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

Project Name and Location


Project Name: Mayfield Terrace Address: City: 2501 Pitts Drive Charlotte County: Mecklenburg Zip: 28216 Block Group:

Census Tract: 004600

Is project in Qualified Census Tract & 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:

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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: 29

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.) Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units Remarks: This project will include 5% Type A Accessible Units as required by building codes plus an additional 5% so called "Super A" units with roll-in showers and other such features as described on Page 12 of the QAP. See typical floor plans of "Super A" units in Exhibit L. See also Exhibit R of this submission for plans to provide services to the disabled.

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Applicant Information
Applicant Name: Address: City: Contact: Telephone: Crosland, Inc. 227 West Trade Street, Suite 800 Charlotte First: Roger (704)561-5260 State: NC Zip: 28202 Last: Lewis Title: VP Development

Alt Phone:

(704)529-1166

Fax:

(704)525-3562

Email Address:

rlewis@crosland.com

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Site Description
Total Site Acreage: 7.37 Total Buildable Acreage: 6.47 If buildable acreage is less than total acreage, please explain: The non-buildable area on the site is comprised of about 1.49 acres located in a Charlotte Water Department Easement and a Charlotte Storm Drainage Easement. There is ample area on the site out of the flood plain for the proposed seven buildings and associated parking. Remaining greenspace will provide ample play spaces.

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: The existing, functionally obsolete buildings on the site will be demolished. The units are small, and storage, bathrooms and kitchens are inadequate for 21st century living standards. The units are not air conditioned. There are no washer and dryer hookups. There are no on-site assembly or administrative spaces. The site is under-utilized with only 46 units. The proposed redevelopment of 81 units is consistent with its zoning capacity of 88 units.

Are existing buildings on the site currently occupied? Yes If yes: (a) Briefly describe the situation: The 46 units to be demolished are about 90% occupied. No units are subsidized. The property was acquired in 1976 by the Housing Authority of the City of Charlotte (CHA) as an investment. No public housing tenants currently live on the property. Instead, the property operates and can only operate as a low rent property because of its old and functionally obsolete units. In recent years, CHA has improved the building exteriors with paint, new vinyl siding, and new roof shingles. A casual observer might conclude that the property is in good shape and should continue to be operated in its current condition without the benefit of this proposed redevelopment. However, as noted above, the propertys interiors are not in good condition, and without this proposed redevelopment, the property will continue, at best, as an underutilized, functionally obsolete property in need of considerable capital investment just to maintain it in its present position in the marketplace. (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:

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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 vaild option/contract to purchase the property? Yes (b) Does an identity of interest (direct or indirect) exist between the owner/principal or ownership entity with the option/contract for purchase of the property and the seller of the property? Yes If yes, specify the relationship: The Housing Authority of the City of Charlotte has owned the property since 1976. They have agreed to lease the property for the proposed Mayfield Terrace revitalization project for a term of 40 years. The option for this long-term lease was submitted to the NCHFA with the Preliminary Tax Credit Application in January 2004. The lease will be in the amount of $1,000 per year. The Housing Authority will be a member of the LLC entity that will own the revitalized Mayfield Terrace.

Purchase Price:

(c) Enter the current expiration date of the option/contract to purchase: 12/31/2004 (D) Enter Purchase Price: 0

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Zoning
Present zoning classification of the site: R-12-MF 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: The City of Charlotte reviews all proposals for affordable housing with a public hearing and City Council approval prior to endorsing these projects. These practices by Charlotte have been in place for the past several years. Charlotte's approval is expected about June 1, 2004, and will be directly conveyed at that time by City Officials to the NCFHA per special arrangement between the Charlotte staff and the NCHFA. The present 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:

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Ownership Entity
Owner Name: Mayfield Terrace, LLC Address: City: c/o Crosland, Inc. 227 West Trade Street, Suite 800 Charlotte State: NC Zip: 28202 (If assigned) 56-0192763 (If Not Assigned)

Federal Tax ID Number of Ownership Entity: Federal Tax ID Number of Managing GP or Member:

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?

Yes 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, Inc.-For Profit Principal Developer, Managing Member of LLC which will own the project, Builder and Property Manager Last Name: Lewis Function: Managing Member

First Name: Roger Address: City: Phone: EMail:

227 West Trade Street, Suite 800 Charlotte (704)561-5260 rlewis@crosland.com State: NC Zip: 28202

Fax: (704)525-3562 Nonprofit: No TaxID 56-0192763

Org:

Bradsher Properties-For Profit Co-Developer Last Name: Bradsher Function: Member

First Name: Jeff Address: City: Phone: EMail:

312 West Trade Street, Suite 301 Charlotte (704)377-9965 jbprops@bellsouth.net State: NC Zip: 28202

Fax: (704)377-0115 Nonprofit: No TaxID 56-2054680

Org:

The Housing Authority of the City of Charlotte-Non-Profit Co-Developer, Non-Managing Member of owning LLC, Service Support Provider, HOPE VI Funds Lender Last Name: Woodyard Function: Member

First Name: Charles Address: City: Phone: EMail: 1301 South Boulevard Charlotte (704)336-8349

State: NC

Zip: 28203

Fax: (704)353-1232 Nonprofit: Yes TaxID 56-6000560

cwoodyard@cha-nc.org

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Unit Mix
The Median Income for Mecklenburg county is $64,100. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Twn Hse Gdn Apt Gdn Apt Gdn Apt Twn Hse Gdn Apt Gdn Apt Gdn Apt Twn Hse Total # BRs Net Sq.Ft. # Units 2 2 3 3 2 2 3 3 2 2 3 3 875 1004 1191 1416 875 1004 1191 1416 875 1004 1191 1416 9 7 12 1 1 1 1 1 14 12 17 5 # Units 2 0 2 0 0 0 0 0 2 2 0 2 Monthly Rent 246 246 246 246 465 485 525 560 565 585 625 660 Electric Utility Allowance 64 64 83 93 64 64 83 93 64 64 83 93 Gas Other Mandatory Serv. Fees **Total Housing Exp. 310 310 329 339 529 549 608 653 629 649 708 753

Utilites 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.

