Compare the permanent sources and uses with the construction sources and uses. What are three things that are happening and why?

Design Option 1 Budget (Amendment to Exhibit M of Disposition and Development Agreement) Revised: 3/21/2011 SOURCES & USES OF FUNDS Project Name: 9% Downey View Proforma 50 units Project Address: 8314 2nd Street , Downey, CA 90241 Developer: Downey Housing Partners, L.P. (SCHDCLA & NATIONAL CORE) SOURCES: CONSTRUCTION Per Unit USES: Private Const Loan $8,523,442 170,469 Acquisition Costs/Closing LIHTC Equity - 9% $3,627,367 72,547 Architecture/Fees & Permits LA County CDC Industry $2,286,720 45,734 Construction Cost LA County CDC Energy Efficiency $100,000 2,000 Indirect Construction/Legal Downey CDC - HOME Funds $450,000 9,000 Developer's Fee Downey CDC - Tax Increment $4,550,000 91,000 Rent-Up Costs/Reserves Other $0 0 Financing Costs Other $1,481,775 $1,835,000 $14,073,186 $415,523 $700,000 $81,045 $951,000 SO Per Unit 29,636 36,700 281,464 8,310 14,000 1,621 19,020 0 TOTAL $19,537,529 390,751 $19,537,529 390,751 SOURCES: PERMANENT Private Perm Loan Other LIHTC Equity - 9% Deferred Dev Fee LA County CDC Industry LA County CDC Energy Efficiency Downey CDC - HOME Funds Downey CDC - Tax Increment Other FHLB AHP TOTAL $1,640,737 $0 $10,363,906 $500,000 $2,286,720 $100,000 $450,000 $4,550,000 $0 $700,000 $20,591,362 Per Unit 32.815 0 207,278 10,000 45,734 2,000 9,000 91,000 0 14,000 411,827 USES: Acquisition Costs/Closing Architecture/Fees & Permits Construction Cost Indirect Construction/Legal Developer's Fee Rent-Up Costs/Reserves Financing Costs Other $1,481,775 $1,835,000 $14,073,186 $415,523 $1,400,000 $305,878 $1,080,000 SO Per Unit 24,696 30,583 234,553 6.925 23,333 5,098 18,000 0 $20,591,362 411,827 Design Option 1 Budget (Amendment to Exhibit M of Disposition and Development Agreement) Revised: 3/21/2011 SOURCES & USES OF FUNDS Project Name: 9% Downey View Proforma 50 units Project Address: 8314 2nd Street , Downey, CA 90241 Developer: Downey Housing Partners, L.P. (SCHDCLA & NATIONAL CORE) SOURCES: CONSTRUCTION Per Unit USES: Private Const Loan $8,523,442 170,469 Acquisition Costs/Closing LIHTC Equity - 9% $3,627,367 72,547 Architecture/Fees & Permits LA County CDC Industry $2,286,720 45,734 Construction Cost LA County CDC Energy Efficiency $100,000 2,000 Indirect Construction/Legal Downey CDC - HOME Funds $450,000 9,000 Developer's Fee Downey CDC - Tax Increment $4,550,000 91,000 Rent-Up Costs/Reserves Other $0 0 Financing Costs Other $1,481,775 $1,835,000 $14,073,186 $415,523 $700,000 $81,045 $951,000 SO Per Unit 29,636 36,700 281,464 8,310 14,000 1,621 19,020 0 TOTAL $19,537,529 390,751 $19,537,529 390,751 SOURCES: PERMANENT Private Perm Loan Other LIHTC Equity - 9% Deferred Dev Fee LA County CDC Industry LA County CDC Energy Efficiency Downey CDC - HOME Funds Downey CDC - Tax Increment Other FHLB AHP TOTAL $1,640,737 $0 $10,363,906 $500,000 $2,286,720 $100,000 $450,000 $4,550,000 $0 $700,000 $20,591,362 Per Unit 32.815 0 207,278 10,000 45,734 2,000 9,000 91,000 0 14,000 411,827 USES: Acquisition Costs/Closing Architecture/Fees & Permits Construction Cost Indirect Construction/Legal Developer's Fee Rent-Up Costs/Reserves Financing Costs Other $1,481,775 $1,835,000 $14,073,186 $415,523 $1,400,000 $305,878 $1,080,000 SO Per Unit 24,696 30,583 234,553 6.925 23,333 5,098 18,000 0 $20,591,362 411,827