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Community Redevelopment Agency of the CITY OF LOS ANGELES MAR 1 7 2005 DATE/

FILE CODE I

354 South Spring Street I Suite 800 T 213 977 1600 I F 213 977 1665 Los Angeles I California 90013-1258 www.crala.org

CRA File No. PC 1060 Council District: 7 /' Co!ltact Person: David Riccitiello (213) 977-1794 M. de Escontrfas (213) 977-1724

Honorable Council of the City of Los Angeles John Ferraro Councii Chamber 200 N. Spring Street Room 340, City Hall Los Angeles, CA 90013

Attention: John White, Office of the City Clerk

COUNCIL TRANSMin"AL:

Transmitted herewith, is a Board Memorandum adopted by the Agency Board on Mar:h '17, 2005, for City Council review and approval in accordance with the "CorT.munity Redevelopment Agency Oversight Ordinance" entitled:

VARIOUS ACTIONS RELATED TO THE EXECUTION OF AN ACQUISITION AND ?REDEVELOPMENT LOAN AGREEMENT IN AN AMOUNT NOT TO EXCEED ($2,400,000) WITH DECRO OSBORNE APARTMENTS, L.P. FOR THE DEVELOPMENT OF A 51-UNIT FAMILY APARTMENT COMPLEX AT 12360 OSBORNE STREET IN THE EARTHQUAKE DiSASTER ASSISTANCE PROJECT AREA FOR PORTIONS OF COUNCIL DISTRICT 7 (CD7) (EAST VALLEY REGION)

RECOMMENDATION

That the City Council approves the recommendat;ons on the dtt2ched Board Memorandum.

ENVIRONMENTAL REVIEW

The recommended action is statutorily exempt from the California Environmental Quality Act (CEQA), per paragraph 15280 "Lower-Income Housing Projects" of the State CEQA Guidelines. Council Transmittal Page 2

FISCAL IMPACT STATEMENT

There is no fiscal impact to the City's General Fund, as a result of this action.

~hie{~ Executive Officer cc: John White, Office of the City dlerk (1 0 copies- three-hole punched) Lisa Johnson, Scott Eritano, Office of the CAO Paul Smith, lvania Sobalvarro, Office of the CLA Renata Simril, Office of the Mayor Neil Blumenkopf, Office of the City Attorney ' '

THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CA MEMORANDUM 9 DATE: MARCH 17, 2005 PC1060

TO: AGENCY COMMISSIONERS

FROM: ROBERT R. OVROM, CHIEF EXECUTIVE OFFICER

RESPONSIBLE PARTY: MARGARITA H. DE ESCONTRIAS, HOUSING MANAGER MICHAEL CRACRAFT, SENIOR HOUSING FINANCE OFFICER

SUBJECT: VARIOUS ACTIONS RELATED TO THE EXECUTION OF AN ACQUISITION AND PREDEVELOPMENT LOAN AGREEMENT IN AN AMOUNT NOT TO EXCEED ($2,400,000) WITH DECRO OSBORNE APARTMENTS, L.P. FOR THE DEVELOPMENT OF A 51-UNIT FAMILY APARTMENT COMPLEX AT 12360 OSBORNE STREET IN THE EARTHQUAKE DISASTER ASSISTANCE PROJECT AREA FOR PORTIONS OF COUNCIL DISTRICT 7 (CD7) (EAST VALLEY REGION)

COMMITTEE REVIEW: PROJECT REVIEW, MARCH 10,2005

RECOMMENDATIONS

That the Agency:

1. Approve the Conceptual Design (Attachment A) and Site Plan (Attachment A-1 ), as submitted for the proposed construction of a 51-unit family apartment complex and associated community space.

That the Agency, subject to City Council review and approval:

2. Authorize the CEO or designee to execute an Acquisition and Predevelopment Loan Agreement for an amount not to exceed ($2,400,000) and any other related loan documents with Decro Osborne Apartments, L.P., a California limited partnership for an affordable housing project for families located at 12360 Osborne Street, Pacoima, CA.; and

3. Adopt the attached Resolution (Attachment B) making the finding that an economically feasible alternative of financing on substantially comparable terms but without subordination of the Agency Deed of Trust and Covenant is not reasonably available.

SUMMARY

The recommended actions are needed to execute an Acquisition and Predevelopment Loan Agreement in an amount not to exceed $2,400,000 for acquisition and predevelopment costs Osborne Gardens 2 associated with the Osborne Gardens. The project will be located at 12360 Osborne Street, which is located in the Earthquake Disaster Assistance Project Area for portions of Council District 7. (Attachment C).

It should be noted that this project was presented to the Project Review Committee on February 10 and the Committee made several requests from staff which included revising the site plan to relocate the Community Building to a more centralized location on the site and to eliminate a proposed use of the open space as a soccer field. Additionally, Committee members received a draft copy of the proposed Acquisition and Predevelopment Loan Agreement prior to scheduling the project for Board action. Another item of note is that the developer is submitting an application under the MHP program which is due on April 5, 2095.

The apartment complex will provide 51 family units. The proposed unit mix of this complex is as follows: (14) 1 BR, (15) 2 BR's; (21) 3 BR's; and a 2 BR- Mgr unit. All of the units will be rented to extremely low, very low and low income households at the following income levels (24) units at 40% of median income, (14) units at 50% of median income, (13) units at 60% of median income.

Agency funds will be used for various predevelopment related costs, including land acquisition, architectural and engineering, city permits and fees and project financing fees. The preliminary development costs for the housing, community space and parking is estimated at approximately $14,409,000 (Attachment D is the Proposed Predevelopment Budget and Attachment E is the Preliminary Project Proforma).

The following terms and conditions will be included in the Acquisition and Predevelopment Loan Agreement as conditions precedent to the disbursement of any Agency Loan funds associated with acquisition:

1. Developer must provide staff with a market land appraisal from a qualified MAl appraiser which demonstrates (and supports) the market value of the site is at least equal to the proposed purchase price.

2. Developer must provide staff with copies of a preliminary soils investigation from a qualified engineer to demonstrate that the site is not subject to a significant amount of soil exportation and/or infill or seismic conditions.

3. Developer must provide staff with copies of a Phase One Environmental Assessment from a qualified environmental consulting firm to demonstrate that the site is not subject to any significant remediation measures.

4. Developer must provide staff with copies of a preliminary geological report to demonstrate that the site is not subject to significant seismic problems.

5. Developer must provide staff with copies of signed escrow instructions demonstrating that a time extension to close escrow has been obtained.

In addition, the following terms and conditions will be included in the Acquisition and Predevelopment Loan Agreement as conditions precedent to the disbursement of any Agency Loan funds associated with predevelopment costs excluding land acquisition costs: Osborne Gardens 3

6. The developer shall start construction by July 2006, which will be specified in the Schedule of Performance included as an attachment to the predevelopment loan agreement. Noncompliance with the Schedule of Performance will be subject to the remedies described in the loan agreement.

7. The developer will provide evidence of all construction and permanent financing commitments by start of construction, which will occur on or before June 2006.

8. The Agency shall commit no more than ($2,400,000) for development of the Osborne Gardens.

9. The developer shall submit to staff a monthly status report on the status of obtaining additional public funding, progress of architectural plans, etc.

10. Developer must provide staff with copies of its tax returns for the last three years prepared by a qualified CPA firm.

11. Developer's pending Credit Report must reflect that the proposed borrower is not in default of any of its existing loans.

12. Developer must provide staff with evidence of any city entitlement required to build the proposed project.

13. Developer must provide the Agency with all of the standard insurance required for an Agency Loan.

Initial actions.

SOURCE OF FUNDS

The Earthquake Disaster Assistance Project Area for portions of Council District 7 Housing Trust Funds.

PROGRAM AND BUDGET IMPACT

The recommended action will amend the Agency's FY05 Work Program and Budget to create a revised Work Objective PC1060 (Osborne Gardens) for this project. The proposed funding will not impact other existing work objective for the Earthquake Disaster Assistance Project Area for portions of Council District 7. The funds for this project represent using funds that are currently allocated for the Osborne and Foothill housing projects (PC 1060 and PC 1050, respectively).

ENVIRONMENTAL REVIEW

The recommended action is statutorily exempt from the California Environmental Quality Act (CEQA), per paragraph 15280 "Lower-Income Housing Projects" of the State CEQA Guidelines. Osborne Gardens 4

BACKGROUND

The project site is located on the 12000 block of Osborne Street in Pacoima. The total area of the site is 56,913 square feet (1.30 acres). The site has a condominium development to the Northeast, which wraps around it on the Southeast side, a multi-family development to the West across the Osborne Street and relatively under-developed multi-family zoned land with a few single story structures to the Southwest side.

The developer proposes constructing a building along Osborne Street that is a two-story residential structure and blends into its surroundings. The three story structures are situated at the center and rear of the lot away from the street view. Additionally, the site slopes down as it moves further away from Osborne Street. The intent is to completely separate pedestrian and vehicular traffic. A driveway runs along the southwest property line to a parking garage at the rear of the site.

The community room opens up to a garden courtyard that provides an opportunity for indoor­ outdoor use for community and social activities. The complex also has a tot-lot area between the two residential buildings adjacent to the main garden courtyard.

The project is designed with priority given to green building principles. Following is a list of sustainable features which would be considered/used:

1. Pervious driveway paving and vegetated swales for better storm water management (the goal would be for all site rain water to percolate into the ground so that no water runs in to the public storm system). 2. Use of photovoltaic for on-site energy generation for site lighting and hot water. 3. Cool roof for lower heat gains. 4. High performance windows/tight envelope. 5. Energy-star air-conditioning system. 6. Water conservation through low flow fixtures and use of native plants for landscaping. 7. Energy-star appliances. 8. Low VOC paint and sealants. 9. Use of high re-cycled contents in flooring and other building materials. 10. Better indoor air quality through natural ventilation and controlled chemical contents.

The site is currently vacant and is zoned RD 1.5. This zoning would permit constructing approximately one dwelling unit per 1,500 square feet of land. The City's zoning designation would permit the development of approximately thirty-seven (37) units. However, pursuant to City's Zoning Code Section 12.22 A 25.e.3.i, when a project is located within 1500' of a "bus stop along a major bus route" the developer can obtain approval "by right" to increase the density by 35%. Thus, the developer will request a 35% density bonus that will allow the development of 51 units.

Deere Corporation is the proposed developer. Deere was established in 1989 by the late Reverend Clark Harshfield and James P. Shaner with a mission to acquire and preserve affordable rental housing for low-income families and seniors. Prior to forming Deere, Rev. Harshfield was a co-founder and President of Retirement Housing Foundation (RHF), a well­ regarded national nonprofit organization based in Long Beach, California, that develops and operates subsidized senior housing facilities throughout the United States. Mr. Shaner served in senior management for RHF. Through this experience, Rev. Harshfield and Mr. Shaner Osborne Gardens 5 acquired extensive experience in developing, financing, constructing and operating affordable housing projects.

