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

Project Name and Location

Project Name: The Crossings at Seigle Point Address: City: 10th Street and Seigle Avenue Charlotte County: Mecklenburg Zip: 28204 Block Group:

Census Tract: 8

Is project in Qualified Census Tract or Difficult to Develop area? Yes Does a community revitalization plan exist? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: The City of Charlotte Last: McCrory Title: Mayor Charlotte - Mecklenburg Government Center Charlotte (704)336-2241 Zip: 28202-2839

Jurisdiction CEO Name: First: Pat

Site Latitude: Site Longitude:

35.2242 -80.8268

Project Description
Project Type:* New Construction Rehab 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): Will the project be receiving project based federal rental assistance? Yes If yes, provide the subsidy source: HUD and number of units: 154

Target Population: Family 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: 11 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 22 Remarks:

Will the project use steel and concrete construction and have at least 4 stories? No Will the project include a Community Service Facility under Section 42(d)(4)(c)(iii) of the code? No If yes, please describe: [ProjSteelRemarks]

Applicant Information
Applicant Name: Address: City: Contact: Telephone: Alt Phone: Fax: Email Address: Seigle Point Development, LLC 8484 Georgia Avenue, Suite 620 Silver Spring First: Peter (301)563-5560 (301)563-5577 (301)563-6160 atkinson@tcgdevelopment.com State: MD Zip: 20910 Last: Behringer Title: Executive VP

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

Site Description
Total Site Acreage: 13.55 Total Buildable Acreage: 11.08 If buildable acreage is less than total acreage, please explain: Total site acreage includes greenspaces throughout the site, right of ways, and a small portion of land included in the floodplain. This land currently in the floodplain is developable. It will be raised out of the floodplain to comply with floodplain elevation standards during grading of the site. Total buildable acreage includes the portion of land where rental buildings and parking lots will be developed.

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? Yes If yes, please describe: Planning for the abatement and demolition of all 242 existing residential buildings including nonresidential structures has been completed for the Seigle Point site. Sediment and erosion control implementation is currently underway. Demolition of thirty-one (31) multi-family buildings and 3 nonresidential structures is underway. Site grading will occur concurrently with demolition in 2006 as its own phase. The demolition phase is anticipated to take 10 months with completion in November 2006.

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? Yes If yes: (a) Describe placement of project buildings in relation to this area: The 12 unit apartment building in the northwest corner of the site currently touches the 100 year floodplain and the majority of the area where the community building will be placed is also within the 100 year floodplain. However, all buildings included in this project will be have finished floor elevations that are outside of the 100 year floodplain. Initial site grading will occur during the demolition phase of the project.

(b) Describe flood mitigation if the project will have improvements within the 100 year floodplain:

No additional flood mitigation will be necessary to develop the subject project other than the above stated plan.

Site Control
Does the owner have fee simple ownership of the property (site/buildings)? Yes If yes provide: Purchase Date: 06/09/1939 If no: (a) Does the owner/principal or ownership entity have valid option/contract to purchase the property? (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:

Purchase Price: 1,200

(c) Enter the current expiration date of the option/contract to purchase: (D) Enter Purchase Price:

Zoning
Present zoning classification of the site: UR-2 Is mutifamily 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: As part of the City Locational Policy, the City of Charlotte reviews all affordable housing proposals with a public hearing and City Council approval. The City's approval is expected at about the time the full Full Tax Credit Application deadline in early May 2006. In is anticipated that the project will have the City's full support as the City has already committed over $40 million to the Piedmont Courts HOPE VI re-development. The City of Charlotte has confirmed that the current zoning for the property is suitable for its intended use.

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: Seigle Point, LLC Address: City: 8484 Georgia Avenue, Suite 620 Silver Spring State: MD Zip: 20910 20-4021340 (If assigned)

Federal Tax ID Number of Ownership Entity:

Entity Type: Limited Liability Company Entity Status: Already 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?

Yes No

Yes Is the applicant requesting that the Agency treat the application as a Hope VI project? Does the ownership entity include a public housing authority (PHA) or a related entity of the Yes PHA as a partner, member, or principal? List all general partners, members,and principals. Specify nonprofit corporate general partners or members. Click [Add] to add additional partners, members, and principals.

