PLEASE INCLUDE APPLICATION FEE WITH APPLICATION SUBMISSION. Cashier s Check Only

Transcription

1 CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE 2014 COMPETITIVE 9% APPLICATION FOR LOW-INCOME HOUSING TAX CREDITS January 31, 2014 Version II. APPLICATION - SECTION 1: APPLICANT STATEMENT, CERTIFICATION AND NOTARY APPLICANT: PROJECT NAME: Los Angeles Marmion Partners LP Marmion Way Apartments PLEASE INCLUDE APPLICATION FEE WITH APPLICATION SUBMISSION Cashier s Check Only The undersigned applicant hereby makes application to the California Tax Credit Allocation Committee ( TCAC ) for a reservation of Federal, or Federal and State Low-Income Housing Tax Credits ( Credits ) in the amount(s) of: $1,067,460 annual Federal Credits, and $3,198,854 total State Credits for the purpose of providing low-income rental housing as herein described. I understand that Credit amount(s) preliminarily reserved for this project, if any, may be adjusted over time based upon changing project costs and financial feasibility analyses which TCAC is required to perform on at least three occasions. I agree it is my responsibility to provide TCAC with the original complete application and the Local Reviewing Agency an exact copy of the application. I agree that I have included a letter from the local government and the appropriate Local Reviewing Agency of the jurisdiction in which the project is located identifying the agency designated as the Local Reviewing Agency for the Tax Credit Allocation Committee. I agree that it is also my responsibility to provide such other information as TCAC requests as necessary to evaluate my application. I represent that if a reservation or allocation of Credit is made as a result of this application, I will also furnish promptly such other supporting information and documents as may be requested. I understand that TCAC may verify information provided and analyze materials submitted as well as conduct its own investigation to evaluate the application. I recognize that I have an affirmative duty to inform TCAC when any information in the application or supplemental materials is no longer true and to supply TCAC with the latest and accurate information. I acknowledge that if I receive a reservation of Tax Credits, I will be required to submit requisite documentation at each of the following stages: for a carryover allocation; for readiness to proceed requirements, if applicable; and after the project is placed-in-service. I represent I have read Section 42 of the Internal Revenue Code (IRC) pertaining to Federal Tax Credits, and if applying for State Tax Credits, I represent I have also read California Health and Safety Code Sections et seq. and California Revenue and Taxation Code Sections 12206, 17058, and pertaining to the State Tax Credit program. I understand that the Federal and State Tax Credit programs are complex and involve long-term maintenance of housing for qualified low-income households. I acknowledge that TCAC has recommended that I seek advice from my own tax attorney or tax advisor. I represent that I have read and understand the requirements set forth in Regulation Section 10322(j) pertaining to re-applications for Credit. January 31, 2014 Version 1 Application 3/6/2014

2 I certify that I have read and understand the provisions of Sections 10322(a) through (g). No additional documents in support of the basic thresholds or point selection categories shall be accepted from the sponsor beyond the application filing deadline, unless the Executive Director, at his or her sole discretion, determines that the deficiency is a clear reproduction or application assembly error, or an obviously transposed number. In such cases, applicants shall be given up to five (5) business days from the date of receipt of staff notification, to submit said documents to complete the application. For threshold omissions other than reproduction or assembly errors, the Executive Director may request additional clarifying information from other government entities. I agree to hold TCAC, its members, officers, agents, and employees harmless from any matters arising out of or related to the Credit programs. I agree that TCAC will determine the Credit amount to comply with requirements of IRC Section 42 but that TCAC in no way warrants the feasibility or viability of the project to anyone for any purpose. I acknowledge that TCAC makes no representation regarding the effect of any tax Credit which may be allocated and makes no representation regarding the ability to claim any Credit which may be allocated. I acknowledge that all materials and requirements are subject to change by enactment of federal or state legislation or promulgation of regulations. In carrying out the development and operation of the project, I agree to comply with all applicable federal and state laws regarding unlawful discrimination and will abide by all Credit program requirements, rules, and regulations. I acknowledge that neither the Federal nor the State Tax Credit programs are entitlement programs and that my application will be evaluated based on the Credit statutes, regulations, and the Qualified Allocation Plan adopted by TCAC which identify the priorities and other standards which will be employed to evaluate applications. I acknowledge that a reservation of Federal or State Tax Credits does not guarantee that the project will qualify for Tax Credits. Both Federal law and the state law require that various requirements be met on an ongoing basis. I agree that compliance with these requirements is the responsibility of the applicant. I acknowledge that the information submitted to TCAC in this application or supplemental thereto may be subject to the Public Records Act or other disclosure. I understand that TCAC may make such information public. I acknowledge that if I obtain an allocation of Federal and/or State Tax Credits, I will be required to enter into a regulatory agreement which will contain, among other things, all the conditions under which the Credits were provided including the selection criteria delineated in this application. I declare under penalty of perjury that the information contained in the application, exhibits, attachments, and any further or supplemental documentation is true and correct to the best of my knowledge and belief. I certify and guarantee that each item identified in TCAC s minimum construction standards will be incorporated into the design of the project, unless a waiver has been approved by TCAC. I certify that, when requesting a threshold basis increase for development impact fees, the impact fee amounts are accurate as of the application date. In an application proposing rehabilitation work, I certify that all necessary work identified in the Capital Needs Assessment, including the immediate needs listed in the report, will be performed (unless a waiver is granted) prior to the project's rehabilitation completion. I certify and guarantee that the application meets each item of the applicable housing type requirement, as identified by TCAC regulation. I certify and guarantee that any tenant services proposed under TCAC Regulation Section 10325(c)(5)(B) will be available within 6 months of the project's placed in service date, will be of a regular and ongoing nature and provided to tenants for a period of at least 10 years, free of charge (except child care). I understand that misrepresentation may result in cancellation of Tax Credit reservation, notification of the Internal Revenue Service and the Franchise Tax Board, and other actions which TCAC is authorized to take pursuant to California Health and Safety Code Section and negative points per Regulation Section 10325(c)(3) or under general authority of state law. I certify that I believe that the project can be completed within the development budget and the development timetable set forth (which timetable is in conformance with TCAC rules and regulations) and can be operated in the manner proposed within the operating budget set forth. I further certify that more than 10% of the project's total reasonably expected basis cost will be incurred and the land acquired by the date specified in the reservation preliminary or final letter. January 31, 2014 Version 2 Application 3/6/2014

