HomeMy WebLinkAbout10-11-2018 Housing and Community Development CommissionAgenda
Housing & Community Development
Commission (HCDC)
Thursday, October 11, 2018
6:30 P.M.
Senior Center, Room 202
28 S. Linn Street, Iowa City
Use the Washington Street entrance or
2nd floor skywalk via Tower Place parking garage
1. Call meeting to order
2. Approval of the September 20, 2018 minutes*
3. Public comment of items not on the agenda
4. Review CDBG projects without agreements**
5. Consider recommendation to City Council regarding commitment of local funds
to proposed Low Income Housing Tax Credit projects*
6. Consider amendments to FY2016-2020 CITY STEPS**
7. Initial discussion of FY20 Aid to Agencies Submittals
8. Staff/commission comment
9. Adjournment*
* Indicates Action Item
**Indicates Possible Action Item
If you will need disability -related accommodations to participate in this program or event, please
contact Kirk Lehmann at kirk-lehmann(4dowa-city.org or 319-356-5230. Early requests are strongly
encouraged to allow sufficient time to meet your access needs.
r
�- -4 CITY OF IOWA CITY
MEMORANDUM
CITY OF IOWA CITY
Date: October 5, 2018
To: Housing and Community Development Commission (HCDC)
From: Neighborhood Service Staff
Re: October 11, 2018 meeting
The following is a short description of the agenda items. If you have any questions about the
agenda, or if you are unable to attend the meeting, please contact Kirk Lehmann at 319-356-
5247 or Kirk-Lehmann@Iowa-City.ora.
Item 4. Review CDBG projects without agreements**
The City's Unsuccessful or Delayed Projects Policy requires CDBG subrecipients who have
not entered a formal agreement by September 30 to report to HCDC. HCDC will determine
whether extenuating circumstance exist, and if so, whether the project is anticipated to
proceed. HCDC may recommend the recapture and re -use of funds to City Council. For FY19,
one CDBG project has not yet signed a formal agreement for the use of funds: Arthur Street
Healthy Life Center (public facility rehab to create a health clinic).
Item 5. Consider recommendation to City Council regarding commitment of local
funds to proposed Low Income Housing Tax Credit projects *
One proposal is attached for your reference. To summarize, the following table provides basic
information about the proposal.
Project
NEX Apartments
IC Housing Group
Planning District Northeast
Units
Affordable
Market Rate
Rezoning Required
Project cost
City funds requested
Target demographic
Sidewalk access
Transit Service
Walking distance to elem.
36 _
32 = 4 (30°/a), 11 (40% , 17 (60%)
Yes
$8,437,281
$200,000
General occupancy, single heads of households
with children, families/ individuals of color,
single men and women
Yes
No
1.1 miles
Item 6: Consider amendments to FY2016-2020 CITY STEPS**
Each year the City is required to consider amendments to the adopted Consolidated Plan
(CITY STEPS). Included in the packet is a summary of input gathered at two events. Staff
does not propose any amendments at this time.
Item 7. Initial discussion of FY20 Aid to Agencies Applications
FY20 Aid to Agency applications are available online at www.icgov.org/actionplan. At
this meeting, HCDC will discuss initial thoughts related to FY20 applications.
Applications requiring additional questions will be identified for next meeting. Funding
recommendations and completed ranking sheets are not needed for this meeting, and no
action will be taken.
Item 8: Staff/Commission Comment
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
September 20, 2018 — 6:30 PM
SENIOR CENTER, ASSEMBLY ROOM
PRELIMINARY
MEMBERS PRESENT: Megan Alter, Mitch Brouse, Charlie Eastham, Christine Harms, John
McKinstry, Maria Padron and Paula Vaughan
MEMBERS ABSENT: Bob Lamkins, Vanessa Fixmer-Oraiz
STAFF PRESENT: Kirk Lehmann, Erika Kubly, Steve Rackis
OTHERS PRESENT: Sara Barron
RECOMMENDATIONS TO CITY COUNCIL:
By a vote of 7-0 the Commission recommends amendments to the Iowa City Housing Authority's Housing
Choice Voucher Program Administrative Plan.
CALL MEETING TO ORDER:
Vaughn called the meeting to order at 6:30 PM.
