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

Project Description
Project Name: Glen Rock Address: City: Depot Street Asheville County: Buncombe Zip: 28801 Block Group: 3

Census Tract: 9

Is project in Qualified Census Tract or Difficult to Develop Area? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: City of Asheville Last: Bellamy Title: Mayor PO Box 7148 Asheville (828)259-5604 Zip: 28802

Jurisdiction CEO Name: First: Terry

Site Latitude: Site Longitude:

35.58 -82.56

Project Type: New Construction 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): Rehab: Is this project a previously awarded tax credit development? If yes, what year were credits awarded?: Number of residents holding Section 8 vouchers: Will the project meet Energy Star standards as defined in Appendix B? Yes Does a community revitalization plan exist? Yes Will the project use steel and concrete construction and have at least 4 stories? Yes Will the project include a Community Service Facility under IRS Revenue Ruling 2003-77? Yes If yes, please describe: A 3,000+ square foot Community Services Facility will be offered at the Glen Rock. The Community Service Facility that will be constructed at the Glen Rock will meet all of the stated criteria of IRS Section 42. We plan to offer the following at the Glen Rock Community Services Facility: 1) after school tutoring and arts programs for children & high school youth; 2)health screenings and health services; 3) GED training; 4) ESL training; 5) financial literacy programs; and 6) homebuyer education. The CSF will be located centrally in the building and will have four levels. Level one will house the leasing office and a lobby. Level two will house a 1,622 community room with a full kitchen. Level three will have a small lobby, and level four will have a second large community room of 1,700 sf and a library. Level four will open into the large interior courtyard of 5,889 square feet. All levels will be connected by an elevator and stairs.

Target Population: Family Will the project be receiving project based federal rental assistance? No If yes, provide the subsidy source: and number of units:

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 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 6 Remarks: Targeting will comply with NCHFA rules regarding providing units for both mobility impaired and disabled residents.

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: (828)254-0120 cindy@mtnhousing.org Mountain Housing Opportunities, Inc. 64 Clingman Avenue, Suite 101 Asheville First: Cindy (828)254-4030 State: NC Zip: 28801 Last: Visnich-Weeks Title: Community Investments Manager

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

Site Description
Total Site Acreage: 1.0762 Total Buildable Acreage: 1.0762 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: Two small dilapidated and unoccupied buildings are scheduled for demolition at the site in January 2007.

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:

(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: 3/12/2006 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: 550,000

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

Zoning
Present zoning classification of the site: Urban Place 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? Yes If yes, have the hearings been completed and permits been obtained? Yes If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for obtaining them: Permitted on April 12, 2005

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? No If yes, describe below:

Ownership Entity
Owner Name: Glen Rock Properties, LLC Address: City: 64 Clingman Avenue, Suite 101 Asheville State: NC Zip: 28801 (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?

Yes 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:

Mountain Housing Opportunities, Inc. Last Name: Visnich-Weeks Function: Managing Member

First Name: Cindy Address: City: Phone: EMail:

64 Clingman Avenue, Suite 101 Asheville (828)254-4030 cindy@mtnhousing.org State: NC Fax: (828)254-0120 Nonprofit: Yes Zip: 28801

Unit Mix
The Median Income for Buncombe county is $50,800. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt # BRs Net Sq.Ft. 1 1 1 2 2 2 3 3 3 706 706 706 1022 1022 1022 1213 1213 1213 Total # Units 9 7 11 5 8 14 2 1 3 # Units 1 1 1 1 1 0 1 0 0 Monthly Rent 304 398 469 355 468 521 411 542 673 Electric Utility Allowance 74 74 74 99 99 99 113 113 113 Gas Other Mandatory Serv. Fees 0 0 0 0 0 0 0 0 0 **Total Housing Exp. 378 472 543 454 567 620 524 655 786

Utilities included in rents:

Water/Sewer

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:

Water/Sewer

Market Rate Units Type # BRs Net Sq.Ft. Total # Units # Units Monthly Rent Utility Allowance Gas Other Mandatory Serv. Fees **Total Housing Exp.

