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First Redevelopment Agency Loan Modification Agreement 2009-0254445 r'\"" L /\ ' , ~ \'"'6 ?;\f ....:/ ' $1V) r" 'y::,\' , . . RECORDED AH"!rREQUEST Of CHICAGO TITLE CO: DOW 2009-0254445 I 11111111 III 11111 om 111111111111111111111111111111111111111111111111 MAY 13, 2009 4:59 PM Recording' requested by and When recorded:mait'to: OFFIi IAL REC[lFI[I', ',AN DIEI~O COUt-ITY REmRDEFI",; OFFICE [1,6.VI[1 L E:UTLER,. LUUNT'Y' ,~ECORDER FE E ~;. O. 01:1 W,6Y~:: 3 PAGES: 31 11111111111111111111111111111111111111111111111111111111111111111111111111111111 PowayRedevelopmenl Agency 13325 Civic Center Drive ,\'? Poway, CA 92064 t\~ ~ Atln: Executive Director No fee for recordation pursuant to Government Code Section 27383 ~3{)O154)'9. ul"., FIRST REDEVELOPMENT AGENCY LOAN MODIFICATION AGREEMENT (Oak Knoll Villas) This First Redevelopment Agency Modification Agreement (the" Modification Agreement") is entered into as of April1.l, 2009, by and between thepoway Redevelopment Agency, a public body corporate and politic and Oak Knoll Housing Associates, L.P., a California limited partnership (the "Borrower") RECITALS A, The Agency and the,Bc:nTower entered into that certain Agency'Loan Agreement executed on March 11,2008 (the "Agency Loan Agreement"), pursuanlto which the Agency committed Seven Million Three Hundred Twenty'Nine Thousand Dollars ($7,329,000) ofAge!1cy Low and Moderate Income Housing Fund monies (the "Agency Loan") in corinectiol1.with the acquisition of the property located at. 12509 Oak Knoll Road, in the City of Po way, C.cunty of San Diego, State of.California, that is described in the attached Exhibii A. incorporated herein by this reference, (the "Property") and the rehabilitation ora fifty-two (52)-unit multifamily rental housing development thereon (the "Development"). B, The Agel1cy Loan is evidenced by,a.promissory note (the "Original Agency Note") executed by the,Borr6w'erin favor.. of the Agency dated March II, 20bs, secured by a Deed of Trust with Assignment of Rents ,and Security Agreement (the "Agency Deed of Trust") dated March II, 2008, and recorded against the Property on April I, 2bOS,as Instrument No. 2008- 0169320in.the Official Records of the County of San Diego (the "Official Records"). C. The. Agency Loan is subject to the terms and conditions of a Regulatory Agreement and Declaratio.n of Restrictive Covenants (the "Regulatory Agreement") by and between the Agency and the Borrower restricting the occupancy and rent.levels of the Development dated March 1l,20Q8)and recorded against the Property on April 1,2008, as Instrument No. 2008- 0169321 ih the Official Records. D. In order to comply with requirements of the City of P6way Design Review Committee, the Borrower will provide certainarchitectural enhancements to the Ta<;ade of the Development. The architectural enhancements are projected to increase the cost of the rehabilitation of the ' Development by approximately One Hundred Thousand Dollars ($1 00,000). On November 15st..02\671:D8:9 r' . . 11813 IS, 2008 the City Council:approved, Development Review application 08.04 and an additionaLappropriation of One Hundred Thollsand Dollars ($ 100,000) bringing the Agency Loan amollnt to Seven Million'Pour Hlindred Twenty.Nine Thousand Dollars ($7,429,000), E. A fiscal crisis has plagued the State of California and the country, the result of which is a precipitolls drop in the value of the tax credits and substantial decrease in capital invested in affordable housing by tax credit investors. The original investor limited partner selected by the Borrower withdrew its iuvestment commitment and the' BOrTowerwas forced to find a new investor limited partner. The fiscal crisis caused an equity gap of approximately Five Hundred Sixty-Two Thousand Dollars ($562,000). F. The Agency and the Borrower desire to further modify the Loan Agreement, Agency Note and the Agency Deed of Trust to reflect an increase in the loan amount by a total of Six Hundred Sixty- Two ThousandDollars ($662,000) of Low and Moderate Income Housi~g Fund,rnonies, for a total Agency Loan amount of Seven Million Nine Hundred Ninety-One Thousand Dollars ($7,991,000) (the "New Agency Loan Amount") to fund the favade improvements and the equity gap for the Development. The'Agency and the Borrower deSIre, to amend the Agency Loan Agreement, the Agency Note, and the Agency Deed of Trust to reflect the New Agency Loan Amount. G. Capitalized terms utilized in this Agreement but not defined in this Agreement shall have the meanings set forth in the Agency Loan Agreement. NOW, THEREFORE" in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which, consideration are hereby acknowledged, the Agency and the Borrower (referred to individually as the "party" and collectively as the "Parties") agree as follows: 1. Amendment of Al!encv Loan Al!reement. The Agency Loan Agreement is hereby amended as fo 1I0ws: (a) the following: Recital C. Recital C is hereby deleted in its entirety and replaced with "The Agency desires' to provide financial assistance'to Borrower for acquisition and rehabilitation costs in the form of a loan for a total amount not to exceed Seven Million Nine Hundred Ninety.One Thousand Dollars ($7,991,000) (the "Loan"). The Loan consists of funds from the Agency's Redevelopment Low and Moderate Income . Housing Fund. The Agency and the City Council have made the necessary findings to spend Agency Low and Moderate Income Housing Fund revenues outside of the Project Area, as evidenced, respectively, by Resolutions No. R-08-0S and Resolution No.08-012 adopted on March II, 2008." (b) Aonroved Develnoment Budl!et. SectionLl (d) of the Agency Loan Agreement is hereby deleted in its entirety and replaced with the following: 2 1552\02\67J238.9 , rJ (j . . 11814 ""Kpproved'Development Budget" shall mean,the profonna development budget dated as of March 25, 2009>including sources and uses offunds, as approved by the Agency, attached to and incorporated in the Modi't'ication Agreement as Exhibit B, but which maybe amended with approval of the Agency as set forth in the Agreement." (c) A!!encv Loan Amount. Section l.l(e)ofthe Agency Loan Agreement is hereby deleted in its entirety and replaced with the following: "(el "Approved Financing" shall be limited to all of the following funds acquired by the Borro:>"erand approved by the Agency for the,purpose offimil1cing the Development, in addition to the Loan: (i) A loan from the Interim Bank in,the,approximate amount of Three Million One Hundred Thousand Dollars ($3.100,000) (the "Interim Loan"); (ii) Multifamily housing tax-exempt revenue bonds issued by the California Statewide Communities Development Authority (the' "Authority") in the approximate amount of Six Million Five Hundred Thousand Dollars ($6,500,000) for the purpqse of providing financing for the acquisition and rehabilitation of the Development (the "Bond Financing") and intended to be paid down to approximately Two Million Three Hundred Forty Thousand Dollars ($2,340,000) aftercompletion of rehabilitation (the "Bond Loan"); (iii) Tax credit investor limited partner capitalcontribution in the approximate amount of Two Million Five Hundred Sixty Thousand Tluee Dollars ($2,560,003); (iv) General partner capital contribution in an amount of not less than Three Hundred Sixty-Two Thousand Five Hundred Fifty-Six Dollars ($362,556); and (v) Sponsor loan from Community Housing Works, a California nonprofiipublic,benefit corporation in an amount notless,than Two Hundred Ten Thousand Dollars ($21 O,OOO)(the "Sponsor Loan")." (d) A!!encv Loan Amount. Section l.l(s) ofthe Agency Loan Agreement is hereby deleted in its entirety and replaced with the following: ""Loan" shall mean the Agency loan to Borrowerin,the total principal amount not to exceed Seven Million Nine Hundred Ninety-One Thousand Dollars ($7;991,000)" (e) Revised Schedule of Performance. Section l.l(aa),ofthe Agency Loan Agreement is hereby deleted'in its entirety and replaced with the foIlowing: 3 L552'.02\671238.9 , " . . 118J 5 ""schedtikof Performance" shall mean the .schedul~'ofdates certain by which perfonnanceofwork under the Revised Approved Scope of Rehabilitation Work must be completed, attached to and incorporated in the Modification Agreement as Exhibit C, but which maybe amended with approval of the Agency as set forth in the Agreement." (I) Revised Scope of Rehabilitation Work Section l.l(dd) is hereby added to the Agency Loan Agreement and shall read as follows: ""Revised Approved Scope of Rehabilitation W, ork" shall,mean the re,vised scope of rehabilitation work'approved by the Agency, attached to and incorporated in the Modification Agreement as Exhibit D, but which may be'amended with approval of the Agency as set forth in the Agreement." (g) Al!encyLoan. Section 2.1 of the Agency Loan Agreement is hereby deleted in its entirety and replaced with the following: "2.1 Loan "The Agency shall loan to the Borrower the Loan in the principal amountnot,to exceed Seven Million,Nine Hundred Ninety-One Thousand Dollars ($7,991,000) for the purposes set forth in Section'2.3 of this Agreement. The obligation to repay theLoan shall be evidenced by the Note in the form provided by the Agency. For the purposes of this Article 2, the Loan shall be treated in three (3) separate components: i. The "Acquisition Component" shall be in an amount up to Five Million Three Hundred Twenty-Four Thousand One Hundred Twenty-Three Dollars ($5,324,123). The Acquisition Component shall be used by Borrower to pay specified acquisition and predevelopment costs. ii. The "Completion Component" shall be in an amount not to exceed One Million Dollars ($1,000,000), subject to increase in the sole discretion of the Executive Director. The Completion Component shall be used by Borrower to pay down the Bond Loan. Ill. The ;'Conversion Component" shall be in an amount of One Million Six Hundred Sixty-Six Thousand EightHundred.Seventy-Seven Dollars ($1,666,877).or the balance of the Loan, whichever is less; and is intended,to provide additional permanent financing to the Borrower, provided that this amount may be reduced pursuant to Section 2.6 below." (h) Interest. Section 2.2(a) of the Agency Loan Agreement is hereby deleted in its entiretyandTeplaced with the following: "(a) Interest. Subject to the provisions of Section 2.2(b) below, commencing on the Agreement Date and continuing until the Conversion Pate the Loan shall bear no interest. 