Housing Incentive Fund 3

Application

(2015-2017)

Planning and Housing Development Division

2624 Vermont Ave

PO Box 1535

Bismarck, ND58502-1535

800/292-8621 or 701/328-8080

800/366-6888 (TTY)

•

North Dakota Housing Finance Agency • 2624 Vermont Ave • PO Box 1535 • Bismarck, ND 58502-1535 SFN 60013

Ph: 701/328-8080 • Fax: 701/328-8090 • Toll Free 800/292-8621 • 800/366-6888 (TTY) Page 1 of 13

HOUSING INCENTIVE FUND 3 APPLICATION (2015-2017)

PLANNING AND HOUSING DEVELOPMENT DIVISION

SFN60013 (03/16)

This is an application for financial assistancethrough the North Dakota Housing Incentive Fund (HIF). The application must be signed and dated.

APPLICATION TYPE(check one)

Preliminary Review Initial Application Updated as of: Final Application

Allocation Year / Application Cycle (Deadline)
/ Application Date

The applicant must fill out all applicable parts of the application form fully and include all documents and supplementary materials required. North Dakota Housing Finance Agency (NDHFA)staff is available to assist you prior to the submission of the application (Preliminary Review).

  1. GENERAL PROJECT INFORMATION
  1. Project Name and Location

Project Legal Name
Site Address
/ City
/ Zip Code
/ County
Legal Description
  1. Funds Requested

Amount of HIF Assistance Requested / Project located in a community witha population less than 20,000 per the 2010 U.S. Census?
Yes No
Project located in a community with a population less than or equal to 12,500 per the 2010 U.S Census?
Yes No
  1. Project Activity(A narrative describing the project in detail must also be included.)

New construction of multifamily rental housing;

Substantial rehabilitation of existing uninhabitable housing;

Substantial rehabilitation of habitablehousing at risk of becoming uninhabitable due to deterioration;

Adaptive reuse of existing non-residential building(s) that create new multifamily rental housing;

Retirement of Debt to allow conversion of market rate units to affordable units for extremely low to moderate incomehouseholds and/or essential service workers;

Acquisition rehab of existing HUD or USDA affordable housing at risk of becoming market rate;

Acquisition of publicly-owned housing for essential service workers.

  1. APPLICANT AND OWNER INFORMATION

Applicant must be one of the following: City, County or Tribal Housing Authority; experienced non-profit or for-profitdeveloper; or any entity with experience acting in a developer role.

  1. Capacity of Applicant (check all that apply)

Developer Contractor Sponsor Other (specify)

  1. Applicant

(NDHFA awards HIF assistance to the Applicant listed on the initial application. Awards are not transferable without prior consent of the Agency.)

Individual General Partnership Non-Profit Corporation

Limited Partnership Local Government Limited Liability Co

Housing Authority Corporation Other (specify)

Applicant WILL OR WILL NOTbethe final ownership entity.

Legal Name of Applicant / ApplicantFederal Taxpayer ID
Street Address
/ City
/ State
/ Zip Code
Contact Person
/ Applicant Entity DUNS #
Telephone Number / Email
/ Fax Number
If the Applicant will not retain ownership of the project, briefly describe the plan and timing for disposition.
  1. Final Project Ownership( Same as Applicant)

Legal Name of Final Ownership Entity
/ Final Ownership Entity Federal Taxpayer ID
Street Address
/ City
/ State
/ Zip Code
Contact Person
/ Final Ownership Entity DUNS #
Telephone Number / Email
/ Fax Number
Once completed, what fiscal year will the project follow? (ex: “Calendar Year”; “July 1 to June 30”; etc.)

Individual General Partnership Non-Profit Corporation

Limited Partnership Local Government Limited Liability Co

Housing Authority Corporation Other (specify)

  1. Contact Person During the Application Process( Same as Applicant)

Name
Company
Mailing Address
/ City
/ State
/ Zip Code
Telephone Number / Email
/ Fax Number
Capacity (i.e. Sponsor, Consultant, etc…)
  1. PROJECT CHARACTERISTICS

For purposes of this program, multi-family is defined as any project with four or more units intended as a rental.

  1. Type of Units

Apartments / Townhomes/Rowhomes / Detached / Other
  1. Site Information

Number of Sites / Site Area Size (in acres or square feet) / Current Zoning / Owned or Leased?

