Willow Ridge

8/6/2019 Willow Ridge

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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 (55)

Will the project be receiving project based federal rental assistance?

If yes, provide the subsidy source:If yes, provide the subsidy source: 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: Willow Ridge

Address: #TBD Old NC 18

City: Morganton County: Burke Zip: 28655

Census Tract: 207 Block Group: 1003

No

Political Jurisdiction: City of Morganton

Jurisdiction CEO Name: First: Last:Mel Cohen Title: MayorJurisdiction Address: PO Box 3448

Jurisdiction City: Morganton Zip: 28680-3448

Jurisdiction Phone: (828)437-8863

Site Latitude: 35.7233

Site Longitude: -81.67129

Project Type: New Construction

Yes

The Willows

Rehab:

Is this project a previously awarded tax credit development?

If yes, what year were credits awarded?:

Number of residents holding Section 8 vouchers:

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:

No

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


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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: This development is essentially a second phase of The Willows, a very successful age restrictedcommunity, which is well accepted in the community and recieves strong support from citygovernment and local leaders. The Willows continues to enjoy high occupancy and a waiting list due

to its strong popularity among Morganton senior citizens.


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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 St., Suite 2-F

City: State: NC Zip:Matthews 28105

Contact: First: Last: Title:Tom Honeycutt Member Manager

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.


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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

3.60 3.60

No

No

Yes

No


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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:

Yes

John Loving is the GP of the seller

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

(D) Enter Purchase Price: 56,000


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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

RH

Yes

No

No

No


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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


Org: John C. Loving

First Name: John Last Name: Loving Function: Principal

Address: 9205 Baileywick Road, Suite 201

City: Raleigh State: NC Zip: 27615

Phone: (919)844-1969 Fax: (919)844-1393



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The Median Income for Burke county is $51,500.

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 1 660 16 3 398 84 0 482

Gdn Apt 2 900 12 2 475 97 0 572

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....... 28 5 12068

Market Rate.......

Totals............... 28 5 12068

Proposed number of residential buildings: 1 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): 5,1445,144

Elevators -- Number of Elevators:Number of Elevators: 11

Gross Floor Square Footage: 33,324

Total Net Sq. Ft. (All Heated Areas): 32,266

** 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.


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




28


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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))

Loans with Variable AmortizationPlease fill in the annual debt service as applicable for the first 20 years of the project life.

Funding Sources

Source AmountNon-

Amortizing*Rate(%)

Term(Years)

Amort.Period(Years)

AnnualDebt

Service

Bank Loan 0

RPP Loan 473,622 2.00 20 20

Local Gov. Loan - Specify:0

RD 515 Loan 0

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) 531,078 0 30 30 0

State Tax Credit(Direct Refund) 0

Equity: Federal LIHTC 1,816,768

Non-Repayable Grant 0

Equity: Historic Tax Credits 0

Deferred Developer Fees 0

Owner Investment 100 Other - Specify:

0

Total Sources** 2,821,568

* "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 first mortgage is anticipated to be RPP funds from NCHFA. The syndicator has not beenselected at this time, however a letter is included. We have used the state underwritingamount in valuing the credits at this point as the market has been moving down and isexpected to continue for the near future. Other equity and deferred fee will come from thedeveloper. State tax credit loan from NCHFA.


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RPP Loan

Year:Amt:

1

18000

2

18000

3

18000

4

18000

5

18000

6

18000

7

18000

8

18000

9

18000

10

18000

Year:Amt:

