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Project Description
Project Name: Stewart's Creek I Apartments Address: City: 101 Matthews Street Warsaw County: Duplin Block Group: 2 Zip: 28398
Is project in Qualified Census Tract or Difficult to Develop Area? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: 7th Congressional District Last: Batten Title: Mayor P.O. Box 464, 121 South Front Street Warsaw (910)293-7814 Zip: 28398
34.999 -78.091
Project Type: Rehab New Construction/Adaptive Reuse: Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project? If yes, list names of previous phase(s): Rehab: Is this project a previously awarded tax credit development? No If yes, what year were credits awarded?: Number of residents holding Section 8 vouchers: 0 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? Yes If yes, provide the subsidy source: HUD and number of units: 50 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: 0 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 5 Remarks: This is an existing project with no permanent displacement nor is a great deal of turnover anticipated. The Owner will make a good faith effort to give priority to the disabled or homeless subject to approval from HUD.
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: GDJ Developer, LLC P.O. Box 25168 Winston-Salem First: Gaye (336)231-8125 (336)765-0424 (336)765-3831 gmorgan@cmc-nc.com State: NC Zip: 27114-5168 Last: Morgan Title: Member
NOTE: Email Address above will be used for communication between NCHFA and Applicant.
Site Description
Total Site Acreage: 10.26 Total Buildable Acreage: 10.26 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? Yes If yes, please describe: Existing Rental Office/Maintenance Shop will be razed and a new 2180 square foot Community Center will be constructed to house all central services to the community. To be included are rental office, maintenance shop, central laundry, and common activity areas.
Are existing buildings on the site currently occupied? Yes If yes: (a) Briefly describe the situation: The project runs an annualized occupancy rate of 98%. It is anticipated that displacement will be limited to temporary moves to other units within the project as units are rehabilitated. This will serve to limit the inconvenience and disruption to the residents and increases the likelihood that residents will remain in the property, thus reducing vacancy loss. Temporary relocation in the project will be necessary due to abatement and/or encapsulation of asbestos tile flooring and for the installation of major mechanicals and HVAC equipment.
(b) Will tenant displacement be temporary? Yes (c) Will tenant displacement be permanent? No 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)? Yes If yes provide: Purchase Date: 7/06/2005 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:
(c) Enter the current expiration date of the option/contract to purchase: (D) Enter Purchase Price:
Zoning
Present zoning classification of the site: R6 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? No If yes, have the hearings been completed and permits been obtained? If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for obtaining them:
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? Yes If yes, describe below: Asbestos Tile Floors requiring abatement/remediation
Ownership Entity
Owner Name: Stewart's Creek I, LLC Address: City: P.O. Box 25168 Winston-Salem State: NC Zip: 27114-5168 20-2943212 (If assigned)
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:
First Name: Gaye Address: City: Phone: EMail: P.O. Box 25168 Winston-Salem (336)231-8125 gmorgan@cmc-nc.com
State: NC
Zip: 27114-5168
Org:
First Name: David Address: City: Phone: EMail: P.O. Box 25168 Winston-Salem (336)231-8146 deagan@cmc-nc.com
State: NC
Zip: 27114-5168
Org:
Stewart's Creek I, LLC Last Name: Eagan, III Function: Managing Member
First Name: John Address: City: Phone: EMail: 218 N. Main Street Mooresville (704)663-6392 jeagan@alltel.net
State: NC
Zip: 28115
Unit Mix
The Median Income for Duplin county is $47,100. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt Gdn Apt # BRs Net Sq.Ft. 1 1 2 2 3 3 582 582 794 794 984 984 Total # Units 2 2 12 18 6 9 # Units 0 1 0 1 0 1 Monthly Rent 380 434 436 436 532 543 Electric Utility Allowance 61 61 71 71 80 80 Gas Mandatory Serv. Fees 0 0 0 0 0 0 Other Trash Collection **Total Housing Exp. 441 495 507 507 612 623
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.
