exhibit f page 1 of 15 - floridahousing.org · 2014-07-25 · fhdc broadwater iv page 6 july 25,...

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Broadwater IV Page 1 July 25, 2014 July 25, 2014 Mr. Ken Reecy, Director of Multifamily Programs Florida Housing Finance Corporation 227 N. Bronough Street, Suite 5000 Tallahassee, FL 32301 RE: Request for Application 2013-006 – Financing to Build Permanent Supportive Housing for Homeless Persons and Families – Broadwater IV (2014-155G) Dear Mr. Reecy: At the request of the Florida Housing Finance Corporation (“Florida Housing” or “FHFC”), First Housing reviewed the response to Request for Application 2013-006 for the proposed Broadwater IV development. Pinellas Affordable Living, Inc. (“PAL” or “Applicant”) has applied for $1,002,095 in grant funding for the new construction of 10 garden style homeless units at 3611 37 th Street South, St. Petersburg, Pinellas County, Florida 33711. Address: City: Zip Code: County: County Size: Development Category: Development Type: Construction Type: Demographic Commitment: Elderly: Homeless: ELI: Units @ AMI Farmwork or Commercial  Fish Worker: Family: Buildings: Residential  ‐ NonResidential  ‐ Parking: Parking Spaces ‐ Accessible Spaces ‐ Set Asides: Site Acreage: Density: Flood Zone Designation: Zoning: Flood Insurance Required?: Applicant: Developer: General  Contractor:  Management Company: Architect: Appraiser: WS Architecture, PLLC McCormick, Braun, & Seaman Boley Centers, Inc. Hennessy Construction Services  Corp. Boley Centers, Inc. NSM1 Neighborhood Suburban Multifamily No DEVELOPMENT TEAM Pinellas  Affordable Living, Inc. 0.48 20.83 X ELI 50% 5 40% 20 Program % of Units # of Units % AMI Term (Years) RFA 201306 100% 10 60% 20 $27,840 0 N/A N/A 1 10 5 550 60% $646 $13,920 $68 $578 $232 $232 1 1.0 1 1.0 5 550 40% $431 Low HOME Rents High HOME Rents Bed Rooms Bath Rooms Units Square Feet AMI% DEVELOPMENT & SETASIDES Development Name: Broadwater IV Program Numbers: RFA 2013006 2014155G Gross HC Rent No Yes 5 40% No No Appraiser Rents Net CU Rents Annual Rental Income Utility Allow RD/HUD Cont Rents Net HC Rent Net Applicant Rents Wood Frame / Slab ongrade 3611 37th Street South St. Petersburg 33711 Pinellas Large New Construction Garden Style $232 $13,920 $68 $363 $232 Exhibit F Page 1 of 15

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Page 1: Exhibit F Page 1 of 15 - floridahousing.org · 2014-07-25 · FHDC Broadwater IV Page 6 July 25, 2014 FINANCIAL COSTS: Year 1 Year 1 Per Unit OPERATING PRO FORMA Gross Potential Rental

Broadwater IV Page 1 July 25, 2014

July 25, 2014

Mr. Ken Reecy, Director of Multifamily Programs Florida Housing Finance Corporation 227 N. Bronough Street, Suite 5000 Tallahassee, FL 32301

RE: Request for Application 2013-006 – Financing to Build Permanent Supportive Housing for Homeless Persons and Families – Broadwater IV (2014-155G)

Dear Mr. Reecy:

At the request of the Florida Housing Finance Corporation (“Florida Housing” or “FHFC”), First Housing reviewed the response to Request for Application 2013-006 for the proposed Broadwater IV development. Pinellas Affordable Living, Inc. (“PAL” or “Applicant”) has applied for $1,002,095 in grant funding for the new construction of 10 garden style homeless units at 3611 37th Street South, St. Petersburg, Pinellas County, Florida 33711.

Address: City: Zip Code:

County: County Size:

Development Category: Development Type:

Construction Type:

Demographic Commitment: Elderly: Homeless: ELI: Units@ AMI

Farmwork or Commercial Fish Worker: Family:

Buildings: Residential ‐  Non‐Residential ‐ 

Parking: Parking Spaces ‐  Accessible Spaces ‐ 

Set Asides:

Site Acreage: Density: Flood Zone Designation:

Zoning: Flood Insurance Required?:

Applicant:

Developer:

General  Contractor: 

Management Company:

Architect:

Appraiser:

WS Architecture, PLLC

McCormick, Braun, & Seaman

Boley Centers, Inc.

