The Project Development Budget considers the high costs of construction in SJC, the need to meet requirements of federal grant programs such as LEED Silver Certification and prevailing wages for construction, and the Project’s overriding goal to remain affordable to its users.
As of March 2024, the total development cost is estimated at $6,927,265. This includes a contingency amount of 15% of total construction hard and soft costs. It also assumes that $300,000 is deposited into the Replacement and Operating Reserve Funds and an additional $500,000 is deposited in the Endowment Fund. The purpose of the Endowment Fund is to provide financial stability for the Project on a long-term basis, keeping rental rents for Project’s participants as low as possible.
| Componemts of Project Budget | |
| Land Acquisition Costs | $5,176 |
| Construction Costs | $4,648,450 |
| Architectural, Engineering &Other Development Costs | $1,236,838 |
| Organizational and Administrative Costs | $236,800 |
| Initial Deposit to Lease-Up Reserve | $100,000 |
| Initial Deposit to Replacement Reserve | $200,000 |
| Initial Deposit to Endowment Fund | $500,000 |
| Total | $6,927,265 |