Org:

Charlotte Revitalization One, LLC, - Managing Member of Seigle Point LLC Last Name: Behringer Function: Managing Member

First Name: Peter Address: City: Phone: EMail:

8484 Georgia Avenue, Suite 620 Silver Spring (301)563-5560 behringer@tcgdevelopment.com State: MD Fax: (301)563-6160 Nonprofit: No Zip: 20910

Org:

The Housing Authority of the City of Charlotte, Member of Seigle Point LLC, Service Support Provider, HOPE VI Lender Last Name: Woodyard Function: Member

First Name: Charles Address: City: Phone: EMail: 1301 South Boulevard Charlotte (704)336-8349 cwoodyard@cha-nc.org

State: NC Fax: (704)353-1232 Nonprofit: Yes

Zip: 28203

Org:

GP Community Housing LLC, Co-Manager Last Name: Grubb Function: Member

First Name: Clay Address: City: Phone: EMail:

1523 Elizabeth Avenue, Suite 220 Charlotte (704)405-5146 cgrubb@grubbproperties.com State: NC Fax: (704)372-9882 Nonprofit: No Zip: 28204

Unit Mix
The Median Income for Mecklenburg county is $64,400. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt # BRs Net Sq.Ft. 1 1 1 1 2 2 3 3 3 3 3 3 3 3 3 3 754 754 722 722 968 968 1208 1208 1224 1224 1227 1227 1262 1262 1244 1244 Total # Units 4 4 2 2 42 42 16 16 26 26 2 2 4 4 6 6 # Units 1 1 0 0 4 4 0 0 6 6 0 0 0 0 0 0 Monthly Rent 285 492 285 492 285 593 285 681 285 681 285 681 285 681 285 681 Electric Utility Allowance 69 69 69 69 128 128 152 152 152 152 152 152 152 152 152 152 Gas Other Mandatory Serv. Fees 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 **Total Housing Exp. 354 561 354 561 413 721 437 833 437 833 437 833 437 833 437 833

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............... 204 22 93702 204 Gross Monthly Rental Income 93702

Units 22

Proposed number of residential buildings: 10 Project Includes:

Maximum number of stories in buildings: 3

Separate community building - Sq. Ft. (Floor Area): 3,184 Community space within residential bulding(s) - Sq. Ft. (Floor Area): Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 280,690

Total Net Sq. Ft. (All Heated Areas): 227,978

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

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

# BRs 1 2 3 1 2 3 6 42 54 6 42 54

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

% percent of median income affordable to/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:

204

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

Funding Sources
NonAmortizing* Rate (%) Term (Years) Amort. Period (Years) Annual Debt Service

Source Bank Loan RPP Loan Local Gov. Loan - Specify: RD 515 Loan RD 538 Loan - Specify: AHP Loan Other Loan 1 - Specify: HUD HOPE VI Other Loan 2 - Specify: Charlotte Housing Trust Funds Other Loan 3 - Specify: Replacement Housing Factor Funds 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

6,820,471 1,819,579

2.80 0.00

40 30

40 30

843,000

2.80

40

40

2,529,431

30

30

9,350,000

21,362,481

* "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. 85 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) HUD HOPE VI funding is part of a $20 million grant awarded to the Housing Authority of the City of Charlotte by the Department of Housing and Urban Development in fiscal year 2003. The grant is to replace Piedmont Courts - the aged and obsolete public housing project, to revitalize the surrounding Belmont neighobrhoood, and otherwise strengthen and expand the affordable housing inventory in Charlotte. The HOPE VI loan will be underwritten using a 40 year term with interest only payments at a rate no greater than 2.8% based on available cash flow. Replacement Housing Factor Funds is a capital contribution to the project by the Housing Authority of the City of Charlotte. The loan will be underwritten using a 40 year term with interest only payments no greater than 2.8% based on available cash flow. The Charlotte Housing Trust Fund is part of a $5 million funding commitment by the City of

Charlotte to the cost of providing replacement housing on the Piedmont Courts HOPE VI revitalization plan. The Charlotte Housing Trust Fund grant is to serve two purposes: 1) to eradicate Piedmont Court's deteriorated housing stock and provide quality affordable housing; 2) to serve as a catalyst for the revitalization of the Belmont neighborhood.

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

Other Loan 1 - HUD HOPE VI Year: Amt: Year: Amt: 1 195748 11 178805 2 195748 12 174335 3 194769 13 169977 4 193795 14 165727 5 192826 15 160755 6 190898 16 155129 7 188989 17 148148 8 186154 18 140741 9 184292 19 133000 10 181528 20 125020

Other Loan 2 - Charlotte Housing Trust Funds Year: Amt: Year: Amt: 1 0 11 0 2 0 12 0 3 0 13 0 4 0 14 0 5 0 15 0 6 0 16 0 7 0 17 0 8 0 18 0 9 0 19 0 10 0 20 0

Other Loan 3 - Replacement Housing Factor Funds Year: Amt: Year: Amt: 1 24278 11 22323 2 24278 12 21765 3 24278 13 21221 4 24073 14 20691 5 23953 15 20070 6 23833 16 19367 7 23595 17 18496 8 23241 18 17571 9 23008 19 16605 10 22663 20 15608

