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

Project Description
Project Name: Walnut Grove
Address: 1228 S Eugene Street

City: Greensboro County: Guilford Zip: 27406

Census Tract: 114 Block Group: 1

Is project in Qualified Census Tract or Difficult to Develop Area? Yes

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

Political Jurisdiction: City of Greensboro

First:Yvonne Last:
Jurisdiction CEO Name: Title: Mayor
Jurisdiction Address: PO Box 3136

Jurisdiction City: Greensboro Zip: 27402-3136

Jurisdiction Phone: (336)373-2396

Site Latitude: 36.059196

Site Longitude: -79.793773

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? No

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

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 12:55:39 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 12:55:39 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: Metropolitan Housing & CDC, Inc.
Address: PO Box 1706

City: Washington State: NC Zip: 27889

Contact: First: David Last:Moore Title:President

Telephone: (252)975-9503

Alt Phone: (252)946-1668

Fax: (252)946-8537

Email Address:

NOTE: Email Address above will be used for communication between NCHFA and Applicant. (3 of 21)4/14/2009 12:55:39 PM

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Site Description

Total Site Acreage: 4.68 Total Buildable Acreage: 4.68

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? Yes

If yes, please describe:
All building will be completely removed to construction new units.

Are existing buildings on the site currently occupied? Yes

If yes:
(a) Briefly describe the situation:
All buildings will be demo and 84 new units will be built.

(b) Will tenant displacement be temporary? No

(c) Will tenant displacement be permanent? Yes

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 12:55:39 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 12:55:39 PM

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Site Control
Does the owner have fee simple ownership of the property (site/buildings)?Yes

If yes provide:

Purchase Date: 1/1/1971 Purchase Price: 0

If no:
(a) Does the owner/principal or ownership entity have valid option/contract to purchase the property?
(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?
If yes, specify the relationship:

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

(D) Enter Purchase Price: (6 of 21)4/14/2009 12:55:39 PM

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Present zoning classification of the site:RM-12

Is multifamily use permitted?Yes

Are variances, special or conditional use permits or any other item requiring a public hearing needed to develop this proposal?No
If yes, have the hearings been completed and permits been obtained?
If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for
obtaining them:

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 12:55:39 PM

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Ownership Entity

Owner Name: Walnut Grove LLC

Address: PO Box 1706
City: Washington State:NC Zip: 27889

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

Note: Do not submit social security numbers for individuals.
Entity Type: Limited Partnership
Entity Status: To Be Formed
Is the applicant requesting that the Agency treat the application as Non-Profit sponsored? Yes
Is the applicant requesting that the Agency treat the application as CHDO sponsored? Yes
List all general partners, members,and principals. Specify nonprofit corporate general partners or members.
Click [Add] to add additional partners, members, and principals.

Org: Metrolpolitan Housing & CDC

First Name: David Last Name: Moore Function: Managing General Partner
Address: PO Box 1706
City: Washington State: NC Zip: 27889

Phone: (252)975-9503 Fax: (252)946-8537

EMail: Nonprofit: Yes

Org: St. James Homes Inc.

First Name: Skip Last Name: Austin Function: Principal
Address: 1228 S. Eugene Street
City: Greensboro State: NC Zip: 27406

Phone: (336)275-4572 Fax: (336)379-7945

EMail: Nonprofit: Yes (8 of 21)4/14/2009 12:55:39 PM

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Unit Mix
The Median Income for Guilford county is $58,500.

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 16 5 340 130 0 470

Gdn Apt 2 950 37 0 465 130 0 595

Gdn Apt 2 950 13 0 475 130 0 605

Gdn Apt 3 1125 5 5 425 155 0 580

Gdn Apt 3 1125 5 0 545 155 0 700

Gdn Apt 3 1125 8 0 575 155 0 730

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....... 84 10 38270

Market Rate.......

Totals............... 84 10 38270

Proposed number of residential buildings: 2 Maximum number of stories in buildings: 3

Project Includes:
Separate community building - Sq. Ft. (Floor Area): 1,336 (9 of 21)4/14/2009 12:55:39 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: 93,557

Total Net Sq. Ft. (All Heated Areas): 84,286

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: 5

Number of Units Required: 10

Persons with disabilities or homeless populations.

Number of Units: 10

** 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 12:55:39 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 16 targeted at 40 percent of median income affordable to/occupied by

2 37 targeted at 50 percent of median income affordable to/occupied by

2 13 targeted at 60 percent of median income affordable to/occupied by

3 5 targeted at 40 percent of median income affordable to/occupied by

3 5 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: 84

Note: This number should match the total number of low income units in the Unit Mix section. (11 of 21)4/14/2009 12:55:39 PM

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Funding Sources

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

Bank Loan 817,544 7.50 30 30 68,597

RPP Loan 800,000 ✔ 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) 804,896 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 6,334,119

Non-Repayable Grant

Equity: Historic Tax Credits

Deferred Developer Fees

Owner Investment

Other - Specify:

Total Sources** 8,756,559

* "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 12:55:39 PM

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At the end of 20 years there will be a RPP balloon payment of approxmately 569,697

Loans with Variable Amortization

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

RPP Loan

1 2 3 4 5 6 7 8 9 10
Amt: 42984 42253 41414 40462 39392 38199 36876 35418 33818 32070
11 12 13 14 15 16 17 18 19 20
Amt: 30167 28102 25868 23458 20863 18076 15088 11890 8473 4829 (13 of 21)4/14/2009 12:55:39 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) 348,000 348,000

