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

Project Description
Project Name: Southview Villas Address: City: Dunrobin Drive Hope Mills County: Cumberland Zip: 28348 Block Group: 4

Census Tract: 16.01

Is project in Qualified Census Tract or Difficult to Develop Area? No Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: Cumberland County Last: Martin Title: County Manager P.O. Box 1829 Fayetteville (910)678-7723 Zip: 28302

Jurisdiction CEO Name: First: James

Site Latitude: Site Longitude:

34.9528 -78.9304

Project Type: New Construction New Construction/Adaptive Reuse: Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project? No If yes, list names of previous phase(s): Rehab: Is this project a previously awarded tax credit development? If yes, what year were credits awarded?: Number of residents holding Section 8 vouchers: 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? No If yes, provide the subsidy source: and number of units:

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: 7 Remarks:

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: United Developers, Inc. P. O. Drawer 42208 Fayetteville First: Murray (910)485-6600 (910)485-6600 (910)483-4274 sbutler@dugginssmith.com State: NC Zip: 28309 Last: Duggins Title:

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

Site Description
Total Site Acreage: 5.25 Total Buildable Acreage: 5.25 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? No 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? 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? Yes If yes, specify the relationship: Buyer and Seller share common stockholders

Purchase Price:

(c) Enter the current expiration date of the option/contract to purchase: 11/15/2007 (D) Enter Purchase Price: 352,000

Zoning
Present zoning classification of the site: R5A 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? Yes If yes, have the hearings been completed and permits been obtained? No If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for obtaining them: The site consist of 5.25 acres. 3.11 acres are located in the Town of Hope Mills and are zoned R5A. The remaining 2.14 acres was annexed into Hope Mills on April 16, 2007. As a formality, a public hearing will be held on May 14 to complete the R5A zoning on the 2.14 acres. Final Commissioner approval is scheduled for May 21, 2007.

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: Southview Villas Associates Limited Partnership Address: City: P.O. Drawer 42208 Fayetteville State: NC Zip: 28309 (If assigned)

Federal Tax ID Number of Ownership Entity:

Note: Do not submit social security numbers for individuals. Entity Type: Limited Partnership 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:

Southview Villas/Duggins LLC Last Name: Duggins Function: Principal

First Name: Murray Address: City: Phone: EMail: P.O. Drawer 42208 Fayetteville (910)485-6600 kelly@dugginssmith.com

State: NC Fax: (910)483-4274 Nonprofit: No

Zip: 28309

Org:

Southview Villas/Duggins LLC Last Name: Smith Function: Principal

First Name: James Address: City: Phone: EMail: P.O. Drawer 42208 Fayetteville (910)485-6600 kelly@dugginssmith.com

State: NC Fax: (910)483-4274 Nonprofit: No

Zip: 28309

Org:

Southview Villas/Duggins LLC Last Name: Duggins Function: Principal

First Name: Wade Address: City: Phone: EMail: P.O. Drawer 42208 Fayetteville (910)485-6600 Kelly@dugginssmith.com

State: NC Fax: (910)483-4274 Nonprofit: No

Zip: 28309

Org:

Duggins Family Limited Partnership Last Name: Duggins Function: General Partner

First Name: Murray Address: City: Phone: P.O. Drawer 42208 Fayetteville (910)485-6600

State: NC Fax: (910)483-4274

Zip: 28309

EMail:

Kelly@Dugginssmith.com

Nonprofit: No

Unit Mix
The Median Income for Cumberland county is $47,600. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt # BRs Net Sq.Ft. 2 2 2 3 3 3 985 985 985 1249 1249 1249 Total # Units 12 18 18 4 6 6 # Units 0 0 6 0 0 2 Monthly Rent 330 420 440 380 475 495 Electric Utility Allowance 95 95 95 111 111 111 Gas Mandatory Serv. Fees 0 0 0 0 0 0 Other Trash **Total Housing Exp. 425 515 535 491 586 606

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............... 64 8 26780 64 Gross Monthly Rental Income 26780

Units 8

Proposed number of residential buildings: 8 Project Includes:

Maximum number of stories in buildings: 2

Separate community building - Sq. Ft. (Floor Area): 1,246 Community space within residential bulding(s) - Sq. Ft. (Floor Area): Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 72,048

Total Net Sq. Ft. (All Heated Areas): 67,264

Notes ** Please refer to the Income Limits and Maximum Housing Expense Table to ensure that Total Monthly Tenant Expenses for low income units are within established thresholds.