3 Dated this day of, 2014 at, California. By (Original Signature) (Typed or printed name) (Title) STATE OF ) COUNTY OF ) ACKNOWLEDGMENT On personally appeared before me,,, who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) January 31, 2014 Version 3 Application 3/6/2014

4 Local Jurisdiction: City of Los Angeles, Dept of Housing & Community Developmen City Manager: Russmore Cervantes, Interim General Manager * Title: City Manager Mailing 1200 West 7th Street, 8th Floor City: Los Angeles Zip Code: Phone Number: (213) Ext. FAX Number: (213) Rushmore.Cervantes@lacity.org * For City Manager, please refer to the following the website below: January 31, 2014 Version 4 Application 3/6/2014

5 II. APPLICATION - SECTION 2: GENERAL AND SUMMARY INFORMATION A. Application Type Application type: Preliminary Reservation Prior application was submitted but not selected? No If yes, enter application number: TCAC # CA - Has credit previously been awarded? No Is this project a Re-syndication of a current TCAC project? No If yes to either question above, enter the current application number and the amount currently allocated and being returned, if applicable: TCAC # CA - For re-syndications, refer to Regulation Section 10322(k) Federal Credit: for acquisition credit limitations. State Credit: If State Credit is requested, is this State Farmworker Credit? No B. Project Information Project Name: Marmion Way Apartments Site Marmion Way If address is not established, enter detailed description (i.e. NW corner of 26th and Elm) City: Los Angeles County: Los Angeles Zip Code: Census Tract: 1990.l00 Assessor's Parcel Number(s): Project is located in a DDA: Yes Project is located in a Qualified Census Tract: Yes *Federal Congressional District: 34 Project is DDA/QCT but requesting State Credits: No *State Assembly District: 51 Special Needs with 130% basis & State Credits: Yes *State Senate District: 22 Project is a Scattered Site Project: No If yes, all sites within a 5-mile diameter range: *Accurate information is essential; the following website is provided for reference: C. Credit Amount Requested (If State Credit Request, Reg. Sects & 10322(h)(33)) Federal and State $1,067,460 $3,198,854 (federal) (state) *Applicants that selected the option for State credit substitution can still elect to mark Federal only Credits. D. Federal Minimum Set-Aside Election (IRC Section 42(g)(1)) 40%/60% E. Set-Aside Selection (Reg. Section 10315(a)-(e)) Special Needs/SRO F. Housing Type Selection (Reg. Sections 10315(g) & 10325(g)) Special Needs If you selected Special Needs please list the percentage of Special Needs Units: 50% If between 50% and 75%, please specify other housing type construction standards that will be met: Family G. Geographic Area (Reg. Section 10315(h)) Please select your geographic area: City of Los Angeles January 31, 2014 Version 5 Application 3/6/2014

6 II. APPLICATION - SECTION 3: APPLICANT INFORMATION A. Identify Applicant Applicant is the current owner and will retain ownership: Applicant will be or is a general partner in the to be formed or formed final ownership entity: Applicant is the project developer and will be part of the final ownership entity for the project: Applicant is the project developer and will not be part of the final ownership entity for the project: Yes Yes B. Applicant Contact Information Applicant Name: Los Angeles Marmion Partners LP Street Alton Parkway, Suite 375 City: Irvine State: CA Zip Code: Todd A. Deutscher (925) Ext.: Fax: tdeutscher@palmcommunities.com C. Legal Status of Applicant: Limited Partnership Parent Company: Palm Communities If Other, Specify: D. General Partner(s) Information D(1) General Partner Name: PATH Ventures Street 340 N. Madison Avenue City: Los Angeles State: CA Zip Code: John Molloy (323) Ext.: Fax: NA johnm@path.org Nonprofit/For Profit: Nonprofit Parent Company: NA D(2) General Partner Name: PC Los Angeles Marmion Developers LLC Street Alton Parkway, Ste. 375 City: Irvine State: CA Zip Code: Todd A. Deutscher (925) Ext.: Fax: (925) tdeutscher@palmcommunities.com Nonprofit/For Profit: For Profit Parent Company: Palm Communities D(3) General Partner Name: Street City: State: Zip Code: Ext.: Fax: Nonprofit/For Profit: (select one) Parent Company: E. General Partner(s) or Principal Owner(s) Type Joint Venture F. Status of Ownership Entity currently exists If to be formed, enter date: *(Federal I.D. No. must be obtained prior to submitting carryover allocation package) G. Contact Person During Application Process Company Name: Palm Communities Street Alton Parkway, Suite 375 City: Irvine State: CA Zip Code: William Leach (951) Ext.: Fax: (949) wleach@palmcommunities.com Participatory Role: Vice President, Public Finance (e.g., General Partner, Consultant, etc.) January 31, 2014 Version 6 Application 3/6/2014

7 II. APPLICATION - SECTION 4: DEVELOPMENT TEAM INFORMATION A. Indicate and List All Development Team Members Developer: City, State, Zip Fax: D.L. Horn & Associates, LLC Alton Parkway, Ste. 375 Irvine, CA, Todd Deutscher (949) Ext.: tdeutscher@palmcommunities.com Architect: City, State, Zip: Fax: MVE & Partners, Inc Main Street, Suite 800 Irvine, CA, Chris Williams (949) Ext.: cwilliams@mve-architects.com Attorney: City, State, Zip Fax: Goldfarb & Lipman 1300 Clay Street, 9th Floor Oakland, CA Bob Mills (510) Ext.: (510) rmills@goldfarblipman.com General Contractor: City, State, Zip: Fax: Ext.: Tax Professional: City, State, Zip Fax: Cohn & Reznick 3560 Lenox Road, Suite 2800 Atlanta, Georgia, Edward E. Lusk Jr. (404) Ext.: edward.lusk@cohnreznick.com Energy Consultant: City, State, Zip: Fax: Ext.: CPA: City, State, Zip Fax: Cohn & Reznick 3560 Lenox Road, Suite 2800 Atlanta, Georgia, Edward E. Lusk Jr. (404) Ext.: edward.lusk@cohnreznick.com Investor: City, State, Zip: Fax: Ext.: Consultant: City, State, Zip Fax: Ext.: Market Analyst: City, State, Zip: Fax: Concord Group 130 Newport Center Drive Suite 230 Newport Beach, CA, John Shumway (949) Ext.: (949) jshum@theconcordgroup.com Appraiser: City, State, Zip Fax: Lidgard & Associates 3353 Linden Avenue, Suite 200 Long Beach, CA Scott Lidgard (562) Ext.: scott@lingardinc.com Prop. Mgmt. Co.: City, State, Zip: Fax: ConAm Management Corporation 3990 Ruffin Rd Ste 100 San Diego, CA Maria Renteria (818) Ext.: mrenteria@conam.com January 31, 2014 Version 7 Application 3/6/2014

