Royal Hills Apartments - 2009 VA

Application for Reservation of Low Income Housing Tax Credits

Royal Hills Apartments
Front Royal, VA
Applicant Royal Hills Family, LP 212 W. Main St., Ste 301A Salisbury, MD 21801 Contact David Layfield Green Street Housing, LLC 212 W. Main St., Ste 301A Salisbury, MD 21801 410-334-3671

2009 Federal Low Income Housing Tax Credit Program

Application For Reservation
Deadline for Submission 9% Competitive Credits Applications Must Be Received At VHDA No Later Than 5:00 PM Richmond VA Time On May 15 2009 Richmond, 15, Tax Exempt Bonds Applications should be received at VHDA at least one month before the bonds are priced (if bonds issued by VHDA), or 75 days before the bonds are issued (if bonds are not issued by VHDA)

Virginia Housing Development Authority 601 South Belvidere Street Richmond, Virginia 23220-6500

v1.4.2009

Low Income Housing Tax Credit Application for Reservation
Please indicate if the following items are included with your application by checking the appropriate boxes. Your assistance in organizing the submission in the following order, and actually using tabs to mark them as shown, will facilitate review of your application. Please note that all mandatory items must be included for the application to be processed. The inclusion of other items may increase the number of points for which you are eligible under VHDA's point system of ranking applications, and may assist VHDA in its determination of the appropriate amount of credits that it may reserve for the development. You are therefore encouraged to submit as much requested information as is available, but their inclusion is not mandatory for review of your application.

Electronic Copy of the Microsoft Excel Based Application (MANDATORY) Hard Copy of All Application Pages With Signature (MANDATORY) Scanned Copy of the Tax Credit Application with all Attachments (excluding market study and plans & specs) (MANDATORY) $750 Application Fee (MANDATORY) Tab A: Documentation of Development Location: A.1 Qualified Census Tract Certification A.2 Revitalization Area Certification Location Map Surveyor's Certification of Proximity To Public Transportation Tab B: Partnership or Operating Agreement, including chart of ownership structure with percentage of interests (MANDATORY) Tab C: Virginia State Corporation Commission Certification (MANDATORY) Tab D: Principal's Previous Participation Certification and Resumé (MANDATORY) Tab E: Nonprofit Questionnaire (MANDATORY for points or pool) The following documents need not be submitted unless requested by VHDA: -Nonprofit Articles of Incorporation -IRS Documentation of Nonprofit Status -Joint Venture Agreement (if applicable) -For-profit Consulting Agreement (if applicable) Tab F: Architect's Certification (MANDATORY) Tab H: PHA / Section 8 Notification Letter Tab I: Local CEO Letter Tab J: H T bJ Homeownership Pl hi Plan Tab K: Site Control Documentation (MANDATORY) Tab L: Plan of Development Certification Letter Tab M: Zoning Certification Letter Tab N: Copies of 8609s To Certify Developer Experience Tab O: (Reserved) Tab P: Plans and Specifications and Work Write-Up (MANDATORY) Tab Q: Documentation of Rental Assistance Tab R: Documentation of Operating Budget Tab S: Documentation of Project Budget Tab T: Documentation of Financing Sources Tab U: (Reserved) Tab V: Nonprofit or LHA Purchase Option or Right of First Refusal Tab W: Original Attorney's Opinion (MANDATORY) Tab X: (Reserved) Tab Y: Marketing Plan for units meeting accessibility requirements of HUD section 504 Tab Z Market Study (MANDATORY-Application will be disqualified if market study not submitted with the application)

2009

Submission Checklist

Low-Income Housing Tax Credit Application For Reservation VHDA TRACKING NUMBER I. General Information
All code "Section" references are to, and the term "IRC" shall be deemed to mean, the Internal Revenue Code of 1986, as amended.

2009-Z-109

5/14/2009

(Date of Application)

A. Development Name and Location: 1. Name of Development 2. Address of Development
Front Royal
(City)

Royal Hills Apartments 31 Royal Lane
(Street)

Virginia
(State)

22630
(Zip Code)

3.

4. 5. 6. 7. 8. 9. 10.

If complete address is not available, provide longitude and latitude coordinates (x,y) from location on site your surveyor deems appropriate. Documentation from surveyor attached (TAB A) (Only necessary if street address or street intersections are not available. (Coordinates should be the same as those listed on pg 13, if applicable) The Circuit Court Clerk's office in which the deed to the property is or will be recorded: City/County of Warren County (ie; Richmond City, Chesterfield County; see application manual) Does the site overlap one or more jurisdictional boundaries? Yes No If yes, what other City/County is the site located in besides the one mentioned above? Is the development located in a Metropolitan Statistical Area? Yes No Census Tract the development is located in: 51187020600 Is this a Qualified Census Tract: Is the development located in a Difficult Development Area? Is the development located in a revitalization area? Is the development an existing RD or HUD S8/236 development? Yes No Yes Yes No (If yes, attach required form in TAB A) No (If yes, attach required form in TAB Q) No (If yes, attach required form in TAB A)

Note: If there is an identity of interest between the applicant and the seller in this proposal, and the applicant is seeking points in this category, then the applicant must either waive their rights to the developer's fee or other fees associated with acquisition and/or rehabilitation, or obtain a waiver of this requirement from VHDA prior to application submission to receive these points.

11. 12. 13.

a. Applicant agrees to waive all rights to any developer's fee or other fees associated with acquisition and/or rehab. Yes n/a b. Applicant has obtained a waiver of this requirement from VHDA prior to the application submission deadline. Yes n/a Is the development located in a census tract with a poverty rate <10% with no tax credit units currently present? Yes No Is the development listed on the RD 515 Rehabilitation Priority List? Yes No Congressional District 10 http://dlsgis.state.va.us/congress/2001PDFs/chap7Tab.pdf Planning District 7 http://www.vapdc.org/aboutpdcs.htm#PDC%20Map State Senate District 26 http://dlsgis.state.va.us/senate/2001PDFs/Chap2Tab.pdf State House District 18 http://dlsgis.state.va.us/House/2001HousePDFs/Chap1Tab.pdf Location Map Attached (TAB A)

14.

B. Project Description: In the space provided below, give a brief description of the proposed project.
Royal Hills Apartments is an existing 88 unit RD financed family apartment community located in Front Royal, VA.  The property was built in two phases in 1983 and 1987 and is in need of rehabilitation.  Rehab will include adding four new units, replacement of siding, adding brick, new facades, Energy  Star windows and appliances, high efficiency HVAC systems, new kitchen cabinets, new bathrooms, floor coverings, interior and exterior lighting,  landscaping, playground equipment, and a new community building.

2009

Page 1

Low Income Housing Tax Credit Application For Reservation C. Reservation Request 1. 2. Total annual credit amount request (Must be the same as Part IX-D8) Credits requested from: 9% Credits Nonprofit Set-Aside (All nonprofit owned developments which meet tests described in Part II-D hereof may select this) Local Housing Authorities Northern Virginia MSA Pool Richmond MSA Pool Non-Competitive Pool (Preservation) Tax Exempt Bonds new construction, or rehabilitation, or acquisition and rehabilitation. Federal Subsidies The development will not receive federal subsidies. This development will receive federal subsidies for: all buildings or some buildings. Tidewater MSA Pool Small MSA/Micropolitan Pool Rural Pool Non-Competitive Pool (Disability) $921,937

D. Type(s) of Allocation/Allocation Year 1. Regular Allocation All of the buildings in the development are expected to be placed in service this year. For those buildings the owner will, this year, request an new construction, or allocation of 2008 credits for rehabilitation, or acquisition and rehabilitation. 2. Carryforward Allocation All of the buildings in the development are expected to be placed in service within two years after the end of this calendar year, 2009, but the owner will have more than 10% basis in the development before the end of six months following allocation of credits. For those buildings, the owner requests a carryforward allocation of 2009 credits pursuant to Section 42(h)(1)(E) for: new construction, or rehabilitation, or acquisition and rehabilitation (even if you acquired a building this year and "placed it in service" for the purpose of the acquisition credit, you cannot receive the 8609 form for it until the rehab 8609 is issued for that building once the rehab work is "placed in service" in 2010 or 2011). 3. Federal Subsidies The development will not receive federal subsidies. This development will receive federal subsidies for: all buildings or some buildings.
2009

Page 2

Low-Income Housing Tax Credit Application For Reservation E. Acquisition Credit Information
NOTE: If no credits are being requested for existing buildings being acquired for the development, so indicate and go on to Part F: No Acquisition

Ten-Year Rule For Acquisition Credits All buildings satisfy the 10-year look-back rule of IRC Section 42 (d)(2)(B), including the 10% basis/$15,000.00 rehab costs ($10,000 for Tax Exempt Bonds) per unit requirement. All buildings qualify for an exception to the 10-year rule under IRC Section 42(d)(2)(D)(i), Subsection (I) Subsection (II) Subsection (III) Subsection (IV) Subsection (V) A waiver of the 10-year rule for all buildings has been or will be requested from the Department of the Treasury pursuant to IRC Section 42(d)(6)(B) Different circumstances for different buildings: Attach a separate sheet and explain for each building. F. Rehabilitation Credit Information NOTE: If no credits are being requested for rehabilitation expenditures, so indicate and go req ested e pendit res on to Section II. No Rehabilitation Minimum Expenditure Requirements All buildings in the development satisfy the rehab costs per unit requirement of IRC Section 42(e)(3)(A)(ii). All buildings in the development qualify for the IRC Section 42(e)(3)(B) exception to the 10% basis requirement (4% credit only). All buildings in the development qualify for the IRC Section 42(f)(5)(B)(ii)(II) exception. Different circumstances for different buildings. Attach a separate sheet and explain for each building.

