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Quality Through Innovation and Experience
June 3, 2014 Mr. Ken Reecy Director of Multifamily Programs Florida Housing Finance Corporation 227 N. Bronough Street, Suite 5000 Tallahassee, FL 32301 RE: Neff Lake Estate (2014‐139G) Request for Applications 2013‐005 (“RFA”) Financing to Build or Rehabilitate Smaller Permanent Supportive Housing Properties For Persons With Developmental Disabilities Dear Mr. Reecy: An application was submitted in response to the Florida Housing Finance Corporation (“FHFC” or “Florida Housing”) Request for Applications 2013‐005 (“RFA”) for Financing to Build or Rehabilitate Smaller Permanent Supportive Housing Properties For Persons With Developmental Disabilities on behalf of The Arc Nature Coast, Inc. (“Applicant”) requesting $325,000 of grant funding for the new construction of a six‐bedroom, four‐bathroom single family home consisting of approximately 3,858 square feet known as Neff Lake Estate (the “Development”) located at 5255 Neff Lake Road Brooksville, Hernando County, Florida 34601. The Development will be constructed on a land parcel of approximately 30 acres which contains an existing adult training center and administrative offices owned by the Applicant. The Development will add to the supply of units that serve Persons with Developmental Disabilities through new construction. The Development will set aside 33% of the units (2 units) for tenants with incomes at or below 40% of the Area Median Income (“AMI”) (“Extremely Low Income”) and the remaining units (4 units) will be set aside for tenants with incomes at or below 60% AMI for a period of ten years. The Development is a Community Residential Home with six residents, the maximum number allowed. Each resident will occupy one bedroom and will share one bathroom and presumably, none of the residents will be related persons. Though the residents will not execute individual lease agreements, the Agency for Persons with Disabilities (“APD”) will authorize each resident prior to the Applicant providing housing and services. Therefore, the Development should be considered Shared Housing. As such, the Applicant shall utilize the proposed six units as Shared Housing throughout the entire affordability period. Income certification of residents will be required throughout the affordability period. The Applicant, a Florida 501(c)(3) not‐for‐profit corporation with a 12‐member Board of Directors, was formed February 7, 1973 for the purpose of providing individually tailored quality support and advocacy to persons with disabilities and their families in order to promote their self‐determination and inclusion
Exhibit I Page 1 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 2 of 12
in community life. The Development will be self‐managed by the Applicant and partially constructed by Palmwood Construction LLC, (the “General Contractor”). The remaining portions of the Development will be constructed by several sub‐contractors directly employed by the Applicant.
Address: City: Zip Code:
County: County Size:
Development Category: Development Type:
Construction Type:
Demographic Commitment: Elderly: Homeless: ELI: Units @ AMI
Farmworker or Commercial Fish Worker: Family: Link: Units
2 40%
New Construction
5255 Neff Lake Road Brooksville 34601
Hernando Medium
1‐4 Unit Size
Single family Community
Residential Home
DEVELOPMENT & SET‐ASIDESDevelopment Name: Neff Lake Estate
Program Numbers: 2014‐139G
Set Asides:
Applicant/Borrower:
Guarantor(s):
General Contractor 1:
Management Company: The ARC Nature Coast, Inc.
Palmwood Construction, LLC
The ARC Nature Coast, Inc.
DEVELOPMENT TEAM
The ARC Nature Coast, Inc.
Grant 67% 4 60% 10
Program % of Units # of Units % AMI Term (Years)
Grant 33% 2 40% 10
Sources of Funds
Source Lender Applicant's TotalApplicant's
Revised Total
Underwriter's
TotalInterest Rate
Amortization
Years
Term
Years
Annual
Debt Service
Grant FHFC $325,000 $325,000 $325,000 0.00% N/A 10 $0
SHIP Grant
Hernando
County $0 $30,000 $30,000 0.00% N/A 15 $0
Deferred Developer Fee ARC $0 $0 $12,771
$325,000 $355,000 $367,771 $0Total : Grant: Applicants that commit to Adding to the Supply of Units that Serve Persons with Development Disabilities, whether through New Construction, Rehabilitation, or a combination thereof may request grant funding amounts as outlined within the RFA. The Applicant requested $325,000 of grant funding which complies with the requirements of the RFA. Grant proceeds will have a zero percent interest rate for a 10 year term.
