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

Project Description
Project Name: Parkside Apartments Address: City: 306 O'Connor Street Greensboro County: Guilford Zip: 27401 Block Group: 2

Census Tract: 0114.00

Is project in Qualified Census Tract or Difficult to Develop Area? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: City of Greensboro Last: Holliday Title: Mayor 300 West Washington Street Greensboro (336)373-2489 Zip: 27401

Jurisdiction CEO Name: First: Keith

Site Latitude: Site Longitude:

36.05212 -79.79430

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: 59 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: 59 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: 4 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 8 Remarks: Target population The ownership will coordinate with the NC Department of Health and Human Services (DHHS) and a local lead agency to prepare and implement a Targeting Plan. The plan along with program assistance provided by other agencies will allow for people with disabilities and homeless people to live at Parkside. This project was built prior to handicapped regulations and may be difficult to meet the handicapped regulations.

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: Urquhart Development, LLC 309 N. Bloodoworth Street Raleigh First: Thomas (919)829-1801 (919)270-0121 (919)754-0822 [email protected] State: NC Zip: 27601-1107 Last: Urquhart Title: Manager

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

Site Description
Total Site Acreage: 5.09 Total Buildable Acreage: 5.09 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? No If yes, please describe:

Are existing buildings on the site currently occupied? Yes If yes: (a) Briefly describe the situation: This is the renovation of an existing apartment complex. A full temporary relocation plan will be included in the full application to the NCHFA.

(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)? 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: 5/31/2007 (D) Enter Purchase Price: 1,500,000

Zoning
Present zoning classification of the site: RM-12 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? No If yes, describe below:

Ownership Entity
Owner Name: PA Greensboro, LLC Address: City: 309 N. Bloodoworth Street Raleigh State: NC Zip: 27601-1107 (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?

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:

Urquhart Development, LLC Last Name: Urquhart Function: Managing Member

First Name: Thomas Address: City: Phone: EMail: 309 N. Bloodowrth Street Raleigh (919)829-1801 [email protected]

State: NC

Zip: 27601-1107

Fax: (919)754-0822 Nonprofit: No

Org:

RD Lee, Inc. Last Name: Lee Function: Member

First Name: Richard Address: City: Phone: EMail: PO Box 4406 Greensboro (336)314-8181 [email protected]

State: NC Fax: (336)288-3360 Nonprofit: No

Zip: 27404

Unit Mix
The Median Income for Guilford county is $56,400. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt # BRs Net Sq.Ft. 1 1 2 2 3 3 554 554 756 756 903 903 Total # Units 3 7 8 23 7 23 # Units 0 0 0 0 0 0 Monthly Rent 445 445 525 525 585 585 Electric Utility Allowance 76 76 105 105 142 142 Gas Mandatory Serv. Fees 0 0 0 0 0 0 Other trash removal **Total Housing Exp. 521 521 630 630 727 727

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............... 71 0 38275 71 Gross Monthly Rental Income 38275

Units 0

Proposed number of residential buildings: 14 Project Includes:

Maximum number of stories in buildings: 2

Separate community building - Sq. Ft. (Floor Area): Community space within residential bulding(s) - Sq. Ft. (Floor Area): 1,113 Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 61,836

Total Net Sq. Ft. (All Heated Areas): 56,066

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 2 3 1 2 3 3 8 7 7 23 23

Units targeted at 30 targeted at 30 targeted at 30 targeted at 60 targeted at 60 targeted at 60

% percent of median income affordable to percent of median income affordable to percent of median income affordable to percent of median income affordable to percent of median income affordable to percent of median income affordable to

Total Low Income Units:

71

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

Funding Sources
NonAmortizing* Rate (%) 6.50 Term (Years) 25 Amort. Period (Years) 25 Annual Debt Service 113,434

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 1,400,000

883,411

30

30

5,430,957

227,628

7,941,996

* "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. 92 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) Capmark for a FHA insured mortgage. Federal Tax Credit Equity from a syndicator.

