FEASIBILITY STUDY - Homes study feasibility study ... laundry mech 1 hallway line of soffit above...

FEASIBILITY STUDY

Conceptual Site Plan & Floor Plans

Summary of Code & Zoning Research

Preliminary Delivery Assessment Report

Conceptual BluServ Plus Project Estimate

Blu Financing Guide

Mare Island, CA | Agoura Hills, CA | Redwood City, CA | 866.887.7997 | [email protected] | CA CSLB#963352

CONTENTS

SITE PLANS &

FLOO

R PLANS

Conceptual SITE PLAN & FLOOR PLANS

DG DRIVEWAY

NEW UTILITY TRENCH ( 50' )

REMAINDER BY OWNER

(WATER & ELEC.)

APPROVED SEPTIC

FIELD LOCATION

PROPANE TANK

FIRE TRUCK

TURN AROUND

20' S

ID

E S

ET

BA

CK

2

0

'

R

E

A

R

S

E

T

B

A

C

K

2

0

'

R

E

A

R

S

E

T

B

A

C

K

20' S

ID

E S

ET

BA

C

K

20' F

RO

NT

SE

TB

AC

K

C

O

N

G

R

E

S

S

V

A

LLE

Y

R

O

A

D

N

HATCH LEGEND

CUSTOMIZATION

SITE BUILT

BLU STANDARD

REMOVED ELEMENTS

A010-1

SITE SKETCH

Scale: 1" = 50'-0"

SITE SKETCH

1

12

45

N

IM

IT

Z A

VE

MA

RE

IS

LA

ND

, C

A 9

45

92

T: 8

86

-8

87

-7

99

7

ww

w.b

lu

ho

me

s.co

m

SHEET NUMBER:

This docum

ent is intended for the singular view

of the party to w

hich B

lu H

om

es has presented it. A

ny copying, distribution, or otherw

ise sharing of the text, im

ages, or data therein expressed of this docum

ent is a violation of the term

s to w

hich said party has im

plicitly agreed upon by accepting this docum

ent. 2015©

A

LL R

IG

HT

S R

ES

ER

VE

D

SHEET TITLE:

SU

BM

IT

TA

L:

RE

SID

EN

CE

BLU PRODUCT(S):

** SEE SHEET G000-3 FOR COMPLETE BLU HOMES AND

PROJECT CONSULTANT CONTACT INFORMATION**

®

BLU HOMES:

RE

V:

DA

TE

:D

RA

WN

:D

ES

CR

IP

TIO

N:

CH

EC

KE

D:

SALES:

MANAGER:

A&E:

00

7/2

0/1

5A

SIN

IT

IA

L C

LIE

NT

R

EV

IE

WA

S

BR-X-15, GA-W

Print Size: ANSI A (8.50 X 11.00 Inches)

FEASIBILITY

STUDY

FE

AS

IB

ILIT

Y S

TU

DY

TOPOGRAPHICAL INFORMATION IS

ESTIMATED. SITE SURVEY IS

REQUIRED TO VERIFY.

BREEZE HOUSE: 3,118 SQ FT

CRAWLSPACE: 3,118 SQ FT

DECKING: 370 SQ FT

M

O

D

A

M

O

D

C

M

O

D

B

W

-

G

A

DG DRIVEWAY

NEW UTILITY TRENCH ( 50' )

REMAINDER BY OWNER

(WATER & ELEC.)

PROPANE TANK

FIRE TRUCK TURN AROUND

20' S

ID

E S

ET

BA

CK

N

HATCH LEGEND

CUSTOMIZATION

SITE BUILT

BLU STANDARD

REMOVED ELEMENTS

A011-1

ENLARGED SITE SKETCH

Scale: 1" = 10'-0"

ENLARGED SITE SKETCH

1

12

45

N

IM

IT

Z A

VE

MA

RE

IS

LA

ND

, C

A 9

45

92

T: 8

86

-8

87

-7

99

7

ww

w.b

lu

ho

me

s.co

m

SHEET NUMBER:

This docum


of the party to w

hich B

lu H

om






s to w



ent. 2015©

A

LL R

IG

HT

S R

ES

ER

VE

D

SHEET TITLE:

SU

BM

IT

TA

L:

RE

SID

EN

CE

BLU PRODUCT(S):



®

BLU HOMES:

RE

V:

DA

TE

:D

RA

WN

:D

ES

CR

IP

TIO

N:

CH

EC

KE

D:

SALES:

MANAGER:

A&E:

00

7/2

0/1

5A

SIN

IT

IA

L C

LIE

NT

R

EV

IE

WA

S

BR-X-15, GA-W


FEASIBILITY

STUDY

FE

AS

IB

ILIT

Y S

TU

DY



REQUIRED TO VERIFY.



DECKING: 370 SQ FT

FL

OO

R S

EA

M A

BO

VE

FLOOR SEAM ABOVE

MOD A

ABOVE

MOD C

ABOVE

LINE OF DECK ABOVE

LINE OF DECK ABOVE

FLOOR SEAM ABOVE

FL

OO

R S

EA

M A

BO

VE

MOD B

ABOVE

GARAGE

SLAB ON

GRADE

ABOVE

UNCONDITIONED

CRAWLSPACE

UNCONDITIONED

CRAWLSPACE

UNCONDITIONED

CRAWLSPACE

Scale: 1/4" = 1'-0"

FOUNDATION PLAN

1

12

45

N

IM

IT

Z A

VE

MA

RE

IS

LA

ND

, C

A 9

45

92

T: 8

86

-8

87

-7

99

7

ww

w.b

lu

ho

me

s.co

m

SHEET NUMBER:

This docum


of the party to w

hich B

lu H

om






s to w



ent. 2015©

A

LL R

IG

HT

S R

ES

ER

VE

D

SHEET TITLE:

SU

BM

IT

TA

L:

RE

SID

EN

CE

BLU PRODUCT(S):



®

BLU HOMES:

RE

V:

DA

TE

:D

RA

WN

:D

ES

CR

IP

TIO

N:

CH

EC

KE

D:

SALES:

MANAGER:

A&E:

00

7/2

0/1

5A

SIN

IT

IA

L C

LIE

NT

R

EV

IE

WA

S

BR-X-15, GA-W


FEASIBILITY

STUDY

FE

AS

IB

ILIT

Y S

TU

DY

A110-1

FOUNDATION PLAN

N

HATCH LEGEND

CUSTOMIZATION

SITE BUILT

BLU STANDARD

REMOVED ELEMENTS



REQUIRED TO VERIFY.



DECKING: 370 SQ FT

0 8'2' 4'

1/4" = 1'

MOD B

1

A211-1

LIVING ROOM

DINING ROOM

MOD C

LINE OF

SOFFIT

ABOVE

NLGD

16080

NLGD

4380S

NLGD

16080

NLGD

4380S

(R:NLGD 16080)

NANA UPGRADE

NLGD

4380S

NLGD

4380S

2

A210-1

2

A211-1

A2

A1

A1

A2

A2

CL 3

CL 2

BEDROOM 3

LAUNDRY

MECH 1

HALLWAY

MOD C

LINE OF

SOFFIT

ABOVE

LINE OF

SOFFIT

ABOVE

(R:NLGD 16080)

NANA UPGRADE

CLRSTRY

CLRSTRY

CLRSTRY

CLRSTRY

M4

CLRSTRY

M4

CLRSTRY

1

A210-1

A2

A1

CL 1

CL 4

M. BEDROOM 1

BEDROOM 2

MOD A

LINE OF

SOFFIT

ABOVE

CLRSTRY

CLRSTRY

CLRSTRY

MASTER BATH OPTION 2:

WALK-IN SHOWER &

OPEN ALCOVE

BATH 1

KITCHEN OPTION:

L-UPGRADE

PROFESSIONAL PLUS

APPLIANCE PACKAGE

ENTRY ROOM

OPTION 2:

ADDITIONAL

BEDROOM

(R: M1R)

(R: M1R)

BATH 3:

OPTION 1 FULL

HALL OPTION 2:

CASEWORK

BATH 2 OPTION 1:

CABINETRY/SINKS

UPGRADE

BATH 2

ADD SWING

GLASS DOOR

CEDAR DECKING

CEDAR DECKING

ADD RADIANT

HEATING

ADD SWING

GLASS DOOR

M2C3

C1L

C2R

C2L

C2R

C2L

M1R

M1L

C2L

S100

16'X7' PREMIUM

FLUSH DOOR

S8000+

S810SL

CONC. PAD

CONC. APRON

DG DRIVEWAY

W-SERIES

GARAGE

Scale: 1/4" = 1'-0"

ENTRY LEVEL PLAN

1

N

HATCH LEGEND

CUSTOMIZATION

SITE BUILT

BLU STANDARD

REMOVED ELEMENTS



REQUIRED TO VERIFY.



