2009 Federal Low Income Housing Tax Credit Program Application For Reservation Deadline for Submission 9 % Competitive Credits Applications Must Be Received At VHDA No Later Than 5:00 pm on may 15, 2009. Applications should be received at least one month before the bonds are priced (if bonds are issued by VHDA)
2009 Federal Low Income Housing Tax Credit Program Application For Reservation Deadline for Submission 9 % Competitive Credits Applications Must Be Received At VHDA No Later Than 5:00 pm on may 15, 2009. Applications should be received at least one month before the bonds are priced (if bonds are issued by VHDA)
2009 Federal Low Income Housing Tax Credit Program Application For Reservation Deadline for Submission 9 % Competitive Credits Applications Must Be Received At VHDA No Later Than 5:00 pm on may 15, 2009. Applications should be received at least one month before the bonds are priced (if bonds are issued by VHDA)
2009 Federal Low Income Housing Tax Credit Program
Application For Reservation
Deadline for Submission
9 % Competitive Credits
Applications Must Be Received At VHDA No Later Than 5:00 PM Richmond, V A Time On May 15, 2009
Tax Exempt Bonds
Applications should be received at VHDA at least one month before the bonds are priced (if bonds issued by VHDA), or 75 days before the bonds are issued (if bonds are not issued by VHDA)
Virginia Housing Development Authority 601 South Belvidere Street
Richmond, Virginia 23220-6500
Affordahle ffroun,OW Start9 Here"
2009
v1.4.2009
Low Income Housing Tax Credit Application for Reservation
o Electronic Copy of the Microsoft Excel Based Application (MANDATORy)
o Hard Copy of All Application Pages With Signature (MANDATORy)
o Scanned Copy of the Tax Credit Application with all Attachments (excluding market study and plans & specs) (MANDATOR\, o $750 Application Fee (MANDATORy)
Tab A: Documentation of Development Location:
o A,I Qualified Census Tract Certification
o A.2 Revitalization Area Certification
o Location Map
o Surveyor's Certification of Proximity To Public Transportation
o Tab B: Partnership or Operating Agreement, including chart of ownership structure with percentage of interests (MANDATUR
o Tab C: Virginia State Corporation Comrmssion Certiticanon (MANDATURY)
o Tab D: Principal's PrevIOUS Participation Certification and Resume (MANDATURY)
o Tab E: Nonprofit Questionnaire (MANDATURY for pomts or pool)
The following documents need not be submitted unless requested by VHDA: -Nonprofit Articles of Incorporation
-IRS Documentation of Nonprofit Status
-Joint Venture Agreement (if applicable)
-For-profit Consulting Agreement (if applicable)
Architect's Certitication (MANDATURY)
PHA I Section 8 Notification Letter
Local CEO Letter
Homeownership Plan
Site Control Documentation (MANDATURY)
Plan of Development Certification Letter Zoning Certification Letter
Copies of 8609s To Certify Developer Experience (Reserved)
Plans and Specitications and Work write-Up (MANDATORY) Documentation of Rental Assistance
Documentation of Operating Budget
Documentation of Project Budget
Documentation of Financing Sources
(Reserved)
Nonprofit or LHA Purchase Option or Right of First Refusal Original Attorney's Opinion (MANDATURY)
(Reserved)
Marketing Plan for units meeting accessibility requirements of HUD section 504
Market Study (MANDATORY-Application will be disqualified if market study not submitted with the application)
0TabF: 0TabH: o Tab I:
OTabJ: 0TabK: 0TabL: 0TabM: 0TabN: o Tab 0: 0TabP: 0TabQ: 0TabR: 0TabS: o Tab T:
OTabU: o Tab V: 0TabW: 0TabX: 0TabY: 0TabZ
2009
Submission Checklist
Low-Income Housing Tax Credit Application For Reservation
I. General Information
All code "Section" references are to, and the term "IRe" shall be deemed to mean, the Internal Revenue Code of 1986, as amended.
A. Development Name and Location:
I. Name of Development
2. Address of Development
Toms Brook School Apartments
3232 South Main Street
(Street)
Toms Brook
Virginia
22660
(City)
(State)
(Zip Code)
3.
If complete address is not available, provide longitude and latitude coordinates (x,y) from location on site your surveyor deems appropriate. D Documentation from surveyor attached (TAB A)
9. 10.
(Only necessary if street address or street intersections are not available. (Coordinates should be the same as those listed on pg 13, if applicable) The Circuit Court Clerk's office in which the deed to the property is or will be recorded:
City/County of Shenandoah County (ie; Richmond City, Chesterfield County; see application manual)
Does the site overlap one or more jurisdictional boundaries? 0 Yes D No
If yes, what other City/County is the site located in besides the one mentioned above?
Is the development located in a Metropolitan Statistical Area? DYes 0 No
Census Tract the development is located in: 51 171 0403
Is this a Qualified Census Tract: D Yes
Is the development located in a Difficult Development Area? ~
Is the development located in a revitalization area? ""-0 Yes D No (If yes, attach required form in TAB A)
Is the development an existing RD or HUD S8/236 development? DYes 0 No (If yes, attach required form in TAB Q)
Note: Ifthere is an identity of interest between the applicant and the seller in this proposal, and the applicant is seeking points in
this category, then the applicant must either waive their rights to the developer's fee or other fees associated with acquisition andlor rehabilitation, or obtain a waiver of this requirement from VHDA prior to application submission to receive these points.
a. Applicant agrees to waive all rights to any developer's fee or
other fees associated with acquisition andlor rehab. DYes 0 n/a
b. Applicant has obtained a waiver of this requirement from VHDA
prior to the application submission deadline. DYes 0 n/a
II. Is the development located in a census tract with a poverty
rate <10% with no tax credit units currently present? D Yes 0 No
12. Is the development listed on the RD SIS Rehabilitation
Priority List? DYes 0 No
13. Congressional District 6 http://dlsgis.state.va.us/congressI2001POFs/chap7Tab.pdf
Planning District 7 http://www.vapdc.orq/aboutpdcs.htmllPDC%20Map
State Senate District 26 http://dlsgis.state.va.us/senatel2001PDFslChap2Tab.pdf
State House District IS http://dlsgis.state.va.us/House/2001HousePDFs/Chap1Tab.pdf
5.
4.
6. 7.
Town of Toms Brook
No (If yes, attach required form in TAB A)
8.
(
14. 0 Location Map Attached (TAB A)
B. Project Description:
In the space provided below, give a brief description of the proposed project.
Toms Brook School Apartments is an adaptive reuse project of an abandoned and blighted elementary school which will result in the creation of 13 three-bedroom. 6 two-bedroom, and 4 one-bedroom apartments. The units will have EnergyStar windows and appliances, high efficiency heat pumps, new flooring, new roofing. and will be EarthCraft certified upon completion.
2009
Page I
Low Income Housing Tax Credit Application For Reservation
C. Reservation Request
1. Total annual credit amount request (Must be the same as Part IX-D8)
$381,870
2. Credits requested from: 9% Credits
o Nonprofit Set-Aside (All nonprofit owned developments which meet tests described in Part II-D hereof may select this)
o Local Housing Authorities
o Northern Virginia MSA Pool
o Richmond MSA Pool
o Non-Competitive Pool (Preservation)
o Tidewater MSA Pool
o Small MSNMicropolitan Pool
o Rural Pool
o Non-Competitive Pool (Disability)
o Tax Exempt Bonds
o new construction, Q!
o rehabilitation, Q!
o acquisition and rehabilitation.
Federal Subsidies
o The development will not receive federal subsidies.
o This development will receive federal subsidies for: o all buildings or
Dsome buildings.
D. Type(s) of Allocation/Allocation Year
1. Regular Allocation
o All of the buildings in the development are expected to be placed
in service this year. For those buildings the owner will, this year, request an allocation of 2008 credits for 0 new construction, or
o rehabilitation, or
o acquisition and rehabilitation.
2. Carryforward Allocation
o All of the buildings in the development are expected to be placed
in service within two years after the end of this calendar year, 2009, but the owner will have more than 10% basis in the development before the end of six months following allocation of credits. For those buildings, the owner requests a carryforward allocation of2009 credits pursuant to Section 42(h)(l)(E) for:
o new construction, or
o rehabilitation, or
o acquisition and rehabilitation (even if you acquired a building this year and "placed it in service" for the purpose of the acquisition credit, you cannot receive the 8609 form for it until the rehab 8609 is issued for that building once the rehab work is "placed in service" in 2010 or 2011).
3. Federal Subsidies
o The development will not receive federal subsidies.
o This development will receive federal subsidies for:
o all buildings or
o some buildings.
2009
Page 2
Low-Income Housing Tax Credit Application For Reservation
E. Acquisition Credit Information
NOTE: If no credits are being requested for existing buildings being acquired for the development,
so indicate and go on to Part F: 0 No Acquisition
Ten-Year Rule For Acquisition Credits
o All buildings satisfy the 10-year look-back rule of IRe Section 42 (d)(2)(B), including the 10% basis/$15,000.00 rehab costs ($10,000 for Tax Exempt Bonds) per unit requirement.
o All buildings qualify for an exception to the 1 O-year rule under IRe Section 42( d)(2)(D)(i),
Subsection (I) 0
Subsection (II) 0
Subsection (III) 0
Subsection (IV) 0
Subsection (V) 0
o A waiver of the 10-year rule for all buildings has been or will be requested from the Department of the Treasury pursuant to IRe Section 42(d)(6)(B)
o Different circumstances for different buildings: Attach a separate sheet and explain for each building.
F. Rehabilitation Credit Information
NOTE: If no credits are being requested for rehabilitation expenditures, so indicate and go
on to Section II. 0 No Rehabilitation
Minimum Expenditure Requirements
o All buildings in the development satisfy the rehab costs per unit requirement of IRe Section 42( e )(3 )(A)(ii).
o All buildings in the development qualify for the IRe Section 42(e)(3)(B) exception to the 10% basis requirement (4% credit only).
o All buildings in the development qualify for the IRe Section 42(f)(5)(B)(ii)(II) exception.
o Different circumstances for different buildings. Attach a separate sheet and explam tor each building.
2009 Page 3
Low-Income Housing Tax Credit Application For Reservation
II. OWNERSHIP INFORMATION
NOTE: VHDA may allocate credits only to the tax-paying entity which owns the development at the time of the allocation. The term "Owner" herein refers to that entity. Please fill in the legal name of the owner. The ownership entity must be formed prior to submitting this application. Any transfer, direct or indirect, of partnership interests (except those involving the admission of limited partners) prior to the placed-in-service date of the proposed development shall be prohibited, unless the transfer is consented to by VHDA in its sole discretion. IMPORTANT:
The Owner name listed on this page must match exactly the owner name listed on the Virginia State Corporation Commission Certification.
Must be an individual or legally formed entity
A. Owner Information:
Name Toms Brook School Apartments, L.L.C.
Contact Person First: Robert
Address 1173 West Main~S-:-tr-ee-:-t-----
Middle: Glass
-----
Last: Goldsmith
Abingdon
treet VIrginia
24210
(City)
(State)
(Zip Code)
Federal I, D. No. (If not available, obtain prior to Allocation)
[] Certitication trom Virginia State Corporation Commission attached (Mandatory TAB C)
Principal(s) involved (e.g. general partners, LLC members, controlling shareholders, etc.):
Names ** Phone Type Ownership
People Incorporated Housing Group 276 623 9000 Managing Member
Robert G. GoldsmIth
People Incorporated of VIrgInIa
2766239000
SpeCIal Member
Robert G. GoldsmIth
This should be 100% of the GP or managing member interest:
% Ownership 90.00%
0.00%
0.00%
10.00%
0.00%
0.00%
0.00%
100.00%
** These should be the names of individuals who comprise the GP or managing members, not simply the names of separate partnershIps or corporatIons WhICh may compnse those components.
322 South Green Street; Suite 412; ChIcago, It 60607
312-491-3324
Fax: 312-421-6162
Related Entity? DYes 0 No
Fax: 804-359-3897
Related Entity? DYes 0 No
Role:
Fax:
Related Entity? o Yes 0 No
Fax: 2766282931
Related Entity? o Yes 0 No
Fax: 2766282931
Related Entity? DYes 0 No 3. Consultant:
Firm Name:
Address:
Phone:
Mike Vicars
Dooley and VIcars
21 South Sheppard Street; Richmond, VA 23221
804-355-2508
4. Management Entity (Contact): Robert G. Goldsmith
Firm Name: People Incorp--o-ra-:t-ed""-o"l"fTV""ir--gI"" n .... i .... a---------
Address: 1173 West MaIn Street; AbIngdon, VIrginIa 24210
Phone: 2766239000
5. Contractor (Contact): Robert G. Goldsmith
Firm Name: Peo-pT"le""rn'--co-rp-o-ra""te-dT"o-£l"'" VM"""U-g .... In .... Ia-----------
Address: 1173 West MaIn Street; Abingdon, VIrgInia 24210
Address: 600 Commonwealth Avenue; Bnstol, VIrgInIa 24201
Phone: 276-669-3377
6.
Architect:
Firm Name:
Address:
Phone:
7.
8.
Mortgage Banker:
Firm Name:
Address:
Phone:
9.
Other (Contact):
Firm Name:
Address:
Phone:
2009
James C. Bundy
BundyA&E
321 Wst Main Street; AbIngdon, VIrgInia 24210
276-628-1067
Fax:
DYes 0 No
Fax:
Related Entity?
-------------------------------------
DYes 0 No
Fax:
-------------------------------------
Karl Bren Related Entity? 0 Yes 0 No
7G-rr--e--en-rVi"'"is""'io-n-s-:C~0-n-s-uT:lt~in--g-------------Role: LEED Professional
404 BaldwIn Road; Richmond, VA 23221
(804) 228-2348 Fax: (804) 288-6345
-------------~~--------------------
Page 5
Low-Income Housing Tax Credit Application For Reservation
D. Nonprofit Involvement:
Applications For 9% Credits - Must be completed in order to compete in the nonprofit tax credit pool. All Applicants - Must be completed for points for nonprofit involvement under the ranking system.
Tax Credit Nonprofit Pool Applicants: To qualify for the nonprofit pool, an organization described in IRC Section 50 I
(c)(3) or 501 (c)(4) and exempt from taxation under IRC Section 501 (a), whose purposes include the fostering oflow-income housing:
I. Must "materially participate" in the development and operation of the project throughout the compliance period,
2. Must own all general partnership interests in the development.
3. Must not be affiliated with or controlled by a for-profit organization.
4. Must not have been formed for the principal purpose of competition in the nonprofit pool, and
5. Must not have any staff member, or member of the nonprofit's board of directors materially participate in the proposed project as a for-profit entity.
AU Applicants: To quality tor points under the ranking system, the nonprotit's involvement need not necessarily satisfy all of the requirements for participation in the nonprofit tax credit pool.
1. Nonprofit Involvement (All Applicants)
Ifthere is no nonprofit involvement in this development, please indicate by checking here: o and go on to part III
2. Mandatory Questionnaire
Ifthere ~ nonprotit involvement, you must complete the Non-Profit Questionnaire o Questionnaire attached (Mandatory TAD E)
3. Type of involvement
o Nonprofit meets eligibility requirement for points only, not pool or
o Nonprofit meets eligibility requirements for nonprofit pool and points.
4. Identity of Nonprofit (All nonprofit applicants)
The nonprofit organization involved in this development is:
o the Owner
o the Applicant (if different from Owner)
o Other
People Incorporated Housing Group
Robert G. Goldsmith
(Name of nonprofit)
1173 West Main Street
(Contact Person) Abingdon
Virginia
(Street Address) 24210
(City) 2766239000
(State)
(Zip co e) 2766282931
(Phone)
(Fax)
5.
Percentage of Nonprofit Ownership (All nonprofit applicants)
Specify the nonprofit entity's percentage ownership of the general partnership interest:
100.0%
2009
Page 6
Low-Income Housing Tax Credit Application For Reservation
III. DEVELOPMENT INFORMATION
A. Structure and Units:
1. Total number of all units in development Total number of rental units m development Number of low-income rental units
Percentage of rental units designated low-income
23
23 bedrooms 55
23 bedrooms -"l"5"'1"5-
100.00%
2. The development's structural features are (check all that apply):
o Row House/Townhouse
o Garden Apartments
o Slab on Grade
o Detached Single- family
o Detached Two-family
o Basement
o Crawlspace
o Elevator
Age of Structure:
Number of stories:
71
2
3. Number of new units
Number of adaptive reuse units Number of rehab units
o bedrooms 0
---,..,23 .... bedrooms --~55""
o bedrooms 0
4. Total Floor Area For The Entire Development
26,537.36 (Sq. ft.)
5. Unneated i-toor Area (Breezeways, Balconies, Storage)
U. UU (Sq. ft.)
6. Nonresidential Commercial Floor Area (Not eligible for funding)
7. Total Usable Residential Heated Area
0.00 (Sq. ft.)
26,537.36 (Sq. ft.)
8. Number of Buildings (containing rental units)
2
9. Commercial Area Intended Use:
10. Project consists primarily of a building(s) which is (are) (CHOOSE ONLY ONE)
o Low-Rise (1-5 stories with any structural elements made of wood)
o Mid-Rise (5-7 stories with no structural elements made of wood)
o High-Rise (8 or more stories with no structural elements made of wood)
B. Building Systems:
Please describe each of the following in the space provided.
