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Project Description
Project Name: Chowan Court I Apartments Address: City: 101 Davis Place Edenton County: Chowan Zip: 27932 Block Group: 6
Is project in Qualified Census Tract or Difficult to Develop Area? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: 1st Congressional District Last: Vaughn Title: Mayor 500 South Broad Street, P.O. Box 300 Edenton (252)482-2155 Zip: 27932
36.061996 -76.61996
Project Type: Rehab 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): 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: 8 Will the project meet Energy Star standards as defined in Appendix B? Yes 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: Family Will the project be receiving project based federal rental assistance? Yes If yes, provide the subsidy source: HUD and number of units: 33 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: 0 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 5 Remarks: This is an existing project with no permanent displacement nor a great deal of turnover anticipated. The owner will make a good faith effort to give priority to the disabled or homeless subject to approval from HUD.
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: GDJ Developer, LLC P.O. Box 25168 Winston-Salem First: Gaye (336)231-8125 (336)765-0424 (336)765-3831 gmorgan@cmc-nc.com State: NC Zip: 27114-5168 Last: Morgan Title: Member
NOTE: Email Address above will be used for communication between NCHFA and Applicant.
Site Description
Total Site Acreage: 6.16 Total Buildable Acreage: 6.16 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
Are existing buildings on the site currently occupied? Yes If yes: (a) Briefly describe the situation: Annualized occupancy for 2006 was 97%. It is anticipated that displacement will be limited to temporary moves to other vacant units within the project while rehabilitation of units is completed. This will serve to limit the inconvenience and disruption to the residents and increase the likelihood that residents will remain in the property, thus reducing vacancy loss. Temporary relocation in the project will be necessary in order to abate and/or encapsulate asbestos tile flooring and for the installation of major mechanicals and HVAC equipment.
(b) Will tenant displacement be temporary? Yes (c) Will tenant displacement be permanent? No 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)? Yes If yes provide: Purchase Date: 7/6/2005 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:
(c) Enter the current expiration date of the option/contract to purchase: (D) Enter Purchase Price:
Zoning
Present zoning classification of the site: R5 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? No 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 obtaining them:
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: Asbestos Tile Flooring
Ownership Entity
Owner Name: Chowan Court I, LLC Address: City: P.O. Box 25168 Winston-Salem State: NC Zip: 27114-5168 20-2943144 (If assigned)
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:
First Name: Gaye Address: City: Phone: EMail: P.O. Box 25168 Winston-Salem (336)231-8125 gmorgan@cmc-nc.com
State: NC
Zip: 27114-5168
Org:
First Name: David Address: City: Phone: EMail: P.O. Box 25168 Winston-Salem (336)231-8146 deagan@cmc-nc.com
State: NC
Zip: 27114-5168
Org:
Chowan Court I, LLC Last Name: Eagan, III Function: Managing Member
First Name: John Address: City: Phone: EMail: 218 North Main Street Mooresville (704)663-6392 jeagan@alltel.net
State: NC
Zip: 28115
Unit Mix
The Median Income for Chowan county is $47,100. Low Income Units Type Twn Hse Twn Hse Twn Hse Twn Hse Total # BRs Net Sq.Ft. # Units 2 3 2 3 874 1120 874 1120 14 18 11 6 # Units 0 0 0 0 Monthly Rent 387 399 485 618 Electric Utility Allowance 108 117 108 117 Gas Mandatory Serv. Fees 0 0 0 0 Other Trash Collection **Total Housing Exp. 495 516 593 735
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.
Water/Sewer
Market Rate Units Type Twn Hse Total # BRs Net Sq.Ft. # Units 3 1120 1 # Units 0 Monthly Rent 399 Electric Utility Allowance 117 Gas Mandatory Serv. Fees 0 Other Trash Collection **Total Housing Exp. 516
Water/Sewer
Statistics All Units Low Income....... Market Rate....... Totals............... 49 1 50 Gross Monthly Rental Income 21643 399 22042
Units 0 0 0
Separate community building - Sq. Ft. (Floor Area): 2,436 Community space within residential bulding(s) - Sq. Ft. (Floor Area): Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 52,286
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 2 2 3 3 10 14 10 15
% percent of median income affordable to percent of median income affordable to/occupied by percent of median income affordable to percent of median income affordable to/occupied by
49
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: 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
1,732,259
30
30
3,521,508
233
5,254,000
* "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. 89 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) It is anticipated that either Enterprise Social Investment Corporation or Raymond James Tax Credit Fund will provide equity to the property; both of which have requested the opportunity to do so.