Hennessy Construction Services Corp.

Boley Centers, Inc.

NSM‐1 Neighborhood Suburban Multifamily No

DEVELOPMENT TEAM

Pinellas  Affordable Living, Inc.

0.48 20.83 X

ELI 50% 5 40% 20

Program % of Units # of Units % AMI Term (Years)

RFA 2013‐06 100% 10 60% 20

$27,840

0

N/A N/A

1

10

5 550 60% $646 $13,920$68 $578 $232 $2321 1.0

1 1.0 5 550 40% $431

Low 

HOME 

Rents

High HOME 

Rents

Bed 

Rooms

Bath 

Rooms Units

Square 

Feet AMI%

DEVELOPMENT & SET‐ASIDESDevelopment Name: Broadwater IV

Program Numbers: RFA 2013‐006 2014‐155G

Gross HC Rent

No Yes 5 40%

No No

Appraiser 

Rents Net CU Rents

Annual 

Rental 

Income

Utility 

Allow

RD/HUD 

Cont 

Rents

Net HC 

Rent

Net 

Applicant 

Rents

Wood Frame / Slab on‐grade

3611 37th Street South St. Petersburg 33711

Pinellas Large

New Construction Garden Style

$232 $13,920$68 $363 $232

Exhibit F Page 1 of 15

Page 2: Exhibit F Page 1 of 15 - floridahousing.org · 2014-07-25 · FHDC Broadwater IV Page 6 July 25, 2014 FINANCIAL COSTS: Year 1 Year 1 Per Unit OPERATING PRO FORMA Gross Potential Rental

FHDC

Broadwater IV Page 2 July 25, 2014

Source of Funds Sources Lender Application

Revised Applicant

Underwriter Term Yrs. Amort. Yrs.Interest

RateAnnual Debt

Service

RFA 2013-006 Grant FHFC $1,002,095 $1,002,095 $1,002,095 20 N/A N/A N/A

ODR Grant FHFC $65,000 $65,000 $65,000 20 N/A N/A N/A

A&D Loan City of St . Pete $110,000 $110,000 $110,000 20 N/A 0.00% N/A

Equity PAL $50,000 $50,000 $50,000 N/A N/A N/A N/A

Deferred Developer Overhead PAL $0 $20,622 $22,201 N/A N/A N/A N/A

Total $1,227,095 $1,247,717 $1,249,296 $0

FHFC Grant

The Applicant has requested funding in the amount of $1,002,095 via the FHFC RFA 2013-006. FHFC will provide an initial three-year operating deficit reserve of $6,500 per unit therefore; Broadwater IV with 10 units shall receive $65,000 of additional grant funding.

A&D Loan

First Housing reviewed a City of St. Petersburg Resolution Number 2013-421 dated October 17, 2013 awarding the Applicant a 0% interest acquisition and development loan in the amount of $110,000. The Applicant intends to use this funding for site acquisition. The loan restricts occupancy to chronically homeless persons who are at very low income (defined by the City of St. Petersburg as persons at or below 30% of the AMI which is more restrictive than the FHFC set aside requirements). The loan provides for forgiveness at the end of a successful twenty-year affordability period.

Equity

The Application submitted by the Applicant indicates that PAL has already committed $50,000 for site work, infrastructure and the pad for the 10 units to be situated on the development. The hard construction costs have increased since the application was submitted, reportedly, as a result of permitting cost increases. As there are no other sources of funding for the development, First Housing recommends that additional equity be deposited to fund the shortfall of sources at closing and/or developer overhead must be deferred, based on the final development budget.

Deferred Developer Overhead

Based on the total development budget, the Developer will be required to defer approximately $22,201 or 22.20% of the total developer overhead in the amount of $100,000 to balance the sources and uses of funds during construction.

