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

Project Description
Project Name: Glenbrook Villas
Address: Gum Branch Road

City: Jacksonville County: Onslow Zip: 28540

Census Tract: 0014 Block Group: 00

Is project in Qualified Census Tract or Difficult to Develop Area? No


Are you requesting the basis boost under section II(E)(4) of the QAP? Yes

Political Jurisdiction: City of Jacksonville


First:Sammy Last:
Jurisdiction CEO Name: Title: Mayor
Phillips
Jurisdiction Address: P.O. Box 128

Jurisdiction City: Jacksonville Zip: 28541

Jurisdiction Phone: (910)938-5200

Site Latitude: 34.78770841014608

Site Longitude: -77.42970943450928

Project Type: New Construction

Is this project a previously awarded tax credit


development?

New Construction/Adaptive Reuse:


Is this project a follow-on (Phase II, etc) to a previously-awarded tax credit development project? No

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


Rehab:
Number of residents holding Section 8
vouchers:

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

Does a community revitalization plan exist? Yes


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

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Will the project include a Community Service Facility under IRS Revenue Ruling 2003-77?
No
If yes, please describe:

Target Population:Family
Will the project be receiving project based federal rental assistance? No

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

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Applicant Information
Indicate below an individual or a validly existing entity (a corporation, nonprofit, limited partnership or LLC) as the official applicant. Under
QAP Section III(C)(5) only this individual or entity will be able to make decisions with regard to this application. If awarded the applicant
must become part of the ownership entity. The applicant will execute the signature page for this application.
Applicant Name: Fitch Development Group, Inc.
Address: 1314 Kenilworth Ave #218

City: Charlotte State: NC Zip: 28203


Contact: First: Hollis Last:Fitch Title:President

Telephone: (704)632-0407

Alt Phone: (704)315-8933

Fax: (704)631-4664

Email Address: hollis@fitchdg.com


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

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Site Description

Total Site Acreage: 7.85 Total Buildable Acreage: 7.85


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? No


If yes, please describe:

Are existing buildings on the site currently occupied? No


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? Yes
If no, please explain:

Is any portion of the site located inside the 100 year floodplain? No
If yes:
(a) Describe placement of project buildings in relation to this area:

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

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Site Control
Does the owner have fee simple ownership of the property (site/buildings)?No

If yes provide:

Purchase Date: Purchase Price:

If 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?No
If yes, specify the relationship:

(c) Enter the current expiration date of the option/contract to purchase: 10/31/2009

(D) Enter Purchase Price: 856,000

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Zoning
Present zoning classification of the site:R7

Is multifamily use permitted?No

Are variances, special or conditional use permits or any other item requiring a public hearing needed to develop this proposal?Yes
If yes, have the hearings been completed and permits been obtained?No
If yes, specify permit or variance required and date obtained. If no, describe permits/variances required and schedule for
obtaining them:
The property is currently zoned to allow for 39 individual lots. The rezoning process and timeline are
estimated from information provided by the city of Jacksonville. Apply for rezoning: Jan 16th. Planning
board recommendation: Feb. 9th. City Council consideration: March 3rd.

Are there any existing conditions of historical significance located on the project site that will require State Historic Preservation office
review?No
If yes, describe below:

Are there any existing conditions of environmental significance located on the project site?No
If yes, describe below:

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Ownership Entity

Owner Name: Glenbrook Villas, LLC


Address: 1314 Kenilworth Ave #218
City: Charlotte State:NC Zip: 28203

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


Note: Do not submit social security numbers for individuals.
Entity Type: Limited Liability Company
Entity Status: To Be 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 or members.
Click [Add] to add additional partners, members, and principals.

Org: Fitch Development Group, Inc.


First Name: Hollis Last Name: Fitch Function: Managing Member
Address: 1314 Kenilworth Ave #218
City: Charlotte State: NC Zip: 28203

Phone: (704)632-0407 Fax: (704)631-4664

EMail: hollis@fitchdg.com Nonprofit: No

Org: The Flatiron Group, Inc.


First Name: Hollis Last Name: Fitch Function: Member
Address: 1314 Kenilworth Ave #218
City: Charlotte State: NC Zip: 28203

Phone: (704)632-0407 Fax: (704)631-4664

EMail: hollis@fitchdg.com Nonprofit: No

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Unit Mix
The Median Income for Jacksonville city is $49,900.

Low Income Units

Total # Monthly Utility Mandatory **Total


Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.

