Southview Villas

8/6/2019 Southview Villas

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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: Family

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: Southview Villas

Address: Dunrobin Drive

City: Hope Mills County: Cumberland Zip: 28348

Census Tract: 16.01 Block Group: 4

No

Political Jurisdiction: Cumberland County

Jurisdiction CEO Name: First: Last:James Martin Title: County ManagerJurisdiction Address: P.O. Box 1829

Jurisdiction City: Fayetteville Zip: 28302

Jurisdiction Phone: (910)678-7723

Site Latitude: 34.9528

Site Longitude: -78.9304

Project Type: New Construction

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:

Yes

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.)



Number of Units: 4

Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units.

Number of Units: 7

Remarks:



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: United Developers, Inc.

Address: P. O. Drawer 42208

City: State: NC Zip:Fayetteville 28309

Contact: First: Last: Title:Murray Duggins

Telephone: (910)485-6600

Alt Phone: (910)485-6600

Fax: (910)483-4274

Email Address: [email protected]

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



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

5.25 5.25

No

No

Yes

No





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

Buyer and Seller share common stockholders

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

(D) Enter Purchase Price: 352,000







EMail: [email protected] Nonprofit: No





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.



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 %

2 12 targeted at 40 percent of median income affordable to/occupied by






64



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 489,000 7.25 20 30 40,030

RPP Loan

Local Gov. Loan - Specify:Cumberland County

400,000 2.00 20 30 17,741

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:



Tax Exempt Bonds

State Tax Credit(Loan) 1,071,000 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 3,896,000

Non-Repayable Grant

Equity: Historic Tax Credits

Deferred Developer Fees

Owner Investment

Other - Specify:

Total Sources** 5,856,000

* "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.

93



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 425,000 425,0004 Rehabilitation

5 Construction of New Building(s) 3,326,000 3,326,000

6 Accessory Building(s)

7 General Requirements 222,000 222,000

8 Contractor Overhead 74,000 74,000

9 Contractor Profit 225,000 225,000

10 Construction Contingency 120,000 120,000

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 80,000 80,000

12 Architect's Fee - Inspection

13 Engineering Costs

SUBTOTAL (lines 1 through 13) 4,472,000

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

16 Construction Loan Interest (prorate) 50,000 50,000

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate) 700 700

19 Water, Sewer and Impact Fees 2,500 2,500

20 Survey

21 Property Appraisal 4,500 4,500

22 Environmental Report 2,500 2,500

23 Market Study 4,200 4,200

24 Bond Costs

25 Bond Issuance Costs

26 Placement Fee27 Permanent Loan Origination Fee 4,900

28 Permanent Loan Credit Enhancement

29 Title and Recording 600

SUBTOTAL (lines 14 through 29) 69,900

30 Real Estate Attorney 45,000 45,000

31 Other Attorney's Fees

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

33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 30,580

34 Cost Certification / Accounting Fees 8,700 8,700

35 Tax Opinion

36 Organizational (Partnership)

37 Tax Credit Monitoring Fee 31,200SUBTOTAL (lines 30 through 37) 117,680

38 Furnishings and Equipment 7,000 7,000

39 Relocation Expense

40 Developer's Fee 670,000 670,000

41 Other Basis Expense (specify)

42 Other Basis Expense (specify)

43 Rent-up Expense

44 Other Non-basis Expense (specify)

45 Other Non-basis Expense (specify)



Comments:

SUBTOTAL (lines 38 through 45) 677,000

46 Rent up Reserve 29,200

47 Operating Reserve 138,220

48 Other Reserve (specify)

49 Other Reserve (specify)

50 DEVELOPMENT COST (lines 1-49) 5,504,000 0 5,267,100

51 Less Federal Financing52 Less Disproportionate Standard

53 Less Nonqualified Nonrecourse Financing

54 Less Historic Tax Credit (residential) 0

55 TOTAL ELIGIBLE BASIS 5,267,100 0 5,267,100

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

57 Basis Before Boost 5,267,100 0 5,267,100

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

59 TOTAL QUALIFIED BASIS 5,267,100 0 5,267,100

60 Tax Credit Rate 3.45 8.05

61 Federal Tax Credits at Estimated Rate 424,001 0 424,001

62 Federal Tax Credits at 8.5% or 3.75% 447,703 0 447,703

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) 544,000

64 Federal Tax Credits Requested 0

65 Land Cost 352,000

66 TOTAL REPLACEMENT COST 5,856,000

FEDERAL TAX CREDITS IF AWARDED 447,703

Total Replacement Cost per unit: 83,345

Federal Tax Credits (line 62) per unit: 6,995



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:

Market Study Information

Southview Villas will be located on 5.25 acres in Hope Mills in southern Cumberland County.Southview Villas will be a family project located in 8 two story buildings with a seperateoffice/community building.

The rent structure has been made very affordable. Sixteen of the units will target those at 40% of themedian income. The remain units will be targeted those at both 50% and 60% of the medianincome. However, all of the rents are affordable to those at 50% of the median income.

Southview Green Apartments, another tax credit complex, is located less than a quarter of a milefrom the Southview Villas site.

The surrounding neighborhood is a mix of well maintained homes, townhomes, apartments, schools,a church and a retirement facility. Shopping, recreational facilities and medical offices are a shortdriving distance from the site.

Yes

Golfview Apartments4131 Fescue CourtHope Mills, NC

Crosswinds Green I & II3415 Town StreetHope Mills, NC

Longview Apartments117 Longview DriveFayetteville, NC

Blanton Green I & II1024 Lauren McNeill LoopFayetteville, NC

Rosehill West Apartments1945 James Hamner WayFayetteville, NC

Raeford Green Apartments

300 Southern AvenueRaeford, NC

Woodgreen I & II Apartments200 Bradford DriveAberdeen, NC

Southview Green Apartments3143 Round Grove PlaceHope Mills, NC

Palmer Green Apartments I380 West Palmer AvenueRaeford, NC



Site Amenities:

Onsite Activities:

Landscaping Plans:

Interior Apartment Amenities:

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.

