Based on the development budget and operating pro forma, NHDC needs to establish a financing plan for the project. Through initial discussion with lenders, foundations, and other sources, NHDC identified the following funding availability and terms: 150,000 in city and foundations grants, Two local banks interested in providing a senior mortgage loanbased on an 80% loan-to-value ratio and 1.25 debt service coverageat 8% with a 20-year term and amortization. Will the senior mortgage loan of 1,737,120 and a 150,000 in grant funds provide sufficient financing for NHDC to undertake the project? Please also use the information below.

Table 7.3 City Plaza Lease Summary and Rent Roll Square Feet Base Rent Lease Expiration Donut Shop Discount Store 20,100 31,000 33,720 $36,000 $20,300 $22,750 $13,300 160,000 $337,170 2,010 10,085 8,680 1 year 2 years 2 years 4 years 2 years 6 years 4 years 10 years Bank Branch Electronics Store 3,500 8,450 1,900 20,000 60,000 Medical Office New Supermarket Exhibit 7.5 City Plaza 5-Year Operating Pro Forma ear 1 Year 2 ear 3 Year 4 Year 5 337,170 $337,974 $344,776$344,776 $352,171 31,296 $32,548 9,305 $9,770 Lease Income 27,822 $28,935 $30,093 Additional Rent $8,862 Parking Income Total Gross Revenue Vacancy/Loss Allowance Effective Gross Revenue $8,038 $8,440 $12,155 $12,155 $12,155 $385,185 $387,504 $395,885 $397,532 $406,644 $19,259) ($19,375) ($19,794)($19,877) ($20,332) 365,926 $368,129 $376,091$377,655 $386,312 12,155 $12,155 Expenses Legal and Professional Fees $17,500 $18,200 $18,928 19,685$20,473 Utilities Maintenance and Repairs $19,142$19,908 $20,704 $21,533$22,394 Insurance Taxes Trash and Snow Removal Security Miscellaneous $22,750 $23,660 $24,606 25,59 $26,614 37,100 $38,584 $40,127 $49,500 $50,738 $52,006 12,000$12,480 $12,979 $20,349 $21,163 $22,009 $1,082 41,732 $43,402 $53,306 $54,639 13,498 $14,038 22,890 $23,805 $1,000 30,000 $31,200 32,448 $1,170 33,746 $35,096 $1,040 1,125 Replacement Reserve Total Expenses Income Before Debt 209,341 $216,973 $224,890 $233,106 $241,631 $156,585 $151,156 $151,201$144,550 $144,68 Table 7.3 City Plaza Lease Summary and Rent Roll Square Feet Base Rent Lease Expiration Donut Shop Discount Store 20,100 31,000 33,720 $36,000 $20,300 $22,750 $13,300 160,000 $337,170 2,010 10,085 8,680 1 year 2 years 2 years 4 years 2 years 6 years 4 years 10 years Bank Branch Electronics Store 3,500 8,450 1,900 20,000 60,000 Medical Office New Supermarket Exhibit 7.5 City Plaza 5-Year Operating Pro Forma ear 1 Year 2 ear 3 Year 4 Year 5 337,170 $337,974 $344,776$344,776 $352,171 31,296 $32,548 9,305 $9,770 Lease Income 27,822 $28,935 $30,093 Additional Rent $8,862 Parking Income Total Gross Revenue Vacancy/Loss Allowance Effective Gross Revenue $8,038 $8,440 $12,155 $12,155 $12,155 $385,185 $387,504 $395,885 $397,532 $406,644 $19,259) ($19,375) ($19,794)($19,877) ($20,332) 365,926 $368,129 $376,091$377,655 $386,312 12,155 $12,155 Expenses Legal and Professional Fees $17,500 $18,200 $18,928 19,685$20,473 Utilities Maintenance and Repairs $19,142$19,908 $20,704 $21,533$22,394 Insurance Taxes Trash and Snow Removal Security Miscellaneous $22,750 $23,660 $24,606 25,59 $26,614 37,100 $38,584 $40,127 $49,500 $50,738 $52,006 12,000$12,480 $12,979 $20,349 $21,163 $22,009 $1,082 41,732 $43,402 $53,306 $54,639 13,498 $14,038 22,890 $23,805 $1,000 30,000 $31,200 32,448 $1,170 33,746 $35,096 $1,040 1,125 Replacement Reserve Total Expenses Income Before Debt 209,341 $216,973 $224,890 $233,106 $241,631 $156,585 $151,156 $151,201$144,550 $144,68