15
14
4
265
26?
0
20 PLP RACEMNTRFSERWE
269 LESS O6 INT~EEST A rEs
210 LOSSKME0C2Ii0120
27122LESS000i7276220: mnF (2946ill6 (EE0
*
0
0
23 (0203 iucu
(02306li )L010ltlif)
214
0
0
2112100t1NT
TANCKIPtTS
0
271
219TOTAL
TAN
KrliS
s0
0
11L01tl)
0
0793,320 6942,799
1
27,500
710,241
25,1 90
5,621
0
0
0
0
0
0
0
0
0
0
to
0
1115,340
764,510
295,70
5,62?
(250,13) (14,333)
10,235
54,413
0
0,440
o0
60
151,133 11,010,377 11,073,204
0,440
0,66)
(24,
37,573
19,647
g4,440
60,443
6134,612
6150,683
g4
11,236,301
1,10,000 $1,111,004
38,319
31,e35
33,426
35,09
3,053
150,431 51,717
744,399
736,423
127,129
215,701
215,710
295, ?0
215, 1
25,710
5,621
5,627
5,627
5,627
5,627
5,627
5,627
N,375
61,366,264
11,451,156
311,65
40,630
42,662
711,252
707,922
6%,662
215,10
295, 11
295,10 2?5,
5,627
5,627
5,627
5,627
564
22,013)
70,542
147,10M
230,031
317,600
410,347
(11,152) (41,381) (64,401) (11,121)(115,031) 4142,840) (112,450) (203,985)
440
80,446
80,440
0100,05
012,012
0116,021
00,443
90,44
660,6%
O0 44
039,00
0
1)6,040
$2,A1,171
47,034
671,412
21, 190
7
510,244
41,
6%,431
21, 70
615,313
7
0
0
26,49
01,541,2?7
44,795
684,319
134,59)
(1)42,840)
(0172,450)
($203,95)
232
2023, esesese,,4
~~
,4,, 6,se,,e.,,e
ses,,,,,,,,,e,,,,,,,,,,e,,,,,,,4,,s.,,,*,,,,,,,e,,,,,,,,,,,,,,,,e,,,,,,,,,,
~
,,,,,,,,,,,,,,_,,,,,,,e,,,
204
fL03S:
235P000iM
A0A02SIS
Or AFTER
10ACASH
207
206
209
21
211
00iElnRATE
or RETURN
ONEUlT
2i0EST000
17.51
292
FIE
213
2% CAST!
iNESTwoU
217CASH
DISiff )i0111 (KrIClI)
2" TAN
KFIilOAOILIT),
2I9ITSALES
POCEE3S
300301
302 TTALAf0R-TAI CASH
rLMS
304 A7ER TATNETPWSENT
VAL2
305ArIE-IAI INR1ARAE
Or KI
306
30?
300
I INv
:MNSTit|lm-:
0
(01,600,0
0R
0
0
2
040641,05
OPERATIONS
0
0
0
4
0
0
--------(1,600,040)
E
S
YEN
YEAR
2
06419,65
E
N Y
6 A
via
1E3
3
TM
4
TWM
5
1
00 00 10
0
150,683
0
0
134,12
0
---------
0
I IT
150,1U3144,633
0
1,712
-
62,313
100,015 81,012
11,021
0
0
----
0180,334
11,10
60,6%
0
--
4211,201 1258,X1
-
0
117,350
31,06
0
-.....-
1251,352
YEAR
1
S
0 V I S
1
I I I I I
YE
n1A
3
9
E
10
go
0
so
0
140,655
10,655
10,655
)1,655
(6,490) (34,51)
0
0
0
05,55,32
-- 0
-0
-
16,040
0229,723
120,695
1612,176 $6,011,241
Y I A I S
TRM
TEM
TWM
0
-
04
0
0
0
0,
0
00
1
0
0
5,-5,-
o
TEME
14
13
so
04
10,655
0
TEM
12
2I
-
-
0
.
00
1349,00
20.61
4ese
Ise ll
to..
.
309 **********************************************
310
28-Jul-88
311ANALYSIS OF NET SALES PROCEEDS:
312
313
314
315
316
317 GROSS SALES PRICE#
$15,180,714
318
455,421
319 LESS COMMISSION 1 31
0.00%
0
320 LESS MHFA 'APPRECIATION PARTIC IPATION' I
321
14,725,293
322 NET SALES PRICE
323
324 LESS ADJUSTED BASIS:
9,903,024
325
COST BASIS
345,892
326
PLUS: APPLICATION OF RESE RYE
2,957,896
LESS: DEPRECIATION
327
56,270
328
LESS: COST AMORTIZATION
329
7,234,750
330
331
7,490,542
332 TAXABLE GAIN ON SALE
333
$2,097,352
334 TAXLIABILITY
335
336
337
---------------------338
339
340
$15,180,714
341GROSS SALES PRICE#
342
455,421
343 LESS COMMISSION 1 3%
0.00%
0
'APPRECIATION PARTIC IPATION' I
344 LESS MNHFA
345
14,725,293
346 NET SALES PRICE
347
2,097,352
348 LESS TAXLIABILITY
349 LESS OUTSTANDING DEBT:
7,604,328
FIRST MORTGAGE LOAN
350
(0)
351 SHARP LOAN
831,568
352 PLUS NON-DISTRIBUTED PROJECT CASH FLOW RESERVE (WITH INTEREST)
353
354
$5,355,1.S
355 NET SALES PROCEEDS
356
* NET OPERATING INCOME CAP ITALIZED I9.0%
357
358
359 ******************
***
1,4flflIH4flh*,,4**HIIIH*****fI*H***Iflh@Ofl*flh*i**4I4I
95
30 *eses,.,sesness,,,.ogsesesess.,ese.ese.essUS,600S000600*00SI@0@0I.S9lS0I*IOHOS9#I*sHO.ggggggfl99gug9~geeg*gu*ug
9691****s
Se@gSOeS*
gII.uuI.I6*..**gI
g~,s,,,
I~
3'
32 "WM STATINT V
1Or ICES A O UKS O CASIk
I,,gueggIss
IHUIS@UISIIS9SOSI~*SIO*O**I6S~9flII9IIISSS~IS9IO
29-3V8
-a
323
36
367
361
211
371
310 SlICES Or CASN:
III
372 KOELOEIEWII? ICASHI )1,
373
IAinvuim 1
iiK1M
214 SilMP 100il11
375 E WEKRAIIm
iC3E
316 INTEREST
0 0-IISIOT|
ED CASH
371 NE SALES
PlCE
371 SIST1IIE 01o CASH
FtU IESEIVE
311
30
31
TOTAL
SQMCES
Or CAST!
INVEST
i-CSiSTROIEEtI-:
TINE
0
---60,000
0
0
FLU KS.
TEN
YI34
TFW
32
-------
1
----
4,279,1-0
0
so
0
123,010
713,320
0
4,271,1171
0
0
0
0
----------
---
1,04,271,117
100,000
64,271,117
0916,330
ENI
TEAR
4
----
TM
T
TEA
TEARS
TEAR
5
----
IHOY STOENT
TEaR
6
----
TEN
TEAR
1 10
---.-..
yTEAtS
YEA
IT 1
-- ..
0EN
12
--
TE
1 13
...- -- -
TEAM
14
- -
Is
00
00
o
to
60 So
0
0
0
0
0
0
0
0
0
0
*
0
0
0 0
0
0
0
00
342,799
095,340
951,133
T,010,377
0
1,316,364
1,073,294 1,140,00 1,211,004 1,216,309
0
*
0
0
0
- 0
0
0
39,552
0
0
A
0
0
0
0
0 0
0 14,125,293
0
A
0
0
0
0 0
0
13T,168
0
0
-- -- - --------------- - --- - - - - - - - -- - - - - - - -- - - - - - - - - -
15,871
6042,111
615,3401151,133
01,010,377
07,013,284
61,140,010 01,211,004 01,302,101
011,%2,617
34
34
9
5
I
1
9
0
383
314USESorCASN:
21
AC011STI0NW
O LM/PlEWLl0PEKI
31
KVELPEiOr IWOIP EIHNTSILAH MAN
11, 640,000
0
0
to
to
0
0
0
4,271,11 4, 2711 T1
0
0
0
0
0
0
0
0
WIAWT6AGE
0
770,241
764,510
0
750,431
751,711
144,211
131,423
727,121
7tH,252
707,922
1%,662
(0)
MUA MiGAGE
0
62,76
74,5%
11,310
0,620
64,4321
%,604 104,1711 125,105
105,299
1,740,613
0
390
WEAKUIIEI
KiT SETICE RSERVE
0
0
0
0 0
83,303
0
0
391
REPATE0t
O SHAPrISiTs
0
0
0
0
(0)
0
41,601
512
116,317
1,11
292
TAT
IKILITV
USALE
0
0
0 0
0
0
0
2,097,352
313 *LINT1SIVIHKND*
SISitIIONS
0
62,313
I1H,10O 177,350
190,655
110,655
190,655
110,6556,045,37
394 Ml-1ISTRIMTES
PROJECT
CASH
itI
RSERVE
0
0 0 101,0 278,505
0
0
0
332,133
----------------------- - -- - ---- - -- ----------. - - -- - --- - - --.------395
31
397
TOTAL
USESO CASH
II,04,271,117
6100,000
S4,27,117 1916,330 0842,799
95,3400951,T3301,010,3171
I,013,204
01,140,00 ST,2T1,004
1,302,101
016,%2,677
0o
3M INTERESTI
TEES:
310 AITIllAII
:
0
399
400SSff
s
egoo
s
I, l,,gs,*,,,,h,,,,,,,ges,
59595
s SOS SsUSeSiesesesee
sgeo
Ou;ueeg,,,,,gse*se
,,,,,,,,,.,,,,
0
0
0
0
0
0
to
0
0
0
0
0
a
-- -0-s0
ggggggggg~,gggg
egg,u,,,,,,,,,g
0
BREAKEVEN TIRE DELAY ANALYSIS:
28-Jul-88
BASELINE ("MARKET DEAL') AFTER-T
so
PROFORMA TIME DELAY (INMONTHS)
0
AFTER-TAX NET PRESENT VALUE ('AT $349,000
MONTHS OF
TINE DELAY
TIMEDELAYED
'ATNPV'
PRESENT
BASELINE
VALUE OF
'ATNPV' SUBSIDY
$349,000
323, 000
297, 000
272,00
247,000
222,000
198,000
174,000
150,000
127,000
104,000
81,000
59,000
37,000
15,000
(7,000)
(28,000)
(49,000)
(70,000)
(90,000)
(110,000)
(130,000)
(150,000)
(169,000)
(188,000)
446m
m
m
n
mm
m
m
$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
247,000
222,000
198,000
1714,000
150,000
127,000
104,000
81,000
59,000
37,000
15,000
(7,000)
(28,000)
(49,000)
(70,000)
(90,000)
(110,000)
(130,000)
(150,000)
(169,000)
(188,000)
n
nuu
$349,000
323,000
297,000
272,000
m
m
SENSITIVITY ANALYSIS:
ANNUAL
REVENUE
GROWTH
FACTOR
('MARKET' UNITS)
466
EFFECTS ON AFTER-TAX NPV DUE TO CHANGES IN REVENUE GROWTH AND UNIT LAND COST ASSUMPTIONS
28-Jul-88
UNIT L AND COS TS
+ATNPV
$4,000
$8,000
$12,000
$16,000
$20,000
$24,000
0.00%
(153,000)
(426,000)
(676,000) (900,000) (1,123,000) (1,347,000)
1.00%
46,000
(220,000) (486,000)
(710,000)
(933,000) (1,157,000)
2.00?
238,000
(28,000) (291,000)
(522,000) (736,000) (951,000)
3.00%
441,000
180,000
(75,000) (323,000) (550,000) (767,000)
4.00%
643,000
389,000
131,000
(95,000) (308,000) (544,000)
5.00?
850,000
603,000
352,000
116,000
(113,000) (302,000)
6.00%
1,066,000
825,000
579,000
349,000
122,
000
(104,000)
7.00%
1,296,000 1,057,000
818,000
590,000
366,000
142,000
8.00%
1,537,000 1,304,000 1,066,000
845,000
619,000
402,000
9.00%
1,795,000 1,565,000 1,330,000 1,111,000
890,000
672,000
10.00%
2,072,000 1,842,000 1,613,000 1,394,000 1,175,000
959,000
I
*
467
468
469 SENSITIVITY ANALYSIS:
470 :z:=====
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
EFFECT ON AFTER-TAX NET PRESENT VALUE OF CHANGES IN DENSITY (HOLDING
=======
UNITS/
ACRE
------
AFTER-TAX
NPV
---------
2.00
2.25
2.50
2.75
3.00
3.25
3.50
3.75
4.00
4.25
4.50
4.75
5.00
5.25
5.50
5.75
6.00
6.25
6.50
6.75
7.00
-7.25
7.50
7.75
8.00
8.25
8.50
8.75
9.00
9.25
9.50
9.75
10.00
($542,000)
(444,000)
(390,000)
(290,000)
(202,000)
(147,000)
(97,000)
(20,000)
29,000
122,000
206,000
302,000
349,000
445,000
532,000
587,000
678,000
783,000
828,000
931,000
1,023,000
1,078,000
1,170,000
1,271,000
1,317,000
1,417,000
1,509,000
1,555,000
1,656,000
1,760,000
1,809,000
1,912,000
2,021,000
*
*
#
f
f
*
f
f
*
#
f
f
f
#
f
*
#
f
*
*
Appendix D
2
3 AFFORDABLE HOUSING ANALYSIS
4 (40) SHARP DEAL WITH 10.0% TAXABLE FINANCING, WITH 9%TAXCREDITS
5 DAVID CARTER
6
7
100
28-Jul-98
*
118
119
1
120 OPERATING ASSUMPTIONS:
121=====================
122OPERATING EXPENSES PER UNIT
123LAUNDRY INCOME (NET) PER UNIT
124 RESERVE FOR REPLACEMENT PER UNIT PER YEAR
125
126 FINANCING ASSUMPTIONS:
127
128 MINIMUM
DEVELOPER
EDUITY CONTRIBUTION
129 (ASA I OFTOTAL
DEVELOPMENT
COST)
130
131TAXASSUMPTIONS:
132 ===zzzzzSITE
133TAXCREDIT 2
134
135
136HOLDING PERIOD AFTER COMPLETION
137T9SOLVE
139
SHARP SUBSIDY/RESTRICTION ASSUMPTIONS
$4,000
$100
$275
SHARP FUNDING (YES OR NO)
LIMITED DIVIDEND DISTRIBUTION
(YES OR NO)
DIVIDEND DISTRIBUTION Z
LAND
COST
UNIT LAND
COST
10.001
MINIMUM I AFFORDABLE UNITS
SIZE IN ACRES (NET OFROADS)
DENSITY (UNITS/ACRE)
TOTAL UNITS INDEVELOPMENT (CALC)
9.00?
10.0
UNIT LAND
COST/DENSITY TOGGLE
FOR DENSITY
SOLVE FOR DELAY)
101
29-Jul-8
YES
YES
6.00Z
$1,600,000
$16,000
25.001
20.0
5.0
100
1
B
mm
u im
9
10 DEVELOPMENT
PLAN:
11 ==========
m nu
14
15
16UNITS
17 ----
m
m
m
m
# OF
UNITS
u
m
m
uuun
uun
1,125
1,082
100
109,200
24
76
27,000
82,200
100
36
102
PROJECTED
PROJECTED
TOTAL MONTHLY ANNUAL
PROJECTED
RENT/ 1STYEAR
RENTABLE
RENT/
SQ.FT.
UNIT RENT
UNIT
ROLL
6,000
6,600
30,000
33,000
6,600
7,800
8,800
10,400
1,000
1,100
1,000
1,100
1,100
1,300
1,100
1,300
TOTALS
'AVERAGE" LOW INCOME UNIT
'AVERAGE' MARKET UNIT
m
28-Jul-88
RENTABLE
SO.FT.
TWO BEDROOM, LOW INCOME (A)
TWO BEDROOM, LOW INCOME (B)
TWO BEDROOM, MARKET (A)
TWO BEDROOM, MARKET (B)
THREE BEDROOM, LOW INCOME (A)
THREE BEDROOM, LOW INCOME (B)
THREE BEDROOM, MARKET (A)
THREE BEDROOM, MARKET (B)
nu
109,200
$650
650
1,000
1,200
900
900
1,150
1,250
$7,800
7,800
12,000
14,400
10,800
10,800
13,800
15,000
$46,800
46,800
360,000
432,000
64,800
64,800
110,400
120,000
$1,245,600
775
1,121
9,300
13,453
223,200
1,022,400
$1,245,600
m
37
DEVELOPMENT COST ASSUMPTIONS:
28-Jul-88
LINE
COST/
ITEM RENTABLE COST/
COSTS
SQ.FT.
UNIT
48 LAND ACQUISITION
49
50
51 'HARD COSTS':
RESIDENTIAL CONSTRUCTION COSTS
LAND DEVELOPMENT (SITE, SEWER, ETC.)
TOTAL HARD COSTS
I OF
TOTAL
COSTS
$1,600,000
$14.65
$16,000
5,932,500
500,000
54.33
4.58
59,325
5,000
51.22?
4.32%
6,432,500
58.91
64,325
55.54?
16,421
41,053
168,809
25,000
100,000
100,000
15,000
15,000
50,000
1,592,054
398,014
31,649
1.63
0.24
1.37
5.81
0.08
0.15
0.38
1.55
0.23
0.92
0.92
0.14
0.14
0.46
14.58
3.64
0.29
1,780
257
1,500
6,346
82
164
411
250
1,000
1,000
150
150
500
15,921
3,980
316
1.54%
0.22%
1.30%
5.48%
0.07%
0.14?
0.35%
1.46%
0.22%
0.86%
0.86%
0.13%
0.13%
0.43%
13.75?
3.44%
0.27?
3,549,487
32.50
35,495
30.65%
$11,581,987
$106.06
115,820
13.81?