APPROVAL OF THE JULY 20, 2018 MINUTES:
Eastham moved to approve the minutes of July 20, 2018. Harms seconded the motion. A vote was
taken and the motion passed 7-0-
PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA:
SARA BARRON TO PRESENT ON THE AFFORDABLE HOUSING COALITION:
Sara Barron (Executive Director, Johnson County Affordable Housing Coalition) was asked to present
about the Affordable Housing Coalition and what services it might be able to provide the Commission.
She first thought she would talk about the racial equity question but saw on today's agenda that HCDC
will discuss what an outstanding example of a racial equity assessment can look like for a proposed
policy. Instead, Barron said she would discuss what the Coalition is, their mission, and services. She will
answer why the Affordable Housing Coalition exists though there are so many housing groups in the
area, and specifically how the Coalition benefits groups like HCDC and the City. The Affordable Housing
Coalition is a 501(c)(3) nonprofit focused on advocacy, education, partnership and policy development.
The mission of the Coalition is to provide or create affordable housing opportunities for people in Johnson
County, particularly those who are at 80% of the median income or below. Barron noted it can be
confusing because there are many housing organizations, but the Coalition does not provide housing and
rather focuses on community education, community advocacy, and partnership development. For
example, the Coalition produced a video that features residents and other members of the community
about the value of affordable housing and the impact it has on individual households and the community.
Housing and Community Development Commission
September 20, 2018
Page 2 of 11
That video is an example of how any one housing provider might not have the time or resources to create
it, but as a coalition they put their resources together to create larger scale community advocacy
resources. Barron also noted she attends Planning & Zoning and HCDC meetings both in Iowa City and
Coralville because few housing providers and residents can attend all these meetings, so she works as
an advocate to gather and share information and to see the big picture of housing throughout Johnson
County. They look for not only gaps in housing, but gaps in knowledge, and making sure that knowledge
gets disseminated to the broader community. Barron shared the example of a recent League of Women
Voters forum where City Council candidates were asked a question about affordable housing options and
what the City could do to help stimulate more housing opportunities for people at or below 30% of the
area median income; several candidates didn't know discriminating against people who have a Housing
Choice Voucher is not allowed in Iowa City because they did not know that Council made it a protected
class. That is why the Coalition wants to make sure that information is available to people in addition to
changing attitudes about affordable housing. Attitudes have already changed, people talk about
affordable housing and are generally supportive of it which wasn't the case 10 years ago. The next step
is to take that support of affordable housing and translate that into support for people living in affordable
housing throughout the community. There are always people who say they support affordable housing,
but then don't want it down the street from them, so the Coalition is educating the community on why and
how affordable housing can be safe and appropriate throughout the community and how it benefits
everyone. Barron stated the Coalition has an advocacy and policy development piece, but it is looking
with a broader view, noting there are many groups in the area that have a tremendous knowledge of
housing issues (City Staff, City Councilors, Housing Trust Fund, Shelter House, The Housing Fellowship,
etc.). The Coalition is not going to be impacted if a specific funding decision is being made, or if a
specific policy is made that privileges one type of housing over another, so they can look at the general
impact and not be too tied to the outcome. Their goal is to bring all the stakeholders of the community
together and join forces to move forward together. Barron next discussed how the Coalition might be
helpful to HCDC. First the Coalition pays attention to what is happening throughout Johnson County, and
if one municipal makes a housing decision, it can look at impacts on neighboring communities. If Iowa
City has lots of restrictions for example, the Coalition can explore if people will just go to another city.
Therefore the Coalition is working in neighboring communities to make the same types of advancements
Iowa City is doing in an effort to make all communities favorable for residents who need affordable
housing. Currently Barron is putting together a survey for business owners to see what employer's needs
and thoughts are regarding housing options, and the impact for them to attract and retain workers.
Coralville for example has built a significant amount of their economy around the service industry which
are low wage jobs, so are their housing options for those workers. Barron noted it is important to
remember there are many ways affordable housing affects people as well as businesses and employers.
The Coalition can also assist the Commission promote news about new housing policies and options the
City is doing. The Coalition is a membership organization, everyone is welcome to join, either as an
individual or as an organization, and they represent around 100 different organizations and individuals
throughout the community ranging from banks to cities to faith organizations to service clubs, etc. Barron
noted one of her goals is this year to work more on the connection to the residents themselves.
Eastham stated a measure of success on providing affordable housing is the number of families who are
not housing cost burdened (that is, who spend less than 30% of their income on housing expenses), and
a way to reduce cost burden without creating new or replacing homes is providing other assistance.
