Loading...
Village Hill Rental Phase 1 2003 TCBThe The Community B uildevs, Inc. viiaae at Hospital Hall r~ February 20, 2003 Jane Wallis Gumble, Director Department of Housing and Community Development One Congress Street, 10th Floor Boston, MA 02114 RE: VILLAGE AT HOSPITAL HILL ,oRTHAMPTON, MASSACHUSETTS Dear s. imble: We are pleased to submit this application for an annual allocation of $362,700 in Low-Income Housing Tax Credits (LIHTC), $750,000 in State . HOME funds, $1,000,000 in Affordable Housing Program Trust Funds (AHP), and $860,114 in Facilities Consolidation Funds (FCF) for the creation of thirty-three units of mixed-income housing at the Village at Hospital Hill located in the city of Northampton. As part of this application we are also submitting a request from the Commonwealth for 12 project Based Section 8 Vouchers. CHANGES IN PROGRAM This is a resubmission of our application submitted in the last finding round, Fall 2002. For this re-submission we have made some changes to the program. The original application included 52 -units consisting of renovation of two vacant historic buildings and new construction of 19 townhouses. For this application we have reduced the program from 52 units to 33 and eliminated the 1-9 new townhouses. We did this for two reasons as described below. First, we modified the program in response to concerns raised by your review architects over the location of some of the 19 new townhouses located in an area near the backside of the existing Old Main Hospital. While the current Master Plan for the site does not call for retaining this structure, last Fall, TCB and its development partner for the site, MassDevelopment were undertaking a detailed study with members of the Citizens Advisory Committee on the potential reuse of the facility. Concerns were raised that if the structure. were to remain, that the area where some of the townhouses were proposed to be located should be re- thought. Since that time, the Citizens Advisory Committee has voted to maintain the Master Plan as is and allow TCB and MassDevelopment to proceed with plans for demolition subject to the review and approval, of the Department of Environmental Affairs during the MEPA process.. Nevertheless, in response to these earlier concerns, we have eliminated the The Community Builders, Inc. 95 Berkeley Street, Suite 500 Boston, MA 02116.6240 617 695-9595 main fax 617 695.9805 development fax 617 695-9205 legal fax 617 695.9483 finance fax 617 695.9001 TDD 800 545.1833 x183 www.communitybuilders.org Albany Boston Cincinnati Louisville New Haven New York Philadelphia Pittsburgh Providence Springfield Washington D.C. Patrick E. Clancy President 8 Chief Executive Officer February 20, 2003 VILLAGE AT HOSPITAL HILL Page 2 of 4 - townhouse component from this first phase and will undertake the development of those units as part of Phase II. A second reason for modifying the plan was to strengthen the project's overall financial feasibility. The 52-unit project required $1.5 million in gap funding from the Affordable Housing Trust Fund in order to cover all anticipated development costs, well above the program's typical $1 million cap. By dropping scale of the project to 33 units we have been able to reduce the funding needed from AHT to complete the transaction to the $1 million cap. The potential of cuts to the AHT budget lends further support to this decision. We hope that finding will sufficient to be available to the project at this level. PROPOSED CHANGES TO MAXIMIZE SCARCE STATE FUNDING RESOURCES Given the potential of cuts being made to the AHT we would be willing to accept other sources of financing from the Commonwealth in lieu of AHT such as additional LIHTCs, HOME, or FCF, or fiords from the Housing Innovations Fund or Housing Stabilization Fluid. Along these lines we have prepared a brief analysis of changes that could be made to. this proposal that would allow for a more cost effective allocation of limited state resources,::. This" analysis was prepared particularly in regard to finding alternatives to reducing the AHT contribution fiirther from our current request of $1 million. With respect to this project, the FCF money is extremely beneficial because funding regulations allow FCF to cover 50% of Total Development Costs. However, FCF is state bond money and therefore reduces the amount of basis and accordingly the tax credits and associated equity that would be available to the project. As described below and in the attached analysis the use of FCF fiends in this project essentially doubles the need for AHT fiends. If the majority of FCF could be replaced by non-state bond funds, such as HOME monies, the amount of credit available to the project would increase by $63,000 and the projected amount of equity would rise accordingly by $480,000. This would reduce the amount of Trust finding from $1,000,000 to $520,000. Overall this would be a more cost effective use of limited state resources, because the overall requested contribution to this project of state resources would decrease by $480,000 as shown on the attached summary. From a regulatory perspective replacing FCF finds with $750,000 of HOME finds would be challenging as the project already is requesting this sum of money. However, this phase I consists of 2 buildings, one of 11 units and the other of 22 units. An allocation of HOME finds could be made to each building. Please note further that we have analyzed how much additional credit would be necessary to replace all of the AHT money requested. We have included this analysis in the attached for both the model in which $1,000,000 is requested and the model in which only $520,000. is requested. To replace $1 million in AHT finds would require $131,600 in additional credit, and with 79% of the units as low income, an increase in total basis of $2.06 million. Alternatively, a $520,000 AHT request would require $68,500 in additional credit and increase in basis of $1.07 million. f- Albany Boston Cincinnati Louisville New Haven New York Philadelphia Pittsburgh Providence Springfield Washington D.C. February 20, 2003 VILLAGE AT HOSPITAL HILL Page 3 of 4 PROJECT DESCRIPTION \ ) The Village at Hospital Hill is a joint public-private redevelopment project which is the result of over twenty-five years of effort by the Commonwealth, the City of Northampton, elected officials, advocates, and concerned citizens, to provide a forward-looking, economically viable reuse for the core campus of the former Northampton State Hospital, situated on a prominent hilltop west of downtown Northampton, Massachusetts. A full history of the background of this project is included in Exhibit 1. The Community Builders, Inc. (TCB) is working in conjunction with MassDevelopment to create a mixed-use community that consists of affordable and market-rate housing, live-work studios, a child care center, an assisted living facility, and a mix of retail, office, light industrial, research and development/multi-media space. The Master Plan for the site envisions a frill build-out of approximately 476,000 s.£, of mixed-use commercial space, a child care center, a possible community center/ museum area and the development of a 60-80 unit assisted living facility for seniors. The Master Plan also includes 207 residential units, 100 of which would be single-family homes and 107 of which would be mixed income rental housing. Overall, fifty percent of the residential units will be designated as affordable. A total of 75% of the rental units and 25% of the homeownership units will be reserved for low- and moderate-income households. The balance of the units will be rented.or sold at market rates. The rental units will be developed in three phases. i _ PHASE I TCB is now moving forward with the development of Rental Phase I of the Village at Hospital Hill. This phase will consist of 33 new units of rental housing for families and individuals. When complete there will be 16 one bedrooms, 16 two bedrooms, and 1 three bedroom. All of the units will be located in two historically significant buildings; 11 will be in the South Employees Home and 22 will be in the Nurses Dormitory. Units will be targeted as follows: 36% of units will be reserved for households at or below fifty percent of area median income, 43% of units reserved for households between fifty-one percent and sixty percent of AMI, and 21% of units reserved for households above eighty percent of AMI. Of the 33 units, 8 will be reserved for clients of the Department of Mental Health. These are expected to be primarily one-bedroom apartments. Residents of the units will be provided services through a DMH service provider. The Village at Hospital Hill represents a significant milestone for the Commonwealth in taking state surplus land and converting a large percentage of it to affordable housing. TCB is pleased, after many years of planning, to finally bring this project to reality. If approved, this project will represent the first development effort to take surplus state land and use it for affordable housing. 1 If you have any questions or require additional information, please contact Charlie Adams at 617.695.9595. Albany Boston Cincinnati Louisville New Haven New York Philadelphia Pittsburgh Providence Springtieid wasnington u.u. February 20, 2003 VILLAGE AT HOSPITAL HILL Page 4 of 4 Thank you for the opportunity to submit this application. We look forward to working with you l; on this important development. Si ViVe A/esignt & Director of Massachusetts Operations Albany Boston Cincinnati Louisville New Haven New York Philadelphia Pittsburgh Providence Springfield Washington D.C. Analysis of Alternative. Funding Scenario If Trust Funding Not Available Current Basis Available Per $155,000 Can Per Unit 155,000 Number of Tax Credit Units 26 4,030,000 Applicable Rate 9.00% 362,700 Current Basis Available 362,700 Basis w/o Can Less Bond Mone Rehab Basis 6,782,000 Less FCF (Bond Money) (860,000) 5,922,000 Applicable Rate 8.10% 479,682 Applicable Fraction 78.8% 377,931 Current Basis Available w/o Cap 377,931 Basis w/o Can and Reduced Bond Money Rehab Basis 6,782,000 Substitute 750,000 HOME for FCF (110,000) 6,672,000 Applicable Rate 8.10% 540,432 Applicable Fraction 78.8% 425,795 Basis Available w/o Cap and No Bond Money 425,795 Current Protected Equity Current Basis Available. Per Cap 362,700 Projected Raise 0.76 275,652 Term 10 2,756,520 Current Projected Equity 2,756,520 Proiect Equity w/ $750,000 of HOME Instead of FCF Projected Basis 425,795 Projected Raise 0.76 323,604 Term 10 3,236,041 Possible Equity 3,236,041 Current Projected Equity 2,756,520 Possible Equity 3,236,041 Increase 479,521 Current Affordable Housing Trust Request 1,000,000 Increase in Equity 479,521 Revised Request for Trust Funding 520,479 Additional Basis Needed Applicable Rate Applicable Fraction If Trust Request is $_520,000 Additional Credits Needed Trust Request Projected Raise Term Additional Basis Needed Applicable Rate Applicable Fraction Summary Current Request Proposed Increase/(Decrease) HOME $ 750,000 $ 1,500,000 $ 750,000 FCF $ 860,000 $ 110,000 $ (750,000) Trust $ 1,000,000 $ 520,479 $ (479,521) $ (479,521) Additional Credits Needed 131,579 68,484 If Trust Request is $1 million . Additional Credits Needed Trust Request 1,000,000 Projected Raise 0.76 . 1,315,789 Term 10 131,579 Additional Credits Needed Current Credits Requested Total Credits Needed Additional Basis Needed 131,579 362,700 494,279 131,579 8.10% 1,624,431 78.8% 2,061,778 2,061,778 520,000 Additional Basis Needed 0.76 684,211 10 68,421 68,484 8.10% 845,482 78.8% 1,073,112 1,073,112 Feb 19 03 12:05p February 19, 2003 MRyor's Office 587-1275 CITY O NORTHAMPTON Mayor Mary Clare Higgins City Hall 210 Main Street Northampton MA 01060 (413) 587-1249 FAX: (413) 587-1275 mayor(u;city.northampton.ma.us Jane Wallis Gumble, Director Department of Housing and Community Development One Congress Street, 101h Floor Boston, MA 02114 Dear Ms. Gumble: As Mayor of the City of Northampton and Chair of the Northampton State Hospital Citizens Advisory Committee, 1 am pleased to support The Community Builders, Inc.'s application for Low Income Housing Tax Credits for Phase I of the Village at Hospital Hill. This project is part of an overall master plan for development of this site. As such, it has the full support of the City and the Citizens Advisory, Committee. The Northampton State Hospital site has been targeted by the City for community development for over twenty-five years. We are pleased to finally see our plans become a reality. The City of Northampton has provided considerable support for this project. The site was rezoned as a Planned Village District to allow development to occur. The Citizen Advisory Committee and the Planning Board have been actively involved in the design, permitting, and siting of buildings. The Office of Planning & Community Development and the Mayor's Office of Economic Development also have been actively engaged in planning and promoting redevelopment of the site, its staff has provided considerable expertise to The Community Builders. The Mayor's Office of Economic Development will continue to be involved with the project after it is completed in providing services for residents. As you know, the feasibility of rehabilitating the Main Complex has received much attention and study. On October 29, 2002 the CAC voted not to stabilize the Main Complex structure and to proceed under the original Master Plan. The CAC also stated its willingness to consider a Master Plan revision should a viable reuse plan arise for the Main Complex. The City and the CAC are committed to moving forward on the original Master Plan design concept but remain flexible to opportunities put forth by the developers. The City is excited about the development of the mixed-income community at the Village at Hospital Hill. Your support on this application is invaluable in bringing needed investment in affordable housing construction to the area, Sincer ly _l ary Clare iggins / Mayor, City of Northampton Chair, Northampton State Hospital Citizens Advisory Committee p.2 ~1 Narrative Regarding Threshold Characteristics The Village at Hospital Hill Threshold #1: Conformance with Set-Aside Categories Production vs. Preservation This is an application for tax credits and subordinate financing for units that qualify for the production set-aside. Even though all 33 units proposed in this application are located in historic structures, these buildings have been vacant for over two years and accordingly are considered new units. 75% Threshold for Family Housing Approximately 52% (17 of 33) of the units have two or three bedrooms and are intended for families. This is below the 75% threshold. However, 8 units in the project will be targeted to Department of Mental Health (DMH) clientele, for whom one-bedroom units are most appropriate. The set aside of these 8 units is in furtherance of a requirement of the awarding of the development rights for the Northampton State Hospital site, to dedicate at least 15% of all new housing developed at the site to clients of the Department of Mental Health. If these 8 units are not counted, 68% (17 of 25) of the remaining units in the project are dedicated for families. In addition, although all of these units are considered new production, the units will be located im. historic existing buildings. The building have very narrow floor plates malting them fairly inefficient for larger units. The 75 /o threshold can not be achieved therefore due to both programmatic and architectural considerations. Please note that this project represents only Phase I of a three phased development plan for the site that will result in 107 units of rental housing. (An additional 74 units of homeownership will also be built on site). Subsequent phases will be all new construction and will result in a much higher percentage of family traits (2 and 3 bedroom) such that when the entire rental component of the site has been built out, the 75% threshold for family units will be achieved. Not for-Profit TCB is a qualified 501(c)(3) organization. TCB will be the developer and property manager of the project. TCB will create a wholly owned subsidiary which will be the general partner or managing member of a newly created LP or LLC which will be the owner and mortgagor/borrower. Accordingly, credits awarded to this project will count toward the Department's requirement that 10% of all credits awarded be allocated to projects involving a qualified non-profit organization. Threshold #2: Quality of the Site The Northampton State Hospital site represents an ideal location for development of affordable and mixed income housing. TCB will receive the site "clean" of all environmental hazards from Hospital Hill Development LLC. There are no wetlands on this parcel. The redevelopment of the Northampton State Hospital (NSH) represents an enormous opportunity. The central campus sits on a beautiful piece of land, high above Northampton, with extraordinary views of Northampton and the Connecticut River Valley, with the Holyoke Range Page 1 of 5 on the horizon. The site is centrally located in Massachusetts with good access to the major economic centers of the New England states. Further, it will be part of a new vibrant and attractive mixed-use community with jobs, housing, and modest amounts of specialty retail, in close proximity to the educational, cultural, and civic resources of Northampton. The site was visited in the Spring of 2002 by Kate Racer and Joanne McGuirk, and in the Fall of 2002 by other DHCD Staff. Threshold #3: Evidence of Local Support The Village at Hospital Hill has garnered strong local support, as documented and described in detail in Exhibit 5. In particular, the project has received a letter of support from the Chief Elected Official, the Mayor of Northampton, Mary Clare Higgins. The project also has received support from the Citizens Advisory Committee (CAC), in a letter from Mary Clare Higgins in her capacity as Chair of the CAC. Please note that the Mayor's letter reference the recent decision by the CAC to not stabilize the existing Old Main complex and to proceed with the original Master Plan which did not contemplate reuse of this existing structure. The CAC stated its willingness to consider a revision of the Master Plan in the future should a viable reuse plan arise. However, the CAC and the City are committed to moving forward on the original master plan and took the vote to not stabilize the Old Main structure to allow development to proceed and the development team to proceed with plans to demolish Old Main. The City of Northampton has contributed approximately $268,000 in CDBG funds to the overall Master Plan for the Northampton Site, which should serve as a match for funding through this application. Of this $268,000, $75,000 is for direct project expenses and listed in the sources section of this application. (The entire CDBG match is described more particularly below under Threshold #6, and documented in a letter in Exhibit 22.) Equally significant is a letter of support from the Northampton Housing Partnership. The Northampton Housing Partnership serves as the city's coordinating and screening body relative to issues and initial views involving affordable housing. The board is appointed by the Mayor and includes a broad cross-section of public and private sector interests in the community. Exhibit 5 includes additional evidence of support from local, state, and federal officials, including ■ Mary Clare Higgins, Mayor of Northampton ■ Mary Clare Higgins, Chair of the Citizens Advisory Committee ■ Peg Keller, Northampton Housing Partnership ■ United States Senator John F. Kerry ■ United States Congressman Richard E. Neal ■ Massachusetts State Senator Stanley Rosenberg ■ Teri Anderson, Economic Development Coordinator, City of Northampton ■ Wayne Feiden, Northampton Office_of Planning and Development, City of Northampton ■ David Modzelewski, Area Office Housing and Employment Coordinator, Department of Mental Health ■ Christopher Kennedy, Northampton Historical Commission Page 2 of 5 / Various local community organizations who are heavily involved in the planning process have also expressed support for this application (letters included in Exhibit 5, see Threshold #10 below). More specifically, the Northampton community is actively involved in the planning of the development of the site. The Village at Hospital Hill enjoys strong local support which is most clearly demonstrated through the role played by the Citizens Advisory Committee (CAC). The Request for Proposals (RFP) for a Master Plan issued in October of 1997, and the subsequent selection of The Community Builders as the designated developer, was done with the input and approval of the CAC. The CAC is a collaboration of local agencies and organizations from the City of Northampton including representatives from the Chamber of Commerce; the Housing Partnership; the Labor Council; Representatives from the Route 10, Route 66 and Grove Street Neighborhood Associations; the Valley Community Development Corporation; the Alliance for the Mentally Ill; the Franklin/Hampshire Private Industry Council; the Industrial Affairs Council; and the Department of Mental Health. The CAC is chaired by the Mayor of Northampton. Threshold #4: Creditworthiness of Sponsor/Owner TCB is the sponsor and developer of the Village at Hospital Hill. TCB meets all of the stated requirements for creditworthiness as set forth in the 2003 QAP. A certificate that TCB meets the. standards is attached at the end of this section. Threshold #5: Evidence of Site Control On November 2003, title to the entire Northampton State Hospital site was acquired from the Commonwealth by Hospital Hill Development LLC, a single purpose LLC created by TCB to own and develop the site. TCB and MassDevelopment have entered into an Operating Agreement under which MassDevelopment became a majority and managing partner of Hospital Hill Development LLC effective simultaneous with the acquisition of the site. A copy of the LLC operating agreement executed between TCB and MassDevelopment is included under Exhibit 4. TCB has site control for the particular portion of the property that is the subject of this application by virtue of an Option to Purchase, executed between Hospital Hill Development LLC and TCB, also included in Exhibit 4. Threshold #6: Identification of all Financing Sources All financing sources have been identified for this project sufficient to cover development and operating costs. The sources are included in Section 3 of the application and documented in Exhibits 21 through 24. Development Costs The project has already received a commitment from the Federal Home Loan Bank of Boston for a direct subsidy of $313,000 and a subsidized advance which will support construction and permanent financing through PeoplesBank in the amount of $1.073 million. Page 3 of 5 The project also has received a commitment of $75,000 in Community Development Block Grant C (CDBG) monies from the City of Northampton. A letter of support from the Mayor of Northampton is included in Exhibit 22 for these fiends. These funds will be in addition to the CDBG fiinds already provided in support of the Master Plan.for Northampton State Hospital. As described below, the City has already committed a substantial amount of their CDBG fiends to this site - over 60% of their affordable housing resources have been dedicated to this project. Bay state gas will provide financial incentives to the project for energy conservation measures such as windows, insulation, and high efficiency boilers. Bay State's contribution is approximately $52,000. A letter documenting this sum is included in the attached. A letter of interest from Related Capital Company is also included which shows that the Company would be willing to invest 76 cents per tax credit or $2.76 million toward this venture. The remainder of funds necessary to complete this project are the subject of this application. In particular, this application is seeking Facilities Consolidation Funds, State HOME monies, and Affordable Housing Trust Funds in addition to tax credits. The local match for this application is $268,000 in CBDG fiends for both on-site construction costs and off-site infrastructure and demolition expenses. These funds are described in the letter from the Mayor of Northampton attached to Exhibit 22. Operating Costs Funding is sufficient to cover operating costs. The Northampton Housing Authority does not currently have Project Based Section 8 vouchers available. The Authority is very supportive of this project and has indicated a willingness to provide Section 8 vouchers in the future if they become available. A letter of support from Helen Plant of the Housing Authority is included under Exhibit 24 to this effect. As part of this application, therefore we are also requesting an allocation of 12 Project Based Section 8 vouchers from the Commonwealth should such vouchers not be available at the local level. This figure exceeds the 25% cap set by the federal government and the 20% cap set by DHCD. However, units earmarked for elderly and disabled applicants are exempted from the calculation per federal regulations. This application includes a request for 12 Section 8 vouchers of which 8 will be for disabled clients of the Department of Mental Health and the remaining 4 will be available to the general population. These 4 vouchers are below 20% of the units in the development. We recognize that should we receive an allocation of Section 8's from the state that 75% or 9 would be reserved for households below 30% of AMI. TCB has already committed to 3 units below 30% and we would extend this to 9. Units. The remaining Section 8's would be for household up to 50% of AMI. Enclosed per the requirements of the One Stop are 1) A statement certifying all project principals are not excluded from Federal procurement and nonprocurement program, and 2) A draft management plan for managing and maintaining these units. Both are attached in Exhibit 24. Page 4 of 6 ^1 Threshold #7: Status of Compliance Monitoring of Other Tax Credit Projects All Forms 8823 ("Low income Housing Credit Agencies Report of Noncompliance") that have been issued for material and/or continuing, but curable, non-compliance have been addressed in Exhibit 26. Documentation to correct each instance of continuing non-compliance has been provided to Spectrum Enterprises. In addition, TCB has confinned that all compliance monitoring fees have been paid to DHCD. Threshold #8: Good Standing with Respect to Other DHCD Programs To the best of our knowledge, all members of the Development Team are in good standing with DHCD. Specifically, The Community Builders, Inc., is in good standing with DHCD. The architect, Dietz & Company Architects, Inc., we believe is in good standing with DHCD. The possible General Contractors whom will be invited to bid on the project, C.W.C Builders, Inc., D.A. Sullivan & Sons, Consigh Construction, and Fontaine Brothers, Inc., we believe are in good standing with DHCD. Threshold #9: Commitment to Perpetuity Term of Affordability TCB will commit to maintaining the tax credit units in perpetuity. As described in the QAP', TCB will offer the Commonwealth "an opportunity to present a qualified contract as such term is defined in Section 42 of the Internal Revenue Code, for the purchase of the project after expiration of the term of the Agreement." Threshold #10:Tenant Supportive Services TCB will work with a variety of local entities, organizations, employers, city departments, and community groups to ensure that residents have access and opportunity to services, employment, and job training programs. Of the 33 units in the project, 8will be targeted to Department of Mental Health (DMH) clients. Services will be provided to these residents through a third party vender procured by DMH. Amongst the services provided these tenants to help them to maximize their ability to live independently will be budgeting skills, medication administration, employment and training opportunities as well as issues specific to their responsibilities as tenants. The service plan is described in Exhibit 14. A letter from DMH is also attached to Exhibit 5. Because these services are provided by a third party vendor, they are not included in the operating budget. In addition, TCB is working with a number of private, neighborhood, and city departments to provide services and resources to residents of the Village at Hospital Hill. Further description of these services is included in Exhibit 5, Section 2 (Community Involvement in Project). These services will not be part of the total operating cost for the site. Service providers and the services they will provide are documented below. Letters Attached Documenting Supportive or other Services (see Exhibit 5 Teri Anderson, City of Northampton Economic Development - Business Development J JoAnne Campbell, Valley Community Development Corporation Business Development ■ Dave Modzelewski, Department of Mental Health Self-sufficiency 5 of 6 Al Sax, Hampshire Community Action Commission Day Care Services ■ Al Sax, Hampshire Community Action Commission - Development of Child Care Businesses ■ Michael Truclcey, Franldin Hampshire Employment and Training Consortium - Job Training, Career Development JoAnne Campbell, Valley Community Development Corporation - Home buyer counseling ■ JoAnne Campbell, Valley Community Development Corporation - Homeownership counseling Threshold #11: Inclusion of Units for Very Low Income Persons or Families Ten percent of units (3 of 33) are reserved for persons or families earning less than 30% AMI. Page 6 of 6 Certification of Sponsor Creditworthiness I, Beverly Bates, as Senior Vice President of The Community Builders, Inc. do hereby certify that the sponsor meets the thresholds of creditworthiness set for under "Section VII, Threshold #4" of the 2002 Massachusetts Qualified Allocation Plan. Signature) Beverly Bates Senior Vice President The Community Builders, Inc. 02/19/03 (Date) The Community Builders, Inc. 95 Berkeley Street, Suite 500 Boston, MA 02116.6240 617 695-9595 main fax 617 695.9805 development fax 617 695-9205 legal fax 617 695.9483 finance fax 617 695.9001 TDD 800 545.1833 xl 83 www.communitybuildefs.org Albany Boston Cincinnati Louisville New Haven New York Philadelphia Pittsburgh Providence Springfield, Washington D.C. Patrick E. Clancy President 8 Chief Executive Officer VILLAGE AT HOSPITAL HILL, Northampton, Massachusetts Total Possible 182 Estimated 146 FUNDAMENTAL PROJECT CHARACTERISTICS Total Possible 100 Estimated 100 A) DESIGN The design and renovation of The Village at Hospital Hill will conform to all applicable laws, regulations and codes. The renovation will meet the HOME Rental Program Guidelines and Regulations to the extent possible given the existing footprints of the two historic structures. Renovations to the existing strictures will be appropriate to, and consistent with community standards, as well as the surrounding structures and the project site. The re- use of the former state hospital campus will add important resources and create affordable housing in a neglected part of the City. The proposed amenities are ample and appropriate for the target population, but not excessive. A laundry room will be provided in the Nurse's Dorm. Because no common space exists in South Employees Home, hookups for stacked washer/dryer units will be provided in all units. This Phase I of 33 units has no particular environmental issues which require design sensitivity. The Master Plan for the site is based on the concept of an Urban Village, which seeks to favor the pedestrian over the automobile. Accordingly, units have been designed in close proximity to one another and the road to promote pedestrian interaction. The new units which will be constructed in phase II will have front porches to encourage the same so that activity is oriented toward the street. The landscaping will similarly follow the concepts of the urban village. Landscaping will be used in large part to screen parking areas and in common areas such as parks and walking paths. A large part of the campus has already been committed to open space. Parking will be limited to 1 space per 1 bedroom, and 2 spaces for 2 and 3 bedrooms. The South Employees Home and the Nurse's Dorm are brick and masonry wood framed structures built in the 1920s. The entire Northampton State Hospital site is listed on the Historic Register and these two buildings are listed as contributing structures. The interiors of these buildings will be essentially gut rehabilitations; all new plumbing and heating systems will be incorporated into the renovation as will new electrical service. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines Both the new units and the renovations will include sprinkler and fire alarm systems. New energy efficient windows, insulation and draft reduction methods will drastically improve the energy efficiency and comfort of the units. The existing slate roofs will be examined to see if they can be retained. And. every effort will be made to retain them if financially feasible. Some general modifications have been made to the design since the last submission based on comments received from DHCD staff and DHCD's consulting architect Cliff Boehmer of Mostue & Associates. Those changes are as follows: • The dining area in the two, one-bedroom units within the South Home were noted as being too small. The layouts of the Kitchen/Dining/Living areas of these units have been modified to accommodate a larger eating area, as recommended. • As a clarification, the slate roofs of the two buildings planned for renovation are currently specified to be removed and replaced with new fiberglass shingle roofing. If it is determined that the existing slate roofs are salvageable and can be repaired and patched to provide a roof with 30 year lifespan or greater for a similar amount of money, the contract will be revised to allow for the re-use of the slate roofs. For the purposes of this application we have assumed that can not be and new asphalt roofs will be installed as well as new windows. As required, a constriction cost pro forma has been included and signed by Marc Sullivan of D.A. Sullivan Construction. Circulation of traffic during Phase I is a critical issue for design. As, shown in the attached drawings, primary access to and from the site will be along the existing Main Road. A secondary means of egress will be heading west from the South Employee's Home to a connecting road and then south to Route 66 between the community gardens and the Haskell building. Construction tricks will use a portion of this secondary means of egress to travel to and from the Old Main site during demolition to avoid impacting the residential development. A drawing showing the primary, secondary, and construction circulation is included in Exhibit 2. Infrastructure improvements along the Main Road (the primary access) will be made by in coordination with MassDevelopment. MassDevelopment will. be responsible for the road, underground utilities, and the sidewalks. Funding for this work is"expected to come from a CDAG grant that has been filed and is pending with the DHCD. The contractor selected by TCB will tie into utilities that will have been tapped in the street and stubbed at the end of the sidewalk. The cost for this work has been included in the constriction estimate. The contractor will also be responsible fro improving the secondary means of egress from the site. Costs for this work have also been included in the construction estimate. Design: 20/20 The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines DEVELOPMENT TEAM: The development team assembled for this project has extensive successful prior experience in the development, construction and management of complicated tax credit projects. The Community Builders, either directly, or through a subsidiary, will be the project sponsor, developer, owner, mortgagor, and property manager of the Village at . Hospital Hill. The Community Builders will also serve as real estate legal counsel for the proj ect. Project Sponsor, Developer, Owner, and Mortgagor: The Community Builders has developed 19 projects in its Massachusetts offices over the past five years with over $154,500,000 in total development costs and only a .18% variance from projected to actual costs, many of which were complicated tax credit projects (see Exhibit 25). This is an extraordinary performance of completing difficult projects on budget. Many of the Massachusetts developments involved DHCD assistance in some form, and all of them are in good physical and financial condition. Architect: Dietz Company Architects is providing architectural and engineering services. Dietz & Company Architects is a SOMWBA-certified women-owned business. Dietz has extensive experience in providing design, service, teamwork and management / oversight. They have worked on similar tax credit projects in Western Massachusetts for J several years and the quality of their work stands out in the neighborhood. (see Exhibit 27). General Contractors: A general contractor has not yet been selected for this project. TCB has identified four possible well qualified contractors whom will be invited to bid on the work: CWC Builders, Inc., Consigli Constriction Co., Inc., D.A. Sullivan & Sons, Inc., and Fontaine Brothers, Inc. CWC Builders, Inc. is a general contracting firm that has built or renovated residential, commercial and institutional properties valued at nearly one billion dollars in its fifty-six years of business. CWC specializes in historic rescue, adaptive re-use and has also been involved in several housing rehabilitation efforts throughout greater Boston as well as Western Massachusetts. In addition, CWC Builders has worked with TCB previously on certain projects, including Nevins Manor in Metheun, MA. CWC's bonding capacity is valued at $37-42 million dollars annually. Consigli Construction Co., .Inc. is a fourth generation family-owned business. Consigli's representative clients include the Archdiocese of Boston, University of Massachusetts, as well as several other public and private schools in Massachusetts. Consigli is dedicated to its core values established nearly 100 years ago. These values include integrity, ethics, commitment to their work and clients, and stability. Consigh's bonding capacity is $70 million single project within the past three years. _ The Community Builders Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines 1 D.A. Sullivan & Sons, Inc. is a local contracting company based in Northampton. - Sullivan's several projects in Western Massachusetts include the Indian Orchard School in Springfield, MA, for which' Sullivan received a certificate from the Mayor for outstanding achievement in Minority/Women Participation in constriction. Sullivan also contracted for Providence Place, a TCB-sponsored project of 128 elderly units in Holyoke, MA. Sullivan's approximate dollar amount of bonding capacity authored in the past three years is $60 million. Over the past 20 years, Fontaine Brothers, Inc. has been significantly involved in completing over $1 billion of construction throughout Western Massachusetts, with more than half of that amount coming from the construction n of schools. Their projects include: Boland Learning Center, High School of Commerce, High School of Science, Hilton Garden Inn & Pizzeria UNO, Ludlow Community Center, Mead Art Museum, Churchill Homes, Westfield Youth Service Center, Monson High School, Lee Middle School and High School, the UMass Eisenberg School of Management, and Holyoke Community College's Bartley Gym. David P. Fontaine, president of Fontaine Brothers, Inc., has also been president of the Constriction Industry Association of Western Mass. for the past five years, has been a member of the International Masonry Association for seven years, and was recently appointed to the board of Chicopee Savings Bank. See Exhibit 29 for full resumes on all four general contractors. Legal: The Community Builders legal department will provide real estate legal services for the project. TCB legal staff has extensive experience in tax credit and affordable housing projects. Steve Paul of Palmer & Dodge will be the tax attorney for the project. Property Management: The Community Builders Inc. will be the management agent for the project, and has a very successful history managing over 60000 housing units, in Connecticut, Kentucky, Massachusetts, New Jersey and Pennsylvania. Three-quarters of the properties under management are urban and inner-city family developments which administer the full range of subsidy programs and which have been financed with complex funding packages. The remaining quarter is comprised of inner-city and Ural elderly/handicapped properties and commercial space. (See Exhibit 28) All members of the development team have proven financial strength (see Exhibits 30 and 33 for sponsor and general contractor financial information). Total Projected Development Team Score: 20/20 Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines MARKETABILITY: The 2000 US Census reports that there are over 2,062 very low income households (households whose incomes are less than 30% AMI) in Northampton, representing approximately 17.4% of all households. For those very low-income families not already occupying a subsidized housing unit, rent'burden is substantial. Very low income households in Northampton pay more than 30% of their income for rent, excluding those who currently occupy subsidized housing. The only option for lessening this rent burden is either a tenant based or project based rental subsidy. For those households not qualifying for a preference placement, obtaining rental assistance in a timely fashion is difficult. There are currently 343 households on the Northampton Section 8 waitlist and another 62 households on the Northampton Housing Authority's (NHA) waiting list. The waiting list for State and Federal public housing maintained by the NHA as of February 1, 2003 is as follows: ,.,State Waiting List Families on the Waiting List 40 1 BR 17 2 BR 17 . 3 BR 6 Federal Waiting List Families on the Waiting List 33 1 BR 0 2 BR 22 3 BR 11 State `Waiting List Elderly 22 1 BR 22 2 BR 0 Federal Waiting List Elderly on the Waiting List 12 1 BR 12 2 BR 0 Moderate income households may have greater financial capabilities to find and retain housing but lack of housing stock in general is impacting the market. Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines This evidence shows that there is a substantial market for low- and moderate-income housing. Few affordable units are available in the community and a great many households are paying more than 30% of their income for rent. A market study prepared by Bennett-Franklin is included with the application as Exhibit 7. The study concludes that a market does in fact exist for mixed income housing at the Northampton site. Total Projected Marketability Score: 20/20 FINANCIAL FEASIBILITY: All financing sources have been identified for this project sufficient to cover development and operating costs. The sources are included in Section 3 of the application and documented in Exhibits 21 through 24. Development Costs The project has already received a commitment from the Federal Home Loan Bank of Boston for a direct subsidy of $313,000 and a subsidized advance which will support up to $1.073 million in construction and permanent financing through PeoplesBank. The project has also received a commitment for $75,000 in Community Development Block Grant (CDBG) monies from the City of Northampton. A letter of support from the Mayor of Northampton for these funds is included in Exhibit 22. A letter of interest from New Hope Fund is also included which shows that the Company would be willing to invest 76 cents per tax credit or $2.76 million toward this venture. The remainder of Rinds necessary to complete this project are the subject of this application. In particular, this application is seeking Facility Consolidation Funds, HOME monies, and Affordable Housing Trust Funds in addition to tax credits. The local match for this application is $268,000 in CBDG fiends. The use of these funds is documented and described in the letter from the Mayor of Northampton attached to Exhibit 22. Operating Costs Funding is sufficient to cover operating costs. The Northampton Housing Authority does not currently have Project Based Section 8 vouchers available. The Authority is very supportive of this project and has indicated a willingness to provide Section 8 vouchers in the future if they become available. A letter of support from Helen Plant of the Housing J Authority is included under Exhibit 24 to this effect. Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines As part of this application, therefore we are also requesting an allocation of 12 Project Based Section 8 vouchers from the Commonwealth should such vouchers not be available at the local level. This figure exceeds the 25% cap set by the federal government and the 20% cap set by DHCD. However, units earmarked for elderly and disabled applicants are exempted from the calculation per federal regulations. This application includes a request for 12 Section 8 vouchers of which 8 will be for disabled clients of the Department of Mental Health and the remaining 4 will be available to the general population. These 4 vouchers are below 20%0 of the units in the development. We recognize that should we receive an allocation of Section 8's from the state that 75% or 9 would be reserved for households below 30% of AMI. TCB has already committed to 3 units below 30% and we would extend this to 9. Units. The remaining Section 8's would be for household up to 50% of AML Total projected Financial Feasibility score: 20/20 READINESS TO PROCEED: The plan for the Village at Hospital Hill has been sufficiently developed for the project to score well in the Readiness to Proceed category. The following are the key criteria identified in QAP used to determine readiness: site control, zoning, ability to meet 10% test, environmental and historic reviews, and ability to close on financing. Since the application was first submitted in August 2002, additional progress has been made on a number of these components. Site Control TCB has control of the site. On November 25, 2003, title to the entire Northampton State Hospital site was acquired from the Commonwealth by Hospital Hill Development LLC, a single purpose LLC created by TCB to own and develop the site. TCB and MassDevelopment have entered into an Operating Agreement under which MassDevelopment became a majority and managing partner of Hospital Hill Development LLC effective simultaneous with the acquisition of the site. A copy of the LLC operating agreement executed between TCB and MassDevelopment is included under Exhibit 4. TCB has site control for the particular portion of the property that is the subject of this application by virtue of an Option to Purchase, executed between Hospital Hill Development LLC and TCB, also included in Exhibit 4.. Zoning Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines In December, 2001, the city of Northampton amended its zoning ordinances to designate the site of the former Northampton State Hospital as a Planned Village Zone. Under that zoning designation, a mixed use, urban scale, dense development is allowed. The procedure for development projects to proceed under this zoning designation involves three steps: (1) Receipt of a Special Permit for the entire site; (2) Subdivision Plan Approval; and (3) Site Plan Approval. Since the application was submitted last funding round, the first step in the process, the receipt of a Special Permit, has been achieved. A copy of the Special Permit is enclosed in Exhibit 3. TCB and Massdevelopment are currently working on preparing the application for Subdivision Plan approval. Based on the current schedule we anticipate filling the Subdivision Plan within the next 60 days and expect to get approval within 120 days. Once the subdivision plan has been approved, TCB, will file for Site Plan Approval. We currently envision this process taking 90 days to complete. All told the zoning process should be complete within the next six months. Ability to meet 10% test The project will satisfy the 10% test found in the Internal Revenue Code Section 42(h)(1)(E) by incurring a minimum of 12-14 percent of costs on or before the end of the year. These costs include architect design fees, legal and related fees in connection with the real estate transfer, miscellaneous capitalizable general development costs and acquisition costs. Environmental and Historic reviews The redevelopment of the Northampton State Hospital site is subj ect to the requirements of MEPA. The environmental review process for the development of the site was begun in April 2002. As part of that process, the proponents of the development, TCB and MassDevelopment, requested a special review procedure of the Secretary of Environmental Affairs that would allow for the first phase of the development to proceed. The first phase includes the development of 109 units of housing (including all 33 units that are part of this application), and 152,000 sf of commercial space. On Jime 14, 2002, the Secretary of Environmental Affairs issued a certificate authorizing Phase I of the overall development program to process with only minimal environmental mitigation (see attached letter included under Exhibit 2.1) Ability to close on financing Our development team is prepared to mobilize upon notification that we have been approved for State HOME funding, FCF monies, and Trust fiends, and that tax credits have been reserved for this proposal as all other capital funds have been committed. Each member of the team has extensive experience working on HOME and tax credit funded developments. The financing structure has been kept simple to facilitate a speedy loan closing. With all other funding committed for this project in hand (see Exhibits 20, 21 and 22), this project will be ready to proceed if our application is approved. Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines f There are no unusual site conditions that will delay the project. Total projected Readiness to Proceed score: 20/20 Special Project Characteristics Total Possible 66 Estimated 30 \I Official Local Support: Included at the beginning of this application is a Letter of Support from the Chief Elected official of Northampton, the Mayor. A second letter from the Mayor is include in Exhibits 5 and 22 showing Northampton's commitment of current and future CDBG fiinds to the overall Master Plan for the site, in the amount of $268,000. 6/6 points Inclusion in a Comprehensive Neighborhood Revitalization Effort: 6/6 The Village at Hospital Hill Phase I is part of the 1999 Master Plan for the points site which was approved by the Citizens Advisory Committee, a collaboration of local agencies and organizations. The CAC is chaired by the Mayor of Northampton and accordingly is part of a Neighborhood Revitalization effort approved by the City. The CAC includes representatives from the Chamber of Commerce; the Housing Partnership; the Labor Council; Representatives from the Route 10, Route 66 and Grove Street Neighborhood Associations; the Valley Community Development Corporation; the Alliance for the Mentally Ill; the Franklin/Hampshire Private Industry Council; the Industrial Affairs Council; and the Department of Mental Health. The 1999 Master Plan guides the overall planning effort at the Village at Hospital Hill which calls for complete neighborhood revitalization of the NSH.. The Plan calls for 476,000 s.f. of mixed-use commercial space, comprising a mix of retail, office, light industrial, and research & development/multi media space as well as space for live-work studios, a child care center, and the development of a 60-80 unit assisted living facility for seniors. The Master Plan also includes 207 residential units, 100 of which would be single-family homes and 107 of which would be mixed income rental housing. The Plan clearly delineates streets, buildings, uses, common spaces and parking lots. This plan is not located within a qualified census tract. Low Cost Replacement: 0/6 points The QAP specifies that the per uunit cost limit for this type of project is $100,000. Current per unit costs are approximately $215,000. Village at Hospital Hill, Northampton, Massachusetts . Scoring Guidelines Low Soft Cost and Developer Fee: 0/6 points Soft Costs represent 15.78% of the total replacement cost (Total Development Cost less Developer Fee) MBE/WBE Membership on the Development Team 3/6 points The project architect, Dietz & Company Architects, is certified as a Minority/Women's Business Enterprise (SOMWBA). Non-profit Sponsorship: 6/6 points The Sponsor/Developer organization, The Community Builders, Inc. is a 501(c)(3) corporation. Attached please find our Certificate of Exemption in Exhibit 15A: Qualified Non-profit Certification. Minimal Request for DHCD Assistance: 0/6 points Special Needs Groups as Intended Consumers: 0/6 In accordance with the requirements of the LDA, TCB will reserve 8 units in the development for DMH clients (24%); however, these are not enough to qualify for points in this category. Inclusion of Market Rate Units in the Project: 3/6 points 7of the 33 units (21%) will be market-rate. Location in a Community with less than 10% Subsidized Stock: 0/6 points According to DHCD's Subsidized Housing Inventory, updated as of April 24, 2002, Northampton currently has 11.4% of its housing stock as affordable. The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines Conformance with Section 42 Code Preferences Extended Term of Affordability: TCB will probably maintain the tax credit units in perpetuity, but does not want to commit to an extended term of affordability at this time, as sometimes such a declaration creates problems for investors with the back-end. Lowest Income Population to be Served: TCB will rent 3 units or 10% to residents that have incomes equal to less than 30% of the area median income. This qualifies for points in this category Projects Located in Qualified Census Tracts: The Village at Hospital Hill census tract is 8221, which is not a QCT based on 2003 determinations. Bonus Points Total Possible 16 Estimated 16 6/6 points Executive Order 418: The City of Northampton is in compliance with 16/16 Executive Order 418 for fiscal year 2003. points 1-1, The Community Builders, Inc. One Stop2000 Affordable Housing Finance Application [Version 1.17] Section 1 (7) 1 Village at Ho Q Massachusetts the MHP Fund Page 1 PROJECT DESCRIPTION Name and Address of Project 1 Project Name: Village at Hospital Hill - Phase I la Application Completed By: The Community Builders- Charlie Adams lb Original Application Date: 9-5-02 Application Revision Date: 2/20/2003 2 . Project Address: Northampton State Hospital, Route 66 3 . Neighborhood NSH, Census Tract 8221 4 . City/ Town Northampton MA 01060 (state) (zip code) 5 . County HAMPSHIRE 6 . Scattered Sites? No 7.. Is this a qualified census tract? No Enter a census tract 8221.00 8 . Difficult to develop area No QCT information last updated on: 2/14/03 Development Plan 9 Development Type (Please check all that apply.) No New construction No Acquisition, substantial rehab of existing housing No Acquisition, moderate rehab of existing housing No Acquisition, minimal or no rehab of existing housing Yes Adaptive re-use of non-residential structure 10 . Proposed Housing Type Rental (except SRO or Assisted Living, see below) 11 . Project Description: Number of buildings: 2 The Village at Hospital Hill-Phase I Rental will create 33 new units of rental housing, including 16, 1BRs; 16, 2BRs; and 1 Ms. Approximately 79% will be tax credit eligible; the remaining units will be leased at market rates. This project is part of a multi-phased mixed use redevelopment of the Northampton State Hospital. The master plan includes 207 rental and homeownership units and 475,000 sq. ft. of retail and commerical space. The property is distressed; the properties in Phase I have been vacant for 10 years. 12 . Development Schedule: Original Revised Optional user cotnnients Application Date 9-5-02 Z' Z -o Construction Loan Closing 9-1-03 3-1-04 Initial Loan Closing (MHFA only) Construction Start 9-1-03 4-1-04 50% Construction Completion 3-30-04 10-1-04 Construction Completion 9-1-04 4-1-05 First Certificate of Occupancy 6-30-04 2-1-05 Final Certificate of Occupancy 9-30-04 4-1-05 Sustained Occupancy 12-30-04 6-1-05 Permanent Loan Closing 9-1-04 4-1-05 . Hill - Phase 1 All rights reserved. Application Dale: %-J-UL tcevIseu Dude.- ais via vw Section 1. Project . [13. Unit Mix: Pnaa 7 Low-Income Low-Income Low-Income Other Income Market Total .l..f.......ll P- 1/nile I(eniai zissisiea uu- 1-- 0 0 8 5 3 16 4 9 3 16 1 1 0 12 0 14 0 7 33 0 _SRO rQ-,bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms Total Units Home Units* *HOME units included in the above totals SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms J, 1 1 i 14 . Unit Size in square feet: Low-Income Other income=below i JUL ,i,autuu u,~uurc Low-Income Low-Intone Other Income Market Average irr--.. 7-47--.41 P.,,o All hir-nmes icencai fissisieci uc urv ~v.o N/A N/A 600.0 600.0 600.0 .600 906.0 906.0 906.0 906 0.0 0.0 1578.0 1,578 'E- I N/A 15 . Number of bathrooms in each unit: Low-Income Low-Income. . Low-Income Other Income Market Average _,n D.. r,. An h,r mnc iteniai lissisieci oe,uw 1- - - - N/A N/A 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.0 0.0 2.0 2.0 N/A SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 16 . Funding Applied For: Please check all the funding that is being applied for at this time, with this application: DHCD Tax Credit Allocation Yes Category Production Category HOME Funding through DHCD Yes Massachusetts Housing Finance Agency (select all that apply): Official Action Status No Construction Financing/Bridge Financing No Permanent Financing No Massachusetts Housing Partnership (MHP) Fund: Permanent Rental Financing Program No Massachusetts Housing Investment Corporation (select all that apply): Debt Financing No Tax Credit Equity Investment No Boston Department of Neighborhood Development (DND): No Other Yes Other Affordable Housing Trust Other Facilities Consolidation Fund Other Financing from MassDevelopment No cn...,.:,,,/ urn _ Ph- I Application Date: 9-5-02 Revised Date: 212012003 Section 1. Project Descril i I 17 . Number of buildings planned Total a. Single-Family b. 2-4 Family 0 e. Townhouse 0 d. Low/Mid rise 2 e. High-rise 0 f. Other 0 TOTAL 2 New Construction 0 0 S Rehabilitation 2 2 33 18 . Number of units: 33 0] 1 19 . Gross Square Footage a. Residential 44,364 - 44,364 b Commercial 20 . Net Rentable Square Footage: Total Percent of Gross a. Residential 25,674 s.f. 58% b Commercial s. f. N/A 21 Number of handicapped accessible units 2 Percent of total 5% 22 . Fire Code Type I . Concrete frame 23 . Will building(s) include elevators? Yes 24 . Are the following provided with the housing units: a. Range? Yes b. Refrigerator? Yes c. Microwave? No d. Dishwasher? No e. Disposal? No f. Washer/Dryer Hookup? Yes g. Washer & Dryer? No h. Wall-to-wall Carpet? Yes i. Window Air Conditioner? No j. Central Air Conditioning? No 25 . Are the following included in the rent: a. Heat? Yes b. Domestic Electricity? No c. Cooking Fuel? No d. Hot Water? Yes e. Central A/C, if any? No 26 . Type of heating fuel: 27 . Total no. of parking spaces: 44 Outdoor: 44 28 . Number of parking spaces exclusive) for the use of tenants: a. Residential Total: 44 Outdoor: 44 b. Commercial Total: 0 Outdoor: Enclosed: Enclosed: Enclosed: Village at Hospital Hill - Phase I How many? 1 Gas or electric? Electric Nurse's Dorm will have a common laundry facility, and the )lovees Home will have hok-ups forstacked units. Appacarion Lace: r-.,-vz ..