58
59 "SOFT' COSTS:
61 ARCHITECTURAL & ENGINEERING
62 BOND PREMIUM (.004%)
63 PERMITS AND SURVEYS
64 CONSTRUCTION LOAN INTEREST
65 OAS APPLICATION FEE
66 MORTGAGE APPLICATION FEE
67 INSPECTION FEE
68 LOAN POINTS
69 REAL ESTATE TAXES
70 INSURANCE
71 LEGAL FEES
72 TITLE & RECORDING EXPENSES
73 ACCOUNTING & COST CERTIFICATION
74 RENT-UP AND MARKETING
75 DEVELOPER'S FEE
76 DEVELOPER'S OVERHEAD
77 SOFT COST CONTINGENCY (5%)
78
79
TOTAL SOFT COSTS
80
81
82 TOTAL DEVELOPMENT COSTS (MHFA)
83
84 TOTAL CASH DEVELOPMENT COSTS
85
177, 975
25,730
150,000
634,571
8,211
1,688
100.001
======
$9,591,919
87
103
88
89
90 DEVELOPMENT COST ASSUMPTIONS: ESTIMATED
91
92
93
94
95
96
97
98
BREAKDOWN
28-Jul-88
OF RESIDENTIAL CONSTRUCTION COSTS
LINE
ITEM
COSTS
COST/
RENTABLE
S0.FT.
$200,000
1,000,000
1,400,000
700,000
1,300,000
1,000,000
50,000
282,500
$1.83
9.16
12.82
6.41
11.90
9.16
0.46
2.59
$2,000
$5,332,500
$54.33
$59,325
COST/
UNIT
I OF
TOTAL
'HARD'
COSTS
RESIDENTIAL CONSTRUCTION COSTS:
SITE PREPARATION AND IMPROVEMENTS
SUBGRADE
FRAMING
ENCLOSURE
INTERIOR FINISHINGS I FITTINGS
MECHANICAL/ELECTRICAL/PLUMBING
OTHER MISCELLANEOUS
CONTINGENCY 1 5%
TOTAL RESIDENTIAL CONSTRUCTION COSTS
117
104
10,000
14,000
7,000
13,000
10,000
500
2,825
3.37%
16.86Z
23.60%
11.80%
21.91%
16.86%
0.84%
4.76%
100.00%
139
It lotsmmto
g
@
I1
s
e
s
I#
,
o
944
49Pe3womiANALYSIS
O
CAN rt
(DEFICIT)
142 ........................
e=-=: ........
144UWN
9303T
r
OE t
145 EVER
3N0300 FACTO:
1416 ENEN10IN
FCiTO
03l9 0ERA0IMS:
2
-T
rsm
9MI T UITS
11S1S3111 UNItS
3.01
6.01
5.01
1PE
IT
147
I49
ISO
----
151POTENTIL IVMIS:
152 LU INCME WITS
153
155
I1
----
I
----
YEARS
2
----
----
0
3
--.
4
----
----
----
T0TAL
P 3TENTIAL
REVENUES
1,245,6001,311,1041,314,9471,476,077
9,52,057
1,653,06
1,1,403
t59
161
181
LAUm3
i
1,193,32
I1t
27,540
713,320
13I
9T3WERA3I3
INCOME
LISSK9T SERVICE:
INE11
P9KIPAL
173
----
2,073,590
9
1
--...
7
----
YEARS
9329,118
1,629,550
2,194,532
to
1,33,31"
1,262,799
1,414,13
1,416,59
9,333,79
1,676,111
1,113,144
2,322,518
1,977,211
933,511
1346,2%
1,727,323
2,600,583
122,105
16,95
9,131,0%
1381,148
0
9
4
1,140,82
1,930,3
2,458,105
11
11
2,102,014
2,753
130,071
1,908
1
9,9
2
2,225,423
2
372,500
391,125
410,189
431,215
452,776
475,415
499,11
524,045
550,352
577,370
606,063
637,101 6
7
20,500
23,875
30,319
31,335
33,426
35,016
X,53
33,695
40,630
42,662
44,715
47,4
5
----------- ----------- ------ I------------- ----------- ----------- ----------- -------------------- --------- ------ - - ---- ..
96,64
11,521
151,155
17,053
223,105
262,600
303,231
345,392
31,618
430,021
417,107
53,9%2 5
915,340
951,133
1,010,377
1,973,214
1,940,930
1,211,004
1,206,3(1
1,316,264
1,451,156
1,541,28
1,63,971
1,738,573
9
%,375
142,799
169
972
I IN
69,742
65,905
166
171
A
13,04
71,103
82,653
07,470
12,51
97,%6
103,671
101,727
116,123
(0i1
10,000
10,600
11,236
11,910
12,625
13,392
14,185
15,031
15,338
------------------------------------------------------------------------------------------------------------------------------------------.-----62,239
162 ErrEcilE 63051INE1
163
164 LESSWERATI0 EP016SS
165 LISS REPLACEMNT RESERVE
170
It
6
----
1,959,318
1,851,376
150
is LEssvK0v(0
a50
PLUS (9m9 ram
5
----
1P
9223,244 N
234,31
02,073
0253,32
9271,301
*234,
o299,09 314,65
0,o02,400
1,043,744
1,141,761
1,211,695
1,290,%
1,38,20
1,454,214
1,537,312
--------------------------------------------------------------------------------------...
-------------- --------------- ----------.-----..-
Flatly UNITS
154
---
INS
906,436
109,425
95,0
539,169
N3,008
915,53
961,291
858,50
47,726
52,737
51,214
64,313
71,155
13,626
36,3W2
91,004
1,005
------------------------------------------------------------------------------------------------------------.-------.------------
048,073
117,223
--- --
924,630
O3,939
121,532
143,133
399,0307?
1
11
150,162
174
175CANl FtO
0DEFICIT
FM
OPERATIONS
I10311919i30
031 ai C0om (1.91i92l%,250
(11119,1421
111,31
(6ill,363)
50,322
9951,1221
3,021
5%,293
(93,291
615,91
0119,122
0
0
0
025,41
9
0
179
09SOURCES
or 0t:
179 NA9IMSNMOULAY
30 E1 M9AP
9,044,044 0,000,000 9,400,000 ,040,044
9,000,300
9,040,000
9,000,000
1,000,000
1,00,000
I0 SNPFUNlDS
ADVAlE
2%,253
91,363
56,322
3,029
3
0
0
0
0
II
9
IN09 001ilt3ECINifRI0UTION
0
0
0
0
0
0
0
0
0
0
0
0
0
0
I92
CA9 AIARErotisT11
19Ui09
10m
0 Ky.
0
0
0
0
%,215 111,122 195,91 251,841 332,146 412,002 496,114 57,125
632,817
193P109013 CAN
3istRUl09
S To Kv.
t
90
o
to 0
%,215
0119,122
095,918
192,394
1,09,000
9332,146
0
1,000,000
1412,102
0
1,000,00
0
0
64%,94
0
0,00,0
1597,125
0
0
1,000,000
0
0
12,210
1092,314
714,411
0
912,394
0992,04
09192,394
91
0
1.52
1.62
1
10
00
9
1
0
I
194
50B1IT
SERVICE
CO1EAK 9I7TN rtMIlS, IF
1.0
Al0
1.00
1.00
9.00
1.16
1.12
1
910*391pl01
0
3
9
, 41133
0
416,320
3
0
Se
2
529,944
0
0
3
0
547,209
0
0
4
0
514,5*9
0
1
43Ii
5
1
530, 4
421,030
0
65,5%
314,730
0
A
$#$##logo1
1.35
1.27
101#191118000091##4911901149#0990
19
192
102OUTSTANDING
*A0(
212,113
I9 " uo
AMM 30603000009E
PROJECT
(C1N90600
0
200(1001*000630696190010BTI
CASH I'010
202
202 *614444441-----------44SS
1.19
1.43
201 938#6
0
220,123
4"0,423
0
,
0
9
0
592,000
0
0
2
0
111,01
0
0
15,594
460,321
0
1
1
2
203
204
205 ANALYSIS OF PROJECT DEBT SERVICE:
206
207
208
209
210
211MORTGAGE PRINCIPAL
212 INTEREST RATE
213 MHFA ADMINISTRATIVE FEE
214 TERM
215 ANNUAL PAYMENT
216 ANNUAL PAYMENT CONSTANT
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
28-Jul-88
$8,632, 727
10.00%
0.50z
30
$954,162
10.17%
INTEREST
YEAR BEG.BAL. PAYMENT
& FEES
$954,162
$906,436
954,162
901,425
954,162
954,162
954,162
895,888
889,769
883,008
954, 162
954,162
954,162
954,162
954,162
954,162
954,162
954,162
954, 162
954,162
954,162
954,162
354,162
954,162
954,162
954,162
954,162
954,162
954, 162
954,162
954,162
875,536
$8,632,727
8,585,001
8,532, 264
8,473,990
8,409,597
8,338,442
8,259,816
8,172,935
9,076,930
7,970,846
7,853,623
7,724,091
7,580,958
7,422,796
7,248,028
7,054,908
6,841,511
6,605,708
6,345,145
6,057,223
5,739,069
5,387,509
4,999,035
4, 569, 772
4,095,436
3,571,294
2,992,118
2,352,128
1,644,939
863,495
954,162
954,162
954,162
954,162
106
867,281
AMORT'N
58,274
8,473,990
64,393
8,409,597
71,155
78,626
8,338,442
86,882
96,004
106,085
836,939
117,223
824,630
129,532
811,030
7%,001
143,133
158,162
779, 394
761,043
740,765
174,769
193,119
718,359
235,804
260,563
287,922
318,154
351,560
524,899
479,826
430,021
374,986
314,172
246,973
172,719
90,667
BAL.
$47,726 $8,585,001
52,737 8,532,264
858,158
848,078
693,
599
666,240
636,008
602,602
565,688
END.
213,397
388,474
8,259,816
8,172,935
8,076,930
7,970,846
7,853,623
7,724,091
7,580,958
7,422,796
7,248,028
7,054,908
6,841,511
6,605,708
6,345,145
6,057,223
5,739,069
5,387,509
4,999,035
4,569,772
4,095,436
3,571,294
2,992,118
429,264
474, 336
524,142
579,176
639,990 2,352,128
707,189 1,644,939
781,444
863, 495
(0)
863, 495
*
01
* 00 0
ki 05
003A
06 of 01
e
01
S~~~91'060'Sl iEC'91EI 986'0CE
6EI'19ES 6W I'ZES 91t'6111B101
0£00
0
0cot
0
0
0
0
0
*900I1
Ebl'EE 'r:! l s
t0'zOl101'Eli BlIVO lo
0 6E6506 06E'61
816'51Zl'6| sils
P00'6asoo
060
811
0
11
N1A
1
801A
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************************** *
309
***
I***
*****
**
***
*******
29-Jul-88
311 ANALYSIS OF NET SALES PROCEEDS:
312 =========================
313
314
315
GROSS SALES PRICE*
318
319 LESS COMMISSI ONI31
PRECIATION PARTICIPATION' I
"AP
320 LESS MHFA
321
322 NET SALES PRICE
323
324 LESS ADJUSTED BASIS:
325
COST BASIS
326
PLUS: APPLICATION OF RESERVE
327
LESS: DEPRECIATION
328
LESS: COSTAMORTIZATION
329
330
331
332 TAXABLE GAIN ONSALE
333
334 TAXLIABILITY
S15,180,714
455,421
0.001
0
14,725,293
9,989,933
345,892
2,9B9, 499
56,270
7,290,056
7,435,237
$2,081,866
335
337
338
339
340
341GROSS SALES PRI CEf
342
343 LESS COMMISSI ON@31
344 LESS MHFA 'AP
PRECIATION PARTICIPATION" I
345
346 NET SALES PRICE
$15,180,714
455,421
0
0.00
14,725, 293
347
LESS TAXLIABILITY
LESS OUTSTANDING DEBT:
FIRST MORTGAGE LOAN
SHARP LOAN
PLUS NON-DISTRIBUTED PROJECT CASH FLOW RESERVE (WITH INTEREST)
7,853,623
0
0
$4,789,804
NET SALES PROCEEDS
* NET 'PERATING INCOME CAPITALIZED
2,081,866
I9.0%
*
*
IIII*II44141141,1441*********
**************************************************II*******I*
108
SS*SS*IUlH*9elI9O4leeggggIlgggsggIlI~eUUIIlOlega6@IIi*UU
so.egu.,uue.,.geeoggegmuesolusou*uoo,,,,,,,,su,.,,.,,,,,,,,*,u.eouo,,,,n,,e,,,
H gIgeuuiHi5
@(H(SHU((SO*SISSIIS
H S.,,.,,S,,,,@,gH,,SOUU
2129PI MIA
SIATEfENT
OF S CESAn
USESif
CASH:
26-Jul1
-8
314
X5
211
211
:-CmlitKyin-i
INVESinENT
218
I(E
YEAR
YEA
YEAR
YEAR
361
0
1
2
-- -- ------370 SMURCES OF CASH:
311
312
KV1131E110E EI11 (CASH)
Al
30
so
,600,000
30
313
NwtGAE
Timwlm
4,316,3X44,316,%4
374 SMIP min
- (11,233
35 KIWERA111
I1(3
*
S
113,320 I42,799
314INITREST
O
-11-1 I TSRNE0 CASH Lm
1ES.
0
0
o
0
31? El SALES
PRICE
*
I
----- 0
373 BISiilmb or CASH
rim
KsniE
2--- 5o
0
NA
0
INVESiWENT
TEARS
YEA
3
----
YEa
----
1E6
4
----
YEA
YEAR
5
----
---
toto
0
51,1122
195,340
0
0
0
0
0
3,029
M
951,133 1,010,377 1,073,2
0
0
0
0
*
0
0
0
0
*
0
0
T0
0
0
YEAR
6
.--
TEARS
YEAR
YE*
1
----
YEAR
9
----
15
11
t0
- --
12
1
t0o
toto
0
0
1,140,0901,211,004
0
0
0
0
0
0
YEAR
8
----
0
0
0
1,2M,309
1,316,264
0
0
0 14,125,213
0
0
0
0
0
I
0
0
0
0
0
0
I
-
30
TOTAL
SMCESOF CASH
301
383
,00,011
It,
14,316,314
04,316,Y4
31,041,578
154,162
1154,162
0954,162 11,010,317
11,073,214
11,140,010
11,211,004
384 USES
Or CASK:
306
AC3IISII)1
Or L
/MS/ KVELMPVNI
61, 0
,600,000
30
0
30
331 KV0(1t& OrI0W10MNTS RA
I
0
0
0
60
4,316,364 4,316.364
0
0
0
06
3 INTEREST
a rEs: lirA l
IMAGE
0
906,436
90),
425
109,169
175,53
103,003
141,0713 O3,131
0
389
AWTIlATIM:-WBAMI6AliE
0
41,726
64,313
56,0014 (1,035 1,970,46
52,131
71,155
53,274
0
0
390 IWA fIf01011
KTSEIOICE
RESERVE
0
0
0
0
5,416,
0
P
r 110P
9m fMil
3I 1(91
0
0
64,441
(1,7153 219,7"8
0
Is
312 IAT
LIAIlLIIMSALE
0
0
6
2,0)1,866
0
0
313
"LINIE1giviKo' 31Sal0tI13S
0
135,918
0
56,215
112,314
192,394 4,02,197
119,122
0
314 WIi-DISIRIBIUEI
PROJECI
CASHTM 0ESERVE
0
0
0
0
0
0
---------------------------------------..
- -?
-- --- - - --- -- --- - - 395
3%
311
11M USES
O
CASH
,600,00 34,31,3
01
,31,3
61,049,51 t954,162 *954,162 1954,1M2 01,016,371 01,073,24 11,140,090
60
n
0
0
0
0
0
0
0
0
e
eseesseeseesseses.
1116,091,351
30
I
.