Utilites 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.

Utilites included in rents:

Water/Sewer

Electric

Statistics All Units Low Income....... Market Rate....... Totals............... 81 10 38024 81 Gross Monthly Rental Income 38024

Units 10

Proposed number of residential buildings: 7 Project Includes:

Maximum number of stories in buildings: 3

Separate community building - Sq. Ft. (Floor Area): Community space within residential bulding(s) - Sq. Ft. (Floor Area): 2,464

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Elevators - Number of Elevators: Square Footage Information Gross Floor Square Footage: 95,839

Total Net Sq. Ft. (All Heated Areas): 89,186

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.

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

# BRs 2 3 2 3 2 3 16 13 2 2 26 22

Units targeted at 30 targeted at 30 targeted at 40 targeted at 40 targeted at 60 targeted at 60

% percent of median income. percent of median income. percent of median income. percent of median income. percent of median income. percent of median income.

Total Low Income Units:

81

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

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

Source Bank Loan RPP Loan Local Gov. Loan - Specify: City of Charlotte Funds RD 515 Loan RD 538 Loan - Specify: AHP Loan Other Loan 1 - Specify: HOPE VI Loans 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

1,214,548

2.00

20

20

73,730

1,209,181

5.34

728,855 0 4,496,441

30

30

7,649,025

* "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. 78 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) 5.34 entered on Funding Sources as a placeholder for AFR (will not accept "AFR" in RPM) HOPE VI funds are available and committed to this project from previous HOPE VI awards to the Housing Authority of the City of Charlotte for their Arbor Glen and Park at Oaklawn revitalizations. HOPE VI Funds will be loaned to the project at the AFR, with interest accruing, with no periodic debt service, and with a term of 40 years or longer. This project is one of several follow-on projects which will collectively bring the public housing inventory back to its level prior to the demolition of Dalton Village and Fairview Homes, which were succeeded by Arbor Glen and The Park at Oaklawn, respectively. This project is in an area considered a priority area for affordable housing by the City of Charlotte.

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

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Other Loan 1 - HOPE VI Loans 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

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Development Costs
Item Cost Element 1 Purchase of Buildings (Rehab) 2 Demolition 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 12 Architect's Fee - Inspection SUBTOTAL (lines 1 through 12) 13 Construction Insurance (prorate) 14 Construction Loan Orig. Fee (prorate) 15 Construction Loan Interest (prorate) 16 Construction Loan Credit Enhancement (prorate) 17 Construction Period Taxes (prorate) 18 Water, Sewer and Impact Fees 19 Survey 20 Property Appraisal 21 Environmental Report 22 Market Study 23 Bond Costs (specify) 24 Cost of Issuance 25 Placement Fee 26 Permanent Loan Origination Fee 27 Permanent Loan Credit Enhancement 28 Title and Recording SUBTOTAL (lines 13 through 28) 29 Real Estate Attorney 30 Other Attorney's Fees 31 Tax Credit App Fees 32 Cost Certification Fees 33 Tax Opinion 34 Organizational (Partnership) 35 Tax Credit Monitoring Fee SUBTOTAL (lines 29 through 35) 36 Furnishings and Equipment 37 Relocation Expenses 38 Developer's Fee (max 15% lines 2-36, less 8 & 9) 39 40 42 43 Other Expense Other Expense Other Non-basis Expense (specify) Other Non-basis Expense (specify) SUBTOTAL (lines 36 through 43) 44 Rent up Reserve TOTAL COST 0 377,217 992,250 0 3,770,314 0 308,387 108,963 326,890 176,521 128,000 32,000 6,220,542 30,000 12,500 37,813 0 15,000 0 35,000 10,000 1,250 8,530 0 0 0 0 0 12,000 162,093 1,000 73,000 39,980 14,000 1,000 0 42,525 171,505 0 276,000 545,000 0 0 52,650 0 0 873,650 24,300 0 276,000 545,000 0 0 1,000 61,000 39,980 14,000 24,000 10,000 30,250 0 12,000 0 35,000 10,000 1,250 8,530 Eligible Basis 30% PV 70% PV 0 377,217 992,250 0 3,770,313 0 308,387 108,963 326,890 176,521 128,000 32,000

41 Rent-up Expenses

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45 Operating Reserve 46 47 Other Reserve (specify) Other Reserve (specify)

196,935 0 0 7,649,025 0 7,288,551

48 DEVELOPMENT COST (lines 1-47) 49 Less Federal Financing 50 Less Disproportionate Standard 51 Less Nonqualified Nonrecourse Financing 52 Less Historic Tax Credit (residential) 53 TOTAL ELIGIBLE BASIS 54 Applicable Fraction (percentage of LI Units) 55 Basis Before Boost 56 Boost for QCT/DDA (if applicable, enter 130%) 57 TOTAL QUALIFIED BASIS 58 Tax Credit Rate 59 Federal Tax Credits at Estimated Rate 60 Federal Tax Credits at 8.5% or 3.75% 61 Federal Tax Credits Requested 62 Land Cost 63 TOTAL REPLACEMENT COST

0 7,288,551 100.00% 7,288,551 7,288,551 576,524 619,526 0 0 7,649,025 0 100% 0 100.00% 0 0.00% 0 0 7,288,551 100% 7,288,551 100.00% 7,288,551 7.91% 576,524 619,526

Comments: (Costs Comment) The architect fees, legal fees, interest expenses and other costs which are not expected to be included in the project's construction contract are typical of our experience with comparable costs for similar projects in our area. For comments on hard construction costs, see the Remarks Box which follows the Schedule of Costs-Construction on or about Page 29 of this application.

