commonwealth apartments - 2009 va

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2009 Federal Low Income Housing Tax Credit Program

Application For Reservation

Deadline for Submission

9% Competitive Credits Applications Must Be Received At VHDA No Later Than 5:00 PM

Richmond, VA Time On May 15, 2009

Tax Exempt Bonds Applications should be received at VHDA at least one month before the

bonds are priced (if bonds issued by VHDA), or 75 days before the bonds are issued (if bonds are not issued by VHDA)

AffcMahfc Housmz Start., HeN ~

Virginia Housing Development Authority 601 South Belvidere Street Richmond, Virginia 23220-6500

v1.1.2009

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i.

Low Income Housing Tax Credit Application for Reservation

Please in·dicate._ ifthe<folloYi_ing item's are included with'}lou'r application by, checking' the appro'priate boxes. Your " assistan,ce in _org~nizing the submission,in the fol,lowing ordE!ir, and aCbJaIlY,using,tabs-to ma,rk them-as' shown, will facmtate, revJew 'o_t-your application .. ,Plea,sa ·note that"all-mandatorv items must be included for·the application to be processed. Jhe ·h:u:lusion of other items, ~ay increase'the'number,of poh~ts:for which:y~u are' eligible underVHDA's pO,int system"ofr:ankir,'g 'ap:J)I~cations, and may ass,ist VHOA ir 'i~ determination ,of the app_ropri,ate 3m()untof credits that it may reserve for the.:development. You are therefore ,encouraged to submit,as much',requested information as i~ available, bu~ their inclus .. iorfis,no't mandatory for review of your a.ppUcation.. .. . ... ..... ..

o Electronic Copy ofthe Microsoft Excel Based Application (MANDATORY) o Hard Copy of All Application Pages With Signature (MANDATORY)

o Scanned Copy ofthe Tax Credit Application with all Attachments (excluding market study and plans & specs) (MANDATORy)

o $750 Application Fee (MANDATORY)

Tab A:

D A.l o A.2 o D 0TabB: 0TabC: G21Tab D: DTabE:

0TabF: 0TabH: o Tab I: DTabJ: 0TabK: 0TabL: 0TabM: 0TabN: DTabO: 0TabP: 0TabQ: D Tab R: o Tab S: 0 TabT: DTabU: o Tab V: 0TabW: DTabX: 0TabY: 0TabZ

2009

Documentation of Development Location:

Qualified Census Tract Certification Revitalization Area Certification Location Map Surveyors Certification of Proximity To Public Transportation Partnership or Operating Agreement, including chart ot' ownership structure with percentage oi"interests (MANDATOR' Virginia State Corporation Commission Certification (MANDATORY) Principal's Previous Participation Certitication and Resume (MANDATORY) Nonprotit Questionnaire (MANDATORY for pOints or pool) The following documents need not be submitted unless requested by VHDA:

-Nonprofit Articles ofIncorporation -IRS Documentation of Nonprofit Status -Joint Venture Agreement (if applicable) -For-profit Consulting Agreement (if applicable)

Architect's CertHication (MANDATURY) PHA I Section 8 Notification Letter Local CEO Letter Homeownership Plan Site Control Documentation (MANDATORY) Plan of Development Certification Letter Zoning Certification Letter Copies of 8609s To Certify Developer Experience (Reserved) Plans and Specitications and Work Write-Up (MANDATURY) Documentation of Rental Assistance Documentation of Operating Budget Documentation of Project Budget Documentation of Financing Sources (Reserved) Nonprofit or LHA Purchase Option or Right of First Refusal Uriginal Attorney's Upinion (MANDATURY) (Reserved) Marketing Plan for units meeting accessibility requirements ofHUD section 504 Market Study (MANDATORY-Application will be disqualified if market study not submitted with the application)

Submission Checklist

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Low-Income Tax Credit For Reservation

I. General Information All code "Section" references are to, and the tenn "IRC" shalT be deemed to mean,

the Internal Revenue Code of 1986, as amended.

2009

A. Development Name and Location: 1. Name of Development Commonwealth Apartments 2. Address ofDeve!opment 603,604,607,612,621,622,625,626 A-B,608 A-D, and 615 A-F Connnonwealth Avenue

(Street) Wise Virginia

(City) (State)

3. If complete address is not available, provide longitude and latitude coordinates (x,y) from location on site your surveyor deems appropriate.

24293 (Zip Code)

D Documentation from surveyor attached (TAB A) (Only necessary if street address or street intersections are not available. (Coordinates should be the same as those listed on pg 13, if applicable)

4, The Circuit Court Clerk's office in which the deed to the property is or will be recorded: City/County of Wise County (ie; Richmond City, Chesterfield County; see application manual)

5. Does the site overlap one or more jurisdictional boundaries? DYes 13 No If yes, what other City/County is the site located in besides the one mentioned above?

6. Is the development located in a Metropolitan Statistical Area? DYes 13 No 7. Census Tract the development is located in: 511959909

Is this a Qualified Census Tract: DYes 0 No (If yes, attach required form in TAB A) 8. Is the development located in a Difficult Development Area? ~ 9. Is the development located in a revitalization area? 0 Yes D No (If yes, attach required form in TAB A) 10. Is the development an existing RD or HUD S8/236 development? DYes 0 No (If yes, attach required form in TAB Q)

Note: If there is an identity of interest betw"een the applicant and the seller in this proposal, and the applicant is seeking points in

this category, then the applicant must either waive their rights to the developer's fee or other fees associated with acquisition andlor rehabilitation, or obtain a waiver ofthis requirement from VHDA prior to application submission to receive these points.

a. Applicant agrees to waive all rights to any developer's fee or other fees associated with acquisition andlor rehab. DYes 0 n/a

b. Applicant has obtained a waiver of this requirement from VHDA prior to the application submission deadline, DYes 0 n/a

11. Is the development located in a census tract with a poverty rate <10% with no tax credit units currently present? DYes 0 No

12. Is the development listed on the RD 515 Rehabilitation Priority List? DYes 0 No

13. Congressional District 9 http://dlsgis.state.va.usfcongressf2001PDFsfchap7Tatl_odf

Planning District http://\vwIN.vapdc.orgfatloutpdcs.htm#PDC%20Map

State Senate District 40 http://dlsgis.state.va.usJsenateJ2001PDFslChap2Tatl.pdf

State House District http://dlsgis.state.va.uslHouseI2001HousePDFsiChap1Tatl.pdf

14, [0 Location Map Attached (TAB A)

B. Project Description: In the space provided below, give a brief description of the proposed project.

The Commonwealth Apartments project will rehabilitate this 40 year old property and provide more energy efficiency, and resident accessibility while maintaining the affordability. The Wise County Redevelopment and Housing Authority will continue to manage the property throughout the compliance period,

2009 Page 1

2009

Low Income Housing Tax Credit Application For Reservation

C. Reservation Request

I. Total annual credit amount request (Must be the same as Part IX-DS)

2. Credits requested from:

9% Credits o Nonprofit Set-Aside (All nonprofit owned developments which meet tests

described in Part lI-D hereof may select this)

0 Local Housing Authorities 0 Tidewater MSA Pool

$205,788

0 Northern Virginia MSA Pool 0 Small MSNMicropolitan Pool

0 Richmond MSA Pool 0 Rural Pool

0 Non-Competitive Pool (Preservation) 0 Non-Competitive Pool (Disability)

o Tax Exempt Bonds

o new construction, ill

o rehabilitation, ill

o acquisition and rehabilitation.

Federal Subsidies o The development will not receive federal subsidies.

o This development will receive federal subsidies for: o all buildings or

Osome buildings.

D. Type(s) of Allocation/Allocation Year

I. Regular Allocation

o All of the buildings in the development are expected to be placed in service this year. For those buildings the owner will, this year, request an allocation of 2008 credits for 0 new construction, or

o rehabilitation, QL

o acquisition and rehabilitation.

2. Carryforward Allocation

o All ofthe buildings in the development are expected to be placed in service within two years after the end of this calendar year, 2009, but the owner will have more than 10% basis in the development before the end of six months following allocation of credits. For those buildings, the owner requests a carryforward allocation of2009 credits pursuant to Section 42(h)(I)(E) for: o new construction, or

o rehabilitation, ill:

o acquisition and rehabilitation (even if you acquired a building this year and "placed it in service" for the purpose of the acquisition credit, you cannot receive the 8609 form for it until the rehab 8609 is issued for that building once the rehab work is "placed in service" in 2010 or 2011).

3. Federal Subsidies o The development will not receive federal subsidies.

o This development will receive federal subsidies for: o all buildings or

o some buildings.

Page 2

Low-Income Honsing Tax Credit Application For Reservation

E. Acquisition Credit Information

NOTE: If no credits are being requested for existing buildings being acquired for the development, so indicate and go on to Part F: 0 No Acquisition

Ten-Year Rule For Acquisition Credits

o All buildings satisfy the IO-year look-back rule ofIRe Section 42 (d)(2)(B), including the 10% basis/$15,000.00 rehab costs ($10,000 tor Tax Exempt Bonds) per unit requirement.

o All buildings qualify for an exception to the IO-year rule under IRe Section 42(d)(2)(D)(i), Subsection (I) 0 Subsection (II) 0 Subsection (III) 0 Subsection (IV) 0 Subsection (V) 0

o A waiver of the 10-year rule for all buildings has been or will be requested from the Department of the Treasury pursuant to IRe Section 42(d)(6)(B)

o Different circumstances for different buildings: Attach a separate sheet and explain for each building.

F. Rehabilitation Credit Information

NOTE: If no credits are being requested for rehabilitation expenditures, so indicate and go on to Section II. 0 No Rehabilitation

Minimum Expenditure Requirements

o All buildings in the development satisty the rehab costs per unit requirement of IRe Section 42(e)(3)(A)(ii).

o All buildings in the development quality tor the IRe Section 42(e)(3)(B) exception to the 10% basis requirement (4% credit only).

o All buildings in the development quality tor the IRe Section 42(t)(5)(B)(ii)(Il) exception.

o Different circumstances for different buildings. Attach a separate sheet and explam tor each bUlldmg.

2009 Page 3

Low·Income Housing Tax Credit Application For Reservation

II. OWNERSHIP INFORMATION

NOTE: VHDA may allocate credits only to the tax-paying entity which owns the development at the time of the allocation. The term "Owner" herein refers to that entity. Please fill in the legal name of the owner. The ownership entity must be formed prior to submitting this application. Any transfer, direct or indirect, of partnership interests (except those involving the admission of limited partners) prior to the placed-in-service date of the proposed development shall be prohibited, unless the transfer is consented to by VHDA in its sale discretion. IMPORTANT: The Owner name listed on this page must match exactly the owner name listed on the Virginia State Corporation Commission Certification.

Must be an individual or legally fo.rmed entity

A. Owner Information:

Name Commonwealth Apartments. LLC

Contact Person First: Monty Middle: Address PO Box 630, 107 Litchfield Street NW ------

Coeburn (Street) VA

Last: Salyer

24230 (City) (State) (Zip Code)

Federal I. D. No. 26-4272928 (If not available. obtain prior to Allocation) Phone 2763956104 Fax 276395·5874 Email address msa'yer@wcrhaora

Type of entity: 0 Limited Partnership 0 Other .:L:.:L:.:C=--___ -----------

o Individual(s) 0 Corporation o Owner's organizational documents (e.g. Partnership agreements) attached (Mandatory TAB B)

o Certification from Virginia State Corporation Commission attached (Mandatory TAB C)

Principal(s) involved (e.g. general pmtners, LLC members. controlling shareholders. etc.): Names ** Phone Commonwealth Apartments Development ( 276 395 6104

Wise County RHA· Monty Salyer. Executive Director

Type Ownership Managing Member

This should be 100% of the GP or managing member interest:

% Ownership 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

100.00%

** These should be the names of individuals who comprise the GP or managing members, not simply the names of separate partnerships or corporations which may comprise those components.

o Principals' Previous Participation Celtification attached (Mandatory TAB D). resume, & ownership structure chat

B. Seller Information:

2009

Name Wise County Redevelopment and Housing Autl Contact Person M:.:o::n::tY,-=S:::.al",y..:e:..r_~ _________ _ Address PO Box 630 Coeburn. vA 24230 Phone

Is there an identity of interest between tbe seller and owner/applicant? If yes. complete the following:

Principal(s) involved (e.g. general partners. controlling shareholders, etc.)

Names

Wise County RHA

Phone

2763956104

Type Ownership

Fee Simple

2763956104

o Yes 0 No

% Ownership

100.00%

0.00%

0.00%

0.00%

Page 4

Low-Income Housing Tax Credit Application For Reservation

C. Development Team Information: Complete the following as applicable to your development team.

l. Tax Attorney: Tom Thome-Thomsen Related Entity? DYes [7] No Firm Name: Applegate & Thome-Thomsen Address: 322 South Green Street, Suite 400, Chicago, IL 60607 Phone: 312491 3324 Fax: 3124216162

2. Tax Accountant: Mike Vicars Related Entity? DYes [7] No Firm Name: Dooley & Vicars CPA's Address: 21 S. Sheppard St. Richmond, VA 23221 Phone: 8043552808 ext 102 Fax: 8043593897

3. Consultant: Related Entity? DYes 0 No Firm Name: Role: Address: Phone: Fax:

Related Entity? [7] Yes 0 No 4. Management Entity (Contact): -'W-'-c=RH=A.:..... ___________ _ Firm Name: Monty Salyer Address: ~P;;O~BLox~6*30;:"Cro.,.,eb;-u-m-,-;V"A..,.-,.2"4"2"'30,,----------------------Phone: 2763956104 Fax: 2763955874

5. Contractor (Contact): ..:T~B::.:D~ ________________ _ Firm Name:

Related Entity? DYes [7] No

Address: Phone: Fax:

6. Architect: Jody Gibson Related Entity? DYes [7] No Firm Name: Lane Associates Address: 146 W. Main Street, Wytheville, VA 24382 Phone: 276-223-1216 Fax:

Related Entity? DYes [7] No 7. Real Estate Attorney: ~J~o;:.hn:::;;.:so::;n;,:K:;::an:::a=d:,:y--------------Firm Name: Kanady & Quinn Address: 7130 Glen Forest Drive, Suite 402, Richmond, VA 23226 Phone: 804282 - 8494 Fax:

8. Mortgage Banker: Related Entity? DYes 0 No Firm Name: Address: Phone: Fax:

9. Other (Contact): Related Entity? DYes 0 No Firm Name: Role: Address: Phone: Fax:

2009 Page 5


D. Nonprofit Involvement:

Applications For 9% Credits - Must be completed in order to compete in the nonprofit tax credit pool. AU Applicants - Must be completed for points for nonprofit involvement under the ranking system.

Tax Credit Nonprofit Pool Applicants: To qualify for the nonprofit pool, an organization described in IRe Section 501

(c)(3) or 501 (c)(4) and exempt from taxation under IRe Section 50 I (a), whose purposes include the fostering of low-income housing:

1. Must "materially participate" in the development and operation of the project throughout the compliance period, 2. Must own all general partnership interests in the development. 3. Must not be affiliated with or controlled by a for-profit organization. 4. Must not have been fonned for the principal purpose of competition in the nonprofit pool, and 5. Must not have any staff member, or member ofthe nonprofit's board of directors materially participate in the proposed project

as a for-profit entity.

All Applicants: To quality tor points under the ranking system, the nonprofit's involvement need not necessarily satisfy all of the requirements for participation in the nonprofit tax credit pool.

I. Nonprofit Involvement (All Applicants) If there is no nonprofit involvement in this development, please indicate by checking here: o and go on to part III

2. Mandatory Questionnaire If there ~ nonprotit involvement, you must complete the Non-Protit Questionnaire o Questionnaire attached (Mandatory TAR E)

3. Type of involvement o Nonprofit meets eligibility requirement for points only, not pool or

o Nonprofit meets eligibility requirements for nonprofit pool and points.

4. Identity of Nonprofit (All nonprofit applicants)

5.

The nonprofit organization involved in this development is:

o the Owner

Othe Applicant (if different from Owner)

o Other

(Name ofnonprofit)

(Contact Person)

(City) (State)

(Phone)

(Street Address)

(Zip code)

(Fax)

Percentage of Nonprofit Ownership (All nonprofit applicants) Specify the nonprofit entity's percentage ownership of the general partnership interest

2009

0.0%

Page 6


III. DEVELOPMENT INFORMATION

A. Structure and Units: I. Total number of all units in development

Total number ot rental umts m development Number oflow-income rental units Percentage of rental units designated low-income

26 26 bedrooms 42 26 bedrooms --"4""2-

100.00%

1.. The development's structural teatures are (check aU that apply):

o Row HouselTownhouse o Uetached Smgle-tamIly

o Garden Apartments o Detached Two-family

o Slab on Grade o Basement

o Crawl space Age of Structure: 40 o Elevator Number of stories: I -----

3. Number of new units Number of adaptive reuse units Number of rehab units

4. Total Floor Area For The Entire Development

5. unheated r loor Area (Breezeways, Balconies, Storage)

6. Nonresidential Commercial Floor Area (Not eligible for funding)

7. Total Usable Residential Heated Area

8. Number of Buildings (containing rental units)

9. Commercial Area Intended Use:

o bedrooms 0 ---'On-bedrooms --irO ---2"r.6"bedrooms --;r42"F"

21,550.00 (Sq. ft.)

U.UU (Sq. ft.)

0.00 (Sq. ft.)

21,550.00 (Sq. ft.)

10

10. Project consists primarily ofa building(s) which is (are) (CHOOSE ONLY ONE)

o Low-Rise (1-5 stories with any structural elements made of wood)

o Mid-Rise (5-7 stories with no structural elements made of wood)

o High-Rise (8 or more stories with no structural elements made of wood)

B. Building Systems: Please describe each ofthe tollowing in the space provided.

Community Facilities: Off street parking ----~--~-----------------------------

Exterior Finish: Brick ----~~-=~--~-----------------------------Heating/AC System: High efficiency heat-pumps

Architectural Style: SW Virginia Residential Vernacular - Baroque Period

2009 Page 7


C. Amenities:

I. SpecifY the average size per unit type: (Including pro rata share of heated common area) Assisted Lvg 0.00 SF IBdrm Eld 0.00 SF 3-Bdrm Gar I-Sty-Eff-Eld 0.00 SF 2Bdrm Eld 0.00 SF 4-Bdrm Gar I-Sty IBR-Eld 0.00 SF Eff-Gar 0.00 SF 2-Bdrm TH I-Sty 2BR-Eld 0.00 SF I-Bdrm Gar 728.20 SF 3-Bdrm TH Eff-Eld 0.00 SF 2-Bdrm Gar 891.75 SF 4-Bdrm TH

2. Total gross usable, heated square feet for the entire project less nonresidential commercial area:

21,550.00 0 Documentation attached (TAll F) Mandatory (Sq. ft.)

NOTE: All developments must meet VHDA's Minimum Design and Construction Requirements.

0.00 SF 0.00 SF 0.00 SF 0.00 SF 0.00 SF

By signing and submitting the Application For Reservation of Low Income Housing Tax Credits the applicant certifies that the proposed project budget, plans & specifications and work write-ups incorporate all necessary elements to fulfill these requirements.

3. Check the following items which apply to the proposed project: o Documentation attached (TAB F Architect Certitication) Mandatory

For any project, upon completion of construction/rehabilitation:

0% a(l) Percentage of2-bedroom units that have 1.5 bathrooms

(Optional Point items)

--0% a(2) Percentage of 3 or more bedroom units that have 2 bathrooms ---

0 b.

100% c.

0 d.

0 e.

0 f.

A community/meeting room with a minimum of 749 square feet is provided

Percentage of exterior walls covered by brick (excluding triangular gable ends, doors and windows)

All kitchen and laundry appliances meet the EPA's Energy Star qualified program requirements

All windows meet the EPA's Energy Star qualified program requirements

Every unit in the development is heated and air conditioned with either (i) heat pump units with both a SEER rating or 14.0 or more and a HSPF rating or 8.2 or more and a variable speed air handling unit (for through- the-wall heat pump equipment that has an EER rating of 11.0 or more), or (ii) air conditioning units with a SEER rating of 14.0 or more and a variable speed air handling unit, combined with gas furnaces with an AFUE rating of 90% or more

o g. Water expense is sub-metered (the tenant will pay monthly or bi-monthly bill)

o h. Each bathroom consists only of low-flow faucets (2.2 gpm max.) and showerheads (2.5gpm max.)

o i. Provide necessary infrastructure in all units for high speed cable, DSL or wireless internet sevice.

OJ. All water heaters meet the EPA's Energy Star qualified program requirements.

2009 Page 8

Low Income Housing Tax Credit Application For Reservation

For all projects exclusively serving elderly and/or handicapped tenants, upon completion of construction/rehabilitation: (Optional Point items)

o a.

Db.

Dc.

o d.

All cooking ranges will have front controls

All units will have an emergency call system

All bathrooms will have an independent or supplemental heat source

All entrance doors have two eye viewers, one at 48 II and the other at standard height

For all rehabilitation and adaptive reuse projects, upon completion of construction or or rehabilitation: (Optional Point items)

o The structure is listed individually in the National Register of Historic Places or is located in a registered historic district and certified by the Secretary of the Interior as being of historical significance to the district, and the rehabilitation will be completed in such a manner as to be eligible for historic rehabilitation tax credits

Accessibility

Check one or none of the tollowing point categories, as appropriate:

o For any non-elderly property in which the greater of 5 or 10% of the units (i) provide federal project-based rent subsidies or equivalent assistance in order to ensure occupancy by extremely low-income persons; (ii) conform to HUD regulations interpreting accessibility requirements of section 504 of the Rehabilitation Act; and (iii) are actively marketed to people with special needs in accordance with a plan submitted as part of the Application. (If special needs include mobility impairments the units described above must include roll-in showers and roll under sinks and front controls for ranges).

o For any non-elderly property in which the greater of5 or 10% of the units (i) have rents within HUD's Housing Choice Voucher ("HCV") payment standard; (ii) conform to HUD regulations interpreting accessibility requirements of section 504 of the Rehabilitation Act; and (iii) are actively marketed to people with mobility impairments, including HeV holders, in accordance with a plan submitted as part the Application.

[J For any non-elderly property in which at least four percent (4%) ofthe units conform to HUD regulations interpreting accessibility requirements of section 504 of the Rehabilitation Act and are actively marketed to people with mobility impainnents in accordance with a plan submitted as part of the Application.

Earthcraft or LEED Development Certification Applicant agrees to obtain Earthcraft or LEED certification prior to issuance of IRS Form 8609. Architect certifies in the Architect Certification that the development's design will meet the criteria for such certification. [J Yes - Earthcraft 0 Yes - LEED

If Yes to either, attach appropriate documentation at TAB F

LEED Accredited Design Team Member One or more members of the design team is a LEED accredited professional. [J Yes 0 No If Yes, attach appropriate documentation at TAB F

Universal Design - Units Meeting Universal Uesign Standards a. The architect of record certifies that units will be constructed to meet VHDA's Universal Design standards. 121 Yes 0 No If Yes, attach appropnate documentatlOn at TAB F

b. Number of Rental Units constructed to meet VHDA's Universal Design standards: 3 Units 12%

VHDA Certified Property Management Agent Owner agrees to use a VHDA Certified Property Management Agent to manage the property.

[J Yes 0 No

DYes 0 No [J NI A The market-rate units' amenities are substantially equivalent to those of the low-income units. If no. explain differences:

2009 Page 9


IV. TENANT INFORMATION

A. Set-Aside Election: UNITS SELECTED BELOW IN BOTH COLUMNS DETERMINE POINTS FOR THE BONUS POINT CATEGORY

Note: In order to qualify for any tax credits, a development must meet one of two minimum threshold occupancy tests. Either (i) at least 20% of the units must be rent-restricted and occupied by persons whose incomes are 50% or less of the area median income adjusted for family size (this is called the 20/50 test) or (ii) at least 40% of the units must be rent-restricted and occupied by persons whose incomes are 60% or less of the area median income adjusted for family size (this is called the 40/60 test), all as described in Section 42 of the IRe. Rent-and income-restricted units are known as low-income units. If you have more low-income units than required, you qualify for more credits. If you serve lower incomes than required, you receive more points under the ranking system.

Units Provided Per Household Type'

Income Levels Rent Levels # of Units 0/0 of Units # of Units % of Units

0 0.00% 40% Area Median 3 11.54% 40% Area Median U 0.000/, 50% Area Median Lj 88.4i5')7, 50% Area Median L6 100.00% 60% Area Median U 0.00% 60% Area Median U 0.00% Non-LMI Units U 0.00% Non-LMI Units

Lb 100.00')7, Total Lb 100.00% Total

B. Special Housing Needs/Leasing Preference:

1. If 100% ofthe low-income units will be occupied by either or both ofthe following special needs groups as defined by the United States Fair Housing Act, so indicate: . D Yes Elderly (age 55 or above) D Yes Physically or mentally disabled persons (must meet the requirements ofthe federal

Americans with Disabilities Act)

2. Specity the number of low-income units that will serve individuals and families with children by providing three or more bedrooms: 0 Number of units 0% of total low-income units

3. If the development has existing tenants, VHDA policy requires that the impact of economic and/or physical displacement on those tenants be minimized, in which Owners agree to abide by the Authority!s Relocation Guidelines for LIHTC properties.

Select one: D N/A [JJ Relocation Plan Documentation attached (TAB G)

4. Ifleasing preference will be given to applicants on public housing waiting list and/or Section 8 waiting list, so indicate: [JJ Yes D No D Locality has no such waiting list; If yes, provide the following information:

Organization which holds such waiting list: Wise County Redevelopment and Housing Authority Contact person (Name and Title) Sheila K. Ricketts Phone Number 276-395-6104 D Required documentation attached (TAB H)

5. If leasing preference will be given to individuals and families with children. (Less than or equal to 20% ofthe units must have of I or less bedrooms). DYes D No

2009 Page 10


V. LOCAL NEEDS AND SUPPORT

A. Provide the name and the address of the chief executive officer (City Manager, Town Manager, or County Administrator) of the political jurisdiction in which the development will be located: Chief Executive Officer's Name .;B=,e:.:v..:e.::rl,?y~C:: . ...:O:.w=en::;s:..... _________________________ _

Chief Executive Officer's Title ~Tc:o:.:w:::n~M~a~n~a!?g~er,-____________ -",,-_....,.==;:-;:=,,-_____ _ Street Address 501 W. Main Street Phone 2763283213 City Wise State V A Zip 24293

~-------

Name and title of local official you have discussed this project with who could answer questions for the local CEO: Beverly C. Owens, Town Manager [7] Letter from CEO attached (TAB I) D CEO letter to be submitted separately by June 1.2009

VHDA notification letter to CEO submitted prior to 5:00 PM 3/5/09: (9% competitive credits only)

If the property overlaps another jurisdiction please fill in the following: Chief Executive Officer's Name Chief Executive Officer's Title Street Address City ______________ State ________ _

Phone Zip

Name and title of local official you have discussed this project with who could answer questions for the local CEO: D Letter from CEO attached (lAB I) D CEO letter to be submitted separately by June 1.2009

VHDA notification letter to CEO submitted prior to 5:00 PM 3/5/09: (9% compet.itive credits only)

B. Project Schedule

ACTIVITY

A. CoolSb·uct,"on Loan

B.

2009

Lien

ACTUAL OR ANTICIPATED

[7] Yes D No

DYes D No

NAME OF PERSON

Page II


VI. SITE CONTROL

Note: Site control by the Owner identified herein is a mandatory precondition of review of this application. Documentary evidence of it, in the form of either a deed, option, purchase contract, or lease for a term longer than the period of time the property will be subject to occupancy restrictions must be included herewith. (9% Competitive Credits - An option or contract must extend beyond the application deadline by a minimum of four months.)

Warning: Site control by an entity other than the Owner, even if it is a closely related party, is not sufficient. Anticipated future transfers to the Owner are not sufficient. The Owner, as identified in Subpart II-A, must have site control at the time this Application is submitted.

NOTE: If the OWner receives a reservation of credits, the property must be titled in the name of or leased by (pursuant to a long-term lease) the Owner before the allocation of credits is made this year.

Contact us before you submit this application if you have any questions about this requirement.

A. Type of Site Control by Owner:

ApplIcant controls site by (select one and attach document - Mandatory TAB K)

o Deed - attached

D Long-term Lease - attached (expiration date:

D Option - attached (expiration date:

o Purchase Contract - attached (expiration date: 11/06/09

If more than one site for the development and more than one form of site control, please so indicate D and attach a separate sheet specifYing each site, number of existing buildings on the site, if any, type of control of each site, and applicable expiration date of form of site control. A site control document is required for each site.

B. Timing of Acquisition by Owner: Select one:

D Owner already controls site by either deed or long-term lease or

o Owner is to acquire property by deed (or lease for period no shorter than period property will be subject to occupancy restrictions) no later than 11/06/09 (must be prior to November 7, 2008).

If more than one site for the development and more than one expected date of acquisition by Owner, please so indicate D and attach separate sheet specifYing each site, number of existing buildings on the site, if any, and expected date of acquisition of each site by the Owner.

C. Market Study Data:

Obtain the following information from the Market Study conducted in connection with this tax credit application and enter below:

Project Wide Capture Rate - LIHTC Units

Project Wide Capture Rate - Market Units

Project Wide Capture Rate - All Units

Project Wide Absorption Period (Months)

2009

6.10% 0.00% 6.10%

7 months

Page 12


Site Description

I. Exact area of site in acres 8.262

2. Has 10caJity approved a final site plan or plan of development? o Yes 0 No o Required documentation form attached (TAB L)

3. Is site properly zoned for the proposed development?

o Yes 0 No o Required documentation form attached (TAB M)

4. Will the proposal seek to qualifY for points associated with proximity to public transportation? DYes 0 No o Required documentation form attached (TAB A)

D. Photographs

Include phOtographs ot the SIte and any eXIstmg structurets) III TAB U. lior rehabtlItatton proJects, provide interior pictures which document the necessity ofthe proposed work.

E. Plans and Specifications

Minimum submission requirements for all properties (new construction, rehabilitation and adaptive reuse)

1. A location map with property clearly defined.

2. Sketch plan of the site showing overall dimensions of main building(s), major site elements (e.g., parking lots and location of existing utilities, and water, sewer, electric,

gas in the streets adjacent to the site). Contour lines and elevations are not required. 3. Sketch plans of main buHding(s) reflecting overall dimensions of:

a. Typical floor planes) showing apartment types and placement

b. Ground floor planes) showing common areas; c. Sketch floor planes) of typical dweUing unites); d. Typical wall section(s) showing footing, foundation, wall and floor structure.

Notes must indicate basic materials in structure, floor and exterior finish.

In addition: required documentation for rehabilitation properties

A unit-by-unit work write-up.

o Plans and specificationslWlit-by-unit work writeup attached (TAB P) or

o Plans and specifications/unit-by-unit work writeup submitted separately

2009 Page 13


VII. OPERATING BUDGET

A. Rental Assistance

1. Do or will any low-income units receive rental assistance? [lYe, 0 No

2. If yes, indicate type of rental assistance:

o Section 8 New Construction Substantial Rehabilitation

o Section 8 Moderate Rehabilitation

o Section 8 Certificates

o Section 8 Project Based Assistance

o RD 515 Rental Assistance

o Section 8 Vouchers

o State Assistance

o Other:

3. Number of units receiving assistance:

Number of years in rental assistance contract: Expiration date of contract: o Contract or other agreement attached (TAB Q)

B. Utilities

1. Monthly Utility Allowance Calculations

Utilities Type of Utility (Gas, Eledric, Oil, etc.)

Heating DOwner

Air Conditioning DOwner

Cooking DOwner

Lighting DOwner

Hot Water DOwner

Water DOwner

Sewer DOwner

Trash EJOwner

Total utility allowance for costs paid by tenant

26

Utilities Paid by:

~Tenant

~Tenant

[OTenant

I!:JTenant

E]Tenant

~Tenant

I!:JTenant

DTenaot

2. Source of Utility Allowance Calculation (Attach Documentation TAB Q)

o HUD

o Utility Company (Estimate)

o Utility Company (Actual Survey)

2009

Enter Allowances by Bedroom Size O-bdr I-bdr

0 20

0 20

0 \0

0 5

0 5

0 \0

0 9

0 0

'0 $79

[l LocalPHA

o Other:

2-bdr 3-bdr

20

20

15

\0

6

IS

10

0

$96

4-br

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

$0 $0

Page 14


C. Revenue L Indicate the estimated monthly income for the Low-Income Units: **

Total Number of Total Monthly

Unit Type Tax Credit Units Rental Income

Efficiency Units 0 $0 1 Bedroom Units 10 $3,652 2 Bedroom Units 16 $6,800 3 Bedroom Units 0 $0 4 Bedroom Units 0 $0

Total Number of Tax Credit Units 26

Plus Other Income Source (list): $0 Equals Total Monthly Income: $10,452 Twelve Months x12 Equals Annual Gross Potential Income $125,424 Less Vacancy Allowance ( 7.0% ) $8,780 Equals Annual Effective Gross Income (EGI) - Low Income Units $116,644

.... Beginning at Row 75 enter the appropriate data for both tax credit and market rate units in the yellow shaded cells.

2 Indicate the estimated monthly income for the Market Rate Units· ** Total Number of Total Monthly

Unit Type Market Units Rental Income

Efficiency Units 0 $0 1 Bedroom Units 0 $0 2 Bedroom Units 0 $0 3 Bedroom Units 0 $0 4 Bedroom Units 0 $0

Total Number of Market Units 0

Plus Other Income Source (list): $0 Equals Total Monthly Income: $0 Twelve Months x12 Equals Annual Gross Potential Income $0 Less Vacancy Allowance ( 0.0% ) $0 Equals Annual Effective Gross Income (EGI) - Market Rate Units $0

o Documentation in Support of Operating Budget attached (TAD R)

List number of units by type: TOTAL UNITS

ASSISTED L VG EFF-ELD 1 BDRM-ELD 2BDRM-Et.D EFF-GAR 1 BDRM-GAR

0 0 o o 10

2BDRM-GAR 3BDRM-GAR 4BDRM-GAR 2BDRM-TH 3BDRM·TH 4BDRM-TH

16 0 o o o o

1 STY-EFF·ELD II 1 STY-1 BR-ELD II 0

1 STY-2 BR-ELD Note: Please be sure to enter the number of units in the 1---'-"'-"'="-'''''''---tt--'-'''-'''::''''''''''--tt--",-,-"eo:::''''''''---1 appropriate unit category. If not, you will find an error on

the scoresheet at Sa, 6a & 6b.

List number of units by type: TAX CREDIT UNITS

ASSISTED L VG EFF-ELD 1 BDRM-ELD 2BDRM-ELD EFF-GAR 1 BDRM-GAR

0 0 o o o 10

2BDRM-GAR 3BDRM-GAR 48DRM-GAR 2BDRM_TH 3BDRM-TH 4BDRM-TH

16 0 o o o o

1 STY -EFF-Et.D II 1 STY-1 BR-ELD II 0 0

1 STY -2 8R-Et.D

I -E~cl~nc_y: Un_l~

Unit Type I Net Rentable Monthly Rent Total

Rent Targeting Number Units Sguare Feet PerUnil Monthly Rent

2009

Efficiency - 40% B 0.00 I: -

1

$ -Efficiency - 40% 0.00 - $ -Efficiency ~ 40% 0.00 - $ -

Page 15

Efficiency - 40%

Efficiency· 40%

Efficiency" 40%

Efficiency - 40%

Efficiency - 40%

Efficiency - 40%

Efficiency" 40%

Efficiency" 40%

Efficiency - 40%

Efficiency - 40%

Efficiency - 40%

Efficiency - 40%

Efficiency" 50%

Efficiency" 50%

Efficiency - 50%

Efficiency - 50%

Efficiency - 50%

Efficiency - 50%

Efficiency - 50%

Efficiency" 50%

Efficiency - 50%

Efficiency - 50%

Efficiency - 50%

Efficiency - 50%

Efficiency - 50%

Efficiency - 50%

Efficiency" 50%

Efficiency - 60%

Efficiency - 60%

Efficiency - 60%

Efficiency - 60%

Efficiency - 60%

Efficiency" 60%

Efficiency" 60%

Efficiency - 60%

Efficiency - 60%

Efficiency - 60%

Efficiency - 60%

Efficiency - 60%

Efficiency. 60%

Efficiency. 60%

Efficiency - 60%

Total Efficiency

Tax Credit Units:

Efficiency - Market

Efficiency - Market

Efficiency" Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Efficiency - Market

Total Efficiency

Market Units:

Total Eff. Units:

2009 Rent Targeting

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

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Number Units

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1·Bedroom Units

Net Rentable

Square Feet

$ -$ -$

$ -$ -$ -$ -$

$

$ -$ -$ -

$ -$ -$

$ -$ -$ -$ -$ -$

$

$ -$ -$ -$ -$ -

$

$

$ -$ -$ -$ -$ -$ -$

$ -$ -$ -$ -$ -$ -Total Monthly Eff.

