wellspring village

8/6/2019 Wellspring Village

1/25

Is project in Qualified Census Tract or Difficult to Develop Area?

New Construction/Adaptive Reuse:

Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project?

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

Will the project meet Energy Star standards as defined in Appendix B?

Does a community revitalization plan exist?

Target Population: Elderly (55)

Will the project be receiving project based federal rental assistance?

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

Indicate below any additional targeting for special populations proposed for this project:

Print Preview - Full Application

Tax Credits, RPP Loans, and/or Tax Exempt Bond Loans

Project Description

Project Name: Wellspring Village

Address: 240 Pitts School Road NW

City: Concord County: Cabarrus Zip: 28027

Census Tract: 426 Block Group: 4

No

Political Jurisdiction: City of Concord

Jurisdiction CEO Name: First: Last:J. Scott Padgett Title: MayorJurisdiction Address: 26 Union St.

Jurisdiction City: Concord Zip: 28025

Jurisdiction Phone: (704)920-5215

Site Latitude: 35.3498

Site Longitude: -80.6531

Project Type: New Construction

No

Rehab:

Is this project a previously awarded tax credit development?

If yes, what year were credits awarded?:

Number of residents holding Section 8 vouchers:

No

No

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

Will the project include a Community Service Facility under IRS Revenue Ruling 2003-77? No

If yes, please describe:

No

Mobility impaired handicapped: 5% of units comply with QAP Section IV(F)(3) (in addition to the units required by other federal andstate codes.)


2/25

Number of Units: 3

Persons with disabilities or homeless populations: the greater of 5 units or 10% of the total units.

Number of Units: 6

Remarks:


3/25

Indicate below an individual or a validly existing entity (a corporation, nonprofit, limited partnership or LLC) as the official applicant. UnderQAP Section III(C)(5) only this individual or entity will be able to make decisions with regard to this application. If awarded the applicantmust become part of the ownership entity. The applicant will execute the signature page for this application.

Applicant Information

Applicant Name: Wellspring Village LLC

Address: 227 W. Trade St., Suite 800

City: State: NC Zip:Charlotte 28202

Contact: First: Last: Title:Dean Edwards Vice President

Telephone: (919)754-8990

Alt Phone: (919)256-3025

Fax: (919)754-8995

Email Address: [email protected]

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


4/25

Total Site Acreage: Total Buildable Acreage:

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

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

Storm Sewer Water Sanitary Sewer Electric

Is the demolition of any buildings required or planned?

If yes, please describe:

Are existing buildings on the site currently occupied?

If yes:(a) Briefly describe the situation:

(b) Will tenant displacement be temporary?

(c) Will tenant displacement be permanent?

Is the site directly accessed by an existing, paved, publicly maintained road?

If no, please explain:

Is any portion of the site located inside the 100 year floodplain?If yes:(a) Describe placement of project buildings in relation to this area:

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

Site Description

6.525 6.525

No

No

Yes

No


5/25


6/25

Does the owner have fee simple ownership of the property (site/buildings)?

If yes provide:

Purchase Date: Purchase Price:

If no:

Site Control

No

(a) Does the owner/principal or ownership entity have valid option/contract to purchase the property? Yes

(b) Does an identity of interest (direct or indirect) exist between the owner/principal or ownership entity with the option/contract for

purchase of the property and the seller of the property?If yes, specify the relationship:

No

(c) Enter the current expiration date of the option/contract to purchase: 11/30/2007

(D) Enter Purchase Price: 300,000


7/25

Present zoning classification of the site:

Is multifamily use permitted?

Are variances, special or conditional use permits or any other item requiring a public hearing needed to develop this proposal?

If yes, have the hearings been completed and permits been obtained?If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for obtainingthem:

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

review?

If yes, describe below:

Are there any existing conditions of environmental significance located on the project site?

If yes, describe below:

Zoning

O-I (Office & Institutional)

Yes

Yes

Yes

Conditional Use Permit approval obtained from City of Concord on March 15, 2005.

