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

Project Description
Project Name: Cherry Gardens Address: City: 1727 Baxter Street Charlotte County: Mecklenburg Zip: 28204 Block Group: 1

Census Tract: 26

Is project in Qualified Census Tract or Difficult to Develop Area? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: City of Charlotte Last: McCrory Title: Mayor 600 East Fourth Street Charlotte (704)336-2241 Zip: 28202

Jurisdiction CEO Name: First: Pat

Site Latitude: Site Longitude:

35.2079 -80.8315

Project Type: New Construction New Construction/Adaptive Reuse: Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project? No If yes, list names of previous phase(s): Rehab: Is this project a previously awarded tax credit development? If yes, what year were credits awarded?: Number of residents holding Section 8 vouchers: Will the project meet Energy Star standards as defined in Appendix B? Yes Does a community revitalization plan exist? Yes 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? Yes If yes, please describe: The facility will have a multi-purpose area that will be used by the Department of Social Services to provide various services for low income seniors of the Cherry and surrounding communities. Services are proposed to include a meal program, health screenings, exercise programs, nutrition counseling and wellness education classes. These programs are free to qualifying seniors. Target Population: Elderly (55) Will the project be receiving project based federal rental assistance? Yes If yes, provide the subsidy source: HUD and number of units: 27

Indicate below any additional targeting for special populations proposed for this project: Mobility impaired handicapped: 5% of units comply with QAP Section IV(F)(3) (in addition to the units required by other federal and state codes.) Number of Units: 3 Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units. Number of Units: 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: The Affordable Housing Group Address: City: Contact: Telephone: Alt Phone: Fax: Email Address: (704)376-8709 kstilwell@affordablehousinggroup.org 1300 Baxter Street, Suite 215 Charlotte First: Kathy (704)968-7202 State: NC Zip: 28204 Last: Stilwell Title: Director of Real Estate Development

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

Site Description
Total Site Acreage: 1.046 Total Buildable Acreage: 1.046 If buildable acreage is less than total acreage, please explain:

Identify utilities and services currently available (and with adequate capacity) for this site: Storm Sewer Water Sanitary Sewer Electric

Is the demolition of any buildings required or planned? Yes If yes, please describe: Two vacant single family homes are scheduled for demolition.

Are existing buildings on the site currently occupied? No If yes: (a) Briefly describe the situation:

(b) Will tenant displacement be temporary? (c) Will tenant displacement be permanent? Is the site directly accessed by an existing, paved, publicly maintained road? Yes If no, please explain:

Is any portion of the site located inside the 100 year floodplain? No If yes: (a) Describe placement of project buildings in relation to this area:

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

Site Control
Does the owner have fee simple ownership of the property (site/buildings)? Yes If yes provide: Purchase Date: 01/10/2007 If no: (a) Does the owner/principal or ownership entity have valid option/contract to purchase the property? (b) Does an identity of interest (direct or indirect) exist between the owner/principal or ownership entity with the option/contract for purchase of the property and the seller of the property? If yes, specify the relationship:

Purchase Price: 0

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

Zoning
Present zoning classification of the site: UR-2(CD) 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: Cherry Gardens LLC Address: City: 1300 Baxter Street, Suite 215 Charlotte State: NC Zip: 28204 20-8564211 (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?

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:

Cherry Gardens Housing of Charlotte Inc. Last Name: Stilwell Function: Managing Member

First Name: Kathy Address: City: Phone: EMail:

1300 Baxter Street, Suite 215 Charlotte (704)968-7202 kstilwell@affordablehousinggroup State: NC Zip: 28204

Fax: (704)376-8709 Nonprofit: No

Org:

Stonehunt LLC Last Name: Sellars Function: Member

First Name: Stoney Address: City: Phone: EMail: 1313 N. Tryon Street Charlotte (704)333-8878 ssellars@stonehunllc.com

State: NC Fax: (704)333-5145 Nonprofit: No

Zip: 28206

Org:

The Affordable Housing Group of North Carolina Inc. Last Name: Stilwell Function: Managing Member

First Name: Kathy Address: City: Phone: EMail:

1300 Baxter Street, Suite 215 Charlotte (704)968-7202 kstilwell@affordablehousinggroup State: NC Fax: (704)376-8709 Nonprofit: Yes Zip: 28204

Unit Mix
The Median Income for Mecklenburg county is $64,400. Low Income Units Type Gdn Apt Gdn Apt Gdn Apt Gdn Apt # BRs Net Sq.Ft. 1 1 1 1 687 687 687 687 Total # Units 6 15 16 5 # Units 2 4 4 2 Monthly Rent 280 450 521 207 Electric Utility Allowance 82 82 82 82 Gas Mandatory Serv. Fees 0 0 0 0 Other trash **Total Housing Exp. 362 532 603 289

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............... 42 12 17801 42 Gross Monthly Rental Income 17801

Units 12

Proposed number of residential buildings: 1 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): 2,988 Elevators - Number of Elevators: 1 Square Footage Information Gross Floor Square Footage: 43,322

Total Net Sq. Ft. (All Heated Areas): 42,888

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 1 1 6 15 16 5

Units targeted at 30 targeted at 50 targeted at 60 targeted at 24

% 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:

42

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: City of Charlotte 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

630,000 1,050,000

2.00 0.00

20 20

20 30

527,402

30

30

3,212,679

450

5,420,531

* "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. 90 Remarks concerning project funding sources: (Please be sure to include the name of the funding source(s)) RPP fund cost limit waiver is requested due to zoning/urban design standards imposed by City of Charlotte and the challenges associated with being adjacent to uptown Central Business District and in a QCT. City of Charlotte Housing Trust Fund application was submitted using the payments listed below - awards are scheduled for June 2007. Operating budget assumes that 4 of the 24% AMI units will be filled with voucher holders and recieve FMR payment standard rents from the Charlotte Housing Authority. The project will apply for project based section 8 for 27 of the units - if awarded additional cash flow will be available to increase payments to the City of Charlotte and NCHFA RPP loan.

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

RPP Loan 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

Local Gov. Loan - City of Charlotte Year: Amt: Year: Amt: 1 32784 11 22541 2 32219 12 20834 3 31568 13 18974 4 30825 14 16950 5 29984 15 14755 6 29040 16 12378 7 27987 17 9809 8 26817 18 7039 9 25524 19 4054 10 24101 20 846

Development Costs
Item Cost Element 1 Purchase of Building(s) (Rehab / Adaptive Reuse only) 2 Demolition (Rehab / Adaptive Reuse only) 3 On-site Improvements 4 Rehabilitation 5 Construction of New Building(s) 6 Accessory Building(s) 7 General Requirements 8 Contractor Overhead 9 Contractor Profit 10 Construction Contingency 11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 12 Architect's Fee - Inspection 13 Engineering Costs SUBTOTAL (lines 1 through 13) 14 Construction Insurance (prorate) 15 Construction Loan Orig. Fee (prorate) 16 Construction Loan Interest (prorate) 17 Construction Loan Credit Enhancement (prorate) 18 Construction Period Taxes (prorate) 19 Water, Sewer and Impact Fees 20 Survey 21 Property Appraisal 22 Environmental Report 23 Market Study 24 Bond Costs 25 Bond Issuance Costs 26 Placement Fee 27 Permanent Loan Origination Fee 28 Permanent Loan Credit Enhancement 29 Title and Recording SUBTOTAL (lines 14 through 29) 30 Real Estate Attorney 31 Other Attorney's Fees 32 Tax Credit Application Fees (Preliminary and Full) 33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 34 Cost Certification / Accounting Fees 35 Tax Opinion 36 Organizational (Partnership) 37 Tax Credit Monitoring Fee SUBTOTAL (lines 30 through 37) 38 Furnishings and Equipment 39 Relocation Expense 40 Developer's Fee 41 42 44 45 Other Basis Expense (specify) Other Basis Expense (specify) Borings/Testing Other Non-basis Expense (specify) Other Non-basis Expense (specify) TOTAL COST 0 0 538,200 0 2,838,000 0 202,572 71,575 286,302 118,099 80,000 20,000 50,000 4,204,748 15,000 43,000 336,583 0 8,000 0 10,000 4,500 2,500 4,200 0 0 0 0 0 12,200 435,983 40,000 17,500 2,200 30,589 17,250 2,500 2,500 27,300 139,839 35,000 0 441,000 0 25,000 23,100 0 0 35,000 0 441,000 0 25,000 17,250 40,000 17,500 12,000 34,400 252,437 0 6,400 0 10,000 4,500 2,500 4,200 0 538,200 0 2,838,000 0 202,572 71,575 386,302 118,099 80,000 20,000 50,000 Eligible Basis 30% PV 70% PV