-1- 1. - Section 1. 29 . Will rehabilitation require the relocation of existing tenants? 30 . Scope of rehabilitation: Please describe the following (or type N/A). a. Major systems i b. Substandard cc c. Special 4 be replaced: Roof, doors, windows, interior finishes, plumbing, mechanical, electrical editions and structural deficiencies to be repaired: Masonry repair, repair/replacment of exterior concrete stairs, lintel replacement as necessary /ado tations forspecial needs clients to be bousect: New elevator, new ramp to mainentrance, accessible units and common areas 31 . Are energy conservation materials in excess of the Building Code? a. Insulation Yes R-37, Masonry Walls = R-5.5 b. Windows Yes U=.38 c. Heating system Yes R-Value or type? High efficiency, modular gas boilers Information On Site And Existing Buildings I Square Feet Acres 32 . Size of Site: 148,378 3.41 33 . Wetlands area: 34 . Buildable area: 89,026 2.04 Existing Conditions: 35 . What is the present use of the property? 36 . Number of existing structures: 37 . Gross s.f. of existing structures: 38 . If rehabilitation: a. Number of existing residential units/bedrooms: b. Number of units/bedrooms currently occupied: 39 . If site includes commercial space: a. Square footage of existing commercial space: b. Square footage currently occupied: 40 . What are the surrounding land uses? Abandoned 2 44,364 number of units num. of bedrooms 0 0 0 0 0 square feet 0 s uare feet Entire campus has been closed for over ten years; surrounding structures will be renovated in subsequent phases or torn down and replaced by new housing or connnercial space Utilities: 41 . Are the following utilities available on the site: a. Sanitary sewer? No Distance from site (ft.) 500 linear feet b. Storm sewer? No Distance from site (ft.) 500 linear feet c. Public water? No Distance from site (ft.) 500 linear feet d. Electricity? Yes e. Gas? No feet Distance from site (ft.) 1500 linear If any of the above are not available, is plan at tached explaining how such service will be extended to the site? Please attach as part of Exhibit 2 R-;-1 n.np- Ytttuse ut--y....u. out Host. I I F } Section 1. j Zoning: Please include information on the property zoning in Exhibit 3. This should include a zoning map, highlighting any. special use or dimensional restrictions on the property. If the present zoning does not allow for the proposed use, please explain current status and how approvals will be obtained. 42 . Does the present zoning allow the proposed development? Yes 43 . Have you applied for a zoning variance, change,special permit or subdivision? 44 . Do you anticipate applying for a comprehensive permit under Chapter 774? N/A Site Control: 45 . What form of site control do you have? c7 e 46 Include copies of the appropriate site control documents as part of Exhibit 4. Please provide details about your site control agree a. Name of Seller: 12 b. Principals of seller corporation: c. Type of Agreement: d. Agreement Date: e. Expiration Date: E Purchase price if under agreement: g. Is there any identity of interest between buyer and seller? 47 . In the past three years, have there been any defaults on any mortgage on the property or any other forms of financial distress? 48 . Are there any outstanding liens on the property? Amenities and Services: 49 . Please indicate distance from site and locate on city/to wn map (Exhibit 1). Distance a. Shopping facilities 1.00 miles b. Schools 2.00 miles c. Hospitals 2.00 miles d. Parks and recreational facilities 1.00 miles e. Police station 1.00 miles f. Fire station 2.00 miles g. Public transportation 0.50 miles h. Houses of worship 1.00 miles i. City/Town Hall 1.00 miles 1 1165 I No No N/A section]. Project Description Page 6 Environmental Information 50 . Is there any evidence of underground storage tanks or releases of oil No or hazardous materials, including hazardous wastes, on the site or 1 within close proximity to the site? 51 . Has a Chapter 21E assessment been performed? Yes Please include a copy as Exhibit 2 52 . Does the project consist of either: (a) new construction of more than No 100 units; or (b) substantial rehabilitation of more than 200 units, or where more than 10% new floor space is added? 53 . Does the building require lead paint abatement? Yes Lead inspection and a plan for abatement are required and should be included in Exhibit 2. Include information on holy the budget will cover expense of deleading all units, except SRO's. 54 . Does the building require asbestos abatement? No 55 . Do radon tests show radon levels exceeding four picocuries/liter? No r 56 . Is there any evidence that the premises are insulated with urea No formaldehyde foam (UFFI)? 57 . Is the site located in an historic district, or contain buildings listed or Yes eligible for listing in the State Register of Historic Places? A letter of approval front the local or Massachusetts Historical Contntntision is required prior to commitment or closink 58 . Are there any above ground storage containers with flammable or No explosive petroleum products or chemicals within 1/2 mile of the site? 59 . Is the site located in a floodp lain or wetlands area? No 60 . Does the site contain endangered animal or plant species? No 61 . Is the site subject to noise impact from jet airports within five miles, major j highways within 1,000 feet, or rail traffic within 3,000 feet? No ii Village at Hospital Hill - Phase I Application Date: 9-5-02 Revised Date: 212012003 I I One Stop2000 Affordable Housing Finance Application [version 1.171 m Section 2 Page 7 DEVELOPMENT TEAM SUMMARY 62. Developer/Sponsor Type 63 . Developer/Sponsor: Form of Legal Entity Legal Name Address Contact Person E-mail 64. Owner/Mortgagor: Legal Name Address Has this entity already been formed? Principals Principals Contact Person Telephone No. / Fax. No. E-mail 65 . General Partner: Legal Name Address Has this entity already been formed? Principal (if corporate) Contact Person % of Ownership Telephone No. / Fax. No. E-mail 66 . General Partner: Legal Name Address Has this entity already been formed? Principal (if corporate) Contact Person % of Ownership Telephone No. / Fax. No. E-mail Village at Hospital Hill - Phase I. 501 (c) (3) The Community Builders, Inc. 322 Main Street Springfield, MA 01105 Gerald Joseph (413) 737-0207 (413) 731-9790 To Be Determined c/o The Community Builders, Inc. 322 Main Street, Springfield, MA 01105 No Gerald Joseph (413) 737-0207 (413) 731-9790 To Be Determined c/o The Community Builders, Inc. 322 Main Street, Springfield, MA 01105 No Gerald Joseph (413) 737-0207 1 .(413)731-9790 1 Date: 9-5-02 Revised Date: 212012003 . Section 2. Development Team Summary 67 . Development Consultant: Legal Name Address Contact Person Telephone No. / Fax. No. E-mail 68 . Contractor: Name Address Fed Tax ID # Contact Person Telephone No. / Fax. No. E-mail 69 . Architect: Name Address Contact Person Telephone No. / Fax. No. E-mail 70 . Management Agent: Name Address Contact Person Telephone No. / Fax. No. E-mail 71 . Attorney (Real Estate): Name Address Contact Person Telephone No. / Fax. No. E-mail 72. Attorney (Tax): Name Address Contact Person Telephone No. / Fax. No. E-mail 73 . Syndicator: Name Address Contact Person Telephone No. / Fax. No. E-mail Village at Hospital Hill - Phase I 8 Dietz & Company Architects 17 Hampden Street Springfield, MA 01103 Marc Sternick (413) 733-6798 (413)732-4385 n,ares(ccodietzarch. com The Community Builders, Inc. 322 Main Street Springfield, MA 01105 Patrice Leonard (413) 737-0207 (413)731-9790 trishI(@tcbinc.ore The Community Builders, Inc. 95 Berkeley St Boston, MA 02116 Roberta Rubin (617) 695-9595 (617)695-9483 Ro berta Rca tcbi nc. o ra Palmer and Dodge Steve Paul (617) 695-9595 (617) 695-9483 RelajNY Capital Company 625 ison Avenue NY, 10022 Saranen 212 317-5738 (212)317-3546 Application Date: 9-5-02 Revised Date: 212012003 Section 2. Development Team 74. Guarantor: Name Address Contact Person Telephone No. / Fax. No. E-mail 75 . Service Provider or Coordinator: Name Address Contact Person Telephone No. / Fax. No. E-mail 76 . Marketing Agent: Name Address Contact Person Telephone No. / Fax. No. E-mail 77 . Other role Name Address Contact Person Telephone No. / Fax. No. E-mail 78 . Other role Name Address 9 Department of Mental Health P.O. Box 389 Northampton, MA 01061-0389 David W. Modzelewski (413) 587-6200 (413)587-6204 79 . Is there any identity of interest between any members of the development team? Yes ee Below 80 . Please describe the retattonsntp or me aeveroprncuL euuLy w OyULLOUL Ir, ..su.. ~u~=~«~• entity newly-formed or to-be-formed? Is it a single-purpose corporation? How will the parent corporation provide support to this entity? Include an organizational chart showing other affiliates of the parent corporation, as appropriate, and principals of eacn. TCB will-be the developer and property manager. TCB will create a wholly-owned subsidiary which will be the General Partner/Managing Member of the newly created LP/LLC which will be the owner and borrower. Hospital Hill Development LLC, of which TCB is the minority member, is the owner of the entire site and has entered into an Option with TCB to acquire the specific Phase I parcel which is the subject of this application. Contact Person Telephone No. / Fax. No. E-mail Village at Hospital Hill - Phase I Application Date: 9-5-02 Revised Date: 212012003 One Stop2000 Affordable Housing rinance Application [Version 1.171 O Section 3 SOURCES AND USES OF FUNDS Sources of Funds Private Equity: 81 . Developer's Cash Equity - $0 82 . Tax Credit Equity (net amount) (see line 360, Section 5, page 18.) $2,763,424 - 83 . Developer's Fee/Overhead, Contributed or Loaned $209,500 84 . Other Source: $ Public Equity: 85 . HOME Funds, as Grant 86 . Grant: 87 . Grant: $ 88 . Total Public Equity------------------------------------- $0 - -Subordinate Debt (see definition): Amount Rate 89 . 90 . 91 . 92 . 93 . 94 . Page 10 user Amoniz. Tenn FCF, as Subordinate Debt $860,114 0.00% deferred 30 Source: FCF CDBG & Bay State Gas, as Subordinate Debt $127,208 0.00% deferred 30 Source: CDBG & Bay State Gas Trust, as Subordinate Debt $1,000,000 0.00% deferred 30 Source: Tnst AHP, as Subordinate Debt AHP, as $313,000 0.00% deferred 30 _ _ - AHP Home-State, as Subordinate Debt $750,000 4.85 % deferred 30 Source: Home-State Total Subordinate Debt $3,050,322 Permanent Debt (Senior): Amount -k5 . MHFA MHFA Program 1 $ % S . MHFA MHFAProaram2 $ % -97 . MHP Fund Permanent Loan $ % 98 Other Permanent Senior Mortgage $1,072,697 Source: Conventional w/AHP advance Permanent Senior Mortgage Other 99 . $ % - - Source: loo . Total Permanent Senior Debt $1,072,697 tot Total Permanent Sources________ $7,095,943 Construction Period Financing: Amount A 102. Construction Loan Source: Repaid at: (event) 103. Other Interim Loan $o "A Source: Repaid at: (event) S_yndication B__rid e Loan 104. $o°% _ Source_ Repaid at: (event) Village at Hospital Hill - Phase I Override Amoniz. Term MIP % rs. Yrs. % % yrs. yrs. % yrs. yrs. % 4,42% 30.00 20.00 yrs. yrs. % Term Application Date: 9-5-02 Reviser! Date: Uses of Funds The Contractor certifies that, to the best ojtheirknowledge, the construction Direct Construction' estimates, and trade-item breakdown on this page are complete and ccu te. 105 . Who prepared the estimates Mark G. Sullivan Name Signature 106 . Basis for estimates? A B C D Schematics Received 8/13/02 Outline Specs Received=02 Revise 3 DV Trade Item 107. 3 Concrete 108. 4 hfasonry 109. 5 Metals 110 . 6 Rough Carpentry III . 6 Finish Carpentry 112. 7 Waterproofing 113 . 7 Insulation 114. 7 Roofing 115 . 7 Sheet Metal and Flashing 116 . 7 Exterior Siding 117 . 8 Doors 118. 8 Windows 119 . 8 Glass 120 . 9 Lath & Plaster 121. 9 Drywall 122 . 9 Tile Work 123. 9 Acoustical 124 . 9 Wood Flooring. 125. 9 Resilient Flooring 126 9 Carpet 127 . 9 Paint & Decorating 128. 10 Specialties 129 . 11 Special Equipment 130. 11 Cabinets `31. 11 Appliances 132 . 12 Blinds & Shades =133 . 13 Modular/Manufactured 134 . 13 Special Construction 135 _ 14 Elevators or Conveying Syst. 136 . 15 Plumbing & Hot Water 137 . 15 Heat & Ventilation 138 . 15 Air Conditioning 139 15 Fire.Protection 140. 16 Electrical 141. Accessory Buildings 142. Other/misd 143. Subtotal Structural 144. 2 Earth Work 145. 2 Site Utilities 146. 2 Roads & Walks 147. 2 Site Improvement 148. 2 Lawns & Planting 149 2 Geotechnical Conditions 150 2 Environmental Remediation 151 2 Demolition 152. 2 Unusual Site Cond 153. Subtotal Site Work 154. Total Improvements 155. 1 General Conditions 156. Subtotal 157. 1 Builders Overhead / Prof i J58 . I BU1td2TS1nTiir 39 . TOTAL Amnunt 48;600 Nurse 38,400 South luzuu 196,300 Nurse 156,000 South 40,300 97,000 Nurse 66,000 South 31,000 209,000 Nurse 157,000 South 52,000 17T000 Nu 116,000 South 57,000 8,500 74,000 Nurse 52,000 South 22,000 12,500 Nurse 12,500 124 000 Niirc;e 80,000 South 44,000 , 139,000 Nurse 88,000 South 51,000 38,000 Nurse 35,000 South 3,000 ~3,000 Nurse 11,000 South 22,000 245,000 Nurse 167,000 South /6,UUU 29,500 Nurse 17,000 South 12,500 4,500 Nurse 4,500 21 500 Nurge 16,000 South 5,500 , 114,000 Nurse 72,000 South 42,000 190,000 Nurse 127,000 63,000 89,500 Nurse 60,000 South 29,500 68,500 Nurc;e 46,000 South 22,500 22,200 Nurse 14,000 South 8,200 120,000 Nurse 120,000 237,000 Nurse 163,000 South 74,000 259,000 Nurse 178,000 South 81,000 88,500 Nilrc;p 61,000 South 27,500 239,000 Nurse 164;000 South 75,000 k 9 1; 1; $0 W1 1 -r P 9-981,100 Smith 972,400 125,000 90.000 170 000 , 45,000 36,000 447,000 Nurse 295,000 South 152,000 913,000$0 168,500$0 312,638$0 $0 134,434$0 15,572$0 DescriDtion 160 . Total Cost/square foot: N/A Residential Cost/s.£: N/A Village at Hospital Hill -rnase t ga,ctlnn s. Sources and Uses of Funds 12 Development Budget: 161. Acquisition: Land -2 . Acquisition: Building . Acquisition Subtotal 164. Direct Construction Budget 165. Construction Contingency Subtotal: Construction 166 . eve Genera 167. Architecture & E 168. Survey and Perm 169. Clerk of the Wor 170. Environmental E 171. Bond Premium 172. Legal 173. Title and Record 174. Accounting & C 175. Marketing and R 176 Real Estate Taxe 177. Insurance 178. Relocation 179. Appraisal 180. Security 181. Construction Lo 182. Inspecting Engi 183. Fees to: 184. Fees to: 185. No 186. Credit Enhance 187. Letter of Credit -I4 . Other Financing . Development C 190 . Other: 191 . Other: 192 . Soft Cost Conti 193 l nt Costs l D Subtotal: Gen I- ngineering $371,168 $371,167.90 its $15,000 $15,000 ks $25,000 $25,000 ngineer $0 $0 $0 $0 $125,000 $125,000 ing $25,000 $25,000 ost Celt. $20,000 $20,000 ent Up $20,000 $20,000 s $15,000 $15,000 $50,000 $50,000 $0 $0 $5,000 $5,000 $2,000 $2,000 an Interest $42,858 $42,858 eer $10,000 $10,000 Conventional $10,727 $10,727 DHCD $15,000 $15,000 $0 ment Fees $0 Fees $0 Fees $0 onsultant $0 Seed one $16,000 $16,000 Permits and Te $25,000 $25,000 ngency $47,000 $47,000 5.9% of soft costs Dev. $839,753 $839,753 $0 o n 194 . Subtotal: Acquis.,. Const., $5,999,382 $5,999,382 $0 and Gen. Dev. 195. Capitalized Reserves 196. Developer Overhead 197. Developer Fee Note: Includes additional $40,000 per foundation for modular townhouses or $4,615,572 $461,557 $4,615,572 $461,557 $200,000; not on cost certification 10.0% ofconstruction $5,077,129 $5,077,129 $0 $125,812 $125,812 6months ofoperating expense $299,000 $299,000 50% of total fee earned $671,749 $671,749 Paid $299,000 plus $209,500 deferred and $163,249 ur reserves th Total Development Cost 198 $7,095,943 $7,095,943 $0 . 199. TDC, Net $6,760,631 $6,760,631 $0 TDC per unit $215,029 TDC, Net per unit $204,868 Village at Hospital Hill - Phase I Application Dote: 9-5-02 Revised Date: Continents Section 3. Sources and Uses o(Funds Additional Detail on Development Pro-Forma: 200 . Gross Syndication Investment 1 Off-Budget Costs: ndication Costs: S 201 y ndication Legal S . 202 y ndication Fees S . 203 y ndication Consultants S . 204 y e Financing Costs Brid . 205 g Investor Servicing (capitalized) . 06 ndication Expenses Other S . 2 07 y ndication Expense Total S $0 2 . 208. 09 y Current Reserve Balance Reserves (capitalized): ment Reserves Develo 2 . 210 p Initial Rent-Up Reserves . Reserves eratin O $125,812 211. 212 g p Net Worth Account . 213 italized Reserves Other Ca $0 . 214. p Subtotal: Capitalized Reserves $125,812 215. Letter of Credit Requirements i i 216. Total of the Above $125,812 Check: Line 214 is the same as line 195. Please Answer The Following Dev. Reserves Initial Rent-Up Op. Reserves Net Worth Other Letter of Credit Who requires the reserves? Investor Who administers the reserves? Owner When and how are they used? To fund operating deficits Under what circumstances can they be released? When project expenses exceed revenues Unit Sales (For Sale Projects Only): 217. Gross Sales From Units 218 . Cost of Sales Commissi ,ons,_-L etc.) - - - 219 . Net Receipt from Sales_ Debt Service Requirements: 220. Minimum Debt Service Coverage 1.10 - 221. Is this Project subject to HUD Subsidy Layering Review? Yes Village at Hospital Hill - Phase? I yppucaaon mare: r--- One Stop2000 Affordable Housing Finance Application [Version 1.171 m Page 14 Section 4 OPERATING PRO-FORMA Section 4. Operating Pro-Forma Other Operating Income Assumptions: 229. Laundry Income (annual): 230. Other Income:a. U. C. d. e. f. Vacancy Allowance: 231. Low-Income (Rental Assistance) 232. Low-Income (below 50%) 233. Low-Income (below 60%) 234. Other Income (User-defined) 235. Market Rate 236 Commercial Trending Assumptions for Rents: 237. Low-Income (Rental Assistance) 238. Low-Income (below 50%) 239. Low-Income (below 60%) 240. Other Income (User-defined) 241. Market Rate 242 Commercial Space Rental 243. Laundry Income 244 a Other Income b Other Income - c Other Income d Other Income 1 e Other Income J f. Other Income Operating Subsidy and Capitalized 245. Subsidy Source I 246. Subsidy Source II 247. Capitalized Operating Reserve Amoi D 5.0% 5.0% 5.0% user catcuutaons v,.,... a V.-A-1 Yenre 6-20 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.00/( 2.0% % % % % % . % % % % % % % % % % % % % 248 . Yearly Draws on Subsidies and Reserves: Subsidy Subsidy a.....-- 7 .Qnvrr. rr Year l - $0 $ Year 2 $o I s Year 3 $o I s Year 4 $o I s Year 5 $o I s Year 6 $0 $ Year 7 $0 I s Year 8 $o I s Year 9 $0 I s Year 10 $0 I s Year 11 $ Year 12 Year l3 Year 14 Year 15 Year 16 Year l7 Year 18 $0 $ Year 19 $0 $ Year 20 $0 $ Year 21 $0 $ 249 . Annual Operating Income (year 1) $264,560 IS Draw on Uper. icesetve r I$ 137 1 $7 Village at Hospital Hill - Phase / Application Date: 9-5-02 Revised Date: Section 4. Operating Pro-Forma Page 16 Operating Expenses Annual Operating Exp.: Total Residential Commercial Comments 250. Management Fee $14,850 14,850 1.00 1 251. Payroll, Administrative $12,577 $12,577 0.35 252 . Payroll Taxes & Benefits, Admin. $4,144 $4,144 253 . Legal $3,593 $3,593 0.10 254. Audit $5,390 $5,390 0.15 255 . Marketing $1,221 1,221 256 . Telephone $2,875 $2,875 0.08 257 . Office Supplies $2,875 $2,875 0.08 258 . Accounting & Data Processing $5,390 $5,390 0.15 259 . Investor Servicing $0 260 . DHCD Monitoring Fee $924 924 261 . Other: $0 262. Other:Misc $3,234 $3,234 0.09 Subtotal: Administrative 263 $42,223 $42,223 $0 . Maintenance roll Pa 264 $14,773 $14,773 0.35 , y . Admin. roll Taxes &Benefits Pa 265 $4,144 $4,144 , y . Janitorial Materials 266 ig $8,442 $8,442 0.20 . ing Landsca 267 $2,955 $2,955 0.07 p . only) Decorating (inter 268 $2,955 $2,955 0.07 . . & ext.) airs (inter Re 269 $8,442 $8,442 0.20 . p . r Maintenance t El 0 $0 eva o . 27 04 0 Trash Removal 271 $1,688 $1,688 . . Snow Removal 272 $1,688 $1,688 0.04 . Extermination 273 $1,266 $1,266 0.03 . 274. Recreation $0 275. Other:Misc $0 $0 276 . Subtotal: Maintenance $46,353 $46,353 $0 277 . Resident Services $0 1.00 278 . Security $0 279. Electricity $5,115 ll 280 . Natural Gas $28,050 E 281 . Oil $0 282 . Water & Sewer $17,006 l: Utilities 283 . Subtota $50,171 $50,171 $0 284. Replacement Reserve $10,725 10,725 285 . Operating Reserve $0 286 . Real Estate Taxes $9,504 9,504 287 . Other Taxes $0 288 . Insurance $13,200 13,200 289 . N11P $0 $0 290 . Other: $0 291 . Subtotal:Taxes, Insurance $22,704 $22,704 $0 292 . TOTAL EXPENSES $187,026 $187,026 $0 Village at Hospital Hill - Phase 1 Application Date: 9-5-02 Revised Date: Section 4. Operating Pro-Forma Other Operating Expense Assumptions Trending Assumptions for Expenses 293 , Sewer & Water 294. Real Estate Taxes 295 , All Other Operating Expenses 296 297 Reserve Requirements: Replacement Reserve Requiremi Operatine Reserve Requirement Debt Service: per unit per year per unit per year Annual 298. MIIFA MHFA Program 1 N/A 299 . MHFA MIIFA Program 2 N/A 300. MHI' Fund Permanent Loan . 301 . Other Permanent Senior MortaQe $64, 12 Source: N/A 302. Other Permanent Senior Mortgage N/A Source N/A 303. Total Debt Service (Annual) $64,612 304. Net Operating Income $77,534 (in year one) 305. Debt Service Coverage 1.20 (in year one) Affordability: Income Limits and Maximum Allowable Rents 306. County HAMPSHIRE MSA Springfield, MA This MSA does not match the county you have chosen 307. Maximum Allowed Rents, by Income, by Unit Size: Income Limits last updated on 2/14/03 These numbers are estimated numbers. Please compare with HUD numbers and change if necessary. The HUD numbers can be obtained at Nwvw.liuduser.org/datasets/ii.html Maximum Income Maximum Rent (calculated from HUD income data) cno - X00/ 0% SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms JU70 750 $17 $21,300 $0 $444 $533 $0 , 750 $17 $21,300 $0 $533 $0 , $19 $22,800 $0 M $570 $0 , 800 $22 $27,400 $0 $685 $0 , 350 $26 $31,650 $0 $791 $0 , $29,400 $35,300 $0 $883 $0 Area median income for a family of four: $50,700 308 . H.U.D. "Fair Market Rents" (Maximum : 0 bedroom $432 Note: Northampton has excpetion FMRs 1 bedroom $535 2 bedrooms $674 3 bedrooms $843 4 bedrooms 1,037 5 bedrooms $1,193 FMR Information last updated on 2/14/03 at Hospital Hill - Phase I 17 V.- J-S Ynnrv 6-20 3.0% 3-0-/-j 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Application Date: 9-5-02 Revised Date: Section 4. Operating Pro-Forma Operations before this transaction: Current - I 309 310 1 311 312 313 314 315 316 317 318 319 . 320 . 321 . 322 . 323 . 324 . 325 . 326 . 327 . 328 . 329 . 17a (Operations after: Annualized Future Market Boat' Rpnt (-,PR l ype SRO 0 0 0 0 0 0 0 bedroom 1 bedroom 0 16 0 0 0 0 0 16 0 0 0 0 2 bedrooms 16 0 0 16 0 0 3 bedrooms 1 0 0 1 0 0 4 bedrooms tial Re t P G 0 ntal Income 0 0 0 0 0 0 0 en ross o 0% canc V 0 Vacancy 5% y a I h O 0 Other Income' 0 ncome er t I i G 0 Effective Gross Income 0 ncome ross Effect ve erating Expenses O Year Reason % Change Year p ement fee Mana 0 g Administration 0 Maintance/Operations 0 Resident Services 0 0 Security 0 0 Utilities 0 lacement Reserve Re 0 p erating Reserve O 0 p Real Esate Taxes 0 Insurance 0 Total Expenses 0 0 330 . Net Operating Income 331 . Transaction Description: 0 Net. Operating Income O user catctuarnons at Hospital Hill - Phase I Application Date: 9-5-02 Revised Date: One Stop2000 Affordable Housing Finance Application [Version 1.1710 Page Is Section 5 LOW INCOME HOUSING TAX CREDITS Percent of Project Wliich Qualifies for Tax Credit 332. Low-Income Units 26 Total Units: 33 333. Percent of Units 78.8% 334 . Low-Income Square Feet 19,578 s.f. Total Area: 25,696 s.f. 335 . Percent of Area 76.2% 336 . Applicable Percentage 76.2% (This is the lower of lines 333 and 335 above.) 337 . Is the project utilizing tax-exempt financing? No 338 . Does the project qualify for an acquisition credit? Yes 339 . Does the rehabilitation qualify for a 9% rather than 4% credit? Yes 340. How much financing is nonqualified (federally subsidized?) 341. What grant finds must be subtracted from acquisition basis? 342. What grant finds must be subtracted from rehabilitation basis? $860,114 343 . Will the project have a minimum of 20% of units for households earning less than 50% of median, or 40% for less than 60% of median? 40% Of Units Historic Tax Credit: 344. Does the project qualify for historic tax credits? No 345. What are the rehabilitation costs which are not qualified for historic credits? Not Applicable Project Qualification for 130%: 346 . Is the project located in a "qualified census tract" or in a "difficult to No develop" area? Acquisition Calculation of Maximum Tax Credit Amount Credit 347. Total Eligible Development Costs $66,000 348. Less: Portion of Grants Allocated to Basis $0 349. Less: 20% Historic Rehab Credit Basis Reduction $0 350. Less: Nonqualified source of financing $0 351. Subtotal: Eligible Basis $66,000 352. "Hard to develop" area 100% 353. Percent Low-Income 76.2% 354 . Applicable Rate 3.40% 355 . Maximum Annual Tax Credit Amount $1,710 356 . Total Annual Tax Credit Amount $364,739 357 . Estimated Net LIHTC Syndication Yield $ 0.76 rate per $ $2,778,963 358 . Est. Net Historic Tax Credit Syndication Yield $ - rate per $ $0 359 . Total Estimated Net Tax Credit Syndication Yield (based on above) $2,778,963 360 . Applicant's Estimate of Net Tax Credit Equity. Rehabilitation Credit $6,741,801 $860,114 $0 $0 $5,881,687 100% 76.2% 8.10% $363,030 $2,763,424 (from line 82) (Note: This page represents a rough estimate of low incotne credits for which this project may be eligible. It does not represent a final determination. j Village at Hospital Hill - Phase I Application Date: 9-5-02 Revised Date: Section 5. Low Income Housing Tax Credits 19 Percentage of 361. Acquisition: Land 362. Acquisition: Building 363. Acquisition Subtotal 364. Direct Construction Budget 365. Construction Contingency 366. Subtotal: Construction General Development Costs: 367. Architecture & Engi 368. Survey and Permits 369. Clerk of the Works 370. Environmental Engi 371. Bond Premium 372. Legal* 373. Title and Recording 374. Accounting & Cost 375 Marketing and Rent 376 Real Estate Taxes* 377. Insurance 378. Relocation 379. Appraisal 380. Security 381. Construction Loan 382. Inspecting Engineer 383. Financing Fees* 384. Financing Fees* 385. MIP )386. Credit Enhancement 387. Letter of Credit Fees 388. Other Financing Fee 389. Development Consu 390. Other* 391. Other* 392. Soft Cost Continge 393. Subtotal: Gen. De Costs Not Total in Depreciable Residential Basis $16,500 $66,000 $82,500 $4,615,572 $461,557 $5,077,129 Acquisition Rehabilitation Not In Credit Basis Credit Basis Basis $16,500 $66,000 $0 $0 $66,000 $0 $16,500 $0 $4,615,572 $0 $461,557 $0 $5,077,129 $0 neering $371,168 0% $371,168 $0 $15,000 0% $15,000 $0 . $25,000 0% $25,000 $0 eer $0 0% $0 $0 $0 0% $0 $0 $125,000 10% $0 $112,500 $12,500 $25,000 100% $0 $0 $25,000 Certificat. $20,000 0% $0 $20,000 $0 Up* $20,000 100% $20,000 $15,000 0% $0 $15,000 $0 $50,000 0% $0 $50,000 $0 $0 0% $0 $0 $0 $5,000 0% $0 $5,000 $0 $2,000 0% $0 $2,000 $0 nterest* $42,858 10% $0 $38,572 $4,286 $10,000 0% $0 $10,000 $0 Conventional w/A $10,727 100% $0 $0 $10,727 DHCD $15,000 0% $0 $15,000 $0 $0 0% $0 $0 $0 Fees. $0 0% $0 $0 $0 * $0 0% $0 $0 $0 s* $0 0% $0 $0 $0 ltant $0 0% $0 $0 $0 SeedMone $16,000 0% $0 $16,000 $0 Permits and Tests $25,000 0% $0 $25,000 $0 cy* $47,000 0% $0 $47,000 $0 V. $839,753 $0 $767,240 n I n $72,513 394 . Subtotal: Acquis., Const., $5,999,382 and Gen. Dev. 395. Developer Overhead $299,000 396. Developer Fee/Profit $598,432 397. Capitalized Reserves $125,812 398. Total Development Cost $7,095,943 399. Total Net Development Cost $6,760,631 400.. Total Eligible Tax Credit Basis $6,807,801 $66,000 $5,844,369 $89,013 $0 $299,000 $0 $598,432 $0 $0 $0 $125,812 $66,000 $6,741,801 * Some or all of these costs will typically be allocated to intangible assets or expensed. Village at Hospital Hill - Phase I Application Date: 9-5-02 Revised Date: One Stop2000 Affordable Housing Finance Application [Version 1.171 Page A-1 Proj ect Summary Information NOTE: Do not fill out this section. It is automatically filled in b program. Project Name Village t Hospital Hill - Phase I Developer The Community Builders, Inc. Community Northampton Number of Units 33 SRO 0 Low-Income, Rental Assisted 12 0 bedroom 0 Low-Income, Below 50% 0 1 bedroom 16 Low-Income, Below 60% 14 2 bedrooms 16 Other Income (User-defined) 0 3 bedrooms 1 Market Rate 7 4 bedrooms 0 This is an application for: DHCD Tax Credit Allocation Yes HOME Funding through DHCD Yes MHFA Official Action Status No MHFA Construction Financing No MHFA Permanent Financing No MHP Fund Financing No MHIC Construction Loan No MHIC Tax Credit Equity No Boston: DND No Other Affordable Housing Trust Other ................................Facilities Consolidation Fund Other Financing from Massdevelopment No Sources of Funds: Uses of Funds: Developer's Equity $209,500 Acquisition Tax Credit Equity $2,763,424 Construction $82,500 $5,077,129 \ Public Equity $0 $3,050,322 Subordinate Debt General Development Developer Overhead $839,753 $299,000 Permanent Debt $1,072,697 Developer Fee $671,749 Total All Sources $7,095,943 Capitalized ReseIves............ $125,812 Total All Uses $7,095,943 Uses Exceed Sources by ($0) Rent Levels: BR (aver.) SF (aver.) Low-hicome, Rental Assisted $661 Low-Income, Below 50% N/A Low-Income, Below 60% $595 1.3 N/A 1.6 702 N/A 797 Other Income (User-defined) N/A N/A N/A Market Rate $993 1.7 874 Average, All Units $703 1.5 779 Annual Operating Income (year 1): Annual Operating Expense (year 1): Gross rental income (residential) $278,484 Vacancy (resid.) 5.00% $13,924 Management Fee Administrative $14,850 $42,223 Other Income (net of vacancies) $0 Maintenance $46,353 Subtotal $264,560 Res. Service, Security $0 Operating Subsidies $0 Utilities $50,171 Draw on Operating Reserves $o Repl. Reserve $10,725 Total Annual Income $264,560 Oper. Reserve $0 Taxes, Insurance $22,704 Net Operating Income $77,534 Total $187,026 Debt Service $64,612 Debt Service Coverage 1.20 Total per Unit $5,667 Village at Hospital Hill - Phase! Application Date: 9-5-02 Revised Date: vurage n,n Pu-uu.-...v.,~. One Stop2000 Affordable Housing Finance Application [Version 1.171 © Page A-3 21-Year Operating Proforma Years 1-5 NOTE: Do not fill out this section. It is automatically filled in b ro ram. Calendar Year INCOME: Low-Income, Rental Assisted Low-Income, Below 50% Low-Income, Below 60% Other Income (User-defined) Market Rate Gross Potential Income Less vacancy Effective Gross Residential Income Commercial (includes parking) Less vacancy Net Commercial Income Effective Rental Income Other Income: Laundry Other Income: Other Income: Other Income: Other Income: Other Income: Other Income: Total Gross Inconne Operating Subsidies Draw on Operating Reserves Total Effective Intone .EXPENSES: Management Fee Administrative Maintenance Resident Services Security Electrical Natural Gas Oil (heat) Water & Sewer Replacement Reserve Operating Reserve Real Estate Taxes Other Taxes Insurance MIP Other: Total Operating Expenses Year I Year 2 Year 3 2-30-05 #VALUE! #VALUE! Year 4 Year 5 #VALUE! #VALUE! NET OPERATING INCOME Debt Service Debt Service Coverage Project Cash Flow Required Debt Coverage (Gap)/Surplus for Cov. $95,136 $97,039 $98,979 $100,959 $102,978 0 0 0 0 0 99,948 101,947 103,986 106,066 108,187 0 0 0 0 0 83,400 85,068 86,769 88,505 90,275 278,484 284,054 289,735 295,529 301,440 13,924 14,203 14,487 14,776 15,072 264,560 269,851 275,248 280,753 286,368 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 264,560 269,851 275,248 280,753 286,368 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 264,560 269,851 275,248 280,753 286,368 0 0 0 0 0 .0 0 0 0 0 $264,560 $269,851 $275,248 $280,753 $286,368 C 14,850 15,147 15,450 15,759 16,074 42,223 43,489 44,794 46,138 47,522 46,353 47,743 49,176 50,651 52,170 0 0 0 0 0 0 0 0 0 0 5,115 5,268 5,427 5,589 5,757 28,050 28,892 29,758 30,651 31,571 0 0 0 0 0 17,006 17,516 18,042 18,583 19,140 10,725 11,047 11,378 11,719 12,071 0 0 0 0 0 9,504 9,789 10,083 10,385 10,697 0 0 0 0 0 13,200 13,596 14,004 14,424 14,857 0 0 0 0 0 0 0 0 0 0 $187,026 $192,488 $198,111 $203,900 $209,859 $77,534 $77,363 $77,137 $76,853 $76,509. $64,612 $64,612 $64,612 $64,612 $64,612 1.20 1.20 1.19 1.19 1.18 $12,922 $12,751 $12,525 $12,241 $11,897 $71,073 $71,073 $71,073 $71,073 $71,073 $6,461 $6,290 $6,064 $5,780 $5,436 Village at Hospital Hill - Phase! Application Date: 9-5-02 Revised Date: One Slop2000 Affordable Housing Finance Application [Version 1.171 © Page A-4 21-Year Operating Proforma Years 6-10 NOTE: Do not fill out this section. It is automatically filled in b program. Calendar Year: Year 6 Year 7 Year 8 #VALUE! #VALUE! #VALUE! Year 9 Year 10 #VALUE! #VALUE! INCOME: Low-Income, Rental Assisted Low-Income, Below 50% Low-Income, Below 60% Other Income (User-defined) Market Rate . Gross Potential Income Less vacancy Effective Gross Residential Income Commercial Income Less vacancy Net Commercial Income Effective Rental Income Laundry Income Other Income: Other Income: Other Income: Other Income: Other Income: Other Income: Total Gross Income Operating Subsidies Draw on Operating Reserves Total Effective Income EXPENSES: Management Fee Administrative Maintenance Resident Services Security Electrical Natural Gas Oil (heat) Water & Sewer Replacement Reserve Operating Reserve Real Estate Taxes Other Taxes Insurance MIP Other: Total Operating Expenses NET OPERATING INCOME Debt Service Debt Service Coverage Project Cash Flow Required Debt Coverage (Gap)/Surplus for Cov. Village at Hospital Hill - Phase I $105,038 $107,139 $109,281 $111,467 $113,696 0 0 0 0 0 110,351 112,558 114,809 117,105 119,447 0 0 0 0 0 92,080 93,922 95,800 97,716 99,671 307,469 313,618 319,891 326,288 332,814 15,373 15,681 15,995 16,314 16,641 292,095 297,937 303,896 309,974 316,173 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 292,095 297,937 303,896 309,974 316,173 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 292,095 297,937 303,896 309,974 316,173 0 0 0 0 0 0 0 0 0 0 $292,095 $297,937 $303,896 $309,974 $316,173 16,396 16,724 17,058 17,399 17,747 48,948 50,416 51,929 53,487 55,091 53,736 55,348 57,008 58,718 60,480 0 0 0 0 0 0 0 0 0 0 5,930 6,108 6,291 6,480 6,674 32,518 33,493 34,498 35,533 36,599 0 0 0 0 0 19,715 20,306 20,915 21,543 22,189 12,433 12,806 13,190 13,586 13,994 0 0 0 0 0 11,018 11,348 11,689 12,039 12,401 0 0 0 0 0 15,302 15,761 16,234 16,721 17,223 0 0 0 0 0 0 0 0 0 0 $215,994 $222,310 $228,812 $235,506 $242,397 $76,101 $75,627 $75,084 $74,468 $73,776 $64,612 $64,612 $64,612 $64,612 $64,612 1.18 1.17 1.16 1.15 1.14 $11,489 $11,015 $10,472 $9,856 $9,164 $71,073 $71,073 $71,073 $71,073 $71,073 $5,028 $4,554 $4,011 $3,395 $2,703 Application Date: 9-5-02 Revised Date: One Stop2000 Affordable Housing Finance Application [Version 1.17] © Page A-5 21-Year Operating Proforma Years 11 -15 NOTE: Do not fill out this section. It is automatically filled in b program. Year 11 Year 12 Year 13 Year 14 Year 15 Calendar Year: #VALUE! #VALUE! #VALUE! #VALUE! VALUE! INCOME: Low-Income, Rental Assisted Low-Income, Below 50% Low-Income, Below 60% Other Income (User-defined) Market Rate Gross Potential Income Less vacancy Effective Gross Residential Income Commercial (includes parking) Less vacancy Net Commercial Income Effective Rental Income Other Income: Laundry Other Income: Other Income: Other Income: Other Income: Other Income: Other Income: Total Gross Income Operating Subsidies Draw on Operating Reserves Total Effective Income EXPENSES: Management Fee Administrative Maintenance Resident Services Security Electrical Natural Gas Oil (heat) Water & Sewer Replacement Reserve Operating Reserve Real Estate Taxes Other Taxes Insurance MIP Other: Total Operating Expenses NET OPERATING INCOME Debt Service Debt Service Coverage Project Cash Flow Required Debt Coverage (Gap)/Surplus for Cov. $115,970 $118,290 $120,655 $123,069 $125,530 0 0 0 0 0 121,836 124,273 126,758 129,293 131,879 0 0 0 0 0 101,664 103,697 105,771 107,887 110,045 339,470 346,260 353,185 360,249 367,454 16,974 17,313 17,659 18,012 18,373 322,497 328,947 335,526 342,236 349,081 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 322,497 328,947 335,526 342,236 349,081 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 322,497 328,947 335,526 342,236 349,081 0 0 0 0 0 0 0 0 945 2,137 $322,497 $328,947 $335,526 $343,181 $351,218 C 18,102 18,464 18,833 19,263 19,714 56,744 58,446 60,200 62,006 63,866 62,294 64,163 66,088 68,071 70,113 0 0 0 0 0 0 0 0 0 0 6,874 7,080 7,293 7,512 7,737 37,697 38,828 39,993 41,192 42,428 0 0 0 0 0 22,855 23,540 24,246 24,974 25,723 14,414 14,846 15,291 15,750 16,223 0 0 0 0 0 12,773 13,156 13,550 13,957 14,376 0 0 0 0 0 17,740 18,272 18,820 19,385 19,966 0 0 0 0 0 0 0 0 0 0 $249,492 $256,795 $264,314 $272,109 $280,145 $73,005 $72,152 $71,211 $71,073 $71,073 $64,612 $64,612 $64,612 $64,612 $64,612 1.13 1.12 1.10 1.10 1.10 $8,393 $7,540 $6,599 $6,461 $6,461 $71,073 $71,073 $71,073 $71,073 $71,073 $1,932 $1,078 $138 $0 $0 Village at Hospital Hill - Phase I Application Date: 9-5-02 Revised Date: One Stop2000 Affordable Housing Finance Applicalion [Version 1.17] 21-Year Operating Proforma Years 16-21 NOTE: Do not fill out this section. It is automatically filled in b program. Year 16 Year 17 Year 18 Year 19 Calentla Yea: #VALUE! #VALUE! #VALUE! #VALUE! .;COME. Low-Income, Rent. Astd. Low-Income, Below 50% Low-Income, Below 60% Other Income (User-defined) Market Rate Gross Potential Income Less vacancy Eff. Gross Res. Income Commercial Income Less vacancy Net Commercial Income Effective Rental Income Other Income: Laundry Other 1 Other I C Other 1 Other 1 OtherI Other I C Total Gross Income Operating Subsidies Draw on Operating Res. Total Effective Income Fee Services Natural Gas Oil (heat) Water & Sewer Replacement Reserve Operating Reserve Real Estate Taxes Other Taxes Insurance Total Operating Expenses NET OPER. INC. $71,073 $71,073 $71,073 $71,073 $71,073 $60,088 Debt Service Debt Service Coverage Project Cash Flow Required Debt Coverage $71,073 $71,073 $71,073 $71,073 $71,073 $0 (Gap)/Surplus for Cov. ($0 $0 $0 $0 $0 $60,088 A-6 Year 20 Year 21 #VALUE! #VALUE! $128,041 $130,601 $133,213 $135,878 $138,595 $141,367 0 0 0 0 0 0 134,517 137,207 139,951 142,750 145,605 148,517 0 0 0 0 0 0 112,245 114,490 116,780 119,116 121,498 123,928 374,803 382,299 389,945 397,744 405,699 413,813 18,740 19,115 19,497 19,887 20,285 20,691 356,063 363,184 370,448 377,857 385,414 393,122 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 356,063 363,184 370,448 377,857 385,414 393,122 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 356,063 363,184 370,448 377,857 385,414 393,122 0 0 0 0 0 0 3,433 4,838 6,356 7,992 9,751 0 $359,496 $368,022 $376,804 $385,849 $395,165 $393,122 20,179 20,657 21,150 21,658 22,181 22,066 65,782 67,755 69,788 71,881 74,038 76,259 72,216 74,383 76,614 78,912 81,280 83,718 0 0 0 0 0 0 0 0 0 0 0 0 7,969 8,208 8,454 8,708 8,969 9,238 43,701 45,012 46,362 47,753 49,186 50,661 0 0 0 0 0 0 26,495 27,290 28,108 28,952 29,820 30,715 16,709 17,210 17,727 18,259 18,806 19,371 0 0 0 0 0 0 14,807 15,251 15,709 16,180 16,665 17,165 0 0 0 0 0 0 20,565 21,182 21,818 22,472 23,146 23,841 0 0 0 0 0 0 0 0 0 0 0 0 $288,423 $296,949 $305,730 $314,775 $324,092 $333,034 $64,612 $64,612 $64,612 $64,612 $64,612 $0 1.10 1.10 1.10 1.10 1.10 N/A $6,46.1 $6,461 $6,461 $6,461 $6,461 $60,088 at Hospital Hitt - phase I Application Dale: 9-5-02 Revised Date: One Slop2000 Affordable Housing Finance Application (Version 1.17] © Page A-7 O eratin Expense Analysis NOTE: Do not fill out this section. It is automatically filled in b program. Management Fee Residential Residential Residential Total Per Unit Per S. F. Commercial Connnercial Total Per S. F. Payroll, Administrative Payroll Taxes & Benefits, Admin. Legal Audit Marketing Telephone Office Supplies Accounting & Data Processing Investor Servicing DHCD Monitoring Fee Other: Other: Subtotal: Administrative Payroll, Maintenance Payroll Taxes & Benefits, Admin. Janitorial Materials Landscaping Decorating (inter. only) Repairs (inter. & ext.) Elevator Maintenance Trash Removal Snow Removal Extermination Recreation Other: Subtotal: Maintenance Resident Services Security $14,850 $450.00 $0.33 11 $0 N/A $12,577 $381.12 $0.28 $0 N/A $4,144 $125.57 $0.09 $0 N/A $3,593 $108.89 $0.08 $0 N/A $5,390 $163.34 $0.12 $0 N/A $1,221 $37.00 $0.03 $0 N/A $2,875 $87.11 $0.06 $0 N/A $2,875 $87.11 $0.06 $0 N/A $5,390 $163.34 $0.12 $0 N/A $0 $0.00 $0.00 $0 N/A $924 $28.00 $0.02 $0 N/A $0 $0.00 $0.00 $0 N/A $3,234 $98.00 $0.07 $0 N/A $42,223 $1,279.48 $0.95 $0 N/A $14,773 $447.67 $0.33 $0 N/A $4,144 $125.57 $0.09 $0 N/A $8,442 $255.81 $0.19 $0 N/A $2,955 $89.53 $0.07 $0 N/A $2,955 $89.53 $0.07 $0 N/A $8,442 $255.81 $0.19 $0 N/A $0 $0.00 $0.00 $0 N/A $1,688 $51.16 $0.04 $0 N/A $1,688 $51.16 $0.04 $0 N/A $1,266 $38.37 $0.03 $0 N/A $0 $0.00 $0.00 $0 N/A $0 $0.00 $0.00 $0 N/A $46,353 $1,404.63 $1.041 1 $0 N/A $0 $0.00 $0.00 $0 N/A $0 $0.00 $0.00 $0 N/A Electricity $5,115 $155.00 $0.12 $0 N/A Natural Gas $28,050 $850.00 $0.63 $0 N/A Oil $0 $0.00 $0.00 $0 N/A Water & Sewer $17,006 $515.33 $0.38 $0 N/A Subtotal: Utilities $50,171 $1,520.33 $1.13 $0 N/A Replacement Reserve $10,725 $325.00 $0.2411 $0 N/A Operating Reserve $0 $0.00 $0.00 $0 N/A Real Estate Taxes $9,504 $288.00 $0.21 $0 N/A Other Taxes $0 $0.00 $0.00 $0 N/A Insurance $13,200 $400.00 $0.30 $0 N/A MIP $0 $0.00 $0.00 $0 N/A Other: $0 $0.00 $0.00 $0 N/A Subtotal:Taxes, Insurance $22,704 $688.00 $0.51 $0 N/A TOTAL EXPENSES $187,026 $5,667.44 $4.22 11 $0 N/A Village at Hospital Hill - Phase I Application Date: 9-5-02 Revised Date: One Siop2000 Affordable Housing Finance Application (Version 1.17) Development Cost Analysis NOTE: Do not fill out this section it is automatically filled in by program. Acquisition: Land Acquisition: Building Acquisition Subtotal Direct.Construction Budget Construction Contingency Subtotal: Construction General Developmen Architecture & Engine Survey and Permits Clerk of the Works Environmental Engine Bond Premium Legal Title and Recording Accounting & Cost C, Marketing and Rent L Real Estate Taxes Insurance Relocation Appraisal Security Construction Loan In Inspecting Engineer Fees to: Fees to: MIP Credit Enhancement Letter of Credit Fees Other Financing Fee; Development Consul Other: Other: Soft Cost Contingen Subtotal: Gen. Dev Residential Residential Residential Total Per Unit Per S. F. A-8 Commercial Commercial Total Per S. F. $16,500 $66,000 $82,500 $500 $2,000 $2,500 $0.37 $1.49 $1.86 $0 $0 $0 N/A N/A 777~ N/A $4,615,572 $461,557 $5,077,129 $139,866 $13,987 $153,852 EE$104.04 $10.40 $114.44 $0 $0 $0 N/A N/A N/A Costs: 168 $371 $11,248 $8.37 $0 N/A nng , $15 000 $455 $0.34 $0 N/A , 000 $25 $758 $0.56 $0 N/A , $0 $0 $0.00 $0 N/A :r $0 $0 $0.00 $0 N/A $125,000 $3,788 $2.82 $0 $0 N/A N/A $25,000 $758 $0.56 $0 N/A rtificat. $20,000 $606 $0.45 45 $0 $0 N/A P $20,000 000 $15 $606 $455 . $0.34 $0 N/A , 000 $50 $1,515 $1.13 $0 N/A , $0 $0 $0.00 $0 N/A 000 $5 $152 $0.11 $0 N/A , 000 $2 $61 $0.05 $0 N/A , 858 $42 $1,299 $0.97 $0 N/A rest , 000 $10 $303 $0.23 $0 N/A , 24 $0 $0 N/A Conventional w/AHP $10,727 $325 . 34 $0 $0 N/A DHCD $15,000 $455 . 00 $0 $0 N/A $0 $0 . $0 $0 $0.00 $0 N/A rees $0 $0 $0.00 $0 N/A $0 $0 $0.00 $0 N/A $0 $0 $0.00 $0 N/A ant 36 0 $0 N/A 000 $16 $485 . $ , 000 $25 $758 $0.56 $0 N/A , 06 1 $0 N/A 000 $47 $1,424 . $ y , $0 N/A $839,753 $25,447 $18.93 Subtotal: Acquis., Coast., and Gen. Dev. Capitalized Reserves Developer Overhead Developer Fee $191,799 $135.23 $0 N/A 1 $5,999,382 1. $125,812 $3,812 $2.84 $0 N/A $0 N/A $299,000 $9,061 $6.74 $0 N/A $671,749 $20,356 $15.14 $215,029 $159.95 $0 N/A J Total Development Cost t,uvo J4~ - $6,760,631 $204,868 $152.39 $0 N/A Total Net* Development Cost (*Does not include any capitalized reserves nor any developer's fees or overhead which are contributed or loaned to the project.) One Stop2000 Affordable fIousing Finance Application [Version 1.17] Section 6 CHECKLIST FOR EXHIBITS Please indicate whether the following Exhibits are included with this application. Exhibit 1. Site Information: Page 20 Detailed site map Included Photographs of the site Included Directions to the site Included Site location map Included Exhibit 2. Environmental Information: Chapter 21E Assessment Included Environmental Notification Form Included Lead paint inspection Not Included Lead paint abatement plan Not Included Asbestos inspection report- Included Asbestos abatement plan Not Included Letter from local or Mass. Historical Commission Included Man of wetlands or floodplain areas Included Determination by Local Conservation Commission and/or Dept. of Environmental Protection Not Included Other environmental information Included Exhibit 3 Evidence of Zoning Not Included Exhibit 4 Evidence of Site Control Included Exhibit 5. Evidence of Local Support Included Exhibit 6 Market Information and Acquisition Value Included Exhibit 7 Marketing Plan Included Exhibit 8. Affirmative Fair Marketing Plan Included Exhibit 9. Equal Opportunity Questionnaire Included Exhibit 10. Sales Prices and Affordability Not Included Exhibit 11. Construction Period Sources and Uses Inchtded Exhibit 12. Tax-Exempt Project Information Not Included Exhibit 13. Relocation Plan Not Included Exhibit 14. Special Needs Service Plan Included Exhibit 15. Required Tax Credit Certifications Included Exhibit 16. Preliminary Plans and Specifications Included Exhibit 16A Accessiblity Information Included Exhibit 17 Commitment Drawings and Specifications Not Included Exhibit 18. Soil and/or Structural Report Not Included Village at Hospital Hill - Phase I Application Date: 9-5-02 Revised Date: Section 6 Checklist for Exhibits Page 21 Please indicate whether the following Exhibits are inchided with this application. Exhibit 19. Energy Budget Not Included Exhibit 20. Construction Financing Included Exhibit 21. Permanent Financing Included Exhibit 22. Equity Financing Commitment Included Exhibit 23. Other Funding Commitments Included Exhibit 24. Rental Subsidies Included Exhibit 25. Developer Profile Included Exhibit 26. Mortgagor's Other Real Estate Included Exhibit 27. Architect's Resume Included Exhibit 28. Management Agent Profile Included Exhibit 29. General Contractor's Profile Included Exhibit 30. Developer Financial Statement and Credit Release Included Exhibit 31. Mortgagor Personal Financial Statement Included Exhibit 32. Individual Financial Profile Not Included Exhibit 33. General Contractor's Financial Capacity Included Additional Exhibits: Exhibit No. Title: Exhibit No. Title: Exhibit No. Title: Exhibit No. Title: - Phase 1 Application Date: 9-5-02 Revised Date: r_ Northampton, MA Affordable Housing Trust Submitted to Massachusetts Department of Housing and Community Development MassDevelopment September 8, 2006 September 9, 2006 Jane Wallis Gumble, Director Department of Housing and Community Development 100 Cambridge Street, Suite 300 Boston, MA 02114 RE: VILLAGE AT HOSPITAL HILL PHASE II NORTHAMPTON, MASSACHUSETTS Dear Ms. Gumble: We are pleased to submit this application for an annual- allocation of $475,200 in Low-Income Housing Tax Credits (LIHTC), $715,000 in State HOME funds, $1,000,000 in Affordable Housing Trust Funds (AHTF), and $1,666,701 in Facilities Consolidation Funds (FCF) for the creation of 40, units of affordable housing for Phase II of the Village at Hospital Hill located in the city of Northampton. As part of this application we are also submitting a request from the Commonwealth' for 8 Project-Based Section- s Vouchers. We would be willing to accept alternative funds from the Department of Housing and Community Development to accomplish this program should the Department determine that other funds are more appropriate for this project. PROJECT DESCRIPTION The Village at Hospital Hill is a joint public-private redevelopment project which is the result of over twenty-five years of effort by the Commonwealth, the City of Northampton, elected officials, advocates, and concerned citizens, to provide a forward-looking, economically viable reuse for the core campus of the former Northampton State Hospital, situated on a prominent hilltop west of downtown Northampton, Massachusetts. A full history of the background of this project is included in Exhibit 1. The Community Builders, Inc. (TCB) is working in conjunction with MassDevelopment to create a mixed-use community that consists of affordable and market-rate housing, live-work studios, an assisted living facility, and a mix of retail, office, light industrial, research and development/multi-media space. The Community Builders, Inc. 322 Main Sheet Springfield, MA 01105.2408 413 737-0207 fax 413 731.9790 TDD 800 545-1833 x180 www.tcbinc.org Boston Louisville New Haven Philadelphia Pittsburgh Providence . Springfield Washington D.C. Pahick E. Clancy President 8 Chief Execufive Officer The Master Plan for the site envisions a full build-out of approximately 476,000 s.f. of mixed-use commercial space, a child care center, and the t, development of a 60-80 unit assisted living facility for seniors. The Master ` Plan also includes 207 residential units, 100 of which would be single- J September 6, 2006 VILLAGE AT HOSPITAL HILL PHASE II Page 2 of 2 family homes and 107 of which would be mixed income rental housing. Overall, fifty percent of the residential units will be designated as affordable. Approximately 75% of the rental units and 25% of the homeownership units will be reserved for low- and moderate-income households. The balance of the units will be rented or sold at market rates. The rental units will be developed in three to four phases. PHASE II This application is submitted to provide financing for Rental Phase II, which consists of 40 new construction townhouse units and flats for families and individuals. When complete there will be 19 one bedrooms, 19 two bedrooms, and 2 three bedrooms. Four one-bedroom units will be reserved for households at or below 30% area median income. An additional twenty-eight units will be reserved for households earning less than sixty percent of AMI. The remaining eight market units will be available without income restrictions. Since the first attempt to fund the second rental phase of the NSH redevelopment project in September 2003, several milestones have been accomplished: 1) the Phase I Rental Development is complete with 33 units in two renovated buildings next to the site of the proposed Phase II; 2) the major road providing access to the North Campus has been built; 3) funds have been provided for the construction of the roads for the South Campus; 4) many of the existing structures have been demolished; and 5) "Old Main is currently being demolished with completion scheduled for summer of 2007. A Special Permit and a Preliminary Subdivision Approval have been issued for the overall site. As discussed with your office, the City of Northampton will likely be seeking approval from DHCD in the coming months for a redesignation of the NSH site as "40R". It is anticipated that this process will be concluded before Spring 2007. To allow the City some time to complete that process, we have deferred submission of site plans for Planning Board approval. However, if 40R redesignation does not occur in time, the current Special Permit does allow the project to proceed. In either event, site plans will be submitted for approval in March. This will allow for the project to begin construction, as scheduled, in July 2007. The City has repeatedly stated that it is very much interested in expediting the progress of this project. The Village at Hospital Hill represents a significant milestone for the Commonwealth in taking state surplus land and converting a large percentage of it to affordable housing. TCB is pleased, after many years of planning, to finally bring Phase II of this project to reality. If you have any questions or require additional information, please contact me at 413.737.0207. Thank you for the opportunity to submit this application. We look forward to working with you on this important development. Sincer ly, Tom 9Kegelman Senior Project Manager Albany Boston Cincinnati Louisville New Haven New York Philadelphia Pittsburgh Providence Springfield Washington D.C. CITY OF NOR'T'HAMPTON Mayor Mary Clare Higgins City Hall 210 Main Street Room 12 Northampton, MA 01060-3199 (413) 5871249 Fax: (413) 587-1275 mayor@northamptonma.gov September 6, 2006 Thomas R. Gleason Executive Director MassHousing One Beacon Street Boston, MA 02108-3110- Re: Village at Hospital Hill Priority Development Fund Application Dear Mr. Gleason: As Mayor of the City of Northampton and Chair of the Northampton State Hospital Citizens Advisory Committee, I am pleased to support the application by The Community Builders, Inc. for $1.475 million in Priority % Development Funds for the next phase of affordable rental housing development at the Village at Hospital Hill, ,,This project is part of an overall master plan for development of this site. As such, it has the full support of ~ Northampton City government and of the Citizens Advisory Committee. The Northampton State Hospital site has been targeted by the City for community development for over twenty-six years. We are pleased to finally see our plans becoming a reality. Redevelopment of -the former Northampton State Hospital has been a high priority project on the local, regional, and state level for which the City of Northampton has provided considerable support, As further indication of the City's support of this project, I have approved, upon recommendation of the Northampton Housing Partnership, an allocation of $75,000 in Community Development Block Grant funding for Phase Two rental housing on the North Campus. The City rezoned the site as a Planned Village District to allow for mixed used development in a concentrated development pattern. The project ls.a model smart growth development meeting the Commonwealth's sustainable development principles creating a mixed-use, mixed-income village center surrounded by residential and commercial uses, a pedestrian oriented development connected by walking and biking trails to Downtown Northampton, creating both jobs and housing within close proximity of each other, and design guidelines to reuse some of the buildings on the site and encourage an urban village atmosphere and appearance. One of the primary public benefits of the project is to ensure that 50°/u of the 200+ housing units are affordable, a significant commitment to affordable housing in Western Massachusetts. The Main Complex, a 400,000sf deteriorated and blighted building on the North Campus, is currently under demolition by MassDevelopment. The removal of this complex will open the North Campus to housing development and private investment, However, public funding is essential to achieving the affordability goals of the project as construction costs continue to increase since the initial master plan for the project was conceived. The Village at Hospital Hill is a wise public investment for State resources, and MassHousing funds are critical to the success of this project. We continue to be excited about the development of the mixed-income community at the Village at Hospital Hill. Your support of this application is invaluable in bringing needed investment in affordable housing construction to the project and to Western Massachusetts, In our mutual commitment to affordable housing, we have worked closely with your agency. Thank you for your support of Northampton projects. We look forward to working with you on the upcoming phases of affordable housing development at the Village at Hospital Hill. Sincerely,„`^ ^ MAR CLARE HUG)GINS Mayor, City of Northampton Chair, Northampton State Hospital Citizens Advisory Committee 01~ CITY OF NORTHAMPTON Mayor Mary Clare Higgins City Hall 210 Main Street Room 12 Northampton, MA 01060-3199 (413) 587-1249 Fax: (413) 587-1275 mayor@northamptonma.gov August 10, 2006 Jane Wallis Gumble, Director Massachusetts Department of Housing and Community Development 100 Cambridge Street Suite 300 Boston MA 02114 Dear Director Gumble: As Mayor of the City of Northampton and Chair of the Northampton State Hospital Citizens Advisory Committee, I am pleased to support The Community Builders, Inc.'s application for Low Income Housing Tax Credits for the next phase of affordable rental housing development at the Village at Hospital Hill. This project is part of an overall master plan for development of this site. As such, it has the full support of Northampton City government and of the Citizens Advisory Committee. fkhe Northampton State Hospital site has been targeted by the City for community development for over twenty-six ,,_,.ars. We are pleased to finally see our plans becoming a reality. The City of Northampton has provided considerable support for this project. The site was rezoned as a Planned Village District to allow development to occur. The Citizens Advisory Committee and the Planning Board have been actively involved in the design, permitting and siting of the buildings. The Office of Planning and Development and the Mayor's Office of Economic Development also have been actively engaged in planning and promoting redevelopment of the site; its staff has provided considerable expertise to The Community Builders. The Mayor's Office of Economic Development will continue to be involved with the project after it is completed to provide services to residents. As further indication of the City's support of this project, I have approved, upon recommendation of the Northampton Housing Partnership, an allocation of $75,000 in Community Development Block Grant funding for Phase Two rental housing on the North Campus. The City and the CAC will continue to work with the developers and the permitting authorities to ensure a successful outcome for the project, the neighborhood and the City. We continue to be excited about the development of the mixed-income community at the Village at Hospital Hill. Your support of this application is invaluable in bringing needed investment in affordable housing construction to the area. qCLA 7 IGGINS orthampton Northampton State Hospital Citizens Advisory Committee Narrative Regarding Threshold Characteristics The Village at Hospital Hill Threshold #1: Conformance with Set Aside Categories Production vs. Preservation This is an application for tax credits and subordinate financing for units that qualify for the production set-aside. All units in this application are new construction. 