No

No


8/25

Ownership Entity

Owner Name: Wellspring Village LLC

Address: 227 West Trade Street, Suite 800

City: State: NC Zip:Charlotte 28202

Federal Tax ID Number of Ownership Entity: (If assigned)20-3903874

Note: Do not submit social security numbers for individuals.

Entity Type: Limited Liability Company

Entity Status: Already Formed

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

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

List all general partners, members,and principals. Specify nonprofit corporate general partners ormembers. Click [Add] to add additional partners, members, and principals.

Org: Crosland Wellspring LLC

First Name: Dean Last Name: Edwards Function: Managing Member

Address: 227 West Trade Street, Suite 800

City: Charlotte State: NC Zip: 28202

Phone: (919)256-3025 Fax: (919)754-8995

EMail: [email protected] Nonprofit: No


9/25


10/25

Notes

** Please refer to the Income Limits and Maximum Housing Expense Table to ensure that Total Monthly Tenant Expenses for lowincome units are within established thresholds.


11/25

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

Total Low Income Units:

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

Targeting

# BRs Units %

1 11 targeted at 30 percent of median income affordable to/occupied by






52


12/25

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

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

Funding Sources

Source AmountNon-

Amortizing*Rate(%)

Term(Years)

Amort.Period(Years)

AnnualDebt

Service

Bank Loan 208,500 7.50 30 30 17,494

RPP Loan 780,000 2.00 20 20 47,350

Local Gov. Loan - Specify:City of Concord - HOME Funds

208,000 2.00 30 30 9,225

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:



Tax Exempt Bonds

State Tax Credit(Loan) 485,093 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 3,732,409

Non-Repayable Grant

Equity: Historic Tax Credits

Deferred Developer Fees

Owner Investment 228 Other - Specify:

Total Sources** 5,414,230

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

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

95

City of Concord will provide low interest loan with HOME funds amortizing at 2% for 30 years.A negotiated payment schedule for RPP funds may be necessary in order to make DebtCoverage Ratio acceptable to investors.


13/25

Development Costs

Item Cost Element TOTAL COSTEligible Basis

30% PV 70% PV

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

2 Demolition (Rehab / Adaptive Reuse only)

3 On-site Improvements 799,620 799,6204 Rehabilitation

5 Construction of New Building(s) 2,415,160 2,415,160

6 Accessory Building(s)

7 General Requirements 192,887 192,887

8 Contractor Overhead 68,153 68,153

9 Contractor Profit 204,460 204,460

10 Construction Contingency 110,408 110,408

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 130,000 130,000

12 Architect's Fee - Inspection 25,000 25,000

13 Engineering Costs 40,000 40,000

SUBTOTAL (lines 1 through 13) 3,985,688

14 Construction Insurance (prorate) 15,500 14,72515 Construction Loan Orig. Fee (prorate) 24,000 22,800

16 Construction Loan Interest (prorate) 119,755 113,767

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate) 2,500 2,250

19 Water, Sewer and Impact Fees 26,000 26,000

20 Survey 14,000 14,000

21 Property Appraisal 4,000 4,000

22 Environmental Report 1,500 1,500

23 Market Study 4,200 4,200

24 Bond Costs

25 Bond Issuance Costs

26 Placement Fee27 Permanent Loan Origination Fee 2,085

28 Permanent Loan Credit Enhancement

29 Title and Recording 8,950

SUBTOTAL (lines 14 through 29) 222,490

30 Real Estate Attorney 40,000 40,000

31 Other Attorney's Fees 10,000 10,000

32 Tax Credit Application Fees (Preliminary and Full) 2,200

33 Tax Credit Allocation Fee (0.58% of line 59, minimum $7,500) 28,135

34 Cost Certification / Accounting Fees 15,000 15,000

35 Tax Opinion 2,500

36 Organizational (Partnership) 2,500

37 Tax Credit Monitoring Fee 33,800SUBTOTAL (lines 30 through 37) 134,135

38 Furnishings and Equipment 30,000 30,000

39 Relocation Expense

40 Developer's Fee 546,000 546,000

41 Other Basis Expense (specify) Bank Fees/Inspections/Permits 12,000 12,000

42 Other Basis Expense (specify) Soil Borings/Testing 9,000 9,000

43 Rent-up Expense 26,000

44 Other Non-basis Expense (specify)

45 Other Non-basis Expense (specify)


14/25

Comments:

SUBTOTAL (lines 38 through 45) 623,000

46 Rent up Reserve 15,600

47 Operating Reserve 133,317

48 Other Reserve (specify)

49 Other Reserve (specify)

50 DEVELOPMENT COST (lines 1-49) 5,114,230 0 4,850,930

51 Less Federal Financing52 Less Disproportionate Standard

53 Less Nonqualified Nonrecourse Financing

54 Less Historic Tax Credit (residential) 0

55 TOTAL ELIGIBLE BASIS 4,850,930 0 4,850,930

56 Applicable Fraction (percentage of LI Units) 100.00% 100% 100%

57 Basis Before Boost 4,850,930 0 4,850,930

58 Boost for QCT/DDA (if applicable, enter 130%) 100.00% 100.00%

59 TOTAL QUALIFIED BASIS 4,850,930 0 4,850,930

60 Tax Credit Rate 3.45 8.10

61 Federal Tax Credits at Estimated Rate 392,925 0 392,925

62 Federal Tax Credits at 8.5% or 3.75% 412,329 0 412,329

63 Max Federal Tax Credits (With Energy Star - Lesser of $8,500 per unit or$800,000, w/o - Lesser of $8,000 per unit or $800,000) 416,000

64 Federal Tax Credits Requested 0

65 Land Cost 300,000

66 TOTAL REPLACEMENT COST 5,414,230

FEDERAL TAX CREDITS IF AWARDED 412,329

Total Replacement Cost per unit: 94,987

Federal Tax Credits (line 62) per unit: 7,929


15/25

Please provide a detailed description of the proposed project:

Construction (check all that apply):

Brick Vinyl Wood HardiPlank Balconies/Patios Sunrooms Front Porches

Front Gables or Dormers Wide Banding or Vertical/Horizontal Siding

Other:

Have you built other tax credit developments that use the same building design as this project?

If yes, please provide name and address:

Site Amenities:

Onsite Activities:

Market Study Information

Wellspring Village will be a 52-unit seniors housing development, located on a very attractive site inSoutheast Concord, North Carolina, adjacent to an existing Lutheran Church. This area is a primegrowth area in the City of Concord, with the large shopping mall of Concord Mills in the immediatevicinity. Other than the Lutheran Church, the site is also adjacent to a city Fire Station as well as alarge, active Baptist Church, while the rear of the site adjoins an upscale Baptist sponsoredretirement community. The site is also surrounded by upscale single family subdivisions. There is noother affordable housing of any type in the area, creating a need that Wellspring Village will bepoised to fulfill.

The residential units at Wellspring Village will be constructed as 13 quadplex single-story cottages.The buildings will have a "pinwheel" design, so that each side of each building will contain a privateentrance to a unit. The community includes a large community building that will provide actitivites,an exam room, and ample areas for residents to meet and socialize.

Also provided will be carbon-monoxide detectors, Range Queen Canister fire extinguishers at rangehoods, and ceiling fans.The use of fiber cement product siding and trim, along with generousamounts of brick, as well as shake accent panels in the gables of each building, will make this a lowmaintenance and attractive community.

Yes

Arbor Glen Apartments2305 Farmer StreetCharlotte, NC 28208

Camellia Court Apartments

4609 Country Club RoadMorehead City, NC 28557

Kings Mill Apartments1200 Daughter's DriveNewport, NC 28570

Troon Apartments300 Troon WayBeaufort, NC 28516

Renaissance Commons Apartments301 Renaissance CircleElizabeth City, NC 27909

Community Building, Resident Garden Plots, Outdoor seating areas, Gazebo, Picnic Area with

Tables/Grilles, Bike Racks, Activity Room, Exam Room, Computer Center/Library, TV Room

Safety ProgramsPresident CouncilMonthly Birthday PartiesSeasonal Holiday Parties


16/25


17/25

Briefly describe your site in each of the following categories:

Applicant's Site Evaluation

NEIGHBORHOOD CHARACTERISTICS

Trend and direction of real estate development and area economic health. Physical condition ofbuildings and improvements. Concentration of affordable housing.The Wellspring Village site is in a formerly rural area in southeast Concord, North Carolina, that israpidly developing. Economically, the area is the strongest in Concord, with nearby Concord MillsMall and Lowe's Motor Speedway serving as powerful economic engines. In the area immediatelysurrounding the site area is a Lutheran Church and a Baptist Church, as well as a large market rateBaptist retirement community, and several attractive, newer single family residential developments.A fire station is also adjacent to the site. There is no other nearby affordable housing.