Exhibit F Page 2 of 15

Page 3: Exhibit F Page 1 of 15 - floridahousing.org · 2014-07-25 · FHDC Broadwater IV Page 6 July 25, 2014 FINANCIAL COSTS: Year 1 Year 1 Per Unit OPERATING PRO FORMA Gross Potential Rental

FHDC

Broadwater IV Page 3 July 25, 2014

Uses of Funds

Applicant CostsRevised 

Applicant Costs

Underwriters 

Total Costs ‐ CUR

Underwriters 

Total Costs Per 

Unit ‐ CUR

New Construction Homeless  Units $788,426 $645,679 $645,679 $64,568

Site Work $0 $52,150 $52,150 $5,215

General  Conditions $0 $65,438 $65,438 $6,544

Overhead & Profit $0 $46,501 $46,501 $4,650

Builder's Risk Insurance $0 $2,561 $2,561 $256

General  Liabil ity Insurance $0 $2,566 $2,566 $257

Payment and Performance Bonds $6,000 $7,824 $7,824 $782

Furniture, Fixture, & Equipment $0 $1,371 $1,371 $137

Total  Construction Contract/Costs $794,426 $824,090 $824,090 $82,409

Hard Cost Contingency $40,000 $38,360 $41,205 $4,120

Other: Completed Sitework by Owner  $16,129 $16,129 $16,129 $1,613

$850,555 $878,579 $881,424 $88,142

CONSTRUCTION COSTS:

Total Construction Costs:

First Housing reviewed an executed Standard Form of Agreement between Pinellas Affordable Living, Inc. (“Owner”) and Hennessy Construction Services Corp. (“Contractor”) dated March 31, 2014 where the basis of payment is a Stipulated Sum. The contract sum is in the amount of $824,090 and contemplates Substantial Completion no later than 150 calendar days from commencement. The general contractor’s fee (general conditions, profit and overhead) is in the amount of $111,939 which is 13.6% of the contract amount which is within the maximum of 14%. Retainage in the amount of 10% will be withheld until completion which complies with FHFC requirements. The building, plumbing, mechanical and electrical plans have been reviewed and approved by the City of St. Petersburg and the permits are available upon payment of the fee. The Schedule of Values lists Division 12 – Furnishings in the amount of $1,371 for mini-blinds. Per the RFA 2013-006, FHFC grant funding may not be used for furnishings.

Exhibit F Page 3 of 15

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FHDC

Broadwater IV Page 4 July 25, 2014

GENERAL DEVELOPMENT COSTS: Applicant CostsRevised 

Applicant Costs

Underwriters 

Total Costs ‐ CUR

Underwriters 

Total Costs Per 

Unit ‐ CUR

Architect's and Planning Fees $9,000 $9,000 $9,000 $900

Architect's Fee ‐ Supervision $9,000 $9,000 $9,000 $900

Building Permits $6,000 $14,148 $14,148 $1,415

Engineering Fees $10,000 $10,000 $10,000 $1,000

FHFC Administrative Fees $20,520 $20,520 $0 $0

FHFC Credit Underwriting Fee $0 $0 $6,000 $600

FHFC Compliance Fee (HC) $0 $0 $10,000 $1,000

FHFC Construction Inspection Fee(s) $0 $0 $2,520 $252

Impact Fee $11,000 $0 $0 $0

Insurance $5,520 $5,520 $5,520 $552

Legal  Fees $12,500 $12,500 $12,500 $1,250

Survey $5,000 $5,000 $5,000 $500

Soft Cost Contingency $10,000 $5,450 $4,184 $418

$98,540 $91,138 $87,872 $8,787Total General Development Costs:

Applicant CostsRevised 

Applicant Costs

Underwriters 

Total Costs ‐ CUR

Underwriters 

Total Costs Per 

Unit ‐ CUR

Construction Loan/Title Work Closing Costs $10,273 $10,273 $10,273 $1,027

FHFC Commitment Fee $0 $0 $2,000 $200

Reserves ‐ Operating Deficit $65,000 $65,000 $65,000 $6,500

$75,273 $75,273 $77,273 $7,727

FINANCIAL COSTS:

Total Financial Costs:

FHFC will provide an initial three-year operating deficit reserve of $6,500 per unit therefore; Broadwater IV with 10 units shall receive $65,000 of additional grant funding.

Applicant CostsRevised 

Applicant Costs

Underwriters 

Total Costs ‐ CUR

Underwriters 

Total Costs Per 

Unit ‐ CUR

$1,024,368 $1,044,990 $1,046,569 $104,657

Developer Overhead $100,000 $100,000 $100,000 $10,000

$100,000 $100,000 $100,000 $10,000

OTHER DEVELOPMENT COSTS

Development Cost Before Developer Overhead and Land

Total Other Development Costs:

The Developer Overhead is within the 10% of Development Cost as required by the RFA.

