HomeMy WebLinkAbout1996 NS Project Homestart Agreement 1
IMPORTANT NOTICE: The North Carolina Housing Finance Agency makes loans
under the Special Needs Housing Demonstration Program on a competitive basis
based upon the information submitted in the Borrower's Application.Any change
which occurs after the date of the Application, including the availability of
additional financing from sources other than the Special Needs Housing
A self-supporting Demonstration Program, will result in the Agency re-evaluating the qualifications
public agency
of the Borrower for this loan program, and may result in a reduction of the loan
amount or the cancellation of this commitment.
A.Robert Kucab October 14, 1996
Executive Director
Ms. Rita Gray
Inter-Faith Council for Social Services, Inc.
PO Box 28066 207 Wilson Street
Raleigh,NC Chapel Hill, North Carolina 27514
27611.8066
Dear Ms. Gray:
3801 Lake Boone Trail Based on the application dated June 15. 1994 as revised and supplemented ("Application"),
Suite 200 and supporting information, the request by Inter-Faith Council for Social Services Inc.
Raleigh,NC ("Borrower") for a reservation of construction/permanent mortgage loan funds under the
27607-2926 Special Needs Housing Demonstration Program ("Program") for the new construction of
three buildings containing a total of fifteen units for a transitional housing facility serving
homeless families with children and women with children who are victims of domestic
TEL.919-781-6115 violence in Chapel Hill and Orange County, North Carolina has been approved by the
FAX.919-781-5623 North Carolina Housing Finance Agency ("Agency"). Subject to the conditions of this letter,
the Agency commits to fund a construction/permanent leasehold mortgage loan in the
maximum total amount of$150,000.00 (the "Loan").
I. Significant Loan Terms
1.1 The Loan shall be executed for the maximum amount of$150,000.00 and shall be
for a term through June 20. 2020, unless accellerated pursuant to its terms. The
Loan shall be secured by a Deed of Trust on the Borrower's leasehold interest in
3.497 acres on Homestead Road in Chapel Hill, North Carolina ("Project") and shall
be subject to the terms of a Regulatory Agreement. UCC fixture filings shall secure
all personal property and fixtures. The Deed of Trust and UCC fixture filing shall
be a first priority lien on the Borrower's leasehold interest in that certain
g roundlease between the Borrower and Orange County (the "County) dated June
30, 1995 (the "Lease") including the Borrower's interest in the three (3)buildings to
be constructed. The Borrower agrees that the new construction project funded by
the Loan will have three one-story buildings with fifteen residential units as well
as kitchens, bathrooms, resident staff bedrooms office and common areas, and that
all will receive Loan assistance.
1.2 The Loan shall be structured as follows: $150,000 for construction costs of the new
facilities until September 1. 1997 or the date a final Cost Certification is received
and approved by the Agency, whichever is later. When the final Cost Certification
is reviewed and approved by the Agency, and any adjustments to the amount or
terms of the mortgage have been made by the Agency, the construction loan will
roll over into a permanent loan, at which time the Conversion Date, as hereinafter
defined, occurs. If the final cost certification is not approved by November 1, 1997,
then the Loan will be in default.
1.3 "Conversion Date" as used herein shall mean that date when the construction loan
is converted into a permanent mortgage. Upon the Conversion Date and upon the
Borrower duly complying with all of the terms and conditions of the Commitment
Letter and with all other terms, covenants and conditions concerning the Loan
evidenced by the loan documents, the Promissory Note for the construction loan
shall be automatically converted to a permanent mortgage note and shall be
restated as a first leasehold mortgage not to exceed $150,000.00.
1.4 The maximum loan amount is set forth in item 1.1. The loan amount may be
reduced, or the commitment may be terminated, in accordance with the terms of
this Commitment Letter, prior to the Conversion Date, for any one of the following
reasons:
(a) Failure to provide the Cost Certification required by provision 4.3 of this
Commitment Letter;
(b) Lower costs of the improvements than set forth in Borrower's Application
and detailed in Exhibit A;
(c) Lower Total Replacement Cost than set forth in Borrower's Application and
detailed in Exhibit A;
(d) A change in interest rate, loan amount, or term of any financing sources
from the information contained in the Borrower's Application and detailed
in Exhibit A;
(e) A change in projected cash flow, resulting in a change in projected net
income from the information contained in Borrower's Application and
detailed in Exhibit A;
(f) A change in the sources or amounts of equity, including but not limited to a
change in general partner contribution, limited partner contribution, stock
purchase, or the purchase of any beneficial ownership interest in the
Borrower, from the information contained in Borrower's Application and
detailed in Exhibit A;
(g) Any change in any representation or information contained in the
Borrower's Application as detailed in Exhibit A relating to the financial
structure or beneficiary population of the Project; and
(h) Termination of the Lease or amendment to the Lease without the Agency's
prior written consent.
