HomeMy WebLinkAbout4.b. Resolution of Support for New American Neighborhoods, Inc. CITY OF ROSEMOIINT
EXECUTIVE StTI�l13RY FOR ACTION
PORT AUTHORITY MEETING DATE: MARCH 15 , 1994
AGENDA ITIIri: RESOLUTTON OF SUPPORT FOR NEW AGENDA SECTION:
AMERICAN NEIGHBORHOODS, INC. OLD BUSINESS
PREPARED BY: JOHN MILLER, AGENDA NO.
ECONOMIC DEVELOPMENT COORDINATOR 4 . B.
ATTACffi�ENTS: RESOLUTION 1994-1, O � BY:
CORRESPONDENCE FROM BILL BRYANT
Bill Bryant and David Remely appeared before the Rosemount Port Authority
on March 2, 1994 . They requested support from the port authority in the
effort of New American Neighborhoods to gain Low Income Housing Tax Credits
or LIHTC' s. Mr. Bryant explained that his firm had a purchase agreement
with Carlson Properties for land near Wachter Pond. He also stated that
the application for the LIHTC' s was due on April 1, 1994, and that support
from the local unit of government was important in getting approval .
After discussion with Bryant and Remely the board directed me to prepare a
resolution of support for consideration at the March 15 meeting.
For further information about LIHTC' s please see my memorandum of March 8,
1994. In addition, I will be receiving a preliminary evaluation of the
project' s pro forma and projections from Springsted Inc. This will begin
to address the issue of the need for tax increment financing.
` �
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RECOI�2ENDED ACTION: Motion to approve Resolution 1994-1, A RESOLUTION
OF SIIPPORT FOR NEW AMERICAN NEIGHBORHOODS TO DEVELOP SENIOR HOIISING IN
THE CITY OF ROSEMOUNT.
C�������
PORT AUTHORITY ACTION:
CITY OF ROSEMOUNT
PORT AUTHORITY
DAKOTA COUNTY, MINNESOTA
RESOLU'TION 1994 - 1
A RESOLUTION OF SUPPORT FOR NEW AME,RICAN NEIGHBORHOODS
TO DEVELOP SF.NIOR HOUSING IN THE
CITY OF ROSEMOUNT
VVI�REAS, 1r1ew American Neighborhoods is a private sector provider of multi-family, low incom�
senior housing; and
WHEREAS, New American Neighborhoods has a purchase agreement with Carlson Properties to
purchase approximately six acres of land for a price of$260,000; and
WHEREAS, the subject site is presently zoned for multiple family housing and has utilities available;
and
WHEREAS, the Dakota County Housing and Redevelopment Authority has, through its consultant,
identified a need for low income senior housing in both Dakota County and Rosemount; and
� +AS, Low Income Taac Credits are available in Dakata County for the development of senior �
housingj•'�, �' ,��""�
� �rr�/�� - 1��'��'
OW, THEREFORE BE IT OLVED T: � � ��_� ,"�^
� �` � �� a�� a����� ��'�-J
� . � �
I. l�ew American Neighborhoods is ncouraged o apply for the Low Income Housing Tax Credits
from the Dakota County Housing an R evelopment Authority for the development of a senior
housing pro,ject on the Carlson Properties site.
2. Upon granting of the ta�c credits to New American Neighborhoods, the Rosemount Port
Authority will initiate its staudard and usual tests for the need for tax increment financing for
completion of the project and act accordingly.
3. New American Neighborhoods will remain solely responsible for all private financing, equity
requirements, and all site plans, development agreements, and code requirements for completion
of the project as may be required by the city of Rosemount.
ADOPTED this 15th day of March, 1994, at a regular meeting of the Rosemount Port Authority, a
development agency.
Chairperson
�EW �MERICAN NEIGHBORHOODS
�
iNCORPORATED
2524 ELEVENTH AVENUE SOUTH, MINNEAPOLIS, MINNESOTA 55404 USA
TEL.(612)872-9684 FAX(612)874-9954
March 7, 1994
Gary Fields, Vice President
Springsted Public Finance Advisors
85 East 7th Place, Suite 100
Saint Paul, Minnesota 55101-2143
Re: Low Income Housing Tax Credit(LIHTC) Project
Ser�;or Iiousir�g - naserr��ur�t
Dear Gary,
We look forward to working with you, John Millez, and the City of Rosemount to coordinate the
necessary city support for our proposed 48 Unit LIHTC Senior Housing development located near
Highway#42.Please refer to our analysis which includes our various assumptions,highlighted
as follows:
1 Tax Inerement Financing of 100%over the base amount of$8,000.
2 Local Government Aid(LGA) cost of 40%of the ta�c decrease.
3 Replacement Reserves of approximately$96,000.
4 Syndication Proceeds based upon a Net Present Value of 48%.
We have also included an itemized listing of the total project costs. The tax credit proceeds will be
used to substantially buy-down the permanent mortgage.The buy-down,along with the TIF support,
will enable us to provide aifordabie and reasunable rents within the market area. It is our
understanding that the demographics support the need for senior housing within Rosemount. The
current senior housing unit,Rosemount Plaza Apartments,maintains a waiting list of 33 prospective
tenants.
David Remely and I will forward to you an itemized listing of the basic improvements that we feel
should qua.lify for the TIF Note. The iand purchase price is $260,000. If you have any questions
please feel free to call me or David Remely at 1-252-5272.
Sincerely
c�c?uT��Miller&David Remely
Date 3/7/94
Page 1 _
NEW AMERICAN NEIGHBORHUODS
Scenario: Rosemount ASSUMPTIOIVS TRENDING RATES:
Period Income Exponaes
TOTa�unnTs 48 MortgageAmount 1,600,000 Years 1 to 5 2.00% 2.50%
Interest Rate 9.25% Years 6 to 10 2.00% 2.50%
VACANCY RATE 5.00% Loan Amortization 25 Years 1 1 to 15 2.50% 3.50%
Loan Term 15 Years 16 to 20 3.00% 3.50%
MANAGEMENT FEE 5.00% Balloon Payment s�,o�o,2oa Years 21 to 25 3.50% 4.00%
Years 26 to 30 4,OO�o 4.50%
Set Aside Reserves: Property Taxes•' 36,000
ReplacemeM 524,000 Property Tax Base 8,000 PROJECT COST: Per Unit Toca�
Operating S48,000 TIF Percentage'" 100% ukNo cosT 55,417 s26o,00a
Debt S24,000 ( Rebated to Project) coNSTaucrioN cosT S41,146 st,s�s,000
$Ub51dy 0 SOFT&SYND.COSTS $3,246 5155,800
AREA MEDIAN TOTA�•'• $49,808 52,390,800
Annual lnterest qucoME: 549,600
Earnings on COUrlty: Dakota PARTNERSHIP ALLOCATION
ReSerVeS: CASH FLOW: TAx LOSSES:
Replacement 4.5090 UNIT SQUARE FOOTAGE GEN Partner 50ryo �%
Operating 4.00% ONE Bedroom 730
Debt 4.00°Yo TWO Bedroom 9&0 LTD Partner 50% 99%
Subsidy 5.0096 THREE Bedroom 1,025
Security Oeposits 4.00% Syndicetion NPV. 48�0
ACTUAL SCHEDUIED RENTS FOR PROJECT MHFA GROSS RENT&UTILITY ALLOWANCE
Project Bedroom Actual Total PER GUIDLINES MHFA" LESS Net RENT
Units: Size Rents By Unit MHFA UNIT Rent S UTIIITIES Per Month
12 ONE S475 Per Month $5,700 ONE Bedroom 558 S73 3485
24 TWO 5510 Per Month $t2,240 TWO Bedroom 670 $84 5586
12 THREE S530 Per Month $6,360 THREE Bedroom 774 S99 S675
48 =___� _�_—_ __=_____
Total Monthly Rents $24,300
NOTE": The MHFA GROSS RENT is based upon the County
rRo�ecr connnneNTs: Utilities that are paid by the Tenant. This equals the Net MHFA
RENTS allowed, Please notice that the AGTUAL SCHEDULED
LGA offset assumes a pay-back of TIF relief. RENTS must always be less than the Net MNFA RENT allowed.
NOTE'•:
Property Taxes are based upon the lower rates,
Title 11 (2.3 vs 3.4), due to Low Income Housing(IRC 421.
The Tax Increment Financing (TIF) allows for a rebate of the
Property Taxes retumed to the LIHTC Projeci.
NOTES:
N07�"••: Total Project Costs before Developer fee.
A. Garages are included within the monthly rent.
B. Need to verify and compare MHFA Rents to Market Rents in the area.
G. Upon completion the Appraised Value shoutd be around 82,800,000
D.The Total Project Cost of 32,39Q800 is before the Developer Fee is added
which is substantially deferred within the praj�ct to reduce the permane�t loan.
Date 3/7/94 NEW AMERICAN NEIGHBORHOODS Pa9e 2 .
