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

Project Description
Project Name: Villas at Forest Park Address: City: S. Little Texas Road & Forest Park Drive Kannapolis County: Cabarrus Zip: 28083 Block Group: 4

Census Tract: 407

Is project in Qualified Census Tract or Difficult to Develop Area? No Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: Town of Kannapolis Last: Misenheimer Title: Mayor PO Box 1199 Kannapolis (704)920-4300 Zip: 28082

Jurisdiction CEO Name: First: Bob

Site Latitude: Site Longitude:

35.4825 -80.6047

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? No Does a community revitalization plan exist? No Will the project use steel and concrete construction and have at least 4 stories? No Will the project include a Community Service Facility under IRS Revenue Ruling 2003-77? No If yes, please describe:

Target Population: Elderly (55) 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: 8 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 7 Remarks: We will have 8 fully accessible units. Four (4) of the 8 will meet the 5 % ADA requirements in the QAP and 1 of the units will be designed for and audio visual impaired individual. Additionally, we will target 7 of the units for persons with disabilities.

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: David D. Douglas PO Box 160 / 709 N. Main Street Aynor First: David (843)358-1052 (843)222-6484 (843)358-1069 tddouglasco@nc.rr.com State: SC Zip: 29511 Last: Douglas Title: Managing Member

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

Site Description
Total Site Acreage: 10.0 Total Buildable Acreage: 6.0 If buildable acreage is less than total acreage, please explain: Appoximately .9 acre of the site is a stream, which is within the 100 year floodplain area. Also, portions of this area fall within the protected and critical areas of the Concord Lake Watershed and therefore impervious surface limitations are imposed. Our site design currently meets and/or exceeds the restrictions set forth by the Protected and Critical Areas of Lake Concord Watershed. We are working closely with the City of Kannapolis in our site planning and they are very supportive. There are some topographical issues with the site also which limits the location for building.

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? Yes If yes: (a) Describe placement of project buildings in relation to this area: Approximately 0.9 acre of this property lies within the 100-year floodplain designated as Zone AE. This area falls into the Lake Concord Watershed. The development will consist of one three-story building with an elevator in order to make the design as compact as possible. We have already received a height variance to go to 3 stories. The proposed development also meets and or exceeds the restrictions set forth by the Protected and Critical areas of the Lake Concord Watershed. In addition, the City of Kannapolis has looked at our preliminary site plan and supports the development. No buildings will be built in the floodplain or wetlands area.

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

Although no elements of the project will be in the floodplain area, "Best Management Practices" for storm water management will be incorporated into the development of the complex to mitigate any impact on the floodplain. Also, our impervious surface is limited due to the Protected and Critical Areas of the Lake Concord Watershed per City of Kannapolis regulations.We have been working closely with the City of Kannapolis and Engineers to meet and/or exceed all regulations.

Site Control
Does the owner have fee simple ownership of the property (site/buildings)? Yes If yes provide: Purchase Date: 04/13/2007 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: 298,000

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

Zoning
Present zoning classification of the site: RC Compact Residential District (15 units/acre) 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: A height variance was approved by the Board of Adjustment on December 13, 2006 as we will have a 3-story building due to limiting our impact on the Lake Concord Watershed.

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: A portion of the site is located in the 100-year floodplain and also in the Protected and Critical Areas of the Lake Concord Watershed. Our site plan meets and/or exceeds the restrictions on these areas. The City has reviewed the preliminary site plan and they are in support of the project. They have approved our height variance. They have also approved City financing through their CDBG funds. We are now working closely with engineers to meet Army Corps of Engineers and DOT requirements related to the roadway/entrance to the site. We have invested three years into this project and the Seller was unwilling to give us another option extension, so we purchased the property as of 4/13/2007.