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1.5 The Loan shall be used only for the construction measures identified in
comprehensive plans, work write-ups and specifications which shall be submitted
by the Borrower to the Agency for review and approval prior to commencement of
construction activities. Funds for the construction of the Project will not be
released until the Agency has received and approved these final plans and
specifications (which must be submitted by Borrower to the Agency for review and
approval prior to contractor procurement and the commencement of work).
Construction payments will be made subject to provision 4.3 of this Commitment
and shall bear no interest, so long as the Borrower is not in default under the Note,
the Deed of Trust, the Regulatory Agreement, this Commitment, the Loan
Agreement, if any, and any other documents executed in connection with this Loan
(collectively referred to as the "Loan Documents").
1.6 If the Borrower maintains compliance with each and every term and condition of
the Loan Documents, then Borrower shall repay the Loan in a single lump sum
payment of the original principal balance of this Loan. Said lump sum shall be due
and payable at the end of the term of the Loan (the "Maturity Date"). Failure to
make such payment shall be a default under the terms of this Note. If at any time
prior to the end of the term of this Loan, the Borrower does not achieve and
maintain such compliance, then Borrower shall be in default of this Loan, and the
total outstanding balance existing at the time of such default shall be immediately
due and payable.,After default, the outstanding balance under the Promissory Note
shall accrue interest at the rate of ten percent (10%) per annum. Should the
Property's future use continue as originally proposed in the Application dated June
15, 1994, the Borrower may, at the time of the Maturity Date, reapply to the
Agency for refinancing of the principal balance of the Loan, provided compliance
with all terms of the Loan Documents will be maintained.
1.7 The Loan may be assumed only upon the prior written approval of the Agency. All
terms and conditions of the Loan Documents shall remain in effect for any
successor and any successor shall assume all duties and obligations of the
Borrower.
1.8 All leases and rents for units described in the Borrower's Application shall be
assigned to the Agency.
1.9 The County must execute an Estoppel and Modification Agreement acceptable to
the Agency setting forth, among other things:
(i) That the Lease is in full force and effect and that the Borrower is not in
default thereunder;
(ii) That the County will not amend the Lease without the Agency's prior
written consent;
(iii) That the County shall send any notice of default under the Lease by the
Borrower to the Agency, and shall not terminate the Lease because of such
default until the Agency has a reasonable time to cure the default;
(iv) If Borrower is in default under the Lease, the County will not terminate the
Lease so long as the Agency dilifently proceeds to cure the default or
foreclose its Leasehold Deed of Trust, and upon such foreclosure, the County
will accept the Agency as Lessee under the Lease.
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2. Period of Performance
2.1 The Agency requires that all other public and private sources of project financing
be unconditionally committed to the project before this Loan is closed. The written
commitments must be submitted to, and approved by, the Agency within thirty (30)
days from the date of this Commitment Letter, and prior to construction.
2.2 The Borrower agrees to proceed diligently with the construction of the Project
described in the Application. Construction shall begin no later than January 1,
1997. Failure to initiate construction under a valid building permit by this date
may result in termination of this Commitment Letter by the Agency.
2.3 A final certificate of occupancy shall be obtained for the project no later than
September 1, 1997. Failure to obtain the final certificate of occupancy by this date
shall be a default under the Loan Documents. The certificate of occupancy shall be
delivered to the Agency at least fifteen business days prior to the Conversion Date
or within 395 days of the date of the Promissory Note, whichever is earlier.
2.4 The Borrower shall notify the Agency in writing within five business days of any
occurrence which makes it unlikely that these dates can be met. Time is of the
essence with regard to all time periods and limitations set forth in this
Commitment. Extensions of time may be granted by the Agency at its sole
discretion.
3. Insurance Requirements
3.1 The Borrower shall cause the buildings on the project premises and all
improvements thereto, and the fixtures and articles of personal property financed
by the Loan to be insured against fire and other hazards customarily covered by
standard extended coverage endorsement. Such insurance shall be written by
companies and in forms satisfactory to the Agency. The Borrower shall assign and
deliver a policy or endorsement to the Agency within fifteen (15) days of the Loan
closing, and the Agency shall be named as mortgagee for the interest of the Loan.
