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

Project Description
Project Name: Chowan Court I Apartments Address: City: 101 Davis Place Edenton County: Chowan Zip: 27932 Block Group: 6

Census Tract: 9901

Is project in Qualified Census Tract or Difficult to Develop Area? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: 1st Congressional District Last: Vaughn Title: Mayor 500 South Broad Street, P.O. Box 300 Edenton (252)482-2155 Zip: 27932

Jurisdiction CEO Name: First: Roland

Site Latitude: Site Longitude:

36.061996 -76.61996

Project Type: Rehab New Construction/Adaptive Reuse: Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project? If yes, list names of previous phase(s): Rehab: Is this project a previously awarded tax credit development? No If yes, what year were credits awarded?: Number of residents holding Section 8 vouchers: 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 Will the project include a Community Service Facility under IRS Revenue Ruling 2003-77? No If yes, please describe:

Target Population: Family Will the project be receiving project based federal rental assistance? Yes If yes, provide the subsidy source: HUD and number of units: 33 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: 0 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 5 Remarks: This is an existing project with no permanent displacement nor a great deal of turnover anticipated. The owner will make a good faith effort to give priority to the disabled or homeless subject to approval from HUD.

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: Address: City: Contact: Telephone: Alt Phone: Fax: Email Address: GDJ Developer, LLC P.O. Box 25168 Winston-Salem First: Gaye (336)231-8125 (336)765-0424 (336)765-3831 State: NC Zip: 27114-5168 Last: Morgan Title: Member

NOTE: Email Address above will be used for communication between NCHFA and Applicant.

Site Description
Total Site Acreage: 6.16 Total Buildable Acreage: 6.16 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? Yes If yes: (a) Briefly describe the situation: Annualized occupancy for 2006 was 97%. It is anticipated that displacement will be limited to temporary moves to other vacant units within the project while rehabilitation of units is completed. This will serve to limit the inconvenience and disruption to the residents and increase the likelihood that residents will remain in the property, thus reducing vacancy loss. Temporary relocation in the project will be necessary in order to abate and/or encapsulate asbestos tile flooring and for the installation of major mechanicals and HVAC equipment.

(b) Will tenant displacement be temporary? Yes (c) Will tenant displacement be permanent? No 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:

(b) Describe flood mitigation if the project will have improvements within the 100 year floodplain:

Site Control
Does the owner have fee simple ownership of the property (site/buildings)? Yes If yes provide: Purchase Date: 7/6/2005 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:

Purchase Price: 428,463

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

Present zoning classification of the site: R5 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 review? No If yes, describe below:

Are there any existing conditions of environmental significance located on the project site? Yes If yes, describe below: Asbestos Tile Flooring

Ownership Entity
Owner Name: Chowan Court I, LLC Address: City: P.O. Box 25168 Winston-Salem State: NC Zip: 27114-5168 20-2943144 (If assigned)

Federal Tax ID Number of Ownership Entity:

Note: Do not submit social security numbers for individuals. Entity Type: Limited Liability Company Entity Status: Already Formed Is the applicant requesting that the Agency treat the application as Non-Profit sponsored? Is the applicant requesting that the Agency treat the application as CHDO sponsored?

No No

List all general partners, members,and principals. Specify nonprofit corporate general partners or members. Click [Add] to add additional partners, members, and principals.


Chowan Court I, LLC Last Name: Morgan Function: Managing Member

First Name: Gaye Address: City: Phone: EMail: P.O. Box 25168 Winston-Salem (336)231-8125

State: NC

Zip: 27114-5168

Fax: (336)765-3831 Nonprofit: No


Chowan Court I, LLC Last Name: Eagan Function: Managing Member

First Name: David Address: City: Phone: EMail: P.O. Box 25168 Winston-Salem (336)231-8146

State: NC

Zip: 27114-5168

Fax: (336)765-3831 Nonprofit: No


Chowan Court I, LLC Last Name: Eagan, III Function: Managing Member

First Name: John Address: City: Phone: EMail: 218 North Main Street Mooresville (704)663-6392