4 1552\021fJ71238.9 . . 118'16 Commencing on'the'Conve'rsioh,Date and contimiing'Ul1iil ihe.Loan is fully repaid, the outstanding principal balance of the Loan shalLaccrue'simple interest at the annual rate of three'percent (3%). To the extent that the Agency's share of Residual Receipts, as set forth in Section 2.7 of the Agreement, in any year is less than annual interest on the Loan attributable to this Section 2.2(a), any unpaid interest sluiil noUiccrue" (i) Conditions toUisbursement ofCompletion'ColDponent. Section 2.5(b) of the Agency Loan Agreement is hereby deleted in its entirety and replaced with the following: "(b) The Comoletion Comoonent. The Completion Component of the Loan shall be disbursed in accordance with.the following provisions of this Section 2.5(b), The Agency shall notbe obligated to make any disburseme'nts of the Completion Component of the Loan unless the following conditions precedentare satisfied prior to such disbursement of the Agency Loan: (i) The Modification Agreement has been recorded against the Property in the Office of the Recorder of the County of San Diego; (ii) The First Amended and Restated Agency Note has been' executed by the Borrower and delivered to the Agency; (iii) A title insurer reasonably acceptable to the Agency is unconditionally and irrevocably committed to issue endorsementNos. 110.6 and 108.8 or equivalent, to the Agency's ALTA Lender's Policy of insurance, insuring the continued priority of the Agency Deed of Trust in the amount not to exceed Seven Million Nine Hundred Ninety-One Thousand Dollars ($7,991,000); (iv) The,entire sum in an amount of Six Million Five Hundred Thousand Dollars of the Bond Loan has been disbtirsed to the Borrower, or such lesser amount as is needed:by the Borrower to complete the Revised Approved Scope of Rehabilitation while satisfying the 50-percent aggregate basis test under section 42(h)(4)(B) ofthelntemal Revenue Code; (v) The Borrower shall have completed the rehabilitation of the Development, recorded a Notice of Completion forthe rehabilitation work and received a sign-off from the City Building Department that the rehabilitation ,has been completed in accordance with the Revised Approved Scope of Rehabilitation Work attached to the ~ .. - . Modification Agreement as Exhibit D; and (vi) The Borrower shall have submitted,a written request to the Agency for disbursement of the Completion Component wherein the Borrower shall certify to the Agency that: (A) the entire.proceeds of the Bond Loan have"been disbursed to Borrower or such lesser amount as is needed by the Borrower to complete the Revised Approved Scope of Rehabilitation while,salisfying the 50-percent aggregate basis test under section 42(h)(4)(B) of the Internal Revenue Code; and (B) thatthe Borrower has satisfied the 50' percent aggregate basis test under section 42(h)(4)(B) of the Internal Revenue Code, 5 IS5HJ2\fj71238.9 . . 11817 accompanied by a copyof,the,recorded Notice of Ci:fmpletion and a copy ofthe sign-off from the City Building Department. So long as.the Agency finds, to its reasonable satisfaction, that the conditions set forth herein have been satisfied, the Agency shall fund the Completion Component." UJ Conditions to Disbursement of Conversion Component. Section 2.5(c) is hereby added to the Agency Loan Agreement and shall read as follows: "(c) The ConversionComoonent. In addition to the conditions set forth in Section 2.5( d), the Conversion Component of the Loan shall be disbursed in accordance with the following provisions of this Section 2.5(c) and in accorditncewith Section 2.6(lJ). The Agency shall not be obiigated to make any disbursements of the Conversion Component of the Loan unless the.following conditions precedent are satisfied prior to such disbursement of the Loan'or will be satisfied concurrently with the Agency's disbursement: (i) The Borrower has met all the requirements for disbursement.of the, Completion Component pursuant to Section 2.5(b) and' the Agency has disbursed the Completion Component; (ii) The Borrower has converted the Bond Loan from a construction loan to a permanent loan and paid the Bond Loan down to an approximate balance of Two Million Three Hundred Forty Thousand Dollars ($2,340,000); (iii) There exists no Default nor any act, failure, omission, or condition that would constitute an event of Default under this,Agreement; (iv) The title insurer has issued an LP-lO rewrite of the Agency's2006 ALTA Lender's Policy oflnsuranceinsuring the priority of the Deed of Trust in the amount of the Loan, free of all mechanics liens related to the rehabilitation of the Development, and subject only to such exceptions and exclusions as maybe reasonably acceptable to the Agency, and containing, such endorsements as the Agency may reasonably require; (v) The undisbursed proceeds of the Loan. together, with other funds or firm commitments for funds that the Borrower has, obtained in connection with the Development, are not less than the amount that the Agency determines is necessary to pay fdr"rehabilitation of the Development and to satisfy all of the covenants contained in this Agreement and the Regulatory Agreement; (vi) The Tax Credit Investor has, entered the Borrower and made a capital contribution in the approximate amount of ninety percent (90%) of Two Million Five HundtedSlxty Thousand Three Dollars ($2,560,003); and (vii) The Agency has received a written draw request from the Borrower, including certification that the conditions set forth in Section 2.5(a) and Section2.5(b) continue to be satisfied, and setting forth the proposed uses of funds consistent with the 6 1552\02\67l238.9 . . 11818 Approved Development Budget, the amount of funds neede.d;and where applicable, a copy of the bill or invoice covering costs incurred or to be incurred," (k) Determination of Final Conversion Component Disbursement. Section 2.6,ofthe Agency Loan Agreement is deleted in its entirety and replaced with the following: "Section 2.6 Determination of Final Conversion Component Disbursement. (a) The Parties agree that the Conversion Com~ponent may be reduced to reflect (i) any cost savings on items'listed in the Approved Development Budget ("Cost Savings") attached to the Modification Agreement as ExhibirB; and (ii) the Agency's share of proceeds, if'any, that the Borrower is able to secure from TCAC pursuimtio the requirements of Section 3.3 below (the "TCAP Gap Reduction Amount"). (b) The reduction of the Conversion Component shall be, made pursuant to the following procedure:F6110wing the completion of the rehabilitation and asa precondition of the Agency funding the Conversion Component, Borrower shall submit an accounting to the Agency of (i) actual costs incurred for'completion of tile rehabilitation of the Development and (ii) a written certificadon of the TCAP Gap Reduction Amount. The Conversion Component shallbe:adjusted downward in an amount equal to any Costs, Savings plus TCAP Gap Reduction Amount." (I) Repavment Schedule (Special ReDavme,iHrom Net Proceeds), Section 2.7(b) of the Agency Loan Agreement is deleted in its entirety and replaced with the following: "(b) Special Repavment from Net Proceeds. The Borrower shall tnakespecial repayment of the Loan in a,total amount equal to the Net Proceeds of Permanent Financing remaining after any applicable reduction pursuant to Section 2.6 above, and taking into accountthe Agency's share ofTCAC gap financing funds pursuant to Section 3.3 below. The amount oCtile Net Proceeds of Perm aneni Financing shall be determined by the Borrower and submitted to the Agency for approval on the date the Borrower submits the final Form 8629 cost audit for the Developmenuo the California Tax Credit Allocation Committee. The amount of the Net Proceeds of Permanent Financing'shall'be calculated using the actual amount of the, permanent Approved Financing,realized by the Borrower, provided that Borrower provides sufficient evidence that .the actUal amount of permanent Approved Financing realized by Borrower is the maximum a'tnount that Borrower could secure for the Development applying reasonable underwriting standards and the actual amount of the limited partner equity contribution. The Borrower shall. also submit to the Agency any additional documentation:sufficientto verifY the amount of the Net Proceeds of Permanent Financing. The Agency shall approve ordisapprove Borrower's:determination of the amount of the Net Proceeds of Permanent Financing in writing'wiihiti.thirty (30) days of its receipt of Borrower's cost'audit and supplemental documentation. If Borrower's determination is disapproved by the Agency, Borrower shall re-suqmitaocwnentation to the Agency until Agency approval is obtained. The Net Proceeds of Permanent'Financing shall be due the Agency from the Borrower no later 7 155)\02\671238:9 . . 