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) 65,000 Other Non-basis Expense (specify) Other Non-basis Expense (specify) 10,257 146,557 30,000 10,000 2,200 33,490 10,000 750 1,000 27,500 114,940 50,000 100,000 534,339 9,339 50,000 100,000 525,000 10,000 30,000 10,000 8,000 2,500 6,500 5,500 8,000 4,200 8,000 2,500 6,500 5,500 8,000 4,200 195,000 153,389 54,197 216,789 168,107 40,000 20,000 30,000 3,717,729 7,800 31,400 62,400 7,800 31,400 62,400 195,000 153,389 54,197 216,789 168,107 40,000 20,000 30,000 TOTAL COST 233,463 86,000 322,500 2,198,284 Eligible Basis 30% PV 70% PV 233,463 86,000 322,500 2,198,284
43 Rent-up Expense
SUBTOTAL (lines 38 through 45) 46 Rent up Reserve 47 Operating Reserve 48 49 Other Reserve (specify) Rental Subsidy Deficit Reserve Other Reserve (specify) Initial Replacement Reserve
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
0 4,588,368 98.00% 4,496,599 5,774,195 453,877 479,504 425,000 416,500 195,000 5,254,000 425,000 416,500 242,802 98% 237,945 100.00% 237,945 3.45 8,209 8,922 4,345,566 98% 4,258,654 130.00% 5,536,250 8.05 445,668 470,581
Comments: In an effort to reduce the likelihood of a possible conflict between the eligibility requirements for the HUD Section 8 and IRS Section 42 regs; the developer has elected to apply for tax credits on 98% of the units, rather than 100%. HUD Section 8 regs allow for occupancy of households up to 80% of median income. The developer deems it advisable to set-aside one unit in the unlikely event that an applicant with income exceeding 60% of income might qualify for section 8 assistance at some point in the future. At current rents, a two person household with income at 61% of median income would not qualify for rental assistance on a two bedroom unit as the unit rent is lower than the rent payable by the household at 30% of their income. An even greater difference occurs with a 3 person household on a three bedroom unit. Total Replacement Cost per unit: Federal Tax Credits (line 62) per unit: 94,521 9,590
Vinyl shutters, Vinyl clad insulated windows and Full view tempered glass storm doors.
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: Furnished Community Center/Building with kitchenette, computer lab, management, maintenance and service coordinator offices, fenced playground and tot lot, picnic shelter with grill and other recreational amenities.
Onsite Activities: Community Center is planned with part-time service coordinator. Service Coordinator to link programs available in the community for the residents. Particular emphasis to be placed on programs for children, including, but not limited to an After School/Summer program for children. A computer lab to be installed in the Community Center to allow residents to access the internet and to provide the necessary tools for computer related training and educational courses available in the community. Landscaping Plans: Existing lawns are mature but landscaping at the site is minimal. Plans include extensive foundation landscaping as well as numerous flowering trees throughout the property
Interior Apartment Amenities: 13 seer energy efficient heat pumps to provide central heating and air conditioning, stove with selfcleaning oven, frost-free refrigerator with ice-maker, dishwasher, disposal, carpet/vinyl flooring and storm doors.
Do you plan to submit additional market data (market study, etc.) that you want considered? No If yes, please make sure to include the additional information in your pre-application packet.
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 property is located within a well established residential neighborhood. The areas to the immediate south and west of the property are comprised of single family housing. A small tract of vacant land adjoins north side of the property while more single family homes and undeveloped land adjoining Twiddy Avenue are to the east of the site. There are no large scale industrial, institutional or incompatable uses within the surrounding neighborhood. 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 property has public streets which adjoin three sides of the property. Twiddy Ave. is the most traveled of these streets as a connector to more major thoroughfares in Edenton. The surrounding roads that service the area contain adequate traffic controls, namely stop signs and pose no additional burdens on public facilities. The Town of Edenton has a very limited mass transit system that consists of a few trolleys through the more historical parts of town. The closest trolley stop is approximately 3/4 mile from the property. The buildings and project sign are clearly visible from the access points 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 major negative features or physical barriers that will impede rehabilitation of this property. The existence of asbestos in the floor tiles that will need to be removed will make the rehabilitation more difficult but does not present an obstacle to the successful completion of the proposed rehabilitation.
Similarity of scale and aesthetics/architecture between project and surroundings. The project is similar in construction to much of the surrounding residential housing.
For each applicable neighborhood feature, enter distance from project in miles.
2 2 3 10 3
Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools
3 2 4 2 2
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 2 1 3 2 2 2 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools Other facilities or services: 2 2 2 3 2 1
Development Team
Provide contact information for development team members below: Management Agent Company: Community Management Corporation Address: City: Phone P. O. Box 25168 Winston-Salem (336)231-8146 State: NC Zip: 27114-5168 Email: deagan@cmc-nc.com Last: Eagan
Ross/Deckard Architects, PA 3200 Atlantic Avenue, Suite 110 Raleigh (919)875-0001 State: NC Zip: 27604 Email: jr@rossdeckardarchitects.com Last: Ross
Blanco, Tackabery, Combs & Matamoros 110 South Stratford Road Winston-Salem (336)293-9013 State: NC Zip: 27104 Email: ram@btcmlaw.com Last: Matamoros
Raymond James Tax Credit Fund 880 Carillon Parkway St. Petersburg (727)567-8455 State: FL Zip: 33716 Email: craig.descalzi@raymondjames.c Last: Descalzi
Consultant/Application Preparer (if different from developer) Company: Address: City: Phone Contact Name: First: State: Email: Last: Zip:
Identity of Interest? General Contractor Company: Mutual Builders, Inc. Address: City: Phone P.O. Box 270 Smithfield (919)934-0882 State: NC Zip: 27577 Email: millard.stallings@mutualbuilders Last: Stallings
3,600 62,800
10,600 9,800
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): Training/Mileage 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 9,000 250 1,200 5,200
32,450 12,000 800 500 700 14,000 17,500 17,500 212,870 169,370 50 3,387
212,870 43,349
43,349
* 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: Low Income County: At least forty percent (40%) of qualified units will be affordable to households with incomes at or below fifty percent (50%) of county median income. At least forty percent (40%) 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.