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Tax Credits, RPP Loans, and/or Tax Exempt Bond Loans

Project Description
Project Name: Henson Ridge
Address: 710 Henson Place

City: Albemarle County: Stanly Zip: 28001

Census Tract: 99100 Block Group: 1025

Is project in Qualified Census Tract or Difficult to Develop Area? No

Are you requesting the basis boost under section II(E)(4) of the QAP? Yes

Political Jurisdiction: City of Albemarle

First:Elbert Last:
Jurisdiction CEO Name: Title: Mayor
Jurisdiction Address: P.O. Box 190

Jurisdiction City: Albemarle Zip: 28002

Jurisdiction Phone: (704)984-9400

Site Latitude: 35.3344

Site Longitude: -80.1694

Project Type: New Construction

Is this project a previously awarded tax credit


New Construction/Adaptive Reuse:

Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project? Yes

If yes, list names of previous phase(s): Henson Place

Number of residents holding Section 8

Will the project meet Energy Star standards as defined in Appendix B? Yes

Does a community revitalization plan exist? No

Will the project use steel and concrete construction and have at least 4 stories? No (1 of 21)4/14/2009 12:56:21 PM

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Will the project include a Community Service Facility under IRS Revenue Ruling 2003-77?
If yes, please describe:

Target Population:Family
Will the project be receiving project based federal rental assistance? No

If yes, provide the subsidy source: and number of units: (2 of 21)4/14/2009 12:56:21 PM

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Applicant Information
Indicate below an individual or a validly existing entity (a corporation, nonprofit, limited partnership or LLC) as the official applicant. Under
QAP Section III(C)(5) only this individual or entity will be able to make decisions with regard to this application. If awarded the applicant
must become part of the ownership entity. The applicant will execute the signature page for this application.
Applicant Name: Wynnefield Properties, Inc.
Address: P.O. Box 395

City: Jamestown State: NC Zip: 27282

Contact: First: Patty Last:Reeder Title:Asst. VP

Telephone: (336)454-6134

Alt Phone: (336)906-1856

Fax: (336)454-6190

Email Address:

NOTE: Email Address above will be used for communication between NCHFA and Applicant. (3 of 21)4/14/2009 12:56:21 PM

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Site Description

Total Site Acreage: 3.35 Total Buildable Acreage: 3.35

If buildable acreage is less than total acreage, please explain:

Identify utilities and services currently available (and with adequate capacity) for this site:

Storm Sewer Water Sanitary Sewer Electric

Is the demolition of any buildings required or planned? No

If yes, please describe:

Are existing buildings on the site currently occupied? No

If yes:
(a) Briefly describe the situation:

(b) Will tenant displacement be temporary?

(c) Will tenant displacement be permanent?

Is the site directly accessed by an existing, paved, publicly maintained road? Yes
If no, please explain:

Is any portion of the site located inside the 100 year floodplain? No
If yes:
(a) Describe placement of project buildings in relation to this area: (4 of 21)4/14/2009 12:56:21 PM

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(b) Describe flood mitigation if the project will have improvements within the 100 year floodplain: (5 of 21)4/14/2009 12:56:21 PM

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Site Control
Does the owner have fee simple ownership of the property (site/buildings)?No

If yes provide:

Purchase Date: Purchase Price:

If no:
(a) Does the owner/principal or ownership entity have valid option/contract to purchase the property?Yes
(b) Does an identity of interest (direct or indirect) exist between the owner/principal or ownership entity with the option/contract for
purchase of the property and the seller of the property?No
If yes, specify the relationship:

(c) Enter the current expiration date of the option/contract to purchase: 8/31/2009

(D) Enter Purchase Price: 425,000 (6 of 21)4/14/2009 12:56:21 PM

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Present zoning classification of the site:N BHD- Neighborhood business district

Is multifamily use permitted?No

Are variances, special or conditional use permits or any other item requiring a public hearing needed to develop this proposal?Yes
If yes, have the hearings been completed and permits been obtained?No
If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for
obtaining them:
The application to obtain the required zoning (R-8A) will be submitted to the City of Albemarle by the middle
of January. It will take approximately 60 days to complete with a final answer. The City of Albemarle has
provided strong support for development of the previous adjacent Henson Place property and they indicate
their strong support for this new Henson Ridge development.