2009

Page 3

Low-Income Housing Tax Credit Application For Reservation II. OWNERSHIP INFORMATION
NOTE: VHDA may allocate credits only to the tax-paying entity which owns the development at the time of the allocation. The term "Owner" herein refers to that entity. Please fill in the legal name of the owner. The ownership entity must be formed prior to submitting this application. Any transfer, direct or indirect, of partnership interests (except those involving the admission of limited partners) prior to the placed-in-service date of the proposed development shall be prohibited, unless the transfer is consented to by VHDA in its sole discretion. IMPORTANT: The Owner name listed on this page must match exactly the owner name listed on the Virginia State Corporation Commission

Must be an individual or legally formed entity

A. Owner Information: Name Royal Hills Family, LP Contact Person First: David Address 212 W. Main St., Ste 301A Salisbury
(City)

Middle: Franklin
(Street)

Last: Layfield 21801
(Zip Code)

Maryland
(State)

Federal I. D. No. 26-4760590 Phone 410-334-3671 Fax Type of entity: Limited Partnership Individual(s)

(If not available, obtain prior to Allocation) 888-330-8115 Email address [email protected] Other Corporation

Owner's organizational documents (e.g. Partnership agreements) attached (Mandatory TAB B) Certification from Virginia State Corporation Commission attached (Mandatory TAB C)

Principal(s) involved (e.g. general partners, LLC members, controlling shareholders, etc.): Names ** Phone Type Ownership % Ownership

Royal Hills, LLC y , David F. Layfield, Jr O. Palmer Gillis, III Dwight H. Miller James B. Barnes Bradley J. Gillis

410-334-3671 4103343671 4103343671 4103343671 4103343671 4103343671

General Partner LLC Member LLC Member LLC Member LLC Member LLC Member

This should be 100% of the GP or managing member interest: separate partnerships or corporations which may comprise those components.

100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

** These should be the names of individuals who comprise the GP or managing members, not simply the names of

Principals' Previous Participation Certification attached (Mandatory TAB D), resumé, & ownership structure chart.

B. Seller Information: Name Royal Hills Ltd Ptnrshp & Royal Hills Ph II Ltd PContact PersonRobert N. Bradley Address PO Box 8187, 306 McClanahan St., SW, Ste F Phone Roanoke, VA 24014 Is there an identity of interest between the seller and owner/applicant? If yes, complete the following: Principal(s) involved (e.g. general partners, controlling shareholders, etc.) Phone Type Ownership Names Yes

540-767-3108 No

% Ownership 0.00% 0.00% 0.00% 0.00%

2009

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Low-Income Housing Tax Credit Application For Reservation C. Development Team Information: Complete the following as applicable to your development team. Tax Attorney: Firm Name: Address: Phone: Tax Accountant: Firm Name: Address: Phone: Consultant: Firm Name: Address: Phone: Richard M. Price Nixon Peabody 401 9th Street, NW, Suite 900, Washington, DC 20004 202-585-8716 TBD Related Entity? Yes No

1.

Fax: Related Entity?

202-585-8080 Yes No

2.

Fax: Related Entity? Role: Fax: No Yes No

3.

4.

Management Entity (Contact): Lester Severe Related Entity? Yes Firm Name: TM Associates Mangement Inc Address: 15825 Shady Grove Road, Suite 55, Rockville, MD 20850 Phone: 240-683-0300 Fax: 240-683-0727 Contractor (Contact): Dwight Miller Firm Name: Gillis Gilkerson, Inc Address: 212 W. Main St., Ste 305, Salisbury, MD 21801 Phone: 410-749-4821 Architect: Firm Name: Address: Phone: Kevin B. Oldland AWB Engineers, Inc 1942 Northwood Drive, Salisbury, MD 21801 410-742-7299 TBD Related Entity? Yes

5.

No

Fax: Related Entity?

410-749-7934 Yes No

6.

Fax: Related Entity?

410-742-0273 Yes No

7.

Real Estate Attorney: Firm Name: Address: Phone: Mortgage Banker: Firm Name: Address: Phone: Other (Contact): Firm Name: Address: Phone:

Fax: Related Entity? Yes No

8.

Craig Hacket Bonneville Multifamily 111 Broadway, Suite 1250, Salt Lake City, UT 84111 801-323-1077 Byron Waters USDA Rural Development 1606 Santa Rosa Rd., Suite 238, Richmond, VA 23299 804-287-15547

Fax: Related Entity? Role: Lender Fax:

801-323-1001 Yes No

9.

804-287-1784

2009

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Low-Income Housing Tax Credit Application For Reservation D. Nonprofit Involvement:

Applications For 9% Credits - Must be completed in order to compete in the nonprofit tax credit pool. All Applicants - Must be completed for points for nonprofit involvement under the ranking system.

Tax Credit Nonprofit Pool Applicants: To qualify for the nonprofit pool, an organization described in IRC Section 501 (c)(3) or 501 (c)(4) and exempt from taxation under IRC Section 501 (a), whose purposes include the fostering of low-income housing:
1. 2. 3. 4. 5. Must "materially participate" in the development and operation of the project throughout the compliance period, Must own all general partnership interests in the development . Must not be affiliated with or controlled by a for-profit organization. Must not have been formed for the principal purpose of competition in the nonprofit pool, and Must not have any staff member, or member of the nonprofit's board of directors materially participate in the proposed project as a for-profit entity.

All Applicants: To qualify for points under the ranking system, the nonprofit's involvement need not necessarily satisfy all of the requirements for participation in the nonprofit tax credit pool.
1. Nonprofit Involvement (All Applicants) If there is no nonprofit involvement in this development, please indicate by checking here: and go on to part III Mandatory Questionnaire If there is nonprofit involvement, you must complete the Non-Profit Questionnaire Questionnaire attached (Mandatory TAB E) Type of involvement Nonprofit meets eligibility requirement for points only, not pool or Nonprofit meets eligibility requirements for nonprofit pool and points. 4. Identity of Nonprofit (All nonprofit applicants) The nonprofit organization involved in this development is: the Owner the Applicant (if different from Owner) Other
(Name of nonprofit) (Contact Person) (City) (Phone) (State) (Fax) (Street Address) (Zip code)

2.

3.

5.

Percentage of Nonprofit Ownership (All nonprofit applicants) Specify the nonprofit entity's percentage ownership of the general partnership interest:

0.0%

2009

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Low-Income Housing Tax Credit Application For Reservation III. DEVELOPMENT INFORMATION

A. Structure and Units: 1. Total number of all units in development Total number of rental units in development Number of low-income rental units Percentage of rental units designated low-income 2.

92 92 bedrooms 92 bedrooms 100.00%

186 186

The development's structural features are (check all that apply): Row House/Townhouse Garden Apartments Slab on Grade Crawl space Elevator Detached Single-family Detached Two-family Basement 25 3 0 bedrooms 0 bedrooms 92 bedrooms 99,712.50 (Sq. ft.) 16,624.00 (Sq. ft.) 0.00 (Sq. ft.) 83,088.50 (Sq. ft.) 8 0 0 186

Age of Structure: Number of stories:

3.

Number of new units Number of adaptive reuse units Number of rehab units Total Floor Area For The Entire Development Unheated Floor Area (Breezeways, Balconies, Storage) Nonresidential Commercial Floor Area
(Not eligible for funding)

4. 5. 6. 7. 8. 9. 10.

Total Usable Residential Heated Area Number of Buildings (containing rental units) Commercial Area Intended Use:

Project consists primarily of a building(s) which is (are)(CHOOSE ONLY ONE) Low-Rise (1-5 stories with any structural elements made of wood) Mid-Rise (5-7 stories with no structural elements made of wood) High-Rise (8 or more stories with no structural elements made of wood)

B. Building Systems: Please describe each of the following in the space provided. Community Facilities: New playground, New community building, Expanded maintenance & laundry Exterior Finish: Brick & vinyl Heating/AC System: Central HVAC Architectural Style: Garden Apartments

2009

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Low-Income Housing Tax Credit Application For Reservation C. Amenities:
1. Specify the average size per unit type: (Including pro rata share of heated common area) Assisted Lvg 0.00 SF 1Bdrm Eld 0.00 SF 3-Bdrm Gar 1-Sty-Eff-Eld 0.00 SF 2Bdrm Eld 0.00 SF 4-Bdrm Gar 0.00 SF 2-Bdrm TH 1-Sty 1BR-Eld 0.00 SF Eff-Gar 681.50 SF 3-Bdrm TH 1-Sty 2BR-Eld 0.00 SF 1-Bdrm Gar 922.73 SF 4-Bdrm TH Eff-Eld 0.00 SF 2-Bdrm Gar 2. Total gross usable, heated square feet for the entire project less nonresidential commercial area: Documentation attached (TAB F) Mandatory 83,088.50
(Sq. ft.)

1,049.70 0.00 0.00 0.00 0.00

SF SF SF SF SF

NOTE: All developments must meet VHDA's Minimum Design and Construction Requirements. By signing and submitting the Application For Reservation of Low Income Housing Tax Credits the applicant certifies that the proposed project budget, plans & specifications and work write-ups incorporate all necessary elements to fulfill these requirements.

3. Check the following items which apply to the proposed project: Documentation attached (TAB F Architect Certification) Mandatory For any project, upon completion of construction/rehabilitation: project 100% a(1) Percentage of 2-bedroom units that have 1.5 bathrooms 100% a(2) Percentage of 3 or more bedroom units that have 2 bathrooms b. 55% c. d. e. f. A community/meeting room with a minimum of 749 square feet is provided Percentage of exterior walls covered by brick (excluding triangular gable ends, doors and windows) All kitchen and laundry appliances meet the EPA's Energy Star qualified program requirements All windows meet the EPA's Energy Star qualified program requirements Every unit in the development is heated and air conditioned with either (i) heat pump units with both a SEER rating of 14.0 or more and a HSPF rating of 8.2 or more and a variable speed air handling unit (for through- the-wall heat pump equipment that has an EER rating of 11.0 or more), or (ii) air conditioning units with a SEER rating of 14.0 or more and a variable speed air handling unit, combined with gas furnaces with an AFUE rating of 90% or more Water expense is sub-metered (the tenant will pay monthly or bi-monthly bill) Each bathroom consists only of low-flow faucets (2.2 gpm max.) and showerheads (2.5gpm max.) Provide necessary infrastructure in all units for high speed cable, DSL or wireless internet sevice. All water heaters meet the EPA's Energy Star qualified program requirements. (Optional Point items)

g. h. i. j.

