Arkansas Development Finance Authority

2009 Special Multi-Family Housing Application for Additional Tax Credits,

HOME Funds, TCAP and EXCHANGE

Program Funds

www.recovery.arkansas.gov http://www.recovery.gov/

Table of Contents

Contents Page

Instructions for Submitting Applications ...................................................................... i 2009 Selection Criteria and Guidance and Procedures for the Distribution of Additional Tax Credits; HOME Funds; TCAP Funding; and Exchange Funds ..... ii Application Checklist .................................................................................................... x Applicant Self-Scoring Sheet ..................................................................................... xii

2009 SPECIAL APPLICATION

TIER SELECTION ........................................................................................................... 1 I. Development Name & Address .................................................................... 2 II. Applicant Information .................................................................................. 2 III. Partnership Information ................................................................................ 3 IV. Special Housing Needs Set-Aside ................................................................ 3 V. Development Type ....................................................................................... 4 VI. Development Information ............................................................................. 4 VII. Site Information ............................................................................................ 5 VIII. Existing Subsidies with Acquisition Developments ..................................... 5 IX. Monthly Utility Allowance Calculations ...................................................... 6 X. Development Tax Credit Rents .................................................................... 6 XI. Development Income .................................................................................... 7 XII. Annual Expense Information ........................................................................ 9 XIII. Sources of Funds - Financing ..................................................................... 12 XIV. Development Costs ..................................................................................... 13 XV. Syndication Information ............................................................................. 15 XVI. Development Timeline ............................................................................... 16 XVII. Signature Page (Additional Tax Credits/TCAP/EXCHANGE) ................. 18 XVIII. Certification (HOME Developments) ......................................................... 20

REQUIRED FORMS ................................................................................................. 21 Pro Forma (Attachment C).......................................................................................... 22 Building and Unit Designation (Attachment E) .......................................................... 23 Conflict of Interest Acknowledgement (Attachment F-1) .......................................... 24 Contract and Grant Disclosure and Certification Form (Attachment F-2) ................. 25 Multi-Family Housing Minimum Design Standards Checklist (Attachment G) ........ 27 Standard Form 424 (Attachment H) ........................................................................... 32 Affirmative Fair Housing Marketing Plan (Attachment I) ......................................... 33 Request for Taxpayer ID Number & Certification (W-9) (Attachment K) ................ 34 HUD Certification for Contracts, Grants, and Loans (Attachment L) ........................ 35 HOME Program Match Requirements (Attachment M) ............................................. 36 HOME Unite Breakdown (Attachment P) .................................................................. 37

i

INSTRUCTIONS For 2009 Special Multi-Family Housing Application

For Additional Tax Credits, HOME Funds, TCAP and Exchange Program Funds

1. SUBMIT ONE (1) SIGNED ORIGINAL AND ALL ATTACHMENTS.

• APPLICANTS REQUESTING ADDITIONAL HOME FUNDS MUST ALSO SUBMIT ONE (1) COMPLETE COPY, IN ADDITION TO THE ORIGINAL, OF THE APPLICATION AND ALL ATTACHMENTS.

ALL APPLICATIONS MUST BE SUBMITTED BY FRIDAY, JULY 31, 2009, AT 4:30 P.M.

2. Attachments:

i. Letters of Commitment from all financial sources that clearly state that the person or institution is financially committed in the amount stated. These must be submitted regardless of the letters of commitment submitted with the ORIGINAL APPLICATION.

ii. Written investor/syndicator and applicant statements as required by “2009 Selected Criteria and Guidance and Procedures for the Distribution of Additional Tax Credits; HOME Funds; TCAP Funding; and Exchange Funds”;

iii. Attachment C – Pro Forma iv. Attachment E – Building and Unit Designation v. Conflict of Interest Acknowledgement; Contract and Grant Disclosure and

Certification Form; vi. Architect/Engineer Certifications; Attachment G – “Multi-Family Housing

Minimum Design Standards Checklist”; vii. Standard Form 424;

viii. Copy of the Affirmative Marketing Plan ix. IRS Form W-9; x. HUD Certification for Contracts, Grants, Loans, and Cooperative

Agreements; SF-LLL, Disclosure of Lobbying Activities (If applicable); xi. HOME Program Match Requirements

xii. HOME Unit Breakdown

APPLYING FOR ADDITIONAL TAX CREDITS, TCAP OR EXCHANGE FUNDS

Submit Complete Application to: Multi-Family Housing Department Arkansas Development Finance Authority P.O. Box 8023 Little Rock, Arkansas 72203 Physical delivery to: 423 Main Street, Suite 500 Little Rock, Arkansas 72201

ii

3. If the applicant is not a state agency, a copy of this same information must be submitted to the

appropriate area-wide Clearinghouse. The state address is: State Clearinghouse

1515 W. 7th Street 1515 Building, Room 417

Little Rock, AR 72201 4. Also submit the entire APPLICATION by Friday, July 31, 2009, at 4:30 p.m. electronically

as a SAVED (not scanned) ADOBE® file via e-mail to: bbokony@adfa.state.ar.us 5. REQUIRED FORMAT: Place the original and, if applicable, copy of the application

and exhibits in a sufficiently sized 3-ring binder. Do not otherwise bind, staple or use Acco fasteners. Arrange the application according to Tab Numbers and information requested. If you have extra exhibits that do not fall under a specific TAB listed in the checklist, attach additional TABs starting with number 16.

6. RED HELP SIGNS are inserted in this Application with Instructions Applicable to this

Application. APPLICANTS ARE RESPONSIBLE FOR READING, KNOWING and FOLLOWING THE INSTRUCTIONS INSERTED WITH THE RED HELP SIGNS.

RETAIN A COPY OF THE FULL APPLICATION AND ATTACHMENTS

FOR YOUR FILES.

2009 SELECTION CRITERIA And

GUIDANCE AND PROCEDURES For the Distribution of

ADDITIONAL TAX CREDITS; HOME FUNDS; TCAP FUNDING; AND EXCHANGE FUNDS

Pursuant to Section 42 of the Internal Revenue Code, 26 USC § 42, the Arkansas Development Finance Authority (the “Authority”) must annually adopt a Qualified Allocation Plan (“QAP” ) that establishes selection and program criteria for the allocation of federal low-income housing tax credits from the State’s annual ceiling. On July 17, 2008, and August 21, 2008, the Board of Directors for the Authority adopted its QAP for 2009. Due to the reduction or complete loss of federal low-income housing tax credit investor equity, President Obama signed into law the American Recovery and Reinvestment Act (“ARRA), Public Law 111-5 on February 17, 2009. ARRA established two subsidy provisions to assist those developments that have been or will be awarded tax credits in 2007, 2008 and 2009. The first is the Tax Credit Assistance Program ("TCAP") which provides $20,463,053 in federal funding to Arkansas from HUD for the express purpose of providing financing to those taxpayers "awarded" low-income housing tax credits under Section 42(h) of the Internal Revenue Code (IRC) in fiscal years 2007, 2008 and 2009. The second is a grant program whereby Arkansas can elect to receive a grant of funds in an amount up to $.85 per tax credit for tax credits consisting of all unused and returned credits held by the Authority plus 40% of our 2009 state ceiling (not including disaster credits). This is referred to as the "exchange program". In addition to the stimulus funding provided by the ARRA, the Board of Directors has implemented two additional initiatives to assist existing developments in need of additional financing: 1) Pursuant to 26 USC § 42(d)(5), the Board of Directors has designated certain existing developments as difficult to develop entitling them to a 30% basis boost; and 2) provide additional tax credits to those developments in need of additional financing.

iii

Distribution of the $20,463,053 in TCAP funding must be done on a competitive basis. The Board of Directors has determined to award TCAP funding in association with the other funding sources available as indicated by the financial needs of the applicant. The following “ARKANSAS’S THREE TIER SELECTION PROCESS” and 2009 Guidance and Procedures have been approved by the Board of Directors on May 15, 2009, and June 18, 2009, respectively, for the distribution of TCAP funds and Exchange Program funds.

ARKANSAS’S THREE TIER SELECTION PROCESS

2006, 2007 and 2008 ALLOCATION RECIPIENTS:

1. TIER ONE – INITIALLY CONSIDER TO ALLOCATE UNUSED, RETURNED AND AS NEEDED 2009 TAX CREDITS

a. Additional Tax Credits Only. Per the Board's directive of December, 2008, staff will allocate/reserve additional tax credits to those 2006, 2007 and 2008 owners that have not been issued IRS Forms 8609.

b. Application will be by submission of a 2009 Special Application to include updated financial commitment letters and an updated Pro Forma, Attachment C. Applicants must meet the minimum debt coverage ratio of 1.10.

c. Application must be submitted by Friday, July 31, 2009, at 4:30 p.m. d. Additional tax credits must be purchased at no less than $.50 per additional tax credit

requested. Recipients of additional tax credits will not be eligible to return any tax credits allocated or reserved by ADFA for the purpose of receiving TCAP funds or an Exchange/Subaward.

e. Pursuant to Section 42, eligibility for additional tax credits is determined as follows: i. If development buildings placed in service in 2009, or will place in service in 2010,

and credit eligibility has increased due to 9% credit percentage requirement of Section 3002 of P.L. 110-289 and 30% basis boost per Board directive of January, 15, 2009 (available for new buildings only).

ii. After building's 1st tax credit year and only if the LIHTC qualified basis has increased by virtue of increase in number of LIHTC units or LIHTC square footage. In this instance, the 2/3 rule of Section 42(f)(3) of the Internal Revenue Code. Will require Board approval to increase LIHTC units from original application.

iii. The amount of additional tax credits plus any previous allocation cannot exceed the maximum amount allowed pursuant to Section IIIA. of the 2009 Qualified Allocation Plan.

f. These developments will not be entitled to TCAP, an Exchange/Subaward, or additional HOME funds because they have not competed for these types of financing as required below.

