HomeMy WebLinkAbout2008-123 Housing - Affordable Housing Bond Development Agreement TBLF ENO HAVEN LLC $1,000,000~ ~ ^
Please return this Copy to the
Clerk to the Board's office for PAF
NORTH CAROLINA
AFFORDABLE HOUSING BOND
DEVELOPMENT AGREEMENT
ORANGE COUNTY
This is an AGREEMENT between Orange County, a general local governmental unit of
the State of North Carolina, (hereinafter referred to as the "County") and TBLF ENO HAVEN,
LLC, a North Carolina limited li ility Company (hereinafter referred to as "Owner"). The
effective date of this Agreement is C~~
WITNESSTH
WHEREAS, the County, in the implementation of the Orange County Affordable Housing
Bond Program solicited applications for funding for affordable housing projects from interested
organizations; and
WHEREAS, TBLF, LLC intends to construct a new 76 unit affordable rental
development known as Eno Haven Apartments owned by TBLF ENO HAVEN, LLC, which is
targeted for disabled and elderly families earning less than 60% of the area median gross income,
and which will remain affordable for low and moderate income families as described in an
application for Orange County Affordable Housing Bond Program funds on file in the County's
Housing, Human Rights, and Community Development Office (hereafter "the Project"); and
WHEREAS, on June 5, 2008 the Orange County Board of Commissioners awarded the
Owner $1,000,000 in FY 2001 Orange County Affordable Housing Bond funds to assist in the
development of the Eno Haven Apartments on property described more particularly described in
EXHIBIT A attached hereto and made a part of this Agreement (hereinafter referred to as "the
Property"); and
NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations
contained herein, it is agreed between the parties hereto as follows:
I. USE OF BOND FUNDS
1. The Owner shall perform the projects or tasks related to its allocation of Bond funds as
provided in Exhibit B and within the proposed budget outlined in Exhibit C. Exhibits B and C
are hereby made a part of this Agreement and are incorporated by reference, as it now reads or as
it may be modified by the parties.
2. The Owner may not request disbursement of funds under this Agreement until the funds
are needed for payment of eligible costs in accordance with Exhibit D. The amount of each
request must be limited to eligible costs as determined by Orange County staff.
3. Said funds shall be disbursed by check payable to the Owner.
II. AMOUNT OF BOND FUNDS/LOAN TERMS
The County shall make available to the Owner up to One Million Dollars ($1,000,000) pursuant
to this Agreement. Said funds shall be disbursed by the County to the Owner for performance of
the services described in Exhibit B. The Orange County Affordable Housing Bond Loan funding
will be provided in the form of a direct zero interest loan deferred for a period of 30 years with a
balloon payment of the original principal of $1 million dollars at the end of the loan period.
Loan funds will be secured by a Deed of Trust and Promissory Note.
III. LIEN POSITION
At the time of the Orange County Affordable Housing Bond Loan closing the County will be
subordinate to the existing BB&T construction loan and the NC Housing Finance Agency
Exchange Loan. At the time of the permanent loan closings, the BB&T Construction Loan will
be paid off and the Orange County loan will be subordinated to the NC Housing Finance Agency
Exchange Loan and the Community Investment Corporation of the Carolinas.
Orange County hereby acknowledges that the terms and conditions of its (i) Affordable Housing
Bond Development Agreement, (ii) Promissory Note, (iii) Deed of Trust and Security Agreement
and (iv) Declaration of Restrictive Covenants (collectively referred to as "Orange County Loan
Documents"), for Eno Haven Apartments shall be and are expressly subordinated to the
following exceptions to title that encumber the property, as described in the Orange County Loan
Documents: (i) Deed of Trust in favor of BB&T Bank recorded in Book 4825, Page 488, Orange
County Registry, (ii) Deed of Trust in favor of North Carolina Housing Finance
Agency(Exchange Loan) recorded in Book 4840, Page 498, Orange County Registry; (iii)
Declaration of Land Use Restrictive Covenants for Section 1602 Exchange Program recorded in
Book 4840, Page 514, and (iv) Declaration of Land Use Restrictive Covenants for Low Income
Housing Tax Credits, recorded in Book 4840, Page 548.
