Mayworth School Apartments

8/6/2019 Mayworth School Apartments

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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: Mayworth School Apartments

Address: 236 8th Avenue

City: Cramerton County: Gaston Zip: 28032

Census Tract: 0322.00 Block Group: 4

No

Political Jurisdiction: Town of Cramerton

Jurisdiction CEO Name: First: Last:Ronald Murphy Title: MayorJurisdiction Address: 155 N. Main Street

Jurisdiction City: Cramerton Zip: 28032

Jurisdiction Phone: (704)824-4337

Site Latitude: 35.2414

Site Longitude: -81.0782

Project Type: Adaptive Reuse

No

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

Yes

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: 4

Remarks: Project does not utilize federal project-based rental assistance.


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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: Landmark Asset Services, Inc.

Address: 406 East Fourth Street

City: State: NC Zip:Winston-Salem 27101

Contact: First: Last: Title:Bill Scantland VP & Managing Member

Telephone: (336)714-8920

Alt Phone: (336)722-9871

Fax: (336)722-3603

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

1.62 1.62

Yes

One dilapidated non-contributing (historical) storage shed at the rear of the former school will bedemolished. SHPO has been notified and has given us approval. One corrugated metal shed areaattached to the side of the building will also be removed.

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:

No

(c) Enter the current expiration date of the option/contract to purchase: 10/31/2007

(D) Enter Purchase Price: 475,000


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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

R-4 CUP-AR

Yes

No

Yes

The Mayworth School was individually listed on the national Register of Historic places on

September 16, 2002. Of the four buildings on that listing, this project involves only the mainclassroom building (contributing) and the rear outbuilding (non-contributing), the latter proposed fordemolition.

No


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Ownership Entity

Owner Name: Mayworth School Apartments, LLC


City: State: NC Zip:Winston-Salem 27101

Federal Tax ID Number of Ownership Entity: (If assigned)

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? No

Is the applicant requesting that the Agency treat the application as CHDO sponsored? No

List all general partners, members,and principals. Specify nonprofit corporate general partners ormembers. Click [Add] to add additional partners, members, and principals.

Org: Landmark Asset Services, Inc.

First Name: Bill Last Name: Scantland Function: Managing Member


City: Winston-Salem State: NC Zip: 27101

Phone: (336)714-8920 Fax: (336)722-3603

EMail: devadmin@landmarkdevelopmen Nonprofit: No

Org: Sari and Company

First Name: Jim Last Name: Sari Function: Member



Phone: (336)714-8911 Fax: (336)722-3603

EMail: [email protected] Nonprofit: No

Org: Fitch Development Group, Inc.

First Name: Hollis Last Name: Fitch Function: Member



Phone: (336)714-8929 Fax: (336)722-3603

EMail: [email protected] Nonprofit: No


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Notes

** 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 40 percent of median income affordable to/occupied by






40


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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))

Funding Sources

Source AmountNon-

Amortizing*Rate(%)

Term(Years)

Amort.Period(Years)

AnnualDebt

Service

Bank Loan

RPP Loan

Local Gov. Loan - Specify:

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:



Tax Exempt Bonds

State Tax Credit(Loan) 1,018,000 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 3,093,691

Non-Repayable Grant

Equity: Historic Tax Credits 1,351,824

Deferred Developer Fees

Owner Investment

Other - Specify:Town of Cramerton - 30 yr def.

400,000

Total Sources** 5,863,515

* "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.

91

Local government housing development funds - Town of Cramerton, $400,000 (40 units x$10,000/unit).


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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) 375,000 0

