Line of Credit Stated Income by qhr24458

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                          1
                              LOW INCOM E HOUSING TAX CREDIT PROGRAM APPLICATION

                                         DELAWARE STATE HOUSING A UTHORITY
                                               STATE OF DELAWARE

                                             Application on Develop ment Description
                                                             Part II




This application is designed to be sufficiently co mprehensive and precise to address all informat ion necessary for a
responsible allocation decision. However, Delaware State Housing Authority reserves the right to ask for
additional info rmation during the rev iew p rocess, should it be deemed necessary. PLEAS E MAKE S URE THE
APPLICATION CHECKLIS T HAS B EEN REVIEWED THOROUGHL Y AND ALL DOCUMENTS ARE
ATTACHED.

Applicants applying to a Tax Credit allocation through the Low Inco me Housing Tax Cred it Program, as well as
for funding through the Housing Development Fund, may submit copies of this application, with orig inal
signatures, in lieu of co mp leting a separate HDF application. However, all other requirements of the HDF
application process (including the HDF Supplement Information) must be adhered to including submission
location, timing, and fees.


                                                    GENERA L INFORMATION

I.           APPLICANT INFORMATION

             Develop ment Name

             Address                                                       Census Tract

             City                                                County

             Applicant

             Address

             City                                      State               Phone No.

             Corporation                 Nonprofit                                 Profit
             Partnership                 General                                   Limited
             Individual                  Local Govern ment                         Limited Liab ility Co mpany
             Joint Venture (list each principal owner)

                                                        (Name(s) of Ownership Entity)

             Contact Person                                                        Phone No.

             Provide current financial statements for each principal owner, developer, and/or general partner. If
             ownership entity is an existing organizat ion, provide most recent and prior year’s audited fin ancial
             statements as Exhib it 8.




1
     This application can be downloaded as a Word Document. Please contact DSHA.
                                                                    1
Develop ment Team* (Provide name/address/phone number and Taxpayer ID Nu mber)

Architect:

Developer:

Engineer:

Surveyor:

Real Estate Counsel:

Tax Counsel:

General Contractor:

Management Agent:

Processing Agent/Consultant (if applicable):

Other (specify):

*Attach copies of resumes for general contractor, architect, developer, management and/or marketing
agents, and most recent financial statements of management agent; audited if available as Exhib it 9.

Timetable

Acquisition          mos.    Starting Date                      Co mplet ion Date

Construction         mos.    Starting Date                      Co mplet ion Date

Operations           mos.    Starting Date                      Co mplet ion Date

Placed in service date

Co mpliance Period – Declaration of Land Use Restrictive Covenants

All applicants must agree to a 30-year, extended low-inco me use for the development. The minimu m term
of low-income occupancy commit ment is thirty (30) years —a fifteen (15-) year co mp liance period plus a
fifteen (15-) year extended use period. The owner may choose to exercise opt-out provisions provided
under federal law after the init ial 15-year co mpliance period.

Please check the comp liance option chosen by the owner:


             Initial 15-year co mp liance period

             20-year co mpliance period

             25-year co mpliance period

             30-year co mpliance period

             15-year co mpliance period at which t ime o wner will convert property to homeownership.

              Syndication documents must reflect the conversion.




                                                    2
      NOTE: If the owner o f the development wants to transfer the property after the initial 15 -year low-
      income use and is unable to transfer the property with a continued low-income use, the owner can notify
      the allocating agency, who has one year to find an eligib le buyer at a specified price not less than the sum
      of outstanding indebtedness and investor equity contribution as defined in Sect ion 42(h)(6) of the Internal
      Revenue Code less cash distributions from the development. Investor equity contribution is defined as the
      aggregate amount of cash the taxpayer(s) invested with respect to the development increased by an
      amount equal to the cost-of-living adjustment for such calendar year. Cost-of-living adjustment shall not
      exceed 5% for any calendar year. If a buyer is not located within one year after the owner notifies the
      allocating agency of his desire to sell, the property may be converted to market rate use with the
      qualification that existing lo w-income tenants may not be evicted within three years after the transfer of
      the property; however, this is subject to other restrictions from Federal/State Regulatory provisions. The
      owner can notify the allocating agency of his/her desire to transfer the property anytime after the 14 th year
      of the compliance period. The Declaration of Land Use Restrictive Covenants will be signed, recorded,
      and returned to DSHA before the Carryover A llocation is awarded or the development is placed in service.

      By signing this application, you have agreed to the provisions stated above.



      Income Restrictions; Rental restrictions

      Section 42 - Occupancy Restrictions, requires that a development must have a minimu m of either
      20% of its units occupied by low- inco me households with inco mes under 50% of area median inco me;
      adjusted for household size or 40% of its units occupied by low-inco me households with inco mes under
      60% of area median inco me adjusted by household size.

      Please check the minimu m inco me and rental restrictions chosen by the owner:


          At least 20% or more o f the units in the development are both rent-restricted and occupied by
      individuals whose income is 50% or less of area median gross income of ________________ County
      at time of in itial occupancy, or;


          At least 40% or more o f the units in the development are both rent restricted and occupied by
      individuals whose income is 60% or less of area median gross income of ________________ County
      at the time of init ial occupancy.