2009

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Low Income Housing Tax Credit Application For Reservation For all projects exclusively serving elderly and/or handicapped tenants, upon completion of construction/rehabilitation: (Optional Point items) a. b. c. d. All cooking ranges will have front controls All units will have an emergency call system All bathrooms will have an independent or supplemental heat source All entrance doors have two eye viewers, one at 48" and the other at standard height

For all rehabilitation and adaptive reuse projects, upon completion of construction or or rehabilitation: (Optional Point items) The structure is listed individually in the National Register of Historic Places or is located in a registered historic district and certified by the Secretary of the Interior as being of historical significance to the district, and the rehabilitation will be completed in such a manner as to be eligible for historic rehabilitation tax credits Accessibility Check one or none of the following point categories, as appropriate:
For any non-elderly property in which the greater of 5 or 10% of the units (i) provide federal project-based rent subsidies or equivalent assistance in order to ensure occupancy by extremely low-income persons; (ii) conform to HUD regulations interpreting accessibility requirements of section 504 of the Rehabilitation Act; and (iii) are actively marketed to people with special needs in accordance with a plan submitted as part of the Application. (If special needs include mobility impairments the units described above must include roll-in showers and roll under sinks and front controls for ranges). For any non-elderly property in which the greater of 5 or 10% of the units (i) have rents within HUD’s Housing Choice V (“HCV”) payment standard; ( ) conform to HUD regulations interpreting accessibility requirements of section 504 of ; (ii) U g p g y q Voucher ( CV ) p y the Rehabilitation Act; and (iii) are actively marketed to people with mobility impairments, including HCV holders, in accordance with a plan submitted as part the Application.

For any non-elderly property in which at least four percent (4%) of the units conform to HUD regulations interpreting accessibility requirements of section 504 of the Rehabilitation Act and are actively marketed to people with mobility impairments in accordance with a plan submitted as part of the Application. Earthcraft or LEED Development Certification Applicant agrees to obtain Earthcraft or LEED certification prior to issuance of IRS Form 8609. Architect certifies in the Architect Certification that the development's design will meet the criteria for such certification. Yes - Earthcraft Yes - LEED If Yes to either, attach appropriate documentation at TAB F LEED Accredited Design Team Member One or more members of the design team is a LEED accredited professional. If Yes, attach appropriate documentation at TAB F No Yes Universal Design - Units Meeting Universal Design Standards a. The architect of record certifies that units will be constructed to meet VHDA's Universal Design standards. If Yes, attach appropriate documentation at TAB F No Yes b. Number of Rental Units constructed to meet VHDA's Universal Design standards: 0% Units VHDA Certified Property Management Agent Owner agrees to use a VHDA Certified Property Management Agent to manage the property. Yes No No N/A The market-rate units' amenities are substantially equivalent to those of the Yes low-income units. If no, explain differences:

2009

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Low-Income Housing Tax Credit Application For Reservation IV. TENANT INFORMATION A. Set-Aside Election: UNITS SELECTED BELOW IN BOTH COLUMNS DETERMINE POINTS FOR THE BONUS POINT CATEGORY

Note: In order to qualify for any tax credits, a development must meet one of two minimum threshold occupancy tests. Either (i) at least 20% of the units must be rent-restricted and occupied by persons whose incomes are 50% or less of the area median income adjusted for family size (this is called the 20/50 test) or (ii) at least 40% of the units must be rent-restricted and occupied by persons whose incomes are 60% or less of the area median income adjusted for family size (this is called the 40/60 test), all as described in Section 42 of the IRC. Rent-and income-restricted units are known as low-income units. If you have more low-income units than required, you qualify for more credits. If you serve lower incomes than required, you receive more points under the ranking system.

Units Provided Per Household Type:

Income Levels
# of Units 0 92 0 0 92 B. % of Units 0.00% 100.00% 0.00% 0.00% 100.00% 40% Area Median 50% Area Median 60% Area Median Non-LMI Units Total # of Units 10 82 0 0 92

Rent Levels
% of Units 10.87% 89.13% 0.00% 0.00% 100.00% 40% Area Median 50% Area Median 60% Area Median Non-LMI Units Total

Special Housing Needs/Leasing Preference: 1. If 100% of the low-income units will be occupied by either or both of the following special needs groups as defined by the United States Fair Housing Act, so indicate: Yes Elderly (age 55 or above) Yes Physically or mentally disabled persons (must meet the requirements of the federal Americans with Disabilities Act) 2. Specify the number of low-income units that will serve individuals and families with children by 20 Number of units providing three or more bedrooms: 22% of total low-income units 3. If the development has existing tenants, VHDA policy requires that the impact of economic and/or physical displacement on those tenants be minimized, in which Owners agree to abide by the Authority's Relocation Guidelines for LIHTC properties. 4. If leasing preference will be given to applicants on public housing waiting list and/or Section 8 waiting list, so indicate: Yes No Locality has no such waiting list; If yes, provide the following information: Organization which holds such waiting list: Shenandoah County Dept of Social Services Contact person (Name and Title) Sue Gill 540-459-6226 Required documentation attached (TAB H) Phone Number 5. If leasing preference will be given to individuals and families with children. (Less than or equal to 20% of the units must have of 1 or less bedrooms). Yes No

2009

Page 10

Low-Income Housing Tax Credit Application For Reservation V.
A.

LOCAL NEEDS AND SUPPORT
Provide the name and the address of the chief executive officer (City Manager, Town Manager, or County Administrator) of the political jurisdiction in which the development will be located: Chief Executive Officer's Name James M. Graham Chief Executive Officer's Title Town Manager Street Address PO Box 1560 Phone 540-635-8007 State Virginia Zip 22630 City Front Royal Name and title of local official you have discussed this project with who could answer questions for the local CEO: A.J. Conlon Letter from CEO attached (TAB I) CEO letter to be submitted separately by June 1, 2009

VHDA notification letter to CEO submitted prior to 5:00 PM 3/5/09: (9% competitive credits only)
If the property overlaps another jurisdiction please fill in the following: Chief Executive Officer's Name Chief Executive Officer's Title Street Address State City

Yes

No

Phone Zip

Name and title of local official you have discussed this project with who could answer questions for the local CEO: Letter from CEO attached (TAB I) CEO letter to be submitted separately by June 1, 2009

VHDA notification letter to CEO submitted prior to 5:00 PM 3/5/09: (9% competitive credits only) B. Project Schedule j
ACTUAL OR ANTICIPATED DATE
2/16/2009 11/1/2009 7/19/1982 4/29/2009

Yes

No

ACTIVITY
Site Option/Contract Site Acquisition Zoning Approval Site Plan Approval Financing A. Construction Loan Loan Application Conditional Commitment Firm Commitment B. Permanent Loan - First Lien Loan Application Conditional Commitment Firm Commitment C. Permanent Loan-Second Lien Loan Application Conditional Commitment Firm Commitment D. Other Loans & Grants Type & Source, List Application Award/Commitment Formation of Owner IRS Approval of Nonprofit Status Closing and Transfer of Property to Owner Plans and Specifications, Working Drawings Building Permit Issued by Local Government Start Construction Begin Lease-up Complete Construction Complete Lease-Up Credit Placed in Service Date

NAME OF PERSON RESPONSIBLE
David Layfield David Layfield N/A David Layfield

6/1/2009 7/1/2009 8/1/2009 6/1/2009 7/1/2009 8/1/2009 6/1/2009 8/1/2009 9/1/2009

David Layfield David Layfield David Layfield David Layfield David Layfield David Layfield David Layfield David Layfield David Layfield

4/16/2009 11/1/2009 8/1/2009 10/20/2009 11/15/2009 3/1/2010 11/30/2010 12/31/2010 12/31/2010

David Layfield David Layfield Kevin Oldland David Layfield Dwight Miller Lester Severe Dwight Miller Lester Severe David Layfield

2009

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Low-Income Housing Tax Credit Application For Reservation

VI.

SITE CONTROL

Note: Site control by the Owner identified herein is a mandatory precondition of review of this application. Documentary evidence of it, in the form of either a deed, option, purchase contract, or lease for a term longer than the period of time the property will be subject to occupancy restrictions must be included herewith. (9% Competitive Credits - An option or contract must extend beyond the application deadline by a minimum of four months.) Warning: Site control by an entity other than the Owner, even if it is a closely related party, is not sufficient. Anticipated future transfers to the Owner are not sufficient. The Owner, as identified in Subpart II-A, must have site control at the time this Application is submitted. NOTE: If the Owner receives a reservation of credits, the property must be titled in the name of or leased by (pursuant to a long-term lease) the Owner before the allocation of credits is made this year. Contact us before you submit this application if you have any questions about this requirement.

A. Type of Site Control by Owner: Applicant controls site by (select one and attach document - Mandatory TAB K) Deed - attached Long-term Lease - attached (expiration date: Option - attached (expiration date: Purchase Contract - attached (expiration date: 07/31/10 ) ) )

If more than one site for the development and more than one form of site control, please so indicate and attach a separate sheet specifying each site, number of existing buildings on the site, if any, type of control of each site, and applicable expiration date of form of site control. A site control document is required for each site. B. Timing of Acquisition by Owner: Select one: Owner already controls site by either deed or long-term lease or Owner is to acquire property by deed (or lease for period no shorter than period property will be subject to occupancy restrictions) no later than 11/01/09 (must be prior to November 6, 2009). If more than one site for the development and more than one expected date of acquisition by Owner, please so indicate and attach separate sheet specifying each site, number of existing buildings on the site, if any, and expected date of acquisition of each site by the Owner.

C.

Market Study Data: Obtain the following information from the Market Study conducted in connection with this tax credit application and enter below: Project Wide Capture Rate - LIHTC Units Project Wide Capture Rate - Market Units Project Wide Capture Rate - All Units Project Wide Absorption Period (Months) 32.00% 0.00% 32.00% 48

2009

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Low-Income Housing Tax Credit Application For Reservation

C.

Site Description 1. 2. Exact area of site in acres 9.000

Has locality approved a final site plan or plan of development? Yes No Required documentation form attached (TAB L) Is site properly zoned for the proposed development? Yes No Required documentation form attached (TAB M) Will the proposal seek to qualify for points associated with proximity to public transportation? Yes No Required documentation form attached (TAB A)

3.

4.

D.

Photographs Include photographs of the site and any existing structure(s) in TAB O. For rehabilitation projects, provide interior pictures which document the necessity of the proposed work.

E.