2 Demolition (Rehab / Adaptive Reuse only)

3 On-site Improvements 400,000 400,0004 Rehabilitation 2,900,000 2,900,000

5 Construction of New Building(s)

6 Accessory Building(s)

7 General Requirements 198,000 198,000

8 Contractor Overhead 69,900 69,900

9 Contractor Profit 209,800 209,800

10 Construction Contingency 226,600 226,600

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 100,000 100,000

12 Architect's Fee - Inspection 20,000 20,000

13 Engineering Costs 24,000 24,000

SUBTOTAL (lines 1 through 13) 4,523,300

14 Construction Insurance (prorate) 15,000 15,00015 Construction Loan Orig. Fee (prorate) 60,000 60,000

16 Construction Loan Interest (prorate) 225,000 175,000

17 Construction Loan Credit Enhancement (prorate) 30,000 30,000

18 Construction Period Taxes (prorate) 15,000 15,000

19 Water, Sewer and Impact Fees

20 Survey 8,000 8,000

21 Property Appraisal 8,000 8,000

22 Environmental Report 12,000 12,000

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 14,034

SUBTOTAL (lines 14 through 29) 391,234

30 Real Estate Attorney 25,000 25,000

31 Other Attorney's Fees 6,000 6,000

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

33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 29,522

34 Cost Certification / Accounting Fees 58,000 33,000

35 Tax Opinion 4,000

36 Organizational (Partnership) 4,000

37 Tax Credit Monitoring Fee 22,000SUBTOTAL (lines 30 through 37) 150,722

38 Furnishings and Equipment 60,000 60,000

39 Relocation Expense

40 Developer's Fee 420,000 420,000

41 Other Basis Expense (specify) Environmental Abatement 65,000 65,000

42 Other Basis Expense (specify) Historic Costs/Fees 11,000 5,500

43 Rent-up Expense 28,586

44 Other Non-basis Expense (specify)

45 Other Non-basis Expense (specify)


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Comments:

SUBTOTAL (lines 38 through 45) 584,586

46 Rent up Reserve 24,000

47 Operating Reserve 74,673

48 Other Reserve (specify)Acquisition Fee 15,000

49 Other Reserve (specify)

50 DEVELOPMENT COST (lines 1-49) 5,763,515 0 5,090,000

51 Less Federal Financing52 Less Disproportionate Standard

53 Less Nonqualified Nonrecourse Financing

54 Less Historic Tax Credit (residential) 0

55 TOTAL ELIGIBLE BASIS 5,090,000 0 5,090,000

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

57 Basis Before Boost 5,090,000 0 5,090,000

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

59 TOTAL QUALIFIED BASIS 5,090,000 0 5,090,000

60 Tax Credit Rate 3.45 8.05

61 Federal Tax Credits at Estimated Rate 409,745 0 409,745

62 Federal Tax Credits at 8.5% or 3.75% 432,650 0 432,650

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) 320,000

64 Federal Tax Credits Requested 340,000 0 340,000

65 Land Cost 100,000

66 TOTAL REPLACEMENT COST 5,863,515

FEDERAL TAX CREDITS IF AWARDED 320,000

Lines 63 and {67} are not taking into account $8,500/unit for adaptive reuse as described on page 5,Section E2 of the QAP.

Total Replacement Cost per unit: 141,246

Federal Tax Credits (line 62) per unit: 10,816


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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 project involves the adaptive reuse of the former Mayworth School located in the main district ofCramerton, into 40 one and two bedroom apartments for elderly tenants. The facility is very wellsituated within the town with respect to all necassary supportive features, including shoppping,recreation, safety and transportation. The school's auditorium will be renovated and available forcommunity use and as the new location of the Cramerton Senior Center.

The building will be renovated in accordance with the Secretary of Interior's standards, retainingmuch of it's historic character and fabric.

Yes

Landmark Asset Services, Inc. has sucessfully completed many similar facilities. Please refer to ourwebsite: www.landmarkdevelopment.biz

Gazebo, community room, resident computer center, laundry facilities, auditorium. Adjacent to apublic park, recreation complex, church and a senior center. The senior center will relocate into theauditorium.

Property is adjacent to a public park, recreation complex and senior center. Facility will include arestored auditorium/senior center.

Lanscaping will be in accordence with city standards as defined in the conditional use permit (CUP).The lawn and mature trees will remain on the southside of the building which is the main facade ofthe original building along 8th Avenue. New native landscaping will be added, as well as a newgazebo, walkways and planting beds.


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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.

Apartments will include stove with hood, dishwasher, refrigerator, microwave, miniblinds, and ceilingfans.High speed internet access will be available in each unit.

No


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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.As noted in the Town's Comprehensive Plan, the consistent pattern of growth in the Charlotte regionindicates likely continued strong growth in the Cramerton area for the foreseeable future, mainly inthe form of new residential subdivisions. Economic health is strong, reflective of population growth of25.5% over the last decade. Physical condition of building is fair. There is no concentration ofaffordable housing, with only one NCHFA funded development (Abingdon 2004) inside the primarymarket 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 use is highly suitable for the proposed adaptive reuse of the former schoolbuilding. The land use pattern is downtown residential, commercial and institutional, featuring thecity recreation facility within walking distance on the former school property and the Baptist Churchnext door. Therre are no industrial, large-scale or other incompatible uses near the MayworthSchool. There is virtually no vacant land in the 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 ofproject sign(s) in relation to traffic corridors.Clearly in downtown Cramerton, traffic controls are adequate. Conversion of the school toapartments will not burden public facilities significally, particularly roads. Access to mass transit isprovided through Charlotte Area Transit. Visibility of the former school and location of the projectsign is good because of its frontage on 8th Avenue which is a well traveld street in Cramerton.