3 On-site Improvements 350,000 350,000

4 Rehabilitation

5 Construction of New Building(s) 4,851,500 4,851,500

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

7 General Requirements (max 6% lines 2-6) 341,970 341,970

8 Contractor Overhead (max 2% lines 2-7) 120,829 120,829

9 Contractor Profit (max 8% lines 2-7; 6% if Identity of Interest) 362,488 362,488

10 Construction Contingency (max 5% lines 2-9, Rehabs 10%) 326,239 326,239

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 180,351 180,351

12 Architect's Fee - Inspection 25,180 25,180

13 Engineering Costs 30,000 30,000

SUBTOTAL (lines 1 through 13) 7,086,557

14 Construction Insurance (prorate) 30,860 30,860

15 Construction Loan Orig. Fee (prorate) 41,642 41,642

16 Construction Loan Interest (prorate) 161,943 153,846

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate) 27,535 27,535

19 Water, Sewer and Impact Fees

20 Survey 10,000 10,000

21 Property Appraisal 6,000 6,000

22 Environmental Report 8,500 8,500

23 Market Study 4,300 4,300

24 Bond Costs

25 Bond Issuance Costs

26 Placement Fee

27 Permanent Loan Origination Fee 13,776

28 Permanent Loan Credit Enhancement (14 of 21)4/14/2009 12:55:39 PM

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29 Title and Recording 3,500

SUBTOTAL (lines 14 through 29) 308,056

30 Real Estate Attorney 25,000 25,000

31 Other Attorney's Fees 35,000 35,000

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

33 Tax Credit Allocation Fee (0.62% of line 60, minimum $7,500) 65,147

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

35 Tax Opinion 3,500

36 Organizational (Partnership) 2,500

37 Tax Credit Monitoring Fee 58,800

SUBTOTAL (lines 30 through 37) 200,747

38 Furnishings and Equipment 45,000 45,000

39 Relocation Expense

40 Developer's Fee 600,000 600,000

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

42 Other Basis Expense (specify)

43 Other Basis Expense (specify)

44 Rent-up Expense 20,000

45 Other Non-basis Expense (specify)

46 Other Non-basis Expense (specify)

SUBTOTAL (lines 38 through 45) 665,000

47 Rent up Reserve 25,200

48 Operating Reserve 208,696

49 Other Reserve (specify)

50 Other Reserve (specify)

51 DEVELOPMENT COST (lines 1-49) 8,494,256 0 8,082,740

52 Less Federally Funded Grant

53 Less Disproportionate Standard

54 Less Nonqualified Nonrecourse Financing

55 Less Historic Tax Credit 0

56 TOTAL ELIGIBLE BASIS 8,082,740 0 8,082,740

57 Applicable Fraction (percentage of LI Units) 100.00% 100% 100% (15 of 21)4/14/2009 12:55:39 PM

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58 Basis Before Boost 8,082,740 0 8,082,740

59 Basis Boost of up to 130% 100.00% 130.00%

60 TOTAL QUALIFIED BASIS 10,507,562 0 10,507,562

61 Tax Credit Rate 3.50 9.00

62 Federal Tax Credits (maximum $1,300,000) 945,681 0 945,681

63 Federal Tax Credits Requested (if less than line 62) 945,681 945,681

64 Land Cost 262,303




Project Development Cost per unit 57,756 (16 of 21)4/14/2009 12:55:39 PM

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Market Study Information

Please provide a detailed description of the proposed project:
Walnut Grove is a proposed 84 unit family community to be located in Greensboro. The proposed
community will target families with incomes between 40% and 60% of the median income limits. The
community will consist of nine two-story building which will include 66 two bedroom units and 18 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?No
If yes, please provide name and address:

Site Amenities:
The following site amenities will be available to the residents: tot lot, covered patio with seating, playground,
covered picnic area with tables and grill, resident computer center and outdoor sitting areas with benches.

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
will be coordinated through our community building. (17 of 21)4/14/2009 12:55:39 PM

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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.

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 12:55:39 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.
Walnut Grove is located int eh South Elm Street Redevelopment district in Greensboro, NC. This area will
provide an attractive welcome to downtown. This area will be vistor's first view of downtown from two major
highways. The goal of this plan will be to convey a positive first impression. Our site formally known as "St.
James Homes" will fit nicely into surrounding residential and commercial both now and as the
redevelopment plan moves forward.


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 suitable to the subject property with a
mix of commerical and residential use which further compliments the site.

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. There are no negative features and physcial barriers that will delay project
construction or adversely affect future tenants.
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).

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

The poropsed porject will blend with the neighborhood and surroundings.

For each applicable neighborhood feature, enter distance from project in miles.

1 Grocery Store 4 Community/Senior Center (19 of 21)4/14/2009 12:55:39 PM

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1 Mall/Strip Center 4 Hospital

1 Outdoor Athletic 1 Pharmacy


.5 Day Care/After 1 Basic Health Care


0 Public Transportation
1 Schools

.5 Convenience Store 1 Public Parks

.5 Gas Station 3 Library

Other facilities or services: (20 of 21)4/14/2009 12:55:39 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 12:55:39 PM