8 CNA Consultant: 2nd Prop. Mgmt Co.: City, State, Zip City, State, Zip: Ext.: Ext.: Fax: Fax: January 31, 2014 Version 8 Application 3/6/2014

9 II. APPLICATION - SECTION 5: PROJECT INFORMATION A. Type of Credit Requested New Construction Yes If yes, will demolition of an existing structure be involved? (may include Adaptive Reuse) If yes, will relocation of existing tenants be involved? Rehabilitation-Only Is this an Adaptive Reuse project? Acquisition & Rehabilitation If yes, please consult TCAC staff to determine the applicable regulatory requirements (new construction or rehabilitation). B. Acquisition and Rehabilitation/Rehabilitation-only Projects If requesting Acquisition Credit, will the acquisition meet the 10-year placed in service rule as required by IRC Sec. 42(d)(2)(B)(ii)? If no, will it meet the waiver conditions of IRC Sec. 42(d)(6)? Will the rehabilitation and/or the income and rent restrictions of Sec. 42 cause relocation of existing tenants? If yes, applicants must submit an explanation of relocation requirements, a detailed relocation plan including a budget with an identified funding source (see Checklist). Age of Existing Structures No. of Existing Buildings No. of Occupied Buildings No. of Existing Units No. of Stories Current Use: C. Purchase Information Name of Seller: Marmion Court LLC Signatory of Seller: Rachel Gerstein Date of Purchase Contract or Option: 8/10/2012 Purchased from Affiliate: No Expiration Date of Option: purchased 1/14 If yes, broker fee amount to affiliate? Purchase Price: $2,500,000 Special Assessment(s): (323) Ext.: Historical Property/Site: No Holding Costs per Month: $12,500 Total Projected Holding Costs: $398,000 Real Estate Tax Rate: D. Project, Land, Building and Unit Information Project Type Single Room Occupancy: Single Family Home: Detached 2, 3, or 4 Family: Housing Cooperative: Tenant Homeownership: One or Two Story Garden: Townhouse/Row House: Condominium: Inner City Infill Site: Yes Two or More Story With an Elevator: Yes if yes, enter number of stories: 4 Two or More Story Without an Elevator: if yes, enter number of stories: One or More Levels of Subterranean Parking: Yes Other: (specify here) E. Land x Feet or 0.69 Acres 30,056 Square Feet If irregular, specify measurements in feet, acres, and square feet: January 31, 2014 Version 9 Application 3/6/2014

10 F. Building Information Total Number of Buildings: 1 Residential Buildings: 1 Community Buildings: 1 Commercial/ Retail Space: If Commercial/ Retail Space, explain: (include use, size, location, and purpose) Are Buildings on a Contiguous Site? Yes If not Contiguous, do buildings meet the requirements of IRC Sec. 42(g)(7)? Do any buildings have 4 or fewer units? If yes, are any of the units to be occupied by the owner or a person related to the owner (IRC Sec. 42(i)(3)(c))? No G. Project Unit Number and Square Footage Total number of units: 49 Total number of non-tax credit units (excluding managers' units) (i.e. market rate units): Total number of units (excluding managers units): 48 Total number of low-income units: 48 Ratio of low-income units to total units (excluding managers units): 100% Total square footage of all residential units (excluding managers units): 42,502 Total square footage of low-income units: 42,502 Ratio of low-income residential to total residential square footage (excluding managers units): 100% Applicable fraction, smaller of unit or square footage ratio (used on "Basis & Credits"): 100% Total community room square footage: 1,790 Total commercial/ retail space square footage: Total common space square footage (including managers units): 941 Total parking structure square footage (excludes car-ports and "tuck under" parking): **Total Square Footage of All Project Structures (excluding commercial/retail): 45,233 *equals: "total square footage of all residential units" + "total community room square footage" + "total common space" + "total parking structure square footage") Total Project Cost per Unit $395,971 Total Residential Project Cost per Unit $395,971 Total Eligible Basis per Unit $310,760 H. Tenant Population Data Completion of this section is required. The information requested in this section is for national data collection purposes, and is not intended for threshold and competitive scoring use; however, the completed table should be consistent with information provided in the application and attachments. Indicate the number of units anticipated for the following populations: Homeless/formerly homeless 24 Transitional housing Persons with physical, mental, development disabilities Persons with HIV/AIDS Transition age youth Farmworker Other: Units w/ tenants of multiple disability type or subsidy layers, etc., briefly explain: For 4% federal applications only: Rural area consistent with TCAC methodology January 31, 2014 Version 10 Application 3/6/2014

11 II. APPLICATION - SECTION 6: REQUIRED APPROVALS & DEVELOPMENT TIMETABLE A. Required Approvals Necessary to Begin Construction Approval Dates Application Submittal Estimated Approval Actual Approval Negative Declaration under CEQA 7/11/2013 7/26/2013 NEPA 11/26/ /18/2013 Toxic Report 8/19/ /1/2014 Soils Report 8/19/ /1/2014 Coastal Commission Approval Article 34 of State Constitution 7/24/2013 Site Plan 7/11/2013 7/26/2013 Design Review 7/11/2013 7/26/2013 Conditional Use Permit Approved or Required Variance Approved or Required Project and Site Information Current Land Use Designation CM - Commercial Manufacturing (allows R3 uses) Current Zoning and Maximum Density [T][Q]CM-1VL, 1 du/800 sf Proposed Zoning and Maximum Density [T][Q]CM-1VL, 1 du/800 sf Does this site have Inclusionary Zoning? No Occupancy restrictions that run with the land due to CUP s or density bonuses? No (if yes, explain here) Building Height Requirements 56 feet 4 inches with density bonus incentive Required Parking Ratio 1:1 all units except manager's 2 bedroom has 2 Is site in a Redevelopment Area? No January 31, 2014 Version 11 Application 3/6/2014