II.   FUNDING SOURCES

      Type of Funding to be Applied for (check one or more in each ro w)

      New Construction                     Rehabilitation

      Seed                  Acquisition               Construction                   Permanent

      Grant                     Loan


      Proposed Financing/Grant
                                                             Loan/Mortgage/
      Source of Financing                 A mount            Grant                   Term         Rate




                                                       3
       Loan Repayment

       Describe how all loans, if applicable, will be repaid and in what time period.




       Describe how all loans, if applicable, will be secured/guaranteed.




III.   DEVELOPM ENT STATUS

       A.       Type of Develop ment (check one)

                New construction
                Rehabilitation
                Acquisition/Rehabilitation

       B.       Date of most recent sale or transfer of property:

       C.       Current ownership of p roperty:

                Purchase price of the land and/or improvements:

       D.       Will land be leased?         Yes               No

                If yes, term o f lease
                Annual lease payment
                Will lease be subordinated to permanent financing?      Yes                No

       E.       Attach copy of recorded deed, recorded long-term lease, municipal o r county disposition and
                development agreement, an option to purchase or lease, or a purchase agreement along with all
                pertinent terms of the sales/lease contract must be submitted as Exh ibit 22.

       F.       Attach documentation of all rehabilitation/imp rovements done to the property in the previous 10
                years as Exhibit 32.

       G.       Please provide a narrat ive description of the property and attach to Exhib it 14.




                                                         4
IV.      UNIT AND OCCUPANCY INFORMATION

         Type of Occupancy and Percentage Distribution (indicate the percent of each type of unit and the income
         distribution for each type of unit)

Family                      %        Elderly                     %         Other (exp lain)            %

Very Very Low            %           Very Very Low            %            Very Very Low            %
(30% of Median or below)             (30% of Median or below)              (30% of Median or below)

Very Low                    %        Very Low                    %         Very Low                    %
(50% of Median)                      (50% of Median)                       (50% of Median)

Lower                       %        Lower                       %         Lower                       %
(60% of Median)                      (60% of Median)                       (60% of Median)

Low                         %        Low                         %         Low                         %
(80% of Median)                      (80% of Median)                       (80% of Median)

Moderate                    %        Moderate                    %         Moderate                    %
(100% of Med ian)                    (100% of Med ian)                     (100% of Med ian)

Above Moderate              %        Above Moderate              %         Above Moderate              %



         Proposed Bedroom M ix: (insert number of each)

         Efficiency                1 BR              2 BR               3 BR              4 BR

         Will this development have a manager/staff unit?       Yes                 No
         If yes, please provide the unit size and square footage:

         Will this development have a separate office and maintenance building? Yes                    No
         If yes, please describe:

         Will this development use the Public Housing or Section 8 waiting lists?

                  Yes ( )
                  No ( )

         If yes, please provide a letter o f support from the local or public housing authority and attach as
         Exh ib it 13.

In accordance with IRS Revenue Procedure 94-57, please elect the timing for establishing the initial gross rent
floor. The gross rent floor is the maximu m gross rent allowed on a rent-restricted unit (Check one)

                    The gross rent floor takes effect on a building’s placed in service date.

                    The gross rent floor takes effect on the date of allocation.




                                                            5
Income Ranges to be Served*
                                                                                                       Amt. Of HDF
                                                                 Estimated***        Estimated***      Funds per Unit
                                    No. of            Rent       Cost of Utilities   Total Housing     Serving Very
Household**       No. of            Rental            per        not included in     Expenses to       Lo w-Mod
Size              Bedroo ms         Units             Unit       Rent                Tenant            Income




* Co mp lete Attachment E, if currently occupied.
** Pro jected family sizes to be served. Minimu m family size is determined by the number of bedroo ms. See min imu m
threshold requirements.
*** The IRS requires the following rules be adhered to if your tenants are paying any of their own utility costs (attach
verification as Exhib it 23):
          a.      If a bu ild ing receives RHS assistance or any tenant in a building receives RHS assistance, use RHS utility
                  allo wances. Use these utility allowances even if other state or federal assistance is received.
          b.      If it is HUD regulated, i.e., reviewed by HUD annually, then use HUD utility allowances.
          c.      If there is no RHS assistance in your project or is not HUD regulated but there are individual households
                  receiving HUD rental assistance (certificates or vouchers), then those units will use the applicable Public
                  Housing Authority utility allo wance for the Sect ion 8 Existing Housing Program.
          d.      If none of the above applies to you, then use the applicable Public Housing Authority utility allowance.
                  You may also use a local utility company estimate but, if it is different fro m the PHA allowance, you must
                  use the utility co mpany’s estimate.

****Estimated total housing expense to tenant cannot exceed the maximu m rents allowed by number of b edroo ms. See rent
limits by number o f bedrooms.

V.       TYPE OF STRUCTURE

         ( ) Garden Apts. (1-3 story apts.)            ( ) Townhouses                ( ) High rise
         ( ) Single Family Detached                    ( ) Other (Explain)

         No. of Dwelling Units                Total Bu ild ing Area                  sq. ft.

         No. of Bu ild ings                   No. of Stories                         Total Parking Spaces

         Zoning Classification                         (Provide verification – label as Exh ibit 26)

         Primary Heating System:              ( ) Electric       ( ) Oil
                                              ( ) Gas            ( ) Other




                                                             6
Amenit ies (that exceed DSHA’s minimu m construction standards), please list:




Easements (describe type, purpose, effect on project, easements must be shown on location map and
provide verification—label as Exh ibit 49); if none, so state.