Decro initially focused on the acquisition of troubled properties from the Resolution Trust Corporation (RTC) and other financial institutions. In 1994, Decro was successful in acquiring Brandywood Apts. from the RTC, an 88-unit property located in Orlando, Florida. Thereafter, Decro targeted properties in Long Beach, California because Rev. Harshfield and Mr. Shaner had become familiar with the local housing market during their tenure at Retirement Housing Foundation. Long Beach had experienced a number of foreclosures in apartment buildings, and the city had adopted a housing policy emphasizing the acquisition and rehabilitation of existing projects rather than new construction. With the financial support of the City's Housing Services Bureau, Decro acquired and rehabilitated 13 apartment projects in Long Beach between 1994 and 2000. In 2004, Decro refinanced 12 of these properties through the use of tax-exempt bonds and low-income housing tax credits in a transaction valued at approximately $28 million.

Decro also has extensive experience within the City of Los Angeles. Following the Northridge earthquake in 1994, Decro acquired and rehabilitated two properties in the San Fernando Valley- a 38-unit low-income housing tax credit project in North Hills and another in Canoga Park. Both projects were financed with support provided by the Los Angeles Housing Department (LAHD). Over the past year, Decro has partnered with St. Anne's Maternity Home and 1010 Development Corporation on three projects -- St. Anne's Transitional Housing and Childcare Facility, Casa Shalom and James Wood Apartments -- which are each located in or near downtown Los Angeles. Each project has also been the beneficiary of financial support from LAHD. Today, Decro owns 22 affordable housing projects either directly or through low­ income housing tax credit limited partnerships. The organization has syndicated its projects with Alliant, Boston Capital, Enterprise Social Investment Corporation, National Equity Fund, Simpson Housing Solutions, and The Related Companies.

In addition, the following supportive services will be provided on-site:

• Computer technology classes • Training in basic financial literacy • ESL classes • After-School Tutorial • Parenting Classes

The supportive service provider has not yet been identified.

The preliminary development budget for this project based upon schematic plans is as follows:

Preliminary Development Cost Estimates Hard Construction Costs-Housing $8, 373,018 Indirect Costs $ 1,635,123 Financing Costs $1,305,112 Arch Fees, City Permits $ 916,150 Land $2,025,000 Deferred Developer Fee $ 154.500 Total Development Costs $14,408,960 Osborne Gardens 6

Proposed Source of Construction Funding Tax-Exempt Primary Loan $7,200,000 CRA Second Mortgage $ 2,400,000 (LAHD Loan) $2,754,000 Costs Deferred Until Completion $1,299,995 Tax Credit Equity $ 754,965 Total Construction Sources $14,408,960

Permanent Loan $ 1,350,000 CRA- $2,400,000 Affordable Housing Trust LAHD Loan $2,754,000 MHP Loan $2,742,452 General Partner Equity $ 538,000 Developer Fee $ 154,500 Tax Credit Dev. Equity $4,470,009 Total Permanent Sources $14,408,960

There following is the proposed unit and income mix:

(6 1BR's @ 40% of median income (5 1BR's @ 50% of median income (3 1BR's @ 60% of median income (8) 2BR's @ 40% of median income (5 2BR's @ 50% of median income (3 2BR's ( ~ 60% of median income (10) 3BR's GD. 40% of median income (4 3BR's G~ 50% of median income (7) 3BR's G~ 60% of median Income

The Agency's Predevelopment and Acquisition Loan will bear a simple interest rate of 3% for a term of two years. The Housing Covenants shall have a term of fifty- five (55) years.

Staff will return to the Agency Board to request authorization to convert the Acquisition and Predevelopment Loan into a Construction and Permanent Loan Agreement and other related actions required for the construction and permanent financing later this year.

Tax-exempt bonds issued by the Agency will provide necessary construction and permanent loans. The bonds will be secured in a first lien position and will be credit enhanced by or sold to an institutional lender such as Citibank or US Bank. The Agency's Acquisition and Predevelopment Loan will be secured by a first deed of trust on the fee title interest of the site and assignment of architectural plans and contracts and any other engineering reports paid for by Agency funds. Upon start of construction, the Agency's Construction Loan will be secured by a second deed of trust. Upon conversion to permanent financing, the Agency's Permanent Loan will be secured by a third deed of trust, junior to the lien of the tax-exempt bonds in first position and the state's MHP loan in second position. The Developer will receive fifty percent of the residual receipts and the Agency, LAHD and MHP will split the remaining fifty percent of residual receipts on a pro-rata basis.

The developer will cause the payment of prevailing wages and will comply with the Agency's Living Wage, Contractor Responsibility, Service Worker Retention, Equal Benefits, and .. Osborne Gardens 7

Affirmative Action and Equal Opportunity policies, design standards and all other Agency development requirements.

The fact that this proposed project will be subject to occupancy by households ranging from very-very low to low-income (40% to 60% of median income) makes it unlikely that the Agency will receive any significant payment of residual receipts. The development costs appear to be consistent with similar prevailing wage, low-income housing developments. This project is not subject to any known extraordinary City entitlement costs to construct this project.

Councilman Alex Padilla is aware of and supports this project.

Robert R. Ovrom Chief Executive Officer

By:

Attachment A Conceptual Design (5 pages) Attachment A-1 Development Site Plan Attachment B Economically Feasible Resolution Attachment C Location Map Attachment D Proposed Predevelopment Budget Attachment E Preliminary Project Pro forma

There is no conflict of interest known to me, which exists with regard to any Agency officer or employee concerning this action. ATTACHMENT A \ --~

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RENDERING

PROJECT: CLIENT: FSY Architects. OSBORNE GARDENS DECRO CORPORATION (A 51 .UNIT DEVELOPMENT) 3235 San Fernando Rd lt2C los AngeleS. CA 90065 12360W OSBORNE ST 446 SO. ANAHEIM HILLS RD. SUITE 105 t 323.255.4343 t. 323.255.4846 PACOIMA.CA ANAHEIM HILLS. CA 92870 ~ web: ~.fsyan:tiledS.ccm March 04, 2005 \, " \,

"0il'& 01! 1-~ "'~ "'~.. ""' ~ FIRST FLOOR PLAN ""' rrrrt k "' PROJECT: CLIENT: F S Y Architects. OSBORNE GARDENS DECRO CORPORATION lA 51 .UNIT DEVELOPMENT) 3235 San F&mando Ra tr2C Los Angeles, CA. 90065 12360 W OSBORNE ST 446 SO. ANAHEIM HILLS AD- SUITE 105 t 323.255.4343 t: 323.255.4848 PACOIMA.CA ANAHEIM HILLS. CA 92870 ~ web: WWN fsyarchileds.com " March 04, 2005 "" "" 0& "'· <90 '~'-~< "'"''1l "'~....

~ SECOND FLOOR PLAN "" naTo- k "" "-,

PROJECT: CLIENT: OSBORNE GARDENS DECRO CORPORATION F S Y A r c h i I e c I s. (A 51-UNIT DEVELOPMENT) 3235 San Fernando Rei tt2C Los An!JBie:S, CA 90065 12380 W OSBORNE ST 446 SO_ ANAHEIM HILLS RD. SUITE 105 t 323.255.4343 t: 323.255.4848 " PACOIMA,CA ANAHEIM HILLS, CA 92870 web: ~.lsyalchi!eds.cun March 04, 2005 n "' ''\ ""' 0& <90 '?""' "'

PROJECT: CLIENT: OSBORNE GARDENS DECRO CORPORATION F S Y A r c h i t e c l s. (A 51-UNIT DEVELOPMENT) 3235 San Femando Rd. JJ2C Los Angeles, CA. 90065 12380 W OSBORNE ST 448 SO. ANAHEIM HILLS RD. SUITE 105 t 323.255.4343 f: 323.255.4848 " PACOIMA,CA AP>W-IEIM HILLS. CA 92870 ~ web: WWN.~leds..com March 04, 2005 I ,..... ~-T 1a.. • I 1 h C u-,-d I

UNIT-C UNIT-B UNIT-A (1,127 S.F) (820 S.F) (631 S.F)

UNIT PLAN 1/16"=1'..0"

PROJECT: CLIENT: OSBORNE GARDENS DECRO CORPORATION F S Y A r c h i I e c I s. (A. 51 ..UNIT DEVELOPMENT) 3235 San FemanOORd. t2C Los Angeles. CA 90065 12360WOSBORNEST 44650. ANAHEIM HILlS RD. SUITE 105 t 323.255.4343 t. 323.255.4848 PACOIW..CA ANAHEIM HIUS. CA 92870 web: WM~~Jsyarchiteds.com March 04, 2005 m ATTACHMENT A-1 PROJECT SUMMARY

ADDRESS: 12360 W OSBORNE ST. PACOIMA, CA LOT AREA: 56,782 S.F UNIT SUMMARY OPEN SPACE TYPE NUMBER & UNITS AREA OF UNIT 3BR/2BA 23 UNITS 1,127S.F REQUIRED 2BRI2BA 15UNITS 820S.F 3BR: 23 UNITS X 175 S.F 1BRI1BA 14 UNITS 631 S.F 2BR: 15 UNITS X 125 S.F 1BR: 14 UNITS X 100 S.F TOTAL• 7,300 S.F BUILDING SUMMARY PARKING SUMMARY PROVIDED RESIDENTIAL UNITS = 47,055S.F REQUIRED: 51 UNITS X 1 =51 SPACES CENTRAL GARDEN: 8,927 S.F COMMUNITY ROOM= 1,127S.F PROVIDED: TOT LOT: 991 S.F LEARNING CENTER = 582 S.F SURFACE I CARPORT= 16SPACE COURT YARD 1&2: 3,409 S.F MASSING STUDY RENDERING LAUNDRY ROOM = 299 S.F GARAGE= 35SPACE SIDE YARD 1&2: 2,457 S.F CIRCULATION • 5,778 S.F REAR YARD: 1,695 S.F TOTAL • 54,841 S.F TOTAL= 51 SPACE TOTAL• 17,479 S.F (30% OF LOT AREA)

""' \'\ ' \' WI SOlAR PANELS 0&

PROJECT: CLIENT: F S Y A r c h i t e c t s. OSBORNE GARDENS DECRO CORPORATION (A 51-lJNIT DEVELOPMENT) 3235 San FemaOOo Rd. tt2C Los An~. CA 90065 12360 W OSBORNE ST <146 SO_ ANAHEIM HilLS RD. SUITE 105 t 323.255.4343 f: 323.255_4848 "' PACOIMA.CA ANAHEIM HilLS. CA 92870 ~ web: VWN.fsyarchi!eds.com March 04, 2005 ATTACHMENT B THE COMMUNITY t-•.EDEVELOPMENT AGENCY OF THE l-1 fY OF LOS ANGELEs

ATTACHMENT B RESOLUTION NO. _____

A ECONOMICALLY FEASIBLE RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA REGARDING THE SUBORDINATION OF ITS USE RESTRICTIONS PURSUANT TO SECTION 33334.14 OF THE COMMUNITY REDEVELOPMENT LAW.