Utilities included in rents:

Water/Sewer

Electric

Statistics All Units Low Income....... Market Rate....... Totals............... 60 6 26877 60 Gross Monthly Rental Income 26877

Units 6

Proposed number of residential buildings: 1 Project Includes:

Maximum number of stories in buildings: 5

Separate community building - Sq. Ft. (Floor Area): Community space within residential bulding(s) - Sq. Ft. (Floor Area): 3,000 Elevators - Number of Elevators: 1

Square Footage Information Gross Floor Square Footage: 86,399

Total Net Sq. Ft. (All Heated Areas): 78,757

Notes ** 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.

Targeting
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 1 1 1 2 2 2 3 3 3 9 7 11 5 8 14 2 1 3

Units targeted at 40 targeted at 50 targeted at 60 targeted at 40 targeted at 50 targeted at 60 targeted at 40 targeted at 50 targeted at 60

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

Total Low Income Units:

60

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: Local HOME RD 515 Loan RD 538 Loan - Specify: AHP Loan Other Loan 1 - Specify: Asheville Housing Trust Fund Other Loan 2 - Specify: Buncombe County 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**

Amount

349,074

2.00

20

20

500,000 70,000

2.00 2.00

20 20

20 20

1,642,806

30

30

4,615,038

7,176,918

* "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. 905 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) Funding Source for Local HOME: Asheville Regional Housing Consortium Funding Source for Asheville Housing Trust Fund: City of Asheville

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

Local Gov. Loan - Local HOME Year: Amt: Year: Amt: 1 21000 11 10500 2 21000 12 9000 3 20000 13 7000 4 19500 14 5000 5 18500 15 2000 6 17500 16 0 7 16500 17 0 8 15500 18 0 9 14000 19 0 10 12500 20 0

Other Loan 1 - Asheville Housing Trust Fund Year: Amt: Year: Amt: 1 30000 11 30000 2 30000 12 30000 3 30000 13 30000 4 30000 14 30000 5 30000 15 30000 6 30000 16 29500 7 30000 17 27000 8 30000 18 23500 9 30000 19 20500 10 30000 20 17000

Other Loan 2 - Buncombe County Year: Amt: Year: Amt: 1 0 11 0 2 0 12 0 3 0 13 0 4 0 14 0 5 0 15 0 6 0 16 0 7 0 17 0 8 0 18 0 9 0 19 0 10 0 20 0

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) 30,000 Other Non-basis Expense (specify) Other Non-basis Expense (specify) 500,000 500,000 33,000 118,841 60,000 60,000 372,420 15,000 15,000 2,200 47,641 6,000 6,000 15,000 15,000 16,200 40,000 3,500 5,000 1,500 4,120 16,200 40,000 3,500 5,000 1,500 4,120 5,350,066 2,100 40,000 260,000 2,100 40,000 260,000 259,500 91,690 366,760 151,289 135,427 20,400 259,500 91,690 366,760 151,289 135,427 20,400 4,075,000 4,075,000 250,000 250,000 TOTAL COST Eligible Basis 30% PV 70% PV

43 Rent-up Expense

SUBTOTAL (lines 38 through 45) 46 Rent up Reserve 47 Operating Reserve 48 49 Other Reserve (specify) Other Reserve (specify)

590,000 25,591 170,000

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

6,626,918

6,318,486

0 6,318,486 0.00% 0 0 0 0 510,000 0 550,000 7,176,918 0 0% 0 130.00% 0 3.45 0 0 6,318,486 0% 0 130.00% 0 8.05 0 0

Comments: A Community Service Facility (CSF) will be constructed as part of this project and those costs will be subtracted from the Total Project Costs. After the CSF costs are subtracted, we will meet the $95,000 per unit requirement for construction.

