Professional Documents
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Project Description
Project Name: Dry Creek Apartment Homes Address: City: adjacent & south of 2366 SR 210 North Lillington County: Harnett Zip: 27546 Block Group: 1015
Is project in Qualified Census Tract or Difficult to Develop Area? No Political Jurisdiction: Jurisdiction CEO Name: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: Town of Lillington First:Glenn Last: McFadden Title: Mayor
106 West Front Street, P.O. Box 296 Lillington Zip: 27546
(910)893-2654
35.7810 -78.6366
Project Type: New Construction Is this project a previously awarded tax credit development? No If yes, what is the project number: Is this a request for supplemental credits? 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: 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
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Target Population:Family Will the project be receiving project based federal rental assistance? No If yes, provide the subsidy source: and number of units: Indicate below any additional targeting for special populations proposed for this project: Mobility impaired handicapped: 5% of units comply with QAP Section IV(F)(3) (in addition to the units required by other federal and state codes.) Number of Units: 6 Persons with disabilities or homeless populations: 10% of the total units.
Number of Units: 6 Remarks: There will be a total of 6 mobility-impaired units, to comply with Federal, State and NCHFA requirements.
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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: Ilex Properties, LLC 1049 Sunset Meadows Drive Apex State: NC Zip: 27523 First: Holly Last:Smith Title:Managing Member
NOTE: Email Address above will be used for communication between NCHFA and Applicant.
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Site Description
Total Site Acreage: 6.0 Total Buildable Acreage: 6.0
Identify utilities and services currently available (and with adequate capacity) for this site: Storm Sewer Water Sanitary Sewer Electric
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:
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(b) Describe flood mitigation if the project will have improvements within the 100 year floodplain:
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Site Control
Does the owner have fee simple ownership of the property (site/buildings)?No If yes provide: Purchase Date: Purchase Price:
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?No If yes, specify the relationship:
(c) Enter the current expiration date of the option/contract to purchase: 11/28/2008 (D) Enter Purchase Price: 330,000
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Zoning
Present zoning classification of the site:MULTIFAMILY 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: On March 11, 2008, the site was unanimously approved for annexation into the Town of Lillington, with a concurrent rezoning to Multifamily, which permits the development of up to 66 rental units.
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:
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Ownership Entity
Owner Name: Address: City: Dry Creek Apts, LLC 1049 Sunset Meadows Drive Apex State:NC Zip: 27523 (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: To Be Formed Is the applicant requesting that the Agency treat the application as Non-Profit sponsored? No Is the applicant requesting that the Agency treat the application as CHDO sponsored? No List all general partners, members,and principals. Specify nonprofit corporate general partners or members. Click [Add] to add additional partners, members, and principals.
Ilex Dry Creek, LLC Last Name: Smith State: NC Function: Managing Member Zip: 27523 1049 Sunset Meadows Drive Apex
(919)363-1677 hollylsmith@nc.rr.com
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Unit Mix
The Median Income for Harnett county is $51,500. Low Income Units Type # BRs Net Sq.Ft. Total # Units # Units Monthly Rent Utility Allowance Mandatory Serv. Fees **Total Housing Exp.
Gdn Apt 1 Gdn Apt 1 Gdn Apt 1 Gdn Apt 2 Gdn Apt 2 Gdn Apt 2 Gdn Apt 3 Gdn Apt 3 Gdn Apt 3
4 4 8 7 7 14 4 4 8
1 1 0 1 1 0 1 1 0
0 0 0 0 0 0 0 0 0
Other Trash Collection
Water/Sewer
Employee Units (will add to Low Income Unit total) Total # Monthly Utility Mandatory **Total Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp. Utilities included in rents: Water/Sewer Electric Gas Other
Market Rate Units Total # Monthly Utility Mandatory **Total Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp. Utilities included in rents: Water/Sewer Electric Gas Other
Statistics All Units Low Income....... Market Rate....... Totals............... Gross Monthly Rental Income
Units
60
27783
60
27783
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Separate community building - Sq. Ft. (Floor Area): 1,797 Community space within residential bulding(s) - Sq. Ft. (Floor Area):
Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage:
58,205
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.