. .tgseessesesSIssessesseSe*I*SessIessessesseSeSiessesetssetesssisesesseseseenesee
se
0
---- -
0
0
0
0
0
0
-- -0--
- ---- .-
1,211,004
399
400
21,26,39
S
to
11,2,309 $16,011,557
30
sussesseessessessessesseSseSSsseSsIsssAssess#s#USes*SeSOS
ss **Ul*sessesess
SSessesse
*Seeses
00
so
401 muunmumummumnummmmummmemuum
402
403 BREAKEVEN TIME DELAY ANALYSIS:
404-==-==================
405
406
407
408 BASELINE ('MARKET DEAL') AFTER-T
409
410 PROFORMA TIME DELAY (INMONTHS)
411
412 AFTER-TAX NET PRESENT VALUE ('AT
MONTHS OF
TIME DELAY
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
446
28-Jul-88
$0
0
$523,000
TIMEBASELINE
DELAYED
'ATNPV'
'ATNPV'
$523,
000
495,000
467,000
439,000
412,000
385,
000
358,000
332,000
306,000
281,000
256,000
231,000
207,000
183,000
159,000
135,000
112,000
89,000
67,000
44,000
23,000
1,000
(21,000)
(42,000)
(62, 000)
$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
PRESENT
VALUE OF
SUBSIDY
$523,000
495,000
467,000
439,000
412,000
385,000
358,000
332,000
306,000
281,000
256,000
231,000
207,000
183,000
159,000
135,000
112,000
89,000
67,000
44,000
23,000
1,000
(21,000)
42,000)
(62,000)
*mumuunnuumuunnummmuunnunnunnu
110
447
448
449 SENSITIVITY ANALYSIS: EFFECTS ON AFTER-TAX NPV DUE TO CHANGES INREVENUE GROWTH AND UNIT
LAND COST ASSUMPTIONS
450
2-Jul=-88==
451
U N I T L A ND C 0 S TS
452
+ATNPV
$0 $4,000
$8,000 $12,000
$16,000
$20,000
$24,000
453
0.00% 166,000
(65,000) (296,000) (527,000) (758,000) (988,000) (1,219,000)
454
1.00%
356,000
125,000
(105,000) (336,000) (567,000) (798,000) (1,029,000)
455
2.00%
553,000
314,000
94,000
(131,000) (362,000) (593,000) (824,000)
456
ANNUAL
3.00%
772,000
512,000
278,000
56,000
(163,000) (381,000) (603,000)
457
REVENUE
4.00%
974,000
739,000
518,000
275,000
39,000
(188,000) (407,000)
458
GROWTH
5.00% 1,195,000
950,000
713,000
528,000
303,000
65,000
(170,000)
459
FACTOR
6.00% 1,422,000 1,183,000
948,000
716,000
523,000
350,000
112,000
460 ('MARKET' UNITS)
7.00% 1,660,000 1,425,000 1,,94,000
961,000
735,000
523,000
363,000
461
8.00% 1,909,000 1,681,000 1,448,000 1,223,000
995,000
770,000
547,000
462
9.00% 2,175,000 1,948,000 1,719,000 1,494,000 1,269,000 1,046,000
821,000
463
10.00% 2,459,000 2,232,000 2,005,000 1,794,000 1,559,000 1,337,000 1,116,000
464
465
466
111
*
#
f
f
#
#
*
f
#
*
4
467
468
469 SENSITIVITY ANALYSIS:
EFFECT ON AFTER-TAX NET PRESENT VALUE OF CHANGES INDENSITY (HOLDING
*
470 ===============
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
UNITS/
ACRE
------
AFTER-TAX
NPV
---------
2.00
2.25
2.50
2.75
3.00
3.25
3.50
3.75
4.00
4.25
4.50
4.75
5.00
5.25
5.50
5.75
6.00
6.25
6.50
6.75
7.00
7.25
7.50
7.75
8.00
8.25
8.50
8.75
9.00
9.25
9.50
9.75
10.00
($503,000)
(430,000)
(321,000)
(240,000)
(161,000)
(50,000)
30,000
121,000
221,000
313,000
372,000
419,000
523,000
572,000
642,000
744,000
817,000
901,000
994,000
1,078,000
1,154,000
f
#
#
*
#
f
*
#
f
*
I
I
*
I
1
I
I
1,254,000
1,330,000
1,414,000
I
1,505,000
1,590,000
1,670,000
1,756,000
1,847,000
1,933,000
2,011,000
2,109,000
2,188,000
I
I
*
112
Appendix E
2
28-Jul-88
HOUSIN6 ANALYSIS
3 AFFORDABLE
4 (3A)TELLER DEAL WITH TAX-EXEMPT FINANC!NG 1 8.5., WITHOUT TAXCREDITS
5 DAVID CARTER
T
mununmmmunmunumemuummtunuunuunnunnunumenueun
113
*
*
119
120OPERATING ASSUMPTIONS:
121===============================
122OPERATING EXPENSES PER UNIT
123LAUNDRY INCOME (NET) PER UNIT
124RESERVE FOR REPLACEMENT PER UNIT PER YEAR
25
126FINANCING ASSUMPTIONS:
'27
1231NIMUM DEVELOPER EgUITY CONTRIBUTION
129 (ASA % OF TOTAL DEVEL3PMENT COST)
120
!?!TAXASSUMPTIONS:
132
132TAXCREDIT 1
134
135
136HOLDING PERIOD AFTER COMPLETION
137
125n uuuu
u m m m un
SHARP SUBSIDY/RESTRICTION ASSUMPTIONS:
54,
00
$100
$275
10.00%
SHARP FUNDING (YES OR NO)
LIMITED DIVIDEND DISTRIBUTION
(YES OR NO)
DIVIDEND DISTRIBUTION Z
10.0
m nuunn
114
$1,600,000
$16,000
20.00%
SITE SIZE INACRES (NET OFROADS)
DENSITY (UNITS/ACRE)
TOTAL UNITS INDEVELOPMENT (CALC)
20.0
5.0
100
mm
m
m
mm
*
1
UNIT LAND COST/DENSITY TOGGLE
(0=SOLVE FOR DENSITY, 1:SOLVE FOR DELAY)
nn
t
10.00%
I AFFORDABLE UNITS
m
f
NO
YES
LAND COST
UNIT LAND COST
MINIMUM
0.00%
28-Jul-88
mn
e
m
m
3
9
10DEVELOPMENT PLAN:
2g-Jul-g,
11=========
A.
13
14
15
RENTABLE
16UNITS
I OF
SQ.FT.
17-----
--------
PROJECTED
PROJECTED
TOTAL MONTHLY
ANNUAL
RENTABLE
RENT/
RENT/
UNITS
S.FT.
UNIT
UNIT
PROJECTED
1ST YEAR
*
RENT
RCLL
----- -------- --------- --------- ------------------------
18
19TWO BEDROOM, LOW INCOME (A)
20 TWO BEDROOM, LOW INCOME (B)
21TWO BEDROOM, MARKET (A)
22TWO BEDROOM, MARKET (8)
23THREE BEDROOM, LOWINCOME (A)
24THREE BEDROOM, LOW INCOME (B)
25 THREE BEDROOM, MARKET (A)
26 THREE BEDROOM, MARKET (B)
27
28
TOTALS
29
30
3! 'AVERAGE' LOW INCOME UNIT
32'AVERAGE' MARKET UNIT
1,000
1,100
1,000
1,100
1,100
1,300
1,100
1,300
5
5
30
30
5
5
10
10
---100
1,125
1,088
20
80
33
----
34
35
36H
100
m
m
u
n
m
mm
m
mm
n
***m n
115
5,000
5,500
30,000
33,000
5,500
5,500
11,000
13,000
-----109,500
$650
550
1,000
1,200
900
900
1,150
1,250
22,500
87,000
775
1,125
---..
$7,800
7,200
12,000
14,400
10,800
10,800
13,200
15,000
9,300
13,500
3,:00
360,000
432,000
54,000
54,000
13,000*
150,000
*
*
9
*
$1,266,000
*
186,000
1,080,000
*
-
109,50O
m
$39,000
u
s1,E6,300
n
n
m
n
mm
t*
m
*****
27
22-Jul-s8
39 DEVELOPMENT COST ASSUMPTIONS:
40
48 LAND ACQUISITION
49
s0
51 'HARD COSTS':
RESIDENTIAL CONSTRUCTION COSTS
LAND DEVELOPMENT (SITE, SEWER, ETC.)
56
TOTAL HARD COSTS
%OF
TOTAL
COSTS
LINE
ITEM
COSTS
COST/
RENTABLE
SD.FT.
COST/
4NIT
$1,600,000
$14.61
16,000
13.95%
5,932,500
500,000
54.15
4.57
59,325
5,000
51.73%
4.36%
6,432,500
58.74
64,325
56.091
59 "SOFT' COSTS:
ARCHITECTURAL & ENGINEERING
BOND PREMIUM (.0041)
PERMITS AND SURVEYS
CONSTRUCTION LOAN INTEREST
OAS APPLICATION FEE
MORTGAGE APPLICATION FEE
INSPECTION FEE
LOAN POINTS
REAL ESTATE TAXES
INSURANCE
LEGAL FEES
TITLE & ECORDING EXPENSES
ACCOUNTING & COST CERTIFICATION
RENT-UP AND 'ARYET!NG
DEVELOPER'S FEE
DEVELOPER'S
"EUEA
SOFT COST CONTINGENCY (5%)
TOTAL SOFT COSTS
82 TOTAL DEVELOPMENT COSTS (MHFA)
83
84 TOTAL CASH DEVELOPMENT COSTS
85
S6
87
177, 975
25,730
150,000
551,185
1.63
0.23
1.37
5.03
0.00
0.15
0.37
1.54
0.23
0.91
0.91
0.'4
0.14
0
16,421
41,053
168,809
25,000
100,000
100,000
15,000
15,000
0.46
5; 000
16
1,572,
735
14.37
293,434
3.59
E1,649 0.29
1,790
257
1,500
5,512
0
164
411
1,688
250
1,000
1,000
i50
150
500
22 4
3,9)4
316
1.55%
0.22%
1.31%
4.81%
0.00%
0.14%
0.36%
1.47%
0.22%
0.87%
0.87%
0.13%
0.13%
0.44%
13.72%
3.4'%
0.28%
3,434,991
31.37
24,350
29.952
$11,467,491
$104.73
$114,675
100.00%
19,500,322
116
98***********************5******+****+*****************************
89
90 DEVELOPMENT COST ASSUMPTIONS: ESTIMATED BREAKDOWN OF RESIDENTIAL CONSTRUCTION COSTS
28-Jul-88
92
93
94
95
LINE
!?EM
COSTS
96
97
98
COST/
RENTABLE
SQ.FT.
COST/
UNIT
% OF
TOTAL
'HARD'
COSTS
RESIDENTIAL CONSTRUCTION COSTS:
SITE PREPARATION AND IMPROVEMENTS
SUBGRADE
FRAMING
ENCLOSURE
INTERIOR FINISHINGS & FITTINGS
MECHANICAL/ELECTRICAL/PLUMBING
OTHER MISCELLANEOUS
CONTINGENCY 1 5%
TOTAL RESIDENTIAL CONSTRUCTION COSTS
$2,900
10,000
14,000
7,000
1,000
10,000
50,000
282,500
$1.83
9.13
12.79
6.39
1!.87
9.13
0.46
2.58
2,825
3.37%
16.86%
23.60%
11.80%
21.91%
16.86%
0.84%
4.76%
85,932,500
$54.18
$59,325
100.00%
$200,000
1,000,000
!,400,000
700,000
,00,00
1,)00,000
117
117
500
-I
159 uoe.s .
oeonesses M Mss
Moo##eIs
g gessg eeee,0esessesessesesesesessess
esse
1e
s
M I I IeIses iseeseIIIemeIstoI
I$e
nIoIMIsoe
lltfsIIsesse
oifrIIstoosfmIIIIfs1#91se01s
oegIesfosiseusss
sesso
s
sIeIIetnosI
s
,I
t
146
28-hl -88
141 P11N8A ANALYSIS O CASH 1111 (KiICil 1TO K ERAIO11S:
==
142 =
143
6.01
144 REVEME
08811r raCT8R: Mini UNITS
145REVEU 6808TN FACTOR: SUS11tt18 UNITS
0PFI
A T11 6 Y 1E A I
0P E P A 0 6 YEA
S
146 EiPOiSE6P0000A 6OCT86
147
YEAR
AR
YEA4
YEAR YEAR YEA0 YEAR YEAR YE
148
YEN
we
IEM
YEAR YEN
12 14
13 15
10
1l
1
9
7
5
6
3
4
149
1
2
----------- - ---- --- - '
-- ---- -- - -------.
150
151 POTENIAL
RENllES:
1302,974
1286,547
6274,807
0261,721
249,2
0231,3 M
8226,44
6215,318
152 t.
IK"
UNITS
8205,865
0195,300
81,000
1,934,116
1,824,637
1,721,356
1,532,001 1,623,921
153 8A8EIUNITS
1,445,284
1,363,475
1,213,401
1,286,277
1,144,100
1,00,00
------- - --------- ------ ---------- ---------- ----------- ----------- - --- -------- ---- ----- ----------- - --.------154
WAR
Wm
1,340,100
1,266,000
Is?
15
91 .S
VACTA1N
lAU1Y
i
@ 51
89,063
79,418
84,134
11,910
75,011
11,236
1,711,258
1,682,672
1,589,559
1,501,616
1,418,553
67,005
70,92
10,600
63,300
10,000
13,382
12,625
,0,41 2,
2,805,16
2,113,114
,
13:,715
|25,30
111,854 t18,4:4
15,528
15,036
14,185
05,65
91,808
94,202
,173,172
----
1
35
2
-----.
2,507,201
2
2,6
2,050,162
- ---- -
-
2,38,286
2,237,01
140,52
16,895
8334,021
1318,123
17,908
18,983
20,122
637,101
47,034
.. . . .
668,1%
49,3016
2
140
162 6tT6timT 60S0S wowE
163
164 LESSKRATIli E10llSES
RESERVE
165 LSSREPLACMIFT
I"
167
168NETOIATI6 1NCOPI
169
170
11
72
173
174
LESS KIT SERVICE:
INTEREST
PRINCIP.
1,8f,3%
1,438,4451,522,7061,611,9211,7(,381
,2I2,70012,83,6951,358,862
2,268,8542,401,963
2,542,908
2,143,244
1,112,23 2,024,420
4"9,1K
452,776
475,415
431,215
410,681
391,125
372,508
35,018
36,853
33,426
30,311
28,875
27,500
- -------- - -- -------- ------------- -------- ---------2!,52T
151,1-5 17,053 223,705 262,608 303,232 345,892 310,687
51,27?
66,654
2,570
1,243,555 1,321,311 1,403,0091,41,586
17,862 975,295 1,036,5041,101,4011,170,342
812,70083,65
32,835
$31,441
6818
OPERATIONlS($19,554)
I75
CASH8
8 16N16iCi)
E0U0106E6
806160C6ERAG
I.I Y08)102,779
m02
276rUNin
0
085,607
0
6143,141
0
743,708
88,546
751,020
81,220
757,127
763,811
769,526
74,527
68,3'3
62,728
- - ----- - ---------- --------
1571,635
1:04,250 269,154 133,066 1411,301 167,057
0
0
0
7
0
702,404
550,352
40,630
51,855
2,692,150
577,870
737,
525
54,44
42,662
606,763
44,779
-..
-
417,107
593,410
538,%2:
,683,62:
1,788,646 I,300,118
1,584,01)
F'7,025
639,942 6%5,I6
622,634
717,585
26,228
192,312
209,620
114,669
.. . . . . I . . . .---- ---- - -
727,053
-05,201
.
.
735,739
6,515
-
524,145
38,615
437,721
1:4,707
6655,332
5,394 11,067,24
0 0
0
1753,464 851,367
2
655,821
176,433
600,381
211,865
683,154
148,500
-----
a
277
178S1I8EESor 6n186:
1,000,000
1,000,000',
I,00,000
STOOPW6ILA0(PER8A)
I7 1011100
0
0
100 SNARP MStAWAKEN
P 0VFl6E1 C11I00TION
I1I0 UIF E06
0
6R 8 SiTRIU tO 10 8V.
182CASHAVAIlAt
831,441
10
113PERIIE01CASHDIMI5l8NIONS1 8V.
164
1.10
0.11
1.04
r=0106, I ANY)
CVERAG6
(3IIIn
115 681
SERVICE
190ANALYSIS
0 SHAP 63 1686
6 7PA1N28T:
=
==
=--=
191
000
1,00,000
0
1,100,000
1,000,000
1,000,000
0
143,141
695,003
85,607
675,003
1.25
1.32
1.45
1.41
1,000,000
l,000,000
8
0
0
0
0
0
0
0
0
156,394
1,067,724
571,635
6
419,057
411,301
85,0038
055,003 015,00.
175,003
15,003
1,000,000 1,000,000 2,uW0,000 1,000,000
0
0
0
0
1
0
31,441
085,607
1.17
000
!,0
0
0
204,250
65,003
2.55
0
.0
269,254
330,08
15%003
05,003
2.69
1.77
1.70
2.02
YEAR
=
YEAR
YEAR
2
192
3
YEAR
YEAR
4
5
115
SHARPf10105ADVANCED
so
to
0
0
51
116IllTEREST 0
rem OPERATIONS
I1 PAINENTS
1"IOiSIAND16
8ALAlCE
0
CASH6t0
19"ANNUAL
0o0-ISIUTEiio PROJECT
200(UaI ll 2 O DISiTRIDTED CASH 6l01
0
0
201
2029988e898,e8898tesesseessetteessesse8e1tessessessesse9e9stetteste9weess
0
40,138
8
0
0
0
0
0
#0
so
so
0
0
0
107,246
0
174,151
243,085
0
to
0
0
0
0
0
0
476,631
326,250
354,054
157,384
48,130
to
to43
to
0
0
0
0
0
657,461
756,364
564,327
574,620
331,535
0
96sseessesseseessessessessessettesesses8ee1sesse
*
0 *
00
YEAR
YY
11
1
so80
0
0 0
00
0
861,311
a
9
-
-
-
8
0
I
I
1,761,603
00
0
0
0
0
-
--
91.
11
0
0
0
972,921
e
.-
to
4,602,148
1,284,972
671,19O 5,574,061
909e1stesse8teste6s
YEAR
10
YEAR
.
'94
0
e
YEAR
YEAR
15
6
-.
----.--.
-3
YEAR YEAR
14
7
YEAR
6
0
0
757,464
171,003
2.26
2.15
28-hil88
=
1
0
6., 132
75,003
0
2,325,932
0
2,983,313
88stessessess 9Ies9'e'essessessessessessesIese
203 nmanumummmmum
204
205 ANALYSIS OF PROJECT DEBT SERVICE:
28-Jul-88
207
208
210
211MORTGAGE PRINCIPAL
212INTEREST RATE
213 MHFA ADMINISTRATIVE FEE
214 TERM
215 ANNUAL PAYMENT
216 ANNUAL PAYMENT CONSTANT
217
$8,550,290
8.50%
0.50
30
$832,254
10.17%
218
YEAR
219
220
221
BAL.
1332,
254
832,254
832,254
8,487,562
8,419,189
8,344,662
8,263,427
8, 74, 882
, 78, 367
7,373,166
7,858,497
7,733,507
7,597,269
7,448,769
7,286,904
7,110,472
6, 319,160
6,709,540
6, 4q0,
055
6,231,006
5,959,543
5, 663, 647
5,341,122
4,989,568
4,606, 376
4,188,695
3,733,424
3,237,178
2,
696,270
2,106,680
234
235
236
237
238
239
240
241
242
243
1!4
245
246
247
248
nu
m
mnn
m
nnn
$769,526
763,881
757,
727
751,020
743,708
735,
739
727,053
717,585
707, 265
696,016
683,754
670,389
655,821
639, 942
622,
634
603, 769
583,205
60,791
536,359
509, 728
480,
701
449,061
414,574
276, '83
336,008
291,346
242,664
189,601
'31,762
68,718
832,254
232, 254
832, 254
932, 254
3,254
832,
254
832, 254
832, 254
832, 254
832, 254
832,254
832, 254
832, 254
932, 254
832,
254
832, 254
832, 254
a32,254
832, 254
222,254
832, 254
832, 254
932, 254
832,f54
1,!64,027
332,254
763,536
832,254
nnm
INTEREST
& FEES
PAYMENT
$8,550,290
224
225
226
227
228
229
230
231
232
250
251
252
253
SES.
n
119
m
m
num
AMORT'N
END.
$62, 728
68,373
74,527
81,
234
88,546
96, 515
105, 201
114,
6693
124, 989
136,238
148,500
161,865
176,433
192,312
:'9,
620
223,485
.19',
049
SAL.
