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

Project Description
Project Name: Oak Park Address: City: 51 Oak Park Drive Four Oaks County: Johnston Zip: 27524 Block Group: 3

Census Tract: 0412

Is project in Qualified Census Tract or Difficult to Develop Area? No Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: Town of Four Oaks Last: Parker Title: Mayor PO Box 878 Four Oaks ( )934-0155 Zip: 27524

Jurisdiction CEO Name: First: Linwood

Site Latitude: Site Longitude:

35.4486 -78.4377

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? 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: Family Will the project be receiving project based federal rental assistance? Yes If yes, provide the subsidy source: RD and number of units: 20 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:

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: Pendergraph Development, LLC PO Box 19691 Raleigh First: Frankie (919)755-0558 (919)861-6028 (919)754-8663 mhernandez@thepencos.com State: NC Zip: 27619 Last: Pendergraph Title:

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

Site Description
Total Site Acreage: 3.65 Total Buildable Acreage: 3.65 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? Yes If yes: (a) Briefly describe the situation: Due to the scope of work being complete, we do not anticipate having to displace any residents except for maybe one night. We will offer residents a night in the hotel if necessary and cover their meals during the time they will be away from their home. The general contractor will be made aware of the possible overnight displacement and this will be handeled within their contract.

(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)? 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: 12/1/2007 (D) Enter Purchase Price: 970,000

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? No If yes, describe below:

Ownership Entity
Owner Name: Oak Park, LLC Address: City: PO Box 19691 Raleigh State: NC Zip: 27619 (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: To Be Formed Is the applicant requesting that the Agency treat the application as Non-Profit sponsored? Is the applicant requesting that the Agency treat the application as CHDO sponsored?

No No

List all general partners, members,and principals. Specify nonprofit corporate general partners or members. Click [Add] to add additional partners, members, and principals.

Org:

FWP Oak Park, LLC Last Name: Pendergraph Function: Managing Member

First Name: Frankie Address: City: Phone: EMail: PO Box 19691 Raleigh (919)755-0558

State: NC

Zip: 27619

Fax: (919)754-8663 Nonprofit: No

fpendergraph@thepencos.com

Unit Mix
The Median Income for Johnston county is $71,600. Low Income Units Type Gdn Apt Gdn Apt Twn Hse Twn Hse Total # BRs Net Sq.Ft. # Units 1 2 2 3 644 852 850 1064 8 2 16 4 # Units 0 2 0 0 Monthly Rent 417 449 449 465 Electric Utility Allowance 110 121 121 142 Gas Mandatory Serv. Fees 0 0 0 0 Other Trash **Total Housing Exp. 527 570 570 607

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............... 30 2 13278 30 Gross Monthly Rental Income 13278

Units 2

Proposed number of residential buildings: 7 Project Includes:

Maximum number of stories in buildings: 2

Separate community building - Sq. Ft. (Floor Area): Community space within residential bulding(s) - Sq. Ft. (Floor Area): 260 Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 42,850

Total Net Sq. Ft. (All Heated Areas): 39,993

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 4 4 9 9 2 2

Units targeted at 40 targeted at 60 targeted at 40 targeted at 60 targeted at 40 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:

30

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

314,000

0.00

30

30

10,466

750,000

1.00

50

50

19,067

219,218

30

30

1,195,716

10,546 119

2,489,599

* "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))

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 Lender Inspection Fee Other Basis Expense (specify) Other Non-basis Expense (specify) Other Non-basis Expense (specify) 344,920 5,000 29,920 315,000 5,000 2,000 16,500 76,915 15,000 15,000 8,000 100,783 35,000 1,000 2,200 12,715 7,500 7,500 25,000 1,000 12,000 6,500 11,500 4,200 12,000 6,500 11,500 4,200 10,000 10,000 40,000 44,400 15,688 47,064 50,829 40,000 10,000 5,000 1,722,981 2,000 6,295 40,288 2,000 6,295 40,288 40,000 44,400 15,688 47,064 50,829 40,000 10,000 5,000 100,000 600,000 100,000 600,000 TOTAL COST 770,000 Eligible Basis 30% PV 70% PV 748,000