Low-Income Housing Tax Credit Application For Reservation
1. Specify the average size per unit type:
Assisted Lvg 0.00 SF
1-Sty-Eff-Eld 0.00 SF
I-Sty IBR-Eld 0.00 SF
l-Sty 2BR-Eld 0.00 SF
Eff-Eld 0.00 SF
(Including pro rata share of heated common area)
IBdrm Eld 0.00 SF 3-Bdrm Gar
2Bdrm Eld 0.00 SF 4-Bdrm Gar
Eff-Gar 0.00 SF 2-Bdrm TH
I-Bdrm Gar 834.01 SF 3-Bdrm TH
2-Bdrm Gar 1,082.07 SF 4-Bdrm TH
1,285.30 SF 0.00 SF 0.00 SF 0.00 SF 0.00 SF
2. Total gross usable, heated square feet for the entire project less nonresidential commercial area: 26,537.36 0 Documentation attached (TAB1") Mandatory
(Sq. ft.)
NOTE: All developments must meet VHDA's Minimum Design and Construction Requirements.
By signing and submitting the Application For Reservation of Low Income Housing Tax Credits the applicant certifies that the proposed project budget, plans & specifications and work write-ups incorporate all necessary elements to fulfill these requirements.
3. Check the following items which apply to the proposed project:
o Documentation attached (TAB F Architect Certification) Mandatory
(Optional Point items)
For any project, upon completion of construction/rehabilitation: 100% a(l) Percentage of 2-bedroom units that have 1.5 bathrooms
100% a(2) Percentage of 3 or more bedroom units that have 2 bathrooms
A community/meeting room with a minimum of 749 square feet is provided
D b.
90% c.
0 d.
0 e.
0 f. Percentage of exterior walls covered by brick (excluding triangular gable ends, doors and windows) All kitchen and laundry appliances meet theEP A's Energy Star qualified program requirements
All windows meet the EPA's Energy Star qualified program requirements
Every unit in the development is heated and air conditioned with either (i) heat pump units with both a SEER rating or 14.0 or more and a HSPF rating or ~u or more and a variable speed air handling unit
(for through- the-wall heat pump equipment that has an EER rating of 11.0 or more), or (ii) air conditioning units with a SEER rating of 14.0 or more and a variable speed air handling unit, combined with gas furnaces with an AFUE rating of 90% or more
o g. Water expense is sub-metered (the tenant will pay monthly or bi-monthly bill)
o h. Each bathroom consists only oflow-flow faucets (2.2 gpm max.) and showerheads (2.5gpm max.)
o 1. Provide necessary infrastructure in all units for high speed cable, DSL or wireless internet sevice. D j. All water heaters meet the EPA's Energy Star qualified program requirements.
2009
Page 8
Low Income Housing Tax Credit Application For Reservation
For aU projects exclusively serving elderly and/or handicapped tenants, upon completion
of construction/rehabilitation: (Optional Point items)
o a.
o b.
o c.
o d.
All cooking ranges will have front controls All units will have an emergency call system
All bathrooms will have an independent or supplemental heat source
All entrance doors have two eye viewers, one at 48" and the other at standard height
For aU rehabilitation and adaptive reuse projects, upon completion of construction or
or rehabilitation: (Optional Point items)
o The structure is listed individually in the National Register of Historic Places or is located in a registered historic district and certified by the Secretary of the Interior as being of historical significance to the district, and the rehabilitation will be completed in such a manner as to be eligible for historic rehabilitation tax credits
Accessibility
Check one or none of the toll owing point categones, as appropnate:
o For any non-elderly property in which the greater of 5 or 10% of the units (i) provide federal project-based rent subsidies or equivalent assistance in order to ensure occupancy by extremely low-income persons; (ii) conform to HUD regulations interpreting accessibility requirements of section 504 ofthe Rehabilitation Act; and (iii) are actively marketed to people with special needs in accordance with a plan submitted as part of the Application. (If special needs include mobility impairments the units described above must include roll-in showers and roll under sinks and front controls for ranges).
o For any non-elderly property in which the greater of 5 or 10% ofthe units (i) have rents within HUD's Housing Choice Voucher ("HCV") payment standard; (ii) conform to HUD regulations interpreting accessibility requirements of section 504 of the Rehabilitation Act; and (iii) are actively marketed to people with mobility impairments, including HCV holders, in accordance with a plan submitted as part the Application.
o For any non-elderly property in which at least four percent (4%) of the units conform to HUD regulations interpreting accessibility requirements of section 504 of the Rehabilitation Act and are actively marketed to people with mobility impairments in accordance with a plan submitted as part of the Application.
Earthcraft or LEED Development Certification
Applicant agrees to obtain Earthcraft or LEED certification prior to issuance of IRS Form 8609. Architect certifies in the Architect Certification that the development's design will meet the criteria for such certification.
o Yes - Earthcraft 0 Yes - LEED
If Yes to either, attach appropriate documentation at TAB F
LEED Accredited Design Team Member
One or more members of the design team is a LEED accredited professional.
o Yes 0 No If Yes, attach appropriate documentation at TAB F
Universal1Jesign - Units Meeting Universal Design Standards
a. The architect of record certifies that units will be constructed to meet VHDA's Universal Design standards.
o Yes 0 No If Yes, attach appropriate documentation at T AS F
b. Number of Rental Units constructed to meet VHDA's Universal Design standards:
23 Units 100%
VHDA Certified Property Management Agent
Owner agrees to use a VHDA Certified Property Management Agent to manage the property.
o Yes 0 No
o Yes ONo 0N/A The market-rate units' amenities are substantially equivalent to those of the
low-income units. If no, explain differences:
2009
Page 9
Low-Income Housing Tax Credit Application For Reservation
IV. TENANT INFORMATION
A. Set-Aside Election:
UNITS SELECTED BELOW IN BOTH COLUMNS DETERMINE POINTS FOR THE BONUS POINT CATEGORY
Note: In order to qualify for any tax credits, a development must meet one of two minimum threshold occupancy tests. Either (i) at least 20% of the units must be rent-restricted and occupied by persons whose incomes are 50% or less of the area median income adjusted for family size (this is called the 20150 test) or (ii) at least 40% of the units must be rent-restricted and occupied by persons whose incomes are 60% or less of the area median income adjusted for family size (this is called the 40/60 test), all as described in Section 42 of the IRe. Rent-and income-restricted units are known as low-income units. If you have more low-income units than required, you qualify for more credits. If you serve lower incomes than required, you receive more points under the ranking system.
Units Provided Per Household Type:
Income Levels
# of Units % of Units
0 0.00% 40% Area Median
I':> 155.220/0 50% Area Median
IS 34.'78% 60% Area Median
U IJ.OO% Non-LMI Units
23 HlO.!:HJ% Total Rent Levels
# of Units % of Units
0 0.00% 40% Area Median
n I!JO'(J!J!fo 50% Area Median
U 0.00% 60% Area Median
U 0.00% Non-LMI Units
n I!JO.OO% Total B. Special Housing Needs/Leasing Preference:
1. If 100% of the low-income units will be occupied by either or both of the following special needs groups as defined by the United States Fair Housing Act, so indicate:
o Yes Elderly (age 55 or above)
o Yes Physically or mentally disabled persons (must meet the requirements of the federal Americans with Disabilities Act)
2. Specify the number oflow-income units that will serve individuals and families with children by
providing three or more bedrooms: 13 Number of units 57% of total low-income units
3. Ifthe development has existing tenants, VHDA policy requires that the impact of economic and/or physical displacement on those tenants be minimized, in which Owners agree to abide by the Authority's Relocation Guidelines for LIHTC properties.
4. If leasing preference will be given to applicants on public housing waiting list and/or Section 8 waiting list, so indicate:
o Yes
o No
o Locality has no such waiting list; If yes, provide the following information:
Organization which holds such waiting list:
Contact person (Name and Title)
Phone Number (540) 459-6226
Sue Gill - SectIon 8 Adm1ll1strator
Shenandoah County Departement of Social Services
o Required documentation attached (TAB H)
5. If leasing preference will be given to individuals and families with children. (Less than or equal to 20% of the units must have of I or less bedrooms).
o Yes
o No
2009
Page 10
Low-Income Housing Tax Credit Application For Reservation
v. LOCAL NEEDS AND SUPPORT
A. Provide the name and the address of the chief executive officer (City Manager, Town Manager, or County Administrator) of the political jurisdiction in which the development will be located:
Chief Executive Officer's Title .:.M.:.a;:::y~o.:.r..:;an_d_T_o_w_n_M_an_a..:.g:.;.e_r --------~~---;o::-:-::~=_::_:~------
Street Address P.O. Box 61 Phone (540) 436-3449
City Toms Brook State VA Zip ~22""6"';6"'0'--"";'_-------
Name and title oflocal official you have discussed this project with who could answer questions for the local CEO: Andy Conlon
[2] Letter from CEO attached (TAB I) 0 CEO letter to be submitted separately by June 1, 2009
VHDA notification letter to CEO submitted prior to 5:00 PM 3/5/09: (9% competitive credits only) [2] Yes 0 No
If the property overlaps another jurisdiction please fill in the following:
Chief Executive Officer's Name Vincent E. Poling
Chief Executive Officer's Title "'C"'o-u-n-:-ty-A~d~m"'m~l-istr~a"":'t-or----------------------
Street Address 600 North Main Street; SUite 200
City Woodstock State VA
-------------------
Phone (540) 459-6165
Zip 22664
Name and title oflocal official you have discussed this project with who could answer questions for the local CEO: Brandon Davis
[2] Letter from CEO attached (TAB I) 0 CEO letter to be submitted separately by June 1, 2009
VHDA notification letter to CEO submitted prior to 5:00 PM 3/5/09: (9% competitive credits only) [2] Yes 0 No
B. Project Schedule
ACTUAL OR NAME OF
ACTIVITY ANTICIPATED PERSON
DATE RESPONSIBLE
Site 1"'\.~.~10i'Lt.·i""i/r .X/if '~:'.i/j \~f,\t····,·.·. ; i ..•.
Option/Contract April, 2009 Robert G. Goldsmith
Site Acquisition February, 2010 Robert G. Goldsmith
Zoning Approval April,2009 Jen Surber
Site Plan Approval April, 2009 :Z!l2~~,i- ~~r'!!;iit!y!;·j;
Financing y i'"
A. Construction Loan ::
Loan Apl?lication August, 2009 Jen Surber
Conditional Commitment August, 2009 Jen Surber
Finn Commitment February, 2010 Jen Surber
B. Permanent Loan - First Lien i/!·i·)f(,!5·i.i~'i?::/'.i/·i(i>i!!· ;FT' i··l, .... i··Si.'i;i iJ; i.·'
Loan Application December, 2Q09 Jen Surber
Conditional Connnitment January 2010 Jen Surber
Finn Connnitment February, 2010 Jen Surber
C. Permanent Loan-Second Lien i·.;0 •• ·.';)'i;}·xx),·.S· .. 0;?;·.ii Ic'i'F!;:.}; ..... i'·.··/i ;/.
Loan Application December,2609 Jen Surber
Conditional Commitment January, 2010 Jen Surber
Finn Connnitment February, 2010 Jen Surber
D. Other Loans & Grants 'f~;~lfi2·· ;':'+;;'~i{qi~; r~S>ir,2;.&~['·';>i ' .....
Type & Source, List ...... /.' IXh .. ,...·;y/: •• e';
Application December, 2009 Jen Surber
AwardiConnnitment January, 2010 Jen Surber
Formation of Owner February, 2010 Pete Curcio
IRS Approval of Nonprofit Status NA NA
Closing and Transfer of Property to Owner January, 2010 Pete Curcio
Plans and Specifications, Working Drawings February, 2010 James Bundy
Building Permit Issued by Local Government December, 2009 Danny Wilson
Start Construction March, 2010 Danny Wilson
Begin Lease-up December, 2010 Julia Dye
Complete Construction November, 2010 Danny Wilson
Complete Lease-Up February, 2011 Julia Dye
Credit Placed in Service Date November, 2010 Mike Rush
,,",VV7 .I. "0" .1..1. Low-Income Housing Tax Credit Application For Reservation
'I. SITE CONTROL
~ Site control by the Owner identified herein is a mandatory precondition of review of this application. Documentary evidence of it, in the form of either a deed, option, purchase contract, or lease for a term longer than the period of time the property will be subject to occupancy restrictions must be included herewith. (9% Competitive Credits - An option or contract must extend beyond the application deadline by a minimum of four months.)
Warning: Site control by an entity other than the Owner, even if it is a closely related party, is not sufficient. Anticipated future transfers to the Owner are not sufficient. The Owner, as identified in Subpart II-A, must have site control at the time this Application is submitted.
~ If the Owner receives a reservation of credits, the property must be titled in the name of or leased by (pursuant to a long-term lease) the Owner before the allocation of credits is made this year.
Contact us before you submit this application if you have any questions about this requirement.
A. Type of Site Control by Owner:
Applicant controls site by (select one and attach document - Mandatory TAB K)
o Deed - attached
o Long-term Lease - attached (expiration date:
o Option - attached (expiration date:
o Purchase Contract - attached (expiration date:
09/30109
---------------)
If more than one site for the development and more than one form of site control, please so indicate o and attach a separate sheet specifying each site, number of existing buildings on the site, if any, type of control of each site, and applicable expiration date of form of site control. A site control document is required tor each site.
B. Timing of Acquisition by Owner:
Select one:
o Owner already controls site by either deed or long-term lease or
o Owner is to acquire property by deed (or lease tor period no shorter than period property
will be subject to occupancy restrictions) no later than 11/01109 (must be prior to November 6,2009).
If more than one site tor the development and more than one expected date of acquisition by
Owner, please so indicate 0 and attach separate sheet specifying each site, number of existing
buildings on the site, if any, and expected date of acquisition of each site by the Owner.
C. Market Study Data:
Obtain the following information from the Market Study conducted in connection with this tax credit application and enter below:
Project Wide Capture Rate - LIHTC Units Project Wide Capture Rate - Market Units Project Wide Capture Rate - All Units Project Wide Absorption Period (Months)
20.40%
NA
20.40%
7
2009
Page 12
Low-Income Housing Tax Credit Application For Reservation
Site Description
I. Exact area of site in acres
1.087
2. Has locality approved a final site plan or plan of development?
o Yes 0 No
o Required documentation form attached (TAB L)
3. Is site properly zoned for the proposed development?
o Yes 0 No
o Required documentation form attached (TAB M)
4. Will the proposal seek to qualify for points associated with proximity to public transportation?
DYes 0 No
o Required documentation form attached (TAB A)
D. Photographs
Include pnotographs ot the site and any existmg structurets) m TAU U. For rehamntation projects, provide interior pictures which document the necessity of the proposed work.
E. Plans and Specifications
Minimum submission requirements for all properties (new construction, rehabilitation and adaptive reuse)
(
I. A location map with property clearly defined.
2. Sketch plan of the site showing overall dimensions of main building( s), major site elements (e.g., parking lots and location of existing utilities, and water, sewer, electric,
gas in the streets adjacent to the site). Contour lines and elevations are not required.
3. Sketch plans of main building(s) reflecting overall dimensions of:
a. Typical floor plan(s) showing apartment types and placement
b. Ground floor plan(s) showing common areas;
c. Sketch floor plan(s) of typical dwelling unites);
d. Typical wall section(s) showing footing, foundation, wall and floor structure.
Notes must indicate basic materials in structure, floor and exterior finish.
In addition: required documentation for rehabilitation properties
A unit-by-unit work write-up.
o Plans and specifications!unit-by-unit work writeup attached (TAB P) or
o Plans and specifications/unit-by-unit work writeup submitted separately
2009
Page 13
Low-Income Housing Tax Credit Application For Reservation
VII. OPERATING BUDGET
A. Rental Assistance
I. Do or will any low-income units receive rental assistance?
Dyes 0 No
2. If yes, indicate type of rental assistance:
D Section 8 New Construction Substantial Rehabilitation D Section 8 Moderate Rehabilitation
D Section 8 Certificates
D Section 8 Project Based Assistance D RD 515 Rental Assistance
D Section 8 Vouchers
D State Assistance
D Other:
3. Number of units receiving assistance:
Number of years in rental assistance contract:
Expiration date of contract:
D Contract or other agreement attached (TAB Q)
o
o
B. Utilities
I. Monthly Utility Allowance Calculations
Utilities Type of Utility Utilities Enter Allowances by Bedroom Size
(Gas. Electric. Oil. etc.) Paid by: O-bdr l-bdr 2-bdr 3-bdr 4-br
Heating Owner x Tenant 0 25 32 39 0
Air Conditioning Owner x Tenant 0 7 9 II 0
Cooking - Owner r;- Tenant 0 4 5 6 0
Lighting Owner x Tenant 0 14 18 22 0
Hot Water Owner x Tenant 0 12 15 19 0
Water r-- Owner r;- Tenant 0 II 14 18 0
Sewer Owner x Tenant 0 16 21 25 0
Trash DOwner DTenant 0 0 0 0 0
Total utility allowance for costs paid by tenant $0 $89 $114 $140 $0 2. Source of Utility Allowance Calculation (Attach Documentation TAB Q) D HUD
D Utility Company (Estimate)
D Utility Company (Actual Survey)
D LocalPHA
o Other: Department of Social Service
2009
Page 14
Low-Income Housing Tax Credit Application For Reservation
C. Revenue
I. Indicate the estimated monthly income for the Low-Income Units: ••
Total Number of Total Monthly
Unit Type Tax Credit Units Rental Income
Efficiency Units 0 $0
I Bedroom Units 4 $1,620
2 Bedroom Units 6 $2,700
3 Bedroom Units 13 $8,015
4 Bedroom Units 0 $0
Total Number of Tax Credit Units 23
Plus Other Income Source (list): $0
Equals Total Monthly Income: $12,335
Twelve Months x12
Equals Annual Gross Potential Income $148,020
Less Vacancy Allowance ( 7.0% ) $10,361
Equals Annual Effective Gross Income (EGI) - Low Income Units $137,659
•• Beginning at Row 75 enter the appropriate data for both ~ and mark£t rate units in the yellow shaded cells.