Tax Credit Rent:

$ -$ -$ -$ $ $ -$ -$ -$ -$ -$ $ $ -$ -$ -

Total Monthly

Eft. Market Rent:

Total Eff. Rent

Monthly Rent

Per Unit

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$ $

$

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$

$

---

----

-----

-----

----

----

-

-

-----

-----

Total

Monthly Rent Page 15

1 BR-40% 3 658.00 $ 319 $ 957

1 BR-40% 0 0.00 $ $

1BR-40% 0 0.00 $ $

1 BR-40% 0 0.00 $ $ 1BR-40% 0 0.00 $ $

1 BR-40% 0 0.00 $ $

1BR-40% 0 0.00 $ $ 1BR-40% 0 0.00 $ $

1 BR-40% 0 0.00 $ $ 1 BR-40% 0 0.00 $ $

1 BR-40% 0 0.00 $ $

1 BR-40% 0 0.00 $ $ 1 BR-40% 0 0.00 $ $

1BR-40% 0 0.00 $ $ 1BR-40% 0 0.00 $ $

1 BR-50% 7 658.00 $ 385 $ 2,695

1BR-50% 0 0.00 $ $

1BR-50% 0 0.00 $ $

1BR-50% 0 0.00 $ $ 1 BR-50% 0 0.00 $ $

1BR-50% 0 0.00 $ $ 1BR-50% 0 0.00 $ $ 1 BR-50% 0 0.00 $ $

1BR-50% 0 0.00 $ $ 1BR-50% 0 0.00 $ $

1BR-50% 0 0.00 $ $

1BR-50% 0 0.00 $ $ 1 BR-50% 0 0.00 $ $

1BR-50% 0 0.00 $ $

1 BR-50% 0 0.00 $ $

1BR-60% 0 0.00 $ $

1BR-60% 0 0.00 $ $ 1BR-60% 0 0.00 $ $

1BR-60% 0 0.00 $ $ 1BR-60% 0 0.00 $ $

1 BR-60% 0 0.00 $ $

1 BR-60% 0 0.00 $ $ 1 BR-60% 0 0.00 $ $

1BR-60% 0 0.00 $ $

1BR-60% 0 0.00 $ $ 1BR-60% 0 0.00 $ $

1BR-60% 0 0.00 $ $ 1 BR-60% 0 0.00 $ $ 1BR-60% 0 0.00 $ $

1BR-60% 0 0.00 $ $

TotaI1-BR Total Monthly 1-BR

Tax Credit Units: 10 6,580.00 Tax Credit Rent: $ 3,652

1 BR- Market 0 0.00 $ $

1 BR - Market 0 0.00 $ $

1 BR - Markel 0 0.00 $ $

1 BR - Market 0 0.00 $ $

1 SR- Market 0 0.00 $ $

1 BR- Market 0 0.00 $ $ 1 BR- Market 0 0.00 $ $

1 BR- Market 0 0.00 $ $

1 BR - Market 0 0.00 $ $

1 BR - Market 0 0.00 $ $

1 SR - Market 0 0.00 $ $

1 BR- Market 0 0.00 $ $ 1 BR- Market 0 0.00 $ $

1 SR- Market 0 0.00 $ $

1 BR - Market 0 0.00 $ $

Tota11-BR

Market Units: 0 0.00 Total Monthly

1-BR Market Rent: $

2009 Page 15

Tota11·BR Units: 10 TotaI1·BR Rent $ 3,652

. 2-Bedroom Units

Net Rentable Monthly Rent Total Rent Targeting Number Units Sguare Feet Per Unit Monthly Rent

2BR-40% 0 0.00 $ - $ -2BR-40% 0 0.00 $ - $ -2 BR-40% 0 0.00 $ - $ 2BR-40% 0 0.00 $ $ 2BR-40% 0 0.00 $ - $ -2 BR-40% 0 0.00 $ - $ -2BR-40% 0 0.00 $ - $ -2BR-40% 0 0.00 $ - $ -2BR-40% 0 0.00 $ - $ -2BR-40% 0 0.00 $ - $ 2BR-40% 0 0.00 $ $ 2BR-40% 0 0.00 $ $ -2BR-40% 0 0.00 $ $ -2BR-40% 0 0.00 $ - $ -2BR-40% 0 0.00 $ - $ -

2BR-50% 3 844.00 $ 425 $ 1,275

2BR-50% 13 797.00 $ 425 $ 5,525 2BR-50% 0 0.00 $ $ 2BR-50% 0 0.00 $ $ 2BR-50% 0 0.00 $ - $ -2BR-SO% 0 0.00 $ - $ -2BR-SO% 0 0.00 $ - $ -2BR-50% 0 0.00 $ - $ -2BR-50% 0 0.00 $ - $ -2BR-50% 0 0.00 $ $ -2BR-SO% 0 0.00 $ - $ 2BR-50% 0 0.00 $ $ -( 2BR-SO% 0 0.00 $ $ -2BR-SO% 0 0.00 $ - $ -2BR-SO% 0 0.00 $ - $ -

2BR-60% 0 0.00 $ - $ -2BR-60% 0 0.00 $ $ -2BR-SO% 0 0.00 $ $ 2BR-60% 0 0.00 $ $ 2BR-60% 0 0.00 $ - $ -2BR-SO% 0 0.00 $ - $ -2BR-60% 0 0.00 $ - $ -2BR-60% 0 0.00 $ - $ -2BR-SO% 0 0.00 $ - $ -2BR-60% 0 0.00 $ $ -2BR-SO% 0 0.00 $ $ 2BR-SO% 0 0.00 $ $ 2BR-60% 0 0.00 $ - $ -2BR·SO% 0 0.00 $ - $ -2BR-60% 0 0.00 $ - $ -Tota12·BR Total Monthly 2-BR

Tax Credit Units: 16 12,893.00 Tax Credit Rent: $ 6,800

2 BR - Market 0 0.00 $ $ 2 BR - Market 0 0.00 $ - $ -2 BR- Market 0 0.00 $ - $ -2 BR- Market 0 0.00 $ - $ -2 BR - Market 0 0.00 $ - $ -2 BR - Market 0 0.00 $ - $ -2 BR - Market 0 0.00 $ $ -2 BR - Market 0 0.00 $ $ -2 BR - Market 0 0.00 $ $ 2 BR - Market 0 0.00 $ $ 2 BR - Market 0 0.00 $ $

2009 2 SR- Market 0 0.00 $ - $ Page 15

2 BR - Market B 0.00 § $

2 BR- Market 0.00 $ - $ -2 BR - Market 0,00 $ - $ -

Tota12-BR


2·BR Market Rent: $

Total 2-BR Units: 16 Total 2·BR Rent $ 6,800

,-, ,3-Bed.room U':Iits

Net Rentable Monthly Rent Total

Rent Targeting Number Unjts S9Uiilre Feet Per Unit Monthly Rent

3BR-40% 0 0.00 $ - $ -3BR-40% 0 0.00 $ - $ -3BR-40% 0 0,00 $ - $ -3BR-40% 0 0.00 $ - $ -3BR-40% 0 0.00 $ - $

3BR-40% 0 0.00 $ - $

3BR-40% 0 0.00 $ - $ -3BR-40% 0 0.00 $ - $ -3BR-40% 0 0.00 $ $ -3BR-40% 0 0.00 $ - $

3BR-40% 0 0,00 $ - $

3BR-40% 0 0.00 $ - $ -3BR-40% 0 0.00 $ - $ -3BR-40% 0 0.00 $ $ -3BR-40% 0 0.00 $ - $

3BR-50% 0 0,00 $ - $ -3BR-50% 0 0.00 $ $ -3BR-50% 0 0.00 $ $ -3BR-50% 0 0.00 $ - $

( 3BR-50% 0 0.00 $ - $

3BR-50% 0 0.00 $ - $ -3BR-50% 0 0.00 $ - $ -3BR-50% 0 0.00 $ - $ -3SR-50% 0 0,00 $ - $ -3BR-50% 0 0.00 $ - $

3BR-50% 0 0.00 $ - $ -3BR-50% 0 0.00 $ $ -3BR-50% 0 0.00 $ - $ -3BR-50% 0 0.00 $ - $

3BR-50% 0 0,00 $ - $ -

3BR-60% 0 0.00 $ $ -3BR-60% 0 0.00 $ - $ -3BR-60% 0 0.00 $ - $

3BR-60% 0 0.00 $ - $ -3BR-60% 0 0.00 $ $ -3BR-60% 0 0.00 $ - $ -3BR-60% 0 0,00 $ - $ -3BR-60% 0 0,00 $ - $

3BR-60% 0 0.00 $ - $ -3BR-60% 0 0.00 $ $ -3BR-60% 0 0.00 $ - $ -3BR-60% 0 0.00 $ - $ -3BR-60% 0 0.00 $ - $

3BR-60% 0 0.00 $ - $ -3BR-60% 0 0.00 $ - $ -Tota13-BR Total Monthly 3-BR

Tax CredIt Units: 0 0,00 Tax Credit Rent: $ -

2009

3 BR - Market B 0.00 § $

3 BR- Market 0.00 $ - $ -3 SR- Market 0.00 $ - $ - Page 15

3 BR- Market 0 0.00 $ $ -3 BR - Market 0 0.00 $ $ -3 BR - Market 0 0.00 $ - $ -3 BR - Market 0 0.00 $ - $ 3 BR- Market 0 0.00 $ - $ 3 BR- Market 0 0.00 $ $ -3 BR- Market 0 0.00 $ $ -3 BR - Market 0 0.00 $ - $ -3 BR - Market 0 0.00 $ - $ 3 BR - Market 0 0.00 $ - $ 3 BR - Market 0 0.00 $ - $ 3 BR- Market 0 0.00 $ $ -

Tota13·BR



Total 3·BR Units: 0 Total 3·BR Rent $ -

4-Bedroom Units ...

Net Rentable Monthly Rent Total

Rent Targeting Number Units Sguare Feet PerUnil Monthly Rent

4BR-40% 0 0.00 $ - $ 4BR-40% 0 0.00 $ - $ -4BR-40% 0 0.00 $ $ -4BR-40% 0 0.00 $ $ -4BR-40% 0 0.00 $ - $ -4BR-40% 0 0.00 $ - $ -4BR-40% 0 0.00 $ - $ 4BR-40% 0 0.00 $ - $ 4BR-40% 0 0.00 $ - $ -4BR-40% 0 0.00 $ $ -4BR-40% 0 0.00 $ $ -4BR-40% 0 0.00 $ $ -4BR-40% 0 0.00 $ - $ -4BR-40% 0 0.00 $ - $ -4BR-40% 0 0.00 $ - $ -

4BR-SO% 0 0.00 $ $ 4BR-SO% 0 0.00 $ $ -4BR-SO% 0 0.00 $ $ -4BR-SO% 0 0.00 $ - $ -4BR-SO% 0 0.00 $ - $ -4BR-SO% 0 0.00 $ - $ 4BR-SO% 0 0.00 $ - $ 4BR-SO% 0 0.00 $ - $ 4BR-SO% 0 0.00 $ $ -4BR-50% 0 0.00 $ $ -4BR-SO% 0 0.00 $ - $ -4BR-SO% 0 0.00 $ - $ -4BR-SO% 0 0.00 $ - $ -4BR-SO% 0 0.00 $ - $ 4BR-SO% 0 0.00 $ - $

4BR-60% 0 0.00 $ $ -4BR-60% 0 0.00 $ $ -4BR-60% 0 0.00 $ - $ -4BR-60% 0 0.00 $ - $ -4BR-60% 0 0.00 $ - $ 4BR-60% 0 0.00 $ - $ 4BR-60% 0 0.00 $ - $ 4BR-60% 0 0.00 $ $ -4BR-60% 0 0.00 $ $ -4BR-60% 0 0.00 $ - $ -4BR-60% 0 0.00 $ - $ -4BR-60% 0 0.00 $ - $ -4BR-60% 0 0.00 $ - $ -

2009 4BR-60% 0 0.00 $ - $ - Page 15

4BR-60% 0 II 0.00 11$ $

TotaI4-BR Total Monthly 4-BR

Tax Credit Units: 0 0.00 Tax Credit Rent: $

4 BR - Market 0 0.00 $ $

4 BR - Market 0 0.00 $ $

4 BR - Market 0 0.00 $ $

4 BR - Market 0 0.00 $ $

4 SR- Market 0 0.00 $ $

4 SR- Market 0 0,00 $ $

4 SR- Market 0 0.00 $ $

4 BR - Market 0 0.00 $ $

4 BR - Market 0 0.00 $ $

4 BR - Market 0 0.00 $ $

4 BR - Market 0 0,00 $ $

4 BR - Market 0 0.00 $ $

4 SR- Market 0 0.00 $ $ 4 BR - Market 0 0.00 $ $ 4 SR- Market 0 0.00 $ $

Total4-BR



Total 4-BR Units: 0 Total 4·BR Rent $

Total Units 26 Net Rentable SF: TC Units 19,473.00

MKT Units 0.00 Total NR SF: 19,473.00

Floor Space Fraction 100.0000%

2009 Page 15


D_ Operating Expenses Administrative:

1. AdvertisingIMarketing 2. Office Salaries 3. Office Supplies 4. OfficelModel Apartment (type~

5. Management Fee 6.25% ofEGI 280.5 Per Unit

====~= 6. Manager Salaries

7. StaffUnit(s)(lype~ 8. Legal 9. Auditing

10. Bookkeeping/Accounting Fees II. Telephone & Answering Service 12. Tax Credit Monitoring Fee 13. Miscellaneous Administrative

Total Administrative Utilities

14. Fuel Oil 15. Electricity 16. Water 17. Gas 18. Sewer

Total Utility Operating:

19. Janitor/Cleaning Payroll 20. Janitor/Cleaning Supplies 21. Janitor/Cleaning Contract 22. Extenninating 23. Trash Removal 24. Security PayrolVContract 25. Grounds Payroll 26. Grounds Supplies 27. Grounds Contract 28. MaintenancelRepairs Payroll 29. Repairs/Materiai 30. Repairs Contract 31. Elevator Maintenance/Contract 32. Heating/Cooling Repairs & Maintenance 33. Pool Maintenance/Contract/Staff 34. Snow Removal 35. Decorating/PayrolllContract 36. Decorating Supplies 37. Miscellaneous

Operating & Maintenance Totals

Taxes & Insurance 38. Real Estate Taxes 39. Payroll Taxes 40. Miscellaneous TaxesiLicenses/PelIllits 41. Property & Liability Insurance 42. Fidelity Bond 43. Workman's Compensation 44. Health Insurance & Employee Benefits 45. Other Insurance

Total Taxes & Insurance

Total Operating Expense

01. TotaIOper.Ex.PerUnit _____ ---'$"3,,,0,,1=-5 02. Total Oper. Ex. As % EO! (from E3)

Replacement Reserves (Total # Units X $300 or $250 New Canst. Elderly Minimum)

Total Expenses

2009

67.21%

$750 $2,000

$750 $6

$7,293

$8,000

$0 $750

$4.500 $2,006 $1,066

$656 $500

$28,193

$0 $2,006

$6 $6 $6

$2,000

$0 $0 $0

$1,600 $I,SOO

$6 $6

$500 $3,000

$12,000 $3,000 $3,000

$6 $6 $6

$1,006 $1,200 $2,000 $i,000

$29,500

$6,000 $1,200

$650 $S,OOO

$65 $1,066 $1.720

$0 $18,701

$78,394

$7,800

$86,194

Page 16


E. Cash Flow (First Year) 1. Annual EGI Low-Income Units from (Cl) 2, Annual EGI Market Units (from C2) + 3. Total Effective Gross Income =

4. Total Expenses (from D) 5. Net Operating Income =

6. Total Annual Debt Service (from Page 21 B2) -7. Cash Flow Available for Distribution =

F. Projections ror Financial Feasibility - 15 Year Projections or Cash Flow

Stabilized Year 1

Err. Gross Income 116,644

Less Oper. Expenses 86,194

Net Income 30,450

Less Debt Service 24,470

Cash Flow 5,980

Debt Coverage RatIO 1.24

Year 6



Net Income 30,355


Cash Flow 5,884

Debt Coverage RatIO 1.24

Year 11



Net Income 29,172


Cash Flow 4,702

Debt Coverage RatIO 1.19 Estimated Annual Percentage Increase in Revenue Estimated Annual Percentage Increase in Expenses

2009

Year 2

120,144

89,642

30,502

24,470

6,032

1.25

Year 7

139,279

109,063

30,217

24,470

5,746

1.23

Year 12

161,463

132,692

28,771

24,470

4,301

1.18

Year 3 Year 4

123,748 127,460

93,227 96,957

30,521 30,504

24,470 24,470

6,050 6,034

1.25 1.25

YearS Year 9

143,458 147,762

113,425 117,962

30,032 29,799

24,470 24,470

5,562 5,329

1.23 1.22

Year 13 Year 14

166,307 171,296

137,999 143,519

28,308 27,777

24,470 24,470 3,837 3,307

1.16 1.14 3.00% (Must be ~ 3%)

----':4..:.;.0"'0""'X.;:-o (Must be 2.. 4%)

$116,644

$0

$116,644

$86,194

$30,450

$24,470

$5,980

Year 5

131,284

100,835

30,449

24,470

5,979

1.24

Year 10

152,194

122,681

29,513

24,470

5,043

1.21

Year 15

176,435

149,260

27,175

24,470 2,705

1.11

Page 17


VIII. PROJECT BUDGET

A. CostlBasis/Maximum Allowable Credit

Complete cost column and basis column(s) as appropriate tbrough A12. Check ifthe following documentation is attached at TAB S: o Executed Construction Contract o Executed Trade Payment Breakdown o Appraisal o Other Cost Documentation o Environmental Studies

NOTE: Attorney must opine, among other things, as to correctness of the inclusion of each cost item in eligible basis, type of credit and numerical calculations of this Part VIII.

Amount of Cost up to 100% Includable in Eligible Basis--Use Applicable Co!umn(s):

"30% Present Value Credit" (D) Item (A) Cost (B) Acquisition (C) Rehabl "70 % Present

New Construction Value Credit"

1. Contractor Cost

A. Off-Site Improvements 0 0 0 0 B. Site Work 41,280 0 0 20,000 C. Other: 0 0 0 0 D. Unit Structures (New) 0 0 0 0 E. Unit Structures (Rehab) 1,120,817 0 0 1,120,817 F. Accessory Building (s) 0 0 0 0 G. Asbestos Removal 0 0 0 0 H. Demolition 159,329 0 0 159,329 I. Commercial Space Costs 0 0 0 0 J. Structured Parking Garage 0 0 0 0 K. Subtotal A: (Sum lA .. lJ) 1,321,426 0 0 1,300,146 L. General Requirements 30,000 0 0 30,000 M. Builder's Overhead 40,000 0 0 40,000

( 3.0% Contract) N. Builder's Profit 40,000 0 0 40,000

( 3.0% Contract) O. Bonding Fee 0 0 0 0 P. Other: 0 0 0 0 Q. Contractor Cost

Subtotal (Sum IK..IP) $1,431,426 $0 $0 $1,410,146

2. Owner Costs A. Building Pennit 20,000 0 0 20,000 B. Arch.lEngin. Design Fee 100,000 0 0 100,000

( 3,846 /Unit) C. Arch. Supervision Fee 0 0 0 0

( __ O_/Unit)

D. Tap Fees 0 0 0 0 E. Soil Borings 0 0 0 0

2009 Page 18


Amount of Cost up to 100% Includable in Eligible Basis--Use Applicable Column(s):

"30% Present Value Credit" (D) Item (A) Cost (B) Acquisition (C) Rehab! "70 % Present

New Construction Value Credit" 2. Owner Costs Continued

F. Construction Loan 5.000 0 0 5,000 Origination Fee

G. Construction Interest 50.000 0 0 50.000 ( 0.0% for 0 months)

H. Taxes During Construction 4,000 0 0 4,000 I. Insurance During Construction 12,000 0 0 12,000 1. Cost Certification Fee 7,500 0 0 7,500 K. Title and Recording 20,000 0 0 20,000 L. Legal Fees for Closing 78,000 0 0 5,000 M. Pennanent Loan Fee 0 0 0 0

( 0.0%) N. Other Pennanent Loan Fees 0 0 0 0 O. Credit Enhancement 0 0 0 0 P. Mortgage Banker 0 0 0 0 Q. Environmental Study 3,500 0 0 3,500 R. StructuraIIMechanical Study 0 0 0 0 S. Appraisal Fee 3,500 0 0 3,500 T. Market Study 4,000 0 0 4,000 U. Operating Reserve 95,000 0 0 0 V. Tax Credit Fee 15,155 0 0 0 W.OTHER $243,289 $0 $0 $213,000

(SEE PAGE 19A) X. Owner Cost

Subtotal (Sum 2A .. 2W) $660,944 $0 $0 $447,500

Subtotal I + 2 $2,092,370 $0 $0 $1,857,646 (Owner + Contractor Costs)

3. Developer's Fees 320,000 0 0 320,000

4. Owner's Acquisition Costs Laod 200,600 Existing Improvements 725,200 0 Subtotal 4: $925,800 $0

5. Total Development Costs Subtotal 1+2+3+4: $3,338,170 $0 $0 $2,177,646

If this application seeks rehab credits only, in which there is no acquisition and no change in ownership, enter the greater of appraised value or tax assessment value here: $0 Land

(Attach documentation at Tab K) $0 Building

2009 Page 19


I Amount of Cast up to 100% Includable in Eligible Basis--Use Applicable Column(s):

"30% Present Value Credit" (D) Item (A) Cost (8) Acquisition (C) Rehab! "70 % Present

New Construction Value Credit" W. OTHER OWNER COSTS

Contingency Reserve 140,000 0 0 140,000 (Rehab or Adaptive Reuse only) LIST ADDITIONAL ITEMS Construction Mana~ement 30,000 0 0 30,000 Earthcraft Inspection Fees 13,000 0 0 13,000 TeAP comEiiance management 20,000 0 0 0 Relocation 30,000 0 0 30,000 VHDA TCAP fee 10,289 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 0 0 0 0 0

Subtotal (Other Owner Costs) $243,289 $0 $0 $213,000

(

2009 Page 19A

(

\.


Amount ot Cost up to IUU% lncludable III Eligible Basis--Use Applicable ColumnCs):

'JU '70 Yresent va ue L remt (Cj Rehab! CD)

New "70 % Present Item (A) Cost (B) Acquisition Construction Value Credit"

5. Total Development Costs Subtotal 1+2+3+4 3,338,170

6. Reductions in Eligible Basis

Subtract the following: A. Amount of federal grant(s) used to finance

qualifYing development costs

B. Amount of nonqualified, nonrecourse financing

C. Costs of nonqualifYing units of higher quality (or excess portion thereot)

D. Historic Tax Credit (residential portion)

7. Total Eligible Basis (5 minus 6 above)

8. Adjustment(s) to Eligible Basis (For non-acquisition costs in eligible basis)

(i) For Earthcraft or LEED Certification AND 60 Bonus Points (ii) For QCT or DDA (Eligible Basis x 30%)

Total Adjusted Eligible basis

9. Applicable Fraction

10. Total Qualified Basis (Same as Part IX-C) (Eligible Basis x Applicable Fraction)

11. Applicable Percentage

12.

(For 2009 9% competitive credits. use the May 2009 applicable percentages for acq.)

(For 9% non-competitive & tax exempt bonds, usc the most recently published rates)

Maximum Allowable Credit under IRC §42 (Qualified Basis x Applicable Percentage) (Same as Part IX-C and equal to or more than credit amount requested)

2009

0 0 2,177,646

0 0 0

0 0 0

0 0 0

0 0 0

0 0 2,177,646

0 108,882 0 0

0 2,286,528

100.0000% 100.0000% 100.0000%

o 0 2,286,528

3.28% 0.00% 9.00%

$0 $0 $205,7881

$205,788 r---J Combined 30% & 70% P. V. Credit

Page 20

(


B. Sources of Funds

1. Construction Financing: List individually the sources of construction financing, including any such

loans financed through grant sources:

Date of Date of Amount of Source of Funds Application Commitment Funds Name of Con tact Person

1. $0

2. $0

3. $0

o Commitments or letter(s) of intent attached (TAB T)

2. Permanent Financing: List individually the sources of all permanent financing in order of lien position:

Interest Amortization

Date of Date of Amount of Annual Debt Rate of Period

Source of Funds Application Commitment Funds Service Cost Loan IN YEARS

1. VHDASPARC Closed $180,000 $10,970 5.05% 35

2. DHCDHOME 06/30/09 09/01109 $450,000 $13,500 3.00% 1000

3. $0 $0 0.00% 1000

4. $0 $0 0.00% 1000

5. $0 $0 0.00% 1000

6. $0 $0 0.00% 1000

Totals: $630,000 $24,470

o Commitments or letter(s) of intent attached (TAB T)

3. Grants: List all grants provided for the development:

Date of Date of Amount of

Source of Funds Application Commitment Funds Name of Contact Person

l. $0

2. $0

3. $0

4. $0

5. $0

6. TCAP N/A N/A $398,537

Total Permanent Grants: $398,537

o CommItments or letter(s) ot mtent attached (TAB T)

2009

Tenn of

Loan (years)

0

0

0

0

0

0

Page 21


4. Portion of Syndication Proceeds Attributable to Historic Tax Credit

Amount of Federal historic credits $0 x Equity % $0.00

Amount of Virginia historic credits $0 x Equity % $0.00

6. Equity that Sponsor will Fund: $0 Cash Investment

Contributed LandiBuilding Deferred Developer Fee Other:

$745,800 0 Assessment Attached (TAB S) -----'-'-"-'':'$'''0

7.

8.

9.

10.

$0

Total of All Sources (B2 + B3 + B4 + B5 + B6) (not including syndication proceeds except for historic tax credits)

Total Development Cost (From VIII-A5)

Less Total Sources of Funds (From B7 above)

Equals equity gap to be funded with low-income tax credit proceeds (must equal IX-D3)

C. Syndication Information (If Applicable)

Equity Total

$0

$0

$745,800 $1,774,337

$3,338,170

$1,774,337

$1,563,832

1. Actual or Anticipated Name of Syndicator Virginia Community Development Corporation

2. Contact Person Jeffrey Michael Meyer 3. Street Address ~I"8:-:4"0-7W""'. B"r'-0"'a"d"'S"'tr"'e'-et'-=S::-u"'it-e-:2"0"0----------

Phone 804343 1200 ext 113

City Richmond State VA ...:..:..:'-------

4. a. Total to be paid by anticipated users of credit (e.g., limited partners) b. Equity Dollars Per Credit (e.g., $0.85 per dollar of credit) c. Percent of ownership entity (e.g., 99% or 99.9%) d. Net credit amount anticipated by user of credits e. Syndication costs not included in VIII-A5 (e.g., advisory fees)

5. Net amount which will be used to pay for Total Development Cost (4a-4e)

as listed in Part VIII-A5 (same amount as Part IX-D3)

6. Amount of annual credit required for above amounts

(same amount as Part IX-D6)

7. Net Equity Factor [C5 / (C6 X 10)]

(same amount as Part IX-D4) Must be equal to or greater than 85%

8. Syndication: o Public or

9. Investors: o Individual or

o Syndication commitment or letter of intent attached (TAB U)

2009

o Private

o Corporate

Zip 23220

$1,563,832 $0.76

99.99% $205,767

$0

$1,563,832

$205,788

75.99%

Page 22


D. Recap of Federai, State, and Local Funds/Any Credit Enhancements

1. Are any portions of the sources of funds described above for the development financed directly or indirectly with Federal. State, or Local Government Funds? DYes 0 No If yes, then check the type and list the amount afmoney involved.

Below-Market Loans

o Tax Exempt Bonds o RD515 o Section 221 (d)(3) o Section 312 o Section 236 D VHDA SPARC/REACH D HOME Funds o Other: o Other:

Grants o CDBG DUDAG

$0 $0 $0 $0 $0

$180,000 $450,000

$0 $0

$0 $0

Market-Rate Loans

o Taxable Bonds o Section 220 o Section 221(d)(3) o Section 221 (d)(4) o Section 236 o Section 223(t) o Other:

Grants. o State o Local D Other: TCAP

This means grants to the partnership. If you received a loan financed by a locality which received one of the listed grants, please list it in the appropriate loan column as "other ll and describe the applicable grant program which funded it.

2. Subsidized funding: list all sources of funding for points. Documentation Attached (TAB T)

Source of Funds Commitment date

1. Wise County Redevelopment and Housing Authority

2.

3.

4.

5.

3. Does any of your financing have any credit enhancement? DYes D No If yes, list which financing and describe the credit enhancement:

4. Other Subsidies 0 Documentation Attached (TAB Q) o Section 8 Rent Supplement or Rental Assistance .Payment

o Tax Abatement

$0 $0 $0 $0 $0 $0 $0

$0 $0

$398,537

Funds

$745,800

$0

$0

$0

$0

o Other ___________________________________ _

5. Is HUD approval for transfer of physical asset required?

DYes D No

E. For Transactions Using Tax-Exempt Bonds Seeking 40/0 Credits:

2009

For purposes of the 50% Test, and based only on the data entered to this

application, the portion of the aggregate basis of buildings and land financed with

tax-exempt funds is: I· . '·:ii,'fI±~itlir':>'· ·1 . . ,,7;;;4<&2'.1:"-, P, •• 2ii's" ' .

Page 23

L,w.Income Housing Tax Credit Application For Reservation

(~X. ADDITIONAL INFORMATION

(

A. Extended Use Restriction

NOTE: Each recipient of an allocation of credits will be required to record an extended use agreement as required by the IRC governing the use of the development for low·income housing for at least 30 years. However, the IRC provides that, in certain circumstances, such extended use period may be terminated early.

o This development will be subject to the standard extended use agreement which permits early termination (after the mandatory I5·year compliance period) of the extended use period.

D This development will be subject to an extended use agreement in which the owner's right to any early termination of the extended use provision is waived for 25 additional years after the 15· year compliance period for a total of 40 years. Do not select if IX.B is checked below.

D This development will be subject to an exteuded use agreement in which the owner's right to any early termination of the extended use provision is waived for 35 additional years after the 15· year compliance period for a total of 50 years. Do not select if IX.B is checked below.

B. NonprofitILocal Housing Authority Purchase OptionlRight of First Refnsal

I. 0 After the mandatory 15-year compliance period, a qualified nonprofit as identified in the attached nonprofit questionnaire, or local housing authority will have the option to purchase or the right of first refusal to acquire the development for a price not to exceed the outstanding debt and exit taxes. Such debt must be limited to the original mortgage(s) unless any refinancing is approved by the nonprofit. Do not select if extended compliance is selected in IX.A above. o Option or Right of First Refusal in Recordable Form Attached (TAB V)

Enter name of qualified nonprofit: Wise County Redevelopment and Housing Authority

2. D A qualified nonprofit or local housing authority submits a homeownership plan committing to sell the units in the development after the mandatory 15-year compliance period to tenants whose incomes shall not exceed the applicable income limit at the time of their initial occupancy. Do not select if extended compliance is selected in IX.A above. D Homeownership Plan Attached (TAB J)

C. Building·by·Building Information (Complete page 25 as appropriate)

2009 Page 24

Low-lncomt: dousing Tax Credit Application For Reservation

c. Building-by-Building Information I Must Complete -·1 Qualified basis must be detennined on a building-by building basis.

allocation request).

Complete the section below. Building street addresses are required by the IRS (must have them by the time of

Build

ing #

NUMBER

OF TAX MARKET

CREDIT RATE

UNITS UNITS

· 2 0

· 2 0

· 2 0

.2 0

· 2 0

.2 0

.2 0

.2 0

.4 0

· 6 0

I

4

5.

6

2009

Estimate

Street Qualified

Address Basis

603 Commonwealth Avenue



612 Commonwealth A venue







Q "

Credit Amount Totals (must agree with VIII-A-12)

30% Present Value

Credit for Acquisition

Actual or

Anticipated

In-Service Applicable Credit

Date Percentage Amount

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0 0.00% 0

$0

i I

30% Present Value

Credit for Construction 70% Present Value Credit

Actual or Actual or

Estimate Anticipated Estimate Anticipated

Qualified In-Service Applicable Credit Qualified In-Service Applicable

Basis Date Percentage Amount Basis Date Percentage

$0 0.00% 0 5189,233 08/31110 9.00%

$0 0.00% 0 $189,233 08/31110 9.00%

$0 0.00% 0 $189,233 08/31/10 9.00%

$0 0.00% 0 $189,233 08/31/10 9.00%

$0 0.00% 0 $189,233 08/31/10 9.00%

$0 0.00% 0 $139,233 08/31110 9.00%

$0 0.00% 0 $189,233 03/31110 9.00%

$0 0.00% 0 $189,233 08/31110 9.00%

$0 0.00% 0 $309,066 08/31/10 9.00%

$0 0.00% 0 $463,598 08/31110 9.00%

$0 0.00% 0 $0 0.00%

$0 0.00% 0 $0 0.00%

$0 0.00% 0 $0 0.00%

$0 0.00% 0 SO 0.00%

$0 0.00% 0 $0 0.00%

$0 0.00% 0 $0 0.00%

$0 I $2,286,528

i sol

Credit

Amount

17,031

11,031

17,031

11,031

11,031

11,031

17,031

t7,031

27,816

41,724

0

0

0

0

0

0

I I

Page 25


D. Determination of Reservation Amount Needed

The following calculation of the amount of credits needed is substantially the same as the calculation which will be made by VHDA to determine, as required by the IRe, the amount of credits which may be allocated for the development. However, VHDA at all times retains the right to substitute such information and assumptions as are determined by VHDA to be reasonable for the information and assumptions provided herein as to costs (including development fees, profits, etc.), sources for funding, expected equity, etc. Accordingly, if the development is selected by VHDA for a reservation of credits, the amount of such reservation may differ significantly from the amount you compute below.

I. Total Development Costs (from VIII-A5, Column A page 20) $3,338,170

2. Less Total Sources of Funds (from VIlI-B7 page 22) $1,774,337

3. Equals Equity Gap $1,563,832

4. Divided by Net Equity Factor (VIII-C7 page 22) 75.99% (Percent of lO-year credit expected to be raised as equity investment)

5.

6.

7.

8.

Equals Ten-Year Credit Amount Needed to Fund Gap

Divided by ten years

Equals Annual Tax Credit Required to Fund the Equity Gap

The Maximum Allowable Credit Amount (from VIII-Al2-combined figure)

(This amount must be equal to or more than 6 above)

Reservation Amount (Lesser of 6 or 7 above)

Credit per Unit

Credit per Bedroom

7,915 4,900

E. Attorney's Opinion o Attached III Mandatory TAB W)

2009

$2,057,880

10

$205,788

$205,788

Combinod 30% & 7()% PV Crc-dil

d $0 I $205,788 I

.l()% PV Crc'<.lil 700/, rv CrOOu

(B.,od on>ilIIlCrd"li''''Jl<.-ro:nl'So> os VIII-AI2)

!Goal Seek Function If you incur the error message that your reservation amount is not equal

o the equity gap amount you may use the goal seek function within the Excel preadsheet to eliminate the error message. To use the "Goal Seek" function first lace the curser box on cell V28. Using the mouse arrow, point and click on

'Tools" on the top line and then click on the "Goal Seek" option. A box will ppear with the V28 cell shown in the top space, place the cursor in the middle

[box and type in the new amount that you want the equity gap to be which should [be the reservation amount below, then place the cursor in the bottom space and at he bottom of the page click on page 22. Then place the cursor on cell N15

(Deferred Developer Fee) and click on "OK". A message should then appear that solution has been found and if the amount is correct click "OK". If the amOlDlts

fare now equal the error message will disappear.