Exhibit I Page 2 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 3 of 12
SHIP Funding: The Hernando County Housing Authority (“HFA”) committed to provide a total of $30,000 of State Housing Initiatives Partnership Program (“SHIP”) funding to the Applicant for the construction of the Development according to a letter dated May 9, 2014. SHIP funding could close within 30 days after FHFC grant approval. The SHIP loan has a zero percent interest rate and is forgivable at the end of the 15 year term provided all requirements have been met. SHIP funding must be expended by June 30, 2015. Deferred Developer Fee: The Applicant must defer $12,771 of its Developer Fee to balance the sources and uses of funds after receipt of all grant and/or loan proceeds have been received.
Uses of Funds
Applicant CostsRevised
Applicant Costs
Underwriters
Total Costs ‐ CURCost Per Unit
Grant Ineligible
Costs ‐ CUR
New Rental Units $271,500 $252,062 $221,108 $36,851 $0
Site Work $0 $22,450 $22,450 $3,742 $0
General Conditions $0 $0 $13,266 $2,211 $0
Overhead $0 $0 $4,422 $737 $0
Profit $0 $0 $13,266 $2,211 $0
Builder's Risk Insurance $0 $0 $0 $0 $0
General Liabil ity Insurance $0 $0 $0 $0 $0
Payment and Performance Bonds $0 $0 $0 $0 $0
Total Construction Contract/Costs $271,500 $274,512 $274,512 $45,752 $0
Hard Cost Contingency $3,750 $3,750 $14,883 $2,481 $0
Other: Fire Sprinkler System $0 $14,950 $14,950 $2,492 $0
Other: Fire Alarm System $0 $8,200 $8,200 $1,367 $0
$275,250 $301,412 $312,545 $52,091 $0
CONSTRUCTION COSTS:
Total Construction Costs:
GENERAL DEVELOPMENT COSTS: Applicant CostsRevised
Applicant Costs
Underwriters
Total Costs ‐ CURCost Per Unit
Grant Ineligible
Costs ‐ CUR
Accounting Fees $0 $0 $0 $0 $0
Appraisal $0 $0 $0 $0 $0
Architect's and Planning Fees $3,000 $6,133 $6,133 $1,022 $0
Building Permits $0 $968 $968 $161 $0
Builder's Risk Insurance $1,500 $0 $0 $0 $0
Environmental Report $0 $1,350 $1,350 $225 $0
FHFC Credit Underwriting Fee $2,500 $2,500 $2,500 $417 $0
FHFC Other Processing Fee(s) $1,000 $1,000 $1,000 $167 $0
Impact Fee $10,000 $1,378 $1,400 $233 $0
Lender Inspection Fees / Const Admin $2,120 $2,520 $3,275 $546 $0
Insurance $1,000 $0 $0 $0 $0
Legal Fees $1,000 $0 $750 $125 $0
Soil Test $0 $2,750 $2,750 $458 $0
Survey $500 $2,375 $2,375 $396 $0
Title Insurance and Recording Fees $500 $0 $0 $0 $0
Soft Cost Contingency $3,750 $1,114 $1,225 $204 $0
Other: Grant Commitment Fee $2,000 $2,000 $2,000 $333 $0
$28,870 $24,088 $25,726 $4,288 $0Total General Development Costs:
Exhibit I Page 3 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 4 of 12
Applicant CostsRevised
Applicant Costs
Underwriters
Total Costs ‐ CURCost Per Unit
Grant Ineligible
Costs ‐ CUR
$304,120 $325,500 $338,271 $56,379 $0
Developer Fee $20,880 $29,500 $29,500 $4,917 $0
$20,880 $29,500 $29,500 $4,917 $0
Applicant CostsRevised
Applicant Costs
Underwriters
Total Costs ‐ CURCost Per Unit
Grant Ineligible
Costs ‐ CUR
Land $0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$325,000 $355,000 $367,771 $61,295 $0
LAND ACQUISITION COSTS
Total Acquisition Costs:
TOTAL DEVELOPMENT COSTS:
OTHER DEVELOPMENT COSTS
Development Cost Before Developer Fee
and Land Costs
Total Other Development Costs:
Notes to Total Development Costs:
1. The Applicant provided an executed Building Agreement dated May 5, 2014 between the Applicant and the General Contractor illustrating a sum of $242,640 for the Development’s construction. The General Contractor will achieve construction completion in 180 days from the notice to proceed. The Applicant provided Addendum No. 1 dated June 2, 2014 that increases the contract sum by $9,422 due to a change to the scope of work.
