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

Project Name and Location


Project Name: South Oak Crossing Address: City: 7501 Old Pineville Road Charlotte County: Mecklenburg Zip: 28217 Block Group: 1

Census Tract: 58.06

Is project in Qualified Census Tract & Difficult to Develop area? No Does a community revitalization plan exist? No Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: City of Charlotte Last: McCrory Title: Mayor 600 East Fourth Street Charlotte (704)339-7600 Zip: 28202

Jurisdiction CEO Name: First: Patrick

Site Latitude: Site Longitude:

35.1394 -80.8832

Project Description
Project Type:* New Construction Rehab 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): Will the project be receiving project based federal rental assistance? No If yes, provide the subsidy source: and number of units:

Target Population: Family 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: 10 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 20 Remarks: A partnership will be developed with Community Link to act as the local lead agency in the same manner that Community Link is the local lead agency at Tyvola Crossing, another project developed by CMHP with a 2003 tax credit award.

Will the project use steel and concrete construction and have at least 4 stories? No Will the project include a Community Service Facility under Section 42(d)(4)(c)(iii) of the code? No If yes, please describe:

Applicant Information
Applicant Name: Address: City: Contact: Telephone: Alt Phone: Fax: Email Address: (704)342-2745 fdodson@cmhp.org Charlotte-Mecklenburg Housing Partnership, Inc. 1201 Greenwood Cliff, Suite 300 Charlotte First: Patricia (704)342-0933 State: NC Zip: 28204 Last: Garrett Title: President

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

Site Description
Total Site Acreage: 9.8 Total Buildable Acreage: 8.8 If buildable acreage is less than total acreage, please explain: The site has a protected wetlands area that will not be disturbed and will be maintained according to Code and the requirements of the Corps of Engineers.

Identify utilities and services currently available (and with adequate capacity) for this site: Storm Sewer Water Sanitary Sewer Electric

Is the demolition of any buildings required or planned? No If yes, please describe:

Are existing buildings on the site currently occupied? No If yes: (a) Briefly describe the situation:

(b) Will tenant displacement be temporary? (c) Will tenant displacement be permanent? Is the site directly accessed by an existing, paved, publicly maintained road? Yes If no, please explain:

Is any portion of the site located inside the 100 year floodplain? No If yes: (a) Describe placement of project buildings in relation to this area:

(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: 7/29/2002 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: 480,000

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

Zoning
Present zoning classification of the site: UR2-CD Is mutifamily 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: The site has a protected wetlands area that will not be disturbed and will be maintained according to Code.

Ownership Entity
Owner Name: South Oak Crossing, LLC Address: City: 1201 Greenwood Cliff Suite 300 Charlotte State: NC Zip: 28204 (If assigned) 36-4581147 (If Not Assigned)

Federal Tax ID Number of Ownership Entity: Federal Tax ID Number of Managing GP or Member:

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 No

Yes Is the applicant requesting that the Agency treat the application as a Hope VI project? Does the ownership entity include a public housing authority (PHA) or a related entity of the No PHA as a partner, member, or principal? List all general partners, members,and principals. Specify nonprofit corporate general partners or members. Click [Add] to add additional partners, members, and principals.

Org:

Charlotte-Mecklenburg Housing Partnership, Inc. Last Name: Garrett Function: Managing Member

First Name: Patricia Address: City: Phone: EMail:

1201 Greenwood Cliff Suite 300 Charlotte (704)342-0933 Pgarrett@cmhp.org State: NC Zip: 28204

Fax: (704)342-2745 Nonprofit: Yes

Unit Mix
The Median Income for Mecklenburg county is $64,100. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Gdn Apt # BRs Net Sq.Ft. 2 2 3 3 925 925 1159 1159 Total # Units 10 40 10 40 # Units 1 2 1 1 Monthly Rent 247 615 247 700 Electric Utility Allowance 96 96 116 116 Gas Mandatory Serv. Fees 0 0 0 0 Other trash collection **Total Housing Exp. 343 711 363 816