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Market Study Information


Please provide a detailed description of the proposed project: The proposed redeveloped Mayfield Terrace will involve the relocation of the present tenants, the demolition of the current units on site and the rebuilding of an 81-unit, 9% tax credit project serving 29 public housing households, 4 households earning up to 40% of median income, and 48 households earning up to 60% of median income. The 2004 proposal represents an expansion and improvement of the 2003 proposal, in that both the large and small parcels which currently make up Mayfield Terrace, and which are separated by Pitts Drive, will both be included in the redevelopment. Limits contained in the 2003 QAP precluded the incorporation of the small site, which currently contains only 9 of Mayfields existing 46 units, but the 2004 QAP easily accommodates its inclusion. Making the small site a part of the 2004 proposal avoids the problem of having 9 obsolete units directly across the street from the 74 proposed redeveloped units on the small site. Under the 2004 scenario, the redevelopment will utilize HOPE VI capital funds, loaned to the project by the Housing Authority, City of Charlotte Housing Trust Fund funds, and US tax credit investment and a NC State loan. Mayfield Terrace will include 74 two and three bedroom garden apartments and 7 three bedroom townhouses. The project consists of a large site with frontage on Pitts Drive, which will contain three 3-story buildings of 20 units each, and one 2-story building containing 14 units and the administrative and activity spaces, and a small site directly across Pitts Drive, which will consist of two 2-story buildings, with one of the buildings containing 4 townhome units, and the other containing 3 townhome units. The large site will contain most of the site amenities, including a large playground area, and other amenities listed below and in Exhibit L. The small site will contain a picnic and gathering area. In order to avoid the necessity of small children crossing the street to the large site to access a playground, the small site will also have a small playground area. 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

Construction features include: factory framing panels and trusses for framing consistency; architectural roof shingles for attractiveness and longevity; attractive roof massing and variety; knock down interior ceilings; gypcrete between floors for sound attenuation; heavy duty kitchen and bath cabinets; fire sprinklers throughout; and low maintenance PVC balcony railings. Exteriors will also include Hardi-plank siding, large windows, and brick at foundations and in select siding areas. Any retaining walls will be split face block. See also the comprehensive list of building characteristics, unit features and amenities in Exhibit L.

Have you built other tax credit developments that use the same building design as this project? Yes If yes, please provide name and address: The 20-unit buildings are improvements of the 20-unit buildings at Crosland's Arbor Glen (winner of the NCHFA's 2003 Housing the Carolinas Award). The 6- and 12-unit buildings are improvements of the similar buildings at The Park at Oaklawn, another Crosland tax credit project in Charlotte. In design, fits, finishes and specifications, these buildings will be equivalent to contemporary "A" grade market-rate apartment properties. Arbor Glen is located near the intersection of Clanton Road and West Boulevard at 2305 Farmer Street. The Park at Oaklawn is located near the intersection of Statesville Road and Oaklawn Boulevard at 1215 Rising Oak Drive.

Site Amenities (check all that apply): Community Bldg - Sq Ft: 2,464 Laundry Rm Game/Craft Rm Chapel/Prayer Rm Irrigated Lawns Screened Porch Exercise Rm Picnic Area Security Gate Community Room - Sq Ft: 1,600 Resident Computer Center TV Rm Onsite Leasing Office Car Care Area Garages - Number: Exam Rm Beauty Salon Onsite Mgr Storage Units Reading Rm/Library Vending Rm Onsite Maint. Person Gazebos

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Walking Trails Pool

Garden Spots Fitness Stations

Basketball/Tennis Court Horseshoe Pit

Playground Shuffleboard

Ball Field Covered Drive Thru

Onsite Activities: The Charlotte Housing Authority will operate a resident support program for the encouragement and support of residents' transition to full economic independence, called the Family Self Sufficiency Program. The FSS Program includes classes in life management, mandatory savings program and support for continuing education. The goal is for residents to have the means to graduate from assisted housing within five years and move to a condition of full economic independence, thereby making their former dwelling at the project available for another household. This FSS Program by the Charlotte Housing Authority has been in operation at all the Housing Authority projects financed with HOPE VI funds. The program has been well-proven over several years of operation. Landscaping Plans: We have budgeted $1,250 per unit for landscaping, which provides the resources for many shade trees as well as extensive shrubs and grassed areas. This is the same budget as at recent marketrate properties by Crosland and will result in a polished, well-landscaped appearance that will become increasingly shady and park-like over the years. Illustrations of the impact these budgets will have in several years can be seen at two of Crosland's Charlotte-area market rate properties, which had similar landscaping budgets: Birkdale Apartments (1998) located off Sam Furr Road in Huntersville at 16501 Stonemason Drive and Crestmont Apartments (1999) located on Ballantyne Commons Parkway in South Charlotte at 9200 Otter Creek. (Note-Arbor Glen and The Park at Oaklawn had similar budgets also, but the plantings at these two projects are still too new to show the long-term benefits of maturing landscaping with this commitment to long-term curb appeal.) Interior Apartment Amenities (check all that apply): Range W/D Hookups Hood Mini-blinds Dishwasher Pantry Disposal Ceiling fans Refrigerator (frost free) Walk-in closets Features in all units also include: wall to wall carpeting; ceiling fans with lights in Livings Rooms and Bedrooms; dishwashers; high efficiency heat pumps; 6 panel metal entry doors with door knockers and peep holes; intrusion alarms; smoke detectors; carbon monoxide detectors; Range Queen cannister fire extinguishers Other at range Storage interior/exterior

Flooring:

Carpet

Vinyl

Wood

Wood Parquet

Ceramic Tile

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Flooring:

Carpet

Vinyl Central Air

Wood Gas Heat

Wood Parquet Heat Pump

Ceramic Tile Electric Pump

hoods; washer/dryer hookups; microwave ovens; lockable outdoor storage closets. Many unit plans include walk-in closets in select locations, kitchen pantry closets or cabinets, and coat closets. Multiple shelves in select closet locations maximize storage. See also the comprehensive list of building characteristics, unit features and amenities in Exhibit Other L.