Applicant CostsRevised 

Applicant Costs

Underwriters 

Total Costs ‐ CUR

Underwriters 

Total Costs Per 

Unit ‐ CUR

Land $102,727 $102,727 $102,727 $10,273

$102,727 $102,727 $102,727 $10,273

$1,227,095 $1,247,717 $1,249,296 $124,930

LAND ACQUISITION COSTS

Total Acquisition Costs:

TOTAL DEVELOPMENT COSTS:

According to the public records, Boley Centers, Inc. purchased the land where the subject will be situated in July 2009 for $500,000. Boley Centers, Inc. has developed three (3) residential treatment/housing facilities, Broadwater I, II, and III, on the parcel already. Broadwater IV will be the fourth and final. First Housing reviewed a Contract for Sale of Real Estate between Boley Centers, Inc. (“Seller”) and Pinellas Affordable Living, Inc. (“Purchaser”) dated

Exhibit F Page 4 of 15

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FHDC

Broadwater IV Page 5 July 25, 2014

October 29, 2013 for the land where the subject will be situated. The sales price is $102,727. The contract references that City of St. Petersburg funds will be used to acquire the land contingent upon funding through FHFC for the subject development’s vertical costs. First Housing reviewed an Appraisal Report dated March 28, 2014 prepared by McCormick, Braun, & Seaman which indicates the fee simple “As Is” value of the land where the subject will be situated is $125,000 which supports the purchase price. The development is designated for homeless individuals who usually do not have income to contribute towards rent. The rent roll shown below is based on similar homeless, like-sized developments the Applicant manages. Other sources of subsidy as shown in the operating pro forma below, are the FHFC operating deficit reserve and HUD subsidy. HUD provides a Continuum of Care Grant for $150,266 for the operations of 37 units of housing for people who are homeless. The grant is called Grove Park/Burlington. Total funding per unit is $4,061. HUD gave permission to add the Broadwater units to the grant to provide operating subsidy to the units. These units provide housing to people who are chronically homeless. The majority come into the program with no income and eventually (often after one or two years) are approved for SSI income which currently provides approximately $675 per month. The HUD funding allows the Applicant to operate the units despite the lack of rents charged and collected on the units. Specifically the funds are budgeted to pay for maintenance/repair, property taxes, replacement reserves, building security, utilities, furniture and equipment. The grant is renewed annually.

$27,84010

5 550 60% $646 $13,920$68 $578 $232 $2321 1.0

1 1.0 5 550 40% $431

Low 

HOME 

Rents

High HOME 

Rents

Bed 

Rooms

Bath 

Rooms Units

Square 

Feet AMI% Gross HC Rent

Appraiser 

Rents Net CU Rents

Annual 

Rental 

Income

Utility 

Allow

RD/HUD 

Cont 

Rents

Net HC 

Rent

Net 

Applicant 

Rents

$232 $13,920$68 $363 $232

Exhibit F Page 5 of 15

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FHDC

Broadwater IV Page 6 July 25, 2014

FINANCIAL COSTS: Year 1Year 1 

Per Unit

OPERATING PRO FORMA

Gross  Potentia l  Renta l  Income $27,840 $2,784

Other IncomeHUD Subs idy $40,612 $4,061

FHFC ODR ($65,000) $0 $0

Gross  Potentia l  Income $68,452 $6,845

Less :

Phys ica l  Vac. Loss Percentage: 3.50% $974 $97

Col lection Loss $0 $0

Total Effective Gross Income $67,478 $6,748

Fixed:

Rea l  Estate  Taxes $0 $0

Insurance $9,000 $900

Variable:

Management Fee $4,800 $480

General  and Adminis trative $4,200 $420

Payrol l  Expenses $4,800 $480

Uti l i ties $6,600 $660

Maintenance  and Repairs/Pest Control $15,000 $1,500

         Reserve  for Replacements $3,600 $360

Total Expenses $48,000 $4,800

Net Operating Income $19,478 $1,948

INCO

ME:

EXPENSES:

Notes to the Pro Forma The expenses above are based on estimates used for underwriting purposes and are not indicative of the actual projected expenses at the development which are higher per the Applicant. The underwritten expenses do not include costs for supportive housing services. Required Construction Features and Amenities All proposed Developments must meet all federal requirements and state building code requirements, including, but not limited to:

2012 Florida Accessibility Code for Building Construction as adopted pursuant to Section 553.503, Florida Statutes;

The Fair Housing Act as implemented by 24 CFR 100; and Titles II and III of the Americans with Disabilities Act of 1990 as implemented by 28

CFR 35, incorporating the most recent amendments, regulations and rules. Other Construction Features and Amenities All proposed Developments must provide:

Termite prevention and pest control throughout the entire Compliance Period; and A full-size range and oven in all units.

Exhibit F Page 6 of 15

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FHDC

Broadwater IV Page 7 July 25, 2014

Green Building Features All proposed Developments that select the Development Category of new construction must include:

Low or No-VOC paint for all interior walls (Low-VOC means 50 grams per liter or less for flat paint; 150 grams per liter or less for non-flat paint);

Low-flow water fixtures in bathrooms – WaterSense labeled products or the following specifications:

o Toilets: 1.6 gallons/flush or less; o Faucets: 1.5 gallons/minute or less; o Showerheads: 2.2 gallons/minute or less;

Energy Star qualified refrigerator; Energy Star qualified washing machine, if provided; Energy Star qualified exhaust fans in all bathrooms; Energy Star qualified dishwasher; and Minimum SEER of 14 for air conditioners.

Accessibility, Adaptability, Universal Design and Visitability Features All proposed Developments that select the Development Category of new construction must include all of the accessibility, adaptability, universal design and visitability features listed below:

Primary entrance door shall have a threshold with no more than a ½-inch rise; All door handles on primary entrance door and interior doors must have lever handles; Lever handles on all bathroom faucets and kitchen sink faucets; Mid-point on light switches and thermostats shall be no more than 48 inches above

finished floor level; and For Developments of 10 units or more, at least one unit shall be fully accessible in

accordance with the 2010 ADA Standards for Accessible Design. Any fully accessible units shall provide mobility features that comply with the residential dwelling units’ provision of the 2010 ADA Standards for Accessible Design. For Developments of 10 units or more, at least one unit shall also be accessible to persons with visual and hearing impairments and shall comply with the communication features described for Residential Dwelling Units with Communication Features in the 2010 ADA Standards for Accessible Design.

Optional Accessibility, Adaptability, Universal Design and Visitability Features and Amenities In addition to the requirements above, the Borrower has committed to provide the following features and amenities in the one unit fully accessible in accordance with the 2010 ADA Standards for Accessible Design:

An additional floor drain in the restroom to facilitate drainage from the roll-in shower; An angled reflective surface behind the range that will provide the resident the ability

to see food while it is cooking; A peep hole mounted at a height of 44” and another at 60”;

Exhibit F Page 7 of 15

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FHDC

Broadwater IV Page 8 July 25, 2014

Electric panel no higher than 48” to the top breaker; Drop in range at a height no greater than 34” with adjacent counter work space with

appropriate clear knee space and with front controls and tactile markings for safety; Under cabinet lighting in the kitchen to enhance visibility at lower eye levels of tenants

who use a wheelchair; In addition to pull-out shelves in the kitchen, the corner unit will have a “lazy susan” to

facilitate access and maximize storage space. In addition to the requirements above, the Borrower has committed to provide the following features and amenities in the one unit designed for a resident with visual and hearing impairments that complies with the communication features described for Residential Dwelling Units with Communication Features in the 2010 ADA Standards for Accessible Design:

An electrical outlet adjacent to the phone outlet for the ease of use of a tty/tdd; Peep holes at 44” and 60”; Flashing light connected to a hard-wired electric door bell; Light fixtures that can utilize 150 watt bulbs; Door, windows and baseboard painted with a contrasting color to the wall color to

differentiate rooms and spaces within the unit for a person with low vision; A range cooktop with front controls and tactile markings for safety.