Orange County further acknowledges and agrees that TBLF Eno Haven, LLC will obtain
permanent financing from the Community Investment Corporation of the Carolinas, in the
original principal amount of $1,700,000 ("CICCAR Loan"), that shall be documented by, but not
limited to, a (i) Deed of Trust, (ii) Assignment of Lessor's Interest in Leases, Rents and Profits
and (iii) Regulatory Agreement, that shall be recorded on the public records in Orange County
("CICCAR Loan Documents").
Orange County agrees to enter into a subordination agreement, subordinating the lien, operation
and effect of the Orange County Loan Documents to the lien, operation and effect of the
CICCAR Loan Documents upon closing of the CICCAR Loan.
IV. TIMELINESS
The Owner shall complete the Project within twelve (12) months from the date of this
Agreement. However, in the event of any alterations or additions or of circumstances beyond the
control of the Owner, which in the opinion of the Director of the County's Department of
Housing, Human Rights and Community Development will require additional time for
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completion of the Project, then in that case, the time of completion shall be extended by the
County Manager in writing for a period of time not to exceed six (6) months. Any further
extensions will require the approval of the Orange County Board of County Commissioners.
V. DURATION OF THE AGREEMENT
This Agreement will remain in effect for the Period of Affordability established below.
VI. AFFORDABILITY REQUIREMENTS
Owner agrees to lease the Project dwelling units to families whose income does not
exceed 60% of the area median income by family size, as determined by the U.S. Department of
Housing and Urban Development and as amended from time to time. Residential leases will not
exceed one year in term.
Each of the Project dwelling units must remain affordable for a period of ninety-nine
years. The Owner retains full responsibility for compliance with the affordability requirement
for each of the Project dwelling units, unless affordability restrictions are terminated due to the
sale of the Property to anon-qualified buyer in which event the Resale Provisions of this Section
of this Agreement pertain. The Owner shall assure compliance with affordability of each of the
Project dwelling units as provided in the Declaration on the Property. This Declaration shall
constitute and remain a lien on the Property during the period of affordability.
It is further the responsibility of the Owner to rerecord the Declaration of Restrictive
Covenants periodically and no less often than one day less than every 30 years from the date
hereof for the purpose of renewing the rights of first refusal in the Property or portion thereof
including any leasehold interest in the Property or portion thereof. Orange County retains the
right to, periodically and every 30 years after the first recording of the Declaration of Restrictive
Covenants on the Property to register, with the Register of Deeds of Orange County, a notice of
preservation of the Restrictive Covenants on the Property as provided in North Carolina General
Statute § 47B-4 or any comparable preservation law in effect at the time of the recording of the
notice of preservation. It is the intent of this Agreement that the 99 year duration of this
Declaration of Restrictive Covenants be accomplished and that any future owner of the Property,
Owner, and Orange County will do what is necessary to ensure that the same is not extinguished
by N.C. Gen. Stat. § 41-29 or any comparable law purporting to extinguish, by the passage of
time, preemptive rights in the Property and by the Real Property Marketable Title Act or any
comparable law purporting to extinguish, by the passage of time, non possessory interests in real
property. Any future owner, Owner and Orange County agree to do what each must do to
accomplish the 99-year duration of this Declaration of Restrictive Covenants.
Resale Provisions
The Owner shall assure compliance with affordability of each of the Project dwelling units
through the Declaration of Restrictive Covenants. The Declaration of Restrictive Covenants
shall include at least the following elements in their resale provisions for the Improvements:
If Owner no longer uses the Property as rental property or is unable to continue ownership, then
the Owner must sell, transfer, or otherwise dispose of its interest in the Property only to an
agency with similar interest in affordable housing and serve families with incomes not exceeding
80% of the area median household income by family size, as determined by the U.S. Department
of Housing and Urban Development at the time of the transfer. The non-profit fund, foundation,
or corporation of like purposes must have established its tax-exempt status under Section SUl (c)
(3) of the Internal Revenue Code.