WHEREAS, the Community Redevelopment Agency of the City of Los Angeles, California ("Agency") proposes to enter into an Acquisition and Predevelopment Agreement with Decro Osborne Apartments, L.P., a California non-profit corporation ("Developer") pursuant to which the Agency will provide financial assistance to the Developer for the purpose of developing housing that is affordable to very-low and low-income persons or families (the "Rental Project"); and

WHEREAS, the Loan Agreement requires covenants to be recorded against the Rental Project placing certain limits on the maximum rents that can be charged, and the maximum income that can be earned by tenants qualified to rent such housing (the "Income and Rent Restrictions"); and

WHEREAS, the Developer has obtained commitments of financing from a lender conditioned upon the subordination of the Agency's Income and Rent Restrictions; and

WHEREAS, there has been presented to the Agency evidence sufficient on which to find that an economically feasible alternative method of financing the Rental Project on substantially comparable terms and conditions, but without subordination, is not reasonably available.

NOW, THEREFORE, THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. The Agency hereby finds that an economically feasible alternative method of financing the Rental project on substantially comparable terms and conditions, but without subordination, is not reasonably available.

2. The Agency hereby authorizes the Chief Executive Officer of the Agency, or such other official of the Agency as the Chief Executive Officer may designate, to take such actions as may be necessary in order to subordinate the Agency's Deed of Trust and housing covenants to the lien of the lender providing financing for the Rental Project, but only upon receipt by the Chief Executive Officer or such designee of written commitments from such lender, reasonably designated to protect the Agency's investment in the event of default, such as the following:

(a) a right of the Agency to cure a default on the loan;

(b) a right of the Agency to negotiate with the lender after the notice of default from the lender; (c) an agreement that if prior to foreclosure of the loan, the Agency takes title to the Rental Project and cure the default on the loan, the lender will not exercise any right of title to the Agency;

(d) a right of the Agency to purchase the Rental Project from the Developer at any time after a default on the loan.

ADOPTED: ______ATTACHMENT C

LOCATION MAP

OSBORNE GARDENS

/ / ·:,, ,.,. , , / / " 'v

12360 W. Osborne Street Pacoima, California 91331

APN# 2536-015-901 ATTACHMENT D ATTACHMENT D

PREDEVELOPMENT BUDGET

Site Acquisition $2,000,000 Appraisal & Closing Costs $ 25,000 Survey/Soils/Zoning $ 22,500 Environmental Update $ 5,000 Legal $ 25,000

Architectural & Engineering ~ 322.500 Total $2,400,000 Osborne Gardens 2

ATTACHMENT E Venolon$ AnACHMEHTE VERY IMPORTANT PAGE: ALL ITEMS MUST BE COMPLETED

fCIIEil on Unl! or F!51

CBTS PROJECT I. CITY CONTRACT f/S. I NEW = PROJECT EllhLbfi2·R•ntSehedule B.A<:q...,•R•hol>) N..-Con...-.-.. ""a ., CenausTrld 10.7.02 "7 CovenentTerm .. 2005Round 1 HTF M11n Levereg1ng Sou rca MHP I CRA I L..AHD E'llmllt•Complebon AJ.•n•or•P•rcel"/1 25311~Hi-&01 De.. October-<15 AJI"orebtlrtylerm 55 STAFF INFO Fn1nctal Devalof>rr-ntOII'"tc.r Neme and Wt4 dog.ts ot Soc11l S.Curcy Number (c.ode) PrDJIIImManiiRotr/Code SergloBanoj11 RCSnam&lcocle C~AilorMyn~~r~~ TO BE ASSIGNED OWNER/BORROWER INFO ·- PROJECT DEVELOPER OecroCorp. IWieloperPhone/1: 7UI-i74-<1128 PRINCIPALS/OWNER NAME Ta~ ID II Addrau: 44116. Anah4:1m Hill• Rd.,l1015, Anaheim H1ll1, CA 8280T Conlllc!PII"Ion Jim Shaner 714-874-0463 MUng Addra1: 441 S. Anaheim Hlll1 Rd.,l105 Cf")'.SI.I... Zipcoodl Anaheim HiU1, CA 12807 l.a11115t.ltw;(L.i"nhdPel1nlrlhtp.Non-proftE.) UmitRdPartnenhlp

TOTAL.UNITS IIACANCYRATE 5.00%" TOTAl LAND SQUARE FOOTAGE 56.914 TOTAL BUU..DING SQUARE FOOTAGE 50,325 RENT INCOME RENT INCOME INFLATION FACTOR ""·""2.50% COMMERCIAL INCOME $0 COMMERCIAL INCOME INFLATION FACTOR 2.50'!1. LAUNDRY & MISC. INCOME/YEAR LAUNDRY & MJSC.INCO~E INFLATION FACTOR """"2.50% INTEREST INCOME 0 INTEREST INCOME INFLATION FACTOR 0.00% OPERATING EXPENSES/UNITfi'EAA $3.712 OPERATING EXPENSE INFLATION FACTOR 3.50% OPERATING RESERVE 0.00'!1. REPLACEMENT RESERVE $717 LAND & BUILDING ACQUISITION $2.025.000 DEVELOPMENT COSTS (NIC Land & Bldg.) $12,383,960 TOTAL DEVELOPMENT COSTS $14.405.960 TOTAL CONSTRUCTION COSTS SII.37J.011S OFF-SITE IMPROVEMENT COSTS $110,000 lAHD PERMANENT LOAN AMOUNT $2.754.000 LAHOLO.IJ\IRATE ...... CONVENTIONAL LOAN AMOUNT 1.350.000 CONIIENTIONAI... LOAN RATE ,,.. CONVENTIONAL LOAN YEARS ,. CONIIENTIONAL LOAN TYPE AMORTIZED DEBT COVERAGE RATIO ()[::1) X• 120 AHPSUBSIOY 0 TAX CREDIT PROCEEDS (band on reoque•l) 54.470.009 TAX CREDIT MARKET VALUE ($1.00) SO.ll79 ATTACHMENT E DEVELOPMENT COSTS (back to menu) Project Name: Osborne Family Apts. Project Address: 12360 W. Osborne St, LA 91331 Developer: Decro Corp.

Number of Dwelling Units: 51 Gross Building Area (sf) 50,325 Gross Land Area (af) 56,914 Gross Non·Resldentlal Floor Area 2,500

TOTAL HOUSING Commercial $PER $PER SF $PER SF %OF COSTS COSTS COSTS UNIT BUILDING LAND TOTAL

1. LAND COSTS: Purchase Price (a) $2,000,000 $2.000,000 $0 $39,216 $39.74 $35.14 13.88% Closing Costs (b) $22.500 $22,500 $0 $441 $0.45 $0.40 0.16% Appraisal (c) $2,500 $2,500 $0 $49 $0.05 $0.04 0.02% Haloing Costs (d) $0 $0 $0 $0 $0.00 $0.00 0.00% TOTAL LAND COSTS $2,025,000 $2,025,000 $0 $39,706 $40.24 $35.58 14.05%

2. FEES/PERMITS & STUDIES Building Fees and Permits (a) $442.000 $442,000 $0 $8,667 $8.78 $7.77 3.07% Surveys/SoilsNariance (b) $22.500 $22,500 $0 $441 $0.45 $0.40 0.16% Environmental DocumentationfToxic Report (c) $5,000 $5,000 $0 $98 $0.10 $0.09 0.03% Arch. & Engineering Fees Design (d) 585% $411,650 $411,650 $0 $8,072 $8.18 $7.23 2.86% Reimbursable (e) $35 000 $35,000 $0 $686 $0.70 $0.61 0.24%

Subtotal: $446 650 $446,650 $0 $8 758 $8.68 $7.85 3.10% TOTAL FEES/PERMITS & STUDIES $916,150 $916.150 $0 $17,964 $18.20 $16.10 6.36%

3. DIRECT CONSTRUCTION COSTS: Demolition (a) So $0 $0 $0 $0.00 $0.00 0.00% Toxic Abatement (b) $0 $0 $0 $0 $0.00 $0.00 0.00% Off-Srte Improvements (c) $110,000 $110,000 $0 $2,157 $2.19 $1.93 0.76% Onsrte Improvements (d) $232,597 $232,597 $0 $4,561 $4.62 $4.09 1.61% Landscaping/liTigation System (e) $200,000 $200,000 $0 $3,922 $3.97 $3.51 1.39% Parking

4. INDIRECT CONSTRUCTION COSTS Developer's Fee (a) $1,295,500 $1,295,500 $0 $25,402 $25.74 $22.76 8.99% Deferred Developer Fee {b) $154 500 $154 500 $0 $3 029 $3.07 $2.71 1.07% Subtotal: $1,450,000 $1,450,000 $0 $26,431 $28.81 $25.48 10.06% Development Consultant (c) $0 $0 $0 $0 $0.00 $0.00 0.00% Construction Manager (d) $59,400 $59,400 $0 $1,165 $1.18 $1.04 0.41% Builders Risk/Liability Insurance (e) $100,000 $100,000 $0 $1,961 $1.99 $1.76 0.69% Real Estate Taxes (f) $24,300 $24.300 $0 $476 $0.48 $0.43 0.17% Legal- Organizational (g) $25,000 $25,000 $0 $490 $0.50 $0.44 0.17% Legal- Real Estate & Syndication (h) $35,000 $35,000 $0 $686 $0.70 $0.61 0.24% Post Construction Audit (i) $15,000 $15,000 $0 $294 $0.30 $0.26 0.10% Relocation 0) $0 $0 $0 $0 $0.00 $0.00 0.00% Indirect Construction Costs Contingency (k) $80 923 $80,923 $0 $1 587 $1.61 $1.42 0.56% TOTAL INDIRECT CONSTRUCTION COSTS $1,789,623 $1,789,623 $0 $35,091 $35.56 $31.44 12.42%