A separate description of features and amenities is attached to this report as Exhibit B. Third Party Reports/Approvals

Per an email from Bill Aldinger dated April 8, 2014, FHFC has approved the submitted Resident Community Service Plan for Broadwater IV. First Housing reviewed an Appraisal Report dated March 28, 2014 prepared by McCormick, Braun, & Seaman. The subject site will be improved with a two-story building having 10 units. The total units within Broadwater Place when phase IV is completed will be 44 units. The ten units within phase IV represent 23% of the total 44 units. It is estimated the site for phase IV will be 0.48 acres of the total 2.09 acre site. According to the site plan provided, there are driveway ingress/egress easements running through the property providing access to common areas and parking. It is estimated that the fee simple “As Is” value of the unencumbered land where the subject will be situated is $125,000. First Housing reviewed a Transaction Screen Process (“TSP”) Report dated February 19, 2014, prepared by Cardno TBE in accordance with ASTM Standard E 1528-06. No Potential Environmental Concerns were identified at the subject site. First Housing reviewed a Plan and Cost Analysis for the subject dated May 20, 2014, prepared by On Solid Ground, LLC (“OSG”). The Broadwater IV development will consist of a single 2-story, garden style, 10-unit, 6,190 SF housing facility and related site work for the homeless to be constructed in the City of St. Petersburg, Pinellas County, Florida. The new building will be constructed adjoined at one end

Exhibit F Page 8 of 15

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FHDC

Broadwater IV Page 9 July 25, 2014

to the existing 2-story Phase III building. Two (2) other related residential buildings (Phase I & II) exist on the subject property. Construction will consist of shallow concrete foundation systems, wood-framed exterior and interior walls, standing seam metal roof, aluminum- or vinyl-framed windows, stucco and fiber cement paneled finished exterior walls, and standard interior finishes, casework and MEP systems. The civil engineering drawings provided for the review are signed and sealed by the respective engineer. The architectural, structural, plumbing, mechanical, and electrical drawings reviewed provide the information necessary to satisfactorily complete construction of the proposed 10-apartment unit homeless development, once combined with normal subcontractor-supplied shop drawings and submittals. The drawings provided for the review have not been approved by the City of St. Petersburg building department. Revisions and clarifications can be expected during permit review. We recommend that a copy of “permitted” approved drawings is provided for our records once available. The City of St. Petersburg building permit has been issued and is dated March 3, 2014. The Project Manual appears to generally describe the use of standard quality methods and materials for this type of project. It is primarily proprietary in nature, listing several manufacturers or approved equals as well as reference standards and regulatory requirements, thus minimizing the potential for incorporation and application of inferior materials and construction methods. We did not find any significant discrepancies or conflicts between the Project Manual and construction drawings. Based on the review of the construction drawings, to the best of OSG’s knowledge, the proposed development complies with Federal FHA, ADA and Section 504 accessibility requirements.

Development Team Applicant/Developer

Pinellas Affordable Living, Inc., (“PAL”) is a Florida not for profit corporation formed on February 24, 1993 to serve as a Community Housing Development Organization (“CHDO”) and as such to develop integrated affordable housing for people with mental illness within the guidelines of the HUD HOME Program. PAL was created by Boley Centers, Inc. for the purpose of developing affordable housing. PAL financials are consolidated with the Boley Center, Inc. financials documented below. Boley provides the staff responsible for the operation of PAL. First Housing reviewed satisfactory bank, trade and credit references for the proposed Applicant/Developer. Supportive Housing Services/Management Agent Boley Centers, Inc., (“Boley”) ”) is a Florida not for profit corporation formed on July 1, 1970 to operate community-based rehabilitation facilities and services as an integral part of a mental health program for individuals seeking the skills and support necessary for living independent, productive lives.

Exhibit F Page 9 of 15

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FHDC

Broadwater IV Page 10 July 25, 2014

First Housing reviewed satisfactory bank, trade and credit references for the proposed Supportive Housing Services/Management Agent. Boley will provide the Supportive Housing Services and act as the Management Agent for Broadwater IV. Boley is the largest provider of permanent, supportive housing for chronically homeless individuals in Pinellas County. Boley operates and provides permanent supportive housing services to residents residing in 71 units specifically set aside for individuals who are chronically homeless. Additionally, Boley operates two Safe Haven Facilities with 45 beds that serve chronically homeless individuals who have symptoms and substance abuse problems too severe to safely live independently. Broadwater IV will serve the same types of persons who are presently served at their other nearby similar buildings, including Broadwater III, Twin Brooks Apartments II and Twin Brooks Apartments III. Broadwater IV represents an extension of Boley’s existing housing facilities. There is currently a waiting list at Boley’s existing facilities consisting of 372 households/individuals. The proposed development will consist of ten single bedroom units each with approximately 550 square feet of living space. This floor plan has been used in the past seven constructed by Boley/PAL. This is the second and final phase of the PAL-owned development for individuals who have experienced homelessness. PAL has constructed eight one bedroom units on this parcel that will be immediately adjacent to the proposed ten units. The first portion of the PAL development houses homeless individuals and has support provided by a HUD award that provides supportive housing services to these tenants. The proposed phase of ten additional units will also have support provided with funding from HUD.