CASH f�OW PROJECTION
Scenario: Rosemount
7995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
OPERATING REVENUE:
Gross Rents-One Bedrooms 68,400 69,768 71,163 72,587 74,038 75,519 77,030 78,570 80,142 81,744 83,788 85,883
Gross Rents-Two Bedrooms 146,880 149,818 152,814 155,870 158,988 162,167 165,411 168,7 i9 172,093 175,535 179,924 184,422
Gross Rents-Three Bedrooms 76,320 77,846 79,403 80,991 82,611 84,263 85,949 87,668 89,42t 91,209 93,490 95,827
GROSSRENTAL 291,600 297,432 303,381 309,448 315,637 321,950 328,389 334,957 341,656 348,489 357,201 366,131
OTHER INCOME:
Rental Subsidy
Interest Income: Reserves 4,392 4,835 5,289 5,754 6,231 4,560 5,060 5,574 6,100 6,640 5,038 5,616
Tax I�crement Financing 28,900 29,823 30,768 31,737 3?,73t 33,749 34,793 35,863 36,959 38,533 40,161
Interest Income: Sec. Deposits 972 972 972 972 972 972 972 972 972 972 972 972
TOTALINCOME 296,964 332,139 339,464 346,942 354,577 360,212 368,170 376,295 384,591 393,060 401,744 412,881
LESS:Vancany Allowance (14,580) (14,872) (15,169) (15,4�2) I15,7821 (16,097) (16,419► (16,748) (17,083) (17,424) 117,860) (18,307)
NETRENTAL 282,384 317,267 324,295 331,470 338,795 344,115 351,751 359,548 367,508 375,635 383,884 394,574
OPERATiNG EXPENSES
Accounting 3,500 3,588 3,677 3,769 3,863 3,960 4,059 4,160 4,264 4,371 4,524 4,682
Administration Fee 5,000 5,125 5,253 5,384 5,519 5,657 5,798 5,943 6,092 6,244 6,463 6,689
AdvertlPromo 1,200 1,230 1,261 1,292 1,325 1,358 1,392 1,426 1,462 1,499 1.551 1,605
Insurance 6,000 6,150 6,304 6,+�61 6,623 6,788 6,958 7,132 7,310 7,493 7,755 8,027
Management Fee 13,851 14,128 14,411 14,699 14,993 15,293 15,598 15,910 16,229 16,553 16,967 17,39t
PayrolUTaxes 13,200 13,530 13,$68 14,215 14,570 14,935 15,308 15,631 16,083 16,485 17,062 17,659
Real Estate Taxes 8,000 36,900 37,823 38,768 39,737 40,731 41,749 42,7�J3 43,863 44,959 46,533 48,161
Repairs&Maint. 7,000 7,175 7,354 7,538 7,727 7,920 8,118 8,321 8,529 8,742 9,048 9,365
Replacement Res. 9,600 9,840 10,066 10,338 10,597 10,862 11,133 11,411 11,697 11,989 12,409 12,843
Resident Turnover 1,440 1,476 1,513 1,551 1,589 1,629 1,670 1,712 1,755 1,798 1,861 1,926
Snowllawn/Garde� 1,920 1,968 2,017 2,068 2,119 2,172 2,227 2,2£t2 2,339 2,398 2,482 2,569
Trash Removal 7,200 7,380 7,565 7,754 7,947 8,146 8,350 8,559 8,773 8,992 9,307 9,632
Uti�ities-Common 9,360 9,594 9,834 10,080 10,332 10,590 10,855 11,126 11,404 11,689 12,098 12,522
Other Misc. • 1,200 1,230 1,261 1,292 1,325 1,358 1,392 1,426 1,462 1,499 1,551 1,605
SyndicationPee•Admin 10,000 10,250 10,506 10,769 11,038 11,314 11,597 11,8II7 12,184 12,489 12,926 13,378
LGA: Offset 0 11,560 1 1,929 12,307 12,695 13,092 13,500 13,917 14,345 14,784 15,413 16,065
TOTAI EXPENSES 98,471 141,12�1 144,661 148,285 151,999 155,804 159,703 163,697 167,790 171,984 177,950 184,120
NETOPERATINGINCOMEINOIi S183,913 5176,144 S179,634 5183,184 5186,796 5188,311 5192,048 5195,850 5199,718 $203,652 S205,934 S210,454
LESS: DEBT SERVICE 164,425 164,425 164,425 164,425 164,425 164,425 164,425 164,425 164,425 164,425 164,425 164,425
NET CASN on CdSH FLOW =79.488 571.718 t15,208 i18,759 522,377 523,885 •27;B23 531,425 535,292 i39,228 541,509 f46.029
DEBT SERVICE COVERAGE 1.12 1.07 1.09 1.11 1.14 1.15 1.17 1.19 1.21 1.24 1.25 1.28
Year 7 Year 2 Year 3 Year 4 Year 5 Vear 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
. . .
Exhibit A
Date 3/7/94 NEW AMERICAN NEIGMBORHOODS
Scenario: Rosemount
Project Cost Assumptions
7ota1 units 48
uwo cosr 260,000 Summary of Project Costs
before Developer Fee Caiculation
CONSTRUCTION COSTS
Site Work 80,000 �.nd cosc zso,000
Off-Site Improvements 4Q,000 conarucuon �,s75,000
New Construction 1,316,100 sotccosu toe,�oo
GeneraF Requrements 75,000 synaeauon cwn a2,�oo
Contractor Overhead 88,000 ocn•r Cwc: 7,000
Otfier Fees 25,000
Contingency 48,000 Sub-Total Project Cost z,3so,aoo
Architect Design&Sup. 36,000
Real Estate Attorney 7,500
Other Consulting SOURCES:
Insurance 8,800
tnterest 1Construction). 10$,000 Permanent Loan Proceeds � � (0�� ���
Const. Loan Points (2.5%) 45,soo Tax Syndication (48$) 1 ,000,000
Taxes 4,000
Perfo�mance Bond 24,000 Tatal Proceeds 2 6�� ���
City Fees(SAC&WAC) 64,000 � �
Other Costs 5,000
Tota�Construaion Costs 1,975,000
USES-
SOFT COSTS:
Permanent Loan Points(2%) 32,000 Construction Costs 2� 4��� 00�
Title &Recording 25,000 �See detail above)
Legal Counsel 18,74p
MAI Appraisal 3,600 Reserves 96,000
Market Study 3,soo Developer Overhead 1 04, 000
Environmental Report 4,200 ----------
Tax Credit Fees 960 TOtdl USeS 2� 600�000
Consultants 18,000
Other Fees
Rent-Up Reserve
rots�son cosu t 06,100
SYNDICATION COSTS:
Partnership Organization 16,000
Tax-0pinian 17,500
Accou�ting 3,200
Adminstration Fee 6,000
Total Syr�ication Costs 42,700
� S � S�RINGSTED
120 South Sixth Street
�� PUBLIC FINANCE ADVISORS Suite 2507
Minneapolis, MN 55402-1800
(612) 333-9177
Fax: (612) 349-5230
Home Office
85 East Seventh Place 16655 West Bluemound Road
Suite 100 Suite 290
Saint Paul, MN 55101-2143 Brookfield, WI 53005-5935
(6i2) 223-3000
Fax: (612) 223-3002 (414) 782-8222
Fax: (414) 782-2904
6800 Coilege Boulevard
Suite 600
Overland Park, KS 66211-1533
(913) 345-8062
fax: (9131 345•1770
1800 K Street NW
Suite 831
Ma�Ch 11, 1994 Washington, DC 20006-2200
(202) 466-3344
Fax: (202) 223-1362
Mr. John Miller, Economic Development Director
City of Rosemount
P.O. Box 510
Rosemount, MN 55068-0510
Re: Preliminary Analysis of New American Neighborhoods Housing Project
Dear Mr. Miller:
In response to your request, Springsted Incorporated has conducted a preliminary analysis of
the proposed New American Neighborhoods Low Income Housing Project. Specific
consideration was given to examining the need for Tax Increment Financing Assistance.
Background and Methodology
New American Neighborhoods proposes to build 48 units of low income multifamily housing in
Rosemount. The project would be financed by a conventional first mortgage, equity invested
by a limited partnership formed for the syndication of available low income housing tax credits,
and if necessary, the proceeds from tax increment financing. Our analysis consisted primarily
of determining the amount of debt and equity that could be supported by the available
revenues from the project. With one exception (developer fees), the project costs, project
revenues, and project operating expenses were all supplied by the Developer. The initial
information did not include any developer fees; consequently, it was impossible to determine
the appropriateness or need for tax increment financing. The Developer was contacted, and a
7.5% developer fee was agreed upon. Approximately half of the fee would be paid upon
completion with the remaining amount to be financed at the same interest rate as the first
mortgage over 15 years.
Three financing scenarios are prepared for your review. The different scenarios include
different lender and equity requirements.
Scenario#1 - Developer Terms with TIF
This scenario shows the debt and equity structure as proposed by the developer, including a
$1,600,000 conventional 9.25% bank loan and $1,069,652 of equity. The projections show a
19.679% Internal Rate of Return (IRR) for the equity investors. A lender may be uncomfortable
City of Rosemount, Minnesota
March 11, 1994
Page 2
with a debt coverage ratio (net operating income/annual debt service) of less than 115%.
Please note that in years two through eight, this debt coverage ratio is not achieved. A TIF
loan of $79,284 for eight years would satisfy this need. `The Developer's anticipated lender
and equity investor requirements may not reflect actual market conditions. The additional
scenarios show alternative requirements.
Scenario #2 - $1,600,000 8.5% Bank Loan
This scenario shows the same $1,600,000 Bank Loan as proposed by the Developer, but the
interest rate has been reduced to 8.5%. Recent research conducted by Springsted regarding
market interest rates for conventional first mortgages for low income housing tax credit projects
(including contacts with Minnesota Housing Finance Agency, the Twin cities Local Initiatives
Support Corporation, and California and Massachusetts lending consortiums) all reported
interest rates in the 8.25-8.5% range. With the lower interest rate, additionaf cash flow is
available to the equity investors and an Internal Rate of Return of 20.35% is achieved. Please
note that the minimum debt coverage of 115% occurs in all years. At this interest rate, TIF does
not appear to be needed.
Scenario#3- $1,436,439 8.5% Bank Loan
This scenario shows a smaller Bank Loan and a higher equity investment. Our experience with
the market for low income housing tax credits shows a 15-18% IRR for the equity investors.
Scenario #2 showed a higher than market IRR. This scenario shows the amount of debt tha# is
needed if an 18% IRR is achieved. Again, TIF financing does not appear to be needed.
Please review the attached projections and let me know if you wish to discuss them in greater
detail. We are available if you would like us to review our calculations with the Developers.
Please note that with the exception of the debt and equity assumptions, these remaining
assumptions were primarily provided by the Developers.
Thank you for the opportunity to be of assistance.