Page 26

(


F. Statement of Owner

[he undersigned hereby acknowledges the following:

1. 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.

2. that it will at all times indemnifY and hold harmless VHDA and its assigns against all losses, costs, damages, VHDA's expenses, and liabilities of any nature directly or indirectly resulting from, arising out of,

or relating to VHDA's acceptance, consideration, approval, or disapproval of this reservation request and

the issuance or nonissuance of an allocation of credits, grants andlor loan funds in connection herewith.

3. that points will be assigned only for representations made herein for which satisfactory documentation is

submitted herewith and that no revised representations may be made in connection with this application

once the deadline for applications has passed.

4. that this application form, provided by VHDA to applicants for tax credits, including all sections herein relative to basis, credit calculations, and determination of the amount of the credit necessary to make the

development financially feasible, is provided only for the convenience ofVHDA in reviewing reservation requests; that completion hereof in no way guarantees eligibility for the credits or ensures that the amount

of credits applied for has been computed in accordance with IRC requirements; and that any notations

herein describing IRC requirements are offered only as general guides and not as legal authority.

5.

6.

that the undersigned is responsible for ensuring that the proposed development will be comprised of

qualified low-income buildings and that it will in all respects satisfY all applicable requirements of federal tax law and any other requirements imposed upon it by VHDA prior to allocation, should one be issued.

that, for the purposes of reviewing this application, VHDA is entitled to rely upon representations of the

undersigned as to the inclusion of costs in eligible basis and as to all of the figures and calculations relative to the determination of qualified basis for the development as a whole and/or each building therein

individually as well as the amounts and types of credit applicable thereof, but that the issuance of a reservation based on such representation in no way warrants their correctness or compliance with IRe requirements.

7. that VHDA may request or require changes in the information submitted herewith, may substitute its own

figures which it deems reasonable for any or all figures provided herein by the undersigned and may reserve credits, if any, in an amount significantly different from the amount requested.

8. that reservations of credits are not transferable without prior written approval by VHDA at its sole discretion.

2009 Page 27

(


9. that the requirements for applying for the credits and the terms of any reservation or allocation thereof are subject to change at any time by federal or state law, federal, state or VHDA regulations, or other binding authority.

10. that reservations may be made subject to certain conditions to be satisfied prior to allocation and shall in all cases be contingent upon the receipt of a nonrefundable application fee of $500 and a nonrefundable reservation fee equal to 7% of the annual credit amount reserved.

II. that a true, exact, and complete copy of this application, including all the supporting documentation enclosed herewith, has been provided to the tax attorney who has provided the required attorney's opinion accompanying this submission, and

12. that the applicant has provided a complete list of all residential real estate developments in which the general partner(s) has (have) or had a controlling ownership interest and, in the case of those projects allocated credits under Section 42 of the IRC, complete information on the status of compliance with Section 42 and an explanation of any noncompliance. The applicant hereby authorizes the Housing Credit Agencies of states in which these projects are located to share compliance information with the Authority.

13.

2009

that the information in this application may be disseminated to others for purposes of verification or other purposes consistent with the Virginia Freedom of Information Act. However, all information will be maintained, used or disseminated in accordance with the Government Data Collection and Dissemination Practices Act. The applicant may refuse to supply the information requested, however, such refusal will result in VHDA's inability to process the application. The original or copy of this application may be retained by VHDA, even if tax credits are not allocated to the applicant.

In Witness Whereof, the undersigned, being authorized, has caused this document to be executed in its

name on this 29th day of April ,2009.

COMMONWEALTH APARTMENTS, LLC

Page 28

2009 L1HTC SELF SCORE SHEET:

Self Scoring Process

his worksheet is intended to provide you with an estimate of your application score based on the selection criteria described in the CAP. Most of the data used in the scoring process is automatically entered below as you fill in the application. Other items enoted below in the green shaded cells, are items that are typically evaluated by VHDA's staff during the application review an easibilityanalysis. For purposes of self scoring, it will be necessary for you to make certain decisions and assumptions about you pplication and enter the appropriate responses in the green shaded cells of this score sheet. All but two require yesina responses

n which case enter Y or N as appropriate. Item 2b pertaining to the Local CEO LeiterwiIJ require one of the following responses: the letter indicates unconditional support; N - the letter indicates opposition to the project; NC - no comment from the locality, 0

ny other response which is neither unconditional support nor opposition. Item 5e1 requires a numeric value to be entered. Pleas emember that the score is only an estimate based on the selection criteria using the reservation application data and th

responses you've entered on this score sheet. VHDA reserves the right to change application data and/or score sheet response rhere appropriate, which may change the final score.

MANDATORY ITEMS:

a. Signed, completed application b. Duplicate copy of application c. Partnership agreement d. SCC Certification e. Previous participation form f. Site control document g. Architect's Certification h. Attorney's opinion i. Nonprofit questionnaire (if NP)

1. READINESS: a. Plan of development b. Zoning approval

Total:

2. HOUSING NEEDS CHARACTERISTICS: a. VHDA notification letter to CEO b. Local CEO letter c. Location in a revitalization area d. Location in a Qualified Census Tract e. Sec 8 or PHA waiting list preference f. Subsidized funding commitments g. Existing RD, HUD Section 8 or 236 program h. Tax abatement or new project based rental subsidy (HUD or RD) i. Census tract with <10% poverty rate, no tax credit units j. Development listed on the Rural Development Rehab Priority List

Total

3. DEVELOPMENT CHARACTERISTICS: a. Unit size (See calculations below)

b. Amenities (See calculations below)

c. Project subsidiesiHUD 504 accessibility for 5 or 10% of units or d. HCV payment standardlHUD 504 accessibility for 5 or 10% of units or e. HUD 504 accessibility for 4% of units

f. Proximity to public transportation g. Development will be Earthcraft or LEED certified h. VHDA Certified Property Management Agent i. Units constructed to meet VHDA's Universal Design standards j. Developments with less than 100 units

Total

4. TENANT POPULATION CHARACTERISTICS: a. <= 20% of units having 1 or less bedrooms b. Percent of units with 3 or more bedrooms

Total

5. SPONSOR CHARACTERISTICS:

(y,NC,N)

a. Developer experience - 3 developments with 3 x units or 6 developments with 1 x units or b. Developer experience - 1 development with 1 x units

c. Developer experience - uncorrected major violation d. Developer experience - noncompliance

e1. Developer experience - did not build as represented e2. Developer experience - termination of credits by VHDA f. Management company rated unsatisfactory g. LEED accredited design team member

Total

6. EFFICIENT USE OF RESOURCES:

Y Y

- Y N Y

22.34% N

N N

N N Y N Y Y

12%

N 0.00%

a. Credit per unit b. Cost per unit

2009 Total

If #NfA or #REFI appears in the score column of these point

categories check spelling ofCJerk's Office on pg 1. It must match

exactly with the Jurisdiction names listed in the Application Manual.

YarN YorN YarN Yor N Yor N YarN YarN YarN Y, N, N/A

00r40 o or 40

o or -50 00r250r50 Oar 30 o or5 Oar 10 Up to 40 00r20 o or 10 00r25 Oar 15

Up to 100 Up to 60 OorSO 00r30 o or 15 0,100r20 o or 30 o or 25 Up to 15 Up to 20

Oar 15 Up to 15

00r50 o or 10 Oar -50 00r-15 o or-x o or -10 o or-25 o or 10

Up to 180 Up to 75

Score o o o o o o o o o 0.00

40.00 40.00 80.00

0.00 50.00 30.00

0.00 10.00 40.00

0.00 10.00

0.00 0.00

140.00

97.74 49.00

0.00 0.00

15.00 0.00

30.00 25.00

1.73 20.00

238.47

0.00 0.00 0.00

0.00 10.00

0.00 0.00 0.00 0.00 0.00

10.00 20.00

48.01 17.90 65.91

7. BONUS POINTS: JII-•• 1 $41,800

@M'~ $50,60~ a. Units with rents at or below 40% of AMI b. Units with rent and income at or below 50% of AMI

or c. Units with rents at or below 50% rented to tenants at or below 60% of AMI or d. Units in Low Income Jurisdictions with rents <= 50% rented to tenants with <= 60% of AMI

12% 0%

100% 100%

e. Extended compliance or f. Nonprofit or LHA purchase option or g. Nonprofit or LHA Home Ownership option

Total

500 Point Threshold - 9% Credits

475 Point Threshold - Tax Exempt Bond Credits

Unit Size Calculations:

High Sq.FI.! BDRM

Low Sq.FI.I BDRM Project Sq.FI. I BDRM

Percentage of Units

Points per Bedroom

High Sq.Ft. I BDRM

Low Sq.Ft. I BDRM Project Sq.Ft.1 BDRM

Percentage of Units

Points per Bedroom

High Sq.Ft.1 BDRM LowSq.Ft./BDRM

Project Sq.FI.I BDRM

Percentage of Units Points per Bedroom

High Sq.Ft.1 BDRM Low Sq.FI.I BDRM

Project Sq.Ft. I BDRM

Percentage of Units Points per Bedroom

E-AS LVG a a a

0.00% 0.00

F-EFF-G a a a

0.00% 0.00

F-4 BDRM-G a a a

0.00%

0.00

1 ST ELD-EFF

a a a

0.00%

0.00

E-EFF

a a a

0.00% 0.00

F-1 BDRM G

625

500

728

38.46%

38.48

F-2 BDRM-TH

a a a

0.00%

0.00

1 ST ELD-1 BDRM

a a a

0.00%

0.00

i otai DOlt Size POints:

Amenities:

All units have:

a. 1.5 or 2 Bathrooms b. Community Room c. Brick Walls d. Kitchen/Laundry Appl-Energy Star e. Windows-Energy Star f. HeatlAC-SEER-AFUE

g. Sub-metered water expense h. Low flow faucets & showerheads i. High speed cable, DSL, wireless internet j. Water heaters meet EPA Energy Star requirements

All elderly units have: a. Front-control ranges b. Emergency call system c. Independentlsuppl. heat source d. Two eye viewers

All rehab or adaptive reuse units: b. Historic structure

2009

o Years

E-1 BDRM

a a a

0.00%

0.00

F-2 BDRM-G

900

675

892

61.54%

59.28

F-3 BDRM-TH

a a a

0.00%

0.00

1 ST ELD-2 BDRM

a a a

0.00%

0.00

0.00%

100.00%

Total

Total

Total amenities:

y

N

TOTAL SCORE:

E-2 BDRM

a a a

0.00%

0.00

F-3 BDRM-G

a a a

0.00% 0.00

F-4 BDRM-TH

a a a

0.00% 0.00

97.741

0.00 0.00

20.00 5.00 5.00

10.00 5.00 3.00 1.00 0.00

49.00

0.00 0.00 0.00 0.00

Q;QQ

Up to 10 10.00 Up to 50 0.00 Up to 25 0.00 Up to 50 50.00 40 Of 50 0.00 00r60 60.00 00r5 0.00

120.00

664.39

If you do not receive a numeric point value

In the unit size calculations, ptease

check the values entered on page 8, C1.

These must be whole number numeric

values only. Also check page 7, item 3,

the number of units must be either new, adapt or rehab only. Combinations do not calculate correctly.

TYPE OF PROJECT LOCATION TYPE OF CONSTRUCTION

VG UNIT SIZE

NUMBER OF UNITS

PARAMETER-(COSTS=>25,OOO) PARAMETER-(COSTS<25,OOO)

COST PARAMETER PROJECT COST PER UNIT

PARAMETER-(CREDITS=>25,000) PARAMETER-(CREDITS<25,OOO)

CREDIT PARAMETER PROJECT CREDIT PER UNIT

COST PER UNIT POINTS CREDIT PER UNIT POINTS

VG UNIT SIZE NUMBER OF UNITS

PARAMETER-(COSTS=>25,000) PARAMETER-(COSTS<25,000)

COST PARAMETER PROJECT COST PER UNIT

PARAMETER-(CREDITS=>25,OOO) PARAMETER-(CREDITS<25,000)

CREDIT PARAMETER PROJECT CREDIT PER UNIT

COST PER UNIT POINTS REDIT PER UNIT POINTS

$ISF = 1 $141.191 CreditS/SF = IJ:!!!!]Const $Iunit =

FAMILY = 11000; ELDERLY = 12000 BELT=100; NVM=110; NVNM=200, RIC=300; TID=400; SMA=500; SMA-C=510; RUR=600 N C=I; ADPT=2;REHAB(25,OOO+)=3; REHAB(15,000-25,000)=4

ELDERLY

ASLVG EFF-E 1 BR-E 2BR-E 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

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

FAMILY

EFF-G 1 BR-G 2BR-G 3BR-G 0 728 892 0 0 10 16 0

0 130,390 169,159 0 0 0 0 0

0 130,390 169,159 0 0 102,812 125,903 0

0 11,242 14,585 0 0 0 0 0

0 11,242 14,585 0 0 8,538 10,456 0

0.00 6.10 11.80 0.00 ono 16.65 31.36 0.00

TOTAL COST PER UNIT POINTS I 17.90 I TOTAL CREDIT PER UNIT POINTS I 48.01 I

Cost Parameters - ElderiX ASLVG EFF_E 1 BR_E 2BR-E

Standard Cost Parameter· low rise 0 0 Parameter Adjustment - mid rise 0 0 Parameter AdJustment· high rise 0 0

Adjusted Cost Parameter 0 0

Credit Parameters - Elder! ASLVG EFF-E 1 BR-E 2BR-E

Standard Cred~ Parameter -low rise 0 0 0 0 Parameter Adjustment - mid rise 0 Parameter Adjustment - high rise 0 0

Adjusted Credit Parameter 0 0

Cost Parameters - Famil EFF-G 1 BR-G 2BR-G 3 BR-G

Stendard Parameter-low rise 0 130,390 169,159 0 Parameter Adjustment - mid rise 0 0 0 0 Parameter Adjustment _ high rise 0 0 0

Adjusted Cost Parameter 130,390 169,159 0

Credit Parameters - Famil EFF-G 1 BR-G 2BR-G 3BR-G

Standard Credit Parameter _ tow rise 0 11,242 14.585 0 Parameter Adjustment - mid rise 0 0 0 0 Parameter Adjustment - high rise 0 0 0 0

Adjusted Credit Parameter 0 11,242 14,585 0

2009

$55,055

EFF-E-1 ST 0

0

0 0

0 0

0 0

0 0

0.00 0.00

4BR-G 0 0

0 0

0 0

0 0

0 0

0.00 0.00

EFF-E-l ST 0

EFF_E_1 ST

0 0 0 0

4BR-G 0 0 0 0

4BR-G

0 0

If an ERROR message appears here check spelling of Clerll's Office on pg 1.lt must match exactly with the Jurisdiction names listed in the Application Manual.

1 BR-E-1 ST 2 BR-E-l ST 0 0

0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0.00 0.00 0.00 0.00

2BR_TH 3BR-TH 0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0.00 0.00 0.0 0.00

1 BR_E_1 ST 2 BR-E_1 ST 0 0 0 0

1 BR-E-1 ST 2 BR-E-1 5T 0 0

0 0 0

2 BR-TH 3 BR_TH 0 0 0 0

2 BR-TH 3 BR-TH 0 0 0 0 0

4BR-TH 0 0

0 0

0 0

0 0

0 0

0.00 0.0

4BR-TH 0 0 0 0

4BR-TH 0

TAB A (Documentation of Development Location)

TAB A.I (Qualified Census Tract Certification)

Qualified Census Tract Certification

Development Name: Commonwealth Apartments Tracking #: 2009-Z-037

1. General Instructions

• This Certification must be included with the Application (by Application Deadline, 5/15/09).

• The Owner/Developer completes this Certification.

• Any change in this form may result in a reduction of points under the scoring system. If you have any questions, please call Jim Chandler at VHDA (804) 343-5786.

2, Definition of Qualified Census Tracf

Pursuant to §42(d) (5) (C) (ii) of the IRe, a qualified census tract is, "(I) Any census tract which is designated by the Secretary of Housing and Urban Development and, for the most recent year for which census data are available on household income in such tract, either in which 50% or more of the households have an income which is less than 60% of the area median gross income (AMGI) for such year or which has a poverty rate of at least 25%. If the Secretary of Housing and Urban Development determines that sufficient data for any period are not available to apply this clause on the basis of census tracts, such Secretary shall apply this clause for such period on the basis of enumeration districts. (II) The portion of a metropolitan statistical area (MSA) which may be designated shall not exceed an area having 20% of the population of such MSA. (III) Each MSA shall be treated as a separate area and all non-metropolitan areas in a State shall be treated as one area."

3, Census Tract #(s):

I 511959909

[8J To determine the development's census tract, go to http://map.sba.gov/hubzone/init.asp and put in the development address or county. The census tract number will be revealed after pressing the "search" button. On a rare occasion, when a development spans more than one census tract, this website may show incomplete information. IF the subject development is across census tracts, please list each census tract by number and provide supporting documentation.

[8J Attach a map showing census tract boundaries and the development's location!

4. Legal Description

[8J Attach a copy of the development's legal description; the legal description should correspond to the site control document in the Application.

SBA HUB Zone Locator http://map.sba.gov/hubzone/hzqry.asp?scope=-82565552%7C3 ...

lof2

§TB3&1 . '. .... • Maptjtude furt!1e Web 3.60.00

HU8Z()ne;,ProgrCitrl . .

Address-Town-County Text-Only U.S. Map S Help

earch Version Below the map you may find a listing of those non-metropolitan counties on the map that are qualified in their entirety as HUBZones, based on level of median household income, or level of unemployment. You may also find a listing of qualified census tracts former . and Indian

Virginia

"

HU8Zone Status

~Zoomln

I Recenter

I no __ --- define zoom in/out I mmove display area by I dickillg on the map with

after selecting a above.

These HUBZone areas on the map are qualified as HUBZones at least until the results of the 2010 decennial census have been analyzed and made public: .

5/6/09 2: 38 PM

SBA HUBZone Locator http://map.sba.gov/hubzone/hzqry.asp?scope=-82565552%7C3 ...

of2

19909:98 (Census 2000 tract: 9909m) .

* Median Household Income from the 2000 Census ** Statewide average of Median Household Income for non-metropolitan counties is determined through weighted

populations from 2000 data provided by the Bureau of the Census *** Ratio of county unemployment rate to either state unemployment rate or US average unemployment rate, whichever is lower

! Address (include either City & State or ZIP Code - omit address I . ! to ZOOllllllap to a crty or ZIP code woea) County

I Street Address: II . .. ..... ... . I .. ::= I County: [r.--.-... -... -.--------.. -.' ."11

• City & State: . .. .... rx>,:",. State: I,+i"",'. I ZIP Code: L ....... J I

(Search ) ~ (Search) (Reset, I

J

5/6/092:38 PM

EXHIBIT A PROPERTY DESCRIPTION

All that certain tract or parcel of property, together with all improvements situate thereon, located in the Town of Wise, Gladeville Magisterial District of Wise County, Virginia and being more particularly described as follows, to-wit:

Being a 8.024 acres parcel of land situated in the east end of the Town of Wise, Wise County, Virginia and being the same property conveyed to Gladeville Housing Authority, LTD. and recorded in Deed Book 422, Page 730 and being further described as follows, to wit:

Beginning at a drill hole in sidewalk in the northern R-O-W line of State Route #640 (Hurricane Road) a common corner to Ryan D. Adkins (Inst #990004825) thence with said Adkins two (2) calls N37°3 I '28"W208.72' to a point at fence post, thence S61 °56'00"W211.59' to an iron pin in line of now or formerly William E. Baugh, Jr. Thence with said Baugh and an agreed boundary lines recorded in Deed Book 353, Page 99, three (3) calls N3JDI8'42"WI26.35' to a 2" pipe in concrete, thenceN44°35'03"EI7.20' to an iron pin, thence N34°04'46"WI55.25' to an iron pin in the eastern R-O-W line of State Route #680 (Old Hurricane Road) thence with said Eastern R-O-W lines two (2) calls N21°43'5T'EI30.20' thence NI6°30'09"E131.02' to an iron pin, a common corner to Charlie Dean (DB 620, Page 521) thence with said Dean four (4) calls S67°00'05'EI51.62' to an iron pin, thence N25°58'41"E66.00' to a metal rod, thence N17°00'54"W94.67 to a 16" black oak, thence N05°57'0T'W235.14 to an iron pin in line of now or formerly William Cox (DB 564, Page 183) thence in part with said Cox, a 0.133 acre parcel and Janice Addington (DB 695, Page 80) S73°19'45"E484.09' (at 78.44' pass thru an iron pin) to a set stone, a common corner to Wendell E. Barnette (Inst. #200300617) thence in part with said Barnette and with Cecil Cantrell, S 16°0 l' 48"W354.13' to an iron pin at fence intersection, thence continuing with said Cantrell two (2) calls Soo03 '06"E20 1.17' to an iron pin, thence S 11 °35'29"E 158.41' to an iron pin in the Northern R-O-W Line of aforesaid State Route #640, thence with said R-O-W S72°20'41 "W141.08' to the beginning containing 8.024 acres more or less, as shown on the plat prepared for Gladeville Housing Authority, Ltd., by Joseph F. Barger, CLS 1177, dated March I, 2007, attached to and recorded with the deed, in the Clerk's Office, Circuit Court, Wise County, Virginia in InstrumentNo. 200804204

TOGETHER WITH the use of any and all easements, rights of ways, roadways, water rights, pipeline rights, sewer systems including any field lines attached thereto, in existence and which lawfully may be used by Grantors, whether by express grant, prescriptive use or otherwise, and which are appurtenant to and part of the use and enjoyment of this particular tract ofland.

SUBJECT TO any and all existing reservations, easements, conditions, exceptions, restrictions andlor adverse conveyances as the same may lawfully affect the above described property.

TOGETHER WITH all buildings, improvements, fixtures, appliances andlor easements, now or hereafter attached to or used in connection with the property herein described.

BEING THE same property conveyed to Wise County Redevelopment and Housing Authority, an entity of the Commonwealth of Virginia, by Deed from Gladeville Housing Authority, Ltd., a Virginia corporation, dated October 16, 2008 and recorded October 17, 2008, in the Clerk's Office, Circuit Court, Wise County, Virginia in Instrument No. 2000804204.

Location Map

FFIEC Map Print

I 2008 Information

603 Street Address COMMONWEALTH

STNE

ICityName IIWISE

IState Abbr IIvA IZip Code 1124293

IMSA/MD Code IINA IState Code 1151

! County Code 11 195

ITractCode 119909.00

of 1

I

] I I I I I I

http://maps.ffiec.gov/FFIECMapperrrGMapSrv.aspx?streeCadd ...

Legend----, - Highway - Tract - Street

5/6/09 3:54 PM

TABA.2 (Revitalization Area Certification)

P.O. BOX 1100· WISE, VA 24293 • (276) 328-6013 (Voice & TDD)· FAX (276) 328-2519

FROM THE OFFICE OF THE TOWN MANAGER l!:::::!:!J

REVITALIZATION AREA CERTIFICATION

February 17, 2009

Jim Chandler Virginia Housing Development Authority 601 South Belvidere Street Richmond, Virginia 23220

VHDA Tracking Number: Development Name: Development Jurisdiction: Name of Owner} Applicant:

Dear Mr. Chandler:

Commonwealth Apartments Town of Wise Commonwealth Apartments, LLC

I certify that the above-referenced development is located in a Revitalization Area in my jurisdiction. A "revitalization area" is any area that is (i) either (1) blighted, deteriorated, deteriorating or, if not rehabilitated, likely to deteriorate by reason that the buildings, improvements or other facilities in such area are subject to one or more of the following conditions- dilapidation, obsolescence, overcrowding, inadequate ventilation, light or sanitation, excessive land coverage, deleterious land use, or faulty otherwise inadequate design, quality or condition, or (2) the industrial, commercial or other economic development of such area will benefit the city or county but such area lacks the housing needed to induce manufacturing, industrial, commercial, govemmental, educational, entertainment, community development, healthcare or nonprofit enterprises or undertakings to locate or remain in such area; and (ii) private enterprise and investment are not reasonably expected, without assistance, to produce the construction or rehabilitation of decent. safe and sanitary housing and supporting facilities that will meet the needs of low and moderate income persons and families in such area and will induce other persons and families to live within such area and thereby create a desirable economic mix of residents in such area.

I understand that this Certification will be used by the Virginia Housing Development Authority to determine whether the development qualifies for points available under VHDA's Qualified Allocation Plan.

Beverly C. Owens

Town Manager

Surveyor's Certification of Proximity to Transportation

Not Applicable

TABB (Partnership or Operating Agreement)

OPERATING AGREEMENT

OF

COMMONWEALTH APARTMENTS, LLC

THIS OPERATING AGREEMENT, dated as of February 6, 2009, by and among Commonwealth Apartments Development Corporation, a Virginia corporation (the "Managing Member") and Wise County Redevelopment and Housing Authority, a political subdivision of the Commonwealth of Virginia (the "Special Member"), who by their execution of this Operating Agreement have become members of Commonwealth Apartments, LLC, a Virginia limited liability company (the "Company"), provides as follows:

RECITALS:

The undersigned parties have caused the Company to be organized as a limited liability company under the laws of the Commonwealth of Virginia effective as of the date hereof, and they wish to enter into this Operating Agreement to set forth the terms and conditions on which the management, business and financial affairs of the Company shall be conducted.

AGREEMENT:

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises, covenants and conditions herein contained, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby covenant and agree as follows:

ARTICLE I PURPOSES AND POWERS OF COMPANY

1.1 Purposes. The purposes of the Company are to:

(a) Acquire, develop, own, manage, operate, buy, sell,exchange, finance, refinance, and otherwise deal with real estate and personal property incidental to real estate, as the Members may from time to time deem to be in the best interests of the Company, in particular, to acquire certain real estate in Wise County, rehabilitate the existing buildings thereon, operate thereon multifamily an affordable housing development using a combination of debt and equity derived from fedetallow income housing tax credits (the "Project"), to do all acts necessary or incidental to the accomplishment of that purpose and to engage such engineers, architects, contractors and other persons to accomplish such purpose. In particular, the Company is authorized to prepare and file an application for reservation of low income housing tax credits with the Virginia Housing Development Authority and to enter into such other agreements as may be required for the purposes set forth above; and

I

. iI.I.~~ . i ...

(h) Engage in such other activities as are related or incidental to the foregoing purposes, or otherwise reasonably necessary to accomplish the purposes of the Company and to do all such other acts or things except as may be specifically prohibited by this Agreement or state or federal law.

1.2 Powers. The Company shall have all powers and rights of a limited liability company organized under the Virginia Limited Liability Company Act (Virginia Code Sections 13.1-1000, et seq.) (hereinafter, the "Act"), to the extent such powers and rights are not proscribed by these Articles.

ARTICLE II NAMES AND ADDRESSES OF INITIAL MEMBERS; PRINCIPAL OFFICE

2.1 Names and Addresses of Initial Members. The names and addresses of the initial Members are as follows:

Names and Addresses of Initial Members

Commonwealth Apartments Development Corporation PO Box 630 Coeburn, Virginia 24230

Wise County Redevelopment and Housing Authority POBox 630 Coeburn, Virginia 24230

2.2 Principal Office. The address of the initial principal office is 107 Litchfield St NW, Coeburn, VA 24230, provided that the business of the Company may be conducted at such other places as may be determined by the Managing Member.

ARTICLE III CONTRIBUTED CAPITAL AND CAPITAL ACCOUNTS

3.1 Initial Capital Contributions. Each Member, upon the execution of this Operating Agreement, shall make as an initial Capital Contribution the amount shown on Exhibit A, which is attached hereto and by this reference is made a part hereof.

3.2 Additional Capital Contributions. No Member shall be required to make any Capital Contribution in addition to his Initial Capital Contribution. Notwithstanding, the Members may make additional Capital Contributions to the Company if such additional Capital

2

, ' .•. '1.,.,.... .1 i.

Contributions are made pro rata by all the Members or all the Members consent in writing to any non-pro rata contribution.

3.3 Interest and Return of Capital Contribution. No Member shall receive any interest on his Capital Contribution. Except as otherwise specifically provided for herein, the Members shall not be allowed to withdraw or have refunded any Capital Contribution.

ARTICLE IV ALLOCATIONS OF PROFITS AND LOSSES

4.1 Participation in Profits and Losses. All profits and losses of the Company will be allocated to the Members in accordance with their respective interests.

ARTICLE V DISTRIBUTIONS OF CASH FLOW

5.1 Distributions of Cash Flow. All cash flow of the Company shall be distributed to the Members at such times as the Members may jointly determine.

ARTICLE VI MANAGEMENT

6.1 Powers of Managing Member. Except as expressly provided otherwise in the Act, the Articles or this Operating Agreement, the powers of the Company shall be exercised by or under the authority of, and the business and. affairs of the Company shall be managed by the Managing Member. The Managing Member shall have complete charge of all affairs and business and management and control of the Company. The Managing Member shall have all the rights and powers as are conferred by law or as it deems necessary, advisable or convenient in managing the business and affairs of the Company.

6.2 Business Relationships with Company. The Company may enter into any contract, agreement, lease or other arrangement for the furnishing to or. by the Company of real estate, goods, services or space with any Member or any party or entity which is related to or affiliated with any Member or which is directly or indirectly owned or controlled by the Members or by a party or entity related to or affiliate with the Members.

6.3 Limitation of Liability of Members or Managers. No Member or Manager of the Company shall be liable for any amount in a proceeding brought by or on behalf of the Company or the Members of the Company.

6.4 Indemnification. The Company shall indemnify and hold harmless any Member and any partner, shareholder, director, officer, management, agent, affiliate and professional or other advisor of the Members (collectively, the "Indemnified Persons") from and against any and all

3

loss, damage, expense (including without limitation, fees and expenses of attorneys and other advisors and any court costs incurred by any Indemnified Person) or liability by reason of anything any Indemnified Person does or refrains from doing for, or in connection with the business or affairs of the Company (INCLUDING ANY LOSS, DAMAGE, EXPENSE OR LIABILITY CAUSED BY OR ATTRIBUTABLE TO THE ORDINARY OR SIMPLE NEGLIGENCE, AS OPPOSED TO GROSS NEGLIGENCE, OF THE INDEMNIFIED PERSON), except to the extent that the loss, damage, expense or liability results primarily form the Indemnified Person's gross negligence or willful breach of a material provision of this Agreement which in either event causes actual, material damage to the Company. The foregoing rights of indemnification shall not be exclusive of any other rights to which the Member may be entitled. The Manager may take such action as is necessary to carry out these indemnification provisions and may adopt, approve and amend from time to time such resolutions or contracts implementing such provisions or such further indemnification arrangements as may be permitted bylaw.

6.5 Liability of Managing Member. No Managing Member shall be liable or accountable to the Company or to any of the Members, in damages or otherwise, for any error of judgment, for any mistake of fact or oflaw, or for any other act or thing that it may do or refrain from doing in connection with the business and affairs of the Company, except for willful misconduct or gross negligence or breach of fiduciary duty.

ARTICLE VII DISSOLUTION AND TERMINATION

7.1 Events of Dissolution. The Company shall be dissolved upon the first to occur of the following;

(a) Any event that under the Act or the Articles requires dissolution of the Company, provided that the resignation, retirement, expulsion, bankruptcy, or dissolution of a member or occurrence of any other event that terminates the continued membership of a member in the Company shall not cause the dissolution of the Company;

(b) The unanimous written consent of the Members to the dissolution of the Company;

(c) The entry of a decree of judicial dissolution of the Company as provided in the Act; or

(d) The occurrence of any other event described in the Act that causes an involuntary termination of the Company.

7.2 Liquidation. Upon the dissolution of the Company, the Members shall wind up its affairs and distribute its assets in accordance with the Act. A reasonable time shall be allowed for

4

_ lL.a,".. 1,.

the orderly liquidation of the assets of the Company and the discharge of liabilities to the creditors so as to minimize any losses attendant upon dissolution.

7.3 Distributions. Upon liquidation, the Company assets (including any cash on hand) shall be sold or distributed in accordance with the Act.

7.4 No Recourse Against Members. Except as provided by law, upon dissolution, each Member shall look solely to the assets of the Company for any payments required or allowed to be made to it, and no Member shaIl have any recourse against any other Member, and no Member shall be required to contribute property to makeup a deficit capital account upon dissolution.

7.5 Non Profit Purchase Option and Right of First Refusal Agreement. The Company is expressly authorized to enter into an exclusive Nonprofit Purchase Option and Right of First Refusal Agreement with Wise County Redevelopment and Housing Authority, which is a qualified nonprofit organization under the provisions of Section 42 of the Internal Revenue Code of 1986, as amended, which Purchase Option shall comply with the requirements of such Section 42.

ARTICLE VIII MISCELLANEOUS PROVISIONS

8.1 Notices. Whenever, under the provisions of the Act or other law, the Articles or this Operating Agreement, notice is required to be given to any Person, it shall not be construed to mean exclusively personal notice unless otherwise specifically provided, but such notice may be given in writing, by mail, addressed to the Company at its principal office from time to time and to any other Person at its address as it appears on the records of the Company from time to time, with postage thereon prepaid. Any such notice shall be deemed to have been given at the time it is deposited in the United States mail. Notice to a Person may also be given personally or by telegram or telecopy sent to his address as it appears on the records of the Company

8.2 Application of Virginia Law. This Operating Agreement and the interpretation hereof, shall be governed exclusively by its terms and by the laws of the Commonwealth of Virginia, without reference to its choice of law provisions, and specifically the Act.

8.3 Amendments. No amendment or modification of this Operating Agreement shall be effective except upon the unanimous written consent of the Members.

8.4 Construction. Whenever the singular number is used in this Operating Agreement and when required by the context, the same shall include the plural, and the masculine gender shall include the feminine and neuter genders, and vice versa.

8.5 Headings. The headings in this Operating Agreement are inserted for convenience

5

. iii ,. i, on] . .1, .

only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Operating Agreement or any provision hereof.

8.6 Waivers. The failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or condition of this Operating Agreement shall not prevent a subsequent act; which would have originally constituted a violation, from having the effect of an original violation.

8.7 Rights and Remedies Cumulative. The rights and remedies provided by this Operating Agreement are cumulative and the use of anyone right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Such rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise.

8.8 Severability. If any provision of this Operating Agreement or the application thereof to any Person or circumstance shall be invalid, illegal or unenforceable to any extent, the remainder of this Operating Agreement and the application thereof shall not be affected and shall be enforceable to the fullest extent permitted by law.

8.9 Successors and Assigns. Each and all of the covenants, terms, provisions and agreements herein contained shall be binding upon and inure to the benefit of the parties hereto and, to the extent permitted by this Operating Agreement, their respective legal representatives, successors and assigns.

8.10 Creditors. None of the provisions of this Operating Agreement shall be for the benefit of or enforceable by any creditor of the Company.

8.11 Counterparts. This Operating Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

8.12 Entire Agreement. This Operating Agreement sets forth all of the promises, agreements, conditions and understandings between the parties respecting the subject matter. hereof and supersedes all prior negotiations, conversations, discussions, correspondence, memoranda and agreements between the parties concerning such subject matter.

The undersigned, being all the Members of the Company, hereby agree, acknowledge and certify that the foregoing Operating Agreement constitutes the sole and entire Operating Agreement of the Company, unanimously adopted by the Members of the Company as of the date first written above.

[Signatures on Following Pagel

6

. Ii •. .... . • •. • 1. ,I •

.. iLL '.' .• 1.

MEMBERS:

COMMONWEALTH APARTMENTS DEVELOPMENT CORPORATION, a Virginia corporation

:~i ~tn:0~~A ./ WISE COUNTY REDEVELOPMENT AND HOUSING AUTHORITY, a political subdivision Of the Co onwea1t of Virginia

COMPANY:

COMMONWEALTH APARTMENTS, LLC, a Virginia limited liability company

By: Commonwealth Apartments Development Corporation, a Virginia corporation, Its Managing Member

By: ~ cJt.,~k./ Its: President _~

7

• .•. 0."" .1.

