Lantern Lane App

8/6/2019 Lantern Lane App

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Print Preview - FinalApplicationTax Credits, RPP Loans, and/or Tax Exempt Bond Loans

roject Description

oject Name: Lantern Lane

dress: 129 Lantern Lane

ty: Raeford County: Hoke Zip:

ensus Tract: 9703 Block Group: 4

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

olitical Jurisdiction: City of Raeford

risdiction CEO Name:First:John Last:McNeill

Title: Mayor

risdiction Address: 315 N. Main Street

risdiction City: Raeford Zip:

risdiction Phone:

e Latitude:

e Longitude:

oject Type: Rehab

this project a previously awarded tax credit development? No

If yes, what is the project number: Is this a request for supplementalcredits?

w Construction/Adaptive Reuse:his project a follow-on (Phase II, etc) to a previously-awarded tax credit development project?

If yes, list names of previous phase(s):

ehab:

umber of residents holding Section 8 vouchers: 12

l the project meet Energy Star standards as defined in Appendix B? No

es a community revitalization plan exist? No

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

ll the project include a Community Service Facility under IRS Revenue Ruling 2003-77?o

ttps://www.nchfa.org/Rental/RTCApp/(S(5k1dfx55...C1F806117&SNID=6D6C0D8C19054E54A57BAD2FDA3AA292 (1 of 29)9/16/2008 1:47:13 PM

28376

28376

(910)875-8161

34.9684

-79.2263


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If yes, please describe:

rget Population:Family

ll the project be receiving project based federal rental assistance? Yes

If yes, provide the subsidy source: RD and number of units:

icate 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 andstate codes.)

Number of Units:

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

Number of Units:

Remarks:


22

3

5


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pplicant Information

icate below an individual or a validly existing entity (a corporation, nonprofit, limited partnership or LLC) as the official applicant. UndeP Section III(C)(5) only this individual or entity will be able to make decisions with regard to this application. If awarded the applicant

come part of the ownership entity. The applicant will execute the signature page for this application.

pplicant Name: Pendergraph Development, LLC

dress: PO Box 19691

ty: Raleigh State: NC Zip:

ontact: First: Frankie Last:Pendergraph Title:

lephone:

Phone:

x:

mail Address:

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


27619

(919)755-0558

(919)861-6068

[email protected]


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te Description

al Site Acreage: Total Buildable Acreage:

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

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

Storm Sewer Water Sanitary Sewer Electric

he demolition of any buildings required or planned? No

If yes, please describe:

e existing buildings on the site currently occupied? Yes

If yes:(a) Briefly describe the situation:

Due to the scope of work being completed, we do not anticipate having to displace any residents, except formaybe one night. We will offer residents a night in the hotel if necessary and cover their meals for the time

they will be away from their home. The general contractor will be made aware of the possible overnightdisplacement and this will be handeled within their contract.

(b) Will tenant displacement be temporary? Yes(c) Will tenant displacement be permanent? No

he site directly accessed by an existing, paved, publicly maintained road? Yes

If no, please explain:

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:


8.01 8.01


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



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te Control

es 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 fopurchase of the property and the seller of the property?NoIf yes, specify the relationship:

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

(D) Enter Purchase Price:


12/31/2008

1,899,000


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oning

esent zoning classification of the site:RMF-12

multifamily use permitted?Yes

e variances, special or conditional use permits or any other item requiring a public hearing needed to develop this proposal?No

If yes, have the hearings been completed and permits been obtained?

If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for obta

them:

e there any existing conditions of historical significance located on the project site that will require State Historic Preservation office re

If yes, describe below:

e there any existing conditions of environmental significance located on the project site?No

If yes, describe below:



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wnership Entity

wner Name: Lantern Lane, LLC

dress: PO Box 19691

y: Raleigh State:NC Zip:

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

ote: Do not submit social security numbers for individuals.

tity Type: Limited Liability Company

tity Status: To Be Formed

the applicant requesting that the Agency treat the application as Non-Profit sponsored? No

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

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

Org: FWP Lantern Lane, LLC

st Name: Frankie Last Name: Pendergraph Function: Managing Memberdress: PO Box 19691

ty: Raleigh State: NC Zip: 27619

one: Fax:

Mail: Nonprofit: No

Org: Berkshire Group, LLC

st Name: Lee Last Name: VanDeCarr Function: Managing Member

dress: P.O. Box 19691

ty: Raleigh State: NC Zip: 27619

one: Fax:

Mail: Nonprofit: No


27619

(919)755-0558 (919)861-6068

[email protected]

(919)755-0558 (919)861-6068

[email protected]


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nit Mix

e Median Income for Hoke county is $48,100.

w Income Units

Type # BRs Net Sq.Ft.Total

# Units#Units

MonthlyRent

UtilityAllowance

MandatoryServ. Fees

**TotalHousing Exp.

Gdn Apt 1

Gdn Apt 2

Utilities included in rents: Water/Sewer Electric Gas Other trash

mployee Units (will add to Low Income Unit total)

ype # BRs Net Sq.Ft.Total

# Units#Units

MonthlyRent

UtilityAllowance

MandatoryServ. Fees

**TotalHousing Exp.

tilities included in rents: Water/Sewer Electric Gas Other

rket Rate Units

ype # BRs Net Sq.Ft.Total

# Units#Units

MonthlyRent

UtilityAllowance

MandatoryServ. Fees

**TotalHousing Exp.

ti li ties included in rents: Water/Sewer Electric Gas Other

atistics

AllUnits

Units

Gross MonthlyRental Income

Low Income.......

Market Rate.......

Totals...............

oposed number of residential buildings: Maximum number of stories in buildings:

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

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

Elevators - Number of Elevators:

uare Footage Information


635 12 1 360 81 0 441

808 36 2 393 107 0 500

48 3 18468

48 3 18468

24 1

680


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oss Floor Square Footage:

tal Net Sq. Ft. (All Heated Areas):

tes

Please refer to the Income Limits and Maximum Housing Expense Table to ensure that Total Monthly Tenant Expenses for low inc

units are within established thresholds.


38,606

37,354
http://www.nchfa.com/lib/html/rental/Median%20Income%20Charts/income_limits.htmhttp://www.nchfa.com/lib/html/rental/Median%20Income%20Charts/income_limits.htm


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argeting

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

BRs Units %

targeted at percent of median income affordable to/occupied by




tal Low Income Units:

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


4 50

16 50

8 60

20 60

48


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unding Sources

Source AmountNon-

Amortizing*Rate(%)

Term(Years)

Amort.Period(Years)

AnnualDebt

Service

Bank Loan

RPP Loan

Local Gov. Loan - Specify:

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:



Tax Exempt Bonds

State Tax Credit(Loan)

State Tax Credit(Direct Refund)

Equity: Federal LIHTC

Non-Repayable Grant

Equity: Historic Tax Credits

Deferred Developer Fees

Owner Investment

Other - Specify:

Total Sources**

"Non-amortizing" indicates that the loan does not have a fixed annual debt service. For these items, you must fill in 20-year debt serbelow.

Total Sources must equal total replacement cost in Project Development Cost (PDC) section.

timated pricing on sale of Federal Tax Credits: $0.

emarks concerning project funding sources:ease be sure to include the name of the funding source(s))

e new owner will combine the two USDA RD loans and pay down the total balance by


1,378,000 1.00 50 50 35,033

1,015,185 0 30 30 0

1,738,379

164

4,131,728

75


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proximately $96,000 to end up with a total new USDA loan of $1,378,000.



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evelopment Costs

Item Cost Element TOTAL COSTEligible Basis

30% PV 70% PV

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

2 Demolition (Rehab / Adaptive Reuse only)

3 On-site Improvements

4 Rehabilitation

5 Construction of New Building(s)

6 Accessory Building(s)

7 General Requirements (max 6% lines 2-6)

8 Contractor Overhead (max 2% lines 2-7)

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

10 Construction Contingency (max 3% lines 2-9, Rehabs 6%)

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

12 Architect's Fee - Inspection

13 Engineering Costs

SUBTOTAL (lines 1 through 13)

14 Construction Insurance (prorate)

15 Construction Loan Orig. Fee (prorate)

16 Construction Loan Interest (prorate)

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate)

