05/21/2024 NSP Homebuyer Purchase Feasibility Analysis 2

TAB 1: HOMEBUYER PROJECT - DEVELOPER-DRIVEN MODEL

UNDERWRITING CRITERIA
Mortgage Term
Requirements

Housing to Income Ratio Minimum Maximum

Gross Household Income 25% 33%

Debt to Income Ratio 41%

PROGRAM GUIDELINES
Forms of Assistance

Subsidy Amount Limits Uses

Appraisal Gap
Final Development $80,000 per unit (TDC exceeds Sales Price)

Final Affordability Affordability Gap

$50,000 per unit (Down Payment, Closing Costs
Homebuyer and Mortgage Buy Down)

Maximum $150,000 per unit

Professional Fees

Fee Amount Eligible Service Provider

Developer Fee 12% of TDC less Acquisition Costs Non-Profit and For Profit
Developers

Sales Referral
6% of Sales Price or $4,000 Licensed Real Estate Agents
(whichever greater)

per NSP-assisted unit HUD-certified Housing

Homebuyer Education $500 sold to eligible buyer Counselors

756655061.xls 1. Program Guidelines

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TAB 2: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

PROJECT DESCRIPTION, HOMEBUYER INFORMATION & COMPLIANCE

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

DEVELOPER
A. Is the Developer a Local Government or Subrecipient? Yes or No? NO
If YES, Local Government does not receive Developer Fee. Rather, they will use Administration Funds.

PROPERTY
A. Property Description B. Purchase Price and Appraisal Analysis
As Is As Improved AS-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
Appraisal done within 60 days
Estimated As-Improved Sales Price $100,000 prior to Final Agreement date?*
YES
*"Yes" to both questions for purchase to comply with NSP.

C. Property Type & NSP Eligible Use Analysis

1. Is the Property a vacant lot, or a vacant, foreclosed or abandoned single-family home? Yes or No? no NO NSP ELIGIBLE USE
2. Is the Property a vacant, non-foreclosed single family home? Yes or No? yes YES Acquisition?
3. Will the project rehabilitate the existing single family home? Yes or No? yes NO USE E
If No to questions #1 & 2, then property is ineligible for NSP. If No to question #3, then new construction project. Rehab/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
Link to income limits 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

756655061.xls 2.Proj Description & Compliance

05/21/2024 NSP Homebuyer Purchase Feasibility Analysis 4

TAB 3: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

TO BE IDENTIFIED HOMEBUYER AFFORDABILITY ANALYSIS

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
Lowest
SMSA Allentown Qualifying
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
MAXIMUM Housing/Income Ratio 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
First Mortgage Loan-to-Value Ratio: 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
Second Mortgage Loan-to-Value Ratio: 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
Second Mortgage Principal and Interest: $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

Per Unit Affordability

Affordability Subsidy SOURCES Subsidy USE Subsidy 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

756655061.xls 3. Buyer Affordability

05/21/2024 NSP Homebuyer Purchase Feasibility Analysis 5

DEVELOPMENT BUDGET
What are the Estimated Costs to Rehab A Scattered-Site Single Family Unit?
What is the Development Appraisal Gap?
As-Is Improved
1965 West Avalon Street,
Address # of Bedrooms: 3 4
Allentown, PA
Developer Bidwell Construction # of Bathrooms: 1 2
Income Targeting Up to 120% Square Feet: 1,250 1,800
Sales Price: $100,000

USES
PREDEVELOPMENT PER UNIT
Environmental 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 ACQUISITION
Land & 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 COSTS
REHAB 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 COSTS
Board 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 SERVICES
Legal $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 COSTS
Realtor 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
If YES, Local Government does not receive Developer Fee. Rather, they will use Administration Funds.

TOTAL DEVELOPMENT COSTS (TDC): $158,410

less SALE Proceeds: $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
Compliant with Sales
Price? YES Within Appraisal Gap Limit? Proceed

756655061.xls 4. Development Budget

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TAB 6: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

CONSTRUCTION BUDGET
What is the Development Appraisal Gap?
As-Is Improved
1965 West Avalon Street,
Address Allentown, PA # 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 Cost
Demolition (Partial for Rehab only) 0 $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
HVAC (Repair, not Replacement) 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
Windows (Refurbish, not Replacement) 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
Basic Insulation (not for Energy Efficiency) 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

House insulation upgrades 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

756655061.xls 5. Construction Budget

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TAB 6: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

SOURCES AND USES SCHEDULE
PROJECT INFORMATION
What is the Development Appraisal Gap?
1965 West Avalon As-Is Improved
Address Street, Allentown, # of Bedrooms: 3 4
Bidwell
PA # of Bathrooms: 1 2
Developer
Construction
Income Targeting Up to 120% Square Feet: 1,250 1,800
Sales Price: $100,000

INTERIM NSP-FUNDED DEVELOPMENT FINANCING

PER 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" SUBSIDY

Minimum Qualifying Income $19,344 Household Size: 4 PER UNIT COSTS

Housing to Income Ratio: 33%

Estimated As-Improved Sales Price $100,000

USES

Closing Costs $4,235

Total Sales Transaction Costs: $104,235
FIRST MORTGAGE AMOUNT
$57,000
DOWN PAYMENT / PRINCIPAL BUY DOWN (Based on incentives to market and sell unit)
NSP Down Payment Assistance $1,500
NSP Closing Cost Assistance $4,235
SOURCES

Other Down Payment Assistance $0

$5,735
AFFORDABILITY BUY DOWN OF MORTGAGE (Based on income & affordability needs)
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
TOTAL NSP HOMEBUYER AFFORDABILITY SUBSIDY (Mortgage Buydown & DPA): $45,735

II. FINAL COMBINED NSP SUBSIDY: $104,145

756655061.xls 6. Sources & Uses

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TAB 7: HOMEBUYER PROJECT - DEVELOPER-DRIVEN

FUNDS MANAGEMENT ANALYSIS

PROJECT INFORMATION
Address 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 $100,000
NSP 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

Within Maximum Subsidy

YES. PROCEED.
Limits?

DISASTER RECOVERY GRANTS REPORTING SYSTEM

Income Level: 36% of AMI
Meet 25% Set-aside? NO
NSP Eligible
Obligation Amount Use
Acquisition $40,475 USE E
Disposition $11,800 USE E
Rehabilitation / Redevelopment * $106,135 USE E
Demolition of Blighted Structures $0 USE D
Homebuyer Assistance ** $4,235 USE E
Total $162,645

* 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."

756655061.xls 7. Funds Management