Ownership Entity
Owner Name: Villas at Forest Park, LLC Address: City: PO Box 160 Aynor State: SC Zip: 29511 20-4786875 (If assigned)

Federal Tax ID Number of Ownership Entity:

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

No No

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

Org:

David D. Douglas, Individual Last Name: Douglas Function: Managing Member

First Name: David Address: City: Phone: EMail: PO Box 160 Aynor (843)358-1052 dd@douglascoinc.com

State: SC

Zip: 29511

Fax: (843)358-1069 Nonprofit: No

Org:

Prosperity Unlimited Last Name: Mack Function: Member

First Name: Louise Address: City: Phone: EMail: 1660 Garnet Street Kannapolis (704)933-7405 lmack@prodigy.net

State: NC Fax: (704)938-7431 Nonprofit: Yes

Zip: 28083

Org:

Halcon Development, LLC Last Name: Dusenbury Function: Member

First Name: Traci Address: City: Phone: EMail:

1403 Pitching Wedge Dr. #305 Raleigh (919)662-0122 tddouglasco@nc.rr.com State: NC Fax: (919)662-0124 Nonprofit: No Zip: 27603

Org:

Hart Development, LLC Last Name: Hart Function: Member

First Name: Doug Address: City: Phone: 304 75th Ave N Unit E Myrtle Beach (843)655-0620

State: SC

Zip: 29572

Fax: (843)358-1052

EMail:

dh@douglascoinc.com

Nonprofit: No

Unit Mix
The Median Income for Cabarrus county is $64,400. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt # BRs Net Sq.Ft. 1 1 1 2 2 2 730 730 730 979 979 979 Total # Units 11 8 23 5 9 8 # Units 1 2 1 1 2 1 Monthly Rent 252 417 442 289 512 607 Electric Utility Allowance 108 108 108 143 143 143 Gas Mandatory Serv. Fees 0 0 0 0 0 0 Other Trash pick-up **Total Housing Exp. 360 525 550 432 655 750

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............... 64 8 27183 64 Gross Monthly Rental Income 27183

Units 8

Proposed number of residential buildings: 1 Project Includes:

Maximum number of stories in buildings: 3

Separate community building - Sq. Ft. (Floor Area): Community space within residential bulding(s) - Sq. Ft. (Floor Area): 7,800 Elevators - Number of Elevators: 1 Square Footage Information Gross Floor Square Footage: 71,433

Total Net Sq. Ft. (All Heated Areas): 67,862

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 11 8 23 5 9 8

Units targeted at 30 targeted at 50 targeted at 60 targeted at 30 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

Total Low Income Units:

64

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

Funding Sources
NonAmortizing* Rate (%) 7.25 2.00 2.00 Term (Years) 20 20 20 Amort. Period (Years) 30 30 20 13,385 Annual Debt Service 54,964

Source Bank Loan RPP Loan Local Gov. Loan - Specify: City of Kannapolis 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**

Amount 671,437 960,000 220,500

648,885

30

30

4,863,514

7,364,336

* "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. 95 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) Permanent Loan-Column Capital Permanent/Mortgage Subsidy-City of Kannapolis Equity Provider-Column Capital

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

RPP Loan Year: Amt: Year: Amt: 1 9487 11 10058 2 9900 12 9566 3 10249 13 8945 4 10528 14 8187 5 10733 15 7284 6 10858 16 6225 7 10896 17 5002 8 10842 18 3603 9 10689 19 2018 10 10430 20 236

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)Building Permits/Land-site planning Other Basis Expense (specify)Lender Inspections/Attorney Other Non-basis Expense (specify)Survey and title Conversion Other Non-basis Expense (specify) Perm loan closing costs 672,000 79,500 27,000 5,000 11,000 8,000 672,000 79,500 27,000 7,500 248,749 15,000 25,000 2,200 33,872 10,000 5,000 1,000 41,600 133,672 20,000 20,000 10,000 15,000 25,000 15,900 4,000 92,500 12,000 4,400 15,000 4,700 4,000 92,500 12,000 4,400 15,000 4,700 275,012 97,172 388,684 160,332 60,000 20,000 25,000 5,609,741 10,000 31,682 51,067 10,000 31,682 30,640 275,012 97,172 388,684 160,332 60,000 20,000 25,000 3,714,496 3,714,496 869,045 869,045 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)

