Copy of Project Feasibility Analysis Template

04/07/2023 NSP Homebuyer Purchase Feasibility Analysis 2

document.xls 1. Program Guidelines

UNDERWRITING CRITERIA

Housing to Income Ratio Minimum Maximum

Gross Household Income 25% 33%

Debt to Income Ratio 41%

PROGRAM GUIDELINES

Fo

rms

of

Ass

ista

nce Subsidy Amount Limits Uses

Final Development $80,000 per unit

$50,000 per unit

Maximum $150,000 per unit

Pro

fess

ion

al F

ees Fee Amount Eligible Service Provider

Developer Fee 12% of TDC less Acquisition Costs

Sales Referral6% of Sales Price or $4,000

Licensed Real Estate Agents(whichever greater)

Homebuyer Education $500

TAB 1: HOMEBUYER PROJECT - DEVELOPER-DRIVEN MODELM

ort

gag

e T

erm

R

equ

irem

ents

Appraisal Gap (TDC exceeds Sales Price)

Final Affordability Homebuyer

Affordability Gap (Down Payment, Closing Costs

and Mortgage Buy Down)

Non-Profit and For Profit Developers

per NSP-assisted unit sold to eligible buyer

HUD-certified Housing Counselors

04/07/2023 NSP Homebuyer Purchase Feasibility Analysis 3

document.xls 2.Proj Description & Compliance

PROJECT DESCRIPTION, HOMEBUYER INFORMATION & COMPLIANCE

GENERAL INFORMATIONAddress 1965 West Avalon Street, Allentown, PA Census Tract 3205.5Developer Bidwell Construction

DEVELOPERA. Is the Developer a Local Government or Subrecipient? Yes or No? NO

PROPERTY

A. Property Description B. Purchase Price and Appraisal AnalysisAS-IS Appraised FMV $45,000

# of Bedrooms: 3 4 Date of Appraisal 06/01/10

# of Bathrooms: 1 2 Purchase Price $32,500

Square Feet: 1250 1800 Date of Final Agreement 05/25/10

Year Built: 1980 Purchase Discount 28%Lead-based paint hazard control needed? NO Meet Discount Requirement?* YES

Estimated As-Improved Sales Price $100,000 YES

*"Yes" to both questions for purchase to comply with NSP.

C. Property Type & NSP Eligible Use Analysis

Yes or No? no NO NSP ELIGIBLE USE

Yes or No? yes YES Acquisition?

Yes or No? yes NO USE ERehab/Redevelop?

USE E

INCOME TARGETING

A. NSP funds may only assist housing that serves families earning less than 120% AMI. Please complete the table below.

B. Will you serve households earning at or below 50% AMI? Yes or No? no NO

Year City or MSA

2009 Allentown Household Size 50% AMI 80% AMI 100% AMI 120% AMI

1 $20,000 $32,000 $40,000 $48,000

2 $23,600 $37,760 $47,200 $56,640

3 $25,600 $40,960 $51,200 $61,440

4 $27,000 $43,200 $54,000 $64,800

5 $28,500 $45,600 $57,000 $68,400

6 $29,000 $46,400 $58,000 $69,600

7 $31,250 $50,000 $62,500 $75,000

8 $34,000 $54,400 $68,000 $81,600

TAB 2: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

If YES, Local Government does not receive Developer Fee. Rather, they will use Administration Funds.

As Is As Improved

Appraisal done within 60 days prior to Final Agreement date?*

1. Is the Property a vacant lot, or a vacant, foreclosed or abandoned single-family home?

2. Is the Property a vacant, non-foreclosed single family home?

3. Will the project rehabilitate the existing single family home?

If No to questions #1 & 2, then property is ineligible for NSP. If No to question #3, then new construction project.

Link to income limits

04/07/2023 NSP Homebuyer Purchase Feasibility Analysis 4

document.xls 3. Buyer Affordability

What Income and Down Payment Can Support Proposed Sale Price?

