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Print Preview - Final Application

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

Project Description
Project Name: The Highlands Apartments Address: City: 171 Butler Rd. Forest City County: Rutherford Zip: 28043 Block Group: 2

Census Tract: 9608

Is project in Qualified Census Tract or Difficult to Develop Area? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: Forest City Last: Gibson Title: Mayor 128 N. Powell Street Forest City (828)245-4747 Zip: 28043

Jurisdiction CEO Name: First: Jimmy

Site Latitude: Site Longitude:

35.3261 -81.8609

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: 22 Will the project meet Energy Star standards as defined in Appendix B? No Does a community revitalization plan exist? Yes 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? 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: 0 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 6 Remarks: 10% of the units or a total of 6 units will be targeted to persons with disabilities who qualify for Key Program rental assistance. A plan will be developed with the local lead agency to devise a Targeting Plan to be certified by the N.C. Department of Health and Human Services (DHHS).

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: Hawkeye, Inc. 809 22nd Avenue Tuscaloosa First: David (205)759-5781 (205)799-1638 (205)391-0031 State: AL Zip: 35401 Last: Morrow Title: President

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

Site Description
Total Site Acreage: 3.7 Total Buildable Acreage: 2.8 If buildable acreage is less than total acreage, please explain: The buildings are already developed on site and the buildable acreage includes areas for the buildings, parking, and amenities and proposed community building. The non-buildable areas include existing building set-backs, water retention area, sloped areas.

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: Relocation assistance for moving of the funishings of the residents to vacant executive model units onsite and back to the renovated units will be done by third party movers under the direction of the Management Agent. Any costs not waived or otherwise incurred will be borne by the operations of the project and if those funds are insufficient by the Owner and/or Developer. The residents will not incurr any costs in the event of relocation.

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

Purchase Price:

(c) Enter the current expiration date of the option/contract to purchase: 01/04/2008 (D) Enter Purchase Price: 1,600,000

Present zoning classification of the site: R-3 Residential 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? No If yes, describe below:

Ownership Entity
Owner Name: Forest City II Housing, L.P. Address: City: 809 22nd Avenue Tuscaloosa State: AL Zip: 35401 20-8982679 (If assigned)

Federal Tax ID Number of Ownership Entity:

Note: Do not submit social security numbers for individuals. Entity Type: Limited Partnership 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.


Hawkeye, Inc. Last Name: Morrow Function: Managing General Partner

First Name: David Address: City: Phone: EMail: 809 22nd Avenue Tuscaloosa (205)759-5781

State: AL

Zip: 35401

Fax: (205)391-0031 Nonprofit: No


Hawkeye, Inc. Last Name: Morrow Function: Principal

First Name: David Address: City: Phone: EMail: 809 22nd Avenue Tuscaloosa (205)759-5781

State: AL

Zip: 35401

Fax: (205)391-0031 Nonprofit: No

Unit Mix
The Median Income for Rutherford county is $47,100. Low Income Units Type Gdn Apt Gdn Apt # BRs Net Sq.Ft. 1 2 666 771 Total # Units 20 23 # Units 1 2 Monthly Rent 380 400 Electric Utility Allowance 93 102 Gas Other Mandatory Serv. Fees 0 0 **Total Housing Exp. 473 502

Utilities included in rents:


Employee Units (will add to Low Income Unit total) Type Gdn Apt # BRs Net Sq.Ft. 2 771 Total # Units 1 # Units 0 Monthly Rent 0 Electric Utility Allowance 0 Gas Other Mandatory Serv. Fees 0 **Total Housing Exp. 0

Utilities included in rents:


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:



Statistics All Units Low Income....... Market Rate....... Totals............... 44 3 16800 44 Gross Monthly Rental Income 16800

Units 3

Proposed number of residential buildings: 5 Project Includes:

Maximum number of stories in buildings: 2

Separate community building - Sq. Ft. (Floor Area): 684 Community space within residential bulding(s) - Sq. Ft. (Floor Area): 638 Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 35,892

Total Net Sq. Ft. (All Heated Areas): 33,146

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.