Are there any existing conditions of historical significance located on the project site that will require State Historic Preservation office
If yes, describe below:

Are there any existing conditions of environmental significance located on the project site?No
If yes, describe below: (7 of 21)4/14/2009 12:56:21 PM

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Ownership Entity

Owner Name: Henson Ridge, LLC

Address: P.O. Box 395
City: Jamestown State:NC Zip: 27282

Federal Tax ID Number of Ownership Entity: (If assigned)

Note: Do not submit social security numbers for individuals.
Entity Type: Limited Liability Company
Entity Status: To Be Formed
Is the applicant requesting that the Agency treat the application as Non-Profit sponsored? No
Is the applicant requesting that the Agency treat the application as CHDO sponsored? No
List all general partners, members,and principals. Specify nonprofit corporate general partners or members.
Click [Add] to add additional partners, members, and principals.

Org: Henson Ridge, LLC

First Name: Craig Last Name: Stone Function: Managing Member
Address: P.O. Box 395
City: Jamestown State: NC Zip: 27282

Phone: (336)454-6134 Fax: (336)454-6190

EMail: Nonprofit: No

Org: Henson Ridge LLC

First Name: Norwood Last Name: Stone Function: Member
Address: PO Box 395
City: Jamestown State: NC Zip: 27282

Phone: (336)454-6134 Fax: (336)454-6190

EMail: Nonprofit: No (8 of 21)4/14/2009 12:56:21 PM

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Unit Mix
The Median Income for Stanly county is $53,600.

Low Income Units

Total # Monthly Utility Mandatory **Total

Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.

Gdn Apt 2 950 10 3 320 130 0 450

Gdn Apt 2 950 10 0 395 130 0 525

Gdn Apt 2 950 16 0 400 130 0 530

Gdn Apt 3 1125 2 3 350 157 0 507

Gdn Apt 3 1125 2 0 495 157 0 652

Gdn Apt 3 1125 8 0 520 157 0 677

Utilities included in rents: Water/Sewer Electric Gas Other Trash

Employee Units (will add to Low Income Unit total)

Total # Monthly Utility Mandatory **Total

Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.

Utilities included in rents: Water/Sewer Electric Gas Other

Market Rate Units

Total # Monthly Utility Mandatory **Total

Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.

Utilities included in rents: Water/Sewer Electric Gas Other


All Gross Monthly

Units Units Rental Income

Low Income....... 48 6 19400

Market Rate.......

Totals............... 48 6 19400

Proposed number of residential buildings: 5 Maximum number of stories in buildings: 2

Project Includes:
Separate community building - Sq. Ft. (Floor Area): 1,336 (9 of 21)4/14/2009 12:56:21 PM

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Community space within residential bulding(s) - Sq. Ft. (Floor Area):

Elevators - Number of Elevators:

Square Footage Information

Gross Floor Square Footage: 54,429

Total Net Sq. Ft. (All Heated Areas): 49,036

Indicate below any additional targeting for special populations proposed for this project:
Mobility impaired handicapped: 5% of units comply with QAP Section IV(F)(3) (in addition to the units required by other federal and
state codes.)

Number of Units: 6

Number of Units Required: 6

Persons with disabilities or homeless populations.

Number of Units: 6

** Please refer to the Income Limits and Maximum Housing Expense Table to ensure that Total Monthly Tenant Expenses for low
income units are within established thresholds. (10 of 21)4/14/2009 12:56:21 PM

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Specify Low Income Unit Targeting in table below. List each applicable targeting combination in a separate row below. Click [Add] to
create another row. Click "X" (at the left of each row) to delete a row. Add as many rows as needed.