Gdn Apt 1 800 6 1 270 88 0 358

Gdn Apt 1 800 4 1 340 88 0 428

Gdn Apt 1 800 6 1 405 88 0 493

Gdn Apt 2 1113 10 1 325 105 0 430

Gdn Apt 2 1113 8 1 400 105 0 505

Gdn Apt 2 1113 18 1 505 105 0 610

Gdn Apt 3 1282 4 1 375 121 0 496

Gdn Apt 3 1282 5 1 490 121 0 611

Gdn Apt 3 1282 11 1 590 121 0 711

Utilities included in rents: Water/Sewer Electric Gas Other

Employee Units (will add to Low Income Unit total)

Total # Monthly Utility Mandatory **Total


Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.

Utilities included in rents: Water/Sewer Electric Gas Other

Market Rate Units

Total # Monthly Utility Mandatory **Total


Type # BRs Net Sq.Ft. # Units Units Rent Allowance Serv. Fees Housing Exp.

Utilities included in rents: Water/Sewer Electric Gas Other

Statistics

All Gross Monthly


Units Units Rental Income

Low Income....... 72 9 31390

Market Rate.......

Totals............... 72 9 31390

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Proposed number of residential buildings: 7 Maximum number of stories in buildings: 2

Project Includes:
Separate community building - Sq. Ft. (Floor Area): 1,350

Community space within residential bulding(s) - Sq. Ft. (Floor Area):

Elevators - Number of Elevators:

Square Footage Information

Gross Floor Square Footage: 81,010

Total Net Sq. Ft. (All Heated Areas): 79,858

Indicate below any additional targeting for special populations proposed for this project:
Mobility impaired handicapped: 5% of units comply with QAP Section IV(F)(3) (in addition to the units required by other federal and
state codes.)

Number of Units: 9

Number of Units Required: 8


Persons with disabilities or homeless populations.

Number of Units: 9

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

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Targeting

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

# BRs Units %

1 6 targeted at 40 percent of median income affordable to/occupied by

1 4 targeted at 50 percent of median income affordable to/occupied by

1 6 targeted at 60 percent of median income affordable to/occupied by

2 10 targeted at 40 percent of median income affordable to/occupied by

2 8 targeted at 50 percent of median income affordable to/occupied by

2 18 targeted at 60 percent of median income affordable to/occupied by

3 4 targeted at 40 percent of median income affordable to/occupied by

3 5 targeted at 50 percent of median income affordable to/occupied by

3 11 targeted at 60 percent of median income affordable to/occupied by

Total Low Income Units: 72

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

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Funding Sources

Amort. Annual
Non- Rate Term Period Debt
Source Amount Amortizing* (%) (Years) (Years) Service

Bank Loan 900,000 7.00 18 30 71,853

RPP Loan

Local Gov. Loan - Specify:

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:

Other Loan 2 - Specify:

Other Loan 3 - Specify:

Tax Exempt Bonds

State Tax Credit(Loan) 2,023,950 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 6,465,874

Non-Repayable Grant

Equity: Historic Tax Credits

Deferred Developer Fees 24,858

Owner Investment

Other - Specify:

Total Sources** 9,414,682

* "Non-amortizing" indicates that the loan does not have a fixed annual debt service. For these items, you must fill in 20-year debt
service below.
** Total Sources must equal total replacement cost in Project Development Cost (PDC) section.

Estimated pricing on sale of Federal Tax Credits: $0. 71

Remarks concerning project funding sources:


(Please be sure to include the name of the funding source(s))

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Development Costs
Eligible Basis
Item Cost Element TOTAL COST
30% PV 70% PV
1 Purchase of Building(s) (Rehab / Adaptive Reuse only)

2 Demolition (Rehab / Adaptive Reuse only)

3 On-site Improvements 916,000 916,000

4 Rehabilitation

5 Construction of New Building(s) 4,305,600 4,305,600

6 Accessory Building(s)

7 General Requirements (max 6% lines 2-6) 314,000 314,000

8 Contractor Overhead (max 2% lines 2-7) 104,700 104,700

9 Contractor Profit (max 8% lines 2-7; 6% if Identity of Interest) 444,000 444,000

10 Construction Contingency (max 5% lines 2-9, Rehabs 10%) 304,900 304,900

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 165,000 165,000

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

13 Engineering Costs 45,000 45,000

SUBTOTAL (lines 1 through 13) 6,624,200

14 Construction Insurance (prorate) 56,000 56,000

15 Construction Loan Orig. Fee (prorate) 72,000 72,000

16 Construction Loan Interest (prorate) 420,000 420,000

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate) 4,000 4,000

19 Water, Sewer and Impact Fees 100,800 100,800

20 Survey 10,500 10,500

21 Property Appraisal 8,500 8,500

22 Environmental Report 9,500 9,500

23 Market Study 4,300 4,300

24 Bond Costs

25 Bond Issuance Costs

26 Placement Fee

27 Permanent Loan Origination Fee

28 Permanent Loan Credit Enhancement

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29 Title and Recording 35,000

