Item A: Multi-Unit Property Tax Exemption Program

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-Pro forma financial analysis of projected rate of return for the  Financial Information: project with and without the tax exemption. -Pro forma development budget -Projected rental rates with and without the tax exemption. -Pro forma sources and uses -15-year pro forma operating cash flow without exemption -15-year pro forma operating cash flow with exemption -15-year pro forma operating cash flow showing necessary increase in units rents necessary to achieve the same return as with the exemption -Rent structure by unit type -Description of how real estate taxes were determined -All components of developer equity -Copy of market study provided by senior lender Analysis/Comments Both programs’ financial submission requirements are similar; however, the Portland MULTE program is more specific in their program o description. The Portland MULTE requires a market study for the proposed project in cases where projects are petitioning to provide affordable units at o 80% median income in high costs areas (ex. downtown). Financial Analysis EUGENE MUPTE PORTLAND MULTE  Staff conduct a 10-year financial analysis, based on industry-standard Portland Housing Bureau staff conduct a financial analysis without methodologies, without and with the exemption and with the tax exemption.  Financial analysis is reviewed by the Loan Advisory Committee  PDD Director provides recommendation regarding financial “but for” analysis. Analysis/Comments The up-front staff financial analysis for both programs is similar. o The Eugene MUPTE program also utilizes outside the outside, community expertise of the Loan Advisory Committee to review staff’s o analysis.