43 Rent-up Expense

SUBTOTAL (lines 38 through 45) 46 Rent up Reserve 47 Operating Reserve 48 49 Current Reserve Account Lease Up Fee

364,920 9,000

15,000 2,289,599 777,920 1,414,264

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:

0 2,192,184 100.00% 2,192,184 2,192,184 140,686 149,384 240,000 149,384 200,000 2,489,599 149,384 29,172 120,212 777,920 100% 777,920 100.00% 777,920 3.45 26,838 29,172 1,414,264 100% 1,414,264 100.00% 1,414,264 8.05 113,848 120,212

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

75,520 4,979

Market Study Information

Please provide a detailed description of the proposed project: Oak Park Apartments is a thirty unit, one and two bedroom, family development located approximately 0.5 mile from downtown Four Oaks. The property was constructed in 1982. The current development is financed utilizing loan funds and rental assistance from Rural Development, with 20 units having rental assistance. The site consists of 7 residential buildings, with one building having an attached management office. The one story garden flats and two story townhouse style buildings consist of wood framed, brick veneer and wood siding structures with pitched shingle covered roof systems. The exterior is comprised of brick veneer and hard panel wood siding with painted wood trim, soffit and fascia. It is our desire to improve the overall physical and financial condition of this property, and improve the quality of life of the current and future residents. A few of the much needed improvements are as follows: improve the connectivity of sidewalks for handicap accessible routes to all buildings and amenities, add much needed recreational and picnic areas for children and adults, replace aged and deteriorated roof coverings, install new energy efficient vinyl windows, replace old and damaged appliances, replace old and inefficient HVAC units and air handlers, install new water heaters, repair and refinish cabinets and countertops, replace carpet and vinyl flooring, repair plumbing and electrical problems, repaint walls and ceilings, repair damaged gypsum wallboard, etc The existing management office will be renovated and expanded to incorporate a new ADA compliant restroom. This new facility will be constructed in compliance with all local codes and all applicable accessibility requirements. You will note a more descriptive needs assessment in the work write-up attached to this application. 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

See attached work write-up and original plans for a detailed description of the scope of work to be completed.

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: Upon completion of the redevelopment of Oak Park the property will have a variety of site amenities for children and adults. These amenities will include a covered picnics shelter with tables and grills, a playground with timber enclosure and mulch, three sitting locations with benches, new trash/dumpster enclosures and a new mail kiosk. All amenities will me made ADA compliant.

Onsite Activities: A variety of activities and services will be offered to residents such as tenant associations, a newsletter and various services related activities that will be provided by the property management company.

Landscaping Plans: The current landscaping is original to the property, which was developed and constructed in 1982. All overgrown shrubs will be removed and new foundation and perimeter plantings will be installed. All plant beds will be well defined and heavily mulched. Upon completion the development will be extensively landscaped and an irrigation system will be installed in for high visibility areas. Present areas that lack positive water flow will be re-graded to eliminate standing water. A new development sign will be installed at the property entrance, with lighting and new landscaping.

Interior Apartment Amenities: All apartment units will include carpet in the living room and bedrooms, VCT flooring in the kitchen, bathrooms, entry and laundry area, satin finish wall paint, new vinyl mini-blinds and a fire extinguisher in every kitchen. Each unit will also have a range, range hood, range queen extinguishing device, and a refrigerator.

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. Oak Park Apartments is located in an area consisting primarily of single family residential homes. The development is located at the intersection of Old School Road, Parker Street and Austin Avenue, just 0.8 mile from US Hwy 301 which is a main thoroughfare for the Town and Johnston County, and within two miles of Interstate 95. The property is convenient to the downtown retail center and to Highway 301 business corridor. The Town of Four Oaks is experiencing considerable growth, both commercial and residential, as evident by the new homes constructed within the neighborhood Oak Park is located and along the Highway 301 corridor. New retail strip centers and a medical office have been developed in the past two to three years. Four Oaks Bank has established its corporate operations center in Four Oaks and has committed to the future development of the Town. We have attached a site map showing various businesses, restaurants, services and other amenities within a one to two mile radius of the property. 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 site is suitable for the current development. There are no physical barriers from the surrounding areas. The area surrounding the development is primarily new single family residential. There are no commercial or industrial related uses surrounding the property nor are there any sources of excessive noise or environmental concern. 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 development is located on a state maintained secondary road and two paved town maintained streets, which is adequate to accommodate the traffic generated by the development. The property has two ingress/egress points onto paved roads. No improvements will be necessary to the current road 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). There is no degree of on-site negative features or physical barriers that would impede the rehabilitation of this property or adversely affect current or future residents. The current parking is adequate for the development size.

