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

Project Description
Project Name: Wellspring Village Address: City: 240 Pitts School Road NW Concord County: Cabarrus Zip: 28027 Block Group: 4

Census Tract: 426

Is project in Qualified Census Tract or Difficult to Develop Area? No Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: City of Concord Last: Padgett Title: Mayor 26 Union St. Concord (704)920-5215 Zip: 28025

Jurisdiction CEO Name: First: J. Scott

Site Latitude: Site Longitude:

35.3498 -80.6531

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? No 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: Elderly (55) 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: 3 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 6 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: Wellspring Village LLC 227 W. Trade St., Suite 800 Charlotte First: Dean (919)754-8990 (919)256-3025 (919)754-8995 dedwards@crosland.com State: NC Zip: 28202 Last: Edwards Title: Vice President

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

Site Description
Total Site Acreage: 6.525 Total Buildable Acreage: 6.525 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? No If yes, specify the relationship:

Purchase Price:

(c) Enter the current expiration date of the option/contract to purchase: 11/30/2007 (D) Enter Purchase Price: 300,000

Zoning
Present zoning classification of the site: O-I (Office & Institutional) 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? Yes If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for obtaining them: Conditional Use Permit approval obtained from City of Concord on March 15, 2005.

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: Wellspring Village LLC Address: City: 227 West Trade Street, Suite 800 Charlotte State: NC Zip: 28202 20-3903874 (If assigned)

Federal Tax ID Number of Ownership Entity:

Note: Do not submit social security numbers for individuals. 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?

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:

Crosland Wellspring LLC Last Name: Edwards Function: Managing Member

First Name: Dean Address: City: Phone: EMail:

227 West Trade Street, Suite 800 Charlotte (919)256-3025 dedwards@crosland.com State: NC Zip: 28202

Fax: (919)754-8995 Nonprofit: No

Unit Mix
The Median Income for Cabarrus county is $64,400. Low Income Units Type Duplex Duplex Duplex Duplex Duplex Duplex # BRs Net Sq.Ft. 1 2 1 2 1 2 686 908 686 908 686 908 Total # Units 11 2 6 2 27 4 # Units 2 1 1 1 1 0 Monthly Rent 280 350 525 575 575 660 Electric Utility Allowance 63 73 63 73 63 73 Gas Mandatory Serv. Fees 0 0 0 0 0 0 Other garbage collection **Total Housing Exp. 343 423 588 648 638 733

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............... 52 6 26245 52 Gross Monthly Rental Income 26245

Units 6

Proposed number of residential buildings: 13 Project Includes:

Maximum number of stories in buildings: 1

Separate community building - Sq. Ft. (Floor Area): 2,245 Community space within residential bulding(s) - Sq. Ft. (Floor Area): Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 40,020

Total Net Sq. Ft. (All Heated Areas): 37,448

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 1 2 1 2 11 2 6 2 27 4

Units targeted at 30 targeted at 30 targeted at 50 targeted at 50 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:

52

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

Funding Sources
NonAmortizing* Rate (%) 7.50 2.00 2.00 Term (Years) 30 20 30 Amort. Period (Years) 30 20 30 Annual Debt Service 17,494 47,350 9,225

Source Bank Loan RPP Loan Local Gov. Loan - Specify: City of Concord - HOME Funds 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 208,500 780,000 208,000

485,093

30

30

3,732,409

228

5,414,230

* "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. 95 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) City of Concord will provide low interest loan with HOME funds amortizing at 2% for 30 years. A negotiated payment schedule for RPP funds may be necessary in order to make Debt Coverage Ratio acceptable to investors.

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) Bank Fees/Inspections/Permits Other Basis Expense (specify) Soil Borings/Testing Other Non-basis Expense (specify) Other Non-basis Expense (specify) 546,000 12,000 9,000 26,000 546,000 12,000 9,000 8,950 222,490 40,000 10,000 2,200 28,135 15,000 2,500 2,500 33,800 134,135 30,000 30,000 15,000 40,000 10,000 2,085 2,500 26,000 14,000 4,000 1,500 4,200 2,250 26,000 14,000 4,000 1,500 4,200 192,887 68,153 204,460 110,408 130,000 25,000 40,000 3,985,688 15,500 24,000 119,755 14,725 22,800 113,767 192,887 68,153 204,460 110,408 130,000 25,000 40,000 2,415,160 2,415,160 799,620 799,620 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)