2. TIER TWO – CONSIDERED AFTER DETERMINE AMOUNT OF CREDITS REMAINING AFTER TIER ONE

AWARDS FOR PURPOSES OF AWARDING ADDITIONAL TAX CREDITS; TCAP EXCHANGE/SUBAWARDS AND/OR ADDITIONAL HOME FUNDS.

a. Application will be by submission of a 2009 Special Application, to provide information required for the TCAP and Exchange/Subaward Programs, to include updated financial commitment letters, an updated Pro Forma, Attachment C, and, if applicable, updated Attachment G. Applicants must meet the minimum debt coverage ratio of 1.10.

b. Applications for funding will only be considered if the applicant is eligible for such funding pursuant to the American Recovery and Reinvestment Act and Section 42 of the Internal Revenue Code and if submitted by Friday, July 31, 2009, at 4:30 p.m.

c. To be eligible for TCAP funds, the applicant must retain no less than $1,000 in annual federal low-income housing tax credits, or, $10,000 in the aggregate.

d. Applications requesting TCAP funds will be based upon priority and competitive scoring as follows:

iv

i. Certification to a development timeline that verifies the development will expend 100% of the TCAP funds awarded no later than November 15, 2010 and will place in service no later than December 31, 2011. Failure to make the certifications eliminate the applicant's eligibility for funding separate from that in the applicant's ORIGINAL APPLICATION. Failure to adhere to the timelines required will result in a recapture of tax credits, TCAP or Exchange/Subaward funds, as applicable.

ii. The Final Score received with 2008 scores adjusted to match 2007 scoring criteria. (The Final Score for 2008 will be reduced by any bonus points received under Item #11 "Market Feasibility Study" as the bonus points were not available for 2007. With this reduction, the scoring criteria for 2007 and 2008 are identical); and

iii. 5 priority points to those applicants requesting additional tax credits. Additional tax credits must be purchased at no less than $.50 per additional tax credit requested. Recipients of additional tax credits will not be eligible to return any tax credits allocated or reserved by ADFA for the purpose of receiving TCAP funds or an Exchange/Subaward.

iv. In the event of a tie, the Board of Directors for the Authority will award priority based upon factors in the application such as: market need, number of affordable units; income/rent limitations; energy efficiency; and unit amenities.

v. TCAP funds will be awarded based upon the highest score as determined under this subsection.

vi. The maximum amount of the TCAP fund award will be $500,000. e. Applicants requesting the maximum amount ($500,000) of TCAP funding will be eligible

for additional HOME funds not to exceed $900,000, including any previous allocation. Recipients may use the additional HOME funds to reduce permanent debt, deferred developer fee, or other funding source in the ORIGINAL APPLICATION.

f. To be eligible for an Exchange/Subaward, the applicant must request, at a minimum, $100,000 in TCAP funding. Equity created by an Exchange/Subward can only be used to replace equity lost from the ORIGINAL APPLICATION.

g. If requesting Exchange/Subaward, applicants must provide the following: i. Written statement from most recent investor/syndicator submitted to ADFA which

indicates that the investor/syndicator has rescinded its previous equity commitment to the applicant. The written statement must reference the date and terms of the previous equity commitment rescinded and the amount rescinded. If the rescission is limited to a portion of the previous credit amount accepted and equity commitment, the investor/syndicator statement must specifically identify the amount of credits and amount of equity that remain accepted and committed;

ii. Written statement from nationally recognized investor/syndicator indicating that the investor/syndicator has been contacted by the applicant and rejected an offer to purchase any/all of the tax credits offered. The rejection must specifically identify the amount of credits offered and rejected. If the rejection is limited to a portion of the tax credits offered, the investor/syndicator statement must specifically identify the number of credits accepted for purchase and amount of equity to be paid for such purchase; and

iii. Sworn statement by the applicant that: A. In addition to the investor/syndicator identified in subsection 2g.ii above, the

applicant has contacted two additional nationally recognized investors/syndicators and they have rejected the purchase of any tax credits allocated to the applicant;

B. Each investor/syndicator contacted has made no offer/counter-offer to purchase credits allocated at any per credit price.

h. Recipients must provide official evidence, e.g., building permit, construction permit, etc. that they can begin construction within 120 days of commitment of funding. Failure to produce this evidence will result in no eligibility to receive subsidy.

v

i. Applicants must certify that the development's buildings will be placed service as required by Section 42 of the Internal Revenue Code.

3. Tier Three - 2009 APPLICANTS - CONSIDERED AFTER DETERMINE AMOUNT OF CREDITS

REMAINING AFTER TIER TWO AWARDS FOR PURPOSES OF AWARDING ADDITIONAL TAX CREDITS; TCAP AND/OR EXCHANGE/SUBAWARDS

a. Funding availability will include: i. Tax credits remaining after the 2007 and 2008 outstanding developments have been

awarded additional tax credits and Exchange/Subaward; ii. TCAP funds remaining after award to 2007 and 2008 outstanding developments

iii. Exchange funds available after award to 2007 and 2008 outstanding developments iv. HOME funds availability.

b. 2009 applicants will be scored as required under the 2009 QAP. c. 2009 applicants will be awarded remaining tax credits based upon the highest score.

Following a reservation of the tax credit award, if any TCAP, Exchange/Subaward, or HOME funds remain available, applicants will be given an opportunity to request such funding with the highest scoring development receiving priority. In the event of a tie, the Board of Directors for the Authority will award priority based upon factors in the application such as: market need, number of affordable units; income/rent limitations; energy efficiency; and unit amenities.

d. To be eligible for TCAP funds, the applicant must retain no less than $1,000 in annual federal low-income housing tax credits, or, $10,000 in the aggregate.

e. TCAP funds will be awarded based upon the following priorities: i. Certification to a development timeline that verifies the development will expend

100% of the TCAP funds awarded no later than November 15, 2010 and will place in service no later than December 31, 2011. Failure to make the certifications eliminate the applicant's eligibility for funding separate from that in the applicant's ORIGINAL APPLICATION. Failure to adhere to the timelines required will result in a recapture of tax credits, TCAP or Exchange/Subaward funds, as applicable; and

ii. The highest score as determined under subsection c. above. f. Applicants requesting the maximum amount ($500,000) of TCAP funding will be eligible

for additional HOME funds not to exceed $900,000, including any previous allocation. Recipients may use the additional HOME funds to reduce permanent debt, deferred developer fee, or other funding source in the ORIGINAL APPLICATION.

g. To be eligible for an Exchange/Subaward, the applicant must have requested, at a minimum, $100,000 in TCAP funding. Equity created by an Exchange/Subaward can only be used to replace equity lost from the ORIGINAL APPLICATION.

h. If requesting Exchange/Subaward, applicant must provide the following: i. Written statement from most recent investor/syndicator submitted to ADFA which

indicates that the investor/syndicator has rescinded its previous equity commitment to the applicant. The written statement must reference the date and terms of the previous equity commitment rescinded and the amount rescinded. If the rescission is limited to a portion of the previous credit amount accepted and equity commitment, the investor/syndicator statement must specifically identify the amount of credits and amount of equity that remain accepted and committed;

ii. Written statement from nationally recognized investor/syndicator indicating that the investor/syndicator has been contacted by the applicant and rejected an offer to purchase any/all of the tax credits offered. The rejection must specifically identify the amount of credits offered and rejected. If the rejection is limited to a portion of the tax credits offered, the investor/syndicator statement must specifically identify the number of credits accepted for purchase and amount of equity to be paid for such purchase; and

vi

iii. Sworn statement by the applicant that: A. In addition to the investor/syndicator identified in subsection 2h.ii above, the

applicant has contacted two additional nationally recognized investors/syndicators and they have rejected the purchase of any tax credits allocated to the applicant;

B. Each investor/syndicator contacted has made no offer/counter-offer to purchase credits allocated at any per credit price.

i. Recipients must provide official evidence, e.g., building permit, construction permit, etc. that they can begin construction within 120 days of commitment of funding. Failure to produce this evidence will result in no eligibility to receive subsidy.

j. Applicants must certify that the development's buildings will be placed service as required by Section 42 of the Internal Revenue Code.

Board Approval Any award made pursuant to Arkansas’s Three-Tier selection process is subject to the approval of the Board of Directors for the Arkansas Development Finance Authority. The Board of Directors has the authority to determine the amount of any additional tax credits, TCAP, Exchange/Subaward or additional HOME funds awards based upon the financial feasibility analysis of any applicant.

2009 Guidance and Procedures Tax Credit Assistance Program (“TCAP”)

• ADFA’s TCAP Application has been accepted by HUD. • $20,463,053 available for 2007, 2008 and 2009 LIHTC “awardees.” • “Awardee” defined to include those development owners publicly announced by Board of Directors as

receiving a reservation of tax credits. Does not include those development owners who returned their tax credits prior to enactment

of ARRA. • Apply by application as provided by ADFA. • Award of TCAP funding based on:

a) Certification to timeline that verifies development will expend 100% of TCAP funds no later than November 15, 2010;

b) Final Score received during original round with 2008 amended to match 2007 criteria with award to highest final score;

c) 5 points for requesting “additional” tax credits i. Total amount of tax credits to be allocated cannot exceed $600,000 or $625,000, if applicable.

ii. “Additional” tax credits do not include previously allocated credits or 2009 credits awarded or “swapped” in lieu of 2009 credits

iii. Commitment will be for at least $.50 per credit • Eligibility for TCAP:

a) 2007, 2008, and 2008 awardees b) Must retain minimum amount of $1,000 in annual federal low-income housing tax credits, or

$10,000 in the aggregate. i. Cannot be “Disaster” credits only.

ii. Can be “swapped” 2009 credits. iii. Must place in service in accordance with year of allocation of “retained” tax credits. iv. If “retain” (swap for) 2009 tax credits, required to adhere to 2009 QAP including Minimum

Design Standards – Universal Design requirements. c) Maximum amount of award is $500,000

Applicants requesting maximum amount of TCAP ($500,000) will be eligible to request additional HOME funds not to exceed $900,000.

vii

d) Applicant must provide official evidence, e.g., building permit; construction permit, that can

begin construction within 120 days of commitment of funding e) Applicant must certify that the development’s buildings will be placed in service in accordance

with Section 42 of the IRC. • Commitment and Expenditure deadlines:

a. Within 90 days of selection, the Authority will complete environmental reviews on the selected developments;

b. Within 30 days of environmental clearance, the Authority will enter into a written agreement with the recipient committing payment of the TCAP award based on the following: i. Recipient's agreement that TCAP funds will be awarded in the form of a loan, secured

by mortgage, amortized over the term of the development's affordability period as selected in the recipient's tax credit application, to be payable monthly based on one-half surplus cash (to be defined), with a balloon payment of the balance at the end of the affordability period;

ii. Recipient's agreement that a covenant binding ownership and its successors will be recorded restricting the development property by those TCAP program requirements and crosscutting federal grant requirements required by Notice CPD-09-03. Those requirements will be separately identified in the covenant;

iii. Recipient's agreement that TCAP funds may only be used for capital investment. Capital investment will be defined to mean costs included in "eligible basis" (not including 30% basis boost), except costs associated with the construction, acquisition or rehabilitation of a swimming pool(s), under Section 42 of the Internal Revenue Code;

iv. Recipient’s agreement that costs incurred or expended prior to entry of the agreement are not eligible for TCAP funding.

v. Recipient's agreement that it will not incur or expend costs for TCAP funding prior to the completion of a pre-construction conference between the recipient and the Authority and the issuance of a "Notice to Proceed" by the Authority;

vi. Recipient's agreement that it will incur or expend "eligible" costs based upon the following timeline:

A. Within 90 days of "Notice to Proceed" – 25% of TCAP award; B. Within 180 days of "Notice to Proceed" – 50% of TCAP award; C. Within 270 days of "Notice to Proceed" – 75% of TCAP award; D. No later than November 15, 2010 – 100% of TCAP award;

vii. Recipient's agreement that failure to meet the deadline requirement of subsections b(vi)(A), b(vi)(B), or b(vi)(C), above, will require the recipient to set-aside an equivalent percentage, i.e., 25%, 50%, or 75%, of its developer's fee into escrow. Said amount will be payable to the developer in equal annual payments over 15 years following placement in service of the development;

viii. Recipient's agreement that failure to meet the deadline requirement of subsection b(vi)(D), above, will result in the de-obligation, i.e. non-payment of any remaining TCAP funds, plus recapture of all TCAP funding previously awarded to the recipient;

ix. Recipient's agreement that payment of TCAP funds will be based upon a schedule set forth in the agreement after on-site inspections by the Authority and receipt of, at a minimum, the following:

A. Receipts or invoices of costs incurred or expended; B. Certification by certified public accountant that the costs incurred or

expended, as presented, constitute "eligible basis" under Section 42 of the Internal Revenue Code; and

C. Number of jobs created and retained during the period for which costs were incurred or expended; and

x. Recipient's agreement that failure to place all buildings in the development in service in accordance with Section 42 will result in the recapture of all TCAP funding awarded to the recipient.

viii

xi. Recipient’s agreement that the provisions of 26 U.S.C. § 42(h)(6)(E)(ii -- 3-year

tenant protections in event of foreclosure -- will apply to the development. • Distribution of recaptured TCAP funds.

a. Recaptured TCAP funds will be offered, in the order of the highest score, to any applicant that had previously applied for TCAP funds but did not receive the amount applied for due to a lack of TCAP funding.

b. The maximum award of $500,000 will apply to the award of recaptured TCAP funds. c. The commitment and expenditure timelines of Section b(vi) above will apply. Dependent

upon the date of recapture, the Authority will have the discretion to set timelines different from those set forth in Section b(vi) above. However, any timelines determined by the Authority will be set to ensure compliance with commitment and expenditure timelines imposed by the American Recovery and Reinvestment Act of 2009 and Section IV.C of Notice CPD-09-03.