12 B. Development Timetable SITE LOCAL PERMITS CONSTRUCTION FINANCING PERMANENT FINANCING OTHER LOANS AND GRANTS Actual or Scheduled Month / Year Environmental Review Completed 7 / 2013 Site Acquired 1 / 2014 Conditional Use Permit / Variance / Site Plan Review 7 / 2013 Grading Permit 12 / 2014 Building Permit 12 / 2014 Loan Application 1 / 2014 Enforceable Commitment 2 / 2014 Closing and Disbursement 12 / 2014 Loan Application 1 / 2014 Enforceable Commitment 2 / 2014 Closing and Disbursement 6 / 2016 Type and Source: Prop 1C TOD / Application 7 / 2013 Closing or Award 4 / 2016 Type and Source: HCID/LA / Application 8 / 2013 Closing or Award 12 / 2014 Type and Source: AHP / Application 2 / 2014 Closing or Award 12 / 2014 Type and Source: (specify here) / Application / Closing or Award / Type and Source: (specify here) / Application / Closing or Award / Type and Source: (specify here) / Application / Closing or Award / 10% of Costs Incurred 10 / 2015 Construction Start 12 / 2014 Construction Completion 2 / 2016 Placed In Service 2 / 2016 Occupancy of All Low-Income Units 4 / 2016 January 31, 2014 Version 12 Application 3/6/2014

13 III. PROJECT FINANCING - SECTION 1: CONSTRUCTION FINANCING A. Construction Financing List Below All Projected Sources Required To Complete Construction Name of Lender/Source Term (months) Interest Rate Amount of Funds 1) Chase Bank - Construction Loan % $16,170,210 2) HCID/LA - AHTF % $666,964 3) Hudson Capital -Tax Credit Equity $1,880,898 4) D.L. Horn & Assoc. - Deferred Costs $684,509 5) 6) 7) 8) 9) 10) 11) 12) Total Funds For Construction: $19,402,581 1) Lender/Source: Chase Bank - Construction Loan 2) Lender/Source: HCID/LA - AHTF Street 300 South Grand Avenue, Floor 4 Street 1200 W. 7th Street City: Los Angeles, CA City: Los Angeles Contact Name: Raymond Junior Contact Name: Timothy Elliott Phone Number: Ext.: Phone Number:(213) Ext.: Type of Financing: Construction Loan Type of Financing: Soft Debt Is the Lender/Source Committed? Yes Is the Lender/Source Committed? Yes 3) Lender/Source: Hudson Capital -Tax Credit Equity 4) Lender/Source: D.L. Horn & Assoc. - Deferred Costs Street 600 California Street Street Alton Parkway, Suite 375 City: San Francisco City: Irvine, CA Contact Name: Kathy Avanzino Contact Name: Todd A. Deutscher Phone Number:(800) Ext.: Phone Number: Ext.: Type of Financing: Soft Debt Type of Financing: Deferred Developer Fee Is the Lender/Source Committed? Yes Is the Lender/Source Committed? Yes 5) Lender/Source: 6) Lender/Source: Street Street City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No 7) Lender/Source: 8) Lender/Source: Street Street City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No January 31, 2014 Version 13 Application 3/6/2014

14 9) Lender/Source: 10) Lender/Source: Street Street City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No 11) Lender/Source: 12) Lender/Source: Street Street City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No January 31, 2014 Version 14 Application 3/6/2014

15 III. PROJECT FINANCING - SECTION 2: PERMANENT FINANCING A. Permanent Financing List Below All Projected Sources Required To Complete Construction Name of Lender/Source Term (months) Interest Rate Residual Receipts / Deferred Pymt. Annual Debt Service Amount of Funds 1) Chase - Permanent Loan % $54,235 $679,331 2) HCD - Prop 1C TOD % Residual $4,000,000 3) HCIDLA - AHTF % Residual $1,533,928 4) AHP % Deferred $480,000 5) D.L. Horn & Assoc. Def Developer Fee Deferred $170,001 6) 7) 8) 9) 10) 11) 12) Total Permanent Financing: $6,863,260 Total Tax Credit Equity: $12,539,321 Total Sources of Project Funds: $19,402,581 1) Lender/Source: Chase - Permanent Loan Street 300 South Grand Avenue, Floor 4 City: Los Angeles, CA Contact Name: Raymond Junior Phone Number: Ext.: Type of Financing: Perm Loan Is the Lender/Source Committed? Yes 2) Lender/Source: HCD - Prop 1C TOD Street 2020 W. El Camino Ave. City: Sacramento Contact Name: Craig Morrow Phone Number: (916) Ext.: Type of Financing: Soft Loan Is the Lender/Source Committed? Yes 3) Lender/Source: HCIDLA - AHTF Street 1200 W. 7th Street City: Los Angeles Contact Name: Timothy Elliott Phone Number: (213) Type of Financing: Soft Debt Is the Lender/Source Committed? Ext.: Yes 4) Lender/Source: AHP Street 600 California Street City: San Francisco Contact Name: Kathy Avanzino Phone Number: (800) Type of Financing: Soft Debt Is the Lender/Source Committed? Ext.: No 5) Lender/Source: D.L. Horn & Assoc. Def Developer Fee 6) Lender/Source: Street Alton Parkway, Suite 375 Street City: Irvine, CA City: Contact Name: Todd A. Deutscher Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Deferred Developer Fee Type of Financing: Is the Lender/Source Committed? Yes Is the Lender/Source Committed? No 7) Lender/Source: Street 8) Lender/Source: Street City: Contact Name: City: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Is the Lender/Source Committed? No Type of Financing: Is the Lender/Source Committed? No 9) Lender/Source: 10) Lender/Source: January 31, 2014 Version 15 Application 3/6/2014

16 Street Street City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No 11) Lender/Source: 12) Lender/Source: Street Street City: City: Contact Name: Contact Name: Phone Number: Ext.: Phone Number: Ext.: Type of Financing: Type of Financing: Is the Lender/Source Committed? No Is the Lender/Source Committed? No January 31, 2014 Version 16 Application 3/6/2014