623,000 15,600 133,317

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:

5,114,230

4,850,930

0 4,850,930 100.00% 4,850,930 4,850,930 392,925 412,329 416,000 0 300,000 5,414,230 412,329 0 100% 0 100.00% 0 3.45 0 0 4,850,930 100% 4,850,930 100.00% 4,850,930 8.10 392,925 412,329

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

94,987 7,929

Market Study Information

Please provide a detailed description of the proposed project: Wellspring Village will be a 52-unit seniors housing development, located on a very attractive site in Southeast Concord, North Carolina, adjacent to an existing Lutheran Church. This area is a prime growth area in the City of Concord, with the large shopping mall of Concord Mills in the immediate vicinity. Other than the Lutheran Church, the site is also adjacent to a city Fire Station as well as a large, active Baptist Church, while the rear of the site adjoins an upscale Baptist sponsored retirement community. The site is also surrounded by upscale single family subdivisions. There is no other affordable housing of any type in the area, creating a need that Wellspring Village will be poised to fulfill. The residential units at Wellspring Village will be constructed as 13 quadplex single-story cottages. The buildings will have a "pinwheel" design, so that each side of each building will contain a private entrance to a unit. The community includes a large community building that will provide actitivites, an exam room, and ample areas for residents to meet and socialize. 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

Also provided will be carbon-monoxide detectors, Range Queen Canister fire extinguishers at range hoods, and ceiling fans.The use of fiber cement product siding and trim, along with generous amounts of brick, as well as shake accent panels in the gables of each building, will make this a low maintenance and attractive community.

Have you built other tax credit developments that use the same building design as this project? Yes If yes, please provide name and address: Arbor Glen Apartments 2305 Farmer Street Charlotte, NC 28208 Camellia Court Apartments 4609 Country Club Road Morehead City, NC 28557 Kings Mill Apartments 1200 Daughter's Drive Newport, NC 28570 Troon Apartments 300 Troon Way Beaufort, NC 28516 Renaissance Commons Apartments 301 Renaissance Circle Elizabeth City, NC 27909 Site Amenities: Community Building, Resident Garden Plots, Outdoor seating areas, Gazebo, Picnic Area with Tables/Grilles, Bike Racks, Activity Room, Exam Room, Computer Center/Library, TV Room

Onsite Activities: Safety Programs President Council Monthly Birthday Parties Seasonal Holiday Parties

Movie Nights

Landscaping Plans: With a budget of $1,200 per unit for landscaping, Crosland will heavily landscape the proposed buildings on this site to ensure the planting and maintenance of plants and trees that will provide a lush, beautiful environment on the site as they grow.

Interior Apartment Amenities: Range, Hood, Dishwasher, Disposal, Refrigertor (frost free), Storage interior/exterior, W/D hookups, mini blinds, Pantry, Ceiling fans, carpet, vinyl, central air, heat pump

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 Wellspring Village site is in a formerly rural area in southeast Concord, North Carolina, that is rapidly developing. Economically, the area is the strongest in Concord, with nearby Concord Mills Mall and Lowe's Motor Speedway serving as powerful economic engines. In the area immediately surrounding the site area is a Lutheran Church and a Baptist Church, as well as a large market rate Baptist retirement community, and several attractive, newer single family residential developments. A fire station is also adjacent to the site. There is no other nearby affordable housing.

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 Wellspring Village site is a unique and beautiful combination of the attractive homes found in middle to upper income single family residential communities, and the gorgeous open spaces and rolling hills found in more rural areas of North Carolina's Piedmont region. The nearby supportive amenities are ample. A Food Lion grocery store and an Eckerd pharmacy, along with over a dozen other shops and restaurants, including Family Dollar and Blockbuster Video stores, are located just over a half-mile away from the site. An even more prominent regional attraction, Concord Mills Mall (one of the top destinations in North Carolina), with dozens of accompanying shops and restaurants, is just 3 miles away from the site. There are no nearby incompatible uses, and the vacant, undeveloped land in the area is mainly farmland, or part of large (2 acres of more), older single family residential lots. 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. Pitts School Road, the main thoroughfare that runs next to the Wellspring Village site, is not heavily traveled, and as a seniors community, Wellspring Village will not create any significant additional traffic burden. The site adjoins Family of Faith Lutheran Church, and, in working with the Church and the City, as well as DOT, it was decided to improve the traffic flow of the church's entrance by aligning the entrance of both the church and Wellspring Village with the subdividion directly across from the church. By combining the two entrances, we will create a new entry and landscape design for the church to produce a more aesthetically pleasing area for the neighborhood. This is reflected in the site plan accompanying this application. 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 on-site negative physical barriers, and no parking or environmental problems.