• All commitment and expenditure timelines will be tracked and reported to HUD in IDIS Section 1602 Grants in Lieu of Tax Credits (“Exchange Program”)

• Available to developments placed in service after December 31, 2008. • Acquisition costs for existing building(s) not eligible for Exchange Subaward if placed in service

before January 1, 2009. Acquisition basis cannot include value of cash reserves

• Apply by application as provided by ADFA. • Must have requested at least $100,000 in TCAP funding

a) Which means must retain minimum amount of $1,000 in annual federal low-income housing tax credits, or $10,000 in the aggregate

b) Can be “swapped” 2009 credits • Cannot receive Exchange Subaward if allocated “additional tax credits.” • Can only be used to replace equity lost from ORIGINAL APPLICATION • Cannot exceed eligible basis costs not including 30% basis boost.

TCAP plus Exchange funds cannot exceed eligible basis costs not including 30% basis boost.

• Must place in service in accordance with year of allocation of “retained” tax credits. • Required to adhere to 2009 QAP including Minimum Design Standards – Universal Design

requirements • Applicant must provide the following:

a) Written statement from most recent investor/syndicator submitted to ADFA which indicates that the investor/syndicator has rescinded its previous equity commitment to the applicant.

b) Written statement from nationally recognized investor/syndicator indicating that the investor/syndicator has been contacted by the applicant and rejected an offer to purchase any/all of the tax credits offered.

c) Sworn statement by applicant that: i. In addition to the investor/syndicator identified above, the applicant has contacted

two additional nationally recognized investors/syndicators and they have rejected the purchase of any tax credits allocated to the applicant

ii. Each investor/syndicator contacted has made no offer/counter-offer to purchase credits allocated at any per credit price.

d) Applicant must provide official evidence, e.g., building permit; construction permit, that can begin construction within 120 days of commitment of funding

e) Applicant must certify that the development’s buildings will be placed in service in accordance with Section 42 of the IRC.

f) Subaward will be in the form of a grant payable after costs incurred or expended.

ix

• Must execute agreement with ADFA prior to disbursement that sets forth:

a) All Section 1602 program requirements; b) Section 42 requirements; c) Provides for recapture of funds when:

i. Failure to place in service in accordance with Section 42; or ii. Percentage of low-income units falls below percentage of Exchange Subaward; or

iii. Number of units falls below minimum set-aside A. No partial recapture -- All or nothing on recapture amount B. One unit out of compliance does not trigger recapture

iv. Recapture exposure amount decreases 6.67% for each full year of compliance d) Requires recipient to provide the following information prior to any payment of Exchange

Subaward: i. Name of recipient entity

ii. Name of development iii. Brief description of development iv. Location of project: city/county/State/zip code v. Number of construction jobs created

vi. Number of construction jobs retained vii. Number of non-construction created

viii. Number of non-construction jobs retained ix. Number of total housing units newly constructed x. Number of total housing units rehabilitate

xi. Number of low-income housing units newly constructed xii. Number of low-income units rehabilitated

e) Recipient's agreement that it will incur or expend "eligible" costs based upon the following timeline:

i. Within 90 days of "Notice to Proceed" – 25% of Exchange award; ii. Within 180 days of "Notice to Proceed" – 50% of Exchange award;

iii. Within 270 days of "Notice to Proceed" – 75% of Exchange award; iv. No later than November 15, 2010 – 100% of Exchange award;

f) Recipient's agreement that failure to meet the deadline requirement of subsections e(i); e(ii); e(iii), above, will require the recipient to set-aside an equivalent percentage, i.e., 25%, 50%, or 75%, of its developer's fee into escrow. Said amount will be payable to the developer in equal annual payments over 15 years following placement in service of the development;

g) Recipient's agreement that failure to meet the deadline requirement of subsection e(iv), above, will result in the de-obligation, i.e. non-payment of any remaining TCAP funds, plus recapture of all TCAP funding previously awarded to the recipient;

Must incur or expend 100% of TCAP Funds and Exchange Subaward by November 15, 2010. 2009 Applications

• Will be based upon 2009 application • Made before September 30, 2009 • 2009 applicants will be awarded tax credits remaining after the 2007 and 2008 outstanding

developments have been awarded additional tax credits and Exchange/Subaward Based upon the highest score

• Following a reservation of the tax credit award, if any TCAP, Exchange/Subaward, or HOME funds remain available, applicants will be given an opportunity to request such funding with the highest scoring development receiving priority

• Criteria for eligibility of TCAP and Exchange funds will be same as set forth above for the 2007 and 2008 awardees

x

Amendments The above guidance is subject to change as necessary to administer the TCAP and Section 1602 Grants in Lieu of Tax Credit Programs in accordance with state and federal requirements.

Board Approval Any award made pursuant to Arkansas’s Three-Tier selection process is subject to the approval of the Board of Directors for the Arkansas Development Finance Authority. The Board of Directors has the authority to determine the amount of any additional tax credits, TCAP, Exchange/Subaward or additional HOME funds requests based upon the financial feasibility analysis of any applicant.

APPLICATION CHECKLIST

2009 Multi-Family Housing Special Application. Submit one (1) original and, if also a HOME applicant, one (1) copy of the following. Place a check by each item included in the application. Put N/A next to each item that does not apply to your application. DO NOT LEAVE ANY ITEM UNMARKED. Tab No. 1. ________ Complete Application (signed and dated), including application checklist

and self-scoring sheet . 2. ________ Financial commitment letter from each funding source 3. ________ Site control information Deed Option/Purchase Contract 99-year leasehold Proof of Seller’s ownership of property, if not owned by applicant. Verification of Arm’s Length Transaction Included Rehabilitation Developments requesting acquisition credits must satisfy

IRC Section 42(d)(2)(B) by including the following for each building: Purchase Requirement documentation; 10-year hold rule documentation (including both placed in service and

most recent nonqualified substantial improvement of the building; Related party requirement documentation 4. __________ a. Written statement from most recent investor/syndicator submitted to ADFA

which indicates that the investor/syndicator has rescinded its previous equity commitment to the applicant. The written statement must reference the date and terms of the previous equity commitment rescinded and the amount rescinded. If the rescission is limited to a portion of the previous credit amount accepted and equity commitment, the investor/syndicator statement must specifically identify the amount of credits and amount of equity that remain accepted and committed; and

b. Written statement from nationally recognized investor/syndicator indicating that the investor/syndicator has been contacted by the applicant and rejected an offer to purchase any/all of the tax credits offered. The rejection must specifically identify the amount of credits offered and rejected. If the rejection is limited to a portion of the tax credits offered, the investor/syndicator statement must specifically identify the number of credits accepted for purchase and amount of equity to be paid for such purchase; and

xi

c. Sworn statement by the applicant that:

i. In additi on t o the i nvestor/syndicator identified i n Tab # 4b. above, the applicant has contacted two additional nationally recognized investors/syndicators and they have re jected the purchase of any tax credits allocated to the applicant;

ii. Each investor/syndicator contacted has made no offer/counter-offer to purchase credits allocated at any per credit price.

5. __________ Utility Allowance Calculation

6. _________ Pro Forma (Attachment C) 7. _________ Conflict of Interest Acknowledgement (Attachment F-1) Signed and Completed Contract and Grant Disclosure and Certification

Form (Attachment F-2) 8. _________ Plans & Specifications

Building and Unit Designation (Attachment E) Architect/Engineer certification that development will comply with ADFA’s

“Multi-Family Housing Minimum Design Standards” Architect/Engineer certification of compliance with applicable local, state and

national building codes, including federal and state accessibility laws. Architect/Engineer ha s com pleted "M ulti-Family Housi ng Minim um Design

Standards Checklist" (Attachment G) Additional Requirements for Rehabilitation Developments (if applicable)

___ Architect/Engineer certification of unavoidable nonconformance Architect/Engineer certification of no alternative available Applicant’s statement of implementation of alternative 9. _________ Standard Form 424 (Attachment H)

10. _________ Copy of the Affirmative Marketing Plan (Attachment I)

11. _________ Request for Taxpayer Identification Number and Certification (Form W-9)

(Attachment K) 12. _________ HUD Certification for Contracts, Grants, Loans, and Cooperative Agreements (Attachment L) If applicable, SF-LLL – Disclosure of Lobbying Activities 13. _________ HOME Program Match Requirements (Attachment M) 14. _________ HOME Unit Breakdown (Attachment P) 15. _________ Copy of general contracts, estimates or sworn statements supporting proposed

budget

Start with TAB #16 for attachments not specified above. 16. - ________

xii

QAP POINTS CRITERIA POINTS #1. Location/USDA/HUD (Maximum 15 pts.)

#2. Development of Special Needs (Maximum 15 pts.)

#3. Involves rehabilitation of existing structures (10 pts.)

#4.

Involves preservation or rehabilitation of existing affordable housing program or structures listed on National Register of Historic Places

(Maximum 10 pts.)

#5. Lowering of developer and consultant fees to 10% or less (5 pts.)

#6.

A minimum of 20% of the total residential units in the development are market rate units (5 pts.)

#7. Development provides additional amenities (Maximum 10 pts.) #8.

Development provides advanced energy efficient features (Maximum 15 pts.)

#9.

Participation of tax-exempt organization (5 pts.)

#10. Site Visit (Maximum 10 pts.)

#11. Market Need (Maximum 15 pts.)

#12.

Applicant requests HOME Funds and elects to extend affordability period: (Maximum 10 pts.)

QAP LEGISLATED PRIORITIES

#1. Serves the lowest income group (3 pts.)

#2. Extends the duration of Low-Income use (4 pts.)

#3.

QCT/Existing housing and Community Revitalization Plan

(3 pts.)

TOTAL POINTS (Maximum 130 pts.)