Plans and Specifications Minimum submission requirements for all properties (new construction, rehabilitation and adaptive reuse) 1. A location map with property clearly defined. 2. Sketch plan of the site showing overall dimensions of main building(s), major site elements (e.g., parking lots and location of existing utilities, and water, sewer, electric, gas in the streets adjacent to the site). Contour lines and elevations are not required. 3. Sketch plans of main building(s) reflecting overall dimensions of: a. Typical floor plan(s) showing apartment types and placement b. Ground floor plan(s) showing common areas; c. Sketch floor plan(s) of typical dwelling unit(s); d. Typical wall section(s) showing footing, foundation, wall and floor structure. Notes must indicate basic materials in structure, floor and exterior finish. In addition: required documentation for rehabilitation properties A unit-by-unit work write-up. Plans and specifications/unit-by-unit work writeup attached (TAB P) or Plans and specifications/unit-by-unit work writeup submitted separately

2009

Page 13

Low-Income Housing Tax Credit Application For Reservation VII. OPERATING BUDGET A. Rental Assistance 1. Do or will any low-income units receive rental assistance?
Yes No

2. If yes, indicate type of rental assistance:
Section 8 New Construction Substantial Rehabilitation Section 8 Moderate Rehabilitation Section 8 Certificates Section 8 Project Based Assistance RD 515 Rental Assistance Section 8 Vouchers State Assistance Other:

3. Number of units receiving assistance: Number of years in rental assistance contract: Expiration date of contract: 05/01/09 Contract or other agreement attached (TAB Q) B. Utilities 1. Monthly Utility Allowance Calculations
Utilities Heating Air Conditioning Cooking Lighting Hot Water Water Sewer Trash Type of Utility (Gas, Electric, Oil, etc.) Electric Electric Electric Electric Electric X X X Total utility allowance for costs paid by tenant Owner Owner Owner Owner Owner Owner Owner Owner

8 2

Utilities Paid by: X X X X X Tenant Tenant Tenant Tenant Tenant Tenant Tenant Tenant

0-bdr 0 0 0 0 0 0 0 0 $0

1-bdr

Enter Allowances by Bedroom Size 2-bdr 3-bdr 17 17 10 13 10 0 0 0 21 21 13 17 13 0 0 0 $85 30 30 18 24 18 0 0 0 $121

4-br 0 0 0 0 0 0 0 0 $0

$66

2. Source of Utility Allowance Calculation (Attach Documentation TAB Q) HUD Utility Company (Estimate) Utility Company (Actual Survey) Local PHA Other: USDA Rural Development

2009

Page 14

Low-Income Housing Tax Credit Application For Reservation C. Revenue
1. Indicate the estimated monthly income for the Low-Income Units: ** Unit Type Efficiency Units 1 Bedroom Units 2 Bedroom Units 3 Bedroom Units 4 Bedroom Units Total Number of Tax Credit Units Total Number of Tax Credit Units 0 18 54 20 0 92 Total Monthly Rental Income $0 $9,956 $35,670 $15,376 $0

Plus Other Income Source (list): Laundry/Vend, Tenant Charges, Fees, & Interest Equals Total Monthly Income: Twelve Months Equals Annual Gross Potential Income Less Vacancy Allowance ( 7.0% ) Equals Annual Effective Gross Income (EGI) - Low Income Units

$375 $61,377 x12 $736,524 $51,557 $684,967

** Beginning at Row 75 enter the appropriate data for both tax credit and market rate units in the yellow shaded cells.

2. Indicate the estimated monthly income for the Market Rate Units: ** Unit Type Efficiency Units 1 Bedroom Units 2 Bedroom Units 3 Bedroom Units 4 Bedroom Units Total Number of Market Units Total Number of Market Units 0 0 0 0 0 0 Total Monthly Rental Income $0 $0 $0 $0 $0

Plus Other Income Source (list): Equals Total Monthly Income: Twelve Months Equals Annual Gross Potential Income Less Vacancy Allowance ( 0.0% ) Equals Annual Effective Gross Income (EGI) - Market Rate Units

$0 $0 x12 $0 $0 $0

Documentation in Support of Operating Budget attached (TAB R) List number of units by type:
ASSISTED LVG 0 2 BD RM-GAR 54 1 STY-EFF-ELD 0 EFF-ELD 0 3 BD RM-GAR 20 1 STY-1 BR-ELD 0

TOTAL UNITS
1 BD RM-ELD 0 4 BD RM-GAR 0 1 STY-2 BR-ELD 0 2 BD RM-ELD 0 2 BD RM-TH 0 EFF-GAR 0 3 BD RM-TH 0 1 BD RM-GAR 18 4 BD RM-TH 0

Note: Please be sure to enter the number of units in the appropriate unit category. If not, you will find an error on the scoresheet at 5a, 6a & 6b.

List number of units by type:
ASSISTED LVG 0 2 BD RM-GAR 54 1 STY-EFF-ELD 0 EFF-ELD 0 3 BD RM-GAR 20 1 STY-1 BR-ELD 0

TAX CREDIT UNITS
1 BD RM-ELD 0 4 BD RM-GAR 0 1 STY-2 BR-ELD 0 2 BD RM-ELD 0 2 BD RM-TH 0 EFF-GAR 0 3 BD RM-TH 0 1 BD RM-GAR 18 4 BD RM-TH 0

Unit Type / Rent Targeting Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 40%

Number Units 0 0 0 0

Efficiency Units Net Rentable Square Feet 0.00 0.00 0.00 0.00 $ $ $ $

Monthly Rent Per Unit $ $ $ $

Total Monthly Rent -

2009

Page 15

Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 40% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 50% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60% Efficiency - 60%
Total Efficiency Tax Credit Units:

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

-

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

-

Total Monthly Eff. Tax Credit Rent:

Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market Efficiency - Market
Total Efficiency Market Units:

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

-

Total Monthly Eff. Market Rent:
Total Eff. Rent

$ $

-

Total Eff. Units:

0

1-Bedroom Units Net Rentable Rent Targeting 1 BR - 40% Number Units 2 Square Feet 685.50 $ Monthly Rent Per Unit 459 $ Total Monthly Rent 918

2009

Page 15

1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 40% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 50% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60% 1 BR - 60%
Total 1-BR Tax Credit Units:

2 0 0 0 0 0 0 0 0 0 0 0 0 0 8 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 18 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

685.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 685.50 673.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12,267.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

459 580 580 -

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

918 4,640 3,480 9,956 -

Total Monthly 1-BR Tax Credit Rent:

1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market 1 BR - Market
Total 1-BR Market Units:

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Monthly

1-BR Market Rent:
Total 1-BR Units:

$ $

9,956

18

Total 1-BR Rent

2009

Page 15

2-Bedroom Units Net Rentable Rent Targeting 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 40% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 50% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60% 2 BR - 60%
Total 2-BR Tax Credit Units:

Monthly Rent Per Unit $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 545 675 675 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Monthly Rent 3,270 31,725 675 35,670 -

Number Units 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 47 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 54 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Square Feet 931.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 921.25 941.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 49,827.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Monthly 2-BR Tax Credit Rent:

2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market 2 BR - Market

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

-

2009

2 BR - Market

Page 15

Total 2-BR Market Units:

0

0.00

Total Monthly 2-BR Market Rent:

$ $

35,670

Total 2-BR Units:

54

Total 2-BR Rent

3-Bedroom Units Net Rentable Rent Targeting 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 40% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 50% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60% 3 BR - 60%
Total 3-BR Tax Credit Units:

Monthly Rent Per Unit $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 775 775 713 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Monthly Rent 10,850 3,100 , 1,426 15,376 -

Number Units 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14 4 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20 0 0 0 0 0 0

Square Feet 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,033.50 1,087.50 , 1,087.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20,994.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Monthly 3-BR Tax Credit Rent:

3 BR - Market 3 BR - Market 3 BR - Market 3 BR - Market 3 BR - Market 3 BR - Market

$ $ $ $ $ $

-

2009

Page 15

3 BR - Market 3 BR - Market 3 BR - Market 3 BR - Market 3 BR - Market 3 BR - Market 3 BR - Market 3 BR - Market 3 BR - Market
Total 3-BR Market Units:

0 0 0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

$ $ $ $ $ $ $ $ $

Total Monthly

$ $ $ $ $ $ $ $ $

-

3-BR Market Rent:

$ $

15,376

Total 3-BR Units:

20

Total 3-BR Rent

4-Bedroom Units Net Rentable Rent Targeting 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 40% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 50% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60% 4 BR - 60%
Total 4-BR Tax Credit Units:

Monthly Rent Per Unit $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Monthly Rent -

Number Units 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Square Feet 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Monthly 4-BR Tax Credit Rent:

2009

Page 15

4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market 4 BR - Market
Total 4-BR Market Units:

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Monthly

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

-

4-BR Market Rent: Total 4-BR Units: Total Units

$ $ 83,088.50 0.00 83,088.50

-

0 92
Net Rentable SF:

Total 4-BR Rent TC Units MKT Units Total NR SF:

Floor Space Fraction

100.0000%

2009

Page 15

Low-Income Housing Tax Credit Application For Reservation D. Operating Expenses
Administrative: 1. Advertising/Marketing 2. Office Salaries 3. Office Supplies 4. Office/Model Apartment (type______) 5. Management Fee 7.05% of EGI 524.5217391 6. 7. 8. 9. 10. 11. 12. 13. Utilities 14. 15. 16. 17. 18. Manager Salaries Staff Unit (s) (type______) Legal Auditing Bookkeeping/Accounting Fees Telephone & Answering Service Tax Credit Monitoring Fee Miscellaneous Administrative Total Administrative Fuel Oil Electricity Water Gas Sewer Total Utility Operating: 19. Janitor/Cleaning Payroll 20. Janitor/Cleaning Supplies 21. Janitor/Cleaning Contract 22. Exterminating 23. Trash Removal 24. Security Payroll/Contract 25. Grounds Payroll 26. Grounds Supplies 27. Grounds Contract 28. Maintenance/Repairs Payroll 29. Repairs/Material 30. Repairs Contract 31. Elevator Maintenance/Contract 32. Heating/Cooling Repairs & Maintenance 33. Pool Maintenance/Contract/Staff 34. Snow Removal 35. Decorating/Payroll/Contract 36. Decorating Supplies 37. Miscellaneous Operating & Maintenance Totals Taxes & Insurance 38. Real Estate Taxes 39. Payroll Taxes 40. Miscellaneous Taxes/Licenses/Permits 41. Property & Liability Insurance 42. Fidelity Bond 43. Workman's Compensation 44. Health Insurance & Employee Benefits 45. Other Insurance Total Taxes & Insurance 6544 Total Operating Expense D1. Total Oper. Ex. Per Unit $3,612 D2. Total Oper. Ex. As % EGI (from E3) 48.52% $332,346 $650 $8,606 $48,256 Per Unit $26,000 $832 $6,500 $2,172 $5,174 $1,380 $4,992 $104,562

$11,726 $35,048 $38,740 $85,514

$2,720 $12,272

$5,460 $46,176 $12,818 $8,424

$1,404 $8,403

$97,677 $19,740 $5,971 $13,809 $0 $653 $4,420 $44,593

Replacement Reserves (Total # Units X $300 or $250 New Const. Elderly Minimum) Total Expenses

$46,000 $378,346

2009

Page 16

Low-Income Housing Tax Credit Application For Reservation E. Cash Flow (First Year) 1. Annual EGI Low-Income Units from (C1) 2. Annual EGI Market Units (from C2) 3. Total Effective Gross Income 4. Total Expenses (from D) 5. Net Operating Income 6. Total Annual Debt Service (from Page 21 B2) 7. Cash Flow Available for Distribution

$684,967

+ = = =

$0 $684,967 $378,346 $306,621 $255,752 $50,869

F.