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 Gdn Apt Gdn Apt Total # BRs Net Sq.Ft. # Units 2 3 925 1159 46 46 # Units 3 2 Monthly Rent 690 790 Electric Utility Allowance 96 116 Gas Mandatory Serv. Fees 0 0 Other trash collection **Total Housing Exp. 786 906

Utilities included in rents:

Water/Sewer

Statistics All Units Low Income....... Market Rate....... Totals............... 100 92 192 Gross Monthly Rental Income 57540 68080 125620

Units 5 5 10

Proposed number of residential buildings: 7 Project Includes:

Maximum number of stories in buildings: 4

Separate community building - Sq. Ft. (Floor Area): 4,031 Community space within residential bulding(s) - Sq. Ft. (Floor Area): Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 254,807

Total Net Sq. Ft. (All Heated Areas): 204,095

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 2 3 2 3 10 10 40 40

Units targeted at 30 targeted at 30 targeted at 60 targeted at 60

% percent of median income percent of median income percent of median income percent of median income

Total Low Income Units:

100

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: City of Charlotte Housing Trust Fund RD 515 Loan RD 538 Loan - Specify: AHP Loan Other Loan 1 - Specify: Charlotte Housing Authority HOPE VI 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**

Amount

3,767,300

1.00

40

40

1,500,000

1.00

40

40

9,121,713

5.80 0

40 30

40 30

587,076 0

2,244,273

811,415

17,444,701

* "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. 85 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) All debt will be subordinate to the Bonds and HUD will require a Deed of Trust Rider stating that all subordinate debt is payable only from surplus cash.

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 - City of Charlotte Housing Trust Fund Year: Amt: Year: Amt: 1 37673 11 37673 2 37673 12 37673 3 37673 13 37673 4 37673 14 37673 5 37673 15 37673 6 37673 16 37673 7 37673 17 37673 8 37673 18 37673 9 37673 19 37673 10 37673 20 37673

Other Loan 1 - Charlotte Housing Authority HOPE VI Year: Amt: Year: Amt: 1 15000 11 15000 2 15000 12 15000 3 15000 13 15000 4 15000 14 15000 5 15000 15 15000 6 15000 16 15000 7 15000 17 15000 8 15000 18 15000 9 15000 19 15000 10 15000 20 15000

Development Costs
Item Cost Element 1 Purchase of Building(s) (Rehab / Adaptive Reuse) 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 12 Architect's Fee - Inspection SUBTOTAL (lines 1 through 12) 13 Construction Insurance (prorate) 14 Construction Loan Orig. Fee (prorate) 15 Construction Loan Interest (prorate) 16 Construction Loan Credit Enhancement (prorate) 17 Construction Period Taxes (prorate) 18 Water, Sewer and Impact Fees 19 Survey 20 Property Appraisal 21 Environmental Report 22 Market Study 23 Bond Costs 24 Bond Issuance Costs 25 Placement Fee 26 Permanent Loan Origination Fee 27 Permanent Loan Credit Enhancement 28 Title and Recording SUBTOTAL (lines 13 through 28) 29 Real Estate Attorney 30 Other Attorney's Fees 31 Tax Credit Application Fees (Preliminary and Full) 32 Tax Credit Allocation Fee (0.52% of line 58, minimum $7,500) 33 Cost Certification / Accounting Fees 34 Tax Opinion 35 Organizational (Partnership) 36 Tax Credit Monitoring Fee SUBTOTAL (lines 29 through 36) 37 Furnishings and Equipment 38 Relocation Expense 39 Developer's Fee 40 41 43 44 Other Basis Expense (specify) Other Basis Expense (specify) Other Non-basis Expense (specify) Other Non-basis Expense (specify) SUBTOTAL (lines 37 through 44) TOTAL COST 0 0 1,344,000 0 9,320,000 0 576,000 207,000 778,000 327,000 50,000 150,000 12,752,000 40,000 0 643,000 0 35,000 98,000 12,000 12,000 9,000 10,200 250,000 290,000 0 0 0 15,000 1,414,200 20,000 40,000 2,120 40,381 50,000 15,000 10,000 96,000 273,501 120,000 0 1,296,000 0 0 0 0 0 1,416,000 120,000 0 1,296,000 0 0 50,000 0 40,000 36,000 0 578,700 0 31,500 98,000 12,000 12,000 9,000 10,200 Eligible Basis 30% PV 70% PV 0 0 1,209,600 0 9,320,000 0 576,000 207,000 778,000 327,000 50,000 150,000