Member COMMONWEALTH APARTMENTS DEVELOPMENT CORPORATION

WISE COUNTY REDEVELOPMENT AND HOUSING AUTHORITY

_ liLL M,t ••

EXHIBIT A

Initial Capital Contribution Membership Interest .

$90.00 90.00%

$10.00 10.00%

$100.00

8

ui. _

TABC (VA SCC Certification)

STATE CORPORATION COMMISSION

CJ(iclimont{, Pe6ruary 6, 2009

'fliis is to certify tliat tlie certificate of organization of

Commonwealth Apartments, LLC

wastliis day issued and admitted to record in tliis office and tliat tlie said limited lia6ility company is autliotized to transact its 6usiness su6ject to aCC Virginia Caws applica6Ce to tlie company and its 6usiness. IEffective date: Pe6ruary 6, 2009

CIS0368

State Corporation Commission )2lttest:

~~ ~ferk.of tfie Commission

"_.on ____ ... __ lL. . _ ... .; __ = == " ","""" ,.

TABD (Principal's Previous Participation Certification)

INSTRUCTIONS:

Previous Participation Certification

Development Name: Commonwealth Apartments Name of Applicant: Commonwealth Apartments, LLC

ControlJ'ing General Partner: Commonwealth Apartments Development Corporat

This certification must be signed by an individual who is, or is aufhorized to act on behalf of the Controlling Gene" LP) or Managing Member (if LLC) of the Applicant, as designated in the Applicafion. VHDA will accept an authori document, which gives s"gnatory authorization to sign on behalf of the principals.

2 Attach a resume for each principal of the general partnership (GP) or limited liability company (LLC) and an orga chart for the limifed partnership (LP) and LLC.

3 A Schedule A is required for each principal of the GP. 4 For each property listed as "non-compliance found," please attach a detailed explanation of the nature of the nc

compliance, stating whether or not it has been resolved.

5 The date of this certification must be no more than 30 days prior to submission of the Application.

Failure to disclose information about properties which have been found to be out of compliance or any material misrepresentations are grounds for rejection of on application and prohibition against future applications.

DEFINITIONS:

For the purpose of this Certification, the following definitions shall apply:

Development shall mean the proposed multifamily rental housing development identified above.

Participants shall mean the principals who will partiCipate in the ownership of the development.

Principal shall mean any person (including any individual, joint venture, partnership, limited liability company, corporatil organization, trust, or any other public or private entity) that (i) with respect fo the proposed development, will own or r the ownership of the proposed development or (ii) with respect fo an existing multifamily rental project, has owned or;: in the ownership of such project, all as more fully described hereinbelow. The person who is the owner of the proposed development or multifamily rental project is considered a principal. In determining whether any other person is a princi following guidelines shall govern:

1. In the case of a partnership which is a principal (whether as the owner or otherwise), all general partners are also principals, regardless of the percentage interest of the general partner:

2. In the case of a public or private corporation or organization or governmental entity that is a principal (whether a or otherwise), principals also include the president, vice president, secretary, and treasurer and other officers who responsible to the board of directors or any equivalent governing body, as well as all directors or other members ( governing body and any stockholder having a 25% or more interest;

3. In the case of a limited liability company (LLC) that is a principal (whether as the owner or otherwise), all member! considered principals, regardless of the percentage interest of the member;

4. In the case of a trusf that is a principal (whether as the owner or otherwise), all persons having a 25% or more ben, ownership interest in the assets of such trust;

5. In the case of any other person that is a principal (whether as the owner or otherwise), all persons having a 25% or ownership interest in such other person are also considered principals; and

6. Any person that directly or indirectly controls, or has the power to control, a prindpal shall also be considered a pi

CERTIFICATIONS: I hereby certify that all the statements made by me are true, complete and correct to the best of my knowledge and belief and are made in good faith, including the data contained in Schedule A and any statements attached to this certification.

1. I further certify that for the period beginning 10 years prior to the date of this Certification:

a. During any time that any of the participants were principals in any multifamily rental project, no project has been foreclosed upon, no mortgage has been in default, assigned to the mortgage insurer (governmental or private), nor has mortgage relief by the mortgagee been given;

b. During any time that any of the participants were principals in any multifarnily rental project, there has not been any breach by the owner of any agreernents relating to the construction or rehabilitation. use. operation, management or disposition of the project;

c. To the best of rny knowledge, there are no unresolved findings raised as a result of state or federal audits, management reviews or other governmental investigations concerning any multifamily rental project in which any of the participants were principals;

d. During any tirne that any of the participants were principals in any multifamily rental project, there has not been a suspension or termination of payments under any state or federal assistance contract for the project;

e. None of the participants has been convicted of a felony and is not presently, to my knowledge, the subject of a corn plaint or indictment charging a felony. A felony is defined as any offense punishable by imprisonment for a term exceeding one year, but does not include any offense classified as a misdemeanor under the Jaws of a state and punishable by imprisonment of two years or less;

f. None of the participants has been suspended, debarred or otherwise restricted by any federal or state governmental entity from doing business with such governmental entity; and

g. None of the participants has defaulted on an obligation covered by a surety or performance bond and has not been the subject of a claim under an employee fidelify bond.

2. I further certify that none of the participants is a Virginia Housing Developrnent Authority (VHDA) employee or a rnember of the immediate household of any of its employees.

3. I further certify that none of the participants is participating in the ownership of a rnultifamily rental housing project as of this date on which construction has stopped for a period in excess of 20 days or (in the case of a rnultifarnily rental housing project assisted by any federal or state governmental entity) which has been substantially completed for rnore than 90 days but for which requisite documents for closing, such as the final cost certification, have not been filed with such governmental entity.

4. I further certify that none of the participants has been found by any federal or state governmental entity or court to be in noncompliance with any applicable civil rights, equal employrnent opportunity or fair housing laws or regulations.

5. I further certify that none of the participants was a principal in any multifarnily rental project which has been found by any federal or state governmental entity or court to have failed to comply with Section 42 of the Internal Revenue Code of 1986, as amended. during the period of tirne in which the participant was a principal in such

6. Staternents above (if any) to which I cannot certify have been deleted by striking through the words. In the case of any such deletion, I have attached a true and accurate statement to explain the relevant facts and circumstances.

WARNING: IF THIS CERTIFICATION CONTAINS ANY MISREPRESENTATION OF A MATERIAL FACT. THE AUTHORITY MAY REJECT THE APPLI ATION FOR LOW-INCOME HOUSING TAX CREDITS AND MAY PROHIBIT THE SUBMISSION BY THE APPLICANT OF

:x~q~ISJ;OITS IN THE FUTURE.

Monty L. Salyer Printed Name

'~5, dOO'!

Date (must be no more than 30 days prior to submission of the Application) Schedule A: List of All Tax Credit Developments for Each Principal to this Certification

Complete the following, using separate pagels) as needed, for each principal. List all developments that have received allocations of tax credits under Section 42 of the IRe.

1 2 3 4 5 6 7

8 9 10 11 12

13 14 15 16

17 18

19 20 21

22 23 24 25 26 27 28 29 30 31

32 33 34 35 36 37

Commonwealth Apartments Development Corporation Principal's Name:

Name of Ownership Entity and Development Name/Location Phone Number

Controlling General Partner?

(YIN)

Controlling G. P. of Proposed projed?_Y,--v-:::-;:;-_ YarN

Total Low Total Dev. Income Placed in 8609(s) Issue

Units Units Service Date Date

Non-compliance Found? YIN (Explain Yes)

Date (must be no more than 30 days prior to submission of the Application) Schedule A: list of All Tax Credit Developments for Each Principal to this Certification

Complete the following, using separate page(s) as needed, for each principal. List Ql! developments that have received . allocations of tax credits under Section 42 of the IRe.

2

3 4 5 6

7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Wise County Redevelopment and Housing Authority - Monty Salyer Principal's Name:

Name of Ownership Entity and Development Name/Location Phone Number

Stonebriar Stonebr"lar, L.P. SI. Paul VA 276395-6104

Inman Village Inman Village, l.P. Appalachia VA 2763956104

Controlling General Partner?

IY/NI N

N

Controlling G. P. of Proposed Project? "N,---~_~_ YarN

Total Low Total Dev. Income Placed in 8609(5) Issue

Units Units Service Date Date 24 24 12/1 /97

7/1/99 80 80 5/1/02

3/28/03

Non-compliance Found? YIN [Explain Yes)

N

N

10.00%

WISE CO IfJUSlt-G AVH 275 39S 5B?~ P.02.'llS

SUMMARY OF THE ACTIVITIES OF THE WISE COUNTY REDEVELOPMENT AND HOUSING AUTHORITY

May 2009

The Wise County Redevelopment and Housing Authorlly Is a county governmental organization It!al was created 10 assist in the housing afld development needs of Wise County. The Authority is regulated by Trt:le 36,of the Code of Virginia. II is directed by an eight member Board of Commissioners Ihat are appointed for fouryaartenns by the Board of Supervisors. Funding for the Authority is primarily from the progl<lms Ihe Authority admini!>lers, wilh a portion o/the funding from the County Board of Supervisors. The programs the Authority now administer Include the following:

Public Housing -193 apartments located In 51. Paul, Coeburn, Appalachia, :md BI9 Stone Gap. These projects are subsidized by the Department of HousIng and Urban Development.

Rural Developmant _178 apanments located in Appalachia, pound, and Coeburn. These projects were developed wlth loans from Rural Development and are regulated by Rural Development.

Housing Choice Voucher_ 751 units oflental assistance for lower Income (amilies to live In privately owned properties located throughotlt the County. Program funded and regulated by the Department of Housing ami Ulban Development. Additionally the Authority has a 21 unll project_ based property known as John Vandiller Manor.

Community Improvement Grants and Loans. These are received by the Towns and the County to improve housing and infrastructure In certain neighborhoods. The Aufhorlty adminIsters the programs for the Towns and tile County. These have included water and sewer projects, hou5ing rehabilitation, downtown revltaHzatlon and other economic development projects.

The Aulhclity administers a HUD Family Investment Cenlerwhich houses GED classes, a Health Department Program, and community projects; coordinates an elderly services program with t~e Mountain Empire Older Citizens, an agency on aging. The Authority devei(lped and administers a Housing Construc~!In Training Program for its residents. The program Is known as "If I Had a Hammer.'

Tho Authority hes oreated Limited Partnerships and has developed an elderly housing complex known as Sionebriar and completed major ranovalions to the Inman Village famny complex, and has recently purchased the Commonwealth Apartments, a family complex, in hopes of receiving tax credits for major renovations.

MRY-14-2009 03:55

Qualifications

WISE CO HOUSING RVH

Monty L. Salyer 3233 Longview Drive St. Paul, VA 24283

276-762-7928 [email protected]

275 395 5874 P.03/05

Highly experienced administrator who has demonstrated the ability to lead the Wise County Redevelopment & Housing Authority to new levels of SUCCeSS. Strong qualifications with a track record of more than 30 years experience. A PHA professional and PHM certification with hands-on experience in agency planning, development, and management. Proven ability to successfully analyze, identify deficiencies, and develop solutions. Ability to create and maintain a good working relationship with the Board of Commissioners and other Wise County entities,

Ex.perience

July 2008 - Present Executive Director

This is the most highly responsible administrative and supervisory position at the Housing Authority. The work involves planning, organizing, directing, and evaluating the operation of all existing Low-Income Public Housing Programs, Section 8 Programs, Rural Development programs, and any neW programs as authorized by the United States Department of Housing and Urban Development (HUD), RD, DHCD, Towns and County, and the Board of Commissioners of the Housing Authority. Work includes making decisions involving policy interpretation or eXercising independent judgment within the framework of established policy, procedures, and laws. Performance of the duties requires the application of executive skills, considerable public relations skills, and the exercise of initiative, tact, and independent judgment Supervision is exercised over all professional, administrative, and technical staff.

November 1980 - July 2008

Wise County Redevelopment & Housing Authority Coeburn, VA

Serving as Assistant Executive Director of the Wise County Redevelopment & Housing Authority. ASSisting in the Authority administration. Directing the administration of Authority policies. Supervising all WCRHA staff with the exception of the ExecutiVe Secretary, Accountant and Community Development Director. Maintaining knowledge of status of budgets of programs. Procuring major services and contracts. Reviewing

MAY-14-2009 03:55 WISE CO HOUSING AUH 276 395 5874 P.04/05

and updating program policies and files. Preparing federal and state housing applications. Directs the approval of all invoices. Compiles Department of Labor reports. Attends meetings of Board of Commissioners. When necessary attends County Board of Supervisors, Town Councils and various agency meetings. Acquire prospective housing sites. Monitors and coordinates housing construction andlor capital improvements. Prepares PHAS and SEMAP reports. Responsible for WCRHA county-wide computer systems. Primary contact for legal aid and congressional inquiries. Responsible for Fair Housing and VA Landlord Tenant law compliance. Ensures the WCRHA policies and procedures are compliant with HUD, RD, and VHDA. Assists the Executive Director with staff supervision/program coordination. Confers regularly with the Executive Director on agency operations, goals, progress towards goals, problem areas, and on coordinating programs with other departments. Performs related duties and responsibilities as required and assigned by the Executive Director.

September 1975 - November 1980

Serving as Housing Director of the Authority. Supervising and directing the implementation of all housing programs. Supervising all managers, HCV administrators, and maintenance staff. Reviewing and updating all housing related policies and files. Preparing all federal and state housing applications. Directing approval of housing related invoices. Compiling Department of Labor reports. Directing. acquisition and construction of housing developments. Preparing various HUD required reports for the Executive Director, i.e., PHMAP and SEMAP. Responsible for Fair Housing and VA Landlord Tenant law compliance. Performed any related tasks as required by the Executive Director.

January 1975

Wise County Public Schools Wise, VA 24293

Substitute teacher for Coeburn High School and Coebum Primary School

1971-1975

Marty Corporation Coeburn, VA 24230

Summer laborer to assist with college tuition and costs

Education

SA (1975) Major - Political Science Minor - Sociology

MAY-14-2009 03:55 WISE CO HOUSING AUH

Cumberland College (now University of the Cumberlands) Williamsburg, KY

Certified Public Housing Manager (1979) Housing Management Institute Nolfolk Redevelopment & Housing Authority Noifolk, VA

Certified Public Housing Manager (1980) National Association of Housing and Redevelopment Officials

Principles in Real Estate (1989) Mountain Empire Community College Big Stone Gap, VA

Mosely Flint School of Real Estate (1995) Educational Requirements for VA Realtor's License Roanoke, VA

Personal

276 395 5874 P.D5/05

Born and reared in Coeburn, Virginia. Reside in St. Paul, Virginia. Married for 28 years to the former Theresa Myra Domby of St. Paul, a 3rd grade school teacher for Wise County Public Schools. Two daughters, Chelsea, a graduate of Duke University now working in New York City, and Emily, a senior at St. Paul High School. A member of the St. Paul United Methodist Church. An avid community volunteer serving on various Wise County Boards.

TOTAL P.D5

TabE

Nonprofit Questionnaire

Not Applicable

TABF (Architect's Certification)

VHDA AJTprrlable Hm,<;,w .I'laOs lie", •

INSTRUCTIONS FOR THE COMPLETION OF APPENDIX F

ARCHITECT'S CERTIFICATION

(This Form Must Be Submitted Under Architect's Letterhead and included in the Application - Tab F)

NOTE: If the development includes any combination of New Construction, Rehabilitation and Adaptive Reuse, then separate Architect Certifications must be provided for each construction type.

. .., .

The proper completion of this certification is critical to calculate the average unit square feet and net rentable square feet of each unit type, to document amenity items for which points will be awarded, and to calculate certain elements of the efficient use of resources points.

If this certification is not completed correctly there may be loss of points or disqualification of the application to compete for tax credits. If this development receives an allocation of tax credits and items are not provided as indicated on this certification then VHDA may. at its sole option. require the payment by the Owner of an amount up to 10% of the Total Development Cost (as set forth in the Application) of the development as liquidated damaqes for such violation or the total loss of credits may result. Therefore, it is imperative that this certification reflect the true and accurate intent of what will be provided in return for an allocation of tax credits.

Each section of this certification contains instructions on how the information should be provided. For Unit Size Calculations, the Average Unit Square Feet and Net Rentable Square Feet should be listed to two (2) decimal places. The number of units indicated should be only the units for which rent will be collected. For Average Unit Square Feet calculations, the Total Square Feet should equal the Average Unit Square Feet multiplied by the Number of UnitsiType. The total at the bottom of the Total Square Feet column should equal item (D) on the same page of the certification, or be within 1 digit due to rounding. The total at the bottom of the Number of UnitsiType column should equal the number of units in the tax credit application.

Accessibility certifications on page 8 are for tax credit point categories only and are not to be confused with minimum code requirements.

The architect signing this document is certifying that all unit and site amenities indicated in this certification are incorporated into the development plans and specifications and unit-by-unit work write-up, and that all products necessary to fulfill these representations are available for these purposes.

The individual who certifies this information must initial the pages where indicated, provide the personal information requested and sign on the last page. This certification should not be mailed separately to VHDA but returned to the developer for inclusion in the tax credit application.

(Acknowledge and include this instruction sheet as part of the certification)

Acknowledged: ~~ Printed N~me: C~ Gibson, RA

~

L., THE LANE GROUP .~~ We work well together

TO: Virginia Housing Development authority 60 I South Belvidere Street Richmond, Virginia 23220-6500 Attention: Jim Chandler

RE: ARCHITECT'S CERTIFICATION Name of Development: Commonwealth Apattments Address of Develop men!: Name of Owner/Applicant:

Commonwealth Street; Wise, Virginia 24293 Commonwealth Apattments, LLC

The above-referenced Owner has asked our office to provide this certification regarding (i) plans and specifications, (ii) the development square footages, average unit square footages and net rental square footages, (iii) the amenities the development will have upon completion, and (iv) federal and state requirements pertaining to development accessibility for persons with disabilities. This certification is rendered solely for the confirmation of these items. It is understood it will be used by the Housing Development authority solely for the purpose of determining whether the Development qualifies for points available under VHDA's Qualified Allocation Plan for housing tax credits and future consequences for failure to provide items certified below.

Plans and Specifications:

Required documentation for all properties (new construction, rehabilitation and adaptive reuse)

A location map with property clearly defmed. 2 Sketch plan of the site showing overall dimensions of main building(s), major site elements (e.g.,

parking lots and location of existing utilities, and water, sewer, electric, gas in the streets adjacent to tbe site). Contour lines and elevations are not required.

3 Sketch plans of main building(s) refiecting overall dimensions of: a. Typical floor plan(s) showing apartment types and placement b. Ground floor plan(s) showing common areas; c. Sketch floor plan(s) of typical dwelling unit(s); d. Typical wall section(s) showing footing, foundation, wall and floor structure.

Notes must indicate basic materials in structure, floor and exterior fmish.

In addition: required documentation for rehabilitation properties

A unit-by-unit work write-up.

Architects' Engineers' Planners' Environmental Specialists

146 West Main Street· Suite B • WytheVille, VA 24382 276.223.1216 • 276.223.1509 fax' www.thelanegroupinc.com

2

ARCHITECT'S CERTIFICATION, continued

This certification includes two (2) separate calculations of square footage:

1. Average Unit Square Feet: Measurements Include A Prorata Share of Heated Residential Common Area

2. Net Rentable Square Feet: Measurements Do Not Include A Prorata Share of Any Common Area and Reflect All Floor Plans of Each Unit Type (I-BR, 2-BR, etc.)

1. Average Unit Square Feet: (These measurements impact the scoring of tax credit applications)

For purposes of determining the usable residential heated square feet, tbe building(s) were measured from the outside face of exterior walls and tbe centerline of any party walls. All unbeated spaces and stairwells which are no more than heated breezeways and nonresidential, income producing commercial spaces were subtracted from this measurement. Community rooms, laundry rooms, property management offices and apartments, heated maintenance facilities, and otber common space designed to serve residential tenants were not deducted. Based on tbis procedure, I certify tbe following calculations in determining tbe usable heated square feet for the above referenced development:

21,550.00 0.00 0.00

21,550.00

(A) Total floor area in (sq. ft.) for the entire development (B) Unheated floor area (breezeways, balconies, storage) (C) Nonresidential, commercial (income producing) area (D) Total usable residential heated area (sq. ft.) for tbe development

INSTRUCTIONS FOR AVERAGE UNIT SQUARE FEET CALCULATIONS: Provide the average unit size for each bedroom type, (l bedroom elderly, 2 bedroom garden, 3 bedroom townhouse, etc,) by adding the total square feet of all the same bedroom types (2 bedroom garden with 1 bath and 2 bedroom garden with 2 baths) and adding the prorated share of heated common residential space and divide by the total number of the same bedroom types (2 bedroom garden), Do not alter any items below,

Average Number of Total Unit Types Unit Sq. Ft. * x Unitsffype Square Feet

Assisted Living 0.00 0 0.00 I StorylEFF-Elderly 0.00 0 0.00 1 Story!1 BR-Elderly 0.00 0 0.00 1 Story!2 BR-Elderly 0.00 0 0.00 Efficiency Elderly 0.00 0 0.00 I Bedroom Elderly 0.00 0 0.00 2 Bedrooms Elderly 0.00 0 0.00 Efficiency Garden 0.00 0 0.00 1 Bedroom Garden 728.20 10 7,282.00 2 Bedrooms Garden 891.75 16 14,268.00 3 Bedrooms Garden 0.00 0 0.00 4 Bedrooms Garden 0.00 0 0.00 2 Bedrooms Townhouse 0.00 0 0.00 3 Bedrooms Townhouse 0.00 0 0.00 4 Bedrooms Townhouse 0.00 0 0.00

Total 26 Total 21,550.00

* Including pro rata share of heated, residential common area

3


2. Net Rentable Square For purposes of calculating Net Rentable Square Feet, the units were measured from the face of each interior wall. The

values below therefore indicate the actual square footage of each unit floor plan. (For example, there may be 2 distinct I-bedroom floor plans, 3 distinct 2-bedroom floor plans, etc. The purpose of this section of the Architect Certification is to

document and certifY the floor space attributable to residential rental units in the development.)

Floor Plan Number of Units Unit Type Square Feet This Floor Plan Total

Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00 Efficiency 0.00 0 0.00

I Bedroom 658.00 4 2,632.00 1 Bedroom 658.00 6 3,948.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00 1 Bedroom 0.00 0 0.00

c

InitialS&-

4

(Net Rentable Square Feet continued)

2 Bedroom 844.00 3 2,532.00

2 Bedroom 797.00 13 10,361.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

2 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

3 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

4 Bedroom 0.00 0 0.00

Total: 26 19,473.00

'"

5 Initials &--


Development Amenities:

I certifY that the development's plans and specifications, work write-up, and proposed budget incorporate all items from VHDA's most current Minimum Design and Construction Requirements. The Requirements apply to any new, adaptive reuse or rehabilitated development (including those serving elderly andlor physically disabled households).

The Minimum Design & Construction Requirements may be found on VHDA's website at www.vhda.com.

For lillY development upon completion of construction/rehabilitation: (non-mandatory amenities)

o % a.(l) Percentage of 2 bedroom units that will have 1.5 or more bathrooms o % a.(2) Percentage of 3 or more bedroom units that will have 2 or more bathrooms

D b. The development will have a community/meeting room with a minimum of749 square feet.

100 % c. Percentage of exterior walls covered by brick (excluding triangular gable end area, doors windows and retaining walls)

[2] d. All kitchen and laundry appliances meet the EPA's Energy Star qualified program requirements

[2] e. All windows meet the EPA's Energy Star qualified program requirements [2] f. Every unit in the development is heated and air conditioned with either (i) heat

pump units with both a SEER rating of 14.0 or more and a HSPF rating of 8.2 or more and a variable speed air handling unit (for through-the-wall heat pump equipment that has an EER rating of 11.0 or more), or (ii) air conditioning units with a SEER rating of 14.0 or more and a variable speed air handling unit, combined with gas furnaces with an AFUE rating of 90% or more

[2] g. Water expense will be sub-metered (tenant will pay monthly or bi-monthly bill) [2] h. Each bathroom consists only oflow-flow faucets (2.2 gpm maximum) and

showerheads (2.5 gpm maximum) [2] i. Provide necessary infrastrucrure in all units for high speed cable, DSL or

wireless internet service D j. All water heaters will meet the EPA's Energy Star qualified program requirements.

6


For all developments exclusively serving elderly and/or handicapped tenants, upon completion of construction!rehabilitation: (non-mandatory amenities)

D a. All cooking ranges will have front controls D b. All units will have an emergency call system D c. All bathrooms will have an independent or supplemental heat source D d. All entrance doors have two eye viewers, one at 48" and the other at standard

height

For all rehabilitation and adaptive reuse developments, upon completion of construction! rehabilitation: (non-mandatory)

D The structure is listed individually in the National Register of Historic Places or is located in a registered historic district and certified by the Secretary ofthe Interior as being of historical significance to the district, and the rehabilitation will be completed in such a manner as to be eligible for historic rehabilitation tax credits

Building Structure:

Number of Stories

[] Low-Rise (1-5 stories withilllX structural elements being wood frame construction) D Mid-Rise (5-7 stories with no structural elements being wood frame construction) D High-Rise (8 or more stories with no structural elements being wood frame construction)

7

Initials -~+---


Accessibility:

I certifY that the development plans and specifications meet all requirements of the federal

Americans With Disabilities Act

I certifY that the development plans and specifications meet all requirements of HUD regulations

interpreting the accessibility requirements of section 504 ofthe Rehabilitation Act Please reference Uniform Federal Accessibility Standards (UFAS) for more particular information,

Check one or none of the following point categories, as appropriate:

o For any non-elderly property in which the greater of5 or 10% ofthe units (i) provide federal project-based rent subsidies or equivalent assistance in order to ensure occupancy by extremely low-income persons;

(ii) conform to HUD regulations interpreting accessibility requirements of section 504 of the Rehabilitation Act; and (iii) are actively marketed to people with special needs in accordance with a plan submitted as

part ofthe Application, (If special needs include mobility impairments the units described above must include roll-in showers and roll under sinks and front controls for ranges), SO pts.

o For any non-elderly property in which the greater of 5 or 10% of the units (i) have rents within HUD's Housing Choice Voucher ("HCV") payment standard; (ii) conform to HUD regulations interpreting

accessibility requirements of section 504 of the Rehabilitation Act; and (iii) are actively marketed to people with mobility impairments, including HCV holders, in accordance with a plan submitted as part the Application. 30 pts.

[2] For any non-elderly property in which at least four percent (4%) of the units conform to HUD

regulations interpreting accessibility requirements of section 504 ofthe Rehabilitation Act and are actively marketed to people with mobility impairments in accordance with a plan submitted as part of the Application. IS pts.

As architect of record for the above referenced development, the above certifications are correct to the best of my knowledge.

Signed:

Printed Name:

Title: Vice President - Architecture

Virginia Registration #: 8120

Phone: 276-223-1216

Date: 04/30109

NOTE TO ARCHITECT: Any change in this form may result in disqualification or a reduction of points under the scoring system. If you have any questions, please call Jim

Chandler at VHDA (804) 343-5786.

Return this certification on Architect's Letterhead to the developer for inclusion in the tax credit application package.

8

AppendixF - VHDA's Universal Design Standards Certification

[] Units in the development will meet VHDA's Universal Design Standards. Before issuance ofIRS Form 8609, applicant will provide docnmentation to VHDA as evidence that such units meet VHDA's Universal Design standards.

The nnmber of rental units that will meet these standards: 3

The total number of rental units in this development: 26

NOTE: For Elderly Developments, 100% of the units in the development must meet the Universal Design standards in order to qualify for points.

For Family Developments, points are awarded based on a percentage of the nnmber of units meeting the Universal Design standards.

For the tax credit applicant to qualify for points associated with Universal Design, the architect of record must on VHDA's list of Universal Design certified architects.

9

- ~arthCran or L~~D Development Certitlcation

B Earthcraft Certification - The development's design meets the criteria for EarthCraft certification according to energy modeling projections and the areas of emphasis worksheet. Before issuance ofIRS Fonn 8609, applicant will obtain and provide EarthCraft Certification to VHDA.

D LEED Certification - The development's design meets the criteria for the U.S. Green Building Council LEED green building certification. Before issuance ofIRS Form 8609, applicant will obtain and provide LEED Certification to VHDA.

NOTE: Select only one ofthe above two options.

For the tax credit applicant to qualify for points associated with this section, the architect of record must on VHDA's list ofLEED or Earthcraft certified architects, as appropriate.

Signed:

Printed Name:

Date:

10

Joanne "Jody" Gibson

Architect of Record

(same individual as on page 8)

4/30109

HDA """".-"",~,~",,,,.

AppendixF - LEED Accredited Design Team Member Certification

I. Please identify the following information of the LEED Accredited Professional:

Name: Douglas C. Covington Company: The Lane Group, Inc. Title: Designer Phone Number: 276-223-1216

Fax Number: 276-223-1509

Email: [email protected]

2. List below the attributes of the proposed development which would or may qualify for points under the U.S. Green Building Council's LEED certification rating system: * (Add space as necessary)

• Use ofrecyled materials

• Optimizing Energy Performance of Living Units • • Construction Waste Management • •

• • • • •

• • • •

3. Please aUach a copy of the LEED Accredited Professional Certificate to this document.

04/30109 Date

* This page must include items that would qualify for points under the 'LEED certification

system. No points will be awarded in this category if nothing is listed here.

** This individual is not required to be the architect of rc'¥>(d signing the Architect Certification. It is

Ch<lirln~n

DOD DOD DOD DOD GBCI

GREEN BUILDING CERTIFICATION INSTITUTE HEREBY CERTIFIES THAT

Douglas C. Covington

HAS ACHIEVED THE DESIGNATION OF

LEED® ACCREDITED PROFESSIONAL BY DEMONSTRATING THE KNOWLEDGE OF GREEN BUILDING PRACTICE

REQUIRED FOR SUCCESSFUL IMPLEMENTATION OF THE LEADERSHIP IN ENERGY

AND ENVIRONMENTAL DESIGN (LEED") GREEN BUILDING RATING SYSTEM'''.

~Jr ~

~1Z~ December 29. 2008 #!U~--. l'NcrTempleton, t're,ldent Date j$$Ued

!'rinh"~ "t) ~O% b~mhl)D lib,:,,> i "(l"_-" J'''SH,<JI\:;\lJ11U li1)<;1"' WIth \'t'gd<lbl<: ba~~d loL.

Commonwealth Apartments, LLC agrees to abide by the VHDA Relocation Guidelines attached, in the event that resident relocation is necessary during the construction period.

Relocation Assistance Guidelines

These guidelines are the Authority's standards for the provision of assistance to tenants forced to relocate because of changes in the use or condition of their rental units regardless of the length of the remaining lease term.

Any contract for the acquisition of a site with existing residential property may not require an empty building as a condition of such contract, unless relocation assistance is provided to displaced households, if any, at such level required by the Authority below.

I. Applicability

The guidelines apply to all developments that will displace existing tenants and must be followed to qualify for Low Income Housing Tax Credits. These guidelines will be incorporated by reference in and enforced by the Contract to Enforce Representations Regarding Low-Income Housing Tax Credit Development if the development qualifies for a reservation of credits.

The guidelines apply to all multi-family buildings when tenant moves are required for reasons such as rehabilitation, demolition, and sale by contract specifying an empty building. They apply to rented single-family houses when tenancies are terminated because of planned demolition.

II. Summary

In the situations specified above, owners must undertake the following:

I) Relocation payments 2) Relocation assistance 3) l20-day vacate notice 4) Full communication of plans

III. Relocation Payments

Owners must provide relocation payments to all households recelvmg notice to vacate the development and not return to the existing development. See item V. for Temporary Relocation. The payments are designed to help cover moving expenses and the additional costs of relocation. Relocation payments for unfurnished dwelling units should be in accordance with the current moving expense schedule for Virginia under the Uniform Relocation Act. The payments currently specified by the Act are as follows:

Occupant owns furnitnre

RELOCA nON ASSISTANCE GUIDELINES, continued

To each leaseholder whose gross income is less than 50% of the applicable Area Median Gross Income (AMGI) adjusted for household size, owner/applicants must provide a relocation payment of twice the amount listed above.

Owners are encouraged to discuss the details of their relocation plans with the Authority staff in order to identify special tenant circumstances that might require fine tuning of the arrangements.

Owners must make at least half of the relocation payment when a tenant gives a definite move out date, the remainder to be paid when the tenant actually vacates. Many need this to help pay the security deposit on their next residences. Owners are urged to give careful consideration to providing relocation payments to tenants who have not yet received their l20-day notice to vacate but have compelling reasons to move early.

IV. Relocation Assistance

Owner/applicants should provide additional relocation assistance such as:

• Expediting return of security deposits, or allowing tenants to apply them to the last month's rent

• Contacting comparably priced rental complexes to request priority for persons being displaced

• Providing transportation for tenants needing to look at other housing, especially those who are elderly or disabled

• Giving attention to the special problems of timing moves for families with school age children

• Offering to help (trucks and drivers) move furnishings

Relocation assistance and services should be made available to tenants not only during regular business hours but during evenings and weekends to accommodate tenants who would otherwise have to miss work. Owners should provide tenants written materials and/or translation services in their native languages if necessary.

V. Temporary Relocation Assistance

Owner/applicants must provide assistance for two moves when it is necessary for occupants qualifying for a renovated unit to move temporarily during the renovation work and then return to a renovated unit. Assistance can be either a payment to reimburse the actual cost of the move and utility transfers or moving services provided by the developer and a payment to cover the cost of utility transfers. Tenants are expected to provide documentation of their expenses. Payment for only one move is required if the tenant elects in writing to move to a renovated unit and not return to his or her original unit.

RELOCATION ASSISTANCE GUIDELINES, continued

VI. 120-Day Notice to Vacate

State law requires 120-day vacate notice for all condo and co-op conversions and for any change in the use of buildings with at least four rental units. These guidelines extend that notice period to all multi-family rental units vacated due to rehabilitation or demolition, and to single-family houses being demolished.

VII. Full Communication of Renovation and Relocation Plans

Owners must inform tenants of renovation and relocation plans as soon as possible, and to arrange for interpreters to help non-English speaking persons understand what the owner intends to do with the property. Open communication with tenants about plans for the development can be helpful to both owner and occupants by minimizing rumors and misunderstandings.

Owners of complexes containing 20 or more units are required to submit a renovation and relocation plan to the Authority and to affected tenants. The plan should be as complete as possible, and updated as changes are made. The scope of the plan should be appropriate to the scale of the development being renovated, including at a minimum:

I) Name, address and contact person for the owner/ developer/management company 2) Scope of the work to be done and phasing of work, including estimated timetables 3) Relocation payments and services to be offered 4) Anticipated rents and rental policies after the changes 5) Measures planned to minimize construction impact on occupied units.

The plan should be submitted to the Virginia Housing Development Authority, Multi-Family Development Division, Attention: Tax Credit Program Administrator.

VIII. Documentation of Compliance

Owner/applicants are required to maintain files which can, if required by the Authority, document compliance with the above requirements. Such files should include, but not be limited to copies of relocation plans, notices, canceled checks, and other items providing evidence of compliance with the above requirements.

RELOCATION ASSISTANCE GUIDELINES, continued

REQUIRED NOTICE WHEN BUILDINGS UNDERGO CHANGE

Section 55-222 of the Code of Virginia requires 120 days' notice to tenants being vacated from any building containing at least 4 residential units, if the building is to be renovated, demolished, sold on a contract requiring an empty building, or converted to hotel, motel, apartment hotel, or other commercial use.