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 12) 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 13 through 28) 30 Real Estate Attorney 31 Other Attorney's Fees 32 Tax Credit Application Fees (Preliminary and Full) 33 Tax Credit Allocation Fee (0.55% of line 59, minimum $7,500) 34 Cost Certification / Accounting Fees 35 Tax Opinion 36 Organizational (Partnership) 37 Tax Credit Monitoring Fee SUBTOTAL (lines 29 through 36) 38 Furnishings and Equipment 39 Relocation Expense 40 Developer's Fee 41 42 44 45 Other Basis Expense (specify) Inspection & Construction Oversight Other Basis Expense (specify) 137,000 Other Non-basis Expense (specify) Other Non-basis Expense (specify) 1,704,613 0 1,704,613 0 107,100 427,519 107,000 107,000 54,130 795,711 109,140 52,000 2,160 139,119 18,000 12,000 65,484 31,200 0 80,787 0 22,170 7,600 5,900 4,200 64,630 0 22,170 7,600 5,900 4,200 13,133,580 250,000 822,215 290,516 822,215 469,156 437,500 116,400 274,050 16,935,630 152,000 40,000 428,924 121,600 32,000 343,139 13,133,580 250,000 822,215 290,516 822,215 469,156 437,500 116,400 274,050 320,000 320,000 TOTAL COST Eligible Basis 30% PV 70% PV

43 Rent-up Expense

SUBTOTAL (lines 37 through 44) 46 Rent up Reserve 47 Operating Reserve 48 49 Other Reserve (specify) ACC Reserve Other Reserve (specify) Community Supportive Services Reserve

1,948,613 61,200 483,651 210,154 500,000 21,362,480 0 0 19,457,170

50 DEVELOPMENT COST (lines 1-48) 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% 63 Max Federal Tax Credits (Lesser of $8,500 per unit or $850,000) 64 Federal Tax Credits Requested 65 Land Cost 66 TOTAL REPLACEMENT COST Comments:

0 19,457,170 100.00% 19,457,170 25,294,320 2,023,545 2,150,017 850,000 1,100,000 1 21,362,480 1,100,000 0 100.00% 0 130.00% 0 3.43 0 0 19,457,170 100.00% 19,457,170 130.00% 25,294,320 8.00 2,023,545 2,150,017

Total Replacement Cost per unit (maximum of $87,000 or $100,000): Federal Tax Credits (line 62) per unit (maximum $8,500): 10,539

98,566

Market Study Information

Please provide a detailed description of the proposed project: The Crossings at Seigle Point is a two hundred and four (204) unit garden-style apartment community targeted to low and very low income families. The buildings will be three-story walkups with 12- 1 bedroom units, 84- 2 bedrooms, and 108- 3 bedroom units with a high quality design and market rate amenities. Units are spacious and are designed to have ample storage. The buildings' appearance as shown in Tab E, will be a high quality, urban mid-rise development which is consistent with other developments in the adjacent uptown Charlotte neighborhoods. A community building of approximately 2400 square feet will be centrally located on site with several amenities included but not limited to those listed below and shown on the attached graphic. The community building will include a leasing office, a maintenance office accessible both from the exterior and interior of the building, a computer lab with high speed internet access, a multi-purpose room, and laundry facilities. 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

The buildings will be constructed with a mixture of flat roofing and single pitch roofing, double brackets at the cornices, and some horizontal brick detailing.

Have you built other tax credit developments that use the same building design as this project? Yes If yes, please provide name and address: First Ward Place 550 East 8th Street Charlotte, NC 28202

Site Amenities: Site amenities include resident garden plots, tot lots with sitting areas, flag pole, gazebo/arbor, bike racks, horseshoe pit, picnic area with tables and grills, and a bus shelter conveniently located at the entrance of the subject site. In addition, the site will offer fitness stations along the walking trails and passive/ active greenspace. An illustration of amenities offered on site is included in Tab A.

Onsite Activities: The CHA plans to offer support services for residents that will include, but not be limited to safety programs/ seminars for crime prevention, self-sufficiency & life skills training, homeowner counseling/education, and computer training. The community facility will accommodate physical activities occuring in the exercise room; a resident computer lab with high-speed Internet access will be made available, as well as a dining room for social functions/ meetings. A playground and tot lots will be sited in a non-traffic area adjacent to the leasing office. Landscaping Plans: Landscaping features will allow for attractive recreational spaces adjacent to the community building and throughout the site. Planned walkways and trails will provide pedestrian circulation throughout the open space, as well as connectivity to the building entryways. The streetscape treatment and landscape plan make every effort to preserve existing mature trees while incorporating smaller trees in a complementary fashion along primary throughfares at Seigle Avenue and 10th Street. Additionally, approximately 2.5 acres of the overall site perimeters will be dedicated to improvements to the greenway.