11

18000

12

18000

13

18000

14

18000

15

18000

16

18000

17

18000

18

18000

19

18000

20

18000


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Development Costs

Item Cost Element TOTAL COSTEligible Basis

30% PV 70% PV

1 Purchase of Building(s) (Rehab / Adaptive Reuse only)

2 Demolition (Rehab / Adaptive Reuse only)

3 On-site Improvements 346,000 346,0004 Rehabilitation

5 Construction of New Building(s) 1,361,578 1,361,578

6 Accessory Building(s)

7 General Requirements 100,655 100,655

8 Contractor Overhead 28,645 28,645

9 Contractor Profit 114,579 114,579

10 Construction Contingency 58,544 58,544

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 48,160 48,160

12 Architect's Fee - Inspection 12,040 12,040

13 Engineering Costs 20,000 20,000

SUBTOTAL (lines 1 through 13) 2,090,201

14 Construction Insurance (prorate)15 Construction Loan Orig. Fee (prorate) 14,483 14,483

16 Construction Loan Interest (prorate) 122,305 122,305

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate) 1,200 1,200

19 Water, Sewer and Impact Fees 42,000 42,000

20 Survey 12,000 12,000

21 Property Appraisal 3,000 3,000

22 Environmental Report 3,000 3,000

23 Market Study 4,200 4,200

24 Bond Costs

25 Bond Issuance Costs

26 Placement Fee27 Permanent Loan Origination Fee

28 Permanent Loan Credit Enhancement

29 Title and Recording

SUBTOTAL (lines 14 through 29) 202,188

30 Real Estate Attorney 23,000 23,000

31 Other Attorney's Fees 7,000 7,000

32 Tax Credit Application Fees (Preliminary and Full) 2,200

33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 15,401

34 Cost Certification / Accounting Fees 4,000 4,000

35 Tax Opinion 2,000

36 Organizational (Partnership) 250

37 Tax Credit Monitoring Fee 18,200SUBTOTAL (lines 30 through 37) 72,051

38 Furnishings and Equipment 35,000 35,000

39 Relocation Expense

40 Developer's Fee 294,000 294,000

41 Other Basis Expense (specify)

42 Other Basis Expense (specify)

43 Rent-up Expense 5,600

44 Other Non-basis Expense (specify)

45 Other Non-basis Expense (specify)


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Comments:

SUBTOTAL (lines 38 through 45) 334,600

46 Rent up Reserve 8,400

47 Operating Reserve 58,128

48 Other Reserve (specify)

49 Other Reserve (specify)

50 DEVELOPMENT COST (lines 1-49) 2,765,568 0 2,655,389

51 Less Federal Financing52 Less Disproportionate Standard

53 Less Nonqualified Nonrecourse Financing

54 Less Historic Tax Credit (residential) 0

55 TOTAL ELIGIBLE BASIS 2,655,389 0 2,655,389

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

57 Basis Before Boost 2,655,389 0 2,655,389

58 Boost for QCT/DDA (if applicable, enter 130%) 100.00% 100.00%

59 TOTAL QUALIFIED BASIS 2,655,389 0 2,655,389

60 Tax Credit Rate 3.45 8.05

61 Federal Tax Credits at Estimated Rate 213,758 0 213,758

62 Federal Tax Credits at 8.5% or 3.75% 225,708 0 225,708

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) 224,000

64 Federal Tax Credits Requested 213,758 0 213,758

65 Land Cost 56,000

66 TOTAL REPLACEMENT COST 2,821,568

FEDERAL TAX CREDITS IF AWARDED 224,000

Total Replacement Cost per unit: 94,894

Federal Tax Credits (line 62) per unit: 8,061


16/26

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

This development will consist of 28 units of housing for the elderly in Morganton, NC, and isconsidered to be a second phase of the highly successful development located next door known asThe Willows. The site is located in a quiet residential neighborhood with shopping, medical andother services located a short distance from the property.

The building will feature a large community space/gathering room with large TV, library, computerroom, exercise room, entry canopy with seating, screened porch, terrace, furnished sitting area. Thesite is to be well landscaped with walking trails, garden plots, picnic area, gazebo and arbor.

Yes

Millside Manor, 101 Gillam St., Morganton, NC 28655Mountain View, 134 East Mountain St., Kerversville, NC 27284Huntington Manor, 1600 Tampa Dr., Goldsboro, NC

Community room, laundry room, screened porch, computer center, library, game room, excerciseroom, tv room, picnic area, onsite leasing office, onsite manager and maintenance, walking trails,garden plots.

Services will be arranged by management per the services plan. Other social activities will beplanned as the demand arises.