Virginia Code Section 55-222

NOTICE TO TERMINATE A TENANCY; ON WHOM SERVED; WHEN NECESSARY. - A TENANCY FROM YEAR TO YEAR MAY BE TERMINATED BY EITHER PARTY GIVING THERE MONTHS; NOTICE, IN WRITING, PRIOR TO THE END OF ANY YEAR OF THE TENANCY, OF HIS INTENTION TO TERMINATE THE SAME. A TENANCY FROM MONTH TO MONTH MAY BE TERMINATED BY EITHER PARTY GIVING THIRTY DAYS' NOTICE IN WRITING, PRIOR TO THE END OF THE MONTH, OF THIS INTENTION TO TERMINATE THE SAME. HOWEVER, 120 DAYS' WRITTEN NOTICE IS REQUIRED IF THE TERMINATION IS DUE TO REHABILITATION OR A CHANGE IN THE USE OF ALL OR ANY PART OF A BUILDING CONTAINING AT LEAST FOUR RESIDENTIAL UNITS. CHANGES SHALL INCLUDE BUT NOT BE LIMITED TO CONVERSION TO A HOTEL, MOTEL, APARTMENT HOTEL OR OTHER COMMERCIAL USE, PLANNED UNIT DEVELOPMENT, REHABILITATION, DEMOLITION OR SALE TO A CONTRACT PURCHASER REQUIRING AN EMPTY BUILDING. THIS l20-DAY REQUIREMENT SHALL NOT BE WAIVED; HOWEVER, A PERIOD OF LESS THAN 120 DAYS MAY BE AGREED UPON BY BOTH THE LANDLORD AND TENANT IN A WRITTEN AGREEMENT SEPARATE FROM THE RENTAL AGREEMENT OR LEASE EXECUTED AFTER SUCH NOTICE IS GIVEN AND APPLICABLE ONLY TO THE 120-DA Y NOTICE PERIOD. WHEN SUCH NOTICE IS GIVEN TO THE TENANT IT MAYBE SERVED UPON HIM OR UPON ANYONE HOLDING UNDER HIM THE LEASED PREMISES, OR ANY PART THEREOF. WHEN IT IS BY THE TENANT IT MAY BE SERVED UPON ANYONE WHO, AT THE TIME, OWNS THE PREMISES IN WHOLE OR IN PART, OR THE AGENT OF SUCH OWNER, OR ACCORDING TO THE COMMON LAW. THIS SECTION SHALL NOT APPLY WHEN, BY SPECIAL AGREEMENT, NO NOTICE IS TO BE GIVEN; NOR SHALL NOTICE BE NECESSARY FROM OR TO A TENANT WHOSE TERM IS TO END AT A CERTAIN TIME.

THE WRITTEN NOTICE REQUIRED BY THIS SECTION TO TERMINATE A TENANCY SHALL NOT BE CONTAINED IN THE RENTAL AGREEMENT OR LEASE, BUT SHALL BE A SEPARATE WRITING.

* * * * * * * * * * * * For buildings containing fewer than 4 residential units, the Authority requires the same l20-day vacate notice to tenants.

The Virginia Condominium Act requires in Section 55-79.94(b), as amended in 1980, that tenants of all complexes being converted to condominiums be given 120 days' notice to vacate.

TABH (PHA/Section 8 Notification Letter)

MRY-01-2009 03:23 WISE CO HOUS I1"G RVH

Commonwealth Apartments clo Wise County Redevelopment and Housing Authority

107 Litchfield Street Coeburn, VA 24230

April 28, 2009

TO: Wise County redevelopment and Housing Authority 107 Litchfield Street Coeburn, Virginia 24230 Attention: Section 8 or PHA Waiting List Administrator

RE: PROPOSED AFFORDABLE HOUSING DEVELOPMENT

Name of Development: Commonwealth Apartments Name of Owner: Commonwealth Apartments, llC

276 395 5874 P.02/03

I would like to take this opportunity to notify you of a proposed affordable housing development to be completed in your jurisdiction. We are in the process of applying for federal low-income housing tax credits from the Virginia Housing Development Authority (VHDA). We expect to make a representation in that application that we will give leasing preference to households on the local PHA or Section 8 waiting list. Units are expected to be completed and available for occupancy beginning March 2011

The following is a brief description of the proposed development:

Development Address (should correspond to 1.A.2 on page 1 of the Application): 603, 604, 607, 612, 621, 622, 625, 626 A-B, 608 A-D, 615 A-F Commonwealth Ave., Wise, Virginia 24293

Proposed Improvements: (Should correspond with LB & D and liLA of the application)

D New Construction: # Units # Buildings Total Gross Floor Area D Adaptive Reuse: -- # Units -- # Buildings ---- Total Gross Floor Area [gJ Rehabilitation: 26 # Units 10 # Buildings 20,422 . Total Gross Floor Area

Proposed Rents (should correspond with VII.C of the Application):

D Efficiencies: $ I month [gJ 1 Bedroom Units: $ 385 I month ~ 2 Bedroom Units: $ 425 I month D 3 Bedroom Units: $ { month D 4 Bedroom Units: $ I month

MAY-01-2009 03:23 WISE CO HOUSING AVH 276 395 5874 P.03/03

PHA or SEC 8 Notification Letter, continued

Other Descriptive Information (should correspond with information in the application):

We will appreciate your assistance in identifying qualified tenants. If you have any questions about the proposed development, please call me at (xxx) xxx-xxxx. Please acknowledge receipt of this letter by signing below and returning it to me.

Sincerely yours,

Hcrdj ;f .. 4 Representative of Owner/Applicant Title

To be completed by the Local Housing Authority or Sec 8 Administrator:

Seen and Acknowledged By: _~.J.!lL-hL:Uliu<!.j:s..n~, /....K:j..,.J.1?y411!.."ck~l-'f .... I1A ...... )'---__ _

Printed Name: _-,Sh=e~i.=!la~K,,", -!R~i~ck~e"-,t,-,t,,,-s ____________ _

Title: ____ ~S:...e_c_t1:...· o:...n_8'----C~oo_r_d_i_na_t_o_r ___________ _

Phone: ___ --=2.!.C76::..-::..39::.:5:...-6~5:..:::0.:...7 ______ _

Date: May L .2009 ..

NOTE: Any change in this form letter may result in a reduction of points under the scoring system. If you have any questions, please call Jim Chandler at VHDA (804) 343-5786.

TOTAL P.03

TAB I (Local CEO Letter)

P.O. BOX 1100' WISE, VA 24293 • (276) 328-6013 (Voice & TDD)' FAX (276) 328-2519

FROM THE OFFICE OF THE TOWN MANAGER L::::::::I

Jim Chandler Virginia Housing Development Authority 601 South Belvidere Street Richmond, Virginia 23220

VHDA Tracking Number: Development Name: Name of Owner/Applicant:

Dear Mr. Chandler:

February 17, 2009

Jooq -Z-03] Commonwealth Apartments Commonwealth Apartments, LLC

The construction or rehabilitation of the above-named development and the allocation of federal housing tax credits available under IRC Section 42 for said development will help to meet the housing needs and priorities of the Town of Wise. Accordingly, the Town of Wise supports the allocation of federal housing tax credits requested by Commonwealth Apartments, LLC for this development.

Yours truly,

Beverly C. Owens Town Manager

TabJ

Homeownership Plan

Not Applicable

TABK (Site Control Documentation)

AGREEMENT OF PURCHASE AND SALE

THIS AGREEMENT OF PURCHASE AND SALE (this "Agreement"), made and entered as of the r,-tbday of March 2009 (the "Effective Date"), by and between WISE COUNTY REDEVELOPMENT AND HOUSING AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "Seller"), and COMMONWEALTH APARTMENTS, LLC, a Virginia limited liability company, or assigns (the "Purchaser").

RECITALS

A. The Seller is the owner of: (i) those certain tracts or parcels of land (the "Land"), located in the Town of Wise, Wise County, Virginia and more particularly described in Exhibit A attached hereto and by this reference incorporated herein; (ii) all buildings and improvements located on the Land; together with any and all associated construction and building materials located on and related to the building on the Land (the "Improvements"); (iii) any and all rights, benefits, easements and other interests of the Seller appurtenant to the Land and Improvements (the "Appurtenances") and (iv) the personal property more particularly described in the form of Bill of Sale attached hereto as Exhibit B and by this reference incorporated herein ("Personal Property"). The Land, Improvements, Appurtenances and Personal Property are collectively referenced herein as the "Property."

B. The Seller desires to sell and assign the Property to the Purchaser. Subject to and in accordance with the conditions and provisions hereinafter contained, the Purchaser desires to purchase the Property from the Seller.

AGREEMENT

NOW, THEREFORE, in consideration of the Recitals, the mutual agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Seller and the Purchaser agree as follows:

I. Incorporation of Recitals. The above recitals are incorporated into the operative provisions of this Agreement by this reference.

2. Sale of Property. Subject to and in accordance with the terms of this Agreement, the Seller agrees to sell and assign to the Purchaser, and the Purchaser agrees to purchase from the Seller, the Property.

3. Purchase Price; Pavment of Purchase Price. The purchase price to be paid by the Purchaser to the Seller for the Property (the "Purchase Price") shall be Nine Hundred Sixty Thousand and 00/100 Dollars ($960,000.00) cash at closing, subject to customary prorations and adjustments.

4. Closing. The closing of this transaction (the "Closing") shall take place on or before November 6, 2009 or at such later date, if any, as shall be necessary for the Seller to elect and effect a cure of any Title Objections in accordance with Section 10.6 hereof. Such date of the Closing is referred to herein as the "Closing Date." Closing shall occur at the offices of Kanady & Quinn, P.C., 7130 Glen Forest Drive, Suite 120, Richmond, Virginia 23226 or at such other location as may be mutually acceptable to the Seller and the Purchaser.

5. Reports and Inspections. During the period from and including the Effective Date and through 5:00 p.m. EST on the ninetieth (90th

) day after the Effective Date (the "Inspection Period"), the Purchaser and its agents and representatives shall have the right to enter upon the Property for the purpose of performing such examinations and tests, including without limitation soil tests, environmental inspections, structural and roof inspections, determination of future capital needs of the Property, title examination, surveys, and determination of compliance with laws, all as the Purchaser may deem appropriate for determining the feasibility of the Property for the Purchaser's intended use (collectively, the "Inspections"). The Purchaser covenants to repair any damage to the Property caused by such Inspections and to indemnify and hold harmless the Seller from any loss, cost, expense or liability incurred or sustained by the claim of any person made by reason of the Purchaser's activities as permitted pursuant to this Section 5, save and except for any reduction of value of the Property resulting from the discovery of any hazardous or toxic wastes and substances on, or defects to, the Property. The foregoing covenant shall survive any termination of this Agreement. If the Purchaser determines the Property is unacceptable to the Purchaser for any reason, as determined by the Purchaser in its sole and absolute discretion, the Purchaser may terminate this Agreement by giving the Seller written notice of such termination in accordance with the requirements of Section 12.4 prior to the expiration of the Inspection Period. If Purchaser so terminates this Agreement for any reason, Purchaser agrees to furnish Seller with copies of all engineering and environmental reports and studies that Purchaser has had prepared concerning the Property, its status, and its possible uses, including but not limited to any site plans and any Phase I Report. Upon such termination by the Purchaser, the Deposit shall be returned to the Purchaser and neither party hereto shall have a claim against the other under this Agreement, except for any claims of the Seller against the Purchaser under this Section 5.

5.1. Deliveries of Seller. Seller has delivered, or will, within ten (10) days from the Effective Date, deliver to Purchaser the following:

a. Current Tax Assessment; b. Copy of any Deed of Trust encumbering the Property, along with a

copy of any note or bond secured by such Deed of Trust; c. Copies of any environmental, LBP, asbestos or radon studies that

may exist with respect to the Property (regardless of age); d. Copies of any physical inspection reports or engineering studies

for the past three (3) years; and e. Copy of most recent survey of the Property.

6. Condemnation. If prior to Closing the Property is subjected to actual or threatened condemnation or erninent domain proceedings, the Seller will promptly notify the

.In

Purchaser of such event, and the Purchaser shall have the option of either: (i) terminating this Agreement, in which event the Deposit shall be returned to the Purchaser; or (ii) proceeding to Closing, in which event the Seller shall payor assign, as applicable to the Purchaser at Closing all of the proceeds or any right thereto from any such condemnation.

7. Damage or Destruction Prior to Closing. The Seller shall bear the risk of all loss or damage to the Property from all causes through the time of recordation of the Deed (defmed in Section 10.1.1).

8. Representations and Warranties.

8.1 Representations and Warranties of the Seller. In addition to any other covenants, indemnities, warranties and representations made by the Seller herein, the Seller makes and agrees with the Purchaser to the following representations and warranties, all of which are true and correct as to the matters set forth therein as of the date hereof and, except as otherwise disclosed to the Purchaser in writing and agreed to by the Purchaser, shall be true and correct on the Closing Date:

8.1.1 Authority. The Seller has the capacity and authority, and all requisite actions have been taken and approvals obtained by the Seller to fully authorize and empower the Seller to execute this Agreement and consummate the transactions contemplated hereby. The Seller shall furuish to the Purchaser any documents reasonably requested by the Purchaser which evidence the capacity and authority of the Seller (and the signatories acting on behalf of the Seller) to consummate the transactions contemplated hereby. The persons executing this Agreement as Seller are the only persons having any interest in the Property, and no further signatures are required for the Seller to perform its obligations hereunder and convey the Property as set forth herein.

8.1.2 No Conflict. The authorization, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, will not, with or without the giving of notice or passage of time or both: (i) violate, conflict with or result in the breach of any terms or provisions of or require any notice, filing, registration or further consent, approval or authorization under: (w) any statutes, laws, rules or regulations of any governmental body applicable to the Seller, or its properties or assets; or (x) any judgment, decree, writ, injunction, order or award of any arbitrator, court or governmental authority binding upon the Seller or any of its respective properties or assets; or (y) any instrument or agreement to which the Seller or its properties may be bound or relating to or affecting all or any portion of the Property; or (ii) result in any lien, claim, encumbrance or restriction on the proceeds of the sale of all or any portion of the Property or on any of the respective properties or assets of the Seller.

8.1.3 No Property Interests. No person, firm or entity has any rights to acquire or to lease all or any portion of the Property or otherwise to obtain any interest therein and there are no outstanding options, rights of first refusal or negotiation, rights of reverter or rights of first offer relating to all or any portion of the Property or any interest therein in effecL Seller shall not offer the Property for sale to any other person, consider unsolicited offers from any other person

for the purchase of the Property or enter into a contract for the sale of the Property to any other person, unless such contract is contingent on the termination of this Agreement.

8.1.4 No Violations. The Seller has received no notice of, nor does the Seller have any knowledge of, any violations (collectively, "Violations", and individually, a "Violation") of any applicable local, state or federal law, ordinances, regulations, or orders of any federal, state or local government department or agency having jurisdiction over or affecting the Property including, without limitation, building, health and environmental laws, regulations and ordinances, (whether or not officially noted Dr issued) Dr from any tenant. The Seller shall

. provide the Purchaser with notice of any Violations of which the Seller obtains notice or knowledge between the Effective Date and the Closing Date.

8.1.5 No Foreign Person. The Seller is not a foreign person within the meaning of Section 1445 of the Internal Revenue Code, as amended.

8.1.6 No Special Proceedings. There are no pending or, to the knowledge of the Seller, contemplated: (i) annexation Dr condemnation proceedings affecting, or which may affect, all or any portion of the Property; (ii) proceedings to change or redefine the zoning classification applicable to any portion of the Property; or (iii) changes in road patterns or grades which may adversely affect access to any roads providing a means of ingress to or egress from the Property.

8.1.7 Pending Actions or Investigations. There ate no actions, suits, proceedings, claims, orders, decrees or judgments affecting the Property, or any portion thereof, or relating to or arising out of the ownership, management, operation, use or occupancy of the Property or any portion thereof whIch are pending or have been prosecuted for a period of thirty (30) days or more or, to the knowledge of the Seller, are pending Dr have been prosecuted for less than thirty (30) days, in any court Dr by Dr before any federal, state, or local government department, commission, board, bureau Dr agency or other governmental instrnmentality; and, to the knowledge of the Seller, no such actions, suits, proceedings, claims, orders, decrees or judgments have been threatened or asserted. The Seller is not a party to or subject to any judgment, writ, decree, injunction or order enjoining or restraining it from conducting any business in respect of the Property. There are no outstanding unpaid judgments that are liens against the Property. In the event that any action, suit, proceeding, claim, order, decree Dr judgment described in this Section 8.1.7 exists Dr is pending as of the Closing Date, the parties shall deposit into an escrow account with the Escrow Agent at Closing a portion of the Purchase Price sufficient to provide for the timely payment of any and all claims, losses, costs and expenses (including reasonable attorneys' fees) arising in connection therewith, which amount shall be determined by Purchaser in its reasonable discretion.

8.1.8 Environmental. The Seller represents and warrants that, to the best of its knowledge, there are no hazardous or toxic wastes and substances on, about Dr affecting (directly or indirectly) the Property. For the purposes of this Agreement, "hazardous Dr toxic wastes and substances" are defined as those substances, materials, and wastes, including but not limited to, those substances, materials and wastes listed in the United States Department of Transportation Hazardous Materials Table (49 CFR 172.101) O! by the Environmental Protection Agency as hazardous substances (40 CFR Part 302) and amendments thereto, or such substances, materials

.. Lt..... L. '" .

and wastes which are regulated under any applicable local, state or federal law, including, without limitation, any material, waste or substance which is (i) petroleum, (ii) asbestos, (iii) polychlorinated biphenyls, (iv) designated as a Hazardous Substance pursuant to Section 331 of the Clean Water Act, 33 US.C. Sec. 1251, et. seq. (33 U.S.C. 1321) or listed pursuant to Section 307 of the Clean Water Act (33 U.S.C. Sec. 1371) (v) defined as a hazardous waste pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Sec. 6901, et. seq. (42 U.S.C. Sec. 6903) or (vi) defined as hazardous substance pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Sec 9601, et. seq. (42 U.S.C. 9601).

8.1.9 Contracts. There are no contracts of any nature outstanding with respect to the Seller which are not terminable, and Seller sha1l at Closing, terminate any such contracts unless Purchaser affirmatively assumes them. Seller shall not enter into any new Contracts without first obtaining Purchaser's prior written consent.

8.1.1 0 Maintenance and Repairs. Seller, at its sole cost and expense, shall maintain the Property through Closing in the same condition as of the Effective Date, ordinary wear and tear excepted.

8.1.11 Insurance. Seller shall maintain in full force and effect substantially the same public liability and casualty insurance coverage now in effect with respect to the Real Property.

8.1.12 Taxes and Assessments. Seller shall (i) pay in a timely fashion all taxes and other public charges against the Property and (ii) provide Purchaser, within ten (10) business days of receipt, copies of any notices Seller receives with respect to any special assessments or proposed increases in the valuation of the Property. Purchaser shall have the right to contest, in the name of Seller, any proposed increase in the assessment of the Property, provided that Purchaser pays all costs and expenses in connection therewith. Purchaser shall advise Seller in writing prior to the filing of any contest and shall provide Seller copies of all relevant documents in connection with such contest in a timely fashion. Seller shall cooperate with Purchaser in connection with any such contest.

8.1.13 Condemnation Notices. Seller shall provide Purchaser, within ten (10) days of receipt, copies of any notices Seller receives with respect to any condemnation or eminent domain proceedings affecting the Property.

8.1.14 Binding Commitments. Seller shall not make any commitments or representations to any applicable governmental authorities, any adjoining or surrounding property owners, any civic association, any utility or any other person or entity that would in any manner be binding upon Purchaser or the Property, without Purchaser's prior written consent in each instance, which consent Purchaser may withhold in its sole discretion.

8.1.15 Information. In addition to SeHer's other obligations in this Agreement, Seller shall furnish to Purchaser promptly, all information concerning the Property in SeHer's possession that Purchaser may from time to time reasonably request.

8.1.16. Actions Affecting Title. Seller shall not voluntarily grant, create, assume or pennit to exist any mortgage, lien, lease, encumbrance, easement, covenant, condition, rightof-way or restriction upon the Property other than those agreed to by the Purchaser, or voluntarily take or pennit any action adversely affecting the title to the Property as it exists on the date of this Agreement.

8.2 Representations and Warranties of the Purchaser. In addition to any other covenants, indemnities, warranties and representations made· by the Purchaser herein, the Purchaser makes and agrees with the Seller to the following representations and warranties, all of which are true and correct as to the matters set forth therein as of the date hereof, except as otherwise disclosed in writing to the Seller and agreed to by the Seller, shall be true and correct on the Closing Date:

8.2.1 Authoritv. The Purchaser has the capacity and authority, and all requisite actions have been taken and approvals obtained (or will, within a reasonable time hereafter, be taken and obtained) by the Purchaser to fully authorize and empower the Purchaser, to execute this Agreement and consummate the transactions contemplated hereby. The Purchaser shall furnish to the Seller any documents reasonably requested by the Seller which evidence the capacity and authority of the Purchaser (and the signatories acting on behalf of the Purchaser) to consummate the transactions contemplated hereby.

8.2.2 No Conflict. The authorization, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, will not, with or without the giving of notice or passage of time or both: (i) violate, conflict with or result in the breach of any terms or provisions of or require. any notice, filing, registration or further consent, approval or authorization under: (w) the operative documents by which the Purchaser is governed, including without limitation any and all articles of incorporation, partnership agreements, operating agreements, bylaws, resolutions and other instruments or documents; (x) any statutes, laws, rules or regulations of any governmental body applicable to the Seller, or its properties or assets; or (y) any judgment, decree, writ, injunction, order or award of any arbitrator, court or governmental authority binding upon the Purchaser or any of its respective properties or assets; or (z) any instrument or agreement to which the Purchaser or its properties may be bound; or (ii) result in any lien, claim, encumbrance or restriction on the Property or on any of the respective properties or assets of the Purchaser.

83 Effect of Change in Representations. For the period from and including the Effective Date to and through the Closing Date, the Seller and the Purchaser shall each be obligated to advise the other party, as applicable, of any change which renders any representation made by such party in this Agreement untrue or materially misleading. In the event that such notice is delivered from one party to the other, and if such circumstances as are set forth in such notice materially and adversely affect the rights and obligations of the party receiving such notice, the party receiving such notice shall have the option, at its election, to terminate this Agreement, and if so terruinated by the Purchaser, the Deposit shall be returned to the Purchaser, and the parties shall be released from all future obligations and liabilities under this Agreement, except as otherwise expressly set forth in this Agreement. If the circumstances that render a

, .

representation untrue or materially misleading have resulted from the willful acts or gross negligence of the party which gave the representation, then in addition to the termination rights set forth in the previous sentence, the party that receives notice of such change of circumstances shall have all rights available to it at law or in equity for a breach of this Agreement by the party that gave notice of such circumstances, and such rights shall survive the. termination of this Agreement.

9. Conditions Precedent.

9.1 Conditions Precedent to Obligation of the Purchaser. The obligation of the Purchaser to close the purchase of the Property in accordance with this Agreement shall be subject to the fulfillment of the following conditions precedent, the failure of any of which shall entitle the Purchaser either to waive such condition or to terminate this Agreement in accordance with the terms hereof. If Purchaser elects to terminate this Agreement due to the failure of any condition listed herein, Purchaser shall so notify Seller. in writing prior the Closing, in which event, the Deposit shall be returned to the Purchaser, and nether party hereto shall have a claim against the other under this Agreement, except as otherwise expressly set forth in this Agreement. If no such notice is given before the Closing, all conditions set forth herein shall be considered to have been satisfied or waived by Purchaser. Regardless of whether any such conditions are deemed to be so waived, Seller shall not, without the prior written consent of Purchaser, take any action or fail to take any action prior to the Closing that would adversely affect the satisfaction of any of such conditions as of the Closing Date. The conditions are as follows:

9.1.1 Condition of Title. Title to the Property shall be in such a condition as is consistent with the requirements of Section 10.6 hereof, and the Purchaser shall be able to obtaio a title policy, at regular rates, for the Property from a title company as described in Section 10.6 hereof, and containing such usual and customary endorsements as may be reasonably requested by the Purchaser.

9.1.2 Access. All direct access (through permitted curb cuts) to public rights-ofway in effect on the Effective Date shall not have been altered or diminished.

9.1.3 Utilities. The Property shall be served with potable water, public sewer, electricity, natural gas, telephone, cable and other utilities provided to the Property as of the Effective Date without necessity of obtaining easements across property not owned by the Seller.

9.1.4 Environmental Contamination. The Property shall be free of hazardous or toxic wastes and substances.

9.1.5 Zoning. Purchaser shall have obtained satisfactory zoning for the Property.

9.1.6 Tax Credit Reservation. Purchaser shall have received a reservation of 2009 tax credits in an amount satisfactory to the Purchaser in its sole discretion.

10. Closing Mechanics. Should all conditions set forth in Section 9 either be met or be waived by the Purchaser and Seller, as applicable, the following provisions shall govern the Closing:

10.1 The Seller's Obligations at Closing. At or prior to Closing, the Seller shall comply with the following obligations:

10.1.1 Conveyance Deed. The Seller shall deliver to the Purchaser or its designee a good and sufficient general warranty deed with English covenants of title (the "Deed") for the Land, Improvements and Appurtenances, in form for recording, duly executed and acknowledged by the Seller, so as to convey title in such Property free and clear of any matters other than Permitted Exceptions_(as defined in Section 10.6).

10.1.2 Bill of Sale. The Sellet.shall deliver to the Purchaser or its designee a Bill of Sale describing the Personal Property in the form attached as Exhibit B.

10.1.3 Leases, Warranties and Contracts. The Seller shall assign to the Purchaser all of its rights, title and interest in (i) the leases in effect as of the Closing Date, (li) all assignable warranties and guarantees relating to the Property and (iii) such of the written contracts providing for the services relating to the maintenance and operation of the Property as the Purchaser shall require to be assigned and as may be assigned pursuant to their terms without the consent of the other parties thereto. At the Closing, the Seller shall provide the Purchaser with a certified rent roll and the originals of the leases, warranties, guarantees and contracts to be assigned to the Purchaser as described above with the Assignment of Leases and Contracts Form attached hereto as Exhibit C.

10.1.4 Owner's Affidavit. The Seller shall deliver to the Purchaser a standard owner's affidavit sufficient for the Purchaser to obtain title insurance for the Property free from all exceptions other than Permitted Exceptions .

. 10.1.5 Cancellation of Existing Indebtedness. The Seller shall deliver a satisfaction of mortgage, cancellation or reconveyance of deed of trust or partial release, as the case may be, in recordable form and executed by the holder of any existing indebtedness which is secured in whole or in part by all or any portion of the Property, in a form as shall be sufficient to satisfy of record the existing indebtedness with respect to such Property, together with UCC-3 termination statements or other terminations acceptable and effective to release of record the lien of any security interest which may encumber any of such Property.

10.1.6 Possession. The Seller shall vacate the Property and any Improvements thereon, if any, and deliver to the Purchaser exclusive possession of the Property, subject only to the Permitted Exceptions.

10.1.7 Affidavit ofNonforeign the Seller Status. The Seller shall deliver to the Purchaser a certificate or affidavit duly completed and executed by the Seller as required under Treasury Regulation I.1445-2(b)(2)(iii) .

• .... 1 __ .... i .. ,

10.1.8 Other Documents. The Seller shall deliver to the Purchaser such other documents as may reasonably be required to consummate the Closing in accordance with the terms of this Agreement.

10.2 The Purchaser's Obligations at Closing. At Closing, the Purchaser shall payor deliver, or shall cause its designee or assignee to payor deliver, to the Seller, upon delivery of the documents enumerated in Section 10.1, the Purchase Price (adjusted as required for delivery of the Deposit) and such documents as may reasonably be required to consummate the Closing in accordance with the terms of this Agreement.

10.3 Prorations and Adjustments. In addition to any other costs, expenses and fees traditionally prorated between buyers and sellers of real property in the Commonwealth of Virginia, and subject to the terms of this Agreement, the following items shall be adjusted between the Seller and the Purchaser and shall be prorated as of the Closing Date:

10.3.1 Taxes. A proportionate share of any real estate taxes, payments in lieu of real estate taxes, ad valorem and personal property taxes, and any other state, county and municipal taxes, charges and assessments (special or otherwise), on the basis of the calendar or tax year for which the same are levied, imposed or assessed, and regardless of when the same become a lien or are payable. If the rate of any such taxes, charges or assessments shall not be fixed prior to the Closing Date, the adjustment thereof at the Closing shall be upon the basis of the rate for the preceding calendar year applied to the latest assessed valuation (or other basis of valuation).

10.3.2 Charges for Utilities. Prior to Closing, the Purchaser shall pay all deposits necessary to continue water, electricity, gas, heating oil and other utilities applicable to the Property, and the Seller shall be entitled to apply for and receive such deposits as the Seller has paid to such utilities upon the Closing of this Agreement. At the Closing, the Purchaser shall reimburse the Seller for the cost of any heating oil in tanks on the Property at the then current price of heating oil based on the estimated volume in such tanks.

10.3.3 Operating Expenses. Operating expenses of the Development (in addition to taxes to be prorated pursuant to Section 10.3.1) paid by the Seller prior to the Closing Date with respect to any period commencing before and ending after the Closing Date (including, without lirnitation,.payment on any contracts assigned to the Purchaser pursuant to this Purchase Contract) shall be prorated as of the Closing Date.

10.3.4 Rental and Other Income: Security Deposits. Rental income of the Development due and payable by the residents of the units in the Development for the month of the Closing shall be prorated as of the Closing Date based upon the rent roll due and payable as of the first day of such month. Accordingly, the Purchaser shall be entitled to a credit at Closing for the pro rata portion of such rental income from and including the Closing Date through the last day of such month. If rents shall be due but unpaid on the Closing Date, the Seller shall be entitled to receive and collect such rents, and if Purchaser shall· receive any such rents after the Closing Date, the Purchaser shall within five days after such receipt pay such rents to the Seller. At the request of the Seller, the Purchaser shall provide an accounting of all such rents received

_ ... i •. _.. , •. ." ..

by the Purchaser after the Closing Date, together with copies of any records of the Purchaser relating thereto. The foregoing obligations of the Purchaser under this Section shall survive the Closing.

Any other income of the Development due and payable to the Seller prior to the Closing Date with respect to any period commencing before and ending after the Closing Date shall be prorated as of the Closing Date. Accordingly, the Purchaser shall be entitled to a credit at Closing for the pro rata portion of such income from and including the Closing Date through the last day of such period. If payment of such income shall be due but unpaid on the Closing Date, the Seller shall be entitled to receive and collect such income, and if Purchaser shall receive any such income after the Closing Date, the Purchaser shall within five days after such receipt pay such income to the Seller. At the request of the Seller, the Purchaser shall provide an accounting of all such income received by the Purchaser after the Closing Date, together with copies of any records of the Purchaser relating thereto. The foregoing obligations of the Purchaser under this Section shall survive the Closing.

At the Closing, security deposits of the residents (including any interest thereon which is then, or may thereafter become, due the residents under the leases or state law) of the Development shall ~be transferred to the Purchaser.

10.4 Costs. The costs of canceling any existing indebtedness and the costs for the preparation of the Deed and any.other documents delivered by the Seller to the Purchaser at Closing shall be paid by the Seller at Closing. Costs for the reports and inspections under Section 5 hereof, the owner's and lender's policies of title insurance and any special title insurance endorsements, survey, and all recording taxes and fees shall be paid by the Purchaser at Closing. The Seller and the Purchaser shall each pay their respective attorneys' fees.

10.5 Brokers. The Seller shall be responsible for any brokerage commission resulting from this Contract or the sale of the Property. The Seller agrees (to the extent permitted by applicable law) to indemnifY and hold Purchaser harmless from and against any claims for commissions together with any costs and reasonable attorney's fees incurred by Purchaser in defending against such claims. Such indemnification obligations shall survive any termination of this Agreement and the Closing.

10.6 Title. During the Inspection Period, the Purchaser shall obtain from a title company selected by Purchaser a preliminary title commitment for the Property (along with legible copies of all documents creating exceptions thereunder), and the Purchaser shall promptly examine the preliminary title commitment and documents relating thereto. Within the Inspection Period, the Purchaser shall notifY the Seller of any defects in title in such commitment to which the Purchaser objects; provided, however, that the Purchaser shall have no obligation to object to defects relating to deeds of trust, mechanics' liens, judgments or any other defect which may be cured by the application of proceeds of the Purchase Price at Closing ("Lien Defects"); provided further, that in the case of defects which arise after the effective date of the Purchaser's title commitment for the Property ("Post-Commitment Defects") and to which the Purchaser objects, the Purchaser shall notifY the Seller of such objections prior to the Closing (any defect in title to which the Purchaser objects under this Section 10.6 in referred to herein as "Title Objections").

It is the intention of the parties that Lien Defects shall automatically qualify as objections to title, and the Purchaser shall apply all or any portion of the Purchase Price at Closing in the amount necessary to cure Lien Defects. For any Title Objections (other than Lien Defects) wherein the Purchaser has delivered notice to the Seller of the Purchaser's objection thereto, the Seller shall have fIfteen (15) days from the receipt of such notice or notices within which to notify the Purchaser as to whether the Seller elects to cure all or any of such Title Objections raised by the Purchaser. If the Seller does not so notify the Purchaser within such 15 day period, the Seller shall be deemed to have elected not to cure such Title Objections. All exceptions to title which are not Lien Defects and as to which the Purchaser has not objected pursuant to this Section 10.6 shall be deemed "Permitted Exceptions." In the event the Seller has given such notice to the Purchaser electing to cure any Title Objections, the Seller shall be obligated to effect such cure on or before the Closing Date or such later date as shall be necessary to effect such cure, which date shall not be later than sixty (60) days after the date in (i) of Section 4 hereof. In the event the Seller elects not to cure all or any of the Title Objections, or elects to cure but fails to successfully cure any Title Objections prior to Closing, the Purchaser shall have the right, exercisable at any time prior to Closing by giving notice to the Seller, to either: (i) terminate this Agreement and receive a refund of the entire Deposit, in which event, neither party shall have a claim against the other under this Agreement, except as otherwise expressly set forth in this Agreement; or (ii) waive the uncured Title Objections and close under the terms of this Agreement.

11. Miscellaneous Provisions.

ILl Binding Effect. This Agreement and all covenants, terms, conditions, warranties, and undertakings contained herein, and all amendments, modifIcations and extensions hereof, as applicable, shall be binding upon and shall inure to the benefIt of the parties hereto and their respective heirs, executors, administrators, personal representatives, successors and permitted assigns.

11.2 Final Agreement. This Agreement contains the final and entire agreement between the parties, and they shall not be bound by any terms, conditions, statements, warranties or representations, oral or written, not herein contained.

11.3 Amendment. This Agreement shall not be modifIed except by instrument in writing executed by the parties hereto.

11.4 Notices. All notices, demands and request which may be given or which are required to be given by either party to the other must be in writing. All notices, demands and requests by the Purchaser or the Seller shall be sent either by fax, with a copy by certifIed mail, return receipt requested, postage prepaid, or by delivery through a nationally-recognized overnight carrier (the "Carrier") that can provide written proof of delivery, and addressed as follows, or to such other address as a party may specify by du1y given notice:

IF TO SELLER: Wise County Redevelopment And Housing Authority POBox 630

IF TO PURCHASER:

Coeburn, Virginia 24230 Attn: Monty L. Salyer, Executive Director

FAX Number:

Commonwealth Apartments, LLC PO Box 630 Coeburn, Virginia 24230 Attn: Monty L. Salyer, President of Commonwealth Apartments Development Corporation, Managing Member

Fax Number:

Notices, demands and requests, if delivered in the manner aforesaid (unless otherwise specifically provided herein), will be deemed received for all purposes hereunder: (i) if sent by fax, on the date of delivery; and (ii) if sent by overnight carrier, on the date which is the confirmed date of delivery.

11.5 Governing Law. This Agreement shall be governed by, and construed and interpreted under, the laws and judicial decisions of the Commonwealth of Virginia.