5. RENT-UP COSTS Marketing/Advertising Expense (a) $50,000 $50,000 $0 $980 $0.99 $0.68 0.35% Lease--up Reserve (b) $25,000 $25,000 $0 $490 $0.50 $0.44 0.17% CapitaliZed Operating Reserve (c) $99,995 $99,995 $0 $1,961 $1.99 $1.76 0.69% Common Area Furnishings (d) $100 000 $100,000 $0 $1,961 $1.99 $1.76 0.69% TOTAL RENT-UP/MARKETING COSTS $274,995 $274,995 $0 $5,392 $5.46 $4.83 1.91%

6. FINANCING COSTS Construction Loan Interest {a) $532,224 $532,224 $0 $10,436 $10.58 $9.35 3.69% Construction Loan Fees (b) $72,000 $72,000 $0 $1,412 $1.43 $1.27 0.50% Appraisal & Market Study $12,500 $12,500 $0 $245 $0.25 $0.22 0.09% Constr. Lender Legal (d) $50,000 $50,000 $0 $980 $0.99 $0.86 0.35% Permanent Loan Fees/Closing Costs (e) $298,500 $298,500 $0 $5,853 $5.93 $5.24 2.07% Tax Credit Allocation Fee {f) $29,950 $29,950 $0 $587 $0.60 $0.53 0.21% Syndication Costs (g) $0 $0 $0 $0 $0.00 $0.00 0.00% Predevelopment Loan lnteresVCosts (h) $0 $0 $0 $0 $0.00 $0.00 0.00% Title and Recording (Constr.IPerm.) (i) $35,000 $35 000 $0 $686 $0.70 $0.61 0.24% TOTAL FINANCING COSTS $1,030,174 $1,030,174 $0 $20,199 $20.47 $18.10 7.15%

7. SUBTOTAL DEVELOPMENT COSTS $12,383,960 $12,383,960 $0 $242,823 $246.08 $217.59 85.95% TOTAL LAND COSTS $2,025 000 $2 025 000 $0 $39 706 $40.24 $35.58 14.05% TOTAL DEVELOPMENT COSTS $14,408,960 $14,408,960 so $282,529 $286.32 $253.17 100.00% ATTACHMENT E RENT SCHEDULE (back to menu)

Project Name: Osborne Family Apts. Project Address: 12360 W. Osborne St., LA 91331 Developer Name: Decro Corp. 10-Mar-05

Monthly Monthly Monthly Total Total Total Unit Percent Gross Utility Net Proposed Number Monthly Annual #of T~ee Median Rent Allow. Rent Rent of Units Rent Rent~$~ Bdrms.

SINGLE ROOM OCCP 30% $0 $0 $0 0 $0 $0 0 40% $0 $0 $0 0 $0 $0 0 45% $0 $0 $0 0 $0 $0 0

EFFICIENCY 30% $0 $27 ($27) 0 $0 $0 0 45% $0 $27 ($27) 0 $0 $0 0 50% $0 $27 ($27) 0 $0 $0 0

ONE BEDROOM 40% $446 $38 $408 $408 6 $2,448 $29,376 6 50% $558 $38 $520 $520 5 $2,600 $31,200 5 60% $669 $38 $631 $631 3 $1,893 $22,716 3

TWO BEDROOM 40% $536 $50 $486 $486 8 $3,888 $46,656 16 50% $670 $50 $620 $620 5 $3,100 $37,200 10 60% $804 $50 $754 $754 2 $1,508 $18,096 4

THREE BEDROOM 40% $619 $60 $559 $559 10 $5,590 $67,080 30 50% $773 $60 $713 $713 4 $2,852 $34,224 12 60% $928 $60 $868 $868 7 $6,076 $72,912 21

FOUR BEDROOM 30% $0 $73 ($73) 0 $0 $0 0 50% $0 $73 ($73) 0 $0 $0 0 60% $0 $73 ($73) 0 $0 $0 0

FIVE BEDROOM 35% $0 $101 $407 0 $0 $0 0 50% $0 $101 $681 0 $0 $0 0 60% $0 $101 $835 0 $0 $0 0

MANAGER'S - 2BR 60% $804 $50 $754 $754 $754 $9,048 2

Total Number of Units 51 $30,709 $368,508 109

Units @ or below 50% income criteria 38 74.51% of total units Units @ 60% criteria 13 25.49% of total units Non-LIHTC Qualifying Units 0 0. 00% of total units ATTACHMENT E OPERATING EXPENSES (back to menu)

Project Name: Osborne Family Apts. Project Address: 12360 W. Osborne St.• LA 91331 Developer: Decro Corp. 10-Mar-05

ANNUAL MONTHLY PER UNIT UNIT/MO. %TOTAL

1. MANAGEMENT Contract Management Fee (a) $21,420 ~1,785.00 ~420.00 $35.00 11.32% TOTAL MANAGEMENT $21,420 $1,785.00 $420.00 $35.00 11.32%

2. ADMINISTRATION Marketing (a) $1,080 $90.00 $21.18 $1.76 0.57% Audit (b) $8,000 $666.67 $156.86 $13.07 4.23% Legal (c) $10,000 $833.33 $196.08 $16.34 5.28% Office Expenses (d) $15,000 ~1,250.00 $294.12 ~24.51 7.92% TOTAL ADMINISTRATION $34,080 $2,840.00 $668.24 $55.69 18.00%

3. SALARIES AND BENEFITS On-Site Manager/Asst. Manager (a) $36,000 $3,000.00 $705.88 $58.82 19.02% Maintenance Personnel (b) $15,500 $1,291.67 $303.92 $25.33 8.19% Janitorial Personnel (c) $8,000 $666:67 $156.86 $13.07 4.23% Case Manager (d) $0 $0.00 $0.00 $0.00 0.00% Housekeepers (e) $0 $0.00 $0.00 $0.00 0.00% Payroll Txs, Ins & Wkr. Comp. (f) $10,000 ~833.33 ~196.08 ~16.34 5.28% TOTAL SALARIES $69,500 $5,791.67 $1,362.75 $113.56 36.71%

4. MAINTENANCE Supplies (a) $3,500 $291.67 $68.63 $5.72 1.85% Repairs Contract (b) $12,000 $1,000.00 $235.29 $19.61 6.34% Pest Control (c) $1,200 $100.00 $23.53 $1.96 0.63% Grounds Contract (d) $6,000 $500.00 $117.65 $9.80 3.17% Interior Painting (e) $4,500 $375.00 $88.24 $7.35 2.38% Other (f) $0 ~0.00 ~0.00 ~0.00 0.00% TOTAL MAINTENANCE $27,200 $2,266.67 $533.33 $44.44 14.37%

5. UTILITIES NOT PAID BY TENANTS Trash Removal (a) $5,000 $416.67 $98.04 $8.17 2.64% Electricity (b) $4,500 $375.00 $88.24 $7.35 2.38% Water/Sewer (c) $10,000 $833.33 $196.08 $16.34 5.28% Gas (d) $5,000 ~416.67 ~98.04 ~8.17 2.64% TOTAL UTILITIES $24,500 $2,041.67 $480.39 $40.03 12.94%

6. INSURANCE Property & Liability Insurance (a) $10,000 ~833.33 ~196.08 $16.34 5.28% TOTAL INSURANCE $10,000 $833.33 $196.08 $16.34 5.28%

7. TAXES Real Estate Taxes (a) $1,000 $83.33 $19.61 $1.63 0.53% Business Tax and License (b) $1,600 ~133.33 ~31.37 ~2.61 0.85% TOTAL TAXES $2,600 $216.67 $50.98 $4.25 1.37%

8. OTHER Linens & Amenities (a) $0 $0.00 $0.00 $0.00 0.00% Support Services (b) $0 $0.00 $0.00 $0.00 0.00% Other: Commercial Area Expenses $0 ~0.00 ~0.00 ~0.00 0.00% TOTAL OTHER $0 $0.00 $0.00 $0.00 0.00%

TOTAL OPERATING EXPENSES $189,300 $15,775.00 $3,711.76 $309.31 100.00% ATTACHMENT E CASH FLOW ANALYSIS

Project Name: Osborne Family Apts. Project Address 12360 W. Osborne St., LA 91331 Developer Name: Decro Corp. 10-Mar-05

ASSUMPTIONS: Total Par Unit Percent Residential Income lnfl. Rate: 2.50% Unit Operating Exp: 3.712 LAHD loan, Rate: 5.00% TOTAL DEV. COSTS: $14,408,960 $282.529 100.00% laundry & Misc. lnfl. Factor: 2.50% Unit Operating Resv: 0.00% Conventional Loan Rate: 6.25% Max Conven. Loan: S1.350.000 $26.471 9.37% Operating Expense lnft. Factor:· Residential 3.50% Replacement Reserve I Unit: 717 Conventional Loan Yrs: 30 MHP loan $2.742.451 S53.774 19.03% Operating Expense lnfl. Factor:· Commercial 2.00% Reserve Trend Rate: 0.00% Conventional Loan Type: AMORTIZED CRALA S2.400.000 $47.059 16.66% Vacancy Rate· Residential 5.00% Laundry IndY ear: 3.060 Debt Coverage Ratio: 1.20 Tax Credit Proceeds: $4.470.009 $87.647 31.02% Vacancy Rate • Commercial 20.00% Real Estate Taxes: 2.00% Accum 15 yr Op Reserv: $0 GP Equi1y $538.000 S10.549 3.73% Number of Units: 51 Capitalized Op Reserv: $0 LAHD Gap Loan: $2.754.000 $54.000 19.11% Deferred Developer Fee $154.500 $3.029 1.07%

YEAR1 YEAR2 YEAR3 YEAR4 YEAR 5 YEAR 6 YEAR7 YEAR a YEAR9 YEAR 10 YEAR11 YEAR 12 YEAR 13 YEAR 14 YEAR 15

Residenliallncome $368.508 S377.721 $387.164 S396.843 $406.764 $416.933 $427,356 $438.040 $448.991 $460.216 $471.721 $483.514 $495.602 $507.992 $520.692 Commercial Income so $0 $0 $0 so so $0 $0 so $0 so $0 $0 $0 $0 laundry & Miscellaneous $3 060 $3.137 ______U_2J5 $3.295___ $3.378 $3.4.§2__ $3.549 $'1..637.- $3.728 .. $3.822 $3.917 $4.015 $4.115 $4.218 $4.324 GROSS INCOME $371,568 $380,857 $390,379 $400,138 $410,142 $420,395 $430,905 $441.678 $452,720 $464.038 $475.638 $487.529 $499.718 $512.211 $525.016 Vacancy· Commercial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Vacancy ·Residential ($18 578) ($19 043) ($19 519) ($20~®7! ($20 507) ($2).020) ($21 545.1__($22 084) ($22 636l ($23 202) ($23.7821 __l$~3761 ($24.986)___ CS25.6111 ($26.251) EFFECTIVE GROSS INCOME $352,990 $361,814 $370,860 $380,131 $389,634 $399,375 $409,360 $419,594 $430,084 $440,836 $451,857 $463,153 $474,732 $486,600 $498,765