However, if the Property is sold, transferred, or otherwise disposed of to other than an agency
with similar interest in affordable housing during the term of affordability, the Right of First
Refusal provision of the County's Long-Term Housing Affordability Policy must be followed
and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of
the original first mortgage and (3) the unpaid principal amount of the initial County contribution
and any other initial government contribution secured by a deferred payment promissory note
and deed of trust) or "equity" will be divided 50/50 by the seller of the Property and the County.
The resale provision shall remain in effect for the full affordability period - 99 years.
VII. OWNER PERFORMANCE UNDER THIS AGREEMENT
Owner agrees and authorizes the County to conduct on-site reviews, examine client_ and
contractor records, client applications and to conduct any other procedures or practices to assure
compliance with these provisions.
Owner agrees to not violate any State or Federal laws, rules or regulations regarding a direct or
indirect illegal interest on the part of any employee or elected official of the Owner in the Project
or payments made pursuant to this Agreement.
Owner agrees that to the best of its knowledge, neither the Project nor the funds provided
therefore, and the personnel employed in the administration of the program shall be in any way
or to any extent engaged in the conduct of political activities in contravention of Chapter 15 of
Title 5, United States Code, referred to as the Hatch Act.
Owner shall adopt the audit requirements of the Office of Management and Budget (hereinafter
"OMB") Circular A-110, "Grants and Agreements with Institutions of Higher Education,
Hospitals, and Other Nonprofit Organizations," and Circular A-122, "Cost Principles for
Nonprofit Organizations," and OMB Circular A-133, "Audits of Institutions of Higher Education
and Other Non-Profit Institutions." Owner shall submit to the County copy of said audit report.
Owner shall permit the authorized representatives of the County, HUD and the Comptroller
General of the United States to inspect and audit all data and reports of the Owner relating to its
performance under the Agreement.
The County shall provide, upon request, copies of all laws, regulations and orders cited in this
Agreement.
Owner and County shall at all times observe and comply with Title 24 CFR Part 92 and all
applicable laws, ordinances or regulations of the Federal, State, County, and local government,
which may in any manner affect the performance of this Agreement, and Owner shall perform all
acts with responsibility to the County in the same manner as the County is required to perform
all acts with responsibility to the Federal government.
Owner hereby assures and certifies that it will comply with the regulations, policies, guidelines
and requirements with respect to the acceptance and use of Bond funds in accordance with the
policies of the County. Also, Owner certifies with respect to the Project that:
1. The Project will be conducted and administered in compliance with:
a
Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352, 42 U.S.C. Sec 2000d et seq.) and
implementing regulations issued at 24 CFR Part I;
Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-208, 42 U.S.C. Sec 2000d at seq.), as
amended; and that the Owner will administer all programs and activities related to housing and
community development in a manner to affirmatively further fair housing;
Section 109 of the Housing and Community Development Act of 1974, as amended; and the
regulations issued pursuant hereto;
Section 3 of the Housing and Urban Development Act of 1968, as amended;
Executive Order 11246-Equal Opportunity, as amended by Executive Orders 11375 and 12086,
and implementing regulations issued at 41 CFR Chapter 60;
Executive Order 11063-Equal Opportunity in Housing, as amended by Executive Order 12259,
and implementing regulations at 24 CFR Part 107;
Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing
regulations when published in effect;
The Age Discrimination Act of 1975 (Pub. L. 94135), as amended, and implementing regulations
when published for effect;
The Fair Housing Act (42 U.S.C. 3601-20);
VIII. ADMINISTRATION AND REPORTING REQUIREMENTS
1. Owner shall submit to the County a quarterly Progress Report no later than the fifth day
of the months of January, April; July; October until the activity has been reported completed.
2. After completion, the Owner is responsible for verifying the income of prospective
tenants and maintaining eligibility data. Owner shall maintain tenant files as part of its Books
and Records as required and for the period of time required by Section VI of this Agreement.
