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

Project Description
Project Name: Kings Falls Address: City: East Gold Street Kings Mountain County: Cleveland Zip: 28086 Block Group: 3

Census Tract: 9505

Is project in Qualified Census Tract or Difficult to Develop Area? Yes Political Jurisdiction: Jurisdiction Address: Jurisdiction City: Jurisdiction Phone: City of Kings Mountain Last: Murphrey Title: Mayor PO Box 429 Kings Mountain (704)734-0333 Zip: 28086

Jurisdiction CEO Name: First: Rick

Site Latitude: Site Longitude:

35.23713 -81.33598

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? No Does a community revitalization plan exist? No Will the project use steel and concrete construction and have at least 4 stories? No Will the project include a Community Service Facility under IRS Revenue Ruling 2003-77? No If yes, please describe:

Target Population: Elderly (55) Will the project be receiving project based federal rental assistance? No If yes, provide the subsidy source: and number of units:

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: 4 Remarks:

Applicant Information
Indicate below an individual or a validly existing entity (a corporation, nonprofit, limited partnership or LLC) as the official applicant. Under QAP Section III(C)(5) only this individual or entity will be able to make decisions with regard to this application. If awarded the applicant must become part of the ownership entity. The applicant will execute the signature page for this application. Applicant Name: Address: City: Contact: Telephone: Alt Phone: Fax: Email Address: Pendergraph Development, LLC PO Box 19691 Raleigh First: Frankie (919)755-0558 (919)861-6028 (919)754-8663 mhernandez@thepencos.com State: NC Zip: 27619 Last: Pendergraph Title:

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

Site Description
Total Site Acreage: 5 Total Buildable Acreage: 5 If buildable acreage is less than total acreage, please explain:

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

Is the demolition of any buildings required or planned? No If yes, please describe:

Are existing buildings on the site currently occupied? 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)? No If yes provide: Purchase Date: If no: (a) Does the owner/principal or ownership entity have valid option/contract to purchase the property? Yes (b) Does an identity of interest (direct or indirect) exist between the owner/principal or ownership entity with the option/contract for purchase of the property and the seller of the property? No If yes, specify the relationship:

Purchase Price:

(c) Enter the current expiration date of the option/contract to purchase: 8/1/2007 (D) Enter Purchase Price: 200,000

Zoning
Present zoning classification of the site: CUR-6 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? Yes If yes, have the hearings been completed and permits been obtained? Yes If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for obtaining them: Conditional Use permit issued 03-27-07

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: Kings Falls, LLC Address: City: PO Box 19691 Raleigh State: NC Zip: 27619 (If assigned)

Federal Tax ID Number of Ownership Entity:

Note: Do not submit social security numbers for individuals. Entity Type: Limited Liability Company Entity Status: To Be Formed Is the applicant requesting that the Agency treat the application as Non-Profit sponsored? Is the applicant requesting that the Agency treat the application as CHDO sponsored?

No No

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

Org:

FWP Kings Falls, LLC Last Name: Pendergraph Function: Managing Member

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

State: NC

Zip: 27619

Fax: (919)754-8663 Nonprofit: No

fpendergraph@thepencos.com

Unit Mix
The Median Income for Cleveland county is $48,900. Low Income Units Type Gdn Apt Gdn Apt # BRs Net Sq.Ft. 1 2 693 943 Total # Units 28 8 # Units 4 2 Monthly Rent 348 408 Electric Utility Allowance 85 108 Gas Mandatory Serv. Fees 0 0 Other Trash **Total Housing Exp. 433 516

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............... 36 6 13008 36 Gross Monthly Rental Income 13008

Units 6

Proposed number of residential buildings: 1 Project Includes:

Maximum number of stories in buildings: 2

Separate community building - Sq. Ft. (Floor Area): Community space within residential bulding(s) - Sq. Ft. (Floor Area): 9,978 Elevators - Number of Elevators: 1 Square Footage Information Gross Floor Square Footage: 36,280

Total Net Sq. Ft. (All Heated Areas): 35,620

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

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

# BRs 1 1 2 2 14 14 4 4

Units targeted at 50 targeted at 60 targeted at 50 targeted at 60

% percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by percent of median income affordable to/occupied by

Total Low Income Units:

36

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

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

Source Bank Loan RPP Loan Local Gov. Loan - Specify: RD 515 Loan RD 538 Loan - Specify: AHP Loan Other Loan 1 - Specify: Other Loan 2 - Specify: Other Loan 3 - Specify: Tax Exempt Bonds State Tax Credit(Loan) State Tax Credit(Direct Refund) Equity: Federal LIHTC Non-Repayable Grant Equity: Historic Tax Credits Deferred Developer Fees Owner Investment Other - Specify: Total Sources**