11.6 The Purchaser's Default. If (i) any representation and warranty by the Purchaser contained in this Agreement shall not be true and correct as of the closing Date; (ii) any condition to the Seller's obligation to close shall fail to be fulfilled or waived; or (iii) the Purchaser shall be in material default in the performance of any of its covenants or obligations under this Agreement, the sole right of the Seller shall be to recover from Escrow Agent, and the sole liability of the Purchaser or its assignee shall be to pay, liquidated damages equal to the aggregate amount of the Deposit, such amount being fixed as such by reason of the fact that the actual damages to be suffered by the Seller in such event are in their nature uncertain and unascertainable with exactness and because the Purchaser would not have entered into this Agreement unless the Purchaser was exculpated from personal liability as herein provided. The Seller shall not seek or obtain any money or other judgment against the Purchaser or any disclosed or undisclosed officer, commissioner, director or employee of the Purchaser or its assignee, or against the assets or estate of the Purchaser or its assignee or any of the foregoing persons, and the Seller's sole recourse for payment of said amount shall be, with respect to a default of the Purchaser, to the value of the Deposit. Nothing contained in this Section 12.6 shall limit the liability of the Purchaser to the Seller under Section 5 or Section 10.3.4 of this Agreement.

1 I. 7 The Seller's Default. Notwithstanding anything in this Agreement to the contrary, if: (i) any representation and warranty of the Seller contained in this Agreement shall not be true and correct as of the Closing Date; (ii) any condition to the Purchaser's obligation to close shall fail to be fulfilled or waived; or (iii) the Seller shall be in material default in the performance of any of its covenants or obligations under this Agreement, then the Purchaser's remedies prior to the Closing shall be to elect: (x) to terminate this Agreement and thereupon to

. ., L ...

receive a return of the Deposit and to bring an action against the Seller seeking reimbursement for the Purchaser's direct, out-of-pocket reasonable costs, including, but not limited to third party due diligence fees such as inspections, survey, title work, legal fees, appraisal fees and loan fees, provided the amount of such reimbursement shall not exceed the amount of the Deposit; or (y) to bring an action for specific performance to compel the Seller to cure any such material default, breach of warranty or misrepresentation or to fulfill any such condition or perform any such covenant or agreement of the Seller contained in this Agreement to be performed by the Seller on or prior to the Closing Date and, as part of any such action for specific performance, to seek to recover any direct, out-of-pocket reasonable costs incurred by the Purchaser in connection with such specific performance action, provided the amount of such reimbursement shall not exceed the amount of the Deposit; or (z) to expressly waive in writing any such default, breach of warranty or misrepresentation or the nonfulfillment of any such condition or failure of the Seller to perform any such covenant or agreement of the Seller contained in this Agreement to be performed by the Seller on or before the Closing Date. Upon completion of the Closing, the foregoing remedies shall be deemed to be waived by Purchaser.

11.8 Waiver. Failure to insist upon strict compliance with any of the terms, covenants, or conditions hereof will not be deemed a waiver of the term, covenant, or condition, nor will any waiver or relinquishment of any right or power at anyone time or more times be deemed a waiver or relinquishment of the right or power at any other time or times.

11.9. Severability. 1bis Agreement will be construed in its entirety and will not be divisible, except that the invalidity or unenforceability of any provision hereof will in no way affect the validity or enforceability of any other provision.

11.1 0 Time. Time is of the essence in the performance of this Agreement.

11.11 Captions. Captions are nsed in this Agreement for conveuience only and will not be used to interpret this Agreement or any part of it.

11.12 Counterparts. 1bis Agreement may be executed in two or more counterparts and shall be deemed to have become effective when and only when one or more of such counterparts shall have been signed by or on behalf of each of the parties hereto (although it shall not be necessary that any single counterpart be signed by or on behalf of each of the parties hereto, and all such counterparts shall be deemed to constitute but one and the same instmment), and shall have been delivered by each of the parties to each other.

11.13 Facsimile Signatures. Facsimile signatures will be considered original signatures for the purpose of execution and enforcement of the rights delineated in this Agreement.

11.14 [Intentionally Omitted]

12. Execution by the Seller. In the event that Seller does not fully execute and deliver this Agreement to Purchaser before 5:00 p.m. on , 2009, then this Agreement and the

. ,--..... >,

offer to purchase represented hereby shall be null and void and shall have no force and effect, and neither party shall have any rights, obligations or liabilities hereunder.

IN WITNESS WHEREOF, the parties have caused this instrument to be du1y executed, under seal, by authority duly given, as of the date first written above ..

Ii

SELLER:

~SECOUNTYREDEVELOPMENT

AND HOUSING AUTHORITY, Apolitical subdivision of the

Executive Director

PURCHASER:

COMMONWEALTH APARMENTS, LLC A Virginia limited liability company By Commonwealth Apartments Development Corporation, a Virginia Corporation Its Managing Member

By: ~b(2J0k/ Name: Eula Hughes Title: President

Exhibit A

Description of Real Estate


Beginning at a drill hole in sidewalk in the northern R-O-W line of 8tate Route #640 (Hurricane Road) a common comer to Ryan D. Adkins (Inst #990004825) thence with said Adkins two (2) calls N37°31 '28"W208.72' to a point at fence post, thence 861°56'00"W211.59' to an iron pin in line of now or fonnerly William E. Baugh, Jr. Thence with said Baugh and an agreed boundary lines recorded in Deed Book 353, Page 99, three (3) calls N37°18'42"WI26.35' to a 2" pipe in concrete, thence N44°35'03"EI7.20' to an iron pin, thence N34°04'46"WI55.25' to an iron pin in the eastern R-O-W line of 8tate Route #680 (Old Hurricane Road) thence with said Eastern R-O-W lines two (2) calls N21043'57"E130.20' thence N16°30'09"E131.02' to an iron pin, a common comer to Charlie Dean (DB 620, Page 521) thence with said Dean four (4) calls 867°00'05'EI51.62' to an iron pin, thence N25°58'41"E66.00' to a metal rod, thence NI7°00'54"W94.67 to a 16" black oak, thence N05°57'07"W235.14 to an iron pin in line of now or fonnerly William Cox (DB 564, Page 183) thence in part with said Cox, a 0.133 acre parcel and Janice Addington (DB 695, Page 80) 873°19'45"E484.09' (at 78.44' pass thru an iron pin) to a set stone, a common comer to Wendell E. Barnette (lnst. #200300617) thence in part with said Barnette and with Cecil Cantrell, 816°01 '48"W354.13' to an iron pin at fence intersection, thence continuing with said Cantrell two (2) calls 80003'06"E201.17' to an iron pin, thence 811 °35'29"EI58.41' to an iron pin in the Northern R-O-W Line of aforesaid 8tate Route #640, thence with said R-O-W 872°20'41"WI41.08' to the beginning containing 8.024 acres more or less .

. ::IJ.~... .i .• ,

Account

of 1

• SEARCHING o Account Search o Sale Search

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Account: R013499

Location . -----~------- .. --."---.~~."--,,

038 () 062B

WISE- W

Situs Address COMMONWEALTH AVE

Legal Summary 8.024 AC RE-SURVEY E END WISE NR FAIRGROUND ADDN

Transfers

Tax History

200804204

422-730

298-377

Tax Year Taxes

2009

2008

$0.00

No Tax Values

http://www.wise-assessor,orgfassessor/taxweb/account.jsp?acco ...

Owner Information

Owner Name WISE COUNTY REDEVELOPMENT & HOUSING AUTHORITY

Owner Address PO BOX 630 COEBURN, VA 24230-0630

Images

• Photo • Sketch

• GIS

Sale Date

10/17/2008

Assessment Historv - ----~."-'"~-~-" -~'"'"-."."--.-.

Actual (2009)

Primary

$925,800

$925.800 Tax Area: W Tax Rate: 0.0057

Type Actual Assessed Acres --.. ---~".--.... ---- -.~-~,"

Improvement $725,200 $725,200

Land $200,600 $200,600 8.024

Sale Price

$180.000

$0

$0

5/7/09 6:28 PM

TABL (Plan of Development Certification Letter)

P.O. BOX 1100' WISE, VA 24293' (276) 328-6013 (Voice & TOO) • FAX (276) 328-2519

FROM THE OFFICE OF THE TOWN MANAGER

TO: Virginia Housing Development Authority 601 South Belvidere Street Richmond, Virginia 23220 Attention: Jim Chandler

RE: PLAN OF DEVELOPMENT CERTIFICATION

Name of Development: Commonwealth Apartments Name of Owner/Applicant: Commonwealth Apartments, LLC Name of Seller/Current Owner: Wise County Redevelopment and Housing Authority

The above-referenced Owner/Applicant has asked this office to complete this form letter regarding the site plan of the proposed Development (more fully described below). This certification is rendered solely for the purpose of confirming the status of plan of development or site plan approval of the Development. It is understood that this letter will be used by the Virginia Housing Development Authority solely for the purpose of determining whether the Development qualifies for points available under VHDA's Qualified Allocation Plan for housing tax credits.

DEVELOPMENT DESCRIPTION: (To be provided by the Owner)

Development Address (should correspond to LA.2 on page 1 of the application): 603,604,607,612,621,622,625,626 A-B,608 A-D, and 615 A-F Commonwealth Avenue

Legal Description (should correspond to the site control document in the application): Please see attached

Plan of Development Number:

Proposed Improvements (should correspond with LB & D and lILA of the application):

D New Construction: D Adaptive Reuse: [gJ Rehabilitation:

___ # Units

-=-:--_ # Units 26 # Units

___ # Buildings # Buildings # Buildings 10

____ Total Gross Floor Area Total Gross Floor Area

-2=-0=-,4"""2=-- Total Gross Floor Area 2

Other Descriptive Information: (Should correspond with information in the application) Property will be acquired by applicant from WCRHA. All units will be renovated Including all major systems. Renovations will provide energy efficiency improve-Ments and accessibility improvements.

, , PLAN OF DEVELOPMENT CERTIFICATION, continued

LOCAL CERTIFICATION: (To be completed by the appropriate local official)

Check one of the following as appropriate:

D The proposed development described above has an approved final plan of development or site plan (as applicable to the site). No further plan of development or site plan approval is required before issuance of a building permit.

The proposed development is an existing development with proposed renovations and no additional plan of development approval is needed.

The above plan of development approval is in effect until:

Printed Name: :£:::>eve .... \'-'1 C. 0 WevlS \

Title: 0 w- (\ tvta VlCl '1 P~

Phone: __ -,,~=."--,-,~,--_-=3:::.d-_~_-_-=6:.,--O.::.-.:.I-=3=-___ _

Date: ____ D_d--__ /_1_7--t.J_~_d7___'_ ____ _




Beginning at a drill hole in sidewalk in the northern R-O-W line of State Route #640 (Hurricane Road) a common corner to Ryan D. Adkins (Inst #990004825) thence with said Adkins two (2) calls N37°31 '28"W208.n' to a point at fence post, thence S61 °56'00"W21 1.59' to an iron pin in line of now or formerly William E. Baugh, Jr. Thence with said Baugh and an agreed boundary lines recorded in Deed Book 353, Page 99, three (3) calls N37°18'42"WI26.35' to a 2" pipe in concrete, thence N44°35'03"EI7.20' to an iron pin, thence N34°04'46"WI55.25' to an iron pin in the eastern R-O-W line of State Route #680 (Old Hurricane Road) thence with said Eastern R-O-W lines two (2) calls N21°43'57"E130.20' thence NI6°30'09"EI31.02' to an iron pin, a common corner to Charlie Dean (DB 620, Page 521) thence with said Dean four (4) calls S67°00'05'E151.62' to an iron pin, thence N25°58'41"E66.00' to a metal rod, thence NITOO'54"W94.67 to a 16" black oak, thence N05°57'07"W235.14 to an iron pin in line of now or formerly William Cox (DB 564, Page 183) thence in part with said Cox, a 0.133 acre parcel and Janice Addington (DB 695, Page 80) S73°19'45"E484.09' (at 78.44' pass thru an iron pin) to a set stone, a common corner to Wendell E. Barnette (Inst. #200300617) thence in part with said Barnette and with Cecil Cantrell, SI6°01'48"W354.l3' to an iron pin at fence intersection, thence continuing with said Cantrell two (2) calls Soo03 '06"E20 1.17' to an iron pin, thence S 11 °35'29"EI58.41' to an iron pin in the Northern R-O-W Line of aforesaid State Route #640, thence with said R-O-W Sn020'41"WI41.08' to the beginning containing 8.024 acres more or less, as shown on the plat prepared for Gladeville Housing Authority, Ltd., by Joseph F. Barger, CLS 1177, dated March 1, 2007, attached to and recorded with the deed, in the Clerk's Office, Circuit Court, Wise County, Virginia in Instrument No. 200804204

TOGETHER WITH the use of any and all easements, rights of ways, roadways, water rights, pipeline rights, sewer systems including any field lines attached thereto, in existence and which lawfully may be used by Grantors, whether by express grant, prescriptive use or otherwise, and which are appurtenant to and part of the use and enjoyment of this particular tract ofland.

SUBJECT TO any and all existing reservations, easements, conditions, exceptions, restrictions and/or adverse conveyances as the same may lawfully affect the above described property.

TOGETHER WITH all buildings, improvements, fixtures, appliances and/or easements, now or hereafter attaGhed to or used in connection with the property herein described.


TABM (Zoning Certification Letter)

P.O. BOX 1100' WISE, VA24293' (276) 328-6013 (Voice & TOO) • FAX (276) 328-2519

FROM THE OFFICE OF THE TOWN MANAGER

Zoning Certification

TO: Virginia Housing Development Authority 601 South Belvidere Street Richmond, Virginia 23220 Attention: Jim Chandler

RE: ZONING CERTIFICATION

Name of Development: Commonwealth Apartments Name of Owner/Applicant: Commonwealth Apartments, LLC Name of Seller/Current Owner: Wise County Redevelopment and Housing Authority

The above-referenced Owner/Applicant has asked this office to complete this form letter regarding the zoning of the proposed Development (more fully described below). This certification is rendered solely for the purpose of confirming proper zoning for the site of the Development. It is understood that this letter will be used by the Virginia Housing Development Authority solely for the purpose of determining whether the Development qualifies for points available under VHDA's Qualified Allocation Plan for housing tax credits.

DEVELOPMENT DESCRIPTION: (To be provided by the Owner)

Development Address: (Should correspond to LA.2 on page I of the application) 603,604,607,612,621.622,625,626 A-B, 608 A-D, and 615 A-F Commonwealth Ave, Wise, VA 24293

Legal Description (should correspond to the site control document in the application): Please see attached

Proposed Improvements (should correspond with LB & D and lILA of the application):

D New Construction: D Adaptive Reuse: [8J Rehabilitation: 26

# Units # Units # Units

___ # Buildings -:-::--_ # Buildings

10 # Buildings

Total Gross Floor Area Total Gross Floor Area

-::-:-:-::--2042 Total Gross Floor Area 2

ZONING CERTIFICATION, Page Two

Current Zoning: R-B Medium Density Residence District allowing a density of 20 units per acre, and the following other applicable conditions:

Zoning is proper only if the property on which the development is or will be located complies with existing zoning requirements; provided, however, that if the zoning is not residential with an "R" designation, zoning will not be deemed to be proper, unless the chief executive officer of the locality certifies, on behalf of such locality, approves the request of the above-referenced Owner/Applicant to such locality that the zoning be deemed to be proper for the sole purpose of awarding points under the Qualified Allocation Plan, notwithstanding that the zoning for the property does not have an "R" designation.

Other Descriptive Information: (Should correspond with information in the application)

LOCAL CERTIFICATION: (To be completed by the appropriate local official or Civil Engineer)

Check one of the following as appropriate:

D The zoning for the proposed development described above is proper and currently is an "R" zoning designation or a special use permit has been issued. To the best of my knowledge, there are presently no zoning violations outstanding on this property. No further zoning approvals and/or special use permits are required.

The development described above is an approved non-conforming use in an "R" zoning designation. To the best of my knowledge, there are presently no zoning violations outstanding on this property. No further zoning approvals and/or special use permits are required.

D There are no zoning requirements currently applicable to the site described above.

(Signa~ (Printed Name)

(Title of Local Official or Civil Engineer)

Phone:

Date:

ZONING CERTIFICATION, Page Three

To be completed only by Chief Executive Officer (applicable only if zoning does not have "R" designation):

o The zoning for the proposed development does not have an "R" designation, however, the chief executive officer of the locality certifies in the space provided below that he/she has, on behalf of such locality, approved the request of the above-referenced Owner/Applicant to such locality that the zoning be deemed to be proper for the sole purpose of awarding points under the Qualified Allocation Plan.

The undersigned, who is the chief executive officer of the City/County of Virginia, hereby certifies that he/she has, on behalf of such locality,

approved the request of the above-referenced Owner/Applicant to such locality that the zoning be deemed proper for the sole purpose of awarding points under the Qualified Allocation Plan, notwithstanding that the zoning for the property does not have an "R" designation.

(Signature)

(Printed Name)

(Title of Chief Executive Officer)

Date:

NOTE TO LOCALITY: 1. Return this certification to the developer for inclusion in the tax credit application package. 2. Any change in this form may result in a reduction of points under the scoring system. If you have

any questions, please call Jim Chandler at VHDA (804) 343-5786.

NOTE TO DEVELOPER: You are strongly encouraged to submit this certification to the appropriate local official at least three weeks in advance of the application deadline to ensure adequate time for review and approval.




Beginning at a drill hole in sidewalk in the northern R-O-W line of State Route #640 (Hurricane Road) a common corner to Ryan D. Adkins (Inst #990004825) thence with said Adkins two (2) calls N37°31'28"W208.72' to a point at fence post, thence S61°56'00"W21 1.59' to an iron pin in line of now or formerly William E. Baugh, Jr. Thence with said Baugh and an agreed boundary lines recorded in Deed Book 353, Page 99, three (3) calls N37°18'42"WI26.35' to a 2" pipe in concrete, thence N44°35'03"EI7.20' to an iron pin, thence N34°04'46"WI55.25' to an iron pin in the eastern R-O-W line of State Route #680 (Old Hurricane Road) thence with said Eastern R-O-W lines two (2) calls N21 °43'57"EJ30.20' thence NI6°30'09"E131.02' to an iron pin, a common corner to Charlie Dean (DB 620, Page 521) thence with said Dean four (4) calls S67°00'05'EI51.62' to an iron pin, thence N25°58'41"E66.00' to a metal rod, thence NI7°00'54"W94.67 to a 16" black oak, thence N05°57'07"W235.14 to an iron pin in line of now or formerly William Cox (DB 564, Page 183) thence in part with said Cox, a 0.133 acre parcel and Janice Addington (DB 695, Page 80) S73°19'45"E484.09' (at 78.44' pass thru an iron pin) to a set stone, a common corner to Wendell E. Barnette (Inst. #200300617) thence in part with said Barnette arid with Cecil Cantrell, S 16°01' 48"W354.13' to an iron pin at fence intersection, thence continuing with said Cantrell two (2) calls Soo03'06"E201.l7' to an iron pin, thence SII°35'29"EI58.41' to an iron pin in the Northern R-O-W Line of aforesaid State Route #640, thence with said R-O-W S72°20'41"WI41.08' to the beginning containing 8.024 acres more or less, as shown on the plat prepared for Gladeville Housing Authority, Ltd., by Joseph F. Barger, CLS 1177, dated March I, 2007, attached to and recorded with the deed, in the Clerk's Office, Circuit Court, Wise County, Virginia in Instrument No. 200804204

TOGETHER WITH the use of any and all easements, rights of ways, roadways, water rights, pipeline rights, sewer systems including any field lines attached thereto, in existence and which lawfully may be used by Grantors, whether by express grant, prescriptive use or otherwise, and which are appurtenant to and part of the use and enjoyment of this particular tract of/and.

SUBJECT TO any and all existing reservations, easements, conditions, exceptions, restrictions and/or adverse conveyances as the same may lawfully affect the above described property.

TOGETHER WITH all buildings, improvements, fixtures, appliances and/or easements, now or hereafter attached to or used in connection with the property herein described.


TABN (Copies of 8609's To Certify Developer Experience)

Low-lncome Housing Credit Allocation Certification

OMBNo.l54S0988

~dh~"~~~~ __ ~~~~~~~~~~~~~~~~~~~~~~ ______ JL ____ ~;;;;~~ __ ~ 8586,--

Allocation of Credit· Completed by Housing Credit Agency Only

o Amended Fonn

B N<Ine and address d I\CNsing aedi! agency A Address ct building (do not usa P. O. box)(see iIs1rucIions) Broad Street and 4~ Avenue St. Paul, VA 24283

Virginia Housing Development Authority 601 S. Belvidere Street

C Name. address. and TIN ofblJilding ownerreeeiving alIocaIIon Stonebriar, L.P. P. O. Box 630 Coeburn, VA 24230

TIN • 54-1804894

VA 23220-6504 o ~ iden1iflca1lon numberof agency

54-0921892

E Buicfll1!J idenlilica1ion number (BIN) VA9549001

1a Dateota//ocation ~ 12/22/95 b Maximumhousingcedi!doIl,nmountailowable ......... .

2 Maximum applicable cedi! percentage allowable . . . • . . . . . . . . . . . . . . . . . . • • . . . • • . . . . . . .

3a Maximum quafrlied basis . • • • • . . • • . • • . . . • • . . . . • . . . . • • . . . . • . . • • . . . . . . . . . . .

b Checi here • 0 if the eligible basis used in the computation of line 3a was irxreased under the high- cost <ell provisioos of section 42(d)(5J(C). Enter !he percentage to which the eligible basis was

1b $ 2,804

ina-eased (see instructions) . . • . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %

4 5

6

Pertentage of !he aggregate basis financed by tax-exempt bonds. (If zero, enter· 0-.) ................ . . . ~ 12/1/97

Date bw1mng placed In seMQ!. • • • • • • • • • • • • • • • • • • • • • • • • . • • • • • • •

Check !he box tIIat desaibes tile allocation for tile building (check one only): a 0 Newly constructed and federally subsidized b 0 Newfy tonS1ructed and not federally subsidized c I2l Existing building d 0 Sec. 42(E) rehabili!ation expenditures federally subsidized e 0 Sec. 42(E) rehabilitation expenditures not federally subsidized

Under pef13ities d pe!jury, I dedan! 1I1at!he a/Ioca1ion made is il axnp4iance wiIh !he requilements of section 42 01 tile Intema/ Revenue COOe. and 1I1at I have examined Part I of 1his I:xm and 10 !he best d rrrr belief, !he ill:xma1ion is true. ccmct and CIlI1'4liete.

JAMES M. CHANDLER ~ AUTHORIZED OFFICER ----~~~~W~~ase~~~~~pnn~·7Q--------

First·Year Certification· Completed by Building Owner for First Year of Credit Period Only

7a Date building placed in seIVice • ~ I I I '-\'1 b Errgible basis of building (see instructions) 7b '1(...403 8a Original qualified basis 01 !he building at dose 01 first year 01 cedi! period .......•..•.............. 8a '1 c.., 4021 b Is !he building part of a multiple building project? ...•••.......•.•...•..•....•........... 0 Yes ®

9a ff box Sa a box 6d is dlecked, do you elect to reduce eligible basis under section (42{i){2){B)? .•.............. 0 Yes 0 b Do you elect to reduce eligible basis by dispropoc1ionate costs of non-Jow.income units (section 42(d){3))? ......... . 0 Yes 0

10 Checi!he appropriate box for each election:

a Beet 10 begin cedi! period !he first year after tile building is placed in seI'Iice (moo 42(Q{l)) •.............. .3 Yes 0 b 8ed no( to treat large patnership as taxpayer{sectfon 42{jX5)) ...•..•...•.....•.•.......•..... 0 Yes

No

No

No

No

c 8ed minimum set-aside requirement (sectioo 42(g)){see instrudions) 0 2Q..5O 8 ~ 0 25-80 (N.Y.C. only)

d 8eet cieep..rent-skewed ~ (section 142)d){4XB)){see instructions) .•...•..•••.•.•....•....... 0 15-40

Note: A separate Schedule A (Form 8609), Annual Statement, for each building must be attached to the corresponding F0f1l78609 for each year of the f5-year compliance period.

Caution: Read II1e instructions under Sfgnafurl1 (page 4) befom signing this part Under pef13ities d pe!jwy, I dec1an11I1at!he above bujJd'rng continues to qualify as a P!I of. qualified IcJw.Inccme housing project and mee!S t>e requRments of Internal Revenue Code section 42 and 1ha11he quaified basis of !he building has • 0 has not • JlII decreased for1his lax year. I have exaJMed 1his tam and allachmems, and to the best 01 my knaMedge and beief,1hey ate true. CCIIed. and canplete.

~ ----------~S~9~MWm~-------------

Name (please Iype Of prmj

Taxpayer idenlilicatiOir number .----::-:--_.---

Date

_8609 (1140. "-ry 2000)

Low-Income Housing Credit Allocation Certification

Allocation of Credit· Completed by Housing Credit Agency Only

B _and_ofhoulIngClldft_

Or.e No. 15454988

A AddIossofbulldlng(donotuseP.O.box)(seoi1slM:llons) 100 Don Whitehead Drive Building D Appalachia, VA 24216

Virginia Housing Development Authority 601 S. Belvidere Street

C _, _,and TIN of building -1\lOIIiWlIJ-' Inman Village, L.P. P.O. Box 630 Coeburn, VA 24230

11N • 54-1995317

D ~_,numberofagency 54-0921892

E Buidi1g _ nwnber (BIN)

VAOOOll03

I' Date 0/ allOCatIon. _ :~~~:'_O~ _. b Maximum housing aadK dollar amount a11a«ab1e.

2 Maximum applicable aadK peroentage allowable • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

3a Maximum qualified basis • • • • • • • • • • • • • . • • . •••••••••••••••••••••••• "

b Check heI8 • 0 ff the eligible basis used In the computation 0/ line 3a was increased under the high- cost 8/98 provisions of section 42(d)(5XC). EnIet'the percentage III which the eligible basis was Increased (see ins1ructions) .................................. .

4 Pertentage of the aggregate basis finanGed by Iax-exempt bonds. (If zero, enIet' .1)..) ••••..••.

5 Datebuildlngplacedlnservice. ••• • • •• • • • • • • • • • • • • • • .. • _:::~~~ ___ • 6 Check the box that descnbes the a11oc:a1ion for the building (checI< one only):

lb $ 14,327

, 0 Newly ccns1rucIed and federally subsidized b 0 Newly consIrUCted and nat federally subsidized c 181 ExIsting building d 0 Sec. 42(e) rehabilitation expencfrtures federally subsidized • 0 Sec. 42(e) IIlhabirrtalion expendoores nat federally subsid'lZed

Under penalties ofpelJuy,l declare IlialIIIe _ made is In compIance willi IIIe II!qUIrements of_ 42 ofllle lnIIimai Revenue Code, and IhaII hIM! examined Part I oflllis loom and In IIIe best of my and _,1IIe /n!annaIiOn is 1rUe, _and compIeIe.

• JAMES M. CHANDLER

AUTHORIZED OFFICER .• ----- Na.iie"'(pi.as,,~.rPit'ili ---- ------.

• 3-28-03$ . - - - - -1iiiS -. - - - --

Flrst·Year Certification - Completed by Building Owner for First Year of Credit Period Only

7, Date building placed In service • __ ! __ -'- _ _ _ b Er'llible basis of building (see InsbucIions)

Sa Original qualified basis of the building at close of filS! year of credK period • • • • • • • • • • • • • • • •

b Ale you IIIlafing this building as part of a multiple building project for purposes of section 42 (see ins1Juctions)? .•••.•...•••.•.••••.••••.•••.•..•...••••..••..••.•• o Ves 0 No

9 , W box 6a or box 6d is checked, do you elect Illillduce eligible basis under section (42(i)(2)(B)? •••••••• OVes ONo b Do you elect ID lIlduce eligible basis by disproportionate cosls 0/ non-/aW~ncome una (section 42(d)(3))? Oves ONo

10 Check the appropriate box for each election:

• Elect ID begin aadK period the filS! year after the building Is placed In service (section 42(1)(1)) ••••••••• o Ves 0 No b Elect nat ID Iraat large partnership as taxpayer (section 42(j)(5)) ••••••••••••••••••••••••• o Ves c Elect minimum set-aside recpremenl (section 42(g))(see ins1Juctions) 0 21).50 0 ~ o ~ (N.V.C. only)

d Elect deep-IIlnt-6i<ewed project (section 142)dX4)(B))(see ins1ruclions) •••••••••••••••••••• o 15-40 Noto: A s.p.rat. Sch.dul. A (Form .fO'J, Annual Stat.m.nt, for .. ch building must be attachad to the corresponding Fonn8609 for each year of the 15-yesr compliance period.

Caution: Read the inslruclions under Slgnatul8 (page 4) befol8 signing this part. Under penalties of p&ljwy, I declaillthat the above building continues ID qualify as a part of a qualified Iow-income housing project and meeIs the lIlquilllmenls of Internal Revenue Code section 42 and that the quafified basis of the building has • [J has not • [J d8Clll8Sed for this lax year. I have examined this form end attachmenls, and ID the best of my knowledge and belief, they 818M, correct. and complate .

• -----------~n~-------------- • - - --- - 5aie- - - - - --

--------~~~~-~--------

For I'IptlWor1! Reduclkin Act NoUce, ... pag.4. Cal. No. 63981U Fonn 8609 (1140. 1·2000)

TabQ

Documentation of Rental Assistance and Utility Allowance

WISE: COUNTY RE:DE:lJE:LOPME:NT AND HOUSING AUTHORITY

107 Litchfield Street, NW • P.O. Box 630 • COEBURN, VIRGINIA 24230 Telephone: (276) 395·6104 • FAX (276) 395·5874 • email: [email protected]

May 12,2009

James Chandler LlHTC Program Director Virginia Housing Development Authority 601 S. Belvidere Street Richmond, VA 23220·6500

Dear Mr. Chandler:

The Wise County Redevelopment and Housing Authority administers the Section 8 Housing Choice Voucher Program for Wise County Virginia. The Commonwealth Apartments project is consistent with the objectives of the Housing Choice Voucher Program. The program's objective is to provide housing assistance to the low and very low income populace that will provide them the opportunity to live in affordable housing of their choice and to promote upward mobility and selfsutTiciency.

To this end we will provide project-based vouchers to all 26 units at the property for the entire compliance period.

If you have questions or need additional information, please do not hesitate to call. We look fOJward to beginning this exciting project.

Si2c.L-A?~ ~t:~I~

Executive Director

eaUAL HOUSING OPPORTUNITY

RPR-06-2009 23:39 WISE CO HOUSING AVH 275 395 5874

Wise County Redevelopment And Housing Authority

Utility Allowance Estimates

FY2008 E f" ~ ec.:-r'-v e. /t) I J / 0 ~

VA 24.1, Clinchview

1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom

Electricity (Kwh) 43.00 52.00 62.00 84.00 95.00 Water/Sewer 20.00 27.00 39.00 49.00 56.00

Total $ 63.00 $ 79.00 $ 101.00 $133.00 $ 153.00

VA 24.2, Ridgeview

1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom

Electricity (Kwh) 42.00 59.00 70.00 81.00 Water/Sewer 34.00 42.00 54.00 64.00 Tot;;>1 $ 76.00 $101.00 $124.00 $ 145.00

VA 24-2, Monte Vista

1 Bedroom :I Bedroom 3 Bedroom

Electricity (Kwh) 42.00 59.00 70.00

Water/Sewer 37.00 46.00 61.00

. Total $ 79.00 $105.00 $ 131.00

VA 24-4, Litchfield Manor

1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom

Electricily (Kwh) 43.00 52.00 59.00 83.00 93.00

. Water/Sewer 36.00 39.00 53.00 65.00 76.00

Total $ 79.00 $ 91.00 $ 112.00 $146.00 $169.00

VA 24-5, Appalachian Tower

1 Bectroom Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

E;leclricity (Kwh) 729 681 626 515 435 405 403 403 422 494 608 714

GIOldaviHe Apartments

* 1 Bedroom 2 Bedroom

ElectriCity (Kwh) 60.00 71.00 Water/Sewer 19.00 25.00 TOlal $ 79.00 $ 96.00

. I,f, .. '

P.02/03

Av9

536

TABR (Documentation of Operating Budget)

TABS (Documentation of Project Budget)

\ccount

)f 1

• SEARCHING o Account Search o Sale Search

e Change User Profile • View Created Report(s) o Help? • Logout jefmicha

Account: R013499

Location

0380062B

WISE- W

Situs Address COMMONWEALTH AVE

Legal Summary 8.024 AC RE-SURVEY E END WISE NR FAIRGROUND ADDN

1)'ansfers

Tax Historv

200804204

:!:R22.Q

~

13x Year Thxes

2009 $0.00 2008 No Tax Values

http://www.wise-assessor,org/assessor/taxweb/account.jsp?aceo ...