Describe the physical characteristics of the site, i.e., shape, terrain, foliage, structures on site, etc. (Attach
recent photograph of the property on Exhib it 26.)




Unusual Site Features (check appropriate bo x):

( ) 50 Year        ( ) 100 Year               ( ) Poor Drainage               ( ) In Flood Plain
( ) Fills          ( ) Unstable Soil          ( ) Wetlands                    ( ) Creek, Lake, etc.
( ) Other (specify)                           ( ) None
(Provide verification – label as Exh ibit 27)

Discuss access to retail shopping facilit ies, employ ment centers, and other services accessible to the
residents that improve their quality of life —access, type, distance, etc. (Describe each service and include
on location map labeled as Exh ibit 14.)




Public Transportation: Type(s) and Location(s) (show on location labeled Exh ibit 14)



Frequency of Service



Nearest Schools, Day Care Centers, Nurseries, etc.:

         Name                                   Location/Distance                      Grades




                                                    7
Sewer System Available: ( ) Yes        ( ) No             Name of plant

                                                 Distance fro m site

         Size of Line

Storm System Availab le: ( ) Yes       ( ) No Distance fro m site

         Size of Line

Percent present use is of capacity: San itary             % Storm            %
(Provide verification – label as Exh ibit 22)

Water Main Available: ( ) Yes       ( ) No      Distance fro m site

         Size of Main

Gas Main Availab le: ( ) Yes       ( ) No       Distance fro m site

         Size of Main

Are there any special assessments in place or necessary? ( ) No        ( ) Yes
If so, please fill in the following:

Amount             Length                       Type/Reason                  Govern ing Body




Are off-site public improvements required? ( ) No         ( ) Yes         Will a special assessment be levied?
( ) No ( ) Yes        If yes to either, please explain.




Other fees, charges, assessments payable: Sewer special charge $

Length                      Water special charge $                           Length

Other (specify)                       $                             Length




                                                   8
Services Available to Each Unit : (Check services available and who pays for the service)

                                               Gas         Electric    Oil     Other       Owner       Tenant

          Heat

          Hot Water

          Cooking

          Air Condition ing

          Lights (in unit)

          Water

          Sewer

          Trash Removal

          Parking

          Other (describe)


Square Footage:

Total Square Footage of each build ing:

Total Square Footage of Co mmercial Space in each build ing:

Total Square Footage of Residential Space in each build ing:

Total Square Footage of the Lo w-Income Residential Un its
In each building:

Please identify the co mmercial space in each build ing:




Are there any amen ities, utilit ies, or construction/rehabilitation costs that will be shared by the commercial space
and the low-inco me residential units? ( ) Yes ( ) No           If yes, please identify:




                                                             9
DEVELOPM ENT ECONOMICS

I.   TOTA L DEVELOPM ENT COSTS*

     A.    Pre-Develop ment Costs:

           a.      Feasibility Study                         $

           b.      Market Study                              $

           c.      Appraisal                                 $

           d.      Environmental Audit                       $

           e.      Plans and Specifications                  $

           f.      Legal Fees                                $

           g.      Other (specify)                           $

           h.      Total Pre -Development Costs…………………………………..$

     B.    Construction Costs:

           a.      Buildings (co mplete Attachment A)**      $

           b.      Site Work           $
                   Site Grading        $
                   Utilit ies          $
                   Improvements        $
                   Landscaping         $
                                       Total Site Work       $

           c.      Subtotal (Bu ild ings & Site Work)        $

           d.      General Contractor’s Pro fit and
                   Overhead (10% o f the total
                   Of a, b, and f)                           $

           e.      Performance Bond Premiu m                 $

            f.     General Requirements (for new
                   construction, 8% of buildings
                   and site work. For acquisition
                   with rehabilitation, 10% of
                   rehabilitation costs): See
                   Attachment A.                             $

           g.      Other (specify)                           $

           h.      Subtotal (add lines d through g)          $

           i.      Total Construction Costs (B.c. + B.h.)………………………….$

           j.      Total Construction Cost per Square Foot   $
                   (based on exterior dimensions)




                                                 10
Fees

a.      Architect’s Fee                        $
        Design            $
        Supervision       $
        Sub-consultants   $
        Other             $

b.      Legal – Construction                   $
                Permanent                      $

c.      Accounting                             $

d.      Marketing ***                          $

e.      Amount to make project operational     $
        (AMPO) (For RHS propert ies only)

f.      Surveys and Soil Borings               $

g.      Other (specify)                        $
        Inspections       $
        Other             $

h.      Total Fee Costs………………………………………………….$

Financing Fees and Costs During Construction

a.      Construction Interest                  $
                %/        mos. on $

b.      Taxes – Property & Transfer            $

        Other (specify)                        $

c.      Insurance Premiu m (specify type)
        Construction              $
        Builders Risk             $
        Property & Liability      $
        Other                     $
        Total                                  $

d.      Construction Financing Fees
        Lender:                  $
        Lender:                  $
        Total                                  $

e.      Permanent Financing Fees
        Lender:                  $
        Lender:                  $
        Total                                  $

f.      Title and Recording                    $

g.      Impact Fees and/or Jurisdiction
        Fees (provide documentation)           $

h.      Permit Fees (provide docu mentation)   $

i.      State Improvement Tax (provide         $
        documentation, if exempt)
                                   11
     j.       Letter of Credit Fees, if applicable         $