The coverage shall be in an amount at least equal to the amount of the Loan and
shall be maintained continuously throughout the term of the Loan. If the project is
in a floodplain area then flood insurance will be required.
3.2 The Borrower shall obtain a leasehold mortgage title insurance policy in the
amount of the Loan. A binder or commitment shall be delivered to the Agency at
least fifteen business days prior to the closing for the Loan, and the Agency shall be
named as insured lender. The original policy shall be delivered to the Agency
within ten business days after closing the Loan. The title insurance coverage must
insure that the Deed of Trust to the Agency is a valid first priority lien against the
Borrower's Leasehold interest in the Project, and that the Project is subject only to
such general easements, unviolated restrictions, ad valorem taxes for the current
year and any other matters which are acceptable to the Agency.
3.3 The Borrower shall carry comprehensive liability insurance on an occurence basis
against claims for personal injury including, without limitation, bodily injury, death
or property damage occuring on, in, or about the premises and the adjoining streets,
sidewalks, and passageways, with respect to the operation of the Project in such
amounts as may reasonably be required by the Agency.
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3.4 During the course of any construction on the project, the Borrower shall carry, or
cause such other appropriate parties to carry, comprehensive general liability
insurance and workers' compensation insurance for all employees engaged in or
with respect to the premises in such amount as is satisfactory to the Agency.
4. Disbursement of Funds
4.1 Subject to the terms of this commitment letter, the Agency agrees to disburse to the
Borrower the Loan proceeds, in an amount not to exceed $150,000.00 (One Hundred_
Fifty Thousand Dollars) which may be used only for the project development costs
as set forth in the Application and detailed in Exhibit A. Loan funds will be
available for disbursement pursuant to the terms of this Section 4 immediately
after the Loan Documents have been executed and the original Deed of Trust and
Regulatory Agreement have been recorded and returned to the Agency, and all
restrictive conditions have been complied with or released by the Agency. Closing
will occur prior to initiation of construction of the Project, and the retention will be
paid upon the Conversion Date.
4.2 The proceeds of the Loan are to be used only for approved costs related to the
development of the Project, as outlined in the Application and detailed in Exhibit A
of this Commitment. These costs include new construction costs only.
4.3 Each request for disbursement for work performed under the general construction
contract shall be accompanied by (i) a written request made by the Borrower
stating the amount of the request and (ii) an Architect's Certificate for Payment
completed and signed by the project architect, the general contractor, and the
Borrower. Each request for disbursement to pay for soft costs directly involved in
the construction and/or development of the Project shall be accompanied by
appropriate invoices or by receipts showing the amounts of payments made for
these expenses. The Agency reserves the right to have all requests for
disbursements and all supporting documentation and evidence to be reviewed by an
independent architect, engineer, building inspector, contractor, or other such
individual whose advice and guidance the Agency decides to seek and rely upon, to
insure that all requests for disbursements are proper and complete and that quality
and quantity of the work performed and/or materials supplied justify the request.
Any review of this nature shall be paid for by the Borrower as an expense
associated with obtaining the Loan.
4.4 All disbursements must be cost certified at the end of construction by an
independent architect, engineer, building inspector, contractor, certified public
accountant or such other individual whose advice and guidance the Agency decides
to seek and rely upon, to insure that all requests for disbursements are proper and
complete and that the quality and quantity of the work and/or materials justifies
the request. The certification shall state that the construction improvements
identified in the Application have been properly completed to Agency and Borrower
plans and specifications and have resulted in the costs projected in the Application.
Total Project costs must also be certified. Any review of this nature shall be paid
for by the Borrower as an expense associated with obtaining the Loan. The Final
Cost Certification shall be submitted to the Agency within ninety days of the
receipt of the Certificate of Occupancy.
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4.5 The Agency will reduce the amount of the Loan commitment if the cost certification
states that the cost of Eligible Improvements are lower than identified in the
Application or for any other reason set forth in Paragraph 1.4 of this Commitment.
Any changes in the construction measures, materials and installation techniques
must have the prior written approval of the Agency. The Agency may also reduce
the amount of the Loan if actual construction costs of the project are less than the
costs identified in the Application or if the number of completed housing units will
be fewer than identified in the Application.