Eastham asked what the Coalition thinks. Barron stated two things impact whether someone can afford
their housing: the cost of the housing and household income. Therefore, the Coalition is paying attention
to discussions about minimum wage because one way to make sure people can afford their housing is to
raise wages as well as creating more rental assistance. Barron noted the Coalition represents a diverse
number of members, so it can be difficult to come to consensus about what the favorite strategies should
be. But what they can do is provide information about lots of different strategies, noting things that have
been successful in other places, talk about the implementation of ideas, share information and provide
support to those doing the affordable housing work in the communities. The Coalition is open to
proposals that would provide additional rental assistance, but it has not yet signed off on a specific
proposal they would stand behind 100%.
Housing and Community Development Commission
September 20, 2018
Page 3 of 11
Barron did want to say one thing about racial equity and how people's access to affordable housing looks
very different depending on who they are in the community and the search for affordable housing for a
single mom with three kids is very different than the search for a person with a disability, someone without
documentation, someone that comes from a family who has never been a homeowner, all people who
may need affordable housing but coming from different circumstances. This can create potential threats
to one's ability to achieve affordable housing. Barron noted that homeownership for black families is now
as low as it was when the Fair Housing Act was created 50 years ago, there has been no progress made
in eliminating the gap of white homeownership and black homeownership in the United States.
Barron thanks HCDC and shared brochures and membership applications with HCDC as well as a letter
that describes some of the things the Coalition accomplished in the last year.
CONSIDERATION OF AMENDMENTS TO THE IOWA CITY HOUSING AUTHORITY'S HOUSING
CHOICE VOUCHER PROGRAM ADMINISTRATIVE PLAN:
Rackis stated the City is proposing these changes because when the Local Homeless Coordinating
Board first started strategic planning a couple years ago, one item that came out was how to address a
Housing First project. The original name of the project was FUSE for Frequent Users, serving the
chronically homeless. These are homeless people with diagnosed disabilities, the hardest of hardest to
serve in the population. Rackis was on the FUSE steering committee and when the idea of providing
vouchers was raised, he suggested implementing a secondary preference for targeted admission
because it would administratively be the easiest way. However, National Housing Trust Fund regulations
account for projects that have tenant based vouchers, like the City's Housing Choice Voucher, and
project based vouchers, like Ecumenical Towers, Capital House and Pheasant Ridge. Once the
legislation was finalized, a project with project based vouchers could charge rents up to the HUD
published fair market rents, but if they were tenant based vouchers, they had to use rents established
under the National Housing Trust Fund legislation. Cross Park Place will have 24 units one -bedroom
units; the 2019 fair market rent for a one -bedroom unit is $684, but under the National Housing Trust
Fund rules, if a project has tenant based vouchers the maximum rent they can charge is $380. The City
already committed to tenant based vouchers with what they are calling a secondary preference as all
these individuals would be disabled which is part of the primary preference category. The City tried to
make that work with the Iowa Finance Authority but it did not. Therefore Rackis is before HCDC to modify
the City's Administrative Plan to allow the Iowa City Housing Authority to project base a portion of the
tenant based vouchers. This will not create additional vouchers (they have 1,215 Housing Choice
Vouchers) but will rather allow project based vouchers at Cross Park Place which permits higher rents
and therefore higher subsidy from the Housing Authority, ensuring better cash flow for that project. The
project needs to maintain a healthy income flow as it will be used to pay for the services that will be
available to residents housed in Cross Park Place. Rackis noted that services will not be mandatory for
the residents, but will still be needed. This modification is the City reacting to the realities of the National
Housing Trust Fund legislation and finding a solution that allows better cash flow for the project. This
project meets many of HUD's priorities in how it funds Continuum of Care initiatives, which is now focused
on homeless prevention, rapid rehousing and permanent supportive housing rather than shelter and
transitional housing. Rackis said this amendment allows the City to do the project based vouchers and to
provide a vehicle that can quickly provide support to homeless and disabled persons found eligible by the
Continuum of Care coordinated entry, the hardest to serve population.
Rackis noted the second part of the amendment clarifies what they have been doing, formerly called
special admissions, which is a secondary or targeted preference. All City preference categories are
weighted, with the elderly, disabled, and families with children under the age of 18 who live or work in
their jurisdiction weighted as the highest preference category. When the City takes people on the waiting
list that is who they are typically taking. By clarifying and making minor changes to the secondary
targeted preference, it opens it up to anyone coming out of the Continuum of Care coordinated entry for
those who meet the definition of homeless and disabled. The determination will be up to Shelter House
and other partners, but once decided it allows the City to provide vouchers more quickly.