17 III. PROJECT FINANCING - SECTION 3: INCOME INFORMATION A. Low Income Units (a) (b) (c) Proposed Monthly Rent (Less Utilities) (d) Total Monthly Rents (b x c) (e) (f) Monthly Rent Plus Utilities (c + e) (g) % of Targeted Area Median Income (h) % of Actual AMI Bedroom Type(s) Number of Units Monthly Utility 1 Bedroom 6 $430 $2,580 $28 $458 30% 30.0% 1 Bedroom 8 $430 $3,440 $28 $458 40% 30.0% 1 Bedroom 6 $430 $2,580 $28 $458 50% 30.0% 1 Bedroom 8 $736 $5,888 $28 $764 50% 50.0% 1 Bedroom 3 $889 $2,667 $28 $917 60% 60.0% 2 Bedrooms 1 $517 $517 $33 $550 30% 30.0% 2 Bedrooms 2 $517 $1,034 $33 $550 40% 30.0% 2 Bedrooms 1 $517 $517 $33 $550 50% 30.0% 2 Bedrooms 4 $884 $3,536 $33 $917 50% 50.0% 2 Bedrooms 1 $1,068 $1,068 $33 $1,101 60% 60.0% 3 Bedrooms 2 $595 $1,190 $41 $636 30% 30.0% 3 Bedrooms 3 $807 $2,421 $41 $848 40% 40.0% 3 Bedrooms 1 $1,019 $1,019 $41 $1,060 50% 50.0% 3 Bedrooms 2 $1,231 $2,462 $41 $1,272 60% 60.0% Total # Units: 48 Total: $30,919 Average: 44.8% B. Manager Units State law requires an onsite manager's unit for projects with 16 or more residential units. TCAC Regulation Section 10327(f)(7)(L) requires at least 1 manager's unit for every 80 residential units. Special Needs projects may demonstrate 24-hour desk staffing in lieu of an onsite manager's unit. (a) (b) Bedroom Number of Type(s) Units 2 Bedrooms 1 (c) Proposed Monthly Rent (Less Utilities) (d) Total Monthly Rents (b x c) Total # Units: 1 Total: No Special Needs project with 24-hour desk staffing January 31, 2014 Version 17 Application 3/6/2014

18 C. Market Rate Units (a) Bedroom Type(s) (b) Number of Units (c) Proposed Monthly Rent (Less Utilities) (d) Total Monthly Rents (b x c) Total # Units: Total: Aggregate Monthly Rents For All Units: Aggregate Annual Rents For All Units: $30,919 $371,028 D. Rental Subsidy Income/Operating Subsidy Complete spreadsheet "Subsidy Contract Calculation" E. Miscellaneous Income Number of Units Receiving Assistance: 24 Length of Contract (years): 15 Expiration Date of Contract: 4/1/2031 Total Projected Annual Rental Subsidy: $136,608 Annual Income from Laundry Facilities: $8,820 Annual Income from Vending Machines: Annual Interest Income: Other Annual Income: (specify here) Total Miscellaneous Income: $8,820 Total Annual Potential Gross Income: $516,456 F. Monthly Resident Utility Allowance by Unit Size (utility allowances must be itemized and must agree with the applicable utility allowance schedule) SRO / STUDIO 1 BR 2 BR 3 BR 4 BR ( ) BR Space Heating: Water Heating: $4 $5 $7 $9 Cooking: $1 $2 $2 $3 Lighting: Electricity: $9 $13 $16 $20 Water:* Other: AC/Misc. City $7 $8 $8 $9 Total: $21 $28 $33 $41 *PROJECTS PROPOSING UNITS WITH INDIVIDUAL WATER METERS MUST INCLUDE A WATER ALLOWANCE. Name of PHA or California Energy Commission Providing Utility Allowances: Housing Authority of the City of Los Angeles January 31, 2014 Version 18 Application 3/6/2014

19 G. Annual Residential Operating Expenses Administrative Advertising: $6,000 Legal: $6,000 Accounting/Audit: $10,000 Security: $24,000 Other: Supplies/Misc. $12,000 Total Administrative: $58,000 Management Total Management: $24,931 Utilities Payroll / Payroll Taxes Maintenance Other Expenses Fuel: Gas: $1,715 Electricity: $11,025 Water/Sewer: $24,500 Total Utilities: $37,240 On-site Manager: $45,000 Maintenance Personnel: $30,000 Other: Payroll Taxes $18,000 Total Payroll / Payroll Taxes: $93,000 Total Insurance: $24,000 Painting: Repairs: $9,800 Trash Removal: $12,250 Exterminating: $2,205 Grounds: $12,250 Elevator: $1,200 Other: Misc. Maint & Repair $1,025 Total Maintenance: $38,730 Other: Furniture Replacement $2,450 Other: Tax & License $1,225 Other: Transit Passes $8,640 Other: (specify here) Other: (specify here) Total Other Expenses: $12,315 Total Expenses Total Annual Residential Operating Expenses: $288,216 Total Number of Units in the Project: 49 Total Annual Operating Expenses Per Unit: $5,881 Total 3-Month Operating Reserve: $122,713 Total Annual Internet Expense (site amenity election): $9,000 * Total Annual Services Amenities Budget (from project expenses): $61,000 * Total Annual Reserve for Replacement: $29,400 * Total Annual Real Estate Taxes: $5,000 * * Please include in the identified lines on THIS page and NOT on any of the line items on Page 18. Please note that these will still need to be included when determining the net cash flow in the 15 year proforma. January 31, 2014 Version 19 Application 3/6/2014

20 H. Commercial Income* Total Annual Commercial/Non-Residential Revenue: Total Annual Commercial/Non-Residential Expenses: Total Annual Commercial/Non-Residential Debt Service: Total Annual Commercial/Non-Residential Net Income: *The Sources and Uses Budget must separately detail apportioned amounts for residential and commercial space. Separate cash flow projections shall be provided for residential and commercial space. Income from the residential portion of a project shall not be used to support any negative cash flow of a commercial portion, and commercial income should not support the residential portion (Sections 10322(h)(14), (22); 10327(g)(7)). January 31, 2014 Version 20 Application 3/6/2014