State: NC

Zip: 28115

Fax: (704)663-4035 Nonprofit: No

Unit Mix
The Median Income for Chowan county is $47,100. Low Income Units Type Twn Hse Twn Hse Twn Hse Twn Hse Total # BRs Net Sq.Ft. # Units 2 3 2 3 874 1120 874 1120 14 18 11 6 # Units 0 0 0 0 Monthly Rent 387 399 485 618 Electric Utility Allowance 108 117 108 117 Gas Mandatory Serv. Fees 0 0 0 0 Other Trash Collection **Total Housing Exp. 495 516 593 735

Utilities included in rents:


Employee Units (will add to Low Income Unit total) Type # BRs Net Sq.Ft. Total # Units # Units Monthly Rent Electric Utility Allowance Gas Other Mandatory Serv. Fees **Total Housing Exp.

Utilities included in rents:


Market Rate Units Type Twn Hse Total # BRs Net Sq.Ft. # Units 3 1120 1 # Units 0 Monthly Rent 399 Electric Utility Allowance 117 Gas Mandatory Serv. Fees 0 Other Trash Collection **Total Housing Exp. 516

Utilities included in rents:


Statistics All Units Low Income....... Market Rate....... Totals............... 49 1 50 Gross Monthly Rental Income 21643 399 22042

Units 0 0 0

Proposed number of residential buildings: 9 Project Includes:

Maximum number of stories in buildings: 2

Separate community building - Sq. Ft. (Floor Area): 2,436 Community space within residential bulding(s) - Sq. Ft. (Floor Area): Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 52,286

Total Net Sq. Ft. (All Heated Areas): 46,330



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.

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 2 2 3 3 10 14 10 15

Units targeted at 50 targeted at 60 targeted at 50 targeted at 60

% percent of median income affordable to percent of median income affordable to/occupied by percent of median income affordable to percent of median income affordable to/occupied by

Total Low Income Units:


Note: This number should match the total number of low income units in the Unit Mix section.

Funding Sources
NonAmortizing* Rate (%) Term (Years) Amort. Period (Years) Annual Debt Service

Source Bank Loan RPP Loan 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) State Tax Credit(Direct Refund) Equity: Federal LIHTC Non-Repayable Grant Equity: Historic Tax Credits Deferred Developer Fees Owner Investment Other - Specify: Total Sources**








* "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. 89 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) It is anticipated that either Enterprise Social Investment Corporation or Raymond James Tax Credit Fund will provide equity to the property; both of which have requested the opportunity to do so.

Development Costs
Item Cost Element 1 Purchase of Building(s) (Rehab / Adaptive Reuse only) 2 Demolition (Rehab / Adaptive Reuse only) 3 On-site Improvements 4 Rehabilitation 5 Construction of New Building(s) 6 Accessory Building(s) 7 General Requirements 8 Contractor Overhead 9 Contractor Profit 10 Construction Contingency 11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 12 Architect's Fee - Inspection 13 Engineering Costs SUBTOTAL (lines 1 through 13) 14 Construction Insurance (prorate) 15 Construction Loan Orig. Fee (prorate) 16 Construction Loan Interest (prorate) 17 Construction Loan Credit Enhancement (prorate) 18 Construction Period Taxes (prorate) 19 Water, Sewer and Impact Fees 20 Survey 21 Property Appraisal 22 Environmental Report 23 Market Study 24 Bond Costs 25 Bond Issuance Costs 26 Placement Fee 27 Permanent Loan Origination Fee 28 Permanent Loan Credit Enhancement 29 Title and Recording SUBTOTAL (lines 14 through 29) 30 Real Estate Attorney 31 Other Attorney's Fees 32 Tax Credit Application Fees (Preliminary and Full) 33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 34 Cost Certification / Accounting Fees 35 Tax Opinion 36 Organizational (Partnership) 37 Tax Credit Monitoring Fee SUBTOTAL (lines 30 through 37) 38 Furnishings and Equipment 39 Relocation Expense 40 Developer's Fee 41 42 44 45 Other Basis Expense (specify) Other Basis Expense (specify) 65,000 Other Non-basis Expense (specify) Other Non-basis Expense (specify) 10,257 146,557 30,000 10,000 2,200 33,490 10,000 750 1,000 27,500 114,940 50,000 100,000 534,339 9,339 50,000 100,000 525,000 10,000 30,000 10,000 8,000 2,500 6,500 5,500 8,000 4,200 8,000 2,500 6,500 5,500 8,000 4,200 195,000 153,389 54,197 216,789 168,107 40,000 20,000 30,000 3,717,729 7,800 31,400 62,400 7,800 31,400 62,400 195,000 153,389 54,197 216,789 168,107 40,000 20,000 30,000 TOTAL COST 233,463 86,000 322,500 2,198,284 Eligible Basis 30% PV 70% PV 233,463 86,000 322,500 2,198,284