Projections for Financial Feasibility - 15 Year Projections of Cash Flow Stabilized Year 1 684,967 378,346 306,621 255,752 50,869 1.20 Year 6 794,065 460,316 333,749 255,752 77,997 1.30

Eff. Gross Income Less Oper. Expenses Net Income Less Debt Service Cash Flow Debt Coverage Ratio

Year 2 705,516 393,480 312,036 255,752 56,284 1.22 Year 7 817,887 478,728 339,158 255,752 83,406 1.33

Year 3 726,682 409,219 317,463 255,752 61,711 1.24 Year 8 842,423 497,878 344,546 255,752 88,794 1.35

Year 4 748,482 425,588 322,894 255,752 67,142 1.26 Year 9 867,696 517,793 349,903 255,752 94,151 1.37

Year 5 770,937 442,611 328,325 255,752 72,573 1.28 Year 10 893,727 538,504 355,223 255,752 99,471 1.39

Eff. Gross Income Less Oper. Expenses Net Income Less Debt Service Cash Flow Debt Coverage Ratio

Year 11 Year 12 Eff. Gross Income 920,539 948,155 Less Oper. Expenses 560,045 582,446 Net Income 360,494 365,709 Less Debt Service 255,752 255,752 Cash Flow 104,742 109,957 Debt Coverage Ratio 1.41 1.43 Estimated Annual Percentage Increase in Revenue Estimated Annual Percentage Increase in Expenses

Year 13 Year 14 Year 15 976,600 1,005,898 1,036,075 605,744 629,974 655,173 370,855 375,924 380,902 255,752 255,752 255,752 115,103 120,172 125,150 1.45 1.47 1.49 3.00% (Must be < 3%) 4.00% (Must be > 4%)

2009

Page 17

Low-Income Housing Tax Credit Application For Reservation VIII.
A.

PROJECT BUDGET
Cost/Basis/Maximum Allowable Credit

Complete cost column and basis column(s) as appropriate through A12. Check if the following documentation is attached at TAB S: Executed Construction Contract Executed Trade Payment Breakdown Appraisal Other Cost Documentation Environmental Studies
NOTE: Attorney must opine, among other things, as to correctness of the inclusion of each cost item in eligible basis, type of credit and numerical calculations of this Part VIII.
Amount of Cost up to 100% Includable in Eligible Basis--Use Applicable Column(s): "30% Present Value Credit" (D) (B) Acquisition (C) Rehab/ "70 % Present New Construction Value Credit"

Item 1. Contractor Cost A. B. C. D. E. F. F G. H. I. J. K. L. M. Off-Site Improvements Site Work Other: Unit Structures (New) Unit Structures (Rehab) Accessory Building ( ) A B ildi (s) Asbestos Removal Demolition Commercial Space Costs Structured Parking Garage Subtotal A: (Sum 1A..1J) General Requirements Builder's Overhead ( 2.0% Contract) N. Builder's Profit ( 6.0% Contract) O. Bonding Fee P. Other: Q. Contractor Cost Subtotal (Sum 1K..1P) Owner Costs Building Permit Arch./Engin. Design Fee ( 2,065 /Unit) C. Arch. Supervision Fee ( 0 /Unit) D. Tap Fees E. Soil Borings A. B.

(A) Cost

0 0 0 0 5,250,000 0 0 0 0 0 5,250,000 315,000 105,000 315,000 59,850 0 $6,044,850

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0

0 0 0 0 5,250,000 0 0 0 0 0 5,250,000 315,000 105,000 315,000 59,850 0 $6,044,850

2.

80,000 190,000 0 0 0

0 0 0 0 0

0 0 0 0 0

80,000 190,000 0 0 0

2009

Page 18

Low-Income Housing Tax Credit Application For Reservation

Item 2. Owner Costs Continued F. Construction Loan Origination Fee G. Construction Interest ( 7.0% for 15 months) H. Taxes During Construction I. Insurance During Construction J. Cost Certification Fee K. Title and Recording L. Legal Fees for Closing M. Permanent Loan Fee ( 0.0% ) N. Other Permanent Loan Fees O. Credit Enhancement P. Mortgage Banker Q. Environmental Study R. Structural/Mechanical Study S. Appraisal Fee T. Market Study U. Operating Reserve V. Tax Credit Fee W. OTHER (SEE PAGE 19A) X. Owner Cost Subtotal (Sum 2A..2W) Subtotal 1 + 2 (Owner + Contractor Costs) 3. Developer's Fees 4. Owner's Acquisition Costs Land Existing Improvements Subtotal 4: 5. Total Development Costs Subtotal 1+2+3+4:

(A) Cost

Amount of Cost up to 100% Includable in Eligible Basis--Use Applicable Column(s): "30% Present Value Credit" (D) (B) Acquisition (C) Rehab/ "70 % Present New Construction Value Credit"

56,500 100,000 0 34,665 20,000 60,000 195,000 0 0 0 0 3,000 3,000 5,000 5,000 317,049 , 65,300 $887,569

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $5,235

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0

56,500 100,000 0 34,665 0 60,000 195,000 0 0 0 0 3,000 3,000 5,000 5,000 0 0 $667,910

$2,022,083 $8,066,933

$5,235 $5,235

$0 $0

$1,400,075 $7,444,925

1,472,000

227,643

0

1,244,357

650,000 2,840,301 $3,490,301

2,840,301 $2,840,301

$13,029,234

$3,073,179

$0

$8,689,282

If this application seeks rehab credits only, in which there is no acquisition and no change in ownership, enter the greater of appraised value or tax assessment value here: $0 Land (Attach documentation at Tab K) $0 Building

2009

Page 19

Low-Income Housing Tax Credit Application For Reservation

Item W. OTHER OWNER COSTS Contingency Reserve (Rehab or Adaptive Reuse only) LIST ADDITIONAL ITEMS Draw & Monitoring Fees USDA Fees TC Application Fee Transfer Taxes Electric During Const Relocation EarthCraft Fees Overburden Reserve Allocation Fee

(A) Cost

Amount of Cost up to 100% Includable in Eligible Basis--Use Applicable Column(s): "30% Present Value Credit" (D) (B) Acquisition (C) Rehab/ "70 % Present New Construction Value Credit"

299,250

0

0

299,250

18,000 17,577 750 5,235 19,800 350,000 30,860 100,000 46,097 0 0 0 0 0 0 0 $887,569

0 0 0 5,235 0 0 0 0 0 0 0 0 0 0 0 0 $5,235

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0

18,000 0 0 0 19,800 300,000 30,860 0 0 0 0 0 0 0 0 0 $667,910

Subtotal (Other Owner Costs)

2009

Page 19A

Low-Income Housing Tax Credit Application For Reservation

Amount of Cost up to 100% Includable in Eligible Basis--Use Applicable Column(s): "30 % Present Value Credit" (C) Rehab/ (D) Item Total Development Costs Subtotal 1+2+3+4
(A) Cost (B) Acquisition New Construction "70 % Present Value Credit"

5.

13,029,234

3,073,179

0

8,689,282

6.

Reductions in Eligible Basis Subtract the following: A. Amount of federal grant(s) used to finance qualifying development costs B. Amount of nonqualified, nonrecourse financing C. Costs of nonqualifying units of higher quality (or excess portion thereof) D. Historic Tax Credit (residential portion)

0

0

0

0 0

0 0

0 0

0 3,073,179

0 0

0 8,689,282

7. Total Eligible Basis (5 minus 6 above) 8. Adjustment(s) to Eligible Basis (For non-acquisition costs in eligible basis) (i) For Earthcraft or LEED Certification AND 60 Bonus Points (ii) For QCT or DDA (Eligible Basis x 30%) Total Adjusted Eligible basis

0 0 0

434,464 0 9,123,746

9. Applicable Fraction 10. Total Qualified Basis (Same as Part IX-C) (Eligible Basis x Applicable Fraction) 11. Applicable Percentage
(For 2009 9% competitive credits, use the May 2009 applicable percentages for acq.) (For 9% non-competitive & tax exempt bonds, use the most recently published rates)

100.0000% 3,073,179

100.0000% 0

100.0000% 9,123,746

3.28%

3.28%

9.00%

12.

Maximum Allowable Credit under IRC §42 (Qualified Basis x Applicable Percentage) (Same as Part IX-C and equal to or more than credit amount requested)

$100,800

$0 $921,937

$821,137

Combined 30% & 70% P. V. Credit

2009

Page 20

Low-Income Housing Tax Credit Application For Reservation B. Sources of Funds

1. Construction Financing: List individually the sources of construction financing, including any such
loans financed through grant sources:
Date of Application 06/01/09 06/01/09 06/01/09 Date of Commitment 07/01/09 07/01/09 08/01/09 Amount of Funds $2,665,000 Craig Hackett $1,550,000 TBD $2,258,301 Byron Waters

Source of Funds 1. Bonneville Multifamily 2. Const Lender 3. USDA Sec 515 Asmpt

Name of Contact Person

Commitments or letter(s) of intent attached (TAB T)

2. Permanent Financing: List individually the sources of all permanent financing in order of lien position:
Interest Rate of Loan 6.50% 1.00%
Amortization Period IN YEARS

Source of Funds 1. USDA Sec 538 2. USDA Sec 515 Asmpt 3. 4. 5. 6.