21 III. PROJECT FINANCING - SECTION 4: LOAN AND GRANT SUBSIDIES A. Inclusion/Exclusion From Eligible Basis Funding Sources If lender is not funding source, list source (HOME, CDBG, etc.) NOT lender. HOME Investment Partnership Act (HOME) Community Development Block Grant (CDBG) RHS 514 RHS 515 RHS 516 RHS 538 HOPE VI McKinney-Vento Homeless Assistance Program MHSA MHP Redevelopment Set-aside Funds Taxable bond financing Included in Eligible Basis Yes/No Amount FHA Risk Sharing loan? No State: (specify here) Local: HCID/LA Yes $1,533,928 Private: (specify here) Other: Prop 1C TOD Yes $4,000,000 Other: AHP Yes $480,000 Other: (specify here) B. Rental Subsidy Anticipated Indicate By Percent Of Units Affected, Any Rental Subsidy Expected To Be Available To The Project. Approval Date: 3/3/2014 Source: ealth Services LA County If Section 8: Project-based contract Percentage: 50.00% Units Subsidized: 24 Amount Per Year: $136,608 Total Subsidy: $2,049,120 Term: 15 Years Approval Date: Source: If Section 8: Percentage: Units Subsidized: Amount Per Year: Total Subsidy: Term: (select one) C. Pre-Existing Subsidies (Acq./Rehab. or Rehab-Only projects) Indicate The Subsidy Amount For Any Of The Following Currently Utilized By The Project. Sec 221(d)(3) BMIR: RHS 514: HUD Sec 236: RHS 515: If Section 236, IRP? RHS 521 (rent subsidy): RHS 538: State / Local: HUD Section 8: Rent Sup / RAP: If Section 8: (select one) HUD SHP: Will the subsidy continue?: No Other: (specify here) If yes enter amount: Other amount: January 31, 2014 Version 21 Application 3/6/2014

22 III. PROJECT FINANCING - SECTION 5: THRESHOLD BASIS LIMIT A. Threshold Basis Limit Unit Size Unit Basis Limit No. of Units (Basis) X (No. of Units) SRO/STUDIO $164,507 1 Bedroom $189, $5,879,925 2 Bedrooms $228, $2,288,000 3 Bedrooms $292,864 8 $2,342, Bedrooms $326,269 TOTAL UNITS: 49 TOTAL UNADJUSTED THRESHOLD BASIS LIMIT: $10,510,837 Yes/No Plus (+) 20% basis adjustment for projects paid in whole or part out of (a) public funds and required by a public awarding body to pay state or Yes federal prevailing wages. List public awarding body(ies): (b) Plus (+) 7% basis adjustment for new construction projects required Yes to provide parking beneath residential units (not "tuck under" parking) or through construction of an on-site parking structure of two or more $735,759 levels. (c) Plus (+) 2% basis adjustment for projects where a day care center is No part of the development. (d) Plus (+) 2% basis adjustment for projects where 100 percent of the No units are for Special Needs populations. (e) Plus (+) up to 10% basis adjustment for projects applying under No Section or Section of these regulations that include one or more of the features in the section: Item (e) Features. (f) Plus (+) the lesser of the associated costs or up to a 15% basis No adjustment for projects requiring seismic upgrading of existing structures, and/or projects requiring toxic or other environmental mitigation as certified by the project architect/ engineer +costs. If Yes, select type: (g) Plus (+) local development impact fees required to be paid to local Yes government entities. Certification from local entities assessing fees Please Enter $685,943 also required. Amount: (h) Plus (+) 10% basis adjustment for projects wherein at least 95% of Yes the project's upper floor units are serviced by an elevator. $1,051,084 TOTAL ADJUSTED THRESHOLD BASIS LIMIT: $12,983,623 HIGH COST TEST Total Eligible Basis Percentage of the Adjusted Threshold Basis Limit $15,227, % Based on information presented in this application, this project is not held to TCAC regulation requirements for high cost projects. January 31, 2014 Version 22 Application 3/6/2014

23 ITEM (e) Features REVIEW REGULATION SECTION 10327(c)(5)(B) PRIOR TO COMPLETING THIS SECTION. THE OPTIONS BELOW ARE PRESENTED WITH ABRIDGED LANGUAGE. 1 Project shall have onsite renewable generation estimated to produce 50% or more of annual electricity use (dwelling and common area meters combined). If combined available roof area is insufficient, project shall have onsite renewable generation based on at least 90% of the available solar accessible roof area. Threshold Basis Limit increase of 5%. 2 Project shall have onsite renewable generation estimated to produce 75% or more of annual common area electricity use. If combined available roof area is insufficient, project shall have onsite renewable generation based on at least 90% of the available solar accessible roof area. Threshold Basis Limit increase of 2%. 3 Newly constructed project buildings shall be 45% or more energy efficient than current Energy Efficiency Standards (CA Code of Regulations, Title 24, Part 6). Threshold Basis Limit increase of 4%. 4 Rehabilitated project buildings shall have an 80% decrease in estimated annual energy use (or improvement in energy efficiency) in the HERS II post rehabilitation. Threshold Basis Limit increase 4%. 5 Irrigated only with reclaimed water, greywater, or rainwater (excluding water used for community gardens). Threshold Basis Limit increase 1%. 6 Community gardens of at least 60 square feet per unit. Permanent site improvements that provide a viable growing space within the project. Threshold Basis Limit increase 1%. 7 Install bamboo, cork, salvaged or FSC-Certified wood, natural linoleum, natural rubber, or ceramic tile in all kitchens, living rooms, and bathrooms (where no VOC adhesives or backing is also used). Threshold Basis Limit increase 1%. 8 Install bamboo, stained concrete, cork, salvaged or FSC-Certified wood, ceramic tile, or natural linoleum in all common areas. Threshold Basis Limit increase 2%. 9 Meet all requirements of the U.S. Environmental Protection Agency Indoor Air Plus Program. Threshold Basis Limit increase 2%. January 31, 2014 Version 23 Application 3/6/2014