____

ADFA 2009 SPECIAL MULTI-FAMILY HOUSING APPLICATION LIHTC FINAL Scores Previously Received by TIER TWO APPLICANTS ONLY

______________________________________________________________ (Name of Development)

1

2009 SPECIAL MULTI-FAMILY HOUSING APPLICATION For Additional Tax Credits, HOME Funds, TCAP and Exchange Program Funds

ARKANSAS DEVELOPMENT FINANCE AUTHORITY 423 Main Street, Suite 500

Little Rock, Arkansas 72201 Phone: (501) 682-5900 Fax: (501) 682-5859

Application Date: __________________ Received by:_____________________ Date Stamp:

_________ Year of Original Allocation _________ Year Placed in Service Applicant is applying for: (check only one) _____Tier One – Additional Tax Credits Only

a. Amount of annual federal tax credits originally allocated: ___________ Applicant is requesting that original tax credit allocation

be “swapped” for 2009 federal tax credits b. Amount of additional annual federal tax credits requested: ___________

→ Total Amount of Annual Tax Credits Requested: ___________

**************************OR********************* _____Tier Two – Additional Tax Credits; HOME Funds; TCAP and/or Section 1602

Exchange Programs’ Funds a. i. Amount of annual federal tax credits originally allocated: ___________

Applicant is requesting that original tax credit allocation be “swapped” for 2009 federal tax credits

ii. Amount of additional annual federal tax credits requested: ___________

→ Total Amount of Annual Tax Credits Requested: ___________

b. i. Amount of original HOME Funds requested: ___________ ii. Amount of additional HOME funds requested: ___________

→ Total Amount of HOME Funds Requested: ___________

c. Amount of Annual Federal Tax Credits Returned: ___________

d. Amount of Annual Federal Tax Credits Retained: ___________ Applicant is requesting that “retained” federal tax credits be “swapped” for 2009 federal tax credits

e. Amount of TCAP funds requested: ___________

f. Amount of Sec. 1602 Exchange Program Funds Requested: ___________

2

I. DEVELOPMENT NAME & ADDRESS (List name under which development will do business. i.e. XYZ Apartments) Name of Development:_____________________________________________________________________ Address:___________________________________________ County:____________________________ City:______________________________________________ State:________ Zip Code:___________ Census Tract No.:_________________ Is this a Qualified Census Tract: Yes_______ No __________ Is the Development Located in: Metropolitan Statistical Area: Yes_______ No_________ Difficult to Develop Area: Yes_______ No_________ (As defined by the U.S. Department of Housing and Urban Development)

II. APPLICANT INFORMATION NAME UNDER WHICH APPLICANT DOES BUSINESS. (IF APPLICANT IS THE PARTNERSHIP/OWNER, ALSO COMPLETE PARTNERSHIP INFORMATION IN SECTION “III. PARTNERSHIP INFORMATION” BELOW.) ____ For Profit ____ Non-Profit Is this a new USDA – RD Section 515 owner? ______ Yes ______ No Name:____________________________________________________________________________________ *Contact Person:___________________________________________________________________________ Address:________________________________________ City:________________________________ State:_____________ Zip Code:_______________ Email Address:______________________________ Phone Number:__________________________ Fax Number:________________________________ *Contact person for all ADFA correspondence and contact regarding this development. Is the Applicant also the Developer? Yes_________ No________ If not, please complete the following information:

Developer (If different than the Applicant): Development Company:_____________________________________________________________________ *Contact Person:___________________________________________________________________________ Address:_________________________________________________ City:________________________ State:__________ Zip Code:_______________ Email Address:_____________________________________ Phone Number:__________________________ Fax Number:_______________________________ *Contact person for all ADFA correspondence and contact regarding this development.

U.S. State State Congressional District: _______ Senate District: _______ House District: _______

3

III. PARTNERSHIP INFORMATION: (Please note: ADFA reserves tax credits to the Partnership or its General Partner(s). Reservations are non-transferable. Any changes in General Partner Status requires a new application) ______ For Profit _______ Non-Profit LIMITED PARTNERSHIP: __________________________________________________________ Federal Tax Identification Number:____________________________________________________

NAME OF GENERAL PARTNER(S) ADDRESS/ PHONE NO. % OF OWNERSHIP

TOTAL %

NAME OF LIMITED PARTNER(S) ADDRESS/PHONE NO. % OF OWNERSHIP

TOTAL %

IV. SPECIAL HOUSING NEEDS SET-ASIDES (Please mark all that are applicable as determined in ORIGINAL APPLICATION.) Is a qualified non-profit organization, as defined in IRC § 501(c)(3) or § 501(c)(4), materially participating in the development and operation of the development throughout the compliance period ? ___________ Yes __________ No Will the development be located within one of the following twelve counties: 1) Arkansas; 2) Benton; 3) Cleburne; 4) Conway; 5) Crittenden; 6) Grant; 7) Lonoke, 8) Mississippi; 9) Phillips; 10) Pulaski; 11) Saline; or 12) Van Buren; Presidentially declared disaster areas as set forth in FEMA Declaration 1785-DR. ___________ Yes __________ No

4

V. DEVELOPMENT TYPE _____ New Construction _____ Acquisition/Rehabilitation

_____ Date of Construction Buildings constructed prior to January 1, 1978 are subject to The Lead-Based Paint Poisoning Prevention Act and the Residential Lead-Based Paint Hazard Reduction Act of 1972 and 24 C.F.R. Part 35.

VI. DEVELOPMENT INFORMATION TOTAL No. of Units:_______ No. of LIHTC Units:________ Percentage of LIHTC Units:___________ Number of units designated for Manager(s)/Employee(s) per IRS REVENUE RULE 92-61: _________ --Included in No. of LIHTC Units: Yes_________ No_________ (If yes, include in

TOTAL and LIHTC units numbered

above. If no, do not include above.)

--Included in No. of Market Rate Units: Yes_________ No________ (If yes, include only in

TOTAL units numbered above. If no, do not

include above.) Type of Construction: _______Row/Townhouse Elevator Yes_________ No_________ _______Detached Single Family Slab on Grade Yes_________ No_________ _______Garden Apartments Full Basement Yes_________ No_________ Crawl Space Yes_________ No_________ Total No. of Buildings:___________ Total No. of Stories:________________ Total No. of Parking Spaces:________ Total No. of Handicap Parking Spaces:_____________ Total Gross Floor Area for all Buildings:___________________________________ (Sq. Feet) Total Residential Floor Area:_____________ Total LIHTC Residential Floor Area: _____________ (Sq. Feet) (Sq. Feet) Recreation Facilities/Common Space (list): _________________________________________________ Commercial Facilities (list):______________________________________________________________ Type of Units: _______Multi-Family Housing ________Special Needs/Supportive Services _______Senior Housing 55 62 Other ________Single Room Occupancy _______Assisted Living ________Other: ____________________________ Targeting of Units: (If proposed development is elderly it must be housing for older persons as defined at

42 USC § 3607(b)(2) and Ark. Code Ann. § 16-123-307(d)(1).) Senior - No. of Units: ________ Family - No. of Units (3 & 4 bedrooms): ________ Handicapped - No. of Units: ________ Other:_________________ No of Units: ________

5

UNIT SIZE BREAKDOWN NO. OF

UNITS

NET Square Footageof smallest of

same bedroom size units

Average Square Footage of same

bedroom size units

AVERAGE COST PER SQ. FT.

$________________

(Include Manager/Employee Unit(s)

within applicable Bedroom Size)

Efficiency

____Bedroom(s) AVERAGE COST

PER UNIT

$_______________

____Bedroom(s)

____Bedroom(s)

____Bedroom(s) PER UNIT COST CAP AVERAGE

$_______________

TOTAL UNITS

(Including Manager/Employee Unit(s))

VII. SITE INFORMATION (Site Control Documentation must be submitted at TAB #3) Is site currently under control for the development? Yes_______ No________ If yes, control is in the form of: ______Deed ______Option ______Purchase Contract ______Other: Expiration Date of Contract or Option: _______________ (Month/Year) Has an appraisal been completed on the property? Yes_______ No________ Appraised Value of the Land and Improvements: $ Total Cost of Land: $ _____________ Exact Area of Site: ___________ (acres) Name of Seller: ________________________________________________________________ Address: _____________________________________________________________________ City:________________________ State & Zip: Phone: Is site properly zoned for your development? Yes_______ No________ (Proper zoning documentation must be submitted at TAB #7.) Are all utilities presently available to the site? Yes_______ No________ If no, which utilities need to be brought to the site? ______Electric ______Water ______Phone ______Sewer ______Gas ______Other:_____________________

VIII. EXISTING SUBSIDIES WITH ACQUISITION DEVELOPMENTS _______ Section 221(d)(3) BMIR _______ Section 521 Rental Assistance _______ Section 236 - HUD _______ Section 8 Project Based Rental Assistance _______ Section 515 - USDA Is HUD Approval for Transfer of Physical Asset Required? Yes_______ No________

6

IX. MONTHLY UTILITY ALLOWANCE CALCULATIONS

UTILITIES

Type of Utility (Gas,

Electric)

Utilities Paid By (Tenant

or Owner)

Utility Allowance/Month

Eff 1BR 2BR

3BR

4BR 5BR

Cooking

Heating

Hot Water

Lighting

Air Conditioning

Water

Sewer

Trash

Other

Total TENANT paid utility allowance

Source of Utility Allowance Calculation (Documentation must be included at TAB #5)

__ Public Housing Authority (PHA) __ Housing & Urban Development (HUD)

__ Utility Company __ Rural Development (USDA RD)

X. DEVELOPMENT TAX CREDIT RENTS: List the maximum applicable affordable housing tax credit rents for the development location:

0-BDR. 1-BDR. 2-BDR. 3-BDR. 4-BDR 30% of Area Median Income 50% of Area Median Income 60% of Area Median Income

HOME APPLICANTS ONLY COMPLETE THE FOLLOWING: Low-Income Affordability and Rent Control Period (check one) _____ 5 Years HOME Assistance/Unit <$15,000/unit _____ 10 Years HOME Assistance/Unit $15,000-$40,000/unit _____ 15 Years HOME Assistance/Unit >$40,000/unit _____ 20 Years New Construction _____ __ Years FHA Insured _____ __ Years (Other)

7

XI. DEVELOPMENT INCOME Tax Credit Units Not Supported by HOME Funds Total Number of Tax Credit Units: ____________ (DO NOT INCLUDE HOME ASSISTED UNITS – USE PAGE 11 FOR HOME ASSISTED UNITS)

# of Bedrooms

#

of Units

% Area Median Income

(30/50/60)

Proposed Monthly

Net Rent Per Unit

Monthly Utility

Allowance

Monthly Gross Rent Per Unit

Total Monthly

Income By Unit Type

Total Monthly Rental Income

Total Annual Rental Income

Units Receiving Project Based Rental Assistance: Separately indicate those units receiving project based rental

assistance which increases rents beyond LIHTC limits.