11819 than fiye(5) days fOllowing the date Borrower receives its finalcapital contribution froin the Borrower's limi'ted partnerinvestor. As of the' date of the Agreement; this final capital contribution is expected to be received on or before August 30, 2010," (m) SoecialDeflnitions. Section 2.7(e)(i) through 27(e)(iii) of the Agency Loan Agreement is deleted in its entirety and replaced with the following: "(i) "AnnuaLOperaiing Expenses" "Annual Operating Expenses" with respect to a particularcalendar,yearshall mean the following costs reasonably and actually incurred for operation an<i maintenance of the DevelopmenUo the extent that they are consistent with an annUaLindependent audit performed by a certified public accountant using generally accepted accounting principles, and subjecuoannwil Agency approval: property taxes and,'assessments imposed on the Development; ,debt service currently due on a non-optional basis (excluding debt service due from,residual receipts or surplus cash of the Development) oh'loans associated with development of the Development'agQ approved by the Agency,on including but not limited to the Bond FinanCing; property management fees and reiinbursements, not to exceed fees, and reimbursements,which are standard in the industry and pursuant to a management,contract approved by the Agency; premiums for property' damage and liability insurance; utility services not paid for directly by residents; including water, sewer, electricity, gasand trash collection; maintenance'and repair; any annual license or certificate of occupancy fees required for operation uftbe Development; security services; advertising and marketing; cash deposited intoreservesJor capital replacements of the Development in an amouni not to exceed Three Hundred Eighty-Three Dollars ($383) per unit per year or the amount required by permanent lender or investor, whichever is greater; cash deposited into. an operating reserve in,an amount not to exceed three (3) months of monthly Operating Expenses orthe amount required by permanent lender of investor, whichever is greater; Issuer Fee in an amount not to exceed Seven Thousand FiveHundred Dollars ($7,500) per year (withnoannul\le~calation); Trustee Fee in an amount not to exceed Two Thousand Six Hundred Fifty.oollars ($2,650) per year (with no annnal escalation); Limited Partner Asset Management Fee in an amount not to'exceed Five Thousand Dollars ($5,000) per year and increasing each year by notmorNhan three and one half percent (3.5%); costs of resident services not to exceed Ten Thousand Dollars ($10,000) per year and increasing each year by not more than three and one half percent (3.5%) plus such additional amonnt, if any, approved by the Agency each year for resident services pursuant to Section 3.18 of the Loan Agreement; extraordinary operating costs specifically approved ,by the Agency; payments of deductibles in connection with casualty insurance, claims not normally paid from reserves; the amount of uninsured losses actually'replaced, repaired or restored, and not normally paid from reserves; and other ordinary and reasonable operating expenses approved by the Agency and not listed above. Annual Operating Expenses shall not includethefolJowing: depreciation, amortization, depletion or other non-cash expenses or anyamounl expended from a reserve account The Approved Operating Budget for the first (I ") year of operation of the Development following completion of rehabilitation is attached to the Modification Agreement as Exhibit E. 8 1552\02\Jj71238.9 . . 1182'0 _":\ '.1'1 } (ii) "GeneralPartnerPriority Distribution" shall,meanthe priority distribution to the General Partner in imamount not to exceed TwentyTholJsand Dollars ($20,000) per year and increasing each year by not more than three and one halfpercent (3,50Ii,). (iii) "Gross Revenue" with respect to a panicular, calendar year, shall mean all revenue, income,receipls, and other consideration actually received from operation and leaSIng of the Development. "Gross Revenue" shall incluge, but not be lirhited to: all rents, fees and charges paid by residents, Section 8 payments or othenentalsubsidy payments received for the dwelling units, deposits forfeited,byresidents, all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements resulting'tnactual income; proceeds from vending and laundry room machines; the proceeds'of business interruption or similarinsurance; the proceeds,of casualty insurance to the extent not utilized to repair or rebuilci the Development (or applied toward the costofrecovering such proceeds) and not applied to repay the Bond Loan; and condemnation'awardsfor a taking of part or all oJtheDevelopmeritfota temporary period. "Gross ,Revenue" shall also include the;fair market value of any goods or services provided in;consideration for the leasing or other use of any portion onlle Development. "Gross Revenue" shall not include residents' security deposits, loan proceeds, capital contributions or similar advances. (iv) "Resident Services Reserve Priority Distributipn" shall mean the priority distribution(s) in a maximum cumulative amount not to exceed Seventy-Five Thousand Dollars ($75,000) to Capitalize ihe Resident Services Reserve, The Resident Service Reserve Priority Distribution shall only be paid pursuant to the, Approved Development Budget attached to and incorporated in the Modification Agreement as ExhibitB: (v) "Residual 'Receipts" in a particular calendar year shall mean the amount by which Gross Revenue (as defined in Section 2.7(e)(iii)) exceeds the sum or' (A)Annual Operating Expenses (as defined in Section 2.7(e)(i)) and (B) the General Partner Priority Distribution (as defined in Section 2.7(e)(ii)) plus (C) the Resident Services Reserve Priority Distribution as permitted pursuant to Section 2.7(e)(iv)." (n) Tax'Credits; Limited Partner Approvaland Equity Gap Reouirements. Section 3.3 of the Agency Loan Agreement is deleted in its entirety and replaced with the following: "3.3 Tax CnJditLimited Partner and Eauitv GaD Reauirements. The Agency henibympproves UnionB'ankofCalifomia, NAas thelow-income housing tax credit limited partneriiwestor. As described in Recital E of the Modification Agreement, the loss of the original investor limited partlier and the fiscal crisis created an equity gap of approximately Five Hundred Sixty-Two Thousand'Dollars($562,000). The Borrower hereby agrees to submit a feasibility report analyzirigthe feasibility of obtaining a loan from TCAC to fill pan or all of the gap created by the reduction in tax credit equity committed to the Development not later than May 10,2009. No later than five (5) days after submission of the feasibility report, the Agency shall, determine within its reasonable discretion whether the Borrower will be required to 'submit an application to TCAC for a loan to finance part or all of the tax credit equity gap to defray the cost of 9 1552\02\671238.9 . . //(02 / '.. rehabilitatiowof theDevelopment, and shall notify the Bdfrower in writing of its decisiQn. If the Agency'detemlines, that the Borrower should'subniit an application to TCAG, the Borrower shall do so within the deadlines and according to the procedures set forth by TCAC. If Borrower obtains a loan from TCAC to finance part or all of the tax creqitequitygap, the funds obtained from TCAC shall be used to pay down Agency Loan as part of the Net Proceeds of Permanent Financing Paymentrequired under. Section 2.7(0) of this Agreement and to pay down part or all of the Sponsor Loan. Borrower shall make repayments oftheAgency Loan equal to fiftypercent (50%) ,of the firstFour Hundred Twenty Thousand Dollars ($420,000) of TCAC ,gap'financing funds, if any, and one-hundred (!OO%),ofTCAC gap'financing funds, ifany, over Four Hundred Twenty Thousand Doll~rs ($420,000). Borrower shall make repayments of the Sponsor Loan (as defined in Section I. I (e)(v)l equal to fifty percent (50%}ofthe first Four Hundred Twenty Thousand Dollars'($420,000) ofTCAC gap financing funds, if any." (0) Completion of Rehabilitation. Section'.3.7 of the Agency Loan Agreement is deleted in its entirety and replaced with the fo llowing: "Borrower shall dilIgently prosecute rehabilitation of the Development to completion as set forth in:the Schedule of Performance, and shall cause the completion of the rehabilitation of the Development no later than November 30,2009, as set.forth ih the approved Schedule ofPerfonnance attached and incorporated to the Modification Agreement as Exhibit c." (P) Mairitenanceand Dama!!e; Condemnation. Section 4'.7(b) of the Agency Loan Agreement is deleted in its entirety and replaced with the following: "(b) Subjectto,the requirements of seniorlehders, and if economically feasible in the Agency's reasonable judgment, if any improvemenfnow or in the future on the Property is damaged, destroyed, or partially condemned, then Borrower shall, at its cost and expense, diligently-undertake repair or restore such improvements consistent with the plans and specifications approved by the Agency with such changes as have been approved by the Agency. Such work or repair shall be commenced no later than the later of one hundred twenty (120) days after the damage or loss occurs or sixty (60) days following receipt oftheinsurarice proceeds or condemnation'proceeds'and shall be completed within a reasonable time thereafter. Any insurance proceeds collected for suchdamage,or, destruction or condemnation proceeds collected for partial condemnation shall be applied to the cost of such repairs or restoration and,:ifsuch insurance;proceeds shall be insufficient for such purpose, then Borrower shall make up the deficiency." (q) Creation of Reserve Funds. Section 4.13 ofthe Agency Loan Agreement is deleted!n its' entirety and replaced with the following: "Section 4.13 Creation of Reserve Funds. Borrower agrees to create and maintain two reserves: Operating Reserve with an initial capitalization of One Hundred Eleven Thousand Eight Hundred Sixty Dollars ($11 I ,860) and a Replacement Reserve with an initial capitalization of Thirty-Three Thousand Dollars ($33,000) to use for emergency repairs, transitional management costs, and other costs related to the 10 1552'021671238.9 . . 