Check all utilities which are presently located up to or on the site:

Public Water / Private Well / Public Sewer / Private Septic / Electric / Natural Gas

Indicate any environmental factors present or in close proximity impacting this site, or “None”:

None / 100-yr floodplain / Airport / High tension wires / High noise level / Wetlands
Hazardous waste / RR tracks w/in 300ft / Industrial Site / Creek, river, or lake frontage
  1. Construction Type

Site-Built / Modular* / Panelized* / Other*
*If not site-built, provide manufacturer and manufacturing location:
Number of Residential Buildings / Number of Stories / Elevator? / Controlled Access/Security Building?

Check all other property improvements to be constructed:

Garages #: / Carports #: / Clubhouse / Maintenance Shed / Other
  1. Square Footage Detail for Project

Total Residential Square Footage
Total Common Area Square Footage
Total Parking Structure Square Footage
Total Commercial Area Square Footage
Total Other Square Footage (specify)
Total Project Square Footage / 0
  1. Target Population of Units (Indicate all types and number of units)

Family ( Unit(s) = %) Disabled/ADA Compliant ( Unit(s) = %)

Senior Restricted( Unit(s) = %) Homelessness ( Unit(s) = %)

Essential Service Workers ( Unit(s) = %)

If Essential Service Workers are targeted, indicate the employer(s) and number of units they have identified as needed:

@ Units

@ Units

@ Units

@ Units

If any units are to be block-leased by anyemployer, indicate the employer(s) and number of units to be reserved:

@ Units

@ Units

@ Units

@ Units

  1. Household Income Targeting of Units (A+B+C+D=E)

A. Total number of residential units serving households at or below 30% area median income
B. Total number of residential units serving households at or below 80% area median income (do not include A)
C. Total number of residential units serving households at or below 140% area median income (do not include A or B)
D. Total number of market rate units (no income or rent restrictions)
E. Total number of units in the project. / 0
  1. Tenant Paid Utility Allowance Information

Indicate the type of utility if paid by the (T)enant or (O)wner. Indicate allowance amountONLY if paid by (T)enant.

Type
(Electric, Gas) / Indicate Costs
Paid by Tenant (T) or Owner (O) / Studio or Efficiency / One Bedroom / Two Bedrooms / Three Bedrooms
Heating
Cooking
Hot Water
Lighting
Air Conditioning
Water/Sewer
Trash
Other
TOTAL COST / $ 0 / $ 0 / $ 0 / $ 0
  1. Unit Distribution and Rents

For an income and rent restricted unit, the combination of tenant-paid monthly rent and utility allowance may not exceed the maximum allowable rents using the HUD published income limits. See the HIF income and rent limits at our website: Utility allowances may be obtained from the closest major housing authority.

Do the Monthly Rents Include Utilities? Yes No Only For Restricted Units

Restricted Units (Income, Rent, and Essential Service Workers)

Unit Size / Number of Units / Monthly Tenant-Paid Rent / Total Monthly Rent
(# Units x Monthly Rent) / Tenant IncomeRestriction
(30%, 80%, 140% AMI) / Number of Essential Service Worker Units
# of Bedrooms / Square Feet
$ 0 / %
$ 0 / %
$ 0 / %
$ 0 / %
$ 0 / %
$ 0 / %
$ 0 / %
$ 0 / %
$ 0 / %
$ 0 / %
$ 0 / %
$ 0 / %
TOTALS / 0 / $ 0 / $ 0 / 0

Market Rate (Non-Restricted Units)

Unit Size / Number of Units / Monthly Tenant-Paid Rent / Total Monthly Rent
(# Units x Monthly Rent)
# of Bedrooms / Square Feet
$ 0
$ 0
$ 0
$ 0
$ 0
TOTALS / 0 / $ 0
  1. Rent Subsidies

Will the project be receiving any rent subsidies? No Yes: indicate the numberof subsidized units and the date the subsidy was approved in the appropriate column below.

# of Units / Approval Date
USDA Rural Development
HUD Project-Based Vouchers
HUD Tenant-Based Vouchers
Other
  1. Project Income

Total monthly tenant paid rent for all units / $ 0
Miscellaneous monthly income related to residential use (specify)
Miscellaneous monthly income related to residential use (specify)
Total miscellaneous monthly income / $ 0
Total annual miscellaneous income (total miscellaneous monthly income * 12) / $ 0
Total annual tenant paid rent for all units (total monthly tenant paid rent *12) / $ 0
Total annual residential income (annual tenant paid rent + annual miscellaneous) / $ 0
Vacancy allowance (7%) / $ 0
Adjusted annual gross residential income (annual residential income less vacancy allowance) / $ 0
  1. Annual Operating Expenses

Estimate as of the end of the first full year of operation. All expenses must be broken out by line item.