42 Rent-up Expense

45 Rent up Reserve 46 Operating Reserve 47 48 HUD Working Capital HUD Operating Deficit Reserve

0 700,000 189,000 220,000 16,964,701 0 0 0 0 14,911,000 52.08% 7,765,648 7,765,648 264,032 291,211 0 480,000 17,444,701 14,911,000 52.08% 7,765,648 100.00% 7,765,648 3.40 264,032 291,211 0 0 52.08% 0 100.00% 0 7.95 0 0 14,911,000 0

49 DEVELOPMENT COST (lines 1-48) 50 Less Federal Financing 51 Less Disproportionate Standard 52 Less Nonqualified Nonrecourse Financing 53 Less Historic Tax Credit (residential) 54 TOTAL ELIGIBLE BASIS 55 Applicable Fraction (percentage of LI Units) 56 Basis Before Boost 57 Boost for QCT/DDA (if applicable, enter 130%) 58 TOTAL QUALIFIED BASIS 59 Tax Credit Rate 60 Federal Tax Credits at Estimated Rate 61 Federal Tax Credits at 8.5% or 3.75% 62 Federal Tax Credits Requested 63 Land Cost 64 TOTAL REPLACEMENT COST Comments:

Market Study Information


Please provide a detailed description of the proposed project: South Oak Crossing (South Oak) is a proposed 200 unit mixed-income family apartment community to be constructed on vacant undeveloped land owned by Charlotte-Mecklenburg Housing Partnership. The site address is 7501 Old Pineville Road, Charlotte, North Carolina. The site has good accessibility to major thoroughfares, employment schools, shopping, public transportation and other services and will be within to mile from the planned Arrowood Station light rail stop. Approximately 10% of the units will be set aside for HOPE VI replacement housing, 100 units will be affordable to 60% AMI and the remainder will be unrestricted market rate units. There will be a variety of financing sources used during construction including City of Charlotte Housing Trust Fund, HOPE VI and Federal Low Income Housing Tax Credit equity. CMHP will also request funding from Neighborhood Reinvestment and will provide a loan or equity to the project if necessary. The primary source of funding will be tax exempt bonds with credit enhancement provided by HUDs 221(d)(4) program. The site was successfully rezoned from R-15 MF (CD) to UR-2(CD). Total development costs for South Oak Crossing will be approximately $89,000 per unit. The number of units per acre has not been determined. The 2 bedroom units will be 925 square feet and 3 bedroom units will be 1162 square feet. There will also be a separate club house/leasing office on site. Site amenities will include a tot lot, playground, picnic area, bike racks, bus shelter, TV room, business center with high speed internet access available for each unit and in the business center. South Oak will be one of the first affordable housing developments to be constructed adjacent to the new Charlotte light rail corridor and CMHP has worked closely with the City of Charlotte Planning Department and others to ensure that the site is consistent with the recently adopted Transit Station Area Principles. The Principles focus on the land use, mobility and design of development within mile of each station and encourage a mixture of housing types and the development of workforce housing. The Principles also encourage higher densities for development and concentrating those higher densities closest to the transit stations, with 20 dwellings per acre within a mile and 15 dwellings per acre within a mile of the transit station. Being within mile of the Arrowood Station provides an opportunity to create a model for future mixed-income residential developments along transit corridors. The development will be designed to make it convenient for our residents to take full advantage of the benefits of mass transit and other nearby Amenities. 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

Security fencing around the perimeter of the property where needed.

