Creekside Crossing Apartments

8/6/2019 Creekside Crossing 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: Elderly (55)

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: Creekside Crossing Apartments

Address: West Street

City: Spindale County: Rutherford Zip: 28160

Census Tract: 9606 Block Group: 1

Yes

Political Jurisdiction: Town of Spindale

Jurisdiction CEO Name: First: Last:Mickey Bland Title: MayorJurisdiction Address: 103 Reveley Street

Jurisdiction City: Spindale Zip: 28160

Jurisdiction Phone: (828)286-3466

Site Latitude: 35.36934

Site Longitude: -81.93018

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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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: Weaver-Kirkland Housing, LLC

Address: P.O. Box 26030

City: State: NC Zip:Greensboro 27420-6030

Contact: First: Last: Title:Linda Wall Vice President

Telephone: (336)478-2273

Alt Phone: (336)686-7007

Fax: (336)378-6571

Email Address: l [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

6.3 6.3

No

No

Yes

Yes

Area along creek is shown on (new) floodplain map. Building and area of site disturbance is outsideof floodplain area. Finished Floor elevation will be a minimum of 20 feet above the base floodelevation.


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None required.


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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: 12/31/2007

(D) Enter Purchase Price: 94,500


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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

Multi-Family Residential (R-6)

Yes

No

No

No


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Ownership Entity

Owner Name: Spindale WK Limited Partnership


City: State: NC Zip:Greensboro 27420-6030

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

Note: Do not submit social security numbers for individuals.

Entity Type: Limited Partnership

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: Spindale WK GP, LLC

First Name: Linda Last Name: Wall Function: Managing General Partner


City: Greensboro State: NC Zip: 27420-6030

Phone: (336)478-2273 Fax: (336)378-6571

EMail: [email protected] Nonprofit: No

Org: Weaver-Kirkland Housing, LLC

First Name: Linda Last Name: Wall Function: Principal


City: Greensboro State: NC Zip: 27420-6030

Phone: (336)478-2273 Fax: (336)378-6571

EMail: [email protected] Nonprofit: No


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income 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 %

1 15 targeted at 50 percent of median income affordable to/occupied by




48


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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))

Funding Sources

Source AmountNon-

Amortizing*Rate(%)

Term(Years)

Amort.Period(Years)

AnnualDebt

Service

Bank Loan

RPP Loan

Local Gov. Loan - Specify:

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:



Tax Exempt Bonds

State Tax Credit(Loan) 1,509,090 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 3,794,021

Non-Repayable Grant

Equity: Historic Tax Credits

Deferred Developer Fees 20,961

Owner Investment 100 Other - Specify:

Total Sources** 5,324,172

* "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.

93


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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)

2 Demolition (Rehab / Adaptive Reuse only)

3 On-site Improvements 430,000 430,0004 Rehabilitation

5 Construction of New Building(s) 3,210,000 3,210,000

6 Accessory Building(s)

7 General Requirements 218,400 218,400

8 Contractor Overhead 77,168 77,168

9 Contractor Profit 154,336 154,336

10 Construction Contingency 122,697 122,697

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 40,000 40,000

12 Architect's Fee - Inspection 10,000 10,000

13 Engineering Costs 21,000 21,000

SUBTOTAL (lines 1 through 13) 4,283,601

14 Construction Insurance (prorate)15 Construction Loan Orig. Fee (prorate) 16,500 16,500

16 Construction Loan Interest (prorate) 90,000 81,000

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate) 500 500

19 Water, Sewer and Impact Fees 80,000 80,000

20 Survey 12,000 12,000

21 Property Appraisal 3,500 3,500

22 Environmental Report 2,200 2,200

23 Market Study 4,200 4,200

24 Bond Costs

25 Bond Issuance Costs

26 Placement Fee27 Permanent Loan Origination Fee

28 Permanent Loan Credit Enhancement

29 Title and Recording 1,000

SUBTOTAL (lines 14 through 29) 209,900

30 Real Estate Attorney 9,500 9,500

31 Other Attorney's Fees 9,000

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

33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 37,928

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

35 Tax Opinion 3,500

36 Organizational (Partnership) 10,500

37 Tax Credit Monitoring Fee 26,400SUBTOTAL (lines 30 through 37) 111,028

38 Furnishings and Equipment 16,000 16,000

39 Relocation Expense

40 Developer's Fee 504,000 504,000

41 Other Basis Expense (specify)Soil Testing 4,300 4,300

42 Other Basis Expense (specify)Fees, Permits 1,000 1,000

43 Rent-up Expense

44 Other Non-basis Expense (specify)

45 Other Non-basis Expense (specify)


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Comments:

SUBTOTAL (lines 38 through 45) 525,300

46 Rent up Reserve 14,400

47 Operating Reserve 85,443

48 Other Reserve (specify)

49 Other Reserve (specify)

50 DEVELOPMENT COST (lines 1-49) 5,229,672 0 5,030,301

51 Less Federal Financing52 Less Disproportionate Standard

53 Less Nonqualified Nonrecourse Financing

54 Less Historic Tax Credit (residential) 0

55 TOTAL ELIGIBLE BASIS 5,030,301 0 5,030,301

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

57 Basis Before Boost 5,030,301 0 5,030,301

58 Boost for QCT/DDA (if applicable, enter 130%) 130.00% 130.00%

59 TOTAL QUALIFIED BASIS 6,539,391 0 6,539,391

60 Tax Credit Rate 3.45 8.05

61 Federal Tax Credits at Estimated Rate 526,420 0 526,420

62 Federal Tax Credits at 8.5% or 3.75% 555,848 0 555,848

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) 408,000

64 Federal Tax Credits Requested 0

65 Land Cost 94,500

66 TOTAL REPLACEMENT COST 5,324,172

FEDERAL TAX CREDITS IF AWARDED 408,000

Total Replacement Cost per unit: 105,205

Federal Tax Credits (line 62) per unit: 11,580


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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:

Market Study Information

The project will consist of 48 units located within one two-story building. The site is wooded andslopes to Keynolds Creek, which borders the western property boundary. There will be 36 one-bedroom/one bath units and 12 two-bedroom/one bath units. This will include 6handicapped/mobility impaired units. The units will be targeted to tenants at 50% and 60%AMI. Thedevelopment is located on the western edge of Spindale in a residential neighborhood and is zonedfor multi-family and is in harmony with the City's development plan. Rutherford County is designateda Difficult to Develop Area (DDA). Access to the site is directly across from Westwood Street. Thedrive is curved and rising to add to the visibility and visual appeal. A covered central entrance is thecornerstone of the design with community space, elevator, porches and storage accessible as youenter the building. The site design will feature a courtyard with outside seating and a screened-inporch that overlooks the courtyard. The design and building layout was created to maximize thepremium views from covered patio decks of the near-by mountain range and/or the landscapedcourtyard. Additional site amenities and design features include a multi-purpose room, computercenter, interior tenant storage, laundry facilities, TV room, library and numerous outdoor and indoorsitting and gathering areas.

Curb and gutter throughout with turndowns at sidewalks.Internal pedestrian system linking structures and parking.Security lighting throughout all parking areas.Exterior brick, vinyl and accent shake siding.Totally accessible building with wide corridors and handrails.Gutter and downspout system.Courtyard with seating and landscaped slope.

No

Central covered drive-thru and drop-off area.Courtyard with seating.Screened-in porch overlooking courtyard.Wrap-around porch at covered drive-thru.Premium views of near-by mountains or landscaped courtyard from covered patio/deck.

Centrally located within the residential building, the community room, which will house kitchenfacilities, craft area and multi-purpose room. This area will be the center for "social" activities andresidential gatherings to host speakers from community agencies, participate in medical screeningsand have regular resident's meetings. Outdoor recreational opportunities will also be made availableto the residents by provision of a large screened-in front porch, a central courtyard, picnic areas withpark benches and outdoor sitting areas.

The site will be generously and attractively landscaped with street trees along the roadway,scattered shade and ornamental trees, low maintenance foundation plantings adjacent to thebuilding and lawn areas, and perimeter plantings will be located in and around the building. Our site


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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.

plan maintains a large natural buffer of existing trees and shrubs around the site.

Range with hood, dishwashers, frost-free refrigerator, spacious walk-in closets, coveredpatios/decks, mini blinds, ceiling fans with light fixtures, carpet in living room and bedrooms, vinylfloors in kitchen/dining areas and at front entrance, central heat/air pump.

No


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Briefly describe your site in each of the following categories:

Applicant's Site Evaluation


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

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 western edge of Spindale. Wooded, undeveloped property exists to thewest of the site and residential neighborhoods to the south and east. A 12 unit multifamilydevelopment is located adjacent to the site to the southeast. A walking trail, which connects theTown of Ruth to downtown Spindale is located approximately 0.2 miles to the west. Numerouschurches are scattered througout the adjacent neighborhoods. The area's major commercial/retail

corridor is located approximately 0.5 miles to the southwest of the property. Sparks Crossing, anage-restrictive retirement community, is being developed to the northwest of the site. Primecommercial/retail land has recently become available at the intersection of West Street and HWY74A to the west.