4.6 All work shall be completed in compliance with legal requirements and restrictions,
and the Borrower will keep its interest in the Project and improvements free from
all liens for services, labor and materials throughout the term of the Deed of Trust.
The Agency shall require satisfactory evidence of the payment of all debts owed to
contractors, surveyors, architects, engineers, materialmen and the like for labor
done or professional services rendered, or material furnished under any contract
with respect to the Project. Moreover, the Agency shall have the right, but shall not
be obligated, to disburse the proceeds of the Loan directly to any contractor,
subcontractor, materialman, surveyor, engineer, architect or other person
performing labor or services or delivering materials to the property which labor,
services, or materials could form the basis for a lien against the Project.
4.7 Disbursements for payment to the general contractor for stored materials shall be
permitted only if such materials have been delivered to and stored on the Project
site or such materials have been stored in a local bonded warehouse; provided that
the Agency shall have the right to limit aggregate amounts of disbursements for
stored materials. The Agency will require a security agreement and Uniform
Commercial Code financing statements specifically covering such materials.
4.8 The Agency will retain ten percent of the amount of the Loan during construction,
such retainage being subtracted from each disbursement request. This retainage
shall be disbursed to the Borrower upon the Conversion Date.
5. Conditions Precedent to Disbursement
The Agency's obligation to disburse the Loan shall be subject to the satisfaction of the
following conditions.
5.1 Each of the representations and warranties contained in the Application and in this
Commitment Letter shall continue to be true and shall not have been breached.
5.2 The Agency shall preapprove all procurement and contracting procedures, and the
Borrower agrees to submit proposed procurement and contracting procedures to the
Agency within 60 days from the date of acceptance of this Commitment Letter.
5.3 All work performed, and materials and equipment furnished shall be in accordance
with the work write-up and specifications for the work (as approved by the Agency
prior to commencement of construction activities), and all work shall have been
properly performed in a workmanlike manner.
5.4 No event of noncompliance, as defined in this commitment letter, shall have
occurred and continue to exist.
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5.5 Prior to disbursement, the Borrower shall furnish the Agency evidence of leasehold
mortgage title insurance as discussed in section 3.2. The Borrower shall also
provide a survey prepared by a surveyor, satisfactory to the Agency showing the
boundaries of the Property, the location of any existing or proposed improvements,
the courses and distances to and names of the nearest intersecting public streets or
roads, the dimension and location of any and all set back lines, building lines, or
side lines, if any, and all streets, roads, rights-of-way, easements, or similar
matters affecting the Property. Prior to final disbursement, Borrower shall submit
an As-Built survey conforming to the Agency's requirements showing, among other
things, all the improvements constructed with the Loan proceeds.
5.6 Prior to disbursement, the Borrower shall furnish the Agency the executed original
Promissory Note and the original Deed of Trust and Regulatory Agreement
evidencing proper recordation at the Orange County Register of Deeds Office. The
Borrower shall also furnish a Title Insurance policy. Certificates of Insurance
evidencing property and construction insurance meeting the requirements of
Sections 3.1 and 3.4 of this Commitment Letter must be submitted to the Agency
by the Borrower prior to any disbursement of construction funds.
6. Procurement, Financial Management, and Audit
6.1 The Borrower shall establish procurement and contracting procedures which ensure
that procurement and contracting actions will be properly managed. Written
contracts shall be used for all services paid for by this Loan. The Agency shall
preapprove all procurement and contracting procedures, and the Borrower agree to
submit its proposed procurement and contracting procedures to the Agency within
thirty(30) days from the date of acceptance of this Commitment Letter.
6.2 Annually, the Borrower shall use its own resources and procedures to arrange for a
financial audit by an independent certified public accountant. The audit must
comply with the requirements of General Statute 143-6.1, and must be filed with
the State Auditor and with the Joint Legislative Commission in each fiscal year
that Program funds are received. Audit reports must also be submitted to the
Agency within 90 days from the end of the Borrower's fiscal year. In addition to the
standards prescribed by the State Auditor, the Borrower must, if applicable, secure
audits that meet the standards for financial and compliance audits as set forth in
OMB Circular A-128 ("Audits of State and Local Governments") or OMB Circular
A-133 ("Audits of Institutions of Higher Education and Other Nonprofit
Institutions"). Also, a corrective action plan for any audit findings and recommend-
ations in connection with an audit shall be submitted with the audit report.