Interior Apartment Amenities: Interior apartment amenities include washer/dryer hook-ups, fully equipped kitchen, pre-wiring for cable/internet services and large windows to allow for the ease of natural light. The master bedroom is spacious with at least 145 square feet. Secondary bedrooms are at least 125 sq. ft. All bathrooms will have 4ft. vanities and all units will have balconies/ patios entered from the living area; kitchen and living spaces will have an open floor plan; kitchen islands will also be installed.

Do you plan to submit additional market data (market study, etc.) that you want considered? Yes 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. Trend and direction of real estate development: The Crossings at Seigle Point is located in the Belmont neighborhood. This neighborhood is ripe for re-development. It is immediately adjacent to the thriving First Ward neighborhood and the Garden District, which have undergone substantial revitalization over the past 10 years, and is located less than a mile from Uptown Charlotte where over 300,000 people are employed. Over 50 development projects announced in Uptown have broken ground, are undergoing renovation, or reaching completion representing an investment of over $2.25 billion of development activity encompassing office, residential, retail, entertainment and institutional space. Specifically, within just over a half mile of the subject site, there is currently over $1.1 billion in development activity that has been recently completed or is set to start construction within the next 1-2 years. An area development map with descriptions is attached in Tab A to illustrate these activites. Belmont is in a metropolis that is experiencing a major real estate and economic boom, where urban living is now the trend for young professionals, empty nesters, and families wishing to locate closer to downtown area amenities. Renter-occupied housing in the Charlotte primary market area comprises approximately 61% of the occupied housing units. Renter-occupied housing increased from approximately 10,150 households in 2000 to 12,790 in 2004. This represents significant increased demand for rental housing. While many new market rate ownership and rental developments are available, the overall occupancy rate of subsidized projects in the market area is 98.3% indicating a relatively high level of demand for quality affordable housing. Several planning efforts have been completed recently, all focused on building on the momentum of Uptown revitalization and leading to the turning around of Belmont. These planning efforts to include the creation of the Belmont Area Revitaliztion Plan (attached in Tab C); a community revitalization plan adopted on May 12, 2003 by the Charlotte City Council and the Charlotte Mecklenburgh Planning Commission which targets the neighborhood for streetscape improvements, physical repair to roads and sidewalks; zoning changes that are leading to appropriate density requirements; improvements to the Little Sugar Creek Greenway for safer nature trails and useable greenspace; as well as other major development activities. Area Economic Health: Of the many key stakeholders involved in revitalizing Belmont is the Housing Authority of the City of Charlotte (CHA) that will initiate key development activities to be completed over the next four years. Through the 2004 award of a $20 million HOPE VI grant that is being leveraged to over $120 million in physical and economic investment, the CHA has developed a comprehensive plan to redevelop the aged, dilapidated and severely distressed public housing project known as Piedmont Courts, most recently renamed Seigle Point. In addition, several off-site parcels located within the Belmont community will be developed to achieve critical mass and bolster the impact of revitalization efforts. The HOPE VI revitalization plan calls for the demolition of the 242 distressed public housing units on site and for replacing them with 398 new units on site, as well as 395 new units off-site, in the Belmont neighborhood and adjoining neighborhood of Optimist Park. The development of Seigle Point includes 204 multifamily rental units, 54 affordable and market town homes, and 140 marketrate condominiums. Demolition of all existing structures is scheduled for completion by November 2006. Most recently, the CHA has been heavily involved in refining the master plan for Seigle Point. An illustration of existing site conditions and the new master plan for Seigle Point is attached in Tab A. The Crossings at Seigle Point, with 204-rental units, is the first on-site phase to be developed at Seigle Point. Phase II will include the construction of town homes, available to market-rate and lowmoderate income buyers. The final phase planned on-site is the development of the market rate condominium units. This phasing plan is shown on an attached map in Tab A. The off-site component of the revitalization plan includes several important residential projects, new community facilities, infrastructure improvements and supportive efforts, such as streetscape improvements by the City. The first new development, McAden Park, is within 4 block of Seigle Point (formerly Piedmont Courts). McAden Park consists of 60 multi-family rental units to be developed on two parcels at the intersections of 15th Street and Seigle Avenue and 16th Street and Seigle Avenue. The development will be affordable to households at 60% and below CharlotteMecklenburg area median income. CHA and its lead developer TCG Charlotte, LLC, have secured financing on this first phase of the overall HOPE VI project. Construction will begin February 2006. On the heels of developing McAden Park, will come 940 Brevard, another off-site component of the HOPE VI project located on the Bilbro site between Brevard and Caldwell Streets at the western edge of the Belmont neighborhood. The 940 Brevard development consists of 100 one-bedroom units for the elderly. This development was recently awarded forward commitments of 2006 tax