2. General Contractor Fee, comprised of general conditions, overhead, and profit, is limited to a maximum of 14% of the actual construction cost as outlined above. The Building Agreement does not delineate General Contractor Fee from the contract sum. However, Addendum No. 2 dated June 3, 2014 confirms General Contractor Fee does not exceed 14% of actual construction costs.
3. A Hard Cost Contingency of 5% of Total Construction Costs and a Soft Cost Contingency of 5% of General Development Costs was utilized by AmeriNational.
4. Beach Lake Sprinkler Corporation contracted with the Applicant in an executed proposal dated April 30, 2014 to provide a fire sprinkler system for $14,950.
5. Linus Alarm Corporation contracted with the Applicant in an executed proposal dated April 24, 2014 to provide a fire alarm system for $8,200.
6. Daniel Construction, Inc. contracted with the Applicant in an executed proposal dated May 2, 2014 to provide a Site Work services for $22,450.
7. Builder’s Risk Insurance, the General Contractor’s General Liability Insurance, and Building Permit costs are included in the Building Agreement.
8. General Development Costs are reasonable estimates by the Applicant and AmeriNational.
9. Developer Fee of $29,500 is within the maximum 10% of Development Cost permitted by the RFA.
Exhibit I Page 4 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 5 of 12
10. The Applicant owns the land for which the Development will be constructed; therefore, no land costs exist.
11. Total Development Costs increased $42,771 since the Application primarily due to increases in Construction Costs.
Construction Features and Amenities The Applicant committed to provide certain required and optional construction features and amenities within the RFA as outlined within Exhibit B of this recommendation. The Applicant issued a Request For Proposal dated April 18, 2014 for the construction of the Development that illustrated each of the required construction features and amenities are to be incorporated into the proposals. On May 20, 2014 Florida Housing issued a revised Exhibit B that illustrates the required and optional construction features and amenities that must be constructed at the Development. On June 3, 2014, the General Contractor confirmed that each of the required and optional construction features and amenities will be constructed at the Development with the exception of those that will be provided by sub‐contractors or the Applicant as follows:
The Applicant confirmed in written correspondence dated June 3, 2014, it will secure on‐going termite prevention and pest control on an annual basis throughout the affordability period;
Linus Alarm Corporation contracted with the Applicant in an executed proposal dated April 24, 2014 to provide a fire alarm system; and,
Beach Lake Sprinkler Corporation contracted with the Applicant in an executed proposal dated April 30, 2014 to provide a fire sprinkler system.
Satisfactory confirmation by On Solid Ground, the Florida Housing Construction Inspector, the required construction features and amenities have been constructed at the Development is a condition of grant funding.
Exhibit I Page 5 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 6 of 12
Third Party Reports
Appraisal: The land for which the Development will be constructed is owned by the Applicant as evidenced by the Quit Claim Deed dated October 21, 2013 provided at the time of the Application. Therefore, an appraisal report is not applicable
Blower Door Test: The Development is new construction; therefore, a blower door test is not applicable.
Transaction Screen Process: A Transaction Screen Process (“TSP”) / Lead‐based Paint Sampling Report dated February 24, 2014 was performed by Creative Environmental Solutions, Inc. (“CES”) at the 30‐acre site of the Development. CES observed pole‐mounted transformers, a former above‐ground storage tank (“AST”), several five‐gallon paint, solvent, or gas cans, a private well, and a private septic system. No evidence of spills or leaks were observed by CES. According to database searches by CES, one listing was noted in the AST database. This AST listing contained unleaded gasoline, had been removed, and no spills or leaks were reported. CES performed 15 lead‐based paint samples from various rooms with the two primary buildings, but no lead was detected in the samples. As no suspect environmental conditions were identified on or adjoining the Development, except for those previously noted, CES recommends that a Phase I Environmental Site Assessment is not warranted.
Home and HVAC Inspection: The Development is new construction; therefore, neither a home inspection nor an HVAC inspection is applicable.