Owner Information

Owner Name WISE COUNTY REDEVELOPMENT & HOUSING AUTHORITY

Owner Address PO BOX 630 COEBURN, VA 24230-0630

Images

o Photo • Sketch • GIS

Sale Date

1011712008

Assessment History

Actual (2009) $925,800

Primary $925,800 Tax Area: W Tax Rate: 0.0057

Type Actual Assessed Acres

Improvement $725,200 $725,200

Land $200,600 $200,600 8.024

Sale Price

$180.000

$0

$0

517109 6:28 PM

Commonwealth Apartments Renovations One Bedroom Unit Cost Estimate Wise, Virginia Page 1 of 22

April 2009

Ref. Building System Description Quan. Unit Unit Cost Demolition Renovation Totals

1 Doors and Hardware Demo Exist Storm Doors 2 ea $ 10.00 $ 20 Demo Exist Doors 9 ea $ 10.00 $ 90 Demo Exist Pocket Door 1 ea $ 10.00 $ 10 Demo Exist Shutters (kitchen-dining) 1 ea $ 5.00 $ 5 Replace Exterior Doors / HOW 2 ea $ 400.00 $ 800 Replace Interior Doors / HOW 2 ea $ 300.00 $ 600 New Swinging Closet Doors - (Pairs) 5 ea $ 500.00 $ 2,500 New Hollow Metal Door Frames 5 ea $ 175.00 $ 875 Misc Framing for Closet Doors 1 Is $ 50.00 $ 50 Subtotal $ 4,950

2 Replace Windows Demo Exist Window Units 3 ea $ 50.00 $ 150 Replace Bedroom Window Unit 1 ea $ 1,000.00 $ 1,000 Replace Living/Dining Window Unit 1 ea $ 1,250.00 $ 1,250 Replace Sidelight at Entry Door 1 ea $ 250.00 $ 250 New Mini-Blinds @ all Windows 75 sf $ 5.50 $ 413 Subtotal $ 3,063

3 Furr and GWB Exist CMU Wall New 1 x Furring 295 sf $ 1.00 $ 295 NewGWB 295 sf $ 1.00 $ 295 Subtotal $ 590

4 Painting Prep and Paint Exist Ceilings 625 sf $ 0.75 $ 469 Prep and Paint Exist Walls 2175 sf $ 0.50 $ 1,088 Subtotal $ 1,556

5 Hardwood Flooring Sand and Prep Exist Hardwood 365 sf $ 1.50 $ 548 Re-finish Exist Hardwood 365 sf $ 3.00 $ 1,095 Subtotal $ 1,643

6 Sheet Vinyl Flooring Demo Exist Sheet Vinyl 265 sf $ 0.50 $ 133 Replace Sheet Vinyl 265 sf $ 3.50 $ 928 Subtotal $ 1,060

7 Closet Shelving Demo Exist Shelving 1 Is $ 20.00 $ 20 Replace Closet Selving 1 Is $ 200.00 $ 200 Subtotal $ 220


April 2009


8 Kitchens Demo Exist Kitchen Cabinets 1 Is $ 150.00 $ 150 Demo Exist Sink 1 ea $ 50.00 $ 50 Demo Exist Range Hood / Ductwork' 1 ea $ 75.00 $ 75 Replace Base Cabinets / Countertop 16 If $ 210.00 $ 3,360 Replace Kitchen Wall Cabinets 11 If $ 125.00 $ 1.375 New Pantry Cabinet 1 ea $ 750.00 $ 750 Reconfigure Refrigerator & Corridor 1 Is $ 100.00 $ 100 Reconfigure Range & Sink Locations 1 Is $ 100.00 $ 100 Replace Sink & Faucet 1 ea $ 500.00 $ 500 Replace Range Hood / Ductwork ea $ 300.00 $ 300 Subtotal $ 6,760

9 Appliances Demo Exist Range / Refrigerator 1 Is $ 50.00 $ 50 Replace Range (front controls) 1 ea $ 500.00 $ 500 Replace Refrigerator (14 cf) 1 ea $ 650.00 $ 650 New 24" Dishwasher 1 ea $ 450.00 $ 450 Subtotal $ 1,650

10 Bathrooms Demo Exist Floor Down to Joists 40 sf $ 1.50 $ 60 Demo Exist Wall f Ceiling to Studs 250 sf $ 0.50 $ 125 Demo Exist Bathtubs 1 ea $ 100.00 $ 100 Demo Exist Water Closets 1 ea $ 50.00 $ 50 Demo Exist Lavatories 1 ea $ 50.00 $ 50 Demo Exist Heat f Vent flight 1 ea $ 10.00 $ 10 Replace Plywood Subfloor 40 sf $ 2.00 $ 80 Replace Plywood Underlayment 40 sf $ 1.25 $ 50 Replace Sheet Vinyl Flooring 40 sf $ 3.50 $ 140 Replace Rubber Base 25 If $ 2.00 $ 50 New GWB Ceilings 40 sf $ 1.50 $ 60 New GWB Walls 210 sf $ 1.00 $ 210 Replace Bathtubs & Surrounds 1 ea $ 800.00 $ 800 Replace Water Closets 1 ea $ 400.00 $ 400 Replace Lavatories 1 ea $ 400.00 $ 400 Replace Vanity Cabinets 1 ea $ 250.00 $ 250 Replace Heat f Vent flight 1 ea $ 150.00 $ 150 New Light Over Vanity 1 ea $ 75.00 $ 75 Subtotal $ 3,060

11 Water Heaters Demo Exist Water Heaters 1 ea $ 50.00 $ 50 Replace Water Heaters (eriergy star) 1 ea $ 550.00 $ 550 Subtotal $ 600

12 Install Washer Box / Drain Pan 1 ea $ 150.00 $ 150 $ 150


April 2009


13 New HV AC Units (14 Seer) Demo Exist Baseboard Heat 1 Is $ 50.00 $ 50 Disconnect Exist Ceiling Heat 1 Is $ 20.00 $ 20 New Heat Pump System 1 ea $ 5,500.00 $ 5,500 New Ductwork 1 Is $ 1,000.00 $ 1,000 New Electrical Circuits 2 ea $ 375.00 $ 750 New Furred Ceiling & GWB 105 sf $ 3.00 $ 315 New Concrete Pad for Outdoor Unit 10 sf $ 5.00 $ 50 Subtotal $ 7,685

14 Electrical Wiring Devices Demo Exist Light Switches 10 ea $ 5.00 $ 50 Demo Exist Power Receptacles 16 ea $ 5.00 $ 80 Demo Telephone Outlets 2 ea $ 5.00 $ 10 Replace Light Switches 10 ea $ 15.00 $ 150 Replace Interior Power Receptacles 14 ea $ 15.00 $ 210 Replace Exterior Power Receptacles 2 ea $ 30.00 $ 60 Replace Telephone Outlets 2 ea $ 15.00 $ 30 New Cable TV Outlets 2 ea $ 15.00 $ 30 Subtotal $ 620

15 Light Fixtures Demo Existing Light Fixtures 10 ea $ 5.00 $ 50 Replace Interior Light Fixtures 8 ea $ 75.00 $ 600 Replace Exterior Light Fixtures 2 ea $ 125.00 $ 250 Subtotal $ 900

16 Smoke Detectors Demo Existing Smoke Detectors 1 ea $ 5.00 $ 5 New hard Wired Smoke Detectors 2 ea $ 50.00 $ 100 New Electrical Circuit & Breaker 1 ea $ 150.00 $ 150 Subtotal $ 255

17 Covered Seating Area Misc Demo for New Roof 1 Is $ 250.00 $ 250 New Roof System Over Entrance 100 sf $ 10.00 $ 1,000 Exterior Bench at Covered Area 1 ea $ 250.00 $ 250 Subtotal $ 1,500

18 Water Piping Demo Exist Water Piping 130 If $ 2.00 $ 260 Replace Water Piping / Insulation 130 If $ 15.00 $ 1,950 Valves / Connections 1 Is $ 300.00 $ 300 Subtotal $ 2,510

One Bedroom Unit Totals Demolition Renovation Total Cost

$ 5,332.50 $ 33,438.75 $ 38,771.25

Commonwealth Apartments Renovations Two Bedroom Unit Cost Estimate Wise, Virginia Page 4 of 22

April 2009


1 Doors and Hardware Demo Exist Storm Doors 2 ea $ 10.00 $ 20 Demo Exist Doors 10 ea $ 10.00 $ 100 Demo Exist Pocket Door 1 ea $ 10.00 $ 10 Demo Exist Shutters (kitchen-dining) 1 ea $ 5.00 $ 5 Replace Exterior Doors / HOW 2 ea $ 400.00 $ 800 Replace Interior Doors / HOW 3 ea $ 300.00 $ 900 New Swinging Closet Doors - (Pairs) 5 ea $ 500.00 $ 2,500 New Hollow Metal Door Frames 5 ea $ 175.00 $ 875 Misc Fram ing for Closet Doors 1 Is $ 50.00 $ 50 Subtotal $ 5,260

2 Replace Windows Demo Exist Window Units 5 ea $ 50.00 $ 250 Replace Bedroom Window Unit 2 ea $ 1,000.00 $ 2,000 Replace Living/Dining Window Unit 2 ea $ 1,250.00 $ 2,500 Replace Sidelight at Entry Door 1 ea $ 250.00 $ 250 New Mini-Blinds @ all Windows 145 sf $ 5.50 $ 798 Subtotal $ 5,798


4 Painting Prep and Paint Exist Ceilings 760 sf $ 0.75 $ 570 Prep and Paint Exist Walls 2560 sf $ 0.50 $ 1,280 Subtotal $ 1,850

5 Hardwood Flooring Sand and Prep Exist Hardwood 495 sf $ 1.50 $ 743 Re-finish Exist Hardwood 495 sf $ 3.00 $ 1,485 SUbtotal $ 2,228


7 Closet Shelving Demo Exist Shelving 1 Is $ 20.00 $ 20 Replace Closet Selving 1 Is $ 250.00 $ 250 SUbtotal $ 270


April 2009


8 Kitchens Demo Exist Kitchen Cabinets 1 Is $ 150.00 $ 150 Demo Exist Sink 1 ea $ 50.00 $ 50 Demo Exist Range Hood / Ductwork 1 ea $ 75.00 $ 75 Replace Base Cabinets/Countertops 14 If $ 210.00 $ 2,940 Replace Kitchen Wall Cabinets 13 If $ 125.00 $ 1,625 New Pantry Cabinet 1 ea $ 750.00 $ 750 Reconfigure Refrigerator & Corridor 1 Is $ 100.00 $ 100 Reconfigure Range & Sink Locations 1 Is $ 100.00 $ 100 Replace Sink & Faucet 1 ea $ 500.00 $ 500 Replace Range Hood / Ductwork 1 ea $ 300.00 $ 300 Subtotal $ 6,590

9 Appliances Demo Exist Range / Refrigerator 1 Is $ 50.00 $ 50 Replace Range (front controls) 1 ea $ 500.00 $ 500 Replace Refrigerator (14 cf) 1 ea $ 650.00 $ 650 New 24" Dishwasher 1 ea $ 450.00 $ 450 SUbtotal $ 1,650

10 Bathrooms Demo Exist Floor Down to Joists 40 sf $ 1.50 $ 60 Demo Exist Wall / Ceiling to Studs 250 sf $ 0.50 $ 125 Demo Exist Bathtubs 1 ea $ 100.00 $ 100 Demo Exist Water Closets 1 ea $ 50.00 $ 50 Demo Exist Lavatories 1 ea $ 50.00 $ 50 Demo Exist Heat / Vent / Light 1 ea $ 10.00 $ 10 Replace Plywood Subfloor 40 sf $ 2.00 $ 80 Replace Plywood Underlayment 40 sf $ 1.25 $ 50 Replace Sheet Vinyl Flooring 40 sf $ 3.50 $ 140 Replace Rubber Base 25 If $ 2.00 $ 50 New GWB Ceilings 40 sf $ 1.50 $ 60 New GWBWalis 210 sf $ 1.00 $ 210 Replace Bathtubs & Surrounds 1 ea $ 800.00 $ 800 Replace Water Closets 1 ea $ 400.00 $ 400 Replace Lavatories 1 ea $ 400.00 $ 400 Replace Vanity Cabinets 1 ea $ 250.00 $ 250 Replace Heat / Vent / Light 1 ea $ 150.00 $ 150 New Light Over Vanity 1 ea $ 75.00 $ 75 Subtotal $ 3,060

11 Water Heaters Demo Exist Water Heaters 1 ea $ 50.00 $ 50 Replace Water Heaters (energy star) 1 ea $ 550.00 $ 550 Subtotal $ 600

12 Install Washer Box I Drain Pan 1 ea $ 150.00 $ 150 $ 150


April 2009


13 New HVAC Units (14 Seer) Demo Exist Baseboard Heat 1 Is $ 50.00 $ 50 Disconnect Exist Ceiling Heat 1 Is $ 20.00 $ 20 New Heat Pump System 1 ea $ 6,000.00 $ 6,000 New Ductwork 1 Is $ 1,250.00 $ 1,250 New Electrical Circuits 2 ea $ 375.00 $ 750 New Furred Ceiling & GWB 110 sf $ 3.00 $ 330 New Concrete Pad for Outdoor Unit 10 sf $ 5.00 $ 50 Subtotal $ 8,450


15 Light Fixtures Demo Existing Light Fixtures 12 ea $ 5.00 $ 60 Replace Interior Light Fixtures 10 ea $ 75.00 $ 750 Replace Exterior Light Fixtures 2 ea $ 125.00 $ 250 Subtotal $ 1,060

16 Smoke Detectors Demo Existing Smoke Detectors 1 ea $ 5.00 $ 5 New hard Wired Smoke Detectors 3 ea $ 50.00 $ 150 New Electrical Circuit & Breaker 1 ea $ 150.00 $ 150 Subtotal $ 305

17 Covered Seating Area Misc Demo for New Roof 1 Is $ 250.00 $ 250 New Roof System Over Entrance 100 sf $ 10.00 $ 1,000 Exterior Bench at Covered Area 1 ea $ 250.00 $ 250 Subtotal $ 1,500

18 Water Piping Demo Exist Water Piping 130 If $ 2.00 $ 260 Replace Water Piping / Insulation 130 If $ 15.00 $ 1,950 Valves / Connections 1 Is $ 300.00 $ 300 Subtotal $ 2,510

Two Bedroom Unit Totals Demolition Renovation Total Cost

$ 5,057.50 $ 38,622.50 $ 43,680.00

Commonwealth Apartments Renovations Handicap Accessible Unit Cost Estimate Wise, Virginia Page 7 of 22

April 2009


1 Doors and Hardware Demo Exist Storm Doors 2 ea $ 10.00 $ 20 Demo Exist Doors 10 ea $ 10.00 $ 100 Demo Exist Pocket Door 1 ea $ 10.00 $ 10 Demo Exist Shutters (kitchen-dining) 1 ea $ 5.00 $ 5 Replace Exterior Doors / HDW 2 ea $ 400.00 $ 800 Replace Interior Doors / HDW 3 ea $ 300.00 $ 900 New Swinging Closet Doors - (Pairs) 5 ea $ 500.00 $ 2,500 New Hollow Metal Door Frames 8 ea $ 175.00 $ 1,400 Misc Fram ing for Closet Doors 1 Is $ 50.00 $ 50 Subtotal $ 5,785

2 Replace Windows Demo Exist Window Units 5 ea $ 50.00 $ 250 Replace Bedroom Window Units 2 ea $ 1,000.00 $ 2,000 Replace Living/Dining Window Units 2 ea $ 1,250.00 $ 2,500 Replace Sidelight at Entry Door 1 ea $ 250.00 $ 250 New Mini-Blinds @ all Windows 145 sf $ 5.50 $ 798 Subtotal $ 5,798


4 Painting Prep and Paint Exist Ceilings 785 sf $ 0.75 $ 589 Prep and Paint Exist Walls 2700 sf $ 0.50 $ 1,350 SUbtotal $ 1,939

5 Hardwood Flooring Sand and Prep Exist Hardwood 495 sf $ 1.50 $ 743 Re-finish Exist Hardwood 495 sf $ 3.00 $ 1,485 Subtotal $ 2,228


7 Closet Shelving Demo Exist Shelving 1 Is $ 20.00 $ 20 Replace Closet Selving 1 Is $ 250.00 $ 250 Subtotal $ 270


April 2009


8 Kitchens Demo Exist Kitchen Cabinets 1 Is $ 150.00 $ 150 Demo Exist Sink 1 ea $ 50.00 $ 50 Demo Exist Range Hood I Ductwork 1 ea $ 75.00 $ 75 Replace Kitchen Cabinets/Countertop 14 If $ 210.00 $ 2,940 Replace Kitchen Wall Cabinets 13 If $ 125.00 $ 1,625 Reconfigure Refrigerator Space 1 Is $ 100.00 $ 100 Reconfigure Range & Sink Locations 1 Is $ 100.00 $ 100 Replace Sink & Faucet 1 ea $ 500.00 $ 500 Replace Range Hood I Ductwork 1 ea $ 300.00 $ 300 Subtotal $ 5,840

9 Appliances Demo Exist Range I Refrigerator 1 Is $ 50.00 $ 50 Replace Range (front controls) 1 ea $ 500.00 $ 500 Replace Refrigerator (14 cf) 1 ea $ 650.00 $ 650 New 24" Dishwasher 1 ea $ 450.00 $ 450 SUbtotal $ 1,650

10 Bathrooms Demo Exist Floor Down to Joists 75 sf $ 1.50 $ 113 Demo Exist Wall I Ceiling to Studs 340 sf $ 0.50 $ 170 Demo Exist Bathtubs 1 ea $ 100.00 $ 100 Demo Exist Water Closets 1 ea $ 50.00 $ 50 Demo Exist Lavatories 1 ea $ 50.00 $ 50 Demo Exist Heat I Vent I Light 1 ea $ 10.00 $ 10 Replace Plywood Subfloor 75 sf $ 2.00 $ 150 Replace Plywood Underlayment 75 sf $ 1.25 $ 94 Replace Sheet Vinyl Flooring 75 sf $ 3.50 $ 263 Replace Rubber Base 35 If $ 2.00 $ 70 New GWB Ceilings 75 sf $ 1.50 $ 113 New GWB Walls 265 sf $ 1.00 $ 265 Replace Bathtubs & Surrounds 1 ea $ 1,000.00 $ 1,000 New Grab Bars at Tub 1 Is $ 300.00 $ 300 Replace Water Closets 1 ea $ 400.00 $ 400 New Grab Bars at Water Closet 1 Is $ 200.00 $ 200 Replace Lavatories 1 ea $ 400.00 $ 400 Replace H/C Vanity Cabinets 1 ea $ 250.00 $ 250 Replace Heat I Vent I Light ea $ 150.00 $ 150 New Light Over Vanity ea $ 75.00 $ 75 Subtotal $ 4,221

11 Water Heaters Demo Exist Water Heaters 1 ea $ 50.00 $ 50 Replace Water Heaters (energy star) 1 ea $ 550.00 $ 550 Subtotal $ 600

12 Install Washer Box I Drain Pan 1 ea $ 150.00 $ 150 $ 150


April 2009


13 New HVAC Units (14 Seer) Demo Exist Baseboard Heat 1 Is $ 50.00 $ 50 Disconnect Exist Ceiling Heat 1 Is $ 20.00 $ 20 New Heat Pump System 1 ea $ 6,000.00 $ 6,000 New Ductwork 1 Is $ 1,250.00 $ 1,250 New Electrical Circuits 2 ea $ 375.00 $ 750 New Furred Ceiling & GWB 125 sl $ 3.00 $ 375 New Concrete Pad lor Outdoor Unit 10 sl $ 5.00 $ 50 Subtotal $ 8,495


15 Light Fixtures Demo Existing Light Fixtures 12 ea $ 5.00 $ 60 Replace Interior Light Fixtures 10 ea $ 75.00 $ 750 Replace Exterior Light Fixtures 2 ea $ 125.00 $ 250 Subtotal $ 1,060

16 Smoke Detectors Demo Existing Smoke Detectors 1 ea $ 5.00 $ 5 New hard Wired Smoke Detectors 3 ea $ 50.00 $ 150 New Electrical Circuit & Breaker ea $ 150.00 $ 150 Subtotal $ 305

17 Covered Seating Area Misc Demo lor New Rool 1 Is $ 250.00 $ 250 New Rool System Over Entrance 100 sf $ 10.00 $ 1,000 Exterior Bench at Covered Area 1 ea $ 250.00 $ 250 Subtotal $ 1,500

18 Water Piping Demo Exist Water Piping 130 II $ 2.00 $ 260 Replace Water Piping !Insulation 130 II $ 15.00 $ 1,950 Valves! Connections 1 Is $ 300.00 $ 300 Subtotal $ 2,510


April 2009

Ret. Building System Description Quan. Unit Unit Cost Demolition Renovation Totals

HIC Handicap Accessible Modifications Demo Portion of Exterior Wall 120 sf $ 2.00 $ 240 Demo Portions of Interior Walls 200 sf $ 1.00 $ 200

New Interior Wall Construction 240 sf $ 7.00 $ 1,680

New Footing at Addition 24 If $ 30.00 $ 720 New Foundation Wall at Addition 120 sf $ 15.00 $ 1,800 New Exterior Wall at Addition 200 sf $ 17.00 $ 3,400 New Floor Framing at Addition 60 sf $ 5.00 $ 300 New Floor Sheathing at Addition 60 sf $ 2.00 $ 120 New Floor Underlayment at Addition 60 sf $ 1.25 $ 75 New Roof System at Addition 100 sf $ 10.00 $ 1,000 Subtotal $ 9,535

Handicap Accessible Unit Totals Demolition Renovation Total Cost

$ 5,595.00 $ 48,690.00 $ 54,285.00

Commonwealth Apartments Renovations Building Cost Estimates Wise, Virginia Page 11 of 22

April 2009


603 Building 603 - (2) 2BR Two Bedroom Unit· Demolition 2 ea $ 5,057.50 $ 10,115 Two Bedroom Unit· Renovation 2 ea $ 38,622.50 $ 77,245

Demo Exist Crawlspace Vents 8 ea $ 5.00 $ 40 Replace Crawlspace Vents 8 ea $ 30.00 $ 240 Demo Exist Crawlspace Access 2 ea $ 10.00 $ 20 Replace Crawlspace Access 2 ea $ 100.00 $ 200 New R·30 Insulation in Attic 1620 sf $ 1.25 $ 2,025 New R-19 Insulation in Crawlspace 1620 sf $ 1.00 $ 1,620 New Vapor Barrier in Crawlspace 1620 sf $ 0.15 $ 243

Demo Exist Shingle Roof System 2300 sf $ 0.25 $ 575 Demo Selective Roof Sheathing 230 sf $ 0.75 $ 173 Replace Selective Roof Sheathing 230 sf $ 1.50 $ 345 Replace 30# Roof Felts 2150 sf $ 0.15 $ 323 Replace Ice & Water Shield 150 sf $ 0.85 $ 128 Replace Drip Edge 250 If $ 2.00 $ 500 Replace Roof Shingles 2300 sf $ 2.40 $ 5,520 Replace Ridge Vent 50 If $ 5.00 $ 250 Replace Exhaust Vents 6 ea $ 50.00 $ 300 Replace Vent Pipe Boots 2 ea $ 25.00 $ 50

Demo Gutter and Downspout 150 If $ 0.50 $ 75 Replace Gutter and Downspout 150 If $ 5.00 $ 750

Demo Exterior Soffits / Ceilings 500 sf $ 0.50 $ 250 Replace Soffits / Ceilings with Vinyl 500 sf $ 4.00 $ 2,000 Replace Damaged Portions of Trim 1 Is $ 50.00 $ 50 Clad Existing Wood Trim 250 If $ 2.50 $ 625

Demo Exist Wood Deck and Railing 120 sf $ 2.00 $ 240 Replace Wood Deck and Stair 120 sf $ 10.00 $ 1,200 Replace Wood Deck Railing 30 If $ 15.00 $ 450 Demo Exist Wood Siding 200 sf $ 0.50 $ 100 Replace Wood Siding with Vinyl 200 sf $ 3.50 $ 700

Building 603 Totals Demolition Renovation Total Cost

$ 11,587.50 $ 94,763.00 $106,350.50


April 2009


604 Building 604 - 2BR 12BRHC Two Bedroom Unit - Demolition 1 ea $ 5,057.50 $ 5,058 Two Bedroom Unit - Renovation 1 ea $ 38,622.50 $ 38,623 Two Bedroom Unit HIC - Demolition 1 ea $ 5,595.00 $ 5,595 Two Bedroom Unit HIC - Renovation 1 ea $ 48,690.00 $ 48,690

Demo Exist Crawlspace Vents 8 ea $ 5.00 $ 40 Replace Crawlspace Vents 8 ea $ 30.00 $ 240 Demo Exist Crawlspace Access 2 ea $ 10.00 $ 20 Replace Crawlspace Access 2 ea $ 100.00 $ 200 New R-30 Insulation in Attic 1620 sl $ 1.25 $ 2,025 New R-19 Insulation in Crawlspace 1620 sl $ 1.00 $ 1,620 New Vapor Barrier in Crawlspace 1620 sl $ 0.15 $ 243

Demo Exist Shingle Rool System 2300 sl $ 0.25 $ 575 Demo Selective Rool Sheathing 230 sl $ 0.75 $ 173 Replace Selective Rool Sheathing 230 sl $ 1.50 $ 345 Replace 30# Rool Felts 2150 sf $ 0.15 $ 323 Replace Ice & Water Shield 150 sf $ 0.85 $ 128 Replace Drip Edge 250 If $ 1.50 $ 375 Replace Roof Shingles 2300 sl $ 2.25 $ 5,175 Replace Ridge Vent 50 II $ 5.00 $ 250 Replace Exhaust Vents 6 ea $ 50.00 $ 300 Replace Vent Pipe Boots 2 ea $ 25.00 $ 50


Demo Exterior Soffits I Ceilings 500 sl $ 0.50 $ 250 Replace Soffits I Ceilings with Vinyl 500 sl $ 4.00 $ 2,000 Replace Damaged Portions of Trim 1 Is $ 50.00 $ 50 Clad Existing Wood Trim 250 II $ 2.50 $ 625

Demo Exist Wood Deck and Railing 120 sf $ 2.00 $ 240 Replace Wood Deck and Stair 120 sl $ 10.00 $ 1,200 Replace Wood Deck Railing 30 If $ 15.00 $ 450 Demo Exist Wood Siding 200 sl $ 0.50 $ 100 Replace Wood Siding with Vinyl 200 sl $ 3.50 $ 700


$ 12,125.00 $ 104,360.50 $ 116,485.50


April 2009


607 Building 607 - (2) 2BR Two Bedroom Unit - Demolition 2 ea $ 5,057.50 $ 10,115 Two Bedroom Unit - Renovation 2 ea $ 38,622.50 $ 77,245

Demo Exist Crawlspace Vents 8 ea $ 5.00 $ 40 Replace Crawlspace Vents 8 ea $ 30.00 $ 240 Demo Exist Crawlspace Access 2 ea $ 10.00 $ 20 Replace Crawlspace Access 2 ea $ 100.00 $ 200 New R-30 Insulation in Attic 1620 sf $ 1.25 $ 2,025 New R-19 Insulation in Crawlspace 1620 sf $ 1.00 $ 1,620 New Vapor Barrier in Crawlspace 1620 sf $ 0.15 $ 243






$ 11,587.50 $ 94,293.00 $ 105,880.50

Commonwealth Apartments Renovations Wise, Virginia

Ref. Building System Description

608 Building 608 - (4) 1 BR One Bedroom Unit - Demolition One Bedroom Unit - Renovation

Demo Exist Crawlspace Vents Replace Crawlspace Vents Demo Exist Crawlspace Access Replace Crawlspace Access New R-30 Insulation in Attic New R-19 Insulation in Crawlspace New Vapor Barrier in Crawlspace

Demo Exist Shingle Rool System Demo Selective Rool Sheathing Replace Selective Rool Sheathing Replace 30# Rool Felts Replace Ice & Water Shield Replace Drip Edge Replace Rool Shingles Replace Ridge Vent Replace Exhaust Vents Replace Vent Pipe Boots

Demo Gutter and Downspout Replace Gutter and Downspout

Demo Exterior Soffits / Ceilings Replace Soffits / Ceilings with Vinyl Replace Damaged Portions 01 Trim Clad Existing Wood Trim

Demo Exist Wood Deck and Railing Replace Wood Deck and Stair Replace Wood Deck Railing Demo Exist Wood Siding Replace Wood Siding with Vinyl

Demo Exist Wood Screens Replace Wood Screens

Building 608 Totals

Quan.

4 4

16 16 4 4

2700 2700 2700

3700 370 370

3150 550 270 3700

85 12 4

250 250

700 700

1 270

120 120 30 200 200

6 6

Unit

ea $ ea $

ea $ ea $ ea $ ea $ sl $ sl $ sl $

sl $ sl $ sl $ sl $ sl $ II $ sl $ II $

ea $ ea $

II $ II $

sl $ sl $ Is $ II $

sl $ sl $ II $ sl $ sl $

II $ II $

Unit Cost Demolition

5,333 $ 33,439

5.00 $ 30.00 10.00 $

100.00 1.25 1.00 0.15

0.25 $ 0.75 $ 1.50 0.15 0.85 1.50 2.25 5.00

50.00 25.00

0.50 $ 5.00

0.50 $ 4.00

50.00 2.50

2.00 $ 10.00 15.00

0.50 $ 3.50

10.00 $ 50.00

21,330

80

40

925 278

125

350

240

100

60

Building Cost Estimates Page 14 of 22

April 2009

Renovation Totals

$ 133,755

$ 480

$ 400 $ 3,375 $ 2,700 $ 405

$ 555 $ 473 $ 468 $ 405 $ 8,325 $ 425 $ 600 $ 100

$ 1,250

$ 2,800 $ 50 $ 675

$ 1,200 $ 450

$ 700

$ 300

Demolition Renovation Total Cost

$ 23,527.50 $ 159,890.00 $ 183,417.50



612 Building 612 - 2BR 12BRHC Two Bedroom Unit - Demolition Two Bedroom Unit - Renovation Two Bedroom Unit HIC - Demolition Two Bedroom Unit HIC - Renovation

Demo Exist Crawlspace Vents Replace Crawlspace Vents Demo Exist Crawlspace Access Replace Crawlspace Access New R-30 Insulation in Attic New R-19 Insulation in Crawlspace New Vapor Barrier in Crawlspace

Demo Exist Shingle Roof System Demo Selective Roof Sheathing Replace Selective Roof Sheathing Replace 30# Roof Felts Replace Ice & Water Shield Replace Drip Edge Replace Roof Shingles Replace Ridge Vent Replace Exhaust Vents Replace Vent Pipe Boots

Demo Gutter and Downspout Replace Gutter and Downspout

Demo Exterior Soffits / Ceilings Replace Soffits / Ceilings with Vinyl Replace Damaged Portions of Trim Clad Existing Wood Trim

Demo Exist Wood Deck and Railing Replace Wood Deck and Stair Replace Wood Deck Railing Demo Exist Wood Siding Replace Wood Siding with Vinyl

Repair Brick Crack Remove Tree

Building 612 Totals

Quan.

1 1 1

8 8 2 2

1620 1620 1620

2300 230 230

2150 150 250 2300

50 6 2

150 150

500 500

1 250

120 120 30

200 200

1 1

Unit

ea $ ea $ ea $ ea $

ea $ ea $ ea $ ea $ sf $ sf $ sf $

sf $ sf $ sf $ sf $ sf $ If $ sf $ If $

ea $ ea $

If $ If $

sf $ sf $ Is $ If $

sf $ sf $ If $ sf $ sf $

Is $ Is $

Unit Cost Demolition

5,058 $ 38,623

5,595 $ 48,690

5.00 $ 30.00 10.00 $

100.00 1.25 1.00 0.15

0.25 $ 0.75 $ 1.50 0.15 0.85 1.50 2.25 5.00

50.00 25.00

0.50 $ 5.00

0.50 $ 4.00

50.00 2.50

2.00 $ 10.00 15.00 0.50 $ 3.50

1,000.00 100.00 $

5,058

5,595

40

20

575 173

75

250

240

100

100

Building Cost Estimates Page 15 of 22

April 2009

Renovation Totals

$ 38,623

$ 48,690

$ 240

$ 200 $ 2,025 $ 1,620 $ 243

$ 345 $ 323 $ 128 $ 375 $ 5,175 $ 250 $ 300 $ 50

$ 750

$ 2,000 $ 50 $ 625

$ 1,200 $ 450

$ 700

$ 1,000

Demolition Renovation Total Cost

$ 12,225.00 $ 105,360.50 $ 117,585.50


April 2009


615 Building 615 - (6) 1BR One Bedroom Unit - Demolition 6 ea $ 5,333 $ 31,995 One Bedroom Unit - Renovation 6 ea $ 33,439 $ 200,633


Demo Exist Shingle Roof System 5500 sf $ 0.25 $ 1,375 Demo Selective Roof Sheathing 550 sf $ 0.75 $ 413 Replace Selective Roof Sheathing 550 sf $ 1.50 $ 825 Replace 30# Roof Felts 4700 sf $ 0.15 $ 705 Replace Ice & Water Shield 800 sf $ 0.85 $ 680 Replace Drip Edge 300 If $ 1.50 $ 450 Replace Roof Shingles 5500 sf $ 2.25 $ 12,375 Replace Ridge Vent 125 If $ 5.00 $ 625 Replace Exhaust Vents 12 ea $ 50.00 $ 600 Replace Vent Pipe Boots 6 ea $ 25.00 $ 150

Demo Gutter and Downspout 350 If $ 0.50 $ 175 Replace Gutter and Downspout 350 If $ 5.00 $ 1,750

Demo Exterior Soffits I Ceilings 850 sf $ 0.50 $ 425 Replace Soffits I Ceilings with Vinyl 850 sf $ 4.00 $ 3,400 Replace Damaged Portions of Trim 1 Is $ 50.00 $ 50 Clad Existing Wood Trim 300 If $ 2.50 $ 750

Demo Exist Wood Privacy Screen 50 If $ 10.00 $ 500 Replace Wood Privacy Screen 50 If $ 50.00 $ 2,500

Demo Railing at Concrete Stair 80 If $ 5.00 $ 400 Replace Railing at Concrete Stair 89 If $ 22.50 $ 2,003 Demo Exist Wood Siding 200 sf $ 0.50 $ 100 Replace Wood Siding with Vinyl 200 sf $ 3.50 $ 700

Demo Porch & Stairs at A & BIC 425 sf $ 5.00 $ 2,125 Replace Porch & Stairs at A & BIC 425 sf $ 15.00 $ 6,375


$ 37,647.50 $ 245,370.00 $ 283,017.50


April 2009


621 Building 621 - (2) 2BR Two Bedroom Unit - Demolition 2 ea $ 5,058 $ 10,115 Two Bedroom Unit - Renovation 2 ea $ 38,623 $ 77,245


Demo Exist Shingle Roof System 2300 sf $ 0.25 $ 575 Demo Selective Roof Sheathing 2300 sf $ 0.75 $ 1,725 Replace Selective Roof Sheathing 230. sf $ 1.50 $ 345 Replace 30# Roof Felts 2150 sf $ 0.15 $ 323 Replace Ice & Water Shield 150 sf $ 0.85 $ 128 Replace Drip Edge 250 If $ 1.50 $ 375 Replace Roof Shingles 2300 sf $ 2.25 $ 5,175 Replace Ridge Vent 50 If $ 5.00 $ 250 Replace Exhaust Vents 6 ea $ 50.00 $ 300 Replace Vent Pipe Boots 2 ea $ 25.00 $ 50



Demo Exist Wood Deck and Railing 120 sf $ 2.00 $ 240 Replace Wood Deck and Stair 120 sf $ 10.00 $ 1,200. Replace Wood Deck Railing 30 If $ 15.00 $ 450 Demo Exist Wood Siding 200 sf $ 0.50 $ 100 Replace Wood Siding with Vinyl 200 sf $ 3.50 $ 700


$ 13,040.00 $ 94,393.00 $ 107,433.00


April 2009



Demo Exist Crawlspace Vents 8 ea $ 5.00 $ 40 Replace Crawlspace Vents 8 ea $ 30.00 $ 240 Demo Exist Crawlspace Access 2 ea $ 10.00 $ 20 Replace Crawlspace Access 2 ea $ 100.00 $ 200 New R-30 Insulation in Attic 1620 sl $ 1.25 $ 2,025 New R-19 Insulation in Crawlspace 1620 sl $ 1.00 $ 1,620 New Vapor Barrier in Crawlspace 1620 sl $ 0.15 $ 243

Demo Exist Shingle Rool System 2300 sl $ 0.25 $ 575 Demo Selective Rool Sheathing 230 sf $ 0.75 $ 173 Replace Selective Rool Sheathing 230 sl $ 1.50 $ 345 Replace 30# Rool Felts 2150 sl $ 0.15 $ 323 Replace Ice & Water Shield 150 sl $ 0.85 $ 128 Replace Drip Edge 250 II $ 1.50 $ 375 Replace Rool Shingles 2300 sl $ 2.25 $ 5,175 Replace Ridge Vent 50 II $ 5.00 $ 250 Replace Exhaust Vents 6 ea $ 50.00 $ 300 Replace Vent Pipe Boots 2 ea $ 25.00 $ 50

Demo Gutter and Downspout 150 II $ 0.50 $ 75 Replace Gutter and Downspout 150 II $ 5.00 $ 750

Demo Exterior Soffits I Ceilings 500 sf $ 0.50 $ 250 Replace Soffits I Ceilings with Vinyl 500 sf $ 4.00 $ 2,000 Replace Damaged Portions of Trim 1 Is $ 50.00 $ 50 Clad Existing Wood Trim 250 II $ 2.50 $ 625

Demo Exist Wood Deck and Railing 120 sl $ 2.00 $ 240 Replace Wood Deck and Stair 120 sl $ 10.00 $ 1,200 Replace Wood Deck Railing 30 If $ 15.00 $ 450 Demo Exist Wood Siding 200 sf $ 0.50 $ 100 Replace Wood Siding with Vinyl 200 sf $ 3.50 $ 700


$ 11,487.50 $ 94,393.00 $105,880.50


April 2009






Demo Exterior Soffits f Ceilings 500 sf $ 0.50 $ 250 Replace Soffits f Ceilings with Vinyl 500 sf $ 4.00 $ 2,000 Replace Damaged Portions of Trim 1 Is $ 50.00 $ 50 Clad Existing Wood Trim 250 If $ 2.50 $ 625



$ 11,487.50 $ 94,393.00 $ 105,880.50


April 2009


626 Building 626 - 2BR 12BRHC Two Bedroom Unit - Demolition 1 ea $ 5,058 $ 5,058 Two Bedroom Unit - Renovation 1 ea $ 38,623 $ 38,623 Two Bedroom Unit HIC - Demolition 1 ea $ 5,595 $ 5,595 Two Bedroom Unit HIC - Renovation ea $ 48,690 $ 48,690




Demo Exterior Soffits I Ceilings 500 sf $ 0.50 $ 250 Replace Soffits I Ceilings with Vinyl 500 sf $ 4.00 $ 2,000 Replace Damaged Portions of Trim 1 Is $ 50.00 $ 50 Clad Existing Wood Trim 250 If $ 2.50 $ 625

Demo Exist Wood Deck and Railing 120 sf $ 2.00 $ 240 . Replace Wood Deck and Stair 120 sf $ 10.00 $ 1,200 Replace Wood Deck Railing 30 If $ 15.00 $ 450 Demo Exist Wood Siding 200 sf $ 0.50 $ 100 Replace Wood Siding with Vinyl 200 sf $ 3.50 $ 700


$ 12,125.00 $ 104,360.50 $ 116,485.50

Commonwealth Apartments Renovations Sitework Cost Estimate Wise, Virginia Page 21 of 22

April 2009


1 Repave Existing Drives and Road 2,622 sy $ 6.00 $ 15,732 $ 15,732 (Wearing Course Only)

2 Pave Existing Gravel Parking 311 sy $ 24.00 $ 7,464 $ 7,464

3 Replace Concrete Walks Demo Exist Walks 169 sy $ 11.00 $ 1,859 Fill / Seed Demolished Walk Areas 147 sy $ 8.00 $ 1,176 New Concrete Walks 2625 sf $ 4.75 $ 12,469 Subtotal $ 15,504

4 Regrade Ditch Line for Drainage Grading 300 sy $ 4.25 $ 1,275 Mobi[ization 1 [s $ 250.00 $ 250 Subtotal $ 1,525

5 Replace Culverts at Driveways Demo Exist Culverts 90 [f $ 7.00 $ 630 [nstall New Culverts 90 [f $ 9.72 $ 875 Subtotal $ 1,505

Sitework Totals Demolition Renovation Total Cost

$ 2,489.00 $ 39,240.55 $ 41,729.55



603 Building 603 - (2) 2BR

604 Building 604 - 2BR 12BRHC

607 Building 607 - (2) 2BR

608 Building 608 - (4) 1 BR


615 Building 615 - (6) 1BR

621 Building 621 - (2) 2BR

622 Building 622 - (2) 2BR

625 Building 625 - (2) 2BR


Sitework

Master Summary Sheet Totals

Contingency (10 % )

Master Summary Sheet Page 22 of 22

April 2009

Demolition Renovation Totals

$ 11,587.50 $ 94,763.00 $ 106,350.50

$ 12,125.00 $ 104,360.50 $ 116,485.50

$ 11,587.50 $ 94,293.00 $ 105,880.50

$ 23,527.50 $ 159,890.00 $ 183,417.50

$ 12,225.00 $ 105,360.50 $ 117,585.50

$ 37,647.50 $ 245,370.00 $ 283,017.50

$ 13,040.00 $ 94,393.00 $ 107,433.00

$ 11,487.50 $ 94,393.00 $ 105,880.50

$ 11,487.50 $ 94,393.00 $ 105,880.50

$ 12,125.00 $ 104,360.50 $ 116,485.50

$ 2,489 $ 39,241 $ 41,729.55

Demolition Renovation Total Cost 1,390,146.05

139,014.61 $ 159,329.00 $ 1,230,817.05 $

$

$ 1,529,160.66

TABT (Documentation of Financing Sources)

TAB V (Nonprofit or LHA Purchase Option or Right of First Refusal)

Prepared by and to be returned to: Kanady & Quinn, P.C. 7130 Glen Forest Drive, Suite 120 Richmond, Virginia 23226

Tax Map Parcel: ____ _

PURCHASE OPTION AND RIGHT OF FmST REFUSAL AGREEMENT

This Purchase Option and Right of First Refusal Agreement (this "Agreement") is made as of the 5th day of May 2009, by and between COMMONWEALTH APARTMENTS. LLC, a Virginia limited liability company (the "Company" and to be indexed as "Grantor',), WISE COUNTY REDEVELOPMENT AND HOUSING AUTHORITY, a political subdivision of the Commonwealth of Virginia, whose primary purpose is the providing of affordable housing to residents of Wise County, Virginia ("Grantee") and Commonwealth Apartments Development Corporation, a Virginia corporation (the "Managing Member").