Have you built other tax credit developments that use the same building design as this project? Yes If yes, please provide name and address: Rivermere Apartments (AKA, Rocky Branch II) 3404 Dunns Common Parkway, Charlotte NC

Site Amenities (check all that apply): Community Bldg Ft: 3,378 Resident Garden Plots Community Room Ft: 735 Playground Tot Lot Garages Number: Basketball Court Volleyball Court

Walking Trails

Fitness Stations Car Care Area with Vacuum Sitting Area Garages/Covered Parking

Gazebo/Arbor

Picnic Area with Tables/Grilles Swimming Pool

Horseshoe Pit Covered Drivehrough at Entry Tennis Court

Shuffleboard

Fenced Ball Field Covered Drop off at Entry Bike Racks

Flag Pole

Large Fountain

Irrigated Lawns

Bus Shelter

Game/Craft Room

Screened Porch Resident Computer Center Providing High-Speed Internet Access

Sunroom with Chairs

Exercise Room

Exam Room

Reading Room/Library Storage for Elderly Projects

TV room Community Service Facility

Beauty Salon

Vending Area

Onsite Activities: On-site activities will take place in the Community Building which will include a TV and a business center furnished with new computers and a printer with free high-speed internet access available to all residents. The property will host at least two community wide parties per year. The community building will also be available to be reserved by residents for birthday parties and other events in the evening and on weekends.

Landscaping Plans: The site will be attractively landscaped in a similar fashion to the developer's other tax credit sites.

Interior Apartment Amenities (check all that apply): Range W/D Hookups Flooring: Carpet Hood Mini-blinds Vinyl Central Air Dishwasher Pantry Wood Gas Heat Disposal Ceiling fans Wood Parquet Heat Pump Refrigerator (frost free) Walk-in closets Other Storage interior/exterior

Ceramic Tile Electric Pump

Heating/Cooling:

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. The trend of residential development in the area continues and will be affected positively by the introduction of light rail in the area. The coming light rail amenity will only serve to make the proposed development more attractive to potential renters not currently residing in the market. The second apparent trend within the market is the growth of the Latino community. This market is the second largest concentration of Latinos in the City limits. CMHP has devoted a significant amount of time meeting with Latinos in the area to determine how the proposed development can best serve this population. Our research will ultimately result in a development with among other things more three bedrooms than the surrounding residential rental developments, security fencing were needed and at least one Spanish speaking property management employee. The site is an area with other affordable rental but a great deal of the affordable rental in the area is older and lack an adequate amount of three bedroom units and amenities. Of the 26 apartment communities in the defined market (i.e., Southwest-2 as defined by the Charlotte Apartment Association) only 6 were built within the last 15 years. This is during a period of time of population growth and demographic change in the area. The primary change being in the increasing number of Latino families. The South Boulevard corridor is the second largest concentration of Latinos in the City of Charlotte. Commonly these families are larger and this has increased the need for affordable three bedroom units. The existing market rate and affordable housing in the area does not fully meet the need in that 10 of the existing developments do not have three bedroom units and 36% of the units in the market are one bedroom. The enclosed market study supports the conclusion that the market is not saturated and that lease up for the proposed number of units will be accomplished within a reasonable period of time after completion. CMHP has owned and operated the adjoining Shelton Knoll apartments since 1996 and has experienced very little vacancy during this period. Shelton Knoll units are smaller and have fewer amenities than the proposed development. 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 development is ideal for the proposed use due to the amenities now in existence as shown in the enclosed amenities maps and the future amenities that will follow transit development. There are no apparent surrounding uses that will conflict with the proposed use. CMHP has spent a considerable amount of time meeting with residents of the area and other resources such as law enforcement assigned to the area to develop a site plan and on-site amenities that will be most attractive to future tenants. This research and discussion is ongoing and will lead to a site that is very attractive to the present demographic and fits within the Transit Oriented Development requirements. The land use pattern in the area is a mixture of uses with a predominance of multifamily residential. This is primarily due to the demographic nature of the area. This area is composed of the quintessential workforce housing with enough market demand to lease the proposed number of units. It is important to state that the proposed market is essentially 60% of AMI and the rents are set accordingly. The enclosed maps show the balance of uses in the area with a healthy mixture of residential uses, retail amenities and support services needed to support and enhance the quality of life. Industrial and large scale institutional uses are not a concern in the area of the proposed site. The most significant large scale institutional use near the site is the adjoining Victory Christian Church. This use is not incompatible with the proposed use. There is not a large amount of vacant undeveloped land in the area. Future developments within the TOD overlay will have to comply with the transit specific development restrictions. The South Oak Crossing site is within 3 miles of Carolina Pavilion, the 8th largest Shopping Center in the Charlotte Metropolitan Region with anchor tenants including Target, Old Navy, AMC Movie Theatre, Kohls, Baby Superstore, Sports Authority, Value City Furniture, and Circuit City. Carolina Pavilion is across the street from a stop on the proposed South Corridor Light Rail which will have a stop within mile of South Oak Crossing. A resident of South Oak Crossing without access to a car will be able to easily get to Carolina Pavilion using the light rail line. South Oak Crossing is also within 5 miles of Carolina Place Mall, a major regional mall with anchor tenants including Belk, J.C. Penney, Sears, Dillards, and Hechts. SITE SUITABILITY (MAXIMUM 35 POINTS) 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 site is accessible from various major thoroughfares with more than adequate traffic controls and signage. The addition of the 200 units as proposed will not overtax the public facilities in the area. The proposed development was thoroughly reviewed by City government during the rezoning approval process. The recommendation by City staff to rezone is based on land use plans adopted by the elected officials and a study of current development patterns in the vicinity of the request. Planning staff also consults with other City and/or County departments to assess the impact on such concerns as transportation, storm water, schools and public amenities. In addition, the application for City of Charlotte trust funds required another level of review of the plans and preliminary approval by the Planning department. The site is served by the CATS bus system with the nearest stop within mile of the site. This stop provides access to the Charlotte Transportation Center by bus #10 departing and bus #12 returning at regular intervals. Access to downtown will improve vastly with the completion of the South light rail line and the new Arrowood Station. Arrowood Station will be constructed within a of the site and will be one of 15 stations along the South Corridor light rail alignment. The proposed site plan for the station includes a sheltered elevated passenger platform, 288 Park and Ride spaces as well as four bus bays. The proposed buildings will be highly visible from Old Pineville Road. Old Pineville has a high traffic count and may be realigned during the construction of the light rail corridor. If this realignment occurs site visibility will not be affected. 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 site does contain a designated wetlands area that will have to be protected and preserved as shown on the proposed site plan. It is not anticipated at this time that the wetlands area will be an impediment to construction. The FEMA map (i.e., map #370159 0023B) notes that there are no flood plain areas located on the subject property.

Similarity of scale and aesthetics/architecture between project and surroundings. The proposed development will be larger than the adjoining CMHP-owned Shelton Knoll apartments and some of the surrounding apartment communities. Aesthetically it will be much more appealing than the surrounding developments.

For each applicable neighborhood feature, enter distance from project in miles. 0.35 0.1 0.85 0.31 0.54 0.25 0.67 0.85 0.85 0.31 3.38 1.72 1.92 Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools 1.92 3.53 0.74 0.33 0.33 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 0.23 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools 0.23 0.64 2.22 0.3 1 0.76

Other facilities or services:

Development Team
Provide contact information for development team members below: Management Agent Company: S. L. Nusbaum Realty Co. Address: City: Phone 1000 Bank of America Center, One Commercial Place Norfolk (336)320-3472 State: VA Zip: 23510-2103 Email: tjones@slnusbaum.com Last: Jones

Contact Name: First: Tony

Architect Company: Address: City: Phone

Watts Leaf Architects, PA 101 North McDowell Street, Suite 112 Charlotte (704)376-1200 State: NC Zip: 28204 Email: cleaf@wattsleaf.com Last: Leaf

