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

Project Description
Project Name: Western Manor
Address: 3310 Keller Andrews Road

City: Sanford County: Lee Zip: 27330

Census Tract: 301 Block Group: 5064

Is project in Qualified Census Tract or Difficult to Develop Area? No


Are you requesting the basis boost under section II(E)(4) of the QAP? Yes

Political Jurisdiction: City of Sanford


First:Cornelia Last:
Jurisdiction CEO Name: Title: Mayor
Olive
Jurisdiction Address: 225 Weatherspoon St.

Jurisdiction City: Sanford Zip: 27331

Jurisdiction Phone: (919)775-8348

Site Latitude: 35.4480

Site Longitude: -79.2146

Project Type: New Construction

Is this project a previously awarded tax credit


development?

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:
Number of residents holding Section 8
vouchers:

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

Does a community revitalization plan exist? No


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

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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:

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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: Southland Partners LLC
Address: 131 Matthews Station Street, Suite 2-F

City: Matthews State: NC Zip: 28105


Contact: First: Tom Last:Honeycutt Title:Managing Member

Telephone: (704)321-1526

Alt Phone:

Fax: (704)321-1562

Email Address: southllc@windstream.net


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

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Site Description

Total Site Acreage: 8.42 Total Buildable Acreage: 8.42


If buildable acreage is less than total acreage, please explain:

Identify utilities and services currently available (and with adequate capacity) for this site:

Storm Sewer Water Sanitary Sewer Electric

Is the demolition of any buildings required or planned? Yes


If yes, please describe:
One house on the property, a garage and an outbuilding will be demolished or moved. All buildings semi-
vacant at this time and at the time of transfer will be turned over vacant.

Are existing buildings on the site currently occupied? Yes


If yes:
(a) Briefly describe the situation:
Seller uses the house and garage for storage and some overnights when he is in town. The property is not
leased and no tenant exists. The Seller uses this for temporary purposes and will turn it over vacant at the
time of closing. NO TENANT DISPLACEMENT WILL TAKE PLACE and THE SELLER DOES NOT USE
THIS AS A PERMANENT RESIDENCE.

(b) Will tenant displacement be temporary? No


(c) Will tenant displacement be permanent? Yes

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:

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

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Site Control
Does the owner have fee simple ownership of the property (site/buildings)?No

If yes provide:

Purchase Date: Purchase Price:

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:

(c) Enter the current expiration date of the option/contract to purchase: 10/31/2009

(D) Enter Purchase Price: 720,500

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Zoning
Present zoning classification of the site:R-12

Is multifamily use permitted?No

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?No
If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for
obtaining them:
Application for rezoning to MF-12C, by site plan approval will begin by meeting with the town planning staff
the second week of January, plan submission 2nd week of February, with final approval by the town in late
March, 2009 according to the towns schedule.

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:

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Ownership Entity

Owner Name: Western Manor Housing LLC


Address: 131 Matthews Station St., Suite 2-F
City: Matthews State:NC Zip: 28105

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 or members.
Click [Add] to add additional partners, members, and principals.

Org: Southland Partners LLC


First Name: Tom Last Name: Honeycutt Function: Managing Member
Address: 131 Matthews Station St., Suite 2-F
City: Matthews State: NC Zip: 28105

Phone: (704)321-1526 Fax: (704)321-1562

EMail: southllc@windstream.net Nonprofit: No

Org: Thomas W. Honeycutt


First Name: Tom Last Name: Honeycutt Function: Principal
Address: 131 Matthews Station St., Suite 2-F
City: Matthews State: NC Zip: 28105

Phone: (704)321-1526 Fax: (704)321-1562

EMail: southllc@windstream.net Nonprofit: No

Org: Gary D. Ellis


First Name: Danny Last Name: Ellis Function: Principal
Address: 2021 Cross Beam Drive
City: Charlotte State: NC Zip: 28217

Phone: (704)357-6000 Fax: (704)357-1881

EMail: dellis@gemmanagement.net Nonprofit: No

Org: Melvin B. Melton


First Name: Mel Last Name: Melton Function: Principal
Address: 2021 Cross Beam Drive
City: Charlotte State: NC Zip: 28217

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Phone: (704)357-6000 Fax: (704)357-1881

EMail: mmelton@gemmanagement.net Nonprofit: No

Org: Timothy L. Gunderman


First Name: Tim Last Name: Gunderman Function: Principal
Address: 2021 Cross Beam Drive
City: Charlotte State: NC Zip: 28217

Phone: (704)357-6000 Fax: (704)357-1881

EMail: tgunderman@gemmanagement.net Nonprofit: No

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Unit Mix
The Median Income for Lee county is $55,000.