11822 rehatiilifution and:lease'up of the Development. The OperatingR,eserve shall be capitalized,atfUnding ortheConversion Component'and the Replaceiilent Reserve shall be capitalized at funding of the Conversion Component." (r) Resident Se'rviCes Bud!!et Section 4.15 of theAgency Loan Agreement is deleted in its entirety. (s) Notices, Demands and Communications. Section 8,8ofthe Agency Loan Agreement is amended to delete the phrase "Address to be provided by Borrower ala later date." and to insert in its place the following: "Union Bank of Cali fomi a, N.A. 200 Pringle Street, Suite 355 Walnut Creek, CA 94596" 2. AmendmenrtoA!!encv Deed of Trust. The Agency Deed of Trust is hereby amended as follows: . "(a) Section l.l of the Agency Deed of Trust is hereby deleted in its entirety and replaced with the following: "The term "Loan Agreement" means that certain Loan Agreement between Trustor and Beneficiary, of even date herewith, as 'amended by the First Redevelopment Agency Loan Modification Agreementdated as of [April() I, 2009], providing for the Beneficiary to loan h}'the Trustor Seven Million,Nine Hundred Ninety-One Thousand Dollars ($7,991,000) for the,acquisitionand permanent financing of the Property" (b) Section 1.3 of the Agency Deed of Trust is hereby deleted in its entirety and replaced with the following: "The term "Note" means the First Amended,and Restated Agency Promissory Notein the principal amount of Seven MilIion,Nine Hundred Ninety- One Thousand Dollars'($7,99I ,000) dated [April aL 2009], executed by the Trustor in favor of the Beneficiary, thepaymentof which is secured by this Deed of Trust (A copy of the Note is on file wiih the Beneficiary and terms and provisions of the Note are incorporated herein by reference.)" 3. Amended Al!encvPromissorv Note. Concurrently with the closing of the Bond Loan,'the BorrowerwilI execute and deliver into escrow, in a form provided by the Agency, a First,Amended andR!"stated Agency Promissory Note in the ,amount of Seven Million Nine Huridred Ninety-One'Thousand Dollars ($7,991,000) (the "j\mended Agency Note"), the original of this Agreement shall be recorded against the Property, the Original Agency Note shall be cancelled arid retuined to the Borrov.:er, the executed Amended Agency Note shall be delivered'to the Agency, qnd Chicago Title Company shall issue endorsement Nos. 110.6 and 108.8 or equivalent, to the Agency's ALTA Lender's Policy ofinsural}ce; insuring the continued priority of the Agency Deed of Trust in the amount of Seven MilIionNine Hundred Ninety-One Thousand Dol1ars ($7,991,000). 11 l552\02\,6712JS.9 . . 11823 4. Attomev's Fees Enforcement. lfany attomey is engaged by any party hereto to enforce or defend'any provision of this Modification Agreement, the prev;ilingparty or parties shall be entitled to costs and reasonable attomey's fees. S. Effective Date. This Modification Agreement and amendments and deletions described in this Modification Agreement shall be effective as of the date first set forth above, G, Full Force and Effect. Except as set forth in this Modification Agreement, the Loan Documents remain unmodified and are in full force and effect. 7. Successors and Assigtis, This Modification Agreement shall be binding on and inure to the benefit of the legal representatives, heirs, successors and assigns of the parties. 8. lnvaliditv. Any provision of this Modification Agreefilent which is determined by a court to be invalid or unenforceable shall be deemed severed here from, and the remaining provisions shall remain'in full force and effect as if the invalid or unenforceable provision had not been a part hereof. 9. Headings. TheheadiJigs used in this Modification Agreement arefor convenience only and shall be disregarded in interpreting the substantive provisions of this Modification Agreement. 10. California Law. This Modification Agreement shall be govemed by and construed in accordance with the laws of.the State of California. II. Counteroarts. This Modification Agreement may be signed by the different parties hereto in counterparts, each,ofwhich shall be deemed an original but all of which , , together shall constitute one and the same agreement. 12 1552\02\671238:? . . 11824 IN WITNESS WHEREOF, the parties have executed'this Agreement as of the day first above written, BORROWER: OAK KNOLL HOUSING ASSOCIATES, L.P., a Califomia limited partnership By: Fallbrook Renaissance LLC, a California limited liability company, its general partner By: CQll1l11unity HonsingWorks"a California nonprofit corporation Its: Ids, President AGENCY: POW A Y REDEVELOPMENT AGENCY, a public body corporate and politic Rod Gould, Executive Director By: 13 1552\021f,7t238,9 '. . CALlFORNIA,ALl.~URPOSE"ACKNOWLEDGMENT . _,~__._ ',_'__ _.~ ~_ n."" ~......._ .," .> _ ~.. ". .0'. ~.__. ..r '... .,,_.....__~. .v.", ___ '..~n~._._ ._. _. _'. . _ . . ".. .~~~~~~~~~~dT~~~Z'fi('.RJ.<:'~ 1182.5 before me, . } State of California County of S~b('~ S('fl On S! II I UJO'f Date personally appeared SIIS.(,/I1 ?Jjt~ Name(s) of Signer(s) MICHAEL WA'(NE,KEllEY .'.. Commission # 1693811 ~ .. Nota, ry Public, Callfo mla ,~ . " , . San FranCisc(),:,.~C?:;~!V . , My Comm. Explr!', Sep'15,'201 0 who proved to me on Jhe basis of satisfactClry'evid!,O,ce io be the person~ whosE!,' name~@ElFe- subscribed to the wit~ instrument and acknowled~. t? ,me th, at ~tRer executedJhe sameln,J*,~r authonzed capacity,(ies[ and that by ~1I1eif signature~ on IhEJ instrument the per!'onls'f;" pi the en.tity uPClnbe,half of which the person(.9f acted,executed the iristrur11ent. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Place. Notary Seal Above Signature OPTIONAL Though the information beli:)'w,is~o(iequired by'law, it may prove valuable topersons. relying on the document and could prevent fraudulerit.removarand reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacily(ies) Claimed by Signer(s) Signer's Name: o Individual o CorporateOffice(- Title(s): o partnei'-D limited 0 General o Attorneydn Faci o "Trustee Top,of thumb here o Guardian or Conservator o 'Other: Signer's Name: o Individual o Corporate Officer - Title(s): o Partner 0 Limited 0 General D Attorney in Fact o Trustee o Guardian or Conservator o Other: 'TOp althumb here Signer Is'Representing: Signer Is Representing: y'>~~~~~~--g".~~~~~~~~~~'~'<'O:'!:0~-~~~-~"~~v~~Hv~~~~~~~~~~~'SiV~~~ @2oo7,National Noia,iyAssociallon. 9350 De Soto"AVe" P.O. Box 2402. Chalsworth, CA 91313-2402;; Www.NationalN~larY:org lIe~ #s96i Reorder: Call TolI-,Free 1.800:S76~6827 . . 11826 Sf A TE OF CALIFORNIA ) ) ) COUNTY OFSAN DIEGO 'J\neL\lL/jLbl \ IVl~ ,Notary Public, personally appeared ,'\ , , proved to me on the basis of satisfactory evidence to be the person(s) whosenam@/ak'Subscribed to the within instrument and acknowledged to me ,that ~h~y executed the;sa~e in @lhOOtheir authorIZed capaclty(~, and.Jha!bY~~lr slgnatur~ on 'the mstrument the person(8}; or the entity upon behalf of which the personWacted, executed the instrument. On 4/1,'01 I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct . l.~~:l i IOlIIGIY PuOlIc . CCIUfOmlo I Dan DIego County - rx\f\O i ~ n n ~~~~_l.t Nota~ STATE OF CALIFORNIA ) ) ) COUNTY OF SAN DIEGO On q Notary Public, personally appeared , proved to me on the basis of satisfactory evidence 0 :th esb (5) who . (s@1resubscribedto the within instrument and~owledgedtomethat he~/the~~uted the same in hi~their authorIZed ~les), and that byhi~r/theIf s~(s) on the mstrument the@ilil(s), or the entity upon behalf of which th~(s) acted, executed the.instrument. 1 certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seaL ~~ .7r~>~ I @.~", ' LUCILLE MARY GU LLI I i ,CommissklnNo,,1812855 n D . ' ,NOTARY PUBUC. CALIFORNIA ~ I SAN OlEGO COUNTY -I My CoI,.,. EXpires SeptOmtiOi.12, 2012 I 55i1oZi67'f23S:9 . . 11827 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY The land is situated in the City of Po way, County of San Diego, State of California, and is described as follows: THOSE PORTIONS OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 14 AND OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 23, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY, APPROVED NOVEMBER 19, 1880 AND AUGUST 29, 1890, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT V,'HICH IS 30.00 FEET DISTANT SOUTHERLY MEASURED AT RIGHT ANGLES, FROM THE CENTER LINE OF THE 40.00 FOOT WIDE COUNTY ROAD TO POWAY, SAID POINT OF COMMENCEMENT BEARING NORTH 590 54' 20" EAST 454.09 FEET FROM THE POINT OF INTERSECTION OF THE SOUTHERLY LINE OF SAID SECTION 14, WITH THE CENTER LINE OF MISSION ROAD I-A, AT STATION 378+70.90 THEREOF, AS SHOWN ON SHEET 15 OF THE MAP OF SAID MISSION ROAD I-A, SAN DIEGO COUNTY HIGHWAY COMMISSION ON FILE IN THE OFFICE OF THE SURVEYOR OF SAID COUNTY AND SAID POINT OF INTERSECTION BEARING NORTH 880 57' 00" WEST 3955.50 FEET FROM THE SOUTHEAST CORNER OF SAID SECTION 14; THENCE NORTH 83020' 00" EAST ALONG A LINE PARALLEL WITH AND 30.00 FEET DISTANT AT RIGHT ANGLES SOUTHERLY FROM THE CENTER LINE OF SAID COUNTY ROAD TO POWAY, 239.38 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 830 20' 00" EAST ALONG SAID PARALLEL LINE 234.55 FEET TO THE NORTHWEST CORNER OF THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION'14, CONVEYED TO TIlE BANK OF ITALY NATIONAL TRUST AND SAVINGS ASSOCIATION, TO EDWARD C. MC ALEES, ET UX, BY DEED DATED JULY I, 1927 AND RECORDED IN BOOK 1361, PAGE 278 OF DEEDS; THENCE SOUTH 000 43' 00" WEST ALONG THE WESTERLY LINE OF SAID PORTION CONVEYED TO MC ALEES AND ALONG THE SOUTHERLY PROLONGATION OF SAID WESTERLY LINE, A DISTANCE OF 330,00 FEET; THENCE SOUTH 630 29' 15" WEST 224.94 FEET; THENCE SOUTH 70008' 45" WEST 34.82 FEET; THENCE NORTH 000 43' 00" EAST 415.00 FEET TO THE TRUE POINT OF BEGINNING. A-I 1552\.02\671238.9 Pogel Oak KflO~ ACQutl;ltion and RehabllftatJ.on. Community Housing wor1<s with Bank of Amert(;o Financing and Union Bonk as Investor. PrelimInary Economc Projecliofl5. 4% Credits 411/09 9;49 AM 'W " " AI " as Be , SOUROCES AND USES OF FUr-.OS 2 3 SOURCES OF FUNDS .,. 050 , FimMortgage 2,340,000 Bank of Amen,a Tax E~empt Mortgage Loon, Fully AmortIZed, 30/30 with yr. 18 Adjustme 6.15% 1.15 :I> 5 4,160,000 ConstwnJonloan from Bank of AmerOc<l 4,60% '" , 3,100,000 Interim Loan repaid fmm COnSU1JCtlOn Loan and City Fundifl!:l 6.75% " '" , Second Mortgage (See Line 68 lor Maximum) 7,429.000 C"tyof POw<ivloan, 55 Year Term, 3% Simple (tontlngent), 55 Years. ResidtJalReceipts 0000% , ;':".:'119.238 Income fromOperatrons (recervedprior 10 bond closing) ro " , 210,000 Unsecured Loan fromCHW " 0 " 25,000 Refund of Ulility DepOsits C'. <: n 551.2~1 Project ShortfaU anucipated lobe funded by City of Poway on same terms Ul M " 0 AHPthroughBolA ro tJ '. " General P.'lner Caplta] 362.555 Coros!TuctionContract " limited panner Capital 2,560,003 2.130.789 '" " TOTAlSOURCfS 20,867.038 tJ " SA5lSfOR 4% BASIS FOR 4% EXPEN5EDI '" '" '" " USES Of FUNDS OfPREOASLE ACQ!.JISITlONCREDIT RfHA81UTATIONCREOlT A\.IORTlZED NONDEPRECIABLE " <: X " Land Acquisition 2,390,000 2,390.000 '" M ::c " 8,jildingAcquosinon@ldebt. 