DECKING: 370 SQ FT

A120-1

ENTRY LEVEL FLOOR

PLAN

12

45

N

IM

IT

Z A

VE

MA

RE

IS

LA

ND

, C

A 9

45

92

T: 8

86

-8

87

-7

99

7

ww

w.b

lu

ho

me

s.co

m

SHEET NUMBER:

This docum


of the party to w

hich B

lu H

om






s to w



ent. 2015©

A

LL R

IG

HT

S R

ES

ER

VE

D

SHEET TITLE:

SU

BM

IT

TA

L:

RE

SID

EN

CE

BLU PRODUCT(S):



®

BLU HOMES:

RE

V:

DA

TE

:D

RA

WN

:D

ES

CR

IP

TIO

N:

CH

EC

KE

D:

SALES:

MANAGER:

A&E:

00

7/2

0/1

5A

SIN

IT

IA

L C

LIE

NT

R

EV

IE

WA

S

BR-X-15, GA-W


FEASIBILITY

STUDY

FE

AS

IB

ILIT

Y S

TU

DY

0 8'2' 4'

1/4" = 1'

M1R

M4

M2

C4

MOD C

MOD B

MOD A

105107

A1 A1

106

(R:NLGD 16080)

NANA UPGRADE

NLGD

4380S

NLGD

4380S

16'X7' PREMIUM

FLUSH DOOR

CEDAR SIDING HARDIE PANEL ACCENTS CEDAR SIDINGHARDIE PANEL ACCENTS CEDAR SIDING HARDIE PANEL ACCENTS

A2A2A1

MOD A MOD C

C1L

C2LC2R

MOD B

CEDAR SIDING HARDIE PANEL ACCENTS CEDAR SIDING

HARDIE PANEL ACCENTS

OUTLINE OF GARAGE ON

OPPOSITE SIDE OF HOUSE

S100

CEDAR SIDING

Scale: 1/4" = 1'-0"

FRONT ELEVATION (EAST)

1

Scale: 1/4"=1'-0"

SIDE ELEVATION (SOUTH)

2

12

45

N

IM

IT

Z A

VE

MA

RE

IS

LA

ND

, C

A 9

45

92

T: 8

86

-8

87

-7

99

7

ww

w.b

lu

ho

me

s.co

m

SHEET NUMBER:

This docum


of the party to w

hich B

lu H

om






s to w



ent. 2015©

A

LL R

IG

HT

S R

ES

ER

VE

D

SHEET TITLE:

SU

BM

IT

TA

L:

RE

SID

EN

CE

BLU PRODUCT(S):



®

BLU HOMES:

RE

V:

DA

TE

:D

RA

WN

:D

ES

CR

IP

TIO

N:

CH

EC

KE

D:

SALES:

MANAGER:

A&E:

00

7/2

0/1

5A

SIN

IT

IA

L C

LIE

NT

R

EV

IE

WA

S

BR-X-15, GA-W


FEASIBILITY

STUDY

FE

AS

IB

ILIT

Y S

TU

DY

A210-1

FRONT & SIDE

ELEVATIONS

Scale: 1/4"=1'-0"

GARAGE SIDE ELEVATION (SOUTH)

3

M4

A2

A2

MOD A

MOD B

MOD C

A1 A1

103

(R:NLGD 16080)

NANA UPGRADE

NLGD

4380S

NLGD

4380S

CEDAR SIDING CEDAR SIDING HARDIE PANEL ACCENTS HARDIE PANEL ACCENTS CEDAR SIDING

C2LC2RC2L

A1A1

MOD C

MOD A

MOD B

CEDAR SIDING HARDIE PANEL ACCENTS CEDAR SIDING

HARDIE PANEL ACCENTS

OUTLINE OF

GARAGE BEHIND

CEDAR SIDING

Scale: 1/4" = 1'-0"

REAR ELEVATION (WEST)

1

Scale: 1/4"=1'-0"

SIDE ELEVATION (NORTH)

2

12

45

N

IM

IT

Z A

VE

MA

RE

IS

LA

ND

, C

A 9

45

92

T: 8

86

-8

87

-7

99

7

ww

w.b

lu

ho

me

s.co

m

SHEET NUMBER:

This docum


of the party to w

hich B

lu H

om






s to w



ent. 2015©

A

LL R

IG

HT

S R

ES

ER

VE

D

SHEET TITLE:

SU

BM

IT

TA

L:

RE

SID

EN

CE

BLU PRODUCT(S):



®

BLU HOMES:

RE

V:

DA

TE

:D

RA

WN

:D

ES

CR

IP

TIO

N:

CH

EC

KE

D:

SALES:

MANAGER:

A&E:

00

7/2

0/1

5A

SIN

IT

IA

L C

LIE

NT

R

EV

IE

WA

S

BR-X-15, GA-W


FEASIBILITY

STUDY

FE

AS

IB

ILIT

Y S

TU

DY

A211-1

REAR & SIDE

ELEVATIONS

Scale: 1/4"=1'-0"

GARAGE SIDE ELEVATION (NORTH)

2

Summary of CODE & ZONING RESEARCH

CO

DE & ZO

NIN

G

RESEARCH

Client Name: Demo of (E) Dwelling? No

Structure(s): Basement: No

Pod(s) New Garage (?) No

Research Specialist: Sales Contact:

Project Lead:

DESIGN CRITERIA RESEARCH7/29/2015

Site Address

City

State

Zip

County

Authority Having Jurisdiction

Latitude: Longitude:

Ridgeline Construction? Elevation (feet)

(E) Sewer Connection? (N) Sewer Lateral Required?

(E) Municipal Water Service? (N) Water Service Required?

(E) Exterior propane tanks? (N) Propane Tank or Agency Gas Required?

(E) Electric Service? (N) Exterior Condenser Installation?

(E) Septic? (N) Back-Up Generator?

(E) Water Rights or Water Access? (N) Photovoltaic?

Residential Code Residential Code

Building Code Building Code

Electrical Code Electrical Code

Energy Code Energy Code

Mechanical Code Mechanical Code

Plumbing Code Plumbing Code

Fire Code Fire Code

Fuel Gas Code Fuel Gas Code

Wildland Urban Interface Regulations Wildland Urban Interface Regulations

Green Bulding Code Green Bulding Code

Green Rating Green Rating

Blower Door Test Required? Blower Door Test Required?

HERS Rater Required? HERS Rater Required?

Other Other

Construction Class Construction Class

Climate Zone / Reference 2 California Residential Code Fire Flow Gallons Per Minute (Fire Code)

Roofing Classification Roofing Classification

Chapter 7A Requirements for Exterior Elements

Required? (Fire Resistive or Ignition Resistant

Materials)

Chapter 7A Requirements for Exterior

Elements Required? (Fire Resistive or

Ignition Resistant Materials)

Impending adoption of new Code? Impending adoption of new Code?

Effective Date? Effective Date?

Government Code Section:

Soils / Geotech Req'd Yes Yes, Geotechnical and Soils Reports. Energy Star Climate Area

Does Initial Permit Submittal Require Wet

Sign/Stamp? For Grading Plans - See

information below.

Secondary Audible Fire Alarm Required?

Fault Lines? Construction Waste Restrictions?

Slide Area? Traffic Control Plan Required

Soil Erosion Mitigation? Encroachment Permit Required

Ground Snow Load 0 Mean Annual Temp 71°F (San Francisco) Termite Damage Level Very Heavy

Frost Line Depth 12" Winter Design Temp 40°F (San Francisco) Weathering Probability Level Negligible

Air Freezing Index <1500 Groundwater Avail. Zone Not Known Radon Mitigation req'd No

Snow/Ice protection req'd No Crane Restrictions Yes

Vapor Barrier Requirement:

CA Notes:

IRC Notes:

No

Additional Design Requirements

California Health & Safety Code §19960 - 19997

Factory - Built

Not Known

Design Criteria

Agency Definition:

2013 California Energy Code w/Amendments

2013 California Mechanical Code w/Amendments

2013 California Plumbing Code w/Amendments

2013 California Fire Code w/Amendments

Not Adopted

YES: Wildfire protection is requierd by local fire protection

jurisdiction. Compliance upgrades to standard Blu details may

include, but are not limited to: exterior gypsum sheathing, tempered

glass in windows and doors, and fire resistive decking.

2013 California Building Code

Not found

VB: Wood frame construction

YesYes

2013 California Electrical Code

Yes: Wildfire protection is required by local fire protection

jurisdiction. Compliance upgrades to Blu details may include, but

are not limited to: exterior gypsum sheathing, tempered glass in

windows and doors, and fire resistive decking.

Not Adopted

2013 California Fire Code

2013 California Plumbing Code

2013 California Mechanical Code

2013 California Green Building Code

NA

Mandatory

Yes Yes

NA

Location Information

No

Yes 177'

=E8138.286438

Congress Valley Road

Napa

CA

No

County of Napa

No

No

Septic Required

Yes

Not Known

Napa

Not Known

No Yes

No

Yes

Not Known

Yes

Class I or II vapor retarders are required on the interior side of frame walls in climate zone 5, 6, 7, 8 and Marine 4 (State of CA climate zones 14 & 16). EXCEPTION: Basement walls,

below grade portion of any wall, or construction where freezing will damage the materials.

2013 California Building Code w/Amendments

Extended Breezehouse

VB: Wood frame construction

No

Local Adopted CodesState Code (For Modular/Factory Built Sections)

2013 California Residential Code

2013 California Green Building Code

Mandatory

2013 California Electrical Code w/Amendments

2013 California Residential Code w/Amendments

2013 California Energy Code

Encroachment Permit Required for all work and/ or storage in Public Right-of-Way

Class A - WUI

Yes

Class A - WUI

Yes

Factory-Built Definition

NA

NA

Where required a capillary break shall be installed in accordance with CalGreen Building Standards Code, Chapter 4, Division 4.5.

Yes

South-Central Climate Zone

Not Found

Not Found

Not Found

NA

NA

6 mil polyethylene or approved vapor retarder with joints lapped not less than 6" shall be placed between concrete floor slab and base course or prepared subgrade where no base

course exists. EXCEPTION: Vapor retarder may be ommitted from garages, utility buildings, and other unheated accessory structures.

7/29/201510:15 AM Page 1





Project Lead:


No



Allowable Wind Speed (CRC / IRC) 85 California Residential Code Water Corrosion Distance (feet) Upgrade?

Wind Exposure Salt Water (<2800) NA No

Do topographic effects exist which would

increase wind speed?Large Bay (<1200) NA NA

Special Wind Region No property is not in one. No impact glazing is required Other Water (<600) NA NA

Wind Borne Debris Region (See Fig. 301.2(4) IRC) No No impact glazing is required

Plywood Panels Allowed

Additional Engineering/Reinforcement required

due to wind speed in excess of 130 MPH?

FEMA Flood Determination Soil Classification D - Stiff Soil (Default) Value is: Assumed

Fema Map Number / Panel Number 06055C0512E 512 of 650 Seismic Design Category

FEMA Flood Elevation (if provided FEMA on

Panel)Ss / Sds 1.902 1.268

Design Flood Elevation (DFE) S1 / Sd1 0.689 0.689

Height above DFE No

Contact Name Contact Name

Phone / Fax Phone / Fax

E-mail E-mail

Website Website

Address Address

City, State & Zip City, State & Zip

Office Hours Office Hours

Estimated Permitting Time: Estimated Permitting Time:

Expedited Permitting Available? What is the

cost?

No - Expedited Review

not an option

Expedited Permitting Available? What is the

cost?

No - Expedited Review not

an option



E-mail E-mail

Website Website

Address Address






E-mail E-mail

Website Website

Address Address




1195 Third Street, Second Floor

Monday to Friday 8:00 a.m. - 4:15 p.m. Monday to Friday 8:00 a.m. - 4:15 p.m.

