brook ridge

8/6/2019 Brook Ridge

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Is project in Qualified Census Tract or Difficult to Develop Area?

New Construction/Adaptive Reuse:

Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project?

If yes, list names of previous phase(s):If yes, list names of previous phase(s):

Will the project meet Energy Star standards as defined in Appendix B?

Does a community revitalization plan exist?

Target Population: Family

Will the project be receiving project based federal rental assistance?

If yes, provide the subsidy source:If yes, provide the subsidy source: and number of units:and number of units:

Indicate below any additional targeting for special populations proposed for this project:

Print Preview - Full Application

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

Project Description

Project Name: Brookridge

Address: 3900, 3908, 3916 and 3930 Durham Drive

City: Raleigh County: Wake Zip: 27603

Census Tract: 522.02 Block Group: 1

Yes

Political Jurisdiction: Raleigh Extraterritorial Jurisdiction (ETJ)

Jurisdiction CEO Name: First: Last:Charles Meeker Title: MayorJurisdiction Address: PO Box 590

Jurisdiction City: Raleigh Zip: 27602

Jurisdiction Phone: (919)890-4168

Site Latitude: 35.7276

Site Longitude: -78.6449

Project Type: New Construction

No

Rehab:

Is this project a previously awarded tax credit development?

If yes, what year were credits awarded?:

Number of residents holding Section 8 vouchers:

Yes

No

Will the project use steel and concrete construction and have at least 4 stories? No

Will the project include a Community Service Facility under IRS Revenue Ruling 2003-77? No

If yes, please describe:

No

Mobility impaired handicapped: 5% of units comply with QAP Section IV(F)(3) (in addition to the units required by other federal andstate codes.)


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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: Five units will be reserved for individuals with a disability. Rents for these units will be affordable forhouseholds with extremely low incomes. The residents in these units will mostly likely be referredthrough a local lead agency, Wake County Human Services, that will continue to provide follow-up

services to these residents and contact their referral agencies as needed. These 5 units will be partof a Special Populations Targeting Plan and will receive Key Program rental assistance.


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Indicate below an individual or a validly existing entity (a corporation, nonprofit, limited partnership or LLC) as the official applicant. UnderQAP Section III(C)(5) only this individual or entity will be able to make decisions with regard to this application. If awarded the applicantmust become part of the ownership entity. The applicant will execute the signature page for this application.

Applicant Information

Applicant Name: DHIC, Inc.

Address: 113 South Wilmington Street

City: State: NC Zip:Raleigh 27601

Contact: First: Last: Title:Gregg Warren Executive Director

Telephone: (919)832-4345

Alt Phone:

Fax: (919)832-2206

Email Address: [email protected]

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


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Total Site Acreage: Total Buildable Acreage:

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?

If yes, please describe:

Are existing buildings on the site currently occupied?

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?

If no, please explain:

Is any portion of the site located inside the 100 year floodplain?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 Description

4.99 2.23

A portion of the site is protected from development by a Neuse River Buffer.

No

No

Yes

No


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Does the owner have fee simple ownership of the property (site/buildings)?

If yes provide:

Purchase Date: Purchase Price:

If no:

Site Control

No

(a) Does the owner/principal or ownership entity have valid option/contract to purchase the property? Yes

(b) Does an identity of interest (direct or indirect) exist between the owner/principal or ownership entity with the option/contract for

purchase of the property and the seller of the property?If yes, specify the relationship:

No

(c) Enter the current expiration date of the option/contract to purchase: 7/31/2007

(D) Enter Purchase Price: 475,000


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Present zoning classification of the site:

Is multifamily use permitted?

Are variances, special or conditional use permits or any other item requiring a public hearing needed to develop this proposal?

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 obtainingthem:

Are there any existing conditions of historical significance located on the project site that will require State Historic Preservation office

review?

If yes, describe below:

Are there any existing conditions of environmental significance located on the project site?