     k.       Construction Contingency (a minimu m
              of 5% for new construction and 10%
              for rehabilitation – based on the cost of
              buildings, site work, general require-
              ments and contractor’s overhead and
              profit)                                      $

     l.       Cost Certification Fee                       $

     m.       FFE (furn iture, fixtures & equip ment)      $

     n.       Noise Assessment Fee                         $

     o.       Other Fees (specify)                         $

     p.       Total Financing Cost…………………………………………….$

C.   Developer’s Fee …………………………………………………………...$
     10% of total develop ment cost excluding developer fee, transferred reserves, bond prepayment
     penalty and land cost up to $8,000,000. For identity of interest acquisitions of existing rental
     properties, the fee for acquisition is calculated at 8½% of the Total Devel opment Cost excludi ng,
     developer fee, transferred reserves, bond prepayment penalty and land cost up to $8,000,000.

D.   Land/Acquisition Costs

     a.       $        /Land price per dwelling unit        $
              Total acreage      at $             per sq. ft.

              1.       Unimproved land value ****          $

     b.       Off-site Imp rovements (attach list)         $

     c.       Carrying Charges (interest charges           $
              and other fees) Exp lain


     d.       Acquisition cost of existing imp rovements   $
              on land

     e.       Transferred Reserves                         $
              (List) Amounts/Types


     f.       Bond Prepay ment                             $
              or other penalties
              (List) A mounts/Types


     g.       Total Land/Acquisition Cost…………………………………….$
              (actual acquisition cost or appraised value)*****



E.   Relocation Cost – (if any costs are to be incurred, please provide detailed narrative of relocation
     as Exhibit 32. All Federally financed, subsidized, or conversion properties must follow Un iform
     Relocation Act requirements. Expenses should include moving expenses, trash removal, and
     relocation expenses. Please take into consideration the number of t imes a resident may have to
     move (i.e., off-site move vs. moves within the property).

                                             12
                 a.      Permanent $

                 b.      Temporary $

                 c.      Total Relocation Cost       $

        F.       Total Develop ment Cost:

                 a.      Total of Sect ions A-E……………………………………………$

                 b.      Total $            /cost per dwelling unit

                 c.      $                  /cost per dwelling unit less land price/value

        G.       Non-DSHA Eligible Costs (can be included in elig ible basis)

                 a.      Tax Cred it Application Fees         $

                 b.      Consultant Fees                      $

                 c.      Bro ker Fees                         $

                 d.      DSHA Application Fees                $

        H.       Other Non-Eligible Tax Credit Basis Costs:

                 a.      Fees

                         Monitoring                           $
                         Allocation Fees                      $
                         Other                                $
                         Transitional Reserves                $
                         Total Fees                           $


                 b.      Legal/Accounting

                         Developer’s Syndication Legal                           $
                         Developer’s Syndication Accounting                      $

                 c.      Operating Reserve Escrow                                $

                 d.      Cash Working Capital Escrow                             $

                 e.      Other                                                   $

                 f.      Total Other Non-Elig ible Costs                         $

*       Identi fy hard/soft costs that are attri butable to the low-income units only. Please attach a separate
        breakdown of costs attributable to commercial or phase-in costs by line item, if applicable.
**      Attach as Exhib it 38, a Physical Needs Assessment and min imu m requirement/checklist for project
        involving rehabilitation.
***     Attach with Exh ibit 10 a copy of the marketing plan exp laining in detail the procedures to be used in
        renting up the units.
****    A summary report of land value will be required to determine cost of land without improvements, if such
        land is already improved; attach as Exhibit 56.
***** Attach as Exhib it 56 a copy of the appraisal and settlement sheet. Appraisers are required to contact
DSHA for a list of comparable LIHTC properties, which are to be included as comparables within property
appraisal report.

NOTE: Line item definitions may be found in DSHA Mortgagor’s and Cont ractor’s Draw Requisit ion process and
Cost Certification Gu ide.
                                                  13
II.      OPERATING INCOM E (1st full year of operation)

         A.       Annual Rental Inco me

                                             Gross
                                             Sq. Ft.                                             Subsidy Type
                                             Per               Rent               Monthly        A mount Per Unit
                           Nu mber           Unit*             Per Unit           Income**       (if applicable)

Efficiency        (MRU)

                  (LIU)

1 BR     Bath     (MRU)

                  (LIU)

2 BR     Bath     (MRU)

                  (LIU)

3 BR     Bath     (MRU)

                  (LIU)

4 BR     Bath     (MRU)

                  (LIU)

5 BR     Bath     (MRU)

                  (LIU)

TOTA L UNITS                                           Total Monthly Income: $               *** $

                                    Less Vacancy of            %          $                  $
                           Total Monthly Income Project :      $                             $
                           (x) times 12 months
                           Annual Income Projected             $                           $
                           Total Annual Income****             $                                              (A)

If guarantee/subsidies are less than 20 years, please provide documentation of other inco me for remain ing term of
proforma.

*      Provide verification as Exh ibit 54.
**     Should equal Rent Per Unit t imes number of units.
***    Does not include free apart ments for maintenance and management personnel.
****   Add together Annual Income projected for Subsidy Type and Monthly Income colu mns.

