Print Preview - Full Application

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

Project Description
Project Name: Maplewood Square Address: City: 1208 Chapel Hill Road Durham County: Durham Zip: 27701 Block Group: 3

Census Tract: 5.00

Is project in Qualified Census Tract or Difficult to Develop Area? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: City of Durham Last: Baker Title: City Manager 101 City Hall Plaza, Durham, NC 27701 Durham (919)560-4222 Zip: 27701

Jurisdiction CEO Name: First: Patrick

Site Latitude: Site Longitude:

35.993851 -78.921271

Project Type: New Construction New Construction/Adaptive Reuse: Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project? No If yes, list names of previous phase(s): Rehab: Is this project a previously awarded tax credit development? If yes, what year were credits awarded?: Number of residents holding Section 8 vouchers: Will the project meet Energy Star standards as defined in Appendix B? Yes Does a community revitalization plan exist? Yes Will the project use steel and concrete construction and have at least 4 stories? 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: 2 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 5 Remarks: Five apartments, including 3 one bedroom and 2 two bedroom units, will be set aside for persons with disabilities. DHIC plans on using the Key program to subsidize the rents of these units.

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: (919)832-2206 sam@dhic.org DHIC, Inc. / Self-Help / Durham Community Land Trustees 113 S. Wilmington Street Raleigh First: Sam (919)832-4345 State: NC Zip: 27601 Last: Eyre Title: Project Manager

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

Site Description
Total Site Acreage: 3 Total Buildable Acreage: 1.3 If buildable acreage is less than total acreage, please explain: Forested slopes on the west end of the site will be undisturbed natural area. A stormwater detention area may be needed on the lowest lying part of the site. The building will be located on the highest and most level part of the site.

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

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

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

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

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

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

Site Control
Does the owner have fee simple ownership of the property (site/buildings)? 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? No If yes, specify the relationship:

Purchase Price:

(c) Enter the current expiration date of the option/contract to purchase: 12/31/2007 (D) Enter Purchase Price: 0

Zoning
Present zoning classification of the site: Urban Residential - Multifamily; 30 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: The City of Durham held a public hearing on May 7, 2007 for closing Whitcomb Street. Durham City Council will vote to close Whitcomb Street after Maplewood Square recieves a tax credit award, approval to relocate city park has been recieved, and land parcels for Maplewood Square are recombined. No permits or further public hearings are required.

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: Maplewood Partners, LLC Address: City: 113 S. Wilmington Street Raleigh State: NC Zip: 27601 (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? Is the applicant requesting that the Agency treat the application as CHDO sponsored?

Yes Yes

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

Org:

Maplewood Senior Housing, Inc. Last Name: Warren Function: Managing Member

First Name: Gregory Address: City: Phone: EMail: 113 S. Wilmington Street Raleigh (919)832-4345 gregg@dhic.org

State: NC

Zip: 27601

Fax: (919)832-2206 Nonprofit: No

Org:

DHIC, Inc Last Name: Warren Function: Member

First Name: Gregory Address: City: Phone: EMail: 113 S. Wilmington Street Raleigh (919)832-4345 gregg@dhic.org

State: NC Fax: (919)832-2206 Nonprofit: Yes

Zip: 27601

Org:

Durham Community Land Trustees Last Name: Mack Function: Member

First Name: Selina Address: City: Phone: EMail:

1208 West Chapel Hill Street Durham (919)490-0063 selina@dclt.org State: NC Fax: (919)489-3974 Nonprofit: Yes Zip: 27701

Org:

Self-Help Last Name: Blum Function: Member

First Name: Lanier Address: City: Phone: PO Box 3619 Durham (919)956-4682

State: NC Fax: (919)956-4605

Zip: 27702

EMail:

lanier.blum@self-help.org

Nonprofit: Yes

Unit Mix
The Median Income for Durham county is $71,300. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt # BRs Net Sq.Ft. 1 1 1 1 2 2 2 2 713 713 713 713 947 947 947 947 Total # Units 3 2 3 18 2 1 2 1 # Units 2 1 0 0 1 0 0 0 Monthly Rent 354 310 400 400 424 370 470 470 Electric Utility Allowance 62 62 62 62 80 80 80 80 Gas Mandatory Serv. Fees 0 0 0 0 0 0 0 0 Other Trash Removal **Total Housing Exp. 416 372 462 462 504 450 550 550

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............... 32 4 12710 32 Gross Monthly Rental Income 12710

