Mingo Creek Apartments

8/6/2019 Mingo Creek Apartments

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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: Mingo Creek Apartments

Address: Mingo Bluff Boulevard

City: Knightdale County: Wake Zip: 27545

Census Tract: 0541.07 Block Group: 1072

No

Political Jurisdiction: Town of Knightdale

Jurisdiction CEO Name: First: Last:Doug Boyd Title: MayorJurisdiction Address: 950 Steeple Square Court

Jurisdiction City: Knightdale Zip: 27545

Jurisdiction Phone: (919)217-2220

Site Latitude: 35.47

Site Longitude: -78.31

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.)



Number of Units: 5

Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units.

Number of Units: 10

Remarks:



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: Evergreen Construction Company

Address: 7706 Six Forks Road, Suite 202

City: State: NC Zip:Raleigh 27615

Contact: First: Last: Title:Tim Morgan Vice President

Telephone: (919)848-2041

Alt Phone: (919)630-3383

Fax: (919)848-0455

Email Address: [email protected]

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



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

6.683 6.683

No

No

Yes

No





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: 854,312



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

RMX

Yes

No

No

No



Ownership Entity

Owner Name: Mingo Creek Housing Associates, LLC


City: State: NC Zip:Raleigh 27615

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? No

Is the applicant requesting that the Agency treat the application as CHDO sponsored? No

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

Org: Mingo Creek Housing Associates, LLC

First Name: Lyle Last Name: Gardner Function: Managing Member


City: Raleigh State: NC Zip: 27615

Phone: (919)848-2041 Fax: (919)848-0455

EMail: [email protected] Nonprofit: No

Org: Mingo Creek Housing Associates, LLC

First Name: Timothy Last Name: Morgan Function: Member


City: Raleigh State: NC Zip: 27615

Phone: (919)848-2041 Fax: (919)848-0455

EMail: [email protected] Nonprofit: No





Square Footage Information

Notes

Gross Floor Square Footage: 105,280

Total Net Sq. Ft. (All Heated Areas): 96,100

** 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.



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 %

1 8 targeted at 30 percent of median income affordable to/occupied by



1 4 targeted at 50 percent of median income affordable to






92



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 1,657,000 7.50 30 30 139,031

RPP Loan 1,000,000 2.00 20 20

Local Gov. Loan - Specify:Wake County

552,000 2.00 30 30 24,483

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:



Tax Exempt Bonds

State Tax Credit(Loan) 920,572 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 6,520,677

Non-Repayable Grant

Equity: Historic Tax Credits

Deferred Developer Fees

Owner Investment 100 Other - Specify:

Total Sources** 10,650,349

* "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.

88

Proposed funding source for the bank loan is CICNC.



RPP Loan

Year:Amt:

1

4500

2

6500

3

8500

4

10500

5

12000

6

14000

7

15500

8

17000

9

19500

10

20000

Year:Amt:

11

21500

12

22500

13

23500

14

24500

15

25500

16

25500

17

26500

18

26500

19

27000

20

27000



Development Costs

Item Cost Element TOTAL COSTEligible Basis

30% PV 70% PV

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

2 Demolition (Rehab / Adaptive Reuse only)

3 On-site Improvements 1,177,088 1,177,0884 Rehabilitation

5 Construction of New Building(s) 5,233,682 5,233,682

6 Accessory Building(s)

7 General Requirements 384,646 384,646

8 Contractor Overhead 135,908 135,908

9 Contractor Profit 407,725 407,725

10 Construction Contingency 220,172 220,172

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 45,000 45,000

12 Architect's Fee - Inspection 9,750 9,750

13 Engineering Costs 72,200 72,200

SUBTOTAL (lines 1 through 13) 7,686,171

14 Construction Insurance (prorate)15 Construction Loan Orig. Fee (prorate) 16,750 16,750

16 Construction Loan Interest (prorate) 205,000 205,000

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate) 5,500 0 5,500

19 Water, Sewer and Impact Fees 450,096 450,096

20 Survey 10,000 10,000

21 Property Appraisal 5,000 5,000

22 Environmental Report 3,000 3,000

23 Market Study 4,200 4,200

24 Bond Costs

25 Bond Issuance Costs

26 Placement Fee27 Permanent Loan Origination Fee 34,500

28 Permanent Loan Credit Enhancement

29 Title and Recording 9,500

SUBTOTAL (lines 14 through 29) 743,546

30 Real Estate Attorney 7,500 7,500

31 Other Attorney's Fees 7,500 7,500

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

33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 53,393

34 Cost Certification / Accounting Fees 5,000 5,000

35 Tax Opinion

36 Organizational (Partnership) 8,844

37 Tax Credit Monitoring Fee 59,800SUBTOTAL (lines 30 through 37) 144,237

38 Furnishings and Equipment

39 Relocation Expense

40 Developer's Fee 800,000 800,000

41 Other Basis Expense (specify)

42 Other Basis Expense (specify)

43 Rent-up Expense 100,000

44 Other Non-basis Expense (other costs assoc. w/ land) 15,000

45 Other Non-basis Expense (specify)



Comments:

SUBTOTAL (lines 38 through 45) 915,000

46 Rent up Reserve 55,083

47 Operating Reserve 252,000

48 Other Reserve (specify)

49 Other Reserve (specify)

50 DEVELOPMENT COST (lines 1-49) 9,796,037 0 9,205,717

51 Less Federal Financing52 Less Disproportionate Standard

53 Less Nonqualified Nonrecourse Financing

54 Less Historic Tax Credit (residential) 0

55 TOTAL ELIGIBLE BASIS 9,205,717 0 9,205,717

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

57 Basis Before Boost 9,205,717 0 9,205,717

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

59 TOTAL QUALIFIED BASIS 9,205,717 0 9,205,717

60 Tax Credit Rate 3.45 8.05

61 Federal Tax Credits at Estimated Rate 741,060 0 741,060

62 Federal Tax Credits at 8.5% or 3.75% 782,485 0 782,485

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) 782,000

64 Federal Tax Credits Requested 730,144 730,144

65 Land Cost 854,312

66 TOTAL REPLACEMENT COST 10,650,349

FEDERAL TAX CREDITS IF AWARDED 782,000

Rock is present on site and development numbers include the cost of widening the site's portion ofHodge Road. The project is also being constructed to Energy Star Standards. Engineering feeincludes a $350/unit certification fee for Energy Star Rating.

Total Replacement Cost per unit: 98,248

Federal Tax Credits (line 62) per unit: 8,505



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:

Market Study Information

We are porposing to construct a ninety-two(92)unit family rental community at the corner of HodgeRoad and Mingo Bluff Boulevard in Knightdale. Ready access to the site will be from Mingo BluffBoulevard. The project will have (16) one bedroom, one bath units, (42) two bedroom, one bathunits and (34) three bedroom, two bath units. All of the units will be garden style apartments. Therewill also be a separate office/community/laundry building, a playground and separate tot lot, acovered picnic area, a gazebo, outdoor sitting areas and a computer center (located in officebuilding) for the residents to use. The site's easy acces to 64 highway and the 264 bypass provideaccessibility to major retail trade areas, local health care facilities, major employers and thedowntown area of both Knightdale and Raleigh. In addition 10% of the units will be targeted topersons with disabilities or homeless.

30 Year Dimensional Shingles

Yes

Perry Hill6501 Andron DriveRaleigh, NC 27616

Playground and separate tot lot, resident computer center (located in office building), covered picnicarea, outdoor sitting areas and a gazebo.

The buildings will have landscaped beds around them. Trees will also be planted and dispersedthroughout the property.



Interior Apartment Amenities:

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.

Wall to wall carpeting, stove, refrigerator, dishwasher, washer/dryer connections, phone and cableTV ready, blinds.

Yes



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.There are several fairly new single family subdivisions along this area of Hodge Road. The proposedsite is directly across the street from Hodge Road Elementary. A shopping center is also proposedat the Bypass exchange.