Federally Subsidized properties must use the contract rents approved by HUD/ Contract Administrator for the
contract period and Tax Credit Rents after any affordability period exp ires.
MRU – Market Rate Unit
LIU – Designated Low Inco me Unit




                                                         14
B.       Annual Non-Housing Income (A ll inco me must be included for budget purposes)

         a.       Parking Inco me

                  1.            Spaces @ $         / mo. X 12 mos.                         $

                  (Less   % vacancy loss of $                     )                        $

         b.       Other Inco me (Laundry)

                  1. Washing Machines @ $                    /unit/yr. x       units       $
                  2. Vending Machines @ $              /unit/yr. x         units           $

         c.       Co mmercial Space

                  1.                sq. ft. x $        /sq. ft./yr.                        $

                  (Less   % vacancy loss of $          )                                   $

                  Miscellaneous
                  (specify type- damages, late/NSF/ Application Fees, etc):
                                                                                           $


         d.       Total Non-Housing Income                                             $       (B)

C.       Special Program Operating Inco me (Applicable to Single Roo m Occupancy, etc.)

                                    Current Budget Anticipated
                                    (if applicable)                   1st year

Income                              $                             $

Medicare/Medicaid                   $                             $

Other Insurance                     $                             $

Entit lement Programs               $                             $
(e.g., Soc. Sec., VA)

Sheltered Housing                   $                             $

Grants:
county, local, other
specify                             $                             $

Private/Client Contributions        $                             $

         Total Special Program Income                                                  $       (C)


D.       Total Annual Operating Inco me

         Total Sections A, B & C…………………………………………………$




                                                  15
III.   Estimated Annual Operating Expenses

       A.      Admin istrative:

               a.       Advertising and Marketing                                          $

               b.       Management Fee – 8% of Total Annual Income                         $
                        (may be less on subsidized propert ies)
               c.       Office Supplies and Expenses                                       $

               d.       Legal                                                              $

               e.       Audit                                                              $

               f.       Accounting/Bookkeeping Fees                                        $

               g.       Permits, Licenses, and Misc. Taxes                                 $

               h.       Insurance Premiu ms (liab ility $                 , property
                        $       , rental $          , loss $              , disaster
                        $       , fire $            , fidelity $          ,
                        flood $                                                            $

               i.       Payroll (manager, assistant, etc.[include all benefits, taxes,
                        and workers co mpensation] ). Co mplete Attachment B.              $

               j.       Telephone, answering service                                       $

               k.       Bad Debts                                                          $

               l.       Annual Municipality Inspection/Rental Fees                         $

               m.       Other (specify)                                                    $

               n.       Total Administrative Expenses………………………………. $

       B.      Maintenance:

               a.       Exterminating                                                      $

               b.       Elevator Maintenance                                               $

               c.       Heating and Air Conditioning Maintenance                           $

               d.       Trash Removal                                                      $

               e.       Painting and Decorating (i.e. carpet, vct, t iles, b linds etc.)   $

               f.       Electrical Repairs and Supplies                                    $

               g.       Plu mb ing Repairs and Supplies                                    $

               h.       Roof Repairs                                                       $

               i.       Repairs Contracts (specify)                                        $

               j.       Grounds Maintenance Contract/Snow Removal and Supplies $

               k.       Janitor Supplies                                                   $

               l.       Misc. Maintenance and Supplies                                     $
                                                  16
     m.       Security Payro ll/ Contract                                     $

     n.       Maintenance Payroll (include all benefits, taxes
              and workers co mpensation) Co mplete Attachment B.              $

     o.       Other (specify)                                                 $

     p.       Total Maintenance Expenses…………………………………. $

C.   Utilit ies (paid by owner)*

     a.       Oil - $              per month x 12 months                      $

     b.       Electric (if paid by owner):        Elevators
              Heating             Hot Water       Public Space
                         Cooking           Co mmercial
              Air Conditioning             Household Electricity
              $          per month x 12 months                                $

     c.       Sewer - $            per month x 12 months                      $

     d.       Water - $            per month x 12 months                      $

     e.       Gas (if paid by owner):           Heating
                        Hot Water               Household Gas
              $                 per month x 12 months                         $

     f.       Other (specify)                                                 $

     g.       Total Ut ility Expenses………………………………………… $

     h.       Utilit ies to be paid by occupant*

              Estimated Monthly Cost Per Unit
              $        Household Electric   $              Air Conditioning
              $        Heat                 $              Hot Water
              $        Cooking              $              Other (explain)

              Total occupant-paid utilities $




                                             17
         D.       Reserve for Replacement (annual)
                  New Construction: .006 x cost of build ings or $500.00 for p roperties
                  with 32 units or less. Rehabilitation: $500.00 - $1,500.00**             $

         E.       Taxes (provide details)


                                                                                           $

         F.       Other expenses not addressed in the Application (exp lain)


                                                                                           $

         G.       Total Operating Expenses (Total of A through F)…………………….. $

         H.       Net Operat ing Income (Operating Inco me Less Operating Expenses).. $


* These items should be supported by projected estimates fro m utility companies, etc., or an analysis of expenses
incurred by this or comparable develop ments.

** DSHA has established a min imu m reserve requirement of $500.00 / unit for Rehabilitation or such other amount as
   deemed appropriate by DSHA. See underwriting guidelines.


NOTE: All charges to operating expenses for personnel and/ or fees by the management agent or rel ated entity
are subject to review and approval by DS HA of time sheets or a cost allocati on plan.