Total Replacement Cost per unit: Federal Tax Credits (line 62) per unit:

106,522 0

Market Study Information

Please provide a detailed description of the proposed project: The Glen Rock is being planned as a sustainable, mixed-use community connecting the river arts district of Asheville, the hospital community; and the south French Broad community where single family homes, schools, services, offices, and businesses are located. The Glen Rock development will include the following: 1) Glen Rock Apartments (this application) which will be a newly built, mixed-use commercial-residential building offering 60 tax credit apartments and 25 market rate forsale condominiums; 2) the historic Glen Rock Hotel--an existing 1930's building which will be developed as offices and a large community space; and 3) the "corner market" which is a historic one-story commercial building currently operating as Asheville Packing Company. Located on the southern end of the Asheville river arts district, the Glen Rock development is linked to an existing community that consists of homeowners, renters, artists, and entrepreneurs. The development site is also connected to downtown Asheville (1.4 miles), the medical district (.9 miles) and Biltmore Village (1.5 miles). The development site is bound to the east by the south French Broad neighborhood, a dense single family & multi-family neighborhood with many well-kept homes and apartment buildings. The LIHTC component of the development, Glen Rock Apartments, will provide 60 units of affordable housing available to individuals and families at or below 60% of median income. We will offer 1,2, and 3 bedroom units. MHO will partner with a commercial developer to develop retail, studio, and office space in the Glen Rock Hotel and in the first and second floors of the new building. 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

The building will be V-shaped and situated inside the corner of three streets: Depot Street, Barlett Street, and Ralph Street. The street-side elevations of the building will be brick and concrete construction to mimic the industrial and river-front character of surrounding buildings. Architectural features will include a frieze above doorways and windows, bulkheads, large display windows, and french balconies on upper level apartments. The interior of the V will be constructed with more modern materials to reflect the distinctive character of the surrounding buildings. Materials will include steel, concrete, and glass. Finally, portions of the building will take advantage of green roof technologies to allow plantings. 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: Community Service Facility-3,000+ sf, sitting areas, covered parking, bike racks, bus shelter, exercise room, resident computer center, high speed internet and wi-fi access, flagpole, playground, garden spot, library, picnic area, interior/exterior protected terrace (5,889 sf) and recreation area, greenway, stream restoration, connection by greenway to planned single family homeownership units also constructed by MHO.

Onsite Activities: 1) after school tutoring and arts programs for children & high school youth; 2)health screenings and health services; 3) GED training; 4) ESL training; 5) financial literacy programs; 6) homebuyer education; and other activities as desired by residents.

Landscaping Plans: For this urban site, nontraditional landscaping will include streetscape trees and shrubs along sidewalks and walkways, above ground planters in open hardscape areas, a green roofing system on one portion of the roof, native plantings near the banks of the stream dissecting the site. An important feature will be pedestrian links between Ralph Street and Depot Street as shown on our site plan. A beautiful historic concrete bridge will provide a link both between the two streets as well as from the area between the newly constructed builing and the Glen Rock Hotel. As shown on our site plan, the "paper" street, Else Alley, will be reopened as a pedestrian walkway. Interior Apartment Amenities: Range, hood, dishwasher, disposal, refrigerator, storage, mini-blinds, ceiling fans, carpet, vinyl, ceramic tile, central air, heat pump, internet access.