2. Indicate the estimated monthly income for the Market Rate Units: ••
Total Number of Total Monthly
Unit Type Market Units Rental Income
Efficiency Units 0 $0
I Bedroom Units 0 $0
2 Bedroom Units 0 $0
3 Bedroom Units 0 $0
4 Bedroom Units 0 $0
Total Number of Market Units 0
Plus Other Income Source (list): $0
Equals Total Monthly Income: $0
Twelve Months xl2
Equals Annual Gross Potential Income $0
Less Vacancy Allowance ( 0.0% ) $0
Equals Annual Effective Gross Income (EGI) - Market Rate Units $0 o Documentation in Support of Operating Budget attached (TAB R)
List number of units by type:
TOTAL UNITS
ASSISTED LVG
EFF-ELD
1 BDRM-ELD
EFF-GAR
1 BDRM-GAR
2BDRM-ELD
o
o
2BDRM-GAR
3BDRM-GAR
4BDRM-GAR
3BD RM-TH
4BDRM-TH
2 BD RM-TH
6
13
o
1 STY-EFF-ELD 1 STY-1 BR-ELD 1 STY-2 BR-ELD Note: Please be sure to enter the number of units in the
o a 0 appropriate unit category. If not, you will find an error on
0 0.00 Total Monlhly
4-BR Markel Renl: $
0 Total 4-BR Rent $
23 Net Rentable SF: Te Unils 20,116.46
MKTUnits 0.00
Tolal NR SF: 20,116.46
Floor Space Fraction 100.0000% 2009
Page 15
Low-Income Housing Tax Credit Application For Reservation
D. Operating Expenses
(
Administrative:
I. Advertising/Marketing
2. Office Salaries
3. Office Supplies
4. Office/Model Apartment (type___)
5. Management Fee 5.81% ofEGI
347.826087 Per Unit
======-=====-
6. Manager Salaries
7. Staff Unit (s) (type___)
8. Legal
9. Auditing
10. Bookkeeping/Accounting Fees II. Telephone & Answering Service
12. Tax Credit Monitoring Fee
13. Miscellaneous Administrative
Total Administrative
Utilities
14. Fuel Oil
15. Electricity
16. Water
17. Gas
18. Sewer
Total Utility
Operating:
19. Janitor/Cleaning Payroll
20. Janitor/Cleaning Supplies
21. Janitor/Cleaning Contract
22. Exterminating
23. Trash Removal
24. Security Payroll/Contract
25. Grounds Payroll
26. Grounds Supplies
27. Grounds Contract
28. Maintenance/Repairs Payroll
29. Repairs/Material
30. Repairs Contract
3 i. Elevator Maintenance/Contract
32. Heating/Cooling Repairs & Maintenance
33. Pool Maintenance/Contract/Staff
34. Snow Removal
35. Decorating/Payroll/Contract
36. Decorating Supplies
37. Miscellaneous
Operating & Maintenance Totals
Taxes & Insurance
38. Real Estate Taxes
39. Payroll Taxes
40. Miscellaneous Taxes/Licenses/Permits
41. Property & Liability Insurance
42. Fidelity Bond
43. Workman's Compensation
44. Health Insurance & Employee Benefits
45. Other Insurance
Total Taxes & Insurance
Total Operating Expense
DI. Total Oper. Ex. Per Unit
_____ _;$;.:3.:;,8;:2;:..9 D2. TotalOper. Ex. As % EGI (from E3)
63.98%
Replacement Reserves (Total # Units X $300 or $250 New Const. Elderly Minimum)
Total Expenses
$12,500
$0
$5,000
$2,500
$500
$500
$22.250
$88.075
$6,900
$94,975
2009
Page 16
Low-Income Housing Tax Credit Application For Reservation
E. Cash Flow (First Year)
1. Annual EGI Low-Income Units from (C1) $137,659
2. Annual EGI Market Units (from C2) + $0
3. Total Effective Gross Income = $137,659
4. Total Expenses (from D) $94,975
5. Net Operating Income = $42,684
6. Total Annual Debt Service (from Page 21 B2) - $34,874
7. Cash Flow Available for Distribution = $7,809 F. Projections for Financial Feasibility - 15 Year Projections of Cash Flow
Stabilized
Year 1 Year 2 Year 3 Year 4 Year 5
Eff. Gross Income 137,659 141,788 146,042 150,423 154,936
Less Oper. Expenses 94,975 98,774 102,725 106,834 111,107
Net Income 42,684 43,014 43,317 43,589 43,829
Less Debt Service 34,874 34,874 34,874 34,874 34,874
Cash Flow 7,809 8,140 8,443 8,715 8,954 Debt Coverage Ratio
1.22
1.23
1.24
1.25
1.26
Year 6 Year 7 YearS Year 9 Year 10
Eff. Gross Income 159,584 164,372 169,303 174,382 179,613
Less Oper. Expenses 115,552 120,174 124,981 129,980 135,179
Net Income 44,032 44,198 44,322 44,402 44,434
Less Debt Service 34,874 34,874 34,874 34,874 34,874
Cash Flow 9,158 9,324 9,448 9,528 9,560 Debt Coverage Ratio
1.26
1.27
1.27
1.27
1.27
Year 11 Year 12 Year 13 Year 14 Year 15
Eff. Gross Income 185,002 190,552 196,268 202,156 208,221
Less Oper. Expenses 140,586 146,210 152,058 158,140 164,466
Net Income 44,415 44,342 44,210 44,016 43,755
Less Debt Service 34,874 34,874 34,874 34,874 34,874
Cash Flow 9,541 9,468 9,336 9,142 8,881 Debt Coverage Ratio 1.27
Estimated Annual Percentage Increase in Revenue Estimated Annual Percentage Increase in Expenses
1.27
1.27 1.26
3.00% (Must be..:5... 3%)
-----
4.00% (Must be.2:.. 4%)
-----
1.25
2009
Page 17
Low-Income Housing Tax Credit Application For Reservation
VIII. PROJECT BUDGET
\.. CostlBasislMaximum Allowable Credit
Complete cost column and basis column(s) as appropriate through A12. Check if the following documentation is attached at TAB S:
D Executed Construction Contract
D Executed Trade Payment Breakdown D Appraisal
o Other Cost Documentation D Environmental Studies
NOTE: Attorney must opine, among other things, as to correctness of the inclusion of each cost item in eligible basis, type of credit and numerical calculations of this Part VIII.
(
Amount of Cost up to 100% Includable in
Eligible Basis--Use Applicable Column(s):
"30% Present Value Credit" (D)
Item (A) Cost (B) Acquisition (C) Rehabl "70 % Present
New Construction Value Credit"
1. Contractor Cost
A. Off-Site Improvements 0 0 0 0
B. Site Work 70,000 0 0 70,000
C. Other: 0 0 0 0
D. Unit Structures (New) 0 0 0 0
E. Unit Structures (Rehab) 2,520,000 0 0 2,520,000
F. Accessory Building (s) 0 0 0 0
G. Asbestos Removal 0 0 0 0
H. Demolition 365,000 0 0 365,000
I. Commercial Space Costs 0 0 0 0
1. Structured Parking Garage 0 0 0 0
K. Subtotal A: (Sum lA..U) 2,955,000 0 0 2,955,000
L. General Requirements 120,000 0 0 120,000
M. Builder's Overhead 95,000 0 0 95,000
( 3.2% Contract)
N. ~sProfit 190,000 0 0 190,000
( 6.4% Contract)
O. Bonding Fee 115,000 0 0 115,000
P. Other: 0 0 0 0
Q. Contractor Cost
Subtotal (Sum IK .. IP) $3,475,000 $0 $0 $3,475,000
2. Owner Costs
A. Building Permit 0 0 0 0
B. Arch.lEngin. Design Fee 25,000 0 0 25,000
( 1,087/Unit)
C. ~upervision Fee 30,000 0 0 30,000
( ~/Unit)
D. Tap Fees 0 0 0 0
E. Soil Borings 0 0 0 0 2009
Page 18
Low-Income Housing Tax Credit Application For Reservation
Amount of Cost up to 100% Includable in
Eligible Basis--Use Applicable Column(s):
"30% Present Value Credit" (D)
Item (A) Cost (B) Acquisition (C) Rehab! "70 % Present
New Construction Value Credit"
2. Owner Costs Continued
F. Construction Loan 10,000 0 0 10,000
Origination Fee
G. Construction Interest 85,000 0 0 85,000
( ##### for 0 months)
H. Taxesi5lliing Co~tion 7,500 0 0 7,500
I. Insurance During Construction 16,500 0 0 16,500
J. Cost Certification Fee 5,000 0 0 5,000
K. Title and Recording 35,000 0 0 15,000
L. Legal Fees for Closing 50,000 0 0 10,000
M. Permanent Loan Fee 0 0 0 0
( 0.0%)
N. Oth~anent Loan Fees 0 0 0 0
O. Credit Enhancement 0 0 0 0
P. Mortgage Banker 0 0 0 0
Q. Environmental Study 5,000 0 0 5,000
R. Structural/Mechanical Study 5,000 0 0 5,000
S. Appraisal Fee 6,500 0 0 6,500
T. Market Study 3,500 0 0 3,500
U. Operating Reserve 76,000 0 0 0
V. Tax Credit Fee 27,871 0 0 0
W.OTHER $129,373 $0 $0 $110,000
(SEE PAGE 19A)
X. Owner Cost
Subtotal (Sum 2A .. 2W) $517,244 $0 $0 $334,000
Subtotal 1 + 2 $3,992,244 $0 $0 $3,809,000
(Owner + Contractor Costs)
3. Developer's Fees 465,000 0 0 434,000
4. Owner's Acquisition Costs
Land 50,000
Existing Improvements 150,000 0
Subtotal 4: $200,000 $0
5. Total Development Costs
Subtotal 1+2+3+4: $4,657,244 $0 $0 $4,243,000 If this application seeks rehab credits only, in which there is no acquisition and no change in ownership, enter the greater of
appraised value or tax assessment value here: $0 Land
(Attach documentation at Tab K) $0 Building
2009
Page 19
Low-Income Housing Tax Credit Application For Reservation
~ Amount of Cost up to 100% Includable in
Eligible Basis--Use Applicable Column(s):
"30% Present Value Credit" (D)
Item (A) Cost (8) Acquisition (C) Rehab/ "70 % Present
New Construction Value Credit"
W. OTHER OWNER COSTS
Contingency Reserve 100,000 0 0 100,000
(Rehab or Adaptive Reuse only)
LIST ADDITIONAL ITEMS
Leaseu,E Reserve 10,000 0 0 10,000
Allocation Fee 19,373 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
Subtotal (Other Owner Costs) $129,373 $0 $0 $110,000
I 2009
Page 19A
Low-Income Housing Tax Credit Application For Reservation
Amount or Cost up to I UU% Includable III
Eligible Basis--Use Applicable Column(s):
'jU % Present value Credit
(C) Rehab! (D)
New "70 % Present
Item (A) Cost (B) Acquisition Construction Value Credit"
5. Total Development Costs
Subtotal 1+2+3+4 4,657,244 0 0 4,243,000 6. Reductions in Eligible Basis
Subtract the following:
A. Amount of federal grant(s) used to finance 0
qualifying development costs
B. Amount of nonqualified, nonrecourse financing 0
C. Costs of nonqualifying units of higher quality 0
(or excess portion thereof)
D. Historic Tax Credit (residential portion) 0
7. Total Eligible Basis (5 minus 6 above) 0 0 0
0 0
0 0
0 0
0 4,243,000
0 0
0 0
0 4,243,000
100.0000% 100.0000%
0 4,243,000
3.28% 9.00%
$0 $381,870 I
$381,870 t==J 8. Adjustment(s) to Eligible Basis (For non-acquisition costs in eligible basis) (i) For Earthcraft or LEED Certification AND 60 Bonus Points
(ii) For QCT or DDA (Eligible Basis x 30%)
Total Adjusted Eligible basis
9. Applicable Fraction
100.0000%
10. Total Qualified Basis (Same as Part IX-C) (Eligible Basis x Applicable Fraction)
o
11. Applicable Percentage
3.28%
(For 2009 9% competitive credits. use the May.2009 applicable percentages for acq.) (For 9% non-competitive & tax exempt bonds. use the most recently published rates)
12.
Maximum Allowable Credit under IRC §42 (Qualified Basis x Applicable Percentage) (Same as Part IX-C and equal to or more than credit amount requested)
$0
Combined 30% & 70% P. V. Credit
2009
Page 20
Low-Income Housing Tax Credit Application For Reservation
B. Sources of Funds
1. Construction Financing: List individually the sources of construction financing, including any such loans financed through grant sources:
Date of Date of Amount of
Source of Funds Application Commitment Funds NameofConbctP~on
1. $0
2. $0
3. $0 o Commitments or letter(s) of intent attached (TAB T)
2. Permanent Financing: List individually the sources of all permanent financing in order of lien position:
Interest Amortization Tenn
Date of Date of Amount of Annual Debt Rate of Period of
Source of Funds Application Commitment Funds Service Cost Loan IN YEARS Loan (years)
1. $0 $0 0.00% 30 0
2. SPARC c $400,000 $28,624 5.95% 30 30
3. FHLBA $187,981 $0 0.00% 1000 0
4. HOME $500,000 $6,250 1.25% 1000 30
5. Weatherization $230,000 $0 0.00% 1000 0
6. HOME $100,000 $0 0.00% 1000 0
Totals: $1,417,981 $34,874 o Commitments or letter(s) of intent attached (TAB T)
3. Grants: List all grants provided for the development:
Date of Date of Amount of
Source of Funds Application Commitment Funds Name of Contact Person
1. $0
2. $0
3. $0
4. $0
5. $0
6. TeAP N/A N/A
Total Permanent Grants: $0 o Commitments or letter(s) of intent attached (TAB T)
2009
Page 21
Low-Income Housing Tax Credit Application For Reservation
4. Portion of Syndication Proceeds Attributable to Historic Tax Credit
(not including syndication proceeds except for historic tax credits)
$1,675,138
8. Total Development Cost (From VIII-AS)
$4,657,244
9. Less Total Sources of Funds (From B7 above)
$1,675,138
10. Equals equity gap to be funded with low-income tax credit proceeds (must equal IX-D3)
$2,982,106
C. Syndication Information (If Applicable)
1. Actual or Anticipated Name of Syndicator
2. Contact Person Chris Sterling
--------~------------------------------
3. Street Address 1840 West Broad Street; Suite 200
City Richmond
Virginia Community Development Corporation
Phone 804343 1200
State Virginia
Zip 23220
(
4. a. Total to be paid by anticipated users of credit (e.g., limited partners)
b. Equity Dollars Per Credit (e.g., $0.85 per dollar of credit)
c. Percent of ownership entity (e.g., 99% or 99.9%)
d. Net credit amount anticipated by user of credits
e. Syndication costs not included in VIII-AS (e.g., advisory fees)
$2,982,106
$0.78
99.99%
$381,832
$0
5. Net amount which will be used to pay for Total Development Cost (4a-4e) as listed in Part VIII-AS (same amount as Part IX-D3)
$2,982,106
6. Amount of annual credit required for above amounts (same amount as Part IX-D6)
7. Net Equity Factor [CS I (C6 X 10)]
(same amount as Part IX-D4) Must be equal to or greater than 85%
$381,870
78.09%
8. Syndication:
9. Investors:
o Public or
o Individual or
o Private
o Corporate
o Syndication commitment or letter of intent attached (TABU)
2009
Page 22
Low-Income Housing Tax Credit Application For Reservation
D. Recap of Federal, State, and Local Fundsl Any Credit Enhancements
I. Are any portions of the sources of funds described above for the development financed directly or indirectly
with Federal, State, or Local Government Funds? 0 Yes 0 No
If yes, then check the type and list the amount of money involved.
Below-Market Loans
o Tax Exempt Bonds $0
o RD515 $0
o Section 221(d)(3) $0
o Section 312 $0
o Section 236 $0
o VHDA SP ARC/REACH $400,000
o HOME Funds $500,000
o Other: HOME - Consortium Matd $100,000
'---__;;;..;,.;;.;..:.;;.~
o Other: FHLB&WX $417,981
Grants DCDBG DUDAG
$0
$0
Market-Rate Loans
o Taxable Bonds
o Section 220
o Section 221(d)(3)
o Section 221(d)(4)
o Section 236
o Section 223(f)
o Other:
$0
$0
$0
$0
$0
$0
$0
Grants
o State
o Local
o Other: TCAP
$0
$0
This means grants to the partnership. If you received a loan financed by a locality which received one of the listed grants, please list it in the appropriate loan column as "other" and describe the applicable grant program which funded it.
