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2. Receive approval from the Alameda County Housing Authority for a proiect-based section 8 contract In February of this year, the Alameda County Housing Authority awarded a project- based section 8 contract for 50 of the new units to be constructed on the Kottinger Place site. Receipt of this contract is also critical because it assures that existing Kottinger Place resident's rents will remain at 30% of their annual income once they move back to their new homes at Kottinger Gardens and because it allows the project to support a private mortgage. Overall Kottinger Gardens will have deep affordability with rents ranging from 30% AMI to 60% AMI. 3. Obtain Project Financing As indicated above, Kottinger Gardens will be financed and constructed in two phases to minimize off-site resident relocation. The first phase will consist of 131 units on the existing Kottinger Place, Regalia Court, and Vineyard Avenue sites. The second phase will consist of 54 units on the existing Pleasanton Gardens site. For Phase I, tenants will be temporarily relocated off-site until the new cottage units are constructed and then they will be moved to these units. For Phase 2, tenants will be relocated to the Phase I then provided with an opportunity to remain or relocate back to Pleasanton Gardens. The estimated cost of Phase 1 is $47.6 million and the estimated cost for Phase 2 is $21.2 million for a total estimated cost of $68.8 million. As planned from the start of the project, both phases will have separate funding agreements and sources, including a $10 million contribution from the City approved previously, tax credit financing and funding from other miscellaneous public and private sources. Regarding the miscellaneous sources, since PUD approval, MidPen has secured an award of $676,000 from the Alameda County Affordable Housing Trust Fund and a $450,000 HOME Loan through the City's HOME allocation. The Housing Trust Fund was not originally anticipated as a source of funding , however, when the funds were made available, Kottinger Gardens Phase 1 was well-positioned to apply and successful in its application. A summary of current budget is listed below: Page 3of7