Amount

210,000

2.00

20

20

12,748

792,782

30

30

2,534,147

27,739 252

3,564,920

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

Development Costs
Item Cost Element 1 Purchase of Building(s) (Rehab / Adaptive Reuse only) 2 Demolition (Rehab / Adaptive Reuse only) 3 On-site Improvements 4 Rehabilitation 5 Construction of New Building(s) 6 Accessory Building(s) 7 General Requirements 8 Contractor Overhead 9 Contractor Profit 10 Construction Contingency 11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 12 Architect's Fee - Inspection 13 Engineering Costs SUBTOTAL (lines 1 through 13) 14 Construction Insurance (prorate) 15 Construction Loan Orig. Fee (prorate) 16 Construction Loan Interest (prorate) 17 Construction Loan Credit Enhancement (prorate) 18 Construction Period Taxes (prorate) 19 Water, Sewer and Impact Fees 20 Survey 21 Property Appraisal 22 Environmental Report 23 Market Study 24 Bond Costs 25 Bond Issuance Costs 26 Placement Fee 27 Permanent Loan Origination Fee 28 Permanent Loan Credit Enhancement 29 Title and Recording SUBTOTAL (lines 14 through 29) 30 Real Estate Attorney 31 Other Attorney's Fees 32 Tax Credit Application Fees (Preliminary and Full) 33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 34 Cost Certification / Accounting Fees 35 Tax Opinion 36 Organizational (Partnership) 37 Tax Credit Monitoring Fee SUBTOTAL (lines 30 through 37) 38 Furnishings and Equipment 39 Relocation Expense 40 Developer's Fee 41 42 44 45 Other Lender Inspection Fees Other Non-basis Expense (specify) Other Non-basis Expense (specify) 378,000 0 5,250 378,000 0 5,250 5,000 23,400 87,285 15,000 15,000 9,000 220,200 30,000 1,000 2,200 17,685 8,000 8,000 15,000 1,000 7,000 5,000 15,000 12,000 6,000 4,200 4,000 5,000 15,000 12,000 6,000 4,200 4,000 126,840 44,817 134,450 72,603 45,000 12,000 23,000 2,572,710 2,000 12,000 144,000 2,000 12,000 144,000 126,840 44,817 134,450 72,603 45,000 12,000 23,000 1,764,000 1,764,000 350,000 350,000 TOTAL COST Eligible Basis 30% PV 70% PV

43 Rent-up Expense

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

398,250 10,800 60,675 15,000

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:

3,364,920

3,199,160

0 3,199,160 100.00% 3,199,160 4,158,908 334,792 353,507 288,000 306,000 200,000 3,564,920 288,000 0 306,000 0 100% 0 0.00% 0 3.45 0 0 3,199,160 100% 3,199,160 130.00% 4,158,908 8.05 334,792 353,507

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

90,651 9,820

Market Study Information

Please provide a detailed description of the proposed project: Cleveland Ridge will be a 36 unit elderly development consisting of 28-1br units and 8-2br units and large community areas. The community space will have an exercise room, craft area, multipurpose area, computer station, sunroom, screened porch area, covered patio and several seating alcoves along the hallways. A covered drive area will be constructed to allow residents to be picked up in a protected area. Our rents will be affordable to 50% and 60% income levels with the rent structure targeting at 50% rent levels. We feel that this site and market is excellent for the proposed development. All necessary amenities for the residents are within one mile of the site due to the proximity of the downtown area of Kings Mountain. Kings Mountain is a growing community located in the foothills of North Carolina. It offers outdoor recreation, the arts, dining and shopping, business and industry, education and healthcare and a solid network of parks, community centers and libraries. There is also the Patrick Center, a senior life and conference center, within a mile of the site. They offer many programs for the seniors in the community such as meal preparation, crafts, ceramics, health classes, Veterans meetings and programs. Kings Mountain is a nice community to live in for seniors. The area has been very aggressive in trying to lure industry to the area and was successful in 2006 in landing two iconic vehicle manufacturers to the Kings Mountain area: Indian Motorcycle Company and boat maker Chris-Craft. The two companies together will employee about 807 employees and will invest approximately $42 million over the next five years. Kings Mountain and Cleveland County are growing and you are seeing more people moving to the area for the quality of life that it provides for seniors or families.