How Much Needed in Homebuyer Affordability Gap Subsidy? As-Is As-Improved

Address 1965 West Avalon Street, Allentown, PA # of Bedrooms: 3 4

Developer Bidwell Construction # of Bathrooms: 1 2

Income Targeting Up to 120% Square Feet: 1,250 1,800

Sales Price: $100,000

Meeting Your Income Level? YES

HOUSEHOLD SIZE AND INCOME:

4 $54,000 $54,000 $54,000 $54,000

SMSA Allentown Low Moderate Middle

% Area Median Income of Target Buyers: 36% 50% 80% 120%Maximum Incomes of Target Buyers $19,344 $27,000 $43,200 $64,800 Monthly Incomes of Target Buyers $1,612 $2,250 $3,600 $5,400

33% 33% 33% 33%

Target Buyers' Maximum Monthly Mrtg Pmt (PITI) $532 $743 $1,188 $1,782

AVERAGE SALE PRICE: $ 100,000 $100,000 $100,000 $100,000

Down Payment-From Buyer 3.00% $3,000 $3,000 $3,000 $3,000

Other Down Payment Assistance 0.00% $0 $0 $0 $0

Amortizing Subordinate Mortgage $0 $0 $0 $0

Deferred Due on Sale 2nd Mortgage $40,000 $17,000 $0 $0

FIRST MORTGAGE AMT BASED ON AFFORDABILITY: $57,000 $80,000 $97,000 $97,000

57.00% 80.00% 97.00% 97.00%

First Mortgage Interest Rate: 5.500% 5.500% 5.500% 5.500%

First Mortgage Term: 30 30 30 30

First Mortgage Principal and Interest $324 $454 $551 $551 0.00% 0.00% 0.00% 0.00%

Second Mortgage Interest Rate: 0.00% 0.00% 0.00% 0.00% Second Mortgage Term: 30 12 12 12

$0 $0 $0 $0

Taxes $2,000 $167 $167 $167 $167

Homeowners Insurance $500 $42 $42 $42 $42

Private Mortgage Insurance required if LTV > or = 80% $0 $0 $49 $49 Homeowners Association Fee $0 $0 $0 $0 $0

TOTAL MONTHLY MORTGAGE PAYMENT: $532 $663 $808 $808

Minimum Qualifying Income $ 19,344 $ 24,093 $ 29,367 $ 29,367 % Area Median Income 36% 45% 54% 54%

Affordable to Target Income Group? Yes Yes Yes Yes

CASH REQUIREMENTS

CDBG requires Buyer pay 50.0% of Down Payment required by Lender $1,500

Down Payment 3.00% $3,000 $3,000 $3,000 $3,000

Closing Costs 4.23% $4,235 $4,235 $4,235 $4,235

Down Pmt & Closing Cost Assistance -5.73% ($5,735) ($5,735) ($5,735) ($5,735)

TOTAL BUYER CASH TO CLOSE: $1,500 $1,500 $1,500 $1,500

Affordability Subsidy SOURCES Subsidy USE Schedule of Closing Costs

NSP DPA Subsidy Down Payment $1,500 Title Insurance $500

NSP Closing Costs Assistance Closing Costs $4,235 Appraisal $200

Other Down Payment Assistance DPA $0 Recording $90

NSP Homebuyer Subsidy Mortgage Write Down $40,000 Deed Prep $90

Amortizing Subordinate Mortgage Amortizing Subordinate Mortgage $0 Transfer Taxes