Geotechnical Report: Central Testing Laboratory, Inc. (“CTL”) completed a subsurface soil exploration at the Development site according to a report dated May 13, 2014. The purpose of the exploration was to evaluate the general subsurface conditions within the proposed building area and to provide recommendations for site preparation and foundation support. Three standard penetration test borings were performed within the estimated footprint of the Development. The borings were advanced four feet by a hand auger for safety reasons and advanced the remainder in general accordance with the methodology outlined in ASTM D 1586. The results of CTL’s exploration indicate clayey and clay soils are present within two to four feet beneath the proposed structure, which are considered to have a moderate potential for shrinking or swelling. The clayey soil layer encountered in the borings at or near the bearing level may cause damaging differential movements of the foundations. Due to the presence of this layer, special consideration must be given to the site preparation and proposed foundation elevations. The detailed recommendations of the subsurface soil exploration at the Development site prepared by CTL were provided to and should be incorporated by the site work contractor. The General Contractor was provided with the geotechnical report and agrees with its conclusions.
Exhibit I Page 6 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 7 of 12
Resident Community Service
Plan: A Resident Community Service Plan was approved by Mr. Bill Aldinger, of Florida Housing, on April 6, 2014.
Operating Pro Forma
F IN AN C IA L CO S T S : Y e a r 1Ye a r 1
Pe r U nit
O PE R A T IN G PR O F O RM A
G ro s s Po te n t i a l R e n ta l I n co m e $ 0 $ 0
O th e r I n co m e
S o c i a l S e cu r i ty A d m i n i s tra t i o n ‐ D i s a b i l i ty $ 3 9 ,0 9 2 $ 6 ,5 1 5
So c i a l Se c u r i t y Adm in i s t r a t i o n ‐ R e p re s e n t a t i v e P a y e e $ 1 ,4 4 0 $ 2 4 0
R e s d e n t i a l H a b i l i ta t i o n I n co m e ‐ A PD $2 3 7 ,1 6 8 $ 3 9 ,5 2 8
U n i te d W a y G ra n ts $ 6 ,0 0 0 $ 1 ,0 0 0
O th e r G ra n ts $ 2 ,5 0 0 $ 4 1 7
G ro s s Po te n t i a l I n co m e $ 2 8 6 ,2 0 0 $ 4 7 ,7 0 0
Le s s :
P h ys i c a l V a c . Lo s s P e rce n ta g e : 2 .5 0% $7 ,1 5 5 $ 1 ,1 9 3
T ota l E f fe c tiv e G ros s In com e $2 7 9 ,0 4 5 $ 4 6 ,5 0 8
F i xe d :
R e a l E s ta te T a xe s $ 2 ,5 0 0 $ 4 1 7
I n s u ra n ce $ 3 ,5 0 0 $ 5 8 3
O th e r: D e p re c i a t i o n $ 6 ,5 0 0 $ 1 ,0 8 3
V a ri a b l e :
M a n a g e m e n t F e e $ 0 $ 0
G e n e ra l a n d A d m i n i s tra t i ve $ 2 4 ,0 0 0 $ 4 ,0 0 0
Pa yro l l E xp e n s e s $ 1 9 4 ,4 9 5 $ 3 2 ,4 1 6
U t i l i t i e s $ 9 ,5 0 0 $ 1 ,5 8 3
M a rk e t i n g a n d A d ve rt i s i n g $ 5 ,0 0 0 $ 8 3 3
M a i n te n a n ce a n d R e p a i rs / P e s t Co n tro l $ 3 ,5 0 0 $ 5 8 3
G ro u n d s M a i n te n a n ce a n d L a n d s ca p i n g $ 2 ,0 0 0 $ 3 3 3
R e s i d e n t P ro g ra m s $ 1 9 ,8 0 0 $ 3 ,3 0 0
Co n tra c t S e rvi ce s $ 1 ,0 0 0 $ 1 6 7
O th e r: V e h i c l e E xp e n s e s $ 3 ,2 5 0 $ 5 4 2
R e s e rve f o r R e p l a ce m e n ts $ 4 ,0 0 0 $ 6 6 7
T ota l E x pe ns e s $ 2 7 9 ,0 4 5 $ 4 6 ,5 0 8
N e t O pe ra ting In com e $0 $ 0
D ebt S e rv ice Pa ym ents
G ra n t $ 0 $ 0
S H I P $ 0 $ 0
T o ta l D e b t S e rvi ce P a ym e n ts $ 0 $ 0
Ca s h F l o w a f te r D e b t S e rvi ce $ 0 $ 0
F IN AN C IA L CO S T S : A nnua l Pe r U nit
D e b t S e rv ice Cov e ra g e R a tios
D S C ‐ A l l M o rtg a g e s a n d F e e s 0 .0 0 0 .0 0
F ina nc ia l R a tios
O p e ra t i n g E xp e n s e R a t i o 1 0 0%
B re a k ‐e ve n E co n o m i c O ccu p a n cy R a t i o ( a l l d e b t) 9 8%
INCOME:
EXPEN
SES:
Exhibit I Page 7 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 8 of 12
Notes to the Operating Pro Forma:
1. Gross Potential Rental Income is illustrated as $0 as the Applicant does not charge rental rates to the individual tenants. Instead, the Applicant receives income from multiple sources including disability and representative payee income from the Social Security Administration, residential habilitation income from APD, and charitable grants from such as the United Way of Hernando County.