# BRs Units %

2 10 targeted at 40 percent of median income affordable to/occupied by

2 10 targeted at 50 percent of median income affordable to/occupied by

2 16 targeted at 60 percent of median income affordable to/occupied by

3 2 targeted at 40 percent of median income affordable to/occupied by

3 2 targeted at 50 percent of median income affordable to/occupied by

3 8 targeted at 60 percent of median income affordable to/occupied by

Total Low Income Units: 48

Note: This number should match the total number of low income units in the Unit Mix section. (11 of 21)4/14/2009 12:56:21 PM

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Funding Sources

Amort. Annual
Non- Rate Term Period Debt
Source Amount Amortizing* (%) (Years) (Years) Service

Bank Loan

RPP Loan 570,631 ✔ 2.00 20 20

Local Gov. Loan - Specify:

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:

Other Loan 2 - Specify:

Other Loan 3 - Specify:

Tax Exempt Bonds

State Tax Credit(Loan) 947,482 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 3,879,551

Non-Repayable Grant

Equity: Historic Tax Credits

Deferred Developer Fees

Owner Investment

Other - Specify:

Total Sources** 5,397,664

* "Non-amortizing" indicates that the loan does not have a fixed annual debt service. For these items, you must fill in 20-year debt
service below.
** Total Sources must equal total replacement cost in Project Development Cost (PDC) section.

Estimated pricing on sale of Federal Tax Credits: $0. 70

Remarks concerning project funding sources:

(Please be sure to include the name of the funding source(s)) (12 of 21)4/14/2009 12:56:21 PM

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Loans with Variable Amortization

Please fill in the annual debt service as applicable for the first 20 years of the project life.

RPP Loan

Year: 1 2 3 4 5 6 7 8 9 10
Amt: 48558 47972 47324 46614 45837 44991 44072 43078 42006 40851

Year: 11 12 13 14 15 16 17 18 19 20
Amt: 39611 38280 26854 25000 23000 21000 20000 18000 16000 13767 (13 of 21)4/14/2009 12:56:21 PM

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Development Costs
Eligible Basis
Item Cost Element TOTAL COST
30% PV 70% PV
1 Purchase of Building(s) (Rehab / Adaptive Reuse only)

2 Demolition (Rehab / Adaptive Reuse only)

3 On-site Improvements 495,000 495,000

4 Rehabilitation

5 Construction of New Building(s) 2,504,250 2,504,250

6 Accessory Building(s) 150,000 150,000

7 General Requirements (max 6% lines 2-6) 188,955 188,955

8 Contractor Overhead (max 2% lines 2-7) 66,764 66,764

9 Contractor Profit (max 8% lines 2-7; 6% if Identity of Interest) 200,292 200,292

10 Construction Contingency (max 5% lines 2-9, Rehabs 10%) 108,157 108,157

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 99,403 99,403

12 Architect's Fee - Inspection 12,000 12,000

13 Engineering Costs 35,000 35,000

SUBTOTAL (lines 1 through 13) 3,859,821

14 Construction Insurance (prorate) 7,500 7,500

15 Construction Loan Orig. Fee (prorate) 17,639 17,639

16 Construction Loan Interest (prorate) 144,055 129,650

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate) 5,000 5,000

19 Water, Sewer and Impact Fees 50,000 50,000

20 Survey 12,500 12,500

21 Property Appraisal 8,000 8,000

22 Environmental Report 5,500 5,500

23 Market Study 4,300 4,300

24 Bond Costs

25 Bond Issuance Costs

26 Placement Fee

27 Permanent Loan Origination Fee

28 Permanent Loan Credit Enhancement (14 of 21)4/14/2009 12:56:21 PM

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29 Title and Recording 5,000

SUBTOTAL (lines 14 through 29) 259,494

30 Real Estate Attorney 20,000 20,000

31 Other Attorney's Fees 25,000 25,000

32 Tax Credit Application Fees (Preliminary and Full) 2,300

33 Tax Credit Allocation Fee (0.62% of line 60, minimum $7,500) 38,184

34 Cost Certification / Accounting Fees 8,500 8,500

35 Tax Opinion 2,500

36 Organizational (Partnership) 1,000

37 Tax Credit Monitoring Fee 31,200

SUBTOTAL (lines 30 through 37) 128,684

38 Furnishings and Equipment 50,000 50,000

39 Relocation Expense

40 Developer's Fee 504,000 504,000

41 Additional Contigency (greater of $500/unit or $30,000) 30,000 30,000

42 Other Basis Expense (specify)

43 Other Basis Expense (specify)

44 Rent-up Expense 10,000

45 Other Non-basis Expense (specify)

46 Other Non-basis Expense (specify)

SUBTOTAL (lines 38 through 45) 594,000

47 Rent up Reserve 22,800

48 Operating Reserve 107,865

49 Other Reserve (specify)

50 Other Reserve (specify)

51 DEVELOPMENT COST (lines 1-49) 4,972,664 0 4,737,410

52 Less Federally Funded Grant

53 Less Disproportionate Standard

54 Less Nonqualified Nonrecourse Financing

55 Less Historic Tax Credit 0

56 TOTAL ELIGIBLE BASIS 4,737,410 0 4,737,410

57 Applicable Fraction (percentage of LI Units) 100.00% 100% 100% (15 of 21)4/14/2009 12:56:21 PM

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58 Basis Before Boost 4,737,410 0 4,737,410