43 Rent-up Expense

SUBTOTAL (lines 38 through 45) 46 Rent up Reserve 47 Operating Reserve 48 49 Other Reserve (specify) Rental Subsidy Deficit Reserve Other Reserve (specify) Initial Replacement Reserve

749,339 15,000 115,435 50,000 150,000 5,059,000 242,802 4,345,566

50 DEVELOPMENT COST (lines 1-49) 51 Less Federal Financing 52 Less Disproportionate Standard 53 Less Nonqualified Nonrecourse Financing 54 Less Historic Tax Credit (residential) 55 TOTAL ELIGIBLE BASIS 56 Applicable Fraction (percentage of LI Units) 57 Basis Before Boost 58 Boost for QCT/DDA (if applicable, enter 130%) 59 TOTAL QUALIFIED BASIS 60 Tax Credit Rate 61 Federal Tax Credits at Estimated Rate 62 Federal Tax Credits at 8.5% or 3.75% Max Federal Tax Credits (With Energy Star - Lesser of $8,500 per unit or 63 $800,000, w/o - Lesser of $8,000 per unit or $800,000) 64 Federal Tax Credits Requested 65 Land Cost 66 TOTAL REPLACEMENT COST FEDERAL TAX CREDITS IF AWARDED

0 4,588,368 98.00% 4,496,599 5,774,195 453,877 479,504 425,000 416,500 195,000 5,254,000 425,000 416,500 242,802 98% 237,945 100.00% 237,945 3.45 8,209 8,922 4,345,566 98% 4,258,654 130.00% 5,536,250 8.05 445,668 470,581

Comments: In an effort to reduce the likelihood of a possible conflict between the eligibility requirements for the HUD Section 8 and IRS Section 42 regs; the developer has elected to apply for tax credits on 98% of the units, rather than 100%. HUD Section 8 regs allow for occupancy of households up to 80% of median income. The developer deems it advisable to set-aside one unit in the unlikely event that an applicant with income exceeding 60% of income might qualify for section 8 assistance at some point in the future. At current rents, a two person household with income at 61% of median income would not qualify for rental assistance on a two bedroom unit as the unit rent is lower than the rent payable by the household at 30% of their income. An even greater difference occurs with a 3 person household on a three bedroom unit. Total Replacement Cost per unit: Federal Tax Credits (line 62) per unit: 94,521 9,590

