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3) Debt Service <br /> Annual Debt Service <br /> 1 A) First Mortgage $1,350,000 @ 9%/30 yrs. $130,349 <br /> , ' t B) Second Mortgage $200,000 @ 4.5%/30 yrs. $ 12,160 ;'a. ocr <br /> Total Annual Debt Service $142,509 Lte-C ..tl <br /> C) City TIF (Third Mortgage) $230,000 @ 1%/30 yrs. <br /> Ute- ns.� ��. .x <br /> - payments would be deferred until the earlier of sale, refinance or 30 years.Na �C <br /> At that time all principal and accrued interest would be repaid. k...611_„,1.2-0,.. <br /> (5,Th <br /> } D) MHFA/FHF (Fourth Mortgage) $290,000 @ 0%/30 years <br /> - payments deferred until the earlier of sale, refinance, or 30 years. <br /> E) FHLB/Holman Grant <br /> These funds will either be structured as a grant or a non-recourse, <br /> unsecured loan at 0% interest. Structuring depends on attorney's tax <br /> opinion and investor's intentions. —to- <br /> 4) Development Fee/Construction Profit <br /> Due to the various financing sources for this property, all development costs <br /> must be cost certified by an independent 3rd-party accountant. Furthermore, we <br /> have already made commitments to MHFA to put caps on construction profit, <br /> • <br /> overhead, general requirements, development fees and total soft costs to the <br /> following levels: <br /> A) Soft Costs: <br /> Total soft costs may not exceed 20% of total development costs, or <br /> $987,000 ($4,935,000 x 20%). <br /> B) Construction Profit/Overhead/General Requirements: <br /> Construction Profit, overhead and general requirements may not exceed <br /> x 14% of the construction contract. General requirements is a job cost <br /> C`.:Sj� J� billable to the project -- MSP has no profit center in this area. Typically <br /> general requirements run approximately 6%,thus there is approximately 8% <br /> left over for MSP profit & overhead, or approximately $175,000. <br /> ? t � <br /> C) Combined Construction/Development/General Requirement Limitations <br /> Combined development fees, construction profit, overhead and general <br /> requirements may not exceed 16.7% of total development costs. However, <br /> ,\ when one takes into account that general requirements is not a profit <br /> center, true profit & overhead amounts to approximately 14% of total <br /> `� ' .\s`. development cost. Although we are not currently projecting this 14% level <br /> n U> of profit, we are committing that profit will not exceed this level. <br />