822,500 19,200 232,474

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

7,066,336

6,663,163

0 6,663,163 100.00% 6,663,163 6,663,163 539,716 566,368 512,000 0 298,000 7,364,336 512,000 0 100% 0 100.00% 0 3.47 0 0 6,663,163 100% 6,663,163 100.00% 6,663,163 8.10 539,716 566,368

Comments: We would like an exception to the maximum of $95,000/unit due to extraordinary circumstances related to our site development, City & County watershed requirements and NCDENR and Army Corps of Engineer requirements. Line 3--I have a letter from an engineer and contractor explaining the development issues we are facing and supporting this exception. We have invested resources and time in this community and in this property over the past 3 years because we believe in this development. This is our third attempt to obtain an allocation of credits and we believe our numbers are realistic due to the amount of due diligence we have completed.

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

105,034 8,850

Market Study Information


Please provide a detailed description of the proposed project: We are proposing to build a 64- unit development for seniors on 10.0 acres of a larger 21.19 acre site. We have been working closely with the city in our site plan development. We are excited about the Cabarrus County market as it is one of the fastest growing areas in North Carolina. Kannapolis has limited upscale rental options and we are hopeful that this development will meet the growing needs of the area. On Little Texas Road alone, there is a new elementary school and three new market-rate subdivisions in close proximity. Our site is in the perfect location for seniors, close to services and in an upscale residential area.

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 have a sprinkler system and will have pull system emergency alarms throughout the building for added safety of our senior residents.

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: Residential garden plots, walking trails, shuffleboard, irrigated lawns, screened porch, resident computers, sitting area, sun room with chairs, TV room, gazebo/arbor, covered drop-off drive through at entry, exercise room, beauty salon, picnic area w/tables/grills, exam room, vending area, horseshoe pit, game room/craft room, reading room/library, storage space for residents, wired for high-speed internet service.

Onsite Activities: We will work closely with local human service agencies to provide educational, social and health preservation programs for the seniors living at the Villas at Forest Park. We plan to invite local service providers and case managers to come on site and meet with and access the needs of our residents. We will have an exam/support service room on site where individual meetings and assessments can take place with our seniors.

Landscaping Plans: Our landscaping plan will be creative as we hope to incorporate many different kinds of evergreens and deciduous species trees and shrubbery around the buildings. Specific flowering type trees will also be utilized to accent color, beauty, and texture, as will colorful perennials and accent flower beds. Overall the landscaping plan will facilitate picnicking and leisurely strolls around the development.

Interior Apartment Amenities:

Ranges, range-hoods, dishwashers, refrigerators (frost-free), storage areas, mini-blinds, pantry, ceiling fans, walk in closets, w/d hookups, carpet and non-slip vinyl flooring.

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 real estate in the Kannapolis Market is becoming more attractive as people move out of Charlotte into the surrounding areas but still want access to the amenities of a bigger city. The available market for elderly affordable housing in Kannapolis is very small. In the areas surrounding our site, there are three new subdivisions, including town homes, and single family houses. The site upon which the proposed project is to be built is conveniently located near a school and a shopping center that includes a grocery store. It is a growing area with much new investment.

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. Our proposed development is suitable for this site. Our design will blend with the surrounding subdivisions on Little Texas Road. Little Texas Road is a well suited access road, but not an extremely "high Traffic" corridor. There are some lower areas on the site and floodplain areas; however, we are able to build our proposed community without interfering with the floodplain. We are planning to keep all elements of the development out of the floodplain areas and to implement "Best Management Practices" for Storm Water Management. 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 has adequate traffic controls and no dangerous intersections. Kannapolis does have a transportation system that the residents will be able to utilize. 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 negative features on the site that will impede the construction or adversely affect the future tenants. The floodplain will not be an issue. We have designed our building to stay out of the 1.14 acres that are in the floodplain area. This area can then be used as open space and recreational opportunities.

Similarity of scale and aesthetics/architecture between project and surroundings. Our building design will be complementary to the existing surroundings. Due to the slope of the land and the stream that is located on the site, we have designed our building to be a three story building. The building will be aesthetically pleasing and enhance the surrounding areas.