                                                         18
IV.      EXTENDED CASH FLOW

Please provide a cash flow proforma as Exh ib it 54. You may use a similar format to the one shown on Attachment C,
which provides a detailed cash flo w covering the entire develop ment/construction period and the 20 years of operation.
Cost escalators described in DSHA’s underwrit ing criteria must be used. Any deviations fro m DSHA’s underwrit ing
criteria must be pre-approved by DSHA. Footnotes should be provided for every line item in the cash flow. A form for
showing forecast rent is provided as a part of Attachment C.

If there are any fees (paid, payable or deferred) to the developer or parties related to the develope r not already clearly
detailed in Section I-B, Construction Costs, provide detailed explanation in cash flow.




                                                           19
V.       SUMMARY SOURCES AND USES OF FUNDING

         A.       Source(s) of Debt (provide debt service schedule using format shown in Attachment D)

                                                 Loan                                              Status of
         Lender            $ Requested           Term          Loan*              Rate            Application**




         TOTA L DEBT $


         B.       Source(s) of Equity (describe source and amount, equity includes all funds contributed by partners,
                  owners and syndication, as well as grants. If syndication is planned, provide details of anticipated
                  cash proceeds and use of proceeds as part of Exh ibit 57.)

                                                                                  $

                                                                                  $

                                                                                  $

                  Less Anticipated Syndication Costs (List):

                                                                                  $

                                                                                  $

                                                                                  $

                  TOTA L NET EQUITY                                               $


* Deferred, amort ized, balloon, etc.
** Application submitted, application approved, etc. Attach all co mmit ment letters, loan agreemen ts, or other
documents verifying status as Exh ibit 55.


         C.       Uses of Financing                   Amount             Type of Financing

                  Pre-develop ment Costs              $

                  Acquisition – Land                  $

                  Acquisition-Buildings               $

                  New Construction                    $

                  Rehabilitation                      $

                  Other (specify)                     $
                                                          20
                  Other (specify)                      $

                  Total                                $



The undersigned applies for the Tax Credits indicated in this applicat ion and represents that the property will not be
used for any illegal or restricted purpose, and that all statements made in th is application are true and are made for the
purpose of obtaining a Tax Cred it allocation. The Applicant hereby certifies that he/she believes the development can
be completed within the development budget set forth and operate the development within the operating budget set
forth. In addit ion, the Applicant certifies that the Sources and Uses of Funds includes the full amount of all federal,
state or local subsidies/funds that are committed or anticipated for the development. Verification may be obtained fro m
any source named in this application. The Applicant understands that the original or a copy of this application will be
retained by the Delaware State Housing Authority, even if an allocation is not granted.

The Applicant further represents that if a Lo w Inco me Housing Tax Cred it reservation is granted, as a result of this
application, it will pro mptly fu rnish such other supporting informat ion and documents as may be requested. In carrying
out the development and operation of the development, the Applicant agrees to comply with all applicable federal and
state laws regarding unlawful discrimination and Low Inco me Housing Tax Credit Program rules and regulations. The
Authority is not responsible for actions taken by the Applicant in reliance on a prospective Tax Credit reservation. It is
further understood and agreed by the Applicant that for the purpose of determining qualified develop ments and
allocating the Tax Credit, the Delaware State Housing Authority can reduce, modify o r reject any or all Low Income
Housing Tax Credit allocation requests.

NOTICE TO APPLICA NT:

For Applicants applying to the Housing Development Fund, Applicant covenants and agrees that, in the event Applicant
makes false statements or otherwise provides information to DSHA with the intent to mislead DSHA, or otherwise
violates the rules and regulations of DSHA, in addition to any other contractual remedies available to DSHA, DSHA
may impose such sanctions as the Housing Director shall seem reasonable under the circumstances as are authorized by
DSHA’s rules and regulations. In the event Applicant objects to any such sanctions in writ ing within thirty (30) days
after notice of their imposition, Applicant shall have the right to have the imposition of sanctions reviewed at a public
session of the Council on Housing, and the parties agree that the Council on Housing shall have the right to mod ify,
increase, suspend, or cancel such sanctions and such decision shall be binding upon DSHA and Applicant.

All percentages stated in this application (i.e., 10% General Contractor’s Profit and Overhead, 8% General
Requirements, 8% Management Fees, etc.) are required to meet DSHA’s underwrit ing criteria and may not be deviated
fro m unless approved by DSHA. Moreover, no adjustments in a development’s operating inco me or expenses are
allo wed to be used to enhance an applicant’s tax credit ran king or Housing Development Fund approval.


I/we fu lly understand that it is a Class A misdemeanor o r punishable by fine up to $2,300 up to one year in prison,
restitution, and other conditions as the court deems appropriate, to knowingly make any false statements concerning any
of the above facts as applicable under the provisions of Title 11, Delaware Code, Sect ion 1233.