Harms asked for more clarification about benefits of the Iowa City Housing Authority's PBV program and
how families secure units where it might be hard to use vouchers. Rackis said that benefit is from the
Housing and Community Development Commission
September 20, 2018
Page 4 of 11
HUD handbook for project based vouchers and the Housing Authority stresses housing choice as a
priority, believes in scattered site housing, and does not want to create programs that concentrate
housing. Project based vouchers can concentrate housing, so they looked at the hard to serve homeless
population; but if there is a low-income housing tax credit project, the Housing Authority may want to
partner. The Housing Authority has two ways to partner with project based vouchers, they can issue an
RFP and take bids, or they can select a project that has gone through a competitive bid process. Shelter
House went through a competitive process with the Iowa Finance Authority, so the City was able to select
them for project based vouchers. If the City wants to sponsor a project in a neighborhood that has higher
rents and that otherwise our population of tenants and families cannot get into, the City can find a
developer to work with and create a project based project in that neighborhood. That is the benefit to
help families secure units in areas where it might otherwise be hard to use vouchers.
Eastham asked if the Iowa Finance Authority, in their awarding process, take away points from awarding
funds for project based voucher projects. Rackis said it changes, it can be based on the percentage of
project based vouchers proposed or simply if there are project based vouchers, points are awarded or if
none than no points awarded.
Eastham asked if it was possible for the Housing Authority to change a project based voucher to a tenant
based voucher. Rackis stated the Iowa Finance Authority was concerned about tenant based vouchers
because after the 12 month lease expires, the tenant can just leave, so what happens to that voucher.
Rackis explained that the City has a waiting list for vouchers and if someone leaves and gives up their
voucher then the next person/family on the list gets the voucher. Rackis added with project based
vouchers, if an individual or family in good standing with the landlord and Housing Authority requests to
move with continued assistance after the completion of a year lease, they must be issued a tenant based
voucher and allowed move. So in reality tenant based and project based vouchers work the same in
these types of projects.
Eastham asked if the City would stick with the 100 project based vouchers or would that number change.
Rackis said the amount will be 5% of the total 1,215 vouchers, which is around 60, that at any given time
could support two project based voucher projects. Eastham asked if this change would result in fewer
vouchers being used because a project based voucher may be used for a unit that is not rented out 6
months out of the year or so. Rackis replied that with a project based voucher if someone moves out and
the unit is vacant, no housing assistance payment is made until another tenant is in that unit. However
they can continue to pay on a vacant unit for an additional month while they are looking for a new tenant
to fill the space. That would not be done for a tenant based voucher, the voucher would leave with the
tenant. Rackis added this year they received more funds from HUD than previous years and the
communication coming from Congress states they intend to keep the funds at this level so he does not
feel there is any need for concern for the tenant based vouchers.
Brouse asked how they transition tenant based vouchers into project based and are there enough vouchers
in each program. Rackis said in the case of Cross Park Place, there are 24 units so there will be 24
vouchers committed. If somebody gets to the point where they leave Cross Park Place for other supported
or permanent housing, they will convert from a project based to a tenant based voucher and Cross Park
Place will then refill that unit and the City will give Cross Park Place another project based voucher. The
project based vouchers will also be on a one year cycle with renewal so they are treated administratively the
same as tenant based vouchers. He noted there is always turnover in the voucher system.
McKinstry moved to recommend to City Council amendments to the Iowa City Housing Authority's
Housing Choice Voucher Program Administrative Plan, Eastham seconded. A vote was taken and
the motion passed 7-0.