Targeting
Specify Low Income Unit Targeting in table below. List each applicable targeting combination in a separate row below. Click [Add] to create another row. Click "X" (at the left of each row) to delete a row. Add as many rows as needed.

# BRs 2 2 2 3 3 3 12 18 18 4 6 6

Units targeted at 40 targeted at 50 targeted at 60 targeted at 40 targeted at 50 targeted at 60

% percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by

Total Low Income Units:

64

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

Funding Sources
NonAmortizing* Rate (%) 7.25 Term (Years) 20 Amort. Period (Years) 30 Annual Debt Service 40,030

Source Bank Loan RPP Loan Local Gov. Loan - Specify: Cumberland County 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 489,000

400,000

2.00

20

30

17,741

1,071,000

30

30

3,896,000

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 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. 93 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s))

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) Other Non-basis Expense (specify) Other Non-basis Expense (specify) 670,000 670,000 31,200 117,680 7,000 7,000 2,200 30,580 8,700 8,700 600 69,900 45,000 45,000 4,900 4,500 2,500 4,200 4,500 2,500 4,200 700 2,500 700 2,500 50,000 50,000 4,472,000 222,000 74,000 225,000 120,000 80,000 222,000 74,000 225,000 120,000 80,000 3,326,000 3,326,000 425,000 425,000 TOTAL COST Eligible Basis 30% PV 70% PV

43 Rent-up Expense

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

677,000 29,200 138,220

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 Comments:

5,504,000

5,267,100

0 5,267,100 100.00% 5,267,100 5,267,100 424,001 447,703 544,000 0 352,000 5,856,000 447,703 0 100% 0 100.00% 0 3.45 0 0 5,267,100 100% 5,267,100 100.00% 5,267,100 8.05 424,001 447,703

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

83,345 6,995

Market Study Information

Please provide a detailed description of the proposed project: 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 seperate office/community building. The rent structure has been made very affordable. Sixteen of the units will target those at 40% of the median income. The remain units will be targeted those at both 50% and 60% of the median income. 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 mile from 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 short driving distance from the site. 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? Yes If yes, please provide name and address: Golfview Apartments 4131 Fescue Court Hope Mills, NC Crosswinds Green I & II 3415 Town Street Hope Mills, NC Longview Apartments 117 Longview Drive Fayetteville, NC Blanton Green I & II 1024 Lauren McNeill Loop Fayetteville, NC Rosehill West Apartments 1945 James Hamner Way Fayetteville, NC Raeford Green Apartments 300 Southern Avenue Raeford, NC Woodgreen I & II Apartments 200 Bradford Drive Aberdeen, NC Southview Green Apartments 3143 Round Grove Place Hope Mills, NC Palmer Green Apartments I 380 West Palmer Avenue Raeford, NC

Bunce Green Apartments Distinct Circle Fayetteville, NC Riverview Green Apartments Riverview Court Roanoke Rapids, NC Eastside Green Apartments 715 Duggins Way Fayetteville, NC Legion Crossing Apartments Ireland Drive Hope Mills, NC Tokay Green Apartments United Drive Fayetteville, NC Palmer Green II Apartments West Palmer Avenue Raeford, NC Blanton Green III Apartments 1024 Lauren McNeill Loop Fayetteville, NC(under construction) Site Amenities: The site will include a resident computer center, playground area, covered picnic area, sitting areas, tot lot, gazebo and covered patio with seating.

Onsite Activities: Support Services Coordinator on site.

Landscaping Plans: Above average landscaping with irrigation system.

Interior Apartment Amenities: 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 and air.The living rooms will be equipped with data connection ports.

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 neighborhood is well maintained with a mix of residential, schools and churches. The area is growing 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 and multifamily housing) with a balance of other uses (particularly retail and amenities). Effect of industrial, large-scale institutional or other incompatible uses, including but not limited to: wastewater treatment facilities, high traffic corridors, junkyards, prisons, landfills, large swamps, distribution facilities, frequently used railroad tracks, power transmission lines and towers, factories or similar operations, sources of excessive noise, and sites with environmental concerns (such as odors or pollution). Amount and character of vacant, undeveloped land. The area surrounding the site is a mix of single family homes, market rate apartments and townhomes. A high school and middle school are located beside the site and retirement facility is located 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 of project 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 road has been widened to accomodate turn lanes. Access to I95 is located approximately two miles from the site. 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 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 architecture in the neighborhood and will be complimentary to the other structures. The site layout will promote a slow and controlled traffic flow.