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), suchas limited parking, environmental problems or the need for excessive demolition).There are no negative features or physical barriers on the former school site that will impede projectconstruction or adversely affect future tenants. For this adpative reuse project, the building issuitable and no difficulties are presented by the buildings. Parking is adequate; there are noenvironmental problems, demolition involves two small non-contributing buildings.

Similarity of scale and aesthetics/architecture between project and surroundings.The scale and aesthetics/architecture of the project and it's surroundings will be the same as it was

when the school served the community educationally. The building will be rehabilited according tothe Secretary of the Interior's Standards. Two small dilapidated non-contributing buildings will bedemolished enhancing aesthestics with surrounding properties.

Grocery Store0.5 Community/Senior Center0.1

Mall/Strip Center0.5 Hospital5.0


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Other facilities or services:

Outdoor Athletic Fields0.1 Pharmacy1.0

Day Care/After School1. Basic Health Care1.0

Schools2.0 Medical Offices1.0

Public Transportation Stop1.5 Bank/Credit Union0.5

Convenience Store1.0 Restaurants0.5

Basketball/Tennis Courts0.1 Professional Services3.0

Public Parks0.1 Movie Theater3.0

Gas Station0.5 Video Rental0.5

Library3.0 Public Safety (Fire/Police)0.5

Fitness/Nature Trails0.1 Post Office0.5

Public Swimming Pools0.1

Church - adjacent property.


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Project Operations (Year One)

Projected Operating Costs

Administrative Expenses

Advertising 600

Office Salaries

Office Supplies 2,400

Office or Model Apartment Rent

Management Fee 19,200

Manager or Superintendent Salaries 16,380

Manager or Superintendent Rent Free Unit

Legal Expenses (Project) 200

Auditing Expenses (Project) 3,600

Bookkeeping Fees/Accounting Services 3,300

Telephone and Answering Service 3,600

Bad Debts 1,005

Other Administrative Expenses (specify):

SUBTOTAL 50,285

Utilities Expense

Fuel Oil

Electricity (Light and Misc. Power) 10,200

Water 5,328

Gas 9,072

Sewer

SUBTOTAL 24,600

Operating and Maintenance Expenses

Janitor and Cleaning Payroll 5,824

Janitor and Cleaning Supplies 650

Janitor and Cleaning Contract

Exterminating Payroll/Contract 960

Exterminating SuppliesGarbage and Trash Removal 4,800

Security Payroll/Contract

Grounds Payroll

Grounds Supplies 1,000

Grounds Contract 3,900

Repairs Payroll 14,820

Repairs Material 2,800

Repairs Contract 4,000

Elevator Maintenance/Contract 2,396

Heating/Cooling Repairs and Maintenance 900

Swimming Pool Maintenance/Contract

Snow Removal 100Decorating Payroll/Contract 3,200

Decorating Supplies 840

Other (specify):

Fire Alarm/Sprinkler Maintenance1,000

Miscellaneous Operating & Maintenance Expenses

SUBTOTAL 47,190

Taxes and Insurance

Real Estate Taxes 12,000

Payroll Taxes (FICA) 4,239


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Miscellaneous Taxes, Licenses and Permits

Property and Liability Insurance (Hazard) 9,846

Fidelity Bond Insurance 50

Workmen's Compensation 1,136

Health Insurance and Other Employee Benefits

Other Insurance:

SUBTOTAL 27,271Supportive Service Expenses

Service Coordinator

Service Supplies

Tenant Association Funds

Other Expenses (specify):

SUBTOTAL 0

Reserves

Replacement Reserves 14,000

SUBTOTAL 14,000

TOTAL OPERATING EXPENSES 163,346

ADJUSTED TOTAL OPERATING EXPENSES(Does not include taxes, reserves and resident support services) * 137,346

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

40

PER UNIT PER YEAR 3,433


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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)

Documents

Mayworth School Apartments