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 2 2 20 5 18

Units targeted at 60 targeted at 60 targeted at 50

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

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**











0 0

0 4,218,860

* "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)) Due to changes on PV on PDC, there are more credits and therefore more equity, which backs into less State Tax Credit equity.

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) lender inspectons Other Basis Expense (specify) capital needs assessment Other Non-basis Expense (specify) Other Non-basis Expense (specify) 18,781 144,758 8,000 23,000 2,200 26,845 7,500 1,500 2,500 24,200 95,745 27,500 52,800 462,000 7,500 0 5,000 0 27,500 52,800 462,000 7,500 0 7,500 8,000 0 0 23,000 13,281 1,442 8,500 5,000 4,000 4,000 13,281 1,442 8,500 5,000 4,000 4,000 87,000 1,254,512 0 74,000 84,800 29,900 119,900 89,958 33,000 11,000 10,000 3,164,070 15,700 11,054 63,000 15,700 11,054 63,000 87,000 1,254,512 0 74,000 84,800 29,900 119,900 89,958 33,000 11,000 10,000 TOTAL COST 1,370,000 Eligible Basis 30% PV 70% PV 1,370,000

43 Rent-up Expense

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

554,800 15,000 0 14,487

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 3,878,347 100.00% 3,878,347 4,628,451 309,202 327,963 352,000 327,963 230,000 4,218,860 327,963 51,675 276,288 1,378,000 100% 1,378,000 100.00% 1,378,000 3.45 47,541 51,675 2,500,347 100% 2,500,347 130.00% 3,250,451 8.05 261,661 276,288

Comments: Line 33 adjusted after all other adjustments. Line 42 CNA: RD will accept our PNA that was done. Line 46: Maximum allowed. Line 48: allowed only because underfunded currently. Line 40: developer fee moved to 70% PV which in turn allows a slight bump in annual credits requested.

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

89,953 7,454

Market Study Information

Please provide a detailed description of the proposed project: There are 5 existing residential buidings on the site with a proposed community center building for the residents to use for recreation, parties, and a computer center for children and parents to use for homework, research, learning, and job searching. The renovation of this proposed project will allow for the buildings to be brought up to ADA standards for full enjoyment for those with disabilities, provide quality services for those in need, and extend the useful life of an aging property with no funds to do much the needed improvements. The proposed project will involve the renovation of an aging Rural Development property. The renovations will include replacing the roofs with 30 architectural style shingles, covering high maintenance wood siding with vinyl siding, painting of all exterior areas including new doors and stairs, painting of all interior units, replacing all appliances with energy star appliances, replacing all flooring, complete updgrade to landscaping, and adding a community building for residents. 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

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: Site amenities will include security cameras, a newly renovated playground, a resident computer center, a covered picnic area with tables and grills, outdoor sitting area with benches, a tot lot, and a gazebo

Onsite Activities: Onsite activities will consist of resident involvement with activities advertised through the monthly newsletter including movie night and game night in the community room, holiday parties and potluck dinners throughout the year, neighborhood watch, and computer learning aids in the commmunity building.

Landscaping Plans: The existing landscaping will be reworked to include taking up old overgrown shrubs, putting new shrubs and new sod in areas needed, lining a row of white crepe mirtles leading up to the property from the road, and extra flowers and annuals around the site sign and the office.

Interior Apartment Amenities: Interior apartment amenities include a stove, refrigerator with icemaker, dishwasher, microwave, cable, telephone, carpet, internet access