Water/Sewer
Market Rate Units Type Gdn Apt Total # BRs Net Sq.Ft. # Units 1 984 1 # Units 0 Monthly Rent 543 Electric Utility Allowance 80 Gas Mandatory Serv. Fees 0 Other Trash Collection **Total Housing Exp. 623
Water/Sewer
Statistics All Units Low Income....... Market Rate....... Totals............... 49 1 50 Gross Monthly Rental Income 22787 543 23330
Units 3 0 3
Separate community building - Sq. Ft. (Floor Area): 2,436 Community space within residential bulding(s) - Sq. Ft. (Floor Area): Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 44,328
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 1 2 2 3 3 2 2 12 18 6 9
% percent of median income affordable to percent of median income affordable to/occupied by percent of median income affordable to percent of median income affordable to/occupied by percent of median income affordable to percent of median income affordable to/occupied by
49
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: 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
1,722,623
30
30
3,521,508
269
5,244,400
* "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. 89 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) It is anticipated that either Enterprise or Raymond James Tax Credit Fund will provide equity for this proposed rehab as both have expressed an interest and have participated on prior tax credit developments with the developer.
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) 65,000 20,000 Other Non-basis Expense (specify) Soft Cost Contingency Other Non-basis Expense (specify) 8,800 154,800 30,000 10,000 2,200 33,304 10,000 750 1,000 27,500 114,754 50,000 100,000 537,615 12,615 50,000 100,000 525,000 10,000 30,000 10,000 18,500 2,500 3,500 5,500 8,000 4,200 18,500 2,500 3,500 5,500 8,000 4,200 195,000 159,900 56,498 225,992 186,443 40,000 20,000 30,000 3,699,196 7,800 32,000 64,000 7,800 32,000 64,000 195,000 159,900 56,498 225,992 186,443 40,000 20,000 30,000 TOTAL COST 315,363 85,000 225,000 2,160,000 Eligible Basis 30% PV 70% PV 315,363 85,000 225,000 2,160,000
43 Rent-up Expense
SUBTOTAL (lines 38 through 45) 46 Rent up Reserve 47 Operating Reserve 48 49 Other Reserve (specify) Subsidy Deficit Reserve Other Reserve (specify) Initial Replacement Reserve
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
0 4,582,811 98.00% 4,491,154 5,742,074 447,451 472,808 425,000 416,500 175,000 5,244,400 425,000 416,500 327,978 98% 321,418 100.00% 321,418 3.45 11,088 12,053 4,254,833 98% 4,169,736 130.00% 5,420,656 8.05 436,362 460,755
Comments: In an effort to reduce the likelihood of a possible conflict between the eligibility requirements for HUD Section 8 and IRS Section 42 regs; the developer has elected to apply for tax credits on 98% of the units, rather than 100%. HUD Section 8 regulations allow for occupancy of households up to 80% of median income. The deems it advisable to set-aside one unit in the unlikely event that an applicant with income exceeding 60% of median income might qualify for section 8 assistance at some point in the future. At current rents, a one person household at 61% of median income might qualify for assistance on a one bedroom unit. A two person household and a three person household at 61% of median income would not receive asssitance for a two/three bedroom unit in that 30% of the household income would exceed the rent for those units. Total Replacement Cost per unit: Federal Tax Credits (line 62) per unit: 94,777 9,456
Vinyl Shutters, Vinyl clad insulated windows and Full view tempered glass storm doors.
Have you built other tax credit developments that use the same building design as this project? No If yes, please provide name and address:
Site Amenities: Furnished Community Center/Building with Kitchenette, Computer Lab, Management and Maintenance offices, Fenced Playground and Tot Lot, Picnic shelter with grill and other recreational amenities.
Onsite Activities: Community Center is planned with part-time service coordinator to link programs available in the community for the residents. Particular emphasis to be placed on programs for children, including, but not limited to an After School/Summer program for children. A computer lab to be installed in the Community Center to allow residents to access the internet and to provide the necessary tools for computer related training and educational courses if available in the community. Landscaping Plans: Existing lawns are mature but landscaping at the site is minimal. Plans include extensive foundation landscaping as well as numerous flowering trees throughout the property.
Interior Apartment Amenities: 13 seer Energy Efficient Heat Pumps to provide for central heating and air conditioning of the units is planned. Other interior amenities include stove with self-cleaning oven, frost-free refrigerator with ice-maker, dishwasher, disposal, carpet/vinyl flooring and storm doors
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.
