g Sanctuary on Potomac Quick Summary of Financing Sought 9.24.24.pdf
PDF 270 KB Posted
- Attached to
- RFP20240906 Debt and Equity Sanctuary on Potomac
- Solicitation number
- RFP20240906
- Issued by
- Alamosa County, Colorado
About this file
This document is a Quick Summary of Financing Sought for the Sanctuary on Potomac Permanent Supportive Housing (PSH) project by the Aurora Housing Authority (AHA), prepared by Affordable Advisors LLC on September 24, 2024. The project seeks financing for a construction loan, permanent first mortgage, federal Low-Income Housing Tax Credit (LIHTC) equity investment, and Colorado State LIHTC equity investment. The projected timeline includes a closing and construction start on May 1, 2025, substantial completion on September 1, 2026, 100% qualified occupancy by March 1, 2027, and conversion to a permanent loan on July 1, 2027.
The financing details include a construction loan of $12,000,000 with an average interest rate of 6.15%, a permanent first mortgage of $3,500,000 at 6.40% fixed for 40 years, and two equity investments. The federal LIHTC equity investment seeks $12,110,004 based on an expected qualified basis of $20,454,813, with an implied price per credit of $0.86. The Colorado State LIHTC equity investment requests $2,940,000 for a fixed state credit amount of $4,200,000, with an implied price per credit of $0.70. The pay-in schedule for both equity investments follows a similar structure: 20% at closing, 20% at substantial completion, 58% at permanent loan conversion, and 2% at final closeout.
View the file
Other files
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
QUICK SUMMARY OF FINANCING SOUGHT
SANCTUARY ON POTOMAC PSH
UPDATE: SEPTEMBER 24, 2024
The following debt and equity needs have been identified by AHA’s financial advisor, Affordable Advisors LLC, based on facts known as of the date above. These notes should be read in conjunction with the Financial Projections dated July 1, 2024, also prepared by Affordable Advisors LLC. Assumptions regarding investment and lending amounts and rates are solely the responsibility of Affordable Advisors LLC and not reflective of any specific commitments already received by AHA. Alternatives to the proposed capital stack structure or its individual components are welcome.
Construction loan Maximum Amount needed: $12,000,000. See Construction Period tab for basis of this estimate.
Total Taxable portion: $12,000,000.
Interest rates requested: Average calculated interest rate in the financing model is 6.15%. An interest reserve of $614,400 is included in the model, with construction interest payments picked up from operating income after 100% occupancy is reached. The model assumes monthly drawdowns coinciding with construction pay app requests.
Permanent First Mortgage (conventional) Maximum Amount requested: $3,500,000.
Term: minimum 18 years beginning at conversion from construction financing.
Amortization: 40 years.
Interest rate: 6.40%, fixed.
Debt Coverage Ratio at conversion: minimum 1.15. Currently underwritten at 1.15.
Note: Projected NOI at conversion is approximately $278,748. Debt service payment is $250,866.
Federal LIHTC Equity investment.
Expected Qualified Basis: $20,454,813.
Expected Federal Credit (10 Year): $14,081,400. Expected LIHTC (one year): $1,408,140.
Requested Federal Credit equity investment: $12,110,004.
Implied Price per credit: $0.86.
Projected Pay-in Schedule: 20% at Closing, 20% at substantial completion, 58% at permanent loan conversion, 2% at final closeout/8609 receipt.
Projected Closing/Start of construction: May 1, 2025.
Projected Substantial Completion/Placed-In-Service Date: September 1, 2026.
Projected 100% Qualified Occupancy: March 1, 2027.
Projected Conversion to Permanent loan: July 1, 2027.
Colorado State LIHTC Equity investment.
Note: Colorado State Credit amount is FIXED and does not increase with changes in Qualified Basis.
CHFA Approved State Credit (6 Year): $4,200,000. Approved State Credit (one year): $700,000.
Requested State Credit equity investment: $2,940,000.
Implied Price per credit: $0.70.
Projected Pay-in Schedule: 20% at Closing, 20% at substantial completion, 58% at permanent loan conversion, 2% at final closeout/8609 receipt.
Projected First Year of State Credit: 2025 (equal to 100% of annual state credit amount).
Note: Other dates are shown above in Federal LIHTC section.
File details come from the government source that posted it. Updated .