2. Subsidized funding: list all sources of funding for points.
Documentation Attached (TAB T)
Source of Funds Commitment date Funds
1. $0
2. $0
3. $0
4. $0
5. $0 3. Does any of your financing have any credit enhancement?
If yes, list which financing and describe the credit enhancement:
DYes
o No
4. Other Subsidies 0 Documentation Attached (TAB Q)
o Section 8 Rent Supplement or Rental Assistance Payment
o Tax Abatement
o Other ~ __
5. Is HUD approval for transfer of physical asset required?
DYes 0 No
E. For Transactions Using Tax-Exempt Bonds Seeking 4% Credits:
For purposes of the 50% Test, and based only on the data entered to this
application, the portion of the basis of buildings and land financed with
tax-exempt funds is:
2009
Page 23
Low-Income Housing Tax Credit Application For Reservation
X. ADDITIONAL INFORMATION
A. Extended Use Restriction
NOTE: Each recipient of an allocation of credits will be required to record an extended use agreement as required by the IRC governing the use of the development for low-income housing for at least 30 years. However, the IRC provides that, in certain circumstances, such extended use period may be terminated early.
o This development will be subject to the standard extended use agreement which permits early termination (after the mandatory 15-year compliance period) ofthe extended use period.
o This development will be subject to an extended use agreement in which the owner's right to any early termination of the extended use provision is waived for 25 additional years after the 15- year compliance period for a total of 40 years. Do not select if IX.B is checked below.
o This development will be subject to an extended use agreement in which the owner's right to any early termination ofthe extended use provision is waived for 35 additional years after the 15- year compliance period for a total of 50 years. Do not select if IX.B is checked below.
B. Nonprofit/Local Housing Authority Purchase Option/Right of First Refusal
1. 0 After the mandatory I5-year compliance period, a qualified nonprofit as identified in the attached nonprofit questionnaire, or local housing authority will have the option to purchase
or the right of first refusal to acquire the development for a price not to exceed the outstanding debt and exit taxes. Such debt must be limited to the original mortgage(s) unless any refinancing is approved by the nonprofit. Do not select if extended compliance is selected in IX.A above.
o Option or Right of First Refusal in Recordable Form Attached (TAB V)
Enter name of qualified nonprofit: People Incorporated Housing Group
--~----~------~~--~------------------------
2. 0 A qualified nonprofit or local housing authority submits a homeownership plan committing to sell the units in the development after the mandatory I5-year compliance period to tenants whose incomes shall not exceed the applicable income limit at the time of their initial occupancy.
Do not select if extended compliance is selected in IX.A above.
o Homeownership Plan Attached (TAB J)
C. Building-by-Building Information (Complete page 25 as appropriate)
Low-Income Housing Tax Credit Application For Reservation
1). Determination of Reservation Amount Needed
The following calculation of the amount of credits needed is substantially the same as the calculation which will be made by VHDA to determine, as required by the IRC, the amount of credits which may be allocated for the development. However, VHDA at all times retains the right to substitute such information and assumptions as are determined by VHDA to be reasonable for the information and assumptions provided herein as to costs (including development fees, profits, etc.), sources for funding, expected equity, etc. Accordingly, if the development is selected by VHDA for a reservation of credits, the amount of such reservation may differ significantly from the amount you compute below.
1. Total Development Costs (from VIII-AS, Column A page 20) $4,657,244
2. Less Total Sources of Funds (from VIII-B7 page 22) $1,675,138
3. Equals Equity Gap $2,982,106
4. Divided by Net Equity Factor (VIII-C7 page 22) 78.09%
(Percent of IO-year credit expected to be raised as equity investment)
5. Equals Ten-Year Credit Amount Needed to Fund Gap $3,818,699
Divided by ten years 10
6. Equals Annual Tax Credit Required to Fund the Equity Gap $381,870
7. The Maximum Allowable Credit Amount $381,870
(from VIII-Al2-combined figure)
(This amount must be equal to or more than 6 above)
8. Reservation Amount (Lesser of6 or 7 above) Credit per Unit Credit per Bedroom
16,603
6,943
Combined 30% & 70% PV Credit
$381,870
$381,870
Comprised of
$0 I
and
30%PVCredit
70% PV Credit
(Based on same relative percentages as VIII-AI 2)
E. Attorney's Opinion
o Attached III Mandatory TAB W)
Goal Seek Function
If you incur the error message that your reservation amount is not equal o the equity gap amount you may use the goal seek function within the Excel spreadsheet to eliminate the error message. To use the "Goal Seek" function first place the curser box on cell V28. Using the mouse arrow, point and click on 'Tools" on the top line and then click on the "Goal Seek" option. A box will appear with the V28 cell shown in the top space, place the cursor in the middle "ox and type in the new amount that you want the equity gap to be which should "e the reservation amount below, then place the cursor in the bottom space and at he bottom of the page click on page 22. Then place the cursor on cell N15 Deferred Developer Fee) and click on "OK". A message should then appear that
~ solution has been found and if the amount is correct click "OK". If the amounts are now equal the error message will disappear.
2009
Page 26
Low-Income Housing Tax Credit Application For Reservation
F. Statement of Owner
fhe undersigned hereby acknowledges the following:
1. that, to the best of its knowledge and belief, all factual information provided herein or in connection herewith is true and correct, and all estimates are reasonable.
2. that it will at all times indemnify and hold harmless VHDA and its assigns against all losses, costs, damages, VHDA's expenses, and liabilities of any nature directly or indirectly resulting from, arising out of, or relating to VHDA's acceptance, consideration, approval, or disapproval of this reservation request and the issuance or nonissuance of an allocation of credits, grants and/or loan funds in connection herewith.
3. that points will be assigned only for representations made herein for which satisfactory documentation is submitted herewith and that no revised representations may be made in connection with this application once the deadline for applications has passed.
4. that this application form, provided by VHDA to applicants for tax credits, including all sections herein relative to basis, credit calculations, and determination of the amount of the credit necessary to make the development financially feasible, is provided only for the convenience ofVHDA in reviewing reservation requests; that completion hereof in no way guarantees eligibility for the credits or ensures that the amount of credits applied for has been computed in accordance with IRe requirements; and that any notations herein describing IRe requirements are offered only as general guides and not as legal authority.
5.
that the undersigned is responsible for ensuring that the proposed development will be comprised of qualified low-income buildings and that it will in all respects satisfy all applicable requirements offederal tax law and any other requirements imposed upon it by VHDA prior to allocation, should one be issued.
(
6. that, for the purposes of reviewing this application, VHDA is entitled to rely upon representations of the undersigned as to the inclusion of costs in eligible basis and as to all of the figures and calculations relative to the determination of qualified basis for the development as a whole and/or each building therein individually as well as the amounts and types of credit applicable thereof, but that the issuance of a reservation based on such representation in no way warrants their correctness or compliance with IRe requirements.
7. that VHDA may request or require changes in the information submitted herewith, may substitute its own figures which it deems reasonable for any or all figures provided herein by the undersigned and may reserve credits, if any, in an amount significantly different from the amount requested.
8. that reservations of credits are not transferable without prior written approval by VHDA at its sole discretion.
2009
Page 27
Low-Income Housing Tax Credit Application For Reservation
9. that the requirements for applying for the credits and the terms of any reservation or allocation thereof are subject to change at any time by federal or state law, federal, state or VHDA regulations, or other binding authority.
10. that reservations may be made subject to certain conditions to be satisfied prior to allocation and shall in all cases be contingent upon the receipt of a nonrefundable application fee of $500 and a nonrefundable reservation fee equal to 7% of the annual credit amount reserved.
11. that a true, exact, and complete copy of this application, including all the supporting documentation enclosed herewith, has been provided to the tax attorney who has provided the required attorney's opinion accompanying this submission, and
12. that the applicant has provided a complete list of all residential real estate developments in which the general partner(s) has (have) or had a controlling ownership interest and, in the case of those projects allocated credits under Section 42 of the IRC, complete information on the status of compliance with Section 42 and an explanation of any noncompliance. The applicant hereby authorizes the Housing Credit Agencies of states in which these projects are located to share compliance information with the Authority.
13. that the information in this application may be disseminated to others for purposes of verification or other purposes consistent with the Virginia Freedom of Information Act. However, all information will be maintained, used or disseminated in accordance with the Government Data Collection and Dissemination Practices Act. The applicant may refuse to supply the information requested, however, such refusal will result in VHDA's inability to process the application. The original or copy of this application may be retained by VHDA, even if tax credits are not allocated to the applicant.
In Witness Whereof, the undersigned, being authorized, has caused this document to be executed in its
name on this 14th. day of May ,2009.
Toms Brook School Apartments, L.L.C.
Its:
2009
Page 28
2009 lIHTC SELF SCORE SHEET:
Self Scoring Process
~his worksheet is intended to provide you with an estimate of your application score based on the selection criteria described in the QAP. Most of the data used in the scoring process is automatically entered below as you fill in the application. Other items ~enoted below in the green shaded cells, are items that are typically evaluated by VHDA's staff during the application review and easibility analysis. For purposes of self scoring, it will be necessary for you to make certain decisions and assumptions about you ~pplication and enter the appropriate responses in the green shaded cells of this score sheet. All but two require yes/no responses in which case enter Y or N as appropriate. Item 2b pertaining to the Local CEO Lelterwill require one of the following responses: 'I r- the letter indicates unconditional support; N - the letter indicates opposition to the project; NC - no comment from the locality, 0 ~ny other response which is neither unconditional support nor opposition. Item 5e1 requires a numeric value to be entered. Please remember that the score is ,only an estimate based on the selection criteria using the reservation application data and the responses you've entered on this score sheet. VHDA reserves the right to change application data and/or score sheet responses ftmere appropriate, which may change the final score.
MANDATORY ITEMS:
a. Signed, completed application
b. Duplicate copy of application
c. Partnership agreement
d. SCC Certification
e. Previous participation form
f. Site control document
g. Architect's Certification
h. Attorney's opinion
i. Nonprofit questionnaire (if NP)
YorN
YorN
YorN
YorN
YorN
YorN
YorN
YorN
Y, N, NlA
Y o or 40
Y o or 40
- o or -50
(Y,NC,N) o or 25 or 50
Y o or 30
N o or 5
Y o or 10
0.00% Up to 40
N o or 20
o or 10
N o or25
N o or 15 1. READINESS:
a. Plan of development
b. Zoning approval
Total:
2. HOUSING NEEDS CHARACTERISTICS:
a. VHDA notification letter to CEO
b. Local CEO letter
c. Location in a revitalization area
d. Location in a Qualified Census Tract
e. Sec 8 or PHA waiting list preference
f. Subsidized funding commitments
g. Existing RD, HUD Section 8 or 236 program
h. Tax abatement or new project based rental subsidy (HUD or RD)
i. Census tract with <10% poverty rate, no tax credit units
j. Development listed on the Rural Development Rehab Priority List Total
3. DEVELOPMENT CHARACTERISTICS:
a. Unit size (See calculations below)
b. Amenities (See calculations below)
c. Project subsidies/HUD 504 accessibility for 5 or 10% of units
or d. HCV payment standard/HUD 504 accessibility for 5 or 10% of units or e. HUD 504 accessibility for 4% of units
f. Proximity to public transportation
g. Development will be Earthcraft or LEED certified
h. VHDA Certified Property Management Agent
i. Units constructed to meet VHDA's Universal Design standards .
j. Developments with less than 100 units Total
Up to 100
Up to 60
N o or 50
N o or 30
Y o or 15
N 0, 10 or 20
Y o or 30
Y o or 25
100% Up to 15
Up to 20
Y o or 15
56.52% Up to 15
o or 50
o or 10
o or -50
o or -15
o or-x
o or -10
o or -25
o or 10 4. TENANT POPULATION CHARACTERISTICS:
a. <= 20% of units having 1 or less bedrooms
b. Percent of units with 3 or more bedrooms Total
5. SPONSOR CHARACTERISTICS:
a. Developer experience - 3 developments with 3 x units or 6 developments with 1 x units
or b. Developer experience - 1 development with 1 x units
c. Developer experience - uncorrected major violation
d. Developer experience - noncompliance
e1. Developer experience - did not build as represented e2. Developer experience - termination of credits by VHDA
f. Management company rated unsatisfactory
g. LEED accredited design team member Total
6. EFFICIENT USE OF RESOURCES:
a. Credit per unit
b. Cost per unit 2009
If #N/A or #REF! appears in the score column of these point categories check spelling of Clerk's Office on pg 1. It must match exactly with the Jurisdiction names listed in the Application Manual.
Up to 180 Up to 75
Total
Score o
o
o
o
o
o
o
o
o
0.00
40.00 40.00 80.00
0.00
50.00 30.00 0.00
10.00 0.00
0.00
10.00 0.00
0.00
100.00
100.00 60.00 0.00
0.00
15.00 0.00
30.00 25.00 15.00 20.00
265.00
15.00 15.00 30.00
0.00
10.00 0.00
0.00
0.00
0.00
0.00
10.00 20.00
-0.27 0.00
-0.27
7. BONUS POINTS:
a. Units with rents at or below 40% of AMI
b. Units with rent and income at or below 50% of AMI or c. Units with rents at or below 50% rented to tenants at or below 60% of AMI
ar d. Units in Low Income Jurisdictions with rents <= 50% rented to tenants with <= 60% of AMI e. Extended compliance
or f. Nonprofit or LHA purchase option
or g. Nonprofit or LHA Home Ownership option Total
$57,900
$50,600
0% Up to 10 0.00
65% Up to 50 32.61
100% Up to 25 0.00
100% Up to 50 0.00
o Years 40 or 50 0.00
Y o or60 60.00
N o or 5 0.00
92.61
TOTAL SCORE: 587.34 500 Point Threshold - 9% Credits
475 Point Threshold - Tax Exempt Bond Credits
Unit Size Calculations:
High Sq.Ft. ! BDRM Low Sq.Ft.! BDRM Project Sq.Ft. ! BDRM Percentage of Units Points per Bedroom
E-ASLVG E-EFF E-1 BDRM E-2 BDRM
0 0 0 0
0 0 0 a
0 a a a
0.00% 0.00% 0.00% 0.00%
0.00 0.00 0.00 0.00 High Sq.Ft.! BDRM Low Sq. Ft.! BDRM Project Sq.Ft. ! BDRM Percentage of Units Points per Bedroom
F-EFF-G F-1 BDRM-G F-2 BDRM-G F-3BDRM-G
a 783 1,061 1,187
a 626 849 950
a 834 1,082 1,285
0.00% 17.39% 26.09% 56.52%
0.00 17.39 26.09 56.52 High Sq.Ft.! BDRM Low Sq.Ft. ! BDRM Project Sq.Ft.! BDRM Percentage of Units Points per Bedroom
F-4BDRM-G F-2 BDRM-TH F-3 BDRM-TH F-4 BDRM·TH
0 a a a
a a 0 a
a a 0 a
0.00% 0.00% 0.00% 0.00%
0.00 0.00 0.00 0.00 High Sq.Ft.! BDRM Low Sq.Ft.! BDRM Project Sq.Ft.! BDRM Percentage of Units Points per Bedroom
1 ST ELD-EFF 1 ST ELD-1 BDRM 1 ST ELD-2 BDRM
a a a
a 0 a
0 a a
0.00% 0.00% 0.00%
0.00 0.00 0.00 If you do not receive a numeric point value in the unit size calculations, please
check the values entered on page 8, C1. These must be whole number numeric values only, Also check page 7, item 3,
the number of units must be either new, adapt or rehab only. Combinations do
not calculate correctly.
I Total Untt Size pomts:
100.001
Amenities:
All units have:
a. 1.5 or 2 Bathrooms
b. Community Room
c. Brick Walls
d. Kitchen/Laundry Appl-Energy Star
e. Windows-Energy Star
f. HeatiAC-SEER-AFUE
g. Sub-metered water expense
h. Low flow faucets & showerheads
i. High speed cable, OSL, wireless internet
j. Water heaters meet EPA Energy Star requirements
90.00%
15.00 0.00 18.00 5.00 5.00
10.00 5.00 3.00 1.00 0.00
62.00
100.00%
Total
All elderly units have:
a. Front-control ranges
b. Emergency call system
c. Independentisuppl. heat source
d. Two eye viewers
Total
0.00 0.00 0.00 0.00 0.00
All rehab or adaptive reuse units:
b. Historic structure
0.00
Total amenities:
2009
$/SF= Q!!ID
CreditsiSF =
(]!!!!JConst $tunlt =
If an ERROR message appears here check spelling of Clerk's Office on pg 1. It must match exactJy with the Jurisdiction names
• This Certification must be included with the Application (by Application Deadline, 5/15/09).
• The Owner/Developer completes this Certification.
• Any change in this form may result in a reduction of points under the scoring system. If you have any questions, please call Jim Chandler at VHDA (804) 343-5786.