24 IV. SOURCES AND USES BUDGET - SECTION 1: SOURCES AND USES BUDGET 1)Chase Permanent Loan 2)HCD - Prop 1C TOD 3)HCIDLA AHT F 4)AHP Permanent Sources 6) 7) 8) 9) 10) 11) 12) SUBTOTAL TOTAL PROJECT COST RES. COST COM'L. COST TAX CREDIT EQUITY 70% PVC for New Const/Rehab LAND COST/ACQUISITION Land Cost or Value Demolition Legal Land Lease Rent Prepayment Total Land Cost or Value Existing Improvements Value $2,500,000 $2,500,000 $2,500,000 $2,500,000 $679,331 $679,331 $1,820,669 $1,820,669 $2,500,000 $2,500,000 2 Off-Site Improvements $85,000 $85,000 $85,000 $85,000 $85,000 Total Acquisition Cost $85,000 $85,000 $85,000 $85,000 Total Land Cost / Acquisition Cost $2,585,000 $2,585,000 $85,000 $679,331 $1,820,669 $2,585,000 Predevelopment Interest/Holding Cost $428,000 $428,000 $428,000 $428,000 Assumed, Accrued Interest on Existing Debt (Rehab/Acq) Other: (Specify) REHABILITATION Site Work Structures General Requirements Contractor Overhead Contractor Profit Prevailing Wages General Liability Insurance Other: (Specify) Total Rehabilitation Costs Total Relocation Expenses NEW CONSTRUCTION Site Work $331,449 $331,449 $331,449 $331,449 $331,449 Structures $7,866,930 $7,866,930 $4,101,671 $1,751,331 $1,533,928 $480,000 $7,866,930 $7,866,930 General Requirements $497,002 $497,002 $497,002 $497,002 $497,002 Contractor Overhead $331,335 $331,335 $331,335 $331,335 $331,335 Contractor Profit $331,335 $331,335 $331,335 $331,335 $331,335 Prevailing Wages General Liability Insurance Hard Cost Contingency $661,014 $661,014 $661,014 $661,014 $661,014 $10,019,065 $10,019,065 $6,253,806 $1,751,331 $1,533,928 $480,000 $10,019,065 $10,019,065 Total New Construction Costs ARCHITECTURAL FEES Design $555,000 $555,000 $555,000 $555,000 $555,000 Supervision Total Architectural Costs $555,000 $555,000 $555,000 $555,000 $555,000 Total Survey & Engineering $600,000 $600,000 $600,000 $600,000 $600,000 CONSTRUCTION INTEREST & FEES Construction Loan Interest $589,487 $589,487 $589,487 $589,487 $371,284 Origination Fee $291,793 $291,793 $291,793 $291,793 $145,896 Credit Enhancement/Application Fee Bond Premium Title & Recording Taxes $1,600 $1,600 $1,600 $1,600 Insurance $236,076 $236,076 $236,076 $236,076 $236,076 Other: (Specify) Other: (Specify) Total Construction Interest & Fees $1,118,956 $1,118,956 $1,118,956 $1,118,956 $753,256 PERMANENT FINANCING Loan Origination Fee Credit Enhancement/Application Fee Title & Recording Taxes Insurance Other: (Specify) $45,000 $45,000 $45,000 $45,000 Other: (Specify) Total Permanent Financing Costs $45,000 $45,000 $45,000 $45,000 Subtotals Forward $15,351,021 $15,351,021 $8,657,762 $679,331 $4,000,000 $1,533,928 $480,000 $15,351,021 $12,012,321 5)D.L. Horn & Assoc. Def Developer Fee 30% PVC for Acquisition January 31, 2014 Version 24 Sources and Uses Budget 3/6/2014

25 IV. SOURCES AND USES BUDGET - SECTION 1: SOURCES AND USES BUDGET TOTAL PROJECT COST RES. COST COM'L. COST TAX CREDIT EQUITY 1)Chase Permanent Loan 2)HCD - Prop 1C TOD 3)HCIDLA AHT F 4)AHP 5)D.L. Horn & Assoc. Def Developer Fee Permanent Sources 6) 7) 8) 9) 10) 11) 12) SUBTOTAL LEGAL FEES Lender Legal Paid by Applicant $130,000 $130,000 $130,000 $130,000 Other: (Specify) Total Attorney Costs $130,000 $130,000 $130,000 $130,000 RESERVES Rent Reserves Capitalized Rent Reserves $60,000 $60,000 $60,000 $60,000 3-Month Operating Reserve $111,713 $111,713 $111,713 $111,713 Other: Transition Reserves $273,216 $273,216 $273,216 $273,216 Total Reserve Costs $444,929 $444,929 $444,929 $444,929 APPRAISAL Total Appraisal Costs $7,350 $7,350 $7,350 $7,350 $7,350 Total Contingency Cost OTHER PROJECT COSTS TCAC App/Allocation/Monitoring Fees $106,713 $106,713 $106,713 $106,713 Environmental Audit Local Development Impact Fees $685,943 $685,943 $685,943 $685,943 $685,943 Permit Processing Fees $335,625 $335,625 $335,625 $335,625 $335,625 Capital Fees Marketing $50,000 $50,000 $50,000 $50,000 Furnishings $222,000 $222,000 $222,000 $222,000 $222,000 Market Study $10,000 $10,000 $10,000 $10,000 $10,000 Accounting/Reimbursables $64,000 $64,000 $64,000 $64,000 $54,000 Soft Cost Contingency $500,000 $500,000 $500,000 $500,000 $450,000 Other: Community Outreach $45,000 $45,000 $45,000 $45,000 Other: Applications Consultant $100,000 $100,000 $100,000 $100,000 $100,000 Other: Construction Management $150,000 $150,000 $150,000 $150,000 $150,000 Other: (Specify) Other: (Specify) Total Other Costs $2,269,281 $2,269,281 $2,269,281 $2,269,281 $2,007,568 SUBTOTAL PROJECT COST $18,202,581 $18,202,581 $11,509,322 $679,331 $4,000,000 $1,533,928 $480,000 $18,202,581 $14,027,239 DEVELOPER COSTS Developer Overhead/Profit $1,200,000 $1,200,000 $1,029,999 $170,001 $1,200,000 $1,200,000 Consultant/Processing Agent Project Administration Broker Fees Paid to a Related Party Const. Oversight by Developer Other: (Specify) Total Developer Costs $1,200,000 $1,200,000 $1,029,999 $170,001 $1,200,000 $1,200,000 TOTAL PROJECT COST $19,402,581 $19,402,581 $12,539,321 $679,331 $4,000,000 $1,533,928 $480,000 $170,001 $19,402,581 $15,227,239 Note: Syndication Costs may not be included as a project cost. Bridge Loan Expense During Construction: Calculate Maximum Developer Fee using the eligible basis subtotals. Total Eligible Basis: $15,227,239 DOUBLE CHECK AGAINST PERMANENT FINANCING TOTALS: $12,539,321 $679,331 $4,000,000 $1,533,928 $480,000 $170,001 1 Required: evidence of land value (see Tab 1). TCAC will not accept a budget with a nominal land value. Please refer to TCAC Regulations and the application checklist for additional information and guidance. Land value must be included in Total Project Cost and Sources and Uses Budget (including donated or leased land). 2 Required: include a detailed explanation of Demolition and Offsite Improvements requirements as well as a cost breakdown in Attachment 12, Construction and Design Description. 70% PVC for New Const/Rehab 30% PVC for Acquisition January 31, 2014 Version 25 Sources and Uses Budget 3/6/2014