Low Income Units

Total # Monthly Utility Mandatory **Total


Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.

Gdn Apt 1 610 30 2 425 74 0 499

Gdn Apt 1 610 30 1 490 74 0 564

Gdn Apt 2 950 14 1 522 88 0 610

Gdn Apt 2 950 14 1 590 88 0 678

Utilities included in rents: Water/Sewer Electric Gas Other

Employee Units (will add to Low Income Unit total)

Total # Monthly Utility Mandatory **Total


Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.

Utilities included in rents: Water/Sewer Electric Gas Other

Market Rate Units

Total # Monthly Utility Mandatory **Total


Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.

Utilities included in rents: Water/Sewer Electric Gas Other

Statistics

All Gross Monthly


Units Units Rental Income

Low Income....... 88 5 43018

Market Rate.......

Totals............... 88 5 43018

Proposed number of residential buildings: 1 Maximum number of stories in buildings: 2

Project Includes:
Separate community building - Sq. Ft. (Floor Area):

Community space within residential bulding(s) - Sq. Ft. (Floor Area):


2,400

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Elevators - Number of Elevators: 1

Square Footage Information

Gross Floor Square Footage: 82,740

Total Net Sq. Ft. (All Heated Areas): 78,800

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: 10

Number of Units Required: 10


Persons with disabilities or homeless populations.

Number of Units: 0

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.

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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 Units %

1 30 targeted at 50 percent of median income affordable to/occupied by

1 30 targeted at 60 percent of median income affordable to/occupied by

2 14 targeted at 50 percent of median income affordable to/occupied by

2 14 targeted at 60 percent of median income affordable to/occupied by

Total Low Income Units: 88

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

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Funding Sources

Amort. Annual
Non- Rate Term Period Debt
Source Amount Amortizing* (%) (Years) (Years) Service

Bank Loan 0

RPP Loan 460,000 2.00 20 20 27,925

Local Gov. Loan - Specify: 0

RD 515 Loan 0

RD 538 Loan - Specify: 0

AHP Loan 0

Other Loan 1 - Specify: 0

Other Loan 2 - Specify: 0

Other Loan 3 - Specify: 0

Tax Exempt Bonds 0

State Tax Credit(Loan) 2,476,143 0 30 30 0

State Tax Credit(Direct Refund) 0

Equity: Federal LIHTC 7,799,070

Non-Repayable Grant 0

Equity: Historic Tax Credits 0

Deferred Developer Fees 1,224

Owner Investment 0

Other - Specify: 0

Total Sources** 10,736,437

* "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. 70

Remarks concerning project funding sources:


(Please be sure to include the name of the funding source(s))

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We anticipate selling these credits to CAHEC for BB&T.

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Development Costs
Eligible Basis
Item Cost Element TOTAL COST
30% PV 70% PV
1 Purchase of Building(s) (Rehab / Adaptive Reuse only) 0