Heating/Cooling:

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.

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Applicant's Site Evaluation


Briefly describe your site in each of the following categories: NEIGHBORHOOD CHARACTERISTICS Physical condition of buildings and improvements. Trend and direction of real estate development relative to the project. Area economic health (degree of decline or investment). Concentration of affordable housing. The 2004 application for the redevelopment of Mayfield Terrace Apartment represents a substantial improvement over 2003s unsuccessful application by this applicant. The improvement results primarily from improvements to the surrounding neighborhood of Washington Heights, which have made it a significantly more desirable area for a tax credit project than in 2003. These improvements include: 1) Completion of roadway and sidewalk infrastructure in the neighborhood. 2) City commitment to implement additional infrastructure improvements in and around L.C. Owens Park 3) Expansion of the Mayfield Terrace redevelopment to include both the larger portion of the apartment community, which was the only site included in 2003, and the smaller portion, which was not a part of the 2003 application 4) Renovations to the convenience store at the corner of Beatties Ford Road and Tate Street, which was previously an eyesore 5) Options held by the applicant on several single family houses in Washington Heights, which are currently in poor condition and mostly inhabited by tenants, and which will be renovated and resold to owner-occupants Further details about the improved circumstances follow, or are contained in other sections of this application. The Mayfield Terrace Apartments location is part of the Washington Heights neighborhood, which was a trolley car suburb community established in the early 1900s and populated by middle-class African-American families. Through the middle and later decades of the last century, the neighborhood entered a long decline. However, it had several characteristics which made it worthy of the substantial revitalization efforts now underway here. First, the neighborhood is only approximately 2 miles from the center of Charlotte and its 85,000 plus jobs. The land use pattern here is consistently residential on the side streets with retailing, public transportation and other services concentrated on Beatties Ford Road, a north-south artery readily accessible to the neighborhood. The architecture of the houses is typical of modest-size early twentieth century frame houses in an urban context, which provides for interesting streetscapes and highly livable neighborhoods. There are no significant non-compatible land uses in the neighborhood. In summary, Washington Heights has the characteristics of a neighborhood suitable for revitalization, a neighborhood that with the appropriate community effort can be made highly livable again. That revitalization potential was recognized some years ago and is now being vigorously pursued with major commitments by a number of public and private institutions, including substantial public capital. Descriptions of these commitments follow. Perhaps the most significant planned investment in Washington Heights for purposes of this application is one that the applicant is in the process of making. Since applying for tax credits for the redevelopment of Mayfield Terrace in 2003, the applicant has secured binding options to purchase several existing single family homes surrounding Mayfield Terrace, and is pursuing more. Most of these homes are currently rented out by absentee landlords, and many are in significant disrepair. Separate from the funds proposed to be involved in the redevelopment of Mayfield Terrace, the applicant has identified resources that will allow for the production, through either rehabilitation or demolition and new construction, of significantly upgraded single family homes that will be sold to qualifying homebuyers. This strategy, which is described in more detail behind Tab H of this application, will provide even further support for an investment of tax credits in this rapidly improving community. The efforts of one of the Washington Heights most valuable assets, its highly active Neighborhood Association, have generated a reduction in crime and dramatically improved infrastructure for the community, as reported in an article in The Charlotte Observers about this neighborhood and other areas of Charlotte with rapidly increasing real estate values. The Association initiated the Washington Heights Neighborhood Plan, which brought neighborhood residents, local business owners, and City of Charlotte and Mecklenburg County officials and staff together to create both an exciting neighborhood vision and a concrete implementation strategy. The applicant has worked closely with the Neighborhood Association in its proposal to redevelop Mayfield Terrace, as is evidenced by several of the support letters contained in this application, particularly the letter from