If yes, describe below:

Zoning

R-10

Yes

No

No

No


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Ownership Entity

Owner Name: Brookridge Housing, LLC


City: State: NC Zip:Raleigh 27601

Federal Tax ID Number of Ownership Entity: (If assigned)

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? Yes

Is the applicant requesting that the Agency treat the application as CHDO sponsored? Yes

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

Org: Brookridge Affordable Housing, Inc.

First Name: Gregory F. Last Name: Warren Function: Managing Member


City: Raleigh State: NC Zip: 27601

Phone: (919)832-4345 Fax: (919)832-2206

EMail: [email protected] Nonprofit: No

Org: DHIC, Inc.

First Name: Gregory F. Last Name: Warren Function: Member


City: Raleigh State: NC Zip: 27601

Phone: (919)832-4345 Fax: (919)832-2206

EMail: [email protected] Nonprofit: Yes


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** Please refer to the Income Limits and Maximum Housing Expense Table to ensure that Total Monthly Tenant Expenses for lowincome units are within established thresholds.


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

Total Low Income Units:

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

Targeting

# BRs Units %

EFF 10 targeted at 50 percent of median income affordable to/occupied by



40


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Estimated pricing on sale of Federal Tax Credits: $0.

Remarks concerning project funding sources:(Please be sure to include the name of the funding source(s))

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

Funding Sources

Source AmountNon-

Amortizing*Rate(%)

Term(Years)

Amort.Period(Years)

AnnualDebt

Service

Bank Loan

RPP Loan 303,594 20.00 20 20

Local Gov. Loan - Specify:CIty of Raleigh

900,000 2.00 30 30

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:Wake County

600,000 2.00 20 20

Other Loan 2 - Specify:

Other Loan 3 - Specify:

Tax Exempt Bonds

State Tax Credit(Loan) 386,574 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 2,962,220

Non-Repayable Grant

Equity: Historic Tax Credits

Deferred Developer Fees

Owner Investment

Other - Specify:

Total Sources** 5,152,388

* "Non-amortizing" indicates that the loan does not have a fixed annual debt service. For these items, you must fill in 20-year debtservice below.

** Total Sources must equal total replacement cost in Project Development Cost (PDC) section.

85

The project has no annual debt service. However, according to the projections ("ProjectedCash Flow" page), the project shows negative net cash flow starting in year 6. As illustratedin the "Development Cost" page we have included a $350,000 special operatingreserve/sinking fund in our budget to cover projected operating shortfalls for the first 20years. The assumptions behind this sinking fund are based on conversations with theproposed equity provider and DHIC's experience with Lennox Chase.