SUBTOTAL (lines 14 through 29) 720,600

30 Real Estate Attorney 30,000

31 Other Attorney's Fees 12,000

32 Tax Credit Application Fees (Preliminary and Full) 2,300

33 Tax Credit Allocation Fee (0.62% of line 60, minimum $7,500) 61,682

34 Cost Certification / Accounting Fees 5,000

35 Tax Opinion 5,000

36 Organizational (Partnership) 6,500

37 Tax Credit Monitoring Fee 50,400

SUBTOTAL (lines 30 through 37) 172,882

38 Furnishings and Equipment 75,000

39 Relocation Expense

40 Developer's Fee 756,000 756,000

41 Additional Contigency (greater of $500/unit or $30,000) 30,000 30,000

42 Other Basis Expense (specify)

43 Other Basis Expense (specify)

44 Rent-up Expense

45 Other Non-basis Expense Insurance Reserve 40,000

46 Other Non-basis Expense (specify)

SUBTOTAL (lines 38 through 45) 901,000

47 Rent up Reserve 15,000

48 Operating Reserve 125,000

49 Other Reserve (specify)

50 Other Reserve (specify)

51 DEVELOPMENT COST (lines 1-49) 8,558,682 0 8,095,800

52 Less Federally Funded Grant

53 Less Disproportionate Standard

54 Less Nonqualified Nonrecourse Financing

55 Less Historic Tax Credit 0

56 TOTAL ELIGIBLE BASIS 8,095,800 0 8,095,800

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

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58 Basis Before Boost 8,095,800 0 8,095,800

59 Basis Boost of up to 130% 100.00% 125.00%

60 TOTAL QUALIFIED BASIS 10,119,750 0 10,119,750

61 Tax Credit Rate 3.50 9.00

62 Federal Tax Credits (maximum $1,300,000) 910,778 0 910,778

63 Federal Tax Credits Requested (if less than line 62) 0

64 Land Cost 856,000

65 TOTAL REPLACEMENT COST 9,414,682

FEDERAL TAX CREDITS IF AWARDED 910,778

Comments:

Project Development Cost per unit 59,800

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Market Study Information


Please provide a detailed description of the proposed project:
Glenbrook Villas will be a seventy-two unit garden style apartment complex located in Jacksonville, NC
targeted towards family households. The property will feature green building techniques and the individual
units will be energy star certified. During the design phase of the project, we have worked diligently with our
architect to ensure that the property will feature superior ammenities for tenants. The properties will feature
greenspace, designated playground, a resident computer center, covered picnic area, outdoor sitting areas,
covered patio with seating, gazebo, and walking trails.

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?Yes
If yes, please provide name and address:
The developer has not used these plans in North Carolina, however these plans were used for the seventy-
two unit Berea Heights apartments in Greenville, SC. These plans are also currently in use for a sixty-four
unit project in McMinnville, TN.

Site Amenities:
The development will also have the following required site amenities: a tot lot playground, a resident
computer center with a minimum of two computers in the community building, a covered picnic area with
two tables and a grill, and the outdoor gazebo sitting areas. The complex will contain a community room
with kitchen, a computer room, protected mail facility and a laundry room containing five washers and
dryers for tenant use.

Onsite Activities:
The on site activities will be coordinated by the apartment manager working with the tenant associations in
accordance with the tenant service plan. Activities available on a continous basis will be the tot lot for small
children, greenspace/athletic field for teenagers and adults. A picnic area and three gazebos will encourage
outdoor activity. The oval interior roadways of the project will also provide a protected onsite walking loop.
The playground will be centrally located to allow for visiability from all buildings in the complex.

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Landscaping Plans:
The landscaping plan will be in accordance with Appendix B. The site has some native trees which will be
preserved whenever possible. The landscaping budget for trees and shrubs will exceed the required
minimum of $300 per unit or $21,600 in total. The site will have ample greenspace and this will be
landscaped with native shrubs and plants.

Interior Apartment Amenities:


The individual units will have ceiling fans in every bedroom, as well as the living room. Each apartment will
have individual washer and dryer connections. All appliances in the apartments will be energy star rated.
Each apartment will be wired for high speed internet connections in the main living area.

Do you plan to submit additional market data (market study, etc.) that you want considered? Yes
If yes, please make sure to include the additional information in your pre-application packet.

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Applicant's Site Evaluation


Briefly describe your site in each of the following categories:

NEIGHBORHOOD CHARACTERISTICS

Trend and direction of real estate development and area economic health. Physical condition of buildings and
improvements in the immediate vicinity. Concentration of affordable housing.
The site is located on Gum Branch Road approximately 0.2 miles west of the intersection of Gum Branch
and Henderson Drive. The site is approximately 7.85 acres. Directly east of the site is the Jacksonville High
School, to the rear and west of the site are homes in a subdivision in the $150,000 to $250,000 range.
Across Gum Branch Road is an older market rate apartment complex.