SURROUNDING LAND USES AND AMENITIES

Suitability of surrounding development. Land use pattern is residential in character (single andmultifamily housing) with a balance of other uses (particularly retail and amenities). Effect ofindustrial, large-scale institutional or other incompatible uses, including but not limited to: wastewatertreatment facilities, high traffic corridors, junkyards, prisons, landfills, large swamps, distributionfacilities, frequently used railroad tracks, power transmission lines and towers, factories or similar

operations, sources of excessive noise, and sites with environmental concerns (such as odors orpollution). Amount and character of vacant, undeveloped land.The area surrounding the Wellspring Village site is a unique and beautiful combination of theattractive homes found in middle to upper income single family residential communities, and thegorgeous open spaces and rolling hills found in more rural areas of North Carolina's Piedmontregion. The nearby supportive amenities are ample. A Food Lion grocery store and an Eckerdpharmacy, along with over a dozen other shops and restaurants, including Family Dollar andBlockbuster Video stores, are located just over a half-mile away from the site. An even moreprominent regional attraction, Concord Mills Mall (one of the top destinations in North Carolina), withdozens of accompanying shops and restaurants, is just 3 miles away from the site. There are nonearby incompatible uses, and the vacant, undeveloped land in the area is mainly farmland, or partof large (2 acres of more), older single family residential lots.

SITE SUITABILITY

Adequate traffic controls (stop lights, speed limits, turn lanes, etc.). Burden on public facilities(particularly roads). Access to mass transit (if applicable). Visibility of buildings and/or location of

project sign(s) in relation to traffic corridors.Pitts School Road, the main thoroughfare that runs next to the Wellspring Village site, is not heavilytraveled, and as a seniors community, Wellspring Village will not create any significant additionaltraffic burden. The site adjoins Family of Fai th Lutheran Church, and, in working with the Church andthe City, as well as DOT, it was decided to improve the traffic flow of the church's entrance byaligning the entrance of both the church and Wellspring Village with the subdividion directly acrossfrom the church. By combining the two entrances, we will create a new entry and landscape designfor the church to produce a more aesthetically pleasing area for the neighborhood. This is reflectedin the site plan accompanying this application.

Degree of on-site negative features and physical barriers that will impede project construction oradversely affect future tenants; for example: power transmission lines and towers, flood hazards,steep slopes, large boulders, ravines, year-round streams, wetlands, and other similar features (foradaptive re-use projects- suitability for residential use and difficulties posed by the building(s), suchas limited parking, environmental problems or the need for excessive demolition).There are no on-site negative physical barriers, and no parking or environmental problems.

Similarity of scale and aesthetics/architecture between project and surroundings.The residential units at Wellspring Village will be constructed as 13 single story 4-unit cottages, witha separate and private entrance for each cottage. There will only be one entrance on each side of acottage building, This design will give the cottage buildings the character and appearance of ranch-style, single family homes, which is very consistent with the nature of much of the surrounding singlefamily homes.


18/25

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

Other facilities or services:

Grocery Store.5 Community/Senior Center6.8

Mall/Strip Center.5 Hospital6.8

Outdoor Athletic Fields Pharmacy.5

Day Care/After School3.0 Basic Health Care7

Schools.1 Medical Offices7

Public Transportation Stop Bank/Credit Union4

Convenience Store.5 Restaurants.5

Basketball/Tennis Courts Professional Services4

Public Parks2.4 Movie Theater4

Gas Station.5 Video Rental.5

Library4 Public Safety (Fire/Police).05

Fitness/Nature Trails2.4 Post Office2.9

Public Swimming Pools


19/25


20/25


21/25

Project Operations (Year One)

