Agda Pkt 2026.05.11 Joint SA PFA

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Capitalized Replacement Reserves: Replacement reserve is capitalized at $500 per unit. It is escalated at 3.5% annually. Project meets the City’s requirements of having at least $250/ per unit escalated at 3.5% annually. Capitalized Operating Reserves: The City’s operating reserve requirement is 3 months of expenses including hard debt, monitoring fees, and replacement reserve under development budget. The project is 100% affordable and will not have a City monitoring fee. The project’s three months of hard debt and replacement reserve is $133,277. The development budget currently has $866,033 in operating reserve or approximately 6.5 months of operating reserves. The project meets and exceeds City’s requirement. Developer Fee: The City requires 4% and 9% tax credit projects to have their developer fee be the sum of 15% of the project’s unadjusted eligible basis or up to $2,500,000. Developer fees in excess shall be deferred or contributed as equity to the project. The project’s developer fee is $2,500,000 and there is no deferred or contributed developer fee. Project meets City’s requirement. Proposed project affordability restrictions, special eligibility conditions: There will be approximately 51 City- restricted units and 26 units of the 51 units can have the City’s local preference. The affordability term is 55 years from the Certificate of Occupancy. Rents cannot exceed Health & Safety Code rent definitions (Sec. 50053) and occupancy standards (Sec. 50052.5(h)). Local Preference: The County limits the City live-work preference based on the ratio of City funding for the project to the total of City and County funding for the project. City funding of $10,140,000 currently makes up 34% of the total City and County funding ($30,044,688). The City will be able to enforce the City’s local preference on 34% of the 77 total affordable units or approximately 26 units. Proposed City Loan terms (length of term, interest, etc.): • Predevelopment Loan - Project is requesting a $500,000 predevelopment loan, funded by housing impact fees. Construction must start within 36 months from receiving funding award. Predevelopment loan term is up to 36 months with potential conversion to construction/ permanent loan at the start of construction. The City Manager, at their discretion, may extend the loan term up to one (1) additional year upon the determination that the Developer is making satisfactory progress toward completion of the Project. Given that this project is contingent upon the progress of the Blomquist Road Extension project, the loan term may be extended accordingly. There is no interest. See Predevelopment Loan Term Sheet for more information. • Permanent Loan - The $4,500,000 permanent loan, funded by housing impact fees will have a term of 57 years from the Certificate of Occupancy with a 3% simple interest and loan will be repaid from the City’s share of residual receipts, based upon the principal balance of all residual receipt loans Cash flow and Operating Budget: Operating budget is $1,123,957 annually which is $10,683 per unit. Project is financially feasible with a debt service ratio of 1.16 in average for the first 15 years of operation. This meets and exceeds the NOFA requirements of having at least 1.00 to 1.15 debt coverage ratio. 9.A. - Page 35 of 37 501