26 V. BASIS AND CREDITS - SECTION 1: BASIS AND CREDITS Determination of Eligible and Qualified Basis A. Basis and Credits Ineligible Amounts Subtract All Grant Proceeds Used to Finance Costs in Eligible Basis: Subtract Non-Qualified Non-Recourse Financing: Subtract Non-Qualifying Portion of Higher Quality Units: Subtract Photovoltaic Credit (as applicable): Subtract Historic Credit (residential portion only): 70% PVC for New Construction/ Rehabilitation Total Eligible Basis: $15,227,239 30% PVC for Acquisition Total Ineligible Amounts: Total Eligible Basis Amount Voluntarily Excluded: $4,563,299 Total Basis Reduction: ($4,563,299) Total Requested Unadjusted Eligible Basis: $10,663,940 *Qualified Census Tract (QCT) or Difficult to Develop Area (DDA) Adjustment: 130% 100% Total Adjusted Eligible Basis: $13,863,122 Applicable Fraction: 100% 100% Qualified Basis: $13,863,122 Total Qualified Basis: $13,863,122 **Total Credit Reduction: Total Adjusted Qualified Basis: $13,863,122 *130% boost if your project is located in a DDA or QCT, or Reg. Section 10317(d) as applicable. (Boost is auto calculated from your selection in: II. APPLICATION - SECTION 2: GENERAL AND SUMMARY INFORMATION - B) **to be calculated in: "Points System". See Checklist. B. Determination of Federal Credit New Construction /Rehabilitation Acquisition Adjusted Qualified Basis, After Credit Reduction: $13,863,122 *Applicable Percentage: 7.70% 3.36% Subtotal Annual Federal Credit: $1,067,460 Total Combined Annual Federal Credit: $1,067,460 * Applicants are required to use these percentages in calculating credit at the application stage. January 31, 2014 Version 26 Basis and Credits 3/6/2014

27 C. Determination of Minimum Federal Credit Necessary For Feasibility Total Project Cost Permanent Financing Funding Gap Federal Tax Credit Factor The federal tax credit factor must be between $0.90 and $1.10. $19,402,581 $6,863,260 $12,539,321 $ APPLICANTS ARE NOT PERMITTED TO CALCULATE CREDIT USING A TAX CREDIT FACTOR OUTSIDE OF THIS RANGE; DOING SO CAN RESULT IN APPLICATION DISQUALIFICATION. If your equity pricing is less than $0.90 you must contact TCAC staff to discuss prior to submitting your application. Total Credits Necessary for Feasibility Annual Federal Credit Necessary for Feasibility Maximum Annual Federal Credits Equity Raised From Federal Credit $12,796,505 $1,279,651 $1,067,460 $10,460,066 Remaining Funding Gap $2,079,255 FUNDING GAP MUST NOT EXCEED ZERO UNLESS REQUESTING STATE CREDITS If Applying For State Credit Complete Section (D) & (E) D. Determination of State Credit Adjusted Qualified Basis (only rehabilitation or new construction basis, except in rare cases of At-Risk projects eligible for State Credit on the acquisition basis at the 0.13 factor) Factor Amount Maximum Total State Credit NC/Rehab $10,663,940 Acquisition (.13 if federally-subsidized) 30% 13% $3,199,182 $0 E. Determination of Minimum State Credit Necessary for Feasibility State Tax Credit Factor $ The state tax credit factor must be between $0.60 and $0.75. APPLICANTS ARE NOT PERMITTED TO CALCULATE CREDIT USING A TAX CREDIT FACTOR OUTSIDE OF THIS RANGE; DOING SO CAN RESULT IN APPLICATION DISQUALIFICATION. State Credit Necessary for Feasibility Maximum State Credit Equity Raised from State Credit $3,198,854 $3,198,854 $2,079,255 Remaining Funding Gap January 31, 2014 Version 27 Basis and Credits 3/6/2014

28 VI. POINTS SYSTEM - SECTION 1: POINTS SYSTEM A maximum of 20 points shall be available in combining the cost efficiency, credit reduction, and public funds categories. A. Cost Efficiency/Credit Reduction/Public Funds Maximum 20 Points A(1) Cost Efficiency 20 Points For new construction, at-risk development, or a substantial rehabilitation development where the hard costs of rehabilitation is at least $40,000 per unit. Make a selection: Not Applying for Cost Efficiency Projects total eligible basis that is below the maximum calculated threshold basis limits, including permitted adjustments receives 1 point for each full % below the maximum permitted adjusted threshold basis limits. 1) Project's adjusted threshold basis limits: 2) Project's total eligible basis: 3) Difference in threshold basis limits: 4) Calculated percent below adjusted threshold basis limits: 0% (Rounded down to the nearest whole percent) Total Points for Cost Efficiency: 0 A(2) Credit Reduction Credit Reduction: 0% (1 point for each full % that the qualified basis is reduced) 1) Total Qualified Basis: $13,863,122 2) Credit Percent Reduction 0% 3) Total Qualified Basis Reduction $0 (This figure was rounded up to the nearest whole number on the worksheet "Basis & Credits") 4) Project's Total Adjusted Qualified Basis : $13,863, Points Total Points for Credit Reduction: 0 A(3) Public Funds Section Total committed funds (including assumptions), fee waivers, or value of donated land 1 point for each full % of Total Development Cost (TDC) including the value of any donations or fee waivers $5,533,928 1 Federal, state or local funds 2 Outstanding principal balances of prior existing public or subsidized debt 20 Points IRC 509(a)(1) local community foundation funds --does NOT include charitable foundations Awarded AHP funds Waiver of fees resulting in quantifiable cost savings and not required by federal or state law 3 Land donated by a public entity, or land leased from a public entity 3 Land donated as part of an inclusionary housing ordinance or other negotiated development agreements 4 Public contributions of off-site costs $679,331 5 Private "tranche B" loan points value --calculated in "Final Tie Breaker Self-Score" spreadsheet Total committed funds, fee waivers, or value of donated land: $6,213,259 ***Total project cost: $19,402,581 Percentage of funds versus TDC: 32% (rounded down) 1 All loans must be "soft," having terms (or remaining terms) in excess of 15 years, and below market interest rates, interest accruals, or residual receipts payments for at least the first 15 years of their terms. The maximum below-market interest rate allowed for scoring purposes is 4% simple, or the applicable federal rate if compounding. RHS Section 514 and 515 financing is considered soft debt for purposes of scoring under this category. There must be conclusive evidence presented in the application that any new public funds have been firmly committed as stated in Regulation Section 10325(c)(1)(C). Please see also Checklist Items, Tab 1. January 31, 2014 Version 28 Points System 3/6/2014