This project is a 10 unit family development consisting of five 2-BR units and five 3-BR units. The units will be targeted toward households earning 30, 40, 50 and 60% of Area Median Income (AMI). One of the units will be fully accessible with a private elevator to provide access since the design constraints require all of the units to be built over individual garages. The project construction costs came in almost $600,000 higher than the original projection. This is coupled with the extensive infrastructure requirements due to the shape of the parcel (3 of the 4 sides of the parcel require full curb, gutter, sidewalk and street improvements) and the fact that the City of Pacifica was unsuccessful in obtaining HELP funds from the State, which they had originally committed to this project. The City has no other sources from which they could provide any assistance. The net result is that, as of August, the funding gap was over $770,000. NCR has worked extensively with the architect and project engineer to reduce the project costs and have managed to reduce the construction costs by over $270,000 with commensurate reductions in other costs that hinge on construction hard cost. They have also deferred half of their proposed developer fee. The remaining gap is $365,000 which they are requesting from us at this time. This project has a Tax Credit commitment, which they stand to loose if they cannot close this funding gap and start construction soon. They hope to have the project completed and leased by the end of 2004. Risk Management has reviewed and approved the Contractor's insurance. |