Napa County Fire

707-299-1460

Napa, CA 94559

Not available

Monday to Friday 8:00 a.m. - 5:00 p.m.

Not available

[email protected] [email protected]

Environmental Health Department

707-253-4417

No - No additional engineering required.

707-253-4471

Napa, CA 94559

Environmental Health Department / Division Contact Information

www.countyofnapa.org/PBES/PlanDocs

Not available

www.countyofnapa.org/pages/departmentcontact.aspx?id=4294 www.countyofnapa.org/PBES/Environmental/Contact


Not available

Napa, CA 94599 Napa, CA 94559

Monday to Friday 8:00 a.m. - 4:15 p.m.

Not available

Building Department

Public Works Department / Division Contact Information Sewer Department / Division Contact Information

NA - parcel will be served by septic system

707-257-9520

[email protected]

www.cityofnapa.org/index.php?option=com_content&view=article&id=191&Itemid=249

1600 First Street

Napa, CA 94559

Flood Zone Information

NA

Water Related Information

Completed after hydraulic analysis through design process by

Engineer.

Seismic Design Category

Building Department / Division Contact Information Planning Department / Division Contact Information

Yes, Structure to be located on a hill, ridge or escarpment.

Further evaluation required.

To be determined by Engineer of Record

Fire Department / Division Contact Information

The stiff soil classification type is chose as the default unless the applicable soil classification is known at the time

of the Design Criteria is determined.


Napa County Building Dept. Website

Planning Department

Wind Related Information

C - Open terrain with scattered obstructions…

No

X: A non-special flood hazard area that is in a moderate to low risk

flood zone and not in any immediate danger from flooding caused by

overlowing rivers or hard rains.

Napa Public Works Department

707-253-4417

[email protected] [email protected]

D

Additional Engineering/Reinforcement Required?

Flood hazard areas identified on the Flood Insurance Rate Map are identified as a Special Flood Hazard Area (SFHA).

SFHA are defined as the area that will be inundated by the flood event having a 1-percent chance of being equaled

or exceeded in any given year. The 1-percent annual chance flood is also referred to as the base flood or 100-year

flood. SFHAs are labeled as Zone A, Zone AO, Zone AH, Zones A1-A30, Zone AE, Zone A99, Zone AR, Zone AR/AE,

Zone AR/AO, Zone AR/A1-A30, Zone AR/A, Zone V, Zone VE, and Zones V1-V30. Moderate flood hazard areas,

labeled Zone B or Zone X (shaded) are also shown on the FIRM, and are the areas between the limits of the base

flood and the 0.2-percent-annual-chance (or 500-year) flood. The areas of minimal flood hazard, which are the

areas outside the SFHA and higher than the elevation of the 0.2-percent-annual-chance flood, are labeled Zone C or

Zone X (unshaded).

1125 Third Street, Hall of Justice, 2nd Floor

Not available

7/29/201510:15 AM Page 2





Project Lead:


No





E-mail E-mail

Website Website

Address Address




Additional Comments

NA NA - parcel will be served by well/spring

Coastal Body Department / Division Contact Information Water Department / Division Contact Information

Building codes and planning requirements, access to these requirements, and local interpretations of them vary greatly by jurisdiction (i.e. City, County, homeowners' association). Blu has made an attempt to collect readily available material and to contact

your authority(is) having jurisdiction (AHJ) for interpretations and missing information; however, not all information pertinent to the feasibility of the project may have been available prior to the completion of the Feasibility Study.

This research is subject to modification based upon changes made by the AHJ, or information not available at the time of the initial study and the Client shall not make use of said research other than in connection with the Client's project with Blu Homes.

The Zoning and Design Criteria research does not include (1) presentation of the conceptual design to the local jurisdiction for preliminary determination of feasibility and conformity to local requirements; (2) presentation to any applicable homeowners'

associations (HOA); or (3) Occupational Safety and Health Administration (OSHA) worksite safety regulations.

This Zoning and Design Criteria Research document has been prepared for the noted parcel. It is intended as a general guide to the design parameters typically encountered in most jurisdictions and serves as the basis for the attached conceptual design.

Fields highlighted in green are items that potentially increase project cost as required by the Authorit(ies) having jurisdiction (AHJ)

7/29/201510:15 AM Page 3

Client Name: Demo of (E) Dwelling?

Structure(s): New Basement (?)

Pod(s) New Garage(?)


Project Lead:

7/9/2015

Site Address

City Napa State: CA Zip:

County

Authority Having Jurisdiction

Subdivision NA Neighborhood Area NA APN

Legal Description Lot/Platt

Map # NA Map Description NA Land Use Type

Lot Area in Acres Lot Area in Square Feet

Occupancy Class Construction Class

Base Zoning Combining District

Specific Plan Area Planned Development

Requirement Requirement

Min. Lot Area Max. Impervious Area

Min. Lot Frontage Unit Density (Qty./Acres)

Min. Lot Depth # Parking Spaces (Cov/Uncov.)

Min. Front Setback Min. Parking Area (Width/Length)

Min. Side Setback Parking Requirements

Min. Side/Street Setback Parking Surface Requirements

Min. Rear Setback Driveway Width / Max. Slope 10' min.

Max. Floor Area (FAR) Sprinkler Protection

Max. Development Area Design Review or Equivelant?

Min. Lot Open SpaceWet Signed/Stamped Plans

Required for Design Review?

Max. Height Story Poles Required

Max. Lot Coverage Daylight Plane


Min. Front Setback Min. Front Setback

Min. Side Setback Min. Side Setback

Min. Side/Side Street Setback Min. Side/Side Street Setback

Min. Rear Setback Min. Rear Setback

Max. Floor Area Max. Floor Area

Max. Building Height Max. Building Height

Number Allowed # Parking Spaces (Cov/Uncov.)

Distance fom Main Dwelling Distance from Primary Dwelling

Distance to Dwellings on Adjacent

Lots


Min. Front Setback Min. Rear Setback

Min. Side Setback Max. Building Height

Min. Side/Street Setback # Parking Spaces (Cov/Uncov.)

Max. Floor Area

Building Height Definition:

Maximum Building Height is the measurement taken from the mid-point of the cord of the roof to

existing grade or to finished grade.

20'

Not applicable

*See Note #1.

Local

20' * See Note #1 & #2.

20' * See Note #1 & #2.

1,000 sf

NANA

Zoning Requirements - Accessory Structures Zoning Requirements - Additional Dwelling Units


Congress Valley Road

Napa

County of Napa

10.28

Agriculture

447,797 sf

NA NA

R-3: Single Family Construction

AW - Agricultural Watershed

NOTE - if development of this parcel occurs on slopes that are

15% or greater the project must conform to the provisions of the

Viewshed Protection Program.

* See Note #3.

No

No

Zoning Requirements - Primary Residence

160 Acres

Local

No

ZONING RESEARCH

TypeVB (Wood Frame, Unprotected)


No

Not found

Not applicable

35' * Please review Viewshed Protection Program document to

ensure conformance w/regulations.

* See Note #3.

4 Off-street parking spaces - covering not specified.

9' x 19'

Not applicable

Min. 5" of Class II aggregate base and either a 2" asphalt

concrete or double sealcoat.

Max slope 15%.

Not applicable

Local

50' * See Note #1 & #2.

Not applicable

20'

20'

Not applicable

20'

Not applicable

Not applicable

15'

Not applicable

Yes

Yes. Site Plan Approval is REQUIRED. See attached application

materials.

No

20' * See Note #1 & #2.

Story poles and additional visual analysis studies will be required

if the project is sited in a manner that meets viewshed criteria.

No

50' * See Note #1 & #2.

94558

Local

Not found

2 units per parcel.

Distance from Dwellings on

Adjacent LotsGuest House / Secondary Dwelling Unit / Accessory Dwelling Definition:

Not applicable

20' * See Note #1 & #2.

20' * See Note #1 & #2.

Local

20' * See Note #1 & #2.

1,200 sf

15'

2 off-street spaces outside of the required front setback.

500' Max. from primary residence.

Not found

Not found

"Guest Cottage" means a structure not containing kitchen facilities accessory to a single-family residence

and designed and used primarily for sleeping accommodations by members of the same family which

occupy the residence or their nonpaying guests. A guest cottage may include bar facilities including a bar

sink with no dimension larger than 12" and a refrigerator not exceeding 6 cubic feet in capacity. "Second

Unit" means a complete, independent living facility for one or more persons, including permanent

provisions for living, sleeping, eating, cooking and sanitation on the same parcel or parcels as a primary

unit is situated.

Zoning Requirements - Garages

Local

50' 20'

15'

Per primary residence.

1 of 2

Client Name: Demo of (E) Dwelling?

Structure(s): New Basement (?)

Pod(s) New Garage(?)


Project Lead:

7/9/2015

No

No

No

ZONING RESEARCH


No

Coastal Permit No Scenic Corridor No Wildlife Habitat Study

Wetland Protect. District No Paleontological Study No Audubon Study

Wetland/pond Setbacks No Archeological Study No Biologist Study

Coastal District No Agricultural District Yes Arborist Study

Historic Preservation Dist. No Ag Preservation Act No Ridgeline District

Riparian Zone No

Site Plan Approval Required?

Grading Limitations:

EVA Requirements:

Setback Encroachments:

Deck Requirements:

Photovoltaic Requirements:

Water Storage Tank Requirements:

Mechanical Equipment

Requirements:

Propane Tanks Requirements:

Pool Requirements:

NOTE #3: The purpose and intent of the Viewshed Protection Program is to protect the public health, safety, and community welfare and to otherwise protect the scenic quality of the county both for

visitors to the county as well as for its residents by ensuring that future improvements are compatible with existing land forms, particularly county ridgelines and that views of the county's many unique

geologic features and the existing landscape fabric of the county's hillside areas are protected and preserved. These regulations are consistent with the goals and policies of the Napa County general

plan, particularly as specified in the land use, open space and conservation, circulation and the scenic highways elements. Furthermore, it is intended that these regulations accomplish the following:

A. Provide hillside development standards to minimize the impact of man-made structures and grading on views of existing landforms, unique geologic features, existing landscape features and open

space as seen from designated public roads within the county;

B. Protect and preserve views of major and minor ridgelines from designated public roads;

C. Create a development review process that maximizes administrative, staff level approval of projects which meet administrative standards, while also providing a vehicle for review by the zoning

administrator or planning commission of those projects that do not meet the administrative standards;

D. Minimize cut and fill, earthmoving, grading operations and other such man-made effects on the natural terrain to ensure that finished slopes are compatible with existing land character;

E. Promote architecture and designs that are compatible with hillside terrain and minimize visual impacts.

The Zoning and Design Criteria research does not include (1) presentation of the conceptual design to the local jurisdiction for preliminary determination of feasibility and conformity to local requirements; (2)

presentation to any applicable homeowners' associations (HOA); or (3) Occupational Safety and Health Administration (OSHA) worksite safety regulations.