Market Rate Units Only Total Number of Market Rate Units: _____________

# of

Bedrooms

#

of Units Proposed

Monthly Rent

Total Monthly Rent

By Unit Type

Total Monthly Rental Income

Total Annual Rental Income

8

HOME Assisted Units (Fill out Low HOME Rents and High HOME Rents Sections) Low HOME Rents: Low HOME Rents - at least 20% of the rental units assisted with HOME funds must have rents no greater than the established Low HOME Rents. These are very low-income families. Low HOME Rents are defined as rents that are not greater than 30% of the adjusted gross income of a family whose income is 50% of the median income for the area (AMI), adjusted for unit size. The Proposed Rents plus the HUD Utility Allowance for the unit cannot be greater than these rent limits for each bedroom size. HUD maximum income limits can be found at ADFA's website: http://www.arkansas.gov/adfa/HOME%2008/2008%20HOME%20Program%20Income%20and%20Rent%20Limits.pdf. HUD maximum LOW HOME and HIGH HOME rents can be found at ADFA's website: http://www.arkansas.gov/adfa/HOME%2008/2008%20HOME%20Rent%20Limits.pdf

# of Bedrooms

# of

Units

% Area Median Income (30/50)

Proposed

Monthly Net Rent Per Unit

Utility

Allowance

Proposed Monthly

Gross Rent Per Unit

(cannot exceed HUD Maximum LOW

HOME rent)

Maximum

LOW HOME Rent

Total Monthly

Income By Unit Type

Units Receiving Project Based Rental Assistance: Separately indicate those units receiving project based rental assistance which increases rents beyond HOME/LIHTC limits.

Total Monthly Rental Income

Total Annual Rental Income

High HOME Rents: High HOME Rents - up to 80% of HOME-assisted rental units may have High HOME Rents. Higher HOME rents are defined as units with rents the lesser of (1) the existing Section 8 Fair Market Rents (FMR) or (2) 30% of the annual gross income of a family whose income equals 65% of the median income for the area, adjusted for unit size. Refer to the Rent Limits for your area provided in the website listed above and compare the FMR number and the 65% figure. Write the lower of these two numbers in the last column above for each bedroom size. Your Proposed Rent plus the Utility Allowance for the unit cannot be greater than this rent limit for each bedroom size.

# of

Bedrooms

# of

units

Proposed Monthly Net Rent Per Unit

Utility

Allowance

Proposed Monthly

Gross Rent Per Unit (cannot exceed HUD

Maximum HIGH rent)

Maximum HIGH

HOME Rent

Total Monthly

Income By Unit Type

Total Monthly Rental Income

Total Annual Rental Income

9

ALL APPLICANTS COMPLETE THE FOLLOWING SECTION:

Total Annual Gross Rent Income:

Tax Credit Rent Annual Gross Income

Fair Market Rent Annual Gross Income

Low HOME Rent Annual Gross Income

High HOME Rent Annual Gross Income

Additional Rent Annual Gross Income (From Additional Pages 7 - 8, if any)

TOTAL RENTAL INCOME

XII. ANNUAL EXPENSE INFORMATION Annual Expenses (Complete this section listing the annual operating expenses for all the units). Annual Development Income

1. Annual Gross Rental Income 2. Vacancy Factor of 3. Annual Effective Gross Residential Income (1 - 2) 4. Annual Laundry Income 5. Annual Vending Income 6. Annual Late Fees 7. Annual Interest Income 8. Annual Non-refundable Pet Fee 9. Interest Income-reserve 10. Lease Cancellation Fee 11. Deposit Forfeitures 12. Application Fee Income 13. Annual Other Income 14. Annual Effective Other Income (4 + 5 + 6 + 7 + 8 + 9 + 10 + 11+12+13)

Total Annual Effective Income (3+14)

Operating Expense Budget - Yearly Estimate

1. General and Administrative Advertising & Marketing __________ Management Fee __________ Percent of Effective Gross Residential Income ____ Administrative __________ Legal __________ Accounting __________ Office Supplies __________ Credit Investigations __________ Leasing Fees __________ Other __________ TOTAL ADMINISTRATIVE COSTS __________

10

2. Payroll Related Administrative Payroll __________ Maintenance Payroll __________ Workman s Compensation __________ Health Insurance __________ Payroll Taxes __________ Other Fringe benefits __________ TOTAL PAYROLL __________

3. Maintenance Decorating __________ Pool __________ Exterminating __________ Repairs __________ Security __________ Ground Expenses __________ Building Supplies __________ Other __________ TOTAL MAINTENANCE COSTS __________

4. Operating Fuel (heating and hot water) __________ Lighting & Misc. Power __________ Water/Sewer __________ Trash Removal __________ Janitorial __________ Telephone __________ Other __________ TOTAL OPERATING COSTS __________

5. Taxes and Insurance Real Estate Taxes __________ Insurance __________ Other Taxes, Licenses, Fees __________ TOTAL TAXES AND INSURANCE __________

6. TOTAL Annual Expenses: Total __________ Per Unit ________

7. Replacement Reserves _____________*

8. Net Operating Income (NOI) _____________

9. 1st Mortgage Debt Service: (Source)_____________ _____________

10. 2nd Mortgage Debt Service: (HOME Funds) _____________

11. Other Debt Service: (Source)__________________ _____________

12. Other Debt Service: (Source)__________________ _____________

13. Total Debt Service _____________

11

14. Cash Flow $_____________ 15. Total HOME Loan Amount $_____________ 16. Total TCAP Loan Amount $_____________

17. Owner Equity $_____________

Ratios

• Debt Coverage Ratio (DCR) _______________ (cannot be less than 1.10) •• Fourth year DCR as indicated on Pro Forma when HOME Loan Deferred _______________

•••HOME Loan to Value Ratio _______________%

Formulas • Net Operating Income (Item 8 above) divided by Total Debt Service (Item 13 above) =

Debt Coverage Ratio (DCR) •• When HOME Loan Deferred to Fourth year, DCR cannot be less than 1.10 ••• HOME Loan percent of development appraised value = HOME Loan to

Value Ratio Operating Reserves……………… $__________________________________*

(No less than 4 months of the sum of: (a) projected annual operating expenses,

(b) annual debt service payments and (c) annual replacement reserve deposits)

* ________________________________________________________

________________________________________________________

________________________________________________________ (Name and Address of Financial Institution Where Held)

Annual Expense/Income Information Verification _____________________________________________________________________ CERTIFIED CORRECT (Applicant or Authorized Representative) DATE ______________________________________________________________________________________________________ ADFA APPROVAL (ADFA Approval Official) DATE ________ Check if all commitment letters are enclosed from lending/financing sources

All Applicants must complete the Pro Forma, Attachment C, and attach at TAB #5.

12

XIII. SOURCE OF FUNDS – FINANCING: Financing Information: Using the following table, reproduce the Permanent Financing Information indicated at Section XXIII, pg. 16, of the ORIGINAL APPLICATION:

Following the “ 2009 Selection Criteria and Guidance and Procedures for the Distribution of Additional Tax Credits; HOME Funds; TCAP Funding and Exchange Funds, please complete the following table:

NAME OF LENDER OR SOURCE, CONTACT PERSON AND TELEPHONE NUMBER

AMOUNT OF FUNDS

INTEREST

RATE

AMORT. PERIOD

(MONTHS)

LOAN TERM

(MONTHS)

ANNUAL DEBT

SERVICE

First Mortgage %

HOME (Second Mortgage) %

Third Mortgage %

Proceeds from Federal Low-Income Housing Tax Credits

Proceeds from State Low-Income Housing Tax Credits

Proceeds from Historic Tax Credits

Deferred Developer Fee %

Other %

Totals

NAME OF LENDER OR SOURCE, CONTACT PERSON AND TELEPHONE NUMBER

AMOUNT OF FUNDS

INTEREST

RATE

AMORT. PERIOD

(MONTHS)

LOAN TERM

(MONTHS)

ANNUAL DEBT

SERVICE

First Mortgage

%

HOME (including additional request) %

Third Mortgage %

TCAP Proceeds from Federal Low-Income Housing Tax Credits

Proceeds from State Low-Income Housing Tax Credits

Proceeds from Historic Tax Credits

1602 Exchange Subaward

Deferred Developer Fee % Other (Describe)

%

Totals

13

XXIV. DEVELOPMENT COSTS

Eligible Basis by Building Type

ITEMIZED COST

COSTS*** SUPPORTED

BY HOME FUNDS

OTHER COSTS

TOTAL

ACTUAL COST

EXISTING BUILDINGS ELIGIBLE

BASIS 4% LIHTC

NEW BUILDINGS ELIGIBLE

BASIS 4% or 9% LIHTC

To Purchase Land & Buildings Purchase of Land Purchase of Existing Structures Other: Other: Site Work Site Work On-Site Infrastructure Improvement Off-Site Infrastructure Improvement Demolition Other: Rehabilitation & New Construction New Building Rehabilitation Accessory Building General Requirements ≤ 7% Contractor Overhead ≤ 4% Contractor Profit ≤ 10% Other: Other: Contingency Construction Contingency Soft Costs Contingency Other: Architectural, Engineering & Legal Fees Architect Fee – Design Architect Fee – Supervision Engineering Fees Attorney Fees Other Fees: Other Fees: Other Fees: Other Fees: Other Fees: Interim Costs Construction Insurance Construction Interest Construction Loan Origin. Fee Construction Loan Credit Enhancement

Real Estate Taxes Other: Financing Fees and Expenses Bond Premium Credit Report Permanent Loan Origin. Fee Permanent Loan Credit Enhancement

Cost of Issue/Underwriters Discount

Title and Recording Bond Counsel's Fee Other: Other: Other:

Subtotal

*** Break out HOME Fund assistance from Total Actual Cost.

14

Eligible Basis by Building Type

ITEMIZED COST COSTS*** SUPPORTED BY HOME FUNDS

OTHER COSTS

TOTAL ACTUAL

COST

EXISTING BUILDINGS ELIGIBLE

BASIS 4% LIHTC

NEW BUILDINGS ELIGIBLE

BASIS 4% or 9% LIHTC

Soft Costs Property Appraisal Market Study Environmental Report Tax Credit Fees Compliance/Monitoring Fee Lease-Up Expense & Marketing Other: Other: Syndication Costs Organizational (Partnership) Bridge Loan Fees & Expenses Tax Opinion Other: Other: Developer and Consultant Fees Developer's Fee: Developer’s Overhead: Consultant’s Fee: Other: Other: Development Reserves Replacement Reserve Operating/Lease-up Reserve Other Reserve: Other Reserve:

Subtotal

Subtotal from previous page

Total

Less portion of federal grant used to finance qualifying development cost.

List grants______________

Less amount of non-qualified non-recourse financing

Less amount of non-qualified units of higher quality

Less non-qualifying excess portion of higher quality units

Less Historic Tax Credit (Residential Portion Only)

Net Eligible Basis

30% Adjustment for high cost area (QCTs and DDAs)

Total Eligible Basis

Multiplied by the Applicable Fraction

Total Qualified Basis

Multiplied by Applicable Percentage

ANNUAL FEDERAL TAX CREDITS REQUESTED

TOTAL ANNUAL FEDERAL TAX CREDITS REQUESTED

STATE TAX CREDITS REQUESTED (20% OF FEDERAL)

15

HOME APPLICANTS: Each applicant for HOME funds will be required to meet a 12.5% non-federal matching requirement. Applicants must structure their proposals based on the 12.5% matching requirement and submit Attachment M, which is an itemization of all proposed match requirements and include in TAB #12.

Submit the following to support this proposed budget: copies of general contracts, estimates or sworn statements at TAB #14. *When used for new construction, HOME funds may be used to fund an initial operating deficit reserve, which is a reserve to meet any shortfall in development income during the period of development rent-up (not to exceed 18 months) and which may only be used to pay operating expenses, reserve for replacement payments and debt service. Any HOME funds placed in an operating deficit reserve that remain unexpended when the reserve terminates must be returned to the Authority.