For each applicable neighborhood feature, enter distance from project in miles. 2 2 .3 Grocery Store Mall/Strip Center Outdoor Athletic Fields 1.5 4 1.5 Community/Senior Center Hospital Pharmacy

.50 .3 1.5 1 .3 1.5 1 2 .3

Day Care/After School Schools

1.5 1.5

Basic Health Care Medical Offices Bank/Credit Union Restaurants Professional Services Movie Theater Video Rental Public Safety (Fire/Police) Post Office

Public Transportation Stop 1.5 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools 1.5 1.5 3.5 2 2 1.25

Other facilities or services:

Development Team
Provide contact information for development team members below: Management Agent Company: United Management II Address: City: Phone P.O. Box 42208 Fayetteville (910)221-6600 State: NC Zip: 28309 Email: tamibelanger@unitedmgtii.com Last: Belanger

Contact Name: First: Tami

Architect Company: Address: City: Phone

Moore Riley Architects, P.A. P.O. Box 17652 Raleigh (919)782-6472 State: NC Zip: 27619 Email: mrarch@intrex.net Last: Riley

Contact Name: First: Matt

Attorney Company: Address: City: Phone

Tuggle, Duggins, and Meschan, P.A. P.O. Box 2888 Greensboro (336)271-5216 State: NC Zip: 27402 Email: bburgin@tuggleduggins.com Last: Burgin

Contact Name: First: Bill

Investor Company: Address: City: Phone

Raymond James Tax Credit Funds, Inc. 880 Carillon Parkway St. Petersburg (800)438-8088 State: FL Zip: 33716 Email: Craig.Descalzi@raymondjames Last: Descalzi

Contact Name: First: Craig

Consultant/Application Preparer (if different from developer) Company: N/A Address: City: Phone Contact Name: First: State: Email: Last: Zip:

Identity of Interest? General Contractor Company: United Developers Address: City: Phone P.O. Drawer 42208 Fayetteville (910)485-6600 State: NC Zip: 28309 Email: dlljd@aol.com Last: Smith

Contact Name: First: Jim

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): Vehicle expense and mileage 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): Miscellaneous Operating & Maintenance Expenses SUBTOTAL Taxes and Insurance Real Estate Taxes Payroll Taxes (FICA) 53,400 32,500 5,000 1,200 5,000 6,000 5,000 8,000 2,500 12,000 3,000 4,000 3,000 13,500 3,700 3,000 3,000 2,500 4,000 32,000 12,000

2,000 7,500 2,000

1,000 66,000

7,500 3,000

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

200 25,000 1,500 1,800

66,000 4,000

4,000 16,000 16,000 218,900 166,400 64 2,600

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, Credit Checks 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) 3,000 324,360 22,705 301,655 321,360

218,900 82,755

57,771

24,984 1.432

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 1 301,655 218,900 57,771 24,984 1.432 11 405,400 324,023 57,771 23,606 1.409 2 310,705 227,656 57,771 25,278 1.438 12 417,562 336,984 57,771 22,807 1.395 3 320,026 236,762 57,771 25,493 1.441 13 430,089 350,463 57,771 21,855 1.378 4 329,627 246,232 57,771 25,624 1.444 14 442,992 364,482 57,771 20,739 1.359 5 339,516 256,081 57,771 25,664 1.444 15 456,282 379,061 57,771 19,450 1.337 6 349,701 266,324 57,771 25,606 1.443 16 469,970 394,223 57,771 17,976 1.311 7 360,192 276,977 57,771 25,444 1.44 17 484,069 409,992 57,771 16,306 1.282 8 370,998 288,056 57,771 25,171 1.436 18 498,591 426,392 57,771 14,428 1.25 9 382,128 299,578 57,771 24,779 1.429 19 513,549 443,448 57,771 12,330 1.213 10 393,592 311,561 57,771 24,260 1.42 20 528,955 461,186 57,771 9,998 1.173

* 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: 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 forty percent (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 county median 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 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)