This research is subject to modification based upon changes made by the AHJ, or information not available at the time of the initial study and the Client shall not make use of said research other than in connection with

the Client's project with Blu Homes.

Building codes and planning requirements, access to these requirements, and local interpretations of them vary greatly by jurisdiction (i.e. City, County, homeowners' association). Blu has made an attempt to collect

readily available material and to contact your authority(ies) having jurisdiction (AHJ) for interpretations and missing information; however, not all information pertinent to the feasibility of the project may have been

available prior to the completion of the Feasibility Study.

Pools must be located in rear and side yards and more than 5' away from any property line.

Mechanical equipment may be located no closer than 5' from side and/or rear lot lines provided it does not generate noise in excess of county noise standards.

Any and all requirements relating to the Special Programs / Reviews and / or Studies required are listed in the comment section below.

Yes. Site Plan Approval is REQUIRED. See attached application materials.

Yes.

This Zoning and Design Criteria Research document has been prepared for the noted parcel. It is intended as a general guide to the design parameters typically encountered in most jurisdictions and serves as the basis

for the attached conceptual design.

No

Not known

No

No

No

NOTE #2: No structure containing dwelling units located within 50' of a public road or street shall be located on a parcel so that the rear of the building faces the public road or street.

Additional Comments

Not found - assume that all decks shall be located w/in required setbacks and built to building code requirements.

Cornices, eaves, canopies, fireplaces and other similar architectural features, but not including any flatwall or window surface, may extend into any yard a distance

not exceeding 2'. Uncovered porches or stairways, fire escapes or landing places may extend into any required front or rear yard a distance not exceeding 6' and into

any required side yard a distance not exceeding one-half the width of the required side yard.

See the attached CalFire Solar Photovoltaic Installation Guideline document.

See attached CalFire/Napa County Fire Department residential sample site plan and turnaround details.

Water tanks may encroach into side/rear setbacks if they are smaller than 15' in height, less than 10,000 gallons of water is stored in the reduced setback area, and

the tanks are screened from view of neighboring parcels.

Special Programs / Reviews and / or Studies Required

Miscellaneous

NOTE #1: 18.104.140 - Placement of detached garages and accessory buildings.

A. The provisions of Section 18.104.260 to the contrary notwithstanding, a detached garage, accessory building, or solar panel system not exceeding 15' in height at the ridgeline may occupy not more

than 50% of the area of a rear yard. Such a structure shall not contain cooking or sleeping facilities or be used for either of such purposes. If such a structure is situated not less than 70' from any street

it may be located not closer than 5' from the side and/or rear lot lines.

B. A garage, carport or other accessory building may have a common wall with the main building, or may be connected thereto by a breezeway if placed on the lot as required by this title.

C. A garage, carport or other accessory building not having a common wall with the main building shall not be placed closer than 8' from the main building.

D. No detached accessory building shall be placed on a corner lot so as to occupy any part of the front half of the lot.

E. Notwithstanding any other provision of this chapter, structures in the residential country zoning district accessory to agriculture, other than fences, shall be located at least 20' from the side and rear

property line and 50' from the front property line.

See attached propane tank setback exhibit.

2 of 2

Preliminary DELIVERY ASSESSMENT REPORT

DELIVERY

ASSESSMEN

T REPORT

DELIVERY ASSESSMENT SUMMARY3.20.15

Project Name Project Manager

Site Address Congress Valley Road, Napa, CA Report Date

Home Type Breezehouse Extended Delivery Approved NO

Sales Consultant Blu Delivery Premium

Delivery Premium Items Cost Estimate

$3,500

Total: $3,500

Site Work Action Items Cost Estimate

Crane Pad TBD by BSP

Police Escort TBD

Tree/brush clearing TBD by BSP

Total: $0

Site Operations Project Management Sales Operations

Signature:

Client Signature

Additonal Notes: The DOW here is for ACCESS ONLY. A full Site Plan shall be reviewed to confirm a SITE Delivery confirmation.

Signature:

Description

TBD

7/13/2015

Total: $3,500

YES

Special equipment needed to navigate turns.

Create access for trucks to foundation location

Signature:

Description

A crane pad 40' x 40' compacted and paved with Class B or better gravel base is required. A

staging area 20' x 100' within reach of the crane compacted and paved with Class B or better

gravel base is required. Access to the staging area and crane pad via a 14' wide road paved with

Class B or better gravel base is required.

Police Escort may be necessary through town. Check local jurisdiction.

Conceptual BLUSERV PLUS PROJECT ESTIMATE

BLUSERV PLUS PRO

JECT ESTIM

ATE

Customer Name:

Site Address:

Home Type: Extended Breezehouse + Garage W Pure

Conceptual Design Study Date: 7/20/15

Preliminary Estimate Date: 7/27/15

Notes

Design Phase Pricing: 5,000$

Design Review - NA

Total Contract Design Fee: 5,000$

Consultant Estimates: 5,000$ Site Survey Estimate - Allowance

6,000$ Geotechnical Report Estimate - Allowance

Total Estimated Design Consultant Fees: 11,000$

Total Estimated Design Phase Costs: 16,000$

Total Estimated Drawing & Engineering Costs: 21,300$

Base Product 675,000$ Breezehouse 2015

Base Product 40,000$ Garage W Pure

Product Options 104,000$ Adjustments & Upgrades-

PreTax Subtotal Price 819,000$

26,208$ Sales Tax (Includes 60% CA exemption)- 8%

3,500$ Delivery Premium - Allowance

-$ Crane Premium - Allowance

Total Estimated Product Costs: 848,708$

Product Site Costs: 29,200$ Painting & MEP Connections

Site Work: 150,800$ Demolition, Excavation, Foundations, Grading, Drainage

Utilities: 40,500$ Utility Connections, Fire Suppression, Generator

General Conditions: 34,400$ General Requirements & Supervision

Site Built Decks: 13,600$ Deck framing, finishes, & railings

Total Estimated Site Development Costs: 268,500$

Estimated Permitting Costs: -$ TBD

Total Estimated Construction Phase Costs: 1,138,508$

Total Estimated Project Costs: 1,154,508$

Exhibit B: Estimated Project PriceP

ER

MI

CO

NS

TR

UC

TIO

N P

HA

SE

CO

ST

S

EN

GR

NOTE: The Conceptual Project Estimate is designed and intended for the sole purpose of helping clients estimate the total cost of their home building project. All costs set forth herein are

estimates only and clients should not rely on these estimates as a guarantee of total project cost. Unforeseen elements could result in worst case contingency of up to 20% of site construction

costs. Blu does not warrant or promise, explicitly or implicitly, that the client will be able to complete the various facets of their project for the amounts set forth above. Product Sales Tax:

Each state requires Blu to charge Sales Tax in connection with constructing your home and payment of sales tax is the responsibility of the Client (i.e., the product purchaser). Upon remitting

the sales tax to Blu, Blu will deliver the same to the taxing authority. Blu will calculate the tax based upon the most prevalent sales tax statute; however, if the calculation is thereafter

determined to change, the Client is responsible for the difference resulting from the change.

PR

OD

UC

T C

OS

TS

CU

ST

OM

ER

INF

OR

MA

TIO

N

DE

SIG

N P

HA

SE

CO

ST

S

SIT

E D

EV

ELO

PM

EN

T C

OS

TS

DE

SIG

NC

ON

SU

LTIN

G

Copy of Sample CDS Quote (00000003)_20150819.xlsx 1 8/19/2015

sjones

Snapshot

sjones

Snapshot

sjones

Snapshot

sjones

Snapshot

Customer:

Site Address: Congress Valley Road, Napa CA

Home Type: Extended Breezehouse + Garage W Pure

Conceptual Design Date: 7/20/15

Preliminary Estimate Date: 7/27/15

If requested, estimate will include painting/staining the exterior of the mods, the interior of the mods, and tying in stub downs with utilities.

Painting/Staining:

●

●

●

●

●

●

●

MEP Connections:

●

●

Demolition:

Clearing:

●

●

Excavation & Site work:

●

●

●

●

●

●

SITEWORK:

The following outlines the project assumptions that were used to create the range of project estimates in conjunction with current design and available

site information. Certain project components require additional design and further planning to guarantee pricing. The BluServ Plus Estimates and

Assumptions are intended for the sole purpose of helping clients estimate the total cost of their project. All costs set forth herein are estimates only

and clients should not rely on these estimates as a guarantee of total project cost. Blu does not warrant or promise, explicitly or implicitly, that the

client will be able to complete the various facets of their project for the amounts set forth above. Please note: Line 11, "Design Review" is subject to

change and is strictly an allowance. If additional time is required for local design review then the client will be billed.

Painting inside the Garage is not included, unless the premium garage has been selected.

Painting is based on a three-color scheme (walls, ceiling, trim). Additional colors will be extra.

Finish painting consists of two (2) coats. Darker colors may require additional coats at an extra cost.

PRODUCT SITE COSTS:

The exterior modular siding is assumed to be Clear Cedar siding with cedar trim and Hardie 2.0 panel accents at both the

Breezehouse and GarageAll surfaces inside Blu Home are primed.

Estimate includes seal/staining 1 coat of cedar siding and painting of Hardie 2.0 accents only

BluServ Plus Estimate Assumptions

General Notes & Assumptions:

Price assumes that new foundation will be backfilled with existing excavated materials . It is assumed that existing excavated

materials will be suitable for backfilling.

Assumes no importation of clean fill or haul off of unsuitable fill material. Should fill import or haul off be required, an allowance

cost will be provided. Allowance cost to include: material cost per yard, trucking, & machine time along with supervision to track

onsite totals.Fine grade at all slabs & install gravel stone base, ready for slab pour.