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Targeting
Specify Low Income Unit Targeting in table below. List each applicable targeting combination in a separate row below. Click [Add] to create another row. Click "X" (at the left of each row) to delete a row. Add as many rows as needed.
# BRs 1 1 1 2 2 2 3 3 3
Units
% targeted at 40 targeted at 50 targeted at 60 targeted at 40 targeted at 50 targeted at 60 targeted at 40 targeted at 50 targeted at 60 percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by
4 4 8 7 7 14 4 4 8
60
Note: This number should match the total number of low income units in the Unit Mix section.
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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: CDBG for offsite road widening Total Sources**
Amount
860,000 800,000
6.25 1.00
30 20
30 20
63,542
881,219
30
30
3,988,113
250,000 6,779,332
* "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. 80 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) The interest rate & amortization figures above are not accurate; the actual amortization of the RPP
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loan will be based upon Net Operating Income / 1.15x - CICCAR debt service. Also, an application for a $359,000 AHP Loan will be made next month, to reduce the RPP loan by the same amount. The odds are positive that I'll get the award, based upon past experience, which will result in an RPP loan amount of $441,000. The second hearing for the HD-CDBG grant took place on April 8, 2008, and was unanimously approved by the Board of Commissioners. Iris Payne, of DCA, has visited the site and met Lillington's Town Manager, reserving the funds for Dry Creek Apartment Homes, should the development receive an allocation of credits.
Loans with Variable Amortization Please fill in the annual debt service as applicable for the first 20 years of the project life.
16863
11
17286
12
17643
13
17927
14
18133
15
18256
16
18290
17
18228
18
18064
19
17790
20
17399
16882
16233
15441
14499
13396
12121
10666
9017
7164
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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 (max 6% lines 2-6) 8 Contractor Overhead (max 2% lines 2-7) 9 Contractor Profit (max 8% lines 2-7; 6% if Identity of Interest) 10 Construction Contingency (max 3% lines 2-9, Rehabs 6%) 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 TOTAL COST Eligible Basis 30% PV 70% PV
480,000
480,000
3,300,000 100,000 232,800 82,256 329,024 135,722 105,000 19,900 35,000 4,819,702 4,600 27,471 186,393
17,700
9,687
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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 (0.60% 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
630,000
630,000
Other Basis Expense: Bank Plan & Cost Review & Inspections Other Basis Expense: sewer & water tap fees (estimated) 27,000 250,000
43 Rent-up Expense 44 45
Other Non-basis Expense : 210 N road widening & sewer bore Other Non-basis Expense (specify)
SUBTOTAL (lines 38 through 45)
50 DEVELOPMENT COST (lines 1-49) 51 Less Federal Financing 52 Less Disproportionate Standard 53 Less Nonqualified Nonrecourse Financing 54 Less Historic Tax Credit 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
0 5,883,366 100.00% 5,883,366 0 100% 0 100.00% 5,883,366 0 5,883,366 100% 5,883,366 100.00% 5,883,366
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60 Tax Credit Rate 61 Federal Tax Credits at Estimated Rate 62 Federal Tax Credits at 9.00% or 3.75% (maximum $1,000,000) 63 Federal Tax Credits Requested 64 Land Cost 65 TOTAL REPLACEMENT COST FEDERAL TAX CREDITS IF AWARDED Comments: line 41 was included on line 12
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Construction (check all that apply): Brick Vinyl Wood HardiPlank Balconies/Patios Sunrooms Front Porches
High quality,energy-efficient, and low-maintenance vinyl clad windows and accents will be used. The roofing system will include 25-year, anti-fungal architectural shingles, with wrapped fascia and soffits. Porch posts & columns will be vinyl-wrapped.