75% Threshold for Family Housing As discussed with DHCD staff this summer, twelve out of the forty units, set-aside for the mentally ill, are not counted in this calculation. Of the remaining 28 units, 21 (or 75%) are two or three bedroom units and are intended for families, which meets the DHCD requirements for this threshold. The set aside of these 12 units is in furtherance of a requirement of the awarding of the development rights for the Northampton State Hospital site, to target a total of 15%, or approximately 31 units, of all new housing developed at the site to clients of the Department of Mental Health. Not for-Profit TCB is a qualified 501(c)(3) organization. TCB will be the developer and property manager of the project. TCB has created a wholly owned subsidiary which is the managing member of the LLC which will be the owner and mortgagor/borrower. Accordingly, credits awarded to this project will count toward the Department's requirement that 10% of all credits awarded be allocated to projects involving a qualified non-profit organization. Ask Threshold #2: Quality of the Site I The Northampton State Hospital site represents an ideal location for development of affordable and mixed income housing. TCB will receive the site "clean" of all environmental hazards from Hospital Hill Development LLC. There are no wetlands on this parcel. The redevelopment of the Northampton State Hospital (NSH) represents an enormous opportunity. The central campus sits on a beautiful piece of land, high above Northampton, with extraordinary views of Northampton and the Connecticut River Valley, with the Holyoke Range on the horizon. The site is centrally located in Massachusetts with good access to the major economic centers of the New England states. Further, it will be part of a new vibrant and attractive mixed-use community with jobs, housing, and modest amounts of specialty retail, in close proximity to the educational, cultural, and civic resources of Northampton. The Northampton State Hospital site has been visited several times by DHCD Staff. Threshold #3: Evidence of Local Support The Village at Hospital Hill has garnered strong local support, as documented and described in detail in Exhibit 5. In particular, the project has received a letter of support from the Chief Elected Official, the Mayor of Northampton, Mary Clare Higgins. The project also has received support from the Citizens Advisory Committee (CAC), in a letter from Mary Clare Higgins in her capacity as Chair of the CAC. Pagel of 9 The City of Northampton has contributed $125,000 is for direct project expenses for Phase I. The City has pledged another $75,000 for Phase H development and is listed in the sources section of this application. (The entire CDBG match is described more particularly below under Threshold #6, and documented in a letter in Exhibit 23.) Equally significant is a letter of support from the Northampton Housing Partnership. The Northampton Housing Partnership serves as the city's coordinating and screening body relative to issues and initial views involving affordable housing. The board is appointed by the Mayor and includes a broad cross-section of public and private sector interests in the community. Exhibit 5 includes additional evidence of support from local, state, and federal officials, including ■ Mary Clare Higgins, Mayor of Northampton ■ Mary Clare Higgins, Chair of the Citizens Advisory Committee ■ Martha Ackelsberg, Chair, Northampton Housing Partnership ■ United States Congressman Richard E. Neal ■ United States Senator John Kerry (updated letter being sent under separate cover) ■ Massachusetts State Senator Stanley Rosenberg ■ Teri Anderson, Economic Development Coordinator, City of Northampton ■ Wayne Feiden, Northampton Office of Planning and Development, City of Northampton ■ Ann Detrick, Deputy Commissioner, Department of Mental Health (under separate cover) ■ Brian C. Rust, Lieutenant, Northampton Police Department ■ Michael Truckey, Executive Director, Franklin Hampshire Employment and Training Consortium The Northampton community is actively involved in the planning of the development of the site. (Oil The Village at Hospital Hill enjoys strong local support which is most clearly demonstrated through the role played by the Citizens Advisory Committee (CAC). The Request for Proposals (RFP) for a Master Plan issued in October of 1997, and the subsequent selection of The Community Builders as the designated developer, was done with the input and approval of the CAC. The CAC is a collaboration of local agencies and organizations from the City of Northampton including representatives from the Chamber of Commerce; the Housing Partnership; the Labor Council; Representatives from the Route 10, Route 66 and Grove Street Neighborhood Associations; the Alliance for the Mentally Ill; the Franklin/Hampshire Private Industry Council; the Industrial Affairs Council; and the Department of Mental Health. The CAC is chaired by the Mayor of Northampton. Threshold #4: Creditworthiness of Sponsor/Owner TCB is the sponsor and developer of the Village at Hospital Hill. TCB meets all of the stated requirements for creditworthiness as set forth in the 2006 QAP. A certificate that TCB meets the standards is attached at the end of this section. ~G__ I J Page 2 of 9 Threshold #5: Evidence of Site Control In November 2002, title to the entire Northampton State Hospital site was acquired from the Commonwealth by Hospital Hill Development LLC, a single purpose LLC created by TCB to own and develop the site. A copy of the deed is included in Exhibit 4. TCB has site control for the particular portion of the property that is the subject of this application by virtue of an Option to Purchase, executed between Hospital Hill Development LLC and TCB, also included in Exhibit 4. Threshold #6: Identification of all Financing Sources All financing sources have been identified for this project sufficient to cover development and operating costs. The sources are included in Section 3 of the application and documented in Exhibits 21 through 24. Development Costs The project has received a commitment of $75,000 in Community Development Block Grant (CDBG) monies from the City of Northampton. A letter of support from the Mayor of Northampton is included in Exhibit 23 for these funds. These funds will be in addition to the CDBG funds already provided in support of the Master Plan for Northampton State Hospital. As described below, the City has already committed a substantial amount of their CDBG funds to this site - over 60% of their affordable housing resources have been dedicated to this project. A letter of interest from Aegon is also included which shows that the Company would be willing to invest $0.945 per $1 LIHTC or $4,489,742 toward this venture. oq~ The remainder of funds necessary to complete this project are the subject of this application. In particular, this application is seeking Facilities Consolidation Funds, State HOME monies, Priority Development Funds and Affordable Housing Trust Funds in addition to tax credits. The local match for this application is $75,000 in CBDG funds, as described in the letter from the Mayor of Northampton attached to Exhibit 23. Operating Costs Funding is sufficient to cover operating costs. The Northampton Housing Authority does not currently have Project Based Section 8 vouchers available. The Authority is very supportive of this project and has indicated a willingness to provide Section 8 vouchers in the future if they become available. A letter of support from John Hite of the Housing Authority is included under Exhibit 24 to this effect. As part of this application, therefore, we are also requesting an allocation of 8 Project Based Section 8 vouchers from the Commonwealth. This figure exceeds the 25% cap set by the federal government. However, units earmarked for elderly and disabled applicants are exempted from the calculation per federal regulations. This application includes a request for 8 Section 8 vouchers for those identified as eligible for assistance. Enclosed per the requirements of the One Stop are 1) A statement certifying all project principals are not excluded from Federal procurement and nonprocurement program, and 2) A draft management plan for managing and maintaining these units. Both are attached in Exhibit 24. Page 3 of 9 Threshold #7: Status of Compliance Monitoring of Other Tax Credit Projects All Forms 8823 ("Low income Housing Credit Agencies Report of Noncompliance") that have been issued for material and/or continuing, but curable, non-compliance have been addressed in Exhibit 26. Documentation to correct each instance of continuing non-compliance has been provided to Spectrum Enterprises. In addition, TCB has confirmed that all compliance monitoring fees have been paid to DHCD. Threshold #8: Good Standing with Respect to Other DHCD Programs To the best of our knowledge, all members of the Development Team are in good standing with DHCD. Specifically, The Community Builders, Inc., is in good standing with DHCD. The architect, Dietz & Company Architects, Inc., we believe is in good standing with DHCD. The General Contractor. who provided the cost estimate and will be invited to bid on the project, C.W.C Builders, Inc., we believe is in good standing with DHCD. Threshold #9: Commitment to a Thirty Year Term of Affordability TCB will commit to maintaining the tax credit units for 40 years. As described in the QAP, TCB will offer the Commonwealth "an opportunity to present a qualified contract as such term is defined in Section 42 of the Internal Revenue Code, for the purchase of the project after expiration of the term of the Agreement." Threshold #10: Tenant Supportive Services TCB will work with a variety of local entities, organizations, employers, city departments, and h/~ J) community groups to ensure that residents have access and opportunity to services, employment, and job training programs. Of the 40 units in the project, 12 will be targeted to the Mentally Ill. Services will be provided to these residents through a third party vender procured by DMH. Amongst the services provided these tenants to help them to maximize their ability to live independently will be budgeting skills, medication administration, employment and training opportunities as well as issues specific to their responsibilities as tenants. The service plan is described in Exhibit 14. A letter from DMH is also attached to Exhibit 5. Because these services are provided by a third party vendor, they are not included in the operating budget. In addition, TCB is working with a number of private, neighborhood, and city departments to provide services and resources to residents of the Village at Hospital Hill. Further description of these services is included in Exhibit 5, Section 2 (Community Involvement in Project). These services will not be part of the total operating cost for the site. Service providers and the services they will provide are documented below. Note that these service providers have agreed to provide services for all of The Village at Hospital Hill, which includes Phase II: Letters Attached Documenting Supportive or other Services (see Exhibit 5) ■ Teri Anderson, City of Northampton Economic Development - Business Development ■ JoAnne Campbell, Valley Community Development Corporation Business Development, Home buyer counseling, Homeownership counseling ■ Ann Detrick, Deputy Commissioner, Department of Mental Health Self-sufficiency (under separate cover) Page 4 of 9 ■ Michael Truckey, Franklin Hampshire Employment and Training Consortium - Job Training, Career Development Threshold #11: Inclusion of Units for Very Low Income Persons or Families Ten percent of units (4 of 40) are reserved for persons or families earning less than 30% AMI. Threshold #12: Consistency with the Commonwealth's Principles of Sustainable Development 1. Redevelop First - The Village at Hospital Hill project will redevelop a blighted former mental institution located within walking distance to downtown Northampton, serviced by pedestrian and bicycle paths. Eleven historic buildings as well as some of the historic architectural and landscape features of the former State Hospital will be preserved and reused. 2. Concentrate Development - The Village at Hospital Hill is a mixed-use commercial, industrial, and residential community within the Planned Village District. The development is concentrated on 126 acres of the original 500+acres of the State Hospital property. Housing, jobs, and neighborhood convenience services are located within walking distance of each other and designed around a village center. Over 400 acres of surrounding former hospital land is permanently preserved as open space, agricultural land, community gardens, walking trails, and recreation fields available for use by the public. I Be Fair - Planning for redevelopment of Hospital Hill has been in the works for over 20 years with many community goals incorporated into the project including: affordable housing, economic development, housing/commercial balance to minimize the burden on the tax base, a diversity of housing types, 15% housing and jobs for mental health clients, mitigation of traffic and development impacts on surrounding neighborhoods, an open and inclusive planning and permitting process with the oversight of a Citizen Advisory Committee, open space protection, and historic preservation. 4. Restore and Enhance the Environment - As previously mentioned, 405 acres of the original hospital property have been permanently preserved for open space, agricultural, and natural resource protection as well as recreational use. The Mill River flows along the northern boundary of the property and the area adjacent to the river has been permanently protected. In addition, no wetlands on the property will be disturbed as a result of the project. No other sensitive land or resources will be impacted by the project. 5. Conserve Natural Resources - MassDevelopment will encourage the use of green building construction on the site and will make educational resources and financing available. Salvage of materials from building demolition will be maximized and some demolition material will be reused as fill on the property. Page 5 of 9 6. Expand Housing Opportunities - The Village at Hospital Hill includes a diversity of housing types as well as a 50% affordable/50% market rate housing mix. 15% of the units are targeted for clients of the Mass. Department of Mental Health. The project will include a mix of new and rehabilitated rental units, townhouse units, single to three family units as well as mixed-use residential/commercial buildings. This planned village project will provide housing within walking distance of jobs and the commercial village center and business park. 7. Provide Transportation Choice - This project will be pedestrian oriented with walking and biking paths linking all development within the project to sidewalks/bike trails leading to downtown. MassDevelopment will provide an interim shuttle bus from the project to downtown Northampton until the potential ridership from the project justifies expansion of a full bus route. The developers have also agreed to provide for membership in the local Transportation Management Association, make accommodations for bicycle storage, carpooling, an on-site transportation coordinator, and the opportunity for Zip Car shared vehicles. 8. Increase Job Opportunities - The Village at Hospital Hill is projected to create or retain 400-800 jobs. The target business tenant for the Hospital Hill Business Park includes: technology, light industry, new media, R&D, and neighborhood commercial services. Several local manufacturers seeking expansion space are interested in space at the site. Northampton has a severe lack of available land suitable for commercial/industrial growth. The site will provide a solution to local businesses that could otherwise not be accommodated in the City and will create an inventory of commercial/industrial space suitable to attract new businesses to the City/region. The Mayor's Office of Economic Development as well as other regional assistance programs will be available to provide business assistance to support the growth of new and existing businesses at the Hospital Campus. 9. Foster Sustainable Businesses - This project will support sustainable businesses by providing a smart growth, mixed-use village development. In addition, the type of commercial/industrial space available on the property will support the development of industry clusters identified in the Governor's Competitiveness Council Cluster Analysis for the Pioneer Valley region, particularly printing/publishing, life sciences/medical devices, and information technology. The site can provide space for both incubator and mature businesses. 10. Plan Regionally - The Village at Hospital Hill is a project of regional significance and is consistent with local and regional economic development, land-use, and housing goals. The project is listed as a high priority project in Northampton Vision 2020, the Pioneer Valley Comprehensive Economic Development Plan (CEDS), and the Pioneer Valley Competitiveness Council Cluster Analysis. Over its fifteen year buildout, the project will provide over 200 units of housing in a high demand housing market, 400-800 jobs for the regional workforce, and will contribute over 300,000 sf of building space to the regional'commercial/industrial inventory. The project is projected to create 90 jobs for Hampden County low/mod individuals and over 200 Page 6 of 9 jobs for Hampshire/Franklin County low/mod individuals. This project has broad public support from housing, land preservation, and economic development organizations in the region. Threshold #13: Fair Housing Narrative 1. Encourage Equity Village at Hospital Hill Phase II will be managed by The Community Builders, Inc. TCB will implement carefully monitored procedures to ensure compliance with the Fair Housing Act, Section 504 of the Rehabilitation Act, The Americans with Disabilities Act, Title VI, the Age Discrimination Act, Executive Order 11063, Chapter 151B of the Massachusetts General Laws, and the Massachusetts Equal Rights Law. TCB's transparent and rigorously documented tenant selection process is the best guaranty against subjective or discriminatory practices. All information used to evaluate applicants for the Village at Hospital Hill, Phase II units be in writing. This includes application forms, verifications, credit checks, letters of support, interview notes, etc. Rejected households or persons will receive written notification containing the reasons for their rejection and may appeal, in writing, to Agent within five days of receiving the rejection notice. All rejection notices will contain phone numbers for complaints to the Massachusetts Commission Against Discrimination and the U. S. Department of Housing And Urban Development. The redevelopment of Hospital Hill is especially focused on providing opportunities for the mentally ill to live independently in mixed housing. 12 of the 40 units in this phase will beset aside for those whose mental illness might prevent them from living independently, were it not for the supportive services and subsidized housing made available here. In addition, job opportunities in the construction and management of the property are also being directed to the clients of the Department of Mental Health. The availability of units for a range of income levels, for those with physical and mental disabilities, and for those of different ages and household sizes is already built into the financial and physical structure of this project. In addition, marketing outreach to minorities who represent only 10% of the general Northampton population will be helped by advertising in surrounding communities where the minority population is significantly higher. A wide network of service providers that care for the homeless and others in need will also ensure that these valuable resources will be well distributed demographically. 2. Be Affirmative All persons involved with the processing of housing applications will receive training in the observation and compliance with the Fair Housing Act, Section 504 of the Rehabilitation Act, The Americans with Disabilities Act, Title VI, the Age Discrimination Act, Executive Order 11063, Chapter 151B of the Massachusetts General Laws, and the Massachusetts Equal Rights Laws. The purpose of the Page 7 of 9 training is to ensure that all employees enforce the policy of non-discrimination and fair housing. The architects at Dietz and Company, Architects undergo extensive training in accessibility requirements. In addition, accessibility experts with Stavros Center for Independent Living have been asked to work with the development team to maximize accessibility wherever possible. 3. Promote Housing Choice The "Traditional Neighborhood Design" that this project follows creates a denser cluster of housing than normally found in suburban communities. This means that there are more opportunities for pedestrian-friendly streetscapes, with sidewalks, accessible paths, parks, easy access to downtown amenities, as well on-site amenities that will follow as the project grows. With mixed-income for-sale homes as well as mixed-income apartments, this will be one of the most demographically diverse communities in Western Massachusetts. As above, marketing will emphasize outreach to underrepresented minorities through minority housing advocates and others. 4. Enhance Mobility As described above, in addition to pockets of poverty in Northampton, there are surrounding communities like Holyoke and Springfield which will be the focus of marketing efforts. As the project grows, more opportunities for these households to move up from apartment dwelling to home-ownership will appear, easily accessed by those living just down the street. J 5. Promote Greater Opportunity Unlike any other redevelopment project of this type, the commitment to make 50% of the total 207 planned housing units affordable to low income households is a remarkable effort to provide the most amount of affordable housing in one of the most desirable neighborhoods in the Commonwealth. 6. Reduce Concentrations of Poverty The development of hundreds of thousands of square feet of commercial space in the surrounding neighborhood means hundreds of jobs, many of which will be filled by those living in these apartments. The master developer for the site is committed to providing bus service to the site as soon as is practicable. Meanwhile, bus service is currently available a little more than a half mile away and a bike path is being built that will connect the site with other communities. A Zip car program has just begun at Smith, only % mile away and there is hope that, someday, a Zip car will be located at the site, as well. 7. Preserve and Produce Affordable Housing Choices This project does not preserve an existing affordable housing project, but it does produce affordable housing and (as said above) will provide the most affordable housing in the most desirable location with jobs, good schools and lots of opportunities. Page 8 of 9 8. Balance Housing Needs Noone will be displaced due this redevelopment project. This project is the result of a lengthy and careful public process involving hundreds of caring citizens in an attempt to incorporate the needs of the city and the region. 9. Measure Outcomes The tenant selection procedures that will be implemented through MassHousing obligate the owner to keep careful records and the measure their success in meeting recruitment goals. Already, results in the first phase showed minority occupancy double that of the host community. We hope to build on that with the next phase. 10. Rigorously Enforce All Fair Housing and Anti-Discrimination Laws and Policies Careful monitoring by trained professionals, training of staff and the commitment of financial resources will ensure compliance with all the applicable rules and regulations should assure 01 Page 9 of 9 AFFIDAVIT l I, Elaine Vega, being first duly sworn on oath, depose and say that: 1. I am the Compliance Manager of THE COMMUNITY BUILDERS, INC. (the "Firm"). 2. The Firm does not have any issues of continuing non-compliance within the State of Connecticut. 3. The Firm does not have any issues of continuing non-compliance within its entire portfolio, which includes projects in Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Kentucky, Ohio, North Carolina, Illinois, Virginia, and West Virginia. THE COMMUNITY BUILDERS, INC. Elaine Vega 01 J STATE OF SS: COUNTY OF'&ss~~,f Subscribed to and sworn before me, a Notary Public, in and for the said County and State, this 5' day of September, 2006. otary My Commission Expires: 13, d • • • • 1 • Ca o* Any? (17 Certification of Sponsor Creditworthiness I, Beverly Bates, as Senior Vice President of The Community Builders, Inc., do hereby certify that the sponsor meets the thresholds of creditworthiness set for under "Section IX, Threshold #4" of the 2006 Massachusetts Qualified Action Plan. Be ly B s Senior Vice President The Community Builders, Inc. 9-8-ab Date VILLAGE AT HOSPITAL HILL PHASE II Northampton, Massachusetts Total Possible 182 Estimated 155 FUNDAMENTAL PROJECT CHARACTERISTICS Total Possible 100 Estimated 100 A) DESIGN The design and renovation of The Village at Hospital Hill Phase II will conform to all applicable laws, regulations and codes. It will also comply with HOME Rental Program Guidelines and Regulations, although experienced property managers on our staff prefer electric stoves and VCT, as opposed to gas stoves and sheet vinyl. We would be happy to discuss these options with DHCD. The proposed amenities are ample and appropriate for the target population, but not excessive. All units will have hookups for washer/dryer units. j This Phase II of 40 units has no particular environmental issues which require design sensitivity. The Master Plan for the site is based on the concept of an Urban Village, which seeks to favor the pedestrian over the automobile. Accordingly, units have been designed in close proximity to one another and the road to promote pedestrian interaction. As much as is possible, the units will have porches to encourage the same so that activity is oriented toward the street. The landscaping will similarly follow the concepts of the urban village. Landscaping will be used in large part to screen parking areas and in common areas such as parks and walking paths. A large part of the campus has already been committed to open space. Parking will be limited to 1.5 spaces per unit. The units will include sprinkler and fire alarm systems. Energy efficient windows, insulation and draft reduction methods will provide the energy efficient and comfortable units. It is expected that the project will comply with EPA's ENERGY STAR Standards. Further descriptions of the energy efficiency measures and building accessibility are included at Appendix H. In addition to the TV/Broadband Cable system and the telephone system, there will also be a third data network configured back to a central location through a wireless network. The General Contractor will only be required to provide the power for the routers at each Page 1 of 11 Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines building. A separate contract for the wireless router installation will be obtained. A proposal for this has been obtained and is included in Exhibit 16. As required, a construction cost estimate has been included and signed by Ken Hoffman, CWC Builders, Inc. The primary access road to the site (Village Hill Road) has been completed. Additional roadways and infrastructure improvements will be built in coordination with MassDevelopment as part of the larger redevelopment project. Construction of those roadways is expected to begin in the Spring. The contractor selected by TCB will tie into utilities that will have been tapped in the street and stubbed at the inside of the sidewalk. The cost for this work has been included in the construction estimate. Design: 20/20 B) DEVELOPMENT TEAM: The development team assembled for this project has extensive successful prior experience in the development, construction and management of complicated tax credit projects. The Community Builders, either directly, or through a subsidiary, will be the project sponsor, developer, owner, mortgagor, and property manager of the Village at Hospital Hill. The Community Builders will also serve as real estate legal counsel for the project. Project Sponsor, Developer, Owner, and Mortgagor: The Community Builders has developed 9 projects in its Massachusetts offices over the past five years worth over $70 million in total development costs, while maintaining approximately a 1% variance from projected to actual costs, many of which were complicated tax credit projects (see Exhibit 25). This is an extraordinary performance of completing difficult projects on budget. Many of the Massachusetts developments involved DHCD assistance in some form, and all of them are in good physical and financial condition. Architect: Dietz & Company Architects is providing architectural and engineering services. Dietz & Company Architects is a SOMWBA-certified women-owned business. Dietz has extensive experience in providing design, service, teamwork and management oversight. They have worked on similar tax credit projects in Western Massachusetts for several years and the quality of their work stands out in the neighborhood. (see Exhibit 27). General Contractors: A general contractor has not yet been selected for this project. TCB has identified four possible well qualified contractors whom will be invited to bid on the work: CWC Builders, Inc., Aquadro and Cerutti., Inc., D.A. Sullivan & Sons, Inc., and