Similarity of scale and aesthetics/architecture between project and surroundings. The residential units at Wellspring Village will be constructed as 13 single story 4-unit cottages, with a separate and private entrance for each cottage. There will only be one entrance on each side of a cottage building, This design will give the cottage buildings the character and appearance of ranchstyle, single family homes, which is very consistent with the nature of much of the surrounding single family homes.

For each applicable neighborhood feature, enter distance from project in miles. .5 .5 Grocery Store Mall/Strip Center Outdoor Athletic Fields 3.0 .1 Day Care/After School Schools 6.8 6.8 .5 7 7 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 4 .5 Convenience Store Basketball/Tennis Courts 2.4 .5 4 2.4 Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools Other facilities or services: .5 4 4 .5 .05 2.9

Development Team
Provide contact information for development team members below: Management Agent Company: Crosland, Inc. Address: City: Phone 227 West Trade St., Suite 800 Charolotte (704)529-1166 State: NC Zip: 28202 Email: dedwards@crosland.com Last: Edwards

Contact Name: First: Dean

Architect Company: Address: City: Phone

Cline Design 125 N. Harrington St. Raleigh (919)833-6413 State: NC Zip: 27603 Email: JohnH@clinedesignassoc.com Last: Harvey

Contact Name: First: John

Attorney Company: Address: City: Phone

Jordan Price Wall Gray Jones & Carlton 1951 Clark Avenue Raleigh (919)831-4482 State: NC Zip: 27605 Email: sellinger@jordanprice.com Last: Ellinger

Contact Name: First: Susan

Investor Company: Address: City: Phone

RBC Capital Markets 2101 Rexford Road, Suite 375W Charlotte (980)233-6500 State: NC Zip: 28211 Email: Rob.Vest@rbc.com Last: Vest

Contact Name: First: Robert

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

Identity of Interest? General Contractor Company: Crosland, Inc. Address: City: Phone 227 West Trade Street, Suite 800 Charlotte (704)529-1166 State: NC Zip: 28202 Email: dwilliams@crosland.com Last: Williams

Contact Name: First: Denon

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): Training/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) 32,850 35,922 2,743 250 250 9,000 4,680 12,860 10,000 250 5,000 3,000 100 5,000 1,500 5,000 10,000 3,600 750 1,500 81,890 21,840 36,000 500

1,200

3,500 4,680

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

500 12,500 75 75 3,000

54,815 12,000 500

12,500 13,000 13,000 207,915 146,493 52 2,817

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): 3,744 314,940

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)

318,684 22,307 296,377

207,915 88,462

74,069

14,393 1.194

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 1 296,377 207,915 74,069 14,393 1.194 11 398,305 307,764 74,069 16,472 1.222 2 305,268 216,232 74,069 14,967 1.202 12 410,254 320,075 74,069 16,110 1.217 3 314,426 224,881 74,069 15,476 1.209 13 422,562 332,878 74,069 15,615 1.211 4 323,859 233,876 74,069 15,914 1.215 14 435,239 346,193 74,069 14,977 1.202 5 333,575 243,231 74,069 16,275 1.22 15 448,296 360,041 74,069 14,186 1.192 6 343,582 252,960 74,069 16,553 1.223 16 461,745 374,443 74,069 13,233 1.179 7 353,889 263,078 74,069 16,742 1.226 17 475,597 389,421 74,069 12,107 1.163 8 364,506 273,601 74,069 16,836 1.227 18 489,865 404,998 74,069 10,798 1.146 9 375,441 284,545 74,069 16,827 1.227 19 504,561 421,198 74,069 9,294 1.125 10 386,704 295,927 74,069 16,708 1.226 20 519,698 438,046 74,069 7,583 1.102

* 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: 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 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)