Projected Operating Costs

Administrative Expenses

Advertising 1,200

Office Salaries

Office Supplies 500

Office or Model Apartment Rent

Management Fee 21,840

Manager or Superintendent Salaries 36,000

Manager or Superintendent Rent Free Unit

Legal Expenses (Project) 1,500

Auditing Expenses (Project) 5,000

Bookkeeping Fees/Accounting Services 10,000

Telephone and Answering Service 3,600

Bad Debts 750

Other Administrative Expenses (specify):

Training/Mileage1,500

SUBTOTAL 81,890

Utilities Expense

Fuel Oil

Electricity (Light and Misc. Power) 3,500

Water 4,680

Gas

Sewer 4,680

SUBTOTAL 12,860

Operating and Maintenance Expenses

Janitor and Cleaning Payroll 10,000

Janitor and Cleaning Supplies 250

Janitor and Cleaning Contract 5,000

Exterminating Payroll/Contract 3,000

Exterminating Supplies 100Garbage and Trash Removal 5,000

Security Payroll/Contract

Grounds Payroll

Grounds Supplies

Grounds Contract 9,000

Repairs Payroll

Repairs Material

Repairs Contract

Elevator Maintenance/Contract

Heating/Cooling Repairs and Maintenance

Swimming Pool Maintenance/Contract

Snow Removal 250Decorating Payroll/Contract

Decorating Supplies 250

Other (specify):

Miscellaneous Operating & Maintenance Expenses

SUBTOTAL 32,850

Taxes and Insurance

Real Estate Taxes 35,922

Payroll Taxes (FICA) 2,743


22/25

Miscellaneous Taxes, Licenses and Permits 500

Property and Liability Insurance (Hazard) 12,500

Fidelity Bond Insurance 75

Workmen's Compensation 75

Health Insurance and Other Employee Benefits 3,000

Other Insurance:

SUBTOTAL 54,815Supportive Service Expenses

Service Coordinator 12,000

Service Supplies 500

Tenant Association Funds

Other Expenses (specify):

SUBTOTAL 12,500

Reserves

Replacement Reserves 13,000

SUBTOTAL 13,000

TOTAL OPERATING EXPENSES 207,915

ADJUSTED TOTAL OPERATING EXPENSES(Does not include taxes, reserves and resident support services) * 146,493

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

52

PER UNIT PER YEAR 2,817


23/25


24/25

MINIMUM REQUIRED SET ASIDES (No Points Awarded):

Minimum Set-Asides

Select one of the following two options:

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

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

If requesting RPP funds:

40% of the units are occupied by households with incomes at or below 50% of median income.

State Tax Credit and QAP Targeting Points:

High Income county:

At least twenty-five percent (25%) of qualified units will be affordable to households with incomes at or below thirty percent (30%)of county median income.

At least twenty-five percent (25%) of qualified units will be affordable to and occupied by households with incomes at or belowthirty percent (30%) of county median income.

At least fifty percent (50%) of qualified units will be affordable to households with incomes at or below forty percent (40%) ofcounty median income.

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

Tax Exempt Bonds

Threshold requirement (select one):

At least ten percent (10%) of qualified units will be affordable to and occupied by households with incomes at or below fifty percent(50%) of county median income.

At least five percent (5%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent(40%) of county median income.

Eligible for targeting points (select one):

At least twenty percent (20%) of qualified units will be affordable to and occupied by households with incomes at or below fiftypercent (50%) of county median income.

At least ten percent(10%) of qualified units will be affordable to and occupied by households with incomes at or below forty percent(40%) of county median income.


25/25

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

Full Application Checklist

A Nonprofit Organization Documentation or For-profit Corporation Documentation

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

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

D Management Agent Agreement

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

F Letters from State Housing Agencies or designated monitoring agent verifying out of state experience

G Completed IRS Form 8821 (Appendix I)

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

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

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

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

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

M Site plan, floor plans and elevations for all projects. Scope of work for Adaptive Re-use and Rehab projects. (Full Size, 24 x36 inches)

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

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

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

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

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

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

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

wellspring village

Documents