The Owner must provide the County an initial occupancy report verifying the income eligibility
of all tenants at the time of initial lease-up. The Owner must then furnish the County with an
annual report on the Project dwelling units by July 31 of each year thereafter certifying that all
tenants earn less than 60% of the area median income by family size, as determined by the US
Department of Housing and Urban Development and as amended from time to time. ..
Miscellaneous Provisions
a. Termination of Agreement. The full benefit of the Project will be realized only
after the completion of the affordability periods for all Project dwelling units. It is the County's
intention that the full public benefit of the Project shall be completed under the auspices of the
Owner for the assisted units as follows:
In the event that the Owner is unable to proceed with any aspect of the Project in a timely
manner, and County and the Owner determine that reasonable extension(s) for completion will
not remedy the situation, then the Owner will retain responsibility for requirements for any
dwelling units assisted and County will make no further payments to the Owner.
In the event that the Owner, prior to the contract completion date, is unable to continue to
function due to, but, not limited to, dissolution or insolvency of the organization, its filing a
petition for bankruptcy or similar proceedings, or is adjudged bankrupt or fails to comply or
perform with provisions of this agreement, then the Owner shall, upon the County's request,
convey to the County the Property assisted with Bond funds. Conveyance shall be at the sole
discretion of County and on a Project dwelling unit by Project dwelling unit basis.
Conveyance shall be on the terms set forth herein:
Conveyance shall occur within thirty (30) days of County and the Owner's agreement of the
Owner's inability to continue as a viable organization. The Owner shall convey the Property to
the County by general warranty deed, free and clear of all liens and encumbrances of record
except those which create a beneficial interest in County (Declaration of Restrictive Covenants
and Deed of Trust).
e. Default, Remedies. This Agreement may be terminated by anon-defaulting
party upon an event of default hereunder, after written notice thereof and thirty (30) days grace
period in which the defaulting party may act to cure. As used herein, the term "an event of
default" shall mean and refer to a failure or act of omission by either party with respect to any
undertaking, obligation, covenant or condition as set forth in this Agreement. With respect to
any event of default, the non-defaulting party may exercise any right available to it at law or in
equity with respect to such default.
f. Books and Records.. The Owner shall maintain records of its loan requirements
under this contract for a period of not less than the completion of the affordability periods for all
Project dwelling units.
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i. The Owner shall ensure access to records and financial statements, as necessary,
to provide effective monitoring and evaluation of project performance. Additionally, the Owner
shall submit a copy of its annual audit to the County.
ii. Upon reasonable advance notice, County or its authorized representatives may
from time to time inspect, audit, and make copies of any of the Owner records that relate to this
contract. If any audit by County discloses that payments to the Owner were in excess of the
amount to which the Owner was entitled under this contract, the Owner shall promptly pay to
County the amount of such excess. If the excess is greater than 1% of the contract amount, the
Owner shall also reimburse County its reasonable costs incurred in performing the audit.
iii. The Owner shall maintain files of all tenants, regardless of length of occupancy,
residing in assisted units. Documentation shall verify eligibility for federal assisted housing at
the point of initial tenancy and every subsequent year thereafter for the period of affordability.
Information maintained shall include: tenant income level; name of family members; ethnic data;
family type - e.g. female head of household; disability status; and monthly rent.
iv. The Owner shall maintain records verifying the affordability of the dwelling units.
g. Notices. Any Notice shall be in writing and shall be given by depositing the same
in the United States mail, post-paid and registered or certified, and addressed to the party to be
notified, with return-receipt requested, or by delivering the same in person to an officer or
principal of such party. Notice deposited in the mail in the manner here in above described shall
be effective upon mailing. For purposes of Notice, the addresses of the parties shall, unless
changed as hereinafter provided, be as follows:
To the County:
Orange County
c/o Housing,
Development
Human Rights and Community
Department
P.O. Box 8181
Hillsborough, NC 27278
ATTN: Director
ii. To the Owner: TBLF Eno Haven, LLC
c/o The Banks Law Firm, P.A.