                                                                         (Signature)




(Date)                                                                   (Print Name)




                                                                         (Tit le)


                                                           21
                                                                (Legal Name of Applicant)




               LOW INCOM E HOUSING TAX CREDIT PROGRAM APPLICATION – PART II
                                     ATTACHM ENT A
                                     COST SUMMA RY

                                                          New Construction          Rehabilitation
SITEWORK…………………………………………… ……....$                                               $
       Underground Construction……………………………$                                     $
       Landscaping ($300/unit min imu m)……………… …..$                             $
       Site Improvements……………………………………$                                         $
       Roads/Walks/Parking/Curbs………………………….$                                    $
       Site Utilities…………………………………………..$                                        $
       Earthwork…………………………………………….$                                             $
       Miscellaneous (i.e., playground equipment, parks, $                      $
       benches, gazebos, etc.)……………………………….
TOTA L SITEWORK…………………………………………..$                                              $

TOTA L DEMOLITION……………………………………….$                                              $

TOTA L CONCRETE………………………………………….$                                               $

TOTA L MASONRY…………………………………………..$                                               $

TOTA L VINYL SIDING/TRIM ………………………………$                                          $

TOTA L CARPENTRY (rough & fin ish)……………………..$                                   $

TOTA L INSULATION/FIRESTOPPING……………………$                                         $

TOTA L ROOFING……………………………………………$                                                $

TOTA L M ETA LS/ GUTTERS/SPOUTS/RAILINGS………...$                                 $

TOTA L DOORS AND FRAM ES……………………………..$                                          $

TOTA L WINDOWS…………………………………………...$                                              $

TOTA L DRYWA LL…………………………………………..$                                              $

TOTA L FLOORING/ VCT/ VINYL…………………………...$                                       $

TOTA L PA INTING………………………… …………………$                                             $

TOTA L CARPETING…………………………………………$                                               $

TOTA L SPRINKLER………………………………………….$                                              $




                                                  22
                                                          New Construction   Rehabilitation

TOTA L APPLIANCES…………………………………………$                                           $

TOTA L BLINDS/SHADES…………………………………….$                                         $

TOTA L PLUM BING……………………………………………$                                           $

TOTA L HVA C………………………………………………….$                                            $

TOTA L ELECTRICA L…………………………………………$                                          $

MISCELLANEOUS…………………………………………….$                                             $

ENGINEERING LA YOUT……………………………………..$                                         $

STORA GE SEPARATIONS…………………………………….$                                         $

GYPCRETE……………………………………………………..$                                              $

KITCHEN CABINETS………………………………………….$                                           $

PEST CONTROL/TERM ITE……………………………………$                                         $

TOILET A CCESSORIES………………………………………..$                                        $

SPECIA LITIES (fire extinguishers, emergency call, etc.)………$                 $

GRA ND TOTAL………………………………………………..$                                            $




                                                   23
                  LOW INCOM E HOUSING TAX CREDIT PROGRAM APPLICATION – PART II

                                                   ATTACHM ENT B



On-site Management* Payroll Breakdown




                                                                            Payro ll Taxes
                                                                                 and
Nu mber                    Position                        Wages           Fringe Benefits          Total

                                                       $                    $                 $


                                                       $                    $                 $


                                                       $                    $                 $



Describe Fringe Benefits: (include the rental value of any housing or the value of reduced rent, if applicable)




NOTE: Regional/District manager salaries may not be included as part of operational expenses. Only on -site
management/personnel are allowab le.




                                                           24
                LOW INCOM E HOUSING TAX CREDIT PROGRAM APPLICATION – PART II

                                          ATTACHM ENT C


Develop ment:

Location:


                                       Co mprehensive Cash Flo w

                              Year 1         Year 2           Year 3   Year 4       Year 5

DEVELOPM ENT COSTS
       Pre-develop ment
       Construction
       Construction Fees
       Acquisition Costs
       Relocation
TOTA L DEVELOPM ENT COSTS $                  $                $        $        $

OPERATING EXPENSES
      Advertising/Marketing
      Management Fee
      Supplies
      Office Expense/Telephone
      Legal
      Audit
      Accounting/Bookkeeping
      Licenses/Permits/Fees
      Insurance
      Admin istrative Payroll
      Maintenance Payroll
      Exterminating
      Elevator Maintenance
      HVA C
      Trash Removal
      Painting/Decorating
      Electrical Repairs
      Roof Repairs
      Ground Maint./Supplies
      Janitor Supplies
      Misc. Maint./Supplies
      Utilit ies
                 Heating Oil
                 Electric
                 Water/Sewer
                 Gas
      Reserve for Replacement
      Taxes
      Other
NET OPERATING EXPENSES (NOE) $               $                $        $        $




                                                 25
OPERATING INCOM E
      Gross Rental Inco me
        LESS: Vacancies
NET RENTA L INCOM E $         $        $   $   $

      Non-Housing Income
             Parking
             Co mmercial
             Other (detail)
NET OPERATING INCOM E $       $        $   $   $
(NOI)

       Available for Debt
       Service
       (NOI LESS NOE) $       $        $   $   $

FINA NCIA L CASH FLOW
       Debt Service
       Bank ―A‖
       Bank ―B‖
       Housing Development
          Fund
       Local Govern ment
       Federal Agency
       Equity (inflow only)
TOTA L DEBT SERVICE $         $        $   $   $

CASH A VAILA BLE FOR
DISTRIBUTION        $         $        $   $   $

EQUITY DISTRIBUTION
       Participant A
       Participant B
       Participant C
TOTA L DISTRIBUTION $         $        $   $   $


SURPLUS CASH           $      $        $   $   $




                                  26
                                                RENT SCHEDULE

                                               UNIT BREAKDOWN



No. of Units     Type              Very Low         Lowest            Low              Moderate

                 Efficiency
                 1 Bedroo m
                 2 Bedroo m
                 3 Bedroo m
                 4 Bedroo m
                 5 Bedroo m
                   Bedroo m

                 TOTA L



                                                MONTHLY RENT


No. of Units     Type              Very Low         Lowest            Low              Moderate

                 Efficiency
                 1 Bedroo m
                 2 Bedroo m
                 3 Bedroo m
                 4 Bedroo m
                 5 Bedroo m
                   Bedroo m

                 TOTA L




Escalators used beyond start-up (show for each inco me category). Rent schedule should be shown each year for 20
years.