2. Tenants at the Development do not pay any utility costs. As such, a utility allowance chart was not sought. The Development will consist of six one‐bedroom units and four bathrooms. Two units will share one bathroom with one spare bathroom.
3. Other Income is based upon the estimates by the Applicant with supporting documentation from the Social Security Administration, APD, and United Way which appears reasonable. Until such time as the Development is constructed and APD authorizes residents to occupy the units for which the Applicant shall house and provide supporting services, the Applicant’s estimate will be utilized.
4. A rent roll for the Development as proposed is as follows:
$06 1,158
4 193 60% $646 $0$0 $0 $646 $0 $0 $01.0 0.5 $0 $0
$0
Appraiser
Rents CU Rents
Annual Rental
Income
1.0 0.5 2 193 40% $431 $0
Low
HOME
Rents
High
HOME
Rents
Utility
Allow
RD/HUD
Cont
Rents
Net HC
Rent
Applicant
Rents
Bed
Rooms
Bath
Rooms Units
Square
Feet AMI%
Gross HC
Rent
$0 $0$0 $0 $431 $0 $0
5. The Applicant expects to be exempt from real estate taxes based upon its tax‐exempt status; however, included a $2,500 annual fire department fee that paid to the county tax collector.
6. Operating expenses are based upon estimates of the Applicant which operates similar Community Residential Homes.
Exhibit I Page 8 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 9 of 12
Development Team Applicant/Developer/ Property Manager Information Applicant Name: The ARC Nature Coast, Inc. (“ARC”) Applicant Type: A Florida 501(c)(3) not‐for‐profit corporation Ownership Structure: The Applicant is a Florida 501(c)(3) not‐for‐profit corporation with
approximately 33 employees and a 12‐member Board of Directors. Contact Person: Mark Barry Executive Director mbarry@thearc‐naturecoast.org Telephone: (352) 544‐2322 Ext 103 Applicant Address: 5255 Neff Lake Road Brooksville, FL 34601 Federal Employer ID: 23‐7305830 Experience: The Applicant, formerly known as the Hernando Association for Retarded
Children, Inc., was founded February 7, 1973 for the purpose of providing individually tailored quality support and advocacy to persons with disabilities and their families in order to promote their self‐determination and inclusion in community life. ARC has operated Community Residential Homes licensed by the Florida APD, in Hernando County since 1991. Mark Barry, Executive Director, has been with ARC since 1992 and has over 33 years of experience with developmental disability services in Florida. ARC will self‐manage the Development.
Financial Statements: AmeriNational received and reviewed the following financial statement: ARC September 30, 2013 (Audited) Cash and Cash Equivalents $ Total Assets $ Total Liabilities $ Total Net Assets $ The financial information is based upon financial statements audited on
December 5, 2013 by King & Walker, CPAs. Cash & Cash Equivalents consists of unrestricted cash. Assets primarily consist of property and equipment. Liabilities primarily consist of notes payable. ARC is a 501(c)(3) tax‐exempt not‐for‐profit organization. A 2011 and 2012 U.S. Tax Return for an
Exhibit I Page 9 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 10 of 12
organization exempt from Income Tax (Form 990) were provided. The 2012 Form 990 is for a period commencing October 1, 2012 and concluding September 1, 2013. Therefore, a 2013 Form 990 is not available.