6.3 Before funds may be disbursed, each private, nonprofit Borrower must be in
compliance with General Statute 143-6.1. This statute requires that the Borrower
submit to the Agency notarized copies of its policy addressing conflicts of interest
that may arise involving any member of the Borrower's management, board of
directors or other governing body. The policy shall address situations where any of
these individuals or their families may directly or indirectly benefit, except in their
official capacity, from the disbursement of State funds, and shall include actions to
be taken to avoid conflicts of interest or the appearance of impropriety.
6.4 The Borrower agrees to establish an account in its own general ledger for funds
received under this commitment and funding agreement and the funds shall be
accounted for separately from amounts received from all other sources.
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6.5 The Borrower's financial management system shall provide for:
(a) Accurate, current, and complete disclosure of the financial results of the
Program in accordance with the reporting requirements;
(b) Records that identify adequately the source and application of funds for
activities supported by the Program;
(c) Effective control over and accountability for all funds advanced under this
commitment and funding agreement;
(d) Comparison of actual outlays with budgeted amounts for the Program;
(e) Accounting records that are supported by source documentation;
(f) Systematic methods to ensure timely and appropriate resolution of audit
findings and recommendations.
6.6 The Borrower shall maintain financial records, supporting documents, statistical
records and all other records pertinent to this Project for a period of three years
from the Conversion Date or from the time this commitment and funding
agreement is otherwise completed or terminated. If any litigation, claim or audit
starts before the expiration of the three year period, the records shall be retained
until all litigation, claims, or audit findings involving the records have been
resolved.
7. Non-Displacement Policy
7.1 The Borrower may not permanently displace residents occupying the project site,
unless relocation was disclosed in the Application and approved by the Agency.
7.2 Occupants may be displaced temporarily only if the Borrower submits to the
Agency a written plan specifying the relocation assistance available, and the
Agency has approved the plan in writing.
8. Representations, Warranties and Covenants
8.1 The Borrower must be duly qualified to do business in the State of North Carolina
as a nonprofit organization recognized by the Internal Revenue Service under
section 501(c)(3) of the Internal Revenue Code, and has the power and authority to
execute and perform all the undertakings of this Commitment Letter and the
approved project.
8.2 This Commitment Letter shall be governed and construed in accordance with the
laws of the State of North Carolina.
8.3 There is no action, suit or proceeding at law or in equity or by or before any
governmental instrumentality or agency, or to the knowledge of the Borrower,
threatened against or affecting it, which, if adversely determined, would materially
impair its right or ability to carry on business as now conducted, or as
contemplated under this commitment, or that would materially adversely affect its
financial condition.
8.4 The Borrower shall not sell, assign, transfer or otherwise convey any of its interests
under this commitment. The Borrower shall not transfer or contract to transfer any
of its general partnership interest or the controlling corporate stock, as the case
may be, during the period of this commitment.
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8.5 The Borrower has not executed and will not execute any agreements with
provisions contradictory to, or in opposition to, the provisions of this Commitment.
8.6 The Borrower will hold harmless and indemnify the Agency from any and all
claims, including reasonable attorneys fees, for injury or damage to persons or
property which may arise in connection with work performed with the Loan
provided under this Commitment.
8.7 The Borrower agrees that the Project will have fifteen residential units, and that
all fifteen units will receive Loan assistance. Ten of the units receiving Loan
assistance shall be reserved for, and occupied by, homeless families having incomes
less than or equal to 60% of the Orange County median income. Five of the units
receiving Loan assistance shall be reserved for, and occupied by, women with
children who are victims of domestic violence having incomes less than or equal to
60% of the Orange County median income. All fifteen (15) units shall be reserved
for individuals who are eligible for services provided by the Borrower, as described
in the Application.
8.8 Maximum monthly rents shall not exceed 30% of the beneficiary household's gross
monthly income. The Borrower agrees to report to the Agency annually on the
income levels and demographic information of the Project beneficiaries, and average
monthly rent and utility expense for each unit.
8.9 The Borrower must comply with the program participant protections as detailed in
the Application, and approved by the Agency. At a minimum, in the event of
eviction and/or termination of services, the Borrower must provide: (1) written
notice to the participant which contains a clear statement of the reasons for
termination; (2) a review of the decision, in which the participant is given the
opportunity to present written or oral objections to a person other than the person
(or subordinate of such person) who made or approved the termination decision;
and (3) prompt written notice of the final decision to the participant.