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Development Costs

Item Cost Element TOTAL COSTEligible Basis

30% PV 70% PV

1 Purchase of Building(s) (Rehab / Adaptive Reuse only) 0 0

2 Demolition (Rehab / Adaptive Reuse only) 0 0 0

3 On-site Improvements 384,056 0 384,0564 Rehabilitation 0 0 0

5 Construction of New Building(s) 2,019,384 0 2,019,384

6 Accessory Building(s) 0 0 0

7 General Requirements 144,206 0 144,206

8 Contractor Overhead 48,069 0 48,069

9 Contractor Profit 203,812 0 203,812

10 Construction Contingency 83,986 0 83,986

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 70,000 0 70,000

12 Architect's Fee - Inspection 16,450 0 16,450

13 Engineering Costs 30,000 0 30,000

SUBTOTAL (lines 1 through 13) 2,999,963

14 Construction Insurance (prorate) 23,575 0 23,57515 Construction Loan Orig. Fee (prorate) 38,000 0 38,000

16 Construction Loan Interest (prorate) 110,000 0 110,000

17 Construction Loan Credit Enhancement (prorate) 0 0 0

18 Construction Period Taxes (prorate) 10,000 0 10,000

19 Water, Sewer and Impact Fees 100,000 0 100,000

20 Survey 15,000 0 15,000

21 Property Appraisal 6,000 0 6,000

22 Environmental Report 6,500 0 6,500

23 Market Study 4,200 0 4,200

24 Bond Costs 0

25 Bond Issuance Costs 0

26 Placement Fee 027 Permanent Loan Origination Fee 9,000

28 Permanent Loan Credit Enhancement 0

29 Title and Recording 13,000

SUBTOTAL (lines 14 through 29) 335,275

30 Real Estate Attorney 35,000 0 35,000

31 Other Attorney's Fees 15,000 0 15,000

32 Tax Credit Application Fees (Preliminary and Full) 2,200

33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 26,000

34 Cost Certification / Accounting Fees 12,000 0 12,000

35 Tax Opinion 0

36 Organizational (Partnership) 10,000

37 Tax Credit Monitoring Fee 26,650SUBTOTAL (lines 30 through 37) 126,850

38 Furnishings and Equipment 60,000 0 60,000

39 Relocation Expense 0 0 0

40 Developer's Fee 430,500 0 430,500

41 Other Basis Expense (specify) 0 0 0

42 Other Basis Expense (specify) 0 0 0

43 Rent-up Expense 20,000

44 Other Non-basis Expense (specify) 0

45 Other Non-basis Expense (specify) 0


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Comments:

SUBTOTAL (lines 38 through 45) 510,500

46 Rent up Reserve 32,800

47 Operating Reserve 87,000

48 Other Reserve (special reserve/sinking fund) 585,000

49 Other Reserve (specify) 0

50 DEVELOPMENT COST (lines 1-49) 4,677,388 0 3,865,738

51 Less Federal Financing 0 0 052 Less Disproportionate Standard 0 0 0

53 Less Nonqualified Nonrecourse Financing 0 0 0

54 Less Historic Tax Credit (residential) 0 0

55 TOTAL ELIGIBLE BASIS 3,865,738 0 3,865,738

56 Applicable Fraction (percentage of LI Units) 100.00% 100% 100%

57 Basis Before Boost 3,865,738 0 3,865,738

58 Boost for QCT/DDA (if applicable, enter 130%) 100.00% 100.00%

59 TOTAL QUALIFIED BASIS 3,865,738 0 3,865,738

60 Tax Credit Rate 3.45 8.05

61 Federal Tax Credits at Estimated Rate 311,191 0 311,191

62 Federal Tax Credits at 8.5% or 3.75% 328,587 0 328,587

63 Max Federal Tax Credits (With Energy Star - Lesser of $8,500 per unit or$800,000, w/o - Lesser of $8,000 per unit or $800,000) 348,500

64 Federal Tax Credits Requested 0

65 Land Cost 475,000

66 TOTAL REPLACEMENT COST 5,152,388

FEDERAL TAX CREDITS IF AWARDED 328,587

Total Replacement Cost per unit: 94,453

Federal Tax Credits (line 62) per unit: 8,014


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Please provide a detailed description of the proposed project:

Construction (check all that apply):

Brick Vinyl Wood HardiPlank Balconies/Patios Sunrooms Front Porches

Front Gables or Dormers Wide Banding or Vertical/Horizontal Siding

Other:

Have you built other tax credit developments that use the same building design as this project?

If yes, please provide name and address:

Site Amenities:

Onsite Activities:

Landscaping Plans:

Interior Apartment Amenities:

Market Study Information

Brookridge will feature 40 efficiency/studio apartments designed to provide a high quality livingenvironment to low-income individuals, including persons with disabilities and the formerlyhomeless. An additional apartment will be reserved for the resident manager. The 41 total units willbe housed in a single two/three-story split level building and will include an on-site managers office,a human services office, restrooms, a laundry room with washers and dryers on each floor, storagelockers for residents, a group kitchen area, a large multi-purpose room for activities and programs,and a business center with computers. The plans for Brookridge are modeled on the award-winningLennox Chase development, which has no vacancies and a long waitlist.