Market Study Information

Please provide a detailed description of the proposed project: The proposed project will include the substantial rehabilitation of a 50-unit townhouse apartment complex developed in 1974 under the HUD 236 program. There are currently 9 residential buildings containing 25 - 2BR/1B units and 25 - 3BR/1B units. There is one small unconditioned building housing the maintenance shop. There is no on-site office, laundry, community space or common amenities. The buildings are structurally sound for the most part but suffer from age, obsolescence and lack of basic amenities such as air conditioning. The plans for the project include replacing and removing the old baseboard heating with high energy-efficient 13-seer heat pumps to provide for forced heat and air-conditioning, replacement of all existing roofs, replacing all windows with vinyl-clad insulated windows, replacing exterior doors, installing new storm doors and replacing the existing exterior lighting. Other significant repairs/replacements that must be addressed include CO/ALR devices being installed at all switches and receptacles due to aluminum branch wiring throughout the project, installation of GFI outlets in the kitchens and bathrooms as well as repairs to structural settlement observed in two of the buildings. To improve the appearance of the buildings, false gables will be added over the breezeways of the buildings, shutters will be installed on windows, deteriorated wood will be replaced with vinyl shake siding, existing exterior cable wiring will be removed, gutters and downspouts will be replaced, and new patios will be poured at the rear entrances to the units with new vinyl wrapped railing/fences around each patio. The interiors of the units require substantial renovation and modernization. While there have been some sporadic upgrades in some units over the years, all of the units require major replacements. As a result of a Phase I Environmental Assessment performed in 2004, asbestos was observed in all unit tile flooring which will require abatement and encapsulation during the rehabilitation of the units. All bathroom wall-hung sinks, tubs/showers, toilets, plumbing fixtures and cabinets will be replaced in all existing baths. A new half bath will be added in all of the three bedroom units. All bathrooms will be equipped with previously non-existent exhaust fans. The refrigerators and stoves in all units will be replaced with frost-free refrigerators with icemakers and stoves with self-cleaning ovens. New appliances will include a dishwasher and disposal. All cabinetry and countertops will require replacement due to age, appearance and condition. The floors in all units will be replaced with carpet in living areas and new vinyl in kitchens and baths. Interior walls will undergo sheetrock repairs and painting and all interior doors, frames and hardware will be replaced. All units will have new updated light fixtures and mini-blinds. In addition, the developer plans to construct a Community Center of approximately 2180 square feet, which will not only include a rental office, laundry and maintenance shop; but will provide ample space for resident activities. The plan includes computer lab, homework/reading library, activity/game room with TV area, arts and crafts area and an office for personnel coordinating afterschool/summer programs for the children living on the property as well as adult programs and activities. The community center will also have public restrooms and kitchenette. The property will employ an onsite manager and maintenance supervisor and as needed, part-time leasing and janitorial staff. Site improvements will include restoration of the parking lots including the installation of required curb cuts and ramping, new mail kiosks, sidewalk repairs/replacements, new playground equipment, picnic area with grill, fencing, much needed landscaping, and new signage. Existing clotheslines will also be removed from the property. It is the intent of the owner to rehab the project in accordance with Energy Star standards. For specific detail of planned rehabilitation of the physical aspects, see attached Scope of Work. The goal of the rehabilitation of Chowan Court I is to improve the quality of life of the residents not only through the physical improvement of their living environment but also in the provision of community services. The Town of Edenton shares this vision by their support of this application. Construction (check all that apply): Brick Vinyl Wood HardiPlank Balconies/Patios Sunrooms Front Porches

Front Gables or Dormers Other:

Wide Banding or Vertical/Horizontal Siding

Vinyl shutters, Vinyl clad insulated windows and Full view tempered glass storm doors.

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: Furnished Community Center/Building with kitchenette, computer lab, management, maintenance and service coordinator offices, fenced playground and tot lot, picnic shelter with grill and other recreational amenities.

Onsite Activities: Community Center is planned with part-time service coordinator. Service Coordinator to link programs available in the community for the residents. Particular emphasis to be placed on programs for children, including, but not limited to an After School/Summer program for children. A computer lab to be installed in the Community Center to allow residents to access the internet and to provide the necessary tools for computer related training and educational courses available in the community. Landscaping Plans: Existing lawns are mature but landscaping at the site is minimal. Plans include extensive foundation landscaping as well as numerous flowering trees throughout the property

Interior Apartment Amenities: 13 seer energy efficient heat pumps to provide central heating and air conditioning, stove with selfcleaning oven, frost-free refrigerator with ice-maker, dishwasher, disposal, carpet/vinyl flooring and storm doors.