TOTAL BUYER AFFORDABILITY SUBSIDY: $45,735 Tax Stamp

Homebuyer Subsidy as a % of Sale Price: 46% Pre-Paid Taxes $2,000

Grantee Maximum Homebuyer Affordability GAP: $50,000 Pre-Paid Insurance $500

NSP Affordability GAP: $45,735 Loan Origination Fee 1.50% $855

Balance from Limit: $4,265 Loan Guarantee Fee $0

Total Closing Costs: $4,235

Homebuyer Subsidy within Limits? PROCEED

TAB 3: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

TO BE IDENTIFIED HOMEBUYER AFFORDABILITY ANALYSIS

Lowest Qualifying

MAXIMUM Housing/Income Ratio

First Mortgage Loan-to-Value Ratio:

Second Mortgage Loan-to-Value Ratio:

Second Mortgage Principal and Interest:

Per Unit Affordability Subsidy

04/07/2023 NSP Homebuyer Purchase Feasibility Analysis 5

document.xls 4. Development Budget

DEVELOPMENT BUDGET

What are the Estimated Costs to Rehab A Scattered-Site Single Family Unit?

What is the Development Appraisal Gap?

Address # of Bedrooms: 3 4

Developer Bidwell Construction # of Bathrooms: 1 2

Income Targeting Up to 120% Square Feet: 1,250 1,800 Sales Price: $100,000

U S E S

PREDEVELOPMENT PER UNITEnvironmental Review and Assessments $500

As-Is URA Appraisal and As-Completed Estimate $400

Title and Recording $125

Architect & Structural Engineer $4,500

Asbestos & Lead Based Paint Testing Year Built: 1980 $400

Property Acquisition Consultant $0

Code Inspections & Preparation of Specifications $550

Survey & Civil Engineering $1,000

Energy Audit and Energy Efficiency Specifications $500

Other $0

Other $0

Other $0

Total Predevelopment: $7,975 BUILDING AND PROPERTY ACQUISITIONLand & Building $32,500

Temporary Relocation* 0 Households $3,000 per Relocation $0

*Contact State if relocation; but assume $3000 for temporary relocation Total Acquisition: $32,500

CONSTRUCTION COSTSREHAB or NEW CONSTRUCTION $32.84 Average Cost per Square Foot $59,120

Demolition of Blighted Structures for New Construction $0

Infrastructure Improvements $4,000

Lead Based Paint & Asbestos Abatement $2,000

Landscaping $2,500

CONTRACTOR FEE 10.00% / hard cost $6,762

CONSTRUCTION CONTINGENCY 10.00% / hard cost $6,762

Total Construction: $81,145 CARRYING COSTSBoard Up & Lawn Maintenance $0

Utilities $100

Builder's Risk Insurance $400

Fire Insurance (Commercial) $400

Property (General) Liability Insurance $400

Real Estate Taxes $1,000

Other $0

Other $0

Other $0

Total Carrying Costs: $2,300 PROFESSIONAL SERVICESLegal $2,500

Accounting $3,000

Consultant $1,500

Marketing /Advertising $4,500

Other $0

Other $0

Other $0

Total Professional Fees: $11,500 SELLER'S CLOSING COSTSRealtor Commission 6.0% of sale price or $4,000 (whichever more) $6,000

Seller's Closing Costs 3.00% of sale price $3,000

Homebuyer Education $500 per unit $500

Seller Paid Transfer Taxes 0.00% of sale price $0

Total Seller's Closing Costs: $9,500

Hard & Soft Costs Sub-Total: $144,920

DEVELOPER FEE

12% of TDC less Acquisition Costs $13,490 Is the Developer a Local Government? NO

TOTAL DEVELOPMENT COSTS (TDC): $158,410

$100,000

Development Appraisal GAP: ($58,410) 37%

Maximum Development GAP NSP Subsidy: $80,000

Requested NSP Appraisal GAP Funds $58,410 Balance from Limit: $21,590

YES Within Appraisal Gap Limit? Proceed

As-Is Improved1965 West Avalon Street,

Allentown, PA

If YES, Local Government does not receive Developer Fee. Rather, they will use Administration Funds.

less SALE Proceeds:

Compliant with Sales Price?