Banking References: AmeriNational received several bank statements dated February 2014
reflecting deposits in the low six‐figures. Credit Evaluation: A Dun & Bradstreet Business Information Report (“D&B”) was performed on
June 2, 2014. The D&B report indicates a ”moderate” risk of late payments based upon 29 payment experiences which is a limited amount. No other derogatory information was provided.
Contingent Liabilities: The Applicant reports that it is contingently liable for a Spring Hill, Florida
education center constructed in 2011 for an unpaid principal balance of $521,666 and a $120,000 line of credit on a Brooksville, Florida day campus.
Statement of Financial and Credit Affairs: The Applicant provided an executed Statement of Financial and Credit Affairs
effective as of March 24, 2014 that illustrates the Applicant does not have any pending litigation, unsatisfied judgments, bankruptcies, foreclosures, deferred principal or interest payments, or instances of loan restructuring due to situations of negative cash flow.
Summary: The Applicant has considerable relevant experience and sufficient financial
capacity to construct and operate the Development.
Exhibit I Page 10 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 11 of 12
General Contractor Information General Contractor: Palmwood Construction, LLC (“General Contractor”) Type: A Florida limited liability company Contact Person: Christopher Glover [email protected] Telephone: (352)597‐2100 Address: 8245 River Country Drive Spring Hill, FL 34607 Experience: According to the General Contractor it has over 57 years relevant experience
having constructed over 3,000 homes with 10 projects currently under construction. Stuart Glover, managing member of the General Contractor, is a Florida Certified Building Contractor (license No. CBCA22129) with a license valid through August 31, 2014.
Credit Evaluation: A Dun & Bradstreet Business Information Report (“D&B”) was performed on
General Contractor on June 2, 2014. The D&B report indicates a ”moderate” risk of late payments based upon 22 payment experiences which is a limited amount. Palmwood Builders, Inc. (now known as Palmwood Construction, LLC) was a defendant in a lawsuit filed June 29, 2004 in Pasco County, Florida. According to a review of the website of the Pasco County Clerk of Courts, the status of this case illustrates that was closed. No details were provided.
Financial Statements: AmeriNational received a financial statement for the General Contractor,
which is summarized as follows: Palmwood Construction LLC December 31, 2013 (Unaudited) Cash and Cash Equivalents $ Total Assets $ Total Liabilities $ Stockholder’s Equity $ The financial information is based upon a financial statement for the most
recent fiscal year compiled by Kierzynski & Associates, CPA, PA on May 6, 2014. Assets primarily consist of inventory / work in progress. Liabilities primarily consist of draws and deposits.
Summary: The General Contractor has the requisite experience and appears to have
sufficient financial capacity to construct the Development.
Exhibit I Page 11 of 15
Mr. Ken Reecy Neff Lake Estate (2014‐139G / RFA 2013‐005) June 3, 2014 Page 12 of 12
Recommendation AmeriNational recommends the issuance of a grant of $325,000 to the Applicant for the construction financing of the Development subject to the following conditions:
1. Review and approval of all grant documentation by Florida Housing and its legal counsel.
2. Payment of all costs and fees payable to Florida Housing, its legal counsel, and AmeriNational.
3. Evidence the Applicant executed a Construction Completion Guaranty to be released at 100% lien free completion of construction.
4. On Solid Ground (“OSG”) shall serve as Florida Housing inspector during the construction phase and verify that the construction features and amenities committed to by the Applicant have been constructed, as well as any additional RFA requirements, where applicable.
5. Receipt of executed FHFC Fair Housing and ADA Design certifications Forms 121, 126, and 128, as applicable.
6. Receipt of building permits and any other necessary approvals. An acceptable alternative to this requirement is receipt and satisfactory review of a letter from the local permitting and approval authority stating that the above referenced permits and approvals will be issued upon receipt of applicable fees (with no other conditions). If a letter is provided, copies of all permits will be required as a condition of the first post‐closing draw.
7. Evidence that each condition of Grant Funding as outlined in Part II. Program Procedures and Requirements for Grant Funding of the RFA has been provided to the satisfaction of Florida Housing, its legal counsel, and its servicer.
