Projected Construction Cash Needs. Using an 18-month construction completion period, we modeled the development progress and identified an average for the first six months of $809,205 required monthly to fund the construction in this application. The application identifies financing sources other than CDBG-DR that can be utilized to fund up-front construction costs prior to the disbursement of CDBG-DR funds.
Projected Construction Cash Needs. Using an 18-month construction completion period, we modeled the development progress and identified an average for the first six months of $106,448 required monthly to fund the construction in this application. With the projected funds required monthly to pay contractor invoices, the applicant should work with GLO to identify the time-period required to process CDBG-DR reimbursements and consider any responsibility in funding costs up front.
Projected Construction Cash Needs. Using an 18-month construction completion period, the development progress as modeled identified an average for the first six months of $1,155,729 required monthly to fund the construction in this application. The applicant anticipates obtaining a construction loan which can be utilized to fund up-front construction costs prior to the disbursement of CDBG-DR funds. O perating Review Rent Analysis Proposed Rents Bedroom Size Number of Units Set Aside % High HOME Rent Limit Base Rent Utility Allowance TTP Annual Gross Potential Rents 0 5 MKT N/A 596 0 596 35,760 1 30 80% $594 539 55 594 194,040 1 10 MKT N/A 600 0 600 72,000 2 30 80% $786 715 70 785 257,562 2 10 MKT N/A 798 0 798 95,760 3 18 80% $985 823 85 908 177,690 3 1 MKT N/A 974 0 974 11,688 The applicant is proposing a mixed income development with 78 units set aside for tenants earning up to 80% AMI and 26 market rate units. The low-income unit rents originally proposed were slightly higher than the High HOME rent limits. This table has been adjusted to reflect allowable rents. Development Expense Analysis Operating Expense Projected Expense Proposed % of Operations 0000 Xxxxx Xxxxx Median Operating Expense Distribution Variance Administrative $33,840.00 6.41% 12.4% 5.99% Management Fee $27,553.44 5.22% 8.2% 2.98% Payroll $190,143.00 35.99% 24.1% 11.89% Repairs & Maint. $53,666.25 10.16% 18.9% 8.74% Utilities $33,383.00 6.32% 14.7% 8.38% Property Insurance $54,691.86 10.35% 7.1% 3.25% Property Tax $134,994.00 25.55% 11.3% 14.25% Total $528,271.42 Average Variance 7.93% The table above depicts the proportion of operating expense that each category represents as established by the 2016 Texas Gross Median Operating Expense Distribution published by CohnReznick based on an assessment of multifamily affordable housing properties across Texas. The total average operating expense variance of the proposed development from this established standard is approximately eight percent. As indicated above the following variances are noted:
Projected Construction Cash Needs. Using an 18-month construction completion period, we modeled the development progress and identified an average for the first six months of $809,205 required monthly to fund the construction in this application. The application identifies financing sources other than CDBG-DR that can be utilized to fund up-front construction costs prior to the disbursement of CDBG-DR funds. O perating Review Rent Analysis Proposed Rents Bedroom Size Number of Units Set Aside % High HOME Rent Limit Base Rent Utility Allowance TTP Annual Gross Potential Rents 1 3 30% $765 297 65 $362 $10,685 1 12 80% $765 700 65 $765 $100,771 1 10 Mkt. N/A 875 0 $875 $105,000 2 4 30% $921 359 76 $435 $17,222 2 18 80% $921 845 76 $921 $182,477
Projected Construction Cash Needs. Using an 18-month construction completion period, we modeled the development progress and identified an average for the first six months of $142,087 required monthly to fund the construction in this application. With the projected funds required monthly to pay contractor invoices, the applicant should work with GLO to identify the time-period required to process CDBG-DR reimbursements and consider any responsibility in funding costs up front. The applicant has proposed financing through the Bank of Oklahoma during the construction period.
Projected Construction Cash Needs. Using an 18-month construction completion period, we modeled the development progress and identified an average for the first six months of $810,268 required monthly to fund the construction in this application. The applicant anticipates to secure a loan to help fund up front construction costs prior to the disbursement of CDBG-DR. O perating Review Rent Analysis Proposed Rents Bedroom Size Number of Units Set Aside % High HOME Rent Limit Base Rent Utility Allowance TTP Annual Gross Potential Rents 1 42 80% $907 $845 $62 $907 425,880 1 14 Mkt. N/A $1,000 N/A $1,000 168,000 1 6 80% $907 $845 $62 $907 60,840 1 2 Mkt. N/A $1,000 N/A $1,000 24,000 2 12 80% $1,104 $1,024 $80 $1,104 147,456 2 8 Mkt. N/A $1,250 N/A $1,250 120,000 The project will provide units for tenants earning up to 80% AMI and market rate tenants. The rents proposed by the applicant for LMI units are in line with the HUD High HOME Rent Limits. Development Expense Analysis Operating Expense Projected Expense Proposed % of Operations 0000 Xxxxx Xxxxx Median Operating Expense Distribution Variance Administrative $ 51,210.00 9.98% 12.4% 2.42% Management Fee $ 44,558.00 8.69% 8.2% 0.49% Payroll $ 106,406.00 20.74% 24.1% 3.36% Repairs & Maint. $ 90,456.00 17.63% 18.9% 1.27% Utilities $ 71,208.00 13.88% 14.7% 0.82% Property Insurance $ 35,700.00 6.96% 7.1% 0.14% Property Tax $ 113,500.00 22.12% 11.3% 10.82%
Projected Construction Cash Needs. Using an 18-month construction completion period, we modeled the development progress and identified an average for the first six months of $636,401 required monthly to fund the construction in this application. The funding obtained from Bank of Texas will be able to support up front construction costs prior to the disbursement of CDBG-DR funds.