Includes all connections in basement below the Mods. Includes constructing the plumbing waste tree, tying in water lines to the stub downs,

running gas lines to gas appliances, and electrical connections.

All costs are preliminary. Additional Site Work costs, if applicable, will be confirmed based on geotechnical and/or civil engineering

findings, site conditions, and final drawing layouts.

Estimate does not include unexpected site conditions such as ledge, bedrock, and/or a high water table. The blasting or removal of

ledge, rock, or any other unforeseen obstacles, should they be encountered, will need to be priced based on confirmed site

Estimate includes site work modifications, temporary set-ups, & temporary protection as necessary for the Mod delivery & set. If

client completes their own site work for the Mod delivery & set, the client will be responsible for & required to complete all site

work required for Blu Homes to deliver mods to site. Police and CHP escorts, traffic control, trimming of trees and special permits

are excluded.

NOT INCLUDED. It is assumed that site does not have any existing structures. Unless otherwise stated in above estimate.

Interior painting included for walls and ceilings in home. Assumes 1 coat of primer (as required) & 2 coats of finish paint. Includes

Sherwin Williams Promar-400, or equivalent, in an eggshell finish for walls, semi-gloss finish for trim, & ceiling finish for ceilings.

Strip & stockpile loam for future use by others.

Excavation and backfill included for: Home model listed above, any site built connector(s)-If applicable, any Garage- If applicable and

any deck concrete piers-if applicable. Excavation is included for crawl space and T-footing slab on grade for garage.

Excludes basic erosion/sediment control on site pending Civil Requirements.

Included: Stripping topsoil, removal of shrubs & existing stumps, approximately 12,000SF assumed;

Includes:

Includes the removal of 15 large trees, stump diameter not to exceed 24"w -- this is an allowance; site survey required to

determine number of trees required to be removed, excludes permitting for arborist

Copy of Sample CDS Quote (00000003) 3 8/14/2015

●

●

● Assumed to be a flat lot without a Civil and Survey report

Grading:

●

●

●

Foundation:

●

●

●

●

●

●

●

Foundation Drainage: (Included in Foundation estimate)

●

●

Driveway:

●

●

●

●

Site Drainage: (If Applicable)

● N/A

Water:

Sewer/Septic:

Fire Suppression:

Gas/Propane Tank:

Generator:

Not Included.

UTILITIES:

Areas where the driveway is to be installed is assumed to be relatively flat. Bringing in fill materials & compacting to raise levels is

not included, if required.

Installing electrical and/or lighting along the driveway is not included.

Assumption is that soil absorption rate is "Average", property has easy access, & property in not under the EPA Water Quality Control Policy

for siting, design, operation, & maintenance of onsite wastewater system. Includes: Excavation & backfill with clean fill. Installation of a

standard gravity system with a 1,500 gallon concrete tank, drain rock, pipe, & vaults. Trench & tie into the new house. Includes a single

trench line, not to exceed 100LF

All foundations will have 6" thick walls on 12" thick footings & will be reinforced with #4 rebar's, as required.

A concrete slab will not be provided beneath the crawlspace. Garage slab to be 4" thick and reinforced with #4 rebar . All building

"footprints" (including crawlspaces ) will receive 3" of sand and 4" (3/8" or less) crushed rock over a standard 6" mil vapor barrier.

Bituminous water proofing provided for exterior stem walls.

Installing sump pumps/water control in the new basement spaces, new crawlspaces or the installation of a sub-slab ventilation

system for radon mitigation are not included. (If applicable)

Price includes the installation of perimeter drain around the exterior of the new foundation walls, pitched to daylight. Roof gutters and

down spouts will be pitched to daylight.

Assumption/Allowance is for loose decomposed granite (beige/cream colored) driveway (Basic loose gravel, over crushed stone, compacted

base, as required - Excludes landscape fabric and resin, if required.

NOT INCLUDED

Includes structural columns, footings, & headers.

Shape, grade, & form for the new driveway layout.

Price does not include curb cuts or the installation of any curbing, if required.

500-gallon above-ground steel propane tank, on concrete pad located near the new house. The assumption is based on the tank being

rented and located at the house with a run of approx. 40' into house, single trenched.

Hook up to existing town/city water lines at the street. Includes trenching, installation, and backfill. To be a joint trench shared with service,

not to exceed 50 LF

Price does not include the installation of any perimeter drains or sump pumps at the interior of the new foundations.

The installation of drywells, holding tanks , manholes, and/or drainage on the site & at the driveway are not included, if required.

Rough & final grading, sloped away form the house as required for certificate of occupancy.

Includes:

Crawlspace foundations will have 3'-0" high poured concrete walls.

Option-Garage foundation will be slab on grade with perimeter t-footings

Includes grading & layout for the crane & pad for delivery/set of the Blu Home Mods.

Dewatering is not included if water is encountered during excavation.

A certified grading plan and house siting on the lot will be required for accurate pricing.

Price does not include the installation of topsoil/loam and/or grass hydro seed on the site. All landscaping completed by client.

Dispose of excess fill materials off site.


Utility Connections:

●

●

●

●

●

●

●

●

General Requirements:

●

Site Supervision:

Includes cedar decking in standard color with concealed fasteners.

● Deck piers will be 10" diameter concrete with sono-tubes, at least 18" below grade.

● All decks include pressure treated framing members.

● Railing is excluded

● Skirting is excluded

● Installing lattice below the decks is not included.

● No electrical was estimated for the deck areas.

● Architectural planters and/or furniture are not included.

● Final specifications to be determined and will affect final pricing.

Trellis & Shading Structures:

Outdoor Shower:

Hardscapes/Patios/Walkways:

●

●

●

Retaining Walls:

Screen Porch Finishes:

●

●

●

●

●

●

●

● Items not shown on drawings or indicated in the assumptions.

New Pool or any related work for pool installation.

NOT INCLUDED

New Walkways to driveway.

Any patio work.

Replacement of existing stone walls on the site.

Final landscaping and/or irrigation system.

Solar installation, design, or services.

Geothermal installation, design, or services.

NOT INCLUDED

Price is based on standard cast in-place concrete pad, @ 4" maximum thickness reinforced with wire mesh

No electrical was estimated for the walkway.

Final specifications to be determined and will affect final pricing.

NOT INCLUDED

Includes new concrete patio at Garage

NOT INCLUDED

SITE BUILT DECKS:

SITE BUILT ARCHITECTURAL FEATURES:

NOT INCLUDED

Distributing all utilities from the meters to the connections/panels, including single trenching, backfill, conduits, etc.

It is assumed that all of the utility connections are on the same side of the street as the house. Price does not include street cutting

and patching, local encroachment permits and/or security detail to divert traffic on street while work is being completed.

Excludes solar and/or wind power hook-ups.

Installing a new transformer, or updating an existing transformer, is not included if required.

Assumes a new 200-amp residential service. Includes joint trenching with water & backfill to tie into existing power lines at the

street; not to exceed 50 LF.Includes tie-in to the Garage.

Excludes any allowance for the power company's fee to run power from the street to the new panel in the Home.

Includes construction safety measures & controls, site administration, sanitary facilities, dumpsters, building department review, etc.

Price does not include fees incurred by utility company's for tie-ins into town/city connections.

Does not include monthly utility fees. Monthly fees to be paid by owner.

GENERAL CONDITIONS:

Estimate excludes modifications to the existing entrance & site as required to enable delivery of mods onto the site.

Includes supervision of contractors, subcontractors, site meetings, coordination, travel expense, etc.


Description of Allowances:

An "Allowance" has been entered into certain phases of your estimate/proposal. The dollar amount noted is included in the total

contract sum. During the project, the actual cost of such items or phases will be calculated precisely to determine whether a credit is due

or an additional charge as accrued. The purpose of an allowance is to eliminate the possibility of under-estimating or over-charging for

unspecified or unclear areas of the job. All allowances are after a 25% markup.


FINANCING GUIDE

FINAN

CIN

G G

UIDE

FINANCE GUIDE

2

Hello PROSPECTIVE BLU HOMEOWNER!

This Blu Homes Finance Guide aims to familiarize you with the process of securing a construction loan for your Blu Home. Admittedly, this is not as fun or glamorous as the design work you’ll be doing with our architects, but it’s very important nonetheless! Financing construction of a new home is quite different from financing acquisition of an existing home. Most people have never custom built before, and we hope this material helps to take some of the mystery out of the process and leaves you more informed and confident as you proceed with Blu.

The following Guide is designed for illustrative and educational purposes only, and is in no way intended to represent a specific lender’s review, qualification or approval process. Rates and terms are hypothetical and based upon prior Blu clients’ experience.

Blu Homes is not a lender, and is in no position to qualify an applicant’s credit-worthiness or suitability for securing construction or permanent financing for a Blu project.

3

CONTENTS

Construction finance overview Principal types of construction loans Single-close construction to permanent (C-P) financing 2-close construction and permanent financingRolling land acquisition into financing Pre-owned site New site acquisition Cash vs. Construction LoanAppropriately sizing your budget Building a Budget Key variable – Loan-to-value (LTV) Key variable – Post-closing liquidity (PCL) reserve Affordability Key variable – Debt-to-income (DTI) AppraisalsConstruction loan process Blu Process Pre-approval Closing construction financing Conversion to permanent financingGlossary of terms

1

3

3

4

4

5

5

5

7

7

8

9

9

9

10

13

13

14

15

15

17

1

CONSTRUCTION FINANCEOVERVIEW

Most people understand how traditional mortgages work: homes are acquired through a combination of the buyer’s cash contribution and the lender’s contribution, or “mortgage”.

Lenders typically provide some proportion of the mortgage based upon Loan-to-Value (LTV). For example, were an existing home purchased for $600,000 and a lender willing to provide a loan at 80% LTV, the buyer would be expected to bring $120,000 in cash equity (20% of the purchase price) to closing, and a mortgage in the amount of $480,000 (80% of the purchase price; the principal, or amount loaned) would provide the balance. These loans can be structured a number of ways; the most popular is the 30-year fixed-rate amortizing loan in which principal amortizes, or is paid back gradually over the term of the loan along with interest. Most people are also familiar with adjustable-rate mortgages (ARMs), in which the interest rates fluctuate per a lender-specified schedule, or interest-only loans, in which the borrower pays only interest and the principal remains unchanged. Recently, hybrid ARMs have become increasingly popular. These debt products, like the 5/1 or 10/1 mortgage, fix the interest rate for a set period (five, ten years, respectively) before converting to an ARM.