8. Any other due diligence required by FHFC, its legal counsel or its servicer.
This recommendation is valid for six months from the date of this report. Please contact me with any questions. Thank you. Sincerely,
Michael Drapkin, Jr. VP – Chief Credit Underwriter Enclosure
Exhibit I Page 12 of 15
EXHIBIT “B” RFA 2013‐005 Financing to Build or Rehabilitate Smaller Permanent Supportive Housing
Properties for Persons with Developmental Disabilities (NEFF LAKE ESTATE / 2014‐139G)
DESCRIPTION OF FEATURES AND AMENITIES
A. The Development will consist of six bedrooms and four bathrooms
Developments that are Adding to the Supply of Units that Serve Persons with Developmental Disabilities, whether through new construction and/or Rehabilitation must meet the following requirements:
(1) Each resident living in a Shared Housing Unit shall have a private Bedroom with non‐
exclusive access to shared living facilities, consisting of a kitchen and a living/dining area. For every two residents in a Shared Housing Unit, there must be at least one full bathroom with a locking door;
(2) Community Residential Homes must not have more than one (1) resident per Bedroom, and no more than six (6) residents per Unit.
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 30, 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 Green Building, Accessibility, Adaptability,
Universal Design and Visitability Features: 1. Termite prevention and pest control throughout the entire affordability period; and 2. A full‐size range and oven in all Units. All new construction Developments must include the green building features listed below, as appropriate: 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;
3. Energy Star qualified refrigerator;
Exhibit I Page 13 of 15
EXHIBIT “B” RFA 2013‐005 Financing to Build or Rehabilitate Smaller Permanent Supportive Housing
Properties for Persons with Developmental Disabilities (NEFF LAKE ESTATE / 2014‐139G)
DESCRIPTION OF FEATURES AND AMENITIES
4. Energy Star qualified dishwasher;
5. Energy Star qualified washing machine, if provided;
6. Energy Star qualified exhaust fans in all bathrooms; and
7. Minimum SEER of 14 for air conditioners.
D. All New Construction units must provide the following Accessibility, Adaptability, Universal Design and Visitability Features listed below and all rehabilitation and/or renovation developments are strongly encourage to incorporate 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. A minimum of 50 percent of the total Units shall be fully accessible in accordance with the
2010 ADA Standards for Accessible Design. These fully accessible Units shall provide mobility features that comply with the residential dwelling Units provision of the 2010 ADA Standards for Accessible Design. At least one of the total Units shall be accessible to persons with visual and hearing impairments in accordance with the 2010 ADA Standards for Accessible Design. The Unit(s) that is accessible to persons with visual and hearing impairments shall comply with the communication features described for Residential Dwelling Units with Communication Features in the 2010 ADA Standards for Accessible Design.
2. Primary entrance door shall have a threshold with no more than a ½‐inch rise;
3. All door handles on primary entrance door and interior doors must have lever handles;
4. Lever handles on all bathroom faucets and kitchen sink faucets;
5. Toilets must be 17 inches to 19 inches in height as measured from the finished floor to the
top of the toilet seat;
6. Mid‐point on light switches and thermostats shall not be more than 48 inches above finished floor level
E. 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 2013‐005:
1. Infrared auto lighting in all bedrooms and bathrooms 2. Crank‐handle windows for ease of opening from seated position
Exhibit I Page 14 of 15
EXHIBIT “B” RFA 2013‐005 Financing to Build or Rehabilitate Smaller Permanent Supportive Housing
Properties for Persons with Developmental Disabilities (NEFF LAKE ESTATE / 2014‐139G)
DESCRIPTION OF FEATURES AND AMENITIES
3. All bathrooms have zero‐entry shower stall, surrounding handle rails and adequate transfer space to a fixed shower seat
4. All bathrooms have slip resistant tiles and floor drains 5. Closets and pantries along bathrooms will have pocket doors 6. Oven door wall‐mounted, swing to be accessible from seated position 7. Refrigerator accessible from seated position 8. Anti‐scald features in kitchen and bathroom sinks 9. Reinforced bedroom ceilings to accommodate wheel chair transfer overhang equipment in
50% of bedrooms 10. Wheel chair accessible back deck and barbeque 11. Path to storage shed wheel chair accessible 12. Remote garage door opener 13. Covered portico at entry level door 14. Sprinkler system 15. Alarms throughout home
Exhibit I Page 15 of 15