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 surrounding development contains mature single family dwellings with a few light commercial/indistrial facilities nearby. North Dudley Street borders the north side of the property followed by vacant land. The area to the south of the property includes a manufactured home park and Stewart's Creek II Apartments. South Front Street is to the east of the property followed by single family residences. The area to the west of the property contains Matthews Street and Stewart's Creek II Apartments. A railroad tract runs parallel, but not continguous to the southern border of the property and adjacent with the eastern border along North Front Street. The activity from railroad cars using the tracks creates some noise at the property but such activity has not prevented the property from enjoying nearly full capacity from an occupancy standpoint over the years. Power transimission lines are located across the street from West Dudley Street which runs parallel to the northern side of the property but are not believed to have any impact to the residents due to their distance from the site. The Town of Warsaw has a City maintenance facilty within a few blocks of the property. In that traffic from such facility travels in the opposite direction from Stewart's Creek I Apartments, the maintenance facilty has no negative impact upon the property. 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 property is bordered by public streets on the north and east side of the property with public streets leading directly in to the south and west sides of the site. Adequate traffic controls exist in the neighborhood in that the nearby streets are typically handle light traffice throughout the residential area. When a train is in the area, it can temporarily block traffic on one of the adjoining roads but this does not impede the free flow of traffic in that multiple points of ingress and egress exist at the property. The property is not a burden to public facilities. The buildings and project signs are visible from the public streets servicing the neighborhood. The Town of Warsaw does not have a mass transit system. 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). The property contains a drainage ditch which runs parallel to the eastern side of the property along North Front Street. The ditch is overgrown with vegetation which prevents the adequate flow of stormwater. The overgrowth in the ditch has caused some flooding on the property. Proposed plans to rehabilitate the property include cleaning/clearing any obstructions from the drainage ditch to prevent any future flooding problems. No other on-site negative features or physical features exist.
Similarity of scale and aesthetics/architecture between project and surroundings. Stewart's Creek I Apartments is very similar in architecture to Stewart's Creek II Apartments which is adjacent to the site. Though the property contains multifamily buildings, the one-story design is
aesthetically similar to the other single family residences within the neighborhood
For each applicable neighborhood feature, enter distance from project in miles. 1 1 .5 .5 .5 Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools 10 10 .5 .5 Community/Senior Center Hospital Pharmacy Basic Health Care Medical Offices Bank/Credit Union Restaurants Professional Services Movie Theater .5 .5 .3 Video Rental Public Safety (Fire/Police) Post Office
Public Transportation Stop .3 .25 .5 .3 .5 .25 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools Other facilities or services: 1 .3
Development Team
Provide contact information for development team members below: Management Agent Company: Community Management Corporation Address: City: Phone P.O. Box 25168 Winston-Salem (336)765-0424 State: NC Zip: 27114-5168 Email: deagan@cmc-nc.com Last: Eagan
Ross/Deckard Architects, PA 3200 Atlantic Avenue, Suite 110 Raleigh (919)875-0001 State: NC Zip: 27604 Email: jr@rossdeckardarchitects.com Last: Ross
Blanco, Tackabery, Combs & Matamoros 110 South Stratford Road Winston-Salem (336)293-9013 State: NC Zip: 27104 Email: ram@btcmlaw.com Last: Matamoros
Raymond James Tax Credit Fund 880 Carillion Parkway St. Petersburg (727)567-8455 State: FL Zip: 33716 Email: craig.descalzi@raymondjames.c Last: Descalzi
Consultant/Application Preparer (if different from developer) Company: Address: City: Phone Contact Name: First: State: Email: Last: Zip:
Identity of Interest? General Contractor Company: Mutual Builders, Inc. Address: City: Phone P.O. Box 270 Smithfield (919)934-0882 State: NC Zip: 27577 Email: millard.stallings@mutualbuilders Last: Stallings
3,400 59,188
7,200 8,000
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): Training and Travel 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 7,500 60 1,200 5,200
45,760 12,000 800 500 700 14,000 17,500 17,500 226,068 167,568 50 3,351
226,068 46,013
46,013
* 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: Low Income County: At least forty percent (40%) of qualified units will be affordable to households with incomes at or below fifty percent (50%) of county median income. At least forty percent (40%) 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.