Below we illustrate the amortization of a $650,000, 30-year fixed-rate mortgage at 4.25%. Note that the monthly payment ($3,198, measured on the axis to the right of the graph) is fixed throughout the term (30 years, or 360 months), but the proportion of that payment going toward interest (light blue field) diminishes over time as a greater share of each payment goes toward amortizing the principal (green field) on the mortgage (illustrated by the diminishing dark blue line, measured by the axis to the left).

$1,000

$0

$2,000

$3,000

$100,000$200,000$300,000$400,000$500,000$600,000$700,000

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

YEARS

AMORTIZATION OF $650,000 30YR MORTGAGE AT 4.25%

MONTHLYPAYMENT

OUTSTANDING MORTGAGEPRINCIPAL

paymentprincipalpayment toprincipal

payment tointerest

2

Construction loans, however, are a very different form of debt. As opposed to issuing the entirety of debt at once, as lenders do at closing with existing home acquisitions, construction lenders issue debt gradually over time in parallel with certain progress milestones. We provide two illustrative examples of the construction loan disbursement process below. The first represents a conventional custom design/build project; the second is a typical timeline for a Blu Fast Tack project. In the first example, the borrower’s cash equity supports construction activities from project inception through design and into month 10 of construction activities. Equity exhausted, the lender now begins deploying funds for certain disbursement (or draw) milestones, such as foundation completion, rough framing completion, etc., through to Certificate of Occupancy (CO, which bestows the legal right to occupy a residence). It is interesting to note that stick-built projects can have as many as 15-20 disbursements and they mount very early, resulting in a high early-stage balance and significant interest expense during construction. The Blu project reflects our commitment to rapid schedules, but it also illustrates a typical disbursement schedule. Blu rarely exercise more than four disbursements, and the greatest of these is typically at delivery and set of the Blu mods (when the home is already 70-80% complete). Aside from getting the keys to your new home sooner, this also means substantially lower interest expense during construction (as much as 1/2 to 2/3 less than for a comparable stick-built custom home).

CONVENTIONAL PROJECT FINANCE

BLU PROJECT FINANCE

$200,000

$200,000

$30,000

$30,000

$10,000

$10,000

$400,000

$400,000

$600,000

$600,000

$800,000

$800,000

$1,000,000

$1,000,000

1

1

MONTHS

MONTHS

2

2

3

3

4

4

5

5

6

6

7

7

8

8

9

9

10

10

11

11

12

12

13 14 15 16 17 18 19 20 21 22 23 24

Equity Depolyed to Project

Construction Loan

Cumulative Interest Expense

PROJECT COMPLETION

PROJECT COMPLETION

3

Key Takeaways:

Pros:

Overall debt (principal) actually increases throughout the construction process, contrary to mortgages in which principal is typically paid down over time.

Interest is charged only on the amount of debt disbursed to date; it is typically charged directly to the borrower on a monthly basis and is collected as a cash payment (or may simply be withheld from coincident disbursements). Interest expense grows over time as construction loan proceeds are deployed in concert with progress expenditures

Simplicity, only one set of closing costs (reducing cost of debt) and single borrower review (see Construction loan qualifying process below)

Certainty around permanent debt at project completion

PRINCIPAL TYPES OF CONSTRUCTION LOANSSingle-close C-P financing is the most common construction financing secured by Blu clients. With C-P loans, borrowers establish an agreement with a lender to provide the construction loan which, upon project completion, converts to permanent debt, a mortgage similar to what one would utilize to acquire an existing home. Borrowers can choose from a range of permanent debt products, such as an adjustable-rate mortgage (ARM), or a hybrid ARM. Given current historic low rates, most lenders are not presently offering 15- or 30-year fixed rate terms on the permanent portion of a C-P loan. Borrowers looking for longer term fixed rates at project completion will have to refinance at project completion, which is typically possible free of any prepayment penalties.

SINGLE-CLOSECONSTRUCTION TO PERMANENT LOAN

Note that cash is typically deployed for pre-development and site work before construction loan closing, at which point the borrower closes into escrow all remaining cash necessary to satisfy the lender’s requisite LTV. This equity will fund additional work until totally exhausted, after which point the construction loan will commence disbursements at set progress milestones. Note also that although construction financing may close earlier, interest payments do not begin until the construction loan’s first disbursement (after equity exhaustion), and gradually increase as the funds are deployed. Soon after Certificate of Occupancy the construction loan converts to a typical mortgage. Finally, various fees are due at construction loan closing (appraisal fees, title fees, underwriting fees, etc.), and more are likely due at conversion to permanent debt at project completion.

4

Pros:

Cons:

Potential to identify lower rate/better terms further out

Two sets of closing costs, increasing effective cost of debt

Uncertainty surrounding availability and/or terms of permanent debt at project completion

Some buyers may choose to secure construction financing independent of their permanent financing. These buyers may like the flexibility to shop rates and lenders as the project approaches completion, believing they may find better terms than those available pre-construction. In such a case, the borrower secures a mortgage as the project nears CO, and takes out, or pays off, the construction loan with a mortgage of equal size to the construction loan.

Note:Again, most Blu clients opt for the single-close C-P financing option, and our lending partners have attractive products that fit this interest. It’s important to keep in mind that penalty-free refinancing (via prepayment) is typically an option at any point

TWO-CLOSECONSTRUCTION TO PERMANENT LOAN

ROLLING LAND ACQUISITION INTO FINANCING

Land acquisition is obviously a critical component of the entire building process. Blu clients come from myriad situations: some already own land free and clear, some own a site with existing debt (a lot loan) while others are still shopping for a site. Our lending partners are sometimes able to finance land within the overarching construction loan; however timing requirements can make this execution challenging and should be discussed early.

Cons:Rate typically locked in at construction loan close, terms on construction loan may be less favorable than terms available on permanent financing at project completion.

5

Many Blu clients haven’t yet acquired the site upon which they want to build their Blu Home. Some of our lending partners provide loan products that can finance not only construction costs but also site acquisition with a single debt product. Others provide a 2-step solution, providing one loan to acquire the site (at times with an existing structure to be demolished prior to new construction) and a second C-P loan. Depending upon the lender, borrowers may be able to finance anywhere from 50% to 80% of site acquisition, with the remainder paid in cash equity.

As straight land financing is significantly more risky than existing home financing, lenders may expect a very definite timeline for design completion and construction commencement, and may even require advanced drawings and a preliminary project estimate.

NEW SITE ACQUISITION

The majority of Blu clients with land, however, have some form of pre-existing debt on their site (a mortgage or a land/lot loan). In these cases, the lender will size construction financing to include not only the project’s construction costs, but also to pay off, or take out, the outstanding principal on the existing loan. In this way, once the construction loan is closed the borrower has only one loan to service. Again, depending upon the value of the land and the outstanding principal on the debt, borrowers in these cases may find that they need to bring significantly less cash to close.

Note that having enough equity in land to support a loan’s LTV profile may not release a borrower from having to put in additional cash. See below on Cash vs. Construction Loan: timing of payments and excess equity.

Many Blu clients come to us with their own sites, which may be owned free and clear or may otherwise represent significant equity (i.e. low outstanding debt). Clients in this position often assume, from a loan-to-value (LTV) standpoint, that this implicit equity in the land will cover their contribution to the whole of the project and that loan proceeds should cover 100% of construction activities. Theoretically, they are correct. However, the timing of construction activities and loan closing present a conflict in this situation.

Construction loans can only disburse funds after permits are issued. As a result, Blu

CASH VS. CONSTRUCTION

LOAN: TIMING OF PAYMENTS AND EXCESS EQUITY

Blu clients in this situation either own their land free and clear or have some pre-existing financing already in place. Free and clear land provides the simplest arrangement; financing is needed only for the project’s construction costs. Borrowers in this case find that their need to invest additional cash in the project is significantly reduced, as they may have enough equity in the land to constitute the majority of their equity stake in the project! This can be the case for greenfield (unimproved) sites or for tear-down projects.1

PRE-OWNED SITE

1 Timing of pre-development activities, permits and loan closing can require cash contributions in excess of LTV parameters. See Blu Process section on page 13.

6

clients who own land free and clear find that they have to part with additional cash to get to the project rolling. These costs include the Feasibility Study/DA, the Blu Homes Contract payment, and required 3rd party consulting fees and at least some portion of the Blu Homes Authorization to Permit payment & Permitting fees. This can often put the client in a position of excess equity (i.e. distort the LTV downward).

Example:Let’s presume a Fast Track Blu client owns a $300K parcel free and clear. She is building a Balance Vista with a detached garage. The Project estimate is coming in at $700K. Assuming the project appraises at cost, the total project value is $1.0M. At an 80% LTV, therefore, the construction loan would be sized at $800K, well in excess of the construction cost ($700K) and obviating the need, from an LTV standpoint, for additional cash equity. However, the construction loan cannot disburse until permits are issued, and permits cannot issued until:

FEASIBILITY STUDY

CONTRACT

3RD PARTY CONSULTANT FEES

AUTHORIZATION TO PERMIT

PERMITTING FEES

TOTAL:

$2,500

$5,000

$10,000

$67,200 (10% OF MODS + BSP)

$10,000

$94,700

This being the case, the client must pay $94,700 to get to permits, at which point the construction loan can disburse for future construction activities.It should be noted that certain lenders will reimburse borrowers for excess equity in projects. If you are bringing free and clear or minimally-financed land to a Blu project, be sure to discuss possible treatment of excess equity with your lender well in advance. Alternatively, the borrower can maintain this position of excess equity until project completion, at which time he or she may want to re-finance into a new mortgage, pay down the C-P loan and liquidate their excess equity.

7

APPROPRIATELY SIZING YOUR BUDGET

Determining a viable project budget can be a complex analysis for first-time home buyers, let alone first-time builders dealing with land acquisition and construction.