Units 4

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): 1,521 Elevators - Number of Elevators: 1 Square Footage Information

Gross Floor Square Footage:

34,358

Total Net Sq. Ft. (All Heated Areas): 32,503

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 1 2 2 2 2 3 2 3 18 2 1 2 1

Units targeted at 30 targeted at 30 targeted at 50 targeted at 60 targeted at 30 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 percent of median income affordable to/occupied by percent of median income affordable to/occupied by

Total Low Income Units:

32

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

Funding Sources
NonAmortizing* Rate (%) Term (Years) Amort. Period (Years) Annual Debt Service

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

480,000 500,000

2.00 0.00

20 20

20 20

403,709

30

30

2,311,769

19,143

3,714,621

* "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)) The project has no annual debt service. However, according to the projections (see "Projected Cash Flow" page), the project shows negative net cash flow starting in year 10. As illustrated in the "Development Cost" page we have included a $350,000 special operating reserve / sinking fund in our budget to cover projected operating shortfalls for the first 20 years. The assumptions behind this sinking fund are based on conversations with an equity provider and DHICs experience with Lennox Chase Apartments.

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 0 11 0 2 0 12 0 3 0 13 0 4 0 14 0 5 0 15 0 6 0 16 0 7 0 17 0 8 0 18 0 9 0 19 0 10 0 20 0

Local Gov. Loan - City of Durham Year: Amt: Year: Amt: 1 0 11 0 2 0 12 0 3 0 13 0 4 0 14 0 5 0 15 0 6 0 16 0 7 0 17 0 8 0 18 0 9 0 19 0 10 0 20 0

Development Costs
Item Cost Element 1 Purchase of Building(s) (Rehab / Adaptive Reuse only) 2 Demolition (Rehab / Adaptive Reuse only) 3 On-site Improvements 4 Rehabilitation 5 Construction of New Building(s) 6 Accessory Building(s) 7 General Requirements 8 Contractor Overhead 9 Contractor Profit 10 Construction Contingency 11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 12 Architect's Fee - Inspection 13 Engineering Costs SUBTOTAL (lines 1 through 13) 14 Construction Insurance (prorate) 15 Construction Loan Orig. Fee (prorate) 16 Construction Loan Interest (prorate) 17 Construction Loan Credit Enhancement (prorate) 18 Construction Period Taxes (prorate) 19 Water, Sewer and Impact Fees 20 Survey 21 Property Appraisal 22 Environmental Report 23 Market Study 24 Bond Costs 25 Bond Issuance Costs 26 Placement Fee 27 Permanent Loan Origination Fee 28 Permanent Loan Credit Enhancement 29 Title and Recording SUBTOTAL (lines 14 through 29) 30 Real Estate Attorney 31 Other Attorney's Fees 32 Tax Credit Application Fees (Preliminary and Full) 33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 34 Cost Certification / Accounting Fees 35 Tax Opinion 36 Organizational (Partnership) 37 Tax Credit Monitoring Fee SUBTOTAL (lines 30 through 37) 38 Furnishings and Equipment 39 Relocation Expense 40 Developer's Fee 41 42 44 45 Other Basis Expense (specify) Other Basis Expense (specify) 19,200 Other Non-basis Expense (specify) Other Non-basis Expense (specify) 336,000 336,000 7,500 17,600 101,715 40,000 40,000 10,000 200,650 25,000 15,000 2,200 23,415 11,000 11,000 25,000 15,000 8,000 4,200 8,000 4,200 2,800 56,050 15,000 2,800 56,050 15,000 123,094 43,493 173,973 71,764 61,597 12,319 25,000 2,562,806 9,600 20,000 75,000 9,600 20,000 75,000 123,094 43,493 173,973 71,764 61,597 12,319 25,000 1,560,566 1,560,566 491,000 416,000 TOTAL COST Eligible Basis 30% PV 70% PV

43 Rent-up Expense

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

395,200 38,400 65,850 350,000

50 DEVELOPMENT COST (lines 1-49) 51 Less Federal Financing 52 Less Disproportionate Standard 53 Less Nonqualified Nonrecourse Financing 54 Less Historic Tax Credit (residential) 55 TOTAL ELIGIBLE BASIS 56 Applicable Fraction (percentage of LI Units) 57 Basis Before Boost 58 Boost for QCT/DDA (if applicable, enter 130%) 59 TOTAL QUALIFIED BASIS 60 Tax Credit Rate 61 Federal Tax Credits at Estimated Rate 62 Federal Tax Credits at 8.5% or 3.75% Max Federal Tax Credits (With Energy Star - Lesser of $8,500 per unit or 63 $800,000, w/o - Lesser of $8,000 per unit or $800,000) 64 Federal Tax Credits Requested 65 Land Cost 66 TOTAL REPLACEMENT COST FEDERAL TAX CREDITS IF AWARDED