Do you plan to submit additional market data (market study, etc.) that you want considered? Yes 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. An influx of local workers, artists, and urban dwellers is moving into this area. The city has created a string of public parks along the river and old manufacturing buildings are being converted into residential and live-work spaces by artists. The real estate community recognizes that as our downtown becomes built out, one of the few remaining and desirable areas of new growth is the riverfront area, and in particular the area surrounding the Glen Rock. Residential, commercial and arts develoment has grown by leaps and bounds over the past two years and will continue to accelerate with the city's new emphasis on rezoning these areas. After many decades of decline, we have seen buildings in the immediate area of the Glen Rock as well as the entire river district show remarkable and dramatic improvements. Now that Asheville's downtown is on a steady path of upward growth, attention has turned toward the "south slope" leading to the French Broad River, the River Arts District, and the medical district. Curve Studios, 12 Bones Cafe, the Clingman Cafe, the Wedge Arts Building, Ray Quate's development, Odyssey Art Center, Riverside Studios, Zona Lofts, and Mica Village are just a handful of the projects we have seen go forward or expand in the past two years between downtown and the river. The residential uses to the south, east, and north of the Glen Rock site are primarily market rate and a mix of single and multifamily housing. There is some public housing in the neighborhood, on the south and west sides of Livingston Street. The public housing located here is not densely developed and is well maintained. The W.C. Reid Center, which is between the Glen Rock and the public housing, is a City-operated flagship arts program for children. The City is currently investing over $3 million in the Reid Center and the activities there (including after school programs) will be available to Glen Rock residents. 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 surrounding land use is a healthy mix of residential, office, commercial, single family, business, and shopping. The city is currently rezoning the surrounding neighborhood and the entire river district to a mixed use overlay and mixed use zoning to encourage additional development like the Glen Rock and other new mixed use developments underway in the area. The train track near the Glen Rock carries 12 trains per day, and these are slow moving trains due to the proximity to the train roundhouse, located about 2 miles south. The area is currently in the process of becoming a "quiet zone" whereby the City will install gates at railroad crossings so that whistles do not need to be blown. The only whistle area near the site is far enough to not cause noise problems for the Glen Rock. The City has conducted a noise assessment using HUD specifications and has indicated that there is not excessive noise that exceeds HUD standards at the Glen Rock. The only vacant buildings in the immediate area are buildings that MHO owns on the site which will be demolished starting January 17, 2007. Other buildings in the neighborhood are being operated as businesses, art studios, medical offices, other offices, and homes. Please see attached map showing each building in the immediate area and showing its use. The only other undeveloped land in the immediate area are the parcels along Ralph Street and bordering the stream, Town Branch. MHO was selected by the City of Asheville as the master developer for these ten acres through a competitive RFQ process in September of 2006 and we will be developing 100+ homes on this site for mixed income homeownership modeled after our award winning Prospect Terrace project on Clingman Avenue. 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 Glen Rock has adequate traffic controls. The city has approved on-street parking on all sides of the development which will provide vitality to the street, support to the commercial tenants, and traffic calming. The Glen Rock and the signage proposed will be visible both on Depot Street, which is a traffic corridor feeding into the hospital complex, as well as from the Smokey Park Bridge entering Asheville from the west.

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). The boundary of the LIHTC development includes a small stream, Town Branch. As part of the overall project, we will clean up this stream and develop a greenway along it that has been identified on the City's Master Greenway Plan. This stream is planned as a natural amenity to the site. MHO has utilized streams and other water features on our sites for many years as constructed wetlands, planted detention ponds, recreation, and environmental education areas and we have won several awards for these endeavors. We will employ a team of landscape architects and seasoned stream restoration experts to assist in this aspect of the project.

Similarity of scale and aesthetics/architecture between project and surroundings. Both the scale and aesthetics of the proposed development are similar to surrounding properties. The facade of the building will mimic features of an adjacent building (the Glen Rock Hotel, circa 1930). Construction will include brick and other masonry materials included on many of the older buildings in the river arts district. In addition, the inclusion of residential living space above commercial space takes on the feel of similar rehabilitation projects in the area.

For each applicable neighborhood feature, enter distance from project in miles. 1.5 1.5 .01 .6 .6 .1 0 .01 .01 .01 1.5 .01 .5 Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools 1.5 .9 1 .5 .5 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 .3 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools .5 .5 1.5 1.5 .05 1

