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

Project Description
Project Name: Renaissance Apartments
Address: 333 East Nash Street

City: Wilson County: Wilson Zip: 27893

Census Tract: 2 Block Group: 1

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


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

Political Jurisdiction: City of Wilson


First:Grant Last:
Jurisdiction CEO Name: Title: City Manager
Goings
Jurisdiction Address: 112 Goldsboro Street

Jurisdiction City: Wilson Zip: 27893

Jurisdiction Phone: (252)296-3363

Site Latitude: 35.423932

Site Longitude: -77.909201

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:Elderly (55)


Will the project be receiving project based federal rental assistance? Yes

If yes, provide the subsidy source: HUD and number of units: 56

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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: John H. Wellons Foundation, Inc.
Address: P.O. Box 1254

City: Dunn State: NC Zip: 28335


Contact: First: Don Last:Wellons Title:

Telephone: (910)892-0436

Alt Phone: (919)820-6444

Fax: (910)892-4888

Email Address: SRedinger@SARedinger.com


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

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Site Description

Total Site Acreage: .74 Total Buildable Acreage: .74


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? Yes


If yes:
(a) Briefly describe the situation:
The Cherry Hotel has 108 efficiency and one bedroom apartment units as of 12/19/08 81 units were
occupied. The Cherry Hotel is typically 75% occupied.

(b) Will tenant displacement be temporary? Yes


(c) Will tenant displacement be permanent? Yes

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?Yes
If yes, specify the relationship:
Part of Estate of Family Member

(c) Enter the current expiration date of the option/contract to purchase: 12/31/2009

(D) Enter Purchase Price: 2,731,109

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Zoning
Present zoning classification of the site:B-1

Is multifamily use permitted?Yes

Are variances, special or conditional use permits or any other item requiring a public hearing needed to develop this proposal?No
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
obtaining them:

Are there any existing conditions of historical significance located on the project site that will require State Historic Preservation office
review?Yes
If yes, describe below:
The Cherry Hotel was completed in 1922 and is listed on the National Register of Historic Places

Are there any existing conditions of environmental significance located on the project site?Yes
If yes, describe below:
The building contains some asbestos that will have to be abated.

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Ownership Entity

Owner Name: Renaissance Apartments, LLC


Address: P.O. Box 1254
City: Dunn State:NC Zip: 28335

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? Yes
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: John H. Wellons Foundation, Inc.


First Name: Don Last Name: Wellons Function: Managing Member
Address: P. O. Box 1254
City: Dunn State: NC Zip: 28335

Phone: (910)892-0436 Fax: (910)892-4888

EMail: DWellons@Wellons.org Nonprofit: Yes

Org: Scott A. Redinger, Inc


First Name: Scott Last Name: Redinger Function: Member
Address: 4553 Technology Drive Suite 3
City: Wilmington State: NC Zip: 28405

Phone: (910)793-2850 Fax: (910)793-2851

EMail: SRedinger@SARedinger.com Nonprofit: No

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Unit Mix
The Median Income for Wilson city is $49,700.

Low Income Units

Total # Monthly Utility Mandatory **Total


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

Twn Hse 1 642 51 5 566 65 0 631

Twn Hse 2 956 5 1 681 85 0 766

Utilities included in rents: Water/Sewer Electric Gas Other Trash

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....... 56 6 32271

Market Rate.......

Totals............... 56 6 32271

Proposed number of residential buildings: 1 Maximum number of stories in buildings: 5

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

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


5,401

Elevators - Number of Elevators: 1

Square Footage Information

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Gross Floor Square Footage: 65,631

Total Net Sq. Ft. (All Heated Areas): 51,504

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: 6

Number of Units Required: 6


Persons with disabilities or homeless populations.

Number of Units: 6

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

1 38 targeted at 50 percent of median income affordable to/occupied by

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

2 3 targeted at 50 percent of median income affordable to/occupied by

Total Low Income Units: 56

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

RPP Loan

Local Gov. Loan - Specify:

RD 515 Loan

RD 538 Loan - Specify:

AHP Loan

Other Loan 1 - Specify:


1,530,297 ✔ 1.00 30 30
HUD M2M

Other Loan 2 - Specify:

Other Loan 3 - Specify:

Tax Exempt Bonds

State Tax Credit(Loan) 2,490,640 0 30 30 0

State Tax Credit(Direct Refund)

Equity: Federal LIHTC 5,897,798

Non-Repayable Grant

Equity: Historic Tax Credits 2,414,529

Deferred Developer Fees

Owner Investment

Other - Specify:

Total Sources** 12,333,264

* "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. 70

Remarks concerning project funding sources:


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

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The LIHTC includes ($5,249,475 new construction and $648,323 rehab.) The HTC includes
($1,552,197 Fedreal HTC and $862,332 State HTC) The HUD mortgage will be changed under the
M@M program. At this time I do not know what the amount and terms of that mortgage will be so I
have shown the mortgage as a non amortizing loan.

Loans with Variable Amortization


Please fill in the annual debt service as applicable for the first 20 years of the project life.