Date of Application 06/01/09 06/01/09

Date of Commitment 07/01/09 08/01/09

Amount of Funds $2,665,000 $2,258,301

Annual Debt Service Cost $187,229 $68,523

Term of Loan (years) 38 30

40 40

Totals: Commitments or letter(s) of intent attached (TAB T) 3. Grants: List all grants provided for the development:
Date of Source of Funds 1. 2. 3. 4. 5. 6. TCAP N/A N/A Application Date of Commitment

$4,923,301

$255,752

Amount of Funds $0 $0 $0 $0 $0 $1,099,912 Name of Contact Person

Total Permanent Grants: Commitments or letter(s) of intent attached (TAB T)

$1,099,912

2009

Page 21

Low-Income Housing Tax Credit Application For Reservation
4. Portion of Syndication Proceeds Attributable to Historic Tax Credit Amount of Federal historic credits $0 x Equity % Amount of Virginia historic credits $0 x Equity %

$0.00 $0.00

$0 $0

6.

Equity that Sponsor will Fund: Cash Investment Contributed Land/Building Deferred Developer Fee Other:

$0 $0 $0 $0

Assessment Attached (TAB S)

Equity Total 7. Total of All Sources (B2 + B3 + B4 + B5 + B6) (not including syndication proceeds except for historic tax credits) Total Development Cost (From VIII-A5) Less Total Sources of Funds (From B7 above) Equals equity gap to be funded with low-income tax credit proceeds (must equal IX-D3) Syndication Information (If Applicable) Actual or Anticipated Name of Syndicator Contact Person Corine Sheridan Street Address 1802 Lang Drive City Crofton Total to be paid by anticipated users of credit (e.g., limited partners) Equity Dollars Per Credit (e.g., $0.85 per dollar of credit) Percent of ownership entity (e.g., 99% or 99.9%) Net credit amount anticipated by user of credits Syndication costs not included in VIII-A5 (e.g., advisory fees) Net amount which will be used to pay for Total Development Cost (4a-4e) as listed in Part VIII-A5 (same amount as Part IX-D3) Amount of annual credit required for above amounts (same amount as Part IX-D6) Net Equity Factor [C5 / (C6 X 10)] (same amount as Part IX-D4) Must be equal to or greater than 85% Syndication: Investors: Public or Individual or Private Corporate Boston Capital Phone 410-451-7309 State Marylanf

$0 $6,023,213

8.

$13,029,234

9. 10.

$6,023,213 $7,006,021

C. 1. 2. 3.

Zip 21114 $7,006,021 $0.76 99.99% $921,845 $0

4. a. b. c. d. e. 5.

$7,006,021

6. 7.

$921,937 75.99%

8. 9.

Syndication commitment or letter of intent attached (TAB U)

2009

Page 22

Low-Income Housing Tax Credit Application For Reservation
D. Recap of Federal, State, and Local Funds/Any Credit Enhancements 1. Are any portions of the sources of funds described above for the development financed directly or indirectly with Federal, State, or Local Government Funds? Yes No If yes, then check the type and list the amount of money involved.
Below-Market Loans Tax Exempt Bonds RD 515 Section 221(d)(3) Section 312 Section 236 VHDA SPARC/REACH HOME Funds Other: Other: Grants CDBG UDAG $0 $2,258,301 $0 $0 $0 $0 $0 Grants State Local Other: TCAP Market-Rate Loans Taxable Bonds Section 220 Section 221(d)(3) Section 221(d)(4) Section 236 Section 223(f) Other: Sec 538 $0 $0 $0 $0 $0 $0 $2,665,000

$0 $0

$0 $0 $1,099,912

This means grants to the partnership. If you received a loan financed by a locality which received one of the listed grants, please list it in the appropriate loan column as "other" and describe the applicable grant program which funded it. 2. Subsidized funding: list all sources of funding for points.
Source of Funds 1. 2. 3. 4. 5.

Documentation Attached (TAB T)
Commitment date Funds $0 $0 $0 $0 $0

3. Does any of your financing have any credit enhancement? If yes, list which financing and describe the credit enhancement:

Yes

No

4. Other Subsidies Section 8 Rent Supplement or Rental Assistance Payment Tax Abatement Other 5. Is HUD approval for transfer of physical asset required? No Yes

Documentation Attached (TAB Q)

E.

For Transactions Using Tax-Exempt Bonds Seeking 4% Credits: For purposes of the 50% Test, and based only on the data entered to this application, the portion of the aggregate basis of buildings and land financed with tax-exempt funds is: N/A

2009

Page 23

Low-Income Housing Tax Credit Application For Reservation

IX. ADDITIONAL INFORMATION A. Extended Use Restriction NOTE: Each recipient of an allocation of credits will be required to record an extended use agreement as required by the IRC governing the use of the development for low-income housing for at least 30 years. However, the IRC provides that, in certain circumstances, such extended use period may be terminated early.

This development will be subject to the standard extended use agreement which permits early termination (after the mandatory 15-year compliance period) of the extended use period. This development will be subject to an extended use agreement in which the owner's right to any early termination of the extended use provision is waived for 25 additional years after the 15year compliance period for a total of 40 years. Do not select if IX.B is checked below. This development will be subject to an extended use agreement in which the owner's right to any early termination of the extended use provision is waived for 35 additional years after the 15year compliance period for a total of 50 years. Do not select if IX.B is checked below. B. Nonprofit/Local Housing Authority Purchase Option/Right of First Refusal 1. After the mandatory 15-year compliance period, a qualified nonprofit as identified in the 15 year attached nonprofit questionnaire, or local housing authority will have the option to purchase or the right of first refusal to acquire the development for a price not to exceed the outstanding debt and exit taxes. Such debt must be limited to the original mortgage(s) unless any refinancing is approved by the nonprofit. Do not select if extended compliance is selected in IX.A above. Option or Right of First Refusal in Recordable Form Attached (TAB V) Enter name of qualified nonprofit: A qualified nonprofit or local housing authority submits a homeownership plan committing to sell the units in the development after the mandatory 15-year compliance period to tenants whose incomes shall not exceed the applicable income limit at the time of their initial occupancy. Do not select if extended compliance is selected in IX.A above. Homeownership Plan Attached (TAB J)

2.

C. Building-by-Building Information (Complete page 25 as appropriate)

2009

Page 24

Low-Income Housing Tax Credit Application For Reservation
C. Building-by-Building Information Must Complete Qualified basis must be determined on a building-by building basis. Complete the section below. Building street addresses are required by the IRS (must have them by the time of allocation request).
NUMBER OF
TAX CREDIT UNITS MARKET RATE UNITS

30% Present Value Credit for Acquisition Actual or Anticipated In-Service Date

30% Present Value Credit for Construction Actual or Anticipated In-Service Date $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ $0 $0 $0 $100,800 $0

70% Present Value Credit Actual or Anticipated In-Service Date

Build ing # 1. 12 2. 12 3. 12 4. 12 5. 12 6. 8 7. 12 8. 12 9. 10. 11. 12. 13. 14. 15. 16. 0 0 0 0 0 0 0 0

Street Address 2700 Royal Lane, Front Royal, VA 3500 Royal Lane, Front Royal, VA 4300 Royal Lane, Front Royal, VA 4700 Royal Lane, Front Royal, VA 6100 Royal Lane, Front Royal, VA 6700 Royal Lane, Front Royal, VA 7500 Royal Lane, Front Royal, VA 7900 Royal Lane, Front Royal, VA

Estimate Qualified Basis $400,849 $400,849 $400,849 $400,849 $400,849 $267,233 $400,849 $400,849 $0 $0 $0 $0 $0 $0 $ $0 $0 $3,073,179

Applicable Percentage 3.28% 3.28% 3.28% 3.28% 3.28% 3.28% 3.28% 3.28% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Credit Amount 13,148 13,148 13,148 13,148 13,148 8,765 13,148 13,148 0 0 0 0 0 0 0 0

Estimate Qualified Basis

Applicable Percentage 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Credit Amount 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Estimate Qualified Basis $1,190,054 $1,190,054 $1,190,054 $1,190,054 $1,190,054 $793,369 $1,190,054 $1,190,054 $0 $0 $0 $0 $0 $0 $ $0 $0 $9,123,746

Applicable Percentage 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Credit Amount 107,105 107,105 107,105 107,105 107,105 71,403 107,105 107,105 0 0 0 0 0 0 0 0

$821,137

Qualified Basis Totals (must agree with VIII-A10) Credit Amount Totals (must agree with VIII-A-12)

2009

Page 25

Low-Income Housing Tax Credit Application For Reservation

D. Determination of Reservation Amount Needed The following calculation of the amount of credits needed is substantially the same as the calculation which will be made by VHDA to determine, as required by the IRC, the amount of credits which may be allocated for the development. However, VHDA at all times retains the right to substitute such information and assumptions as are determined by VHDA to be reasonable for the information and assumptions provided herein as to costs (including development fees, profits, etc.), sources for funding, expected equity, etc. Accordingly, if the development is selected by VHDA for a reservation of credits, the amount of such reservation may differ significantly from the amount you compute below.

1. Total Development Costs (from VIII-A5, Column A page 20) 2. Less Total Sources of Funds (from VIII-B7 page 22) 3. Equals Equity Gap 4. Divided by Net Equity Factor (VIII-C7 page 22)
(Percent of 10-year credit expected to be raised as equity investment)

$13,029,234 $6,023,213 $7,006,021 75.99%

5. Equals Ten-Year Credit Amount Needed to Fund Gap Divided by ten years 6. Equals Annual Tax Credit Required to Fund the Equity Gap

$9,219,371 10 $921,937

7. The Maximum Allowable Credit Amount (from VIII-A12-combined figure) (This amount must be equal to or more than 6 above) 8. Reservation Amount (Lesser of 6 or 7 above) Credit per Unit Credit per Bedroom 10,021 4,957 $112,762
30% PV Credit

$921,937 ,

Combined 30% & 70% PV Credit

$921,937
Comprised of and 70% PV Credit (Based on same relative percentages as VIII-A12)

$809,175

E. Attorney’s Opinion Attached in Mandatory TAB W)

Goal Seek Function If you incur the error message that your reservation amount is not equal to the equity gap amount you may use the goal seek function within the Excel spreadsheet to eliminate the error message. To use the “Goal Seek” function first place the curser box on cell V28. Using the mouse arrow, point and click on “Tools” on the top line and then click on the “Goal Seek” option. A box will appear with the V28 cell shown in the top space, place the cursor in the middle box and type in the new amount that you want the equity gap to be which should be the reservation amount below, then place the cursor in the bottom space and at the bottom of the page click on page 22. Then place the cursor on cell N15 (Deferred Developer Fee) and click on “OK”. A message should then appear that a solution has been found and if the amount is correct click “OK”. If the amounts are now equal the error message will disappear.