The fundamental determinant of how much debt a lender is willing to provide, for construction as for an existing home purchase, is Loan-to-Value (LTV). LTV is the proportion of the lower of total project cost or appraised value that the lender is willing to finance through debt (see LTC vs. LTV below). The primary criterion for determining a borrower’s ability to repay that debt is Debt-to-Income (DTI). DTI is the proportion of the borrower’s total debt against his or her monthly gross income. A borrower must meet both LTV and DTI requirements to attain the financing required for a project; while the borrower’s income may support a particular loan, that loan may be in excess of the LTV a lender is willing to extend to the project. Inversely, a borrower may have enough cash to support a project-appropriate LTV, but his or her monthly net income may not generate adequate cash flow to service the debt necessary to fund the project.

Blu has provided a Finance Toolkit to help you budget appropriately in light of the complexity surrounding land acquisition and new construction, comprising a Budget Builder (with a Cash Flow illustration), an Affordability Calculator, and an Appraisal Analysis. Finally, the model generates a Lender Pre-application, a document summarizing borrower and project qualifications for preliminary lender review.

The Blu Finance Toolkit’s Budget Builder helps estimate a project budget, equity required at close, estimated monthly debt service and the post-closing liquidity requirement. A more robust project budget will be established via the Blu Feasibility Study2. However, if you’re just beginning and want a very general idea of what your Blu project may cost (comprising pre-development activities, the home or mods, BluServ Plus3 contract and 3rd party and permitting fees), the Budget Builder can help create a preliminary approximation.

Keep in mind that due to wide-ranging project- and site-specific variants, the Budget Builder should be considered provisional. Upon completion of a Feasibility Study, a new iteration of the Finance Toolkit will be provided to you pre-populated with more reliable estimates.

2 Ask your Blu Sales Consultant about performing a Feasibility Study and Delivery Assessment, which provides code research; conceptual designs; a preliminary project cost estimate; project financing guidance; a delivery feasibility analysis; and In-person meetings to review design and budget.3 BluServ Plus (BSP) is Blu Homes’ general contracting services: our all-inclusive design, site work and project management services established at a fixed price at contract close. See http://www.bluhomes.com/homes/bluserv-plus/ for more.

BUILDING A BUDGET

8

The key variable when determining financing sources for a project is Loan-to-Value (LTV). This ratio is used to calculate the amount of debt a lender will make available to a project and thereby dictates how much cash equity the borrower will have to bring to close to make the deal work. Lenders fix LTVs to projects based upon acquisition cost or appraised value.

Loan-to-Value (LTV) is predicated upon the following guidelines, which are generally reflective of Blu’s lending partners’ current LTV brackets:

When sizing debt, most lenders will utilize the lower of Acquisition Cost and Appraised Value. Loans are sized as a percentage of either of these two, and you’ll hear of Loan-to-Cost (LTC) when lenders use the acquisition cost and Loan-to-Value (LTV) when they use the appraised value. We’ll talk more about appraised values in the More on Appraisals section below; for purposes of the Finance Toolkit’s Budget Builder we will use LTC

As market conditions shift, lenders make frequent adjustments to their LTV policies. Additionally, borrowers may seek exceptions to increase the default LTV in cases in which the borrower has a particularly strong financial position and/or the project has come in very near the low end of a value bracket. As such exceptions require special consideration, alter the Budget Builder’s default LTV value only if a lender has represented a greater LTV may be feasible.

MORE ON ACQUISITION

COST VS APPRAISED VALUE

80% LTV (20% cash equity) for projects under approximately $1.25M

75% for projects between approximately $1.25M and $1.75M

70% for projects between approximately $1.75M and $2.0M

65% beyond $2.0M

LTC x Acquisition Cost calculates debt to the project

Acquisition cost = Total project cost + Value of site Total project cost = predevelopment + Blu Home + BluServ Plus contract + 3rd Party Fees + Permit Fees Value of site = appraised value or cost if acquired within past 6-12 months.

KEY VARIABLE LOAN-TO-

VALUE

The Finance Toolkit’s Appraisal Analysis, which we’ll discuss next, also provides insight into the impact of appraised project valuation and the application of LTV.

9

Most lenders will require that a borrower demonstrate that he or she will possess some reserve of liquid assets post-closing (after contributing equity, paying all closing fees, etc.). This reserve can consist of:

Lender’s typically exercise the following guidelines when considering a borrower’s ability to repay a loan for a potential home purchase or construction project.

The Blu Finance Toolkit’s Affordability Calculator permits those who have utilized the Budgeting Tool to optimize the debt and equity composition for project finance to evaluate whether they have adequate income to support the project debt on an ongoing basis.

Reserves usually need to be “seasoned”, that is, borrowers must demonstrate that they’ve existed for some moderate period of time. Different lenders have different practices for determining Post-closing liquidity (PCL) reserve requirements: some require a certain number of months’ worth of Principal, interest, taxes and insurance (PITI), while others require a fixed percentage of the construction loan principal or the project’s hard assets. In any case, PCL requirements can at times be onerous, and it’s critical to discuss with your lender what their practice is and examine the total cash you’ll need to close (equity contribution, closing costs, etc.) and how much liquidity you will have afterward.

KEY VARIABLE – POST-CLOSING

LIQUIDITY RESERVE

KEY VARIABLE – DEBT-TO-INCOME

Totally liquid assets, such as cash deposited in savings or checking accounts, stocks or bonds

Semi-liquid assets, such as mutual funds, 401K accounts, money market accounts Lenders will typically discount these semi-liquid assets by some percentage

No more than X% of your gross monthly income should go toward your monthly housing expense, including monthly principal, interest, taxes and insurance (PITI) obligations. This is called the front-end ratio.

Your proposed monthly housing expense and your total monthly debt service combined cannot exceed about Y% of your gross monthly income. This is called the back-end ratio.

Historically, lenders had a fair amount of flexibility when establishing ratios. Borrowers with a checkered credit history and/or less established assets may be held to basestandards, while a borrower with a spotless credit history and substantial cash reserves and

AFFORDABILITY

10

other asset holdings may support ratios 5% to even 10% higher. However, with the passage of the Dodd-Frank Act and the adoption of “Ability to Repay” provisions, almost all lenders now adhere very strictly to a maximum back-end DTI of 43%. The Blu Affordability Calculator utilizes this conventional Debt-to-income ratio (DTI) to confirm whether the borrower can support the debt allocated to a project per the Budgeting Tool.

The Blu Finance Toolkit’s Appraisal Analysis addresses the issues raised above within the LTV vs. LTC discussion. As mentioned above, lenders will typically utilize the lower of Acquisition Cost or Appraised Value when applying LTV to size debt.

Appraisals often represent a challenge post-recession both for existing home purchases and, especially, for new construction. Since the real estate market meltdown, regulatory walls have been erected between loan originators and appraisers in an attempt to prevent artificial inflation of home values. Lenders now often order appraisals through a third party, and their assessment of the value of a project may not always match the seller’s, buyer’s, brokers’ and even lender’s perception of the inherent value. There is evidence to support that appraisers’ practices have swung radically from one extreme to the other: from dramatically over-valuing properties during the pre-recession real estate boom to severely underestimating property values relative to market perception today. A 2013 survey by the National Association of Realtors found that 32% of realtors reported having appraisal problems for existing home purchases in the prior 3 months (9% contract cancellation, 10% contract delay, 13% lower price renegotiation).4

4 http://www.realtor.org/sites/default/files/Realtors-Confidence-Index-Report-2013-05.pdf

APPRAISALS

The problem is exacerbated in the case of customized new construction, which has historically been more challenging to appraise at intrinsic cost than existing home purchases. Customization of one’s home may add more cost than value to a property (i.e. the general market may not value the platinum-plated beer tap you always wanted in your tricked out man-cave basement as much as you do!). Appraisers compare new construction projects, as detailed in final schematic drawings, to recently sold and comparable homes in the immediate area (thus, appraisals are backward-looking and

11

When appraisals do come in low, it typically occurs in markets which were significantly impacted by the real estate downturn. In these cases historic depressed pricing, in some cases exacerbated by foreclosures and short sales, will create an environment of very poor comparable pricing. Elsewhere, some markets have a very low cost of construction, which may be made worse by cheap land and accompanying large footprints (the McMansion phenomenon). These cases skew price per square foot ($/sq ft) dramatically, comparable $/sq ft being one of the principal standards by which appraisers evaluate new projects. Finally, there are instances in which there are simply no comparable properties by which to gauge the subject property’s value. This occurs in remote rural geographies with very little market activity, and appraisers have been known to severely undervalue projects, or simply refuse to appraise at all.

It helps, when possible, to request appraisers who have completed special training for evaluating green/sustainable properties. The Appraisal Institute provides a Valuation of Sustainable Buildings Professional Development Program, and a slowly-growing roster of specially-trained appraisers more educated on green building processes and their benefits should help properly value residential properties with energy-efficient characteristics in the future. Blu works with lending partners to identify when designated appraisers may be available.

So what will an unfavorable appraisal do to your financing package? As mentioned earlier, lenders base their investment in the subject project based upon the lower of acquisition cost or value. Let’s consider a hypothetical case in which the appraisal came in about 5% lower than cost.

IMPACT OF UNFAVORABLE

APPRAISAL

inherently prone to undervalue in a rising market). The construction lender, obligated to verify that the completed home value will conform to the local market, is forced to adopt the appraiser’s assessment; after all, if lenders have to foreclose, they’re stuck with the home and have to make sure it’s resale will cover their investment. With the excess of homes for sale, foreclosures, and a generally weak economy post-recession, home values were significantly depressed through the turn of the decade. Although there is reason to believe market conditions are improving, it may be awhile before appraisals catch up with market perception.

12

In the above case, the appraiser determined that this home as designed in its particular market could be sold for only $900,000. The lender is obligated to utilize this value when sizing the debt it will make available to the project. The result is a loan $40,000 lower than what may have been expected based upon an LTC analysis. Unfortunately, in most cases the borrower will have to fund this gap with additional cash equity, and/or bring down the cost through tempered design. Appraisals are quite indisputable, but there are few options in the face of a low valuation:

LOAN TO VALUE VS LOAN TO COST

LOAN TO COST 80% LOAN TO VALUE 80%

Land

Blu Home

BluServ Plus Contract

Construction Loan

Equity Required

Construction Loan

Equity Required

Land

Blu Home

BluServ Plus Contract

Acquisition Cost

Appraised Value

$200,000

$450,000

$300,000

$950,000Acquisition Cost

$760,000

$190,000

$720,000

$230,000

$200,000

$450,000

$300,000

$950,000

$900,000

Request a second appraisal: While our lending partners attempt to engage appraisers who are familiar with the particular market and, ideally, aware of the benefits of building green, sometimes less educated appraisers end up performing the work. It’s permissible to ask the lender to hire another appraiser, preferably one with greater familiarity with the market and the green premium.