59 Basis Boost of up to 130% 130.00% 130.00%

60 TOTAL QUALIFIED BASIS 6,158,633 0 6,158,633

61 Tax Credit Rate 3.50 9.00

62 Federal Tax Credits (maximum $1,300,000) 554,277 0 554,277

63 Federal Tax Credits Requested (if less than line 62) 554,277 554,277

64 Land Cost 425,000




Project Development Cost per unit 52,172 (16 of 21)4/14/2009 12:56:21 PM

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Market Study Information

Please provide a detailed description of the proposed project:
Henson Ridge a proposed 48 unit family community to be located in Albemarle. The property is located
beside the 2006 tax award property “Henson Place”. The proposed community will target families with
incomes between 40% and 60% of the median income limits. The community will consist of six two-story
building which will include 36 two bedroom units and 12 three bedroom units. Each apartment will include a
kitchen with range, hood, dishwasher, refrigerator (frost free), W/D hookups, mini blinds, pantry, walk-in
closets, central air, heat pump and storage; floor will be carpet and VCT.

Construction (check all that apply):

Brick Vinyl Wood HardiPlank Balconies/Patios Sunrooms Front Porches

Front Gables or Dormers Wide Banding or Vertical/Horizontal Siding

Our design incorporates the use of maintenance free materials with an eye towards a dynamic curb appeal.
Our plan expands on an architectural approach that uses broken roof lines and various elevation materials
to give a market rate appearance.

Have you built other tax credit developments that use the same building design as this project?Yes
If yes, please provide name and address:
Sutton Place
2303 Sutton Place NW-Bldg #700
Wilson, NC

Wyndsor Park
600 Wyndsor Park Circle
New Bern, NC

Westridge Place
100 Donner Drive
Salisbury, NC

Henson Place
710 Henson Place
Albemarle, NC 28001

Site Amenities:
The following site amenities will be available to the residents at Henson Ridge: tot lot, playground, covered
picnic areas with 2 tables and grills, covered patio on community building, resident computer center,
outdoor sitting with bench (3).

Onsite Activities:
Additional community activities, such as holiday parties, National Night Out annual cookout and
educational /informative meetings will be scheduled in the community room. All community space activities (17 of 21)4/14/2009 12:56:21 PM

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will be coordinated through our community building.

Landscaping Plans:
The property will provide trees and other landscape features where possible at select areas. The property
will be well landscaped with plant beds provided at various locations throughout the site. A detailed plan is
being prepared for final tax credit submission.

Interior Apartment Amenities:

Each apartment unit will be furnished with the following amenities: Range, hood, dishwasher, disposal,
refrigerator (frost free) storage interior/exterior, W/D hookups, heating/cooling systems, mini-blinds and
walk-in closets. The floor covering will consist of carpet and VCT.

Three of the handicap units will have ceramic tile roll-in showers.

Do you plan to submit additional market data (market study, etc.) that you want considered? No
If yes, please make sure to include the additional information in your pre-application packet. (18 of 21)4/14/2009 12:56:21 PM

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Applicant's Site Evaluation

Briefly describe your site in each of the following categories:


Trend and direction of real estate development and area economic health. Physical condition of buildings and
improvements in the immediate vicinity. Concentration of affordable housing.
The proposed Henson Ridge site is located directly beside the newly constructed “Henson Place” apartment
community and behind the Albemarle Shopping Center. The strip center consists of various stores such as
hair salon, grocery store, clothing stores, etc. Across the street from the site is a mobile home
manufacturing plant. Various single family homes exist just beyond the site on Henson. Albemarle has
grown substantially in the last 3 years including its’ newest addition of the Super Wal-mart center which is
located within a ½ mile from our site. Various other businesses have been added in the last 3 years along
with various hotels and restaurants. The development in this area is anticipated to grow even more with the
construction of the new Interstate 74 Corridor.