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 area is in an established residential area convenient to all the services in town. Tenants are within walking distance to work and shopping areas. The economic health has remained steady with active redevelopment projects such as the Florence Mill Redevelopment Project and Main Street Development as well as others in planning stages. All other affordable housing is located in other parts of the town. The buildings have been held together fairly well considering the high maintenance of the exterior which has drained the replacement reserve funds and the property has high needs such as covering the wood siding with low maintenance vinyl siding, better insulation, new appliances, new HVAC, and new flooring. 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 uses are strictly residential neighborhoods on all sides which is ideal for affordable apartments. No other adjacent adverse land uses may affect the property in the future due to the surrounding properties having residential houses. There are no major industrial or other incapatible uses nearby. There are no existing negative land uses known which would detract from the overall site. Retail property is convenient to the site such as the mall which is .7 miles, restaurants which are .5 miles, theater which is .7 mile, and bank which is .5 miles. Convenience from the property to amenities include .3 miles to basketball court, 1.3 miles to a fitness center, .8 mile to a public swimming pool, and .5 mile to a museum. 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 site is located off of Butler Rd. which is not a major thoroughfare. A small turn lane exists and is adequate for the less travelled road. The buidings are not visible to Highway 74, a major highway. There is not an additional burden on the public road as the traffic pattern has been already established due to this property being existing housing with no additional traffic anticipated. 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 on-site negative barriers such as flood areas, wetlands, or rock which would impede project construction of the community building which already has area on the existing site designated for it. All other buildings have been constructed and would not require removing any barriers. Also, there are no on-site negative features, such as transmission lines, ravines, etc. which would affect future tenants.

Similarity of scale and aesthetics/architecture between project and surroundings. The aesthetics and architecture of the buildings are very nice with the banded arched breezeways and covered balconies. The project fits very well with the surroundings.

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

1.2 .7 2.4 3.2 1.6 0 .1 .3 2.4 .1 1.3 6 .8

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

2.9 6.2 1.2 .6 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 .5 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools .25 2 .7 .9 .9 1.5

Other facilities or services: There is a community services building less than a mile away. There is also mental health care facilities available at New Vistas 2.8 miles away (marriage therapy) and Universal Mental Health Services available 1.1 mile away.

Development Team
Provide contact information for development team members below: Management Agent Company: Morrow Realty Company, Inc. Address: City: Phone 809 22nd Avenue Tuscaloosa (205)759-5781 State: AL Zip: 35401 Email: Last: Morrow

Contact Name: First: David

Architect Company: Address: City: Phone

Boisseau Design Group 8304 Meadow Ridge Court Raleigh (919)847-5860 State: NC Zip: 27615 Email: Last: Boisseau

Contact Name: First: Ken

Attorney Company: Address: City: Phone

Tanner and Guin P.C. Capitol Park Center 2711 University Blvd. Tuscalooa (205)633-0205 State: AL Zip: 35403 Email: Last: Guin

Contact Name: First: Jay

Investor Company: Address: City: Phone

Raymond James Tax Credit Fund 880 Carillon Pkwy St. Petersburg (800)438-8088 State: FL Zip: 33716 Email: 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: Harold K Jordan Address: City: Phone 1086 Classic Road Suite 201 Apex (919)303-3652 State: NC Zip: 27539 Email: Last: Jordan

Contact Name: First: Harold

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): 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) 26,509 13,281 2,936 1,000 15,250 2,100 3,200 0 3,250 1,083 626 875 9,977 48,851 1,050 18,840 300 2,600 22,086 3,575


7,088 2,014

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

100 13,183 192 1,160 8,400


0 14,900 14,900 139,489 111,308 44 2,529

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): 201,600

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)

201,600 14,112 187,488

139,489 47,999


12,133 1.338

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 1 187,488 139,489 35,866 12,133 1.338 11 251,969 206,477 35,866 9,626 1.268 2 193,113 145,069 35,866 12,178 1.34 12 259,528 214,736 35,866 8,926 1.249 3 198,906 150,872 35,866 12,168 1.339 13 267,314 223,325 35,866 8,123 1.226 4 204,873 156,907 35,866 12,100 1.337 14 275,333 232,258 35,866 7,209 1.201 5 211,019 163,183 35,866 11,970 1.334 15 283,593 241,548 35,866 6,179 1.172 6 217,350 169,710 35,866 11,774 1.328 16 292,101 251,210 35,866 5,025 1.14 7 223,871 176,498 35,866 11,507 1.321 17 300,864 261,258 35,866 3,740 1.104 8 230,587 183,558 35,866 11,163 1.311 18 309,890 271,708 35,866 2,316 1.065 9 237,505 190,900 35,866 10,739 1.299 19 319,187 282,576 35,866 745 1.021 10 244,630 198,536 35,866 10,228 1.285 20 328,763 293,879 35,866 -982 0.973

* 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)