Sincerely,
.�-���..,.�—y z= ��.���
�`ary L. �elds
Vice President
P1P
/Saint Paul Office
cc: Mr. Daniel T. O'Neill, Senior Vice President, Springsted, Incorporated
Mr. Keith S. Jans, Senior Finance Manager, Springsted, Incorporated
Mr. William Bryant, New American Neighborhoods
Enclosures
RUSEMOUNT
New American Neighborhoods
SCENARIO 1
First Mortgage Amount : $1 ,600,000
I nterest Rate : 9.25%
� Minimum Debt Coverage Ratio : 108%
Equity Amount : $1 ,069,652
Internal Rate of Return : 19.67°fo
TIF Amount : $ 0
SUMMARY PROFORMA
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
ROSEMOUNT-NEW AMER.t -ADJ.ORIG./NO TIF -R�IIrrineryrorDl�cuulon PurposesCl�ly- REAL ESTATE PROFORMA-SUMMARY
DATE REVISED: 10-Mar-94
1995 1996 1997 1998 1999 2000 2009 2002 2003 2004 2005 2006 2007 2008 2009 TOTAL
YEAR 1 2 3 4 5 8 7 8 9 10 11 12 13 14 15
GROSS REVENUES: 291,�00 2fl7,432 303,380 309,448 315,637 321,949 328,388 334,958 341,855 ; 348;488 357,200 388,130 375,284 384,66B 394,282 5,070,496
VACANCYLOSS: 14,580 14,872 15,18� 15,472 15,782 18,097 16,419 t6,748 17,083 17,424 17,860 18,307 18,764 19,233 1G,714 253,525
EFF.GROSS REVENUE: 277,020 282,580 288,211 293,G75 299,855 305,852 311,969 318,208 324,572 331,084 339,340 347,824 356,520 385,433 374,568 4,816,971
OPERATING EXPENSES: 88,471 11fl,814 122,227 125,283 128,415 131,825 134,918 138,289 141,746 145,289 150,375 155,838 161,085 166,723 172,558 2,082,253
NET OPERATING INCOME: 1B8,549 182,G46 165,084 188,CG3 171,440 174,227 177,053 179,920 182,827 185,774 188,968 192,188 105,434 198,710 202,010 3,893,790
ANN.INT.EARNINGS: 5,364 5,807 8,261 8,726 7,203 5,532 6,032 8,546 7,072 7,612 6,0f0 8,588 8,753 6,922 7,095 113,522
T.I.F. ZO $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SO $0 $0 SO
OPERATING DEFICIT FUNDS SO $9,000 $5,000 $2,000 $0 $0 $0 S0 $0 $0 SO SO $0 $0 50 $16,000
CFAVAIIABLE FOR D/S 193,913 177,753 177,245 177,419 178,643 17fl,759 183,085 188,466 189,�9 193,388 1fl4,976 198,774 202,187 205,631 209,105 2,848,240
DEBT SERVICE: 176,776 176,778 176,776 178,77B 176,776 178,776 17B,778 178,776 178,776 176,776 176,Tl8 176,778 176,778 /76,776 176,776 2,651,634
CF AFTER FINANCING: 17,137 C78 469 843 1,867 2,983 8,310 9,690 13,123 16,811 18,200 21,g99 25,412 28,855 32,329 196,606
RESERVE REQUIREMENTS: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 98,000
(FundW In Op�rdng Budgeq
CASH SURPWS(LOSS): 17,137 g78 469 843 1,867 2,983 6,310 9,690 13,123 1B,611 18,200 21,999 25,412 28,855 32,329 196,606
ADJUSTMENTS FOR CFAT: 232,879 244,429 242,114 23G,841 237,455 235,827 233,189 224,546 221,611 216,509 8,835 5,324 1,947 (1,645) (S,d70) 2,339,391
CASH FLOW AFTER TAX: 250,018 245,407 242,583 240,484 239,322 238,810 239,498 234,236 234,734 235,120 27,038 27,323 27,359 27,211 28,85A 2,339,391
1ST MORT.CQVERAGE 29,488 13,328 12,820 12,g93 1q,218 15,333 18,660 22,040 25,473 28,961 30,550 34,349 37,762 41,206 44,679
First Mortgnge DCR 1.18 1.08 1.08 1.08 1.08 1.OG 1.11 1.13 1.15 1.1 B 1.19 1.21 1.23 1.25 t.27
TOTALDEBTCOVERAGE 17,137 978 469 843 1,867 2,983 8,3f0 9,690 13,123 18,611 18,200 21,999 25,412 28,855 32,329
Total Debt DCR t.10 1.01 1.00 1.00 1.01 1.02 1.04 1.05 1.07 t.09 1.10 1.12 1.14 1.18 1.18
MODIFIED RATE OF RETURN -MIRR ��8�
INTERNAL_RATE OF RETURN - tRR �p6�
�CAP RATE
---------- --- 12.0%
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ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
ROSEMWNT-NEIN AMER.1 -AQI.OWG./NO TIF -Prelimirary for Diacussion Purpomea Only- A3SUMPTIONS-Page 1
DATE REVISED: t0-Mnr-�1
SOURCES AND USES OF FUND3: INCOME AND E)(PEN3E8:
APARTMENT RENT8: #aF UNITS MONTHLY RENT ANNUAL RENT
USEB OF FUNDS: Stud'a f 0 t0 s0
TOTAL CO3T PER COST PEH i Bedroan 12 5475 t5.700
DEVELOPMENT BUDGET: COST UNT GSF 2 Bedroorn 21 S51p sg,lpp
. 9 8edroatn 12 =530 s6.300
L.AND i260,000 55.,17 i0•00 4 Bedroorn O SO SO
CONSTfil1CT10N =1,858,512 s38.71� l0.00 TOTAL: 18 i24,300 5291,600
DESIGN 8 REL/tTED i70,200 51,463 SO.00
DEVELOPMENT COSTS S8fl,240 it,85fl t0.00 REVENUES: YEAR i YEAR 2 YEAR 3
DEVELOPER FEES 5200,000 t1.t07 SO.00 Apertment Units �29t,00o t297,�32 i.9o3.380
FINANpNG COSTS t185,800 t3.867 50.00 Parking t0 sp sp
REWIRED RESERVES 5108,100 �2,210 SO.00 Stomge s0 =p =p
CONTINGENCY SO SO s0.00 Service s0 =p sp
TOTAL DEVELOPMENT COST i2,789,852 i57,701 �.00 Financal =O tp sp
Comrnercal s0 so sp
SOURCES OF FUNDS: Miac. =0 sp sp
GROSS REVENUES: �2fl1,000 S2fl7,43�2 fCi03,380
PRIVATE EWITY: 51.069,652 t22,2&1 i0.00
Developers Equity $0 VACANCY LOSS FACTORS:
SyndicaUion Equity $1,069.652 Apertment UnRa 5.0%
UPFRONT GRANTS: t0 s0 s0.00 Perk./Stor./Serv.�Fi�./Cor�m./Nlisc. 5.0% '
Souroe#1 $0
Source/2 $0 OPERATING D(PENSES: YEAR 1 YE/1R 2 YEAR 3
CONSTRUCTION INTEREST EARNINGS: SO SO t0.00 Mariceting 51,200 51,230 i1,281
OTHER FUNDS: SO SO 50.00 Memgetnent Fee 513,851 i14,128 =f4,�11
AMOUNT OF ALL LOANS: t1,700,000 :35,117 SO.00 Administrntion 58,500 i8,713 t8,930
Opemting d.Meinterienoe 518,760 ttfl,229 t19,710
�pe of Lmn: Princianl: Rate: Term: Replecemern Reaerve 50.000 t0.8W it0,o88
#t Firat Morttpge 51,600,000 fl25% 25 Ymrs Utilitiea 59.300 t9.5g� Sg.g3q
#2 Second Mortgage 5100,000 fl25% 15 Years Tnxes 6 Inaumnoe 519,200 :19.980 �20,172
/3 Defemed Accruing SO 8.00% 5 Yeara Reat EaOate Taxes 58,000 i38,900 537,823
#1 Deferted No Accrtnl SO 8.00% 10 Yenrs TOTAL OPERATiNG EXPENSES: =88,�7i 5110,811 5122,227
TOTAL SOURCES OF FUNDS: s2,769,852 f57,701 s0.00
Prepared by:SPRINGSTED Inc. (10-Mar-94 15:27:09) C:�KEITH�PRO.�CTS\FIELDS�NEWAMER\REALPROt.WK1
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILI VARY FROM THIS MODEL
ROSEIiAOUNT—NEW MAER.t—ADJ.ORIG./NU T1F —R�iminety far Discusaion Purpoass O�IY—'' ASSUMP710NS—Pags 2
DATE REYISED: 10—AArv—o4
GEPERAL ASSU�APT10N5—PART i: GEPERAL ASSUTAP'iIONS—PART 2:
STMT YEAR: 1�D5 NUwBER OF UNfT3 qg
MONi}iS IN FIRST YE/1R: 12 NUA�BER OF LOW INCOME UNffS 4g
RENT INCREASE FACPOR:— (Iniial) 2.00% TbTAL NET RENTABLE MEA p
D(F'ENSE INCREASE FACTOR:— (Iniia� 2.50% GflOSS BULOING S.F. 0
REAL ESTATE TAX INCREASE FACT�OR: 2.509L AVERAGE PET RENTABLE AREMUPNT p
IN7EREST EARNINGS RATE:— (�St.Aw d D�wlap�r#) 4.0096 GROSS S.F.PER UNIT p
EARNINGS ON D/S PAYMENTS: 0 BUI.DING EFFICIENCY py�,
HBonds :TYPE 1
If Conv�ntior�l :71fPE 0 ORIGINAL BASIS: t2.2�6,712
OISCOUNT RATE FOR EQ1117Y 12.00% TAX CREOtT�IGIBLE B/�SIS: =2.311,858
SAFE INVESTMENT RATE s_pp9�
STMT%FOR IRR 18.00% DEPRECIATION 8 MAOR7IZATION IPFORMATION:
RESERVE REQUIREMEN75: @ CLOSING MINUAL CONS7fillCTiON PERIOD INTEREST 8 TAXES =112,000
FINANCE COSTS(LFE OF 7ST INORTGMa� =81,200
OQwating Deficit i48.000 t0 ORGMIIUTIONAL E7�ENSE
=/0,498
Dabt Cwera9s i0 t0 START—UP C0675 jp
D�bt Servics Rsaerve =24,000 i0 DEPRECIA710N—27.5 YRS =2,130,Al2
CapiW R�placement =24.000 =O DEPRECIA710N—/1�CRS—7 YRS
i�.444
Paintiny d�Decarating :p =p �
TOTAL DEPRECIABLE BASIS: �.�p�{,7�
ANNUAL PARTNERSHIP COS75:
