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Economic & Planning Systems, Inc. A-3 Appendix A
<br />Table A-4. Permanent Loan Financing Assumptions
<br />Permanent Loan $18,197,125
<br />Interest rate 5.85%
<br />Term Yrs 40
<br />Table A-5. Tax Credit Calculation
<br />Tax Credit Calculation In QCT/ DDA Outside QCT/DDA
<br />Hard Costs $54,540,000 $54,540,000
<br />Soft Costs $13,635,000 $13,635,000
<br />Eligible Basis $68,175,000 $68,175,000
<br />QCT/ DDA Boost1 130% 0%
<br />Adjusted Eligible Basis $88,627,500 $68,175,000
<br />Applicable Fraction2 100% 100%
<br />Qualified Basis $88,627,500 $68,175,000
<br />Tax Credit Rate 4% 4%
<br />Annual Tax Credit $3,545,100 $2,727,000
<br />x 10 years 10 10
<br />Total Tax Credit $35,451,000 $27,270,000
<br />Tax Credit Pricing3 $0.90 $0.90
<br />Investor Equity $31,728,645 $24,406,650
<br />1 Model assumes the project is not located in a Qualified Census Tract (QCT) or Difficult Development Area (DDA).
<br />Projects located in a QCT or DDA may be eligible for up to a 30 percent basis boost, which increases the eligible
<br />basis used to calculate Low-Income Housing Tax Credits and can increase available tax credit equity.
<br />2 Applicable fraction reflects the share of the project treated as income-restricted affordable housing for tax credit
<br />purposes. The model assumes a 100 percent applicable fraction, meaning all residential units are assumed to be
<br />rent-restricted and occupied by income-qualified households, so the full eligible residential basis is included in the
<br />tax credit calculation.
<br />3 Estimated based on Q4 2025 tax credit pricing
<br />Table A-6. Developer Fee Calculation
<br />Developer Fee
<br />Unadjusted eligible basis $65,675,000 $65,675,000
<br />Maximum Percent 1 15% 15%
<br />Maximum Developer Fee $9,851,250 $9,851,250
<br />Take Home Developer Fee 2 $2,500,000 $2,500,000
<br />Contributed/ Deferred Developer Fee $7,351,250 $7,351,250
<br />1 Reflects the assumed 4% LIHTC developer fee limit, calculated as 15 percent of unadjusted eligible basis.
<br />2 Take-home developer fee is capped at $2.5 million. Any developer fee above this amount is assumed to be deferred
<br />or contributed back to the project as equity.
<br />In QCT/ DDA Outside QCT/DDA
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