8.10 Each new construction unit must meet all requirements of the current North
Carolina Building Code including energy-efficiency standards. Each rehabilitated
unit must meet the Agency's Energy Standards for Housing Rehabilitation
Programs.
8.11 The Borrower shall establish and maintain operating and rent-up reserve accounts.
All rental income gained from the Project that is not used for operating expenses
shall be placed into these reserve accounts.
8.12 The Borrower agrees to maintain the Project and the individual residential units
including fixtures, equipment and appliances and grounds in good repair and
condition and to provide decent, safe, and sanitary housing conditions during the
period of ownership.
9. Termination
This commitment may be terminated if any of the following occur:
9.1 Any of the items to be delivered are not delivered within the time and in the form
required by the Agency.
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9.2 Any representation made by the Borrower, in the Application or in this
Commitment, are changed or prove to be incorrect, untrue, misleading, or cannot be
performed or fulfilled. All representations, information, and conditions are material
for the purposes of the Agency making this commitment to the Borrower.
9.3 Any portion of the project premises has been taken by condemnation or eminent
domain or is subject to pending proceedings for such purpose.
9.4 The Borrower is in default under the terms of the Lease.
10. Publicity
10.1 The Borrower may publicize its participation in the Program and the conduct of
activities under this Agreement without prior review by the Agency, provided that
all communications contain the following language:
"This program was sponsored by the Interfaith Council for Social Services, Inc. with
funds provided by the North Carolina Housing Finance Agency." Copies of
publications or news releases shall be furnished to the Agency. Any signage at the
construction site must acknowledge the N.C. Housing Finance Agency as lender on
the Project.
11. Inspection and Access to Records
11.1 The Agency or its authorized representatives shall have the right to inspect the
Project for the purposes of determining if the terms and conditions of this
Agreement are being met throughout the Qualified Period, defined as the term of
the Deed of Trust.
11.2 The Agency, or its authorized representatives, shall have the right to inspect the
Borrower's books and records regarding the use of the Program Loan and to
determine the Borrower's compliance with the terms and conditions of the Loan
Documents.
12. Prohibited Activity
12.1 None of the funds provided under the Program shall be used for any partisan
political activity, or to further the election or defeat of any candidate for public
office.
12.2 There shall be no religious instruction conducted in connection with the
performance of this Commitment, and no religious influence shall be exerted in the
provision of housing and supportive services.
12.3 The Borrower will not discriminate against,any person employed in the
performance of this Commitment, or against any applicant for assistance, because
of race, sex, age, religion, creed, color, handicap, family status, or national origin.
The Borrower will ensure that applicants are processed and employees are treated
during employment, without regard to race, sex, age, religion, creed, color,
handicap, family status, or national origin.
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13. Expiration of Commitment
This Commitment and all of the Agency's obligations hereunder shall automatically expire
and terminate unless the Commitment is accepted by the Borrower and returned in
executed form to the Agency no later than thirty (30) days from the date of this letter.
Further, this commitment shall automatically expire and terminate unless the Loan closing
occurs no later than January 1, 1997.
14. Standards
14.1 Unlike a private commercial lender, the Agency is concerned not only with lending
issues such as the creditworthiness of the Borrower, and the security for its loan,
the Agency is also concerned with achieving certain public policy objectives in using
the limited funds available through the Housing Trust Fund. These public policy
objectives include:
1) assisting projects serving populations with special housing needs;
2) serving very low- and low-income households;
3) adding units to the emergency, transitional, and permanent housing stock
that will be affordable to homeless persons and those with special needs on
a long-term basis;
4) to provide matching funds for leveraging other public hosuing and service
programs; and
5) providing an equitable geographic distribution of Program funds between
urban and rural areas.
14.2 In determining how changes in information, representations, and circumstances
will affect this commitment, a combination of private commercial lending standards
and the public policy objectives will be applied in good faith by the Agency, the
Agency being solely and uniquely qualified to make these determinations. The
Borrower agrees that under no circumstances shall the Agency be liable to it for
consequential damages or any action predicated on tort as a result of this
Commitment or any change or termination of this Commitment.
[Signature Page Follows]
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Both the Borrower and the County must indicate acceptance by executing and returning to
the Agency the original of this letter. This must be received by the date stated above or the
Loan Commitment will automatically expire.