Rd�ssional Feas—Year 1 =10,000 NON—DEPRECIABLE COSTS: i374,900
Pattr�ership Manegemsnt Fw
tt�ourrr= �.%=o) i ALL TAX LOSSES USED: �
IF 1 —/WNUAI.(i)AMOUNT= =p ro=�.,=,,,��
IF O—ANNUAL(%)PERCENTAGE= 5.0096
Incentiw Fee 0.00%
Prepared by:SPRINGSTED Inc.( 10-Mar-94 15:2'�:09) C:�KEITH\PROJEGTS�FIELDS\NEWAMER\REALPR01.WK1
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
HOSEMOUNT—NE1N AMHi.1—ADJ.ORIG./NO TIF —Prelininary lor Diecussion Purpases Only— /1S8UIrPiIONS—Pege 9
DATE REVIB�: 10—Mer—�I
SALE�C-�iOWiH A33UhPT10NS: LOW INOOME HOUSINO TAX CR�IT CALC.:
YEAF1 OF SALE: 15 IN T/1HGET�ME/►? (0=N0,1=YES) O
CJIPITILL CaNN3 TAX RATE: 28.00% 90%PV BASIS PERCENTAGE ,.ppp%
OFiDINARY TAX 8A/1�l�T: 90.Q0X 70%PV BASIS PERCENTAGE p:ppp7�
HSTORIC BASIS PERCENTAGE 2p.ppp%
COMMISSION ON SALE(%): �.pp%
NUMBBi OF UNITS qg
ANNUAL APPREqA710N RA7E: 4.00% NUI�Bi OF TMGET�UrNT3 �
�'��: 12.OD% TOTAL NET RENTABLE MEJ► �
NET RENTABIE MEA—T/1RGET�UNITS �
GROSS RENT dtUl.71PL1FA(((�1�: 5.00
MPLICABLE PEACENTAGE/FRAC710N 100.0%
OiHBi COSTS 8 D�UCTIONS: jp
SYI�IG►iION FEES i0 EI.IGIBLE BASIS:
REPNRS f0 1.Ibquisition 6 Minor ReFiebilitation sp
D�UCTIONS i0 2.Refabilitetlon a New Cantnction i2.911,856
OTH�i �O 3.Hiataic Tmc Credit sp
METFIOD OF CALCULATING SALE PRICE: CALCULA710N OF TAX CR�ITS:
1.Acquisition!��Ainor Rehebilitatan sp
MET}iOD SELECTID-----------> 3 2.Rehebilitation a New Conetruction 5208,087
TOTAL ANNUAL TAX CR�IT s208,087
VALUE APPREqAT10N 1 AT 1.00%
ESTIMAT�SALE PpICE 2 AT 52,76G,a52 HSTORIC TAX Cfl�IT s0
CAP RATE 9 AT 12.00%
GROSS RENT MULiiPUEA: 4 AT 5.00 YE/1RS CR�IT REC�V�:
t.Acquisitlon t�1Ainor Rehebilitation 10
2.Rehebilitetion or New Conettucfion 10
VALUE APPRECIATION METNOD: 3.Hiatoric Tez Credit t
STARTING VALUE—YEAR 1: s0
TOTAL CRB11T8 =2,OB0,670
ESTIAAAT�SALE PRICE METHOD: CR�IT SALE RATE 51.�1%
ESTIMAT�SALES PRICE: �,7�,�
EOUITY FROM 3YNDICJ1T10N(Eatinate) =1,0�,652
Prepared by:SPRINGSTED Inc.(10-Mar-94 15:27:09) C:\KEITFI�PROJECTS\FIELDS\NEWAMER�REALPROt.WK1
ALL ASSUMPTIONS WERE PROVIDm BY OTHERS ACTUA�PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
R06EMOUNT—NEW AIAER 1 —ADJ.ORIGMO TIF —PrNiminary far Discussion Purpoa�s Oo1y— KSSUMPTIONS—Page 4
DATE REVISED: 10—M�r—�4
DEBT FINANCING ASSUMPTIONS:
AMOUNT FlNANCEO: =1,700,000 LOAN#3: DEFERRED LOAN—SIAAPLE IN7EREST A�CCRUING
#1 Frst Mart�g� it.d00.000 94.1% gdbon payms�t: t
�2 S�coed Mottpay� =100,000 0.0% N Y�s Enter 1
#3 D�f�rr�d Acauiny f0 0.0% B No EnEx 0
#4 Dsf�rt�d No Acausl i0 0.0% PrincQal: �
Acau�d Intersst: i�.00
LOAN#1 : FlRST MORTGAGE IrMx�st Fiab: Qppyb
Lasn Amwt Tsrm: 80
PrincQal: i1.Q00.000 Balbon Payment: 50.00
In6x�st Rate: 9.25% Monthly Payment: =0.00
Miortiation Period: 900 Loen Stut Month: t
Monthiy Paym�nt: =19.70211 Dehrral P�riod(Mos.): 60
Losn Sfart Month: 1 Mnual Fs�s: O.pppyb
i�sst ony�os.�: o �cuw R.a: e.00%
Mnual Se►viciny F�ss: O.pppqb
����a= 9.25% LOAN#4: DEFERRED LOAN—NO INTEREST ACCRUAL
Balloon Payme�t: �
LOAN�2: SECOND MORTGAGE B Y�s Enter 1
ff No E�ar 0
Principal: =100.000 Principel: i0
Ir�hrest Rate: a.25% inter�st Rats: 8.ppy6
M�ortiation P�riod: 180 T�rm: DO NOT ENTER 1 120
Ma,my P.ym.nc: i�,o2�.t� e.ia«�P.ym«n: �
Laen Start IAw�th: 1 Mo�Mdy Paym�nt: i�.00
��.st or�y�o:-): o Laan Start Mooth: �
Moual Sa�viciny FNs: 0.000% Ddarnl P�riod(Mos•): 120
E1Nctiw R�E�: 9.2596 Mnual Fs�s: 0.000%
Efhctiw RaE�: 0.00%
Prepared by:SPRINGSTED Inc. (10—Mar-94 15:27:09) C:\KEITH�PROJECTS�FIELDS�NEWAMER�REALPR01.WKt
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THlS MODEL
R03EMOUNT—NEW AMER.1 —/IDJ.ORIG./NO TIF —Prelmirary for Discuaaion Pu�pases Only— Uf�EAWRITING ANALYSIS
DATE REIfIS�: 10—Mer—W
NUIMBEA OF UMITS: 48 AMOUNT
LOW INCOME UNTS: A8 ST'ENT ON PUBUC PUBUC
TOTAL PBi LOW INCOME TOTAL 1et 2nd SYPD. DEV. SUBSIDY SUBSIDY INTHiEST OTH�i
BIAGET UNIT UNITS D�T MORT. MOFiT. E�UITY 'C-0UITY C#�ANT(S) LOAN(S) EJWNINGS FUPDS
TOTALPRQlECTCOST 52.700,652 f57,701 S2,TQG,Q62 51,700,000 51,600,000 5100,000 i1.06D.852 . SO s0 =0 =0 i0
L.APp =2E0.000 =5.417 =2Q0,000 =150.587 i150,tOfl 59.387 5100,,i3 SO s0 s0 sp s0
CONSTRUC710N i1,85B,512 i38.710 t1,858,512 ' S1,1I0,7,6 51,073,64t i87,tOS i717,766 i0 SO SO sp SO
DESIGN d�REUITID i70,200 11,I69 570,200 549.088 S�W.55I 52.535 527,112 SO SO s0 s0 i�
DEVEIOPMENTCOSTS f8G,210 i1,850 580,2,0 S5d.775 t51,553 53,222 531.�85 i0 SO SO i0 S�
DEVELOPER FEES =200.000 54,107 5200,000 Si22.759 i115,538 57,221 577,2�11 SO s0 i0 i0 i�
FINANpNG CO3TS i185,Q00 s3.B67 t185,Q00 t119,020 1107,210 58.701 571.680 SO SO s0 SO SO
REOUIR�RES�RVES i106,100 52,210 5106,100 585.124 561,293 53,831 i�W.978 t0 SO i0 :0 SO
CON7INGENCY i0 SO :p0 i0 SO t0 SO t0 SO SO So SO
ALLOCAl10N OF SOURCES OF FUNDS(%) 61.38% 57.77% 3.81% 38.62% 0.00% 0.00% 0.00% 0.00% 0.00%
ALLOCATION OF SOURCES PER UWIT 535,417 533.333 52.083 l22281 SO i0 SO =0 �
TOTAL ALLOCAiION OF SOURCES TO LOW INCOME UNTS 51,700,000 51.600,000 5700,000 Si3OB�,852 t0 s0 i0 :0 f0
PUBUC SUBSIDY
LEVERAGE RAT10 i0.00 t0.00 50.00 50.00 50.00 t0.00 50.00 So.oO
(S'a/S1 of p�blic tunda)
PUBl1C SUBSIDY AS A%= 0.00% VS. LOW INCOGAE UNT EXPEPDITURES AS A%s 100.00%
PROJECT W1TE OF RETIXiN IPDICJITOHS: DE11ELaPER FEES MIALYSIS:
LENGTH OF NOLD 10 Yee►s 15 Years PEA UPMT: t�,187
AS%OF iPC: 7.22%
DEYELOPER FEES i200,000 5200,000 AS%OF HARD COST: 9.1�%
MIRR 19.00% 11.82% (Lend+Construction)
IRR 1�.18% 19.67%
CUMIiA.PRE—TAX CF 6.5% 18.1% DEYELOPER FEES = i200,000 YS, i0 � MAOUNT OF Pt�UC SI�SiDY
CUMM.AFiSi—TAX CF 22�1.�% 237.1% DEVELOPER FEES 5200,000 VS. SO � EOUIIY INVESTID BYDEVELOPFJi QS IT PEAMMIENT�
Prepared by:SPRINGSTED inc.(10-Mar-94 15:27:34) C:\KEITH\PROJECTS\FIELDS�NEWAtvtER\REALPFiOt.WK1
X ,
ROSEMOUNT
New American Neighborhoods
�
SC � NARIO 2
First Mortgage Amount : $1 ,600,000
I nterest Rate : 8.50%
Minimum Debt Coverage Ratio : 115%
Equity Amount : $1 ,069,652
Internal Rate of Return : 20.35%
TIF Amount : $ 0
SUMMARY PROFORMA
�,
'i� _ _ __. ._----------------- -
ALL ASSUMPTIONS WERE PROVIOED BY 07HERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
ROSEMOUNT-NEW AMER.2-ADJ.ORIG./NO TIF/8.5% -AMkNn�rylor0ixusGon PurposasOnly- REAL ESTATE PROFORAAA-SUMMARY
OATE REVISEO: 11-Mar-94
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 TOTAL
YEAR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
GROSS fiEVENUES: 291,600 2fl7,432 303,380 309,448 315,837 321,949 328,388 334,958 341,655 348,488 357,200 366,130 375,�4 384,668 394,282 5,070,496
VACANCYLOSS: 14,580 14,672 15,1� 15,472 15,782 16,097 18,419 16,748 17,083 17,424 17,860 18,307 18,764 19,233 ig,71q 253,525
EFF.GROSS REVENUE: 277,020 282,580 288,211 293,975 299,855 305,852 311,969 318,208 324,572 331,084 339,340 347,824 358,520 365,433 374,568 4,816,971
OPERATINCa EXPENSES: 88,471 110,Bt4 122,227 125,283 128,415 131,625 134,9/6 138,289 141,748 145,289 150,375 155,638 IB1,085 168,723 172,558 2,082,253