        20XX Start -up
        20XX
        20XX
        20XX
        etc.




                                                       27
                  LOW INCOM E HOUSING TAX CREDIT PROGRAM APPLICATION – PART II
                                        ATTACHM ENT D

                                              DEBT SERVICE SCHEDULE*


                                     Year 1             Year 2            Year 3             Year 4              Year 5


Specific
Debt Obligation**




         Principal:
         Interest:




         Principal:
         Interest:




         Principal:
         Interest:




         Principal:
         Interest:




Total                                $                  $                 $                  $               $


* Extend fro m first draw on any debt obligations to 20 years after start-up of operations. Indicate first year of
operations.

**Identify each debt obligation and give total annual principal and interest payments for each.




                                                            28
                    LOW INCOM E HOUSING TAX CREDIT PROGRAM APPLICATION – PART II
                                          ATTACHM ENT E

                           INFORMATION ON DEVELOPM ENTS CURRENTLY OCCUPIED



I.         Current rent and income information for each unit.



                                                         Estimated                        Current
Unit                                                     Monthly Avg.         Current     Household
Identi-             Nu mber Of         Present*          Utilit ies Paid      Household   Annual
fication            Bedroo ms          Rent              by Tenant            Size        Income




* Note units which are subsidized and provide amount and type of subsidy.




II.        Attach as Exh ibit 30 a current operating budget, if applicable.




                                                            29
                LOW INCOM E HOUSING TAX CREDIT PROGRAM APPLICATION – PART II
                                      ATTACHM ENT F


                                  Environmental Review Checklist

AREA OF STATUTORY           REFERENCES/NOTES PROVIDING                               YES OR NO
OR REGULATORY               DOCUM ENTATION, SOURCES AND                              IF YES, EXPLAIN
COMPLIA NCE                 EXPLA NATION OF CHECKED BOXES



Historic                    Is property known to be in or adjacent to a historic
                            district, or on Nat ional Register of Historic Places?   __________________

                            Are there or have there been any buildings on
                            property older than 50 years?                            __________________

                            Are there any known archaeological sites on              __________________
                            property?

Flood Management            Is any of the property in the 100-year flood plain?      __________________

Wetlands                    Are there any wetlands on the property?                  __________________

Coastal Zone                Is development within 2 miles of the Delaware            __________________
                            River and in New Castle County?

Endangered Species          Are there any known endangered species on or             __________________
                            near site?

Wild & Scenic Rivers        Is development known to be located on a wild and         __________________
                            scenic river?

Air Quality                 Will develop ment generate an unusual amount of          __________________
                            traffic?

                            Has entrance approval been obtained from DelDot?         __________________

Farmlands                   Does development have agricultural zoning?               __________________


Noise                       Is development located adjacent to a major h ighway? __________________

                            Is development located adjacent to a railroad?           __________________

Airports                    Is development located near an airport?                  __________________

Hazardous                   Are there any above ground tanks containing petroleum
                            products or chemicals of an exp losive or flammab le
                            nature near site?                                    __________________




                                                 30
                      LOW INCOM E HOUSING TAX CREDIT PROGRAM APPLICATION – PART II
                                            ATTACHM ENT G
                                        GENERA L REQUIREM ENTS

Following is a listing of elig ible items which may be charged as general require ments by the general contractor for
DSHA-financed developments. (A full defin ition of general requirements may be found in DSHA’s Mortgagor’s Draw
Requisition process and Cost Certificat ion Guide.)

1.         Site supervision and project manager (no more that 25% of P.M .).

2.         Office labor of employees performing minor functions directly related to the development may be charged on a
           prorata basis (not to exceed $15,000).

3.         Soil testing.

4.         Site engineering and layout.

5.         Concrete testing.

6.         Temporary heat, electric, water and toilets.

7.         Temporary roads, walks, barricades and fencing.

8.         Temporary fire p rotection.

9.         Field office and minor field office supplies (not to exceed $500).

10.        Field telephone.

11.        Field storage.

12.        Cleanup labor and hauling.

13.        Du mpsters for construction debris only.

14.        Final cleanup including window washing.

15.        Labor for material movement on site.

16.        Small tools and supplies.

17.        Theft and vandalism supported by a police report and not covered by insurance.

18.        Security including watch men.

19.        Truck or car expense of site supervisor and project manager on a prorata basis.

20.        Equip ment rental including fuel and maintenance.

21.        Temporary development signs.

22.        Blueprint copies and photos.
NOTE: General Requirements are 8% of hard costs for new construction developments, excluding overhead and profit and 10% of hard costs for
rehabilitation developments, excluding overhead and profit. All charges to General Requirements must be thoroughly documente d by invoices,
canceled checks, time sheets, logs, etc. Contractor should forward a copy of this listing and DSHA cost certification requir ements to their accountants
for cost certification purposes.




                                                                       31

								
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