WHEREAS, the Company is wholly owned and controlled by Grantee through its ownership of all of the issued and outstanding stock of Commonwealth Apartments Development Corporation, the sole Member and Manager of the Company; and

WHEREAS, Grantee will be instrwnental in the negotiation of a purchase contract for certain property in the Town of Wise, Wise County, Virginia as more particularly described in Exhibit A attached hereto (the "Project Property"), which the Company will rehabilitate and operate an affordable housing project (the "Project") and will act as guarantor of the obligations of the Managing Member in the fonnation or continuation of the Company for the further development of the Project; and

WHEREAS, the Project Property is or will be subject to one or more governmental agency regulatory agreements (collectively, the "Regulatory Agreement") restricting its use to affordable housing and may become subject to a low-income use restriction (the "Special Covenant") pursuant to the terms and conditions of this Agreement (such use restrictions under the Regulatory Agreement and any Special Covenant being referred to collectively herein as the "Use Restrictions"); and

WHEREAS, Grantee desires to provide for the continuation of the Project Property as low-income housing upon termination of the Company's ownership of the Project by Grantee purchasing the Project Property at the applicable price determined under this Purchase Agreement and operating the Project Property in accordance with the Use Restrictions; and

WHEREAS, Grantee has negotiated and required that the Company shall execute and . deliver this Purchase Agreement in order to provide for such affordable housing.

NOW, THEREFORE, in consideration of the execution and delivery of the Agreement and the payment by the Grantee to the Company of Ten and 00/100 Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby set forth the following:

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1. Grant of Option. The Company hereby grants to Grantee an option (the "Option") to purchase the real estate, fixtures, and personal property comprising the Project Property or associated with the physical operation thereof, owned by the Company at the time of purchase (the "Property"), after the close of the fifteen (15) year compliance period for the lowincome housing tax credit for the Project Property (the "Compliance Period") as determined under Section 42(i)(I) of the Internal Revenue Code of 1986, as amended (the "Code"), on the tenns and conditions set forth in this Purchase Agreement and subj ect to the conditions precedent to exercise of the Option specified herein. The Project Property real estate is legally described in Exhibit A attached hereto and made a part hereof. The Regulatory Agreement containing the

. Use Restrictions to which the Project Property real estate will remain subject is described in Exhibit B attached hereto and made a part hereof.

2. Grant of Refusal Right. In the event that the Company receives a bona fide offer to purchase the Project Property, which offer the Company intends to accept, Grantee shall have a right of first refusal to purchase the Property (the "Refusal Right") after the close of the Compliance Period, on the tenns and conditions set forth in this Agreement and subject to the conditions precedent to exercise of the Refusal Right specified herein. In addition to all other applicable conditions set forth in this Agreement, (a) the foregoing grant of the Refusal Right shall be effective only if Grantee is currently and remains at all times hereafter, until (i) the Refusal Right has been exercised and the resulting purchase and sale has been closed or (ii) the Refusal Right haS been assigned to a Permitted Assignee described in Section 9 hereof, whichever first occurs, a qualified nonprofit organization, as defined in Section 42(h) (5) (C) of the Code, and (b) any assignment of the Refusal Right pennitted under this Agreement and the Refusal Right so assigned shall be effective only if the assignee is at the time of the assignment and remains at all times thereafter, until the Refusal Right has been exercised and the resulting purchase and sale has been closed, a Permitted Assignee described in Section 9 hereof meeting the requirements of Section 42(i)(7)(A) of the Code. Prior to accepting any such bona fide offer to purchase the Property, the Company shall notify Grantee and the General Member of such offer and deliver to each of them a copy thereof. The. Company shall not accept any such offer unless and until the Refusal Right has expired without exercise by Grantee under Section 6 hereof.

3. Purchase Price Under Option. The purchase price for the Property pursuant to the Option shall be the greater of the following amounts, subject to the proviso set forth hereinbelow:

a. Debt and Taxes. An amount sufficient (i) to pay all debts (including member loans) and liabilities of the Company upon its termination and liquidation as projected to occur inunediately following the sale pursuant to the Option, and (ii) to distribute to the members cash proceeds equal to the taxes projected to be imposed on the members of the Company as a result of the sale pursuant to the Option; or

b. Fair Market Value. The fair market value of the Property, appraised as low-income housing to the extent continuation of such use is required under the Use Restrictions, any such appraisal to be made by a licensed appraiser, selected by the Company's regular certified public accountants, who is a member of the Master Appraiser

2

. a. ,I. ..

Institute and.who has experience in the geographic area in which the Project Property is located;

provided, however, that if prior to exercise of the Option the Internal Revenue Service (the "Service") has issued a revenue ruling or provided a private letter ruling to the Company, concluding that property of the nature and use of the Property may be sold under circumstances described in this Agreement at the greater of the price detennined under Section 42(i) (7) of the Code or the price detennined under Subsection 3a hereinabove without limiting tax credits or deductions that would otherwise be available, then the Option price shall be the price determined under Section 3 a.

4. Purchase Price Under Refusal Right. The purchase price for the Property pursuant to the Refusal Right shall be equal to the sum of (a) an amount sufficient to pay all debts (including Member loans) and liabilities of the Company upon its tennination and liquidation as projected to occur immediately following the sale pursuant to the Refusal Right, and (b) an amount sufficient to distribute to the members of the Company (the "Members"), cash proceeds equal to the taxes projected to be imposed on the Members of the Company as a result of the sale pursuant to the Refusal Right.

5. Conditions Precedent. Notwithstanding anything in this Agreement to the contrary, the Option and the Refusal Right granted hereunder shall be contingent on the following:

(i) the Regulatory Agreement shall have been entered into and remained in full force and effect, and those Use Restrictions to be contained therein, shall have remained unmodified without its prior written consent, or

(li) if the Regulatory Agreement is no longer in effect due to reasons other than a default thereunder by the Company, such Use Restrictions, as so approved and unmodified, shall have remained in effect by other means and shall continue in effect by inclusion in the deed.

If any or all of such conditions precedent have not been met, the Option and the Refusal Right shall not be exercisable.

6. Exercise of Option or Refusal Right. The Option and the Refusal Right may each be exercised by Grantee by (a) giving prior written notice of its intent to exercise the Option or the Refusal Right to the Company and each of its Members in the manner provided in the Agreement and in compliance with the requirements of this Section 6, and (b) complying with the contract and closing requirements of Section 8 hereof. Any such notice of intent to exercise the Option shall be given during the last twelve (12) months of the Compliance Period. Any such notice of intent to exercise the Refusal Right shall be given within one hundred eighty (180) days after Grantee has received the Company's notice of a bona fide offer pursuant to Section 2 hereof, but in no event later than one hundred eighty (180) days immediately following the end of the Compliance Period, notwithstanding any subsequent receipt by the Company of any such offer. In either case, the notice of intent shall specify a closing date within one hundred eighty

3

h' J ••

(180) days immediately following the end of the Compliance Period. If the foregoing requirements are not met as and when provided herein, the Option or the Refusal Right, or both, as applicable, shall expire and be of no further force or effect. Upon notice by Grantee of its intent to exercise the Option or the Refusal Right, all rights under the other shall be subordinate to the rights then being so exercised unless and until such exercise is withdrawn or discontinued, and upon the closing of any sale of the Property pursuant to such notice shall expire and be of no further force or effect, provided that in the event that the Option and the Refusal Right are hereafter held by different parties by reason of any permitted assignment or otherwise, Grantee in its assignment( s) or such parties by written agreement may specify any other order of priority consistent with the other terms and conditions of this Agreement.

7. Determination of Price. Upon notice by Grantee of its intent to exercise the Option or the Refusal Right, the Company and Grantee shall exercise best efforts in good faith to agree on the purchase price for the Property.

8. Contract and Closing. Upon determination of the purchase price, the Company and Grantee shall enter into a written contract for the purchase and sale of the Property in accordance with this Agreement and containing such other terms and conditions as are standard and customary for similar commercial transactions in the geographic area which the Project Property is located, providing for a closing not later than the date specified in Grantee's notice of intent to exercise of the Option or the Refusal Right, as applicable, or thirty (30) days after the purchase price has been determined, whichever is later. In the absence of any such contract, this Agreement shall be specifically enforceable upon the exercise of the Option or the Refusal Right, as applicable.

9. Assignment. Grantee may assign all or any of its rights under this Agreement to (a) a qualified nonprofit organization, as defined in Section 42(h) (5) (C) of the Code, (b) a government agency, or (c) a tenant organization (in cooperative form or otherwise) or resident management corporation of the Project Property (each a "Permitted Assignee") that demonstrates its ability and willingness to maintain the Project Property as low-income housing in accordance with the Use Restrictions, and subject in any event to the conditions precedent to the Refusal Right grant and the Option price set forth in Sections 2 and 3 hereof. Prior to any assignment or proposed assignment of its rights hereunder, Grantee shall give written notice thereof to the Company and the General Member. Upon any permitted assignment hereunder, references in this Agreement to Grantee shall mean the permitted Assignee where the context so requires, subject to all applicable conditions to the effectiveness of the rights granted under this Agreement and so assigned. No assignment of Grantee's rights hereunder shall be effective unless and until the permitted Assignee enters into a written agreement accepting the assignment and assuming all of Grantee's obligations under this Agreement. Except as specifically permitted herein, Grantee's rights hereunder shall not be assignable.

10. Miscellaneous. This Agreement shall be governed by the laws of the Commonwealth of Virgiuia. This Agreement may be executed in counterparts or counterpart signature pages, which together shall constitute a single agreement.

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In Wi1ness Whereof, the parties have executed this docwnent as of the date first set forth hereinabove.

COMPANY:

Commonwealth Apartments, LLC A Virginia limited liability company By Commonwealth Apartments Development Corporation, Its Member-Manager

BY~(~ha./ Its:l>RES:U)iNT'

COMMONWEALTH OF VIRGINIA) CITY/COUNTY OF Wise )

I, G?~ ~ ,a Notary Public in and for said City/County in the CommonW;attIlIesaid, do hereby certify that M, ~ ,(7010',+& of Commonwealth Apartments Development Corporation, a Virginia corporation, personally known to me to be the same person whose name is subscribed to the foregoing instrument as such officer, appeared before me this day in person and acknowledged that he signed and delivered such instrument as his/her own free and voluntary act, and as the free and voluntary act of the Company known as Commonwealth Apartments, LLC on behalf of which said Company

WCRHA has executed the foregoing instrument as Manager, all for the uses and purposes set forth therein.

Given under my hand and notarial seal on 'n'/t1tt S-

NotaryPu he

My Notarial Certification Number is: 17.5"$«3. My Commission Expires: 11·:3 (). I;"'·

5

, ....

,2009

[SEAL]

GRANTEE:

WISE COUNTY REDEVELOPMENT AND HOUSING AUTHORITY, a political

SUbd;V~i=nunonwea1th of Virginia

By;-J; Its: -E'-f----'.:·1~· v"'e"""'Jr<-e-="'-to-r------

COMMONWEALTH OF VIRGINIA) )

CITY/COUNTY OF Wise )

I, G?~ ~ , a Notary Public in and for said City/County in the Conunonwealth afor said, do hereby certify that ~~ , &'ftC<r1lA.r. 4irr7m. of Wise County Redevelopment and Housing Authority, a politi su6division of the Conunonwealth of Virginia, personally known to me to be the same person whose name is subscribed to the foregoing instrument as such officer, appeared before me this day in person and acknowledged that he/she signed and delivered such instrument as his/her own free and voluntary act, and as the free and voluntary act of the corporation.

Given under my hand and notarial seal on 'Yn9'1 6""

My Notarial Certification Number is: 1 756".a 3 My Conunission Expires: 11_ 3 D - 12 ..

6

,2009.

[SEAL]

EXIDBITA PROPERTY DE8CRIPTION

Being a 8.024 acres parcel ofland situated in the east end of the Town of Wise, Wise County, Virginia and being the same property conveyed to Gladeville Housing Authority, LTD. and recorded in Deed Book 422, Page 730 and being further described as follows, to wit:

Beginning at a drill hole in sidewalk in the northern R-O-W line of 8tate Route #640 (Hurricane Road) a common corner to Ryan D. Adkins (Inst #990004825) thence with said Adkins two (2) calls N37°31 '28"W208.72' to a point at fence post, thence S61°56'00"W211.59' to an iron pin in line of now or formerly William E. Baugh, Jr. Thence with said Baugh and an agreed boundary lines recorded in Deed Book 353, Page 99, three (3) calls N37°18'42"WI26.35' to a 2" pipe in concrete, thence N44°35'03"EI7.20' to an iron pin, thence N34°04'46"WI55.25' to an iron pin in the eastern R-O-W line of State Route #680 (Old Hurricane Road) thence with said Eastern R-O-W lines two (2) calls N21°43'57"E130.20' thence NI6°30'09"E131.02' to an iron pin, a common corner to Charlie Dean (DB 620, Page 521) thence with said Dean four (4) calls 867°00'05'EI51.62' to an iron pin, thence N25°58'41 "E66.00' to a metal rod, thence N17°00'54"W94.67 to a 16" black oak, thence N05°57'0T'W235.14 to an iron pin in line of now or formerly William Cox (DB 564, Page 183) thence in part with said Cox, a 0.133 acre parcel and Janice Addington (DB 695, Page 80) 873°19'45"E484.09' (at 78.44' pass thru an iron pin) to a set stone, a common corner to Wendell E. Barnette (lnst. #200300617) thence in part with said Barnette and with Cecil Cantrell, 816°01 '48"W354.13' to an iron pin at fence intersection, thence continuing with said Cantrell two (2) calls 800 03'06"E201.17' to an iron pin, thence 811 °35'29"EI58.41' to an iron pin in the Northern R-O-W Line of aforesaid 8tate Route #640, thence with said R-O-W 872°20'41"WI41.08' to the beginning containing 8.024 acres more or less.

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~ '.', • ~"." i .". •• ,1 ••

Title:

Parties:

Date:

EXIllBITB

DESCRIPTION OF REGULATORY AGREEMENT

Extended Use Regulatory Agreement and Declaration of Restrictive Covenants

Commonwealth Apartments, LLC Virginia Housing Development Authority

Recording Information:

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TABW (Original Attorney's Opinion)

KANADY & QUINN. P. C. ATTORNEYS AND COUNSELORS AT LAw

7130 GLEN FOREST DRIVE, SUITE 1 20

RICHMOND, VIRGINIA 23226

TELEPHONE: (804) 282-8494

FACSIMILe:: (804) 282-8496

E-MAIL: [email protected]

May 13,2009

Virginia Housing Development Authority 601 South Belvidere Street Richmond, Virginia 23220

RE: 2009 Tax Credit Reservation Request

Gentlemen:

Name of Development: Commonwealth Apartments Name of Owner: Commonwealth Apartments, LLC

This firm represents the above-referenced Owner as its counsel. It has received a copy of and has reviewed the completed application package dated as of April 29, 2009 (of which this opinion is a part) (the "Application") submitted to you for the purpose of requesting, in connection with the captioned Development, a reservation of low income housing tax credits ("Credits") available under Section 42 of the Internal Revenue Code of 1986, as amended (the "Code"). It has also reviewed Section 42 of the Code, the regulations issued pursuant thereto and such other binding authority as it believes to be applicable to the issuance hereof (the regulations and binding authority hereinafter collectively referred to as the "Regulations").

Based upon the foregoing reviews and upon due investigation of such matters as it deems necessary in order to render this opinion, but without expressing any opinion as to either the reasonableness of the estimated or projected figures or the veracity or accuracy of the factual representations set forth in the Application, the undersigned is of the opinion that:

1. It is more likely than not that the inclusion in eligible basis of the Development of such cost items or portions thereof, as set forth in Parts VIII and IX of the Application form, complies with all applicable requirements of the Code and Regulations.

2. The calculations (a) of the Maximum Allowable Credit available under the Code with respect to the Development in Part VIII of the Application form and (b) of the Estimated Qualified Basis of each building in the Development in Part IX of the Application form comply with all applicable requirements of the Code and regulations, including the selection of credit type implicit in such calculations.

3. The appropriate type(s) of allocation(s) have been requested in Subpart I-D of the Application form.

Virginia Housing Development Authority May 13,2009 Page 2

4. The information set forth in Subpart VII-C of the Application form as to proposed rents satisfies all applicable requirements of the Code and Regulations.

5. The site of the captioned Development is controlled by the Owner, as identified in Subpart IT-A of the Application, for a period of not less than four (4) months beyond the application deadline.

6. It is more likely than not that the representations made under Subpart I-F of the Application form as to the Development's compliance with or exception to the Code's minimum expenditure requirements for rehabilitation projects are correct.

Finally, the undersigned is of the opinion that, if all information and representations contained in the Application and all current law were to remain unchanged, upon compliance by the Owner with the requirements of Code Section 42(h)(1)(E), the Owner would be eligible under the applicable provisions of the Code and the Regulations to an allocation of Credits in the amount(s) requested in the Application.

This opinion is rendered solely for the purpose of inducing the Virginia Housing Development Authority (nVHDAn) to issue a reservation of Credits to the Owner. Accordingly, it may be relied upon only by VHDA and may not be relied upon by any other party for any other purpose.

This oplmon was not prepared in accordance with the requirements of Treasury Department Circular No. 230. Accordingly, it may not be relied upon for the purpose of avoiding U.S. Federal tax penalties or to support the promotion or marketing of the transaction or matters addressed herein.

Kanady & Quinn, P.C.

Commonwealth Apartments / 0

4iHDA. Locality Notification Information Form

PART I - INSTRUCTIONS:

Section 42 (m)(1 )(A)(ii) of the Internal Revenue Code requires allocating agencies to notify "the Chief Executive Officer (CEO) or equivalent of the local jurisdiction within which the building is located and provide such individual a reasonable opportunity to comment on the development." VHDA uses information you provide in this form to comply with this requirement. If your development overlaps two or more jurisdictions, you are required to submit this form for each.

New in 2009!

In addition to contacting the Locality CEO, VHDA will also be contacting the Mayor or Chairman of the Board of Supervisors. It is probable that each position will have a separate mailing address.

Although VHDA prepares the documents sent to each locality, we rely on you, the developer/Applicant, to provide us with key information, including the name of the locality having jurisdiction over the development names, addresses and salutations, as well as a summary of basic development information.

If you already have a local support letter, you can include it with the application at TAB I. However, you must still complete this form and submit it to VHDA or the application for this development will be penalized 50 po'ints!

For information about additional points associated with receiving a Support Letter from the local jurisdiction, please refer to the Application Manual.

Developers seeking tax-exempt bond 4% credits or Non-Competitive 9% credits, should submit this form at least 30 days prior to submission of the tax credit application.

50-Point Penalty:

Failure to complete and submit this form prior to 5:00 p.m. EST time on March 25, 2009 will result in a 50-point penalty (-50 points) for any application submitted in connection with the 2009 competitive tax credits.

Delivery of Electronic Copy of this form to VHDA:

via e-mail to [email protected]. E-mail only one form at a time!

If you use this e-mail option, you will receive an auto reply message confirming "message received." The system DOES NOT confirm that an attachment has been received.

via regular mail (on CD) to:

VHDA Tax Credit Allocation Department c/o Debbie Griner 60 I S. Belvidere Street Richmond, VA 23220-6500

VHDA Confact Informafion:

Call Debbie Griner at 804-343-5518 if you have questions about completing this form.

Locality Notification Information Form


PART" • CEO & JURISDICTION INFORMATION Please read INSTRUCTIONS above carefully before completing the following sections.

A. Chief Executive Officer (CEO) Information

Name 01 CEO:

Job Tille:

Local Jurisdiction:

Mailing Address/P.O. Box:

Suite/Room # (if applicable):

City: state: Zip:

Salutation:

Beverly c. Owens First Name Middle Initial last Name

This is the full nome of the City Manager, Town Manager, County Administrator; Chief Administrative Officer, Executive Officer, etc.

Town Manager

e.g. "City Manager", 'Town Manager", "County Adminisirato(, "Executive Officer", "Chief Administrative Officer", etc.

Town of Wise

e.g. "City of... .. , 'Town of.. ... or "[ 1 County"

501 W. Main Street. PO Box 1100

This is the mailing address of the CEO and may not alWays be the some as the physical address of the courthouse, town hall, municipal building, city hall, etc. Please double check the address before entering.

Wise

Virginia

24293

This zip code must correspond to the P.O. Box or street address that you are using. Nole: lip codes for P.O. boxes ore usually different from the zip codes for the street addresses.

Mr. Owens

e.g. "The Honorable", "Mr.", "Mrs.", "Ms.". "Rev.", etc.

B. Mayor or Chairman of the Board of Supervisors Information

Name:

Job Title:

Local Jurisdiction: Mailing Address/P.O. Box:

Suite/Room # (it applicable):

City: State: Zip:

Salutation:

Caynor A. First Name Middle Inilial

Mayor

"Mayor" or "Chairman of the Boord of Supervisors"

Town of Wise

501 Main Street PO Box 1100

Smith, Jr. lasl Name

This is the street address for the Admnistrator. May be different from CEO address. Please double check the address before entering.

Wise

VA 24293

Be sure the zip code you pick up corresponds to the P.O. Box or street address that you ore using. Nole: lip codes for P.O. boxes are usually different from the zjp codes for the street addresses.

The Honorable Mr. Smith

e.g. ''The Honorable", "Mr.", "Mrs.", "Ms.", "Rev.", etc.



C. Jurisdiction Detail

Circuit Court Clerk's office in which the deed to the property is or will be recorded: Wise

Does the site overlap one or more jurisdictional boundaries? the other jurisdiction{s) here:

City/County of Development is located in a Metropolitan Statistical Area (MSA)?

Yes

Development's Census Tract: "9,,9"'0"-9-::-__ :---,,-,-----,-__ _ Census Tract Number

Is this a Qualified Census Tract? Is the development located in a Difficult Development Area? Is the development located in a revital'lzation area?

° City/County of

Yes

Yes Yes Yes

City/County of If yes, add the names of

'0 '0 '0

Congressional District Planning District State Senate District State House District

9 http://dlsgis.state. va .us/ congress/200 1 PDFs/ chap 7T ab .pdf http://www.vapdc.org/aboutpdcs.htm#PDC%20Map

40 http://dlsgis.state.va.us/senate/200 1 PDFs/Chap2Tab.pdf http;!/dlsgis.state.va.us/House/2001 HousePDFs/Chap 1 Tab.pdf

Local Planning/Zoning Contact Info:

Best Person to Contact: Laura Mullins

This is the person with whom you've previously spoken about the development and whom can answer anticipated questions from the CEO.

Job Title: Director; Department of Planning and Zoning

Contact Phone: e.g., "Director of Planning", "Planning Administrator", "Zoning Administrator", ele. 276-328-6013

PART III· DEVELOPMENT INFORMATION

Proposed Development Name: -:C:'o""m"m""o"nw""'e"a"lt"-h"A""'p"o"rt"m"e"'n.ct2.s_-:----,-__ -:-__________ _ This is the marketing nome of your development

Proposed Development Address: 603,604,607,612,621,622,625,626 A-B, 608 A-D, and 615 A-F Commonwealth Ave, VII Street Address City State Zip

VHDA Tax Credit Pool: ~P~H"A,-__________ _

In the space below, qive a brief description of the proposed development. ###################################################################################

Development Type: (Family or Elderly) Describe Architectural Style: Describe Exterior Finish: Describe Community Facilities:

1. Units: Number of low-income units % Low-Income Units Number of new units Number of adaptive reuse units Number of rehabilitation units

Total number of all units

2. Floor Area: Gross Residential Floor Area Commercial Floor Area Low-Income Floor Area % Low-Income Unit Floor Area

3. Number/Age at Buildings Number of Buildings Age of Building(s)

Family so bri

26

26 26

20422

20422 100%

10 25

4. Structural Features (check all that apply):

Row House/Townhouse Detached Single~family Elevator

5. Building Systems:

Garden Apartments Detached Two-family Crawl Space

# bedrooms

# bedrooms # bedrooms # bedrooms

Total # bedrooms

Number of stories:

Slab on Grade Basement

42

42 42

Describe Heating/AC System: -'h::.i ____________________________ _



PART IV - OWNER & SELLER INFORMATION

A. Owner Information

Owner Name: Best Person to Contact: Street Address: City, State & lip:

Type of entity:

Commonwealth Apartments, LLC Monty Salyer

Coeburn City

Virginia State

Limited Partnership Individual(s)

List of Principals. Use the following as a guide fo listing principals.

1. If Partnership (owner or otherwise) - all GPs, regardless of % interest in GP 2. If an LlC - all members regardless of % interest

Phone: 276 395-6104

Zip

Other: Corporation

3. If a Corporation (public or private), Organization or Governmental Entity - officers who are directly responsible to the Board of Directors (or equivalent) and any stockholder having a 25% or more interest 4. If a Trust - all persons having a 25% or more beneficial ownership interest in the assets of the trust

5. If an Individual (owner or otherwise) - anyone having a 25% or more ownership interest of the named individual 6. If Any Person that Directly or [ndirectly Controls or Has the Power to Control a Principal

Names Phone Commonwealth Apartments Development Corp< 276 395 6104

Type of Ownership Managing Member

B. Seller Information:

Seller Name: Wise County Redevelopment and Housing Authority Seller Phone: (276) 395 6104 Street Address: City, State & lip: Coeburn, Virginia

City State

Is there an identity of interest between the seller and owner/applicant? the following:

Zip

Yes

Nature of Identity of Interest (1): Managing Member controlling shareholder

10

% Ownership 100

If yes, complete

e.g. general partner; managing member; controlling shareholder; etc.

Name Street Address City, State & lip:

Nature of Identity of Interest (2):

Name Street Address City, State & lip:

Commonwealth Apartments Development Corporation

Coeburn Virginia City State Zip

e.g. general partner, managing member. controlling shareholder, etc.

City state Zip


TABY (Marketing Plan for units meeting accessibility

requirements of HUn section 504)

A. Project Name, Address (City, State, & Zip Code) and Telephone Number (including area code)

Commonwealth Apartments, LLC clo WCRHA P.O. Box 630 Coeburn, VA 24230

(276)395-6104

B. Development Name, Location/Address (include: City, State, and Zip Code) and Telephone Number

Commonwealth Apartments

Commonwealth Street

Wise, VA 24293

(276) 395-6104

c. Housing Market Area Boundaries & Census Tract

ED 27,28, & .29

From $ 190 to $220 ( to change after rehab)

F. Type of Multifamily Housing:

G. Approximate Starting Dates (mm/dd/yyW)

Advertising

H. Name of Managing Agent, Address (include: City, State, and Zip Code) and Telephone Number (including area code)

Wise County Redevelopment & Housing Authority

P.O.60x630

Coeburn, VA 24283

(276) 395- 6104

2, TYPE OF AFFIRMATIVE MARKETING PLAN - Check Appropriate Box xNew Updated

Minority White (non-minority) Area *' Mixed Area (with __ % minority residents)

3, DIRECTION OF MARKETING ACTIVITY

Indicate below which group(s) in the housing market area is/are least likely to apply for the housing because of its location and other factors without special outreach efforts taking place.

White (non-Hispanic) 'X Black (non-Hispanic) X American Indian or Alaskan Native X Hispanic X Families with Children

X Asian/Native Hawaiian/Pacific Islander Other (Please specify) X Persons with Disabilities (MSHDA requires all

developments to affirmatively market to people with disabilities)

4, MARKETING PROGRAM

A. Commercial Media

Check the media to be used to advertise the availability of this housing:

X Newspaper(s)/Publications Radio TV Billboard(s) Website Other (specify)

Name of Newspaper, Radio or TV Station RaciaVEthnlc Identification of Readers/Audience SizelDuration of Advertising Ongoing

Coalfield Progress All 4" X 5" (annuallY)

B. Brochures, Signs and HUO's Fair Housing Poster

(1 ) Will brochures, leaflets, or handouts be used to advertise? ___ Yes _X~ No. If yes, attach a copy and explain how this printed material will be distributed: At Town and County government meetings, churches, businesses, community organizations, community meetings

(2) For project site sign: indicate sign size x ; Logotype size x . Attach a photograph of project sign.

(3) Fair Housing Poster must be conspicuously displayed whenever rentals and showings take place. Fair Housing Posters will/are displayed in the:

Rental/Leasing Olfices(s) On-Site Management Office(s) Model Unit(s)

Previous Editions are obsolete Page 1 of 3 Ref. HUD Handbook 8025.1 Rev. 05108

* Other specify ( Central Office of WCRHA)

C. Community Contacts

To further inform the group(s) least likely to apply about the availability of the housing, the applicant agrees to establish and maintain contact with the groups & organizations listed below that are located in the housing market area. If more space is needed, attach an additional sheet. Notify MSHDA of any changes in this list. Attach a copy of correspondence to be mailed to these groups/organizations. (Provide all requested information.)

Name of Group/Organization Group Approximate Date of Contact Person Contacted or to be Contacted Identification or Proposed Contact

(minlddlyyyy)

1. Junction Center for Independent LivinQ Persons wi Dis. Cindy Mefford

2. Mountain Empire Older Citizens Eld & P wi Dis Marilyn Maxwell

Address & Telephone Method of Contacts Indicate the specific function Group/Organization will undertake in implementing the Marketing

Program

1. P.O. Box 1210 Norton, VA 24273 Phone, mail and email Directly with consumers

2.P.O. Box 888 BigStone Gap, VA 24219 Phone, mail and email Directly with consumers

5, Future Marketing Activities Check the block(s) that best describe future marketing activities to fill vacancies as they occur after the development is initially occupied.

X Newspapers/Publications Radio TV Brochures/Leaflets/Handouts X Site Signs X Community Contacts

Others (specify) Access Virginia website

6. Experience and Staff Instructions (See Instructions)

Staff has experience X Yes No

On separate sheets, indicate training to be provided to staff on Federal, State and local fair housing laws and regulations, as well as this AFHM Plan. Attach a copy of the instructions to staff regarding fair housing. * staff has Certifications in Fair Housing Training

Previous Editions are obsolete Page 2 of 3 Ref. HUD Handbook 8025.1 Rev. 05108

INSTRUCTIONS

Introduction: The goal of H.O.M.E., Inc's Affirmative Fair Housing Marketing (AFHM) requirements is to afford persons of all racial and/or ethnic backgrounds an opportunity for occupancy in a H.O.M.E., Inc. owned development in'a percentage which is somewhat reflective of their percentage in the housing development's market area. AFHM requirements are also intended to attract persons with disabilities, and all AFHM plans must market to persons with disabilities. The Affirmative Marketing program should ensure that any group(s) of persons ordinarily not likely to apply for this housing without special outreach (see part 3), know about the housing, feel welcol1)e to apply and have the opportunity to rent.

Part 1- Applicant and Development Identification: Most of these Blocks are self-explanatory. Block 2-C - the applicant should indicate the housing market area in which the housing will be (is) located. Block 2-C - the applicant may obtain census tract location information from local planning agencies, public libraries and other sources of census data. Block 2-D - please include your HAP Contract Number, if applicable. Block 2-G - the applicant should specify the approximate date for starting marketing activities to the groups targeted for special outreach and the anticipated date of initial occupancy (if unoccupied).

Part 2 - Type of Affirmative Marketing Plan: Indicate the status of the AFHM Plan, e.g. new or updated. The Plan should indicate the racial composition of the housing market area in which the housing will be (is) located by checking one of the three choices.

Part 3 - Direction of .Marketing Activity: Indicate which group(s) the applicant believes are least likely to apply for this housing without special outreach. Consider factors such as price, sponsorship of housing, racial/ethnic characteristics of housing market in which housing will be (is) located, disability or familial status of eligible population, public transportation routes, etc.

Part 4 -Marketing Program: The applicant shall describe the marketing program to be used to attract those groups designated in Part 3 of this AFHM plan as least likely to apply. The applicant shall state: the type of media to be used, the names of newspapers/call letters of radio or TV stations; the identity of the circulation or audience of the media identified in the AFHM plan (e.g. White, Black or African American, American Indian or Alaskan Native, Asian, Native Hawaiian or Other Pacific Islander, Hispanic or Latino, persons with disabilities, and families with children) and the size or duration of the newspaper advertising or length and frequency of broadcast advertising. Community contacts include individuals or organizations that are known in the housing market area of the locality that can influence persons within groups considered least likely to apply. Such contacts may include, but are not limited to: neighborhood minority organizations, grass root faith-based or other community based organizations, disability advocates, public and private agencies.

Part S -Future Marketing Activities: Self-Explanatory.

Part 6 -Experience and Staff Instructions: The applicant should indicate whether their rental staff has had previous experience in marketing housing to group(s) identified as least likely to apply for the housing. Describe the instructions and training provided or to be provided to rental staff. This guidance to staff must include information regarding Federal, State and local fair housing laws and this AFHM Plan.

Previous Editions are obsolete

Equal Housing Lender

Page 3 of 3 Ref. HUD Handbook 8025.1 Rev. 05/08