(
2. Definition of Qualified Census Tract
Pursuant to §42(d) (5) (C) (ii) of the IRC, a qualified census tract is, "(I) Any census tract which is designated by the Secretary of Housing and Urban Development and, for the most recent year for which census data are available on household income in such tract, either in which 50%' or more of the households have an income which is less than 60% of the area medion gross income (AMGI) for such year or which has a poverty rate of at least 25%. If the Secretary of Housing and Urban Development determines that sufficient data for any period are not available to apply this clause on the basis of census tracts, such Secretary shall apply this clause for such period on the basis of enumeration districts. (II) The portion of a metropolitan statistical area (MSA) which may be designated shall not exceed an area having 20% of the population of such MSA. (III) Each MSA shall be treated as a separate area and all non-metropolitan areas in a State shall be treated as one area."
3. Census Tract #(s):
I 51171040300
~ To determine the development's census tract, go to http://mop.sbo.gov/hubzone/init.osp and put in the development address or county. The census tract number will be revealed . after pressing the "search" button. On a rare occasion, when a development spans more than one census tract, this website may show incomplete information. IF the subject development is across census tracts, please list each census tract by number and provide supporting documentation.
~ Attach a map showing census tract boundaries and the development's location!
4. Legal Description
I:8J Attach a copy of the development's legal description; the legal description should correspond to the site control document in the Application.
SBA HUBZone Locator
http://map.sba.gov/hubzone/hzqry.asp
U.S. Map
Address- Town-County Search
Text-Only Version
DETERMINATION OF WHETHER AN ADDRESS IS IN A HUBZONE
3232 South Main Street, Toms Brook, 22660 is located in Shenandoah, VA which IS NOT HUBZone qualified.
The map below shows the relationship of this address (marked with a star) to qualified HUB Zone areas. Below the map,
you may find information on the address was found not to be in a HUBZone Area.
HUBZone Status
(:f~ Zoom In
Zoom Out
I Recenter
User can define zoom in/out or move display area by clicking on the map with the mouse after selecting a tool above.
Is the address located in a Metropolitan Area? County Income
State Income
Income Ratio
NO
$39,173.00 $32,554.32 1203%
Is the address located in a qualified non-metropolitan county in which
the median household income is less than the 80% of the NO
non-metropolitan state median household income?
County Unemployment 3.2%
State Unemployment
3.0%
1 of 2
5/14/0910:05 PM
SBA HUBZone Locator
http://map.sba.gov/hubzone/hzqry.asp
u.s. Unemployment Unemployment Ratio
4.6% 106.7%
Is the address located in a qualified non-metropolitan county in which the unemployment rate is not less than the 140% of the statewide average unemployment rate for the state in which the county is located?
Is the address located in a BRAC Commission-closed former military base?
Is the address located in a Difficult Development Area? Is the address located in an Indian Country area?
NO
NO
NO NO
Address (include either City & State or ZIP Code- omit address to zoom map to a city or ZIP code area)
Parcel One: All that certain piece, parcel or tract of real estate conveyed to the Trustees of Public Free Schools in Johnson and Stonewall Townships by deed from Elijah Rosenbarger and Mary Magdalena Rosenbarger, his wife, dated February 14, 1978, of record in the office of the Clerk of the Circuit Court for Shenandoah County, Virginia in Deed Book 16, page 297, and being described therein as follows:
u ••• a certain piece, parcel or lot of land, it being part of a larger tract conveyed to said Rosenbarger by David Crabill, Deed., and adjoins the lands of Abraham Crabill and others, near Toms Brook Depot, and bounded as follows, to-wit: BEGINNING at a planted rock in Isaac Buchong's line and comer to lot of Abraham Crabill; thence with said Bushong's line S 58 W 6 poles and 21 links to a stake; thence N 31-114 W 22 poles and 20 links to the middle of the Valley Pike; thence down said Pike N 52 and ~ E 6 poles and 21 links to a station opposite a planted rock in A. Crabill's line; thence with his line S 33-114 E 24 poles to the BEGINNING, containing 1 acre, more or less.
Parcel Two: All that certain piece of tract or real estate conveyed unto John E. Fleming, William C. O'Flaherty and Charles A. Dillinger,. Trustees of Johnson School District, Shenandoah County, Virginia, and Josiah Wisman, Perry W. Peer, and Joseph R. Conner, Trustees of the Stonewall School District, Shenandoah County,' Virginia, from Bernie M. Borden and Maude E. Borden, his wife, by deed dated the 26th day of July, 1918, of record in the office of the Clerk of the Circuit Court for Shenandoah County, Virginia in Deed Book 91, page 485, being more particularly described therein as follows:
" ... Iying and being in the village of Toms Brook, in the Johnson Magisterial District, said County, adjoining the lands of George W. Crabill and the Toms Brook school property and is bounded as follows:
"Beginning at the west comer of the said Toms Brook school lot, at the limits of the Valley Turnpike; thence with a line of said school lot S 51-112 E 21 poles and 16 links to the south corner of said school lot in said George W. Crabill's line; thence with his line S 58 W 19 feetto a point in said Crabill's line; thence N 51-112 W 21 poles and 16 links to a station at the limits of said Valley Turnpike; thence with the same 19 feet to the Beginning, containing twenty-five (25) square poles, more or less."
Grantor warrants that the above two parcels make up the entire 1.087 acres wherein the s?hool is located, as shown. on a survey dated April 22, 2009 by Newman Surveying, Licensed Land Surveyor.. In the event the above parcels do not include the entire 1.087 acres as shown on said tract, Grantor will assist Optionee in determining any additional land comprising the 1.087 acres and will so include said additional land in this option so that the Optionee receives rights to the full 1.087 acres as shown on the aforementioned survey.
TABA.2
(Revitalization Area Certification)
Ma~ 07 2002 10:07AM HP LASER JET 3330
p'-~---~
CORPORATION OF TOMS BROOK POST OFFICE BOX 90
TOMS BROOK, VIRGINIA 22660
REVITALIZATION AREA CERTIFICATION
May 6,2009
Jim Chandler
Virginia Housing Development Authority 601 South Belvidere Street
Richmond, Virginia 23220
VHDA Tracking Number:
Development Name:
DeveJopment Jurisdiction: 'Name of Owner/Applicant:
2009-Z-126
Toms Brook School Apartments
Town of Toms Srook
Toms Brook School Apartments, LL.C./ People Incorporated Housing Group
Dear Mr. Chancfler;
I certify that the obove-referenced development is located in a Revitalization Area in my jurisdiction. A "revitalization area" is any area that is!i) either (1 J blighted. deteriorated. deteriorating or, if not rehabilitated, likely to deteriorate by reason that the buildings. improvements or other facilities in such area ore subject to one or more of the following conditions- dilapidation, obsolescence, overcrowding. inadequate ventilation. light or scnltofion, excessive tand coverage, deleterious land use, or faulty otherwise inadequate design, quality or condition, or (2) the indt;.lstriot commercial Of other economic development of such area wiD benefit fhe city or county but such area lacks the hOUSIng needed to induce manufacturing, industrial, commercial, governmental, educational. entertainment community development. heolthcare or nonprofit enterprises or undertakings to locate or remoin in such oreo: and (i1) private enterprise and investment are not reasonably expected, without assistance, to produce the construction or rehabilitation of decent safe and sanitary hO!Jsing and supporting facilities thot will meet the needs of low and moderate income persons and families in such area and will induce other persons and families to live within such area and thereby create a desirable economic mix of residents In such area.
I understand that this Certification will be used by the Virginia Housing Development Authority to determine whether the development qualifies for points available under VHDA·s Qualified Allocation Plan.
o~ 4-~
Phillip Fauber Mayor
Location Map
3232 S Main St, Toms Brook, VA 22660 - Google Maps Page 1 of 1
This Operating Agreement made on the l:l.;-rl of /Ylltt , 2009 by
and between PEOPLE INCORPORATED HOUSING GROUP (hereinafter "Managing Member") and PEOPLE INCORPORATED OF VIRGINIA (hereinafter "Special Member");
Article I
The Company
1.1 Name. The name of the company is Toms Brook School Apartments,
L. L. C. (hereinafter "The Company").
1.2 Purpose. The exclusive purpose of The Company is to acquire,
rehabilitate and operate an affordable housing project in the Town of Toms Brook, Virginia, known as Toms Brook School (hereinafter "The Project") and to engage in any lawful business necessary to accomplish that purpose.
1.3 Term. The term of the company shall continue perpetually in accordance
with the Act and this agreement.
Article II
Definitions
Capitalized terms found elsewhere in this Agreement shall have the meanings given them in such text. Otherwise as used in this Agreement, the following terms shall have the meanings set forth below:
"Acf' means the Virginia Limited Liability Company Act, Sections 13.1-1000 et seq. of the 1950 Code of Virginia, as amended.
"Agreement means this operating agreement as initially executed or as amended from time to time, as context may require.
"Capital Contribution" means with, respect to Managing Member, the cash and the initial fair market value of any other property that the Managing Member (or its predecessor in interest) has contributed to the Company pursuant to the terms of this agreement.
Prepared by CURCIO & STOUT Bristol, Virginia 24203
"Proceeds" means the net cash proceeds realized by the Company from (a) refinancing of any mortgage, (b) a capital transaction, or (c) elimination of any unnecessary funded reserve previously established and maintained in connection with any mortgage or other Company financing.
"Capital Transaction" means the sale, exchange, liquidation, or other disposition of, or any condemnation, award, or casualty, loss, recovery with respect to all or any part of the Property.
"Code" means the Internal Revenue Code of 1986 as amended and any successor statute.
"Company" means Toms Brook School Apartments, L.L.C.
"Managing Member' means People incorporated Housing Group.
"Member(s)" means People Incorporated Housing Group the "Managing Member" and People Incorporated of Virginia the "Special Member"
"Mortgage" means any company liability secured by real or personal property or any interest therein owned by the Company.
"Notice" means a writing containing all information necessary to satisfy the purposes for which notice is being given, which is personally delivered, sent by postal or reputable overnight delivery service, or mailed, first class postage prepaid, addressed as applicable to a member at it's address as it appears on the Company's records.
"Profits" means the excess of all income of the Company over all expenses of the Company (included the amount of any gains recognized by the Company on the sale or other disposition of property) during a fiscal year, all as determined in accordance with method of accounting utilized by the Company for Federal Income Tax Purposes.
"Special Member" means the People incorporated of Virginia.
"Virginia Code" means the 1950 Code of Virginia as amended.
Article III
GENERAL
3.1. Principle Place of Business. The Principle Place of Business of the Company shall be at 1173 West Main Street, Abingdon Virginia, 24210 or at such other location as designated by the Managing Member.
Prepared by CURCIO & STOUT Bristol, Virginia 24203
3.2. Registered Office and Agent. The initial Registered Agent and Office of the Company is Peter Curcio, Esquire, Curcio & Stout PC. 600 Cumberland Street, Bristol Virginia, 24201 which is physically located in the City of Bristol, Virginia.
3.3. Organizational Documents. Company's Articles of Organization and this operating agreement shall constitute all organizational documents of the Company.
Article IV
Member and Capital Contributions
4.1. Initial Capital Contribution. Initial Capital Contributions of the Managing Member and Special Member are set forth on Exhibit A, which is attached hereto and made a part hereof.
4.2. Additional Capital Contributions. The Managing Member and Special Member shall not be required to make any additional capital contributions without written consent of each of the parties hereto.
4.3. limited liability. Neither the Managing Member nor the Special Member shall be liable for the debts, liabilities, contracts, or other obligations of the Company. Except as provided by state law, the Managing Member and Special Member shall be liable only to make their respective Capital Contributions and shall not be required to lend any funds to the Company or to make any additional contributions to the Company, except as provided hereinabove.
Article V
Allocations and Distributions
5.1. Capital Accounts. A Capital Account shall be established and maintained on the books of the Company for each member in accordance with the provisions of Treasury Regulations Section 1.704-1 (b)(2)(iv).
5.2. Distributions of Net Cash Flow. Net Cash Flow of the Company shall be distributed to the Members at such time as agreed upon by both parties hereto.
5.3. Distribution of Profits and losses. All profits and losses of the Company will be allocated to the Members according to their respective interests as set forth on Exhibit A hereto.
Prepared by CURCIO & STOUT Bristol, Virginia 24203
Article VI
Management of the Company
6.1. Management. The Company shall be managed by its Managing Member and the Managing Member shall have full charge of all affairs and business of the Company and of the management and control of the Company. The Managing Member shall have all the rights and powers as are conferred by law or as it deems necessary, advisable, or convenient in managing the business and the affairs of the Company. The Managing Member designates Robert G. Goldsmith as its authorized representative for all matters concerning the Project. The signature of Robert G. Goldsmith will bind the Company in all such matters. For matters requiring Special Member Consent, Special Member designates Robert G. Goldsmith as its authorized representative.
6.2. Action by Consent. Any action required or permitted to be taken at a member meeting may beiaken without a meeting in accordance with the act.
6.3. Authority of Special Member. Special Member is empowered on behalf
of the Company to negotiate, execute, and deliver such agreements, instruments, deeds, certificates, and other documents as it deems necessary and appropriate in its discretion to (i) give effect any leases, debt obligations, and security therefore, joint ventures or other cooperative understandings, (ii) procure labor materials or services including without limitation services of professionals, and (iii) undertake and complete maintenance and other improvement of the property.
6.4. Purchase Option and Right of First Refusal. The Company is expressly
authorized to enter into an exclusive nonprofit Purchase Option and Right of First Refusal Agreement with People Incorporated Housing Group, qualified nonprofit organization, per the requirements of section 42 of the Internal Revenue Code of 1986 as amended.
Article VII
Indemnification
., .1. Indemnity. Subject to the limitations of the Act, the Company shall
indemnify and hold harmless to the full extent permitted by the Act, its Members and any partner, shareholder, director, officer, manager, agent, affiliate, professional, or other advisor of the Members (collectively the "Indemnified Persons"), from and against any and all loss, damage, and expense, (including without limitation, fees and expenses of attorneys and other advisors and any court costs incurred by any Indemnified
Person) or liability by reason of anything, any Indemnified Person does or refrains from doing, or in connection with the business or affairs of the Company ( INCLUDING ANY LOSS, DAMAGE, EXPENSE OR LIABILITY CAUSED BY OR ATTRIBUTABLE TO THE ORDINARY OR SIMPLE NEGLIGENCE AS OPPOSED TO GROSS NEGLIGENCE OF
Prepared by CURCIO & STOUT Bristol, Virginia 24203
THE INDEMNiFIED PERSON), except to the extent that the loss, damage, expense, or liability results primarily from the indemnified person's gross negligence or willful breech of a material provision of this agreement which in either event causes actual material damage to the Company.
Article VIII
Meetings
8.1 No Annual Meeting. The Members are not required by the Act to have a
meeting and no annual meeting shall be held.
8.2. Action Without a Meeting. Action may be taken by the Company by each Member consenting to such action in writing in lieu of a meeting as allowed by section 6.2 of this agreement and-any such action so taken shall have the affect of a meeting and vote.
Article IX
Dissolution.
9.1. Events Resulting in Dissolution. The Company will be dissolved upon the earlier of the expiration of its term or the occurrence of any of the following: (a) the decision of either Member to dissolve the Company (b) as required by the Act or other provision of this agreement (c) upon the occurrence of any other event which under the laws of the Commonwealth of Virginia would otherwise cause the Company's dissolution winding up and liquidation.
9.2. Winding Up and Distribution. Upon the dissolution of the Company the Company's business shall be wound up by the payment of any outstanding liabilities and expenses of the Company including without limitation those liabilities and expenses related to the "Property" or such other interests as acquired by the Company which are not assumed by the successor in ownership. The Company shall thereafter establish such reserves for unknown or contingent liabilities as the members may deem appropriate or may otherwise determine necessary as of the date of dissolution. Any remaining balance shall be distributed to each of the members hereto according to their respective interests as more fully set forth in Exhibit A.
Prepared by CURCIO & STOUT Bristol, Virginia 24203
Article X
Miscellaneous
10.1. Accounting Decisions. All decisions as to accounting matters except as expressly provided in this agreement shall be made by the Managing Member and must be satisfactory to the Special Member and the Company's advisors.
10.2. Bank Accounts. All funds of the Company shall be deposited in its name at a financial institution approved by the Members and such checking and savings accounts or time deposits or certificates of deposit as shall be designated from time to time by the Members.
10.3. Books and Records. At all times during the term of the Company, the Company shall keep or cause to be kept full and faithful books of account records and supporting documents which shall reflect completely, accurately, and in reasonable detail each transaction of the Company. The Members designated representatives shall have access to such financial books, records and documents during reasonable business hours and may inspect and make copies of any of them at its own expense. The Company shall keep at its personal office the following: (a) a current list of the full name and last known business address of each Member (b) a copy of the Articles of Organization, Certificate of Organization and all Articles of Amendment and Certificates of Amendment (c) copies of the Company's federal, state, and local Income Tax Returns and reports, if any (d) copies of this agreement as amended from time to time (e) financial statements of the Company.
10.4. Custody of Company Funds. The Managing Member shall have fiduciary responsibility for the safekeeping and use of all funds and assets of the Company whether or not in its immediate possession or control.
10.S. Further Action. Each Member hereto shall execute and deliver such papers, documents, and instruments and perform such acts as are necessary or appropriate to implement the terms hereof.
10.6. Severability. If any provision of this agreement is held to be illegal, invalid, or unenforceable under present or future laws effective during the term of this agreement the legality, validity, and enforceability of the remaining provisions of this agreement shall not effected thereby and if necessary, such provisions as are determined to be illegal, invalid, or unenforceable shall be amended as agreed upon by the Members to render them legal, valid, and enforceable.