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.

Applicant's Site Evaluation

Briefly describe your site in each of the following categories: NEIGHBORHOOD CHARACTERISTICS Trend and direction of real estate development and area economic health. Physical condition of buildings and improvements. Concentration of affordable housing. The property is located within a well established residential neighborhood that has remained relatively stable over the last 10 to 15 years. Most of the economic growth has been in other areas within Edenton. The physical condition of the buildings and improvements are functionally sound but suffer from obsolence. There is no concentration of affordable housing in the immediate area with the other affordable housing in Edenton being located outside of the surrounding neighborhood throughout the town.

SURROUNDING LAND USES AND AMENITIES Suitability of surrounding development. Land use pattern is residential in character (single and multifamily housing) with a balance of other uses (particularly retail and amenities). 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 property is located within a well established residential neighborhood. The areas to the immediate south and west of the property are comprised of single family housing. A small tract of vacant land adjoins north side of the property while more single family homes and undeveloped land adjoining Twiddy Avenue are to the east of the site. There are no large scale industrial, institutional or incompatable uses within the surrounding neighborhood. SITE SUITABILITY Adequate traffic controls (stop lights, speed limits, turn lanes, etc.). 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 property has public streets which adjoin three sides of the property. Twiddy Ave. is the most traveled of these streets as a connector to more major thoroughfares in Edenton. The surrounding roads that service the area contain adequate traffic controls, namely stop signs and pose no additional burdens on public facilities. The Town of Edenton has a very limited mass transit system that consists of a few trolleys through the more historical parts of town. The closest trolley stop is approximately 3/4 mile from the property. The buildings and project sign are clearly visible from the access points 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 major negative features or physical barriers that will impede rehabilitation of this property. The existence of asbestos in the floor tiles that will need to be removed will make the rehabilitation more difficult but does not present an obstacle to the successful completion of the proposed rehabilitation.

Similarity of scale and aesthetics/architecture between project and surroundings. The project is similar in construction to much of the surrounding residential housing.

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

2 2 3 10 3

Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools

3 2 4 2 2

Community/Senior Center Hospital Pharmacy Basic Health Care Medical Offices Bank/Credit Union Restaurants Professional Services Movie Theater Video Rental Public Safety (Fire/Police) Post Office

Public Transportation Stop 2 1 3 2 2 2 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools Other facilities or services: 2 2 2 3 2 1

Development Team
Provide contact information for development team members below: Management Agent Company: Community Management Corporation Address: City: Phone P. O. Box 25168 Winston-Salem (336)231-8146 State: NC Zip: 27114-5168 Email: Last: Eagan

Contact Name: First: David

Architect Company: Address: City: Phone

Ross/Deckard Architects, PA 3200 Atlantic Avenue, Suite 110 Raleigh (919)875-0001 State: NC Zip: 27604 Email: Last: Ross

Contact Name: First: J. R.

Attorney Company: Address: City: Phone

Blanco, Tackabery, Combs & Matamoros 110 South Stratford Road Winston-Salem (336)293-9013 State: NC Zip: 27104 Email: Last: Matamoros

Contact Name: First: Ron

Investor Company: Address: City: Phone

Raymond James Tax Credit Fund 880 Carillon Parkway St. Petersburg (727)567-8455 State: FL Zip: 33716 Email: craig.descalzi@raymondjames.c Last: Descalzi

Contact Name: First: Craig

Consultant/Application Preparer (if different from developer) Company: Address: City: Phone Contact Name: First: State: Email: Last: Zip:

Identity of Interest? General Contractor Company: Mutual Builders, Inc. Address: City: Phone P.O. Box 270 Smithfield (919)934-0882 State: NC Zip: 27577 Email: millard.stallings@mutualbuilders Last: Stallings