04/07/2023 NSP Homebuyer Purchase Feasibility Analysis 6

document.xls 5. Construction Budget

CONSTRUCTION BUDGETWhat is the Development Appraisal Gap?

Address # of Bedrooms: 3 4

Developer Bidwell Construction # of Bathrooms: 1 2

Income % AMI Up to 120% Square Feet: 1,250 1,800

Sales Price: $100,000

CONSTRUCTION Linear Feet Sq. ft. Quantity Unit Price Total Cost0 $0

Excavation 0 $0 Concrete 0 $0 Masonry 0 $0 Roofing 1 $8,000.00 $8,000 Siding Repair and Clean 1 $1,200.00 $1,200 Rough carpentry 1 $7,320.47 $7,320

0 $0 Plumbing 1 $3,000.00 $3,000 Electrical 1 $3,000.00 $3,000 Finish carpentry 1 $750.00 $750 Interior Doors and Closet 12 $125.00 $1,500

0 $0 Drywall 1 $1,000.00 $1,000 Tile 4 $500.00 $2,000 Paint (interior) 10 $250.00 $2,500 Flooring 8 $500.00 $4,000

1 $500.00 $500 Energy Efficiency Enhancements See Schedule Below $12,950 Appliances See Schedule Below $3,000 Cabinets & Counter Tops 1 $4,500.00 $4,500 Hardware and Accessories 11 $100.00 $1,100 Window Treatments (mini blinds) 20 $50.00 $1,000 Exterior Door 2 $600.00 $1,200 Storm Door 2 $300.00 $600 Other $0 Other $0 Other $0 Other $0 Other $0 Other $0 Other $0 Other $0 Other $0

Subtotal Materials / Labor: Cost per Sq. ft.: $32.84 $59,120

Energy Efficiency Improvements # Per Unit Per Unit Cost Project

1 $2,000 $2,000 Windows 20 $250 $5,000 HVAC 1 $4,000 $4,000 Blower Door Test 1 $500 $500 House energy monitor $0 Ceiling Fans 6 $100 $600 Electrical: (motion, photovoltaic, dimmers, lt blbs) 11 $50 $550 Low Flow Plumbing Fixtures 3 $100 $300 Tankless water heater $0 Solar Panels - Photovoltaic $0 Other $0 Other $0 Other $0 Other $0

Total Energy Efficiency Improvements: $12,950

Appliance Allowance # Per Unit Per Unit Cost Project

Refrigerator 1 $600 $600 Range/Microwave Hood 1 $500 $500 Dishwasher 1 $400 $400 Garbage Disposal 1 $100 $100 Garage Door Opener 1 $200 $200 Washer / Dryer 1 $1,200 $1,200 Other $0 Other $0 Other $0

Total Appliance Allowance $3,000

TAB 6: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

As-Is Improved

1965 West Avalon Street, Allentown, PA

Demolition (Partial for Rehab only)

HVAC (Repair, not Replacement)

Windows (Refurbish, not Replacement)

Basic Insulation (not for Energy Efficiency)

House insulation upgrades

04/07/2023 NSP Homebuyer Purchase Feasibility Analysis 7

document.xls 6. Sources & Uses

SOURCES AND USES SCHEDULEPROJECT INFORMATION

What is the Development Appraisal Gap?

Address # of Bedrooms: 3 4

Developer # of Bathrooms: 1 2

Income Targeting Up to 120% Square Feet: 1,250 1,800 Sales Price: $100,000

INTERIM NSP-FUNDED DEVELOPMENT FINANCINGPER UNIT COSTS

Total Predevelopment: $7,975 Total Acquisition: $32,500 Total Construction: $81,145 Total Carrying Costs: $2,300 Total Professional Fees: $11,500 Total Seller's Closing Costs: $9,500 Total Developer Fee $13,490