235,895
W22, 526
351,
553
283, 13
417, 60
455,271
496,246
540,308
$8,487,562
8,419,189
8,344,662
8,263,427
8,174,882
8,078,367
7,973,166
7,858,497
7, 733, 507
7,597,269
7,448,769
7,286,904
7,110,472
6,918,160
6,708,540
6,480,055
6,231,006
5,959,543
5,663,647
5,341,122
4,389,
568
4,606, 376
4,188, 695
3,733,424
2,231,178
2,696,270
642,653
1,464,027
21,463
.,41W,680
'*0,492
763,536
n
nnn
763,536
0
n
m
nnn
m
*
01
06
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309 **4****
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310
311ANALYSIS IF NET SALES PROCEEDS:
312
313
314
315
316
317 GROSS SALES PRICE#
38
319 LESS COMMISSION I 3al
320 LESS MHFA 'APPRE CIATION PARTICIPATION'
321
222 NET SALES PRICE
223
SIS:
324 LESS ADJUSTED BA
325
COST BASIS
326
PLUS:APPLI CATION OF RESERVE
327
LESS: DEPRE CIATION
LESS: COST AMORTIZATION
328
329
330
331
332 TAXABLE GAIN ON SALE
333
334 TAXL:ABILITY
235
338
339
***
**********+++H*******
28-Jul-98
*
*
I
I
$15,599,762
467,963
0
0.00.
15,130,799
9,993,756
345,892
2,954,526
56,270
7,228, 352
---------7,901,947
$2,212,545
---------
241GROSS SALES PRICE#
242
N ^;Z
:43 LZES
344 LESS MHFA 'APPRECIATION PARTICIPATION' 1
345
346 NET SALES PRICE
247
.ES TAXLIABILITY
LESS CUTSTANDING DEBT:
FIRST MORTGAGE LOAN
SHARP LOAN
PLUS NON-DISTRIBUTED PROJECT CASH FLOW RESERVE (WITH INTEREST)
$15,598,762
467,963
0
15,10,739
-,1
45
0
1,8~86,
521
$7,207,506
NET SALES PRCCEEDE
' # NETOPERATING
CAP:TALIZED 1 9.0%
:NqCM2E
121
360
SeSSese
HHsIHHsHHse HIesIeneneeu
eessettestetteteesHeHsH
t
efeH
eseH
@ sHeHHeHHHse8eHnesHnnegHn
ss
314
X5
366
37
m68
361
370SOURCES
0T CASH:
essesessssesessesessH
mnnsnHnegsHegmseHnsugemsug.eHHHHsHsesssneesseseHsHHenessessaseHesessesee
32 PRORM0A
STARENTDr 501CESAW0USESDr ASH:
28 vI-lH
gi-:
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0
YEAR
YEAR
1
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YEAH
23
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4
5
N
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YEAR
6
YEAR
7
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8
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YE A 0
YEAR f[A?
YEAR
9
to
S
YEA
II
I
TEAF
YEAR
1312
372 KVElWOP
[QUITY (CASH)
At,600,000
s8
so
1,554
to
s0
to
10
m076AGEripwAllIKG
373 KWA
0
4,215,145 4,275,145
0
0
0
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0
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374 SHARP
ruoiG
0
0
0
0
0
o
0
9
0
375 NET
OPERAI81 8 I(0E
O
0
0
0
917,80t
175,315 1,0316,504 1,101,08
1,170,342 1,243,555
!,321,311 1,403,081
0
376 I28f08ST ONM-DISitRIUt
7
EDCASH
r.09RES.
0
0
0
4,
092
0
2,,
95
13,725
34,:61
14,18
52,881
-- -0----- 377 MEYSALES
PRICE
7
0
0
0
0
0
0 15,130,719
371 DISI1R9U8IM
OF CASH
rtM RE
O
SFRVE
---- I
0H
0
0
0
0 1,8%,521
371
380
381
TOhA SOURCES Di CASH
1!,600,000
84,275,145
84,275,1458832,254
183,115 1117,361 1175,315
11,040,515
81,115,133
01,:00,"7
8:%,437
11,405,572 8:8,546,:28
TTTT-=-382
383
384USES
Or CASH:
385
316 AChUISITIhN
Or LAN/PEI V[LWKNI
so
to
to
to
so
81,600,0800
80
so
0
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ISILAlDSRAH
0
0
0
3
4,275,145
0
0
0
31
18isiRES lEES: PenAPKAI6AGE
0
0
769,532
703, 8C1
757, :2:
751,020 743,708
735,139
727,053 '77,505
707,265
339 AN8IIOAION: WA HOPIG
AGE
0 -- 2-----0
0',728
68,373
74,527 81,234 89,546 1%,5:5 !cs,
:01
774,0691 124,9891
,733,507
0
310
WA REUIREDKl'SrPV0C
E
7SERVE
0
0
0
0
0
0
0
311 1MPAYIfu
or SHARP
G 1UNDN
0
0
0
0
0
0
0
0
31 [AtLIABILITIY
O SALE
n
0
01
0
0
2,212,545
0
313 'LIHNIIE DI18(' 8STRI
lUyItDS
31,441
85,607
95,003
95,003
95,003
95,003
95,003
95,003 1,302,510
0
394 0 DISTRIBUTEDPROJECT
CASHItL. RESERVE
0
0
48,138 !!:,38 187,876
309,171 478,3:5 001,550
------------------- - 315
3%
3917
TOTAL
USESV
CASH
11,600,0004,275,14514,275,1451832,254 111063,6519:7,861 1975,3511,040,515
11,115,1331,,0' A,:O,137 81,405,572
18,541,1:0
C
318
311
..
==:.
..
.
..--.
400
:4
YEAHe
Is
to
0
0
0
0
0
0
0
8
to
0
0
H
H
0
0
H
0
.
H
H
0
H
H
0
0
H
to
..-
402
403BREAKEVEN TIME DELAY ANALYSIS:
404 =
=
=
=
=
28-Jul-88
=
405
406
407
408 BASELINE ("MARKET DEAL') AFTER-T
409
410 PROFORMA TIME "ELAY '!NMONTHS)
so
0
AFTER-TAX NET PRESENT VALUE ("AT $488,000
MONTHS OF
TIME DELAY
0
1
4
5
6
7
8
3
10
11
12
13,
!4
15
16
17
:8
19
20
21
22
24
446
7,I!EDELAYED
'ATNPV'
$488,000
460,000
432, 000
405,000
378,000
352,000
326,
000
300,000
275,000
250, '00
225,000
201,000
177,000
:53,
000
120,
000
107,000
54,000
6,0
39,000
17,000
(4,000)
(26,000)
n00)
(47,
(67,000)
'88,000)
BASELINE
'ATNPV'
PRESENT
VALUE OF
SUBSIDY
$488,000
460,000
432, 000
405,000
378,000
5,000
326,000
300,000
25,000
250,000
225,000
201,000
177,000
*C: AlSo
1"2000
130,000
107,000
34,
000
39,000
17,000
(4,000)
(26,000)
(47,000)
(67, 300)
'88,000)
Hmmnummuumnumamunumannuunnunun
123
448
449 SENSITIVITY ANALYSIS: EFFECTS ON AFTER-TAX NPV DUE TO CHANGES IN REVENUE GROWTH AND UNIT LAND COST ASSUMPTIONS
450
28-Jul-88
451
UNI T L AND COS TS
452
+ATNPV
$0
$4,000
$8,000
$12,000
$16,000
$20,000
$24,000
453
0.00?
(100,000) (365,000) (622,000) (878,000) (1,134,000) (1,390,000) (1,646,000)
454
1.00%
126,000
(175,000) (431,000) (688,000) (944,000) (1,200,0) (1,456,000)
455
2.00% 408,000
95,000
(208,000)
(484,000)
(741,000)
(997,000) (1,253,000)
456
ANNUAL
3.00%
707,000
395,000
S6,:,0 (212,000) (498,000) (772,000) (1,037,000)
457
REVENJUE
4.00% 1,026,000
714,000
403,000
99,000
(197,000) (485,000) (767,000)
458
GROWTH
5.00% 1,364,000 1,052,000
740,000
434,000
133,000
(162,000)
(452,000)
459
FACTOR
6.00% 1,724,000 1,412,000 1,100,000
792,000
488,000
188,000
(106,000)
460 ('MARKET' UNITS)
7.00% 2,106,000 1,794,000 1,482,000 1,172,000
867,000
565,000
266,000
461
8.00% 2,513,000 2,200,000 1,388,000 1,577,000 1,271,000
966,000
667,000
462
9.00% 2,944,000 2,632,000 2,20,000 2,008,000 1,701,000 1,395,000 1,093,000
463
10.00% 3,402,000 3,090,000 2,779,000 2,466,000 2,157,000 1,852,000 1,546,000
464
465
466
124
#
f
f
*
f
*
*
*
I
I
t
*
*
468
469 SENSITIVITY ANALYSIS: EFFECT ON AFTER-TAX NET PRESENT VALUE OF CHANGES INDENSITY (HOLDING
470
471
UNITS/ AFTER-TAX
472
ACRE
N'i
------ --------473
4
475
76
477
478
479
480
481
482
483
484
485
486
487
488
2.00
2.25
2.50
2.7!
3.00
3.25
3.50
3.75
4.00
4.25
4.50
4.75
5.00
5.25
5.50
($793,000)
(665,000)
(543,000)
(402,000)
(397,000)
(252,000)
(119,000)
32,000
37,000
189,000
329,000
483,000
488,000
644,000
787,000
5.75
345,00
949,000
6.O
6.25 1,107,000
6.50 1,252,000
6.75 1,413,000
7.100 !,116,300
7.25 1,577,000
7.50 1,722,000
7.75
,392,Z00
8.00 1,886,000
8.25 2,047,000
3.50 2,192,000
8.75 2,353,00
3.02,56,200
3.25 2,517,400
9.50 2,662,000
9.75 2,223,000
10.20 2,826,000
489
490
491
492
493
494
495
496
497
498
499
500
502
503
504
505
506
507
508
509mu
I
u
m
n
n
n n
m
n
u
I
*
f
f
f
4
f
f
f
4
+
4
4
*
4
*
I
*
*
m
n
a
125
e t
u
u
m
n
u n
m
a
Appendix F
2
3 AFFORDABLE HOUSING
ANALYSIS
28-Jul-89
4 (3D)TELLER DEAL WITH TAX-EXEMPT FINANCING 1 8.5%, WITH 41 TAXCREDITS
5 DAVID CARTER
6
7
126
119
120OPERATIN6 ASSUMPTIONS:
SHARP SUBSIDY/RESTRICTION ASSUMPTIONS:
121
==
=============
122 OPERATING EXPENSES PER UNIT
123LAUNDRY INCOME (NET) PER UNIT
124 RESERVE FOR REPLACEMENT PER UNIT PER YEAR
125
126FINANCING ASSUMPTIONS:
127
128MINIMUM DEVELOPER EQUITY CONTRIBUTION
129 (AS A I OF TOTAL DEVELOPMENT COST)
$4,000
1100
$275
28-Jul-88
SHARP FUNDING (YES OR NO)
LIMITED DIVIDEND DISTRIBUTION
(YES OR NO)
DIVIDEND DISTRIBUTION Z
NO
YES
10.001
$1,600,000
LAND COST
UNIT LAND COST
10.00%
f
f
f
#
$16,000
f
MINIMUM
130
131TAXASSUMPTIONS:
132
133TAXCREDIT 2
134
I AFFORDABLE UNITS
20.001
#
f
SITE SIZE INACRES (NET OF ROADS)
DENSITY (UNITS/ACRE)
TOTAL UNITS INDEVELOPMENT (CALC)
4.001
20.0
5.0
100
f
#
f
135
136HOLDING PERIOD AFTER COMPLETION
137
139 m u
m n u
m
f
10.0
m
u
n
m
u
n
127
u
e
1
UNIT LAND COST/DENSITY TOGGLE
(0=SOLVE FOR DENSITY, 1=SOLVE FOR DELAY)
e
u
n
m
mtmt
n
m
m u
n
n
m
f
t a
*
~
a ,,.,,,,,.,~,,,,,,,,.,,,,,.,,,n,,,,.,.,,..,n,*.........,.,.ein,***.*.iee.**i*i*i.e..,.......
28-Jul-88
10DEVELOPMENT PLAN:
RENTABLE
SD.FT.
15
16 UNITS
17 ----TWO
BEDROOM, LOW INCOME (A)
TWO
BEDROOM, LOW INCOME (B)
TWO
BEDROON, MARKET (A)
TWO
BEDROON, MARKET (3)
THREE BEDROOM, LOW INCOME (A)
THREE
BEDROOM,
LOUINCOME
(3)
THREE
BEDROOM,
MARKET
(A)
MARKET (B)
THREE
BEDROOM,
28
B OF
UNITS
1,000
1,100
1,000
1,100
1,100
1,300
1,100
1,300
TOTALS
'AVERAGE' LOW INCOME UNIT
'AVERAGE' MARKET UNIT
5,000
5,500
30,000
33,000
5,500
6,500
11,000
13,000
100
1,125
1,088
20
80
100
36
128
PROJECTED
TOTAL MONTHLY
RENT/
RENTABLE
UNIT
SG.FT.
$650
650
1,000
1,200
900
900
1,150
1,250
PROJECTED
ANNUAL PROJECTED
RENT/
1ST YEAR
UNIT RENT ROLL
$7,800
7,800
12,000
14,400
10,800
10,800
13,800
15,000
109,500
22,500
87,000
109,500
$39,000
39,000
360,000
432,000
54,000
54,000
138,000
150,000
$1,266,000
775
1,125
9,300
13,500
186,000
1,080,000
$1,266,000
I
I
37
DEVELOPMENT COST ASSUMPTIONS:
28-Jul-88
LINE
ITEM
COSTS
COST/
RENTABLE
SQ.FT.
48LAND ACQUISITION
49
so
51 'HARD COSTS':
$1,600,000
$14.61
53 RESIDENTIAL CONSTRUCTION COSTS
54 LAND DEVELOPMENT (SITE, SEWER, ETC.)
55
56
TOTAL HARD COSTS
57
58
59 'SOFT' COSTS:
60
61 ARCHITECTURAL & ENGINEERING
62 BOND PREMIUM (.004%)
63 PERMITS AND SURVEYS
64 CONSTRUCTION LOAN INTEREST65 OAS APPLICATION FEE
66 MORTGAGE APPLICATION FEE
67 INSPECTION FEE
68 LOAN POINTS
69 REAL ESTATE TAXES
70 INSURANCE
71 LEGAL FEES
72 TITLE & RECORDING EXPENSES
73 ACCOUNTING & COST CERTIFICATION
74 RENT-UP AND MARKETING
75 DEVELOPER'S FEE
76 DEVELOPER'S OVERHEAD
77 SOFT COST CONTINGENCY (5%)
5,932,500
500,000
----------
79
TOTAL
SOFT
COSTS
82 TOTAL
DEVELOPMENT
COSTS
(MHFA)
zOF
TOTAL
COSTS
$16,000
13.951
54.18
4.57
584
59,325
5,000
-------
51.73%
4.361
------
6,432,500
58.74
64,325
56.09%
177,975
25,730
150,000
551,185
0
16,421
41,053
168,809
25,000
100,000
100,000
15,000
15,000
50,000
1,573,735
393,434
31,649
1.63
0.23
1.37
5.03
0.00
0.15
0.37
1.54
0.23
0.91
0.91
0.14
0.14
0.46
14.37
3.59
0.29
1,780
257
1,500
5,512
0
164
411
1,688
250
1,000
1,000
150
150
500
15,737
3,934
316
1.55%
0.221
1.3 1%
4.81%
0.00%
0.14%
0.36%
1.47%
0.22%
0.87%
0.87%
0.13%
0.13%
0.44%
13.72%
3.43%
0.28%
3,434,991
31.37
34,350
29.95%
511,467,491
1104.73
$114,675
100.00%
33
84 TOTAL
CASH
DEVELOPMENT
COSTS
COST/
UNIT
19,500,322
87
129
88 ****************************************************************
28-Jul -88
DEVELOPMENT COST ASSUMPTIONS: ESTIMATED BREAKDOWN OF RESIDENTIAL CONSTRUCTION COSTS
LINE
ITEM
COSTS
COST/
RENTABLE
SQ.FT.
COST/
UNIT
I OF
TOTAL
'HARD'
COSTS
$200,000
1,000,000
1,400,000
700,000
1,300,000
1,000,000
50,000
282,500
$1.83
9.13
12.79
6.39
11.87
9.13
0.46
2.58
$2,000
10,000
14,000
7,000
13,000
10,000
500
2,825
3.371
16.861
23.60%
11.80%
21.91%
16.86%
0.84?
4.76%
$54.18
$5,9322,500
$59,325
100.00%
zzEEEE
ZEE
RESIDENTIAL CONSTRUCTION COSTS:
SITE PREPARATION AND IMPROVEMENTS
SUB6RADE
FRAMING
ENCLOSURE
INTERIOR FINISHINGS I FITTINGS
MECHANICAL/ELECTRICAL/PLUMBING
OTHER MISCELLANEOUS
CONTINGENCY 1 51
TOTAL RESIDENTIAL CONSTRUCTION COSTS
EEEEEEEEEEE=====m=
117
130
139 esasse
,,lse oeess e assesse
saagogsoa
0ssosggeis
10
141PINT6A ANALYSIS
I CASH (t1
(9IC0I
fr
...........
===x*.
142
*
..
20-Jul.
======..*T====-.=..