There will be a resource center stocked with pamphlets, flyers and other pertinent communityresources and activities so that residents are able to access and explore available resources andinformation on their own time.

Yes

Lennox Chase2534 Lake Wheeler RoadRaleigh* is very similar but not identical

Site amenities will include a fitness/exercise room, a TV lounge, a screened porch and a privateroom for confidential meetings. There will also be a main community room with a adjacent spaciouskitchen for community gatherings and social events. A covered sitting area, outdoor grills andbenches will be available for use by residents.

One of the main features of the site is its natural woods, and a significant portion of this forest will bepreserved. In addition, landscaping features will be added, with an emphasis on the the side of thebuilding that fronts Durham Drive.


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Do you plan to submit additional market data (market study, etc.) that you want considered?

If yes, please make sure to include the additional information in your pre-application packet.

Interior amenities in each apartment will include a small kitchen that features a frost-free refrigeratorand range with hood, as well as mini-blinds.

No


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Briefly describe your site in each of the following categories:

For each applicable neighborhood feature, enter distance from project in miles.

Applicant's Site Evaluation

NEIGHBORHOOD CHARACTERISTICS

Trend and direction of real estate development and area economic health. Physical condition ofbuildings and improvements. Concentration of affordable housing.The site is located on the southern edge of Raleigh near the Garner line, less than four miles fromthe heart of downtown and close to many employment opportunities.

SURROUNDING LAND USES AND AMENITIES

Suitability of surrounding development. Land use pattern is residential in character (single andmultifamily housing) with a balance of other uses (particularly retail and amenities). Effect ofindustrial, large-scale institutional or other incompatible uses, including but not limited to: wastewatertreatment facilities, high traffic corridors, junkyards, prisons, landfills, large swamps, distributionfacilities, 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 orpollution). Amount and character of vacant, undeveloped land.The property sits in a small, quiet single-family residential neighborhood that occupies the south endof Durham Drive. The neighborhood is nestled in the midst of an area that also includes commercialand light industrial uses, as well as some parcels of undeveloped land. The commercial and lightindustrial area is quiet and is not incompatible with residential use. The fact that the site is heavilywooded, and tree conservation plans will preserve much of this forest, will create an additional bufferbetween the site and the nearby commercial and light industrial properties. Finally, a wide variety ofretail and services are located nearby.

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 ofproject sign(s) in relation to traffic corridors.The site is located on a side street where traffic flow is limited and well controlled. However, DurhamDrive has easy access to major thoroughfares like US 70, S. Wilmington St./401 and Tryon Rd.

Furthermore, there are multiple public bus stops close to the site, including stops for both Raleigh'sCapital Area Transit and the regional Triangle Transit Authority within one-quarter mile.

Degree of on-site negative features and physical barriers that will impede project construction oradversely 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 (foradaptive re-use projects- suitability for residential use and difficulties posed by the building(s), suchas limited parking, environmental problems or the need for excessive demolition).There are no major negative features or barriers on the site. A portion of the middle of the site isprotected by a Neuse River Buffer. This buffer does not impede construction plans and will provide apleasant forested backdrop to the building. There is some slope to the site, which makes it well-suited for a two/three-story split building design.

Similarity of scale and aesthetics/architecture between project and surroundings.The building will have a street presence that fits in well with the residential neighborhood on DurhamDrive. The side of the building that fronts Durham Drive will be set back slightly from the street, inorder to help it better fit in with nearby residences. Also, the architectural design of the building willhelp it fit into a single-family residential area. Landscaping on the edge of the property will also helpit blend in and will create a pleasing aesthetic.