credits by the North Carolina Housing Finance Agency. An additional 225 moderately priced condominium units will be developed on this site at a later phase. A commercial component of 10,000 square feet of ground floor retail space is also planned on-site. The physical relationships of the HOPE VI developments are illustrated in the attachment Adjacent Revitalization Projects in Tab A. The overall HOPE VI plan will introduce substantial homeownership into the Belmont neighborhood. In addition to the 415 condominium and town home for sale units to be built under the HOPE VI program, scattered neighborhood properties currently vacant or severely blighted will also be returned to single-family residency through a partnership with the Belmont Community Development Corporation. More than half of the new units introduced through HOPE VI will be targeted to affordable and market-rate households. Physical Conditions of Buildings and Improvements: Belmont is generally considered a residential neighborhood with varying land use patterns. Overall, 34% of the land area is single-family, 12% is multifamily, 6% is commercial, 5% open space, 14% is vacant, along with a mixture of other uses as indicated further in the attached Belmont Revitalization Plan. Approximately 74% of existing physical building conditions appear to be good or to need general repair such as faade improvements and maintenance. The remaining buildings require major repair or present a safety hazard to the general public. In its opening pages, the Belmont Area Revitalization Plan highlights three housing development objectives to begin to address the issue of blight in the neighborhood that are supported by trends in demographics and market conditions. All three are primary components of the HOPE VI Revitalization Plan and will improve physical conditions in the neighborhood: to replace the blight of Piedmont Courts public housing with new mixed income housing, to provide retail nearby, and to provide a greater density of housing with new multi-family rental and homeownership. Many of the commercial uses that constitute blight have been acquired or targeted for acquisition and removal, to be replaced with high quality housing, and economic development projects; several have been rezoned. The vacant lot acquisition plan, funded with $1.2 million in City funds and implemented by the CHA and TCG, will eliminate significant blight. The City of Charlotte is a major participant in planning, leading and implementing improvements to the Belmont area; it has also contributed land and substantial capital to the effort. The following outlines the key City contribution and commitment to restoring the areas economic vitality: Provided $156,000 for the community revitalization planning study Belmont Area Revitalization Plan. The document is included in this submission and is the official community revitalization plan for Belmont. Many of the activities outlined below are also underscored in this plan. Appropriated $23.75 million to renovate, change certain uses, and beautify the City Central Yards property across the street from Seigle Point. Approximately $6.4 million has been spent to date. The renovation will soon include the redevelopment of the Seigle Avenue Street frontage with new office buildings that are compatible in design with the architecture of new development in the area. Phase I of the project, which involves construction of a new Street Maintenance facility is scheduled to be completed in Spring 2006 followed by demolition of the current facility at Central Yards. In Fall/Winter 2006, the city will begin construction of a new Light Equipment facility, followed by demolition of the existing facility along the railroad track. The Seigle Avenue Streetscape project, recommended in the Belmont Plan is funded with $5.02 million for the infrastructure and streetscape improvements emphasized on Seigle Avenue, 10th Street, and Pegram Avenue. The planning phase of the project is scheduled to end March 2006 and the entire project is slated for completion by May 2009. Budgeted $1,000,000 for improvements to a one-mile portion of the Little Sugar Creek Greenway that includes the floodplain area that runs along the Seigle Point site. Approximately 2.5 acres of the site adjacent to the creek will be donated by CHA to the City as part of the Little Sugar Creek Reclamation Project. This significant project includes the creation of an 18-mile long greenway of parks and paths adjacent to Piedmont Courts and is an added amenity to the site. The Countys schedule coordinates concurrently with the Seigle Point development schedule. Budgeted $823,000 in water main and sewer line improvements. Spent $797,000 to relocate an asphalt plant that was in close proximity to one of CHAs proposed HOPE VI sites. Spent $181,235 to assist the Belmont CDC, in homeownership related activities to revitalize the Belmont neighborhood. CHA and TCG will partner with the Belmont CDC to develop ten singlefamily scattered site homeownership units in the community. Concentration of Affordable Housing: The HOPE VI project, coupled with local government support and economic investment, is proving to be a catalyst for private sector intervention in the area. Crosland, a private Charlotte-based development firm, will renovate the Alpha Cotton Mill, a late 19th century textile mill into an upscale rental community with 161 new units. The adaptive-reuse of the Alpha Mill will consist of 73