143
0t4 (06m
1
0T0 To: mmE1 mS
0456(03
6mN06 fACimt: su35 Si03H
04610PENSE
03NIN11
(00C
141
1411
6.01
5.00 i00s
0F
5.00
1E03
141
VE3
m
2
153
154
3
0116,000
----
----------
0p(1A IN
5EN
5
---- -
E
6
-
--
--
1i
7
YEA
gEM
8
Y
vEm
1E0
YA
9
A0 5
YA
it
10
YW
12
12
0205,465
9215,31
0226,034
0231,311
0249,253
0261,121
1,213,40
1,206,211
I,363,415
1,445,284
1,532,001
1,623,921
----------- ----------- ----- ------------------
1j
1,000,000
1,144,100
PAIKET WITS
VE A00 S
4A
4
--------
053
151POTENTIL(N(
S1:
152 to ICME 10001
tAI106
15
$213,547
1274,001
1,721,356
-----------
0302,914
0318,123
1,934,116
2,050,162
1,024,637
6334,021
0350,131 0
2,300,
2,173,172
--
155
1%
0T0
POEN1IAL KIWUIS
0,266,000
1,34O00 1,411,553
1,51,559
1,500,616
1,692,672 1,7111,2501,85,641
2,113,194
2,237,0902,368,26 2,507,201
1,1%,163
2,654,213
2,00,044
I1
153LESSVA
v0 51
159 PillS INC0( TIN LOiNN
160
161
162((fCti0 0335S03(1K0
163
164
LESS
3PERATIN16EMIUS
163LESSRIPLEE(70 RESERVE
166
167
168IT
ERAiI0K
63,300
61,005
70,920
10,00
(ET)
10,604
11,236
--- -----------------------------------------1,212,730
21,500
410,691
30,309
------- ---
6,315
363,61
012,700
34,134
61,063
12,625
13,382
14,105
- --------- - - -- - ---------
11,100
-------- --
94,282
105,651
110,854
111,414
16,395
17,10s
03,103
- - ----- - - - - - ...----
99,600
15,036
15,938
- -------.-- -- - - - -
1,33,61
1,43,445
0,522,716
1,611,921
1,706,301 1,016,3%
1,912,293
2,024,420
2,143,144
------------------------------------------------------------- ---------------------------------- -------I -------- ,-26--
1,233,615
372,500
391,125
21,500
20,875
---------- -----------
0IN
79,471
75,031
431,215
30,335
-----------
452,776
33,426
-- --
36,614
911,861
11,520
975,35
150,955
0,036,504
151,727
74,52?
751,020
31,234
743,708
10,54
1143,141
0
0
0204,254
475,415
35,01
----- -
-
499,16
36,053
. - - ---
187,053
1,101,40
223,105
1,170,342
135,139
%,515
727,053
132,0
125,360
20,122
---..--.-.-
21
2,401%3
2,260,154
2,542,100
2
524,145
550,352
517,870
606,763
637,001
66,119%
102,4
38,695
47,630
42,662
44,75
47,034
41,386
52,055
- -- ---------- ----------- ---------- -- -- - - - - - - - - - - - - - - - - -262,600
303,231
345,892
310,617
437,721
437,107
533,%25
1,243,555
1,321,311
1,403,009
1,491,516
1,584,711
0,633,621
l1, 641
161
10 LESSKIT
SERICE:
III
IIEIEST
172
T"-"
761,526
62,720
P3i(CIPAL
173
174
I15CASHftm
13f0Cit
1760
3i6m6
fUN 0PER0A0i0Ns
n6 im3tf KIICAEmE
i.1i ti
763,300
60,373
($19,554)
(02,179
95,607
131,441
0
0
3
0
0
105,201
$411,301
1331,0M
$261,154
0
107,265
717,505
114,669
0
0
61%,016
136,238
124,919
$409,051
0
1571,635
S
ImCIS
o
670,369
161,065
143,504
U59,332
152,464
655,021
639,96
192,
176,433
$851,361
1%,314
$
0
0
II7
78
663,754
FMK:
179NAOINII SI3POTLAY
(PER1NYA)
1,004,00
SimP fI3 S AUVANE0
KRUM3 KIF5 LfER CONTIBUTION
112CASNAVAILAKLE
IM 5IStiIUIlM 10 Ky.
0
1,00,000
1,0000
0
i30
III
063PEKNIT00E
CASH31tSItI3UTI3S To K6 .
104
Ki1
SiEviE
co(35E
050
(3ti1
fUmlm, if
£111
196
O0
00
0
$31,441
35,601
015,607
143,141
095,003
1.04
1.10
1.17
31,441
0.91
1,000,000
0
0
0
0
204,250
95,003
261,154
15,003
1.25
=it=
1.32
=T-
1.41
z-=
1,000,000
1,000,00
0
0
33,06m 411,301
095,003 015,003
0
0
571,1C5
055,003
49,051
15,043
1.51
1.41
1,000,000
1,000,000
0
.12
15,003
1.61
1,000,000
0
0
0
152,464
1,003
051,37
15,003
1.90
2.02
1.71
1,000,000
0
0
015,003
1,06,924
15,003
2.15
2.26
956,394
1,000,000
1,000,000
A
0
0
0
%t= =T.
1,000,000
0
0
1
0 0
0
*
*
00
-z
m
===
189
I0
Or MP
0 S00
103 flWI
ALYSIS
===.==.==
REPAYMENT:
191 .==
112
193
YW
-
194
195 SNAPPflmiS
a0vartE
00
1I7PAFi s ntow 5 EA0iMS
lI
OUISIIl6N ALG0l0E
III A3IM00 M IN ISTI TE PI0JCT CASm fLUi
200ClMAISE
S-016110003CASH OfL
201
220g
to
l1%INTERESTI
t
0
YEA
---.
0
so
0
0
0
0
0
0
0
0
0
0
YEW
0
40,131
VW
4
----
so
0
0
0
3
----
It
0
VW
2
0
-
0
0
to
0
4,13
151,314
0
0
0
0
101,246
331,535
0
0
0
174,151
574,620
23Jul90
YEAR
TEAR
6
----
---to
0
YEN
5
7
90
so
0
to
0
0
0
0
243,005
810,111
0
0
316,213
1,204,112
YEAR
vEm
via
...0
so
-
so
V
Y
2 1
I
- - .
YEN
11
10
9
....
3
----
---.
-
2
so
to
s
0
0
0
314,054
1,761,603
0
0
476,631
2,325,932
0
0
564,321
2,133,313
3
0
65?,461
3,739,157
0
-
0
0
0
156,364
3
1
4,601,140 5
203
204
205 ANALYSIS OF PROJECT DEBT SERVICE:
206 ================================
207
208
209
210
211 MORTGAGE PRINCIPAL
212 INTEREST RATE
213 MHFA ADMINISTRATIVE FEE
214 TERM
215 ANNUAL PAYMENT
28-Jul-88
$8,550,290
8.50z
0.50z
30
$832,254
10.171
216 ANNUAL
PAYMENT
CONSTANT
INTEREST
YEAR
BEG.
BAL.
PAYMENT
& FEES
$8,550,290
8,487,562
8,419,189
$832,254
$769,526
832,254
763,881
757,727
8,344,662
8,263,427
8,174,282
8,078,367
7,973,166
7,358,497
7,733,507
7,597,269
7,448,769
7,286,904
832,254
832,254
751,020
832, 254
254
832,
832,254
832,254
832,254
832, 254
832, 254
832, 254
743,708
735, 739
832,254
655,821
639,942
727,053
717,585
707,265
696, 016
683,754
670,389
AMORT'N
$62,728 $8,487,562
68,373 8,419,189
74,527 8,344,662
81,234 8,263,427
88,546 8,174,882
96,515
105,201
8,078,367
192,312
209,620
228,485
6,918,160
7,973,166
114,669 7,858,497
124,989 7,733,507
136, 238 7,597,269
148,500 7,448,769
161,865 7,286,904
176, 433 7,110,472
7,110,472
832,254
6,918,160
832,254
6,708,540
832, 254
622,634
603,769
6,480,055
832,254
583,205
249,049
6,231,006
832, 254
560,791
5,959,543
5,
663, 647
832, 254
832, 254
536,359
509, 728
5,341,122
4,989,568
4,606,376
4,188,695
832, 254
832, 254
832,
254
832, 254
480,701
449,061
414,574
376,983
271,463
295,895
322,526
351,553
283, 193
417, 680
455, 271
3,733,424
832, 254
336,008
496,246
3,237,178
332, 254
291,
346
2,696,270
832, 254
242,664
2,106,680
1,464,027
763,536
832, 254
832,254
189,601
131,762
68,718
540,908
589,590
642,653
700,492
763,536
832,254
253
132
END. BAL.
6,708,540
6,480,055
6,231,006
5,959,543
5,663,647
5,341,122
4,989,568
4,606,376
4,188,695
3,733,424
3,237,178
2,696, 270
2,106,680
1,464,027
763,536
0
s
i
254
i!E
IF TRY
Kirlits2 (Ltit
PtMM ANALYSIS
m..........
25125......
t ..... ISSN
....
. S
25?
259
21.01
2M EFECIViTARRATE
261
212
263
--
---
0 to
0
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-
-
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IARS
VIM
3
VIM
2
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215
27ILiESt
210 LISS
271 LSS
i rtii
I5302061
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310IFIU
211
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214 2AI K132121 1L11011112
27?
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TAI RIIIS
211INViSTMENT
271 (13T i6
0
4
1
61,731
N
SO
120%
245,453
N
N
5,121
NI
0
of
4231,401
0
215,453
5,121
2
04
5,121
5,121
5,621
6,3 66,
5,121
44,455
353,541
12,563
552,541
(1,040)
130,To
761,06
111,21
110,264
(51,212
121,1121
016,643
31,061
059,141
(
113,1041
(67,0242
(4
(
1
0
0
16,130
16,130
16,130
11,150
679,344
055,021
110,34
11,2841
55411547
215,453
245,453
5,621
5,121
3,154
449,455
245,453
5,11
5,121
117,7%
015,050
1131,254
5,&27
171.112 213,566
14,111
31,415
46,21
56,73"
6,130
16 v
130
00
o
KiriS (L2itity)
6,01
01,265
11,315
121,053
3,154
143,70
76,70
1
913513597
123,535
$1170,342
,3,504 25,14221,19,607
$95,4
215,453
21, 453
245,453
21, 453
455
15,453
151,721
("17,16
215,453
5,121
(111,1212 244,3101 25,242
14,514
0
1212,316
0
1,3 66,
0
N
0
163,70
(72,390
2M,455
5,121
(532,227)
(
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201
500
~S2222I20212S22221SS22S2SI2I
*,,,,*,g,,,,,
222
S252I222S2222S22
8
Or 02110102COINTIMIS5:
23 701030 ANAILYSIS
21
215
EUI
291 K910KORATEOFRETURNII
211
292
213
301
Ses
of
11,6"10 )
0
IT
N
i0
141,1$1
I
0
(02,104,000)
N
YiEA
1
12211
0
255
211 (043 2542S1213(
IIIF2(112 itS OPERATION2S
11511101111(11
211 CASH
2"6 30230212( (L2AM37TY11
I"NET SALES "WIS
302
COANH23.006
531
TTANIII-I
303
MI1N13043.2
30402111TA2NiT
25IITvES I
_mTU2SK2110:
INVESTMENT 11.51
231224
0
022,140
2
0
32,442
51,71
14,344
N
0203,313
2Ii
A 11 0
via0
(0
lilt
211
144,411
(24,5542
4
91,2F51
225,050
0
0(46,412
I
I
4
3
5
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T OI
S
lilR
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0
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t0
0
330,"' AP9 ,i 1
61,154
20,50
243,242
15,101
0
254,0612
132,2271
17,0.42
2i,24
5313
0
0
0
0
0
0
$0
Ii22,485
0215,110
100,022
0354,1
0404,213
1456,30
Y
1
lia ll
(
1
710
lio
IT
I
30
434,051
0
0
$7,120,014
0704,000
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t0
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512,135
0S
0
00
t
o0
a0
0
0
S
*444444444*44#*44441444414404*4444444*444#444444e4444444444*44414441n6444fl4441n44444;;e.e
28-Jul-88
ANALYSIS OF NET SALES PROCEEDS:
316
317 GROSS SALES PRI CE.
318
319 LESS COMMISSI ON1 3%
320 LESSMNFA 'APPPRECIATION PARTICIPATION'
321
322 NET SALES PRICE
323
324 LESS ADJUSTED BASIS:
325
COST BASIS
PLUS: APPLICATION OF RESERVE
326
327
LESS: DE1PRECIATION
STAMORTIZATION
LESS: COS
328
329
330
331
332 TAXABLE GAIN ON SALE
333
334 TAXLIABILITY
335
336
337
-----338
339
340
341GROSS SALES PRICCE*
342
343 LESS COMMISSIOIN1 3%
PRECIATION PARTICIPATION'
344 LESS MHFA 'APP
345
346 NET SALES PRICE
347
348 LESS TAXLIABILITY
N6 DEBT:
349 LESSOUTSTANDI
350
FIRST MORTGAAGELOAN
SHARP LOAN
351
PROJECT CASH FLOW
NON-DISTRRIBUTED
352 PLUS
353
354
PROCEE
EDS
355 NETSALES
356
INC3OE CAPITALIZED
* NET OPERRATING
257
358
359
S15,598,762
I
467,963
0
0.00%
15,130,799
9,893,756
345,892
2,954,526
56,270
7,228,852
7,901,947
$2,212,545
115,598,762
I
467,963
0
0.00%
15,130,799
2,212,545
RESERVE (WITH INTEREST)
7,597,269
0
11886,521
$7,207,506
----------9 9.3%
:134
IsaIe
,,IIoIeItesIesIesefeeIsstouess
==:==
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401 enannatuuttuuntennuttatunnununtunnunutut
402
403 BREAKEVEN TIME DELAY ANALYSIS:
28-Jul-88
404
405
406
407
408 BASELINE ("MARKET DEAL') AFTER-T
$0
409
410 PROFORMA TIME DELAY (INMONTHS)
0
411
412 AFTER-TAX NET PRESENT VALUE ('AT $709,000
413
414
415
TIMEPRESENT
416
MONTHS OF
DELAYED
BASELINE
VALUE OF
417
TIME DELAY
"ATNPV'
'ATNPV'
SUBSIDY
---------------418
419
420
so $709,000
$709,000
421
0
678,000
678,000
422
0
i48,
000
648,000
423
0
618,000
618,000
424
0
588,000
588,000
425
0
559,
000
559,000
426
0
530,000
530,000
427
0
502,000
502,000
428
0
474,000
474,00
429
0
446,000
446,000
430
0
419, 000
419,000
431
0
392,000
392,000
432
0
365,000
365,000
433
0
339, 000
339,000
434
0
313,000
313,000
435
0
287,000
287,000
436
0
262,000
262,000
437
0
237,000
237,000
438
0
213,000
213,000
439
0
189,000
189,000
440
0
165,000
165,000
441
0
141,000
141,000
442
0
118,000
118,000
443
0
95,000
95,000
444
0
72,000
72,000
445
446 Henannunutunnunnuttenunnutunuttununuutt
1 ir
447
448
449 SENSITIVITY ANALYSIS: EFFECTS ON AFTER-TAX NPV DUE TDCHANGES INREVENUE SROWTH AND UNIT LAND COST ASSURPTIONS
450 = ==========
28-Jul-88
451
UNI T L AND COS TS
452
+ATNPV
s0
$4,000
$8,000 $12,000
$16,000
$20,000
$24,000
453
0.00%
121,000
(144,000) (400,000) (657,000) (913,000) (1,169,000) (1,425,000)
454
1.00%
347,000
46,000
(210,000) (466,000) (722,000) (979,000) (1,235,000)
455
2.00%
629,000
317,000
13,000
(263,000) (520,000) (776,000) (1,032,000)
456
ANNUAL
3.00%
928,000
616,000
307,000
10,000
(276,000) (551,000) (815,000)
457
REVENUE
4.00% 1,247,000
935,000
624,000
320,000
25,000
(264,000) (546,000)
458
GROWTH
5.00% 1,586,000 1,273,000
961,000
655,000
355,000
59,000
(231,000)
459
FACTOR
6.00% 1,945,000 1,633,000 1,321,000 1,013,000
709,000
410,000
115,000
460 ("MARKET' UNITS)
7.00% 2,328,000 2,016,000 1,703,000 1,394,000 1,088,000
787,000
488,000
461
8.00% 2,734,000 2,422,000 2,110,000 1,798,000 1,492,000 1,188,000
888,000
462
9.00% 3,165,000 2,853,000 2,541,000 2,229,000 1,922,000 1,617,000 1,314,000
463
10.00% 3,624,000 3,311,000 2,999,000 2,687,000 2,379,000 2,073,000 1,767,000
464
465
466
137
.
,
,
,
,
,
,
,
,
,
,
,
SET
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000,199
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Appendix G
2
3 AFFORDABLE HOUSING ANALYSIS
28-Jul-88
#
*
4 (2)MARKET DEAL WITH 97 TAX CREDITS
5 DAVID CARTER
#
6
7 *Hetmettetteettuttteettetettett#nuunnunumuttunnumttitannunnutununntatttuntuunnuntun
139
119
SHARP SUBSIDY/RESTRICTION ASSUMPTIONS:
120OPERATING ASSUMPTIONS:
29-Jul-98
121
$4,000
SHARP FUNDING (YES OR NO)
122OPERATING EXPENSES PER UNIT
Y0
$100
LIMITED DIVIDEND DISTRIBUTION
YES 123LAUNDRY INCOME (NET) PER UNIT
$275
(YES OR NO)
124RESERVE FOR REPLACEMENT PER UNIT PER YEAR
DIVIDEND DISTRIBUTION Z
10.001
125
126 FINANCING ASSUMPTIONS:
LAND COST
127====================2
$1,600,000
10.001
UNIT LAND COST
128 MINIMUM DEVELOPER EGUITY CONTRIBUTION
$16,000
129 (AS A Z OF TOTAL DEVELOPMENT COST)
NINIMUN
Z AFFORDABLE
UNITS
130
20.001
131TAXASSUMPTIONS:
SITE SIZE INACRES (NET OF ROADS)
20.0
132 ======= Z
9.00%
5.0
DENSITY (UNITS/ACRE)
133TAX CREDIT I
TOTAL UNITS INDEVELOPMENT (CALC)
100
134
*
135
*
1
136 HOLDING PERIOD AFTER COMPLETION
10.0
UNIT LAND COST/DENSITY TOGGLE
*
(0=SOLVE FOR DENSITY, 1=SOLVE FOR DELAY)
137
**********************************************************************************************************
138
140
9
10DEVELOPMENT PLAN:
28-Jul-88
11 =================
12
13
14
15
16UNITS
11-------------------------19
19TWO BEDROOM, LOW INCOME (A)
20 TWO BEDROOM, LOW INCOME (B)
21TWO BEDROOM, MARKET (A)
22 TWO BEDROON, MARKET (8)
23 THREE BEDROOM, LOW INCOME (A)
24 THREE BEDROOM, LOW INCOME (B)
25THREE BEDROOM, MARKET (A)
26 THREE BEDROOM, MARKET (8)
RENTABLE
SQ.FT.