4309 Emperor Boulevard
Winchester Place, Suite 225
Durham, NC 27703
Either the County or the Owner may change the person or address to which any future Notice
shall be given as herein provided.
h. No Assignment. No transfer or assignment of the interest of the Owner in this
Agreement shall occur without the prior written consent of the County; neither may the Owner
assign this Agreement without the prior written consent of County.
i. Conflict of Interest. The Owner shall be aware of and observe the requirements
of the Orange County Affordable Housing Bond Program which provides that no member of the
Orange County Board of Commissioners shall be admitted to any share or part of this Agreement
or to any benefit to arise from the same. The Owner shall also be aware of and observe the
requirements which states that no member, officer, or employee of Orange County or its
designees or agents, no member of the governing body of the locality who exercised any
functions or responsibilities with respect to the program during his/her tenure or for one year
thereafter, shall have any private interest, direct or indirect, in this contract or any subcontract, or
the proceeds thereof, for work to be performed in connection with the program assisted under the
agreement.
j. Binding Effect. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns.
k. Indemnification. To the extent legally possible, the Owner shall indemnify and
hold County, its officers, agents, and employees, harmless from and against any and all claims,
actions, liabilities, costs, including attorney fees and other costs of defense, arising out of or in
any way related to any act or failure to act by the Owner, its employees, agents, officers, and
contractors in connection with this contract. In the event any such action or claim is brought
against County, the Owner shall, upon County's tender, defend the same at the Owner's sole cost
and expense, promptly satisfy any judgment adverse to County or to County and the Owner
jointly, and reimburse County for any loss, cost, damage, or expense, including attorney fees
suffered or incurred by County.
1. Subcontracting. The Owner shall not subcontract work under this Agreement, in
whole or in part, without the County's prior written approval. The Owner shall require any
approved subcontractor to agree, as to the portion subcontracted, to comply with all applicable
federal, state, and local laws, rules, ordinances, and regulations at all times and in the
performance of the work and to comply with all applicable obligations of the Owner specified in
this contract. Notwithstanding County's approval of a subcontractor, the Owner shall remain
obligated for full performance of this contract and County shall incur no obligation to any
subcontractor the Owner shall indemnify, defend, and hold County harmless from all claims of
its contractors.
m. No Joint Venture or Agency. The County and the Owner each agree and
acknowledge that nothing contained herein or otherwise, including, without limitation, any act of
the County or the Owner under this Agreement, shall be deemed or construed to create any
relationship of joint venture, partnership or agency between the parties.
n. Effect of Waiver or Forbearance. No failure by the County to insist upon the
strict performance of any term or condition of this Agreement, or to exercise any right or remedy
upon the breach by the Owner of any of its obligations, agreements, or covenants hereunder,
8
shall be a waiver of such affected term or condition or of such breach; nor shall any forbearance
by the County to seek a remedy for any breach by the Owner be a waiver by the County of its
rights and remedies with respect to that or any other breach.
o. Governing Law. This Agreement shall be construed in accordance with and
governed by the laws of the State of North Carolina. Any litigation arising out of this Agreement
shall be brought in courts sitting in North Carolina, with venue in Orange County.
p. Severability. The provisions of this Agreement are independent of and separable
from each other, and no provision shall be affected or rendered invalid or unenforceable by the
fact that for any reason any other provision maybe invalid or unenforceable in whole or in part.
If any provision of this Agreement or the application thereof to any person or circumstances
shall, to any extent, be or become invalid or unenforceable, the remainder of this Agreement, or
the application of such provision to persons or circumstances other than those as to which it is
held invalid or unenforceable, shall not be affected thereby, and each provision of this
Agreement shall be valid and be enforced to the fullest extent permitted by law. The County and
The Owner agree to substitute for such provision of this Agreement or the application thereof
determined to be invalid or unenforceable, such other provision as most closely approximates, in
a lawful manner, such invalid, illegal or unenforceable provision. If the County and the Owner
cannot agree, they shall apply to a court of competent jurisdiction to substitute such provision as
the court deems reasonable and judicially valid, legal and enforceable. Such provision
determined by the court shall automatically be deemed part of this Agreement ab initio.
