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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,

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.

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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

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