Other Loan 1 - HUD M2M

1 2 3 4 5 6 7 8 9 10
Year:
Amt: 115241 115386 115466 115478 115418 115282 115066 114787 114380 113901
11 12 13 14 15 16 17 18 19 20
Year:
Amt: 113325 112647 111863 110968 109956 108821 107559 106163 104626 102944

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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) 2,731,109 2,731,109

2 Demolition (Rehab / Adaptive Reuse only) 150,000 150,000

3 On-site Improvements 124,906 124,906

4 Rehabilitation

5 Construction of New Building(s) 5,751,017 5,751,017

6 Accessory Building(s)

7 General Requirements (max 6% lines 2-6) 150,218 150,218

8 Contractor Overhead (max 2% lines 2-7) 123,523 123,523

9 Contractor Profit (max 8% lines 2-7; 6% if Identity of Interest) 370,568 370,568

10 Construction Contingency (max 5% lines 2-9, Rehabs 10%) 667,023 667,023

11 Architect's Fee - Design (11 + 12 = max 3% lines 2-10) 170,000 170,000

12 Architect's Fee - Inspection 50,118 50,118

13 Engineering Costs 12,000 12,000

SUBTOTAL (lines 1 through 13) 10,300,482

14 Construction Insurance (prorate) 50,000 50,000

15 Construction Loan Orig. Fee (prorate) 25,000 25,000

16 Construction Loan Interest (prorate) 192,500 150,000

17 Construction Loan Credit Enhancement (prorate)

18 Construction Period Taxes (prorate) 20,000 20,000

19 Water, Sewer and Impact Fees

20 Survey 8,000 8,000

21 Property Appraisal 8,000 8,000

22 Environmental Report 27,465 27,465

23 Market Study 5,500 5,500

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 10,000

SUBTOTAL (lines 14 through 29) 346,465

30 Real Estate Attorney 28,500 28,500

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

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

33 Tax Credit Allocation Fee (0.62% of line 60, minimum $7,500) 57,061

34 Cost Certification / Accounting Fees 10,000 10,000

35 Tax Opinion 1,000

36 Organizational (Partnership) 625

37 Tax Credit Monitoring Fee 39,200

SUBTOTAL (lines 30 through 37) 148,686

38 Furnishings and Equipment 75,000 75,000

39 Relocation Expense 350,000 350,000

40 Developer's Fee 800,000 800,000

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

42 Other Basis Expense (Payment and Performance Bond) 54,029 54,029

43 Other Basis Expense (Permits and Fees/Historic Consultant) 12,500 12,500

44 Rent-up Expense 10,000

45 Other Non-basis Expense (

46 Other Non-basis Expense (

SUBTOTAL (lines 38 through 45) 1,301,529

47 Rent up Reserve 63,046

48 Operating Reserve 173,056

49 Other Reserve (specify)

50 Other Reserve (specify)

51 DEVELOPMENT COST (lines 1-49) 12,333,264 2,731,109 9,203,367

52 Less Federally Funded Grant

53 Less Disproportionate Standard

54 Less Nonqualified Nonrecourse Financing

55 Less Historic Tax Credit 0

56 TOTAL ELIGIBLE BASIS 11,934,476 2,731,109 9,203,367

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

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58 Basis Before Boost 11,934,476 2,731,109 9,203,367

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

60 TOTAL QUALIFIED BASIS 11,934,476 2,731,109 9,203,367

61 Tax Credit Rate 3.50 9.00

62 Federal Tax Credits (maximum $1,300,000) 930,720 95,589 828,303

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

64 Land Cost

65 TOTAL REPLACEMENT COST 12,333,264

FEDERAL TAX CREDITS IF AWARDED 930,720

Comments:

Project Development Cost per unit 102,697

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Market Study Information


Please provide a detailed description of the proposed project:
Conversion of the Historic Cherry Hotel currently containing 107 efficiency and one bedroom apartments to
Renaissance Apartments 56 apartments (51 one bedroom and 5 two bedroom apartments)with community
space.

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:
The first floor of the building has what historians refer to as a Beaux Arts entrance that features lions mask
that supported a pressed metal canapy. The building also has a Beaux Arts cornice with molded
modillioned dentiled details. The first floor of the building facing East Nash Street and North Lodge Street is
made of a type of gray stone.

Have you built other tax credit developments that use the same building design as this project?No
If yes, please provide name and address:

Site Amenities:
The Renaissance Hotel is U Shaped as shown on the site plan and has an interior space that will be
converted to a landscaped courtyard with a fountain and sitting area. Brenchs will also be set on the outside
of the building facing East Nash Street and North Lodge Street. The tenants will be able to easily access
sidewalks that will enable them to walk about the downtown area

Onsite Activities:
The apartments will have a multipurpose room with adjoining kitchen, craft room, library/computer room,
exercise room, large furnished lobby area for socializing, a mezzanine sitting area and on site laundry room.