Operating Expenses • Residential ($188.300) (S194.891) ($201.712) ($208.772) ($216.079) ($223.641) ($231.469) ($239.570) ($247.955) ($256.634) ($265.616) ($274.912) ($284.534) ($294.493) ($304.800) Operating Expenses - Commercial $0 $0 $0 $0 $0 $0 $0 $0 $0 so $0 $0 $0 $0 so Real Estate Taxes ($1.000) ($1.020) ($1.040) ($1.061) (S1.082) ($1.104) ($1.126) ($1.149) ($1.172) ($1.195) ($1.219) ($1.243) ($1.268) ($1.294) ($1.319) Operating Reserve $0 $0 $0 $0 $0 $0 $0 $0 $0 so $0 $0 $0 $0 $0 Replacement Reserve ($36 584) !536 584) C$36 584) ($36 584) C$36 584) (S3M84) C$36 584l ($36 584) ($36 5~ ($36 5841 ($36.5841 ___l};l_M84l C$36.5841___ ($36.5841 CS36.584l NOI BEFORE DEBT SERVICE $127,105 $129,320 -$131,523 $133,714 --$135,889 $138,046 $140,181 $142,291 $144,373 $146,423 $148,438 $150,413 1152,345 1154,229 1156,061

Cash Available for Debt Service $105.921 $107.766 $109.603 $111.428 $113.241 $115.038 $116.817 $118.576 $120.310 $122.019 $123.698 $125.344 $126.954 $128.524 $130.051 Perm Loan Debt Service $99.746 S99.746 S99.746 $99.746 $99.746 $99.746 S99.746 $99.746 $99.746 $99.746 $99.746 $99.746 $99.746 $99.746 $99.746 MHP Debt Service $11518 $11.518 $11518 $11.518 ___111~.18 $11.5_18__ $11.518 $11ML__ $11.518 _$11.518 $11.518 $11.518 $11.518 S11.518 $11.518 Debt Coverage Ratio · Combined 1.14 1.16 1.1s 1.20 1.22 1.24 t.26 1.28 t.3o 1.32 1.33 1.35 1.37 1.3!r---,-..o OCR · First Mortgage 1.27 1.30 1.32 1.34 1.36 1.38 1.41 1.43 1.45 1.47 1.49 1.51 1.53 1.55 1.56 OCR · First Mortgage (without Commercial) 1.27 1.30 1.32 1.34 1.36 1.38 1.41 1.43 1.45 1.47 1.49 1.51 1.53 1.55 1.56

CASH FLOW AFTER DEBT SERVICE 15,841 18,055 20,259 22,450 24,625 26,781 28,916 31,026 33,108 35,158 37,173 39,149 41,081 42,965 44,797 Deferred Developer Fee 5,841 8,055 10,259 12,450 14,625 16,781 18,916 21,026 23,108 23,439 0 0 0 0 0 Partnership Related Charges and Fee 10.000 10.000 10.000 10.000 10.000 10.QQP__ 10.000 t!LO_QO___ 10.000 10.000 10.000 10.000 10.000 10.000 10.000 CASH AVAILABLE FOR DISTRIBUTION $0 $0 $0 $0 so $0 $0 $0 $0 $1.719 $27.173 $29.149 $31.081 $32.965 $34,797

LAHD • Prorata share of 50% of Residual Receipts (shared w CRALA & MHP) Annual Payment (50%) $0 $0 $0 $0 $0 $0 $0 $0 $0 S860 $13.587 $14.574 $15.540 $16.482 $17.398 Annual Interest Payment Due $137 700 $.137.700 5137 700 $137.700~00. $137.7Q!L__ $137.700 $13UQ!L. $137.700 $137.700 $137.700 $137.700 $137.700 $137.700 $137.700 Cumulative LAHD loan Balance $2.891.700 $3.029.400 $3.167,100-$3.304.800 $3.442.500 $3.580,200 $3.717.900 $3.855.600 $3.993.300 $4.130.140 $4.254.254 $4.377.380 $4.499.539 $4.620.757 $4.741.058

BORROWER- 50% OF CASH AVAILABLE FOR DISTRIBUTION Annual Cash lo Borrower $0 $0 $0 $0 $0 $0 $0 $0 $0 $860 $13.587 $14.574 $15,540 $16.482 $17.398 Cumulative Cash to Borrower SO so SO SO so So SO SO so 5860 514 446 529 020 544 561 561 043 578 442 ATfACHMENTE CASH FLOW ANAlYSIS (back to menu) ,- '

. ProjeCt Nome: Osbome Family ApiS. . Piofect Address 12360 W. OsbOrne St., LA 91331 Developer Name: o.cro Corp. 10-Mar-05

ASSUMPTIONS: Total PorUnlt Percent Residential Income Inn. Rate: 2.50% Unit Operaling Exp: 3,712 LAHD Loan, Rate: 5.00% TOTAL DEV. COSTS: $14,40!,960 $282,529 100.00"1. Laundry & Misc. lnfl_ Factor: 2.50% Unit Operating Resv: 0.00% Conventional Loan Rate: 6.25% Max Conven. Loan: $1,350,000 $26.471 9.37% Operating Expense Inn. Factor: • Residential 350% Repl. Res. I Unit: $717 Conventional Loan Yrs: 30 MHP Loan $2,742,451 $53,774 19.03% Operating Expense tnn. Factor: -Commercial 2.00% Reserve Trend Rate: 0.00% Conventional Loan Type: AMORTIZED CRAlA $2,400,000 $47.059 16.66% Vacancy Rate- Residential 5.00"k Laundry Inc/Year: 3,060 Debt Coverage Ratio: 1.20 Tax Credit Proceeds: $4,470,009 $67.647 31.02% Vacancy Rate - Commercial 20.00% Real Estate Taxes: 2.00% Accum 15 yr Op Reserv so GP Equity $536,000 $10,549 3.73% Number of Units· 51 Capitalized Op Reserv: $0 LAHD Gap Loan· $2,754,000 $54,000 1911% Deferred Developer Fee $154,500 $3,029 1.07%

YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 YEAR6 YEAR7 YEARS YEARS YEAR 10 YEAR11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 18 17 18

Residential Income $368,508 $377,721 $387,164 $396.643 $406,764 $416,933 $427,356 $438,040 $448,991 $460,216 $471,721 $483,514 $495.602 $507,992 $520,692 $533,709 $547,052 $560,729 Commercial Income (Net of Expenses) w w w w w w w w w w w w w w w w w w Laundry & Miscellaneous $3,060 $3,137 $3,215 $3,295 $3,378 $3,462 $3,549 _ $_3Lf?;3?_ $3,728 $3,822 $3,917 $4,015 $4,115 $4,218 $4,324 $4,432 $4,543 $4,656 GROSS INCOME $371,568 $380,857 $390,379 $400,138 $410,142 $420,395 $430,905 $441,678 $452,720 $464,038 $475,638 $487,529 $499,718 $512,211 $525,016 $538,141 $551,595 $565,385 Vacancy - Commercial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Vacancy - Residential ($18,578) ($19,043) ($19,519) ($20 007) ($20 507) ($21 ,020) ($21,545) ($22 084) ($22 636) ($23 202) ($23 782) ($24,376) ($24 988) ($25.6111 ($26 251) ($26 907) ($27,580) ($28,269) EFFECnVE GROSS INCOME $352,990 $361,814 $370,860 $380,131 $389,634 $399,375 $409,360 $419,594 $430,084 $440,836 $451,857 $463,153 $474,732 $486,500 $498,765 $511,234 $524,015 $537,115

Operating Expenses - Residential (S188,300) (S194,891) (S201,712) (S208,772) (S216,079) ($223,641) (S231,469) (S239,570) (S247,955) (S256,634) ($265,616) ($274.912) (S264,534) ($294.493) (S304,800) (S315,468) ($326,510) ($337,937) Operating Expenses - Commercial w w w w w w w w w w w w w w w w w w Real Estate Taxes (S1,000) (S1,020) (S1,040) (S1,061) (S1,082) (S1,104) (S1,126) (S1,149) ($1,172) (S1,195) ($1,219) ($1,243) (S1,268) (S1.294) (S1,319) (S1,346) (S1.373) ($1,400) Operating Reserve w w w w w w w w w w w w w w w w w w Replacement Reserve ($36,584) {$36.5841 ($36,584) ($36,584) ($36,584) ($36 584) ($36 584) ($38,5841 ($36,584) {$36,5841 ($36,584) {$36,584) ($36,584) ($36.584) ($36,5841 {$36,584) ($36.584) ($36.5841 HOI BEFORE DEBT SERVlCE $127,105 $129,320 $131,523 $133,714 $135,889 $138,046 $140,181 $142,291 $144,373 $146,423 $148,438 $150,413 $152,345 $154,229 $156,061 $157,836 $159,548 $161,194

Cash Available for Debt Service $105,921 $107,768 $109,603 $111,428 $113.241 $115,038 $116,817 $118.576 $120.310 $122,019 $123,698 $125,344 $126,954 $128,524 $130.051 $131,530 $132.957 $134,328 Perm Loan Debt Service $99,746 $99,746 $99,746 $99,746 $99,746 $99,746 $99.746 $99,746 $99,746 $99,746 $99,746 $99,746 $99,746 $99,746 $99,746 $99,746 $99.746 $99,746 MHP Debt Servic:e $11.516 $11,518 $11,518 -~8 $11,518 $1J,51~----J~$11 518 $11,516 $11,518 $11,518 $11,518 $11,516 $11,518 $11,518 $11,518 $11,518 $11,518 Debt Coverage Ratio 1.14 1.16 1.18 1.20 1.22 1.24 1.26 1.28 1.30 1.32 1.33 1.35 1.37 1.39 1.40 1.42 1.43 1.45 Debt Coverage Ratio (Mthout Commercial) 1.27 1.30 1.32 1.34 1.36 1.38 1.41 1.43 1.45 1.47 1.49 1.51 1.53 1.55 1.56 1.58 1.60 1.62

CASH FLOW AFTER DEBT SERVICE 15,841 18,055 20,259 22,450 24,625 28,781 28,916 31,026 33,108 35,158 37,173 39,149 41,081 42,965 44,797 46,571 48,284 49,929 Deferred Developer Fee 5,841 8,055 10,259 12,450 14,625 16,781 18,916 21,026 23,108 23,439 0 0 0 0 0 0 0 0 Partnership Related Charges and Fee 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10.000 10,000 10,000 10,000 10,000 10,000 10,000 CASH AVAILABLE FOR DISTRIBUTION $0 $0 $0 so $0 $0 $0 $0 $0 $1,719 $27,173 $29,149 $31,081 $32,965 $34,797 $36,571 $38,284 $39,929