Contact Name: First: Millard

Projected Operating Costs

Project Operations (Year One) Administrative Expenses Advertising Office Salaries Office Supplies Office or Model Apartment Rent Management Fee Manager or Superintendent Salaries Manager or Superintendent Rent Free Unit Legal Expenses (Project) Auditing Expenses (Project) Bookkeeping Fees/Accounting Services Telephone and Answering Service Bad Debts Other Administrative Expenses (specify): Criminal/Credit/Dues/Mileage/Training/Computer Software SUBTOTAL Utilities Expense Fuel Oil Electricity (Light and Misc. Power) Water Gas Sewer SUBTOTAL Operating and Maintenance Expenses Janitor and Cleaning Payroll Janitor and Cleaning Supplies Janitor and Cleaning Contract Exterminating Payroll/Contract Exterminating Supplies Garbage and Trash Removal Security Payroll/Contract Grounds Payroll Grounds Supplies Grounds Contract Repairs Payroll Repairs Material Repairs Contract Elevator Maintenance/Contract Heating/Cooling Repairs and Maintenance Swimming Pool Maintenance/Contract Snow Removal Decorating Payroll/Contract Decorating Supplies Other (specify): Miscellaneous Operating & Maintenance Expenses SUBTOTAL Taxes and Insurance Real Estate Taxes Payroll Taxes (FICA) 6,000 1,500 2,400 1,200 1,800 12,000 18,000 2,000 1,800 10,200 30,600 1,200 600 2,600 900 120 2,400 1,500 3,500 600 3,200 21,600 18,000

1,200 7,200 2,400

3,600 62,800

10,600 9,800

1,000 55,520 12,000 4,800

Miscellaneous Taxes, Licenses and Permits Property and Liability Insurance (Hazard) Fidelity Bond Insurance Workmen's Compensation Health Insurance and Other Employee Benefits Other Insurance: SUBTOTAL Supportive Service Expenses Service Coordinator Service Supplies Tenant Association Funds Other Expenses (specify): Training/Mileage SUBTOTAL Reserves Replacement Reserves SUBTOTAL TOTAL OPERATING EXPENSES ADJUSTED TOTAL OPERATING EXPENSES (Does not include taxes, reserves and resident support services) * TOTAL UNITS (from total units in the Unit Mix section) PER UNIT PER YEAR 9,000 250 1,200 5,200

32,450 12,000 800 500 700 14,000 17,500 17,500 212,870 169,370 50 3,387

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): Late Charges/NSF/Interest Income Total Gross Income Potential at 100% Occupancy Seven Percent Vacancy Allowance NET RENTAL/OTHER INCOME TOTAL OPERATING EXPENSES (from Projected Operating Costs) NET OPERATING INCOME DEBT SERVICE (from Funding Sources Loans) NET CASH FLOW DEBT COVERAGE RATIO (Must not be less than 1.15) 7,500 3,500 275,504 19,285 256,219 264,504

212,870 43,349


20-Year Cash Flow

Year Net Rental/Other Income* Total Operating Expenses* Debt Service Net Cash Flow Debt Coverage Ratio Year Net Rental/Other Income* Total Operating Expenses* Debt Service Net Cash Flow Debt Coverage Ratio 11 344,337 315,100 0 29,237 0 1 256,219 212,870 0 43,349 0 12 354,667 327,704 0 26,963 0 2 263,906 221,385 0 42,521 0 13 365,307 340,812 0 24,495 0 3 271,823 230,240 0 41,583 0 14 376,266 354,444 0 21,822 0 4 279,978 239,450 0 40,528 0 15 387,554 368,622 0 18,932 0 5 288,377 249,028 0 39,349 0 16 399,181 383,367 0 15,814 0 6 297,028 258,989 0 38,039 0 17 411,156 398,702 0 12,454 0 7 305,939 269,349 0 36,590 0 18 423,491 414,650 0 8,841 0 8 315,117 280,123 0 34,994 0 19 436,196 431,236 0 4,960 0 9 324,571 291,328 0 33,243 0 20 449,282 448,485 0 797 0 10 334,308 302,981 0 31,327 0

* Net Rental Income escalated at annual rate of 3% and expenses escalated at a rate of 4% after the first year.