Administrative Expenses

Accounting/Audit
Advertising
Legal
Management Fee
Management Salaries/Taxes/Benefits
Office Supplies
Telecommunications
Other (specify)
Subtotal Administrative Expenses / $ 0

Utilities Expenses

Natural Gas
Electricity
Fuel Oil
Water and Sewer
Trash Removal
Other (specify)
Subtotal Utilities Expenses / $ 0

Maintenance Expenses

Maintenance Salaries/Taxes/Benefits
Maintenance Supplies
Painting/Cleaning (Unit Turn-Around)
Repairs
Grounds keeping and Snow Removal
Service Contracts (specify)
Extermination Contract
Other (specify)
Subtotal Maintenance Expenses / $ 0

Fixed Expenses

Real Estate Taxes
Payment In Lieu of Taxes
Special Assessments
Property Hazard and Liability Insurance
Rent-Free Unit (For On-Site Manager or Superintendant)
HIF Compliance Monitoring Fee ($50 + $35 per restricted unit) / $ 50
Other (specify)
Subtotal Fixed Expenses / $ 50

Total Expenses

Total annual residential operating expense / $ 50
Annual replacement reserve account contribution (Total units in the project 0x $300) / $ 0
Total Annual Project Operating Expenses(annual residential operating expense plus reserves) / $ 50
Total Annual Operating Expense per Unit
  1. Pro-Forma Cash Flow Projection

Please provide a projection of cash flow (pro-forma) using the income stated in Section 3G and expense figures stated in Section 3I for a 15 year period. The pro-forma will be calculated using the following prescribed method: Potential Gross Income less Vacancy Factor equals Adjusted Gross Income, less Operating Expenses equals Net Operating Income, less Debt Service equals Cash Flow. A pro-forma template is available on the HIF website for use as an alternative to the applicant’s own format the following constants:

  • Annual vacancy rate at 7%.
  • Trend annual increase in income at 2% and annual increase in expenses at 3%.
  • For replacement reserves, $300 per unit (including rent-free units) per year trended at 3% annually.
  1. Anticipated Value

What is the anticipated value of the property after project completion?
Source to support anticipated value (please provide a copy of documentation)
Appraisal Tax assessed value Other (please explain)
  1. SOURCES OF DEVELOPMENT FUNDS
  1. Non-Monetary Investment or Contribution

Please list any investment or contribution into the project which is not a direct source of cash funds. Examples of other eligible investment or contribution may include donated land, infrastructure, or buildings; property tax incentives; other municipal incentives which may reduce the project gap.

Source of Investment or Contribution / Description of Contribution / Value of Contribution
  1. Construction Period Financing

List all sources of construction period or short-term financing, including grants and equity, and provide documentation of same. If the applicant plans to finance part of the project out of its own resources, the applicant must prove to NDHFA’s satisfaction that such resources are available and committed solely for this purpose. Any owner equity contributions or deferred fees should also be listed below.

Source of Funding / Total Funds / Equity Funds / Debt Funds / Interest Rate / Term / Am / Annual Debt Service Payment
%
%
%
%
%
%
%
%
Total Construction Period Financing / $ 0 / $ 0 / $ 0 / $ 0
  1. Permanent Financing

List all permanent sources of funds, including grants and equity, and provide documentation of same. If the applicant plans to finance part of the project out of its own resources, the applicant must prove to NDHFA’s satisfaction that such resources are available and committed solely for this purpose. Any owner equity contributions or deferred fees should also be listed below.

Source of Funding / Total Funds / Equity Funds / Debt Funds / Interest Rate / Term / Am / Annual Debt Service Payment
%
%
%
%
%
%
%
%
Total Permanent Financing / $ 0 / $ 0 / $ 0 / $ 0
  1. Complete the following for each source of funds. (Attach additional sheets if necessary.)