XV. SYNDICATION INFORMATION (Provide information below concerning syndication and estimated proceeds from sale of Housing Credits and State Housing Credits if utilizing as source of funds) Annual allocation amounts for: Federal Low-Income Housing Credits $____________________ State Low-Income Housing Credits $____________________ Historic Rehabilitation Tax Credits $ ____________________ Total Tax Credit Equity expected to be raised: $ Type of Offering: Type of Investor: _____Public _____Individuals _____Private _____Corporations Name of Tax Credit Fund:________________________________________________________

Equity/Syndicator Entity: Name: Contact: Address: City, State, Zip Code: Phone/Fax #: / Describe when equity will be paid into the development (i.e. at time of what events) and how much will be paid in at each event:

EVENT

AMOUNT OF TAX CREDIT EQUITY PAID

TO THE DEVELOPMENT

$

$

$

$

16

HOME APPLICANTS COMPLETE THE FOLLOWING Federal Labor Standards (Davis-Bacon):

If the development to be constructed/rehabilitated contains 12 or more HOME assisted units, or if any TCAP funds are awarded the federal labor standards provisions regarding the payment of prevailing wage rates as determined by the Department of Labor apply.

Contractor Licensing:

Must have contractor licensed by State for developments over twenty thousand dollars ($20,000). (Copy of License must be included at TAB #34)

Does the general contractor have experience? Yes _______ No _______

Special Needs Populations:

Identify any development features designed to serve populations with special housing needs, including persons with disabilities, the elderly or large families (units with 3 or more bedrooms). This could include design features, occupancy preferences, etc.

Building and Energy Standards:

Describe the construction and energy standards that will be used for the development. Upon completion, all units must meet Section 8 Housing Quality Standards or local codes, if applicable. Development costs greater than $25,000/unit must meet all local codes, rehabilitation standards, zoning ordinances, and the Cost Effective Energy Standards (24 CFR Part 39). New construction developments must meet all local codes, building standards, zoning ordinances, and the Model Energy Code published by the Council of American Building Officials and the State Energy Code.

XVI. DEVELOPMENT TIMELINE Fill in completion or anticipated completion dates for all development tasks listed. Make sure the dates are realistic.

Task Completion Date

SITE/DEVELOPMENT START UP Option/Contract Site Acquisition Zoning Approval Plans and Bid Specs Site Analysis Initial Closing Closing and Transfer of Property FINANCING Construction Loan Loan Application Conditional Commitment Firm Commitment

Permanent Loan Loan Application Conditional Commitment Firm Commitment

Other Loans and Grants (Type/Source) Application Award

17

CONSTRUCTION/IMPLEMENTATION Construction Contract Awarded Pre-Construction Conference Construction starts Stage 1 completed Stage 2 completed Stage 3 completed Marketing Begins Construction Completed Occupancy/Rent-up Begins Full Occupancy Obtained Tax Credit Placed in Service Date EXPENDITURE OF FUNDS 25% 50% 75% 100%

18

XVII. SIGNATURE PAGE Additional Tax Credits/TCAP/Exchange Applicants The undersigned, hereinafter referred to as “Applicant,” is responsible for ensuring that the development represented in this Application is or will be a qualified low-income housing project as defined in Section 42 of the Internal Revenue Code and will comply with all applicable requirements of Section 42 of the Internal Revenue Code, all amendments thereto, all regulations promulgated thereunder, and all guidance published by the Internal Revenue Service, United States Department of Treasury and Department of Housing and Urban Development in the acquisition, rehabilitation, construction and operation of the Development. Applicant is responsible for the accuracy of all representations made to Arkansas Development Finance Authority (“ADFA”), the Internal Revenue Service (“IRS”), the United States Department of Treasury (“Treasury”), and the Department of Housing and Urban Development (“HUD”). Applicant must accept only the amount of federal low-income housing tax credits, Tax Credit Assistance Program (“TCAP”) funds, and Section 1602 (“Exchange”) funds to which Applicant is legally entitled under the facts and circumstances represented by Applicant. ADFA has neither responsibility nor liability for determining Applicant’s eligibility for, or extent of eligibility for, claiming any federal or state low-income housing tax credit against tax liability in any year. Applicant acknowledges that, although ADFA is Arkansas’s allocating agency for federal low-income housing tax credits and the responsible agency for award of TCAP funds and Exchange funds, ADFA is not Applicant’s legal counsel or tax advisor and has no fiduciary duty to the Applicant. Applicant certifies that in its preparation of this Application and planning of the Development represented herein, Applicant has not relied on any representation(s) made by ADFA or its agents except as set forth in ADFA’s Qualified Allocation Plan, as amended. Applicant warrants that the Development will be constructed in accordance with the representations contained in the ORIGINAL APPLICATION originally submitted for the Development, all Exhibits and Attachments to such ORIGINAL APPLICATION, this Application, and this Application’s Exhibits and Attachments. “Exhibits and Attachments” include but are not limited to the submitted Plans and Specifications and Attachment G. Any variance from such representations must be agreed to, in writing, prior to such variance, by ADFA. Applicant acknowledges that the Development must comply with the applicable Qualified Allocation Plan (“QAP”), the version of which will be determined according to the type of financing and tax credits utilized by the Development. Applicant warrants that the Development will be acquired, rehabilitated, constructed and operated in accordance with such QAP and all related guidance published by ADFA. Applicant hereby certifies that it will incur or expend One Hundred Percent (100%) of received TCAP or Exchange funds no later than November 15, 2010 and will place the development in service in accordance will all applicable Section 42 requirements. Applicant hereby makes application to ADFA for one or more of the following, as set forth in the Application: additional federal low-income housing tax credits, TCAP funds, Exchange funds, additional HOME funds. Applicant certifies that it has experience in and knowledge of all federal and state requirements of the programs for which it is applying herein. Applicant certifies that in addition to experience and knowledge of all applicable requirements under the stated programs, Applicant has the capacity to acquire, rehabilitate, construct, operate and maintain the Development in compliance with all applicable program requirements for the required affordability period. Applicant certifies that it will comply with all requirements set forth by the American Recovery and Reinvestment Act (Public Law 111-5), Notice CPD-09-03, Section 42 of the Internal Revenue Code, all Treasury notices and publications, regulations, all HUD notices and publications and all requirements set forth by ADFA. Applicant understands and agrees that Applicant has exclusive responsibility for compliance with all applicable program requirements whether or not specifically set forth in writing by ADFA. Applicant understands and agrees that, if awarded, the Development will be monitored by ADFA and noncompliance will be reported to all appropriate agencies, whether or not the requirement(s) for which the Development is found to be out of compliance were specifically set forth in writing by ADFA. Applicant accepts sole responsibility and liability for understanding and ensuring the Development’s compliance with all program requirements. Applicant understands and agrees that ADFA is neither Applicant’s legal advisor nor tax advisor and that ADFA has no fiduciary relationship with Applicant. Applicant agrees that it shall indemnify and hold harmless ADFA, its officers, agents, directors and employees against all losses, costs, damages, expenses and liabilities of whatsoever nature and kind, including but not limited to: (A) Any and all claims or losses for services rendered by any subcontractor, person or firm performing or supplying services, materials or supplies in connection with the approval or rejection, in whole or in part, of this Application; (B) Any claims or losses resulting to any person or firm injured or damaged by the erroneous, willful or negligent acts or omissions, including disregard of Federal, State, and local statutes or regulations, by Applicant, its officers, employees or subcontractors in the submission of this Application and all

19

related submitted material; (C) Any and all claims or losses arising from the Applicant’s award or lack of award of tax credits, TCAP funding, Exchange funding, construction and operation of the Development; (D) Any and all claims or losses arising from the award, distribution, monitoring and administration of tax credits, TCAP funds, and Exchange funds to Applicant for which the Department of Housing and Urban Development and/or Department of Treasury seeks repayment, damages or other compensation from ADFA including but not limited to “recapture” of TCAP and Exchange funds; (E) All attorneys’ fees and costs incurred by ADFA in defending any and all claims arising out of this Application, consideration of this Application, approval or rejection of this Application in whole or in part, disbursement of funds awarded, and administration of program requirements brought against ADFA by any person, entity or governmental body. Applicant understands and agrees that as part of the indemnification discussed above, if awarded TCAP and/or Exchange Funds, the general partner of Applicant, managing member of Applicant, or other person or entity deemed acceptable in writing by ADFA, must execute a personal guaranty and shall accordingly be personally liable in an amount equal to the full amount of TCAP and Exchange Funds awarded to Applicant; however, Applicant’s personal liability is limited in manner to the recapture of TCAP and/or Exchange Funds and corresponding indemnification of ADFA as set forth in part in the preceding paragraph. The execution of such a personal guaranty is a condition precedent to any Agreement evidencing an award, if any, of TCAP and/or Exchange Funds. Applicant warrants that the Development will not be the subject of any application for relief pursuant to Section 42(h)(6)(I) of the Internal Revenue Code, i.e., that ADFA will have no duty or obligation to present a “qualified contract” to the taxpayer or owner of the Development as contemplated in Sections 42(h)(6)(E)(i)(II) and 42(h)(6)(F) of the Internal Revenue Code. Applicant understands and agrees that if Applicant is returning tax credits as a part of a request for Exchange Funds, Applicant must fully comply with the requirements for returning federal low-income housing tax credits set forth at 26 C.F.R. §§ 1.42-14(d)(2)(iv)(C) and 14(d)(3)(i). Applicant must present a signed, written document, evidencing that Applicant is returning its allocation and the amount of the allocation that is being returned, to be executed by ADFA to reflect the mutual consent of Applicant and ADFA to the return of credits.

Applicant acknowledges that all information provided to ADFA in this Application and in connection with this Application, is public information and will not only be provided in part or in whole to agencies of the United States government but will also be subject to review by the public at any time. Applicant warrants that it will cause all necessary documents to be executed in association of an award of any funds. Applicant acknowledges that such documentation will set forth all applicable requirements which may or may not have been set forth in this Application’s instructions or ADFA’s guidance and QAP. Applicant certifies that it is solely responsible for compliance with all federal and state requirements of the applicable programs whether or not set forth in the required documentation. Applicant further agrees that ADFA is not liable for omission or misstatement of any program requirement in the documentation that Applicant will be required to execute or cause to have executed. Applicant is responsible for obtaining its own legal counsel and tax advisor counsel. The undersigned, after being duly sworn, hereby represents and certifies under oath that he or she is a duly authorized agent of the Applicant and that the foregoing statements, representations and information is true, complete and accurate to the best of his or her knowledge and belief.

_________________________________ By: __________________________________________________ Legal Name of Applicant Signed Name

Printed Name: Title:

SUBSCRIBED AND SWORN TO before me, a Notary Public, on this ____ day of _________, 2009.

My Commission Expires: __________ ___________________________________________________ [SEAL] Notary

www.recovery.arkansas.gov http://www.recovery.gov/

20

XXXI. CERTIFICATION

HOME Program Applicants

The undersigned is responsible for ensuring that the development complies with Title II of the National Affordable Housing Act of 1990, and the HOME Investment Partnerships Program regulations at 24 CFR Part 92. The undersigned is also responsible for ensuring that the development or program complies with administrative rules that the Arkansas Development Finance Authority (the “Authority”) may promulgate to govern the Program.