Sincerely,
NORTH CAROLINA HOUSING FINANCE AGENCY
By: (seal)
C. William Dowse
Title: Director of Program DAe/velooment
Date:_ I r� 110
ACCEPTED
Borrower Name: Inter-Faith Council for Social Services, Inc.
By: (seal)
Typed Name:
Title: President, Board of Directors
Date:
Orange County Commissioners
By: (seal)
Typed Name:
Title: Chair, Orange County Commissioners
Date:
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SPECIAL NEEDS HOUSING DEMONSTRATION 09-Oct-96
FACTSHEET
GENERAL INFORMATION
Project Type: Acquisition/New Construction No.of units: 15
Project Name: Proj.Homestart/Orange Batt.Women's Site Size: 3 acres
City. Chapel Hill Unit Type: Trans.Hsg.&Shelter
County. Orange Median Incom $46,800
SPNHDP Request $150,000
Applicant: Inter-Faith Council
Contractor: Keck Co.,Inc.
Selection: Competitive Bid/Negotiation
INCOME TARGETS
UNITS %MEDIAN UNITS %MEDIAN
0 0-30% 0 0
15 31-50'% 0 0
01 0 0 0
15 Total
PROJECT COSTS
Total Per Unit Percent Per So.Ft. (10,950 sq.ft.)
Construction $1,029,442 $68.629 84.4% $94.01
Improved Land $138,000 $9,200 11.3% $12.60
Building Acquisition $0 $0 0.0% $0.00
Soft Costs $52,500 $3,500 4.3% $4.79
Developer's Fee 50 $0 0.0% $0.00
Reserves/Escrows $0 $0 0.0%1 $0.00
Other $0 SO 0.0% $0.00
Total $1,219,942 581,329 100% $111.41
PERMANENT FINANCING SOURCES
Amount Rate Term Percent
First Mortgage $0 0.00 0 0.0%
SPNHDP Deferred $150,000 0.00 20 13.9%
SPNHDP Amortized $0 0.00 0 0.0%
LIHTC SO 0.00 0 0.0%
HUD SHP 5400,000 0.00 0 37.0%
Fundraising $531,942 1 0.001 0 49.2%
Local SO 0.001 0 0.0%
Other I Sol 0.0ol 0 0.0%
Total $1,081,942 100.0%
PROJECT OPERATIONS
Total Per Unit
Total Annual Oper.Expenses $297.1301 519,809
Total Annual Expenses w/o taxes $297,130 519.809
Total Annual Svcs.Expenses SO $0
Annual Management Fee Sol SO
UNIT SIZE.COST AND AFFORDABILITY
Affordable
No. No. Sq Monthly Rent per Total to
BR's DU's Ft Rent Sq Ft Utilities Per Mo %Median
0 BR 15 300 S2501 50.83 SO 1 $250 30.5%
1 BR 0 0 SO 50.00 SO SO 0.0%
2 BR 0 0 SO 50.00 SO I SO 0.0%
3 BR 0 0 SO 50.00 SO $0 0.0%
3 BR 0 0 SO $0.00 $0 SO 0.0%
4 BR 1 0 01 SO S0.00 I SO so",
Total 15
GRERAL INFORMATION 09-Oct-96
ply Pe.............................. Cgwsmon ew Cxinstruction
Project NMw..........................Proj.Homeatart/Orange Batt.Women's
City...........................................Chapel Hill
County......................................Orange -
Funding Requested.................. $150.000
Applicant...................................Inter-Faith Council
Contractor.................................To Be Determined
Selection Process.....................To Be Determined
Sits Stze....................................3 acres
Unit Types............................. Trans.Hag.&Shelter NCOMETA , UNITS %MEDIAN UNITS %MEDIAN
Median Income......................... s48.600 01 0-30%
Revision Data...........................AugUst4,1994
Project Biome Start,&Orange Co.Battered Women's Shelter,Homestead Road Chapel Hill
BR SIZE ## SO FT RENT UTU S MHC HH adj. Aff to %med
OBR 15 300 250 0 250 0.70 $10,000 305%
1 BR 0 0 0 0 0 0.70 $0 0.0%
2 BR 0 0 0 0 0 0.80 s0 0.0%
3 BR 0 0 0 0 0 0.90 $0 0.0%
4 BR 0 0 0 0 0 1.00 $0 0.0%
5 BR 0 0 0 0 0 1.08 $0 0.0%
TOTAL UNITS 15 TOTAL
••COSTS NOTIN BASIS
DEVELOPMENT BUDGLrr COST OP/SVCSBUDGET COST ISTYRREV
1.building purchase $0 1.advertise/market $0 $45,000
2.rehab $0 0.0% 2.management fee s0 $0