SURROUNDING LAND USES AND AMENITIES

Land use pattern is residential in character (single and multifamily housing). Extent that the location is
isolated. Effect of industrial, large-scale institutional or other incompatible uses, including but not limited to:
wastewater treatment facilities, high traffic corridors, junkyards, prisons, landfills, large swamps, distribution
facilities, 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 or pollution). Amount and
character of vacant, undeveloped land. The land use in this area in residential in character and located
conviently to many different services. Most notably is the sites close proximity to Jacksonville High School.
SITE SUITABILITY

Adequate traffic safety controls (i.e. stop lights, speed limits, turn lanes). 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. The site had originally been laid out for a 39 lot subdivision and the eight
inch sewer line is to be in place by March 31, 2009 in order for the property owner to protect his sewer
permit. The owner has cleared some of the trees from the site so you will be able to get a good view of the
tract. He left a buffer of trees at the rear of the lot and you cannot see Northwood Drive, the subdivision that
backs up to the tract of land. We intend to leave this buffer in place. The other trees left on the site are pines
and some small hardwoods. The hardwoods do not have any large canopies to provide significant shade,
therefore the remaining trees will provide minimal enhancement to the site. Jacksonville now has a public
transit system and the city has told us that we can request a stop at the site. There is a traffic signal at the
intersection of Gum Branch and Henderson Drive, this signal provide breaks in the traffic along Gum Branch.
Degree of on-site negative features and physical barriers that will impede project construction or adversely
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 (for adaptive re-use projects-
suitability for residential use and difficulties posed by the building(s), such as limited parking, environmental
problems or the need for excessive demolition).
This being a coastal site,it provides all of the attributes of similar sites; namely the water table will be within
ten feet of the surface, the soil is a gumbo type soil that will have to be removed from the road beds and
building pads and a better quality soil trucked into the site. Since the site has had some clearing and a ditch
and retention pond are in place, the site will have over a year to drain before building begins. The site is
relatively flat with minimal contour differentiation.

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Similarity of scale and aesthetics/architecture between project and surroundings.


The site is comparable with other building sitesin the area and presents no unusual obstacles to
development. The aesthetics for the development will be in conformity with the existing architecture for the
neighborhood.The buildings will be two stories and will not be overly tall for the neighborhood.

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

.5 Grocery Store 1 Community/Senior Center

.5 Mall/Strip Center 4 Hospital

.2 Outdoor Athletic .3 Pharmacy


Fields

.7 Day Care/After .8 Basic Health Care


School

.1 Public Transportation
.2 Schools
Stop

.8 Convenience Store 1.4 Public Parks

.8 Gas Station 1.2 Library

Other facilities or services:

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Preliminary App Checklist

The following enclosures must be submitted along with your signed preliminary application. Some enclosures are required only under
certain conditions. Please check each applicable item to indicate that you understand the enclosure requirements and will enclose the
correct supporting documentation with your application.

Fee Payment
Check in the amount of $5,450.00 made payable to North Carolina Housing Finance Agency.
Tab A - Preliminary Application
Printed, signed copy of preliminary application generated from online system.
B - Map/Driving Instructions
A local map clearly identifying the location of the Site and detailed directions to the Site. Current City or County maps are preferred
– internet maps and directions are not acceptable. Applicant must also provide a map identifying the amenities listed in section IV
(A)(1)(b)(ii) of the QAP and their proximity to the site.

Applicant must provide a sign and boundary markers to clearly identify the road frontage of the site. The sign identifying the site
should read “SITE” with a minimum size of 11x17.
C - Community Revitalization Plan
Applicant should provide a map identifying the subject site within the Plan area (if applicable).
D - Evidence of Site Control
Provide valid option/contract or warranty deed and plot plan.
E - Site Plans/Scope of Work
Preliminary site plan, floor plans and elevations for all projects, interior and exterior photographs and detailed scope of work for
Adaptive Reuse and Rehab projects. Site and floor plans should be no larger than 11x17 and must be produced by a licensed
architect or engineer.
F - Information Package for Market Analysts
This section must include copies of items required in Tabs A, B, E and G (site and floor plans should be no larger than 11x17) and
can include any additional market information such as preliminary market studies the applicant would like to provide to the
Analysts.
G - Rent Roll (Rehabs only)
Provide the current rent roll for the property and indicate which units (if any) are receiving rental assistance.
H - Documentation for Basis Boost
Applicant should provide an appraisal and/or standard geological survey to support a request for the basis boost (if applicable).

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