1,000
1,100
1,000
1,100
1,100
1,300
1,100
1,300
27
29
17,800
5
5
30
30
5
5
10
10
5,000
5,500
30,000
33,000
5,500
6,500
11,000
13,000
----
-------
----------
100
109,500
$1,266,000
20
30
22,500
87,000
TOTALS
30
31'AVERAGE' LOW
INCOME UNIT
32'AVERAGE' MARKET UNIT
33
I OF
UNITS
-----
PROJECTED PROJECTED
TOTAL
MONTHLY
ANNUAL PROJECTED
RENTABLE
RENT/
RENT/
1ST
YEAR
S9.FT.
UNIT
UNIT RENT ROLL
----------------------------------------------
1,125
.,os
----
34
100
35
36
141
$650
650
1,000
1,200
900
900
1,150
1,250
775
1,125
7,800
12,000
14,400
10,800
10,800
13,800
15,000
9,300
13,500
$39,000
39,000
360,000
432,000
54,000
54,000
138,000
150,000
186,000
1,080,000
-------
----------
109,500
$1,266,000
*
*
*
I
*
37
DEVELOPMENT
COST
ASSUMPTIONS:
28-Jul-88
LINE
COST/
ITEM RENTABLE COST/
COSTS SO.FT.
UNIT
48 LAND ACQUISITION
Z OF
TOTAL
COSTS
$1,600,000
$14.61
$16,000
13.83%
5,932,500
54.18
59,325
51.27%
500,000
4.57
5,000
4.321
6,432,500
58.74
64,325
55.591
49
50
51 'HARD COSTS":
RESIDENTIAL CONSTRUCTION COSTS
LAND DEVELOPMENT (SITE, SEWER, ETC.)
TOTAL HARD COSTS
59 'SOFT' COSTS:
ARCHITECTURAL & ENGINEERING
BOND PREMIUM (.0041)
PERMITS AND SURVEYS
CONSTRUCTION LOAM INTEREST
OAS APPLICATION FEE
MORTSAGE APPLICATION FEE
INSPECTION FEE
LOAN POINTS
REAL ESTATE TAXES
INSURANCE
LEGAL FEES
TITLE & RECORDING EXPENSES
ACCOUNTING & COST CERTIFICATION
RENT-UP AND MARKETING
DEVELOPER'S FEE
DEVELOPER'S OVERHEAD
SOFT COST CONTINGENCY (51)
TOTAL SOFT COSTS
82 TOTAL
DEVELOPMENT COSTS
(MHFA)
1.37
5.79
0.00
0.15
0.37
1.54
0.23
0.91
0.91
0.14
0.14
0.46
14.52
3.63
0.29
1,780
257
1,500
6,339
0
164
411
1,688
250
1,000
1,000
150
150
500
15,903
3,976
316
3,538,338
32.31
35,383
30.58%
$11,570,838
$105.67
$115,708
100.00?
83
84 TOTAL CASH DEVELOPMENT COSTS
1.63
177,975
25,730
150,
000
633,863
0
16,421
41,053
168,809
25,000
100,000
100,000
15,000
15,000
50,000
1,590,270
397,568
31,649
$9,583,000
87
142
0.23
1.4
0.22?
1.30%
5.481
0.00%
0.14%
0.35?
1.46?
0.22%
0.86?
0.86%
0.131
0.13%
0.43%
13.74%
3.44?
0.27%
98
*
89
28-Jul-88
90 DEVELOPMENT COST ASSUMPTIONS: ESTIMATED BREAKDOWN OF RESIDENTIAL CONSTRUCTION COSTS
*
92
93
94
t
95
96
97
98
99
100
101
102 RESIDENTIAL CONSTRUCTION COSTS:
LINE
ITEM
COSTS
COST/
RENTABLE
SG.FT.
-- -
- -- -
COST/
UNIT
1 OF
TOTAL
'HARD'
COSTS
-- -
- --
113
114
115
116
117
*
*
*
*
*
f
*
103
104
105
106
107
108
109
110
111
*
*
SITE PREPARATION AND IMPROVEMENTS
SUBGRADE
FRAMING
ENCLOSURE
INTERIOR FINISHINGS I FITTINGS
MECHANICAL/ELECTRICAL/PLUMBING
OTHER MISCELLANEOUS
CONTINGENCY 8 51
TOTAL RESIDENTIAL CONSTRUCTION COSTS
3.37
16.861
23.60%
11.901
21.911
16.861
0.841
4.761
*
f
$59,325
100.001
*
=======
======*
$200,000
1,000,000
1,400,000
700,000
1,300,000
1,000,000
50,000
282,500
$1.83
9.13
12.79
6.39
11.87
9.13
0.46
2.58
$2,000
10,000
14,000
7,000
13,000
10,000
500
2,825
$5,932,500
$54.18
===========
======
*
#
*
*
*
143
----16
140
141
142
w1mAANALYISOrCASH
Ft16
143
144
QMW
IIEIICIT} 1m6 13ERAIMS:
..... *== .......
============
RET
8mit rAcm:
145 WEW"E611N FKi: 91SIIEER M111
1411PENKM"INFACTOR
147
In
149
150
151 POf iL
6N13St
oills
1,00m
152 L1 EN
UNITS
153 NRAET
UNIT5
6.01
S
5.01
5.01
YEN
YEa
M
----
-
---
6PE
YA
TEA
2
--
1
YEN
1,060,000
1,144,000
1,201,0001,340,100 1,416,5531,501,616
ATIN6
YEA
YEA
1
6
----
6215,310
0205,065
1,24,297
YEAR
5
----
--
1,213,40
v
TEN
4
-
0PE
YEARS
YER
TEN
3
6195,300
155
RfOEMI
S
1s 10TAL
POTENTIAL
2
.. =..=..=**
1,33,475
YEA
YEA
----
1
... ---
$241,250
0226,014
2137,3M
1,623,121
1,445,204
1,532,001
2,113,104
1,005,6411,9%,163
1,692,672
1,161,250
1,569,559
2,237,0902,X8,286 2,507,201
01131
1
10
----
261,721
1,1:1,356
YEARS
11
1
.
-
----
..
0214,07 1
1,824,637
2M,547
1,934,116
111,154
118,414
302,174
0
6
1
2,050,162
2
2
125,360
1
2,654,213
2,610,044
151
156 LESSWACKV
15
1511
niUs16C6K
rim
-----
LAIM1
-----
------------------------
67,005
70,921
63,30
10,000 20,113
11,231 11,910
12,E25
----------------------
161
162 ErFECYIE
moss I60E9
163
PERA5I!6 EIPENSES
LESS
164
165 LESS REPIACEENT RESERVE
1,283,195
1,212,704
372,500
27,50
167
161 NEOERATYIU
I601E
112,704
163,695
13,38?
-----------
14,134
15,938
-----------
1,43,445
1,35,861
1,611,121
4",101
3,653
a
1;112,293
1,706,31 1,106,316
475,415
35,010
452,716
33,426
%,35
86,614
116,521
1,03,5041,101,446 1,170,342 1,243,555
99,643
105,651
94,202
11,963
20,122
21,321
22,601
---------------------
1,063
16,815 17,900
1,522,7M
431,215
3t,035
410,601
30,3i
391,125
28,95
27,540
175,315
911,961
71,411
14,185
15,31
75,001
2,024,420
550,352
524,145
30,695
40,630
262,6010
303,231
151,s55
117,053
223,905
1,613,621
1,584,111
1,403,119
1,411,566
1,321,311
2,260,654
2,143,144
517,870
42,662
345,892
1,7In,640
2
7
1
631,1016
5
47,034
4
60,763
44,115
437,72
w
390,U7
1,00,171
169
110
171
LESS KIT SERVICE:
INTEPESY
PRIMCIPAL
62,470
657,221
52,432
57,615
----------- ----------- ----------- ------13
114
175 CASN
r11 ( ICITI rS
P0ERATIONS
(1102,2021 (151,207)
02,101
$60,403 021,602
i16 ImitI nUinE3tIKiTC0mRAGE
(i.I at)
193,612
51,207
3
172
345,115
61,717
351,451
63,442
1196,501 255,441 3321,654
0
0
33,I1X
16,165
-
6401,409
64M,107
0
631,460
64,442
622,016
92,96
----------
69,111
1576,U4
6
1116,719
0
02,510
112,721
102,175
?11,271
123,631
112,392
----
$873,741
716,101
135,1994
765,306 7
1
141,59
S105,276
0
0
0
0
0
III
III SOECESo FSmmI:
1?9 1111160SIM OUTA0(PERflHAI
10
SNAPP
1u05
1,060,000
l,000,00
1
1,000,00 1,00,000 ,000,300
0
1
1
0
0
406,401
49,197
255,441 323,654
1186,501
10,493
6121,602
R CONTRIBTION
3EU110EKVFtE0
12CAsOAVAiLAiE Fo Sitiomilm10Ky.
V.
183PEIRII3I CASH6iitUiti0lS t03
0
0
0
0
60,413
121,602
06,506
0o
62,%6
0
0
3
2,%
30
1,000,000
1
1,000
,000000
0
AwMcE3
III
1,000,000
1
1,000,000
1,000,00
0
0
0
0
669,117
76,719
1713,741
2187,41
121,490
0241,410
1,000,000
0
0
51,64
3255,441
0
1,000,003
0
0
15,276
1287,4910
0211,410
0
ll
10
0
00
0
6286
0
104
SERVIEC1EEAGE
1
6530IT
.
3(IEW
1g
f=06, Ir ANY)
.===
0.14
6.11
1.00
1.13
1.07
1.20
1.29
.2-: =.=
....
....
1.44
1.36
1.53
1.63
1.13
====
==
==
2
1
=
z
=
2
101
I " ANALYSIS
o SHARPf12I6
191
112
193
21 htI -8
I REPAIENT:
YEAS
YEA
2
--
1
----
----
--
-
-
YEA
YEAS
4
. .
3
---
YA
YEAR
5
-..
YEAR
7
6
TEO
----
. .
- --
YEAS
1
6
YEA
10
YEAS
II
-----
----
----
YEAY
T
1
-
2
194
IISSNAPPIMIOS
AlVAEED
1% Is1ERSt
1 51
117PAYMENTS
TIOPOPERATIS
I"
GUISTAN1uI1
BALANCE
t0
00
of
0
0
0
1
0
i1m
0
0
*
1
19ANALM
ISTRIYUTE990JEC
CASH
0
0
0
203CL"uATIVE
m-1STIUTED
(ASHfL
201
,,g,,,,,gg,,00,gmugggegogmgg,,gsg..,ugggmuOOOAO.,,A0006,,,0UU0S0S0
oeoeeeos,.. mug
202 202
00 to
6
so
0
0
0
0
0
0
0
1
0
0
0
0
41,164
0
10
0
0
00
0
11,919
202,417
A
29, 114
3
0
0
32,327
41,164
60
00 s3
0
6
0
0
3
0
0
0
0
481,221
501,251
697, 186
160,063
361,560
0
00
0
0
4
650,174
0
0
0
1,033,101
0
0
1,514,330
t
0 0
6
0
0
0
0
0
2
2
203
204
205 ANALYSIS OF PROJECT DEBT SERVICE:
206
209
207
208
28-Jul-88
MORTGAGE PRINCIPAL
INTEREST RATE
MHFA ADMINISTRATIVE FEE
TERM
ANNUAL PAYMENT
ANNUAL PAYMENT CONSTANT
$8,624,700
10.001
0.00%
30
$914,902
10.17%
YEAR
8E6.
BAL.
PAYMENT
INTEREST
& FEES
AMORT'N
58,624,700
8,572,268
8,514,594
8,451,151
$914,902
5862,470
$52,432 18,572,268
914,902
914,902
914,902
914,902
914,902
914,902
857,227
851,459
845,115
8,381,365
8,304,599
8,220,158
8,127,272
8,025,097
7,912, 705
7,789,074
7,653,080
7,503, 486
7,338,933
7,157,924
6,958,815
6,739,795
6,498,873
6,233,858
5,942,342
5,621,675
5,268,941
4,880,933
4,454,125
3,984,635
3,468,197
2,900, 115
2,275,225
1,587,846
831,729
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
253
145
838,136
830,460
822,016
812,727
802,510
791,271
778,907
765,308
750,349
733,893
715,792
695,882
673,979
649,887
623,386
594,234
562,167
526,894
488,093
445,412
398,464
346,820
290,012
227,523
158,785
83,173
END.
BAL.
57,675
63,442
69,787
76,765
8,514,594
84,442
8,220, 158
8,127,272
92,886
102,175
112, 392
123,631
135,994
149,594
164,553
181,008
199,109
219,020
240,922
265,014
291,516
320,667
352,734
388,008
426,808
469,489
516,438
568,032
624,890
687,379
756,117
831,729
8,451,151
8,381,365
8,304,599
8,025,097
7,912,705
7,789,074
7,653,080
7,503,486
7,338,933
7,157,924
6,958,815
6,739,795
6,498,873
6,233,858
5,942,342
5,621,675
5,268,941
4,880,933
4,454,125
3,984,635
3,468,197
2,900,115
2,275,225
1,587,846
831,729
(0)
a
06
*
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0
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371
372
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11,10
16
4,312,3
4,312,3V
6
3
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2
----
610 0,316
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1
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3
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1112,202
351,207
0
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13,615
177,11
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3
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3
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4
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1
1,101,401
0
0
0
0
0
---------0
0
0
0
---------0
0
----------
FEAR
YEN7A
7E
6
----
0
0
YEH
7
----
H
----
0
9
----
to 0 N
1,321,311
0
0
----------
0
0
----------
0
----------
331
10TAL SMES Or CASH
31, 4,312,353 914,102 1914,102 $117,1
to
601,000 14,312,35
6175,395
11,036,504 1,:c!,408 31,170,34231,243,555 $1,325,427
116,91,108
to
=======.===2====
====
-=is=========
====z======
t=======
====== ==========
==========
==========
======zz~
312 3==
33
234USES
I CASH:
35
$3
0
to
0
s3
to3
so
so
33
ACNSfTIM IF LUIM/PHIE
LMV 64,033
T
of,
0
s0o
0
0
0
0
0
0
00
PAR3
0
0 0
337 KY(L31PEN V IMWROUEENIS/LAll
4,372,350 4,3-2,354
31 I3iEHOSII (EES:WA MM6AGE
345,115 13,t1
830,460
322,016
12,727
102,510
791,271
0
0
327,227
357,459
0
331 AIfIIOAIIS:
MA376646E
61,737
76,765
34,442
92,81 102,175 112,312 7,912,705
0
52,432
63,442
0
39" WAREQUIRED
KT SERICERESERVE
0 0
0
0
0
0
0
0
0
0
391
3EPA1MNI
O S2W3P FUMIN6
0
0
0
0
0
a
00
---- 312 TAR
LIAHIlIfI 1 SALE
0
0
0
0
0 2,197,077
0
393
'lINtUE BIVIKOr 3ISINItimilS
60,413
121,602
186,5%
255,441
237,490
2,%0
217,410
5,810,13 0
394 ini-H17nwitiIE
iniJECT CASHim tStiE
0
0
0
0
41,164
123,435 217,117
---------------------------------------------------------------- ---------------------------------------------3%
I, 34,312,350 M9L4,102 3914,9"2 1917,16
to
s0
397
T01AL USES Or CASH
to
100,000 94,312,353
975,395
37,41,504 31,101,401 37,170,342 11,243,555 61,325,427
16,929,10
*====== T===*= .
====.=
**2=*==
*..====
========
-c ====..===
======.=**
.... i =========
===.======
===
==
-- %-===.
=====
=...====*:
39=
3"9
s*S**a**s*g*a*355501515
055mos
ma.,.,0505m,.,,.g,.u.s,,,,,,ssumn.,ggm,,ge.,.,.
.
goones,,,
430 011119411111eosose le sIo
s
oofe
Se 1S oSeSSSeSe
0
3-
862,470
57,675
0
0
o
0
tI3
0
0
0
0
1
0
0
0
0
0
1,403,1"
0
0
1I*
--
to R
3
0
0
4
3n
0
0
YEW
If
----
0
0
0
1,170,342
1,243,555
0
0
4,116
16,420
0
0 15,130,791
0
0
0
370,000
---------- ----------
YEARS
YEWA
10
----
YEN
T=:======
----------
---------
401
28-Jul-88
403 BREAKEVEN TIME DELAY ANALYSIS:
404 =========z=======
405
406
407
408 BASELINE ('MARKET DEAL') AFTER-T
so
409
410 PROFORMA TIME DELAY (INMONTHS)
0
411
412 AFTER-TAX NET PRESENT VALUE ("AT $558,000
!CNTHS
OF
TIME DELAY
0
1
2
3
4
5
6
a
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
TIMEDELAYED
'ATNPV"
$559,000
529,000
501,000
473, 000
445,000
418,000
391,000
364,000
338,000
312,000
287,000
261,000
237,000
212,000
188,000
164,000
140,000
117,000
94,000
72,000
49,000
27,000
6,000
(16,000)
(37,4000)
BASELINE
'ATNPV"
PRESENT
VALUE OF
SUBSIDY
$558,000
529,000
501,000
473,000
445, 000
418,000
391,000
364,000
338,000
312,000
297,000
261,000
237,000
212,000
188,000
164,000
140,000
117,000
94,000
72,000
49,000
27,000
6,000
(16,000)
(37,000)
446
149
447
448
449 SENSITIVITY ANALYSIS: EFFECTS ON AFTER-TAX NPV DUE TOCHANGES INREVENUE GROWTH AND UNIT LAND COST ASSUMPTIONS
450
28-Jul-88
UNI T L AND COSTS
$0
$4,000
+ATNPV
$8,000
S16,000
$12,000
$24,000
$20,000
(54,000) (318,000) (582,000) (846,000)
0.00% 210,000
(1,110,000) (1,374,000)
136,000
1.00% 400,000
(128,000) (392,000) (656,000) (920,000) (1,184,000)
339,000
75,000
2.00% 603,000
(189,000) (453,000) (717,000) (981,000)
ANNUAL
556,000
3.00% 820,000
292,000
(236,000) (500,000) (764,000)
28,000
REVENUE
4.00% 1,092,000
803,000
526,000
259,000
(5,000) (269,000) (533,000)
GROWTH
5.00% 1,409,000 1,107,000
814,000
24
49,000
528,000
(22,000) (287,000)
FACTOR
6.00% 1,756,000 1,447,000 1,144,000
848,000
5!
