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Table 2
<br /> Financing Gap Analysis--For-Sale Product Type
<br /> Pleasanton Housing Impact Fee.EPS#151111
<br /> 2-Story Multifamily With Surface Parking
<br /> Low Low Median Moderate
<br /> Income Income Income Income
<br /> Item (60%AMI) (80%AMI) (100%AMI) (120%AMI)
<br /> Development Program Assumptions
<br /> Density/Acre 30 30 30 30
<br /> Average Gross Unit Size 1,100 1.100 1,100 1,100
<br /> Average Net Unit Size 950 950 950 950
<br /> Average Number of Bedrooms 2 2 2 2
<br /> Average Number of Persons per Household 3 3 3 3
<br /> Parking Spaces/Unit[1] 2.00 2.00 2 00 2.00
<br /> Cost Assumptions
<br /> Land/Acre $2,000,000 $2,000,000 $2,000,000 $2,000,000
<br /> Land/Unit $66,667 $66,667 $66,667 $66,667
<br /> Direct Construction Costs/Gross SF[2] $225 $225 $225 $225
<br /> Direct Construction Costs/Unit $247,500 $247,500 $247,500 $247,500
<br /> Parking Construction Costs/Space $3,000 $3,000 $3,000 $3,000
<br /> Parking Construction Costs/Unit $6,000 $6,000 $6,000 $6,000
<br /> Subtotal,Direct Costs/Unit $253,500 $253,500 $253,500 $253,500
<br /> Indirect Costs as a%of Direct Costs[3] 33% 33% 33% 33%
<br /> Indirect Costs/Unit $83,655 $83,655 $83,655 $83,655
<br /> Developer Profit Margin(%of all costs) 8% 8% 8% 8%
<br /> Developer Profit $32,306 $32,306 $32,306 $32,306
<br /> Total Cost/Unit(rounded) $436,000 $436,000 $436,000 $436,000
<br /> Maximum Supported Home Price
<br /> Household Income[4] $49,550 $64,450 $84,150 $101,000
<br /> Income Available for Housing Costs/Year[5] $14,865 $19,335 $25,245 $30,300
<br /> Less Annual HOA Fees[6] $3,480 $3,480 $3,480 $3,480
<br /> Less Property Taxes(1.15%)[7] $5,014 $5,014 $5,014 $5,014
<br /> Less Annual Insurance $215 $215 $215 $215
<br /> Income Available for Mortgage $6,156 $10,626 $16,536 $21,591
<br /> Mortgage Interest Rate[8] 4.5% 4.5% 4.5% 4.5%
<br /> Mortgage Repayment Period(years) 30 30 30 30
<br /> Down Payment[90] $5,300 $9,100 $14,200 $18,500
<br /> Total Supportable Home Price(rounded) $106,000 $182,000 $284,000 $370,000
<br /> Financing Gap $330,000 $254,000 $152,000 $66,000
<br /> [1]Reflects an average as apartments with up to 2 bedrooms are required to provide a minimum of 2 spaces for the first 4 units and 1.5 spaces for each additional unit. In
<br /> addition,visitor parking ratio of 1 space for each 7 units is also required.
<br /> [2]Includes costs for labor and materials.
<br /> [3]Includes costs for architecture and engineering;entitlement and fees;project management,marketing,commissions,and general administration;financing and charges;
<br /> insurance;and contingency.
<br /> 141 Based on HCD 2015 income limits for Alameda County.
<br /> [5]Assumes housing costs to be 30%of gross household income for low-income and moderate-income households.
<br /> [6]Homeowner association fees are from Redfin.com based on recent for-sale multifamily units in and around the City of Pleasanton.
<br /> [7]Exceeds basic 1.00%tax rate to include allowance for special assessment districts.Reflective of current tax rates in City of Pleasanton.
<br /> 181 Interest rates slightly exceed current market for 30-year fixed mortgages,but are well below historic averages and reflect blend of first-and second-mortgage rates.
<br /> [9]Assumes a 5%down payment.
<br /> Sources:Alameda County housing developers;Department of Housing and Urban Development;Economic&Planning Systems,Inc.
<br /> Economic 8 Planning Systems.Inc. 2/262018 8 P:115100081151111PIeasantonFeelModelt151111modl_forsale011516.xis
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