Have you built other tax credit developments that use the same building design as this project?Yes If yes, please provide name and address: The plan has been used, and project successfully built, by a Kenn Boisseau tax credit client in Boiling Springs, SC.
Site Amenities: Site amenities include a covered picnic area, picnic tables and grills, outdoor seating around the playground, and tot lot, all of which are connected by sidewalks to the clubhouse and/or the parking areas & residential units. A sodded, open area, to the left of the clubhouse, will remain grassy for kids to play ball & games. Parking will be provided at the front of all buildings, with tree islands providing shade for the residents' autos.
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Onsite Activities: The clubhouse includes an exercise room with machines and free weights; a kitchen area with refrigerator, sink, and microwave; a computer room with high speed internet access; a laundry room with exterior access; and, manager's office accessible from both inside, and outside, the clubhouse. The large meeting area will accomodate seminars, resident parties, games, crafts, and activities related to the supportive services program. A large outdoor covered patio area, to the rear of the meeting room, will have seating for the residents' use.
Landscaping Plans: The wooded areas in the buffers and setbacks will be saved on all boundary sides, to the extent possible, including the 60'+ of wooded frontage along SR 210. A lighted monument sign, visible to drivers from the North and South on SR 210, will be located at the property's entrance. Foundation plantings will consist of evergreens and flowering perenials, and hardwoods and evergreens will be planted in tree islands and throughout the building areas. The Clubhouse area, within the circular driveway, will be sodded and irrigated. Seasonal annuals will be planted at the entrance sign, clubhouse, and building fronts, and xeriscape concepts (very-drought-resistant plantings) will be used where possible.
Interior Apartment Amenities: A typical apartment will include VCT tiling at its entrance, kitchen, and baths, with wall to wall carpeting in other areas; GE energy-saving appliances; oak cabinetry in kitchens and baths; kitchen pantry; walk-in closets; ceiling fans in bedrooms; high-efficiency heat pumps and a/c units; and mini blinds on all windows.
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.
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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 projectssuitability 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 or off-site, negative features that would impede construction or adversely affect future residents. It is generally flat and wooded, with an equal number of pines and hardwoods.
Similarity of scale and aesthetics/architecture between project and surroundings. The two-story, walk-up buildings will be enveloped in the existing wooded buffers surrounding the site. There are no, single-story, existing homes along any boundary of the subject site. The proposed brick veneer with vinyl accents on the building facades, will provide excellent curb appeal, and will harmonize with the new subdivision homes, Brookside Assisted Living buildings, and existing retail and commercial uses.
For each applicable neighborhood feature, enter distance from project in miles.
1.0 .4 1.2
Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School
1.2
Center
Community/Senior
1.3
Hospital Pharmacy
.6
2.4
Stop
.8 1.2 .8 2.2
Other facilities or services: Harnett Central Middle School & High School are located North on SR 210, 2.4 and 2.8 miles from the subject site. Lillington-Shawtown Elementary School is located 3.7 miles South, and Carolina Central Community College, which offers two year degrees in high tech, public service, health, industrial & engineering fields, is located 1.6 miles from the site on SR 421. Campbell University, an accredited 4-year college with pharmacy and law school curriculums, is located in Buies Creek, approximately 6 miles from the subject site. Food Lion, Peebles Dept Store, Fast Food Restaurants (KFC, McDonald's,Pizza Hut, Subway), Dollar Store,sit down restaurants, tax prep, attorneys, banks and doctors' offices are all located within 1.1 miles of the site.