renovated apartment units featuring exposed brick interiors, high ceilings with exposed beams, and oversized windows, lofted bedrooms, and a modern open floor plan. The project will also include 88 newly constructed apartment homes in five buildings. The new buildings will complement the architectural exterior of the historic mill buildings and the units will attempt to recreate the loft style of the renovated units. With over $16 million worth of economic investment, this project will contribute to growing the area into a diverse, mixed-income environment, while opportunities for quality affordable residency will still remain. The Alpha Mill is located adjacent the 940 Brevard project. Demolition of the mill is currently taking place. To support the Alpha Mill site of Crosland as well as the 940 Brevard project and the new condominiums on the Bilbro site, the City and CHA are jointly funding the realignment of Caldwell Street that transects the Bilbro site. Construction will begin on this $1.2 million infrastructure project in 2006. To underscore the Citys commitment to the revitalization of Belmont, significant commitments were made and approved by City Council in support of the Piedmont Courts HOPE VI project to conduct the following: $5 million for a capital contribution to the cost of providing replacement housing. To date, $3.1 million is being utilized to develop the McAden Park project scheduled for construction on January 2006. $3.8 million for the creation of new infrastructure on the site. $1.2 million has been appropriated and committed for acquisition of privately owned, vacant parcels for in-fill single-family development. The City has donated six parcels of land, a total of 1.85 acres with a value of $604,632 to the CHA for off-site development. These include four parcels of land adjacent to the Bilbro parcels and included in the land assemblage for 940 Brevard; the Police car lot on the edge of the Piedmont Courts site; and a parcel at Pegram and Parkwood Streets in Belmont. The CHA has a substantial track record of leveraging HOPE VI grants to transform neighborhoods of decay and blight into healthy vibrant communities. It has won four HOPE VI grants with one of them being for the immediately adjacent First Ward area. First Ward Place a 1993 grant to rehab Earle Village public housing is located within close proximity to The Crossings at Seigle Point. This development has been the stimulus for renewed interest in urban living and has spawned economic resurgence into Charlottes uptown, so much that population growth has increased from about 5,500 in the mid 1990s to 8,500 in 2003 and is projected to increase to 15,000 by 2010. A $30 million KROC Community Center initiative sponsored by the Salvation Army, the CHA, Grubb Properties and other stakeholders, has selected a site at 10th and Seigle Avenue, directly across from the subject site to compete in a regional selection process. The proposal is in its final round of review by the KROC Foundation. If successful, an extra-ordinary state of the art Community Center will be located within the neighborhood, serving as a destination for both visitors and residents and providing a myriad of community arts, recreation, and learning activities. The facility will include a gymnasium, swimming pool, day care, performing arts, classrooms and offices. This facility will also help to create employment opportunities and attract new users to the neighborhood. One might contemplate the vision to revitalize Belmont only to see the physical evidence of large scale construction occurring all throughout adjacent neighborhoods and even inside the neighborhood's boundary. The attached aerial graphic illustrates the numerous developments occurring within and around the Belmont area. The capability of the development team assembled by the CHA, their formidable success in this marketplace and other communities, the commitment and investment of funds through public private partnerships clearly demonstrate that Belmont is poised for revitalization. The proposed tax credit project will be integral to its success. 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.