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.Mingo Bluff Boulevard, which provides ready access to the site, is also the access way into theMingo Creek PUD, presently in the second stage. The PUD includes around 500 single familyhomes and townhomes selling from the 100's to 200's. The land adjacent to the site is wooded,vacant land. The current development in the area is mostly residential and institutional.

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 provides quick access to major roadways. Hodge Road is a medium density road with aspeed limit of 45 miles per hour. Mingo Bluff Boulevard is a light density road with a speed limit of 25miles per hour. This provides acceptable speeds and noise for the nearby roads. Visibility at the siteis good.

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).None exist. A 100 foot buffer will have to be maintained where the Progress Energy polls arelocated.

Similarity of scale and aesthetics/architecture between project and surroundings.The construction will be similar with the use of brick and vinyl siding.

Grocery Store3.6 Community/Senior Center

Mall/Strip Center3.6 Hospital6.13



Other facilities or services:

Outdoor Athletic Fields4.9 Pharmacy3.6

Day Care/After School3.0 Basic Health Care6.13

Schools.1 Medical Offices3.4

Public Transportation Stop Bank/Credit Union3.3

Convenience Store2.9 Restaurants3.3

Basketball/Tennis Courts4.3 Professional Services4.8

Public Parks4.3 Movie Theater

Gas Station2.9 Video Rental4.5

Library5.0 Public Safety (Fire/Police)2.9

Fitness/Nature Trails Post Office4.2

Public Swimming Pools2.9

See vicinity map for location of facilities and services in relation to the site.







Project Operations (Year One)

Projected Operating Costs

Administrative Expenses

Advertising 5,000

Office Salaries

Office Supplies 5,500

Office or Model Apartment Rent

Management Fee 37,072

Manager or Superintendent Salaries 40,000

Manager or Superintendent Rent Free Unit

Legal Expenses (Project) 250

Auditing Expenses (Project) 4,200

Bookkeeping Fees/Accounting Services

Telephone and Answering Service 4,500

Bad Debts

Other Administrative Expenses (specify):

SUBTOTAL 96,522

Utilities Expense

Fuel Oil

Electricity (Light and Misc. Power) 17,000

Water 3,000

Gas

Sewer 3,000

SUBTOTAL 23,000

Operating and Maintenance Expenses

Janitor and Cleaning Payroll

Janitor and Cleaning Supplies

Janitor and Cleaning Contract

Exterminating Payroll/Contract 6,500

Exterminating SuppliesGarbage and Trash Removal 10,500

Security Payroll/Contract

Grounds Payroll

Grounds Supplies 4,500

Grounds Contract 19,000

Repairs Payroll 35,000

Repairs Material 8,500

Repairs Contract 10,500

Elevator Maintenance/Contract

Heating/Cooling Repairs and Maintenance

Swimming Pool Maintenance/Contract

Snow RemovalDecorating Payroll/Contract 5,000

Decorating Supplies 5,000

Other (specify):

Miscellaneous Operating & Maintenance Expenses 700

SUBTOTAL 105,200

Taxes and Insurance

Real Estate Taxes 55,000

Payroll Taxes (FICA) 7,500



Miscellaneous Taxes, Licenses and Permits 250

Property and Liability Insurance (Hazard) 14,000

Fidelity Bond Insurance 50

Workmen's Compensation 3,750

Health Insurance and Other Employee Benefits 6,000

Other Insurance:

SUBTOTAL 86,550Supportive Service Expenses

Service Coordinator

Service Supplies

Tenant Association Funds 2,500

Other Expenses (specify):

SUBTOTAL 2,500

Reserves

Replacement Reserves 23,000

SUBTOTAL 23,000

TOTAL OPERATING EXPENSES 336,772

ADJUSTED TOTAL OPERATING EXPENSES (Does not include taxes, reserves and resident support services) * 256,272

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

92

PER UNIT PER YEAR 2,785





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.



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)

Documents

Mingo Creek Apartments