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) Envirnomental and other Other Non-basis Expense (specify) Other Non-basis Expense (specify) Syndication costs 20,000 9,000 14,200 9,000 28,000 21,000 10,000 618,173 15,000 45,000 2,200 35,003 12,500 3,500 1,500 39,050 153,753 20,000 286,960 793,997 48,497 20,000 286,960 745,500 12,500 15,000 22,500 5,515,424 35,500 46,000 337,300 18,200 40,500 51,773 15,000 3,600 6,000 5,300 35,500 46,000 245,300 7,000 40,500 51,773 15,000 3,600 6,000 5,300 80,000 204,667 72,316 289,262 238,641 58,000 29,000 80,000 204,667 72,316 289,262 238,641 58,000 29,000 TOTAL COST 1,212,428 149,000 235,010 2,947,100 Eligible Basis 30% PV 70% PV 1,212,428 149,000 235,010 2,947,100

43 Rent-up Expense

SUBTOTAL (lines 38 through 45) 46 Rent up Reserve 47 Operating Reserve 48 49 Other Reserve (working capital reserve) Other Reserve (specify)

1,144,157 21,300 191,617

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

7,644,424

1,260,925

5,870,429

0 7,131,354 100.00% 7,131,354 8,892,482 657,590 695,967 603,500 6,533,966 297,572 7,941,996 603,500 47,284 6,486,682 1,260,925 100% 1,260,925 100.00% 1,260,925 3.43 43,249 47,284 5,870,429 100% 5,870,429 130.00% 7,631,557 8.05 614,340 648,682

Comments: Federal LIHTC equity from a syndicator. Permannet FHA Insured Mortgage from CapMark.

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

103,940 9,802

Market Study Information

Please provide a detailed description of the proposed project: This is an existing project which was built in 1968-1969. The project was financed with a FHA Insured Mortgage under Section 221(d)(3) BMIR. The land was land cleared by urban renewal in the 1960's.

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: Playground

Onsite Activities: Study Groups

Landscaping Plans: Add more planting at the fence, the building and entrance to the project.

Interior Apartment Amenities:

Full Kitchens, vinyl and carpet on floors, new doors, windows cabinets, fixtures etc.

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.

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. The project is located in Greensboro, North Carolina which has strong growth and good economic health. Greensboro's growth is in services and in the four universities and colleges located in Greensboro. The project is in need of substantial renovation. The complex was built in 1969 and is currently showing its age. The project has only baseboard electric heat and no air conditioning. The exteriors of the building and the landscaping need improvements. Parkside Apartments is located in a low-income area of Greensboro and has subsidized housing to the north and to the west. 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. This application anticipates the substantial renovation of an existing affordable housing complex. Parkside Apartments was built in 1968 on land cleared using the Urban Renewal program of the 1960s. The project was developed using a mortgage insured under Section 221(d)(3) and subsidized initially with a Below Market Interest Rate and later with 59 units of Project Based Section 8. The site is located in the triangle formed by OConnor Street, West Florida Avenue, and Randleman Road. The site is approximately 1.5 miles south southwest of Downtown Greensboro. The area immediately surrounding Parkside is a mix of modest and low income residential, retail, commercial and industrial. Sasser Park is a city park across Florida Avenue from the project. Residential uses are to the north, south and west of the site. The primary residential stock north of the site is public housing which has just had a substantial renovation. The housing to the south consists of modest single family homes, and to the west is a combination of single family and apartments including public housing. To the north east and east of the project consists mostly of commercial with banks, heavy commercial with supply houses and heavy industrial. There is a small children day care just to the east of the site. The two largest industrial operations near Parkside Apartments are Carolina Steel with other metal related companies and Gegussa-Stockhausen which manufactures Skin Care products. The heavy commercial and industrial operations do not appear to have adverse effects on this complex. Retail uses occur primarily south of the complex on both Randleman Road and South Eugene Street. Grocery stores, convenience stores restaurants etc. are located on these roads. 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 site is well suited to its use as an apartment complex. The entrance to the site is on OConnor Street which has very little traffic. Florida Avenue is a major thoroughfare which runs east west and Randleman Road runs north south and is a major thoroughfare. Additional major north south roads are South Eugene Street and Freeman Mill Road. The site is visible from both West Florida Avenue and Randleman Road. The signage of the project is visible from both of these roads. There are bus stops adjacent to the complex. There are schools, churches, medical facilities with in walking distance of the complex. 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 negative site features on this site.