NET OPERATING INCOME: 188,549 162,G46 165,98d 188,603 171,440 174,227 177,053 179,920 182,827 185,774 188,968 Ifl2,t86 195,434 198,710 202,010 3,893,790
ANN.INT.EARNINGS: 5,364 5,807 6,281 8,726 7,203 5,532 8,032 6,546 7,072 7,612 6,010 6,588 6,753 6,922 7,095 113,522
T.I.F. $0 $0 $0 SO $0 $0 $0 $0 $0 SO $0 SO $0 $0 $0 $0
OPERATING DEFICIT FUNDS $0 $9,000 $5,000 $2,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $16,000
CF AVAILABLE FOR D/S 193,913 177,753 177,245 177,419 178,643 179,759 183,085 186,466 189,�9 193,386 194,978 ifl8,774 202,187 205,631 209,105 2,848,240
DEBT SEiiVICE: 166,420 166,420 166,420 166,420 166,420 166,420 166,420 166,420 166,420 168,420 166,420 186,420 166,420 166,420 166,420 2,496,307
CF AFTER FINANCING: 27,4�3 11,333 10,825 10,998 12,223 13,338 16,665 20,045 23,478 26,066 28,555 32,354 35,767 39,211 42,684 351,933
RESERVE REOUIREMENTS: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 96,000
(Fu�dedin Op�raing Budgeq
CASH SURPLUS(LOSS): 27,493 11,333 10,825 10,998 12,223 13,338 16,665 20,045 23,478 26,966 28,555 32,354 35,767 39,211 42,684 351,933
ADJUSTMENTS FOR CFAT: 227,820 239,351 237,022 234,740 232,352 230,730 228,108 219,492 216,599 213,553 3,954 539 (2,718) (8,161) (9,806) 2,265,573
CASH FLOW AFTER TAX: 255,312 250,684 247,846 245,738 244,574 244,068 244,773 239,538 240,077 240,519 32,510 32,893 33,049 33,049 32,878 2,265,573
1ST MORT.COVEflAGE 39,309 23,150 22,641 22,815 24,039 25,155 28,482 31,862 35,295 38,783 40,372 44,171 47,584 51,027 54,501
First Mortgage DCFl 1.25 1.15 1.15 1.15 1.1 B i.1 B 1.18 121 1.23 1.25 1.26 1.29 1.31 1.33 1.35
TOTAL DEBT COVERAGE 27,493 11,333 10,825 10,998 12,223 13,338 16,665 20,045 23,478 26,966 28,555 32,354 35,767 39�211 42,684
Tota1 Debt DCR 1.17 1.07 1.07 1.07 1.07 1.08 1.10 1.12 1.14 1.18 1.17 1.19 1.21 i.24 t.26
MODIFIED RATE OF RETURN-MIRR �p,pq96
INTERNAL RATE OF RETURN-IRR 20.35%
CAP RATE �p.p9�
Prepared by:SPRINGSTED Ina(11-Mar-94 11:20:57) C:�ICEITH\PROJECTS�HELDS�NEWAMER\REALPR02.WK�
V/
�
O
�
�
�
�
�
V♦
V♦
_ �
I
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
ROSEMOUNT—NE1AI AMER.2-ADJ.OWG./NO TIF/8.5% —Prelimirnry for Disaiasion Purposee Ony— IISSUMPTIONS—Page 1
DATE FiEVIBED: 11—Mer—G4
SOURCES AND USES OF FUNDS: INCOAAE AND El(PENSES:
APARTMENT RENT8: #OF UNITS MONTHLY RENT ANNUAL HENT
USES OF FUNDS: S��1O � � �
TOTAL COST PER COST PER t Bedrown 12 t�75 i5,700
DEVELOPIAENT BUDGET: COST UNT GSF 2 Bedroorn , 21 t510 i6,120
3 g�p� 12 55.90 i6,3Q0
LM1D 32Q0,000 S5.I17 50.00 �Bedroorn 0 i0 SO
CONHiAUCTION 51.858,512 i98.71fl SO.00 TOTAL: 18 524,300 i2G1,600
OESIGN 3 RELJ�TED 570,200 i1.463 f0•00
OEVELOPMENT COSTS �,240 51,859 SO.00 REVENUES: YEAR 1 YEAR 2 YEAR 3
DEVELOPER FEES i200,0�D i�.187 t0.00 Apertment Units i291,000 S2fl7,�32 i303,380
FINANpNG COSTS 5185.800 s3.887 i0•00 ����9 � � �
REGIUIRED RESERVES 5108.100 i2,210 i0.00 Storage � � �
CONTINGENCY � � �•� �^�'� � � �
TOTAL DEVELOPMENT COST i2,7�,652 i57,701 t0.00 Firnncial i� � �
Cw�rnerciel !0 i0 SO
SWRCES OF FUNDS: Miaa � � �
GflOSS REVENUES: 5291,600 5297.�32 i303.380
PRIVATE EQUITY: 51.089,652 522,281 5�.00
Developers Equiry
yp VACANCY LOSS FACTOFiS:
Syndicafion Equity St,OB9,852 Apertme�t Unita 5.U%
UPFRONT GMNTS: SO SO SU.00 Perlc./Stor./Serv.�Fin./Cornm./Wlisa 5.0%
Source#1 �
��� $p OPER/1TiNG EXPENSES: YEAR t YEAR 2 YEAR 9
CONSTRUCiION INTEREST EARNINGS: SO SO 50.00 Marketing S1,2Q0 51,230 Si,281
07HEfl FUNDS: SO S� 50.00 AAnrngert�eM Fee : 513.851 S1I,128 511.411
AMOUNT OF AL�LOANS: 51,700,000 i95.417 t0.00 Adminishation 58.500 i8.713 t8,930
Operating6 AAeintemnoe Sf8,7E0 519,220 519,710
�ot Laen: Wincioal: Rate: Term: ReplacemeM Reaerve So.600 i9.810 ito,0e6
#1 Firat Mort¢ge S1,Q00,000 8.50% 25 Years UGiities �.� �.� �,�
!2 Second MoRgage i100,000 8.50% 15 Yenrm Taxea 6lnsuranoe 519,200 S/fl,980 i20,t72
/3 Deferred Accruing SO 8.00% 5 Years Real Eatate Ta:ea 58.000 i:j8.900 537,823
#4 Deterted No Accxual SO 8.00% 10 Yeara TOTAL OPERATING El(PENSES: 588,471 5119.811 St22,227
TOTAL SOURCES OF FUNDS: 52.789.8.�2` S5��T0� 3�•�
Prepared by:SPRINGSTED Inc. (11-Mar-94 11:20:35) C:\KEITH�PROJECTS�FIELDS\NEWAMER\REAlPR02.WKt
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
ROSE1AOl1NT—NEW AMER.2—ADJ.ORIG.MO T1F/8.5% —Prekninary far Discussion Purpa�es Ody— ASSUMPTIONS—Pa�2
DA7E iiEVISED: 11—IAer—o4
GEt�EiiAL ASSUMPT10N5—PART 1 : GEPERAL/4SSUMPTIONS—PART 2:
START YFJ1H: 1�5 NUWBER UF UNfTS 48
MQNTFIS IN FIRST YEAR: 12 NUtiBER OF LOW INCOME UNIiS 48
RENT INCREASE FA�CTOH:—Qni� 2.00% TOTAL NET RENTABIE AREA o
D(PENSE INCREASE FACTOR:— (MiiaQ 2.50% GROSS BUILDIN(3 SF. 0
REAL ESTATE TAX INCREASE FACTOR: 2.50% AVERAGE NET RENTABLE MEMINT 0
IN7EREST EAHNINGS RATE:— (Est.Aw d D�wlapr�) 4.00% GNOSS S_F.PER UNIT p
EARNINGS ON D/5 PAYMENiS: 0 BUILDING EFFICIENCY 096
ff Boods :7'YPE t
If CwrvetMiw�el _IYPE 0 ORIGINAL BASIS: =2.2oe.712
DISCOUNT RA7E FOR EQUI7Y 12.00% ' TAX CREDff BIGBLE BASIS: t2,311,85a
SAFE INVESTMENT RATE 8.0096
STMT%FOR IRR 1E.00% DEPRECIAl7QN 8 AMORTIZATION INFORMATION:
RESERVE REQUIRE6AENT5: Q CL061N(i ANNUAL CONSiAl1CT10N PERIOD INTEREST 8 TAXES =112,000
FINANCE COSTS(LIFE OF 1ST AAORiGALiE� =81,200
Opatati�g D�ficit i�18.000 i� ORGANU710NN.EXPENSE j10,496
Dabt Coverage s0 t0 START—UP COSTS f0
Dabt Servic�Reservs i24,000 =O DEPRECIATION—27.5 YRS =2,130,812
CapiW RapiaoemHt i24,000 i� DEPRECUTION—ACRS—7 YRS =E0,444
Palntiny�Decaatiny i0 i�
7DTAL DEPRECIABLE BASIS: t2,3o4,752
ANNUAL PARiNERSHIP COSTS:
Rdpsioosl F�es—Yaer 1 i10,000 NON—DEPRECIABLE COSTS: f374,o00
Partr�ershQ MenayemeM Fe�
(:MAOUNT= t.%=0) 1 ALL TAX LOSSES USED: i
IF 1—ANNUAL(i)NNOUNT= i0 ('O=No.7=Y�s)
IF 0—MINUAL(%)PERCENTAGE= 5.00%
In�w�tiw FN 0.00%
Prepared by:SPRINGSTED Inc.( 11-Mar-94 11:20:3� G:\KEITH\PROJECTS\FIELDS\NEWAMER\REALPFi02.WK1
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAI PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
. . � . '
ROSEMOUNT—NEW AM�i.2—/1DJ.ORIC3./NO TIF/8.5% —Prelirninery IorO�acusaan Purpases Only— ASSU►P710NS—Pege 3
DATE REVIS�: »—�►—�
SALE 6 C�iOWTH A3SUMPTIONS: lOW INCOME HOUSING TAIC CR�IT CALC.:
YEAFi OF SALE: 15 IN TARGET�ARE/19 (O�Np,1=YES) O
GIPITAL GNNS TAX RATE: 28.00% 90%PV BASIS PEACENTAGE 4.000%
ORDINARY TAX BRAC1�7': 9D.00% 70%PV BASYS PERCFNTIIGE D.�%
HSTORIC BASIS PBiCENTAGE �•�%
COMMISSION ON SALE(%): �.�
NUI�EA OF UNITS • '�
ANNUAL APPHEGATION RATE: 4.00% NU66ER OF TIIRGETID UNTS �
���: 12.00% TOTAL NET HENTABLE MEA �
NET RENTABIF AREA—TARGEiED UNITS 1
GFiOSS RENT MULTIPUER((�il+�: 5•�
APPlJG1BLE P�iCENTAGE/FHAC710N 100•O%
OiHEA COSTS 8 D�UC110N3: �
SYI�ICJ1T10N FEES t0 EU(�BLE BASIS:
REPNR3 t0 t.Aoquialtiot►6 MMorRehebilifetion fU
D�UCT10N3 SO 2.Rehebilifetion or New Ca�etncdon t2.311,856
OTHF3i i0 9.Hiatoric Tax Credit �
MET}{OD OF CALCULJ171NG SAIE PRICE: CALCULA710N OF TAX CR�ITS:
1.llcquisition d�Mirpt Rettebilifetion i0
METFIOD SELECT�-----------> 9 2.Rehebilifation a New Construction �� .