Fontaine Brothers, Inc. All of these are fine firms and should be given high marks. We have only included one in this application. The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines CWC Builders Inc. is a general contracting firm that has built -or renovated residential commercial and institutional properties valued at nearly one billion dollars in its fifty-six years of business. CWC specializes in historic rescue, adaptive re-use and has also been involved in several housing rehabilitation efforts throughout greater Boston as well as Western Massachusetts. In addition, CWC Builders has worked with TCB previously on certain projects, including Nevins Manor in Metheun, MA. CWC's bonding capacity is valued at $37-42 million dollars annually. See Exhibit 29 for full resume on this general contractor. Legal: The Community Builders legal department will provide real estate legal services for the project. TCB legal staff has extensive experience in tax credit and affordable housing projects. Steve Paul of Palmer & Dodge will be the tax attorney for the project. Property Management: The Community Builders Inc. will be the management agent for the project, and has a very successful history managing over 60,000 housing units, in Connecticut, Kentucky, Massachusetts, New Jersey and Pennsylvania. Three-quarters of the properties under management are urban and inner-city family developments which administer the full range of subsidy programs and which have been financed with complex funding packages. The remaining quarter is comprised of inner-city and rural elderly/handicapped properties and commercial space. (See Exhibit 28) All members of the development team have proven financial strength (see Exhibits 30 and 33 for sponsor and general contractor financial information). Total Projected Development Team Score: 20/20 C) MARKETABILITY: The 2000 US Census reports that there are over 2,062 very low income households (households whose incomes are less than 30% AMI) in Northampton, representing approximately 17.4% of all households. For those very low-income families not already occupying a subsidized housing unit, rent burden is substantial. Very low income households in Northampton pay more than 30% of their income for rent, excluding those who currently occupy. subsidized housing. The only option for lessening this rent burden is either a tenant based or project based rental subsidy. For those households not qualifying for a preference placement, obtaining rental assistance in a timely fashion is difficult. The Northampton Housing Authority just recently opened their waiting lists and are unable to provide an accurate count of the number on their wait list. However, in six days they received 672 applications for their federal housing programs. They expect most of these applicants to be put on their waiting list. They no longer break down their lists by unit size, nor do they keep a waiting list for state housing programs. The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts . Scoring Guidelines Moderate income households may have greater financial capabilities to find and retain # housing but lack of housing stock in general is impacting the market. i' This evidence shows that there is a substantial market for low- and moderate-income housing. Few affordable units are available in the community and a great many households are paying more than 30% of their income for rent. A market study prepared by Zimmerman-Volk Associates is included with the application as Exhibit 7. The study concludes that a market does in fact exist for affordable housing at the Northampton site. Total Projected Marketability Score: 20/20 D) FINANCIAL FEASIBILITY: All financing sources have been identified for this project sufficient to cover development and operating costs. The sources are included in Section 3 of the application and documented in Exhibits 21 through 24. Development Costs The project has received a commitment of $75,000 in Community Development Block Grant (CDBG) monies from the City of Northampton. A letter of support from the Mayor of Northampton is included in Exhibit 23 for these funds. These funds will be in addition to the CDBG funds already provided in support of the Master Plan for Northampton State Hospital. As described below, the City has already committed a substantial amount of their CDBG funds to this site - over 60% of their affordable housing resources have been dedicated to this project. A letter of interest from Aegon is also included which shows that the Company would be willing to invest $0.945 per $1 LIHTC or $4,489,742 toward this venture. A letter of interest from MassHousing for the permanent debt and consideration of the request for Priority Development Funds is also attached. The remainder of funds necessary to complete this project are the subject of this application. In particular, this application is seeking Facilities Consolidation Funds, State HOME monies, and Affordable Housing Trust Funds in addition to tax credits. The local match for this application $75,000 in CDBG funds. These funds are described in the letter from the Mayor of Northampton attached to Exhibit 23. Operating Costs The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines Funding is sufficient to cover operating costs. The Northampton Housing Authority does not currently have Project Based Section 8 vouchers available. The Authority is very supportive of this project and has indicated a willingness to provide Section 8 vouchers in the future if they become available. A letter of support from John Hite of the Northampton Housing Authority is included under Exhibit 24 to this effect. However, the exact timing of their availability is uncertain and there is also significant demand for the relatively few units expected to be available. As part of this application, therefore, we are also requesting an allocation of 8 Project Based Section 8 vouchers from the Commonwealth. We recognize that should we receive an allocation of Section 8's from the state that half of the total number of units requested (4 units) would be reserved for households below 30% of AMI. The remaining Section 8's would be for households up to 50% of AMI. Total projected Financial Feasibility score: 20/20 E) READINESS TO PROCEED: The plan for the Village at Hospital Hill has been sufficiently developed for the project to score well in the Readiness to Proceed category. The following are the key criteria identified in the 2006 QAP used to determine readiness: site control, zoning, ability to meet 10% test, environmental and historic reviews, and ability to close on financing. Site Control TCB has control of the site. On November 25, 2002, title to the entire Northampton State Hospital site was acquired from the Commonwealth by Hospital Hill Development LLC, a single purpose LLC created by TCB to own and develop the site. TCB and MassDevelopment have entered into an Operating Agreement under which MassDevelopment became a majority and managing partner of Hospital Hill Development LLC effective simultaneous with the acquisition of the site. TCB has site control for the particular portion of the property that is the subject of this application by virtue of an Option to Purchase, executed between Hospital Hill Development LLC and TCB, also included in Exhibit 4. Zoning In December, 2001, the city of Northampton amended its zoning ordinances to designate the site of the former Northampton State Hospital as a Planned Village Zone. Under that zoning designation, a mixed use, urban scale, dense development is allowed. The procedure for development projects to proceed under this zoning designation involves three steps: (1) Receipt of a Special Permit for the entire site; (2) Subdivision Plan Approval; and (3) Site Plan Approval. The first step in the process, the receipt of a The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines Special Permit, was granted in September 2002. The existing Definitive Subdivision Plan will be revised this winter to allow the necessary additional streets to begin construction in Spring 2007, as part of TCB's homeownership development program. A copy of the Special Permit is enclosed in Exhibit 3, as is a copy of the existing subdivision plan approval. As described elsewhere, the site plan has not yet been submitted, pending the City of Northampton's anticipated 40R zoning application to the state this winter. Whether the City completes that application on time or not, the site plan will be submitted in March and approval is expected in May 2007. Ability to meet 10% test The project will satisfy the 10% test found in the Internal Revenue Code Section 42(h)(1)(E) by incurring a minimum of 12-14 percent of costs prior to June 30, 2007. These costs include architect design fees, legal and related fees in connection with the real estate transfer, miscellaneous capitalizable general development costs and acquisition costs. Environmental and Historic reviews The redevelopment of the Northampton State Hospital site is subject to the requirements of MEPA. The environmental review process for the development of the site was begun in April 2002. On November 13, 2003, the Secretary of Environmental Affairs issued a certificate authorizing the overall development program to proceed with only minimal environmental mitigation (see attached letter included under Exhibit 2.1) Ability to close on financing Our development team is prepared to mobilize upon notification that we have been approved for State HOME funding, FCF monies, PDF and Trust funds, and that tax credits have been reserved for this proposal. A MassHousing loan commitment will be the first item on the agenda. Each member of the team has extensive experience working on HOME and tax credit funded developments. There are no unusual site conditions that will delay the project. Total projected Readiness to Proceed score: 20/20 Special Project Characteristics Total Possible 82 Estimated 55 Official Local Support: 6/6 Included at the beginning of this application is a Letter of Support from the points Chief Elected official of Northampton, the Mayor. A second letter from the Mayor is include in Exhibits 5 and 23 showing Northampton's commitment of current and future CDBG funds to the overall Master Plan for the site, The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines .1~. $75,000 of which is for use in Phase II. Inclusion in a Comprehensive Neighborhood Revitalization Effort: 6/6 The Village at Hospital Hill Phase I is part of the 1999 Master Plan for the points site which was approved by the Citizens Advisory Committee, a collaboration of local agencies and organizations. The CAC is chaired by the Mayor of Northampton and accordingly is part of a Neighborhood Revitalization effort approved by the City. The CAC includes representatives from the Chamber of Commerce; the Housing Partnership; the Labor Council; Representatives from the Route 10, Route 66 and Grove Street Neighborhood Associations; the Valley Community Development Corporation; the Alliance for the Mentally Ill; the Franklin/Hampshire Private Industry Council; the Industrial Affairs Council; and the Department of Mental Health. The 1999 Master Plan guides the overall planning effort at the Village at Hospital Hill which calls for complete neighborhood revitalization of the NSH. The Plan calls for 476,000 s.f. of mixed-use commercial space, comprising a mix of retail, office, light industrial, and research & development/multi media space as well as space for live-work studios, a child care center, and the development of a 60-80 unit assisted living facility for seniors. The Master Plan also includes 207 residential units, 100 of which would be single-family homes and 107 of which would be mixed income rental housing. The Plan clearly delineates streets, buildings, uses, common spaces and parking lots. This plan is not located within a qualified census tract. The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines Low Soft Costs and Developer's Fee 6/6 points Low Soft Costs: Soft Costs represent less than 15% of the Total Replacement Cost, therefore 3/3 points are expected in this category. Developer Fee: The Developer Fee represents less than 10% of the Total Replacement Cost, therefore 3/3 points are expected in this category. Please note that, in addition to MassHousing's required deferral of 25% of the developer fee, TCB is also deferring a fee equal to the amount of the operating deficit reserve. Both will be unavailable for payment for at least 5 years. The net paid fee is only $869,000 or less than 8% of the Total Replacement Cost. MBE/WBE Membership on the Development Team 3/6 points The project architect, Dietz & Company Architects, is certified as a Minority/Women's Business Enterprise (SOMWBA). Non-profit Sponsorship: 6/6 points The Sponsor/Developer organization, The Community Builders, Inc. is a 501(c)(3) corporation. Attached please find our Certificate of Exemption in Exhibit 15A: Qualified Non-profit Certification. The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines Special Needs Groups as Intended Consumers: 0/6 In accordance with the requirements of the LDA, TCB will reserve 12 units in the development for the mentally ill (30%); however, these are not enough to qualify for points in this category. Inclusion of Market Rate Units in the Project: 0/6 points This project only has 8 market rate units and does not qualify for the additional point. Location in a Community with less than 10% Subsidized Stock: 0/6 points According to DHCD's Subsidized Housing Inventory, updated as of August 17, 2006, Northampton currently has 11.84% of its housing stock as affordable. Conformance with Section 42 Code Preferences 6/6 points Extended Term of Affordability: TCB commits to maintaining the tax credit units for a 40-year period. Lowest Income Population to be Served: TCB will rent 4 units or 10% of the tax credit eligible units to residents that have incomes equal to less than 30% of the area median income. This qualifies for points in this category Projects Located in Qualified Census Tracts: The Village at Hospital Hill census tract is 8219, which is not a QCT based on 2006 determinations. Emphasis on Environmentally Friendly Design and Enhanced Accessibility 16/16 Points Walls: The exterior walls will be 2x6 framing, 16" o.c., filled with a blown-in-blanket cellulose system. This system, although officially having no greater R-value than fiberglass (3.5 per inch), insulates better, provides better draft reduction, sound reduction and allows for better moisture management than the equivalent thickness of fiberglass batt insulation. Our total R-value for exterior walls will be approximately R- 21, when adding R-values for insulation, sheathing, gypsum board and dead air space. J The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines Foundation Walls: Our project includes only slab on grade units. No basements are planned. Slab-On-Grade Floor: We are planning to use 2" of polystyrene insulation at all slab perimeters. This will result in a continuous thermal break and an R-11 at the perimeter of the slab. We are also planning to use 2" of polystyrene insulation under all first floor slabs, throughout. This will result in a continuous thermal break and an R-11 under the slab. Roof. We have specified 12" of blown cellulose above the ceiling of the top.floor of each building. This is equivalent to an R-42. Settling will typically occur over time. We are therefore assuming an R-value of R-40. Air Infiltration: A continuous air infiltration barrier will be installed on each building. All joints and penetrations to the exterior or into unheated space will be sealed with foam to help ensure air-tightness. In conjunction with the blown-in cellulose insulation system, we expect blower door testing results to show that these buildings are extremely tight, as do all of our projects which are built to meet or exceed EnergyStar standards. 2. Efficient Building Systems: Each unit will have a gas-fired modulating boiler which serves to provide both heat and heat hot water. These compact units are located in a separate mechanical room in each unit. They are compact, low- maintenance and long-lasting. They are sealed combustion units and require only one building penetration to provide them with both combustion air and exhaust. These units are very efficient, rated approximately 90% efficient. Thermostats will be installed with an upper limit set to 75 degrees Farenheit. No central air conditioning is provided. 3. Healthy Indoor Air Quality: All kitchen exhaust fans will be ducted directly to the outside. Only no-VOC paints have been specified for this project. Materials that are low-VOC and formaldehyde-free will be specified wherever possible. An example of the products we will be using is Medite, an extremely durable, water and mold-resistant, formaldehyde- free engineered wood product with recycled content, that will be used for interior window sills. The Community Builders, Inc. Village at Hospital Hill, Northampton, Massachusetts Scoring Guidelines We will be providing ventilation for all of the units by using a continuous use-rated bathroom exhaust fan on a timer that will provide ventilation I~ - throughout the day, as well as when the bathroom is in use. Enhanced Accessibility: 5% (a total of two units in a 40 unit project) of the units will be Group 2 units. 2 1/2% (a total of one unit in a 40 unit project) of the units will be units outfitted with devices for the vision or hearing impaired. All Group 2 units will have two accessible means of egress. Proximity to Transit 0/6 points Although there are currently plans to have bus service located within a few blocks of this site, currently there is no bus stop within %z mile of the site. Fair Housing 6/6 points The Northampton area, generally, is well below 15% of the poverty rate, this census tract is listed as having 8.7%. The same mix of units was recently rented up across the street using the same marketing plan described in Exhibit 7 and twenty-three percent of the occupants are non-white, higher than Northampton's overall 10% non-white population.-- CN The Community Builders, Inc. One Stop2000 Affordable Housing Finance Application [Version 1.181 n Section 1 PROJECT DESCRIPTION Page 1 Name and Address of Project 1 . Project Name: Village at Hospital Hill Phase II 1 a . Application Completed By: The Community Buillders, Inc. - Thomas P. Kegelman lb . Original Application Date: 9-4-03 Application Revision Date: 9/5/2006 2 . Project Address: Northampton State Hospital - Route 66 3 . Neighborhood NSH, Census Tract 8219 4. City/ Town Northampton MA 01060 (state) (zip code) 5 . County HAMPSHIRE 6 Scattered sites 7 . Is this a qualified census tract? No Enter a census tract 8219.00 8 . Difficult to develop area QCT information last updated on: 4/10/2006 Development Plan 9 Development T e (Please check all that apply.) Yes New construction No Acquisition, substantial rehab of existing housing No Acquisition, moderate rehab of existing housing No Acquisition, minimal or no rehab of existing housing No Adaptive re-use of non-residential structure 10 . Proposed Housing Type Rental (except SRO or Assisted Living, see below) 11 . Project Description: Number of buildings: The Village at Hospital Hill Phase H Rental will create 40 units of affordable rental housing: 19-1BRs; 19-2BRs; 2-3BRs. This is one phase in a mixed use redevelopment of the Northampton State Hospital. The master plan includes 207 rental and homeownership units with 476,000 sq. ft. of retail and commercial space. The re-use of an existing State property, close to an urban center, with large commercial component, along a major transportation route, surrounded by open space and populated by households with a 12 . Development Schedule: Original Revised Optional user comments Application Date 9-4-03 Construction Loan Closin _ 6-30-04 6-30-07 Initial Loan Closing (WIFA only) Construction Start 12-30-04 7-1-07 50% Construction Completion 6-30-05 1-31-08 Construction Completion 12-30-05 7-1-08 First Certificate of Occupancy - _ 10-30-05 4-1-08 Final Certificate of Occupancy 12-30-05 7-1-08 Sustained Occupancy 2-28-06 12-31-08 -08 Village at Hospital Hill Phase 11 Application Date: 9-4-03 [revised Date: 91512006 © Massachusetts Housing Investment Corpgration, 1993, 1994, 1995, 1999 in its own name and on behalf of MHFA, DHCD, and the MHP Fund.- All rights-reserved. section 1. t-rojeci 13 . Unit TMX: bedroom. _ bedroom bedrooms bedrooms bedrooms Low-Income Low-Income Low-Income Other Income Market Rental Assisted below 50% below 60% (User-defined) Rate ?Z Total Units 0 13 6 19 0 2 2 0 4 0 28 0 8 40 Home Units* I I *HOME units included in the above totals. Other Income=Below 14 . Unit Size in square feet: Low-Income Low-Income Low-Income Otherlncome Rental Assisted below 50% below 60% (User-defined) SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms of median income Market Average Rate All Incomes 0 N/A N/A 600.0 600.0 600 1004.3 1004.3 1,004 1250.0 1250.0 1,250 N/A 15 . Number of bathrooms in each unit: Low-Income Low-Income Low-Income Other Income Market Average Rental Assisted helow 50% helnw 60% tU.rer-defined) Rate All Inrnme.c SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms N/A N/A 1.0 1.0 1.0 1.0 1.0 1.0 1.5 1.5 1.5 N/A 16. Funding Applied For: Please check all the funding that is being applied for at this time, with this application: DHCD Tax Credit Allocation Yes Category Production Category HOME Funding through DHCD Yes Massachusetts Housing Finance Agency (select all that apply Official Action Status No Construction Financing/Bridge Financing No Permanent Financing No Massachusetts Housing Partnership (MHP) Fund: Permanent Rental Financing Program No Massachusetts Housing Investment Corporation (select all that a 1 : Debt Financing No Tax Credit Equity Investment No Boston Department of Neighborhood Development (DND): No Other Yes Other Affordable Housing Trust Other Facilities Consolidation Fund Other Financing from MassDevelopment No Village at Hospital Hill Phase II Application Date: 9-4-03 Revised Dc ~f Section 1. 17. Number of buildings planned. Total a. Single_Family 0 b. 2-4 Family c. Townhouse 6 d. Low/Mid rise e. Huh-rise 0 0 f. Other - 0 TOTAL - - - 6 New Construction 6 6 3 Rehabilitation 0 18 . Number of units: 401 1 40 19 . Gross Square Footage a. Residential 40 754 40,754 b. Commercial - 20. Net Rentable Square Footage: Total Percent of Gross a. Residential 32,982 s.f. 81% b. Commercial s.f. N/A 21 . Number of handicapped accessible units Percent of total 5% 22. Fire Code Type Wood frame 1 23 . Will building(s) include elevators? No 24. Are the following provided with the housing units: a. Range? Yes b. Refrigerator? Yes c. Microwave? No d. Dishwasher? No e. Disposal? No f. Washer/Dryer Hookup? Yes g. Washer & Dryer? No h. Wall-to-wall Carpet? Yes i. Window Air Conditioner? No j. Central Air Conditioning?.. No 25 . Are the following included in the rent: a. Heat? No b. Domestic Electricity? No c. Cooking Fuel? No d. Hot Water? No e. Central A/C, if any? No Gas or electric Electric umtonai user comments ienced property managers on our staff prefer is stoves and VCT, as opposed to gas stoves and vinyl. Howerver, we would be happy to disucss options with DHCD. 26 . Type of heating fuel: Gas 27 . Total no. of parking spaces: C 62 Outdoor: 62 Enclosed: 28 . Number of parking spaces exclusive) for the use of tenants: a. Residential Total: 62 Outdoor: 62 Enclosed: b. Commercial Total: 0 Outdoor: Enclosed: Village at Hospital Hill Phase 11 Application Date: 9-4-03 Revised Date: 91.51MUb .)ectton I. Pro/ect Uescrtptton Pa-ze 4 29 . Will rehabilitation require the relocation of existing tenants? I Not applicable 30 . Scope of rehabilitation: Please describe the following (or type N/A). a. Major systen is to be repiacea: Not applicable b. Substandard conditions and Not applicable c. Special features/adaptations Not applicable deficiencies to be to 31 . Are energy conservation materials in excess of the Building Code? a. Insulation Yes roof=R40; walls=M b. Windows Yes RM c. Heating system Yes 90% Information On Site And Existing Buildings Square Feet Acres 32 . Size of Site: 84,700 1.94 33 . Wetlands area: 34 . Buildable area: 84,700 1.94 Existing Conditions: 35 . What is the present use of the property? open space, avin 36 . Number of existing structures: - 37. Gross s.f. of existing structures: 40,754 38 . If rehabilitation: number of units num. of bedrooms a. Number of existing residential units/bedrooms: 0 0 b. Number of units/bedrooms currently occupied: 0 0 39 . If site includes commercial space: a. Square footage of existing commercial space: 0 square feet b. Square footage currently occupied: 0 square feet 40. What are the surrounding land uses? Entire campus closed for over ten years. Surrounding structures will be renovated in subsequent phases or torn down and replaced by new housing or commercial space. Utilities: 41. Are the followin utilities available on the site: a. Sanitary sewer? No Distance from site (ft.) 100 b. Storm sewer? No Distance from site (ft.) 600 c. Public water? Yes d. Electricity? Yes e. Gas? No Distance from site (ft.) 600 If any of the above are not available, is plan attached explaining how such service will be extended to the site? Yes Please attach as Part of Exhibit 2 at AdftL N r- 1. Zoning: Please include information on the property zoning in Exhibit 3. This should include a zoning map, highlighting any special use or dimensional restrictions on the property. If the present zoning does not allow for the proposed use, please explain current status and how approvals will be obtained 42 . Does the present zoning allow the proposed development? Y:es No 43 . Have you applied for a zoning variance, change,special permit or subdivision? See Exh. 3 44 . Do you anticipate applying for a comprehensive permit under Chapter 77 No Site Control: 45 . What form of site control do you have? Option Include copies of the appropriate site control documents as part of Exhibit 4. n Cc- 46 . Please provide details about y ur site control agre a. Name of Seller: b. Principals of seller corporation: c. Type of Agreement: d. Agreement Date: e. Expiration Date: f. Purchase price if under agreemen g. Is there any identity of interest between buyer and seller? 47 . In the past three years, have there been any defaults on any mortgage on the property or any other forms of financial distress? No 1 48 . Are there any outstanding liens on the property?. No Amenities and Services: 49 . Please indicate distance from site and locate on city/town map (Exhibit 1). Distance a. Shopping facilities 1.00. miles b. Schools 2.00 miles c. Hospitals 2.00 miles d. Parks and recreational facilities 1.00 miles e. Police station 1.00 miles f. Fire station 2.00 miles g. Public transportation 0.50 miles h. Houses of worship 1.00 miles i. City/Town Hall 1.00 miles Village at Date: Section 1. Environmental Inform 6 50 . Is there any evidence of underground storage tanks or releases of oil No or hazardous materials, including hazardous wastes, on the site or within close proximity to the site? 51 . Has a Chapter 21E assessment been performed? Yes Please include a copy as Exhibit 2 52 . Does the project consist of either: (a) new construction of more than No 100 units; or (b) substantial rehabilitation of more than 200 units, or where more than 10% new floor space is added? 53 . Does the building require lead paint abatement? No 54 . Does the building require asbestos abatement?, I No 55 . Do radon tests show radon levels exceeding four picocuries/liter? No 56 . Is there any evidence that the premises are insulated with urea No formaldehyde foam (UFFI)? 57 . Is the site located in an historic district, or contain buildings listed or No eligible for listing in the State Register of Historic Places? 58 . Are there any above ground storage containers with flammable or No explosive petroleum products or chemicals within 1/2 mile of the site? 59 . Is the site located in a floodplain or wetlands area? No 60 . Does the site contain endangered animal or plant species? No 61 . Is the site subject to noise impact from jet airports within five miles, major highways within 1,000 feet, or rail traffic within 3,000 feet? No Village at Hospital !fill Phase 11 Application Date: 9-4-03 Revised Date: 91512006 One Stop2000 Affordable Housing Finance Application [Version 1.1810 Page 7 Section 2 DEVELOPMENT TEAM SUMMARY 62 . Developer/Sponsor Type Limited Liability Company (LLC) 63 . Developer/Sponsor: Form of Legal Entity Legal Name Address Contact Person E-mail 64. Owner/Mortgagor: Legal Name Address Has this entity already been formed? Principals Principals Contact Person Telephone No. / Fax. No. E-mail 65 . General Partner: Legal Name Address Has this entity already been formed? Principal (if corporate) Contact Person % of Ownership Telephone No. / Fax. No. E-mail 66 . General Partner: Legal Name Address Has this entity already been fornied? Principal (if corporate) Contact Person % of Ownership Telephone No. / Fax. No. E-mail Village at Hospital Hill Phase II I!