19 Water, Sewer and Impact Fees

20 Survey

21 Property Appraisal

22 Environmental Report

23 Market Study

24 Bond Costs

25 Bond Issuance Costs

26 Placement Fee

27 Permanent Loan Origination Fee

28 Permanent Loan Credit Enhancement

29 Title and Recording


1,738,800 1,640,212

1,250,000 1,250,000

75,000 75,000

26,500 26,500

79,500 79,500

85,860 85,860

20,000 20,000

10,000 10,000

0 0

3,285,660

10,700 10,700

128,400 64,200

15,000 15,000

6,500 6,500

12,000 12,000

4,300 4,300

10,000


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30 Real Estate Attorney

31 Other Attorney's Fees

32 Tax Credit Application Fees (Preliminary and Full)

33 Tax Credit Allocation Fee (0.60% of line 59, minimum $7,500)

34 Cost Certification / Accounting Fees

35 Tax Opinion

36 Organizational (Partnership)

37 Tax Credit Monitoring Fee


38 Furnishings and Equipment

39 Relocation Expense

40 Developer's Fee

41

42

43 Rent-up Expense

44

45


46 Rent up Reserve

47 Operating Reserve

48

49

50 DEVELOPMENT COST (lines 1-49)

51 Less Federal Financing

52 Less Disproportionate Standard

53 Less Nonqualified Nonrecourse Financing

54 Less Historic Tax Credit

55 TOTAL ELIGIBLE BASIS

56 Applicable Fraction (percentage of LI Units)

57 Basis Before Boost

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

59 TOTAL QUALIFIED BASIS


186,900

35,000 25,000

4,000 4,000

2,200

22,268

10,000 10,000

5,000

33,600

112,068

7,500 7,500

360,000 360,000

Lender Inspection Fee 5,000 5,000

Other Basis Expense (s

Other Non-basis Expen

Other Non-basis Expen

372,500

14,400

Lease Up Reserve

Mgmt Lease Up/Tenant

3,971,528 1,640,212 2,071,060

0

3,711,272 1,640,212 2,071,060

100.00% 100% 100%

3,711,272 1,640,212 2,071,060

100.00% 100.00%

3,711,272 1,640,212 2,071,060


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60 Tax Credit Rate

61 Federal Tax Credits at Estimated Rate

62 Federal Tax Credits at 9.00% or 3.75% (maximum $1,000,000)

63 Federal Tax Credits Requested

64 Land Cost

65 TOTAL REPLACEMENT COST

FEDERAL TAX CREDITS IF AWARDED

Comments:

Total Replacement Cost per unit:31,601


3.40 8.50

231,807 55,767 176,040

247,903 61,508 186,395

220,209 55,767 164,442

160,200

4,131,728

247,903


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arket Study Information

ase provide a detailed description of the proposed project:

ntern Lane (Lantern Lane I and II) is a 48 unit family complex that has twelve one bedroom and 36 twodroom units. The site has 24 duplex units and an office/community building. The development is financedough Rural Development and has 22 units of rental assistance. The site is located at 129 Lantern Lane in

aeford. The site is located in the southern most end of Downtown Raeford just outside of the Historicstrict. Raeford is the County seat for Hoke County.

s our desire to improve the overall physical and financial condition of the property, and improve theality of life of the current and future residents. We have submitted a detailed needs assessment in ourplication package but would like to note some items as follows: improve the connectivity of sidewalks forndicap accessible routes to all buildings and amenities, add much needed recreational and picnic areaschildren and adults, install new energy efficient vinyl windows, replaced old and damaged appliances,

place old and inefficient HVAC units and air handlers, install new water heaters as needed, replace orpair cabinets were needed, install new carpet and vinyl flooring, repair damaged sheetrock from leakshere needed, fix damaged area from poor installation of vinyl siding on phase I and replace on phase II,stall new gable roof and porch over units with saltbox design roofing etc Remodel existing officeilding to accommodate more area for resident usage.

ou will note a more descriptive needs assessment in the work write-up attached to this application.

nstruction (check all that apply):

Brick Vinyl Wood HardiPlank Balconies/Patios Sunrooms Front Porches

Front Gables or Dormers Wide Banding or Vertical/Horizontal Siding

Other:

Within the package is a detailed scope of work to be performed at the site. However, we would like to pointout that all old windows will be removed and replaced with new energy efficient vinyl clad windows withgrills between the glass. New six panel insulated doors will be installed at all front, rear and storage roomdoors. The units that have the salt box look will have a new porch with gable roof constructed over thefront entrance for protection from the elements and to help enhance the curb appeal of the property. Theoffice will be renovated to allow for more on site activities such as a muti-purpose room and computer

learning center.