The undersigned hereby agrees that, to the greatest extent feasible, opportunities for training and employment arising in connection with the planning and implementation of any development under any program of the Authority shall be given to minority individuals and women.

The undersigned hereby agrees that, to the greatest extent feasible, and consistent with Arkansas and Federal Law, contracts for work to be performed in connection with any development funded by the Authority shall be made available and awarded to businesses, including but not limited to those in the fields of finance, consulting, design, architecture, marketing, construction, property management or maintenance, which are owned, in whole or in part, by minority individuals and/or women.

The undersigned hereby agrees that any development under any program of the Authority shall be affirmatively marketed and available for occupancy by all persons regardless of race, national origin, religion, creed, sex, age, handicap, or family status. The undersigned will document the actions taken to affirmatively further fair housing.

The undersigned hereby agrees that the implementation of any development under any program of the Authority shall minimize the involuntary displacement of low-income households. Your signature on this application indicates your receipt of this statement and your agreement to comply with the Authority’s non-displacement in housing policy. The undersigned further agrees to conform to the policy in every phase of the planning, implementation and operation.

Your signature will indicate your receipt of this statement and agreement to comply with the Authority’s equal employment opportunity and non-discrimination policies.

Your signature will also indicate your understanding that the Authority’s willingness to issue a commitment to you for HOME Program funds is conditioned upon your agreement to comply with these policies.

The undersigned, as an essential part of the application for allocation for HOME Program funds hereby certifies that the information contained herein is true to the best of the undersigned’s knowledge and belief. Falsification of information supplied in this application may disqualify the development for HOME Program funds. The information given by the undersigned may be subject to verification by the Authority.

The undersigned hereby agrees that the undersigned is legally able to operate in the State of Arkansas and that the undersigned is in good standing with the Arkansas Secretary of State.

The undersigned has caused this document to be duly executed in its name on this _______ day of ______________, 20____.

_________________________________ By:_____________________________________ Legal Name of Applicant Signed Name

_____________________________________ Title

21

REQUIRED FORMS

FORMS FOR ALL APPLICANTS TO COMPLETE: Pro Forma ............................................................................................. C Building and Unit Designation ............................................................. E Conflict of Interest Acknowledgement ................................................ F-1 Contract and Grant Disclosure and Certification Form ....................... F-2 Multi-Family Housing Minimum Design Standards Checklist ........... G Standard Form 424 ............................................................................... H Affirmative Fair Housing Marketing Plan ........................................... I Request for Taxpayer ID Number & Certification (W-9) .................... K HUD Certification for Contracts, Grants, and Loans ........................... L HOME Program Match Requirements ................................................. M HOME Unit Breakdown ....................................................................... P

22

ATTACHMENT C PRO FORMA

ALL APPLICANTS MUST COMPLETE THE FOLLOWING:

1. Percentage of annual effective income increase _________ 2. Percentage of annual expense increase _________

11 12 13 14 15 16 17 18 19 20 Annual Effective Income ¹

less Annual Expenses ²

less Replacement Reserves

Net Operating Income (NOI)

less 1st Mortgage Debt Service

less 2nd Mortgage Debt Service (HOME)

less Other Debt Service

less Other Debt Service

Cash Flow After Debt Service

less Deferred Developer Fee

Underwriting Cash Flow

1 2 3 4 5 6 7 8 9 10 Annual Effective Income ¹

less Annual Expenses ²

less Replacement Reserves

Net Operating Income (NOI)

less 1st Mortgage Debt Service

less 2nd Mortgage Debt Service (HOME)

less Other Debt Service

less Other Debt Service

Cash Flow After Debt Service

less Deferred Developer Fee

Underwriting Cash Flow

23

ATTACHMENT E

Building and Unit Designation

PROPOSED BUILDING ADDRESSES; UNIT & INCOME DESIGNATIONS; and APPLICABLE FRACTIONS

List the proposed address for each building in the development

# LIHTC Total # Units of Units

# of Units Based Upon % Income Restriction 30% 40% 50% 60%

Applicable Fraction

%

%

%

%

%

%

%

%

%

%

24

ATTACHMENT F-1

CONFLICT OF INTEREST ACKNOWLEDGMENT

Arkansas Development Finance Authority has adopted the following conflict of interest policy:

1. The conflict of interest provisions apply to any person(s) who is an employee, agent or officer of ADFA. Persons listed here, during their tenure or for one (1) year thereafter, are prohibited from the following:

Self-dealings to get a development funded and completed. Gaining a financial interest or benefit from the participant development. Gaining a financial interest in a contract, subcontract or agreement.

2. No officer or employee of ADFA may occupy a participating development unit.

It is the policy of ADFA to prohibit the lending of ADFA allocated funds as well as the participation in the Single Family HomeToOwn program to ADFA employees or appointed officials.

If a conflict of interest arises or is in effect as of the date of adoption of this policy, immediately disclosure by the owner, developer, sponsor, ADFA employee, agent, officer, elected/appointed official to ADFA’s President is required so that the conflict can be discussed and possibly resolved.

As the owner/developer of a participant development funded by any program administered by ADFA, I hereby agree to comply with ADFA’s Conflict of Interest Policy as stated above.

Development Name:

Signature of Owner/Developer

Printed Name of Owner/Developer

__________________________ Date

25

25

ATTACHMENT F-2

CONTRACT AND GRANT DISCLOSURE AND CERTIFICATION FORM

Failure to complete all of the following information may result in a delay in obtaining a contract, lease, purchase agreement, or grant award with any Arkansas State Agency. SUBCONTRACTOR: SUBCONTRACTOR NAME:

Yes No

IS THIS FOR:

TAXPAYER ID NAME:

Goods?

Services?

Both?

YOUR LAST NAME: FIRST NAME: M.I.:

ADDRESS:

CITY: STATE: ZIP CODE: --- COUNTRY:

AS A CONDITION OF OBTAINING, EXTENDING, AMENDING, OR RENEWING A CONTRACT, LEASE, PURCHASE AGREEMENT,

OR GRANT AWARD WITH ANY ARKANSAS STATE AGENCY, THE FOLLOWING INFORMATION MUST BE DISCLOSED:

F O R I N D I V I D U A L S * Indicate below if: you, your spouse or the brother, sister, parent, or child of you or your spouse is a current or former: member of the General Assembly, Constitutional Officer, State Board or Commission Member, or State Employee:

Position Held Mark (v)

Name of Position of Job Held [senator, representative, name of board/

commission, data entry, etc.]

For How Long? What is the person(s) name and how are they related to you? [i.e., Jane Q. Public, spouse, John Q. Public, Jr., child, etc.]

Current Former From MM/YY

To MM/YY Person’s Name(s) Relation

General Assembly

Constitutional Officer State Board or Commission Member

State Employee

None of the above applies

F O R A V E N D O R ( B U S I N E S S ) * Indicate below if any of the following persons, current or former, hold any position of control or hold any ownership interest of 10% or greater in the entity: member of the General Assembly, Constitutional Officer, State Board or Commission Member, State Employee, or the spouse, brother, sister, parent, or child of a member of the General Assembly, Constitutional Officer, State Board or Commission Member, or State Employee. Position of control means the power to direct the purchasing policies or influence the management of the entity.

Position Held Mark (v) Name of Position of Job Held

[senator, representative, name of board/commission, data entry, etc.]

For How Long? What is the person(s) name and what is his/her % of ownership interest and/or what is his/her position of control?

Current Former From MM/YY

To MM/YY Person’s Name(s) Ownership

Interest (%) Position of Control

General Assembly

Constitutional Officer State Board or Commission Member

State Employee

None of the above applies

26

ATTACHMENT F-2

Contract and Grant Disclosure and Certification Form

Failure to make any disclosure required by Governor’s Executive Order 98-04, or any violation of any rule, regulation, or policy adopted pursuant to that Order, shall be a material breach of the terms of this contract. Any contractor, whether an individual or entity, who fails to make the required disclosure or who violates any rule, regulation, or policy shall be subject to all legal remedies available to the agency.

As an additional condition of obtaining, extending, amending, or renewing a contract with a state agency I agree as follows:

1. Prior to entering into any agreement with any subcontractor, prior or subsequent to the contract date, I will require the subcontractor to

complete a CONTRACT AND GRANT DISCLOSURE AND CERTIFICATION FORM. Subcontractor shall mean any person or entity with whom I enter an agreement whereby I assign or otherwise delegate to the person or entity, for consideration, all, or any part, of the performance required of me under the terms of my contract with the state agency.

2. I will include the following language as a part of any agreement with a subcontractor:

Failure to make any disclosure required by Governor’s Executive Order 98-04, or any violation of any rule, regulation, or policy adopted pursuant to that Order, shall be a material breach of the terms of this subcontract. The party who fails to make the required disclosure or who violates any rule, regulation, or policy shall be subject to all legal remedies available to the contractor.

3. No later than ten (10) days after entering into any agreement with a subcontractor, whether prior or subsequent to the contract date, I will mail a copy of the CONTRACT AND GRANT DISCLOSURE AND CERTIFICATION FORM completed by the subcontractor and a statement containing the dollar amount of the subcontract to the state agency.

I certify under penalty of perjury, to the best of my knowledge and belief, all of the above information is true and correct and that I agree to the subcontractor disclosure conditions stated herein.

Signature___________________________________________Title____________________________Date_________________

Vendor Contact Person________________________________Title____________________________Phone No._________

Agency use only

Agency Agency Agency Contact Contract Number______ Name_______________________ Contact Person________________ Phone No.___________ or Grant No.________

27

ATTACHMENT G

MULTI-FAMILY HOUSING MINIMUM DESIGN STANDARDS CHECKLIST

The following checklist must be completed by the Arkansas licensed architect identified as a member of the development team on page 21 of the Application. The purpose of this checklist is to assist ADFA to ensure that the development is in compliance with: (1) ADFA's "Multi-Family Housing Minimum Design Standards"; (2) all applicable local, state, and national building codes; and (3) all applicable federal and state accessibility and Fair Housing laws.

EACH ITEM MUST BE MARKED. Indicate the page within the Applicant's Plans or Specifications where the required criterion is identified. For rehabilitation developments only, if an energy audit ("EA") is performed or a waiver is requested ("WR") for a particular criterion, Applicant must ensure such energy audit or waiver request conforms to the requirements of the 2009 QAP and to Sections IV(B)(5) and V of the ADFA's "Multi-Family Housing Minimum Design Standards."

T HIS CHECKLIST, ALONG WITH ANY WAIVER REQUESTED, MUST BE INCLUDED AT TAB #14 OF THE

APPLICATION.