43 Rent-up Expense

SUBTOTAL (lines 38 through 45) 46 Rent up Reserve 47 Operating Reserve 48 49 Other Reserve (specify) Other Reserve (specify)

524,100 12,600 103,261 0 0 5,420,531 1,050,000 0 0 0 4,156,935 100.00% 4,156,935 5,404,015 437,725 459,341 357,000 0 0 5,420,531 357,000 0 100% 0 130.00% 0 3.45 0 0 0 5,206,935 1,050,000 0 0 0 4,156,935 100% 4,156,935 130.00% 5,404,015 8.10 437,725 459,341

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: If the Agency would allow a 30% QCT boost - this project would request $436,800 in credits ($8,000 x 130%=$10,400 x 42 units) - increasing equity by approximately $700,000 and eliminating RPP funding and reducing local funding to a more reasonable figure.

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

126,302 10,937

Market Study Information

Please provide a detailed description of the proposed project: Cherry Gardens is the first phase of a neighborhood revitalization effort being initiated by StoneHunt LLC and neighborhood organizations within the Cherry community. Stonehunt has obtained site control of a large portion of the community from the nieghborhood organization and desires to complete the Cherry Gardens senior component in order to provide a relocation resource for longtime senior residents of the community that would otherwise be displaced by the surrounding revitalization efforts. Cherry Gardens will be a single building with forty two (42) one bedroom apartments on three floors. Each apartment will be roomy with approximately 660 square feet with special attention to details such as extensive kitchen and bathroom counters, large walk in closets, dining area and features for seniors such as grab bars and emergency call bells. Each floor of the building will have an area for common area resident use. The first floor shall include a management office and additional space for service providers to use as necessary. The second floor will provide extra storage closets for each unit to accommodate large bulky items such as holiday decorations and laundry facilities. The third floor shall have a large community meeting space with access to an outdoor balcony. Site amenities will include outdoor sitting areas, garden areas, extensive sidewalks with easy access to on site bus stop, adjacent church and nearby community park. The property shares its only non-road frontage with Pleasant Hill Baptist Church which provides a number of services to the residents of the neighborhood. 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

Multiple colors, materials, design features will be utilized to break up the facade and roof lines of the building.

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: The site is a highly dense urban setting. The facilty will have on-site parking, bus stop on site, patios with garden areas and gazebo, and sidewalk that circles the entire site for walking and connectivity with the surrounding neighborhood planned for revitalization.

Onsite Activities: Developers are working closely with the Department of Social Services to assure the building will meet the requirments to serve as a service location for DSS programs to include meals, health screenings, excercise programs, nutrition counseling and wellness education classes. Management will also work to develop other social programs to engage the residents such as monthy birthday parties, movie night, etc.

Landscaping Plans: The site and facility are in an urban setting with street trees, foundation plantings and lawns

designed to soften the facade and maximize the amount of greenspace for resident enjoyment. Efforts will be made to save mature trees along the perimeter of the site.

Interior Apartment Amenities: All apartments will include large closets, a pantry, dining area, grab bars in the bathrooms, and call emergency alarms in the bathroom and bedroom. Large open living areas and bedroom with adequate wall space for furniture placement.