Landscaping will be heavy with an initial budget of $1,000 per unit.


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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.

range, hood, dishwasher, frost free refrigerator, storage, mini blinds, walk in closets, carptet, vinylfloor coverings elsewhere, heat pumps

Yes


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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.The neighborhood is stable with other properties being well maintained and very little concentrationof affordable housing accept for sister developments, The Willows and Willow Run, in the area.

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.Surrounding land uses are compatible, being residential, with no detrimental industrial or institutionaluses nearby.

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.Very little traffic occurs on the streets in the neighborhood, which are mainly residential in nature.However, easy access to main arteries going into downtown and to I40 are readily available.

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).No negative features or physical barriers.

Similarity of scale and aesthetics/architecture between project and surroundings.Proposed building will be similar in scale and architecture to other structures in the area andneighborhood.

Grocery Store1.4 Community/Senior Center.2

Mall/Strip Center1 Hospital1.4

Outdoor Athletic Fields Pharmacy1.3

Day Care/After School Basic Health Care1.5


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Other facilities or services:

Schools Medical Offices1.5

Public Transportation Stop Bank/Credit Union.5

Convenience Store.1 Restaurants.5

Basketball/Tennis Courts Professional Services

Public Parks Movie Theater

Gas Station.2 Video Rental

Library2 Public Safety (Fire/Police)1.8

Fitness/Nature Trails Post Office2

Public Swimming Pools

the site is readily accessible to local employers, health-care services , retail shopping, socialservices and recreational areas.


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Project Operations (Year One)

Projected Operating Costs

Administrative Expenses

Advertising 1,680

Office Salaries

Office Supplies 800

Office or Model Apartment Rent

Management Fee 11,760

Manager or Superintendent Salaries 8,162

Manager or Superintendent Rent Free Unit

Legal Expenses (Project) 118

Auditing Expenses (Project) 3,950

Bookkeeping Fees/Accounting Services

Telephone and Answering Service 1,200

Bad Debts

Other Administrative Expenses (specify):

SUBTOTAL 27,670

Utilities Expense

Fuel Oil

Electricity (Light and Misc. Power) 6,862

Water 1,600

Gas

Sewer 1,400

SUBTOTAL 9,862

Operating and Maintenance Expenses

Janitor and Cleaning Payroll

Janitor and Cleaning Supplies

Janitor and Cleaning Contract

Exterminating Payroll/Contract 700

Exterminating SuppliesGarbage and Trash Removal 1,680

Security Payroll/Contract

Grounds Payroll 7,060

Grounds Supplies

Grounds Contract 8,000

Repairs Payroll

Repairs Material 4,000

Repairs Contract

Elevator Maintenance/Contract 3,759

Heating/Cooling Repairs and Maintenance

Swimming Pool Maintenance/Contract

Snow RemovalDecorating Payroll/Contract

Decorating Supplies

Other (specify):

Miscellaneous Operating & Maintenance Expenses

SUBTOTAL 25,199

Taxes and Insurance

Real Estate Taxes 21,440

Payroll Taxes (FICA) 2,088


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Miscellaneous Taxes, Licenses and Permits 300

Property and Liability Insurance (Hazard) 7,392

Fidelity Bond Insurance 300

Workmen's Compensation

Health Insurance and Other Employee Benefits

Other Insurance:

SUBTOTAL 31,520Supportive Service Expenses

Service Coordinator

Service Supplies

Tenant Association Funds

Other Expenses (specify):

SUBTOTAL 0

Reserves

Replacement Reserves 7,006

SUBTOTAL 7,006

TOTAL OPERATING EXPENSES 101,257

ADJUSTED TOTAL OPERATING EXPENSES(Does not include taxes, reserves and resident support services) * 72,811

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

28

PER UNIT PER YEAR 2,600


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25/26

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:

Moderate Income County:

At least twenty-five percent (25%) of qualified units will be affordable to and occupied by households with incomes at or below fortypercent (40%) of county median income.

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

At least fifty percent (50%) 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 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.


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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)

Willow Ridge

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