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Mattie Marshall, the Neighborhood Associations President, which is located behind Tab I of this application. The Plan, adopted by Charlottes City Council in February, 2002, launched neighborhood infrastructure improvements by the City of Charlotte, including widened roadways, curb and gutter improvements, new sidewalks, and new cross-streets. The City also designated Washington Heights as one of only 8 Action Plan communities. This designation translates into a high concentration of City resources in the neighborhood, and City encouragement of private housing and other economic development activities. Since the 2003 Mayfield Terrace tax credit application, the Washington Heights infrastructure improvements, which, as described in a support letter from Charlotte City Councilman James Mitchell, Jr. attached behind Tab J of this application, represent a $1.6 million investment by the City, are substantially complete, including the following items: 3472 linear ft. of sidewalk 21,700 linear ft. of curb and gutter 7258 linear ft. of storm drainage 1240 sq. yards of driveway improvements 4195 tons of asphalt for road improvements $29,000 of new water and sewer lines $50,000 allocated for landscaping, pedestrian scale lighting and neighborhood signage Extending Redbud Street between Pitts Drive and Sanders Avenue Only minor items from this original infrastructure improvement plan, such as streetlights, landscaping and signage, have yet to be finalized. All of these improvements are now easily visible when driving through the neighborhood. One of Charlottes oldest and most reputable community development corporations, the Northwest Corridor Community Development Corporation, has completed the revitalization, through its ownership, upgrading and management, of Dundeen Courts, a 26-unit apartment complex, and its recent purchase of 10 neighborhood duplexes, which it has renovated and converted into 4bedroom single family homes. Both of these NWCCDC projects are located on Dundeen Street, one block north of Mayfield Terrace. NWCCDC plans to continue investing in the Washington Heights community and is actively pursuing other residential and commercial projects. NWCCDCs Executive Director, Terrell Blackmon, has also provided a support letter for the Mayfield Terrace redevelopment, which is located behind Tab K of this application. In addition, Habitat for Humanity has been highly active in Washington Heights. Habitat has constructed 10 homes over the past two years in the community, representing an overall investment of more than $750,000. With heavy input from the Washington Heights Neighborhood Association, Habitat created special upgraded exterior designs for its homes that are in keeping with the historic nature of the neighborhood. Habitat is actively pursuing additional opportunities to build homes in Washington Heights, as described in the support letter from Bert Green, Habitats Executive Director, which is attached behind Tab L of this application. Washington Heights also contains L.C. Owens Park, operated by the Charlotte-Mecklenburg Park and Recreation Department, which consists of 13 acres and is the beneficiary of recent upgrades including new basketball goals and landscaping. The Park will be further upgraded in many aspects through an additional $500,000 investment by the City to extend Onyx Street, through the Park, to connect with Estelle Street, as follows: Making use of existing City-owned right of way through LC Coleman Park Making the park more visible and accessible by allowing vehicles, bicycles and pedestrians through the park. Creating a safer environment for the residents at the end of Onyx Street and Estelle Street by eliminating a dead end road (the second such intitiative when you count the Redbud extension) Creating better vehicular ingress and egress around the Northwest School of the Arts and within the community. The street design will include an 8' planting strip, 6' sidewalk, pedestrian scale and street level lighting, large maturing trees, speed tables to slow traffic and access to the park on both sides. Redevelopment efforts in Washington Heights will be reinforced by similar activities throughout the Beatties Ford Road/West Trade Street corridor, pursuant to the Historic West End Urban Vision Plan. This dynamic plan, which was completed in early 2003, first lays out an analysis and recommendations for the portion of West Trade Street just outside uptown Charlotte just south of the Washington Heights neighborhood, and then does the same for all of the communities and neighborhoods along the corridor to the north, including Washington Heights, ending several miles outside of uptown at the Beatties Ford Road interchange of Interstate 85. The West End Plan is expected to catalyze many new residential and retail investments along the corridor. All these programs and initiatives are clearly working. The physical condition of Washington Heights

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is obviously transitioning forward. A visit to the neighborhood shows a number of new and renovated houses here, many within a block or two of Mayfield Terrace. The public is responding to these improvements a clear and quantifiable way. Home prices have risen throughout Washington Heights dramatically in the last several years, as has buyer interest. On January 5, 2003, The Charlotte Observer reported that Washington Heightss unique character, location and improving neighborhood conditions have resulted in nearly a 20% increase in recent existing home purchases in the neighborhood, in which the purchase prices exceeded the tax value of the homes by 50% or more. This improvement is substantially greater than nearly all of Charlottes neighborhoods, including some of the most elegant. To date, the Washington Heights community has not hosted a tax credit project. There is also no housing credit or project-based capital or rental assistance or HUD-supported public housing in the community. Mayfield Terrace is currently neither a public housing development, nor a tax credit or project-based affordable housing development. The applicant is confident that the redevelopment of Mayfield Terrace, which is the largest potential multi-family land use in Washington Heights, into a top-quality affordable apartment community, along with the applicants rehabilitation and construction of high-quality single family homes in the community, will support and accelerate the revitalization of the Washington Heights neighborhood and that the revitalized Mayfield Terrace will be supported by an attractive revitalized neighborhood. Suitability of surrounding development. Land use pattern is primarily residential (single and multifamily housing) with a balance of other uses (particularly retail and amenities). Amount and character of vacant, undeveloped land. Effect of industrial, large-scale institutional or other incompatible uses: wastewater treatment facilities, high traffic corridors, junkyards, prisions, 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). The Washington Heights neighborhood consists almost entirely of residential development, the majority of which is single-family. As mentioned elsewhere in this application, L.C. Owens Park sits on 13 acres in the neighborhood, and the only significant institutional land uses contained in the community are a church which is directly adjacent to Mayfield Terrace to the east, and the Northwest School of the Arts, a public magnet school within walking distance two blocks to the north of Mayfield Terrace along Beatties Ford Road. The developers of this project know the pastor of the adjacent church, who is supportive and enthusiastic of the development teams plans to revitalize the Mayfield Terrace site into a modern, mixed income, affordable community, as evidenced in his support letter, which is attached behind Tab M of this application. Several neighborhood-friendly businesses, including a pharmacy, a hair salon and a restaurant are located to the east of Mayfield Terrace on Beatties Ford Road. Because of bus service along Beatties Ford Road, access is easy for neighborhood residents who do not have cars to the City of Charlotte and such nearby amenities as a Food Lion grocery store, a public library, a substantial health care facility built and operated by Carolinas Healthcare System, a Mechanics & Farmers headquarters bank branch and a credit union. All of these amenities except the Charlotte Center City are approximately a mile or less from Mayfield Terrace. There are no vacant, undeveloped tracts in Washington Heights which consist of more than half of an acre of land. Most undeveloped tracts in the neighborhood, because of their small size, will only accommodate single family or very small multi-family improvements. Except for small lots directly adjacent to Beatties Ford Road, which is the nearest major thoroughfare to Historic Washington Heights and runs directly adjacent to the community to the east, nearly all of the zoning in the neighborhood is residential, the overwhelming majority of which is single-family allowing a maximum of 5 units per acre, and the most intensive of which is multi-family allowing a maximum of 12 units per acre. There are no incompatible land uses affecting the neighborhood SITE SUITABILITY Adequacy of street(s) and/or access road(s) serving the proposed project and traffic controls (lights, stop signs, turning lanes). Access to mass transit (if applicable). Beatties Ford Road, the neighborhoods major thoroughfare, runs in a northerly and southerly direction, and is located about two blocks directly to the east of the Mayfield Terrace site. Beatties Ford Road is a major mass transit venue, giving Mayfield Terrace residents easy access to transit lines throughout Mecklenburg County. Oaklawn Avenue runs directly into the neighborhood from the east, intersects with Beatties Ford Road and becomes Booker Avenue as it enters the neighborhood heading west, one block south and two blocks east of Mayfield Terrace. The intersection of these major roads serves as the primary entrance into Historic Washington Heights. Booker Avenue is the largest street in the Historic Washington Heights community. In the past few years, Beatties Ford Road and Booker and Oaklawn Avenues have undergone intensive infrastructure improvements at and near their intersection, the most prominent of which are the widening of Beatties Ford from 2 lanes to 4 lanes as it passes by Historic Washington Heights to the east, the aligning of Oaklawn and Booker where they intersect with Beatties Ford, and significant sidewalk and streetscape improvements. The improvements have helped smooth out traffic flow through the intersection, and increase pedestrian safety by aligning the crosswalks for the