TOTAL ANNUAL TAl(CR�IT �.�7
VALUE APPRECIA710N 1 AT �•00%
ESTIMAT�SALE PRICE 2 AT S2,7dD,052 IiSTORIC TAX CR�IT �
C,�p pA� 9 AT 12.00%
GAOSS RENT MULTIPLIEA: 4 AT 5.00 YENRg CR��T RECBVH�:
1.lloquiaifion�Minor Rehebilitation 10
2.Rehebilitation a New Co�stnction to
VAWE APPHEC�AiION MET}IOD: 9.Hatoric Tex Credit �
STARTINCi VALUE—YEAR t: �
TOTAL CR�1T8 i2,OB0,C70
ESTIMAT�SAIE PRICE MEINOO: CR�IT SALE RATE 51.41%
ESTIMAT�SALES PRICE: �.T�,� .���
EOUIIY FROM SYPDICI►T10N(EalFnate) t1.00�.652
Prepared by:SPRINGSTED Inc.(11-Mar-94 11:20:35) C:\KEITFfiPROJECTS\FIEI.DS�NEWAMER\REALPR02.WK1
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
R06EMOUNT—NEW AMER 2—ADJ.ORICz/NO TIF/8.5% —Rsliminaty for Discussion Purpos�s Onty— /1SSUMPTIONS—Page 4
DATE Rt1/iSED: 11—Mu-94
DEBT FINANCING ASSUMPTIONS:
AIiAOUNT FlNANCED: i1,700,000 LOAN#3: DEFERRED LOAN—SIMPLE INTEREST AiCCRUING
#1 F'rst Mottqags i1,800,000 �4.1% Belloon Paymerrt: 1
!2 S�cond Matyay� i100,000 0.0% M Y�s Enbr 1
f3 D�f�rr�d Accruiny i0 O.0% M No E�sr O
�4 D�f�rr�d No Acausl i0 0.0% Principsl: i�
Acau�d Interest: i0.0�
LOAN#1 : FlRST IriORTGI►GE Ir�br�st R�b: s-�
laan Amott Term: �
Principal: =1,800,000 Balloon Payms�: i0.00
Inter�st Rat�: 8.50% MoMhy Payme�rt: t0.00
Amo►timtion Paiod: 300 Laan Sfart Month: f
Montlily Payment: =12.883.63 Deferral P�riod(AAoa.): �
Laan Sfart Mor►th: 1 Mnual Fees: 0-�
Inberest Ony(Mos•): O Etfective Rats: 8.00%
Mnunl Satvicing F�es: O.� ---
E��qaa; 8.50% IOAN f4: DEFERRED LOAN—NO INTEREST A�CCRUAL
Balioon PaymeM: 1
�p/►(�#2: SECOND IAORTC,AGE If Yes EnEer 1
H No EnEsr 0
Principal: i100,000 Principal: i0
lotersst Rat�: 8.50% loter�st Rets: 6.�
Amortimtion Period• 180 Tefm: DO NOT ENiER 1 120
MoMhly Payme�: i984.74 Balloon Payment: iQ
Laen Sfart MoMh: t Monfhly Payment: i�.00
I�srest Ony(AAos•): O Laan Sfart Month: �
Mnual Servicing Fees: 0.000% Daferral PKiod(Mos.): t�
Eifective RaEs: 8.50% Mnual Fees: 0.000%
Effectiw Rats: 6-�%
Prepared by:SPRINGSTED inc. (11—Mar-94 11:20:35) C:\KEITH�PROJECTS\FIELDS\NEWAMEFi�REALPR02.WK1
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
. � '
ROSE�AOUNT-NEW AM�i.2-/1DJ.ORIG./NO T1F/8.5% -Prelininery for Diacusaion Purpaees Only- UNDBiWRiT1NG AN/LL.YSIS
DATE REVIS�: »-�-�
NUI�EA OF UNITS: � ���'�T
LOW INCOME UMTS: 48 SPENT ON PUBLJC PUBUC
TOTAL PBi LOW INCOIiAE TOTAL tat 2nd SYPD. DEV. SUBSIDY SUBSIOY INT6�EST OTHEA
gIpGET UNIT UNITS DEBT MOFiT. MORT. EQUTY EOUITY GRANT(S) LOAN(S) E/1RNINGS FUPDS
TOTALPRQIECTCOST t2.7EiD,a62 i57.701 S2.7Q0.652 51.700,000 S1,COO,ODO 5100,000 51,0�,852 i� � � � �
upp t2Cp.000 i5.417 5260.000 5159.587 St50.199 59.387 5100,�19 SO SO SO � �
CONSTAUCiION i1,85B,512 5.98.710 51,858,5t2 51,1�10,7I6 51,073,844 587,103 f717,766 SO f0 SO � �
DESIGN d�RELATID l70,200 S1,I63 f70,200 SI9.088 SI0.5ri1 52.535 527,112 SO SU i� � �
DEVELOPMENTCOSTS 58�.2A0 i1,85fl 5�.210 551.775 t51.559 i3.222 531.1a5 SO S� !0 SO SO
DEIIELaPEFl FEES t200.000 5�.16� S20U.000 5122,759 i115.538 57,221 i77,2I1 SO SO SO 3� �
FINANpNG COSTS t185,Q00 s3.887 5185.E00 i119,920 t107,219 i8,701 571,880 SO SO i� � �
RE�UIR�RESERVES 5106,100 52.210 5106,100 585,12� 581,293 i3.831 L10.078 SO i� S� S� �
CON7INGENCY i0 SO SO SO t0 SO i0 SO i0 SO SO SQ
ALLOC/1710N QF SOURCES OF FUf�S(%) 61.38% 57.77% 3.61% 98.a2% 0.00% 0.00% 0.00% 0.00% 0.00%
ALlOC'.A710N OF SOURCES PER UNIT 535.,17 i33.333 S2.oe3 t22281 3� � � � �
TOTAL ALLO('.AT10N OF SOURCES TO LOW INCOME UNTS 51,700,000 51.800.000 5100.000 51.0�.652 iU i� � � �
PUBIIC SUBSIDY
LEVBiAGE RAT10 50.00 50.00 SO.00 t0.00 t0.00 i0.00 i0.00 SO.00
(s•s/S1 of p�blic fuds)
PUBUC SUBSIDY AS A%= 0.00% VS. LOW INCOME UNT E7�EPDITi1RES AS A%= 100•00X ___
PROJECT MTE OF RETURN INDICATORB: DEVELOPER FEES MIALYSIS:
��T}{pF Hp�p 10 Years 15 Yeers PEA UNT: i�1.1 B7 •
AS X OF 7PC: 722%
DEVELdPER FEES t200.000 5200,000 AS%OF HARD COST: 9.1�%
p,rpq ts.slx 12.oex (tana+conea�ction)
IRR 10.87% 20.35%
CUMM.PRE-TAX CF 162% 92•fl% DEVELaPER FEES = 5200.000 VS• i0 = AMOUNT OF PI�LIC SUBSIDY
CUMM.AFiER-TAX CF 229.3% 2M.7% DEVELOPER FEES = t200.000 VS- SO � EUUITY INVESTID BY DEVELOP6� QS IT PEAMANENT�-----
Prepared by:SPRINGSTED Inc.(11-Mar-94 11:20:57) C:\KEITFi�PROJECTS�FIELDS\NEWAMER�REALPR02.WKt
ROSEMOUNT
New American Neighborhoods
S
CENARI4 3
First Mortgage Amount : $1 ,436,439
Interest Rate : 8.50%
Minimum Debt Coverage Ratio : 128%
Equity Amount : $1 ,233,213
Internal Rate of Return : 18.00%
TIF Amount : $ �
SUMMARY PROFORMA
ALL ASSUMPTIONS WERE PROVIDEO BY OTHERS ACTUAL PROJEC7 PERFORMANCE WILL VARY FROM THIS MODEL
ROSEMOUNT-NEW AMER.3-NO TIF/8.5%/18%IRR -PnNr�neryfaDlxu�a�on Purpoeas On�y- REAL ESTATE PROFORAAA-SUMMARY
DATE HEVISED: 11-Mtv-94
1995 1998 1497 1998 1fl99 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 TOTAL
YEAR 1 2 3 4 5 B � 8 9 10 i t 12 13 14 15