3.demolition s0 3.legal so $0
4.on-site improvs• $0 4.administrative $185,940 $0
5.new construction $996,448 5.utilities $21,780 $0
6.accessory building* s0 6.operating -$36,830 $0
7,general requirements- SO 7.elevator so $45,000
8.overhead* 0.0% $0 8.trash $800
9.profit* 0.0% s0 9.Decorating/Repa $0 1ST YEAR INCOME
10.contingency 0.0% $0 10.Maint/repair $8,380
11.cost certification $0 11.grounds $0
12.architect design $26395 12.RP taxes $0 Client/Program Fees $0
13.architect supervision 56,599 13.payroll taxes s0 ESGP s0
14.RE attorney 510,000 14.insurance $7,700 FEMA $0
15.consult/proc •• so 15. Services $35,700 HOPWA so
16.survey $20,000 $0 16.replace reserve $0 Ryan White So
17.construct insurance $0 17.TOTANNUAL $297,130 United Way $0
18.construct origination so 18.annual per unit $19,809 Local Govt s0
19.constr loan interest $0 Community Contrib. So
20.construction loan credit $0 Churches s0
21.taus $500 COST'SUMMARY Other Fundraising $297,130
22.bond premium•• so Other -Restricted Grants $0
23.credit report $0 113% landlimprovements $138,000 Other-Unrestricted Grants $0
24.perm loan orig fee "• so 84.4% construction $1,029,442
25.perm loan credit •" $0 43% soft costs $52,500 TOTAL $297,130
26.cost of issue •• so 0.0% developer fee s0
27.title/recording $0 0.0% reserves(eserms So
28.other attorney's fees $0 0.0% other $0
29.furnish/equip $20,000 0.0% BLDGACQ $0
30.appraisal So 100.0% TOTAL $1,219,942
31.market study $0 PER UNIT $81329
32.environmental $2,000
33. tax credit fees s0
34.renmp expenses•• so
35.organizational•• so SOURCES AMOUNT
36.tax opinion •• s0 0.0% 1st s0
37.developer fee 0.0% $0 13.9% SNHDP Defer $150,000
38.renmp reserve '• s0 0.0% SPNHDPAMORT So
39.operating reserve •• s0 0.0% LIHTC so
40.escrows •• SO 37.0% HUD SEP 5400,000
41.relocation SO 0.0% TRUST FUND $o
42. tax credit monitoring fee •' s0 0.0% Vol.Tune $0
43.Acquisition fee s0 49.2% Local fundraising $531,942
44.Other-Aoq.Fee s0 0.0% Contr.Mater. So
45.TOTAL DEVELOPMENT COST $1,081,942 100.0% TOTAL $1,081,942
46. less federal financinglhistoric so DIFFERENCE ($138,000 value of leased land
47.less org/tax op $0 TOTAL PER UNII $72129
48. less reserves s0
49. lets rentup expenses so
50. less consultiother so TOTAL SPNHDP $150,000
51. Less perm loan trig fee s0 PER UNIT $10.000
52. ten monitoring fee s0
53.TOTAL ELIGI13LEBASIS $1.081,942
54. times applicable% 100.00%
55.TOTAL QUALIFIED BASIS $1.081.942
56. times tax credit rate 837% -
57.CREDITS REQUESTED so $0 EQUITY @ S30
58. land value $138,000 =leased from Orange County
59.TOTAL DEVELOP'r¢NTCOST $1,219,942
60. COST/UNTT W/LAND $81329 -
•=included in tine item for construction.Cost details pending
e
EXHIBIT B
AFFORDABLE RENTS
PROJECT HOMESTART
Inter-Faith Council for Social Services, Inc.
CHAPEL HII.L,N.C.
The maximum monthly rents are identified in the Application or amendments thereto.
Rents must remain affordable to households consistent with the income targeting
represented in the Application. For assisted units to be considered affordable, the cost of
rent and utilities cannot exceed 30% of each tenant's gross household income. The Agency
will use a Regulatory Agreement and annual reporting requirements to ensure that income
targeting and affordability standards are met. Rents may be increased only after the
receipt of written permission from the Agency.
15