q. Equal Opportunity. The Owner shall not discriminate against any employee or
applicant for employment because of race, color, religion, sex, national origin, political
affiliation or belief, age, handicap, or familial status in the implementation of the Project.
r. Headings. Headings are for convenience only and shall not be used to interpret or
construe its provision.
s. Gender; Singular and Plural. As used herein, the neuter gender includes the
feminine and masculine. The masculine includes the feminine and neuter, and the feminine
includes the masculine and neuter and each includes a corporation, partnership or other legal
entity when the context so requires. The singular number includes the plural and vice versa,
whenever the context so requires.
t. Recording. The parties hereto agree that upon notice to the other and at its own
cost and expense, a party may record this Agreement in the Office of Register of Deeds for
Orange County.
u. Compliance with Laws. To the extent applicable, each party hereto agrees to
comply with all laws, ordinances and regulations affecting the Property from and after the date
hereof. Without limiting the generality of the foregoing, the Owner shall comply with all
federal, state and local laws, regulations and ordinances applicable to the expenditure of funds
provided by the County, to purchase and develop the Property.
v. Publicity; Signage. The Owner agrees to provide such publicity with respect to
the County's participation in the development of the Property as the County shall reasonably
require. Any Signage at the Property shall acknowledge the County's role and contribution.
w. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which together shall constitute one and the
same instrument.
x. No Third Party Rights. The parties hereto covenant and agree that nothing
contained in this Agreement or any act by the County or the Owner shall be deemed or construed
by the parties or any third party to create any relationship of third party beneficiary, including
third party principal or agent, or to create any right, claim or cause of action against the County,
the Owner or any of their respective officers, agents or employees by any third party.
y. Performance of Government Functions. Notwithstanding anything in this
Agreement which maybe to the contrary, nothing contained in this Agreement shall in any way
stop, limit or impair the County from exercising or performing any regulatory, policing or
governmental powers or functions with respect to the Property including, without limitation,
inspection of the Property in the performance of such functions.
z. Duration of Agreement. This Agreement shall be effective on the date of
execution and shall remain in effect during the period of affordability required by the recorded
Declaration of Restrictive Covenants.
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IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have set their hands
and seals on the day and year first above written.
ORANGE COUNTY, NORTH CAROLINA
Fr i n, r., o ty Manager
ATTEST:
Donna Baker
Clerk to the Board of Commissioners
Ap r ved to form and legality
ette ore, Staf Attorney
This document has been preaudited in accordance with the N.C. Local Government and Fiscal
Crol Act.
Un~/-YC.v ~, ~~ ,Clarence Grier, Finance Director
TBLF ENO HAVEN, LLC
A North Carolina limited liability company
By: TBLF, LLC
A North Carolina limited liability com y, its
Managing Member
By:
)RTH CAROLINA
~ ~ COUNTY
Sole Member and Manager
~ououu~rC o~ .
~o`°° C3. LQ I~
,,~~.`~yP;.••••.~~~ I ~ertify that (C~ C~~S personally appeared before me this day, each
,t~. ~p~i~o ng to me that he or she signed the foregoing document, as Manager on behalf of a
v ~ limited ?;ab~ity company.
~ i Comm. Exp. 7f31/2012 • ~
~o ~oA~ `G ~~tuess my hand and notarial seal, this the 1~~ day of ~(C~ 20 f~.
s'G .~ B L ~ ~~.
`'~w~rsC~aea~~`` { YI / Y~4' ~i
My commission expires:
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EXHIBIT B
Scope of Services
Services to be provided are in accordance with the January 28, 2008 Orange County Affordable
Housing Bond Application as amended on May 2, 2009 from The Banks Law Firm, P.A..
Affordable Housing Bond funds will be used to construct a 76 unit apartment complex for low-
income elderly/disabled households. Specifically, the apartment schedule is as follows:
44 One Bedroom units with rents ranging from $395 to $640
32 Two Bedroom units with rents ranging from $469 to $769
These rents will be affordable to families earning less than 60% of area median income at the
time of initial tenancy.