Name of Lender/Source
/ Contact Name
Mailing Address
City
/ State
/ Zip Code
/ Telephone Number
Type Amortizing Loan Balloon Deferred Loan Forgivable Loan
Grant Owner Equity Other (specify)
Name of Lender/Source
/ Contact Name
Mailing Address
City
/ State
/ Zip Code
/ Telephone Number
Type Amortizing Loan Balloon Deferred Loan Forgivable Loan
Grant Owner Equity Other (specify)
Name of Lender/Source
/ Contact Name
Mailing Address
City
/ State
/ Zip Code
/ Telephone Number
Type Amortizing Loan Balloon Deferred Loan Forgivable Loan
Grant Owner Equity Other (specify)
Name of Lender/Source
/ Contact Name
Mailing Address
City
/ State
/ Zip Code
/ Telephone Number
Type Amortizing Loan Balloon Deferred Loan Forgivable Loan
Grant Owner Equity Other (specify)
Name of Lender/Source
/ Contact Name
Mailing Address
City
/ State
/ Zip Code
/ Telephone Number
Type Amortizing Loan Balloon Deferred Loan Forgivable Loan
Grant Owner Equity Other (specify)
Name of Lender/Source
/ Contact Name
Mailing Address
City
/ State
/ Zip Code
/ Telephone Number
Type Amortizing Loan Balloon Deferred Loan Forgivable Loan
Grant Owner Equity Other (specify)
  1. PROJECT COSTS AND USES

List ONLY the project’sresidentialcosts. (Specify what ALL “Other” costs are in the space provided) If the project contains commercial use space, provide a separate total project budget (residential and commercial) on another document.

  1. Land and Buildings

Itemized Costs / Budget / Per Unit
Acquisition
Demolition
Environmental Remediation
Site Improvements
Off-Site Improvements
Landscaping
New Construction
Rehabilitation
Contractor Profit, Overhead, & Gen Reqmts
Fixtures, Furniture, and Equipment
Construction Utilities
Hazard and Liability Insurance
Inspection Fees
Construction Contingency Reserve
Building Fees and Permits
Payment & Performance Bond
Other:
SUBTOTAL OF LAND AND BUILDINGS / $ 0
  1. Professional Fees

Itemized Costs / Budget / Per Unit
Architect Fee – Design
Construction Inspection / Supervision
Engineer / Survey
Testing – Geotechnical, Concrete, etc.
Attorney Fees
CPA – Cost Certification
Capital Needs Assessment
Appraisal
Market Study
Environmental Study
Other:
SUBTOTAL OF PROFESSIONAL FEES / $ 0
  1. Financing Fees

Itemized Costs / Budget / Per Unit
HIF Application Fee / $ 500
HIF Origination Fee (5% of Award) / $ 0
Construction Loan Origination Fee
Construction Loan Closing Costs
Construction Loan Interest
Bridge Loan Origination Fee
Bridge Loan Closing Costs
Bridge Loan Interest
Permanent Loan Origination Fee
Permanent Loan Closing Costs
Interim Real Estate Taxes and Specials
LIHTC Costs
Bond Issuance Costs
Other:
SUBTOTAL OF FINANCING / $ 500
  1. Developer Fees

Itemized Costs / Budget / Per Unit
Developer Fee – During / At Completion
Developer Fee – Deferred
Consultant Fee
Other:
SUBTOTAL OF DEVELOPER FEE / $ 0
  1. Reserve Account Capitalization

Itemized Costs / Budget / Per Unit
Rent-Up Reserve Account Capitalization
Operating Reserve Capitalization
Replacement Reserve Account Capitalization
Escrow Account Capitalization
Other:
SUBTOTAL OF RESERVE ACCOUNT CAPITALIZATION / $ 0
TOTAL PROJECT DEVELOPMENT COST / $ 500
  1. DEVELOPMENT TEAM
  1. General Contractor

Company Name
/ Contact Person
Mailing Address / City / State / Zip Code
Telephone Number
/ Fax Number
/ Email
  1. Architect

Company Name
/ Contact Person
Mailing Address / City / State / Zip Code
Telephone Number
/ Fax Number
/ Email
  1. Consultant

Company Name
/ Contact Person
Mailing Address / City / State / Zip Code
Telephone Number
/ Fax Number
/ Email
  1. Property Management Company

Company Name
/ Contact Person
Mailing Address / City / State / Zip Code
Telephone Number
/ Fax Number
/ Email
  1. Accountant

Company Name
/ Contact Person
Mailing Address / City / State / Zip Code
Telephone Number
/ Fax Number
/ Email
  1. Attorney

Company Name
/ Contact Person
Mailing Address / City / State / Zip Code
Telephone Number
/ Fax Number
/ Email
  1. PERMANENT SUPPORTIVE HOUSING

Will the project provide housing for individuals with special needs and / or offer supportive services to those tenants?