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

The building will be an all inclusive two story building with a central area designed for meeting purposes and two off-set wings. There will be a covered screen porch off of the back of the building, a covered patio off the back, a covered drive area in the front of the building with benches lining the front entrance walkway, a sunroom, and exercise room, computer room with multiple computers, a multi-purpose area for activities, craft room, and alcove seating areas along the hallways. There will be an elevator located within the central corridor of the building and stairwells on the ends of the building for fire safety. All units will have patios or balconies with storage. Patio doors are full view glass providing an abundance of natural light into the main living, dining, and kitchen area. The building has been designed for active seniors in mind to enhance their quality of life by providing the ability to interact with others and get involved with activities. 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: A new patio shelter will be constructed with seating, tables and grilling station. An arbor/trellis will also be installed for the residents use. There will be three areas of seating located through out the property for the residents benefit. The community space will have an exercise room, craft area, multipurpose area, computer station, sunroom, screened porch area, covered patio and several seating alcoves along the hallways. A covered drive area will be constructed to allow residents to be picked up in a protected area.

Onsite Activities: A new patio shelter will be constructed with seating, tables and grilling station. An arbor/trellis will

also be installed for the residents use. There will be three areas of seating located through out the property for the residents benefit. The community space will have an exercise room, craft area, multipurpose area, computer station, sunroom, screened porch area, covered patio and several seating alcoves along the hallways. A covered drive area will be constructed to allow residents to be picked up in a protected area. Landscaping Plans: It our plan to install new plant material as described in the QAP and an irrigation system in the main visible areas. We will also make sure all site amenities and current handicap parking and walks conform to handicap/accessibility requirements. There will also be new hardscape items installed such as benches and a trellis. The site will have attractive signage, lighting, and landscaping. Trees will be a minimum of 2 caliper and all shrubs will be 3 gallon or larger. White vinyl fencing will be installed around dumpsters.

Interior Apartment Amenities: The units wills be spacious with exterior storage and large closets within the units. All rooms will have ceiling fans. All appliances will carry the energy star rating. All units will have full size washer dryer connections.

Do you plan to submit additional market data (market study, etc.) that you want considered? Yes If yes, please make sure to include the additional information in your pre-application packet.

Applicant's Site Evaluation

Briefly describe your site in each of the following categories: NEIGHBORHOOD CHARACTERISTICS Trend and direction of real estate development and area economic health. Physical condition of buildings and improvements. Concentration of affordable housing. The proposed site for Cleveland Ridge, a seniors development is located on East Gold and Ruppe Street in the Downtown business district of Kings Mountain in Cleveland County. The site is located in area that is growing and has no adverse effects to the existing property. The site is located in a residential area with low impact commercial and is very suitable for the development. Due to the proximity of the site to Downtown all necessary amenities are within one mile. There are Doctors offices, pharmacies, professional services, historic buildings and a cemetery, recreational facilities, restaurants, schools, various shopping areas, a Senior Center, YMCA, etc As you will be able to see when you visit the site, Kings Mountain has spent a considerable amount of funds in revitalization of the Downtown area. You also have the beauty of the mountains in the distance that is very picturesque. Near the site is a Historic Cemetery that is presently being used as a park where people walk and jog, it is not seen as a negative impact to the area or site. Kings Mountain is a growing community located in the foothills of North Carolina. It offers outdoor recreation, the arts, dining and shopping, business and industry, education or healthcare and a solid network of parks, community centers and libraries. Kings Mountain is a nice community to live in. The area has been very aggressive in trying to lure industry to the area and was successful in 2006 to landing two iconic vehicle manufacturers to the Kings Mountain area. Indian Motorcycle Company and boat maker Chris-Craft, the two companies together will employee about 807 employees and will invest approximately 42 million over the next five years. SURROUNDING LAND USES AND AMENITIES Suitability of surrounding development. Land use pattern is residential in character (single and multifamily housing) with a balance of other uses (particularly retail and amenities). Effect of industrial, large-scale institutional or other incompatible uses, including but not limited to: wastewater treatment facilities, high traffic corridors, junkyards, prisons, landfills, large swamps, distribution facilities, frequently used railroad tracks, power transmission lines and towers, factories or similar operations, sources of excessive noise, and sites with environmental concerns (such as odors or pollution). Amount and character of vacant, undeveloped land. The surrounding development has no adverse land uses or amenities relative to the site. The site is located in a residential setting with low impact commercial. The site is located in a developed area of Downtown in the business district. There are no environmental impacts associated with this site. There is an old historic cemetery located near the site but is not considered an adverse land use. In fact people use it as a park and walk and jog through the cemetery. Plus the community has grown up around the cemetery and therefore was not considered an adverse feature. SITE SUITABILITY Adequate traffic controls (stop lights, speed limits, turn lanes, etc.). Burden on public facilities (particularly roads). Access to mass transit (if applicable). Visibility of buildings and/or location of project sign(s) in relation to traffic corridors. The streets and access roads are adequate to support the current development as-is and with the new development. The site is gently sloping with no topographic issues. The site is suitable for the development that is being proposed. Water and sewer are available to the site and we do not foresee any major road improvements needed. 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 on-site negative features or physical barriers to this site that would impeded project construction or adversely affect future tenants.