Boley Centers, Inc. and Affiliates Audited Consolidated Financial Statements

December 31, 2013 Cash and Equivalents Total Assets Total Liabilities Net Assets General Contractor Hennessy Construction Services Corp. was incorporated with the State of Florida as a profit corporation on March 19, 1975. Hennessy Construction Services Corporation is a general contractor (FL License #CGC06055 current and active through August 31, 2014) for the construction and rehabilitation of various projects ranging from educational, medical, leisure and other commercial industries. Hennessy Construction Services Corp. has been in the construction business for over eighty years. Hennessy Construction Services Corp. has completed 71 rehabilitation and new construction projects since April 2006. First Housing reviewed satisfactory bank, trade and credit references for the proposed General Contractor.

Exhibit F Page 10 of 15

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FHDC

Broadwater IV Page 11 July 25, 2014

Hennessy Construction Services Corporation Audited Financial Statements

December 31, 2013 Cash and Equivalents Total Assets Total Liabilities Equity

First Housing recommends that the general contractor provide 100% payment and performance bonds in the amount of the construction contract for the benefit of FHFC.

Exhibit F Page 11 of 15

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FHDC

Broadwater IV Page 12 July 25, 2014

Recommendation First Housing recommends grant funding in the amount of $1,002,095 and $65,000 of additional grant funding to be utilized to provide a three-year operating deficit reserve. Conditions

1. Review and approval of all grant documents by FHFC and its legal counsel. 2. Payment of all costs and fees to FHFC, its legal counsel, and servicer.

3. Payment of the Grant Commitment Fee to FHFC at closing.

4. Prepayment of the required Compliance Monitoring Fees at closing.

5. Satisfactory resolution of any outstanding past due and non-compliance items, if

applicable.

6. Payment of any outstanding arrearages to FHFC, its legal counsel, servicer or any agent or assignee of the Corporation for past due issues applicable to the development team (Applicant, or Developer or Principal, Affiliate or Financial Beneficiary, as described in 67-48.0075 (5) F.A.C., of an Applicant or a Developer).

7. The Applicant will provide a Construction Completion Guaranty to be released at

100% lien free completion of construction.

8. Receipt of evidence of adequate insurance on the Development as determined by Florida Housing, or First Housing, but which shall, in any case, include fire, hazard and other insurance sufficient to meet the standards established in Part IIIB, Chapter9, Section 911 of the Fannie Mae Multifamily Delegated Underwriting and Servicing (DUS) Guide, effective April 29, 2011.

9. Confirmation that all features and amenities are provided during construction by the

construction inspector, David Sanchez, with On Solid Ground.

10. A minimum of 10% retainage holdback on all construction draws until the Development is 50% complete. Retainage will not be released until successful completion of construction.

11. Funding of the Grant is conditioned upon satisfactory review of all ADA and Fair

Housing requirements.

12. Any other due diligence required by FHFC, its legal counsel or servicer.

Exhibit F Page 12 of 15

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EXHIBIT “B” RFA 2013-006 Financing to Build Permanent Supportive Housing for Homeless Persons

And Families (Broadwater IV / 2014-155G)

DESCRIPTION OF FEATURES AND AMENITIES

1

A. The Development will consist of: 10 Garden Style units located in one residential building. Unit Mix: 10 (ten) one bedroom/one bathroom units 10 Total Units B. The Development is to be constructed and will conform to requirements of local, state

& federal laws, rules, regulations, ordinances, orders and codes, Federal Fair Housing Act as implemented by 24 CFR 100, the 2012 Florida Accessibility Code for Building Construction as adopted pursuant to Section 553.503, F.S., and Titles II and III of the Americans with Disabilities Act (“ADA”) of 1990 as implemented by 28 CFR 35, incorporating the most recent amendments, regulations, and rules, as applicable.