2 Demolition (Rehab / Adaptive Reuse only) 0 0

3 On-site Improvements 1,100,000 1,040,000

4 Rehabilitation 0 0

5 Construction of New Building(s) 5,192,000 5,192,000

6 Accessory Building(s) 0 0

7 General Requirements (max 6% lines 2-6) 377,521 377,521

8 Contractor Overhead (max 2% lines 2-7) 133,390 133,390

9 Contractor Profit (max 8% lines 2-7; 6% if Identity of Interest) 544,233 544,233

10 Construction Contingency (max 5% lines 2-9, Rehabs 10%) 204,087 204,087

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 112,000 112,000

12 Architect's Fee - Inspection 15,000 15,000

13 Engineering Costs 44,000 44,000

SUBTOTAL (lines 1 through 13) 7,722,231

14 Construction Insurance (prorate) 80,158 80,158

15 Construction Loan Orig. Fee (prorate) 74,599 74,599

16 Construction Loan Interest (prorate) 596,789 596,789

17 Construction Loan Credit Enhancement (prorate) 0 0

18 Construction Period Taxes (prorate) 3,500 3,500

19 Water, Sewer and Impact Fees 105,600 105,600

20 Survey 18,000 18,000

21 Property Appraisal 8,500 8,500

22 Environmental Report 4,000 4,000

23 Market Study 4,300 4,300

24 Bond Costs 0

25 Bond Issuance Costs 0

26 Placement Fee 0

27 Permanent Loan Origination Fee 0

28 Permanent Loan Credit Enhancement 0

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29 Title and Recording 0

SUBTOTAL (lines 14 through 29) 895,446

30 Real Estate Attorney 23,000 23,000

31 Other Attorney's Fees 20,000 20,000

32 Tax Credit Application Fees (Preliminary and Full) 2,300

33 Tax Credit Allocation Fee (0.62% of line 60, minimum $7,500) 59,046

34 Cost Certification / Accounting Fees 4,950 4,950

35 Tax Opinion 2,000

36 Organizational (Partnership) 0

37 Tax Credit Monitoring Fee 61,600

SUBTOTAL (lines 30 through 37) 172,896

38 Furnishings and Equipment 88,000 88,000

39 Relocation Expense 0 0

40 Developer's Fee 800,000 800,000

41 Additional Contigency (greater of $500/unit or $30,000) 30,000 30,000

42 Other Basis Expense (specify) 0 0

43 Other Basis Expense (specify) 0 0

44 Rent-up Expense 20,000

45 Other Non-basis Expense (specify) sewer easement 40,000

46 Other Non-basis Expense (specify) 0

SUBTOTAL (lines 38 through 45) 978,000

47 Rent up Reserve 26,400

48 Operating Reserve 220,964

49 Other Reserve (specify) 0

50 Other Reserve (specify) 0

51 DEVELOPMENT COST (lines 1-49) 10,015,937 0 9,523,627

52 Less Federally Funded Grant 0 0

53 Less Disproportionate Standard 0 0

54 Less Nonqualified Nonrecourse Financing 0 0

55 Less Historic Tax Credit 0 0

56 TOTAL ELIGIBLE BASIS 9,523,627 0 9,523,627

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

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58 Basis Before Boost 9,523,627 0 9,523,627

59 Basis Boost of up to 130% 100.00% 130.00%

60 TOTAL QUALIFIED BASIS 12,380,715 0 12,380,715

61 Tax Credit Rate 3.50 9.00

62 Federal Tax Credits (maximum $1,300,000) 1,114,264 0 1,114,264

63 Federal Tax Credits Requested (if less than line 62) 1,114,264 0 1,114,264

64 Land Cost 720,500

65 TOTAL REPLACEMENT COST 10,736,437

FEDERAL TAX CREDITS IF AWARDED 1,114,264

Comments:
Land cost and offsite sewer justify the credit boost. See attachments which address this issue.

Project Development Cost per unit 59,000

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Market Study Information


Please provide a detailed description of the proposed project:
Western Manor is proposed as an 88 unit independent living facility for rent to the elderly, 55 and older. It
will consist of 60 one bedroom one bath units and 28 two bedroom 2 bath units, all kitchens, living and
storage areas, and located in one, 2 story elevator building. Community space is also provided for use by
the residents.

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?Yes
If yes, please provide name and address:
Willow Ridge, Morganton, NC

Site Amenities:
Sitting areas inside and out, multipurpose room for library area and TV viewing, computer center, storage,
gazebo, and covered drive though entry.

Onsite Activities:
Services will be arranged by management based on resident needs. Other social activities will be planned
as demand dictates.

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Landscaping Plans:
The site will be well landscaped, at least $400 per unit for plantings.