For each applicable neighborhood feature, enter distance from project in miles. .25 .25 Grocery Store Mall/Strip Center .5 1.2 Community/Senior Center Hospital

.01 .01 .01 .05 .05 .01 .05 .05 .01 .01 1.0

Outdoor Athletic Fields Day Care/After School Schools

.5 1.0 1.0

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 .5 .5 2 .75 .75 1.0

Other facilities or services: The site is located in close proximity to Concord and Charlotte. It is easily accessible to I-85 and is a potential high growth area. We are pleased to have the opportunity to develop an upscale community in this small town, yet urban bedroom community. This community has all of the amenities of a large city due to its proximity to Concord and Charlotte.

Development Team
Provide contact information for development team members below: Management Agent Company: Vista Capital Management Address: City: Phone 201 E. McBee Ave., Suite 300-B Greenville (864)404-3500 State: SC Zip: 29602 Email: dupreecompany@bellsouth.net Last: Dupree

Contact Name: First: Frank

Architect Company: Address: City: Phone

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

Contact Name: First: Kenneth

Attorney Company: Address: City: Phone

Blaco, Tackaberry, Combs, Matamoros 110 S. Stratford Rd. Suite 500 Winston Salem (336)761-1250 State: NC Zip: 27104 Email: cws@btcmlaw.com Last: Scogin

Contact Name: First: Carolyn

Investor Company: Address: City: Phone

Column Capital, LLC 7650 Courtney Campbell Causeway, Suite 875 Tampa (813)207-2111 State: FL Zip: 33607 Email: chris.diaz@colfin.com Last: Diaz

Contact Name: First: Chris

Consultant/Application Preparer (if different from developer) Company: Halcon Properties & Consulting, LLC Address: City: Phone 1403 Pitching Wedge Dr. #305 Raleigh (919)662-0122 State: NC Zip: 27603 Email: tddouglasco@nc.rr.com Last: Dusenbury

Contact Name: First: Traci

Identity of Interest? General Contractor Company: Harold K Jordan Construction Address: City: Phone 1086 Classic Road Apex (919)303-3652 State: NC Zip: 27502 Email: tcastillo@hkjconstruction.com Last: Castillo

Contact Name: First: Tony

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): computer networking/high speed data 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) 40,300 36,544 6,300 100 500 2,500 1,500 500 4,500 1,200 2,000 14,000 40,000 27,500 2,200 2,500 2,000 13,500 32,600 500

1,000

840 55,140

12,000 14,000

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 1,920 16,000 16,000 221,012 166,548 64 2,602 4,308 20,500

67,652 1,670 250

Projected Cash Flow Year One


OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): 7,680 326,196

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)

333,876 23,371 310,505

221,012 89,493

77,836

11,657 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* Total Operating Expenses* Debt Service Net Cash Flow Debt Coverage Ratio 1 310,505 221,012 77,836 11,657 1.15 11 417,292 327,151 78,407 11,734 1.15 2 319,820 229,852 78,249 11,719 1.15 12 429,811 340,237 77,915 11,659 1.15 3 329,415 239,046 78,598 11,771 1.15 13 442,705 353,846 77,294 11,565 1.15 4 339,297 248,608 78,877 11,812 1.15 14 455,986 368,000 76,536 11,450 1.15 5 349,476 258,552 79,082 11,842 1.15 15 469,666 382,720 75,633 11,313 1.15 6 359,960 268,894 79,207 11,859 1.15 16 483,756 398,029 74,574 11,153 1.15 7 370,759 279,650 79,245 11,864 1.15 17 498,269 413,950 73,351 10,968 1.15 8 381,882 290,836 79,191 11,855 1.15 18 513,217 430,508 71,952 10,757 1.15 9 393,338 302,469 79,038 11,831 1.15 19 528,614 447,728 70,367 10,519 1.149 10 405,138 314,568 78,779 11,791 1.15 20 544,472 465,637 68,585 10,250 1.149

* 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: 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 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)