pollution). Amount and character of vacant, undeveloped land. development team, Crosland's Alpha Mill will be of great complement to the neighborhood. To the east of the site, in the Elizabeth neighborhood approximately 1 mile away, is the redevelopment of the Elizabeth Avenue Corridor where Presbyterian Hospital is located. This five-block area is currently being totally revamped by Grubb Properties. Amenities: Most desirable is the significant investment made by local government in improving the Little Sugar Creek Greenway that runs along the southern edge of the Seigle Point site, within walking distance to the subject project and through the Belmont neighborhood on the banks of the creek. Upon final reconstruction that is currently underway, it will connect to 18 miles of greenway trails running all the way to the South Carolina state line. The Greenway is a beautiful natural resource and will serve as an added amenity for future residents at Seigle Point. Within less than 0.1 mile is the Piedmont Open Middle School that now has outdoor athletic fields for sporting games and activities. Basketball courts and tennis courts are within walking distance at the HOPE Building almost directly across the street from the site, and at the Carole Hoefener Center located within 1/2 mile. An abundance of childcare services is also available within immediate proximity to the site at the HOPE Building and the Carole Hoefener Center offering quality, licensed, day care facilities. Adequate nearby grocers, pharmacy and convenient stores are available. Immediately across the street from the site is the Seigle Avenue Presbyterian Church and within a mile of the site are at least a half dozen churches throughout the neighborhood that can be of interest to families with children. The Salvation Army Community Center is located within very close proximity, southwest of the site. It is also host to the Boys and Girls Club and is well patronized. An aerial map is attached in Tab A, which shows area amenities within a mile and 1 mile radius from the subject site. SITE SUITABILITY Adequate traffic controls (stop lights, speed limits, turn lanes, etc.). Burden on public facilities (particularly roads). Access to mass transit (if applicable). Visibility of buildings and/or location of project sign(s) in relation to traffic corridors. The Charlotte Area Transit System (CATS) is a public transportation service that serves Mecklenburg County. The site is served by a bus stop located at the entrance of the site. The bus runs along Seigle Avenue into Uptown. There is also immediate access to Interstate 277, which provides direct connections to Interstate 77 and Interstate 85. The site is also within close proximity to Central Avenue and U.S. Highway 74/ State Route 27. The infrastructure of the neighborhood is adequate with a well-defined road system, and maintained roads serving the proposed site and surrounding areas. There are adequate traffic controls throughout the neighborhood including the areas adjacent to the site. There is a stop light at the corner of Seigle Ave. and 10th Street that will allow residents safe ingress and egress from the site. In addition, the forthcoming extension of the trolley/ light rail system, and the pedestrian promenade along the railroad tracks adjacent to Brevard Street will be a significant lifestyle benefit. 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 is existing gradual sloping on the site beginning at Seigle Avenue and falling about 20-0 to the greenway. Once existing structures that are currently sited in the Little Sugar Creek swim buffers are demolished, the site will need significant re-grading in order to obtain the minimum finished floor elevation that is required by the future flood fringe area for residential buildings to be built on the site. As a result, there may be some retaining walls required within the site that separates the greenway from the proposed building area. A lightly used CSX railway also runs just a few blocks from the site. However, new buildings brought on-line in a future phase will be sited at the farthest possible distance away from the railway, and will be designed for proper insulation to mitigate noise inside the buildings. Traffic calming mechanisms are also planned for the area. The Seigle Avenue Streetscape Improvement project calls for building and repairing sidewalks, adding curbs and gutters, and will allow a tree-planting strip for smaller maturing trees. A 9-foot wide on-street parking lane will be installed to the west of the street. These improvements will introduce traffic calming for the length of the street from the proposed site along Seigle Avenue. Planning and design for these improvements is expected to be complete 9/1/06. Construction is anticipated to commence Spring/Summer 2007, approximately the same timeframe when the subject project will be under construction. Similarity of scale and aesthetics/architecture between project and surroundings. The new multi-family buildings will be urban in character and complementary to the CHAs First Ward, McAden Park and 940 Brevard developments. The buildings will be no more than three stories and will be constructed of cement fiber, wood, and brick accents, in a style compatible with other structures in the neighborhood. The design will help to restore connections to the neighborhood and will be a good fit by way of scale, architectural design, and character.

For each applicable neighborhood feature, enter distance from project in miles. 0.6 0.7 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.6 0.1 0.7 Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools 0.1 0.8 0.6 0.8 0.8 Community/Senior Center Hospital Pharmacy Basic Health Care Medical Offices Bank/Credit Union Restaurants Professional Services Movie Theater Video Rental Public Safety (Fire/Police) Post Office

Public Transportation Stop 0.3 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools 0.7 0.3 1.1 0.8 0.5 0.4

Other facilities or services:

Development Team
Provide contact information for development team members below: Management Agent Company: Community Management Corporation Address: City: Phone Post Office Box 25168 Winston-Salem (336)765-0424 State: NC Zip: 25168 Email: gmorgan@cmc-nc.com Last: Morgan

Contact Name: First: Gaye

Architect Company: Address: City: Phone

The Housing Studio 500 East Boulevard Charlotte (704)333-7862 State: NC Zip: 28203 Email: ctravis@housingstudio.com Last: Travis

Contact Name: First: Chuck

Attorney Company: Address: City: Phone

Klein Hornig LLP 1401 K Street, N.W., Suite 700 Washington (202)842-9006 State: DC Zip: 20005 Email: chornig@kleinhornig.com Last: Hornig

Contact Name: First: Chris

Investor Company: Address: City: Phone

National Equity Fund, Inc. 700 River Avenue Pittsburgh (412)322-9330 State: PA Zip: 15212 Email: mkisilinsky@nefinc.org Last: Kisilinsky

Contact Name: First: Macy

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

Identity of Interest? General Contractor Company: Carocon Address: City: Phone 5934 Old Pineville Road Charlotte (704)525-1410 State: NC Zip: 28217 Email: ambrosed@carocon.com Last: Dittloff

Contact Name: First: Ambrose

Project Team Experience

Development List number low-income/tax credit housing projects and units developed, operated, and maintained in compliance by the principal(s) between December 1, 1998 and January 1, 2005 : North Carolina Other States Projects: Units: 3 390 10 752

Management List number of low-income housing tax credit units managed in the past 10 years: North Carolina Other States Projects: Units: 44 2,404 0 0