All construction will be completed in compliance with applicable state and local building codes
and ordinances.
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~xl~ b. f ~
ENO HAVEN
DEVELOPMENT BUDG ET
05.10.10
NCHFA B_ B&T Revised
Sources:
CICCAR Loan 1,700,000 1,700,000 1,70Q000
RPP Loan 500,000 500,000 500,000
Orange County Loan 1,000,000 1,000,000 1,000,000
State Tax Credit Loan 422,903 422,903 422,903
Exchange Loan 5,272,625 5,272,625 .5,272,625
Total Sources 8,895,528 8,895,528 8,895,528
Uses:
On-Site Improvements 820,000 820,000 820,000
Construction of New Buildings 4,000,000 4,000,000 4,000,000
General Requirements 289,000 289,000 289,000
Contractor Overhead 102,000 102,000 102,000
Contractor Profit 408,500 408,500 408,500
Construction Contingenty 168,500 168,500 217,224
Architect's Fee -Design 142,600 142,600 134,638
Architect's Fee -Inspection 30,000 30,000 30,000
Engineering 50,000 50,000 65,000
Construction Loan Orig. Fee 50,000 39,545 41,545
Construction Loan Interest 215,000 216,000 130,000
Construction Period Taxes 65,000 65,000 65,000
Water, Sewer, & Impact Fees 107,920 107,920 107,920
Survey 30,000 30,000 30,000
Property Appraisal 6,000 6,000 5,250
Environmental Report 4,000 4,000 2,200
Market Study 6,300 6,300 2,000
Permanent Loan Orig. Fee 34,500 34,500 34,500
Title and Recording 5,000 5,000 10,727
Real Estate Attorney 25,000 25,000 25,000
Other Attorney's Fees 20,000 22,455 30,000
Tax CreditAppiicationFees 61,564 61,564 66,364
Cost Certification/Accounting 12,000 12,000 12,000 .
Tax Credit Monitoring Fee 53,200 53,200 53,200
Furnishings and Equipment 40,000 40,000 40,000
Developer's Fee 798,000 798,000 798,000
Rent Up Expenses 34,200 34,200 34,200
Off-Site Infrastructure 20,000 20,000 20,000
Rent Up Reserve 22,800 22,800 22,800
Operating Reserve 223,444 223,444 229,703
Hazard Insurance 5,857
BB&T Inspection Fees 4,900
Total Development Cost 7,845,528 7,837,528 7,837,528
Land Cast 1,050,000 1,058,000 1,058,000
Total Replacement Cost 8,895,528 8,895,528 8,895,528
Notes on Changes:
Construction Contingency: The amount is the net result of all other budget changes.
Approved $131,969.02 in change orders through CO#3, net of value engineering changes.
Architect's Fee -Design: Reduced per the actual cost.
Engineering: Increased to deal with rock and soil issues.
Constructidn Loan Orig. Fee: Increased per the actual cost.
Construction Loan Interest: Decreased based upon experience with the Exchange Loan. Projects a permanent loan closing N
Conservatively projects permanent loan dosing November 30, 2011.
Prope Appraisal: Decreased per the actual cost.
Environmental Report: Decreased per the actual cast.
Market Study: Decreased per the actual cost.
Title and Recording: Increased per the actual cost.
Other Attorney's Fees: Increased per the actual cost and to pursue a waiver of impact fees.
Tax Credit Application Fees: Increased per the actual cost.
Operating Reserve: Increased per the requirements of CICCAR
Hazard Insurance: Not originally budgeted.