ve you built other tax credit developments that use the same building design as this project?No

If yes, please provide name and address:

e Amenities:

new playground and tot lot will be installed that will be handicap accessible, have benches and will haveuipment for older children and tots. A new picnic shelter will be constructed with seating, tables andlling station. An arbor/trellis will also be installed for the residents use. There will be three areas ofating located through out the property for the residents benefit.

site Activities:

is property is financed with funds from Rural Development so on site activities will follow their guidelines



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so. We anticipate having computer classes, health education, first aid courses, and various childrenstivities geared towards different age groups, holiday events, and much more.

ndscaping Plans:

s our plan to remove all old over grown or dead plant material, rework current plant beds installing newant material as described in the QAP. We will also make sure all site amenities and current handicap

rking and walks conform to handicap/accessibility requirements. There will also be new hardscape itemsstalled like, picnic shelter, playground, benches and trellis.

erior Apartment Amenities:

e proposed development is off an existing property. Therefore there will be no changes to the actual footnt of each unit, however the office/community building will be enlarged to accommodate onsite activitiesthe residents. The existing units have ample storage, laundry areas, and patios.

you plan to submit additional market data (market study, etc.) that you want considered? No

If yes, please make sure to include the additional information in your pre-application packet.



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

he current development with improvements will be similar in scale and aesthetics to the surrounding uses.

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

Grocery StoreCommunity/Senior

Center

Mall/Strip Center Hospital

Outdoor Athletic Fields Pharmacy

Day Care/After School Basic Health Care

Schools

Public Transportation

op

Convenience Store

Public Parks

Gas Station

Library

her facilities or services:

aeford is the county seat and has many historic features to the community. The Raeford-Hoke museum iscated on Highland Street. It is a very unique facility, containing government and military displays andany early life memorabilia.


5.75

5 10

5 1.1

7 .25

9

9

9


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evelopment Team

ovide contact information for development team members below:

nagement Agent

ompany: Pendergraph Management, LLC

dress: PO Box 19691


one Email:

ontact Name: First: Frankie Last: Pendergraph

chitect

ompany: R. Peryton Holloman, Jr

dress: 8321 Harps Mill Road


one Email:

ontact Name: First: Peyton Last: Holloman

orney

ompany: The Brockmann Law Firm

dress: 8037 Corporate Center Drive

ty: Charlotte State: NC Zip:

one Email:

ontact Name: First: Todd Last: Brockmann

estor

ompany: Apollo Equity Partners

dress: 2101 Rexford Road, Suite 375W

ty: Charlotte State: NC Zip:

one Email:

ontact Name: First: Brian Last: Flanagan

nsultant/Application Preparer (if different from developer)

ompany:

dress:

ty: State: Zip:

one Email:

ontact Name: First: Last:


27619

(919)755-0558 [email protected]

27615

(919)845-1186

28226

(704)541-5779 tbrockmann@brockmannlawfirm.

28211



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neral Contractor Identity of Interest?

ompany: Caliber Builders, LLC

dress: PO Box 19691


one Email:

ontact Name: First: Frankie Last: Pendergraph


27619



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rojected Operating Costs

Project Operations (Year One)

Administrative Expenses

Advertising

Office Salaries

Office Supplies

Office or Model Apartment Rent

Management Fee

Manager or Superintendent Salaries

Manager or Superintendent Rent Free Unit

Legal Expenses (Project)

Auditing Expenses (Project)

Bookkeeping Fees/Accounting Services

Telephone and Answering Service

Bad Debts

Other Administrative Expenses (specify):

SUBTOTAL

Utilities Expense

Fuel Oil

Electricity (Light and Misc. Power)

Water

Gas

Sewer

SUBTOTAL

Operating and Maintenance Expenses

Janitor and Cleaning Payroll

Janitor and Cleaning Supplies

Janitor and Cleaning Contract

Exterminating Payroll/Contract

Exterminating Supplies

Garbage and Trash Removal

Security Payroll/Contract

Grounds Payroll


1,800

19,000

2,500

28,224

500

4,000

1,200

training, computer, soft3,000

60,224

2,500

1,500

1,500

5,500

1,200

600


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Grounds Supplies

Grounds Contract

Repairs Payroll

Repairs Material

Repairs Contract

Elevator Maintenance/Contract

Heating/Cooling Repairs and Maintenance

Swimming Pool Maintenance/Contract

Snow Removal

Decorating Payroll/Contract

Decorating Supplies

Other (specify):