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intersection. On the internal residential streets of Historic Washington Heights, substantial curb and gutter, widening and sidewalk improvements by the City have recently been completed, at a cost of $1.6 million, as noted earlier in this application. Booker Avenue, which runs one block south of Mayfield Terrace, has been widened and has new sidewalks, curbs and gutters. Intra-neighborhood roadway connectivity has been greatly enhanced by the elimination of a gap in Redbud Street, between its intersection with Booker Avenue and Tate Street. Redbud Street is the nearest street to the east of Mayfield Terrace, and intersects Booker Avenue just to the south of the apartments. Tate Street runs parallel to Booker Avenue to the north, and intersects and terminates at Redbud Street just east of Mayfield Terrace. Pitts Drive, which runs directly adjacent to Mayfield Terrace and provides direct access to the apartments, already has sidewalks and curb and gutter, as does Redbud Street, which intersects Pitts Drive just to the north of the apartments, and just north of Redbuds intersection with Tate Street. However, a much more walkable Historic Washington Heights neighborhood has resulted from the elimination of the gap in Redbud Street between Booker Avenue and Tate Street, and the new sidewalks on Booker Avenue, which as described above is the main entrance into the community. This enhancement especially benefits Mayfield Terrace residents, to whom Booker Avenue was not previously easily accessible. 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 incompatible land uses within the Historic Washington Heights community. The nearest industrial land use is a Charlotte-Mecklenburg water treatment facility, which is outside of the neighborhood to the south and across Beatties Ford from Washington Heights. The treatment facility treats water only, does not process any sewage, and does not emit any pollutants or odors which impact Historic Washington Heights or Mayfield Terrace. There are no other nearby nonconforming, incompatible or obnoxious land uses.

Similarity of scale and aesthetics/architecture between project and surroundings. Mayfield Terrace is by far the largest multi-family site in Historic Washington Heights. Recent upgrades, which include new siding and roofing, allow Mayfield Terraces external appearance to meet or exceed that of most of the surrounding houses. However, the apartments interior designs are functionally obsolete and the interiors have badly deteriorated. There are no washer dryer hookups, air conditioning, reasonably sized closets, kitchens or bathrooms. The site plan plus design exterior and interiors of the proposed replacement multi-family of Mayfield Terrace will respect the unique and historic character of the Historic Washington Heights community, and set a new standard of quality for all nearby residential buildings. For each applicable neighborhood feature, enter distance from project in miles. .5 .5 .5 .3 .2 .2 .2 .3 .1 .5 1 .5 2 Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools .5 .3 .5 .5 .5 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 .3 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools .3 .3 5 .5 .5 .5

Other facilities or services: After redevelopment, Mayfield Terrace will contain a mix of public housing apartments and tax credit

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apartments. As a result, public housing residents will participate in the Charlotte Housing Authoritys Family Self-Sufficiency program, which will link them to child care assistance, education and job training programs, transportation services, medical services, job placement assistance, individual and family counseling services, budgeting and money management guidance services, life skills training programs (including parenting, housekeeping and home repair assistance), and homeownership and mortgage lending guidance services. The Family Self-Sufficiency program also requires participants set up individual or family escrow accounts that may be later used to cover education costs, job training costs, or start-up costs of a small business or the down payment for home purchases. The goal for FSS participants is for them to have the enhanced life management skills and personal capital available at the end of 5 years to move out of assisted housing and make their former unit available to another household.

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Development Team
Provide contact information for development team members below: Management Agent Company: Crosland Apartments Address: City: Phone 227 West Trade Street, Suite 800 Charlotte (704)561-5232 State: NC Zip: 28202 Email: chenley@crosland.com Last: Henley

Contact Name: First: Charlie

Architect Company: Address: City: Phone

Watts Leaf Architects 101 N. McDowell Street, Suite 112 Charlotte (704)376-1200 State: NC Zip: 28204 Email: cwatts@wattsleaf.com Last: Watts

Contact Name: First: Charles

Attorney Company: Address: City: Phone

Blanco Tackabery Combs & Matamoros PO Box 25008 Winston-Salem (336)293-9000 State: NC Zip: 27114-5008 Email: ram@btcmlaw.com Last: Matamoros

Contact Name: First: Ronald

Investor Company: Address: City: Phone

PNC Multifamily Capital 15720 John J. Delaney Drive, Suite 300 Charlotte (704)752-4914 State: NC Zip: 28277 Email: kandi.jackson@columbiahousin Last: Jackson

Contact Name: First: Kandi

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 Contracting Address: City: Phone 227 West Trade Street, Suite 800 Charlotte (704)561-5269 State: NC Zip: 28202 Email: ghendershot@crosland.com Last: Hendershot

Contact Name: First: Gregg

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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, 1996 and January 1, 2003: North Carolina Other States Projects: Units: 3 413 0 0

Management List number of low-income housing tax credit units managed in the past 10 years: North Carolina Other States Projects: Units: 7 634 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