10.7. Governing Law. This agreement is entered into in contemplation of the laws now existing in the Commonwealth of Virginia and the Commonwealth of Virginia shall govern the determination and validity of this agreement and the construction of its terms.
Prepared by CURCIO & STOUT Bristol, Virginia 24203
10,8. Parties and Interests. Subject to the provisions contained herein each and all of the covenants, terms, provisions, and agreements contained herein shall be binding upon and inure to the benefit of the heirs, legal representatives, successors, and assigns of the Members.
10.9. Amendments to the Agreement. This agreement may be amended by written action taken by the Members at any time.
IN WITNESS WHEREOF the Members have executed this agreement effective as of the date set forth hereinabove.
,,4';,/;
>f:':::;' C--:~ G c ...
Managing Member People Incorporated Housing roup
Specia Member
People Incorporated of Virginia
Prepared by CURCIO & STOUT Bristol, Virginia 24203
Member
Manaqinq Member
People incorporated Housing Group 1173 West Main Street
Abingdon Virginia, 24210
Special Member
People incorporated of Virginia 1173 West Main Street Abingdon Virginia, 24210
Exhibit A
Prepared by CURCIO & STOUT Bristol, Virginia 24203
rr'fiis is to certify that tfie certificate of organization of
Toms Brook School Apartments, l.l.C.
was this day issued and admitted to record in tfiis office and tfiat tfie said limited Eia6iEity company is authorized to transact its 6usiness su6ject to aCC Virginia Caws applicable to tfie company and its 6usiness. reffective date.' 9rlay 6, 2009
Development Name: Toms Brook School Apartments Name of Applicant: People Incorporated Housing Group Controlling General Partner: People Incorporated Housing Group
INSTRUCTIONS:
This certification must be signed by an individual who is, or is authorized to act on behalf of the Controlling General Partner (if LP) or Managing Member (if LLC) of the Applicant, as designated in the Application. VHDA will accept an authorization document, which gives signatory authorization to sign on behalf of the principals.
2 Attach a resume for each principal of the general partnership (GP) or limited liability company (LLC) and an organization chart for the limited partnership (LP) and LLC.
3 A Schedule A is required for each pr!ncipal of the GP.
4 For each property listed as "non-compliance found," please attach a detailed explanation of the nature of the noncompliance, stating whether or not it has been resolved.
5 The date of this certification must be no more than 30 days prior to submission of the Application.
DEFINITIONS:
For the purpose of this Certification, the following definitions shall apply:
Development shall mean the proposed multifamily rental housing development identified above.
Participants shall mean the principals who will participate in the ownership of the development.
-'rincipal shall mean any person (including any individual, joint venture, partnership, limited liability company,
orporotlon. nonprofit organization, trust, or any other public or private entity) that (i) with respect to the proposed development, will own or participate in the ownership of the proposed development or (ii) with respect to an existing multifamily rental project, has owned or participated in the ownership of such project, all as more fully described hereinbelow. The person who is the owner of the proposed development or multifamily rental project is considered a principal. In determining whether any other person is a principal, the following guidelines shall govern:
1. In the case of a partnership which is a principal (whether as the owner or otherwise), all general partners are also considered principals, regardless of the percentoqe interest of the general partner;
2. In the case of a public or private corporation or organization or governmental entity that is a principal (whether as the owner or otherwise), principals also include the president, vice presldent. secretary, and treasurer and other officers who are directly responsible to the board of directors or any equivalent governing body, as well as all directors or other members of the governing body and any stockholder having a 25% or more interest;
3. In the case of a limited liability company (LLC) that is a principal (whether as the owner or otherwise), all members are also considered prlncipols, regardless of the percentage interest of the member;
4. In the case of a trust that is a principal (whether as the owner or otherwise), all persons having a 25% or more beneficial ownership interest in the assets of such trust;
5. In the case of any other person that is a principal (whether as the owner or otherwise), all persons having a 25% or more ownership interest in such other person are also considered principals; and
6. Any person that directly or indirectly controls, or has the power to control, a principal shall also be considered a prlnclpcl.
CERTIFICATIONS:
I hereby certify that all the statements made by me are true, complete and correct to the best of my knowledge and »eliet and are made in good faith, including the data contained in Schedule A and any statements attached to this
.ertificction.
1. I further certify that for the period beginning 10 years prior to the date of this Certification:
a. During any time that any of the participants were principals in any multifamily rental project, no project has been foreclosed upon, no mortgage has been in default, assigned to the mortgage insurer (governmental or private). nor has mortgage relief by the mortgagee been given;
b. During any time that any of the participants were principals in any multifamily rental project, there has not been any breach by the owner of any agreements relating to the construction or rehabilitation, use, operation, management or disposition of the project;
c. To the best of my knowledge, there are no unresolved findings raised as a result of state or federal audits, management reviews or other governmental investigations concerning any multifamily rental project in which any of the participants were principals;
d. During any time that any of the participants were principals in any multifamily rental project, there has not been a suspension or termination of payments under any state or federal assistance contract for the project;
e. None of the participants has been convicted of a felony and is not presently, to my knowledge, the subject of a complaint or indictment charging a felony. A felony is defined as any offense punishable by imprisonmentfor a term exceeding one year, but does not include any offense classified as a misdemeanor under the laws of a state and punishable by imprisonment of two years or less;
f. None of the participants has been suspended, debarred or otherwise restricted by any federal or state governmental entity from doing business with such governmental entity; and
(
g. None of the participants has defaulted on an obligation covered by a surety or performance bond and has not been the subject of a claim under an employee fidelity bond.
2. I further certify that none of the participants is a Virginia Housing Development Authority (YHDA) employee or a member of the immediate household of any of its employees.
3. I further certify that none of the participants is participating in the ownership of a multifamily rental housing project as of this date on which construction has stopped for a period in excess of 20 days or (in the case of a multifamily rental housing project assisted by any federal or state governmental entity) which has been substantially completed for more than 90 days but for which requisite documents for closing, such as the final cost certification, have not been filed with such governmental entity.
4. I further certify that none of the participants has been found by any federal or state governmental entity or court to be in noncompliance with any applicable civil rights, equal employment opportunity or fair housing laws or regulations.
5. I further certify that none of the participants was a principal in any multifamily rental project which has been found by any federal or state governmental entity or court to have failed to comply with Section 42 of the Internal Revenue Code of 1986, as amended, during the period of time in which the participant was a principal in such
6, Stoiernents above (if any) '10 which I cermet certify have been deleted by sirikinglhroLJflhthe words. in the case of any such deletion, I have attached a true end occurote stoternenr to exploin the relevont tocts end circumstances,
WA.RN!NG: IF THIS CE';RnHCAlICf'oJ CONTAINS !\NY !\I\ISRtJ'RES[::J~TAI1CXJ OF !~ Jv\r\TERii\L FACI, THE AUTHORITY iv\,\V f([JCCr THE hi)F'LlC/l.JIOt"-i FOR I O\,',!I NCOI0J' HCUSlf'oK:~ 'i/,X CRFDI1S l'-ND ,\l,A Y F'RUHII3IT THE SUBMISSIC)i'..J BY Ti iE ,t·J'F'LlCA0H OF FUTURI::,
Schedule A: List of All Tax Credit Developments for Each Principal to this Certification
~omplete the following, using separate pagels) as needed, for each principal. List all developments that have eceived allocations of tax credits under Section 42 of the IRC.
People Incorporated Housing Group
Controlling G. P. of Proposed Project? _Y-=ec:.s-;-:-~,.-_ YorN
Principal's Name:
Controlling Non-
General Total Total Low compliance
Name of Ownership Entity and Partner? Dev. Income Placed in 8609 (s) Issue Found? YIN
Development Name/Location Phone Number (Y/N) Units Units Service Date Date (Explain Yes)
White's Mill Point White's Mill Point, L.P. Y 32 32 12/31/2006 8/29/2007 No
(276) 623-9000
Clinchfield Place Clinchfield Place, L.P. Y N/A N/A N/A N/A N/A
(276) 623-9000 Returned Credits
Sweetbriar Sweetbriar, L.P. Y 20 20 TBD N/A N/A
(276) 623-9000
Abingdon Green Abingdon Green, L.L.C. Y 32 32 TBD N/A N/A
(276) 623-9000
Norton Green Norton Green. L.L.C. Y 40 40 TBD N/A N/A
(276) 623-9000
Pulaski Village Pulaski Village, L.L.C. Y 44 44 TBD N/A N/A
1276) 623-9000
Dante Crossing Dante Crossing, L.L.C. Y 12 12 TBD N/A N/A
1276) 623-9000
Schedule A: List of All Tax Credit Developments for Each Principal to this Certification
omplete the following, using separate pagers) as needed, for each principal. List gj[ developments that have .celved allocations of tax credits under Section 42 of the IRC.
People Incorporated of Virginia
Controlling G. P. of Proposed Project? .:..N:.::o....,.,..--:-,-_ YorN
Principal's Name:
Controlling Non-
General Total Total Low compliance
Name of Ownership Entity and Partner? Dev. Income Placed in 8609 (5) Issue Found? YIN
Development Name/Location Phone Number (Y/N) Units Units Service Date Date (Explain Yes)
White's Mill Point White's Mill Point, L.P. N 32 32 12/31/2006 8/29/2007 No
1276) 623-9000
Clinchfield Place Clinchfield Place, L.P. N N/A N/A N/A N/A N/A
(276) 623-9000 Returned Credits
Sweet briar Sweetbrier. L.P. N 20 20 TBD N/A N/A
(276) 623-9000
Abingdon Green Abingdon Green, L.L.C. N 32 32 TBD N/A N/A
(276) 623-9000
Norton Green Norton Green, L.L.C. N 40 40 TBD N/A N/A
(276) 623-9000
Pulaski Village Pulaski Village, L.L.C. N 44 44 TBD N/A N/A
(276) 623-9000
Dante Crossing Dante Crossing, L.L.C. N 12 12 TBD N/A N/A
(276) 623-9000
LlHTC as '70 of 1st PAGE TOTAL:
180
100% Total Units
180
People Incorporated was chartered in 1964 as the Commonwealth of Virginia's first Community Action Agency. Over the course of the past 45 years, People Incorporated has emerged as one of the most diverse and successful community action agencies in the state. Throughout its long history, the agency has diversified the scope of its programming and reach into distressed communities. From its establishment as a community-based, grassroots organization, People Incorporated has expanded its serve area from an initial two to seven jurisdictions, and established two affiliate corporations to expand its capacity to undertake housing and community and economic development projects.
People Incorporated provides opportunities for people to reach their goals to enhance their ability to improve their lives, their families, and their communities. The agency offers a wide variety of human service and community development programming, in key sectors such as child and family services, community services, workforce development, community economic development, and housing. With upwards of 260 employees, and annual revenues totaling $12,000,000, People Incorporated annually serves 6,000 low-income individuals and families throughout Virginia.
In recent years, People Incorporated has significantly increased its community economic development and housing activity. As a non-profit affordable housing developer, People Incorporated offers a comprehensive array of housing-related services. Housing related qualifications and accomplishments over the past 12 months include:
•
General partner and developer of numerous multi-family, including LIHTC projects - 32 units came on line in 2006; 5 additional projects in development totaling 148 units; 2 projects in predevelopment stages totaling 125 units Multifamily property and asset management - 168 rental units owned and managed
People Incorporated is a HUD-certified housing counseling agency, providing homebuyer education and housing counseling services, including loan origination and packaging:
People Incorporated is the leading provider of rehabilitation services in the service area
New home construction and substantial reconstruction of homeowner properties Transitional housing and permanent supportive housing for the homeless - 35 rental units owned, 12 permanent supportive housing units
Executive Dir-ector, People tr.corporated of Southwest Viv-gll/\la, 1-q 82 - preseV\t.
Duties include chlef executive officev- aM chief fiV\af/\.clal offtcer for private I/\ol/\-:"profit COMI/V\uf/\.ity Actiol/\ Agel/\cy; developMel/\t ascd l/V\al/\agemeV\.t of al/\f/\.ual budget of $7.4 l/V\illioV\; developmeV\t of wov-k prograM aM maV\Cl.gemel/\t of 200 staff; acquisitio»: aM I/V\aif/\.tel/\Cl.f/\.ce of physical plant; mal/\o.gemel/\t of ageVtcy contact: witt.. govev-nMel/\tofficials aVtd. tft..e wedia.
SigVtificCl.V\t o.ccompfishW\ef/\.ts il/\c{ude reform of heafth cave delivery systeW\ for pre-nato! cave aM obstetrical services il/\ co/.mty where such services had rot: beel/\o.vailable Por over six yeaV"$; developWl.eV\t of public wateV' systellVl.s to serve severral ruV"al coW\W\ul/\ities wherre residents previously relied Of/\. wateV' from sprtV1:fj5 ar-d. oper: streaMS for dowestic COV\5uMptiol/\; establishMeV\t of food bal/\k to serve thr'vi;een counties in the Southwest region Por VirgiV\iCl.. . Expo.V\5ioV\ of service area froW\ two to five juV'isd.tctioV\5; developW\eV\t of V\ew
AdwtiVl.istvative accow.plishw.eVl.ts irclude chaVl.fJiJ11.8 pvogralM record. keepiJ11.8 aM. fiscal w.tlVl.ageVV\el'\t systew.s fV'ow. w.tll'\Utll to cow.puterized; purclvase of office buildiV\8 to pevw.Cl.Vl.eVl.tly house ageVl.cy offices; developw.tVl.t of a fiVl.al'\cial procedures Mal'\lAal, peV'soVl.MI policies w.cl.VI.ua(, aM board Mew.bers MaVl.ual; increase cow.w.(,1V\ityawaveMss of ageVl.cy activities arcd. it-tll.provew.el'\ts of 6I.gtVl.cy iw.Cl.ge witht'VI. cowlw.w/l.ity.
?rograw. ?laVl.Vl.Ew) People lvccorporated. j.'778 - j.'782
outies iVl.clude assessiJ11.8 reeds Por, aM plaVl.Vl.illl8 developw.eVl.t of pV'ograw.w.iV\8 to beVl.erit low-ircoree aM eldevly residevds of service area. FUMiJ11.8 obtaiVl.ed thvough Departl'V\ein.t of Health aVId Huw.aVl. Sevvices (Head Start); Cow.w.uVl.ity Services Adl'V\iVl.istratioVl. (Cow.w.uVl.ity Food aM Nutrition, Selllior Opportunities and. Services, cVl.ergy Crisis aM IVl.tevveVl.tioVl. pvogV'aVV\, Local IlIlitiatives, Sw.a{{ Towl'\ fiMphasis PvogV'tlw.); DepartVV\eVl.t of LaboV' (CfTA); Departw.evo.t of Housil'\g 4V1.d UV'baVl. DevelopVV\eVl.t (Sectioti\ 8 HOlAsiV\fJ, Cow.w.uVl.ity
Devetopw.el'\t Block C/V'avo.t); Departw.eVl.t of 'trarsportatior; Departw.eVl.t of Justice
(OJJDP); Departw.eVl.t of Agriculture (CCFP) SFSP) Il'\Stitt:AtioVl.al Cowwvodities, FVV\HA); Departmevo.t of Ev-.ergy (WeatheV'l~atioll\. PrograM); Virgill\.ia DepartMeVl.t of Social Services (State and. Local Hospitall~o.tioll\. Program); Virgill\.ia Water Project.
oeveiopedrev« local progralMs to provide reV\.tal ossistav-ce payw.ell\.ts to lovc-ircoroe, eldedy households; provide Vl.utritio~al w.eo.ls to school-o.ge childrevo. durivo.g SIAWllMeY'Sj provide coulI\$eliVl.g o.M outwa~d bour.d: activities to delill\.queVl.t youth; provide trarsportatiovc services to eldedy and. hal'\dicapped persons; build aMlor rehabilitate hOl.l.sill\.fJj operate iow-ircoree. ?lVtd eldedy apavtw.eVl.t COMplex.
ParafegaL Yeary ar.d Tate, P.C.) j.'177 - 1.'778
Duties ircluded title searches for real estate cOlI\.veyavo.ces, legal research.
Duties inciuded. recorciliatior: of fivo.all\.cial books Oil\. a weekly basis.
Taught Principles of ECOll1.0Wlics (f({{ed ill1. foil' proiessor 0111. oll1.e year- Leave of Absell1.ce)
4raduate TeachiVl.9 AssistaVltJ Viv:giVLia PolytechVLic tvsiiiute aM State UVLiversitYJ ECOVLOVV\ics, ;1..Q75 - :l.Q7tO
CURRENT AFFILIATIONS
President, fV1id At{aVl.tic CM »ssoclatio« Board of Directors
lllllllMediate Past Presidenz, Virgill1.ia COUVLCiI AgaiVLSt PO\Ierty Board of Directors
/VIeWlber) Washfr!\gtoll1. Coull1.ty Habitat for- HUWlaVLity BoaV'd of Directors
PAST AfFILIATIONS
ChaiV"WlaVLJ HighfaVLds Policy aVLd Ma/llageWleVLt Board for At Risk Youth
Presidercc, ViV'giVLia Water Project: Board of Directors
MeWlber) Nationa! Rura( CowtlMwl\ity Assistall1.ce PV'ograWl Board of Directors
MeMberJ Southwest Virgilllia Legal Aid Society Board of Directors
MeWlberJ. New River I MOUVLt Rogers Policy Board
.MewtberJ Brlsto! Crisis Center Board of Directors
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Part II, 13VACI0-180-60, of the Qualified Allocation Plan (the "Plan") of the Virginia Housing Development Authority (the "Authority") for the allocation of federal low income housing tax credits ("Credits") available under §42 of the Internal Revenue Code, as amended (the "Code") establishes certain requirements for receiving Credits from the Nonprofit Pool established under the Plan and assigning points for participation of a nonprofit organization in the development of qualified low-income housing.