If the proposed Development meets the definition of Scattered Sites, all features and amenities committed to and proposed by the Applicant that are not Unit-specific shall be located on each of the Scattered Sites.

C. The Development must provide the following features and amenities:

1. Termite prevention and pest control throughout the entire Compliance period; and 2. A full-size range and oven in all Units.

D. All new construction Developments must include the following green building features:

1. Low or No-VOC paint for all interior walls (Low-VOC means 50 grams per liter or less for flat paint; 150 grams per liter or less for non-flat paint);

2. Low-flow water fixtures in bathrooms—WaterSense labeled products or the

following specifications: o Toilets: 1.6 gallons/flush or less; o Faucets: 1.5 gallons/minute or less; o Showerheads: 2.2 gallons/minute or less;

Exhibit F Page 13 of 15

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EXHIBIT “B” RFA 2013-006 Financing to Build Permanent Supportive Housing for Homeless Persons

And Families (Broadwater IV / 2014-155G)

DESCRIPTION OF FEATURES AND AMENITIES

2

3. Energy Star qualified refrigerator; 4. Energy Star qualified washing machine, if provided;

5. Energy Star qualified exhaust fans in all bathrooms;

6. Energy Star qualified dishwasher; and

7. Minimum SEER of 14 for air conditioners.

E. All New Construction developments must provide the following Accessibility,

Adaptability, Universal Design and Visitability Features listed below and all Rehabilitation developments (with or without acquisition) are strongly encouraged to include as many of the features listed below as are structurally and financially feasible within the scope of work. If the proposed Development serves persons with physical disabilities it must include all accessibility, adaptability, universal design and Visitability features listed below.

1. Primary entrance door shall have a threshold with no more than a ½-inch rise;

2. All door handles on primary entrance door and interior doors must have lever

handles;

3. Lever handles on all bathroom faucets and kitchen sink faucets; 4. Mid-point on light switches and thermostats shall not be more than 48 inches

above finished floor level; and 5. For Developments of 10 Units or more, at least one Unit shall be fully accessible

in accordance with the 2010 ADA Standards for Accessible Design. Any fully accessible Units shall provide mobility features that comply with the residential dwelling Units provision of the 2010 ADA Standards for Accessible Design. For Developments of 10 Units or more, at least one Unit shall also be accessible to persons with visual and hearing impairments and shall comply with the communication features described for Residential Dwelling Units with Communication Features in the 2010 ADA Standards for Accessible Design.

F. The Development must provide the following optional Accessibility, Adaptability,

Universal Design and Visitability features and amenities as described in their response to Request for Application 2013-006:

Exhibit F Page 14 of 15

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EXHIBIT “B” RFA 2013-006 Financing to Build Permanent Supportive Housing for Homeless Persons

And Families (Broadwater IV / 2014-155G)

DESCRIPTION OF FEATURES AND AMENITIES

3

1. Wheelchair accessibility from the public street to all parking areas, the office/laundry, and the large picnic pavilion.

2. The ADA compliant Unit will have the following additional features:

a. An additional floor drain in the bathroom to facilitate drainage from the roll-in shower;

b. Angled reflective surface behind the kitchen stove;

c. Two peepholes in the entrance door - one at 44 inches and the other at 60 inches;

d. Electric panel no higher than 48 inches to the top breaker;

e. Drop-in range in the kitchen at a height no greater than 34 inches with adjacent counter work space with appropriate clear knee space and with front controls and tactile markings for safety;

f. Under cabinet lighting in the kitchen; and

g. Pull-out kitchen shelves with a ‘lazy susan’ in the corner unit.

3. The Unit accessible to visual and hearing impaired persons will have the following additional features:

a. An electrical outlet adjacent to the phone outlet for use of a tty/tdd;

b. Two peepholes in the entrance door - one at 44 inches and the other at 60 inches;

c. Flashing light connected to a hard-wired electric doorbell;

d. Light fixtures that can use 150-watt bulb;

e. Doors, windows and baseboards painted with contrasting colors to the

walls in order to differentiate rooms and spaces within the unit; and

f. A range cook top with front controls and tactile markings for safety.

Exhibit F Page 15 of 15