4,890,000 4,890,000 4,890,000 20 Extension Fee 60,000 10,302 40,302 19,698 t-' H tJj " App.",isL TldeimdEs-<;rowAcqui,]tion 27,500 18,321 18.321 9,179 '" 0 tJj , " New CommwHy 8uilding Space 201.593 201,593 201,593 '" '" H ~ 23 5itelmprovement> 420,272 420,272 420,Z72 rT :.: 8 " StructJ,Jres 1,325,578 1,325,578 1,325,578 ro M 23 Additional Improvements Requested t>'/City 0 0 0 " 8uff<:jerOveme3d,Pmfrr, MldGimeralR",!!uiremenlS .249,~'1 249,411 249,411 '" Z tJj " Per!lon.IPropertyinConslructionContract 78.000 78,000 78,000 8 23 ConstructJOnContmgency 233.328 233,328 233,328 '" 29 Per~ollalPropertiybyOwner 15,000 15,000 15,000 Ul tJj 30 COntractorlnsurance&Bl:lnd 57,528 57,528 57,528 C " "..tacatian 733,346 25,000 25.000 708,346 " Architecture & EngineennrJ 160,100 160,100 160,100 0 tJ 33 Soils, Survey, CFV~. Testlng, etc, 57,61S 57,615 57,615 '" G1 " UtiltyDepasits 25,000 25,000 M 35 MunicipiilFees 20,000 20,000 20,000 :I> 8 " Predcvelopment Interest & Fee 10,2:96 10,2:96 10,296 'd " In{~rimOperatingCosts 0 0 " Apo.al5al 13,000 13000 13,000 " 39 InteniiiConstructionPeriodlnterest&I-tOIdI"!lCosts 13~,718 134.718 C'. <0 ConstruetlonPertodlnterest 2:10,067 39,100 39,100 170.967 ~ " Real Estate Transfer Tax 12,000 7,995 7.995 4,005 " Cours.e. of Construction 'Insurance 27,000 27,000 27,000 " CortSt..octirm'M:.nagemem 52,000 52,000 52.000 ~ " CoSt of issuance' 248,191 2:"&,191 " Title &'Esi:row.Constr\.ICtionCJosm~ 10,000 10,000 10,000 . " Tltle'&Esnow,Mor'tg3geCloslng . 5,000 S,OOO N " 50ft Cost Coritingency 74,288 74,288 74,288 0 0 " legal-AcqULsition 10,000 6,662 6,662 3,338 " lagal-CoostrucoonLoilllCloslng 10,000 10,000 10,000 0 so Ll!g.I-Mort.'1i1geLoanCloSIlQ 5,000 5,000 '" " L!1g.I- Org~n;zalon 5.000 5,000 52 L<!9al-Syndicatiofl 75,000 75,000 53 T~xCreditAllocationCommltteeFees 26,324 26,324 " Market Study 6,250 6,250 f-Io 55 5yndicalionConsulrant 40,000 40.000 SS Marketilll<.odResidentServices8cpenses 10,000 10,000 ...,. " Development Fee 1,518,77~ 1,156218 713.548 4~2,670 352,556 58 Audt 15,000 15,000 00 59 Cilpitalized Services (ToCHW,Nol LP) 0 0 60 C:3pitarl2.edReplacementReserve 33.000 33,000 ~ " Cavitalized OpeJPtll1.Q. ReseNe (3 Mos. hpensecs) 111,860 111,660 " Repayment of Intenm Loan 3,100,000 3,100,000 00 " ~epaymenlQfConstruction Loal'l 4.160,000 4,160,000 " " TOTALPRQJECTC05TS 20.667.018 919B,607 5,676,828 3521.779 6 6 4~9 11.041983 "".2 , 1 INCOME.E~PENSESANOCASHFLCWANALYS.IS 2 , 4 Urnl S;~'" 5 ZB.droom@S()%ofAMI I; 2 Bed""", @ 50% of AMI 72Bedtnooi_Manage-- OJ , N , , 11' " n " 'n ,~ " " " ZO " n " " " " " " '" 3 " " n " " " " " " '" " ., " '" " , " '" " ;0 " 2 53 " 5S S6 " " " ,,' "' f,;> , (4 ,-,S SERVlCES'<fSERVE In<t,aDepo''' '/'flnd.......1 1W3~<e. Interffilon64anoe. EMory,..." ,alanOe ~e5rd"ntilll V<IOlncy LmindryandMlm:ell."e"""lncome OPERA1JNGEXPENSES r~..~IFe<: 'ssuerr.;oote>ringFee NETO~TINGIIIICCME USES Of NET INCOME Debl Serv-C..F,,;1 "Iortgage Repboement ReseM: Cleposil NetCashA\/3iIableforDslfibLltit>nS USES OF AVAlLAElLE (A$fl Priorlly DIstrtbulion 10 the L? f'ayment for Re"dent Services Oe!err~Dev~pe,Fee Pf1ontyOlstr<bulionto llleGP Pr1ontyDfst'ibutlonfufResklenlSe,vcesRe""",,, City aff'oway loan Repaymenl c"shFlowtoG"""",!Partner CashFlcwtoLJmlled":ortrJer ANNl.JAL Of'[RATING BtIOGET Property Mariagomerll Fee Adm..,~..t'\'eCosts Uli'UM PayrorIE.~s Opemtingand Manlern"". Pro;lertylnsur.nce hlt;>ResH;""'Ser\ti<;"" R~d_etltserviC""(lnitjalBudgel$38,OSO) Prt>perty Tax Assessm..,ts CairomiaOartnersh<pTax TOTALOPERA"!INGEXPEN$ES DPERAllNG RESERVE ANALY51S )"pnsi,map.,...h'lgR"se"'" \'ILthdr3wals IOI..'es,enBaI= End "rYearB.lance F.dor 2.50% 2.50% 5~!JIGl.1 5.00% 2_50% 50.0% 90.00% 1000% II 01 Un,s " " , 3.50% 3.5% 3.50% 3.$0% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50'lb 3.50% 0.00% Oak Knoll Ac~;si'ion and R"iabll;t~l;on, Commuc"y HDlJsing Wor1<s IOith &3"" 01 Am.,;"" F nallOflg a."1d Ur1LOn Bank as l~v~S(or. P,~lm;""ry EoonomJC ?rojoo'><Jf!s,.1% Oed" 1n<".Rel1t' $78Z $945 , " '" An"",,1 23,098 16.657 70,003 81,136 36,101 15,504 , 10,000 2,700 '00 255.959 11,890 3.00% 3.00% "" , , Utl~lyAllowaflC"" 2 bedroom -170,659 .1.767 .2.667 os~ 2009 2010 162,656 189,000 , 248.050 283.225 o 351656 .70,331 5408 536,275 .26.814 8,247 -261.943 -2.650 --4.000 111,1>40 249.115 o -13,277 98.363 '129,303 -20,381 100,431 1.79 .3.333 -30.033 -5.100 -46.101 -13,333 -51663 -20,700 .23,337 -2,596 -2.337 -260 15,392 11.105 46,669 54,091 ~4.067 10,336 6,667 1,800 m 170,659 23,627 17,046 71,636 83,02.9 36,943 15,8(,6 10,233 2,763 "'" 261,943 ]3,277 o ]3,2.77 51.663 51.663 , ".663 25':,252 2'1S,431 o S49,682 .27,484 6.453 -271,083 -2.650 .~.OOO 252,91B -171,071 -21,094 60.753 1,36 -5,253 .45,743 24,~54 17,6~2 74.144 85,935 38,236 16.421 10,592 2,860 "" 271,083 1.035 20.3el "8 3~.056 o o 23.337 51,663 , 75.000 o " W11 260,608 302,816 o 563,424 _28,171 8,665 -280,543 -2,6S0 -4,000 2~6,1,,4 _171.071 -21,932 63.821 1.37 -5,411 -47,34~ -9.757 -11,066 o o o o o , o 10.962 2.!160 80' 280,543 1.035 21 J9~ 21.832 -18.724 1,685 60.966 1,022 56,172 ?S,OOO , 75000 2012 267,123 310,387 o 577,510 -25,875 B,881 "290,334 .2,650 -4.000 lljlJ,~::n '171.071 .22.596 66,864 1.39 25,310 18,260 76,739 88,943 39,575 16,996 11,346 '3.063 '600 290,334 1.035 75,000 o 75.000 2013 2014 273,801 318,146 , 591.94(j' -29,597 9,103 -300.468 -2.650 -1,000 264,.,36 -171,071 -23,381 69,877 1.~1 .5,573 -49,001 .12,29C , , , , -5,74~ ~50.7j 6 -13,~21 , o , , 26.195 HI.899 79,425 92,056 ~O.960 17,591 11,743 ],171 BOO 300.4<i8 1.035 22.,~96 1,829 85,39\ 2.562 111,340 75,000 , 75.000 280.646 326,100 , 505.74ti .30.337 9,331 -3l0.9SG -2.650 -4.000 268.\34 .171,071 .2~.206 72.856 1,43 -5,912 .52,491 -14,453 o o o o 27,112 19,560 82,204 95,278 ~2,393 18.206 12,154 3,282 880 310,956 1,035 23,387 3,340 13!l,BB6 75,000 o ,00 , F"Slt.."rFroporlloM 2010, 287,662 334.253 , 621.915 .31.096 9564 .321,812 -2,650 --4,000 271,922. .171,071 .~5,053 75,797 1,44 .6,090 .33.667 -25A~6 ~6.0,;1 20.245 85,082 98,613 43.877 ;8.8~4 29.0~3 20,953 68.059 102.06~ ~5,413 19,503 12,57S 3.396 800 321.812 1.03, Z~,206 ~,167 168,106 75,000 o ,,' i..~! ~.i 2016 "-S~,BS-'I 342,609 , 637,~63 .3',e!3 9.803 -333.047 '2,Wl .4,000 2.75.1196 -171.071 -25.930 79,6gs 1.~6 -6,272 -34,845 -26,336 -5,296 -4.768 .530 30,060 21.687 91,142 105,636 47,002 20,196 13,020 3,515 8" 333.0~7 1.035 2~.053 25,'130 -64,053 5,0.0.3 115,026 75.()()(j o 75000 , 2017 302225 3S1,17~ o 653,"-00 -32,670 1O,0~8 -34-4.676 -2.lISO -4,000 ~79A52 -171,07\ -26,837 81,S~3 1,48 .5,621 .5,05S -562 31,112 22.446 94,331 109.334 48,647 20,592 13,475 3,638 8" 344,676 L035 3,l51 145,314 75,000 o 7" .':10 2018 309)81 359954 , 669.734 -33.~87 10,S-aO .3S6,712 .2,650 --4,000 283,t86 -171,071 -27,777 ~4.338 1,49 -6,461 .36.064 .....654 "37.327 .27,258 .28,212 .5,880 -5,2'1"- .588 32,201 23.231 97,633 113,160 50,350 21,623 \3,9,17 3,766 800 356,712 1.035 26,037 4,359 177.451 75,000 o 75000 o 2019 317,925 368,952 o 686,478 -34.324 10,557 '369,l119 .2,650 -4,000 288,893 .)71,071 .28,749 87,072 1.51 .29,199 .6,072 -5..'65 .607 33,328 24,045 101,050 117,121 52.112 22,380 14/,35 3.897 ." 369,169 L035 27J.7 5.324 211.523 , 75.000 , 75000 2020 703,640 -35.162 10,821 -382,061 .2650 "80 290,567 -\71,071 .29.755 89.741 1.52 -6,B54 .38.633 -6.193 _5.57-1 .619 34,49~ 24,886 104.,87 12\,220 53.536 23,164 14,'140 4,034 8" 382,061 1.035 2B.74~ 6.346 2~7,624 75,000 o 75,000 Q 2021 325.~6~ 378,176 o 333.600 387.631 o 721,231 -36.062 11,092 '395,406 .2,650 '4,000 2'34,205 .171,071 -30,197 92.337 1.54 .7,0;;0 -39,985 -..271 -41,395 -30,221 -31.279 -6.2J7 .5,01-1 -624 35,702 25,757 108 2~8 12',463 55,824 23.974 15.463 ~.175 '80 395.406 1.035 2~.'S5 30.797 "123.812 7,429 162.037 75,000 , 75000 2022 341,940 397,32" , , 139,262 .36,%3 11,3~9 -409217 .2,65~ --4,000 2:17,801 -171,071 -31,879 S4.855. ::5:: -7,4g{; -42,83:: -6,201 -5,581 -620 -32.374 -6,079 -S,471 -60E 36,951 26,659 112,036 129,854 57,778 24.813 16.004 ~,321 .80 409,217 1.035 4,961 198.773 75,000 , 75000 "/li099,49",,", 2023 2024 350.489 ~07.25" o 75-7:743 -37.887 11,653 -423,511 -2.650 ....000 '. 301.346 .171,071 "32,990 97,286 1.57 -7,714 .44.332 .33,507 .5.%6 -5.280 -587 38.244 27,592 ;;5,957 13";399 5S,800 25,682 16.565 4,472 '" 423,511 1,035 31,675 . 32,990 5,963 237,726 75,000 , 75.000 ,.... ,...., 90 t,:) ~ < 75.000 o 7~, 00 Page 3 Oa, KM' Aequ'<ft,on and PehabilitatlOt1. Communlry Housing Works with Sani< 01 Amer ~ F,,,a,,cw.g and Unbn Bonlr as Inv""toc, P'e''''''''''Y Eco~omk ~Jection.. 4% Cre05ts 4/1/09 9:49 AM '" " '" " " '" " '0 " ., " " ~ '" SOURCES AND USES Of CAMAl CONTRJI>UTIONS AND LOAN PROCEEDS 2340.00a .425:l.000 4,160,000 3,100,0()() 1 19 ~::l~ 210.000 25,000 561,241 0 362,556 2.56Q,OC3 '" ,,' Cons<ruttion interim ncome from Loan UtOity " U' 101O'1goge City 01 P"",ay C~" Loa" Ol>e,atio,s FromOfN OepostRefund 5/'10",1311 ,", Capital Capttal Totals L.ndAequ..'ion 2.390.000 2,39D.000 " 2.39J.OOO Buid'ngAequ<Sltion~ <leoo- 4,890,000 2.121.330 2,762.670 4,8~.OOO E.tenslanfee ",,000 6J.OOC 60.000 App..alsi:Titlea,dEscro"NAcquts;tlon 27,500 27,500 27,500 New Community 8u~dingSpace 201,593 201.SSg 201593 Site]mp.ro~;,mel'ltS 420,zn 420,2:72 420272 S\ruetW"es 1,325,578 1,196.340 119238 10.000 1,325576 Addi"o.riallmprovemen,.Reque<te<lbyOty , " B~':de'Qverhead, ~ofFt. and Ge.......1Requrements 249.411 249411 249.411 . Pe<Scn.;oli>ropeny~ConStrutti""Con":',,, 78,000 78.000 78.000 a,'!"t.r<ict"""Cont~' 233.328 233,328 2D328 Po,...onal~opef1:iybyo.,.",or 15.000 15,DOD '>000 COlltr-..::tor I~"",""ee & Sond 57,528 57,528 57,528 Retoe.non 133,346 " 688,320 <.'45,026 733,3~o Arthrtettu,"& Engi""",,,,,,, 160,100 134.100 26,OOQ 160,100 5oils, Surve~, DviI. TestJ"", etc. 57,615- 57.615 57,615- llt,rtiDeposrt. 