Contact Name: First: Chip

Attorney Company: Address: City: Phone

The Brockmann Law Firm, P.C. 8058 Corporate Center Drive, Suite 100 Charlotte (704)541-5779 State: NC Zip: 28226 Email: tbrockmann@brockmannlawfirm Last: Brockman

Contact Name: First: Todd

Investor Company: Address: City: Phone

To Be Bid To Be Bid To Be Bid (999)999-9999 State: NC Zip: 99999 Email: Last: To Be Bid

Contact Name: First: To Be Bid

Consultant/Application Preparer (if different from developer) Company: Not Applicable Address: City: Phone Not Applicable Not Applicable (999)999-9999 State: NC Zip: 99999 Email: Last: Not Applicable

Contact Name: First: Not Applicable

Identity of Interest? General Contractor Company: To Be Bid Address: City: Phone To Be Bid To Be Bid (999)999-9999 State: NC Zip: 99999 Email: Last: To Be Bid

Contact Name: First: To Be Bid

Project Team Experience


Development List number low-income/tax credit housing projects and units developed, operated, and maintained in compliance by the principal(s) between December 1, 1997 and January 1, 2004 : North Carolina Other States Projects: Units: 5 271

Management List number of low-income housing tax credit units managed in the past 10 years: North Carolina Other States Projects: Units: 20 1,760 61 8,628

Has any owner, principal, or management agent been debarred or received a limited denial participation in the past 10 years by any federal or state agency? No Has any owner, principal, or management agent been involved in a bankruptcy, an adverse fair housing settlement, an adverse civil rights settlement, or an adverse federal or state government proceeding and settlement in the past 10 years? No Has any owner or principal been in a mortgage default or delinquency of three months or more within the last 5 years on a FHA-insured project, a Rural Development funded rental project, a tax-exempt funded mortgage, a tax credit project, or any other publicly subsidized project? No Has any owner or principal been involved within the last 10 years in a project which previously received an allocation of tax credits but failed to meet compliance standards of the tax credit allocation, including return of a reservation of tax credits to the Agency after the carryover agreement has been signed? No Has any owner or principal had a Form 8823 filed with the IRS for noncompliance on a project using low-income housing tax credits or received a letter of non-compliance from the Agency? No

Financing Commitments
Does the project have a firm commitment for construction financing? Does the project have a letter of intent for private permenant financing? Does the project have a firm commitment for government financing? Does the project have a letter of intent from an investor? Is any portion of the eligible basis of new contruction or rehabilitation financed with federal subsidies other than CDBG funds or funds from the HOME program? If yes, indicate the type and amount below: Tax Exempt Financing: $ RD 515 Financing: Hope VI Financing: Other: $ $ 1,500,000 $ 3,767,300 Yes No Yes Yes Yes

If Other, specify the type of Federal subsidy: Source of City funding is a tax exempt bond issuance.

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): Training, software, copier lease, fire monitoring, recreational 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)

10,000 0 4,000 0 84,454 100,000 0 3,080 5,500 2,500 13,000 20,000 14,000 256,534 0 24,000 36,000 5,120 7,680 72,800 0 0 2,000 1,540 0 1,500 770 0 0 50,000 70,000 5,000 10,000 0 1,000 0 0 0 0 0 0 141,810 128,141 15,555

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

0 26,400 0 4,800 10,000

184,896 0 0 0 0 0 48,000 48,000 704,040 527,899 192 2,749

Projected Cash Flow Year One


OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): Fees, damage reimbursement, interest 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) 1,507,440 0 400 42,826 1,550,666 108,546 1,442,120

704,040 738,080

639,749

98,331 1.15

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* 1 2 3 4 5 6 7 8 9 10

1,442,120 1,485,384 1,529,946 1,575,844 1,623,119 1,671,813 1,721,967 1,773,626 1,826,835 1,881,640 704,040 639,749 98,331 1.154 11 732,202 639,749 113,433 1.177 12 761,490 639,749 128,707 1.201 13 791,950 639,749 144,145 1.225 14 823,628 639,749 159,742 1.25 15 856,573 639,749 175,491 1.274 16 890,836 639,749 191,382 1.299 17 926,469 639,749 207,408 1.324 18 963,528 1,002,069 639,749 223,558 1.349 19 639,749 239,822 1.375 20

