Rosedale Phase II

8/6/2019 Rosedale Phase II

1/25

Is project in Qualified Census Tract or Difficult to Develop Area?

New Construction/Adaptive Reuse:

Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project?

If yes, list names of previous phase(s):If yes, list names of previous phase(s):

Will the project meet Energy Star standards as defined in Appendix B?

Does a community revitalization plan exist?

Target Population: Elderly (RHS/HUD)

Will the project be receiving project based federal rental assistance?

If yes, provide the subsidy source:If yes, provide the subsidy source: RD and number of units:and number of units:

Indicate below any additional targeting for special populations proposed for this project:

Print Preview - Full Application

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

Project Description

Project Name: Rosedale Phase II

Address: 121 Holly Lane

City: Forest City County: Rutherford Zip: 28043

Census Tract: 9608 Block Group: 2004

Yes

Political Jurisdiction: Town of Forest City

Jurisdiction CEO Name: First: Last:James Gibson Title: MayorJurisdiction Address: 128 N. Powell Street

Jurisdiction City: Forest City Zip: 28043

Jurisdiction Phone: (828)248-5202

Site Latitude: 35.33

Site Longitude: -81.87

Project Type: Rehab

Rehab:

Is this project a previously awarded tax credit development? No

If yes, what year were credits awarded?:

Number of residents holding Section 8 vouchers: 0

No

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:

Yes

2424

Mobility impaired handicapped: 5% of units comply with QAP Section IV(F)(3) (in addition to the units required by other federal andstate codes.)


2/25

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:


3/25

Indicate below an individual or a validly existing entity (a corporation, nonprofit, limited partnership or LLC) as the official applicant. UnderQAP Section III(C)(5) only this individual or entity will be able to make decisions with regard to this application. If awarded the applicantmust become part of the ownership entity. The applicant will execute the signature page for this application.

Applicant Information

Applicant Name: Southland Partners LLC

Address: 131 Matthews Station Street, Suite 2-F

City: State: NC Zip:Matthews 28105

Contact: First: Last: Title:Tom Honeycutt

Telephone: (704)321-1526

Alt Phone:

Fax: (704)321-1562

Email Address: [email protected]

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


4/25

Total Site Acreage: Total Buildable Acreage:

If buildable acreage is less than total acreage, please explain:

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?

If yes, please describe:

Are existing buildings on the site currently occupied?

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?

If no, please explain:

Is any portion of the site located inside the 100 year floodplain?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 Description

3.5 3.5

No

Yes

This is a fully occupied Rural Development elderly property in need of rehab. No relocation ordemolition will be required in order to complete the rehab.

No

No

Yes

No


5/25


6/25

Does the owner have fee simple ownership of the property (site/buildings)?

If yes provide:

Purchase Date: Purchase Price:

If no:

Site Control

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?If yes, specify the relationship:

No

(c) Enter the current expiration date of the option/contract to purchase: 11/15/2007

(D) Enter Purchase Price: 300,000


7/25

Present zoning classification of the site:

Is multifamily use permitted?

Are variances, special or conditional use permits or any other item requiring a public hearing needed to develop this proposal?

If yes, have the hearings been completed and permits been obtained?If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for obtainingthem:

Are there any existing conditions of historical significance located on the project site that will require State Historic Preservation office

review?

If yes, describe below:

Are there any existing conditions of environmental significance located on the project site?

If yes, describe below:

Zoning

MF

Yes

No

No

No


8/25


9/25

EMail: [email protected] Nonprofit: No

Org: Timothy L. Gunderman

First Name: Tim Last Name: Gunderman Function: Principal

Address: 2021 Cross Beam Drive

City: Charlotte State: NC Zip: 28217

Phone: (704)357-6000 Fax: (704)357-1881

EMail: [email protected] Nonprofit: No


10/25

The Median Income for Rutherford county is $47,100.