Similarity of scale and aesthetics/architecture between project and surroundings. The development will be similar in scale and aesthetics to the surrounding uses.

For each applicable neighborhood feature, enter distance from project in miles. .5 .75 .5 .5 .5 Grocery Store Mall/Strip Center Outdoor Athletic Fields Day Care/After School Schools .5 .9 .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 .5 .5 .5 .5 .5 1 .5 Convenience Store Basketball/Tennis Courts Public Parks Gas Station Library Fitness/Nature Trails Public Swimming Pools .5 .5 14 .5 .5 .3

Other facilities or services: Kings Mountain is rich in history and offers several state parks. There is a Historical Museum with exhibits and re-enactment events. There is also a YMCA within one mile of the site that offers many activities for seniors along with a community center.

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

Contact Name: First: Frankie

Architect Company: Address: City: Phone

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

Contact Name: First: James

Attorney Company: Address: City: Phone

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

Contact Name: First:

Investor Company: Address: City: Phone

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

Contact Name: First: Craig

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

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

Contact Name: First: Frankie

Projected Operating Costs

Project Operations (Year One) Administrative Expenses Advertising Office Salaries Office Supplies Office or Model Apartment Rent Management Fee Manager or Superintendent Salaries Manager or Superintendent Rent Free Unit Legal Expenses (Project) Auditing Expenses (Project) Bookkeeping Fees/Accounting Services Telephone and Answering Service Bad Debts Other Administrative Expenses (specify): Training, Computer Software 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): services Miscellaneous Operating & Maintenance Expenses SUBTOTAL Taxes and Insurance Real Estate Taxes Payroll Taxes (FICA) 22,600 14,000 2,000 500 1,000 500 1,000 4,000 11,000 500 1,000 2,000 500 600 5,250 21,000 1,500 500 3,300 15,552

900 12,000 1,500

1,000 36,252

10,500 5,250

Miscellaneous Taxes, Licenses and Permits Property and Liability Insurance (Hazard) Fidelity Bond Insurance Workmen's Compensation Health Insurance and Other Employee Benefits Other Insurance: SUBTOTAL Supportive Service Expenses Service Coordinator Service Supplies Tenant Association Funds Other Expenses (specify): SUBTOTAL Reserves Replacement Reserves SUBTOTAL TOTAL OPERATING EXPENSES ADJUSTED TOTAL OPERATING EXPENSES (Does not include taxes, reserves and resident support services) * TOTAL UNITS (from total units in the Unit Mix section) PER UNIT PER YEAR

500 9,000 250 1,000 1,000

27,750

0 9,000 9,000 116,602 93,602 36 2,600

Projected Cash Flow Year One

OPERATING INCOME Gross rental income (from Unit Mix - Total Monthly Rent) Stores and Commercial Laundry and Vending Other (specify): 4,500 156,096

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)

160,596 11,241 149,355

116,602 32,753

12,748

20,005 2.569

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 1 149,355 116,602 12,748 20,005 2.569 11 200,721 172,600 12,748 15,373 2.206 2 153,836 121,266 12,748 19,822 2.555 12 206,743 179,504 12,748 14,491 2.137 3 158,451 126,117 12,748 19,586 2.536 13 212,945 186,684 12,748 13,513 2.06 4 163,205 131,162 12,748 19,295 2.514 14 219,333 194,151 12,748 12,434 1.975 5 168,101 136,408 12,748 18,945 2.486 15 225,913 201,917 12,748 11,248 1.882 6 173,144 141,864 12,748 18,532 2.454 16 232,690 209,994 12,748 9,948 1.78 7 178,338 147,539 12,748 18,051 2.416 17 239,671 218,394 12,748 8,529 1.669 8 183,688 153,441 12,748 17,499 2.373 18 246,861 227,130 12,748 6,983 1.548 9 189,199 159,579 12,748 16,872 2.324 19 254,267 236,215 12,748 5,304 1.416 10 194,875 165,962 12,748 16,165 2.268 20 261,895 245,664 12,748 3,483 1.273

* 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: Moderate Income County: At least twenty-five percent (25%) of qualified units will be affordable to and occupied by 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 households with incomes at or below fifty percent (50%) 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 fifty percent (50%) of county median income.

Tax Exempt Bonds Threshold requirement (select one): At least ten percent (10%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income. At least five percent (5%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income. Eligible for targeting points (select one): At least twenty percent (20%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent (50%) of county median income. At least ten percent(10%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent (40%) of county median income.

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)