2009

Page 26

Low-Income Housing Tax Credit Application For Reservation F. Statement of Owner

The undersigned hereby acknowledges the following: 1. that, to the best of its knowledge and belief, all factual information provided herein or in connection herewith is true and correct, and all estimates are reasonable. that it will at all times indemnify and hold harmless VHDA and its assigns against all losses, costs, damages, VHDA's expenses, and liabilities of any nature directly or indirectly resulting from, arising out of, or relating to VHDA's acceptance, consideration, approval, or disapproval of this reservation request and the issuance or nonissuance of an allocation of credits, grants and/or loan funds in connection herewith. that points will be assigned only for representations made herein for which satisfactory documentation is submitted herewith and that no revised representations may be made in connection with this application once the deadline for applications has passed. that this application form, provided by VHDA to applicants for tax credits, including all sections herein relative to basis, credit calculations, and determination of the amount of the credit necessary to make the development financially feasible, is provided only for the convenience of VHDA in reviewing reservation requests; that completion hereof in no way guarantees eligibility for the credits or ensures that the amount of credits applied for has been computed in accordance with IRC requirements; and that any notations herein describing IRC requirements are offered only as general guides and not as legal authority. that the undersigned is responsible for ensuring that the proposed development will be comprised of qualified low-income buildings and that it will in all respects satisfy all applicable requirements of federal tax law and any other requirements imposed upon it by VHDA prior to allocation, should one be issued. that, for the purposes of reviewing this application, VHDA is entitled to rely upon representations of the undersigned as to the inclusion of costs in eligible basis and as to all of the figures and calculations relative to the determination of qualified basis for the development as a whole and/or each building therein individually as well as the amounts and types of credit applicable thereof, but that the issuance of a reservation based on such representation in no way warrants their correctness or compliance with IRC requirements. that VHDA may request or require changes in the information submitted herewith, may substitute its own figures which it deems reasonable for any or all figures provided herein by the undersigned and may reserve credits, if any, in an amount significantly different from the amount requested. that reservations of credits are not transferable without prior written approval by VHDA at its sole discretion.

2.

3.

4.

5.

6.

7.

8.

2009

Page 27

2009 LIHTC SELF SCORE SHEET:

Self Scoring Process

This worksheet is intended to provide you with an estimate of your application score based on the selection criteria described in the QAP. Most of the data used in the scoring process is automatically entered below as you fill in the application. Other items, denoted below in the green shaded cells, are items that are typically evaluated by VHDA’s staff during the application review and feasibility analysis. For purposes of self scoring, it will be necessary for you to make certain decisions and assumptions about your application and enter the appropriate responses in the green shaded cells of this score sheet. All but two require yes/no responses, in which case enter Y or N as appropriate. Item 2b pertaining to the Local CEO Letter will require one of the following responses: Y – the letter indicates unconditional support; N – the letter indicates opposition to the project; NC – no comment from the locality, or any other response which is neither unconditional support nor opposition. Item 5e1 requires a numeric value to be entered. Please remember that the score is only an estimate based on the selection criteria using the reservation application data and the responses you’ve entered on this score sheet. VHDA reserves the right to change application data and/or score sheet responses where appropriate, which may change the final score.

MANDATORY ITEMS: a. Signed, completed application b. Duplicate copy of application c. Partnership agreement d. SCC Certification e. Previous participation form f. Site control document g. Architect's Certification h. Attorney's opinion i. Nonprofit questionnaire (if NP) 1. READINESS: a. Plan of development b. Zoning approval Total: 2. HOUSING NEEDS CHARACTERISTICS: a. VHDA notification letter to CEO b. Local CEO letter c. Location in a revitalization area d. Location in a Qualified Census Tract e. Sec 8 or PHA waiting list preference f. Subsidized funding commitments g. Existing RD, HUD Section 8 or 236 program h. Tax abatement or new project based rental subsidy (HUD or RD) i. Census tract with <10% poverty rate, no tax credit units j. Development listed on the Rural Development Rehab Priority List Total 3. DEVELOPMENT CHARACTERISTICS: a. Unit size (See calculations below) b. Amenities (See calculations below) c. Project subsidies/HUD 504 accessibility for 5 or 10% of units or d. HCV payment standard/HUD 504 accessibility for 5 or 10% of units or e. HUD 504 accessibility for 4% of units f. Proximity to public transportation g. Development will be Earthcraft or LEED certified h. VHDA Certified Property Management Agent i. Units constructed to meet VHDA's Universal Design standards j. Developments with less than 100 units Total 4. TENANT POPULATION CHARACTERISTICS: a. <= 20% of units having 1 or less bedrooms b. Percent of units with 3 or more bedrooms Total 5. SPONSOR CHARACTERISTICS: a. Developer experience - 3 developments with 3 x units or 6 developments with 1 x units or b. Developer experience - 1 development with 1 x units c. Developer experience - uncorrected major violation Enter Total Negative d. Developer experience - noncompliance e1. Developer experience - did not build as represented Points Here: e2. Developer experience - termination of credits by VHDA f. Management company rated unsatisfactory g. LEED accredited design team member Total 6. EFFICIENT USE OF RESOURCES: a. Credit per unit b.2009 per unit Cost

Y Y Y Y Y Y Y Y Y

Y or N Y or N Y or N Y or N Y or N Y or N Y or N Y or N Y, N, N/A

Score 0 0 0 0 0 0 0 0 0 0.00 40.00 40.00 80.00

Y Y

0 or 40 0 or 40

(Y,NC,N) ( )

Y Y Y N Y 0.00% Y N N N

0 or -50 0 or 25 or 50 0 or 30 0 or 5 0 or 10 Up to 40 0 or 20 0 or 10 0 or 25 0 or 15

0.00 50.00 30.00 0.00 10.00 0.00 20.00 0.00 0.00 0.00 110.00

N Y N Y20 Y Y 0%

Up to 100 Up to 60 0 or 50 0 or 30 0 or 15 0, 10 or 20 0 or 30 0 or 25 Up to 15 Up to 20

100.00 60.00 0.00 30.00 0.00 20.00 30.00 25.00 0.00 3.20 268.20

Y 21.74%

0 or 15 Up to 15

15.00 15.00 30.00

N N N N 0 N N Y

0 or 50 0 or 10 0 or -50 0 or -15 0 or -x 0 or -10 0 or -25 0 or 10

0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.00 10.00

If #N/A or #REF! appears in the score column of these point categories check spelling of Clerk's Office on pg 1. It must match

Up to 180 Up to 75

19.98 11.91

Total

exactly with the Jurisdiction names listed in the Application Manual.

31.89

7. BONUS POINTS: Locality AMI State AMI a. Units with rents at or below 40% of AMI $65,300 $50,600 11% b. Units with rent and income at or below 50% of AMI 100% or c. Units with rents at or below 50% rented to tenants at or below 60% of AMI 100% or d. Units in Low Income Jurisdictions with rents <= 50% rented to tenants with <= 60% of AMI 100% e. Extended compliance 35 Years or f. Nonprofit or LHA purchase option N or g. Nonprofit or LHA Home Ownership option N Total 500 Point Threshold - 9% Credits 475 Point Threshold - Tax Exempt Bond Credits Unit Size Calculations:
E-AS LVG High Sq.Ft. / BDRM Low Sq.Ft. / BDRM Project Sq.Ft. / BDRM Percentage of Units Points per Bedroom F-EFF-G High Sq.Ft. / BDRM Low Sq.Ft. / BDRM Project Sq.Ft. / BDRM Percentage of Units Points per Bedroom 0 0 0 0.00% 0.00 F-4 BDRM-G High Sq.Ft. / BDRM Low Sq.Ft. / BDRM Project Sq.Ft. / BDRM Percentage of Units Points per Bedroom 0 0 0 0.00% 0.00 1 ST ELD-EFF High Sq.Ft. / BDRM Low Sq.Ft. / BDRM Project Sq.Ft. / BDRM Percentage of Units Points per Bedroom 0 0 0 0.00% 0.00 0 0 0 0.00% 0.00 E-EFF 0 0 0 0.00% 0.00 F-1 BDRM-G 625 500 682 19.57% 19.57 F-2 BDRM-TH 0 0 0 0.00% 0.00 1 ST ELD-1 BDRM 0 0 0 0.00% 0.00 E-1 BDRM 0 0 0 0.00% 0.00 F-2 BDRM-G 900 675 923 58.70% 58.70 F-3 BDRM-TH 0 0 0 0.00% 0.00 1 ST ELD-2 BDRM 0 0 0 0.00% 0.00 E-2 BDRM 0 0 0 0.00% 0.00 F-3 BDRM-G 1,000 800 1,050 21.74% 21.74 F-4 BDRM-TH 0 0 0 0.00% 0.00

Up to 10 Up to 50 Up to 25 Up to 50 40 or 50 0 or 60 0 or 5

10.00 50.00 0.00 0.00 50.00 0.00 0.00 110.00 640.09

TOTAL SCORE:

If you do not receive a numeric point value in the unit size calculations, please check the values entered on page 8, C1. These must be whole number numeric values only. Also check page 7, item 3, the number of units must be either new, adapt or rehab only. Combinations do not calculate correctly.