1. "Net Rental/Other Income" comes from 1st-year cash flow, then it is escalated by 3% per year. 2. "Total Operating Expenses" comes from 1st-year cash flow, then it is escalated by 4% per year. 3. "Debt Service" is the sum of "regular/amortized loan debt service + non-amortizing annual service" as entered by user from Funding Sources section. 4. "Net Cash Flow" is "Net Rental/Other Income" minus "Total Operating Expenses" minus "Debt Service". 5. "Debt Coverage Ratio" is ("Net Rental/Other Income" minus "Total Operating Expenses") divided by "Debt Service".

Minimum Set-Asides
MINIMUM REQUIRED SET ASIDES (No Points Awarded): Select one of the following two options: 20% of the units are rent restricted and occupied by households with incomes at or below 50% of the median income (Note: No Tax Credit Eligible Units in the the project can exceed 50% of median income) 40% of the units are rent restricted and occupied by households with incomes at or below 60% of the median income (Note: No Tax Credit Eligible Units in the the project can exceed 60% of median income) If requesting RPP funds: 40% of the units are occupied by households with incomes at or below 50% of median income.

State Tax Credit and QAP Targeting Points: Low Income County: At least forty percent (40%) of qualified units will be affordable to households with incomes at or below fifty percent (50%) of county median income. At least forty percent (40%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income.

Tax Exempt Bonds Threshold requirement (select one): At least ten percent (10%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income. At least five percent (5%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income. Eligible for targeting points (select one): At least twenty percent (20%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income. At least ten percent(10%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income.

Full Application Checklist

PLEASE indicate which of the following exhibits are attached to your application. Others may be required as noted. A Nonprofit Organization Documentation or For-profit Corporation Documentation B Current Financial Statements/Principals and Owners (signed copies) C Ownership Entity Agreement, Development Agreement or any other agreements governing development services D Management Agent Agreement E Owner and Management Experience & Management Questionnaire (Appendix C) F Letters from State Housing Agencies or designated monitoring agent verifying out of state experience G Completed IRS Form 8821 (Appendix I) H Local Government Letter or Letter from Certified Engineer or Land Surveyor Confirming Floodplain Designation with Map showing all flood zones (original on letterhead, no fax or photocopies) I Local Government Letter Confirming Zoning including any pending notices or hearings (original on letterhead, no fax or photocopies) J Letters from Local Utility Providers regarding availability and capacity (original on letterhead, no fax or photocopies) K Documentation from utility company or local PHA to support estimated utility costs L Appraisal (required for land costs greater than $15,000 and for all Adaptive Re-use and Rehab projects) M Site plan, floor plans and elevations for all projects. Scope of work for Adaptive Re-use and Rehab projects. (Full Size, 24 x 36 inches) N Hazard and structural inspection and termite reports (Adaptive Re-use and Rehab projects only) O Copy of certificate of occupancy or proof of placed-in-service date (Rehabs Only) P Proposed Relocation Plan including relocation budget and copies of notices. Required for all Rehabs and any projects involving existing occupants of any dwellings to be rehabbed or demolished. Q Evidence of Permanent Loan Commitment and other sources of funds ( i.e. Equity letter, AHP, RD and local government funds). For Rehabs with existing loans provide 1) copies of loan documents, 2) current loan balances from existing lenders with reserve balances, 3) letter from lender that outlines assumption requirements. R Local Housing Authority Agreement and Project Based Rental Assistance Letter, if applicable (Sample letters provided in Appendix I). For projects with existing PBRA contracts, provide a copy of the current contract and bank statement or other documentation verifying reserve balances and annual reserve contribution requirements. S Statement regarding terms of Deferred Developer Fee. If a nonprofit is involved, a resolution from their board approving deferral of fee is required. T Inducement Resolution (Tax-Exempt Bond Financed Projects only)