58,000 272,000
(7,000)
7.00% 2,130,000 1,817,000
("MARKET' UNITS)
,5308,000 1,204,000
90
06,000
611,000
323,000
8.00% 2,533,000 2,213,000 1,901,000 1,592,000 1,2888,000
987,000
692,000
9.00% 2,960,000 2,640,000 2,323,000 2,011,000 1,70
01,000 1,397,000 1,094,000
10.00% 3,416,000 3,094,000 2,774,000 2,459,000 2,1447,000 1,836,000 1,533,000
464
465
466
150
467
468
469 SENSITIVITY ANALYSIS:
470 =
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
EFFECT ON AFTER-TAX NET PRESENT VALUE OF CHANGES IN DENSITY (HOLDING
UNITS/
ACRE
------
AFTER-TAX
NPV
---------
2.00
2.25
2.50
2.75
3.00
3.25
3.50
3.75
4.00
4.25
4.50
4.75
5.00
5.25
5.50
5.75
6.00
6.25
6.50
6.75
7.00
7.25
7.50
7.75
8.00
8.25
8.50
8.75
9.00
9.25
9.50
9.75
10.00
(673,000)
(575,000)
(484,000)
(383,000)
(281,000)
(178,000)
(81,000)
32,000
128,000
241,000
347,000
466,000
558,000
677,000
788,000
912,000
1,0c0,V/)0
1,124,000
1,237,000
1,363,000
1,449,000
1,577,000
1,692,000
1,821,000
1,905,000
2,033,000
2,149,000
2,279,000
2,361,000
2,492,000
2,610,000
2,742,000
2,823,000
I
-
f
f
#
#
f
#
#
f
f
509m
151
Appendix H
2
3 AFFORDABLE HOUSING ANALYSIS
4 (1)MARKET DEAL
5 DAVID CARTER
6
7
28-Jul-88
*
152
119
*
SHARP SUBSIDY/RESTRICTION ASSUMPTIONS:
120OPERATING ASSUMPTIONS:
=*
121===============
122 OPERATING EXPENSES PER UNIT
123LAUNDRY INCOME (NET) PER UNIT
124RESERVE FOR REPLACEMENT PER UNIT PER YEAR
125
126FINANCING ASSUMPTIONS:
127 =
=
=
28-Jul-8
$4,000
$100
$275
SHARP FUNDING (YES OR NO)
LIMITED DIVIDEND DISTRIBUTION
(YES OR NO)
DIVIDEND DISTRIBUTION Z
*
*
10.00%
0.00%
ZAFFORDABLE UNITS
10.0
20.001
SITE SIZE INACRES (NET OF ROADS)
DENSITY (UNITS/ACRE)
TOTAL UNITS INDEVELOPMENT
(CALC)
UNIT LAND COST/DENSITY TOGGLE
(0=SOLVE FOR DENSITY, 1=SOLVE FOR DELAY)
138
153
#
$16,000
UNIT LAND COST
MININUM
134
135
136HOLDING PERIOD AFTER COMPLETION
137
100.00%
$1,600,000
COST
=LAND
128MINIMUM DEVELOPER EQUITY CONTRIBUTION
129 (AS A I OFTOTAL DEVELOPMENT COST)
130
131TAXASSUMPTIONS:
132
133 TAX CREDIT 1
*
*
*
NO
No
*
20.0
5.0
100
I
*
*
9
10 DEVELOPMENT PLAN:
28-Jul-89
12
13
PROJECTED
PROJECTED
*
PROJECTED
TOTAL MONTHLYANNUAL
YEAR
RENTABLE I OF RENTABLE RENT/ RENT/ 1ST
UNITS
SQ.FT.
UNIT
UNIT RENT
ROLL
SO.FT.
------------------------ --------------------
14
15
16UNITS
17 ----1o
19 TWO BEDROOM, LOW INCOME (A)
20 TWO BEDROOM, LOW INCOME (B)
21 TWO BEDROOM, MARKET (A)
22 TWO BEDROOM, MARKET (8)
23 THREE BEDROOM, LOW INCOME (A)
24 THREE BEDROOM, LOW INCOME (8)
25 THREE BEDROOM, MARKET (A)
26 THREE BEDROOM, MARKET (8)
27
28
TOTALS
*
I
1,000
1,100
1,000
1,100
1,100
1,300
1,100
1,300
5
5
30
30
5
5
10
10
---100
5,000
$650
57,800
5,500
650
1,000
1,200
900
900
1,150
1,250
7,800
12,000
14,400
10,800
10,800
13,800
15,000
30,000
33,000
5,500
6,500
11,000
13,000
------109,500
139,000
39,000
360,000
432,000
54,000
54,000
138,000
150,000
----------
*
*
$1,266,000
*
29
30
31 'AVERAGE' LOW INCOME UNIT
32 'AVERAGE' MARKET JNIT
t
*
1,125
-,d88
20
90
----
33
100
34
35
36
22,500
87,000
775
1,125
9,300
13,500
186,000
1,080,000
-------
----------
*
109,500
$1,266,000
*
*
154
37
38
39 DEVELOPMENT COST ASSUMPTIONS:
40 =================
28-Jul-88
LINE
ITEM
48 LAND ACOUISITION
49
50
51'HARD COSTS':
RESIDENTIAL CONSTRUCTION COSTS
LAND DEVELOPMENT (SITE, SEVER, ETC.)
TOTAL HARD COSTS
58
59 'SOFT' COSTS:
60
61 ARCHITECTURAL & ENGINEERING
62 BOND PREMIUM (.0041)
63 PERMITS AND SURVEYS
64 CONSTRUCTION LOAN INTEREST
65 OAS APPLICATION FEE
66 MORTGAGE APPLICATION FEE
67 INSPECTION FEE
68 LOAN POINTS
69 REAL ESTATE TAXES
70 INSURANCE
71 LE6AL FEES
72
73
74
75
76
77
TITLE & RECORDING EXPENSES
ACCOUNTING I COST CERTIFICATION
RENT-UP AND MARKETING
DEVELOPER'S FEE
DEVELOPER'S OVERHEAD
SOFT COST CONTINGENCY (51)
TOTAL SOFT COSTS
92 TOTAL
DEVELOPnENT
COSTS
(MHFA)
85
TOTAL
CASH
DEVELOPMENT
COSTS
.
I OF
COST/ TOTAL
COSTS
So.FT.
$1,600,000
$14.61
116,000
13.83?
5,932,500
54.18
59,325
51.27?
500,000
4.57
5,000
4.321
6,432,500
58.74
64,325
55.59?
177,975
1.63
0.23
1.37
5.79
0.00
1,780
25,730
150,000
633,863
0
16,421
41,053
168,809
UNIT
257
COSTS
1.54%
0.22%
1,500
1.30%
6,339
0
164
411
1,688
5.481
0.00%
0.14%
0.35%
1.46?
0.22?
0.86?
250
1,000
1,000
150
150
500
15,903
3,976
316
0.86%
0.13?
0.13%
0.43%
13.74%
31,649
0.15
0.37
1.54
0.23
0.91
0.91
0.14
0.14
0.46
14.52
3.63
0.29
3,538,338
32.31
35,383
30.58?
$105.67
$115,708
100.00?
25,000
100,000
100,000
15,000
15,000
50,000
1,590,270
397,568
S11,570,838 ,
83
84
COST/
RENTABLE
$9,583,000
========
87
155
3.44%
0.27?
88 *+*******+ttt****+t*+*******+t**+t++****************************
89
90 DEVELOPMENT COST ASSUMPTIONS: ESTIMATED BREAKDOWN OF RESIDENTIAL CONSTRUCTION COSTS
28-Jul-88
91
92
93
%OF
LINE
ITEM
COSTS
COST/
RENTABLE
SG.FT.
COST/
UNIT
TOTAL
'HARD'
COSTS
RESIDENTIAL CONSTRUCTION COSTS:
SITE PREPARATION AND IMPROVEMENTS
SU8GRADE
FRAMING
ENCLOSURE
INTERIOR FINISHINGS I FITTIINGS
MECHANICAL/ELECTRICAL/PLUMBING
OTHER MISCELLANEOUS
CONTINGENCY 1 51
TOTAL RESIDENTIAL CONSTRUCTION COSTS
$200,000
1,000,000
1,400,000
700,000
1,300,000
1,000,000
50,000
282,500
$5,932,5o
117
156
$1.83
9.13
12.79
6.39
11.87
$2,000
10,000
14,000
7,000
13,000
3.37%
16.86%
23.60
11.801
21.91%
9.13
0.46
2.58
10,000
16.86Z
500
2,825
0.84%
4.76Z
$54.18
$59,325
:00.00z
s SSOISO@2SOJSlSeOU11
Se bOOSabseOs#eOsgOs000eSe
lSIIIOOesseIsUses
0U@0@esse
139111a108a1091aoaaoaaaaaaoaaaaaaaaoaooaaaaaaaaaoaaaaaaaslae
oouoeoososmoOsosslss0s0e0000ss0sse00010sOS0egseegesse0eOseeste0eessessusegessisue,04sisn,0*000000600s@se
140
141 PEWIMN MIALSISOFCASlI
142 .....*....*.=..... e
23-si -U5
WEATIM:
(KrICIOI 0I
=...=..==**........
143
144 31fm
m0n1 0
FACEO
145 REVENUE
03M
N FACTO:
1m EIPEim 6060 FATOR
141
148
141
om
t wits
SU151110E1 UITS
6.01
5.01
1
5.0
P
IA
T
1106
I0
I01A6 IP VA
WE
15
131 POENIt
311AEW S:
152
IN ICMEWITS
153 60KET 0ITS
155
POTENTIAL
3VE
1% OTAL
157
151
151 LESSVCANCY0
159
PLUS
IO01 FIM[IMRT IN
160
1,266,000
)
1,212,100
1,501,616
1,711,250
1,682,0,2
1,511,559
1,911, 163
1,115,41
2,
1I,184
2,654,213
2,368,20
2,23?,090 2,010,044
2,507,201
12
11,102
111,414
132,115
140,502
111,154
99,306
105,651
14,22
3,063
04,134
79,413
15,01
70,921
67,005
22,609
16,01
17,00
15,938
14,185
15,036
21,329
13,:2
01,110
12,625
11,23
10,600
10,000
------ ----- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ----------- ---- ------- --------
63,300
161
13(3
062Ef(tii0 60105GOSS
1,416,553
1,340,100
W
0
Y
11 1
0360,2670 6274,107
0350,731
0
$201,547
0302,974
0241,250
0261,121
226,04
023,36
0215,3111
2,44,776
2,303,53
1,934,116 2
1,624,6317
1,721,356
1,532,001
1,6123,121
1,445,204
1,296,291
1,363,475
^
----------- e----------- ----------- -------------------------------------------------------------------
0195,300
os5,065
6186,0H
1,213,401
1,010,000
1,144,900
----------- ----------- ----------
154
6
5
S
A0
WT
10
----
----
----
YEAR WE
1
YEAR
EM
.1 05
VM TIM
714
tEN
YEN
4
3
2
I
----
----
----
----
0
TF6
WE
W
1,3'M,91
1,203,6"
1,431,445
1,611,921
1,522,716
1,106,3%
1,706,311
2,542,106
2,024,420
1,112,293
2,612,150
2,143,144
2,401,163
2,266,054
163
EXPENSES
164 LESS OPERAitIN
163lESS 600tKflFFIORESERVE
731,525
6
507,110
606,763
550,352
475,415
41,136702,4014524,145
431,215
452,776
391,125
410,61
372,500
44, 95
51,655 47,03454,440 41,316
42,662
40,630
36,53
31,615
33,426
35,010
39,311
31,835
27,500
28,975
-- - - -- - - - -------- ----------- ---- ---------------- . . . ---------------------- ----------- ------513,410
431,721
417,107
310,67
345,"92
262,600
303,231
223,105
533,12
050155
117,052
K,614
110,521
21,500
6,313
1,613,6
1,594,71
1,411,56
1,321,311I,00,1710,403,361
1,170,342
0,243,555
1,101,400
1,7n,646
975,395
1,036,504
117,161
002,700
363,61
166
161
163 NET
1PERATIN6
INCOME
161
170
171
102
ESS K91 SERVICE:
INIERESI
POIlCIPAL
62,470
52,432
50,675
69,181
63,442
06,765
157,227
92,306
102,175
34,442
131,136
845,005
135,994
151,451
149,594
112,392123,631
330,460
733,813
I61,00
164,553
174
175CAi
FL i
filicit rPw PERATIOwS
11.1 il
113,612
076Tits0 Ki011 FoNiEC3 AG6E
III
070 SIES OF03103:
SHARP
0UTLAY MPER
179 MAIiM
0
10 SNA
P TURNSARCE
0
E0 C10I3C
3 1106
060 P19UI69KVEL
0
032CAS1AVAtAItt FOR11S1611tt1N01O
REV.
3ISTM 1 S TOKV.
0
363PE6NITE(CASK
(1112,202
1
51,207
lA)
0
0
0
SERVICE CtE0A6E (1103
1g6
01m31,
2,%
00
104
185 3M3
0
1,000,0
..
=..
.
1196,50t
0
0
0255,441
0
9U,1617
1165,276 0006,401
6073,0323,654
141
0
0
0576,614
066
I,00,0
0
0
0.31
i0 Am
....
1121,602
0
0
10,413
0
0
1,000,000
3,000,000
1
1,%0,000 1,000,000
0,000,000
1,00,00 00,00 1,000,000
1,000, W0 1,000,000
0 0
0 0
0
S
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
768,719
'?
SI,64
661,611
328,654
406,409
40, 15,206
120,602
116,506
251,441
60,413
13,747
0165,206
56,614
661,111
0161,119
1320,654
0006,409
3410,907
6121,602
6186,506
1255,441
02,%0
060,493
I,000,000
0
02,%0
0
(051,207)
0
1
011,2F 7
802,510
602,121
322,016
715,712
119,101
0
0
873,747
1.00
0.14
1.13
1.07
....
....
.:
0.1%
1.36
1.21
.20
=
2.00
un
==
ne
1.53
1.44
1
1.63
=
=:
T0:T
019
O0r
AtYSIS
I10
III
112
113
28Jul -90
6P" 03086 0 otP0A0110:
V=====F==
=
=
1
----
----
----
-- -
3
2
- -
- -
VEM
YEAR
=W
- -
4
- -
- ---
VIER
6
5
---
--
0
to
0
6
0
to
$0
1
65 S1M P FUOS A3 VAtE
00
0
0
1
I
0
116 INTEST 1 51
0
0
0
0
0
0
0
197 PA 6 TK6Is OPIIDRATIONS
0 0
0
0
0
0
3
0
0
IAKE0
1 I0S0110IU6inr
0 0
0
0
It
1
0
1
4
0
flIM
PROJECT
CASil
I"9ANNlUAL
NON
BIST119UTID
0
0
0
0
0
1
1
0 .
0
FLOW
200(timAIAIIE 11111-11SitTEDCASN
201
oaaaoaaaaaaauaaoa
iiaaas000saaaO2oaaOsaasaaoasaaeaoaoaaoaoooa,,aeaa,,,,aeoeaa,,aoasa,,,,aoa,,,,aaeaea,,a,
202 ,aaa
aea,,a,0sseaaaaaaaaaeabelse
0,,,,gi,01,,,,,,,,0,0,,,,lgsl,000,,t00000100000100e0000s0g
1
350
0o
0 0
0
to
0
a
0
0
0
00
0
0
0
0
0
a
0
00
S
0
0
0
3
0
1111
03
0
0 0
V
T
V
T
VEM
10
YEN
YEARe YEA
YEN
YEAR
714
----
1
#
0
203
28-Jul -88
ANALYSIS OF PROJECT DEBT SERVICE:
$8,624,700
10.00%
0.00%
30
$914,902
10.17%
MORTSAGE PRINCIPAL
INTEREST RATE
MHFA ADMINISTRATIVE FEE
TERM
ANNUAL PAYMENT
ANNUAL PAYMENT CONSTANT
YEAR
BEG. BAL.
PAYMENT
$8,624,700
$914, 902
8,572,268
3,514,594
8,451,151
8,381,365
8,304,599
8,220,158
8,127,272
8,025,097
7,912,705
7,789,074
7,653,080
7,503,486
7,338,933
7,157,924
6,958,815
6,739,795
6,498,973
6,233,858
5,942,342
5,621,675
5,268,941
4,880,933
4,454,12.5
3,984, 635
3,468,197
2,900, US
2,275,225
1,587, 946
831,729
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,302
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
914,902
3!4,902
914, 902
314,302
914,902
914,902
914,902
914,902
914, ?02
914,902
253
158
INTEREST
& FEES
AMORT'N
$862,470
857,227
951, 459
845,115
838,136
830,460
822,016
812,727
802,510
791,271
778,907
765,308
750,349
733,893
715,792
695,882
673,979
649,887
623,386
594,234
562,167
526,894
488,093
445,412
398,464
346,820
290,012
227,523
53,785
83,173
$52,432 $8,572,268
57,675 8,514,594
63,442 8, 451,151
69,787 8,381,365
76,765 8,304,599
84,442 8,220,158
92,886 8,127,272
102,175 8,025,097
112,392 7,912,705
123,631 7,789,074
135,994 7,653,080
149,594 7,503,486
164,553 7,338,933
181,008 7,157,924
199,109 6,958,815
211,020
6,739,795
240,922 6,498,873
265,014 6,233,858
291,516 5,942,342
320,667 5,621,675
352, 734 5,268,941
388,008 4,980,933
426,808 4,454,125
469,489 3,984,635
516,438 3,468,197
568,082 2,900,115
624,890 2,275,225
687,379 1,587,846
756, !17
831,729
(0)
831,729
END. BA..
.Se,eInoem-- eesIIII
ISInI
feet cofese fes. e.poole
9 s Sem
SesssssseS
e Nigte l I tootseDolts#$eIIeg,.e
ss,.sesu
......