Do you plan to submit additional market data (market study, etc.) that you want considered? No If yes, please make sure to include the additional information in your pre-application packet.

Applicant's Site Evaluation

Briefly describe your site in each of the following categories: NEIGHBORHOOD CHARACTERISTICS Trend and direction of real estate development and area economic health. Physical condition of buildings and improvements. Concentration of affordable housing. Cherry Gardens is the initial phase of a neighborhood revitalization program for the Cherry community. Cherry lies on the fringe of the Central Business District of Charlotte and neighborhood leaders have struggled with their efforts to retain their neighborhood character and the availability of housing for low-income families in an area that has been surrounded by booming residential and commercial growth. The community is circled by Central Piedmont Community College central campus, Carolinas Medical Center, Presbyterian Hospital, high-end residential in Myers Park and the ongoing redevelopment of the former Midtown Square mall into a high-end mixed use development with retail, office and residential units. Surrounded by these highly focused and aggressively expanding uses, Cherry is a low-income neighborhood in a Qualified Census Tract that has taken the initial steps to revitalize their community while protecting the availability of affordable housing adjacent to the Central Business District. The community includes a mix of single family, small duplex/triplex rental units in various states of disrepair and scattered mulit-family public housing units. Many of the existing tenants are seniors who have lived in Cherry their entire lives and have no desire to leave. In order to facilitate demolition of the sub-standard rental units, we propose to develop quality affordable housing for seniors in the community. Future phases will include additional affordable rental units for families and affordable for sale units in a mixed income development of condos and townhouses on property adjacent to Cherry Gardens. The Charlotte Housing Authority has issued a RFP for the disposition of some of their public housing units in the community. 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 neighborhood surrounding Cherry Gardens is undergoing varying states of rejuvenation. Stonehunt LLC owns much of the land surrounding Cherry Gardens and is in the process of demolishing abandoned and uninhabitable homes that are in poor condition with the intention of developing Cherry Gardens, followed in phases by townhomes and condominiums that shall include affordable housing. West of land owned and to be revamped by Stonehunt LLC is a mixed use project currently under development by Pappas Properties called Metropolitan that will include upper end condominium and loft residences, office space, and retail shops inclusive of a Target and Home Depot. In addition, and within walking distance of Cherry Gardens, the City of Charlotte is undertaking its most ambitious park project in the Citys history that will include 15 miles of walking, running and biking paths with flowing water of a creek and sitting areas to be known as The Little Sugar Creek Greenway. The park will run the span from midtown Charlotte to the South Carolina state line. 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. Cherry Gardens is located on a site bordered on three sides by roads creating excellent visibility of the property. Driveway entrance is proposed off a less traveled side street, with exit on Baxter Street which provides direct access to Queens Road and Kings Drive. All roads are adequate for the planned development. A bus stop is planned for the property. 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). Two vacant single family homes on the site will be demolished. There are no other on-site negative features.

Similarity of scale and aesthetics/architecture between project and surroundings. The Cherry Gardens facility backs up to Pleasant Hill Baptist Church which is similar in scale. The remaining three sides of the property are bordered by streets which creates a buffer to adjacent uses. A majority of the adjacent single story homes and rental units are planned for demolition as new development of townhomes and condominimums is proposed. The new development will include two and three story units in multi-unit buildings that will be similar to the scale and architecture proposed for Cherry Gardens.