LAHD. 50% OF CASH AVAILABlE FOR DISTRIBUTION Annual Payment (50%) $0 $0 $0 $0 $0 $0 $0 $0 $0 $860 $13,567 $14,574 $15,540 $16.482 $17,398 $18.288 $19,142 $19,965 Annual Interest Payment Due $137?00 $137700 $137,700 $137.700 $137,700 $137700 $137,700 $137.700 $137,700 $137,700 $137,700 $137,700 $137,700 $137700 $137,700 $137,700 $137,700 $137,700 Cumulative LAHO loan Balance $2,691,700 $3,029.400 $3,167,100 $3,304,800 $3,442,500 $3,580,200 $3,717,900 $3,655,600 $3,993,300 $4,130,140 $4,254.254 $4,377,380 $4,499,539 $4,620,757 $4.741.058 $4.880.473 $4,979,031 $5,096,766

BORROWER- 50% OF CASH AVAILABLE FOR DISTRIBUTION Annual Cash to Borrower so so so so so so so so $0 SB60 $13,587 $14.574 $15,540 $16,482 $17,398 $16,288 $19,142 $19,965 Cumulative cash to Borrower so so so so so so so so so SBOO $14,446 S29.020 $44,561 $61,043 $76,442 S96.72L_ $115,669 $135,834

Cumulaliole Operating Reserve Account 19 20 21 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

$574,747 $569.115 $603,843 $618,939 $634,413 $650,273 $666,530 $683,193 $700.273 $717,780 $735.724 $754,117 $772.970 $792,295 $812.102 $832,405 $853,215 $874,545 $696,409 $918,819 $941 '789 $965,334 $989,468 w w w w w w w w w w w w w w w w w w w w w w w $4,773 $4.892 $5,014 $5,140 $5,268 $5,400 $5,535 $5,673 $§,ill__ -- $.?.960 $f?,109 $6,262 $6,419 $6 579 -- _$6,743 $6,912 $7,065 ~- $7,444 $7.630 $7,820 $8,016 $8_,216 $579,519 $594,007 S60B,BS7 $624,079 $639,681 $655,673 $s72,o65- $6s8,86s S7o&,oss $723,740 $741,834 $760,380 Sn9,3B9 $798,874 SB1B,846 $839,317 SB60,30o SBB1,B07 $903,852 $926,449 $949,610 $973,350 $997,684 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ($28.9781 ($29,7001 C$30,4431 C$31 ,2041 C$31.9841 C$32,7841 C$33.6031 C$34 4431 t$35,3041 C$36 187) C$37,0921 C$38 0191 C$38,969) ($39 9441 f$40,9421 ($41 ,9661 ($43,0151 ($44.0901 f$45, 193) {$46,3221 ($47,4601 f$48 6681 ($49.884) $550,543 $564,307 $578,415 $592,875 $607,697 $622,889 $638,461 $654,423 S670,7tu $687,553 s7o4,742 S722,3B1 $740,420 S758,93o sn7,903 $797,351 $817,285 $837,717 S858,660 $880,126 $902,129 $924,683 S!U7,soo

($349,765) ($362,007) ($374,677) ($367,791) ($401,364) ($415,411) ($429,951) ($444,999) ($460,574) ($476,694) ($493,378) ($510,647) ($528,519) ($547,017) ($566,163) ($585,979) ($606,466) ($627.715) ($649,685) ($672,424) ($695,959) ($720.317) ($745.529) w w w w w w w w w w w w w w w w w w w w w w w ($1,426) ($1.457) ($1,466) ($1,516) ($1,546) ($1,577) ($1,608) ($1.641) ($1,673) ($1,707) ($1.741) ($1,776) ($1,811) ($1.848) ($1,885) ($1,922) ($1.961) ($2.000) ($2,040) ($2,061) ($2,122) ($2.165) ($2,208) w w w w w w w w w w w w w w w w w w w w w w w ($36,584) ($36.584} ($36,584) {$36 584) ($36 584) ($36,584) ($36 584) ($36,584) ($36.584) ($36,584) ($36,584) ($36 584) ($36,584) ($36 584) {$36,584) ($36 584) {$36 584) ($36,584) ($36,584) {$36 584) {$36.584) ($36,584) ($36,584) $162,766 $164,259 $165,667 $166,984 $168,203 $169,317 $170,318 $171,199 $171,952 $172,568 $173,038 $173,354 $173,505 $173,481 $173,271 $172,866 $172,252 $171,418 $170,350 $169,037 $167,464 $165,616 $163,479

$135,638 $136,882 $138,056 $139,153 $140,169 $141,097 $141,932 $142,666 $143.293 $143,807 $144.199 $144,462 $144,587 $144,567 $144,393 $144,055 $143,543 $142,848 $141,959 $140.864 $139,553 $138,013 $136.232 $99,746 $99,746 $99,746 $99.746 $99,746 $99,746 $99,746 $99,746 $99,746 $99,746 $99,748 $99,748 $99,746 $11,518 $11,518 $11 518 $11,518 $11,518 $11.518 $11,518 $11,518 $11.518 $11,518 $11,518 $11,518 $11.518 $11516 $11,518 $11 518 $11,518 $11,516 $11,518 $11 518 $11 518 $11 516 $11 518 1.46 1.48 1.49 1.50 1.51 1.52 1.53 1.54 1.55 1.55 1.56 1.56 1.56 15.06 15.04 15.01 14.95 14.88 14.79 14.68 14.54 14.38 14.19 1.63 1.65 1.66 1.67 1.69 1.70 1.71 1.72 1.72 1.73 1.73 1.74 1.74 #D/V/0! tiDIV/0! #DIVIO! #D/V/0! tiD/V/0! #DIV/0! #DIVIO! #DIVIO! #D/V/0! #D/V/0!

51,501 52,994 54,403 55,720 56,939 58,052 59,054 59,935 80,687 61,303 81,774 82,089 62,240 161,963 161,753 161,347 160,733 159,899 158,832 157,519 155,946 154,098 151,960 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10.000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 1_0,QQO ___ _10,000 __1_0,QQO --- _10,000 10,000 10,000 10,000 10,000 10,000_____1!L()()_(l 10,000 10.000 10,000 ___1.Q.QQ9 -·· 10,000 $41,501 $42,994 $44,403 $45,720 $46,939 $48,052 $49,054 $49,935 $50,667 $51.303 $51,774 $52,089 $52,240 $151,963 $151.753 $151,347 $150,733 $149,899 $148,832 $147,519 $145,946 $144,098 $141,960

$20,751 $21,497 $22,201 $22,860 $23,469 $24,026 $24,527 $24,967 $25,344 $25,652 $25,887 $26,045 $26,120 $75,981 $75,877 $75,674 $75,367 $74,950 $74,416 $73,759 $72,973 $72,049 $70,960 $137,700 $137 700 $137,700 $137 700 $137 700 $137,700 $137,700 $137,700 $137 700 $137,700 $137 700 $137 700 $137 700 $137 700 $137 700 $137 700 $137.700 $137,700 $137 700 $137,700 $137,700 $137,700 $137 700 $5,213.716 $5,329.918 $5,445,417 $5,560,257 $5,674,488 $5,768,162 $5,901,335 $6,014,068 $6,126,424 $6,238.472 $6,350.285 $6,461,941 $6,573,521 $6,635.239 $6,697,063 $6,759,069 $6,821.422 $6,684,173 $6,947,457 $7,011,397 $7,076,124 $7.141.775 $7,208,495

$20.751 $21,497 $22,201 $22,860 $23,469 $24,026 $24,527 $24,967 $25,344 $25,652 $25,887 $28,045 $26,120 $75,981 $75,877 $75,674 $75,367 $74,950 $74,416 $73,759 $72,973 $72,049 $70,960 $156 584 $178,082 $200,283 $223,143 $246,612 $270,638 $295,165 $320.132 $345.478 $371,128 $397,015 $423,059 $449,179 $525,161 $601,037 $676,711 $752,078 $627,027 $901,443 $975,203 $1,048,176 $1.120.225 $1,191,205 ..

ATTACHMENT E TAX CREDIT ANALYSIS 10-Mar-05 Project Name: Osborne Family Apts. Project Address: 12360 w. Osborne st., LA 91331 Developer Name: Decro Corp.

Project Costs 9% Basis 4% Basis

LAND COSTS Land Cost $2' 000' 000 N/A N/A Clos1ng Costs $2.500 N/A N/A Off -S1 te Improvements $110,000 N/A N/A Tox1c Abatement so N/A N/A TOTAL LAND COSTS $2,112,500 N/A N/A

TOTAL ACQUISITION COSTS $0 N/A $0

REHABILITATION S1te Work/Preparati.on $4>2. 597 $0 $432.597 Structures $6,097.368 $0 $6,097,368 General Requirements $391,798 $0 $391' 798 Contractor Overhead $261,199 $0 $261,199 Contractor Prof 1 t $261' 199 $0 $261,199 TOTAL REHABILITATION $7' 444,160 $0 $7,444,160

ARCHITECTURAL FEES Design and Reunbursables $446,650 $0 $446,650 Supervision $0 $0 $0 TOTAL ARCHITECTURAL COSTS $446,650 $0 $446,650

TOTAL SURVEY & ENGINEERING COSTS $22,500 $0 $22,500

CONSTRUCTION INTEREST AND FEES Construction Loan Interest $310,464 $0 $310,464 Construction LOan Interest - Lease-up $221' 760 xxxxxxxxxxxxxx xxxxxxxxxxxxxx Predevelopment Loan Interest $0 $0 $0 Or1gination Fee $72,000 so $72. 000 Credit/Application Fee $0 $0 $0 Construction Bond Premium $74,442 so $74,442 Taxes $24.300 $0 $24,300 Insurance $100,000 so $100. 000 Title & Record1ng $25,000 $0 $25' 000 TOTAL CONSTRUCTION INTEREST & FEES COSTS $827,966 $0 $606,206

PERMANENT FINANCING Bond Financ1ng Costs $298,500 xxxxxxxxxxxxxx xxxxxxxxxxxxxx Credit Enhancement and Appl1cation Fee $0 xxxxxxxxxxxxxx xxxxxxxxxxxxxx Title and Recording $10,000 xxxxxxxxxxxxxx xxxxxxxxxxxxxx Other ______so xxxxxxxxxxxxxx xxxxxxxxxxxxxx TOTAL PERHANENT FINANCING COSTS $308,500 $0 $0