Total Unit Size Points:
Amenities: All units have: a. 1.5 or 2 Bathrooms b. Community Room c. Brick Walls d. Kitchen/Laundry Appl-Energy Star e. Windows-Energy Star f. Heat/AC-SEER-AFUE g. Sub-metered water expense h. Low flow faucets & showerheads i. High speed cable, DSL, wireless internet j. Water heaters meet EPA Energy Star requirements All elderly units have: a. b. c. d. Front-control ranges Emergency call system Independent/suppl. heat source Two eye viewers Total All rehab or adaptive reuse units: b. Historic structure 100.00% 55.00%

100.00

Total

15.00 5.00 11.00 5.00 5.00 10.00 0.00 3.00 1.00 5.00 60.00 0.00 0.00 0.00 0.00 0.00

0.00

Total amenities:

60.00

2009

$/SF = TYPE OF PROJECT LOCATION TYPE OF CONSTRUCTION

$145.17

Credits/SF =

$12.65

Const $/unit =

$65,705 11000 200 3 If an ERROR message appears here check spelling of Clerk's Office on pg 1. It must match exactly with the Jurisdiction names listed in the Application Manual. 1 BR-E-1 ST 0 0 0 0 0 0 0 0 0 0 0.00 0.00 2 BR-E-1 ST 0 0 0 0 0 0 0 0 0 0 0.00 0.00

FAMILY = 11000; ELDERLY = 12000 BELT=100; NVM=110; NVNM=200; RIC=300; TID=400; SMA=500; SMA-C=510; RUR=600 N C=1; ADPT=2;REHAB(25,000+)=3; REHAB(15,000-25,000)=4 ELDERLY 1 BR-E 0 0 0 0 0 0 0 0 0 0 0.00 0.00 FAMILY

AVG UNIT SIZE NUMBER OF UNITS PARAMETER-(COSTS=>25,000) PARAMETER-(COSTS<25,000) COST PARAMETER PROJECT COST PER UNIT PARAMETER-(CREDITS=>25,000) PARAMETER-(CREDITS<25,000) CREDIT PARAMETER PROJECT CREDIT PER UNIT COST PER UNIT POINTS CREDIT PER UNIT POINTS

AS LVG 0 0 0 0 0 0 0 0 0 0 0.00 0.00

EFF-E 0 0 0 0 0 0 0 0 0 0 0.00 0.00

2 BR-E 0 0 0 0 0 0 0 0 0 0 0.00 0.00

EFF-E-1 ST 0 0 0 0 0 0 0 0 0 0 0.00 0.00

AVG UNIT SIZE NUMBER OF UNITS PARAMETER-(COSTS=>25,000) PARAMETER-(COSTS<25,000) COST PARAMETER PROJECT COST PER UNIT PARAMETER-(CREDITS=>25,000) PARAMETER-(CREDITS<25,000) CREDIT PARAMETER PROJECT CREDIT PER UNIT COST PER UNIT POINTS CREDIT PER UNIT POINTS

EFF-G 0 0 0 0 0 0 0 0 0 0 0.00 0.00

1 BR-G 682 18 121,032 0 121,032 98,935 9,982 0 9,982 8,623 2.68 4.79

2 BR-G 923 54 157,019 0 157,019 133,955 12,950 0 12,950 11,676 6.47 10.40

3 BR-G 1,050 20 183,500 0 183,500 152,388 15,134 0 15,134 13,282 2.76 4.79

4 BR-G 0 0 0 0 0 0 0 0 0 0 0.00 0.00

2 BR-TH 0 0 0 0 0 0 0 0 0 0 0.00 0.00

3 BR-TH 0 0 0 0 0 0 0 0 0 0 0.00 0.00

4 BR-TH 0 0 0 0 0 0 0 0 0 0 0.00 0.00

TOTAL COST PER UNIT POINTS TOTAL CREDIT PER UNIT POINTS

11.91 11 91 19.98

Standard Cost Parameter - low rise Parameter Adjustment - mid rise Parameter Adjustment - high rise Adjusted Cost Parameter

AS LVG 0 0 0 0

Cost Parameters - Elderly EFF-E 1 BR-E 0 0 0 0 0 0 0 0

2 BR-E 0 0 0 0

EFF-E-1 ST 0 0 0 0

1 BR-E-1 ST 0 0 0 0

2 BR-E-1 ST 0 0 0 0

Standard Credit Parameter - low rise Parameter Adjustment - mid rise Parameter Adjustment - high rise Adjusted Credit Parameter

AS LVG 0 0 0 0

Credit Parameters - Elderly EFF-E 1 BR-E 0 0 0 0 0 0 0 0

2 BR-E 0 0 0 0

EFF-E-1 ST 0 0 0 0

1 BR-E-1 ST 0 0 0 0

2 BR-E-1 ST 0 0 0 0

Standard Parameter - low rise Parameter Adjustment - mid rise Parameter Adjustment - high rise Adjusted Cost Parameter

EFF-G 0 0 0 0

Cost Parameters - Family 1 BR-G 2 BR-G 121,032 157,019 0 0 0 0 121,032 157,019

3 BR-G 183,500 0 0 183,500

4 BR-G 0 0 0 0

2 BR-TH 0 0 0 0

3 BR-TH 0 0 0 0

4 BR-TH 0 0 0 0

Standard Credit Parameter - low rise Parameter Adjustment - mid rise Parameter Adjustment - high rise Adjusted Credit Parameter

EFF-G 0 0 0 0

Credit Parameters - Family 1 BR-G 2 BR-G 9,982 12,950 0 0 0 0 9,982 12,950

3 BR-G 15,134 0 0 15,134

4 BR-G 0 0 0 0

2 BR-TH 0 0 0 0

3 BR-TH 0 0 0 0

4 BR-TH 0 0 0 0

2009

$/SF = TYPE OF PROJECT LOCATION TYPE OF CONSTRUCTION

$145.17

Credits/SF =

$12.65

Const $/unit =

$65,705 11000 200 3 If an ERROR message appears here check spelling of Clerk's Office on pg 1. It must match exactly with the Jurisdiction names listed in the Application Manual. 1 BR-E-1 ST 0 0 0 0 0 0 0 0 0 0 0.00 0.00 2 BR-E-1 ST 0 0 0 0 0 0 0 0 0 0 0.00 0.00

FAMILY = 11000; ELDERLY = 12000 BELT=100; NVM=110; NVNM=200; RIC=300; TID=400; SMA=500; SMA-C=510; RUR=600 N C=1; ADPT=2;REHAB(25,000+)=3; REHAB(10,000-25,000)=4 ELDERLY 1 BR-E 0 0 0 0 0 0 0 0 0 0 0.00 0.00 FAMILY

AVG UNIT SIZE NUMBER OF UNITS PARAMETER-(COSTS=>25,000) PARAMETER-(COSTS<25,000) COST PARAMETER PROJECT COST PER UNIT PARAMETER-(CREDITS=>25,000) PARAMETER-(CREDITS<25,000) CREDIT PARAMETER PROJECT CREDIT PER UNIT COST PER UNIT POINTS CREDIT PER UNIT POINTS

AS LVG 0 0 0 0 0 0 0 0 0 0 0.00 0.00

EFF-E 0 0 0 0 0 0 0 0 0 0 0.00 0.00

2 BR-E 0 0 0 0 0 0 0 0 0 0 0.00 0.00

EFF-E-1 ST 0 0 0 0 0 0 0 0 0 0 0.00 0.00

AVG UNIT SIZE NUMBER OF UNITS PARAMETER-(COSTS=>25,000) PARAMETER-(COSTS<25,000) COST PARAMETER PROJECT COST PER UNIT PARAMETER-(CREDITS=>25,000) PARAMETER-(CREDITS<25,000) CREDIT PARAMETER PROJECT CREDIT PER UNIT COST PER UNIT POINTS CREDIT PER UNIT POINTS

EFF-G 0 0 0 0 0 0 0 0 0 0 0.00 0.00

1 BR-G 682 18 121,032 0 121,032 98,935 9,982 0 9,982 8,623 2.68 4.79

2 BR-G 923 54 157,019 0 157,019 133,955 12,950 0 12,950 11,676 6.47 10.40

3 BR-G 1,050 20 183,500 0 183,500 152,388 15,134 0 15,134 13,282 2.76 4.79

4 BR-G 0 0 0 0 0 0 0 0 0 0 0.00 0.00

2 BR-TH 0 0 0 0 0 0 0 0 0 0 0.00 0.00

3 BR-TH 0 0 0 0 0 0 0 0 0 0 0.00 0.00

4 BR-TH 0 0 0 0 0 0 0 0 0 0 0.00 0.00

TOTAL COST PER UNIT POINTS TOTAL CREDIT PER UNIT POINTS

11.91 11 91 19.98

Standard Cost Parameter - low rise Parameter Adjustment - mid rise Parameter Adjustment - high rise Adjusted Cost Parameter

AS LVG 0 0 0 0

Cost Parameters - Elderly EFF-E 1 BR-E 0 0 0 0 0 0 0 0

2 BR-E 0 0 0 0

EFF-E-1 ST 0 0 0 0

1 BR-E-1 ST 0 0 0 0

2 BR-E-1 ST 0 0 0 0

Standard Credit Parameter - low rise Parameter Adjustment - mid rise Parameter Adjustment - high rise Adjusted Credit Parameter

AS LVG 0 0 0 0

Credit Parameters - Elderly EFF-E 1 BR-E 0 0 0 0 0 0 0 0

2 BR-E 0 0 0 0

EFF-E-1 ST 0 0 0 0

1 BR-E-1 ST 0 0 0 0

2 BR-E-1 ST 0 0 0 0

Standard Parameter - low rise Parameter Adjustment - mid rise Parameter Adjustment - high rise Adjusted Cost Parameter

EFF-G 0 0 0 0

Cost Parameters - Family 1 BR-G 2 BR-G 121,032 157,019 0 0 0 0 121,032 157,019

3 BR-G 183,500 0 0 183,500

4 BR-G 0 0 0 0

2 BR-TH 0 0 0 0

3 BR-TH 0 0 0 0

4 BR-TH 0 0 0 0

Standard Credit Parameter - low rise Parameter Adjustment - mid rise Parameter Adjustment - high rise Adjusted Credit Parameter

EFF-G 0 0 0 0

Credit Parameters - Family 1 BR-G 2 BR-G 9,982 12,950 0 0 0 0 9,982 12,950

3 BR-G 15,134 0 0 15,134

4 BR-G 0 0 0 0

2 BR-TH 0 0 0 0

3 BR-TH 0 0 0 0

4 BR-TH 0 0 0 0

2009

   

   

   

     

   

 

     

   

 

     

   

 

     

   

 

TAB Q
(Documentation of Rental Assistance)