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Development Team
Provide contact information for development team members below:
Management Agent Company: Address: City: Phone Contact Name: Excel Property Management, Inc 1004 Bullard Court, Suite 106 Raleigh State: NC Zip: 27615 Email: rblackmon@excelpropertymanagement.com Last: Blackmon
(919)878-0522
First: Rita
Architect Company: Address: City: Phone Contact Name: Kenn Boiseau Design Group 8304 Meadow Ridge Court Raleigh State: NC Zip: 27615 Email: KBDGKEN@aol.com Last: Boisseau
(919)847-5860
First: Kenn
Attorney Company: Address: City: Phone Contact Name: Blanco Tackabery & Matamoros, P.A. 110 S. Stratford Road, Fifth Floor or P. O. Drawer 25008 Winston-Salem State: NC Zip: 27114 Email: dlm@blancolaw.com Last: McKenney
(336)293-9000
First: Deborah
Investor Company: Address: City: Phone Contact Name: Community Affordable Housing Equity Corporation 7700 Falls of Neuse Road, Suite 200 Raleigh State: NC Zip: 27615 Email: gmayo@cahec.com Last: Mayo
(919)788-1810
First: Greg
Consultant/Application Preparer (if different from developer) Company: Address: City: Phone Contact Name: First: State: Email: Last: Zip:
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Identity of Interest?
Harold K. Jordan & Company, Inc. 1086 Classic Road Apex State: NC Zip: 27539 Email: tcastillo@hkjconstruction.com Last: Castillo
(919)303-3652
First: Tony
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29,162
500 4,000
1,800
2,500 66,302
5,000 13,000
17,000 35,000
1,500
2,880
7,980 1,500
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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):
2,000
4,000 1,000
Miscellaneous Operating & Maintenance Expenses SUBTOTAL Taxes and Insurance Real Estate Taxes Payroll Taxes (FICA) Miscellaneous Taxes, Licenses and Permits Property and Liability Insurance (Hazard) Fidelity Bond Insurance Workmen's Compensation Health Insurance and Other Employee Benefits Other Insurance:
59,360
31,300 3,725
SUBTOTAL Supportive Service Expenses Service Coordinator Service Supplies Tenant Association Funds Other Expenses (specify):
50,690
2,000 400
2,400
15,000 15,000
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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
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333,396
2,100 9,900 345,396 24,178 321,218 228,752 92,466 80,405 12,061 1.15
* 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.
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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".
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Minimum Set-Asides
MINIMUM REQUIRED SET ASIDES (No Points Awarded): Select one of the following two options: 20% of the units are rent restricted and occupied by households with incomes at or below 50% of the median income (Note: No Tax Credit Eligible Units in the the project can exceed 50% of median income) 40% of the units are rent restricted and occupied by households with incomes at or below 60% of the median income (Note: No Tax Credit Eligible Units in the the project can exceed 60% of median income) If requesting RPP funds: 40% of the units are occupied by households with incomes at or below 50% of median income. State Tax Credit and QAP Targeting Points: Moderate Income County: At least twenty-five percent (25%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income. At least fifty percent (50%) of qualified units will be affordable to households with incomes at or below fifty percent (50%) of county median income. At least fifty percent (50%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income. Tax Exempt Bonds Threshold requirement (select one): At least ten percent (10%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income. At least five percent (5%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income. Eligible for targeting points (select one): At least twenty percent (20%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income. At least ten percent(10%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income.
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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 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) G Local Government Letter Confirming Zoning including any pending notices or hearings (original on letterhead, no fax or photocopies) H Letters from Local Utility Providers regarding availability and capacity (original on letterhead, no fax or photocopies) I Documentation from utility company or local PHA to support estimated utility costs J Appraisal (required for land costs greater than $15,000 and for all Adaptive Re-use and Rehab projects) K 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) L Hazard and structural inspection and termite reports (Adaptive Re-use and Rehab projects only) M Copy of certificate of occupancy or proof of placed-in-service date (Rehabs Only) N 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. O 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. P 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. Q Statement regarding terms of Deferred Developer Fee. If a nonprofit is involved, a resolution from their board approving deferral of fee is required. R Inducement Resolution (Tax-Exempt Bond Financed Projects only)