LEGAL FEES Lender Legal Costs Paid by Applicant $50,000 $0 $50. 000 Other: Organizatlonal/Syndication Legal $60,000 $0 $25' 000 TOTAL ATTORNEY COSTS $110,000 $0 $75,000

TOTAL APPRAISAL COSTS $12,500 $0 $12,500

RESERVES Lease- Up Reserves $25' 000 xxxxxxxxxxxxxx xxxxxxxxxxxxxx Capitalized Operating Reserve $99,995 xxxxxxxxxxxxxx xxxxxxxxxxxxxx TOTAL RENT RESERVE COSTS $124,995 xxxxxxxxxxxxxx xxxxxxxxxxxxxx

TOTAL CONSTRUCTION CONTINGENCY COSTS $744,416 $0 $744,416

OTHER TCAC Appl/Resrv./Monitoring Fees $29' 950 xxxxxxxxxxxxxx xxxxxxxxxxxxxx Environmental Audit $5' 000 $0 $5' 000 Local Permit Fees $442,000 so $442' 000 Marketing $50. 000 xxxxxxxxxxxxxx xxxxxxxxxxxxxx Relocat1on Expenses $0 so so Furn1shings $100,000 $0 $100,000 Soft Costs Contingency $80. 923 $0 $0 construction Manager & Security $59,400 so $59,400 Accounting/Audit $15.000 $0 $0 Predevelopment Holding Costs $0 $0 $0 Syndicatlon $0 xxxxxxxxxxxxxx xxxxxxxxxxxxxx Other $0 so $0 TOTAL OTHER COSTS $782,273 $0 $606,400

DEVELOPER COSTS Developer OVerhead/Fee $1,450,000 so $1' 450.000 Consultant Fee/Processing Agent Fees $0 so $0 ..

ProJect Admin1strat1on $0 $0 $0 Other $0 $0 $0 TOTAL DEVELOPER COSTS $1' 450' 000 $0 $1' 450, 000

TOTAL RESIDENTIAL COSTS $14,408,960 so $11,407,832

TOTAL COMMERCIAL COSTS $0 xxxxxxxxxxxxxx xxxxxxxxxxxxxx

TOTAL PROJECT COSTS $14,408,960 $0 $11,407.832

BMR Federal Loan Used to Finance Costs 1n 9% sas1s $0 $0

TOTAL ELIGIBLE BASIS $0 $11,407,832 Less: Voluntary Basis Exclusion (HTC Received + Voluntary $0 $0 TOTAL P.EQUESTED BAS IS ,.. $0 $11,407,832 High Cost Area Adjustment ,..,.. 130. 00% 130. 00%

TOTAL ADJUSTED ELIGIBLE BASIS $0 $14' 830,182

Ratio of low 1ncome un1ts to all un1ts 100% 100%

TOTAL QUALIFIED BASIS $0 $14.830,182 Less: Voluntary Cred1 t Reduct 10n 0. 00% $0 $0 ADJUSTED QUALIFIED BASIS $0 $14' 830,182 Appl1cable Federal Tax Credn Factor - 9% 7. 99%- 3.4H Equals $0 $508.675

TOTAL ANNUAL FEDERAL CREDIT $0 $508' 675 x 10 yrs 10 10 MAXIMUM FEDERAL CREDIT $0 $5,086,752 x Tax Credit Factor (cents on the $) $0.000 $0. 879 Net Proceeds Ra1sed $0 $4,470,009

Estimated Synd1cation Net Proceeds $4,470,009

Est Federal Syndication Net Proceeds $4,470,009 Est State Syndication Net Proceeds $0 Est H1Storic Syndication Net Proceeds $0

Annual Credit Request per Bedroom $0 $4. 667 Total Credit Request per Bedroom $0 $46, 667 Total Requested Basis per Bedroom $0 $104. 659

CALCULATING FUNDING SHORTFALL Total Project Costs $14.408' 960 Amount of Permanent Financing in place $7,384,451 Shortfall $7.024.509 Tax Credit Factor (cents on the $) $0.81 Maximum Annual Tax Credit Needed $867. 223 x 10 years 10 Maximum Tax Credit Needed $8,672,233

STATE CREDIT DETERMINATION'' Qualified Basis $0 % over 4 years 0.30 equals $0

Total state credit (4 years)- Allowed $924,631 x tax credit factor $0.00 net proceeds raised $0

HISTORIC TAX CREDITS Residential Basis - HTC Allowable $0 Tax Credit Factor 20% Credits Allowed - Residential 0 x tax credit factor $0.95 net proceeds raised $0

Commercial Basis - HTC Allowable $0 Tax Credit Factor 0% Credits Allowed - Commercial 0 x tax credit factor $0.95 net proceeds raised $0

2004 Tiebreaker Analysis (9% Credit program)

Total Development Cost 14,408,960 Less: Land Costs -2,112,500 Less: Developer Fees -1,450,000 Less: GP Equity -538 000 Adjusted Development Cost 10,308,460 Unadjusted Eligible Basis (Requested) 0 Tie-Breaker%: 0.000% ,·

ATTACHMENT E SOURCES & USES (back to menu) Project Name: Osborne Family Apts. Project Address: 12360 W. Osborne St., LA 91331 Developer: Decro Corp.

Number of Dwelling Units: 51 Gross Building Area (sf) 50,325 Gross Land Area (af) 56,914 Gross Non-Residential Floor Area 2,500

TOTAL LAHD TAX CREDIT Tax-Exempt OTHER OTHER OTHER OTHER TOTAL COST INTERIM EQUITY Bonds GP Equity CRALA MHP Loan DEFERRED $2,754,000 $754,965 $7,200,000 $0 $2,400,000 $0 $1,299,995 $14,408,960 1. LAND COSTS: Purchase Price (a) $2,000,000 $0 $0 $0 $0 $2,000,000 $0 $0 $2,000,000 Closing Costs (b) $22,500 $0 $0 $0 $0 $22,500 $0 $0 $22,500 Appraisal (c) $2,500 $0 $0 $0 $0 $2,500 $0 $0 $2,500 Holding Costs (d) $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL LAND COSTS $2,025,000 $0 $0 $0 $0 $2,025,000 $0 $0 $2,025,000

2. FEES/PERMITS & STUDIES Building Fees and Permits (a) $442,000 $442,000 $0 $0 $0 $0 $0 $0 $442,000 Surveys/SoilsNariance (b) $22,500 $0 $0 $0 $0 $22,500 $0 $0 $22,500 Environmental Documentation/Toxic Report (c~ $5,000 $0 $0 $0 $0 $5,000 $0 $0 $5,000 Arch. & Engineering Fees Design (d) $411,650 $89,150 $0 $0 $0 $322,500 $0 $0 $411,650 Reimbursables (e) $35,000 $35,000 $0 $0 $0 $0 $0 $0 $35,000 Subtotal: $446 650 $124,150 $0 $0 $0 $322 500 $0 $0 $446 650 TOTAL FEES/PERMITS & STUDIES $916,150 $566,150 $0 $0 $0 $350,000 $0 $0 $916,150

3. DIRECT CONSTRUCTION COSTS: Demolition (a) $0 $0 $0 $0 $0 $0 $0 $0 $0 Toxic Abatement (e) $0 $0 $0 $0 $0 $0 $0 $0 $0 Residential Construction: Units (g) $5,597,368 $1.383,508 $754,965 $3,458,895 $0 $0 $0 $0 $5,597,368 Parking (f) $500,000 $0 $0 $500,000 $0 $0 $0 $0 $500,000 Onsite Improvements (d) $232,597 $100,000 $0 $132,597 $0 $0 $0 $0 $232,597 Landscaping/Irrigation System (b) $200,000 $0 $0 $200,000 $0 $0 $0 $0 $200,000 Off-Site Improvements (c) $110,000 $0 $0 $110,000 $0 $0 $0 $0 $110,000 General Conditions (i) $391 798 $0 $0 $391,798 $0 $0 $0 $0 $391,798 Subtotal: $7,031,763 $1,483,508 $754,965 $4,793,290 $0 $0 $0 $0 $7,031,763 Construction Contingency (k) $744.416 $0 $0 $744 416 $0 $0 $0 $0 $744,416 Subtotal: $7,776,179 $1,483,508 $754,965 $5,537,706 $0 $0 $0 $0 $7,776,179 Contractor's Overhead & Profit (h) $522,397 $0 $0 $522,397 $0 $0 $0 $0 $522,397 TOTAL DIRECT CONSTRUCTION COSTS $8,298,576 $1,483,508 $754,965 $6,060,103 $0 $0 $0 $0 $8,298,576

4. INDIRECT CONSTRUCTION COSTS Developer's Fee (a) $1,295,500 $0 $0 $250,000 $0 $0 $0 $1,045,500 $1,295,500 Deferred Developer Fee (b) $154,500 $0 $0 $0 $0 $0 $0 $154,500 $154,500 Subtotal: $1,450,000 $0 $0 $250,000 $0 $0 $0 $1,200,000 $1,450,000 Development Consultant (c) $0 $0 $0 $0 $0 $0 $0 $0 $0 Construction Manager (d) $59,400 $59,400 $0 $0 $0 $0 $0 $0 $59,400 Builders Risk/Liability Insurance (e) $100,000 $100,000 $0 $0 $0 $0 $0 $0 $100,000 Real Estate Taxes (f) $24,300 $0 $0 $24,300 $0 $0 $0 $0 $24,300 Legal- Organizational (g) $25,000 $0 $0 $0 $0 $25,000 $0 $0 $25,000 Legal- Syndication (h) $35,000 $35,000 $0 $0 $0 $0 $0 $0 $35,000 Post Construction Audit (i) $15,000 $0 $0 $15,000 $0 $0 $0 $0 $15,000 Performance Bond (I) $74,442 $74,442 $0 $0 $0 $0 $0 $0 $74,442 Relocauon Q) $0 $0 $0 $0 $0 $0 $0 $0 $0 Indirect Construction Costs ConUngency (k) $80,923 $0 $0 $80,923 $0 $0 $0 $0 $80 923 TOTAL INDIRECT CONSTRUCTION COSTS $1,864,065 $268,842 $0 $370,223 $0 $25,000 $0 $1,200,000 $1,864,065

5. RENT-UP COSTS Marketing/Advertising Expense (a) $50,000 $0 $0 $50,000 $0 $0 $0 $0 $50,000 Lease-up Costs (b) $25,000 $0 $0 $25,000 $0 $0 $0 $0 $25,000 Capitalized Operating Reserve (c) $99,995 $0 $0 $0 $0 $0 $0 $99,995 $99,995 Common Area Furnishings (d) $100 000 $0 $0 $100,000 $0 $0 $0 $0 $100 000 TOTAL RENT-UP/MARKETING COSTS $274,995 $0 $0 $175,000 $0 $0 $0 $99,995 $274,995