~ 501 © (3) The Community Builders, Inc. 322 Main Street Springfield, MA 01105 Thomas P. Kegelman 413-737-207 413-731-9790 tkegelman@tcbinc.orq Village at Hospital Hill II, LLC c/o The Community Builders, Inc. 322 Main Street, Springfield, MA 01105 Yes Soc. Sec. or Tax ID # 26-0088275 Thomas P. 413-737-0207 1413-731-9790 1 TCB Village at Hospital Hill II, Inc. c/o The Community Builders, Inc. 322 Main Street, Springfield, MA 01105 Yes Soc. Sec. or Tax ID # 26-0088270 Thomas P. Kegelman 413-737-0207 413-731-9790 tkeoelman(Qcbinc.oro Section 2. Development Team Summary 67 . Development Consultant: Legal Name Address Contact Person Telephone No. / Fax. No. E-mail 68 . Contractor: Name Address Fed Tax ID # Contact Person Telephone No. / Fax. No. E-mail 69 . Architect: Name Address Contact Person Telephone No. / Fax. No. E-mail 70. Management Agent: Name Address Contact Person Telephone No. / Fax. No. E-mail 7 1 . Attorney (Real Estate): Name Address Contact Person Telephone No. / Fax. No. E-mail 72. Attorney (Tax): Name Address Contact Person Telephone No. / Fax. No. E-mail 73 . Syndicator: Name Address Contact Person Telephone No. / Fax. No. E-mail 8 To be determined Dietz & Company Architects, Inc. 17 Hampden Street Springfield, MA 01103 Marc Sternick 413-733-6798 413-732-4385 maresno dietzarch.com The Community Builders, Inc. 322 Main Street Springfield, MA 01105 Patrice Leonard 413-737-0207 413-731-9790 pleonard Wbinc.or9 The Community Builders, Inc. 95 Berkeley Street Boston, MA 02116 Tom Davis 617-695-9595 617-695-9483 tdavis .tcbinc.orq Palmer and Steve Paul 617-695-9595 617-695-9483 The Community Builders, Inc. 95 Berkeley Street, Boston, MA 02116 Jerome Garciano 617-695-9595 617-695-9205 C Villae'e at Hospital Hill Phase II ADDlicatlon Date: 9-4-03 Revised Date: Section 2. Development Team 74. Guarantor: Name Address Contact Person Telephone No. / Fax. No. E-mail 75 . Service Provider or Coordinator: Name Address Contact Person Telephone No. / Fax. No. E-mail 76. Marketing Agent: Name Address Contact Person Telephone No. / Fax. No. E-mail 77 . Other role Name Address Contact Person Telephone No. / Fax. No. E-mail 78 . Other role Name Address 9 Department of Mental Health PO Box 389 Northampton, MA 01061 David Modzelewski 413-587-6200 413-587-6204 Same as 79 . Is there any identity of interest between any members of the development team? Yes See below. 80 . Please describe the relationship or the development entity to sponsoring orgamzaLiuus. VS UL-, entity newly-formed or to-be-formed? Is it a single-purpose corporation? How will the parent corporation provide support to this entity? Include an organizational chart showing other affiliates of the parent corporation, as appropriate, and principals of each. TCB will be the developer and property manager. TCB has created an LLC and a managing member of the newly created LLC which will be the owner and borrower. Hospital Hill Development, LLC, of which TCB is the minority member, is the owner of the entire site and has entered into an Option with TCB to acquire the specific Phase II parcel which is the subject of this application. Contact Person Telephone No. / Fax. No. E-mail at Hospital Hill Phase H Application Date: 9-4-03 Revised Date: 91512006 One Stop2000 Affordable Housing Finance Application (Version 1.181 Section 3 SOURCES AND USES OF FUNDS Page 10 Private Equity: 81 . Developer's Cash Equity $100 82 . Tax Credit Equity (net amount) (See line 360, Section 5, page 18.) $4,489,742 83 . 0 $ t 84 . Other Source Deferred Dev Fee $289,796 Public Equity: 85 . HOME Funds, as Grant $ 86 . Grant: $ 87 . Grant: $ 88 . Total Public Equity---------------------- Subordinate Debt (see definition): Amount Rate 89 . 90 . 91 . 92 . 93 . 94 . AmnPH7 Torm Home Funds-DHCD, as Subordinate Debt $715,000 5.21 % n/a 30 Source: State HOME Home Funds-Local, as Subordinate Debt $1,666,701 5.217% n/a 30 Source: State FCF Subordinate Debt $1,000,000 5.21%n/a 30 Source: State Trust Funds Subordinate Debt $75,000 0.00% n/a 30 Source: CDBG TCB Note Subordinate Debt $1,475,000 1.00% n/a 30 Source: PDF Total Subordinate Debt $4'931,701 f Permanent Debt Senior : Amount ,5 . MHFA MHFA Program 1 $1,400,000 96 . MHFA-------- MHFA Program 2 $ % 97 . M)WP Fund Permanent Loan 98 . Other Permanent Senior Mortgage $ $ % % Source: 99 . Other Permanent Senior Mortgage Is % Source: 100. Total Permanent Senior Debt $1,400,000 101 . Total Permanent Sources $11,111,339 Construction Period Financing: Amount Rate 102. Construction Loan $3,202,578 Source: PCI Repaid at: Com letion (event) 103. Other Interim Loan $0 % Source: Repaid at: (event) 104 . Syndication Bridge Loan $0 Source: I Repaid at: (event) Rate Override Amortiz. Term M!P 8.00% % 40.00 40.00 0.3 vrs. vrs. % yrs. yrs. % yrs. yrs. % yrs. yrs. % Term 7.00% MOS. 12.0 Application Date: 9-4-03 Revised Date: 91512006 SEP. 06 06 (WED) 07:54 6176312104 PAGE. 1 VILLAGE AT' HOSPITAL HILL PHASE 2 71ir< f %m~n Yn r rrxrlna.~•,h,,t. to tiro final of ho r bw-kdxr. 11,s r r IrWi M 1 Direct C:o nlatructioni aatlm mn,ukf (rwh if •m lrrc<dJux•rnm,hk 1xn,:•rn rrimpf¢IC U,aI 105 Who proptired the *--timatcs? Kctmoth R. Huffman, CWC Buildera,lnc. e'• - A4rre. ;10MIN 7 7 106 , 11iiSis Poi es thuatess? rmliminary plans andspcosandhtstoncaloostdatatmm I)Y I',r rk /rrm Amuanr Dow,-671-ti 107. 3 Ccncrcte 4:i1(r,179 Foundations, X:slubs 108. 4 Masonry none 100 5 Metals $19,708 haleeny rails 110. 6 Rough Carpentry $1,602,620 Gtdming, sheathiag, siding, shingle roofs 111. 6 fittishearpentry $196,226 Siils,ahcivcs,mtsctrim&millwork 112. 7 Waterproofing 451,546 Includes sealants 113 . 7 insulation $64,919 Exterior walls, roofs, etc 714 7 RooOlig T21,691) membranes at miss flat areas .115 . 4 7 Sheet Mctul and flushing $32,178 Cutters & downspouts 116. 7 Exterior Siding in rout h cwr 117 9 Ooof$ $21,5,971 lpcludes frames, hardware 118. 8 Windows $147,365 til7Crgla$$ windows 114. x Clnss W'?ig8 sliding glass and balcony dour) 120. 9 Lath & Plaster none itotte 121. 9 Dr irwall $954,456 includes metal studs & taping 122. 9 'file work none Pone 123. 9 Acoustical none none 1',14 9 Wood Flooring none none 125 . 9 Rosilient Flooring $78,407 Sheetvistyl, vinyl bA$C. slaif Coverings 126 9 rarp:t $94,749 Unitcarpeting 127. 9 Paint & bvLoruting 9:252,300 All Surlttces, inlarinr & exterior 128. IQ Specialties $54,840 't'oilet actxsaorles, slgnilgl!, rnttitI.VX0$,etC. 129 11 $pccial Equipment node none 130 , I 1 Cabinets $146,369 InChldcs vanitics, countertops iii . 11 Appliances 4E;S;309 typical kitchens 1,12 12 Mkids & Shades $l2,&U7 i3liads it all openings 133. 13 Modular/Manufactured none none IM 13 Special Construction none rarni. 735. 14 lileltutorsorConveying Syst, none throe 136, t5 Pgattbing&MotWater $361,053 includes roughing andlixtures 137. 15 (teat & Ventitation $463,695 baseboard ntdiatioti system 138 . 15 Air Conditioning none none t 19 15 Rnv Protection $118,684 4ot"Pifle 100``/r, eprinklercd. 140 . 16 Electrical $491,453 Includes Fire Alxnn. tot . AcgemoryFWiidioigs stone none 147, • Other/mist $14,000 Wireless Internet Nolwurk, hlstulled tty otiters 143 . Subtptal Structural 915,714,022 144 7 Uarth Work $196,656 cut"', Polls, efavci hues, etc 145. 2 Sitc Utilities $+183,769 Drain, Sewer, water, Fire, Lim. 141. 2 Roads & Walks $82,593 Now paving, walks 147 7 Site itnpttwentehl $45,860 Site iip.,ltliltg old ntiae imprvnitn 148 , 2 Lawni & Planting $$6,3$9 lawns & plantings 149 2 Geotechnical Conditions none none ISO 2 Environmental Rcmediation none none fit 2 Oemolition none 00oc 152. 2 Unusual SiteC.nad none none 153 . RubtntalSite Work 9$GS,2G7 154 Total: improvements $6,280,189 15i • i (tutla'al C(ntditiuns $376,13 11 156. Subtotal $6,G57,UUU 157 1 UvtkiersUvcMid 4133,140 158. 1 Buildors Plofit $399,420 159. TOTAL $7, 189,560 160 (.C Mond prcm+nms t% Permit'ras $73,897 . 161 $763,458 . _ _ _ Total Cost/square foot: $178.23 Re identi(d Cost/s.f.: $178.73 Section 3. Sources and Uses of Funds 11 Development Budget: 161. Acquisition: Land 162. Acquisition: Building ,3 . Acquisition Subtotal 164. Direct Construction Bud 165. Construction Contingenc 166. Subtotal: Construction General Development Costs: 167. Architecture 168. Survey and P 169. Clerk of the 170. Environment 171. Bond Premiu 172. Legal 173. Title and Rec 174. Accounting 175. Marketing an 176 Real Estate T 177. Insurance 178 Relocation 179. Appraisal 180. Security 181. Construction 182. Inspecting En 183. Fees to: 184. Fees to: 185. MIP 186. Credit Enhan 187. Letter of Cred '8 . Other Financi 09 Development 190. Other: 191. Other: 192. Soft Cost Con 193. Subtotal: Ge & Engineering $655,110 $655,110 ermits $10,000 $10,000 Works $90,000 $90,000 al Engineer $15,000 $15,000 m $0 $150,000 $150,000 ording $20,000 $20,000 Cost Cert. $12,000 $12,000 d Rent Up $16,000 $16,000 axes $10,000 $10,000 $75,000 $75,000 $0 $16,000 $16,000 $2,000 $2,000 Loan Interest $60,000 $60,000 gineer $0 Contt Loan $48,760 $48,760 Perm Loan $40,400 $40,400 $5,250 $5,250 ement Fees $0 it Fees $0 ng Fees $32,000 $32,000 Consultant $0 LIHTC Fees $20,558 $20,558 General Fina $84,600 $84,600 Initial MIP and Other Costs ingency $69,904 $69,904 5.1 % of soft costs n. Dev. $1,432,582 $1,432,582 $0 & c t 194 . Subtotal: Acquis., Cons $9,776,713 $9,776,713 $0 and Gen. Dev. 195. Capitalized Reserves 196. Developer Overhead 197. Developer Fee $175,441 Operating Res. aid as dev. fee and loaned back to project $0 $1,159,185 $1,334,626 Includes MHFA-r uired deferral of 25% of fee or 289,79 198. Total Development Cost $11,111,339 $11,111,339 $0 199. TDC, Net $10,935,898 $10,935,898 $0 TDC per unit $277,783 TDC, Net per unit $273,397 at Hospital Hill Phase 11 Application Date: 9-4-03 Revised Date: 91512006 1 Aft F -I Total Residential Commercial Comments Additional Detail on Development Pro-Forma: 200 . Gross Syndication Investment Off-Budget Costs: Syndication Costs: l . Syndication Legal -.,,)2 . Syndication Fees 203. Syndication Consultants 204. Bridge Financing Costs 205 . Investor Servicing (capitalized) 206. Other Syndication Expenses 207 . Total Syndication Expense 208. Current Reserve Balance Reserves (capitalized): 209. Development Reserves 210. Initial Rent-Up Reserves 211 . Operating Reserves 212. Net Worth Account 213 . Other Capitalized Reserves 214. Subtotal: Capitalized Reserves $0 $175,441 $175,441 215 . Letter of Credit Requirements 216 . Total of the Above Check: Line 214 is the same as line 195. $175,441 Please Answer The Following Dev. Reserves Initial Rent-Up Op. Rewrves Net Worth Other Letter of Credit Who requires the reserves? Investor/Lender Who administers the reserves? Investor/Lender When and how are they used? Deficits Under what circumstances can they be released? approval of Upon Investor/L etlder Unit Sales (For Sale Projects Only): 217. Gross Sales From Units 218 . -Cost of Sales (Commissions, etc.. 219. Net Receipt from Sales Debt Service Requirements: -71 220. Minimum Debt Service Co_v-erage----------------------------------------------------------------------- 1.1 - 221 . Is this Project subject to HUD Subsidy Layering Review? I Yes Village at Hospital Hill Phase H Application Date: 9-4-03 Revised Date: 91512006 C-i 1 Section 4 OPERATING PRO-FORMA Operating Income Rent Schedule: Contract Utility Total No. of 222. Low-Income (Rental Assisted): Rent Allowance Gross Rent Units SRO $0 0 0 bedroom $0 0 1 bedroom $271 $133 $404 4 2 bedrooms $0 0 3 bedrooms $0 0 4 bedrooms 223 LOW-InCOMe (below 50%): SRO so o 0 bedroom so o 1 bedroom so 0 2 bedrooms 224 Low-Income (below 60%): SRO $0 0, 0 bedroom $0 0 1 bedroom $602 $133 $735 15 2 bedrooms $800 $168 $968 IT 3 bedrooms $914 $204 $1,118 0 125. Other Income (User-defined) SRO $0 0 0 bedroom $0 0, 2 bedrooms $0 0, 3 bedrooms $0 0 26. Market Rate (unrestricted occupancy): SRO 0 2 bedrooms $1,250 6 3 bedrooms $1,600 2 1 Other Operating Income Assumptions: 229 . Laundry Income (annual): 230 . Other Incomem. b. c. d. e. f. Vacancy Allowance: 231. Low-Income (Rental Assistance) 232. Low-Income (below 50%) 233 . Low-Income (below 60%) 234 . Other Income (User-defined) 235 . Market Rate 236 . Commercial Trending Assumptions for Rents: 237. Low-Income (Rental Assistance) 238. Low-Income (below 50%) 239 . Low-Income (below 60%) 240 . Other Income (User-defined) 241 . Market Rate 242 . Commercial Space Rental 243. Laundry Income 244 a Other Income - t Other Income - c Other Income - d Other Income - e Other Income - f Other Income - Operating Subsidy and Capitalized O 245. Subsidy Source I 246. Subsidy Source R 247. Capitalized Operating Reserve Amount: 5.0% 5.0% 5.0% 7.0% V- 7 user V.. 3 Yoarv 4-5 Years 6-20 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% % % % Reserves: 248 . Yearly Draws on Subsidies and Reserves: Subsidy subsidy ,aavrca T . Cnvren TT Year 1 $8,162 $ Year2 $8,326 $ Year3 $8,492 $ Year 4 $8,662 $ Year5 $8,835 $ Year6 $9,012 $ Year 7 $9,192 $ Year 8 $9,376 $ Year 9 $9,564 $ Year 10 $9,755 $ Year 11 $9,950 $ Year 12 $10,149 $ Year 13 $10 352 $ Year 14 $10,559 $ Year 15 $10,770 $ Year 16 $10,986 $ Year 17 $11,205 $ Year 18 $11,429 $ Year 19 $11,658 $ Year 20 $11,891 $ Year 21 $12,129 $ 4 249. Annual Operating Income (year 1) Village at Hospital Hill Phase 11 $361,383 Draw on Application Date: 9-4-03 Revised Date: 91612006 Annual Operating Exp.: Total Residential Commercial Comments 250 . Management Fee $18,000 $18,000 251 252 253 254 . 255 . 256. 257 . 258. 259 . 260 . 261 . 262 . 263 . Payroll, Administrative $17,143 $17,143 Payroll Taxes & Benefits, Admin. $4,846 P $4,846 Legal $1,143 $1,143 Audit $5,857 $5,857 Marketing $4,343 $4,343 Telephone $3,429 $3,429 Office Supplies $2,857 $2,857 Accounting & Data Processing $1,157 $1,157 Investor Servicing $1,059 $1,059 DHCD Monitoring Fee $1,200 $1,200 Other: Travel & Education $800 $800 Other. Misc. Administrative E . $571 $571 Subtotal: Administrative $44,405 $44,405 $0 264 . Payroll, Maintenance $22,571 $22,571 265. Payroll Taxes & Benefits, Admin. $7,457 $7,457 266. Janitorial Materials $971 $971 267. Landscaping $0 268 . Decorating (inter. only) $2,114 $2,114 269 . Repairs (inter. & ext.) $21,029 $21,029 270 . Elevator Maintenance $0 271 . Trash Removal $4,114 $4,114 272. Snow Removal $5,886 $5,886 273. Extermination $971 $971 274. Recreation $0 275. Other: $0 276 . Subtotal: Maintenance $65,114 $65,114 277 . Resident Services $4.800 (RA Rnn it l 278 . Security 279 . Electricity 280. Natural Gas 281 . Oil 282 . Water & Sewer 283 . Subtotal: Utilities 284 . Replacement Reserve 285 . Operating Reserve 286 . Real Estate Taxes 287. Other Taxes 288. Insurance 289 . MIP 290. Other: Landowner Assoc Fee 291 . Subtotal:Taxes, Insurance 292. TOTAL EXPENSES Village at Hospital Hill Phase II $o $11,000 $11,000 $2,571 $2,571 $0 $20,600 $20,600 $34,171 $34,171 $0 $13,000 $13,000 $0 $28,233 $28,233 $0 $18,693 1 $1 1 1 $5,241 2 ( $1,212 $232,870 $232,870 $0 Date: 9-4-03 Revised Date: Other Operating Expense Assumptions Trending Assumptions for Expenses 293. Sewer & Water 294. Real Estate Taxes 295 , All Other Operating Expenses n V 7 VA-- .2 Y .rro G_ S V-- 6-W 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Reserve Requirements: 296 ..Replacement Reserve Requirement $325.00 per unit per year rating Reserve Requirement per unit per year 297 0 J?e Debt Service: Annual 298. MHFA =A Program 1 $116,812 299 . MHFA MHFA Pro m 2 N/A 300 . MHP Fund Permanent Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - N/A . . . . . . . . . . . . . . . . 301 . Other Permanent Senior Mort a e N/A Source: N/A 302 . Other Permanent Senior Mortgage N/A Source: N/A 303. Total Debt Service (Annual) $116,812 304. Net Operating Income $128,513 (in year one) 305. Debt Service Coverage e 1.10 (in year one) 1 Affordabilitv: Income limits and Maximum Allowable Rents 306 . County HAMPSHIRE MSA Springfield, MA This MSA does not match the county you have chosen 307. Maximum Allowed Rents, by Income, by Unit Size: Income Limits last updated on /10/2006 Maximum Income Maximum Rent (calculated from HUD income data) snoi lnol- not snoi hn% 0% 22,000 26,400 0 550 660 0 22,000 26,400 0 $550 660 $0 23,600 28,300 0 $590 708 $0 28,300 33,950 0 708 849 0 32,700 39,250 0 818 981 0 36,500 $43,800 0 913 1,095 $0 Area median income for a family of 308. H.U.D. "Fair Market Rents" (Maximum : 0 bedroom 529 1 bedroom 629 2 bedrooms 799 3 bedrooms 956 4 bedrooms , 5 bedrooms 1,277 SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 6 FMRInformation last updatedon 4/10/200 at Date: 9-4-03 T J- Operations before this transaction: I Operations after: Current Annualized Future Market Type Number . Rent Income Number R-t. P-t r:PR 309 310 311 . 312 . 313 . 314 . 315 . Sxv 0 0 0 0 0 0 0 bedroom 0 0 0 0 0 0 1 bedroom 19 0 0 19 0 0 2 bedrooms V 19 0 0 19 0 0 3 bedrooms 2 0 0 2 0 0 4 bedrooms 0 0 0 0 0 0 Gross Poten ,,.ta..Tncojuee 0 0 316 . Vacancy 317. Other Income 318. Effective Gross Income Operating Expenses 319. Management fee 320. Administration 321. Maintance/Operations 322. Resident Services 323. Security 324. Utilities 325. Replacement Reserve 326. Operating Reserve 327. Real Esate Taxes 328. Insurance 329. Total Expenses 330 . Net Operating Income 331 . Transaction Description: 0% 0 Vacancy 6% -21,294 0 Other Income 0 0 Effective Gross Income -21294 Year Reason % Change Year 0 18,000- 01 44,405 0 65,114 0 4,800 01 1 0 0 34,171 0 13,000 0 0 0 28,233 0 25,146 0 232,870 0 Net operating Income I -254,163 101), at One Stop2000 Affordable Housing Finance Application [Version 1.18] © Page 18 Section 5 LOW INCOME HOUSING T'AX CRE®IT - J Percent of Project Which Qualifies for Tax Credit 332. Low-Income Units 32 Total Units: 40 333. Percent of Units 80.0% 334 . Low-Income Square Feet 24,456 s.f. Total Area: 32,982 s.f. 335 . Percent of Area 74.1 336 . Applicable Percentage 74.1% (This is the lower of lines 333 and 335 above.) 337 . Is the project utilizing tax-exempt financing? No 338 . Does the project qualify for an acquisition credit? No 339 . Does the rehabilitation qualify for a 9% rather than 4% credit? No 340. How much financing is nonqualified (federally subsidized?) $ 341. What grant funds must be subtracted from acquisition basis? $ . 342. What grant funds must be subtracted from rehabilitation basis? $ 343. Will the project have a minimum of 20% of units for households earning less than 50% of median, or 40% for less than 60% of median? 40% Of Units Historic Tax Credit: 344. Does the project qualify for historic tax credits? No What are the rehabilitation costs which are not qualified for historic credits? Not Applicable Project Qualification for 130%: 346 . Is the project located in a "qualified census tract" or in a "difficult to develop" area? Acquisition Calculation of Maximum Tax Credit Amount Credit 347. Total Eligible Development Costs 348. Less: Portion of Grants Allocated to Basis 349. Less: 20% Historic Rehab Credit Basis Reduction 350. Less: Nonqualified source of financing 351. Subtotal: Eligible Basis 352. "Hard to develop" area 353 . Percent Low-Income 354. Applicable Rate 355 . Maximum Annual Tax Credit Amount 356 . Total Annual Tax Credit Amount 357 . Estimated Net LIHTC Syndication Yield $ 0.95. rate per $ 358. Est. Net Historic Tax Credit Syndication Yield. $ - rate per $ 359. Total Estimated Net Tax Credit Syndication Yield (based on above) 360 . Applicant's Estimate of Net Tax Credit Equity. $0 $0 $0 100% 74.1% 3.51% $0 I No Rehabilitation Credit $10,098,045 $0 $0 $0 10,098,045 100% 74.1% 8.19% $612,829 $612,829 $5,791,235 $0 $5,791,235 $4,489,742 (from line 82) There is a significant difference between items 358 and 359 above. Please verify your numbers [Note: This page represents a rough estimate of low income credits for which this project maybe eligible. It does not represent a final determination.l - Village at Hospital Hill Phase 11 Application Date: Y-4-0 Xevtsea uate: Yiji-/ Section 5. Low Income Housing Tax Credits 19 Total Residential .i61 Acquisition: Land $720,000 362. Acquisition: Building $0 363. Acquisition Subtotal $720,000 364. Direct Construction Budget $7,263,458 365 . Construction Contingency $360 673 366. Subtotal: Construction $7,624 131 General Development Costs: 367. Architecture & Engineering $655,110 368. Survey and Permits $10,000 369. Clerk of the Works $90,000 370. Environmental Engineer $15,000 371. Bond Premium $0 372. Legal* $150,000 373. Title and Recording $20,000 374. Accounting & Cost Certificat. $12,000 375 . Marketing and Rent Up* $16,000 376 . Real Estate Taxes* $10,000 377. Insurance $75,000 378. Relocation $0 379. Appraisal $16,000 380 . Security $2,000 381. Construction Loan Interest* $60,000 382. Inspecting Engineer $0 383. Financing Fees* Const Loan $48,760 84 . Financing Fees* Perm Loan $40,400 385 . MIP $5,250 386 . Credit Enhancement Fees $0 387 . Letter of Credit Fees* $0 388 . Other Financing Fees* $32,000 389 . Development Consultant $0 390 . Other* LIHTC Fees $20,558 391 . Other* General Financi $84,600 392 . Soft Cost Contingency* $69,904 393 . Subtotal: Gen. Dev. $1,432,582 394. Subtotal: Acquis., Const., $9,776,71,3 and Gen. Dev. 395. Developer Overhead $0 396. Developer Fee/Profit $1,334,626 397. Capitalized Reserves $0 398. Total Development Cost $11,111,339 399 . Total Net Development Cost $10,935,898• 400 . Total Eligible Tax Credit Basis $10,098,045 Percentage of Costs Not in Depreciable Acquisition Basis Credit Basis Rehabilitation Not In Credit Basis Basis j 'Z'77n 10) $0 $0 $0 $0 $0 $720,000 $0 $7,263 458 $0 $360,673 $0 $7,624131 $0 55,110 10,000 1 $11,2501 $3.7501 112,5001 $37 0% $0 $1 0% 0% _ $0 $1 0% $0 $7 1 25% $0 $45,000 $15,000 100% $0 $0 $0 100% $0 $0 $48,760 100% $0 $0 $40,40, 100% $0 $0 $5,250 100% $0 $0 $0 100% $0 $0 $0 0% $0 $32,000 $0 100% $0 $0 $0 100% $0 $0 $20,558 $01 $1,139,2881 $277,2941 $0 $8,763,419 $997,294 $0 $0 $0 $0 $1,334,626 $0 $0 $0 $0 $0 $10,098,045 * Some or all of these costs will typically be allocated to intangible assets or expensed. at d` 11 Application Date: 9-4-03 Revised Date: 91512 One Stop2000 Affordable Housing Finance Application [Version 1.181 Section 6 Page 20 CHECKLIST FOR EXHIBITS Please indicate whether the following Exhibits are included with this application. Site Information: Exhibit 1 . Detailed site map _ Included Photographs of the site Included Directions to the site - Included Site location map Included _ Exhibit 2. Environmental Information: Chapter 21E Assessment Included Environmental Notification _For_m Included _ Lead paint inspection _ Not Included Lead paint abatement plan Not Included Asbestos inspection report Not Included Asbestos abatement plan Not Included Letter from local or Mass. Historical Commission - Not Included Map of wetlands or fl_oodplain areas Not Included Determination by Local Conservation Commission and/or Dept; of Environmental Protection Included Other environmental information ~J Exhibit 3. Evidence of Zoning Exhibit 4. Evidence of Site Control Exhibit 5. Evidence of Local Support - - Included Included Included Exhibit 6. Market Information and Acquisition Value Included Exhibit 7. Marketing Plan Exhibit 8. Affirmative Fair Marketing Plan Included Included Exhibit 9. Equal Opportunity Questionnaire Included Exhibit 10. Sales Prices and Affordabilit Exhibit 11. Construction Period Sources and Uses Not Included Included Exhibit 12. Tax-Exempt Project Information Included Exhibit 13. Relocation Plan Not Included Exhibit 14. Special Needs Service Plan Exhibit 15. Required Tax Credit Certifications Included Included Exhibit 16. Preliminary Plans and Specifications Sent Under Separate Cover Exhibit 16A. Accessiblity Information Exhibit 17. Commitment Drawings and Specifications Included Not Included Exhibit 18. Soil and/or Structural ReR4 rt Not Included at Hospital Hill Phase 11 Application Date: oectzon o. c.nectuast for t xhtbits Please indicate whether the following Exhibits are included with this application. Exhibit 19. Energy Budget Not Included Exhibit 20. Construction Financing Included Exhibit 2l . Permanent Financing Included Exhibit 22. Equity Financing Commitment Included Exhibit 23. Other Funding Commitments Included Exhibit 24. Rental Subsidies Included Exhibit 25. Developer Profile Included Exhibit 26. Mortgagor's Other Real Estate Included Exhibit 27. Architect's Resume Included Exhibit 28. Management Agent Profile Included Exhibit 29. General Contractor's Profile Included Exhibit 30. Developer Financial Statement and Credit Release Included Exhibit 31. Mortgagor Personal Financial Statement Not Included Exhibit 32. Individual Financial Profile Not Included Exhibit 33. General Contractor's Financial Capacity Included Additional Exhibits: 21 Exhibit No. Title: Exhibit No. Title: Exhibit No. Title: Exhibit No. Title: at Date: 9-4-03 one BtopZUUU Allorciable Housing Finance Application (Version 1.181 (c) A-1 Project Summa Information NOTE: Do not fill out this section. It is automatically filled in b program. SRO 0 0 bedroom 0 1 bedroom 19 2 bedrooms 19 3 bedrooms 2 4 bedrooms 0 Other .............................................................Facilities Consolidation Other 0 Financing from Massdevelopment No Uses of Funds: This is an application for: DHCD Tax Credit Allocation Yes HOME Funding through DHCD Yes MHFA Official Action Status No MHFA Construction Financing No MHFA Permanent Financing No MHP Fund Financing No MHIC Construction Loan No MHIC Tax Credit Equity No Boston: DND No Other . Af fordable Housing Tr ust Sources of Funds: k Developer's Equity ~ax Credit Equity Public Equity Subordinate Debt Permanent Debt Total All Sources Low-Income, Rental Assisted 4 Low-Income, Below 50% 0 Low-Income, Below 60% 28 Other Income (User-defined 0 Market Rate 8 Acquisition Construction General Development Developer Overhead Developer Fee Capitalized Reserves Total All Uses $289,896 -$4,489,742 $0 $4,931,701 $1,400,000 $11,111,339 Uses Exceed Sources by $0 Rent Levels: Low-Income, Rental Assisted Low-Income, Below 50% Low-Income, Below 60% Other Income (User-defined) Market Rate Average, All Units $271 N/A $694 N/A $1,338 $780 Annual Operating Income (year 1): Gross rental income (residential Vacancy (resid.) 5.69% Other Income (net of vacancies) Subtotal Operating Subsidies Draw on Operating Reserves Total Annual Income Net Operating Income Debt Service ~nebt Service Coverage 1 'k -,ige at Hospital Hill Phase $374 ,514 $21 ,294 $0 $353 ,220 $8,162 $0 $361 383 $128,513 $116,812 1.10 BK (aver 1.5 N/A 2.3 1.6 $720,000 $7,674,131' $1,432,582 $0 $1,159 159,185 $175 441 $11,111,339 aver 788 1 1066 1 Annual Operating Expense (year 1): Management Fee Administrative Maintenance Res. Service, Security Utilities Repl. Reserve Oper. Reserve Taxes, Insurance Total Total per Unit $18,000 $44,405 $65,114 $4,800 $34171 $13,000 $0 $53,379 $232,870 $5 822 9-4-03 Date: 916IM06 Number of Units 40 _r , 6 _ w....v iaY~.ww I, --a ..A .1 L/ rtl uta-L Rent Profile Analysis NOTE: Do not fill out this section. It is _automatically filled in by vrouram. Contract Units Rent Low-Income (Rental Assisted : SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms Size of No. of Gross Rent/ Rent per Unit Bathrooms Maximum square.foot 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A 4 $271 600 1 64.1% $0.45 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A Low-Income (below 50%): SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A Low-Income (below 60%): SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A 15 $602 600 1 103.9% $1.00 13 $800 1,004 1 114.0% $0.80 0 N/A N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A Other Income (User-defined SRO 0 bedroom 1 bedroom 0 2 bedrooms 0 3 bedrooms 0 4 bedrooms 0 Market Rate (unrestricted occu anc : SRO 0 bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms at 0 N/A _N/A N/A N/A NIA 0 N/A N/A N/A N/A N/A 1 v/ L1 IN/ 1-1 N/A N/A IN/1-1 N/A 1V /.A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A 0 N/A N/A N/A 6 $1,250 1,004 1 2 $1600 1,250 115 0 N/A N/A N/A Application N/A N/A N/A $1.24 $1.28 N/A Revised Date: Une,J'to LUUU Alforaable Housing 21-Year ® eratin NOTE: Do not fill out this sec ice Application 1 Version 1. 18J C: Pro-forma (Years 1-5 on. It is automatically filled in b prc Year I Year 2 A-3 ram. Year 3 Year 4 Year 5 2010 2011 2012 Calendar Year.• 2008 2009 COIVIE• Low-Income, Rental Assisted Low-Income, Below 50% Low-Income, Below 60% Other Income (User-defined) Market Rate Gross Potential Income Less vacancy Effective Gross Residential Income Commercial (includes parking) Less vacancy Net Commercial Income Effective Rental Income Other Income: Laundry Other Income: Other Income: Other Income: Other-Income: Other Income: C Other Income: C Total Gross Income Operating Subsidies Draw on Operating Reserves Total Effective Income EXPENSES: Management Fee Administrative -'daintenance Resident Services Security Electrical Natural Gas Oil (heat) Water & Sewer Replacement Reserve Operating Reserve Real Estate Taxes Other Taxes Insurance MIP Other: Landowner Assoc Fee Total Operating Expenses NET OPERATING INCOME Debt Service Debt Service Coverage Project Cash Flow Required Debt Coverage (Gap)/Surplus for Cov. $12,984 $13,244 $13,509 $13,779 $14,054 0 0 0 0 0 233,130 237,793 242,548 247,399 252,347 0 0 0 0 0 128,400 130,968 133,587 136,259 138,984 374 514 382,004 389,644 397,437 405,386 21,294 21,720 22,154 22,597 23,049 353,220 360,285 367,490 374,840 382,337 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 353,220 360,285 367,490 374 840 382,337 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 353,220 360,285 367,490 374 840 382,337 8,162 8,326 8,492 8,662 8,835 0 0 0 0 0 $361383 $368,610 $375,983 $383,502 $391172 18,000 18 360 18,727 19,102 19,484 44,405 45 738 47,11 0 48,523 49,979 65,114 67,068 69,080 . 71 152 73,287 4,800 4,944 5,092 5,245 5,402 0 0 0 0 0 11,000 11,330 11,670 12,020 12,381 2,571 2,649 2,728 2,810 2,894 0 0 0 0 0 20,600 21,218 21,855 22,510 23,185 13,000 13,390 13,792 14,205 14,632 0 0 0 0 0 28,233 29,080 29,952 30,851 31,776 0 0 0 0 0. 18,693 19,254 19,832 20,427 21,040 5,241 5,221 5,200 5,177 5 152 1,212 1,248 1,286 1,324 1,364 $232,870 $239,499 $246,323 $253,346 $260 576 129 660 $130,156 $130,597 $128,513 $129,111 $129,6601- $116,812 $116,812 $116,812 $116,912 $116 812 1.10 1.11 1.11 1.11 1.12 S11.701 $12,299 $12 847. 