GROSS REVENUES: 291,600 2fl7,432 303,380 309,448 315,637 321,949 328,388 334,956 341,655 3,48,4g8 357,200 388,130 375,284 384,666 394,282 5,070,496
VACANCY LOSS: 14,580 14,872 15,166 15,472 15,782 18,097 16,419 16,748 17,083 17.424 17,880 18,307 18,784 19,233 1fl,714 253,525
EFF.GROSS REVENUE: 277,020 282.560 288,211 293,975 299,855 305,852 311,G69 318,208 324,572 331,OB4 339,340 347,824 356,520 365,433 374,568 4,816,977
OPERATING EXPENSES: 88,471 11fl,at4 122.227 125,�3 128,415 131,625 134,916 138,289 141,749 145,�9 150,375 155,638 1Bi,OBS iB6,�23 172,558 2,082,253
NET OPEHATING INCOME: 188.54G 162,G46 185,fl84 188,693 171,440 174,227 177,053 179,920 182,827 185,774 188,988 102,186 ifl5,434 t98,710 202,010 3,893,790
ANN.INT.EARNINGS: 5,384 5,807 8,261 8,72B 7,203 5,532 6,032 8,546 7,072 7,612 8,010 8,588 6,753 8,922 7,095 9 13,522
T,�,F, $0 SO 30 SO $0 30 SO $0 SO SO SO SO SO SO SO SO
OPERATING DEFICIT FUNDS 80 59,000 55,000 $2,000 SO SO $0 $0 SO $0 SO $0 $0 SO $0 $16,000
--_._ -___..__.__ _ ___..-------
CF AVAILABLE FOR O/S 193,flt 3 t 77.753 t I7.245 t 77,410 178,843 179,759 183,085 186,466 189,�9 103,386 1 fl4,976 198,774 202,187 205,831 209,105 2,848,240
DEBT SERVICE: 150.61C 150.01G 150.6�0 t50.610 150,616 150,816 t50,6/6 150,618 150,618 150,616 150,816 150,816 150,616 150,816 150,616 2,259,239
CF AFTER FINANCING: �3,207 27,137 26.62D 26,8Q3 28,027 2fl,143 32,469 35,850 39,293 42,770 44,360 48,158 51,571 55,015 58,486 589,007
FESERVE RE�UIREMENTS: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 96,000
(FundW In Op�reAng Budgeq �
CASH SURPLUS(LOSS): 43,297 27,137 26,629 26,803 28,027 29,143 32,469 35,850 39,283 42,770 44,360 48,158 51,571 55,015 58,4� 589,001
AOJUSTMENTS FOR CFAT: 222,344 233,945 23/,691 229.491 227,192 225,667 223,151 214,651 211,882 208,973 (478) (3,731) (8,812) (10,065) (13,502) 2,194,400
CASH FLOW AFTER TAX: 265,641 281,OB2 258,320 256,293 255,21fl 254,810 255,620 250,500 251,165 251,743 43,882 44,427 44,759 44,950 44,987 2,194,400
1ST MORT.COVERAGE 55,114 38,954 38,446 38,619 39,84d 40,980 44,288 47,667 51,099 54,587 58,177 59,975 83,388 66,832 70,305
First Mortgage DCR 1.40 1.28 1.28 1.28 1.29 1.30 1.32 t.34 1.37 1.39 1.40 1.43 1.46 1•48 1•51
TOTAIOEBTCOVEfiAGE 43,297 27,137 28,629 28,800 28,027 29,143 32,469 35,850 39,283 42,770 44,380 48,158 51,571 55,015 58,4�
Total Debt DCR 1.29 1.t8 1.18 1.18 1.19 1.19 1.22 1.24 1.26 1.28 1.29 1.32 1.34 1.37 1.39
MODIFIED RATE OF RETURN -MIRR ���4�'
INTERNAL RATE OF RETURN-IRR 1e'�
12.0%
GAP RATE
Prepared by:SPRINGSTED Ina(11-Mm-94 11:35:01) C:\ICEITH�PROJECTS�FIELDS\NEWAMEii�REALPR03 WKt
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ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MOt7EL I
pOSEMWNT-NEW AMER.9—NO T1F/8.5%/18%IRR —Prelimirory for Diacuasion Purposes OMy— ASSUMPTIONS—Pege 1
DATE REVISED: 11—Mer—�1
80URCE3 MID USES OF FUNDS: INCOME AND EXPENSES:
APARTMENT RENTB: #OF UNIT8 MONTHLY RENT ANNUAL RENT
$hK�lO . � � �
USES OF FUNDS:
TOTAL COST PEfl COST PER 1 9edrown 12 u75 �,7�
DEVEIOPAAENT BUDGET: COST UNT GSF 2 Bedroan 24 5510 ts.120
3�n 12 55.90 id,360
I.AND 5200.000 :5.�17 SO.00 ,��� O � �
CONS7AUCT10N i1,858.512 i�.710� i0.00 TOTAL: ,8 324,900 5201,Q00
DE&GN b REL/1TED 570,200 i1,A63 SO-00
pEVELOPMENT COSTS 580,240 it.850 SO.00 REVENUES: `!EAR t YEAR 2 YEAR 3
DEVELOPER FEES 5200,000 SI.187 i0.00 Apartment Unita t291,C00 i297,132 i.�.�
FINANpNG COSTS t185,800 39.867 50.00 Perking � � �
REOUIRED RESEFiVES
5108,100 52.210 SO.00 Slorege � � �
CONTINGENCY
:p SO iO.Oo Service i0 SO to
TOTAL DEVELOPMENT COST 52.769.852 557.7U1 SO•00 Fina�cinl
t0 SD �
Cortimercial � � �
Misc. t0 So to
SOURCES OF FUNDS:
GHOSS REVENUES: �91.� �97•� �'�
PRIVATE EQUITY: 51.233.213 525.692 SD•0�
pevelopers Equity $0 VACANCY LOSS FACTORS:
Syndication Equty 51,233,213
Apartment Unita 5•�
UPFRONT GMNTS: SO SO i0.00 Parlt./Sto►./Serv.IFin./Comm./Miac• 5.0%
Souroe#1 �
��� � OPEflAT1NG IXPENSES: YEAR 1 YEAR 2 YEAR 3
CONSTAUCT10P1 INiEREST EARNINGS: �
sp sp.pp Marketing it,2oo 51,23o it,261
OTHER FUNDS: SO SO SU.00 I+�ane9ement Fee 513,851 514,128 itI,111
AMOUNT OF ALL IOANS: 51,536.139 S32.00fl 5�.00 Adminislretion te.`.� 58.713 58,930
OpemtingSMeintlanenoe f18,700 510,220 S1G,710
TYPe d Lonn: Princiml: Rate: Tem�: RePincement Reserve Sfl.Q00 SO.B�W 510.086
Udlitiea l0.3B0 59.5� 50,831
#i Firat Mortgage t1,136.43G 8.50% 25 Yenrs 510,200 S1fl,9B0 f20,172
#2 Seoond Mortgnge S1U0.000 8-50% 15 Ymrs Taxes 6 Insu�anoe
/3 Deterted Aaxui�g i0 8.00% 5 Ymrs Reel EsOate Tnxea 58.000 536.900 537.823
#4 Deierted No Accrual SO 8.00% 10 Years TOTAL OPEMTING EXPENSES: i89.4�t 5119,61� i122,227
TOTAL SOURCES aF FUNOS: 52.789.852 557.701 SU•00
Prepared by:SPRINGSTED Inc. (i t-Mar-94 11:34:41) C:\KEITH\PROJECTS\FIELDS\NEWAMER\REALPR03.WK1
ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL I
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS .
ROSEMOUNT—Nt"W AMER.3—NO 71F/8.5%J18%IRR —R�imirery far Discussion Purposss Only— ASSUMRTIONS—Page 2
DA7E REVISED: 11—M�r—�4 �
GENERAL ASSl11Yp7lONS—PART 1 : GENERAI.ASSUTAP'T10NS—PART 2:
START YEAR: 190.5 NUMBER OF UN17� �
1AONTHS IN FIRST YE/1R: 12 NUIuBER OF L`OW INCOME UN(TS �
RENT INGREASE F/4CTOR:—(Initia� 2-00% 7�OTAL NET RENTABLE MEJ1 �
p(pENSE INCREASE FACTOR:— (IniIN 2.50% GROSS BUILDMIG SF. a
pEAL ESTATE TAX INCR ''E FACTOR: 2.50% AVERAGE PET RENTABLE ARE/VUNT �
INTEREST EARNINGS RATE:—(Est Aw of Owrlap�r f) 4.00% GROSS S.F.PER UNIT �
EARNINGS ON D/S PAYMEN�S: O BUI.DING EFFIGENCY �'
NBonds :IYPE 1
If Co�ventional :TYPE O ORIGINAL BASIS: i2.298,712
DISCOUNT RATE FOR E�UITY 12.00% TAX CREDff BIGIBLE BASIS: i2.Si 1.858
S/1FE IMIESTIAENT RATE 8.0096
START%FOR IRR 18.00% DEPRECIATION 8 AIiAORl1UT10N INFORMA710N:
RESERVE REQUIREMENi'S: @ CLOSING MINUAL CONS7AUC71UN PERIOD INTEREST t�TAXES it12.000
FINANCE COST'S(LFE OF 1ST MOH7GIVG� ia1.200
Opereting Daficit i48.000 i� ORGMNZATIONAL EXF'ENSE i10,49d
Dabt Cowrag� i� t0 START—UP COSTS �
Dabt Servios R�w Z24.000 i0 DEPRECIATION—27.5 YRS =2.190.612
GpiW RapMosm�rt =24,000 i0 DEPRECIAl10N—/�CRS—7 YRS iQ0.444
Paintiny d�D�cdaliny � �
T�OT11L DEPRECIABIE BASIS: �.�,7`�
ANNUAL PMTNERSHIP COS75:
Rohasional FNs—Y�at 1 =10,000 NON—DEPRECIABLE C06TS: � i374.o00
P�rtr�ersh4lAenaysmsnt F�e
(;MAOUNT= 1.%_�I 1 I1LL TAX LOSSES USED: 1
IF 1 —/WNUAL(i)AMOUNT= � �=NO•�=Y��
IF 0—ANNUAL(%)PERCENT/YGE= 5.�
Inosntive FN 0.00%
Pre�ared bv:SPRINGSTED Ina( 11-Mar-94 11:34:41) C:�KEITH\PROJECTS\FIELDS�NEWAMER�REALPR03.WK1
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAI PROJECT PERFORMANCE WILL VARY FROM TNIS MODEL
ROSE�AOUNT—NEW AMEA.9—NO 71F/8.57y18%IRR —P►elinirory for Discussion Purposes Only— ASBUA�F'TiONS—Pape 9
DATE RE111S�: ��—�—�
g/►LE d,GqOWiH ASSUIrPilON3: LOW INCOME HOUSING TAX CR�IT CI1LC.:
�����: 15 IN TMGET�AREA 7 (OsN0,1 sYES) O
CAPITAL CiNNB TA7C RATE: 28.00% 90%PV BASIS PF�iCENTAGE 4.000%
OFiDINARY TAX BRACI�T: 9G.Q0% 70%P V BASI S PEFiCENTAGE 0.000%
HSTORIC BASIS P�iCENTAGE �•�%
OOMbq8SION ON SALE(%): 4.00%
NUMBHi OF UNIT8 '�
ANI�IAL APPRECIATION RAlE: I.Oo% NUMB6i OF TARGE7ID UNTS �
���_ 12,pp% TOTAL NET RENTABLE I1REA �
NET RENTABLE IWEA—TMCaE1ID UNITS �
C�083 RENT MUL71PL1FA((�11�: 5.00
/1PPUCABLE PH�CENTAGF�FRAC'iION 100.0%
OTHEA COSTS 8 D�UCTIONS: �
SYPDIC/1710N FEES i� EUdBLE BASIS:
RB'NRS i0 1.Acquisifion 3 Mi�or Relebilitation �
D�UCiIONS i0 2.Flehebilifation or New Coretnction t2.911.656
OTHER i0 3.Historic Tez Cred'd �
MEl}10D OF G1LCUlAl1NG SALE PRICE: CALCUTAiION OF TAX CR�ITS:
t.Acquisition 3 AAinor Relabilitation �
Ir1ETF100 SEIFCiID-----------> g 2.Rehebilitatio�ar New Co�huctlon t�.067
TOTAL ANNUIIL TAX CR�IT �•��
VALUE APPRECIAiION 1 AT 1.00%
ESl1MAT�SALE PRICE 2 AT i2.700.0.52 HSTORIC TA7(CR�IT �
��� g AT 12.00%
GR03S RENT MULi1PlJER: 4 AT 5.00 ��S���T R�O�'
t.Ibquiaition 6 Mino►ReFiebNitetion to
2.Rehabililafion or New Corotructlon 10
VALUE APPREGA710N METF100: 9.Hiatoric Tex Credit �
STAR7ING VALUE—YEM 1: �
TOTAL CR�ITS t2.080,870
ESTiMAT�SALE PRICE METHOD: CR�IT SALE RATE �_502�7G
ESTIMAT�SALES PRICE: �•7�,�
E�UI TY FROM SYTAICJ►TION(Ealinete) _�r��+2�9
Prepared by:SPRINGSTED Inc.(11—Mar-94 11:34:41) C:\KElTFI�PROJECTS\FIELDS\NEWAMER\REALPR03.WK1
,
ALL ASSUMPTIONS WERE PROVIDm BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
. .
R06EMOUNT—NEW AAAER S—NO 71F/8.596/18961RR —Relimitiry for Discussion Purpoaes Only- ASSUMPTIONS—Page 4
DATE REVISED: 11—Mar-94
DEBT FINANCING ASSUI�APTIONS:
AMOUNT FlNANCED• =1,530.43� LOAN iS: DEFERRED LOAN—SIMPLE INTEREST AiCCRUiNG
�1 Frst Mortyagi it•438,43� �3.5% Balloon Payme�t: 1
#2 S�cond Mortyaps i100,000 0.096 H Y�s EnEsr 1
f3 D�f�tr�d Acctuiny i� 0.0% M No Er�x 0
#4 D�hrr�d No Acatal i0 O•0% Prncipal' �
Acau�d HdK�st: i0.00
LOAN#1 : FlRST UAORTGJIGE Intx�st R�te: e•�
Loan Nnort.T�rm: �
Principel: ;1.138.43� Balloon Payment: i0.00
interest RaN: 8.50% MoMhly Psyme�t: i�.00
Amwtlation Period: 300 Loen Slart Mwdh: �
Monthly Paym�M: =11.506.5� Deferre)Period(Mos.): 60
Laan Sfut MaNh: 1 Mnual F�es: 0.�`X'
�narr.sc ony(Mos•): o Etre�ws R.a: a00%
Mnual Swvicioy FNs: 0.000%
�����: g,spy�, LOAN�4: DEFERRED LOAN—NO INiEREST/1�CRUAL
Balloon Payment: 1
�pqp��z; SECOND MORTGAGE H Y�s E�1
M No ErMer 0
Principal: i100,000 Principal: �
lotxest Rats: 8.50% Interest Rst�: 6.00%
Mnortiation P�tiod: 180 Term: DO NOT ENTER t • 120
Monfhly Paym�nt: i�4.74 Baibwi Payment: �
Laan Sfart IiAonth: 1 Mo�thty Paym�nt: t0.00
Inter�st Ooy(GAosJ: O Laan Start 1Aonth: �
Mnual Servic3ny FNs: 0.00094 Deferral P�riod(AAos.): 120
Eifectiw Rab: 8.50% Mnuai F�ea: 0•000%
Effectiw Rab: 8.009G
PrPnared bv:SPRINGSTED Inc. (11—Mar-94 1.1:34:41) C:\KEITH\PROJECTS\FIELDS\NEWAMER�REALPR03.WK1
}
ALL ASSUMPTIONS WERE PROVIDED BY OTHERS ACTUAL PROJECT PERFORMANCE WILL VARY FROM THIS MODEL
. �
ROSEMOUNT-NEINAM�i.9-NO i1F/8.5%/18%IRR -Prefinitnry forDiacussion Purposes ONy- UI��iWRiT1NG ANALYSIS
DATE REVIS�: 11-Mar-D4
NU�6�1 OF UNITS: 18 MAOUNT
LOW INCOME UNTS: �6 SPENT ON PUBLIC PUBLIC
TOTAL P6� LOW INCOME TOTAL 1at 2nd SYPD. DEV. SUBSIDY SUBSIDY INT6iE3T OTHEA
BIACaET UNIT IN�NTB O�T MORT. MORT. EQUTY' ' EpU1TY Gii/►NT(S) �OAN(S) EARNINGS FUPDS
TOTALPflOJECTCOST s2.70D,652 �57,701 t2.7Bo,652 51.536,13D 51,�38,� =100,000 i1,233,219 :0 sp � :p Sp
u� S2Q0.000 S5.4t7 �.00D 514�,299 Si3I,845 Sfl.3B7 i115,767 SO sp sp sp Sp
CONSTAUG710N =1,85B,512 s38.71fl =1,858.512 51,090,9D2 s963.88p i67,103 s827,520 s0 $p sp sp sp
DESIGN R RELAiID =70,200 51,,63 =70,200 i98.W9 :36.�08 :2.535 f31,257 j0 :p sp sp =p
OEVELOPMENTCOSTS 580.2�0 it,85� 58�.2I0 S�W.505 516�283 59.222 S90J35 SO i0 t0 i0 SO
DEVELOPER FEES �20p.000 s•t.167 s200.00p i110,W8 5103,727 =7,221 �.052 s0 sp sp :p Sp
FINANpN(i COSTS =185,000 53,807 =i85,E00 5102,OB0 sfl6,259 58.701 S82,Q10 s0 sp sp sp �p
REQUR�RESERVES i106,100 t2210 5106,100 t58.858 =55.027 t3.B31 i17,2t2 SO sO :p sp sp
CONTINGENCY i0 i0 SO i0 SO t0 i0 SO SD t0 SO SO
ALLOC'.l►iION OF SOURCES OF FUNDS(%) 55.I7% 51.88% 3.01% I1.53% 0.00% 0.00% 0.00% 0.00% 0.00%
/1LL.00ATION OF SOURCE8 PER UNIT i32.000 t20,928 52.083 525,602 i0 SO SO to So
TOTAL N1.00ATION OF SOURCES TO LOW INCOME UNTS s1.536.13� s1.,36,�39 5100,000 i1,233,219 SO f0 :p :q sp
PUBLIC SUB3IDY
IEVERAGE RA710 So.00 So.00 So.00 to.00 So.Oo to.00 to.00 So.00
(!'a/S1 of piblic fuds)
PUBl1C SUBSIDY AS A%= 0.00% VS. �OW INCOME UNT DQ'EI�ITURES AS A%= 100.00%
PROJECT RATE OF RETl1FiN IPDIC/1TOR8: DEVELOPER FEES ANALYSYS:
LENGiH aF HOLD 10 Yeera 15 Years PBi UNT: t/,187
A8%OF TPC: 7.22%
DEVELOPER FEES t200.000 =200.00p AS%OF HARD COST: 0.11%
I�tiR 12.s5x t t.�ax p.nna+co�seruocia,)
IRR 17.d1% 18.00X
Cl1MM.PflE-TA7(CF 2d.�7L �7.8% DEVElOPEq FEES = :200,000 V3, s0 � MAOUNT OF PUBIIC SUBSIOY
WMY.AFTEA-TAI(CF 207.0% 225.7X OEVELOPERFEES = t200,000 VS, s0 @ EOUTYINVESTEDBYDEI/ELOPBi QSITPEAMANENT?j
Prepared by:SPRINGSTED Ina(11-Mar-94 11:35:01) C:�KEITH�PROJECTS�FiELDS�NEWAMER�REALPRO3.WKt