Interior Apartment Amenities:


frost free refrigerator with ice maker, stove, hood, HVAC, washer dryer connections, pantry, Dishwasher,
carpet, vinyl floor covering in baths and kitchens, ceiling fan

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.

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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 in the immediate vicinity. Concentration of affordable housing.
Trend in the area shows continued growth around the hospital, located about one mile away in the form of
medical services. Single family housing has slowed in the general area surrounding the location but the
shopping center 1 mile south on HW 1 is adding a drug store. There is limited if any affordable housing in
the immediate vicinity.

SURROUNDING LAND USES AND AMENITIES

Land use pattern is residential in character (single and multifamily housing). Extent that the location is
isolated. 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. Surrounding land uses are schools, parks, open land, residential,
retail and some commercial with the hospital and other medical services 1/2 to 1 mile away. No effects from
large scale institutional or other uses. The highway which borders the site is not high traffic and the site is
situated well above the road bed and buffered by trees. Some vacant land is still available in the general area
which will continue its current use or become more residential in character.
SITE SUITABILITY

Adequate traffic safety controls (i.e. stop lights, speed limits, turn lanes). 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. Keller Andrews has adequate controls for the uses proposed and existing.
This is a low traffic street accept during school beginning and ending hours. Our elderly site will not be a big
traffic generator. The building will be visible in all directions, from the highway in both directions since we will
present a higher and prominent facade, and from Keller Andrews.
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).
Off site and additional land use costs are necessary in order to get sewer to the development, in addition to
the somewhat high land cost due to the excellent location. While these are not necessarily negative
features, without the credit boost which is now available where the agency deems necessary, this site could
not have been considered before. Given the available sites in the area this one is very good.

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


The building will fit fine due to its residential character and the relationship of the buiding on the site and
distance from other structures.

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

1 Grocery Store 4 Community/Senior Center

1 Mall/Strip Center 1 Hospital

2 Outdoor Athletic 1 Pharmacy


Fields

2 Day Care/After 1 Basic Health Care


School

2 Public Transportation
.1 Schools
Stop

.5 Convenience Store .5 Public Parks

.5 Gas Station 4 Library

Other facilities or services:


parks, public and private schools, department of motor vehicles and Sanford downtown area are all close by
with 1 to 5 miles.

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Preliminary App Checklist

The following enclosures must be submitted along with your signed preliminary application. Some enclosures are required only under
certain conditions. Please check each applicable item to indicate that you understand the enclosure requirements and will enclose the
correct supporting documentation with your application.

Fee Payment
Check in the amount of $5,450.00 made payable to North Carolina Housing Finance Agency.
Tab A - Preliminary Application
Printed, signed copy of preliminary application generated from online system.
B - Map/Driving Instructions
A local map clearly identifying the location of the Site and detailed directions to the Site. Current City or County maps are preferred
– internet maps and directions are not acceptable. Applicant must also provide a map identifying the amenities listed in section IV
(A)(1)(b)(ii) of the QAP and their proximity to the site.

Applicant must provide a sign and boundary markers to clearly identify the road frontage of the site. The sign identifying the site
should read “SITE” with a minimum size of 11x17.
C - Community Revitalization Plan
Applicant should provide a map identifying the subject site within the Plan area (if applicable).
D - Evidence of Site Control
Provide valid option/contract or warranty deed and plot plan.
E - Site Plans/Scope of Work
Preliminary site plan, floor plans and elevations for all projects, interior and exterior photographs and detailed scope of work for
Adaptive Reuse and Rehab projects. Site and floor plans should be no larger than 11x17 and must be produced by a licensed
architect or engineer.
F - Information Package for Market Analysts
This section must include copies of items required in Tabs A, B, E and G (site and floor plans should be no larger than 11x17) and
can include any additional market information such as preliminary market studies the applicant would like to provide to the
Analysts.
G - Rent Roll (Rehabs only)
Provide the current rent roll for the property and indicate which units (if any) are receiving rental assistance.
H - Documentation for Basis Boost
Applicant should provide an appraisal and/or standard geological survey to support a request for the basis boost (if applicable).

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