Other facilities or services: We would like to point out that the YWCA is located six tenths of a mile from the site and includes a 5 star rated daycare and after school center available with subsidy for children. Also at the YWCA is a fitness center and indoor pool. Livingston Park is located adjacent to the site and includes tennis courts, a fitness trail, and a well maintained and well used baseball diamond. City leagues play ball on this field every day in the spring, summer and fall. A public outdoor pool is on Walton Street, about one-half mile from the Glen Rock. A bus stop is one block away and includes a covered stop. A locally owned and operated and well maintained neighborhood store with gas station, laundromat, deli (serves over 500 lunches per day) and car cleaning center is adjacent to the Glen Rock. Three full service grocery stores are within 1.5 miles of the Glen Rock: Earth Fare, the French Broad Coop, and Asheville's newest and most popular food store, Greenlife. A bank/credit union is one block from the Glen Rock. The hospital is .9 miles from the Glen Rock and a medical clinic serving low income families with volunteer doctors is one-half mile from the Glen Rock-ABCCM Medical Clinic. As mentioned previously, the W.C. Reid Center offering arts programming and after school care for children is one half mile from the center and is currently undergoing a $3 million renovation. Many of the amenities mentioned here that are within walking distance can be reached by contiguous sidewalk. Dixon Elementary School is 1.5 miles from the Glen Rock, Asheville Middle School is six-tenths of a mile from the site, and Asheville High School is nine-tenths of a mile from the Glen Rock.

Development Team
Provide contact information for development team members below: Management Agent Company: Harris Brown Management Address: City: Phone 4600 Dundas Drive Greensboro (336)544-2300 State: NC Zip: 27407 Email: Last: Holoman

Contact Name: First: Michael

Architect Company: Address: City: Phone

Reinhardt Architecture, Inc. 1125 East Morehead, Suite 208 Charlotte (704)376-9473 State: NC Zip: 28204 Email: Last: Reinhardt

Contact Name: First: Rick

Attorney Company: Address: City: Phone

Roberts and Stevens PO Box 7647 Asheville (828)252-6600 State: NC Zip: 28802 Email: Last: Williams

Contact Name: First: Sheryl

Investor Company: Address: City: Phone

CAHEC 7700 Falls of Neuse Road, Suite 200 Raleigh (919)420-0063 State: NC Zip: 27615 Email: Last: Mayo

Contact Name: First: Greg

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

Identity of Interest? General Contractor Company: Weaver Cooke Construction Address: City: Phone 8401 Key Boulevard Greensboro (336)378-7900 State: NC Zip: 27409 Email: Last: George

Contact Name: First: Doug

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): credit bureau, criminal 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): Fire Inspection/Alarm Monitoring Miscellaneous Operating & Maintenance Expenses SUBTOTAL Taxes and Insurance Real Estate Taxes Payroll Taxes (FICA) 63,400 46,360 13,700 16,800 7,500 12,300 2,300 1,800 4,500 500 47,000 2,000 2,650 32,400

450 12,500 1,000

1,500 52,500

25,000 22,000

4,000

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): 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 3,600 15,000 15,000 240,360 175,400 60 2,923 58,860 2,400 1,200 12,500

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): 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) 0 0 322,524 22,576 299,948 322,524

240,360 59,588

51,000

8,588 1.17

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 1 299,948 240,360 51,000 8,588 1.168 11 403,105 355,790 40,500 6,815 1.168 2 308,946 249,974 51,000 7,972 1.156 12 415,198 370,022 39,000 6,176 1.158 3 318,214 259,973 50,000 8,241 1.165 13 427,654 384,823 37,000 5,831 1.158 4 327,760 270,372 49,500 7,888 1.159 14 440,484 400,216 35,000 5,268 1.151 5 337,593 281,187 48,500 7,906 1.163 15 453,699 416,225 32,000 5,474 1.171 6 347,721 292,434 47,500 7,787 1.164 16 467,310 432,874 29,500 4,936 1.167 7 358,153 304,131 46,500 7,522 1.162 17 481,329 450,189 27,000 4,140 1.153 8 368,898 316,296 45,500 7,102 1.156 18 495,769 468,197 23,500 4,072 1.173 9 379,965 328,948 44,000 7,017 1.159 19 510,642 486,925 20,500 3,217 1.157 10 391,364 342,106 42,500 6,758 1.159 20 525,961 506,402 17,000 2,559 1.151

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

Calculations:
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: Moderate Income County: At least twenty-five percent (25%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income.

At least fifty percent (50%) of qualified units will be affordable to households with incomes at or below fifty percent (50%) of county median income. At least fifty percent (50%) 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)