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Financing Commitments
Does the project have a firm commitment for construction financing? Does the project have a letter of intent for private permenant financing? Does the project have a firm commitment for government financing? Does the project have a letter of intent from an investor? Is any portion of the eligible basis of new contruction or rehabilitation financed with federal subsidies other than CDBG funds or funds from the HOME program? If yes, indicate the type and amount below: Tax Exempt Financing: $ RD 515 Financing: Hope VI Financing: Other: $ $ 1,209,181 $ 0 Yes Yes Yes Yes Yes

The funds referred to above as HOPE VI financing will be a loan from the Charlotte Housing Authority, whose source of funds for that loan is the Housing Authority's HOPE VI commitment from the federal government. Construction financing and tax credit equity will be from PNC Multifamily Capital, an experienced provider of construction loans and tax credit investment capital with projects throughout the USA. PNC is the construction lender and tax credit investor for Arbor Glen II and Arbor Glen III, two of Crosland's tax credit projects in Charlotte. See PNC's commitment letter for equity investment, and a construction (bridge) loan plus the Housing Authority's commitment for the use of HOPE VI funds for this If Other, specify the type of Federal subsidy: project in Exhibit U.

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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): Land Lease Miscellaneous Operating & Maintenance Expenses SUBTOTAL Taxes and Insurance Real Estate Taxes Payroll Taxes (FICA) Miscellaneous Taxes, Licenses and Permits

1,500 26,000 20,194 0 32,076 2,800 0 0 8,800 0 2,400 1,000 0 94,770 0 15,127 8,201 1,276 11,846 36,450 0 0 0 1,300 0 1,000 0 0 0 19,000 22,000 5,400 0 0 1,000 0 300 10,500 36,700 1,000 0 98,200 40,500 0 0

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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): Services Contract with PHA 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

9,720 0 0 0 0 50,220 0 0 0 20,250 20,250 20,250 20,250 320,140 239,140 81 2,952

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Projected Cash Flow Year One


OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): Forfeited Deposits, Application Fees, Damage Income 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) 1,944 7,776 466,008 32,620 433,388 456,288

320,140 113,248

73,730

39,518 1.536

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 1 433,388 320,140 73,730 39,518 1.536 11 582,436 473,886 73,730 34,820 1.472 2 446,390 332,946 73,730 39,714 1.539 12 599,909 492,841 73,730 33,338 1.452 3 459,782 346,264 73,730 39,788 1.54 13 617,906 512,555 73,730 31,621 1.429 4 473,575 360,115 73,730 39,730 1.539 14 636,443 533,057 73,730 29,656 1.402 5 487,782 374,520 73,730 39,532 1.536 15 655,536 554,379 73,730 27,427 1.372 6 502,415 389,501 73,730 39,184 1.531 16 675,202 576,554 73,730 24,918 1.338 7 517,487 405,081 73,730 38,676 1.525 17 695,458 599,616 73,730 22,112 1.3 8 533,012 421,284 73,730 37,998 1.515 18 716,322 623,601 73,730 18,991 1.258 9 549,002 438,135 73,730 37,137 1.504 19 737,812 648,545 73,730 15,537 1.211 10 565,472 455,660 73,730 36,082 1.489 20 759,946 674,487 73,730 11,729 1.159

* 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".

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Design Features
ITEM Foundation/Slab Components Primary Windows DESCRIPTION Post Tension, 3000 PSI Mix Code 3308 Make: General Aluminum Model: 2100 Series

Type/Construction: Aluminum Vinyl Glass Exterior Doors Siding Type: 24 GA 6-Panel Type: Hardiplank Warranty: 50 Year Exterior Trim Shingles Koat #1 Pre-Primed P.T. Type: GAF Timberline Warranty: 30 Year Sprinkler System Cabinets Heat Pump NFPA 13R Residential Normac 800 Camelot White PVC SEER: 12 Seer Model: Varies to size of unit Air Conditioner SEER: 12 Seer Model: Varies to size to unit Other Heat Systems SEER: 12 Seer Varies to conditionclubhouses, laundry and Model: maintenance facilities Make: Goodman Make: Goodman Make: Goodman Weight: 225 lbs. Frames: Wood Grade/Thickness: 5/16

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Costs - Construction
This is a detailed breakdown of rehabilitation or construction costs you summarized in the Development Costs table (Rehabilitation and Construction of New Building(s)). The total should match those roll-up values. ITEM Concrete Footings Backfill-slab, Crawl Slab-concrete/Rebar/Gravel Waterproofing Masonry Foundation Brick Veneer Steel/Structure/Rails Framing/Lumber/Nails Trusses Crane Rental Windows/Grilles/Screen Exterior Doors Roofing Fencing Vinyl Siding/Trim/Box Gutters/Shutters Insulation Drywall Interior Doors Int. & Final/Stair/Trim/Shelves Cabinets & Tops Painting Marble - Tub/Shwr/Tops Plumbing Electrical Heating/Air Conditioning Floor Covering and Underlayment Wall Paper Mailboxes/Special Features/Signage Gypcrete Blinds/Shades/Art Work Light Fixtures/Fans Sprinkler System Security Alarm Hardwood Floors Elevator Ceramic Tiles Acoustical Ceilings 236,848 LABOR MATERIAL 22,622 0 165,894 22,622 71,636 207,367 0 178,200 386,852 0 52,784 56,555 45,244 37,703 178,200 60,325 41,473 251,100 139,502 147,042 113,109 98,028 0 307,800 218,700 214,650 116,880 0 22,622 26,392 22,622 0 64,095 40,518 0 0 37,703 0 TOTAL 22,622 0 165,894 22,622 71,636 207,367 0 178,200 623,700 0 52,784 56,555 45,244 37,703 178,200 60,325 41,473 251,100 139,502 147,042 113,109 98,028 0 307,800 218,700 214,650 116,880 0 22,622 26,392 22,622 0 64,095 40,518 0 0 37,703 0

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Mirror/Shower Door/Encls. Hardware/Bath Access. Appliances Playground Equipment Interior Clean Exterior Clean/Dumpster Rental Other 1 (specify in Remarks) Other 2 (specify in Remarks) Total Cost Remarks: 236,848

0 18,852 82,620 18,852 30,163 34,739 0 0 3,533,466

0 18,852 82,620 18,852 30,163 34,739 0 0 3,770,314

Construction costs and their distribution have been reviewed by the staff of Crosland Contracting, builders of Arbor Glen, the Park at Oaklawn, and many tax credit projects for third party owners. Collectively, the costs appear to be reasonable projections for this project based on Crosland Contracting's recent experience. Please note that, except for the "trusses" account there is no separation of labor and materials, because all trades, except for framing labor, are bid and subcontracted on a combined labor plus materials basis by Crosland Contracting.