TOTAL DEVELOPMENT COSTS: $158,410

I. TOTAL NSP INTERIM LOAN FOR TDC: $158,410

REHABILITATION - DEVELOPMENT SUBSIDY CALCULATE DEVELOPMENT "Appraisal GAP" SUBSIDY

TOTAL DEVELOPMENT COSTS: $158,410

less SALES PRICE $ 100,000

NSP REHAB DEVELOPER SUBSIDY: $58,410

HOMEBUYER AFFORDABILITY - CALCULATE HOMEBUYER "Affordability GAP" SUBSIDYMinimum Qualifying Income $19,344 Household Size: 4 PER UNIT COSTS

Housing to Income Ratio: 33%

US

ES

Estimated As-Improved Sales Price $100,000

Closing Costs $4,235

Total Sales Transaction Costs: $104,235

SO

UR

CE

S

FIRST MORTGAGE AMOUNT

$57,000

NSP Down Payment Assistance $1,500

NSP Closing Cost Assistance $4,235

Other Down Payment Assistance $0

$5,735

NSP Affordability Buy Down of Purchase Mortgage $40,000

$40,000 CASH FROM HOMEBUYER

$1,500

NSP HOMEBUYER SUBSIDY ANALYSIS

NSP Funded Mortgage Buy Down $40,000

NSP Funded Down Payment Assistance $1,500

NSP Funded Closing Cost Assistance $4,235

$45,735

II. FINAL COMBINED NSP SUBSIDY: $104,145

TAB 6: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

As-Is Improved1965 West Avalon Street, Allentown,

PABidwell Construction

DOWN PAYMENT / PRINCIPAL BUY DOWN (Based on incentives to market and sell unit)

AFFORDABILITY BUY DOWN OF MORTGAGE (Based on income & affordability needs)

TOTAL NSP HOMEBUYER AFFORDABILITY SUBSIDY (Mortgage Buydown & DPA):

04/07/2023 NSP Homebuyer Purchase Feasibility Analysis 8

document.xls 7. Funds Management

FUNDS MANAGEMENT ANALYSIS

PROJECT INFORMATIONAddress 1965 West Avalon Street, Allentown, PA As-Is Improved

Developer Bidwell Construction # of Bedrooms: 3 4

Income Level Up to 120% # of Bathrooms: 1 2

Square Feet: 1250 1800

Sales Price: $100,000

FUNDS MANAGEMENT INFORMATION

TOTAL DEVELOPMENT COST $158,410 100% interim financing

Sales Price $100,000NSP Development Subsidy $58,410

Sales Transaction Costs $104,235 Sales Price + Closing Costs

Buyer Purchase Power $58,500 1st Mortgage + Buyer Down Payment

NSP Homebuyer Subsidy $45,735 DPA + Mortgage Buy Down + Closing Cost Assistance

NSP OBLIGATION AMOUNT: $162,645 TDC + Closing Cost Assistance

FINAL NSP SUBSIDY: $104,145 Development plus Homebuyer Subsidy

NSP PROGRAM INCOME $58,500 Buyer Purchase Power

SUBSIDY ANALYSIS

Max Per Unit Total NSP Subisdy $150,000

Requested NSP Subsidy $104,145 Balance from Limit: $45,855

YES. PROCEED.

DISASTER RECOVERY GRANTS REPORTING SYSTEM

Income Level: 36% of AMI

Meet 25% Set-aside? NONSP Eligible

Obligation Amount UseAcquisition $40,475 USE EDisposition $11,800 USE E

$106,135 USE EDemolition of Blighted Structures $0 USE D

$4,235 USE ETotal $162,645

TAB 7: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

Within Maximum Subsidy Limits?

Rehabilitation / Redevelopment *

Homebuyer Assistance **

* Because of 100% financing and assumes developer-driven model, mortgage buydown and downpayment assistance are covered though total development costs. But, mortgage buydown and downpayment assistance affects program income returning to Grantee.

** Closing cost assistance is paid through a CDBG activity "Homebuyer Assistance."