Bunce Green ApartmentsDistinct CircleFayetteville, NC

Riverview Green ApartmentsRiverview CourtRoanoke Rapids, NC

Eastside Green Apartments

715 Duggins WayFayetteville, NC

Legion Crossing ApartmentsIreland DriveHope Mills, NC

Tokay Green ApartmentsUnited DriveFayetteville, NC

Palmer Green II ApartmentsWest Palmer AvenueRaeford, NC

Blanton Green III Apartments1024 Lauren McNeill Loop

Fayetteville, NC(under construction)

The site will include a resident computer center, playground area, covered picnic area, sitting areas,tot lot, gazebo and covered patio with seating.

Support Services Coordinator on site.

Above average landscaping with irrigation system.

Apartments will be furnished with a range with hood, disposal, refrigerator (frost free), dishwasher,storage, W/D hookups, miniblinds, pantry, ceiling fans, carpet, vinyl, VCT, and central heat andair.The living rooms will be equipped with data connection ports.

No



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 well maintained with a mix of residential, schools and churches. The area isgrowing as effidenced by new single family homes and townhomes under construction.

Southview Green (LIHTC) is located approximately a quarter of a mile from the site.

SURROUNDING LAND USES AND AMENITIES

Suitability of surrounding development. Land use pattern is residential in character (single andmultifamily housing) with a balance of other uses (particularly retail and amenities). Effect ofindustrial, large-scale institutional or other incompatible uses, including but not limited to: wastewatertreatment facilities, high traffic corridors, junkyards, prisons, landfills, large swamps, distributionfacilities, frequently used railroad tracks, power transmission lines and towers, factories or similar

operations, sources of excessive noise, and sites with environmental concerns (such as odors orpollution). Amount and character of vacant, undeveloped land.The area surrounding the site is a mix of single family homes, market rate apartments andtownhomes. A high school and middle school are located beside the site and retirement facility islocated across the street.

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.Elk Road (the main road serving Dunrobin Drive) is adequate to serve the site. A portion of the roadhas been widened to accomodate turn lanes. Access to I95 is located approximately two miles fromthe site.

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 environmental issues or negative features.

Similarity of scale and aesthetics/architecture between project and surroundings.The two story buildings will have brick and vinyl. The design will be consistent with other architecturein the neighborhood and will be complimentary to the other structures. The site layout will promote aslow and controlled traffic flow.

Grocery Store2 Community/Senior Center1.5

Mall/Strip Center2 Hospital4

Outdoor Athletic Fields.3 Pharmacy1.5



Other facilities or services:

Day Care/After School.50 Basic Health Care1.5

Schools.3 Medical Offices1.5

Public Transportation Stop1.5 Bank/Credit Union1.5

Convenience Store1 Restaurants1.5

Basketball/Tennis Courts.3 Professional Services1.5

Public Parks1.5 Movie Theater3.5

Gas Station1 Video Rental2

Library2 Public Safety (Fire/Police)2

Fitness/Nature Trails.3 Post Office1.25

Public Swimming Pools







Project Operations (Year One)

Projected Operating Costs

Administrative Expenses

Advertising 2,000

Office Salaries 7,500

Office Supplies 2,000

Office or Model Apartment Rent

Management Fee 32,000

Manager or Superintendent Salaries 12,000

Manager or Superintendent Rent Free Unit

Legal Expenses (Project) 2,500

Auditing Expenses (Project) 4,000

Bookkeeping Fees/Accounting Services

Telephone and Answering Service 3,000

Bad Debts

Other Administrative Expenses (specify):

Vehicle expense and mileage1,000

SUBTOTAL 66,000

Utilities Expense

Fuel Oil

Electricity (Light and Misc. Power) 7,500

Water 3,000

Gas

Sewer 3,000

SUBTOTAL 13,500

Operating and Maintenance Expenses

Janitor and Cleaning Payroll 3,700

Janitor and Cleaning Supplies 3,000

Janitor and Cleaning Contract

Exterminating Payroll/Contract 4,000

Exterminating SuppliesGarbage and Trash Removal 8,000

Security Payroll/Contract 2,500

Grounds Payroll 12,000

Grounds Supplies 3,000

Grounds Contract

Repairs Payroll 6,000

Repairs Material 5,000

Repairs Contract

Elevator Maintenance/Contract

Heating/Cooling Repairs and Maintenance 5,000

Swimming Pool Maintenance/Contract

Snow RemovalDecorating Payroll/Contract

Decorating Supplies 1,200

Other (specify):

Miscellaneous Operating & Maintenance Expenses

SUBTOTAL 53,400

Taxes and Insurance

Real Estate Taxes 32,500

Payroll Taxes (FICA) 5,000



Miscellaneous Taxes, Licenses and Permits 200

Property and Liability Insurance (Hazard) 25,000

Fidelity Bond Insurance

Workmen's Compensation 1,500

Health Insurance and Other Employee Benefits 1,800

Other Insurance:

SUBTOTAL 66,000Supportive Service Expenses

Service Coordinator 4,000

Service Supplies

Tenant Association Funds

Other Expenses (specify):

SUBTOTAL 4,000

Reserves

Replacement Reserves 16,000

SUBTOTAL 16,000

TOTAL OPERATING EXPENSES 218,900

ADJUSTED TOTAL OPERATING EXPENSES (Does not include taxes, reserves and resident support services) * 166,400

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

64

PER UNIT PER YEAR 2,600





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.



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

Southview Villas