25,000 25,000 25,000 Mundpa:F""" 20,000 20.000 20,000 OJ Prede,elopment nteren & Foe 10,296 10,296 10,2% , Interim DoeratlMg Costs , , " Appraisal 13,000 13,000 13,000 W rnerimConnru~iMPeriodinle'"st&HotdlngC<>st:s 134,718 43.059 91,659 134,718 ConstrucUon l'<mod interest l1D,067 10,067 2Qa.ooo 210.067 Real Esta!eTr_f"'-Ta. 12.000 m 11,215 12,000 Course of Canstruetion I""ut.ne~ 27.000 27,000 27.000 CcnstrueticnManilQ'emen 52.000 52,000 52.(.'(1(] Cost ot l'>5uan~e 248,191 59.145- 189,046 248,191 Tt..&E=ow.Construet",naosing 10,000 10,000 10,000 Trt.....ESl:row,Mor'(gageacsing 5.000 '5,000 ',= SoflConCorlt'ng'"flC)' 74,288 34,288 40,000 74.288 Legal-AcQUSltIOl'l 10.000 10.000 10,000 Leg3l.Corw..n..crlOnLoanC1oslng 10.000 10,000 :0.000 Leg..-MortgageLoanOo..ng 5,000 ':'5,000 5.000 Lega1-0'G...i~:ion 5.000 5.000 5,000 Legai-5yndrc:.tiOt1 ,,= 75.0-00 75.000 fa, Credit Allocation Comm"'"", Fees 26,324 5."14 20,910 26.324 Market Study 6,250 6.250 6,250 Syndie.,ion Co""u~.."t 40,000 40.000 40.000 Ma'k~W'lgill1<!R""itlenl5e""""'&Penses 10.000 10.000 10.000 De~eloprnent ''''' 1,518,774 479,868 150.000 888.907 1,518.774 Audit, 15.000 15.000 15.000 Capit.,zed Se",kes (To OlW NotLP) , , , C'PCt.'rz...dRepl;ICeme"tRes~rve 33,000 33,000 33,000 Cafllt~',ze<lOp"r'"ngRese"'.(3Mos,bpens"s) 11\,860 111,860 111.860 '. R"I'aym"ntof l,;.ermLo.n 3,10a,COO 2.340,000 760,000 , ~;100,OOO R..p'ayinen'-c! C''''structi<m ~0311 4,160,000 2.104,877 25,000 561.241 36-2.5-56 1106.326 4,160.000 TOTAL PROJECT COST5 20,867.038 2,3~O,OOO 7.429.000 4,160,000 3.100.000 119.238 210,000 25,000 561,2.41 362,556 2.560.003 20.867.038 80ND ISSUANCE COSTS SondCwnse](5te'et..1elikL~n) 37,500 Mortg.ge 2,3"0,000 fssuorree-CM,A(P"r~"9.Ag'ee~""': ]2,187.50 COflStructor. 4,160.000 Issuer Appleat"'o Fee 2.,500 TOla 6500000 Issuer L"Il"F"e 4,703 lS5ue' F"n Ye... Mon.toflng Fee 6,500 SQ%TEST Lende,Orlg.,.toon@100bpofu,.,5'"u.,50bpafPe,m 76,700 Depr"",able8asis 9,15:l8.607 ~ Lender Counsel 50,000 LirldCo$t 2,761,135 LenderEnwonmentaIR.vie'....&C<>.IA.n.lysis.lnsp""""'n. 14.700 Tot~1 11,960.342 ~ Lender Construcrl",n Mon'tor1nq ',000 55%_ Appr.,,,,,..ndLend...-<eview o Paiel ~o' :"'o~gh Ite:im Loan 4,395,123 TEBond 6,500.000 657el , CO Tru"eeS.,-up 5,000 p<!reer:tae 54.35% Trustee Fir" Year Fee 2,650 ~ Owner Counse! la.ooo BonclAITiX'lion 6,500,000 o.,.ne,Consultant 10,000 0 CDlAC 2Z?5 Bad Bond Cons'bo,edl 86250 Page 4 Oak Knoll Acquisition and Rehabilitation, Community Housing Works with Bank of America Financ ng and Union Bank as Investor, Preliminary Economic Projections, 4% Credits 4/1/09 9;49 AM BX BY BZ CA CB 14 DIS8URSEME!'JTS OF UMITED PARTNER CAPITAL CONTRIBUTIONS 15 384,000 1,920,002 256,000 ,. 17 Closng Conversion 8609s 18 Land Acquisition 0 19, Buildmg'AcqiJisition@ debt- 0 20 Extension Fee 0 21 Appr.liSI, TitJe and Escrow Acquisition 0 22 N~w_ Community Building Space 0 23 Site Improvements 0 '. 24 Structures 0 25 Additional Improvements Requested by City 0 2. Bu lder Ovemead~ Pront, imd General Requirements 0 Z7 Personal Property in Construction ContraCt 0 28 COf"!struction Contingency 0 29 Personal Propertiy by Owner 0 30 Contractor Insurance & Bond 0 tIJ 31 Relocation 0 , 32 Arcl1itecture&'Engfneering 0 "' 33 Soils, Survey, Civi, Testing, etc. 0 34 Utility Deposits 0 35 Municipal Fees 0 3. Predevelopment Interest & Fee 10,296 10,296 37 Interim Operating Costs 0 0 3B Appraisal 13,000 13,000 39 Interim Construction Per od Interest & Holding Casts 91,659 91,659 40 Constructian Period Interest 0 41 Real Estate Transfer Tax 0 42 Course of Construction Insurance 0 43 Construction Management 0 44 Cost of Issuance 189,046 189,046 45 Ti~e.&. ~row, Construction Closing 0 46 '1ltle &. ESCrow, Mortgage Oasing 0 47 5?h Cost Contingency 0 48 Legal-Acquisition 0 49 Legal CConstruction Loan dosing 0 . 50 Leg_al . MC)ftgage Loan Closing 0 51 Legal-Organization 5,000 5,000 52 L"ega ~ Syndic.atlon 75,000 75,000 53 Tax- Credit Allocation Committee Fees 20,910 20,910 54 Market Study 0 55 Syndication Consultant 0 56 ~arketing and Resident Services Expenses 0 57 Development Fee 888,907 0 668,816 220,090 58 Audit 15,000 15,000 59 Capitalized Services (To CHW, Not LP) 0 0 60 Capitalized Replacement Reserve 33,006 33,000 ... 61 Capitalized Operating Reserve (3 Mos. Expenses) 111.860 111,860 I-L 62 Repayment of Interim Loan 0 63 Repayment of Construction Loan ',106,32~ 1,106,326 00 64 ~. 65 TOTAL PROJECT COSTS 2560.003 384000 1920002 256000 ~ ""ge5 O.~ K""II A",<""""" a>1d Rch<lodfO''''"'. COmmutl1;y Kc.Js."9 Nor1<,... ,h ~."" 01 Americ. f,c.onCl,,!;; and lli'1K>1 S."".. """'"or. Prel,rrona<'! Eoooo""" m!e<;tl"".. 4~ c..~d <& 4'1109 9:19AM '" cr " " rn a " 0< a. '" '" co " '" " " W ~UfW1.l.E;Ul-IAXL1.I~lJ!JE;I'.Lt~ ,rn" 2010 2011 2012 2013 2014 2015 2016 2017 201B 20~ 9 2020 2:)21 20n 2023 2024 DEPRrClATION R""demi<lIAc....st'oo1 (27.5 r""..1 0 0 0 0 0 0 0 0 0 0 0 0 , 0 , , 0 R~den'I.AeQ<j""h,n(40rear.<l 5.6%.526 93942 140.91] 140.91j 14().S13 140,911 140.913 140.913 140.913 140,913 HO.913 140.913 140,91> 140.913 )~0.911 14{).9~ 1 14D.913 S;telmp;o'eme~t'Ac~si;i""(:5.Y.....M.;.Yea,j 0 0 0 0 0 0 0 0 0 0 0 , 0 , 0 , SMlmrYci....m.;n,;,A~si;""'(20Yoiiirs;Mrd-Year) 0 0 0 0 0 0 0 , 0 , 0 , 0 0 0 0 POl'SOoal "'c!>o"ty Ac'll-""'"'" (S YeJCS.MdYe<JrJ 0 0 0 0 0 , Pononal Prc"".'1y Ac"",nJorl [S Y.....r.t.d-Yo<<r) 40,302 2.209 4.478 4,47B ~,~ro .1."78 4.47/1 447l! ~.47B 4,~7B 2,233 Reoi<le",lal Rehahlit.ti",,(27.5 Y""",j 0 0 0 0 0 0 , 0 0 , , 0 0 0 , , , Rcside"'.alR~olit;ni""{40Y~....) 3,008,507 G.268 67.691 75,213 75.213 75,213 75,213 75,213 75.213 75.213 75.213 75.2\3 75.213 75.213 75,213 lS,21l rS,213 Skolmp'''''"'''''n<&Rohllb1llta<lM(lSY''''.....I-I.'a.Y''''<) 0 0 0 0 0 , , , 0 , 0 , , 0 , , 0 '. Si..lrnor<w;"';';'"tsR"""bIllu,;m{20Ye3~/>1j<!-Y..,) 4Z(.1272 1,751 21.014 21,014 21.014 21.014 21,014 21,014 21,014 21,014 21.014 21,014 21.014 21.014 21014 21.014 21.014 Poi0cn3~R.n.O;Lt.t""'(5Y"B.Mi<H""') , 0 , 0 , , 0 p"""",," f'rnpertyRwblllm>o<i (9r"",MI<!-Yoar) 93,000 431 10,333 10,333 10,333 10,333 10,33.1 10.333 10.3J3 10,333 5,167 ~=dormal(27,5 y~.rs) , , 0 0 , 0 0 , 0 0 , 0 R..i<l.,."....(40 r.."j 9,362 '" m 234 '" '" '" m '" 224 '" '" Per'1Cl<]O]Pmp"i'WR.c..biI''''~''''(5r..,s,MId'Y''''' 0 , 0 , , 0 0 Pe'''''''''l'roperty(9Y""",Mk\-Y"",) 9,362 >', 1,D4l' 1.040 1.04:J 1.040 ''"'' l,j-<<l ',,,,," ;eo OJ , R....don'I.1 [Zl.S Y.....) 0 0 , 0 0 , 0 ll' Rosidon,ilIl (40 yean;) 42.026 m 1.051 1.051 1.0,) 1.051 1.051 p",sQ"'"P~~iIbilt3tlon(5Yo."'.I-lill-ye"r) 0 0 0 , 0 , 0 ?e",o'" ProPonvi9Yo.vs,M>d-Y"." 42,026 2,335 4.670 4.670 4,6~0 4.670 4,F,70 '<<>sidential(27,5Ye...., , , Residentla(40Y"",,) 61,906 1,126 1'...""",,1 Prcperr,. Ro~"'b<r.t.i,ion (5 Y"""" ),\;o.Y,,",) 0 0 f>e'$Orn!Ifl"open:y (~yeat'$,JoIid.'fe;u) 61.906 3.439 " T"",IOeor""""f<'n 9,199.607 lG4}i31 244.430 251.951 25],951 251.951 252,588 253,225 253,225 25322S <45.e19 241,2N 2-44134 24.1,)3.. 243.614 243.034 247,659 " cll<<:k 9,198,607 " :f9 '" EXPENSEIJANOA,J.\ORTlZEDITE"I$ " Mcrt!<'lpeL"""fo....Le~.T,\I" 258,191 5/38 8.606 0.606 8.606 8.606 8.606 8.606 ',"" 8,606 8.606 8.606 860li 8.6C6 8,606 B,606 9606 " Legal'Or~.,1ot1 5.000 5.000 , 0 0 0 0 0 0 0 0 0 0 , 0 , " r.. Cr..u; AlIcc.tionF""" 32,574 I,B79 3.257 3257 ',257 ,.257 3,257 3.2p 3,257 3,257 4,63S H Marlo.otr"ihp",IS'" 10.000 ;,000 ;,000 " '"" 15,000 15,000 " 4s'et~Cj.mon'f~e ,. " P.Mersl1;pMiln.ge"",ntFoo ,. ., P3ymernror$orvo::... '" 5.!totoral 320,764 32,617 16B64 11,864 11,864 1186.. 11.8&4 11,864 11,B64 11.864 13.242 8,;;~6 8,606 8.606 8.606 B,GOG a.60S " , Cos",Aaoc.t"""ol"'enmPartr~"" . " ~..,im Ccm,""=tioo ?ernxll~te"'st ~ HoldOf1c CoS':s 0 ~,3 IntortmOpenrtlfl<JCast. 134,718 q 13-4.718 ,'. '" LQW.INCOMEHOUSl.'lGTAXCRfDITS 57 Ar:culsltionh'CredltB3si.(lmmP"9"1'j ~,676.a28 '" "''''''''''' ct Annual ~edenl Crotf~ 110.043 190,741 '90 7~1 190,741 190.741 190,741 190,741 190,741 \90,'41 190,74\ 80.698 ,9 " Re""biH,."onT...Cted;t BasisifrOmP,,~e 1) 3.521,779 "' SasisT.".;.13mt. 4,S78,31, " Amount of AONJal fed<!ral C,...., 86.900 150.626 150,626 ISO.626 150,626 lS0,6Z6 150,626 150.626 150,626 150.fi26 63,727 ,,' M TOTALCRWIT5 '96,9~1 341,36g 141,368 341,368 341,368 3..1,3&8 341,368 341.369 341,368 341.368 144..25 ,< " p6 " Aqm,Uo<1 C,"", P"".en1.3g. 3.36% (1\r:<l\OS"kll,aO..dCll\Apr, 1,20091 b8 Rehabil,t.tior Crej~ Pe'Cen~.oe 3.2S*(lw.ocipate<iR.tel 1-'0 [,9 flr5t y"", C'~d;( P.-n;:cnuoc 57.69% " \"'Y"Acqt;lsilJ""O~''''''Perc''''''"" 66,S7" 00 " 1.ty"RehobilO<ortOe,;"ooiationrn""""Q' 8.33% n 2ndY,.PehobluliOOOeprOO.,o;rnPc""ntiI!Je 90.00% T'.h."'~'Ul;O~e"y(AD5Q<,,,,,,,,,,icn) 100.00% <:;.) '" \str".rl-lorwaePOfcent '" ~ Pilge6 Oak Kno" AcqlJ~ition and Rehabilitaticm, Clmm\.lf1lty HOUSing Works W In Bank of America Flllanc,ng and Union Bank as Il'l\iestor, Preliminary Economic Projections, 4% Cred-ts 411/09 9:.49 AM :+ Cl DA DB DC CD DE OF DG DM " DJ DK DC DM DN DO D' ANA-lY5IS OF T AXABLE I~ME -+ 2009 2010 2011 2012 2013 20\4 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -+ NfT OPERATING INCOME 111,640 249,115 252,918 268,134 271,322 279,452 286.893 290,5S7 294,205 + 256,724 260,531 264,336 275,696 283,186 297,801 301,348 7 IntereSt on Replacement and Operating Reserve Accts. D 398 1,022 1,685 1,829 2,552 3.340 4,167 5.043 3,451 4,359 5,324 6,346 7,429 4,B61 5,963 :+ Tot<iINetlncome 111,640 249,514 253,940 258,410 262,360 266,897 271,474 276,088 280,739 282,903 287,545 292,216 296,913 301,634 302,662 307,311 ..4- DEDUCTIONS * Ifrt,ere_5t on First Mortgilge D 107,510 14i,816 133,965 137,997 135,905 133,680 131,314 128,H9 126,125 123,281 120,258 117,043 113,625 109,991 iOG,-'-Z7, * ConstrllCtionLoanlnterest 28,494 142,472 -# Illteresl on Second Mortgage D D 0 D 0 D 0 0 0 D D D D 0 0 D . * Deprec<ilfon 104,631 244,430 251,951 251,951 251,951 252,588 253,225 253,225 253,225 245,819 241274 244,134 244,134 243,614 243,094 247,659 -1+ Experrsad and Amortized Items 32,617 16,864 11,864 11,864 11,864 11,864 11,864 11,864 11,864 13,242 8,606 8,606 8,606 8,606 8,606 6,606 -+%- TOlalDe:Joxtkms 165,742 511,275 405,630 403,'179 401,811 400,356 398,769' 396,403 393,6a6 365,186 373,162 372,::198 369,7!l4 365,646 361,691 362,392 4 NET TAXABLE INCOME * -54,102 -261,762 -151,690 -145,370 -139,451 -133,459 .127,295 -120,315 -113,149 .102,283 -85,616 .80,782 -72.,671 -64,212 -59.0:30 -55,081 4 SHARE ALLOCATED TO GENERAL ?ART~ER .5 .26 .15 .13 .12 .1D -21,861 -* .15 -15 .13 .11 ., -24,235 -19,264 -17,709 -16,524 ~ sK4RE ALLOCATED TO LlMrrEO PARTNER -54,096 -261,735 -151.675 .145,355 .139,437 -133,446 -127,262 -120,303 .113,138 -102,273 -85,608 -56,548 -51,009 -44,948 -41,321 -38,557 .g. Marginal Tax Bracket -#- 35% 35' 35% 35% 35% 35% 35. 