Answers to the following questions will be used by the Authority in its evaluation of whether or not an applicant meets such requirements (attach additional sheets as necessary to complete each question).
1. General Information.
a.
Name of development:
Toms Brook School Apartments
b.
Name of owner/applicant:
Toms Brook School Apartments, L.L.C./ People Incorporated Housing Group
c.
Name of Nonprofit entity:
People Incorporated Housing Group
d.
Address of principal place of business of Nonprofit entity:
1173 West Main Street; Abingdon, VA 24210
Indicate funding sources and amount used to pay for office space:
Incorporated of Virginia
Office Space is donated by People
e.
Tax exempt status:
[2J 501(c)(3)
o 501(c)(4)
o 501(a)
f. Date oflegal formation of Nonprofit: 3-22-02 (must be prior to application deadline);
evidenced by the following documentation: State Corporation Commission Letter
g. Date ofIRS 501(c)(3) or 501 (c)(4) determination letter: _6-_2_9-_0_3 _
(must be prior to application deadline and copy must be attached).
h. Describe exempt purposes (must include the fostering of low-income housing in its articles of incorporation):
The purpose of the corporation is affordable community housing development and improvement for low to
Moderate-income families
i.
Expected life (in years) of Nonprofit:
Perpetual
j. Explain the anticipated future activities of the Nonprofit over the next five years:
To continue with the purposes described above.
1/09 Page 1 of 8
NONPROFIT QUESTIONNAIRE, continued
k. How many full time, paid staff members does the Nonprofit and, if applicable, any other nonprofit organization(s) ("Related Nonprofit(s)") of which the Nonprofit is a subsidiary or to which the Nonprofit is
otherwise related (by shared directors, staff, etc.) have? 180 How many part time,
paid staff members? 50 Describe the duties of all staff members:
People Incorporated Housing Group shares employees with People Incorporated of Virginia.
1. Does the Nonprofit share staff with any other entity besides a Related Nonprofit described above?
DYes [8J No If yes, explain in detail:
m.
How many volunteers does the Nonprofit and, if applicable, any Related Nonprofit have?
o In Housing
n. What are the sources and manner of funding of the Nonprofit? (You must disclose all financial and! or the arrangements with any individual(s) or for profit entity, including anyone or any entity related, directly, indirectly, to the Owner of the Development
People Incorporated of Virginia, the parent organization of People Incorporated Housing Group, provides Services through 32 programs to low and moderate-income individuals and families. These programs are
Funded through a variety of sources
o.
List all directors of the Nonprofit, their occupations, their length of service on the board, and their
residential addresses: Please see attached list.
( \
2. Nonprofit Formation.
a. Explain in detail the genesis of the formation of the Nonprofit: People Incorporated Housing Group Was formed in 2002 to become a eRDO so that the purpose of the organization could be realized.
b. Is the Nonprofit, or has it ever been, affiliated with or controlled by a for profit entity or local housing authority? DYes [8J No If yes, explain in detail:
c. Has any for profit organization or local housing authority (including the Owner of the Development, joint venture partner, or any individual or entity directly or indirectly related to such Owner) appointed any
directors to the governing board of the Nonprofit? DYes [8J No If yes, explain:
1/09 Page 2 of 8
NONPROFIT QUESTIONNAIRE, continued
d . Does any for-profit organization or local housing authority have the right to make such appointments?
D Yes ~ No If yes, explain:
e. Does any for profit organization or local housing authority have any other affiliation with the Nonprofit or have any other relationship with the Nonprofit in which it exercises or has the right to exercise any other type of control? D Yes ~ No, If yes, explain:
f Was the Nonprofit formed by any individual(s) or for profit entity for the principal purpose of being included in the Nonprofit Pool or receiving points for nonprofit participation under the Plan? DYes ~No
g. Explain in detail the past experience of the Nonprofit including, if applicable, the past experience of any other Related Nonprofit of which the Nonprofit is a subsidiary or to which the Nonprofit is otherwise
related (by shared directors, staff, etc.): See accomplishments of People Incorporated in Tab E in the
Form of the last annual report published by the agency.
h. If you included in your answer to the previous question information concerning any Related Nonprofit, describe the date oflegal formation thereof, the date ofIRS 501(c)(3) or 50 1 (c)(4) status, its expected
life, its charitable purposes and its relationship to the Nonprofit. People Incorporated of Virginia was
Legally formed in 1964. 501(c)(3) status was received on November 19, 1965. The expected life of the
Agency is perpetual. People Incorporated of Virginia is the sole member of People Inc. Housing Group.
3. Nonprofit Involvement.
a. . Is the Nonprofit assured of owning an interest in the Development (either directly or through a wholly
owned subsidiary) throughout the Compliance Period (as defmed in §42(i)(I) of the Code)?
DYes I:8J No
(i) Will the Nonprofit own at least 10% of the general partnership/owning entity? I:8J Yes D No
(ii) Will the Nonprofit own 100% of the general partnership interest/owning entity? DYes I:8J No
Ifno to either 3a.i or 3a.ii above, specifically describe the Nonprofit's ownership interest:
People Incorporated Housing Group will own 90%
b. (i) Will the Nonprofit be the managing member or managing general partner? I:8J Yes D No If yes, where in the partnership/operating agreement is this provision specifically
referenced?
Exhibit A
(ii) Will the Nonprofit be the managing member or own more than 50% of the general partnership interest? ~Yes DNo
c. Will the Nonprofit have the option or right of first refusal to purchase the proposed development at the end of the compliance period for a price not to exceed the outstanding debt and exit taxes of the
for-profit entity? ~ Yes D No If yes, where in the partnership/operating agreement is this provision
I:8J Recordable agreement attached to the Tax Credit Application as TAB V
(
Ifno at the end of the compliance period explain how the disposition of the assets will be structured:
1/09
Page 3 of B
NONPROFIT QUESTIONNAIRE, continued
d. Is the Nonprofit materially participating (regular, continuous, and substantial participation) in the
construction or rehabilitation and operation or management of the proposed Development? IZI Yes D No If yes,
(i) Describe the nature and extent of the Nonprofit's proposed involvement in the construction or rehabilitation of the Development: People Incorporated Housing Group shares staff with People Incorporated of Virginia who will serve as General Contractor for the development and will generate
monthly reports and submit draw requests during construction.
(ii) Describe the nature and extent of the Nonprofit's involvement in the operation or management of the Development throughout the Extended Use Period (the entire time period of occupancy restrictions of the low-income units in the Development): People Incorporated Housing Group is the Managing Member and is responsible on a day-to-day basis for decisions regarding the property.
(iii) Will the Nonprofit invest in its overall interaction with the development more than 500 hours annually to this venture?IZIYes 0 No If yes,
subdivide the annual hours by activity and staff responsible and explain in detail:
e. Explain how the idea for the propo.sed development was conceived. For example, was it in response to a need identified by a local neighborhood group? local government? board member? housing needs study? Third party consultant? other? The need for additional affordable community housing in Shenandoah County is high and is evidenced by the large number of clients requesting housing related services on a daily
Basis. Local government officials have shown a tremendous amount of support and excitement about the
Proposed development and the fact that it will preserve the old school building. The need for additional
affordable housing options continues to be a priority throughout the region.
f. List all general partners/managing members of the Owner of the Development (one must be the Nonprofit) and the relative percentages of their interests:
People Incorporated Housing Group: 90% .
People Incorporated of Virginia: 10%
g. If this is a joint venture, (i.e. the Nonprofit is not the sole general partner/managing member), explain the nature and extent of the joint venture partner's involvement in the construction or rehabilitation and operation or management of the proposed development.
The partnership agreement is serving as the joint venture agreement.
h. Is a for profit entity providing development services (excluding architectural, engineering, legal, and accounting services) to the proposed development? DYes IZI No If yes, (i) explain the nature and extent of the consultant's involvement in the construction or rehabilitation and operation or management
of the proposed development.
(ii) explain how this relationship was established. For example, did the Nonprofit solicit proposals from several for-profits? Did the for-profit contact the Nonprofit and offer the services?
1/09 Page 4 of 8
NONPROFIT QUESTIONNAIRE, continued
i. Will the Nonprofit or the Owner (as identified in the application) pay a joint venture partner or consultant fee for providing development services? DYes [8J No If yes, explain the amount and source of the funds for such payments.
j. Will any portion of the developer's fee which the Nonprofit expects to collect from its participation in the of development be used to pay any consultant fee or any other fee to a third party entity or joint venture
partner? DYes [8J No If yes, explain in detail the amount and timing of such payments.
k. Will the joint venture partner or for-profit consultant be compensated (receive income) in any other manner, such as builder's profit, architectural and engineering fees, or cash flow? DYes [8J No If yes, explain:
1. Will any member of the board of directors, officer, or staff member of the Nonprofit participate in the development and/or operation of the proposed development in any for-profit capacity? DYes [8J No
If yes, explain:
m. Disclose any business or personal (including family) relationships that any of the staff members, directors or other principals involved in the formation or operation of the Nonprofit have, either directly or indirectly, with any persons or entities involved or to be involved in the Development on a for-profit basis
including, but not limited to the Owner of the Development, any of its for-profit general partners, employees, limited partners or any other parties directly or indirectly related to such Owner:
None
n. Is the Nonprofit involving any local, community based nonprofit organizations in the development, role and operation, or provision of services for the development? [8J Yes D No If yes, explain in detail,
including the compensation for the other nonprofits: People Incorporated Housing Group and People
Incorporated of Virginia are community-based nonprofit organizations.
4. Virginia and Community Activity.
a. Has the Virginia State Corporation Commission authorized the Nonprofit to do business in Virginia? [8J Yes D No
b. Defme the Nonprofit's geographic target area or population to be served:
The Virginia Counties of Buchanan, Dickenson, Page, Shenandoah, Russell, Washington, and the City of
Bristol, Virginia.
1/09 Page 5 of 8
NONPROFIT QUESTIONNAIRE, continued
c. Does the Nonprofit or, if applicable, Related Nonprofit have experience serving the community where the proposed development is located (including advocacy, organizing, development, management, or facilitation, but not limited to housing initiatives)? [8JYes 0 No If yes, or no, explain nature, extent
and duration of any service: People Inc. has served low-income individuals in Virginia since 1964 and has
Recently expanded services into Page and Shenandoah County and are currently looking for office space and To hire employees to provide housing counseling and IPR services as well as beginning work on the Valley
Vista Apartments tax credit rehab project.
d. Does the Nonprofit's by laws or board resolutions provide a formal process for low income, program beneficiaries to advise the Nonprofit on design, location of sites, development and management of affordable housing? [8J Yes 0 No If yes, explain:
Article IX
e. Has the Virginia Department of Agriculture and Consumer Services (Division of Consumer Affairs)
authorized the Nonprofit to solicit contributions/donations in the target community? DYes [8J No
f. Does the Nonprofit have demonstrated support (preferably financial) from established organizations, institutions, businesses and individuals in the target community? [8J Yes ONo If yes, explain:
The Shenandoah County Board of Supervisors and the mayor and the Town Manager of Toms Brook are
aware of the development plans for the proposed project and supports them.
g. Has the Nonprofit conducted any meetings with neighborhood, civic, or community groups and/or tenant associations to discuss the proposed development and solicit input? 0 Yes [8J No If yes, describe the meeting dates, meeting locations, number of attendees and general discussion points:
h. Are at least 33% of the members of the board of directors representatives of the community
being served? [8J Yes 0 No If yes, (i) low-income residents of the community? [8J Yes D No (ii) elected representatives oflow-income neighborhood organizations? [8J Yes 0 No
1. Are no more than 33% of the members of the board of directors representatives of the public sector (i.e. public officials or employees or those appointed to the board by public officials)? [8JYes 0 No
j. Does the board of directors hold regular meetings which are well attended and accessible to the target
community? [8J Yes D No If yes, explain the meeting schedule: The board holds regular meetings
In Washington County.
k. Has the Nonprofit received a Community Housing Development Organization (eRDO) designation, as defmed by the U. S. Department of Housing and Urban Development's HOME regulations, from the state or a local participating jurisdiction? [8J Yes 0 No
(
1/09
Page 6 of8
NONPROFIT QUESTIONNAIRE, continued
I. Has the Nonprofit been awarded state or local funds for the purpose of supporting overhead and operating
expenses? IS] Yes 0 No If yes, explain in detail: CSBG funds awarded annually
m. Has the Nonprofit been formally designated by the local government as the principal community-based nonprofit housing development organization for the selected target area? IS] Yes 0 No If yes, explain:
n. Has the Nonprofit ever applied for Low Income Housing Tax Credits for a development in which it acted as a joint venture partner with a for-profit entity? 0 Yes IS] No If yes, note each such application including: the development name and location, the date of application, the Nonprofit's role and ownership status in the development, the name and principals of the joint venture partners, the name and principals of the general contractor, the name and principals of the management entity, the result of the application, and the current status of the development(s).
o. Has the Nonprofit ever applied for Low Income Housing Tax Credits for a development in which it acted as the sole general partner/managing member? 0 Yes IS] No If yes, note each such development including the name and location, the date of the application, the result of the application, and the current status of the development( s).
p. To the best of your knowledge, has this development, or a similar development on the same site, ever received tax credits before? 0 Yes IS] No If yes, explain:
q. Has the Nonprofit been an owner or applicant for a development that has received a reservation in a previous application round from the Virginia Housing Partnership or the VHDA Housing Funds?
r. Has the Nonprofit completed a community needs assessment that is no more than three years old and that, at a minimum, identifies all of the defined target area's housing needs and resources? ISl Yes 0 No
If yes, explain the need identified: Please see attached assessment
NONPROFIT QUESTIONNAIRE, continued 1/09
Page 70fB
s. Has the Nonprofit completed a community plan that (1) outlines a comprehensive strategy for addressing identified community housing needs, (2) offers a detailed work plan and timeline for implementing
the strategy, and (3) documents that the needs assessment and comprehensive strategy were developed with the maximum possible input from the target community? ~ Yes D No
If yes, explain the plan: -=S..:..ee:....:,:;att:.:.:a::..:c.::h..:..ed=-.:::..bu=s:=in:.:.:e:=s;:_s -,=-p.::la:::n;_. _
5. Attachments. Documentation of any of the above need not be submitted unless requested by VHDA
The undersigned Owner and Nonprofit hereby each certify that, to the best of its knowledge, all of the foregoing information is complete and accurate. Furthermore, each certifies that no attempt has been or will be made to circumvent the requirements for nonprofit participation contained in the Plan or Section 42 of the Internal Revenue Code.
Toms Brook School Apartments, L.L.C.
owned~
By: ~G~./<-
Its: President and C.E.O. - Member Title
People Incorporated Housing Group
Nonprofit
By ~6~W;~ uman a
~ 66-,";>-'-
By: __ /_~~;,f ~,- __ ~ ___
Executive Director --....:::::
1/09
Page 8 of 8
People Incorporated Housing Group 2008
Ron Blankenship, Chair
P. O. Box 61
Lebanon, VA 24266 889-1119 Ron.blankenship@vatb.com Farm Bureau
919 W. Main St
Wayne Perry Highlands Union Bank
P. O. Box 1128(340 W. Main) 24210 Abingdon, VA 24212
276-628-9181
276-619-2102 FAX Email:wperry@HUBank.com
Roger Blackstone, Vice-Chair 1968 West Dante Hollow Nora, VA 24272
Bristol, VA 24201 645-9516-466-9115 or 423-646-l358
821-5637
Email: vdotson@bristol.vaschools.org
Winona Fleenor
V irginia Highlands CC
P. O. Box 828, Abingdon, VA 24212 276-739-2493
Email: wfleenor@vhcc.edu
Jack Garland
P. O. Box 33 Emory, VA 24327 276-944-5317
11746 Mount Calm Drive Cell: 276-243-7170
Charles Krum
19334 Stirrup Drive Abingdon, VA 24211 276-623-1908 276-275-1061 cell
email: srmoves2964@embarqmail.com
Shirley Hylton
Rt. 1, Box 153 Raven, VA 24639 498-4673
Betty Ferrier
230 Madison St Abingdon, VA 24210 628-2767
Creed Jones
505 S Shady Ave, Apt #5 Damascus, VA 24236 475-5231 (h)
475-3831 (Town Hall) creedjones@naxs.net
Buckey Boone
20380 Green Spring Rd Abingdon, VA 24211 783-8300 ext 222 783-6576 Email-buckey@svlas.org
Walter Mahala
261 0 1 Old Saltworks Rd. Abingdon, VA 24210 423-727-7387 276-685-9036-cell
Chris Shortridge
P. O. Box 288(1025 Maple St) Grundy, VA 24614
935-8437
email: cjproperties@verizon.net
Angie Loughry
137 Valley Vista Drive, Apt 204 Woodstock, VA 22664 540-459-2576
Email: ayh@shentel.net
David Yates
101 Madison, Apt G-54 Luray, VA 22835 540-743-6064
Jim Boyd
P. O. Box 54 Richlands, VA 24641 276-964-4162
j .boyd2@adelphia.net 251 Jackson St. Doran, VA 24612
Revised 2-23-09
Nonprofit Questionnaire
Part II, 13VACI0-180-60, of the Qualified Allocation Plan (the "Plan") of the Virginia Housing Development Authority (the "Authority") for the allocation of federal low income housing tax credits ("Credits") available under §42 of the Internal Revenue Code, as amended (the "Code") establishes certain requirements for receiving Credits from the Nonprofit Pool established under the Plan and assigning points for participation of a nonprofit organization in the development of qualified low-income housing.