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 similaroperations, sources of excessive noise, and sites with environmental concerns (such as odors orpollution). Amount and character of vacant, undeveloped land.The site is located adjacent to a single family neighborhood to the south and east. A 12 unitapartment complex is located to the southeast of the site. The site is zoned for multifamily. KeynoldsCreek is located to the west, no wetlands were observed during the site assessment. An age

restrictive community (Sparks Crossing) is being developed to the northwest of the site. A sewermain is located on the property along the Keynolds Creek. The site plan indicates that we are notgoing to impact the creek or adjacent sewer. No incompatible uses were observed during siteassessment.

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.Our access is located directly across from Westwood Street, which intersects with West Street.West Street is a 24' wide, two lane road. Our elderly 48 unit development will not contribute greatlyto the daily traffic count on West Street. West Street has no sharp curves or poor visibility sectionswith regards to our entrance. Our drive will be curved and rising to add to the visibility and visualappeal. Our drive will be looped throughout to allow easy access and circulation. The centralentrance is a covered area for easy accessibility for cars and mass transit vehicles. RutherfordCounty Transit is available and depending on our usage and needs, the site would become a daily

stop.

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).Keynolds Creek makes up the western property boundary. City and county maps indicate noadjacent floodplain. Our current site layout is leaving a minimum 50ft. buffer from the creek's edge.The slope of this site was considered in the design and budget of this development.

Similarity of scale and aesthetics/architecture between project and surroundings.

The current site layout and single two-story structure, along with the exterior design of multiplerooflines with gables and varying heights of brick, will add to the visual appeal within theneighborhood.

Grocery Store0.5 Community/Senior Center1.2


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Other facilities or services:

Mall/Strip Center0.5 Hospital2.0

Outdoor Athletic Fields0.5 Pharmacy0.5

Day Care/After School0.1 Basic Health Care1.2

Schools0.5 Medical Offices2.0

Public Transportation Stop0.0 Bank/Credit Union0.8

Convenience Store0.5 Restaurants0.5

Basketball/Tennis Courts0.5 Professional Services0.8

Public Parks1.2 Movie Theater5.0

Gas Station0.5 Video Rental0.5

Library1.2 Public Safety (Fire/Police)0.8

Fitness/Nature Trails1.0 Post Office0.7

Public Swimming Pools


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Project Operations (Year One)

Projected Operating Costs

Administrative Expenses

Advertising 2,000

Office Salaries 19,008

Office Supplies 1,200

Office or Model Apartment Rent

Management Fee 27,648

Manager or Superintendent Salaries

Manager or Superintendent Rent Free Unit

Legal Expenses (Project)

Auditing Expenses (Project) 3,500

Bookkeeping Fees/Accounting Services

Telephone and Answering Service 2,250

Bad Debts

Other Administrative Expenses (specify):

Credit Bureau,Cablevision,Tenant Activities, Postage,Christmas Gifts,Tax Consulting, Magistrate Fees2,660

SUBTOTAL 58,266

Utilities Expense

Fuel Oil

Electricity (Light and Misc. Power) 7,200

Water 540

Gas

Sewer 180

SUBTOTAL 7,920

Operating and Maintenance Expenses

Janitor and Cleaning Payroll

Janitor and Cleaning Supplies

Janitor and Cleaning Contract

Exterminating Payroll/Contract

Exterminating SuppliesGarbage and Trash Removal 5,000

Security Payroll/Contract

Grounds Payroll

Grounds Supplies

Grounds Contract 12,000

Repairs Payroll 10,000

Repairs Material 7,000

Repairs Contract 5,000

Elevator Maintenance/Contract 3,200

Heating/Cooling Repairs and Maintenance 1,000

Swimming Pool Maintenance/Contract

Snow Removal 1,000Decorating Payroll/Contract 8,000

Decorating Supplies 4,500

Other (specify):

Miscellaneous Operating & Maintenance Expenses

SUBTOTAL 56,700

Taxes and Insurance

Real Estate Taxes 26,000

Payroll Taxes (FICA)


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Miscellaneous Taxes, Licenses and Permits

Property and Liability Insurance (Hazard) 10,000

Fidelity Bond Insurance

Workmen's Compensation

Health Insurance and Other Employee Benefits

Other Insurance:

SUBTOTAL 36,000Supportive Service Expenses

Service Coordinator

Service Supplies

Tenant Association Funds

Other Expenses (specify):

SUBTOTAL 0

Reserves

Replacement Reserves 12,000

SUBTOTAL 12,000

TOTAL OPERATING EXPENSES 170,886

ADJUSTED TOTAL OPERATING EXPENSES(Does not include taxes, reserves and resident support services) * 132,886

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

48

PER UNIT PER YEAR 2,768


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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:

Low Income County:

At least forty percent (40%) of qualified units will be affordable to households with incomes at or below fifty percent (50%) ofcounty median income.

At least forty percent (40%) of qualified units will be affordable to and occupied by households with incomes at or below fiftypercent (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 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)

Documents

Creekside Crossing Apartments