,,IIfI
255
251P6350f00
AlA15s5
11 100
(L103it
K11iiS
tiES:
257 =-.=-"''=====-un=
258
2519
260ETTECiIW1MRA0 81
20.1
262
261
264
265
C
INCOM
266 OETOPERAIlm
261
119E
213 PLUS
KPLACEINIFI3
1EES
269 LESS 3MRSAG1E INIEREST
270 LESS K3PEC1a0110
271
LESSAM110I3A3IO:W310A INI TEE
273
0MAKE
274 I0
:-CMUST
M3III
fill
4
----
YA 1M
WM
5
2 6
----- -
WM
YEW
4 I
- -- ----
63,695
012,70
0
t0
27,533
0312,410
213,601
0
5,621
1
0
0
0
2M
3
INE
KIIT (tIAN3Ii)
0
20,315
0 30,311
345,115
151,451
157,221
0
0
2M,609 0 213,60
21,609
0
5,621
5,627
(326,506) 120,3 0 (201,516)
5,104
11,422 0 15,213
0
0
1EN
T4M
0
YEW
--
1
. ..
--
0
0
80,943
(507)
1A
METIS IL
lI
I
11,422
t0
00
75,2"
154,104
se
44,157
39,615
0
00
0
(322,664)
115071
020,204
2",609
5,1271
5,621
91,411,581
01,403,111
47,034
42,662
40,630 41, m31
765,300
750,349
2",609
5,1271
5,121 5,627 5,627
0
0
($71,455)
(6%,2M0)
S
(1261,906)
(11,212)
IS151,411)
230
24
26-Jet -I
IT0(Ar(11A1CASH(1005:
An
205PROF3OMA131.51
21
21M
239
17.51
V RETUN0 EWUllTINES111
210 lMITS RATE
211
292
293
---2"4
215
ENT11,60,000)
1
2% CANi1INIFST
OPERAIIIIS
Tlm
297 CASRISI0LI1iON(KFcI)
0
IA KRIT ILIAILITY)
213
0
299N SALESPROIEtS
300
2-CgmSIRtJti(DN 2 I I
TINE YET
3
0
E
VE
S I
EI
1
NI
V E A
YEA 110
1E N
4
9
Nv
I
S
YEN
At
2 5
NE
E S I
00
0
so so 6641,700
60,413
(51,2071 0 2,%0
39,194
15,290 58,104
0
0
0
16
------------------ -4
---0,-----24,003
-
so
121,602
20,284
00
(102,202)
0
3
0
0
0
00
I
I A It S
YEN
YEN
YEN
1
10
13
TEM
11
14
1512
----
....
91,422
-
00
30
30
So
so
4u,173
401,401
328,(,4
136,501 255,441
13,292)
122,664) 146,280) (71,455)
(507)
5,144,649
0
0
0
0
-24
, -0 -,
4
,-1- ---- 1
2
... ....
,--- ----
141,700
1610,710)
124,03
61,064
$100,287
0141,86
-0
0
0
0
0
to
to
-0
0
301
(13,600,000)
ArER A CASHTLOUS
302TOTAL
303
P SENT VALUE
304ArIFI-TAI I
RATE O RETURN
303 AfTER-A1 IT1ERNAL
306
307
DOfeleesesse.e
141110110 ofs
IIIsofIeIItoIIII I IIIts feeSt
300 of0
N
I
7
6
|
YEN
TEN
1186,000
0232,777
1282,373
0334,9'55
65,535,343
t0
so
17.51
sot.of googoltom
Iate90110
es1ee
ee
t
'e
e
.
.
.
.
.
.
..
1
I
0
0
11,504,711
I
512,2091
678,422
453,231 351,043
255,195
165,281
(11,1561
(126,11m
4M,212)
(11,455)(151,411)
(46,20)
(22,164)
0
139,794
15
11,321,311
11,243,555
11,170,342
270
27919TTAL
14
I
-
36,153
35,010
902,510 11,271
812,727
213,10
213,109
5,627
5,627
33,426
31,835
322,011
030,460
13,11
20,609
21,101
29,101
5,627
5,621
A
YEA
4EAR
At
1 t2
0
s1,101,400
1,309
172,443)
(142,122)
3
0
20,204
31,794
0
0
0
YEA
7
--
215
271I1EsI1NN TAICKIIIIS
3
YEN
1175,395 1,026,504
0917,131
I t AIS
NVES IIEN
YE A113 S
F-1 ITEIII
3
C
(S10
310
311 ANALYSIS OF NET SALES PROCEEDS:
312 =
=
=
=
*
28-Jul-88
=
313
314
315
316
317 GROSS SALES PRICE#
318
319
LESS COMMISSION 1 3%
320
LESS MHFA
'APPRE CIATION PARTICIPATION' I
115,598,762
467,963
0
0.001
321
322 NET SALES PRICE
323
324 LESS ADJUSTED BASIS:
325
COST BASIS
CATION OF RESERVE
326
PLUS: APPLI
327
LESS: DEPRE CIATION
AMORTIZATION
328
LESS: COST
329
15,130,799
9,980,568
345,892
2,986,094
56,270
330
331
7,284,096
332 TAXABLE GAIN ON SALE
333
334 TAXLIABILITY
7,846,703
$2,197,077
335
336
337
--------338
339
340
341GROSS SALES PRI CE*
342
343 LESS COMMISSI ON
1 31
344 LESS MHFA 'APPRECIATION PARTICIPATION' 0
0.001
345
346 NET SALES PRICE
347
348 LESS TAXLIAB ILITY
349 LESS OUTSTAND INGDEBT:
350
FIRST MORTG
AGE
LOAN
351 SHARP LOAN
352 PLUS NON-DIST RIBUTED PROJECT CASH FLOW RESERVE (WITH INTEREST)
353
354
355 NET SALES PRCCE EDS
356
357
* NET OPERAT!NG :NCOME CAPITALIZED 1 9.0%
358
359
umannum
160
s15,599,762
467,963
0
15,130,799
2,197,077
7,789,074
0
0
$5,144,649
30 ,eeseseoeosesesseeeeseseseesueuooess
s
N2
PKom0
STATEENT
III MCESAM U O CASN:
33 ...r2 .... =... ... . .... z..
34
35
361
e
2-JIl-fl
IN
VS
E
A
E
Al
I VE SINE N I
? S
361
TINE
0
YEAR
YEN
1EN
1EA0
YEN
YEA
YEAR YE3
YEN
YEA
10
--
I
AIS
YEAR YE
12
11
YEAN
0
60
0
I
YEN
YER
13
9
1
7
6 4
3 5
2
361
1
--- -- ---- 210SMllISOr tUSTI:
371
t0
00
to
To 3102,
00
30
to0
0
tCASH
312 KW&IEP EtiTi
051,2071
292
.1,600,000
00
0
-0
0
0
0
0
373
IA M10GME
FIMKIC
6
4,312,350 4,312,350
0
01
0
0
01211
0
0
374
soAw FIms
1,101,4081,170,342 1,243,555 1,321,311
0
012,700
235
975,3951,121,504
11,61
T 9PERA0014
INC1E
0
0
0
0
0
0
0
211 INTREST
0
-BIS0ITimi CASH
fLO RS.
0
0
15,130,799
0
0
0
0
0
31 NT
SALES
PMCE
0
0
0
0
0
*
0
0
371
V1SRI3TI0MWCAsHFLRMKOW
- - ----- - -- - ---------311
30
30
$1,101,403 11,170,342 1,243,555 11,321,311616,534,61
$1,610,0004,312,350
£4,312,350 $114,902 6114,102
$117,161 9975,395
91,036,504
So
311
TOTAL
SICES or CASN
392
33
314USESO CASH:
385
t0
0
30
0
S0
to
s0
00
to
to
0
31,600,000
396 ACQUS111M O L
M/POIEWLOPPERT
0
0
0 0
0
0
0
0
0
31 KYELOPNT
O I1010N3IS1.AO
ONA3 0 4,312,350 4,312,350
002,510 o
312,127
822,016
830,460
845,!:5
838,131
357,222
012,470
3
INTEEST
I, FEES:H0A 0D011A1
0
0
0
102,175
112,392 1,112,705
69,787
76,765
34,442
12,806
52,432
51,615
63,442
0
31
A IlIIAlIM: IWA MIGAE
0 0
0
0
0
0
0
0
0
0
0
0
I3 N-AHIUIRE KIT SERVICE
RESERE
0
0
0
0
0
0
0
0
0
0
0
0
0
39I KPAYPNT
Or gmP FORTin
0
0
0
0
0 2,1917,07
0
0
0
0
0
0
392 IN LIABILITY
ONSALE
0
1,1,602 1..,50
0
60,413
406,401 5,633,635
0
e
255,441
S
313
*LINIEIt IIVIEN" 11SWINti0
2,%60
0
0
0
0
0
0
0
394 303-I1SItINIEH PM9JEET
EASH
1L
RSERVE
------------------------------------------------------------------------------------------
14
is
to
30
0
0
191,271
0
0
0
0
0
0
3
0
----------
3%
2I1
39
3",
400
TOTAL
USES
V
CASN
11,610,000
$4,312,350
04,312,350
1914,102 1114,902 011,361
0"75,315 11,032,504
11,101,40
31,170,342 1,243,555
116,534,61K
to11,321,311
to
to
0
401
emtm
m
mamaannmam
402
28-Jul-88
403 BREAKEVEN TIME DELAY ANALYSIS:
404 = ===== ==========
405
406
407
408 BASELINE ('MARKET DEAL') AFTER-T
409
410 PROFORMA TIME DELAY (INMONTHS)
AFTER-TAX NET PRESENT VALUE ('AT
MONTHS OF
TIME DELAY
TIME-.
DELAYED
'ATNPV'
so
(21,000)
(42,000)
(63,000)
(84,000)
'ATNPV'
PRESENT
VALUE OF
SUBSIDY
s0
(21,000)
(42,000)
(104,000)
(63,000)
(84,000)
(104,000)
(124,000)
(144,000)
(124,000)
(144,000)
(163,000)
(182,000)
(201,000)
(163,000)
(182,000)
(220,000)
(238,000)
(256, 000)
(220,000)
(274,000)
(292,000)
(274,000)
(309,000)
(327,000)
(344,000)
(360,000)
(377,000)
(393,000)
(409,000)
(425,000)
(441,000)
446
BASELINE
(201,000)
(238,000)
(256,000)
(292,000)
(309,000)
(327,000)
(344,000)
(360,000)
(377,000)
(393,000)
'439,000)
(425,000)
(441,000)
mummmumnumumununnumnummununun
162
SENSITIVITY ANALYSIS: EFFECTS 'NAFTER-TAX NPV DUE TOCHANGES INREVENUE GROUTH AND UNIT LAND COST ASSUMPTIONS
28-Jul -88
UNI T
fATNPV
ANNUAL
REVENUE
GROWTH
FACTOR
("ARKET' UNITS)
t0
(293,000)
(103,000)
100,000
317,000
4.0%
547,000
5.0% 794,000
5.0% 1,056,000
7.0% 1,6,000
8.0% 1,634,000
9.0; 1,952,000
10.0% 2,290,000
0.01
1.0?
2.0%
3.0%
14,000
(557,000)
(367,000)
(164,000)
53,000
283,000
530,000
792,000
1,072,000
1,370,000
1,688,000
2,026,000
L AND COS TS
$8,000
$12,000
116,000
$20,000
(821,000) (1,085,000) (1,349,000) (1,613,000)
(631,000) (895,000) (1,159,000) (1,423,000)
(428,000) (692,000) (956,000) (1,220,000)
(211,000)
(475,000)
(739,000) (1,003,000)
19,000
(245,000) (509,000) (773,000)
266,000
2,000
(262,000)
(526,000)
0 (264,000)
528,000
264,000
308,000
544,000
280,000
16,000
1,106,000
842,000
578,000
314,000
1,424,000 1,160,000
896,000
632,000
1,762,000 1,498,000 1,234,000
970,000
466
163
124,000
(1,877,000)
(1,687,000)
(1,484,000)
(1,267,000)
(1,037,000)
(790,000)
(528,000)
(248,000)
50,000
368,000
706,000
467
t
468
469 SENSITIVITY ANALYSIS: EFFECT ON
470
471
UNITS/
472
ACRE
473
-----474
475
2.00
476
2.25
477
2.50
2.75
478
479
3.00
480
3.25
481
3.50
482
3.75
483
4.00
484
4.25
485
4.50
486
4.75
487
5.00
488
5.25
489
5.50
490
5.75
491
6.00
492
6.25
493
6.50
494
6.75
495
7.00
496
7.25
497
7.50
498
7.75
499
8.00
500
3.25
501
8.50
502
8.75
503
9.00
504
9.25
9.50
505
9.75
506
507
10.00
508
509
AFTER-TAX NETPRESENT VALUE OF CHANGES INDENSITY (HOLDING
*
*
AFTER-TAX
NPV
---------
#
*
f
#
f
f
f
f
f
#
f
#
($919,000)
(811,000)
(714,000)
(607,000)
(612,000)
(505,000)
(408,000)
(301,000)
(306,000)
(199,000)
(102,000)
(6,000)
0
108,000
204,000
312,000
306,000
414,000
511,000
618,000
*
*
f
t
f
f
ft
f
4
f
f
6.,000
-
720,000
817,000
924,000
919,000
!,026,000
1,123,000
1,231,000
1,225,000
1,333,000
!,429,000
1,537,000
1,531,000
t
t
f
f
t
t
f
t
*
f
f
t
164
Appendix I
TELLER DEAL/TAX-EXEMPT
WITH 4% TAX CMMCrS
1700
-
#ao
-
13w
-
100
-
(1200)
-
(100)
-
02
g
LL
(1aWo) (S3O) (100) (teo)
-
0
8
4
16
12
MONTH-S C PEMITTNO
24
20
MLAY
TELLER DEAL/TAX-EXEMPT
WrTH 4% TAX CIMOS
63.0m0
13.000
ob.2
11.5m
LAI
1
41.000
z
L.
45M
(11.000)
2.00
3.00
4.00
5.00
6.00
7.00
DESITY (LrJfS/ACit)
165
8.00
9.00
10.00
Appendix J
MARKET DEAL
WT9% TAX CMrr
117cc
940
!
9.300
9200
tio
(5100)
(1300)
(#400)
(I00)
4
0
8
24
20
16
12
MONT6 O' PERMrrrTNG CELAY
MARKET DEAL
WTH 9% TAX CMfD
22,W3
U
21.50
51.000
zL.
(9:00)
(51.000)
1.
2.00
.
-r ,
. . .
4.00
3.00
-- r,-r. .
5.00
I
6.00
OEsnY (LtITS/ACE)
166
I
7.00
I
-
8.00
I
I
- 9.00
I
- 10.00
i
Appendix K
SHARP DEAL/TAXABLE
WfTH 9% TAX CmaTS
A7c=
1#04
1.300
01
1200
1100
I-t.
z
Lii
(1100)
0.
(IXO)
(1400)
(2500)
0
8
4
12
16
MONTIS CF PERMfTTNO
20
24
MAY
SHARP DEAL/TAXABLE
WITH 9% TAX C'EDTS
13.000
!
2.000
41.500
w
z
wi
(2500)
(11.000)
.,-
2.00
-
.
3.00
-.
I
4.00
I
-. I....
5.00
..
..- - .- .
6.00
7.00
DB'SfTY (LuNrrS/ACIE)
1 97
- - I-
8.00
,-.-r-I
9.00
10.00
Appendix L
TELLER DEAL/TAX-EXEMPT
WfOUT TAX CMCrfS
5700
ge7o -
400 a!!
200 stoo -
w
(4100) -
(I2WO) (WsO) -v
0
8
4
24
20
16
12
MONThS CF PERMrITNG
LAY
TELLER DEAL/TAX-EXEMPT
WITLIT TAX CfEDTS
43.5Xm
23.000 -
twe
1.aw
$I
-
8
#1.000-
z
zI
(500) (11.000)'
2.00
3.00
4.00
5.00
6.00
DENSITY
7.00
(LNrTS/ACIM)
168
8.00
9.00
10.00
Appendix M
SHARP DEAL/rAX-EXEMPT
With 4K ItX CJEOTs
5700
seo
200
(5100)
90)
(S400)
(00)
8
0
12
MONT1
16
EF PtmfTTNG
20
24
ELAY
SHARP DEAL/TAX-EXEMPT
WrfH 4X TAX CMENTS
iJ9 .
1,X)
I-t.
51.000
I
(9ec0)
(1.000)
I..
2.00
.
. ..
.. 00
. . ..
4.00
...
5.00
. .
6.00
. ,
7.00
DENSITY (LNfTS/ACE)
169
. . I.
. ..
9.00
. . .
8.00
i
10.00
Appendix
SHARP DEAL/TAX-EXEMPT
WM-DUT TAX CCTS
5700
-
$am
SSW
4400
23M
!2
0
<a
zLd
5100
to-
(5100)(#1o) -
0.
(420o) (t3wo) -
(5o00) -
8
4
16
12
MONTHS CF PERMTTNG
24
20
MLAY
SHARP DEAL/TAX-EXEMPT
WMCUT TAX CEDTS
-
63.5mo
23.000
92.55W
L
0!
92.000
51.5m
LAI
51,000
0.1
90
(Moo)
(#11.00o)
2.00
3.00
4.00
8.00
6.00
7.00
DBENfTY (LMJTs/ACRE)
170
8.00
9.00
10.00
Appendix 0
MARKET DEAL
93.500
<0a
#3.000
-
22.500
-
Z1.000
z
Q.
90
(WO0)
(5.000)2.00
3.00
4.00
5.00
6.00
7.00
DONTY (UNrS/ACFE)
171
8.00
9.00
10.00
Appendix P
SHARP DEAL/TAXABLE
WrTM3UT TAX CIDTS
#700
$400
02
0200
w
so
z
(0100)
0.
(9400)
(9400)
0
8
4
12
16
20
24
MONT-S CF PRMlTTNG CMAY
SHARP DEAL/TAXABLE
WTMIUT TAX CRTS
2.000
-
#2.000
01.800
#1,000
(#1
.
mn)
-
2.00
3.00
4.00
6.00
5.00
DENrTY
7.00
(LNfTS/ACfE)
172
8.00
9.00
10.00