Answers to the following questions will be used by the Authority in its. evaluation of whether or not an applicant meets such requirements (attach additional sheets as necessary to complete each question).
1. General Information.
a.
Name of development:
Toms Brook School Apartments
b.
Name of owner/applicant:
Toms Brook School Apartments, L.L.C'/ People Incorporated Housing Group
c.
Name of Nonprofit entity:
People Incorporated of Virginia
d.
Address of principal place of business of Nonprofit entity:
1173 West Main Street; Abingdon, VA 24210
Indicate funding sources and amount used to pay for office space: Each of the programs run by People
Incorporated pays for a pro-rated share of office space from their own funding sources.
e.
Tax exempt status:
~ 501(c)(3)
D 501(c)(4)
o 501(a)
f. Date of legal formation of Nonprofit: 8-11-1964 (must be prior to application deadline);
evidenced by the following documentation: State Corporation Commission Letter
g. Date ofIRS 50 I (c)(3) or 501(c)(4) determination letter: ~11:....-.:...:19:....-.:...:19~6:.::..5 _
(must be prior to application deadline and copy must be attached).
h. Describe exempt purposes (must include the fostering of low-income housing in its articles of incorporation):
Please see Article II of the attached Bylaws for People Incorporated
i.
Expected life (in years) of Nonprofit:
Perpetual
j. Explain the anticipated future activities of the Nonprofit over the next five years:
To continue with the purposes described in the attached Bylaws.
1/09 Page 1 of 8
NONPROFIT QUESTIONNAIRE, continued
k. How many full time, paid staff members does the Nonprofit and, if applicable, any other nonprofit organization(s) ("Related Nonprofit(s)") of which the Nonprofit is a subsidiary or to which the Nonprofit is
otherwise related (by shared directors, staff, etc.) have? 180 How many part time,
paid staff members? 50 Describe the duties of all staff members:
People Incorporated Housing Group and People Incorporated of Virginia share staff members.
1. Does the Nonprofit share staff with any other entity besides a Related Nonprofit described above?
DYes IZI No If yes, explain in detail:
m.
How many volunteers does the Nonprofit and, if applicable, any Related Nonprofit have?
o In Housing
n. What are the sources and manner of funding of the Nonprofit? (You must disclose all fmancial and! or the arrangements with an_y individual(s) or for profit entity, including anyone or any entity related, directly, indirectly, to the Owner of the Development
People Incorporated of Virginia provides services through 32 programs to low and moderate-income
Individuals and families. These programs are funded through a variety of sources. Please see page 26 of
People InCOrporated's 2007 Annual Report for a list of the agency's major funding partners.
o. List all directors of the Nonprofit, their occupations, their length of service on the board, and their
residential addresses: Please see attached list.
~~~~~==~~~---------------------------------------
2. Nonprofit Formation.
a. Explain in detail the genesis of the formation of the Nonprofit: People InCOrporated of Virginia was Formed in 1964 (as the Progressive Community Club of Washington County, Virginia, Incorporated) with The purpose of promoting the social welfare of the citizens of Washington County and the City of Bristol,
Vir inia
b. Is the Nonprofit, or has it ever been, affiliated with or controlled by a for profit entity or local housing authority? DYes IZI No If yes, explain in detail:
c. Has any for profit organization or local housing authority (including the Owner of the Development, joint venture partner, or any individual or entity directly or indirectly related to such Owner) appointed any
directors to the governing board of the Nonprofit? DYes [gI No If yes, explain:
1/09 Page 2 of 8
NONPROFIT QUESTIONNAIRE, continued
d . Does any for-profit organization or local housing authority have the right to make such appointments?
DYes rgJ No If yes, explain:
e. Does any for profit organization or local housing authority have any other affiliation with the Nonprofit or have any other relationship with the Nonprofit in which it exercises or has the right to exercise any other type of control? DYes rgJ No, If yes, explain:
f. Was the Nonprofit formed by any individual(s) or for profit entity for the principal purpose of being included in the Nonprofit Pool or receiving points for nonprofit participation under the Plan? DYes rgJ No
g. Explain in detail the past experience of the Nonprofit including, if applicable, the past experience of any other Related Nonprofit of which the Nonprofit is a subsidiary or to which the Nonprofit is otherwise
related (by shared directors, staff, etc.): See accomplishments attached in the fonn of the last annual
Report published by the agency which also includes infonnation pertaining to People Incorporated Housing Grou.
h. If you included in your answer to the previous question information concerning any Related Nonprofit, describe the date oflegal formation thereof, the date ofIRS 501(c)(3) or 50 1 (c)(4) status, its expected
life, its charitable purposes and its relationship to the Nonprofit. People Incorporated Housing Group
Was fonned on March 22,2002 and 50 1 (c)(3) status was received on June 29, 2003. The expected life of The agency is perpetual. People Incorporated of Virginia is the sole member of People Inc. Housing Group.
3. Nonprofit Involvement.
a. Is the Nonprofit assured of owning an interest in the Development (either directly or through a wholly owned subsidiary) throughout the Compliance Period (as defmed in §42(i)(1) of the Code)?
rgJYes D No
(i) Will the Nonprofit own at least 10% of the general partnership/owning entity? rgJ Yes D No
(ii) Will the Nonprofit own 100% of the general partnership interest/owning entity? DYes rgJ No
If no to either 3a.i or 3a.ii above, specifically describe the Nonprofit's ownership interest:
People Incorporated of Virginia will own 10%
b. (i) Will the Nonprofit be the managing member or managing general partner? DYes rgJ No If yes, where in the partnership/operating agreement is this provision specifically
referenced?
(ii) Will the Nonprofit be the managing member or own more than 50% of the general partnership interest? DYes rgJ No
c. Will the Nonprofit have the option or right offrrst refusal to purchase the proposed development at the end of the compliance period for a price not to exceed the outstanding debt and exit taxes of the
for-profit entity? DYes rgJ No If yes, where in the partnership/operating agreement is this provision
specifically referenced?
rgJ Recordable agreement attached to the Tax Credit Application as TAB V
Ifno at the end of the compliance period explain how the disposition of the assets will be structured:
People Incorporated Housing Group will have the purchase option and right offrrst refusal.
1/09
Page 3 of 8
NONPROFIT QUESTIONNAIRE, continued
d. Is the Nonprofit materially participating (regular, continuous, and substantial participation) in the
construction or rehabilitation and operation or management of the proposed Development? ~ Yes D No If yes,
(i) Describe the nature and extent of the Nonprofit's proposed involvement in the construction or rehabilitation of the Development:
People Incorporated of Virginia will serve as General Contractor for the development and will
Generate monthly reports and submit draw requests during construction.
(ii) Describe the nature and extent of the Nonprofit's involvement in the operation or management of the Development throughout the Extended Use Period (the entire time period of occupancy restrictions of
the low-income units in the Development): People Incorporated of Virginia will maintain
Ownership interest throughout the extended use period and will manage the operation of the project.
(iii) Will the Nonprofit invest in its overall interaction with the development more than 500 hours annually to this venture? ~Yes D No If yes,
subdivide the annual hours by activity and staff responsible and explain in detail:
e. Explain how the idea for the proposed development was conceived. For example, was it in response to a need identified by a local neighborhood group? local government? board member? housing needs study? Third party consultant? other? The need for additional affordable community housing in Shenandoah County is high and is evidenced by the large number of clients requesting housing related services on a daily
Basis. Local government officials have shown a tremendous amount of support and excitement about the
Proposed development and the fact that it will preserve the old school building. The need for additional
affordable housing options continues to be a priority throughout the region.
f. List all general partners/managing members of the Owner of the Development (one must be the Nonprofit) and the relative percentages of their interests:
People Incorporated Housing Group: 90%
People Incorporated of Virginia: 10%
g. If this is a joint venture, (i.e. the Nonprofit is not the sole general partner/managing member), explain the nature and extent of the joint venture partner's involvement in the construction or rehabilitation and operation or management of the proposed development.
The partnership agreement is serving as the joint venture agreement.
h. Is a for profit entity providing development services (excluding architectural, engineering, legal, and accounting services) to the proposed development? D Yes ~ No If yes, (i) explain the nature and extent of the consultant's involvement in the construction or rehabilitation and operation or management
of the proposed development.
(ii) explain how this relationship was established. For example, did the Nonprofit solicit proposals from several for-profits? Did the for-profit contact the Nonprofit and offer the services?
1/09 Page 4 of 8
NONPROFIT QUESTIONNAIRE, continued
1. Will the Nonprofit or the Owner (as identified in the application) pay a joint venture partner or consultant fee for providing development services? D Yes IX! No If yes, explain the amount and source of the funds for such payments.
j. Will any portion of the developer's fee which the Nonprofit expects to collect from its participation in the development be used to pay any consultant fee or any other fee to a third party entity or joint venture
partner? D Yes IX! No If yes, explain in detail the amount and timing of such payments.
k. Will the joint venture partner or for-profit consultant be compensated (receive income) in any other manner, such as builder's profit, architectural and engineering fees, or cash flow? D Yes IX! No If yes, explain:
1. Will any member of the board of directors, officer, or staff member of the Nonprofit participate in the development and/or operation of the proposed development in any for-profit capacity? D Yes IX! No
If yes, explain:
m. Disclose any business or personal (including family) relationships that any of the staffmembers, directors or other principals involved in the formation or operation of the Nonprofit have, either directly or indirectly, with any persons or entities involved or to be involved in the Development on a for-profit basis
including, but not limited to the Owner of the Development, any of its for-profit general partners, employees, limited partners or any other parties directly or indirectly related to such Owner:
None
n. Is the Nonprofit involving any local, community based nonprofit organizations in the development, role and operation, or provision of services for the development? IX! Yes D No If yes, explain in detail,
including the compensation for the other nonprofits: People Incorporated Housing Group and People
Incorporated of Virginia are community-based nonprofit organizations.
4. Virginia and Community Activity.
a. Has the Virginia State Corporation Commission authorized the Nonprofit to do business in Virginia?
IX! Yes D No
b. Defme the Nonprofit's geographic target area or population to be served:
The Virginia Counties of Buchanan, Dickenson, Page, Shenandoah, Russell, Washington, and the City of
Bristol, Virginia.
1/09 Page 5 of 8
NONPROFIT QUESTIONNAIRE, continued
c. Does the Nonprofit or, if applicable, Related Nonprofit have experience serving the community where the proposed development is located (including advocacy, organizing, development, management, or facilitation, but not limited to housing initiatives)? !2JYes 0 No If yes, or no, explain nature, extent
and duration of any service: People Inc. has served low-income individuals in Virginia since 1964 and has
Recently expanded services into Page and Shenandoah County and are currently looking for office space and To hire employees to provide housing counseling and IPR services as well as beginning work on the Valley
Vista Apartments tax credit rehab project.
d. Does the Nonprofit's by laws or board resolutions provide a formal process for low income, program beneficiaries to advise the Nonprofit on design, location of sites, development and management of affordable housing? !2J Yes 0 No If yes, explain:
Article X of the bylaws.
e. Has the Virginia Department of Agriculture and Consumer Services (Division of Consumer Affairs)
authorized the Nonprofit to solicit contributions/donations in the target community? OYes!2J No
f. Does the Nonprofit have..demonstrated support (preferably fmancial) from established organizations, institutions, businesses and individuals in the target community? !2J Yes ONo If yes, explain:
The Shenandoah County Board of Supervisors and the mayor and the Town Manager of Toms Brook are
aware of the development plans for the proposed project and supports them.
g. Has the Nonprofit conducted any meetings with neighborhood, civic, or community groups and/or tenant associations to discuss the proposed development and solicit input? 0 Yes !2J No If yes, describe the meeting dates, meeting locations, number of attendees and general discussion points:
h. Are at least 33% of the members of the board of directors representatives of the community
being served? !2J Yes 0 No If yes, (i) low-income residents of the community? !2J Yes 0 No (ii) elected representatives oflow-income neighborhood organizations? I2l Yes 0 No
1. Are no more than 33% of the members of the board of directors representatives of the public sector (i.e. public officials or employees or those appointed to the board by public officials)? !2JYes 0 No
j. Does the board of directors hold regular meetings which are well attended and accessible to the target
community? !2J Yes 0 No If yes, explain the meeting schedule: The board holds regular meetings
In Washington County.
k. Has the Nonprofit received a Community Housing Development Organization (CHDO) designation, as defined by the U. S. Department of Housing and Urban Development's HOME regulations, from the state or a local participating jurisdiction? !2J Yes 0 No
1/09 Page 6 of 8
NONPROFIT QUESTIONNAIRE, continued
I. Has the Nonprofit been awarded state or local funds for the purpose of supporting overhead and operating
expenses? IZI Yes 0 No If yes, explain in detail: CSBG funds are awarded annually.
m. Has the Nonprofit been formally designated by the local government as the principal community-based nonprofit housing development organization for the selected target area? IZI Yes 0 No If yes, explain:
n. Has the Nonprofit ever applied for Low Income Housing Tax Credits for a development in which it acted as a joint venture partner with a for-profit entity? 0 Yes IZI No If yes, note each such application including: the development name and location, the date of application, the Nonprofit's role and ownership status in the development, the name and principals of the joint venture partners, the name and principals of the general contractor, the name and principals of the management entity, the result of the application, and the current status of the development(s).
o. Has the Nonprofit ever applied for Low Income Housing Tax Credits for a development in which it acted as the sole general partner/managing member? 0 Yes IZI No If yes, note each such development including the name and location, the date of the application, the result of the application, and the current status of the development(s).
p. To the best of your knowledge, has this development, or a similar development on the same site, ever received tax credits before? 0 Yes IZI No If yes, explain:
q. Has the Nonprofit been an owner or applicant for a development that has received a reservation in a previous application round from the Virginia Housing Partnership or the VHDA Housing Funds?
r. Has the Nonprofit completed a community needs assessment that is no more than three years old and that, at a minimum, identifies all of the defined target area's housing needs and resources? IZI Yes 0 No
If yes, explain the need identified: _;:_P.:..:le.:..:a.:..:se.:..:s:...e_e_a_tt_ac_h_e_d _
NONPROFIT QUESTIONNAIRE, continued 1/09
Page 7 of 8
s.
Has the Nonprofit completed a community plan that (1) outlines a comprehensive strategy for addressing identified community housing needs, (2) offers a detailed work plan and time line for implementing
the strategy, and (3) documents that the needs assessment and comprehensive strategy were developed with the maximum possible input from the target community? I:8J Yes 0 No
If yes, explain the plan: -=S.:_ee:....:::att:::a:::c.::h.:_ed=--=-bu.::s:=in:::e:=s.:..s J:.p=la.::n.:..._. _
(
5. Attachments. Documentation of any of the above need not be submitted unless requested by VHDA
The undersigned Owner and Nonprofit hereby each certify that, to the best of its knowledge, all of the foregoing information is complete and accurate. Furthermore, each certifies that no attempt has been or will be made to circumvent the requirements for nonprofit participation contained in the Plan or Section 42 of the Internal Revenue Code.
Date
Toms Brook School Apartments, L.L.C.
Own~~.I.iC ..
By: ,.. GG.~c::_
'""
Its: President and C.E.O. - Member Title
People Incorporated of Virginia
1/09
Page 8 of 8
PEOPLE INCORPORATED BOARD OF DIRECTORS 2008-2009
SECTOR I
Oakwood Housing
Shirley Hylton (1/05 - 11/09) Rt 1 Box 153
Raven, VA 24639
498-4673
498-3295
Cell- 971-6846
Center for Employment and Training
Jane Smith (3/05 -1/10) 1900 Lawrence Avenue Bristol, VA 24201 669-9519
423-335-5405 cell smithianec@yahoo.com
Deskins Apartments Resident
VACANT
Dante Community
Bobbie Gullett (9/05 - 7/1H)
PO Box 321
Dante, VA 24237
(276) 495-1042 (h)
Alternate Street address (330 Straight rd)
Section 8 Housing
David McCracken (10107 - 9112)
P. O. Box 490
Glade Spring, VA 24340 (518 Monte Vista Drive) (276) 429-5480
Cell (276) 356-1856
e-mail dmacl960@embarqmail.com
Head Start Policy Council
Kimberly Fields (11/08-11/13)
4495 High Point Rd.
Castlewood, VA 24224 276-738-9339
1
SECTOR II
Russell County Board of Supervisors
Buchanan County Board of Supervisors
Bristol City Council
Dickenson County Board of Supervisors County Administrator
Ms. Alice Meade (1/99)
P.O. Box 1208
Lebanon, VA 24266
889-8000 direct line 889-8061 Email: alice.mcade(a)bvunet.net