Has any owner, principal, or management agent been debarred or received a limited denial participation in the past 10 years by any federal or state agency? No Has any owner, principal, or management agent been involved in a bankruptcy, an adverse fair housing settlement, an adverse civil rights settlement, or an adverse federal or state government proceeding and settlement in the past 10 years? No Has any owner or principal been in a mortgage default or delinquency of three months or more within the last 5 years on a FHA-insured project, a Rural Development funded rental project, a tax-exempt funded mortgage, a tax credit project, or any other publicly subsidized project? No Has any owner or principal been involved within the last 10 years in a project which previously received an allocation of tax credits but failed to meet compliance standards of the tax credit allocation, including return of a reservation of tax credits to the Agency after the carryover agreement has been signed? No Has any owner or principal had a Form 8823 filed with the IRS for noncompliance on a project using low-income housing tax credits or received a letter of non-compliance from the Agency? No Does any owner, principal or management agent have any outstanding flags in HUDs national 2530 National Participation system? No If yes, please specify

Has any owner, principal or management agent been involved in any project awarded tax credits in 2002 or earlier for which either the permanent financing or equity investment has not closed? No If yes, please specify

Has any owner, principal or management agent been involved in any project awarded tax credits in 2002 or earlier for which the final cost certification requirements have not been met by December 22, 2005? No If yes, please specify

Has any owner, principal or management agent been involved in any project awarded tax credits after 2000 where there has been a change in general partners or managing members during the last five years that the Agency did not approve in writing beforehand? No If yes, please specify

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): 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) 104,856 161,574 11,220 9,180 15,504 38,760 7,140 11,832 10,200 12,240 25,500 91,800 290,190 0 40,800 25,500 4,080 8,160 3,060 10,200 84,048 71,400

3,570 93,636 12,036

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 0 51,500 51,500 798,860 585,786 204 2,871 6,120 20,400 61,200

260,514

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): 7,140 1,124,424

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)

1,131,564 79,209 1,052,355

798,860 253,495

220,026

33,469 1.15

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* 1 2 3 4 5 6 7 8 9 10

1,052,355 1,083,926 1,116,444 1,149,937 1,184,435 1,219,968 1,256,567 1,294,264 1,333,092 1,373,085 798,860 220,026 33,469 1.152 11 830,814 220,026 33,086 1.15 12 864,047 219,047 33,350 1.152 13 898,609 217,868 33,460 1.154 14 934,553 216,779 33,103 1.153 15 971,935 1,010,812 1,051,244 1,093,294 1,137,026 214,731 33,302 1.155 16 212,584 33,171 1.156 17 209,395 33,625 1.161 18 207,300 32,498 1.157 19 204,191 31,868 1.156 20

1,414,278 1,456,706 1,500,407 1,545,419 1,591,782 1,639,535 1,688,721 1,739,383 1,791,564 1,845,311

Total Operating Expenses* 1,182,507 1,229,807 1,278,999 1,330,159 1,383,365 1,438,700 1,496,248 1,556,098 1,618,342 1,683,076 Debt Service Net Cash Flow Debt Coverage Ratio 201,128 30,643 1.152 196,100 30,799 1.157 191,198 30,210 1.158 186,418 28,842 1.155 180,825 27,592 1.153 174,496 26,339 1.151 166,644 25,829 1.155 158,312 24,973 1.158 149,605 23,617 1.158 140,628 21,607 1.154

* 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 qualified units are occupied by households with incomes at or below 50% of median income.

State Tax Credit and QAP Targeting Points: High Income county: At least twenty-five percent (25%) of qualified units will be affordable to households with incomes at or below thirty percent (30%) of county median income. At least twenty-five percent (25%) of qualified units will be affordable to and occupied by households with incomes at or below thirty percent (30%) of county median income.

At least fifty percent (50%) of qualified units will be affordable to households with incomes at or below forty percent (40%) of county median income. At least fifty percent (50%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income.

Tax Exempt Bonds Threshold requirement (select one): At least ten percent (10%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income. At least five percent (5%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income. Eligible for targeting points (select one): At least twenty percent (20%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income. At least ten percent(10%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income.

Full Application Checklist

PLEASE indicate which of the following exhibits are attached to your application. Others may be required as noted. A Nonprofit Organization Documentation or For-profit Corporation Documentation B Current Financial Statements/Principals and Owners (signed copies) C Ownership Entity Agreement, Development Agreement or any other agreements governing development services D Management Agent Agreement E Owner and Management Experience & Management Questionnaire (Appendix C) F Letters from State Housing Agencies or designated monitoring agent verifying out of state experience G Completed IRS Form 8821 (Appendix I) H Local Government Letter or Letter from Certified Engineer or Land Surveyor Confirming Floodplain Designation with Map showing all flood zones (original on letterhead, no fax or photocopies) I Local Government Letter Confirming Zoning including any pending notices or hearings (original on letterhead, no fax or photocopies) J Letters from Local Utility Providers regarding availability and capacity (original on letterhead, no fax or photocopies) K Documentation 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. 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) U Anticipated budget demonstrating how the project will meet the 10% test