1 $13.344 $13,784 X19 %618 $1,166 $1,6621 $2,1031 Village at Hospital Hfll Phase 11 °r -a ~ •••g ~ arsu•wc nyyuucuoa l rers¢on 1.1 21-Year Operating Proforma NOTE: Do not fill out this section. It is automat Year 6 Calendar Year.• 2013 INCOME: Low-Income, Rental Assisted Low-Income, Below 50% Low-Income, Below 60% Other Income (User-defined) Market Rate Gross Potential Income Less vacancy Effective Gross Residential Income Commercial Income Less vacancy Net Commercial Income Effective Rental Income Laundry Income Other Income: Other Income: Other Income: Other Income: Other Income: Other Income: Total Gross Income Operating Subsidies Draw on Operating Reserves Total Effective Income EXPENSES: Management Fee Administrative Maintenance Resident Services Security Electrical Natural Gas Oil (heat) Water & Sewer Replacement Reserve Operating Reserve Real Estate Taxes Other Taxes Insurance MIP Other: Landowner Assoc Fee Total Operating Expenses ears 6-10) filled in by program. Year 7 Year 8 2014 2015 Year 9 Year 10 2016 2017 $14,3351 $14,622 $14,915 $15,213 $15,51 0 0 0 0 0 257,394 262,542 267,793 273,149 278,612 0 0 0 0 0 141,764 144,599 147,491 150,441 153,450 413 494 421,764 430,199 -438,803 447,579 23,510 23,980 24,460 24,949 25,448 389,984 397,783 405,739 413,854 422,131 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 389,984 397,783 405,739 413,854 422,131 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0. 0 0 0 0 0 0 0 0 0 0 0 389,984 397,783 405,739 413,854 422,131 9,012 9 192 9,376 9,564 9,755 0 0 0 0 0 $398,996 $406,976 $415,115 $423,717T $431,886 19,873 I 20,271 1 20,676 21,090 21,512 b,-565 5,731 5,903 6,080 6,26 3 0 - 0 0 0 C F2,752 13,135 13,529 13,934 14,353 2,981 3 070 3,163 3,257 3,35 5 0 0 0 0 0 23,881 24,597 25,335 26,095 26,878 15,071 15,523 15,988 16,468 16,962 0 0 0 0 0 32,729 33,711 34,723 35,764 36,837 0 0 0 0 0 21,671 22,321 22,990 23,680 24,391 5 126 5,097 5,065 5,031 4,994 1,405 1,447 1,491 1,535 1,581 NET OPERATING INCOME $130,979 $131,300 $131,556 $131,745 $131,862 Debt Service Debt Service Coverage Project Cash Flow Required Debt Coverage (Gap)/Surplus for Cov. $116,812 $116,812 $116,812 $116,812 $116812 1.12 1 1.12 1.13 1 1.13 1.13 $14,167 $14,488 $14,744 $14 932 $15 049 at Hospital Hill Phase 11 Application Date: 9-4-03 Revised Date: ✓svp-, aye.,. 21-Year Operatin 00TF• nn not fill out this sei Proforma (Years 11-15 It is automatica el Calendar Year. ' NCOME: Low-Income, Rental Assisted Low-Income, Below 50% Low-Income, Below 60% Other Income (User-defined) Market Rate Gross Potential Income Less vacancy Effective Gross Residential Income Commercial (includes parking) Less vacancy Net Commercial Income Effective Rental Income other income: Laundry Other Income: Other Income: Other Income: Other Income: Other Income: Other Income: Total Gross Income Operating Subsidies Draw on operating Reserves Total Effective Income EXPENSES: Management Fee Administrative Aaintenance Resident Services Security Electrical Natural Gas Oil (heat) Water & Sewer Replacement Reserve Operating Reserve Real Estate Taxes Other Taxes Insurance MIP Other: Landowner Assoc Fee Total Operating Expenses NET OPERATING INCOME Debt Service Debt Service Coverage Project Cash Flow Required Debt Coverage. (Gap)/Surplus for COv. Year I1 Year 12 Year 13 Year 14 Year 2018 2019 2020 2021 $15 827 $16,144 $16467 $16,796 $17,132 , 0 0 0 0 184 284 289,868 295 665 301,57 9 307,610 , 0 0 0 0 0 156,519 15 9, 649 162,842 166,099 169,421 530 456 465,661 474,974 84,474 494 163 , 25,957 26,476 27,006 27,546 28,097 574 430 439,185 447,969 456 928 466,067 , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 929 456 067 466 574 430 439,185 447,969 , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 430 574 73'9.-18-5 447,969 456,92-8 466 067 950 9 10 149 10 352 10 559 10,770 , 0 0 0 0 0 $440 523 $449 334 $458 321 $467 487 $476,837 942 21 22,381 22,828 23,285 -23-1751 , 59 677 161,467 63 311 65 211 67,167 87 508 90 133 92,837 95 623 99,491 6 451 6,644 6,844 9 7 04 7 260 0 0 0 0 0 14 783 15 227 15 683 16 154 16,638 456 3 3 559 3,666 3 776 3,890 , 0 0 0 0 0 27 685 28,515 29,371 30,252 31,159 , 471 17 17,995 18 535 ---191.0-9-1 19,664 , 0 0 0 0 0 942 37 39,081 40,253 41.461 42,705 , 0 0 0 0 0 122 25 25,876 26,652, 27 452 28,275 , 4 954 4,911 4,864 4,813 4,758 1,629 12678 1,728 1,780 1,833 $308 620 $317 467 $326 573 $335 946 $345 592 ,I --T 1 $131,903 $131,967 $131 747 $4131,542 $131,245 $116812 $116812 $116812 $116813 $116812 13 1 1.13 1.13 1.12 . $15,091 $15.054 $14.935 $14729 $14433 7e at Hospital Hill Phase IT Application Date: 9 4-03 Date: i cdv v eratin r-'roTorma (years 16-21) NOTE. Do not fill out this section It is automatically filled in by oroaram. Calendar Year * Year 16 2023 Year 17 Year 18 Year 19 Year 20 Year 21 . COME: IN 2024 2025 2026 2027 2028 Low-income, Rent. Astd. Low-Income Below 50% $17475 $17 824 $18,181 $18 544 $18 9 15 $19 294 , Low-Income, Below 60% O 0 313 762 p 320 038 0 326,438 0 332 967 p 339 626 , 0 ther Income (User-de 0 0 , , 346 419 V Market Rate Gross Potential Incom 172,809 176,266 p 179,791 0 183,387 0 187,055 190,796 e Less vacancy 504 047 28 659 514127 594,410 534,898 545,596 556 508 Eff. .Gross Res. Income 475 388 29,232 484 896 29,816 30,413 31,021 31,641 :Commercial Income 0 494,594 504,486 514,575 524,867 Less vacancy 0 0 0 0 0 0 0 Net Commercial Income p 0 0 0 0 0 Effective Rental income Other Income: Laundry 475,388 0 484 896 0 494,594 0 504,486 p 514,575 524 0 867 Other p p 0 0 0 0 0 , 0 Other p 0 p 0 0 0 p 0 Other 0 0 0 p p p Other 0 0 0 0 0 0 0 Other p 0 p 0 0 0 0 ;Other p 0 0 p 0 0 0 Total Gross Income Operating Subsidies 475 388 484,896 0 494 594 0 504,486 0 514,575 0 524 867 Draw on Operating Res. 10 986 0 11 205 11 429 11,658 1,891 12.129 Total Effective Income $486,374 0 $496,101 0 $506,023 0 $516.143 0 $526,466 0 $536,996 EXPENSES: Management Fee Administrative 24,226 69 182 24,710 25 204 25.708 26,223 26,747 Maintenance 101 446 71,258 104 489 73,395 75,597 77,865 80,201 Resident Services 7 478 7 703 107 624 110 853 114,178 117 604; Security p , 7 934 8,172 R-417 8 669' Electrical Natural Gas 17 138 p 17 652 0 18 181 0 18 727 0 19 289 19 867 Oil (heat) 4 006 4126 4,250 4 378 4 509 4 644 0 0 0 , p p Water & Sewer Replacement Reserve 32094 20 254 33 057 34 049 35,070 36,122 37,206 Operating Reserve p 20 861 21,487 22,132 22,796 23,479 Real Estate Taxes Other Taxes 43 986 0 45 305 p 46,664 0 48,064 0 49,506 p 50 991 Insurance MIP p 29 124 0 29 997 0 30 897 p 31,824 p 32 779 , 33 762 Other: Landowner Assoc 4,699 1,888 4 634 1 945 4564 4 489 , 4,407 , 4,318 Total OperatingExpens $355, 1 520 , $365.738 2,003 $376 254 2,063 $387 0771 2,125 2,189 . $398.2 15 $409,679 NET OPER. INC. $130,854 $130,363 $129,769 $129 067 $128,251 $127,317 D b e t Service D b $116 812 $116 e t Service Coverage E q , 812 ?roj ect Cash Flow . $14, '9 $12,~fi 1 1.10 1.09 2equired Debt Coverage ;Gap)/Surplus for Cov. $128 494 $2 360 $128 494 $128,494.1- $128 494 $128,4941 $128,494 $1,870 $1,276 $573 ($243)11 _ $1177 Village at HOSDUal Rill Ph. Tf e y: vna uovpcvvvn wuuvcc ttvuocieg rirtunut, nppzxaitun t rerstvn c.iuj v Operating Expense Anal sis NOTE: Do not fill out this section. It is automatically filled in b program. wlanagement Fee Payroll, Administrative Payroll Taxes & Benefits, Admin. Legal Audit Marketing Telephone Office Supplies Accounting & Data Processing Investor Servicing DHCD Monitoring Fee Other: Other: Subtotal: Administrative Payroll, Maintenance Payroll Taxes & Benefits, Admin. Janitorial Materials Landscaping Decorating (inter. only) Repairs (inter. & ext.) Elevator Maintenance Trash Removal Snow Removal Extermination ,,ecreatlon ,her: ~btotal: Maintenance Resident Services Security Electricity Natural Gas Oil Water & Sewer Subtotal: Utilities Residential Residential Residential Commercial Commercial Total Per Unit Per S. F. Total Per S. F. $18,000 $450.00 $0.4411 $0 N/A $17143 $428.57 $0.42 $0 N/A $4,846 $121.15 $0.12 $0 N/A $1143 $28.57 $0.03 $0 N/A $5,857 $146.43 $0.14 $0 N/A $4,343 $108.57 $0.11 $0 N/A $3,429 $85.71 $0.08 $0 N/A $2,857 $71.43 $0.07 $0 N/A $1157 $28.93 $0.03 $0 N/A $1059 $26.48 $0.03 $0 N/A $1200 $30.00 $0.03 $0 N/A $800 $20.00 $0.02 $0 N/A $571 $14.29 $0.01 $0 N/A $44,405 $1 110.13 9- F $0 N/A $22,571 $564.28 $0.55 $0 N/A $7,457 $186.43 $0.18 $0 N/A $971 $24.29 $0.02 $0 N/A $0 $0.00 $0.00 $0 N/A $2114 $52.86 $0.05 $0 N/A $21029 $525.72 $0.52 $0 N/A $0 $0.00 $0.00 $0 N/A $4114 $102.86 $0.10 $0 N/A $5,886 $147.14 $0.14 $0 N/A $971 $24.29 $0.02 $0 N/A $0 $0.00 $0.00 $0 N/A $0 $0.00 $0.00 $0 N/A $65114 $1627.86 $1.60 $0 N/A 120.00 $0 $0.00 $0.00 Y $0 1 N/A $11000 $275.00 $0.27 $0 N/A $2,571 $64.29 $0.06 $0 N/A $0 $0.00 $0.00 $0 N/A $20,600 $515.00 $0.51 $0 N/A $34171 $854.29 $0.841 1 $0 N/A Replacement Reserve $13000 $325.00 $0.3211 $0 N/A Operating Reserve $0 $0.00 $0.0011 $0 N/A Real Estate Taxes Other. Taxes Insurance MIP Other: Landowner Assoc Fee Subtotal:Taxes, Insurance TOTAL EXPENSES $28,233 $705.82 $0.69 $0 N/A $0 $0.00 $0.00 $0 N/A $18,693 $467.33 $0.46 $0 N/A $5,241 $131.02 $0.13 $0 N/A $1,212 $30.30 $0.03 $0 N/A $53 379 $1,334.47 $1.31 $0 N/A $232,870 $5,821.74 $5.71 $0 N/A at Hospital Kll Phase 11 Application Date: 9-4-03 Revises Date: 91612006 Development Cost Anal sis NOTE: Do not fill out this section. It is automaticallv filled in by nroaram_ Acquisition: Land Acquisition: Building Acquisition Subtotal Direct Construction Budget Construction Contingency Subtotal: Construction Residential Total Residential Residential Commercial Commercial Per Unit Per S. F. Total Per S. F. $720,000 $18,000 $17.6711 $0 N/A $0 $0 $0.0011 $0 N/A $720,000 $18,000 $17.67 $0 N/A $7,263,458 $181,586 $178.23 $0 N/A $360,673 $9,017 $8.85 $0 N/A $7,624,131 $190,603 $187.08 $0 N/A General Development Costs: Architecture & Engineering $655,110 $16,378 $16.07 $0 N/A Survey and Permits $10,000 $250 $0.25 $0 N/A Clerk of the Works $90,000 $2,250 $2.21 $0 N/A Environmental Engineer $15,000 $375 $0.37 $0 N/A Bond Premium $0 $0 $0.00 $0 N/A Legal $150,000 $3,750 $3.68 $0 N/A Title and Recording $20,000 $500 $0.49 $0 N/A Accounting & Cost Certiiicat. $12,000 $300 $0.29 $0 N/A Marketing and Rent Up $16,000 $400 $0.39 $0 N/A Real Estate Taxes $10,000 $250 $0.25 $0 N/A Insurance $75,000 $1,875 $1.84 $0 N/A Relocation $0 $0 0 $0 N/A Appraisal $16,000 $400 9 $0 N/A Security $2,000 $50 5 $0 N/A Construction Loan Interest $60,000 $1,500 7 $0 N/A Inspecting Engineer $0 $0 0 $0 N/A Fees to:. Const Loan $48,760 $1,219 0 $0 N/A Fees to: Perm Loan $40,400 $1,010 9 $0 N/A MIP $5,250 $131 3 N $0 N/A Credit Enhancement Fees $0 $0 0 $0 N/A Letter of Credit Fees $0 $0 0 $0 N/A Other Financing Fees $32,000 $800 9 $0 N/A Development Consultant $0 $0 $0 N/A Other: $20 558 $514 $0 N/A Other. $84Z600 $2,115 $2.08 $0 N/A Soft Cost Contingency Subtotal: Gen. Dev. Subtotal: Acquis., Const., and Gen. Dev. $69904 $1,432, 582 $9 776 713 $1,748 $35,815 $244,418 $35.15 $239.90 $0 $0 $0 N/A N/A N/A Capitalized Reserves Developer Overhead Developer Fee $0 $0 $0.00 $0 N/A $0 $0 $0.00 $0 N/A $1 334 626 $33,366 $32.75 $0 N/A Total Development Cost $11,111,339 $277,783 $272.6411 $0 N/A Total Net* Development Cost $10,935,898 $273,397 $268.3411 $0 N/A (*Does not include any capitalized reserves nor any developer's. fees or overhead which are contributed or loaned to the project.) Y One Stop2000 Affordable Housing Finance Application [Version 1.1810 1-age -,.z Section 7 SIGNATURE PAGE Project Name Village at Hospital Hill Phase II Date: C)7 (month) " (day) (year) The applicant certifies that this application is complete and accurate, to the best of his/her knowledge,,and that there are no material misrepresentations. Mortgagor: rnn___ :...1 A;11 Ph- /I Date: 1 1 1 I I I I I I I I I I II +1 +1 U) Q O0 0 0 \ Lo \ g- ~a JJ OWN U The Village at Hospital Hill The village at Hospital Hill is a joint public-private redevelopment project which is the result of almost thirty years of effort by the Commonwealth, the City of Northampton, elected officials, advocates, and concerned citizens, to provide a forward-looking, economically viable reuse for the core campus of the former Northampton State Hospital (NSH), situated on a prominent hilltop west of downtown Northampton, Massachusetts. The Community Builders, Inc. (TCB) is working in conjunction with MassDevelopment to create a mixed-use community that consists of affordable and market-rate housing, live-work studios, a 60-80 unit assisted living facility for seniors, and a mix of retail, office, light industrial, research and development/multi-media space. PROJECT HISTORY AND DESCRIPTION The Commonwealth of Massachusetts and City of Northampton have been working on a plan to redevelop the Northampton State Hospital (NSH) for over 25 years. From its inception in the 1850s until the last patients departed in 1993, NSH was a major treatment center for the mentally ill. At its peak, the campus consisted of 538 acres of land and approximately 970,000 square feet of buildings, housed approximately 2,000 patients, and employed some 500 persons. Since the closure of the facility, the City of Northampton and the Commonwealth have sought to determine how the site and its buildings might best be reused. The final closure of the facility took place over a twelve-year period. In 1981, the closure began with the Ask shut down of the Old Main complex. At that time, the City, the Department of Mental Health (DMH), and Division of Capital Asset Management (DCAM) (formerly known as the Division of Capital Planning and Operations) started examining the future of surplus land and buildings at the State Hospital campus. During an extensive public process many alternatives were considered. These included a no build scenario, a mixed-use village on the historical campus, a new jail, a recreation area, suburban style housing, and a combination of open space and industrial development on the agricultural parcels. The planning process became more complex as additional facilities and uses on the site were closed. By 1993, the closure of the facility was nearly complete as the last patients departed. At that time, the City of Northampton developed a concept of a planned village program for the site. Through legislative initiative (Chapter 86 of 1994), reuse planning proceeded, with the establishment of a Citizen's Advisory Committee (CAC), evaluation of historic issues, implementation of site cleanup requirements, and master planning. In 1995, a Memorandum of Agreement (MOA) was entered into with the Massachusetts Historical Commission (MHC) providing for a sequenced evaluation of reuse opportunities prior to any demolitions taking place. Opportunities for . the conveyance of peripheral lands to be used for agricultural, recreational, conservation, affordable housing, and municipal purposes were identified, and a process for the transfer of the remaining land (126 acres) and approximately 880,000 square feet of building space to a private developer or developers was laid out by DCAM and the CAC. In October of 1997, The Commonwealth of Massachusetts, through DCAM, issued a Request for Proposals (REP) for a Master Plan to redevelop the primary campus. The RFP was developed with the input and approval of the CAC, a collaboration of local agencies and organizations from the City of Northampton including representatives from the Chamber of Commerce; the Housing Partnership; the Labor Council; Representatives from the Route 10, Route 66 and Grove Street Neighborhood Associations; the Valley Community Development Corporation; the Alliance for the Mentally Ill; the September 6, 2006 Village at Hospital Hill Phase II Page 2 of 2 Franklin/Hampshire Private Industry Council; the Industrial Affairs Council; and the Department of Mental Health. The CAC is chaired by the Mayor of Northampton. The goals for the redevelopment included in the RFP included the following: Job Creation and Economic Growth, Mixed-Income Housing, Job and Housing for Clients of DMH, Historic Preservation, Open Space Preservation, and Community Participation. A redevelopment team led by TCB was selected through the competitive RFP process. Working with the CAC, City of Northampton, and state officials, TCB developed a Master Plan that has been accepted as the basis for redevelopment of the hospital. The Master Plan envisions a full build-out of approximately 476,000 s.f. of mixed-use commercial space, comprising a mix of retail, office, light industrial, and research & development/multi media space as well as space for live-work studios, a child care center, a possible community center/museum area and the development of a 60-80 unit assisted living facility for seniors. The Master Plan also includes 207 residential units, 100 of which would be single-family homes and 107 of which would be mixed income rental housing. Overall, fifty percent of the residential units will be designated as affordable. Approximately 75% of the rental units and 25% of the homeownership units will be reserved for low and moderate-income households. The balance of the units will be rented or sold at market rates. In view of the size and complexity of the site, the Master Plan contemplates that build-out will occur over a period of several years. Redevelopment will proceed incrementally, with infrastructural needs being met in pace with the growth of demand. MassDevelopment, which is structured to facilitate state support of redevelopment undertakings, has assumed responsibility for the site from DCAM. They are also principally responsible for all demolition, environmental remediation, infrastructure, as well as all commercial development. TCB will retain responsibility for the residential piece. The redevelopment of the NSH represents an enormous opportunity. The central campus sits on a beautiful piece of land, high above Northampton, with extraordinary views of Northampton and the Connecticut River Valley, and the Holyoke Range on the horizon. NSH has the potential to be an engine for economic development, centrally located in Massachusetts with good access to the major economic centers of the New England states. Further, it will create a vibrant and attractive mixed-use community with jobs, housing, and modest amounts of convenience retail, in close proximity to the educational, cultural, and civic resources of Northampton. PHASE II As described above, this phase of the buildout consists of forty units. Twelve of these units will be reserved for clients of the Department of Mental Health. Residents of the units will be provided services through a DMH service provider. The Village at Hospital Hill represents a significant milestone for the Commonwealth in taking state surplus land and converting a large percentage of it to affordable housing. As you know, the reuse of surplus state land for affordable housing has been a major objective of the Cellucci, Swift and Romney administrations. TCB is pleased, after many years of planning, to finally bring another phase of this project to reality. Albany Boston Cincinnati Louisville New Haven New York Philadelphia Pittsburgh Providence Springfield Washington D.C. Exhibit 6: Market Information and Acquisition Value Market Information If a professional market study is available, please submit a copy with this Exhibit. If a study is not available, complete this Exhibit as thoroughly as possible. Additional information may be required during the review process. If an independent, professional appraisal of the proposed project is already available at this time, please submit it. If an appraisal has not been done, do not have one done at this time. The lenders may require that an appraisal be done, under their direction, at the sponsor's expense, during the review process, or prior to commitment or closing. 6:1 Market Data. Define the target rental and/or sales market (geographic area) within which the project will operate. What is the profile of the typical tenant/purchaser located within this market area? Include the following: age, sex, income level, type of household, etc. Within the City of Northampton, one of the strongest market segments is multi-family residential, which has high occupancy and rental rates, most likely due to limited land. The typical tenant seeking multi-family housing is a white female, age 18-64, middle-class. 6:2 Comparable Property: List below three (3) comparable market complexes and . indicate source (including telephone number) for information for each. Comparable No. 1: Name of Property: Location: Distance from Subject: Type (Walkup, Elevator, or Row): Amenities: Source of Information: Telephone No. of Source: Bedrooms 1 2 3 4 Hathaway Farms Townhouses 73 Barrett Street, Northampton, MA One mile Elevator, walkup Appliances, air conditioning, heat, hot water Zimmerman/Volk Associates, Inc. Market Study 908-735-6336 Square Feet 702 Market Rents $ 785 975 Vacancy 0% 0% 0% 0% 920 1120 1232 $ 1,195 $ 1,240 "One Stop2000"Application: Exhibit 6 Page 2 b: Comparable No. 2: Name of Property: Location: Distance from Subject: Type (Walkup, Elevator, or Row): Amenities: Source of Information: Telephone No. of Source: Hampton Court 20 Hampton Avenue, Northampton, MA One mile Elevator, walkup appliances, air conditioning, heat, hot water Zimmerman/Volk Associates Market Study 908-735-6336 Bedrooms/ Square Market Baths Feet Rents Vacancy 1 586 $ 800 0% 4 2000 $ 1,800 0% c: Comparable No. 3: Name of property: Location: Distance from Subject: Type (Walkup, Elevator or Row) Amenities: Source of Information Telephone # of source: Bedrooms/ Baths 1 BR/1BA 2 RR/1 RA 2 BR/2BA 3 BR/2BA 4 BR/2BA Rolling Green 1 A Rolling Green Drive, Amherst, MA Ten mile Walkup Appliances Zimmerman/Volk Associates Market Study 908-735-6636 Square Feet 759 986 1158 1158 1158 Market Rents $ 916 Vacancy 0% $ 1,175 0% $ 1,313 0% $ 1,575 0% $ 1,799 0% 6:3 Estimate the average attainable market rent in the area for units to be developed: 0 Bdr $ 1 Bdr $800 2 Bdr $1000 3 Bdr $1500 4 Bdr $ 6:4 State basic similarities and differences between proposed development and comparables. Explain any variances between comparables and estimated attainable market rents. The proposed development will include heat and hot water and appliances. The comparables listed above offer many of the same amenities. However, as noted in the attached Market Study, the new development is considered superior to all of the comparable rental proper ties for condition. ell's "One Stop2000"Application: Exhibit 6 Page 3 1 Acquisition Value 6:5 Estimated current value of property: A. Assessed value: (Attach supporting documents as part of this Exhibit.) $ As of: 20 Since this is state-owned property, it is tax-exempt and therefore, the City of Northampton has not assessed its value. B. Attach a copy of any appraisals of the existing property (land and buildings, if any). C. Include legal description of property and reference book and page number, which can be obtained from your local Registry of Deeds: Book: Page No: Line: n D. Existing mortgage amount N/A Mortgage holder: Date note is due: E. Current net operating income (actual revenue less operating expenses over the last twelve months): $ N/A F. Outstanding liens (list separately): To Whom Owed Amount Date Due "One Stop2000 " Application: Exhibit 6 Page 4 6:6 Last arm's-length transaction: If the site is under agreement (purchase and sale, option, etc.), do you have any identity of interest with the seller? P- Yes F No If yes, then fill in sections (a) through (d) below for the last sale of the site where there was no identity of interest. If you own the site, when did you acquire it? Was there an identity of interest with the last seller? f" Yes F No (If yes, then fill in sections (a) through (d) below for the last arm's-length transaction.) N/A a. b. C. d. Date of last arm's-length sale: Price of last arm's-length sale: Purchaser: Seller: Principals of seller corporation: NOTE: Most lenders will allow acquisition costs as part of the Total Development Cost only to the extent that such costs do not exceed the lower of (a) the last arm's-length transaction plus reasonable carrying and/or maintenance costs; or (b) the estimated current market value of the property. 6: 7 Carrying and Maintenance Costs Since Acquisition: If you have included any carrying and/or maintenance costs in the Total Development Cost (as part of the acquisition cost), attach as part of this Exhibit evidence of payment of those costs. n DRAFT RESIDENTIAL MARKET POTENTIAL The Village at Hospital Hill The City of Northampton Hampshire County, Massachusetts April, 2006 r On Behalf of THE COMMUNITY BUILDERS Conducted by ZIMMERMAN / VOLK ASSOCIATES, INC. 6 East Main Street Clinton, New Jersey 08809 '~J ZIMMERMANNOLK ASSOCIATES, INC. 6 East Main Street Clinton, New Jersey 08809 908 735-6336 • 908 735-4751 facsimile www.ZVA.cc • info@ZVA.cc Research & Strategic Analysis STUDY CONTENT Residential Market Potential (Draft) 1 Introduction 1 Market Potential 3 Market Potential For The Village At Hospital Hill 4 Table 1: Potential Housing Market 7 Optimum Residential Mix 8 Target Markets 9 Table 2: Optimum Residential Mix By Household Type 12 Site and Market Overview 14 Table 3: Summary Of Selected Rental Properties 17 Table 4: Summary Of Selected For-Sale Multi-Family And Single-Family Attached Developments 19 Table 5: Summary Of Selected Multi-Family And Attached Listings 20 Table 6: Summary Of Selected Single-Family Detached Listings 21 Optimum Market Position 23 Table 7: Optimum Market Position-500 Dwelling Units 25 Absorption Forecasts 31 Neighborhood Form 33 The New Urbanism 34 Building and Unit Types 35 Multi-Family 35 Single-Family Attached 35 Single-Family Detached 36 Methodology 37 Assumptions and Limitations 47 Rights and Study Ownership 48 f ZIMMERMANNOLK ASSOCIATES, INC. 6 East Main Street Clinton, New Jersey 08809 908 735-6336 - 908 735-4751 facsimile Info@ZVA.cc • www.ZVA.cc DRAFT RESIDENTIAL MARKET POTENTIAL The Village at Hospital Hill City of Northampton, Hampshire County, Massachusetts April, 2006 INTRODUCTIO This study identifies the depth and breadth of the potential market, and the optimum market position for new dwelling units-both adaptive re-use of existing buildings and new construction-within the Village at Hospital Hill, an approximately 70-acre property located next to Smith College in the City of Northampton, Hampshire County, Massachusetts. The redevelopment site is located on Route 66 (Prince Street) and was formerly the location -of the 47~ Northampton State Hospital, a public psychiatric hospital; several buildings, most of which are in poor condtion, remain on site. The property adjoins the Smith College playing fields to the east, and is surrounded by conservation lands to the north and west. The market feasibility of 500 new market-rate and affordable housing units that could potentially be constructed within a redevelopment of the site has been analyzed using Zimmerman/Volk Associates' proprietary target market methodology (the capture of qualified households that have the potential to rent or purchase new housing units on the site) and verified within the context of new and existing development in the Northampton market area. The target market methodology was developed in response to the challenges that are inherent in the application of supply/demand analysis to urban development and redevelopment. Historically, many urban neighborhoods have experienced population loss, often severe; since conventional supply/demand analyses generally project the continuation of past trends, the forecasts of "demand" in these neighborhoods are often minimal, if not negative. ~(J RESIDENTIAL MARKET POTENTIAL (Draft) Page 2 The Village at Hospital Hill City of Northampton, Hampshire County, Massachusetts April, 2006 Supply/demand analysis ignores the potentially-significant impact of newly-introduced housing supply on settlement patterns, particularly when that supply is specifically targeted to match the housing preferences and economic capabilities of the draw area households. In contrast to conventional supply/demand analysis, then-which is based on supply-side dynamics and baseline demographic projections-target market analysis determines the depth and breadth of the potential market derived from the housing preferences and socio-economic characteristics of households in the defined draw area, even in locations where no close comparables exist. Because it considers not only basic demographic characteristics, such as income qualification and age, but also less-frequently analyzed attributes such as mobility rates, lifestyle patterns and household compatibility issues, the target market methodology is particularly effective in defining a realistic housing potential for urban development and redevelopment. This study therefore determined: • Where the potential renters and buyers for new housing units to be developed within a mixed-use, mixed-income development of the Village at Hospital Hill are likely to move from (the draw areas); • Who currently lives in the draw areas and what they are like (the target markets); • How many are likely to move to the site if appropriate housing units were to be made available (depth and breadth of the market); • What their housing preferences are in aggregate (rental or ownership, multi- family or single-family); • What they will pay to rent or purchase newly-created dwelling units on the Village at Hospital Hill site (market-rate rents and prices); • What their alternatives are (new construction/existing housing in the Northampton area); and • How uc1 ickly they will rent or purchase the new units (absorption forecats/market capture). 0)", ZIMMERMAN/YOLK ASSOCIATES, INC.