1,938,089 1,996,232 2,056,119 2,117,803 2,181,337 2,246,777 2,314,180 2,383,605 2,455,113 2,528,766

Total Operating Expenses* 1,042,152 1,083,838 1,127,192 1,172,280 1,219,171 1,267,938 1,318,656 1,371,402 1,426,258 1,483,308 Debt Service Net Cash Flow Debt Coverage Ratio 639,749 256,188 1.4 639,749 272,645 1.426 639,749 289,178 1.452 639,749 305,774 1.478 639,749 322,417 1.504 639,749 339,090 1.53 639,749 355,775 1.556 639,749 372,454 1.582 639,749 389,106 1.608 639,749 405,709 1.634

* 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".

Design Features
ITEM Foundation/Slab Components Primary Windows DESCRIPTION Concrete/Masonry (Reinforced) Make: Moss or Equal Model: Varies

Type/Construction: Double Pane Insulated Vinyl Exterior Doors Siding Type: Metal Clad Insulated Type: Vinyl & Brick Warranty: Limited Lifetime Exterior Trim Shingles Maintenance Free Aluminum Wrap Type: 3 Tab Fiberglass Warranty: 25 yr Sprinkler System Cabinets Heat Pump Wet System Per Code Marsh or Equal-Solid Frame, Adjustable Shelves SEER: N/A Model: N/A Air Conditioner SEER: 11 or Greater Model: Varies Other Heat Systems SEER: 11 or Greater Model: Varies Make: Trane or Equal Make: Trane or Equal Make: N/A Weight: 240 Frames: Wood Grade/Thickness: .044 (Vinyl)

Costs - Construction
This is a detailed breakdown of rehabilitation or construction costs you summarized in the Development Costs table (Rehabilitation and Construction of New Building(s)). The total should match those roll-up values. ITEM Concrete Footings Backfill-slab, Crawl Slab-concrete/Rebar/Gravel Waterproofing Masonry Foundation Brick Veneer Steel/Structure/Rails Framing/Lumber/Nails Trusses Crane Rental Windows/Grilles/Screen Exterior Doors Roofing Fencing Vinyl Siding/Trim/Box Gutters/Shutters Insulation Drywall Interior Doors Int. & Final/Stair/Trim/Shelves Cabinets & Tops Painting Marble - Tub/Shwr/Tops Plumbing Electrical Heating/Air Conditioning Floor Covering and Underlayment Wall Paper Mailboxes/Special Features/Signage Gypcrete Blinds/Shades/Art Work Light Fixtures/Fans Sprinkler System Security Alarm Hardwood Floors Elevator Ceramic Tiles 0 5,000 30,185 2,365 9,200 38,300 750 0 0 0 LABOR 47,520 31,135 56,645 34,250 22,375 247,400 5,350 990,550 41,250 0 20,920 44,165 89,470 11,180 254,800 22,753 51,240 334,865 25,935 77,380 32,710 84,950 0 300,315 291,150 231,320 39,250 0 11,500 75,230 19,640 37,100 100,200 1,750 0 0 0 MATERIAL 50,030 7,640 419,895 10,200 61,750 218,300 30,410 1,009,995 548,200 0 139,380 66,335 80,320 64,695 387,960 21,067 48,290 299,600 110,920 121,820 258,790 90,250 0 357,025 303,850 289,000 200,200 0 16,500 105,415 22,005 46,300 138,500 2,500 0 0 0 TOTAL 97,550 38,775 476,540 44,450 84,125 465,700 35,760 2,000,545 589,450 0 160,300 110,500 169,790 75,875 642,760 43,820 99,530 634,465 136,855 199,200 291,500 175,200 0 657,340 595,000 520,320 239,450