35% 35% 35% 35* 35' 35% 35% 35% 35' 4 Investor Beneflts From Losses 18,934 91,607 53,086 50,874 48,603 46,706 44,549 42,105 39,598 35,796 29,963 19,792 17,853 15,732 14,462 13,495 tJj * FedeJ<lILow-lncome HousingTa><Credils 196,923 341,334 341,334 341,334 341,334 341,334 341,334 341,334 341.334 341,334 144,410 0 '0 , #- Total umited f>armerTa~ Benefits 215.857 432,941 383.440 19,792 17,853 '" 26 394,420 392208 3900137 388040 365,882 380932 377129 174,373 15732 14462 13.495 . 1-\0 .... 00 Cj,) CJ.) Page 7 O~k Knoll AcqUIsition and Rehabilitation. Communrty Housing Worl;s with Sank of America Financing and Uruon BanI<. as ln~e~a.or, Preliminary EconomiC Projections, 4% Credits 4/1/09 9:49AM OJ , --l OS OT DU " OW " " " EA EO " EO EE " EO EH " u i-+ OUTSTANDING DEBT K- 2009 2010 2011 ZQ12 2013 2014 2015 2016 2017 Z018 2019 Z020 Z021 2022 2023 2024 2025 H- SQURCE50FfUNOS R: Firstl,1ortgage 2,340,000 2,319.206 2,Z89g51 2,258,844 2,225,770 2,190,603 2,153,212 2,113.455 2,071.183 2.026,236 1,978,447 1,927,633 1,873,606 1,816,\60 1,755080 1 ~690, 1 35 1 ,621 ~083 secor\ClMortgage 7,990.241 7,987,644 7,987,644 7,987,644 7,9S7.644 7,9S7,644 7,987,644 7,982.347 7,976,726 7,970,846 7,964,774 7.958.581 7.952,344 7,946,143 7,940.064 7,934,197 7,9lB.640 c+ Total Nonrecourse Financing 10,330,241 10.306,851 10,277,595 '0246,489 10.213.415 10.178,248 10,140,856 10,095802 10.047,909 9.997,083 9,943.220 9.886,214 9,825,949 9.762.302 9,695.143 9.824,333 9,549.72,2 tt DelerredDeveloperFee C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ Asset Managemerll Fee Owed 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -It Total Recourse Financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 TOTAL DEBT 10,330,241 10.306,851 10,277,595 10,246.489 10,213.415 10.178,248 10,140.856 10,095,802 10.047,909 9,997,063 9,943,220 9.886,214 9.825,949 9.762,302 9,695.143 9,624.333 9.5..9,722 .,g. ~ A~erilge Rate 01 Incre~se oller 2009 .(1.28% -0.30% '{)32% .0.34% ~ " '* City 01 poway Loan 0"""" ~ initialB~ 7,990,241 ~ Accrued Intelest During COnslructiOF1 ~ interest on Elalance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 AfTIOtJntP.'dfromCap'ta Connibutions 4- '\mount Paid from OpefOtions 0 2,596 0 0 0 0 0 5.298 5,621 5,BBO 6,072 6,193 6,l37 6.201 6,079 5.866 5,557 -# New Balance 7,990,241 7,987,644 7,987,644 7,987.644 7,987,644 7,987,644 7,987.644 7.9B2,347 7.976.726 7,970,846 7,964.774 7.958,581 7,952,344 7.946.143 7,940,064 7,934,197 7,92.8,640 -# Number of Years Remaining " 53 " " 50 " 4B " 4B 4B " 4B " " 4B 39 38 -# Balance Asswmin;J 00 Ad<!itional Paymer 7,990,241 7,987.644 7,987,644 7.987,644 7,987644 7,987,644 7,987,6..4 7.9SZ,347 7.976.726 7.970,846 7,964,774 7,958,581 7.952,344 7,946.143 7,940,064 7,934,197 7,928,640 % Third Moft>)a>)e (8ookAccountinQl O.OO%,simplelnteresl Ori>)lnalBaiance 7990,241 4: BalancealEndofConstructiDn 7,990,241 -1tr Interest on Last Baance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Balance 1,!i\;lO,l41 (,:I\;IU241 7.981,644 7,987,644 7,987,644 7,967.644 7,9137,644 1.987,644 7,96~,347 7,97G,72C 7,970,.'346 7.964,771 7,958,581 7,952,344 7,946.143 7,940,064 7,934,197 * Amount Paid from Capital Conmbut'ons 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -# Amount Paid from OperaliOns 0 2.596 0 0 0 0 0 5.298 5,62) 5,880 6,072 6,193 6,237 6,201 6,079 5.866 5.557 -# New8alance 7,990.241 7987,644 7,987,644 7.9B7,644 7,987,044 7.987,644 7,987.644 7,982,347 7,976,726 7.970,846 7,964.774 7,958,581 7.952,344 7,946.143 7,940,064 7934,197 7,9<'8,640 "* 35 Encfon 8alanceAssumin no Add,t!onal 7.990.241 75187.644 7987644 7.987644 7987644 7987644 7987644 7982347 7,976726 7970.846 7964.774 7.958581 7.952.34-4 7946.143 7940.064 7934197 7.92:8640 . . ~ '"'"'" 00 ~ ~ PageS Oak Knoll AcquisitiOIl ant:l Rehabilitation, Commun ty Housing Works with Bank of America Financing and Union Bank 35 Investor, Preliminary EconomIC Projections, 4% Credits 4/l/C9 9:49 AM GG GH G' GJ G< Gl GM GN GO GP G GR GS GT GU GV GW 1 LIMITED PARTNER CAPITAL ACCOUNT Year 1 Year 2 Year 3 Year 4 YearS Year 6 Year 7 Year 8 YearS YearlQ Yearl] Year 12 Ye;!f 1 ~ Year 14 YearlS y",,,,16 2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 3 8as;s 11623,665 11.519,044 11,274,639 11,022,714 10,789,510 10,537585 10,285,022 10,031,822 9,778,623 9,609,468 9,363,673 9,122,423 8,878,313 8,634,204 8.514,414 8,271:345 4 Additions to Basis 0 0 0 18,722 0 0 0 0 84,044 0 0 0 0 123,800 0 0 5 Dedu.::ClonsfmmBasls -104,620 -244,405 -251,926 -251,926 -251,926 -252,563 -253,200 -253,200 -253.200 -245,795 -241,250 -244,110 -244,110 -243,589 _-243,069 -247,634 6 8asis at End of Year 11,519,044 11,274,639 11,022,714 10,789,510 10,537,585 10,285,022 1O,03J,822 9,778,623 9,609,468 9,363,673 9,122,423 8,878,313 8,634,204 8,514,414 8,271;345 8,023,711 7 Balarice"ln'ReserVeAccounts 64,934 109,045 131,159 135,952 160,375 186,321 213,865 243,081 190,007 220,292 252,425 286,494 322,592 237,014 273,7.46 312,695 B 9 Bass in Partnership Assets 11,583,978 11,383,685 11,153,873 10,925,462 10,697,960 10,471,344 10,245687 10.021,704 9,799,475 9,583,965 9,374,848 9,164,808 8,956,796 8,751,428 8:545,090 8,336:406 10 Outstanding Nonrercourse' Debt 10,330,241 10,306,851 10,277,595 10,246,489 10,213,415 10,178,248 10,140856 10,095,8)2 10,047,909 9,997,083 9,943,220 9,886,214 9,825,949 9,762,302 9,695,"43 9,624,333 " . " Minimum Gan on Chargebock 0 0 0 0 0 0 74,098 248,435 413,118 568,372 721,406 869,153 1,010,875 1,150;053 .1,287,927 13 14 LIMITW PARTNER CApnAl ACCUUNI 13 Capi~1"'C(:oum:BalarJCeAtYear5tart 1,423,310 1,412,215 1,255,287 1,104,521 959,511 820,325 687,131 560,209 440,237 330,915 238.046 174,025 115,332 62,492 13,074 16 Capital Contribution 2,304,003 256,000 " Deductions from CapItal AccQunt -54,096 -261,735 -151,675 -145355 -139,437 -133,446 -127,282 -120,303 -113,138 -102,273 -85,608 -56,548 -51;009 -44,948 -4',321 -38,557 " Syndication Expenses -823,264 tJj 19 Cash Flow -3,333 -5,360 -5,253 -5,411 .5,573 -5,740 -5912 -6,619 -6,834 -7,049 -7,262 -7,473 -7,683 -7,891 -8,097 '-8,301 , 20 End of Year Cap'tal Account 1,423,310 1.412.215 1,255,287 1,104,521 959,511 820,3<:5 687,131 560,209 440,237 330,915 238,046 174,025 115,332 62.492 13,074 -33,784 " (fJ " Mil1lmumGa-non Chargeback 0 0 0 0 0 0 0 74,098 248.435 413,118 568.372 721,406 869153 1,010,875 1,150,053 1,287,927 23 CJpltalAccountPlusChargeback 1,423,310 1.412,215 1,255,287 1,104521 959,511 820325 687,131 634,306 688,671 744,032 806,418 895.431 984485 1,073,357 1,163,127 1,254,143 24 2S GAIN OR LOSS ON SALE 26 Capital AcwllIlt 8alance At Year Start 2,246,573 2,235,479 2,078550 1,927,785 1,782,775 1,643,589 1,510,395 1.383,472 1,263,500 1,15"',179 1,061,309 997,288 938,596 885,756 836;338 " Cop;talContribution 2,304,003 256,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28 Deductions from Capital Account -54,096 -261,735 -151,675 -145,355 -139,437 -133,446 -127,282 -120,303 -113,138 -102,273 -85,608 -56,548 -51,009 .44,948 -41,321 -38.557 29 CashFow -3,333 -5,360 -5,253 -5,411 -5,573 '5,740 -5,912 -6,619 -6,834 -7,049 -7,262 -7,473 -7,683 -7,891 -8,097 -8,301 30 End of Year Capital Account 2,246,573 2,235,479 2,078,550 1,927,785 1,782,775 1,643,589 1510,395 1,383,472 1,263,500 1,154,179 1,061,309 997288 938,596 885,756 836,338 789,480 31 32 33 34 AFTER TAX 8ENEFlT5 35 LoSses -54,096 -261,735 -151675 -145,355 -139,437 .133,446 -127,282 ~120,303 -113,138 -102,273 -85,608 -56,548 -51,009 -44,948 c41,321. -38,557 36 Marginal Tax Bf<lcket 35,00% 35,00% 35,00% 35.00% 35.00% 35.00% 35.00% 35,00% 35.00% 35,00% 35,00% 35.00% 35.00% 35.00% 35,00% 35.00% 37 AfterTax Benehts from Losses 18,934 91.60! 53,086 50,874 48,803 46,706 44,549 42,106 39,598 35,796 29,963 19,792 17,853 15,732 14,462 13,495 3B 39 292718 276318 " CredIts 196,923 341,334 341,334 341,334 341,334 341,334 341,334 341,334 341,334 341,334 144,4;0 0 0 0 0 0 . " Cash Flow 3,333 5360 5253 5411 5573 5740 5912 6619 6,834 7,049 7252 7473 7683 7891 8.097 8,301 1=10 ~ 00 1;1.) CJ1 . . 1183,'6 ~1<t@I11 AcquisitIOn and Rehabilitation, Community Housing WOlk~'With Bank ot'AmetitJlIfOfJanSlJ1Ol ~U Union Bil~k as Investor . Prelimin Economic Pro'ections 4% Credits GR GS GT GU Gv GW GX 43 INTERNAL RATE OF RETURN (CALCULATED QUARTERLY) WITHOUT CASH FLOW 4.4' 45 QUARTER lOTAL NET 46 ENDING LOSSES CREDITS BENEFITS INVESTMENT INVESTMENT 'RR 41 13.25% 48 6/30/09 6,311 65,641 71,952 384,000 -312,048 49 9/30/09 6,3i.' 65,641 71,952 71,952 SO 12/31/09 6,3il 65,641 71,952 71,952 51 3/31/10 2?,~O2 85,::133 108;235 108,235 52 6/30/10 22,90Z 85,333 108,235 1,920,002 .1,8].1,767 53 9/30/10 22,902 as,333 108,235 256,000 -147.765 54 12131/10 22;902 as,33::! 108,235 108,235 55 3131/11 13;272 85,333 98,605 98,605 56 6/30/11 13,272 85,333 98,605 98,605 57 9130/1' 13~27Z 85;333 98,605 98,605 58 12/31/11 13,272 85,333 98,605 98,EOS 59 3/31/12 12,71.9 85;333 98,052 98,052 60 6/30/12 12;719 85,333 98,052 98,052 6' 9130/12 12.719 85,333 98,052 98;052 67 12/31112 12,719 85,333 98,052 98.052 63 3/31/13 12,201. 