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Landscaping Plans:
The interior courtyard will be landscaped with large planters, the front of the building at the entrance will
also have large planters, the rear of the building near the parking area will be landscaped with schrubs and
flower beds

Interior Apartment Amenities:


The Kitchen will include energy efficient appliances, cabinet pantry, the living area and the bedroom will
have ceiling fans, the bedrooms in most of the apartments will have walk-in or double closets, the
bathrooms will be handicap accessible and the units will be designed with energy efficinet HVAC unts. Six
of the units will be fully handicap accessible with roll in or transfer showers.

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 Wilson Downtown area is continuing to improve and experience reinvestment due to the fact that it is a
Certified Redevelopment Area and a Municipal Service District. These designations translate into $.17 in
additional property taxes for real property in this area that goes to the Wilson Downtown Development
Corporation (WDDC).This money is used by Wilson Downtown Properties, Inc. (WDPI) the development
arm of WDDC, to acquire properties and resell them to investors. This past year WDPI has acquired a
building and sold it to the owners of the Nash Street Grill. WDPI has also purchased an old tobacco
warehouse at 230 Goldsboro Street and is negotiating with a furniture retailer to occupy the building. WDDC
also makes facade loans,provides rent incentives to retailers and grants to investors. The City has invested
more than $10,000,000 over the past 5 years for renovation of the Amtrak Station, construction of the
transportation center,streetscape improvements, new sidewalks, underground utilities. renovation of the
Arts Council building, renovation of Boykin Cultural Center and contributions to Imagination Station and the
Business Incubator.

An exanple of the City cooperating with a restuarant locating downtown is Toreros on 124 East Barnes
Street. The city added addtional street lighting,improved sidewalks in front of the building and removed
parking meters.

To the south of the site across the railroad tracks, within two blocks of the Renaissance Apartments, are
two Churches; St John AME Zion and Jackson Chapel Baptist Church that have been actively improving the
neighborhood. St John acquired and demolished vacant houses in the city block adjacent to the church and
has plans to build a community center for after school tutoring, mentoring,recreation programs and
counseling. Jackson Chapel Baptist Church recently completed a new addition to their church that they also
make available for community services. Presently they provide space for the local weatherization program
that use to be operated by NEED in Wison County. Buildings in the dowtown area range from excellently
restored buildings and new construction to vacant and unused. The buildings adjacent to the Renaissance
are being used and are in good condition. Because of the investment of WDDC and the City the economic
future of the downtown is positive.

Within one half mile of the Renaissance there are 3 affordable elderly apartments, Coon School (75 units),
Varita Court (25 units) and Tasmen Towers (58 units)which are in good condition. A fourth development,
Colonial Apartments, serving a mixture of tenants (30 units) does need improvements.
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 Renaissance Apartments are located in downtown which is
occupied by commercial buildings, government buildings, art buildings, theatrical buildings, library, museums
and churches. The Renaissance is ideally located to serve as an apartment community for seniors.
Residents will be able to take advantage of a variety of services within walking distance. Across the street
from the Apartments is the city bus station which will provide residents easy access to shopping and services
throughout town. One half block from the Apartments on East Nash Street is the Terminal Drug Store, behind
the Apartments on East Green Street is the Wilson Community Health Center operated by the County Health
Department. Also located in the downtown area within one half mile of the Apartments are the following
businesses; clothing shop, dollar store, hair dresser, flower shop,jewelry repair,insurance agency,
restuarants, grocery store, churches, police department, City and County offices, banks and museums. One
of the best assets for the Apartments is the Amtrak Station located across North Lodge Street. The station
has been renovated and has a restaurant and a police substation. The railroad station also provides
residents a place of reflective activity where they can enjoy watching the passengers board the train. Within
two blocks of the Renaissance the land is developed. There are no negative land uses or environmental
conditions in the downtown area which impact the use of the building for aparments for senior citizens.

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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. Adequate traffic controls, speed limits and turn lanes are located on East
Nash Street and North Lodge Street. The City Bus Station is across the Street. The 6 story Apartments will
be clearly visible from the street.
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).
There are no negative conditions which will impede the project or adversely affect future tenants. There will
be adequate parking because the City will lease parking on their lot East of our parking lot to the project.
The building does have a minimal amount of asbestos that will be removed once the building is vacated.
Except for the demolition of interior walls to make the apartments bigger, there is not any excessive
demolition.

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


The 6 story building is the third largest building in town. Many of the other buildings in downtown were built
around the same time as the Cherry Hotel and constructed of similar materials and have unique
architectural features that are not found in modern construction.

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

.5 Grocery Store 1.75 Community/Senior Center

1.5 Mall/Strip Center 1.5 Hospital

1.6 Outdoor Athletic .1 Pharmacy


Fields

.3 Day Care/After .3 Basic Health Care


School

0 Public Transportation
.5 Schools
Stop

1 Convenience Store .5 Public Parks

1 Gas Station .4 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).

https://www.nchfa.org/Rental/RTCApp/(S(cvtbcgj0vg...8CA12953FF2&SNID=4499F736B38C439E8AA52F9F43B68B62 (22 of 22)4/8/2009 1:58:32 PM

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