Laserfiche WebLink
SUMMARY OF ESTIMATED EFFECT OF ADJUSTMENTS TO APPLICANT’S DATA AND ANALYSIS <br />Item <br />No. <br />Applicant’s Data and Adjustments <br />DCR of 1.2 and COC, Cash Flow <br />Return of 5% <br />Applican <br />t Amount <br />Adjustme <br />nt <br />Resultin <br />g <br />Amount <br />Project <br />Cost <br />Annual <br />Debt <br />Service <br />DCR of 1.2 COC, Cash <br />Flow Return <br />of 5% <br />COC, Return <br />on Equity <br />Potential <br />MUPTE <br />Need <br />1 From Applicant’s Data $8,274,950 $451,049 Not in 10 Years Year 10: 4.97%Year 10: 14.2%10 Years <br />2 Adjust from 5.5 to 5.0% Interest Rate $8,274,950 $426,449 Year 9: 1.220 Year 9: 5.67%Year 9: 14.5% 8 Years <br />3 Revise Property Taxes, 2018 vs. 2017 <br />CPR (and 2) <br />$92,340 -$3,428 $88,912 Year 8: 1.200 Year 8: 5.14%Year 8: 13.5% 7 Years <br />4 Place Applicant Reserves After NOI <br />(and 2, 3) <br />Year 6: 1.206 Year 8: 5.14%Year 8: 13.5% 7 Years <br />5 Reserves at $300/unit, Not Escalated, <br />After NOI (and 2, 3) <br />$24,868 -$9,868 $15,000 Year 6: 1.206 Year 7: 5.18%Year 7: 13.1% 6 Years <br />6 Reduce Contingencies from almost <br />10% to 5% Hard and 3% Soft <br />Construction Costs (and 2, 3, 5) <br />$641,320 -$322,929 $318,391 $7,952,021 $409,806 Year 4: 1.204 Year 5: 5.08%Year 5: 12.3% 4 Years <br />Further Reduce Property Taxes <br />Reflecting Lower Project Cost <br />$92,340 -$6,898 $85,442 <br />7 Remove Development Fee (and 2, 3, 5, <br />6) <br />$283,465 -$283,465 $0 $7,668,556 $395,198 Year 3: 1.226 Year 4: 5.62%Year 4: 12.5% 3 Years <br />Further Reduce Property Taxes <br />Reflecting Lower Project Cost <br />$92,340 -$9,944 $82,396 <br />DCR: Debt Service Coverage Ratio: 1.2 Minimum <br />COC, Cash Flow Return: Cash Flow ÷ Equity COC, Return on Equity: (Cash Flow + Debt Service Payments to Principal) ÷ Equity <br />REVIEW OF MUPTE APPLICATION FERRY STREET MANOR PROJECT <br />WITHOUT MUPTE SCENARIOS Revised 08/08/19September 11, 2019, Work Session – Item 1