YesNo

If “Yes” above, how many units in the Project will be set aside and rented as permanent supportive housing to individuals with special needs?
  1. Indicate Population(s) to be Served

Chronic or persistently mentally ill
Frail Elderly / Drug dependent
Physically Disabled / Developmentally disabled
Homeless
  1. Provide a Detailed Explanation of the Supportive Services Provided(attach a separate narrative if necessary)
  1. Complete the Following for Each Supportive Service Provider(attach additional sheets if necessary)

Company Name
/ Contact Person
Mailing Address / City / State / Zip Code
Telephone Number
/ Fax Number
/ Email
Company Name
/ Contact Person
Mailing Address / City / State / Zip Code
Telephone Number
/ Fax Number
/ Email

Will participation in supportive services be mandatory for your tenants? Yes No

Do monthly rents include the cost of the supportive services? Yes No

The following must be provided with this application:

Support for the need for the special type of permanent supportive housing based on market demand, the current North Dakota State Consolidated Plan (citation only please, not the entire Plan), and the findings of the local social service agency;

Third-party verification of the services appropriate to the targeted population;

A detailed commitment from the service provider(s) to provide specific ongoing services consistent with the needs of the targeted population;

Evidence that the building and unit configurations meet the specific needs of the targeted population; for the physically disabled, this includes accessibility features that may exceed the ADA standards but make a project more functional for people with a disability (see the list of required features in the HIF3 2015-2017 Allocation Plan);

Certification from an architect or the Applicant that the accessible units and common areas meet or exceed Federal Fair Housing Accessibility Guidelines. (Only required for projects serving individuals with physical disabilities.)

  1. PROJECT TIMETABLE
  1. Provide the Following Project Milestone DateEstimates / Actualsfor the Project

Activity / MM/DD/YY
Acquisition
Zoning/Plat Approval
Tax Abatement Approval
Environmental Review Start
Site Plan Approval
Building Permit
Closing and Disbursement of Bridge or Pre-Development Financing
Closing and Disbursement of Construction Financing
Construction Start
Construction Completion
Start Lease-up / Rent-up of Rental Units
Sustained Occupancy of Rental Units
Closing and Disbursement of Permanent Financing
  1. APPLICANT CERTIFICATION
  1. The Undersigned Hereby Acknowledges the Following:
  1. That this application and all Exhibits provided by NDHFA to applicants for funding, including all sections herein relative to project costs, operating costs, and determinations of the amount of assistance necessary to make the project financially feasible, is provided only for the convenience of NDHFA in reviewing applications; that completion hereof in no way guarantees eligibility for the funding; and that any notations herein describing the requirements are offered only as general guides and not as legal authority;
  2. That the undersigned is responsible for ensuring that the proposed project will, in all respects, satisfy all applicable requirements of the HIF program and any other requirements imposed upon it by NDHFA at the time of commitment, should one be issued;
  3. That NDHFA may request or require changes in the information submitted herewith, and may substitute actual figures for any estimated figures provided therein by the undersigned and may commit assistance, if any, in an amount different from the amount requested;
  4. That commitments are not transferable without prior approval by NDHFA;
  5. That the requirements for applying for assistance and the terms of any commitment thereof is subject to change at any time by federal or state law, federal, state or NDHFA regulation, or other binding authority; and
  6. That a commitment will be subject to certain conditions to be satisfied prior to closing and disbursement of funds.
  1. Further, the Undersigned Hereby Certifies the Following:
  1. The Applicant shall not, in the provision of services, or in any other manner, discriminate against any person on the basis of race, color, creed, religion, sex, national origin, age, familial status or handicap; and
  2. The applicant shall ensure that all construction complies with the accessible and adaptive design and construction requirements of the Fair Housing Act; and
  3. That, to the best of its knowledge and belief, all factual information provided herein or in connection herewith is true and correct and all estimates are reasonable and can be obtained from any source named herein; and
  4. That it will at all times indemnify and hold harmless NDHFA against all losses, costs, damages, expenses, and liabilities of any nature or indirectly resulting from, arising out of or relating to NDHFA’s acceptance, consideration, approval, or disapproval of this request and the issuance or nonissuance of HIF assistance in connection herewith; and
  5. That it provides NDHFA the right to exchange information with other parties as deemed appropriate by NDHFA.
  6. THAT THE APPLICANT, DEVELOPER, SPONSOR, CONTRACTOR, OR ANY OTHER MEMBER OF THE DEVELOPMENT TEAM, INCLUDING ANY OF THEIR OWNERS, PARTNERS, OR BOARD MEMBERS ARE NOT CURRENTLY DEBARRED FROM CONTRACTING OPPORTUNITIES BY ANY AGENCY OF THE FEDERAL OR STATE OF NORTH DAKOTA GOVERNMENTS.

IN WITNESS WHEREOF, the undersigned, being a duly authorized agent of the Applicant, has caused this document to be executed in its name on thisday of , 20.