For each applicable neighborhood feature, enter distance from project in miles. 1 .3 .1 .1 .1 .1 .4 .1 .1 .5 1.8 .4 2 Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools 2 .5 .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 .5 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools .3 .2 1.5 1 1 3

Other facilities or services:

Development Team
Provide contact information for development team members below: Management Agent Company: Excel Property Management Inc. Address: City: Phone 3004 Bullard Court, Suite 106 Raleigh (919)878-0522 State: NC Zip: 27615 Email: rblackmon@excelpropertymana Last: Blackmon

Contact Name: First: Rita

Architect Company: Address: City: Phone

Millennium 3 Design Group 1313 North Tryon Street Charlotte (704)333-1965 State: NC Zip: 28206 Email: avhunt@m3dg.com Last: Hunt

Contact Name: First: Anthony

Attorney Company: Address: City: Phone

Nelson Mullins Riley & Scarborough 4140 Park Lane Avenue, Suite 300 Raleigh (919)877-3813 State: NC Zip: 27612 Email: sellinger@nmrs.com Last: Ellinger

Contact Name: First: Susan

Investor Company: Address: City: Phone

MMA Financial 101 Arch Street Boston (617)790-1647 State: MA Zip: 02110 Email: tmaxwell@mmafin.com Last: Maxwell

Contact Name: First: Tom

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

Identity of Interest? General Contractor Company: Weaver Cooke (or comparable as determined by bid) Address: City: Phone 8401 Key Boulevard Greensboro (336)378-7900 State: NC Zip: 27409 Email: mmorgan@weavercooke.com Last: Morgan

Contact Name: First: Mark

Projected Operating Costs

Project Operations (Year One) Administrative Expenses Advertising Office Salaries Office Supplies Office or Model Apartment Rent Management Fee Manager or Superintendent Salaries Manager or Superintendent Rent Free Unit Legal Expenses (Project) Auditing Expenses (Project) Bookkeeping Fees/Accounting Services Telephone and Answering Service Bad Debts Other Administrative Expenses (specify): SUBTOTAL Utilities Expense Fuel Oil Electricity (Light and Misc. Power) Water Gas Sewer SUBTOTAL Operating and Maintenance Expenses Janitor and Cleaning Payroll Janitor and Cleaning Supplies Janitor and Cleaning Contract Exterminating Payroll/Contract Exterminating Supplies Garbage and Trash Removal Security Payroll/Contract Grounds Payroll Grounds Supplies Grounds Contract Repairs Payroll Repairs Material Repairs Contract Elevator Maintenance/Contract Heating/Cooling Repairs and Maintenance Swimming Pool Maintenance/Contract Snow Removal Decorating Payroll/Contract Decorating Supplies Other (specify): Miscellaneous Operating & Maintenance Expenses SUBTOTAL Taxes and Insurance Real Estate Taxes Payroll Taxes (FICA) 35,060 41,627 1,200 300 2,200 360 2,250 4,000 13,000 2,000 1,000 3,150 300 3,000 1,200 15,400 550 750 1,500 700 1,500 3,500 1,500 3,600 500 55,600 22,000 20,000 2,000

1,000

13,000 1,200

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

750 11,000 100 100 2,400

57,177

0 10,500 10,500 173,737 121,610 42 2,895

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): rental subsidy - Section 8 pba or voucher (4units) 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) 15,072 228,684 16,007 212,677 213,612

173,737 38,940

32,784

6,156 1.188

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 1 212,677 173,737 32,784 6,156 1.188 11 285,820 257,172 22,541 6,107 1.271 2 219,057 180,686 32,219 6,152 1.191 12 294,395 267,459 20,834 6,102 1.293 3 225,629 187,913 31,568 6,148 1.195 13 303,227 278,157 18,974 6,096 1.321 4 232,398 195,430 30,825 6,143 1.199 14 312,324 289,283 16,950 6,091 1.359 5 239,370 203,247 29,984 6,139 1.205 15 321,694 300,854 14,755 6,085 1.412 6 246,551 211,377 29,040 6,134 1.211 16 331,345 312,888 12,378 6,079 1.491 7 253,948 219,832 27,987 6,129 1.219 17 341,285 325,404 9,809 6,072 1.619 8 261,566 228,625 26,817 6,124 1.228 18 351,524 338,420 7,039 6,065 1.862 9 269,413 237,770 25,524 6,119 1.24 19 362,070 351,957 4,054 6,059 2.495 10 277,495 247,281 24,101 6,113 1.254 20 372,932 366,035 846 6,051 8.152

* 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)