3,714,621

3,105,456

0 3,105,456 100.00% 3,105,456 4,037,092 324,985 343,152 272,000 272,000 0 3,714,621 272,000 272,000 0 100% 0 130.00% 0 3.45 0 0 3,105,456 100% 3,105,456 130.00% 4,037,092 8.05 324,985 343,152

Comments: We request an exception to the development cost limitation because we are building on a challenging infill site that will require significant cut and fill and retaining walls. In addition the 130% basis boost would allow us to get 324,985 in federal tax credits. However, we are limited by the QAP to 8,500 in federal tax credits per unit and are thus requesting only 272,000. $105,000 of the $491,000 listed in on-site improvements are budgeted off-site improvements associated with relocating a Durham City Park.

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

100,135 10,724

Market Study Information

Please provide a detailed description of the proposed project: Maplewood Square will contain 32 one- and two-bedroom units in one three-story building with an elevator. The building will include ample community space, providing several on-site amenities to seniors living at Maplewood Square. The building will be constructed with quality materials and attractive architectural design. The convenient location for Maplewood Square was selected in collaboration with neighborhood supporters and Duke University and is a high priority of organized neighbors and associations. The City of Durham now owns the land for the building and will donate it to this project. The site is in close proximity to grocery and convenience stores, a community center, medical facilities including Duke Hospital, restaurants, public services and other amenities. In addition to the various off-site amenities in close proximity, Maplewood Square will contain on-site amenities including a multi-purpose room with warming kitchen and community gathering space, three outdoor seating areas, resident computer center with at least 2 computers, tenant storage areas, covered porch, laundry rooms, and covered drop off. Five of the units at Maplewood Square will be affordable to senior households with disabilities. We plan on using the KEY program to subsidize the rents for these units. 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: Maplewood Square will include three outdoor sitting areas, multi-purpose room with warming kitchen and community gathering space, resident computer center with high speed internet access and at least 2 computers, tenant storage areas, covered patio with seating, laundry room, on-site office, and covered drop off.

Onsite Activities: We will partner will a local agency to provide supportive services to Maplewood Square residents.

Landscaping Plans: Maplewood Square will be beautifully landscaped with trees, shrubs, and green lawns. Many of the existing trees on the west end of the site will be preserved creating a natural buffer. The covered patio will look out to a landscaped slope providing a natural buffer between Maplewood Square and

the proposed public park.

Interior Apartment Amenities: Range, hood, frost-free refrigerator, interior storage, mini-blinds, pantry, walk-in closets, central air and heat, carpet/vinyl flooring, ample countertop and cabinet space.

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. This neighborhood is a good example of the benefits of targeted planning and investment over several decades to create a livable, convenient neighborhood with a mix of housing occupied primarily by low wage residents. Public investments have created an acceptable environment for private efforts, community activism has promoted stability, and nonprofit collaborators have added technical and operational prowess. Public funds have been invested for more than two decades to renovate about 40 homes for sale or rent to low-income households. In the area bounded by Morehead Ave, Maplewood Cemetery, Duke University Road and Kent Street, where Maplewood will be located, there are six multi-story apartment complexes, several small apartment buildings, and about 90 houses with one to four dwellings, a church and about a dozen houses used as small offices. This mix of houses is nearly all affordable to households with incomes below median, and the apartments are generally affordable to households with incomes below 50% of median. The two largest apartment complexes, on Duke University Road, are primarily occupied by University students and employees and are well maintained. 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 development surrounding Maplewood is suitable for new affordable senior housing. The surrounding area is mainly residential in character with single family and multifamily homes and the site is ideally located for convenient access to a range of stores, services and recreational activities. There are no incompatible land uses in the vicinity. 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 immediate neighborhood surrounding the Maplewood site has adequate public roads to accomodate the site and community. No external traffic will have reason to enter the projects private driveway off Chapel Hill Road, and the short private driveway will reduce speed of cars. The building is designed for maximum curb appeal, with a large porch visible from the street overlooking the private drive and leafy vest pocket park. Siting most of the parking in the rear and providing generous architectural details will enhance this buildings appearance from the street. At the intersections of Chapel Hill Road with Morehead and Duke University Roads, both less than .5 miles from the proposed apartment site, are the stops for two bus routes, one to Duke University and downtown, AMTRAC and regional bus terminals, and the other to downtown and a range of shopping centers, including Lakewood (Food Lion, etc.) and South Square (Sams Club, SuperTarget, etc). 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). This site has no environmental or built impediments but the sloping terrain will require careful design, substantial grading, and construction of retaining walls. An on-site stormwater detention facility will be required. A stream located just on the northwest boundary of the site will retain a minimum 50-foot undisturbed and forested sloping buffer, part of the sites required open space. The site and its surroundings include no flood hazards or protected wetlands, and no other development constraints.