Miscellaneous Operating & Maintenance Expenses

SUBTOTAL

Taxes and Insurance

Real Estate Taxes

Payroll Taxes (FICA)

Miscellaneous Taxes, Licenses and Permits

Property and Liability Insurance (Hazard)

Fidelity Bond Insurance

Workmen's Compensation

Health Insurance and Other Employee Benefits

Other Insurance:

SUBTOTAL

Supportive Service Expenses

Service Coordinator

Service Supplies

Tenant Association Funds

Other Expenses (specify):

SUBTOTAL

Reserves

Replacement Reserves

SUBTOTAL


16,400

13,500

5,000

4,000

4,000

2,800

47,500

25,000

3,000

500

11,000

250

600

3,000

43,350

0

16,800

16,800


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TOTAL OPERATING EXPENSES

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

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

PER UNIT PER YEAR


173,374

131,574

48

2,741


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inimum Set-Asides

NIMUM REQUIRED SET ASIDES (No Points Awarded):

Select one of the following two options:

20% of the units are rent restricted and occupied by households with incomes at or below 50% of the median income (Note: NCredit Eligible Units in the the project can exceed 50% of median income)

40% of the units are rent restricted and occupied by households with incomes at or below 60% of the median income (Note: NCredit Eligible Units in the the project can exceed 60% of median income)

If requesting RPP funds:40% of the units are occupied by households with incomes at or below 50% of median income.

State Tax Credit and QAP Targeting Points:Low Income County:

At least forty percent (40%) of qualified units will be affordable to households with incomes at or below fifty percent (50%) of comedian income.At least forty percent (40%) of qualified units will be affordable to and occupied by households with incomes at or below fifty pe(50%) of county median income.

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

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



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ull Application Checklist

PLEASE indicate which of the following exhibits are attached to your application. Others may be required as noted.

A Nonprofit Organization Documentation or For-profit Corporation Documentation

B Current Financial Statements/Principals and Owners (signed copies)

C Ownership Entity Agreement, Development Agreement or any other agreements governing development services

D Management Agent Agreement

E Owner and Management Experience & Management Questionnaire (Appendix C)

F Local Government Letter or Letter from Certified Engineer or Land Surveyor Confirming Floodplain Designation with Mapshowing all flood zones (original on letterhead, no fax or photocopies)

G Local Government Letter Confirming Zoning including any pending notices or hearings (original on letterhead, no fax orphotocopies)

H Letters from Local Utility Providers regarding availability and capacity (original on letterhead, no fax or photocopies)

I Documentation from utility company or local PHA to support estimated utility costs

J Appraisal (required for land costs greater than $15,000 and for all Adaptive Re-use and Rehab projects)

K Site plan, floor plans and elevations for all projects. Scope of work for Adaptive Re-use and Rehab projects. (Full Size, 24inches)

L Hazard and structural inspection and termite reports (Adaptive Re-use and Rehab projects only)

M Copy of certificate of occupancy or proof of placed-in-service date (Rehabs Only)

N Proposed Relocation Plan including relocation budget and copies of notices. Required for all Rehabs and any projectsinvolving existing occupants of any dwell ings to be rehabbed or demolished.

O Evidence of Permanent Loan Commitment and other sources of funds ( i.e. Equity letter, AHP, RD and local governmentfunds). For Rehabs with existing loans provide 1) copies of loan documents, 2) current loan balances from existing lenderreserve balances, 3) letter from lender that outlines assumption requirements.

P Local Housing Authority Agreement and Project Based Rental Assistance Letter, if applicable (Sample letters provided inAppendix I). For projects with existing PBRA contracts, provide a copy of the current contract and bank statement or otherdocumentation verifying reserve balances and annual reserve contribution requirements.

Q Statement regarding terms of Deferred Developer Fee. If a nonprofit is involved, a resolution from their board approvingdeferral of fee is required.

R Inducement Resolution (Tax-Exempt Bond Financed Projects only)

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Lantern Lane App

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