Acoustical Ceilings Mirror/Shower Door/Encls. Hardware/Bath Access. Appliances Playground Equipment Interior Clean Exterior Clean/Dumpster Rental Other 1 (specify in Remarks) Other 2 (specify in Remarks) Total Cost Remarks:

0 3,830 4,810 10,150 5,710 49,810 39,820

0 18,470 25,900 203,850 39,890 1,490 250

0 22,300 30,710 214,000 45,600 51,300 40,070 0 0

3,588,808

5,731,192

9,320,000

Costs - General
This is a detailed breakdown of the General Requirements cost element you summarized in the Development Costs table (General Requirements). The total should match that roll-up value. ITEM Supervision Job Site Office/Trailer Rental Office Supplies Security/Watchman Project Signage Tools and Equipment Gas, Oil, and Maintenance Temporary Water, Electric, and Telephone Storage/Hauling Driveway Access Permit Porta-John Rental/Dumping Builders Risk Insurance Re-inspection Fees Extra Plans and Specifications Miscellaneous, Casual Labor Equipment Rental Other 1 (specify in Remarks) Other 2 (specify in Remarks) Total Cost Remarks: TOTAL 348,110 59,690 9,565 64,735 3,000 8,290 0 27,890 0 0 4,780 42,965 0 4,005 2,970 0 0 0 576,000

Costs - Improvements
This is a detailed breakdown of the Site Improvements cost element you summarized in the Development Costs table (On-site Improvements). The total should match that roll-up value. ITEM Subsurface Exploration/Perk Testing/Site Engineering Clearing/Grading/Final Grading/Excess and Borrow Demolition Earthwork/Excavation/Aerating Soil Treatment Pile Foundations Caissons Shoring/Bracing Site Drainage Site Utilities/Site Lighting Paving and Surfacing/Curb and Gutter Walkways Site Signage Parking Lot Painting Dumpster Pads/Fencing Fencing/Gates Landscaping/Topsoil Rock and Hardpan Excavation Site Supervision Personnel Other (specify in Remarks) Total Cost Remarks: 1,344,000 TOTAL 23,510 329,750 0 0 0 0 0 0 0 396,450 435,800 0 4,640 0 7,970 75,680 62,800 0 7,400

Costs - Bond Costs


This is a detailed breakdown of the Bond Costs cost element you summarized in the Development Costs table (Bond Costs). The total should match that roll-up value. ITEM Letter of Credit Fee Credit Enhancement Underwriter Discount Capital Interest Fund Other 1 (specify in Remarks) Other 2 (specify in Remarks) Total Cost Remarks: Capital Interest Fund is included in Construction Interest line item. 250,000 TOTAL 5,000 245,000 0 0

Costs - Bond Issuance


This is a detailed breakdown of the Bond Issuance cost element you summarized in the Development Costs table (Cost of Issuance). The total should match that roll-up value. ITEM Bond Counsel Issuer Counsel Credit Enhancement/LOC Counsel Underwriter Counsel Developer's Counsel Rating Agency Fee Printing Trustee Fee Trustee Counsel Issuer's Fee Other 1 (specify in Remarks) Other 2 (specify in Remarks) Other 3 (specify in Remarks) Total Cost Remarks: Other 1: Cash flow verification Other 2: Underwriter's fee Other 3: Rating Agency Fee 10,000 15,000 17,000 11,000 6,000 2,000 10,000 90,000 4,000 80,000 10,000 290,000 TOTAL 35,000

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: High Income county: At least twenty-five percent (25%) of qualified units will be affordable to households with incomes at or below thirty percent (30%) of county median income. At least twenty-five percent (25%) of qualified units will be affordable to and occupied by households with incomes at or below thirty percent (30%) of county median income.

At least fifty percent (50%) of qualified units will be affordable to 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 and occupied by households with incomes at or below forty percent (40%) 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 mortgage subsidy 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 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 100 year and 500 year floodplain (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 to support estimated utility costs L Appraisal (required for land costs greater than $5,000 and for buildings in 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. 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 (see Appendix F). 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. 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) U Anticipated budget demonstrating how the project will meet the 10% test