BB&T Inspection Fees: Not originally budgeted.
on Value
Attic R 38 Insulation Credit from CO#1: Credit of $9,349.00
Rock removal credit from CO#2: $5,800.00
Elimination of pipe insulation above and beyond code requirements: Credit of $35,000.00
Elimination of brick per VE suggestions 2 & 6: Credit of $5,359.26
Change of board and batten to vinyl: Credit of $8,500.00
Gucrent Total = S64.008.26
Construction Period Draw Schedule, Including Permanent Takeout
Q
A B C D E F G H i J K L M
1 Month # 1 2 3 4 5 6 7 8 I 9
2 Month Se Oc# Nov Dec Jan Feb Mar Aril Ma
3 Deveio went Uses
4 Total Deveio went Costs 8 895,528 I
5 Hard & Soft Costs $8,115,225 $1 132,928 $0 I $295,278 $143 701 $11,291 $] ] 1,821 $100 508 $20S 692 $361 282.5$
8 Reserves O eratin Rent U $252,503 I
7 Deveio er Fee -distributed to deveio er $397,800 $28 600 I
8 Deveio er Fee -restricted tb BB&T acct $400,200 $131 000 I J I I
9 Construction Ioan Interest $]30,000 $3,808 $2 182 $15 $0 $2 0]5 $390 $580 $1,282
10 Monthl draw amounts $1,132,928 I $163,408- $297 460 $143,716 $] 1 91 $] 13 836 $100 898 $206 273 $362,564.39
11 Fundin Sources
12 Exchan a Ioan amount $5,272,625 1,296 568 $0.00 $297,460 $143,716 $0 $125,128 $100 898 $206 2'72.70
13 Oran a Coun loan $1,000,000 I
14 NC STC refund Ioan $422,903 I I
15 BB&T Construction Loan $1,132,928 $163,408 I $297 460 $143 7]b $I1 291 $113 836 $]00,898 $206,273 $362,564
1ti BB&T Construction Loan Accruin Interest $1 132 928 $163,405 $297,460 $]43,716 $11 91 $113 836 1 $100,898 $206,273 $362,564
17 I I I I
1s
19 Month # 10 II I 12 13 14 15 16-21 22-24
20 Month June Jut Au Se Oct Nov Dec Jan Check
21 Deveio went Uses I
22 Total Deveio ment Costs $8,895 528
23 Hard & Soft Costs $8,115,225 $359,309 $636,343 $685 978 $814,2] 8 $814,218 $814,2] 8 $814 218 $814 218 $8 l 15 225
24 Reserves eratin Rent U $25 503 22 800 229,703 $252 503
25
26 Deveio er Fee -distributed to deveio
Deveio er Fee -restricted to BB8cT acct $397,800
$400,200 50000
269 200 $78,600
$400 200
27 Construction loan Interest $130000 $1,940 { $2 703 $3,516 $2,873 $3 405 $3,407 $0 $10 220 $38 336
28 Monthl draw amounts $361249 $639,046 $689,494 $817 09l 817 623 $840 425 $1 133,418 $1,054,141
29 Fundin Sources I
30 Exchan a award amount $5 272,625 $362 564 361,249 639 046 $689,494 $817091 $233,137 SS 72 625
31
32
33
34 a Coun loan $1 000,000
NC STC refund loan $422,903
BB&T Construction Loan I
BB&T Construction Loan Accruin Interest $607,288 392 712
$422,903
$361249 $639046 $689 494 $817,09] $817,623 $0 $317,803
$361 249 $639 046 $689 494 $817,091 $817,623 $0 $317 803
$] 054, i 41
$1371 945 51,000,000
$422,903
$7 228,824
35 I
36
37 Notes & Assum lions
38 Construction loan takeout breakdown Based u on deveio went bud et revised as of Ma 2010.
39 CICCAR Ioan $1 700,000 Notice to roceed with construction was 'ven October 27 2009.
~
40 NCHFA RPP Ioan $500 000 BB&.T Construction Loan is u to $5 272,625 at an one time and u to $8 600 000 in the
e.
41 Total $2,200 000 Exchan a Loan is used to a down the BB&T Construction Loan
42 Constn~ction loan outstandin balance $1,371,945 Oran a Coun and State Tax Credit Permanent Loans will also a down BB&T Construdaon Loan.
43 Variance $828,055 CICCAR and NCHFA permanent loans will fully pay off outstanding balance of BB&T Construction Loan.
44
45
46
47