******************************************************************************* Plans' Specifications' Page

or Page

Criterion

I. SITE SELECTION ____ Site within 100-year flood plain ____ Community participates in National Flood Insurance Program ____ Flood Insurance to be obtained throughout affordability period ____ Areas undergoing development raised at least 1' above flood plain _______

II. DRAWINGS A. SITE PLAN

____ Scale: 1" = 40 feet or larger _______

____ North arrow _______

____ Location of existing/proposed buildings, roadways, parking areas _______

____ Existing site/zoning restrictions indicated _______

____ Site topography _______

____ Finished floor height elevations _______

____ Identification of all specialty apartments units _______

____ Site accessibility design _______

B. FLOOR PLANS ____ Scale: ¼" = l foot or larger _______

____ Rehabilitation developments – changes to existing structure shown _______

____ Room/space layout identifying each finished room/space _______

____ Gross sq. footage and net sq. footage for each type unit identified _______

____ Lead paint /asbestos removal procedures and location _______

C. ELEVATIONS AND SECTIONS FOR NEW CONSTRUCTION ____ Scale: 1/8" = 1 foot or larger _______

____ Building elevations for all sides of each building _______

____ Identifies materials used on building exteriors and foundations _______

III. OUTLINE SPECIFICATIONS

____ Provides brief description of each specification as required

28

Plans' Specifications'

Page

or Page

IV. BUILDING DESIGN

A. GENERAL BUILDING STANDARDS 1. Community Laundry

____ 1 washer and 1 dryer for every 10 units in the development _______

____ 1 washer and 1 dryer per 15 units-washer and dryer connections _______

____ 1 washer and 1 dryer in development – washer and dryer furnished _______

2. Senior or Assisted Living

____ All units located at grade level or on elevator accessible floor _______

3. Access road, parking spaces, curbing, and sidewalks

____ Continuous asphalt or concrete paved access road _______

____ Family – 7 spaces for every 4 units, inclusive of handicap spaces _______

____ Senior – 5 spaces for every 4 units, inclusive of handicap spaces _______

____ All parking areas must be asphalt or concrete _______

____ All paved areas are concrete curbed _______

____ All driveways on single-family detached homes must be concrete _______

____ Sidewalk access to all parking spaces must be provided _______

____ All sidewalks and walkways must be concrete and = 5 feet wide _______

4. Single Family Detached Units

____ At least 3 bedrooms with 2 bathrooms and attached single car garage _______

B. MINIMUM BUILDING STANDARDS

1. Minimum Unit Net Area Requirements

____ Not applicable because development is:

RD or

Existing rental units or

Assisted Living

2. Exterior Building Standards

a. Exterior covering - new construction ____ Brick _______

____ Vinyl siding _______

____ .042" minimum thickness _______

____ 50 year transferable warranty _______

____ Cementitious siding _______

____ 8" brick or decorative block apron _______

b. ____ Vinyl or aluminum prefinished fascia and vented soffit _______

c. Entry doors

____ Metal-clad wood or hollow metal construction _______

____ Peephole(s) _______

____ Dead bolt locks with interior "thumb latch" _______

____ 34" minimum clear opening width _______

____ Sliding glass doors are prohibited _______

Unit Type Number of Bathrooms

Minimum Unit Net Area*

Minimum Bedroom Net Area

1 bedroom 1 750 sq. ft. 120 sq. ft.

2 bedroom 1.5 950 sq. ft. 120 sq. ft.

3 bedroom 2 1150 sq. ft. 120 sq. ft.

4 bedroom 2 1300 sq. ft. 120 sq. ft.

*Unit areas do not include outside storage, covered porches, patios, balconies, etc.

29

Plans' Specifications'

Page

or Page

d. Roofing materials

____ Anti-fungal _______

____ 235 seal tab shingles _______

____ 15 lb. or greater felt paper _______

____ Metal roof with a minimum 25-year warranty _______

e. Gutters and downspouts

____ 5" gutter _______

____ 2"x3" downspouts _______

____ Concrete splash blocks or piped to appropriate drain _______

f. ____ Roof gable vents made of aluminum or vinyl _______

g. ____ Attics must be vented _______

h. Primary entries ____ Breezeway or minimum roof covering of 5' deep by 5' wide _______

____ Entry pads of 5' by 5' with minimum slope of ¼ " per foot _______

i. ____ Breezeways functioning as fire exits constructed of concrete _______

j. ____ Exterior shutters because 100% vinyl siding building(s) _______

k. ____ Exterior stairway, porch and patio components made of non-combustible materials _______

l. ____ Exterior lighting exists at all entry doors _______

m. Landscaping ____ All disturbed areas are sodded _______

____ 12 one-gallon shrubs and one 1½ " tree for every 2 units _______

____ A development sign with Fair Housing logo _______

____ At least one enclosed dumpster _______

3. Interior Building and Space Standards

a. Kitchen Spaces ____ Each unit equipped with readily accessible dry chemical

fire extinguisher _______

____ New cabinets have dual sidetrack drawers _______

____ A 1'6" x 1'6" deep with 5 shelve minimum pantry closet _______

b. Bathroom Spaces ____ Tub/shower units are 30" width by 60" length minimum _______

____ Senior and Assisted Living – equipped with anti-scald valves _______

____ Water closets centered 18" from sidewalls/vanities _______

c. ____ Hallways have minimum of 36" width _______

d. ____ Interior doors intended for passage have minimum clear opening with of 34” _______

e. ____ Overhead lighting is in each room _______

f. ____ Hard-wired, battery backed smoke detector per floor of unit _______

g. ____ A carbon monoxide detector in each unit that utilizes gas _______

30

Plans' Specifications' Page or Page

4. HVAC Units and Water Heaters (WHs) a. ____ Not located in attic spaces _______ b. ____ Located in mechanical closets with insulated walls _______ c. ____ Gas WHs located in individual, separate mechanical closet _______ d. ____ WHs placed in drain pans that are plumbed to outside _______ e. ____ HVAC refrigeration lines are insulated _______

5. Energy Efficient Systems, Insulation and Equipment a. ____ Ceiling fans installed in each bedroom and living room _______ b. ____ Shower heads flow rate ≤ 2.5 gallon per minute _______ c. ____ Hot water pipes wrapped with ½ " insulation _______ d. ____ Water piping in attic or exterior walls is insulated _______ e. ____ Fluorescent light fixtures in kitchen, bathrooms and utility _______ f. ____ Exterior wall insulation with minimum R-16 rating _______ g. ____ Roof or attic insulation with minimum R-38 rating _______ h. ____ Exterior house wrap (e.g. TYVEK) installed _______ i. ____ Sound proofing with ≥ STC 54 rating in common/party walls and ceilings _______ j. ____ Gas or oil heated systems AFUE rating ≥ 90% with a minimum 13 SEER rated air conditioning system _______ k. ____ Heat pump systems HSPF rating ≥ 7.8 with a minimum 13 SEER rated air conditioning system _______ l. Windows with: ____ (i) frames and sashes constructed of wood, vinyl-clad wood,

or extruded vinyl; ____ (ii) 2 or more panes of argon gas filled insulated glass,

at least one pane with Low-Emission (Low-E) coating; ____ (iii) U-Factor ≤ 0.41 _______

6. Universal Design a. ____ 7% of all residential units comply with the Level 5,

“All-Inclusive” usability criteria in “Arkansas Usability Standards in Housing: Guidance Manual for Constructing

Inclusive Functional Dwellings” (AUSH) (http://www.studioaid.org. Under “Design” click on “standards”) _______ b. ____ All Level 5, “All-Inclusive” units under AUSH have at least one bathroom with an “accessible roll-in” shower facility with minimum dimensions of 60” x 34” or 42” x 42” if a corner shower _______ c. ____ All ground level residential units and residential units with elevator access comply with Level 1, “Visitable” usability criteria under AUSH _______ d. ____ ALL residential units have “closed-fist” operability throughout the unit, e.g.,

____ (i) single handle door levers vs. doorknobs; _______ ____ (ii) push stick lighting and environmental controls; _______ ____ (iii) cabinet doors can be opened with a closed fist; _______ ____ (iv) single handle faucets in bathroom and kitchen _______ e. ____ ALL residential units have environmental controls with visual and tactile cues. For lighting, a “rocker” type switch is sufficient. For thermostats, programmable and digital with raised buttons is required. _______

31

List owner provided amenities and advanced energy efficiency features for which Applicant seeks points pursuant to Subsections VII.A.7., p. 20 and VII.A.8., page 21, of the 2009 QAP.

Amenity Description

Plans' Specifications'

Page

or Page

1. _______

2. _______

3. _______

4. _______

5. _______

6. _______

7. _______ _____________

8. _______

9. _______

10. _______

11. _______

12. _______

Advanced Energy Feature Description

Plans' Specifications' Page

or Page

1. _______

2. _______

3. _______

4. _______

5. _______

6. _______

7. _______

8. _______

9. _______

10. _______

11. _______

12. _______

I, ____________________________, in my capacity as _______________________________________ of (Name) (Title/Position with Architect-Development Team Member)

_________________________________________________________ state that I have reviewed the above (Architect-Development Team Member)

Attachment G, "Multi-Family Housing Minimum Design Standards Checklist", and certify as to the accuracy of its contents.

Date: _________________________

(Signature)

(Printed/Typed Name)

32

ATTACHMENT H STANDARD FORM 424

This form is available on ADFA’s website at:

http://www.arkansas.gov/adfa/New_Folder/authority_publications.htm

Under HOME PROGRAM, select item #33: Standard Form 424

33

ATTACHMENT I AFFIRMATIVE FAIR HOUSING MARKETING PLAN

This form is available on ADFA’s website at:

http://www.arkansas.gov/adfa/New_Folder/authority_publications.htm

Under HOME PROGRAM, select item #35: Affirmative Fair Housing Marketing Plan Multi-Family

34

ATTACHMENT K REQUEST FOR TAXPAYER ID NUMBER & CERTIFICATION

(IRS FORM W-9)

This form is available on the Internal Revenue’s website at:

http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3

35

ATTACHMENT L

To comply with the provisions of 24 CFR Part 87, all TCAP recipients must submit the following certification:

Certification for Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that:

(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

(2) If any funds other than Federal appropriated funds have been paid or will be paid to any

person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form–LLL, ‘‘Disclosure Form to Report Lobbying,’’ in accordance with its instructions.

(3) The undersigned shall require that the language of this certification be included in the award

documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

Date: _________________ By: ________________________________ Signed Name ________________________________ Printed Name ________________________________ Title

36

ATTACHMENT M

HOME PROGRAM MATCH FORM

Part I: Participant Information

Organization Name:

Organization Address:

Person Completing Form: Telephone Number:

Reporting Period: Starting: Ending: Date Submitted:

Part II: Match Contribution 1. HOME Project

No. 2. Date of

Contribution

3. Cash (nonfederal)

(sources)

4. Foregone Taxes, Fees,

Charges

5. Appraisal Land/Real Property

6.Required Infrastructure

7.Site Preparation, Construction Materials,

Donated Labor

8.Bond Financing

9.Total Match

GRAND TOTAL MATCH:

37

ATTACHMENT P

HOME UNIT BREAKDOWN

For All HOME Applicants

Describe the proposed development including number, size, and if applicable, age and condition of units. Other development amenities should also be described. Describe the role of each activity undertaken by the developer, owner, applicant, etc. (Attach extra sheet)

TYPE OF UNIT NUMBER UNITS CURRENTLY

NUMBER UNITS AFTER COMPLETION

NUMBER HOME ASSISTED UNITS

Number of units reserved for households equal to or less than 50% of the county median income, adjusted for family size. (At least 20% of the HOME-assisted units must be reserved tenants at 50% county median income.)

Number of units initially reserved for households between 50%-60% of the county median income, adjusted for family size.

Number of market rate units for households.

Total Residential Units

Summary: Total number of units _______ Total number of HOME assisted units _____ Floating ______ or Fixed _______