Low Income Units

Employee Units (will add to Low Income Unit total)

Market Rate Units

Statistics

Square Footage Information

Notes

Unit Mix

Type # BRs Net Sq.Ft.Total

# Units#Units

MonthlyRent

UtilityAllowance

MandatoryServ. Fees

**TotalHousing Exp.

Gdn Apt 1 600 10 2 415 95 0 510

Gdn Apt 1 600 14 0 415 95 0 510

Utilities included in rents: Water/Sewer Electric Gas Other trash pickup


# Units#Units

MonthlyRent

UtilityAllowance

MandatoryServ. Fees

**TotalHousing Exp.

Utilities included in rents: Water/Sewer Electric Gas Other


# Units#Units

MonthlyRent

UtilityAllowance

MandatoryServ. Fees

**TotalHousing Exp.

Utilities included in rents: Water/Sewer Electric Gas Other

AllUnits

Units

Gross MonthlyRental Income

Low Income....... 24 2 9960

Market Rate.......

Totals............... 24 2 9960

Proposed number of residential buildings: 6 Maximum number of stories in buildings: 1

Project Includes:Separate community building -- Sq. Ft. (Floor Area):Sq. Ft. (Floor Area):

Community space within residential bulding(s) -- Sq. Ft. (Floor Area):Sq. Ft. (Floor Area): 1,0001,000

Elevators -- Number of Elevators:Number of Elevators:

Gross Floor Square Footage: 15,400

Total Net Sq. Ft. (All Heated Areas): 14,630

** Please refer to the Income Limits and Maximum Housing Expense Table to ensure that Total Monthly Tenant Expenses for lowincome units are within established thresholds.


11/25

Specify Low Income Unit Targeting in table below. List each applicable targeting combination in a separate row below. Click [Add] tocreate another row. Click "X" (at the left of each row) to delete a row. Add as many rows as needed.

Total Low Income Units:

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

Targeting

# BRs Units %

1 10 targeted at 50 percent of median income affordable to/occupied by

1 14 targeted at 60 percent of median income affordable to/occupied by

24


12/25

Estimated pricing on sale of Federal Tax Credits: $0.

Remarks concerning project funding sources:(Please be sure to include the name of the funding source(s))

Funding Sources

Source AmountNon-

Amortizing*Rate(%)

Term(Years)

Amort.Period(Years)

AnnualDebt

Service

Bank Loan 0

RPP Loan 0

Local Gov. Loan - Specify:0

RD 515 Loan 320,000 1.00 30 50 8,135

RD 538 Loan - Specify:0

AHP Loan 0

Other Loan 1 - Specify:0

Other Loan 2 - Specify:0

Other Loan 3 - Specify: 0

Tax Exempt Bonds 0

State Tax Credit(Loan) 198,396 0 30 30 0

State Tax Credit(Direct Refund) 0

Equity: Federal LIHTC 1,374,499

Non-Repayable Grant 0

Equity: Historic Tax Credits 0

Deferred Developer Fees 0

Owner Investment 0 Other - Specify:

0

Total Sources** 1,892,895

* "Non-amortizing" indicates that the loan does not have a fixed annual debt service. For these items, you must fill in 20-year debtservice below.

** Total Sources must equal total replacement cost in Project Development Cost (PDC) section.

85

the RD 515 amount shown is the approximate mortgage balance. The actual annual paymentto be assumed is greater than that calculated by the spreadsheet. Tax credit pricing is set atthe agencies published minimum even though we have a current pricing slightly more. Wefeel, and the market indicates that the pricing may continue downward from the pricing wehave currently, hence our use of the agencies minimum.


13/25


14/25

Comments:

SUBTOTAL (lines 38 through 45) 270,000

46 Rent up Reserve 7,200

47 Operating Reserve

48 Other Reserve (specify)

49 Other Reserve (specify)

50 DEVELOPMENT COST (lines 1-49) 1,848,895 256,000 1,545,362

51 Less Federal Financing52 Less Disproportionate Standard

53 Less Nonqualified Nonrecourse Financing

54 Less Historic Tax Credit (residential) 0

55 TOTAL ELIGIBLE BASIS 1,801,362 256,000 1,545,362

56 Applicable Fraction (percentage of LI Units) 100.00% 100% 100%

57 Basis Before Boost 1,801,362 256,000 1,545,362

58 Boost for QCT/DDA (if applicable, enter 130%) 130.00% 130.00%

59 TOTAL QUALIFIED BASIS 2,341,770 332,800 2,008,970

60 Tax Credit Rate 3.48 8.05

61 Federal Tax Credits at Estimated Rate 173,303 11,581 161,722

62 Federal Tax Credits at 8.5% or 3.75% 183,242 12,480 170,762

63 Max Federal Tax Credits (With Energy Star - Lesser of $8,500 per unit or$800,000, w/o - Lesser of $8,000 per unit or $800,000) 192,000

64 Federal Tax Credits Requested 161,722 0 161,722

65 Land Cost 44,000

66 TOTAL REPLACEMENT COST 1,892,895

FEDERAL TAX CREDITS IF AWARDED 183,242

Please note that the total credits requested is well below $250,000 and that there is no developmentfee claimed on the acquisition.

Total Replacement Cost per unit: 76,737

Federal Tax Credits (line 62) per unit: 7,635


15/25

Please provide a detailed description of the proposed project:

Construction (check all that apply):

Brick Vinyl Wood HardiPlank Balconies/Patios Sunrooms Front Porches

Front Gables or Dormers Wide Banding or Vertical/Horizontal Siding

Other:

Have you built other tax credit developments that use the same building design as this project?

If yes, please provide name and address:

Site Amenities:

Onsite Activities:

Landscaping Plans:

Interior Apartment Amenities:

Market Study Information

Rosedale II is an existing 24 unit elderly development financed by USDA Rural Development with 24units of rental assistance. It is fully occupied at this time and in need of rehabilitation.

No

gazebo, expanded community room with tv viewing and space for activities,on site office,

Those generally associated with an elderly site are to be expanded based on the increased spaceavailable in the community room.

The existing landscaping will be clean up, additions made where needed, pruning, seeding and newbedding as needed. A gazebo will be added and a new site sign.


16/25

Do you plan to submit additional market data (market study, etc.) that you want considered?

If yes, please make sure to include the additional information in your pre-application packet.

new and updated light fixtures and plumbing, new cabinets, vanities and countertops, floor coveringreplacement, new door hardware, some new appliances, new HVAC at 13 seer, new mini blinds,new emergency alarms

Yes


17/25

Briefly describe your site in each of the following categories:

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

Applicant's Site Evaluation

NEIGHBORHOOD CHARACTERISTICS

Trend and direction of real estate development and area economic health. Physical condition ofbuildings and improvements. Concentration of affordable housing.Forest City is a stable rural town not far from the I40 corridor undergoing growth after a period oftime recovering from major changes in the areas employment base. Rosedale II is an establisheddevelopment for the elderly needing rehabilitation in order to maintain its viability and continue toprovide affordable housing for the elderly in the community.

SURROUNDING LAND USES AND AMENITIES

Suitability of surrounding development. Land use pattern is residential in character (single andmultifamily housing) with a balance of other uses (particularly retail and amenities). Effect ofindustrial, large-scale institutional or other incompatible uses, including but not limited to: wastewatertreatment facilities, high traffic corridors, junkyards, prisons, landfills, large swamps, distributionfacilities, 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 orpollution). Amount and character of vacant, undeveloped land.The surrounding property is primarily single family residential with an adjacent multifamily site. Thereare no incopatible or detrimental uses in the area.

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 ofproject sign(s) in relation to traffic corridors.This is not a high traffic community so no such problems exist. Adequate traffic constrols are inplace.

Degree of on-site negative features and physical barriers that will impede project construction oradversely 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 (foradaptive 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 or physical barriers.

Similarity of scale and aesthetics/architecture between project and surroundings.The development blends well with it's surroundings.

