Developers outline $21.7M pro forma, LIHTC mechanics and remaining funding gap

TWG walked the URA through a detailed sources‑and‑uses table that presenters said totaled roughly $21.7 million and included tax‑credit equity, a construction loan and public gap funding commitments.

Megan Adams described current tax‑credit pricing and pro‑forma assumptions, saying tax‑credit pricing has ‘‘plummeted’’ in recent years and that TWG is using about 78¢ on the dollar in its model. She said the permanent loan interest rate used in the model is about 7% and the lender requires reserves and a minimum debt coverage ratio of 1.15.

Seth Atkinson listed secured awards and commitments: CHFA 9% LIHTC equity, a pre‑approval commitment from DOH for $1,000,000, and $500,000 in HTF funding from El Paso County. He also said the project is awaiting a further $500,000 DOH award that the state has paused pending confirmation the URA will permit the project to proceed.

On developer compensation, TWG explained the maximum developer fee rules for LIHTC projects and said the team proposes a 10% developer fee (within the 15% maximum) with a portion deferred and payable over time. Presenters identified a Paragon internal note of $290,000 and other typical line items (hard costs, soft costs, tax credit fees and reserves) in the pro‑forma.