Elrod Place

Understanding the Project and Its Relationship with the

Local Community

Waterstone Community Association Map±628 Acres of Land/ Clay Road 628 Development, LP

Elrod Place – Leasing/Club Center

Elrod Place – Senior Center

Elrod Place – Single-Family Homes

Elrod Place – Site Plan with Fencing

Elrod Place – Positive Development Issues

Single-family homes and elderly units promote more resident stability.

Focus of rentals will be policemen, firemen, school teachers, municipal employees and other working families in the houses and young families of area residents.

With a shortage of safe and clean houses to rent in Harris County, this type of unit mix has much lower turnover than other rental developments.

Single-family units offer more pride of occupancy with yards, more space, neighborhood atmosphere and overall higher quality of lifestyle.

Elderly residents are generally stable and do not like to move. With elderly units, opportunity exists for grandparents to live

near resident and neighborhood families and assist with grandchildren.

Positive Development Issues (continued)

Only three houses per acre which will be less burden on schools as compared to other single-family developments in subdivision which will have as many as over five houses per acre.

Affordable housing helps attract new commercial and industrial businesses to the area, thus helping the tax base.

Harris County has a three mile concentration policy, so without Commissioner Court approval, there may not be any other affordable family developments in the immediate area.

Social services, including after school tutoring and activities, will be available in the social services building.

On-site van will provide transportation. Rents are not subsidized, only restricted, for this development.

Costs are subsidized, allowing for a higher quality development. Residents may have opportunity to buy after 15 years, thus

giving an extra incentive to maintain their residence.

Elrod Place – Two-Mile Map

Elrod Place – Amenities

Houses will have neo-traditional elevations with large front porches and rear entry garages

Elevations of the elderly cottages will complement the houses Eleven foot ceilings in the living rooms of the elderly units All other rooms have nine foot ceilings in all units A community area with picnic tables and barbecue grills Covered barbeque pavilion Two designated playgrounds with equipment Covered bus depot for pick up of school children Furnished clubhouse for social services and other project related

activities Computer room Furnished community area with kitchen Public 911 telephone Swimming pool Limited access entry with perimeter fencing Ceiling fans in the living rooms and bedrooms of all units Full kitchen appliance packages Numerous energy savings features

Elrod Place – Security

Perimeter fencing with limited access gates Will build a sheriff department substation on site All residents will have to be approved using a third-party credit and

criminal background firm A manager or assistant manager will have a separate house to live on-

site to minimize disturbances A unit is intended to be provided to a sheriff deputy who would patrol

and respond to onsite issues Residents are provided rules and regulations that they must follow For minor infractions, residents are given a warning and then are

subject to eviction For serious infractions including any arrests, residents are given an

immediate notice to vacate Development will be subject to covenants, conditions, and restrictions

for Waterstone Community Association, Inc.

Elrod Place – Maintenance

Full time maintenance staff to maintain property in hgih quality condition

Property will do all lawn care weekly to assure clean appearance and mowed lawns

A reserve account for replacement of $250/unit per year will be set up with the lender to ensure property maintenance

The partnership will also have an initial operating account required by the investor of $300,000

Large financial loss if not properly maintained Third-party supervision by a large financial institution investor and their

designated representatives Additional supervision by State of Texas and Internal Revenue Service

to comply with program requirements Benefits offered to residents monthly for best maintained yard to create

community spirit

HETTIG/KAHN DEVELOPMENT CORP.AND MANAGED PROPERTIES

Hettig/Kahn Development Corp. has actively been in the development, management, and construction business since 1977 building commercial, single family and multifamily developments in the Houston area and elsewhere. W. Barry Kahn who is one of the principals is a member of the Board of Directors of the National Association of Home Builders and is active with state and national housing organizations. John Hettig has won design award for its developments. Darlene Guidry, President of Hettig Management Corp., is a past Houston Apartment Association President, on its Board of Directors, and on the Texas Apartment Association Board.

MANAGED PROPERTIES OWNED:

Almeda Park Apartments Baybrook Park Apartments (Elderly) The Enclave (Single-Family Homes) Fallbrook Ranch Apartments Fountains at Tidwell Apartments Sterling Green Village (Single-Family Homes) Tidwell Estates Apartments Uvalde Ranch Apartments Waterside Court (Single-Family Homes) 5325 Katy Freeway Office Building

Properties Managed by Hettig Management Corporation (continued)

FEE MANAGED:

Bent Tree Apartments Lake Jackson Manor Apartments Lovett Manor Apartments (Elderly) The Manor at Jersey Village Apartments (Elderly) Maryland Manor Apartments Oak Tree Manor Apartments (Elderly) Sun East 55 Plus Apartments (Elderly) Sun North 55 Plus Apartments (Elderly)

Elrod Place Neighborhood Letter

Elrod Place, Ltd. is making an application for the Housing Tax Credit program with the Texas Department of Housing and Community Affairs for Elrod Place, located on the west side of the approximately 3700 block of Elrod, Katy, Harris County, Texas. The development will be a new construction Intergenerational housing community consisting of 76 single-family, four-bedroom houses for families, and 50 one and two-bedroom units for the elderly, of which approximately 11% will be for tenants with approximate incomes of less than 30%, and approximately 88% will be for tenants with approximate incomes of less than 60% of the area’s median income. Those approximate income levels for a family of one (1) are $12,800 (30% AMGI) and $25,620 (60% AMGI); two (2) are $14,650 (30% AMGI) and $29,280 (60% AMGI); three (3) are $16,450 (30% AMGI) and $32,940 (60% AMGI), four (4) are $18,300 (30% AMGI) and $36,600 (60% AMGI); five (5) are $19,750 (30% AMGI) and $39,540 (60% AMGI); six (6) are $21,250 (30% AMGI) and $42,480 (60% AMGI); and eight (8) are $24,150 (30% AMGI) and $48,300 (60% AMGI). Of the 126 units, 123, or 98%, of the units in the Development will be rent restricted. The one and two-bedroom units of the Development will serve the elderly, and the four-bedroom houses will serve family households. The number of units and proposed rents (less utility allowances) for the subject property’s tax credit units are:

49 Senior Cottages:23 – 1 Bedroom Units for $606 3 – 1 Bedroom Units for $26320 – 2 Bedroom Units for $733 3 – 2 Bedroom Units for $321

74 Single-Family Homes:67 – 4 Bedroom Units for $896

7 – 4 Bedroom Units for $365

Elrod Place Neighborhood Letter continued

The development will also offer market rate units not restricted as to income. The number of units and proposed rents for the subject property’s market rate (non-tax credit program) units are:

1 Senior Cottage: 1 – 2 Bedroom Unit for $750

2 Single-Family Homes 2 – 4 Bedroom Units for $950

There will be a public hearing to receive public comment on the proposed development.

Date: Tuesday, April 10, 2007Time: 6:00 p.m.Location: City Hall Annex Chambers Public Level, 900 Bagby, Houston, TX 77002

(713) 247-1840, www.houstontx.gov

If awarded credits, this development would be ready for occupancy by approximately June 2009. For more information on this notice, please contact Darlene Guidry at Investors Management Corp., 5325 Katy Freeway, Suite One, Houston, Texas 77007, (713) 871‑0063. For information, see www.tdhca.state.tx.us

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