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Other facilities or services:

Grocery Store0.7 Community/Senior Center1.6

Mall/Strip Center0.6 Hospital3.3

Outdoor Athletic Fields1.6 Pharmacy0.6

Day Care/After School2.4 Basic Health Care1.4

Schools1.1 Medical Offices0.8

Public Transportation Stop0.25 Bank/Credit Union0.4

Convenience Store0.5 Restaurants0.2

Basketball/Tennis Courts1.6 Professional Services0.2

Public Parks1.6 Movie Theater0.8

Gas Station0.5 Video Rental0.4

Library1.9 Public Safety (Fire/Police)1.9

Fitness/Nature Trails1.9 Post Office3.3

Public Swimming Pools1.6

Salvation Army 0.3


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Project Operations (Year One)

Projected Operating Costs

Administrative Expenses

Advertising 300

Office Salaries 4,413

Office Supplies 1,475

Office or Model Apartment Rent 0

Management Fee 16,604

Manager or Superintendent Salaries 19,833

Manager or Superintendent Rent Free Unit 0

Legal Expenses (Project) 800

Auditing Expenses (Project) 4,500

Bookkeeping Fees/Accounting Services 275

Telephone and Answering Service 4,581

Bad Debts 1,500

Other Administrative Expenses (specify):

training & mileage1,500

SUBTOTAL 55,781

Utilities Expense

Fuel Oil 0

Electricity (Light and Misc. Power) 27,000

Water 2,300

Gas 0

Sewer 2,000

SUBTOTAL 31,300

Operating and Maintenance Expenses

Janitor and Cleaning Payroll 0

Janitor and Cleaning Supplies 3,256

Janitor and Cleaning Contract 1,364

Exterminating Payroll/Contract 365

Exterminating Supplies 0Garbage and Trash Removal 2,200

Security Payroll/Contract 0

Grounds Payroll 0

Grounds Supplies 3,975

Grounds Contract 5,933

Repairs Payroll 15,600

Repairs Material 37

Repairs Contract 290

Elevator Maintenance/Contract 2,373

Heating/Cooling Repairs and Maintenance 600

Swimming Pool Maintenance/Contract 0

Snow Removal 0Decorating Payroll/Contract 1,500

Decorating Supplies 68

Other (specify):

Miscellaneous Operating & Maintenance Expenses

SUBTOTAL 37,561

Taxes and Insurance

Real Estate Taxes 22,000

Payroll Taxes (FICA) 3,801


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Miscellaneous Taxes, Licenses and Permits 0

Property and Liability Insurance (Hazard) 8,051

Fidelity Bond Insurance 75

Workmen's Compensation 291

Health Insurance and Other Employee Benefits 6,000

Other Insurance:

SUBTOTAL 40,218Supportive Service Expenses

Service Coordinator 5,000

Service Supplies

Tenant Association Funds 3,000

Other Expenses (specify):

SUBTOTAL 8,000

Reserves

Replacement Reserves 10,000

SUBTOTAL 10,000

TOTAL OPERATING EXPENSES 182,860

ADJUSTED TOTAL OPERATING EXPENSES(Does not include taxes, reserves and resident support services) * 142,860

TOTAL UNITS(from total units in the Unit Mix section)

41

PER UNIT PER YEAR 3,484


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MINIMUM REQUIRED SET ASIDES (No Points Awarded):

Minimum Set-Asides

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: NoTax 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: NoTax 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 belowthirty 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%) ofcounty median income.

At least fifty percent (50%) of qualified units will be affordable to and occupied by households with incomes at or below fortypercent (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 fiftypercent (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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PLEASE indicate which of the following exhibits are attached to your application. Others may be required as noted.

Full Application Checklist

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 Mapshowing 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 orphotocopies)

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 x36 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 projectsinvolving 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 governmentfunds). For Rehabs with existing loans provide 1) copies of loan documents, 2) current loan balances from existing lenderswith 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 inAppendix I). For projects with existing PBRA contracts, provide a copy of the current contract and bank statement or otherdocumentation 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 approvingdeferral of fee is required.

T Inducement Resolution (Tax-Exempt Bond Financed Projects only)

brook ridge

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