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Costs - General
This is a detailed breakdown of the General Requirements cost element you summarized in the Development Costs table (General Requirements). The total should match that roll-up value. ITEM Supervision Job Site Office/Trailer Rental Office Supplies Security/Watchman Project Signage Tools and Equipment Gas, Oil, and Maintenance Temporary Water, Electric, and Telephone Storage/Hauling Driveway Access Permit Porta-John Rental/Dumping Builders Risk Insurance Re-inspection Fees Extra Plans and Specifications Miscellaneous, Casual Labor Equipment Rental Other 1 (specify in Remarks) Other 2 (specify in Remarks) Total Cost Remarks: Other 1 is Permits and Fees. Other 2 is Performance Bond Required by HUD for all HOPE VI projects. TOTAL 107,934 15,419 3,084 46,258 6,168 0 0 6,168 0 0 6,168 3,084 0 3,084 0 9,252 49,342 52,426 308,387

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Costs - Improvements
This is a detailed breakdown of the Site Improvements cost element you summarized in the Development Costs table (On-site Improvements). The total should match that roll-up value. ITEM Subsurface Exploration/Perk Testing/Site Engineering Clearing/Grading/Final Grading/Excess and Borrow Demolition Earthwork/Excavation/Aerating Soil Treatment Pile Foundations Caissons Shoring/Bracing Site Drainage Site Utilities/Site Lighting Paving and Surfacing/Curb and Gutter Walkways Site Signage Parking Lot Painting Dumpster Pads/Fencing Fencing/Gates Landscaping/Topsoil Rock and Hardpan Excavation Site Supervision Personnel Other (specify in Remarks) Total Cost Remarks: TOTAL 29,768 230,202 0 0 2,977 0 0 0 39,690 247,783 124,031 47,628 9,923 9,923 19,845 39,690 101,487 0 89,303 0 992,250

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Costs - Bond Costs


This is a detailed breakdown of the Bond Costs cost element you summarized in the Development Costs table (Bond Costs). The total should match that roll-up value. ITEM Letter of Credit Fee Credit Enhancement Underwriter Discount Capital Interest Fund Other 1 (specify in Remarks) Other 2 (specify in Remarks) Total Cost Remarks: Not Applicable 0 TOTAL

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Costs - Bond Issuance


This is a detailed breakdown of the Bond Issuance cost element you summarized in the Development Costs table (Cost of Issuance). The total should match that roll-up value. ITEM Bond Counsel Issuer Counsel Credit Enhancement/LOC Counsel Underwriter Counsel Developer's Counsel Rating Agency Fee Printing Trustee Fee Trustee Counsel Issuer's Fee Other 1 (specify in Remarks) Other 2 (specify in Remarks) Other 3 (specify in Remarks) Total Cost Remarks: Not Applicable 0 TOTAL

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Minimum Set-Asides
MINIMUM REQUIRED SET ASIDES (No Points Awarded): Select one of the following two options: 20% of the qualified units are rent restricted and occupied by households with incomes at or below 50% of the median income (Note: No Tax Credit Eligble Units in the the project can exceed 50% of median income) 40% of the qualified units are rent restricted and occupied by households with incomes at or below 60% of the median income (Note: No Tax Credit Eligble Units in the the project can exceed 60% of median income) If requesting RPP funds: 40% of the qualified unit 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 mortgage subsidy 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.

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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 C Ownership Entity Agreement, Development Agreement or any other agreements governing development services D Management Agent Agreement E Development and manager multi-family experience & Management Questionnaire (Appendix C) F Letters from State Housing Agencies or designated monitoring agent verifying Out of State Management Experience G Completed IRS Form 8821 (Appendix I) H Letters from Local Utility Providers (original on letterhead, no fax or photocopies) I Local Government Letter or Letter from Certified Engineer or Land Surveyor Confirming Floodplain Designation with Map showing 100 year and 500 year floodplain (original on letterhead, no fax or photocopies)

J Local Government Letter Confirming Zoning (original on letterhead, no fax or photocopies) K Copy of certificate of occupancy or proof of placed-in-service date (Rehabs Only) L Site plan, floor plans and elevations M Hazard and structural inspection and termite reports (Renovation projects only) N Anticipated budget demonstrating how the project would meet the 10% test by November 14th. O Evidence of Architect's Errors and Omissions insurance (or equivalent). P Description of acquisition for existing/occupied projects or for projects with occupied buildings to be demolished. Q Description of proposed Relocation Plan & Relocation Budget, Etc. If any relocation is anticipated, reference Appendix F. R Targeting Plan and supporting documentation (Required for all projects) S Local Housing Authority Agreement (Reference Model in Appendix I) T Appraisal (for land costs greater than $5,000 and for buildings in rehab projects) U Evidence of Permanent Loan Commitment, other sources of funds, and project-based subsidies. V Statement regarding terms of Deferred Developer Fee and, if nonprofit, resolution of Board approving fee. W Inducement Resolution (Tax-Exempt Bond Financed Projects only) X Documentation to support estimated utility costs.

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