Land use pattern is residential in character (single and multifamily housing). Extent that the location is
isolated. Effect of industrial, large-scale institutional or other incompatible uses, including but not limited to:
wastewater treatment facilities, high traffic corridors, junkyards, prisons, landfills, large swamps, distribution
facilities, frequently used railroad tracks, power transmission lines and towers, factories or similar operations,
sources of excessive noise, and sites with environmental concerns (such as odors or pollution). Amount and
character of vacant, undeveloped land. The surrounding land use is retail and new growth large box retail.
Directly adjacent to the site is NC Vocational Rehab with a stable manufactured home commercial business
across the street. Directly down the street from the site are single family residential homes.

Adequate traffic safety controls (i.e. stop lights, speed limits, turn lanes). Burden on public facilities
(particularly roads). Access to mass transit (if applicable). Visibility of buildings and/or location of project sign
(s) in relation to traffic corridors. The site is relatively flat and does not appear to have any negative features.
It is directly accessed by the main artery to 24/27 which gives access to the surrounding community and
Degree of on-site negative features and physical barriers that will impede project construction or adversely
affect future tenants; for example: power transmission lines and towers, flood hazards, steep slopes, large
boulders, ravines, year-round streams, wetlands, and other similar features (for adaptive re-use projects-
suitability for residential use and difficulties posed by the building(s), such as limited parking, environmental
problems or the need for excessive demolition).
There are no negative features and physical barriers that will delay project construction or adversely affect
future tenants.

Similarity of scale and aesthetics/architecture between project and surroundings.

The use of two story buildings along with a creative spacious site layout gives a natural fit to the proposed
surrounding area. Our use of materials in construction of the facade will incorporate materials consistent
with the surrounding market. We will use a mix of brick and vinyl.

For each applicable neighborhood feature, enter distance from project in miles. (19 of 21)4/14/2009 12:56:21 PM

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.25 Grocery Store 3. Community/Senior Center

.25 Mall/Strip Center 3.5 Hospital

1. Outdoor Athletic .5 Pharmacy


1.5 Day Care/After .75 Basic Health Care


1. Public Transportation

.5 Convenience Store 1. Public Parks

.5 Gas Station 2.5 Library

Other facilities or services: (20 of 21)4/14/2009 12:56:21 PM

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Preliminary App Checklist

The following enclosures must be submitted along with your signed preliminary application. Some enclosures are required only under
certain conditions. Please check each applicable item to indicate that you understand the enclosure requirements and will enclose the
correct supporting documentation with your application.

Fee Payment
Check in the amount of $5,450.00 made payable to North Carolina Housing Finance Agency.
Tab A - Preliminary Application
Printed, signed copy of preliminary application generated from online system.
B - Map/Driving Instructions
A local map clearly identifying the location of the Site and detailed directions to the Site. Current City or County maps are preferred
– internet maps and directions are not acceptable. Applicant must also provide a map identifying the amenities listed in section IV
(A)(1)(b)(ii) of the QAP and their proximity to the site.

Applicant must provide a sign and boundary markers to clearly identify the road frontage of the site. The sign identifying the site
should read “SITE” with a minimum size of 11x17.
C - Community Revitalization Plan
Applicant should provide a map identifying the subject site within the Plan area (if applicable).
D - Evidence of Site Control
Provide valid option/contract or warranty deed and plot plan.
E - Site Plans/Scope of Work
Preliminary site plan, floor plans and elevations for all projects, interior and exterior photographs and detailed scope of work for
Adaptive Reuse and Rehab projects. Site and floor plans should be no larger than 11x17 and must be produced by a licensed
architect or engineer.
F - Information Package for Market Analysts
This section must include copies of items required in Tabs A, B, E and G (site and floor plans should be no larger than 11x17) and
can include any additional market information such as preliminary market studies the applicant would like to provide to the
G - Rent Roll (Rehabs only)
Provide the current rent roll for the property and indicate which units (if any) are receiving rental assistance.
H - Documentation for Basis Boost
Applicant should provide an appraisal and/or standard geological survey to support a request for the basis boost (if applicable). (21 of 21)4/14/2009 12:56:21 PM