Grocery Store1.5 Community/Senior Center

Mall/Strip Center1.25 Hospital

Outdoor Athletic Fields Pharmacy1.5

Day Care/After School Basic Health Care2.5


18/25

Other facilities or services:

Schools.75 Medical Offices2.5

Public Transportation Stop Bank/Credit Union1.5

Convenience Store1.25 Restaurants1

Basketball/Tennis Courts Professional Services1

Public Parks2 Movie Theater

Gas Station1.25 Video Rental

Library4 Public Safety (Fire/Police)2

Fitness/Nature Trails Post Office2

Public Swimming Pools


19/25


20/25


21/25

Project Operations (Year One)

Projected Operating Costs

Administrative Expenses

Advertising 864

Office Salaries

Office Supplies 500

Office or Model Apartment Rent

Management Fee 12,096

Manager or Superintendent Salaries 6,796

Manager or Superintendent Rent Free Unit

Legal Expenses (Project) 72

Auditing Expenses (Project) 4,000

Bookkeeping Fees/Accounting Services

Telephone and Answering Service 800

Bad Debts

Other Administrative Expenses (specify):

SUBTOTAL 25,128

Utilities Expense

Fuel Oil

Electricity (Light and Misc. Power) 5,650

Water 360

Gas

Sewer 320

SUBTOTAL 6,330

Operating and Maintenance Expenses

Janitor and Cleaning Payroll 600

Janitor and Cleaning Supplies 300

Janitor and Cleaning Contract

Exterminating Payroll/Contract 600

Exterminating SuppliesGarbage and Trash Removal 1,440

Security Payroll/Contract

Grounds Payroll

Grounds Supplies 2,000

Grounds Contract 5,184

Repairs Payroll 9,164

Repairs Material 2,500

Repairs Contract

Elevator Maintenance/Contract

Heating/Cooling Repairs and Maintenance 1,500

Swimming Pool Maintenance/Contract

Snow Removal 1,000Decorating Payroll/Contract 1,000

Decorating Supplies 2,000

Other (specify):

Miscellaneous Operating & Maintenance Expenses

SUBTOTAL 27,288

Taxes and Insurance

Real Estate Taxes 13,815

Payroll Taxes (FICA) 2,015


22/25

Miscellaneous Taxes, Licenses and Permits 300

Property and Liability Insurance (Hazard) 6,136

Fidelity Bond Insurance 300

Workmen's Compensation

Health Insurance and Other Employee Benefits

Other Insurance:

SUBTOTAL 22,566Supportive Service Expenses

Service Coordinator

Service Supplies

Tenant Association Funds

Other Expenses (specify):

SUBTOTAL 0

Reserves

Replacement Reserves 6,002

SUBTOTAL 6,002

TOTAL OPERATING EXPENSES 87,314

ADJUSTED TOTAL OPERATING EXPENSES(Does not include taxes, reserves and resident support services) * 67,497

TOTAL UNITS(from total units in the Unit Mix section)

24

PER UNIT PER YEAR 2,812


23/25


24/25

MINIMUM REQUIRED SET ASIDES (No Points Awarded):

Minimum Set-Asides

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: NoTax 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: NoTax Credit Eligible Units in the the project can exceed 60% of median income)

If requesting RPP funds:

40% of the units are occupied by households with incomes at or below 50% of median income.

State Tax Credit and QAP Targeting Points:

Low Income County:

At least forty percent (40%) of qualified units will be affordable to households with incomes at or below fifty percent (50%) ofcounty median income.

At least forty percent (40%) of qualified units will be affordable to and occupied by households with incomes at or below fiftypercent (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 fiftypercent (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.


25/25

PLEASE indicate which of the following exhibits are attached to your application. Others may be required as noted.

Full Application Checklist

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 Mapshowing 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 orphotocopies)

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 x36 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 projectsinvolving 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 governmentfunds). For Rehabs with existing loans provide 1) copies of loan documents, 2) current loan balances from existing lenderswith 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 inAppendix I). For projects with existing PBRA contracts, provide a copy of the current contract and bank statement or otherdocumentation 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 approvingdeferral of fee is required.

T Inducement Resolution (Tax-Exempt Bond Financed Projects only)

Rosedale Phase II

Documents

Transcript of Rosedale Phase II