Similarity of scale and aesthetics/architecture between project and surroundings. The project has been part of the neighbothood since 1969. The scale of the complex and its architecture are part of this area. It use as apartments is cosistent with its location and neighborhood.

For each applicable neighborhood feature, enter distance from project in miles. 1 1 0.1 0.1 0.4 0 0.2 0.1 0.1 0.2 1.5 0.1 0.6 Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools 0.4 1.9 1 1 1.6 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 0.2 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools 0.2 0.7 7.4 0.2 0.8 0.9

Other facilities or services: The project is within two miles of Guilford College, UNC Greensboro, Bennett College, and NC AT&T University. There are two large hospitals within two miles of the site. The Greensboro Coliseum is approximately 1 mile from the site.

Development Team
Provide contact information for development team members below: Management Agent Company: Affordable Housing Management, Inc. Address: City: Phone 330 S Greene Street, Suite B-11 Greensboro (336)273-0568 State: NC Zip: 27401 Email: [email protected] Last: Levy

Contact Name: First: David

Architect Company: Address: City: Phone

Ross/Deckard Architects, PA 8320 Litchford Road, Suite 114, PO Box 98044 Raleigh (919)875-0001 State: NC Zip: 27624-8044 Email: [email protected] Last: Ross

Contact Name: First: James (JR)

Attorney Company: Address: City: Phone

Blanco, Tackaberry, Combs, & Matamoros 110 South Strafford Street, PO Drawer 25008 Winston-Salem (336)293-9000 State: NC Zip: 27114 Email: [email protected] Last: Matamoros

Contact Name: First: Ronald

Investor Company: Address: City: Phone

Apollo Equity Partners 2101 Rexford Road, Suite 375-W Charlotte (980)233-6462 State: NC Zip: 28211 Email: bflanagan@APOLLOHOUSING Last: Flaggan

Contact Name: First: Brian

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 312 South Third Street, PO Box 270 Smithfield (919)934-0882 State: NC Zip: 27577 Email: Robbie.Parker@mutualbuildersi Last: Parker

Contact Name: First: Robbie

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): Comp. Lic., Postage, copier, background check, other rent exp., resident relations 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): Maint. Travel, Fire Protection, Uniforms, Cleaning Laundry Room, Glass Replacement Miscellaneous Operating & Maintenance Expenses SUBTOTAL Taxes and Insurance Real Estate Taxes Payroll Taxes (FICA) 63,053 49,955 6,747 3,000 1,500 1,936 10,000 35,634 300 500 7,355 1,600 7,584 1,000 4,975 5,112 3,387 4,000 10,117 111,643 31,644 21,331

1,500 25,824 2,753

5,750 234

50 1,500 1,278

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 500 5,175 15,404 2,250 98,631 19,100

500 24,850 24,850 306,261 230,956 71 3,252

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): Late fees, application fees, damages, etc. 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) 4,260 8,520 472,080 33,045 439,035 459,300

306,261 132,774

113,434

19,340 1.17

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 1 439,035 306,261 113,434 19,340 1.17 11 590,026 453,340 113,434 23,252 1.205 2 452,206 318,511 113,434 20,261 1.179 12 607,727 471,474 113,434 22,819 1.201 3 465,772 331,251 113,434 21,087 1.186 13 625,959 490,333 113,434 22,192 1.196 4 479,745 344,501 113,434 21,810 1.192 14 644,738 509,946 113,434 21,358 1.188 5 494,137 358,281 113,434 22,422 1.198 15 664,080 530,344 113,434 20,302 1.179 6 508,961 372,612 113,434 22,915 1.202 16 684,002 551,558 113,434 19,010 1.168 7 524,230 387,516 113,434 23,280 1.205 17 704,522 573,620 113,434 17,468 1.154 8 539,957 403,017 113,434 23,506 1.207 18 725,658 596,565 113,434 15,659 1.138 9 556,156 419,138 113,434 23,584 1.208 19 747,428 620,428 113,434 13,566 1.12 10 572,841 435,904 113,434 23,503 1.207 20 769,851 645,245 113,434 11,172 1.098

* 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)