Similarity of scale and aesthetics/architecture between project and surroundings. The development is located in a residential area and is similar in scale to the surrounding neighborhood, and architecturally compatible. Other structures in the area are constructed of like materials and are similar or complimentary in architectural style.

For each applicable neighborhood feature, enter distance from project in miles. 1.1 Grocery Store 1.4 Community/Senior Center

1.3 0.4 0.4 0.5

Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools

10 1.1 5 1.3

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 1.0 0.9 0.7 0.6 0.9 0.3 7 1.0 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools 0.8 0.8 7 1.3 0.8 0.8

Other facilities or services: Four Oaks is a small community with all conveniences within one to two miles of the property. The downtown district is less than one mile from the site. A location map, with accompanying photographs, has been attached that shows the items listed above, additional features and services, with actual names of business to aid in location of them.

Development Team
Provide contact information for development team members below: Management Agent Company: Pendergraph Management, LLC Address: City: Phone PO Box 19691 Raleigh (919)755-0558 State: NC Zip: 27619 Email: fpendergraph@thepencos.com Last: Pendergraph

Contact Name: First: Frankie

Architect Company: Address: City: Phone

Ross Deckard Architects 3200 Atlantic Avenue, Suite 110 Raleigh (919)875-0001 State: NC Zip: 27604 Email: jr@rossdeckardarchitects.com Last: Ross

Contact Name: First: James

Attorney Company: Address: City: Phone

TBD TBD TBD ( )999-9999 State: NC Zip: 99999 Email: Last:

Contact Name: First:

Investor Company: Address: City: Phone

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

Contact Name: First: Craig

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

Identity of Interest? General Contractor Company: Caliber Builders, LLC Address: City: Phone PO Box 19691 Raleigh (919)755-0558 State: NC Zip: 27619 Email: fpendergraph@thepencos.com Last: Pendergraph

Contact Name: First: Frankie

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): Computer Software, Training, Office Equipment 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) 21,200 13,000 3,200 1,000 2,000 6,000 9,000 1,000 1,000 600 600 900 4,800 1,500 500 3,300 17,122

1,500 15,288 1,500

2,375 43,085

3,000 900

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 7,500 250 500 3,000

27,950

0 22,500 22,500 119,535 84,035 30 2,801

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): 3,100 159,336

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)

162,436 11,370 151,066

119,535 31,531

29,533

1,998 1.068

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 1 151,066 119,535 29,533 1,998 1.068 11 203,020 176,941 29,533 -3,454 0.883 2 155,598 124,316 29,533 1,749 1.059 12 209,111 184,019 29,533 -4,441 0.85 3 160,266 129,289 29,533 1,444 1.049 13 215,384 191,380 29,533 -5,529 0.813 4 165,074 134,461 29,533 1,080 1.037 14 221,846 199,035 29,533 -6,722 0.772 5 170,026 139,839 29,533 654 1.022 15 228,501 206,996 29,533 -8,028 0.728 6 175,127 145,433 29,533 161 1.005 16 235,356 215,276 29,533 -9,453 0.68 7 180,381 151,250 29,533 -402 0.986 17 242,417 223,887 29,533 -11,003 0.627 8 185,792 157,300 29,533 -1,041 0.965 18 249,690 232,842 29,533 -12,685 0.57 9 191,366 163,592 29,533 -1,759 0.94 19 257,181 242,156 29,533 -14,508 0.509 10 197,107 170,136 29,533 -2,562 0.913 20 264,896 251,842 29,533 -16,479 0.442

* 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)