Similarity of scale and aesthetics/architecture between project and surroundings. Maplewood will contribute substantially to the aesthetic appeal of its viewshed. The scale, at three

stories and 32 apartments, will be completely compatible with nearby apartment buildings. Its architectural design will be superior to surrounding apartments, and its compatibility with nearby single family homes will bring considerable improvement to the community. Maplewood Cemetery is owned by the City of Durham and the City initiated donation of this property to Self-Help for development because of City leaders regard for the appearance and function Self-Helps past developments. For each applicable neighborhood feature, enter distance from project in miles. .5 .5 .25 .25 .5 .1 .2 .25 .01 .5 1.0 .5 .5 Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools .5 1.25 1.0 .5 1.25 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 .7 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools 1.0 .5 1.0 1.0 .5 1.0

Other facilities or services:

Development Team
Provide contact information for development team members below: Management Agent Company: RPM Address: City: Phone 412 Fayetteville Street Raleigh (919)836-8888 State: NC Zip: 27601 Email: dawnaRPM@earthlink.net Last: Franklin

Contact Name: First: Dawna

Architect Company: Address: City: Phone

JDavis Architects, PLLC 510 Glenwood Avenue, Suite 201 Raleigh (919)835-1500 State: NC Zip: 27603 Email: bille@jdavisarchitects.com Last: Eagan

Contact Name: First: Bill

Attorney Company: Address: City: Phone

Andrew Foster PO Box 90360 Durham (919)613-7076 State: NC Zip: 27708 Email: foster@law.duke.edu Last: Foster

Contact Name: First: Andrew

Investor Company: Address: City: Phone

Apollo Equity Partners 2101 Rexford Road, Suite 375W Charlotte (980)233-6459 State: NC Zip: 28211 Email: craig.wagner@rbc.com Last: Wagner

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 & Co., Inc. Address: City: Phone 1086 Classic Rd., Suite 201 Apex (919)303-3652 State: NC Zip: 27539 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): software renewal 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)

3,000 0 2,800 0 14,208 16,900 0 0 3,600 2,304 3,200 0 800 46,812 0 3,500 3,100 0 3,100 9,700 2,000 1,600 2,000 768 0 1,800 0 0 905 6,000 13,520 1,200 500 3,000 200 0 100 0 800 0 200 34,593 8,000 3,650

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 8,500 8,000 8,000 131,700 107,200 32 3,350 7,500 100 1,125 3,720

24,095 6,000 2,500

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): 1,600 152,520

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)

154,120 10,788 143,332

131,700 11,632

11,632

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 11 192,626 194,949 0 -2,323 0 1 143,332 131,700 0 11,632 0 12 198,405 202,747 0 -4,342 0 2 147,632 136,968 0 10,664 0 13 204,357 210,857 0 -6,500 0 3 152,061 142,447 0 9,614 0 14 210,488 219,291 0 -8,803 0 4 156,623 148,145 0 8,478 0 15 216,803 228,063 0 -11,260 0 5 161,322 154,071 0 7,251 0 16 223,307 237,186 0 -13,879 0 6 166,162 160,234 0 5,928 0 17 230,006 246,673 0 -16,667 0 7 171,147 166,643 0 4,504 0 18 236,906 256,540 0 -19,634 0 8 176,281 173,309 0 2,972 0 19 244,013 266,802 0 -22,789 0 9 181,569 180,241 0 1,328 0 20 251,333 277,474 0 -26,141 0 10 187,016 187,451 0 -435 0

* 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)