85,333 97,534 97,534 64 6/30/13 12;201 85,333 97,534 97,534 65 9130113 12,201 85,333 97,534 97,534 66 12/31113 12,201 8S;333 97,534 97,534 67 3/31/14 1 r;676 85,333 97,010 97:01 0 68 6/30114 11,676 85,333 97.010 97,010 69 9130114 11.676 85,333 ~1,U1U 97.,010 70 12/31114 11,676 85,333 97,010 97,010 71 .3/31115 11,137 85,333 96,471 96,471 72 6130/15 1.1,137 85,333 96,471 96,471 73 9/30/15 11,137 85,333 96,471 96,471 74 12/31/15 11,137 85,333 96,471 .96,471 IS 3/31116 10,526 85,333 95,860 95,860 76 6/30/16 10,52.6 85,333 95,860 95;860 77 9/30/16 10,526 85,333 95,860 95;860 78 12/31/16 10,526 85,333 95,860 95,860 79 3/31/17 9,900 85,333 95,233 95,233 80 6/30/17 9,9-00 85,333 95,233 95,233 81 9/30/17 9,900 85,333 95,233 95,233 82 12/31/17 9,900 85,333 95,233 95,233 83 3131/18 8;949 85,333 94,282 94,282 84 6/30/18 8,949 85,333 94,282 94,282 85 9/30/18 8:9~9' 85,333 94,282 Y4;282 86 12131/18 8,949 85,333 94,282 94,282 87 3131/19 7,49.1 85.333 92,824 92,824 88 6130/19 7,491 59,077 66,568 66;568 89 9/30/19 7,491 0 7,491 7,491 90 12/31119 7,491 0 7,491 7,491 91 3/31/20 4,948 0 4,948 4,948 92 6/30/20 4,948 0 4,948 4,948 93 9/30/20 4,948 0 4,948 4,948 94 lZ131/Z0 4,948 0 4,948 4,948 95 3/31/21 4,463 0 4,463 4,463 96 6/30/21 4,"463 0 4,463 4,463 97 9/30/21 4,463 0 4,463 4,463 98 12/31/21 4,463 0 4,463 4,463 99 3/31/22 3,933 0 3,933 3,933 100 6/30/22 3;933 0 3,933 3.~33 101 9/30/22 3;933 0 3,933 3,933 102 12/31/22 3.933 0 3.933 3,933 103 3/31'/23 3,616 0 3~616 3,616 104 G/30/23 3,616 0 3,616 3,616 105 9/30/23 .3,616 0 3,616 3,616 106 12131/23 3,616 0 3,616 3,616 107 3/31/24 3,374 0 3,374 3,374 108 6/30/24 3,374 0 3,374 3,374 109 9/30/24 3,374 0 3.374 3,374 no 12/31/24 3,374 0 3,374 3,374 111 3/31125 276,318 0 276;318 276318 B-9 1552\02\671238.9 . . 1183'1' EXHIBIT C SCHEUDLE OF PERFORMANCE (Revised and dated as of March 31,2009) All days are working days and exclude holidays Execution of Agenev Loan Agreemen't Executed as of March 11, 2008 This Agreement shall be executed by the Developer and a copy of the executed Agreement shall be sent to .the Agency Conditions Precedent to Agencv'Loan Disbursement Satisfied as of April 1, 200R Borrower shall satisfy all c6nditionsi'equiied for the initial loan disbursement for the AcquisitioilC6mpi:ment Income Renort Within 60 days ofth" date of the Borrower shall submit an [ncome Report pursuant to Sections 3,9 of Original Agency Loan,Agreement the AQencv Loan Agreement Relocation Plan Submitted as of June 11, 2008 Borrower shall submit a detailed Relocation Plan pursuant to Section 3.11 of the Agencv LoanAQreement Agencv Approval nf Relocation Plan Approved as of July 15,2008 AQencv shall aoorovetbe Rel6'cation Plan Relocation'Exoenses 40 days prior to final loan CHW shall provide an estimate ofrelocation costs and back up to disbursement substantiate. costs DevelopmentReview Permit Submitted as of November,' I 3, Borrower shall aoolv for a Develooment Review Permit 2008 Development ReView Permii,Aoproval Prior to commencement of Borrower shall obtain Develooment.Review Permit aooroval con.struction Exterior Renovation'Plans Submitted as of September 26, Borrower shall submit an exterior renovation plan and elevations for 2008 AQencv aoproval Agencv Approvalo! Exterior Renovations Approved as of November II, A~encvshall Approve the'Exterior Renovation,Plans and Elevations 2008 Exterior Renovation Plans Within 30 days of the date of this Borrower shall submit in Writing that all conditions of approval have approval or before submittal.for been read and understood pursuant to Section 4 Coridition B of Building Permit application. Design ReviewResolution'No,P-08-04 Tax Credit Application Submitted May 21, 2008 Borrower.'shaU'submit an:apnlication for 4% Tax Credits tax Crediflnvestor Aporoval Submitted as of March 17,2009 Borrower shall submit limited partner letter of intent for Agency aODfoval Agencv Approval of Tax CreditBids Approved as of March 25, 2009 Agency shall'aoprove Tax Credii Investor and terms Tax Credit Allocation Submitted as of August 20, 2008 BorroweLShall submit evidence of 4% Tax Credit Allocation c-] 1552'02\671238.9 . . 11838 Construction Contract 20 days'prior. to commencement Borrowef.;shalLsub-init re\iisea construCtion contract pursuant to' ofconstmction Section,34 of the Agency Loari-Agreement .Ai!enc'v''!\miro'valofConstruction'Contract Within 10 days ofreccipt AQcncv shall anorov,; construction contract IDsu raDce ,Certifica tio ns Prior to commencement of Born"v,;r shall silbniit Certificates of Insurance to Agency in construction accordance with Scction4.170f the Agency Loan Agrccmcnt Buildin\! Permits Prioi'to commencement pf Borrower shall apply for Building Permits for community center construction. of community. room Landscaueand Lii!htin\!'Plan Prior to issuance of building Borrower shall submit a detailed landscape and irrigation plan and a permit for community room detailed lighting plan to the Planning Division review and approval. School Districnierification Prior to issuance of a building Borrower shall verify the schooI'impaet fee for the community permit for community.center center, if any and pay the fee;as:required under Section 4 Condition E,9 of Desi"n Review Resolution NO.P-08-04 Restripine:Exhibit Prior to issuance,of a,building Borrower shall submit an exhibit showing typical striping for permit for communityceriter parking lot for Planning Division review and approval as required under Section 4 Condition E.II of Dc sign Review Resolution No, P- 08-04 Commencement of Cnnstruction ,No later than May 28, 2009 Borrower shall commence construction on rehabilitation and community room Relocation 'Completedas of December 31, Borrower shall comnlete relocation of eligible households 2008 Ouarterlv Pro\!ress Reports July 1,2009 and'September I, CHW shall suhmit quarterly progress reports pursuant to Section 2009 3.13 Manae:ement Plan Within 30 days ofcomri1encement Borrower shall prepare management nlan of construction Resident Services Plan Within 60 days of end of Borrower shall annually prepare;a Resident Service Plan pursuant to Borrower's fiscal year Section 3.18 of the Agencv Loan Agreement Manal!ement Plan Within 30 days of receipt of the Agericyshall approve and execute management plan draft manageIl1ent plan Resident' SerVices Plan Within 10 working,days of receipt AQencv'shall approve or disannrove of the Resident Services Plan of BO'Tower'ssubmittal Construction Comriletion No later than November 30, 2009 Borrower sliaIlcomplete construction for rehabilitation and communitvroom Ae:encvLoan - COInnlction Component At least three days prior to loan Borrow'shall satisfy iilIConditions required for the completion disbursement comnonentofthe Agencv loan Ae:encv Loan - CODversioD,Cornponent At least three days prior to loan Borrow shallsatisfv ail conditions reauired for the comoletion disbursement C-2 1552\02\671238.9 . . 118.39 'comoonent.of the\A.geney .'oan Cost Certification No later than May 30, 20 10 Borrow shiill subinit 8609 Loan Soecial Reoavment from Net,Proceeds Within 30 days of submitting the Borrow shall submi(Joanrepayment,if necessary after fmal audit 8609 C-3 I 552"02\fj7 1238.9 . . 11840 EXHIBIT D REVISED SCOPE OF REHABILITATION PART I: REHABILITATION Oak Knoll Apartm<:n1S by ~un CmlnllY 6,,;1"= 100WOS: Dcstriptioil Cost Code SileWork 2-050 2-210 2-270 2-275 2.2'15 2.S!O 2-520 ,-,<, H"" 2.720 2-730 2-780 2-830 2-840 2-870 ,.900 T<ltalSilc ).)00 C~ ill Pllce Cuncme, (,)OG) , ]-500 GypsumCoocretc 4-400 MltiOI1f)' 5-120 Slructurlll:'ila:1 5-51\) Mis.:. Metals 6-110 l(<JugbC"'Pl"rilry 6-200 FlnlshCarpcnlf} 6-24(l C[)llOIet1ops 1-110 Waleiproofing 7-200 Insulation 7.270 f;rt;$lopping 7.)20 Roofing 7-570 Pcd..strianCo"llngs 7-600 Flaslling'andShcctMclA! ll-J6(J (Ncr~dLluo<'S 8-400 Ellll'lll1ccs;/fu;lSlon:fronts 8-630 Windows 8;700 Hardware8lldBalllAcce55Ofies 8.810 MirrOr> 9-200 L.l.thlllld!'lasu:r 9-250 Oypsumllaard 9-310 Cei-amicTile 9-6S0 ~lOOfing 9-900 Painting 10-150 BathroomPlIl1itiOfls \0-350 FLreplaCe 10-400 S'gnago; lncludirig dircdorle.l and ffllJ1lcs 10-520 FlfCProted.ionSpcciallies' 10 550 Mailbo~cs 10-999 Gr=lluardJO~24wt1ilc 11-450 Rcsid'="llialEqu;pm<:n1 \2.)00 ManuflcllnedCasework 12-500 Window,Treatmt-PVC Vertical Blind; 14-Joo E1evalOl> 15;.Joo, Fi~ProI:Cction '15~OO Plumbiilg 15-540 HVAC 16'i20', EICctri~lll I~SIO' LiShIFiXtUre:s 16:"720 L~wYoUagc 19~100' UelIllUP TDlal Slr1lthll:r"~h TotaICoattni-ctfoiiC0511 GeneralCollditl()Jl$ GCF~ TotalCoGlr....' Imurar,,;'; Ilondi:lm TolalCilm lJemolilKln Gr&dU1ll SlopcPrulO.,,;(ivn ErosionCOllUol I'lnishGntdmg ACP&v,~ PCCptovi~g w~ ~lrcs.prinkler5ys(cm Slo<mDrain S_ lJryuCs Fm.;esandGalc:s WillI<.. Road, 1'arlmg AppUrlCllanCCS Site and SIred ~umisllillg; LlCIdscaping 1552\02\671 !3R,9 Value Tolals 117,438,72 Q,<NU7 S,773.08 4,61K.46 65,76849 17,610.34 4V911,IO 3,0111.23 2,11116.54 23.326.69 2,400,13 33,137.45 119.719.117 .u021l.7!\ 5.91846 44,592.00 IO,l!OU.OO 50.096.63 11.503.60 21,517.50 220,79054 48.071,47 74,156.65 232,017.79 2~,670.99 6,927.69 97.610,91 78,1170,80 3,900.00 6,759.00 10,504_42 282,407.8$ 6().125.58 n,595.SS 34,479.95 I,.fOJS/8.U 1,823,850.17 152.SI0,63 %.600.00 1.07J.U\l.80 32,342.87 25,1300 1,IJll.18i.J6 D-l o . PART II: COMMUNITY,BUILDING Sale Price Delivery/Permits Installat,on Pit Prep/Back Fill Concrete Stem Wall RiggingNVelding Spoils Removal Craning Fee Interior [)rywalllFlooring Foundation Engineering Ramp License Fee Insurance 88 634 2.663 1 175 9436 37.333 2,639 3.179 9.863 15.3?0 975 12.200 2,6751 1,000 -,. -,.,-_..."._," 187,092 775%: , i4~500- 201,593 _.. - Subtotal Tax Rate Tax Rate TOTAL 1552\02\671238.9 . 11841 D-2 j, ~ . EXHIBIT E . REVISED APPROVED FIRST YEAR OPERA TfNG BUDGET I. Gross Scheduled Income Two Bedroom@ 50%,of AMI Two Bedroom @ 60% of AMI Two Bedroom (Manager's Unit) Total- Residential Laundry/Other Income Total Gross Scheduled Income (GSI) II. Effective Gross Income (EGI) (Less) Vacancy Total Effective Gross Income (EGI) III. Operating Expenses (Less) Operating Expenses (Less) Services/Amenities (Less) PropettyTaxes (Less) Replacement Reserves Total Expenses IV. Net Operating Income (Less) Operating Expenses 1552\02\67123R.9 No. of Units 26 25 I $13 unit/month 5% ofGSI $4,663 /unit/year Initial budget per year $383 /nnit/year B-1 $/ Month $782 $945 $0 11842 Total Annual $243,984 $283,500 $0 $527,484 $8:112 $535,596 ($26,780) $508,816 Total Annual ($242,489) ($10,000) ($3,500) (19,916) ($275,905) Total Annual $232,911