6. FINANCING COSTS Construction Loan Interest (a} $532,224 $0 $0 $532,224 $0 $0 $0 $0 $532,224 Construction Loan Fees (b) $72,000 $72,000 $0 $0 $0 $0 $0 $0 $72,000 As-Built Appraisal (c) $12,500 $0 $0 $12,500 $0 $0 $0 $0 $12,500 Constr. Lender Legal (d) $50,000 $50,000 $0 $0 $0 $0 $0 $0 $50,000 Permanent Loan Fees/Closing Costs (e) $298,500 $298,500 $0 $0 $0 $0 $0 $0 $298,500 Tax Credit Allocation Fee (f) $29,950 $0 $0 $29,950 $0 $0 $0 $0 $29,950 Syndication Costs (g) $0 $0 $0 $0 $0 $0 $0 $0 $0 Bridge Loan lnteresVCosts (h) $0 $0 $0 $0 $0 $0 $0 $0 $0 Title and Recording (Constr./Perm.) (i) $35,000 $15 000 $0 $20 000 $0 $0 $0 $0 $35,000 TOTAL FINANCING COSTS $1,030,174 $435,500 $0 $594,674 $0 $0 $0 $0 $1,030,174

7. SUBTOTAL DEVELOPMENT COSTS $12,383,960 $2,754,000 $754,965 $7,200,000 $0 $375,000 $0 $1,299,995 $12,383,960 TOTAL LAND COSTS $2,025 000 $0 $0 $0 $0 $2,025,000 $0 $0 $2,025,000 TOTAL DEVELOPMENT COSTS $14,408,960 $2,754,000 $754,965 $7,200,000 $0 $2,400,000 $0 $1,299,995 $14,408,960 ATTACHMENT E SOURCES & USES- PERMANENT (back to menul Project Name: Osborne Family Apts. Project Address: 12360 W. Osborne SL, LA 91331 Developer: Decro Corp.

Number of Dwelling Units: 51 Gross Building Area (sf) 50,325 Gross Land Area (af) 56.914 Gross Non-Residential Floor Area 2,500

TOTAL LAHD TAX CREDIT Tax-Exempt OTHER OTHER OTHER OTHER TOTAL COST jHTFI EQUITY Bonds GP Egui~ CRALA MHP Loan DEFERRED $2.754,000 $4,470,009 $1,350,000 $538,000 $2,400,000 $2,742,451 $154,500 $14,408,960 1. LAND COSTS: Purchase Price (a) $2,000,000 $0 $0 $0 $0 $2,000,000 $0 $0 $2,000,000 Closing Costs (b) $22,500 $0 $0 $0 $0 $22,500 $0 $0 $22,500 Appraisal (c) $2,500 $0 $0 $0 $0 $2,500 $0 $0 $2,500 Holding Costs (d) $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL LAND COSTS $2,025,000 $0 $0 $0 $0 $2,025,000 $0 $0 $2,025,000

2. FEES/PERMITS & STUDIES Building Fees and Permits (a) $442,000 $442,000 $0 $0 $0 $0 $0 $0 $442,000 SurveysfSoilsNariance (b) $22,500 $0 $0 $0 $0 $22,500 $0 $0 $22,500 Environmental Documentation/Toxic Report (c) $5,000 $0 $0 so so $5,000 $0 $0 $5,000 Arch. & Engineering Fees Design (d) $411,650 $89,150 $0 $0 $0 $322,500 $0 $0 $411,650 Reimbursables (e) $35 000 p5,ooo $0 $0 $0 $0 $0 so S35,000 Subtotal: $446 650 $124 150 so so so $322 500 $0 $0 $446 650 TOTAL FEES/PERMITS & STUDIES $916,150 $566,150 $0 $0 $0 $350,000 $0 $0 $916,150

3. DIRECT CONSTRUCTION COSTS: Demolition (a) so $0 so $0 so so so so so Toxic Abatement (e) so so so so so so $0 so so Residential Construction: Units (g) S5,597,368 S1.383,508 S121,409 $1,350,000 so so $2,742,451 so $5,597,368 Parking CD ssoo,ooo $0 S500,000 so so $0 $0 $0 $500,000 Onsite Improvements (d) S232,597 S100,000 S132.597 so so $0 $0 $0 $232,597 Landscapingtlrrigation System (b) S200,000 $0 $200,000 $0 $0 so $0 $0 S200,000 Off-Site Improvements (c) S110,000 so $110,000 $0 so $0 so $0 S110,000 General Conditions (i) $391,798 so $391 798 ~0 so so $0 ~0 $391,798 Subtotal: $7,031,763 $1,483,508 $1,455,804 $1,350,000 $0 $0 $2,742,451 $0 $7,031,763 Construction Contingency (k} $744,416 ~0 $744,416 so so so $0 ~0 F44,416 Subtotal: $7,776,179 $1,483,508 $2,200,220 $1,350,000 $0 $0 $2,742,451 $0 $7,776,179 Contractor's Overhead & Pmfrt (h) ~522 397 $0 $522,397 so $0 $0 ~0 ~0 ~522,397 TOTAL DIRECT CONSTRUCTION COSTS $8,298,576 $1,483,508 $2,722,617 $1,350,000 $0 $0 $2,742,451 $0 $8,298,576

4. INDIRECT CONSTRUCTION COSTS Developer's Fee (a) $1,295,500 $0 $757,500 so $538,000 $0 $0 $0 $1,295,500 Deferred Devek>per Fee (b) S154 500 $0 so so i0 ~0 $0 ~154,500 $154 500 Subtotal: S1,450,000 $0 $757,500 $0 $538,000 $0 $0 $154,500 $1,450,000 Development Consultant (c) so $0 so so so $0 $0 so $0 Construction Manager (d) $59,400 S59,400 $0 so $0 $0 $0 $0 $59,400 Builders Risk/Liability Insurance (e) $100,000 $100,000 so so so $0 so so S100,000 Real Estate Taxes (f) $24,300 so S24,300 $0 $0 $0 so $0 $24,300 Legal - Organizational (g) $25,000 so $0 so $0 S25,000 so $0 S25,000 Legal - Syndication (h) $35,000 $35,000 $0 $0 so $0 so $0 $35,000 Post Construction Audit (i) $15,000 so $15,000 $0 so $0 $0 $0 $15,000 Perfonllance Bond (I) $74,442 $74,442 $0 so so $0 $0 $0 $74,442 Relocation U) $0 so $0 $0 $0 $0 $0 $0 $0 Indirect Construction Costs Contingency (k) $80,923 so i80 923 ~0 ~0 so $0 ~0 ~80 923 TOTAL INDIRECT CONSTRUCTION COSTS $1,864,065 $268,842 $877,723 $0 $538,000 $25,000 $0 $154,500 $1,864,065

5. RENT-UP COSTS Marketing/Advenising Expense (a} S50,000 so $50,000 $0 $0 $0 $0 so $50,000 Lease-up Costs (b) $25,000 $0 $25,000 so $0 $0 $0 $0 S25,000 Capitalized Operating Reserve (c) $99,995 so $99,995 so $0 $0 $0 $0 S99,995 Common Area Furnishings (d) ~100 000 $0 $100 000 ~0 ~0 ~0 ~0 ~0 $100,000 TOTAL RENT-UP/MARKETING COSTS $274,995 $0 $274,995 $0 $0 $0 $0 $0 $274,995

6. FINANCING COSTS Construction Loan Interest (a} $532,224 so $532,224 $0 $0 so so so S532.224 Construction Loan Fees (b) S72,000 $72,000 $0 so so so $0 $0 $72.000 As-Built Appraisal (c) S12,500 $0 $12,500 $0 $0 so $0 $0 $12,500 Constr. Lender Legal (d) $50,000 $50,000 $0 $0 $0 $0 $0 $0 S50,000 Pent1anent Loan Fees/Closing Costs (e) $298,500 $298,500 $0 $0 $0 so so $0 S298,500 Tax Credit Allocation Fee (f) S29,950 so $29,950 $0 $0 so so $0 $29,950 Syndicatk>n Costs (g) $0 $0 $0 so $0 $0 so $0 $0 Bridge Loan lnteresVCosts (h) so $0 $0 so so so $0 $0 $0 Title and Recording (Constr./Penll.) (i) $35,000 ~15 000 ~20 000 ~0 ~0 ~0 ~0 so $35 000 TOTAL FINANCING COSTS $1,030,174 $435,500 $594,674 $0 $0 $0 $0 $0 $1,030,174

7. SUBTOTAL DEVELOPMENT COSTS S12,383,960 $2,754,000 $4,470,009 $1,350,000 S538,000 $375,000 S2,742,451 $154,500 S12,383,960 TOTAL LAND COSTS S2 025 000 ~0 ~0 ~0 so $2 025 000 so ~0 $2,025,000 TOTAL DEVELOPMENT COSTS $14,408,960 $2,754,000 $4,470,009 $1,350,000 $538,000 $2,400,000 $2,742,451 $154,500 $14,408,960 THRESHOLD BASIS LIMITS

BASED ON 2004 THRESHOLDS (back to menu)

UNIT SIZE UNIT BASIS LIMIT NO. OF UNITS UNIT BASIS LIMIT NO. OF UNITS BASIS LIMIT NON-ELEVATOR ELEVATOR

0 $90,258 0 $0 0 $0

$104,070 14 $0 0 $1,456,980

2 $125,509 16 $0 0 $2,008,144

3 $160,652 21 $0 0 $3,373,692

4 0 $0 0 $0

TOTAL UNITS 51 TOTAL UNITS 0

TOTAL THRESHOLD BASIS LIMIT $6,838,816

THRESHOLD BASIS ADJUSTMENTS PER 10327(C)(5):

IY:::]Project requires payment of prevailing wages 820,658 m==:::=JNew construction with subterranean parking (not tuck-under) 0 may not exceed 20% m==:::=J Day Care Center 0 m==:::=J Projects specifically designed for 100% special needs tenants 0 820,658

IY:::]Project includes at least 3 energy conservation items (per list) 273,553 m==:::=JProject is non-competitive "bond" application pursuant to 10326 and NOT in DDAIQCT 0 =<50%LIHTC } 0 m==:::=JProject is non-competitive "bond" application pursuant to 10326 and in DDAIQCT m==:::=JProject is non-competitive "bond" application pursuant to 10326 and NOT in DDAIQCT 0 >50%LIHTC IY:::]Project is non-competitive "bond" application pursuant to 10326 and in DDA/QCT } 4,103,290 m==:::=Jsignificant seismic upgrading of an existing structure 0 m==:::=JProject uses distributive energy technologies and/or renewable energy sources 0

ALLOWABLE THRESHOLD BASIS $12,036,316