Challenge: The lender and/or borrower may challenge the appraisal, reviewing for mistakes regarding un-noted premium customizations and errors involving square footage, number of rooms, geographic frame of reference, etc. Blu pre-emptively tries to educate appraisers as to the benefits of our sustainable, energy efficient, and superior build quality; we’ll re-emphasize this in any challenge effort.

Pay the difference at construction loan closing: Once the previous two options have been attempted, clients must consider whether or not they have the funds available to cover the funding gap. Blu can work with the client to consider alternative designs, eliminate costly additions that may be added later, or even evaluate the possibility of moving forward with a lower-cost model. Find more cash! At times a couple months’ earnings, sale of an asset, or liquidation of an investment can free up the cash necessary to bridge the funding gap.

13

CONSTRUCTION LOAN QUALIFYING PROCESS

Lenders consider three components when qualifying a new construction project, ensuring that the builder is qualified to complete the project, the borrower is qualified to service the proposed debt, and the project provides adequate collateral for the financing.

Builder: Blu has been thoroughly vetted by our lending partners, but if you’d like us to work with a lender with which you have an existing relationship, we will happily comply with their qualifying process which typically includes verification of all licenses and insurance, review of past projects and consultation with suppliers/contractors;

Applicant: Lender will verify/qualify applicant’s employment, income, credit and asset/liability profile;

Project: Lender will review/qualify the project’s drawings and the site survey if available. Future review will involve a project appraisal.

It can be helpful to understand the Blu building process before delving into the financing process. There are a number of pre-development costs incurred before the construction process begins and before the construction loan closes.

BLU PROCESS

Concept:During the Concept phase, Blu clients will launch at least one Delivery Assessment (DA) and a Feasibility Study in order to confirm that a Blu home is deliverable to the site.

Design:Once the DA and Feasibility Study come back favorably, the client will launch the Design phase with execution of a Blu contract.

Permit:At design completion, the client kicks off the Permit phase, which involves state and local permit submittal and approval.

14

Build:The Build phase commences once permits have been issued. Here site work and factory production begins.

Finish:Finally, the Finish phase involves delivery, set and finishing of your new Blu Home.

For more detail on the Blu process, ask your Sales Consultant for a copy of our Blu Process Guide.

We can get the finance pre-approval process rolling almost immediately; our lending partners are able to act as soon as we complete a Feasibility Study and move toward the Design Phase. This process involves a thorough review of a complete loan application and credit and income documentation. These are likely to include:

PRE-APPROVAL

Two most recent pay stubs from within the previous 30 days

W2’s for the previous two years

Two most recent months of bank statements, including checking, savings, IRA’s, retirement accounts, stocks, bonds, CD’s, money market and mutual funds

Self-employed borrowers, commissioned borrowers, or borrowers owning rental property should provide copies of the previous two years of tax returns with all schedules, and, if incorporated, the previous two years of the company’s tax returns Self-employed borrowers may also need to provide a year-to-date profit and loss statement

Proof of receipt of child or spousal support if you want us to use it as income for your application

Name and address of landlord for previous two years, if applicable

Copy of the recorded plat, if you own a lot or are planning a renovation or tear down

Comprehensive record of all outstanding debt, including, but not limited to, monthly housing costs, home equity loan payments, car payments, minimum monthly credit card payments, student loan payments, monthly alimony/child support

Upon underwriter review, the borrower may be offered a “conditional pre-approval”. At this point, two of the three qualifying components, the builder and the borrower, have

15

been satisfied. Final approval will be contingent upon qualification of the project via the appraisal result (and a final review of the borrower’s financials at close).Note that terms and rates discussed at pre-approval are not “locked in”, or finalized, until the lender has provided a construction loan commitment letter.

Finally, you’ve secured construction financing, and your project is underway! A few months later, as your project nears completion, you’ll want to begin preparing for conversion to permanent financing. Had you decided to pursue the more aggressive route, seeking better terms, and thus opted for 2-close financing, this will involve shopping for a traditional mortgage as you would in the case of existing home acquisition. Likely, however, you opted for Construction to Permanent (C-P) financing. In either case, you’ll want to begin to prepare for conversion or take-out of your construction loan at least a month before completion of your project. Begin by assembling the following documentation when available:

CONVERSION TO PERMANENT FINANCING

CLOSING CONSTRUCTION FINANCINGAs you approach the Authorization to Permit (ATP) milestone (and related payments to Blu, 3rd party consultants and permitting authorities), it’s comforting to know with 100% certainty that project finance is completely arranged. For this reason, several weeks before ATP Blu will assemble a full appraisal package, complete with project drawings, price estimate, description of materials, and supporting documentation for submittal to the lender’s appraisal. Our objective is to have the result back and approved by your lender as early as possible. In some cases, we’re able to fully execute loan documents and fund the loan in advance of ATP (remember, the loan can close, but the lender will not disburse until permitting is complete).

Final Appraisal inspection or Full Appraisal

Certificate of Occupancy (CO)

Final Billing from Blu Homes

16

Contractor’s Affidavit verifying completion of work and payment of all subcontractors

Final Survey

Proof of Homeowners Insurance

Clear Title

Personal financial statements (similar to documentation required for construction loan closing)

Typically, conversion/take-out will require updated documentation of employment, income, asset/debt profile and credit before conversion to the permanent phase of the loan.

Welcome HOME

17

GLOSSARY OF TERMS

Total implicit value of a project, including all hard and soft new construction costs and the sale price (newly acquired) or appraised value (previously acquired) of the project site

Mortgage with the interest rate periodically adjusted based on a predetermined index and margin. ARMs may be fixed for some period of time, and the frequency of adjustment is predetermined at close

The manner in which periodic debt service reduces the outstanding principal on a debt instrument. Mortgages typically comprise principal and interest payments, the principal portion of which reduces outstanding balance

The process of establishing real property’s market value, typically through acquisition cost analysis and sales comparison valuation

Assessed value of real property in the opinion of a qualified appraiser, typically deemed as the lesser of acquisition cost analysis or sales comparison valuation

The increase in the value of an asset over time, either due to increased demand, weakening supply, inflation or increased money supply

A debt-to-income ratio which compares gross monthly income to combined monthly housing expense (PITI) and total other monthly debt service

A debt-to-income ratio which compares gross monthly income to combined monthly housing expense (PITI) and total other monthly debt service

A document authorizing construction of an approved building of a particular kind on a particular lot

A document issued by a local building or Zoning authority attesting that the premises have been built and maintained according to the provisions of building or zoning ordinances

A valuation methods which compares a subject property’s characteristics with those of comparable properties which have recently sold in similar transactions, adjusting valuation of the comparable transactions according to the presence, absence, or degree of characteristics which influence value

ACQUISITION COST

ADJUSTABLE-RATE MORTGAGE (ARM)

AMORTIZE

APPRAISAL

APPRAISED VALUE

APPRECIATION

BACK-END RATIO

BACK-END RATIO

BUILDING PERMIT

CERTIFICATE OF OCCUPANCY (CO)

COMPARISON VALUATION (COMP

ANALYSIS)

18

The periodic release of construction loan funds in installments or progress payments at specific construction milestones (i.e. foundation completion, delivery and set of modular units)

The value of ownership in real property, either acquired through cash contributed at acquisition or accumulated through appreciation and amortization (the difference between the current market value of the property and the amount the owner still owes on the mortgage)

A fully amortizing mortgage loan where the interest rate remains the same throughout the term of the loan, as opposed to loans where the interest rate may adjust (See ARMs)

A debt-to-income ratio which compares gross monthly income to monthly housing expense (PITI)

A ratio used in real estate construction finance used to compare the amount of the loan available to a project to the project’s Acquisition Cost

A ratio used in real estate construction finance used to compare the amount of the loan available to a project to the project’s Appraised Value

A pledge of the title to real property, or the use of specified real property, as collateral for a Promissory Note

The process, typically at CO, whereby construction financing becomes permanent financing (a mortgage)

Liquid assets, including cash, stocks, retirement funds, etc., that a borrower must have on hand after closing to demonstrate a capacity to service debt, even in the case of hardship. Non-cash assets may be discounted depending upon the lender. PCL may be calculated as some percentage of hard costs, the construction loan or x months of PITI

DISBURSEMENT (DRAW)

EQUITY

FIXED-RATE MORTGAGE

FRONT-END RATIO

LOAN-TO-COST (LTC)

LOAN-TO-VALUE (LTV)

MORTGAGE

PERMANENT LOAN CONVERSION

(TAKE-OUT)

POST-CLOSING LIQUIDITY/

RESERVES (PCL)

A construction loan which is automatically converted to a mortgage loan after the certificate of occupancy is issued, without the need for a second closing and accompanying qualifying and fees

CONSTRUCTION TO PERMANENT (C-P)

FINANCING

A loan where the proceeds are used to finance construction. Typical characteristics include a disbursement/draw schedule, interest-only payments during construction and conversion to a permanent mortgage upon construction completion

CONSTRUCTION LOAN

19

A valuation ratio determined by the value (acquired or appraised) of a property divided by the total square footage of heated livable space. Particularly prevalent in Comparable valuation

PRICE PER SQUARE FOOT ($/SQ FT

A financial instrument that contains a written promise by one party to pay another a definite sum of money typically containing the terms pertaining to the indebtedness by the lender to the borrower, including the amount, interest rate, maturity date, etc.

PROMISSORY NOTE

Principal, interest, (property) taxes and insurance. Utilized in summing the entirety of a borrower’s monthly obligation to a lender when examining the borrower’s capacity to service the debt

PITI

Date post:	16-Jul-2018
Category:	Documents
Upload:	hoangthuy
View:	219 times
Download:	0 times

FEASIBILITY STUDY - Homes study feasibility study ... laundry mech 1 hallway line of soffit above...

Documents