TENTATIVE SCHEDULE OF HCDC MONITORING UPDATES IN FY19:
Lehmann stated that for projects that HCDC funds, the City likes to have organizations come to a meeting
and update HCDC on their projects. Lehmann created this tentative schedule for monitoring updates:
November 15
0 Little Creations Academy, FY18 Daycare Rehab
Housing and Community Development Commission
September 20, 2018
Page 5 of 11
• Crisis Center, FY18 Food Bank Rehab
• Neighborhood Centers of Johnson County
o FY19 Aid to Agencies
o FY19 Siding Improvement
• Successful Living
o FY18 Rental Acquisition
o FY18 Rental Rehab
o FY19 Rental Acquisition
January 17
• Domestic Violence Intervention Program, FY19 Aid to Agencies
• Shelter House
o FY17 FUSE land acquisition and construction
o FY19 Aid to Agencies
o FY19 Rental Acquisition
• The Housing Fellowship
o FY17, FY18, and FY19 Rental Rehab
o FY19 Rental Acquisition
o FY19 CHDO Operating
Habitat for Humanity
o FY17 Property acquisition and construction on N. Governor Street
o FY18 Property acquisition and construction on Blazing Star Drive
o FY19 Property acquisition and construction of 2 homes on Blazing Star Drive
February 21
• Mayor's Youth Empowerment Program, FY19 Rental Acquisition
• Prelude, FY19 Transitional Housing Improvements
• Arthur Street Healthy Life Center, FY19 Clinic Rehab
• 4Cs, FY19 Daycare Technical Assistance
March 21
• City of Iowa City
o FY17 Tenant Based Rental Assistance
o FY18 and FY19 Park Improvements
o FY18 and FY19 Homeowner Rehab
o FY19 South District Investment Partnership
Lehmann will invite the organizations to either submit a written update of the project or to come to the
meeting and present.
UPDATE ON ANNUAL INPUT FOR THE 2016-2020 CITY STEPS CONSOLIDATED PLAN:
Kubly stated each year Staff solicits input regarding the five-year CITY STEPS Consolidated Plan, the
goal is to get input from actual residents rather than service providers and work with local nonprofits to
meet people and get that input. Next week Staff will go to a Housing Authority voucher briefing meeting
which will have residents present who are trying to get on the voucher program. Then on October 6 Staff
will attend the Center for Worker Justice meeting and will solicit input there as well. The goal is to see if
the findings are consistent with the goals of the CITY STEPS Plan and if there is a significant change, the
plan can be amended.
Housing and Community Development Commission
September 20, 2018
Page 6 of 11
UPDATE ON RACIAL EQUITY ANALYSIS FOR THE SOUTH DISTRICT INVESTMENT
PARTNERSHIP:
Kubly noted the City was allocated $100,000 in HOME Funds to rehab and sell four duplex units on
Taylor and Davis Streets as owner -occupied, HCDC had some concerns about the racial impact that may
have. Staff utilized the City's Equity Toolkit to look at that along with soliciting guidance from the Human
Rights Equity office.
The first question in the Toolkit is who is affected. Kubly said she focused on racial and ethnic equity for
this report rather than looking at income. She began by looking at census blocks as close to Taylor and
Davis Streets as possible. The census data is from 2010 because anything newer covers broader areas.
This data shows blacks or African Americans comprise 35% of the population in the Taylor/Davis area
whereas it is only around 6% in all of Iowa City. Additionally, the Hispanic population is higher in the
Taylor/Davis area than in the rest of Iowa City. Kubly also looked at the housing stock and rental permits
in that area and a large percentage of the Taylor/Davis area has duplexes with rental permits. There are
96 total parcels in that area with 188 units, and 168 of those are rentals (89%). Converting four units to
homeownership through the HOME project would reduce the rentals to 86% of units.
Next Kubly looked at housing tenure based on race, changes in assessed values in the neighborhood,
and the use of housing choice vouchers in the area. Those results are noted in the report in HCDC's
agenda packets. Kubly stated the next step was to conduct neighborhood outreach and they attended a
South District Neighborhood Meeting in July, though it wasn't well -attended with only three residents
present, none of whom live on Taylor or Davis Streets. Due to the low attendance, Tracy Hightshoe (NDS
Director) and Henry Harper (Community Outreach Assistant) did a neighborhood walk-through to talk to
residents. The question posed to the residents as they walked the neighborhood was: Which of the two
housing activities would neighbors prefer? 1) Rental rehabilitation where the City would work with the
landlord to remodel/make repairs to homes and the City would require that the landlord couldn't raise
rents for a specific period of time, or 2) Homeownership where the City would buy two duplexes (4
homes), make repairs/remodel and sell the homes at approximately what it takes to rent the homes — goal
would be about $850/month if possible. Six preferred homeownership, two preferred rental and two were
okay with either, they were just happy the City was investing in their neighborhood.
After data was collected, staff did the analysis in the Toolkit and identified African Americans, Hispanics,
low income residents, and renters as potentially disproportionately affected populations. Per the Toolkit,
staff identified affordable homeownership possibilities and neighborhood improvements (housing quality,
fewer housing code violations, reduced police calls and nuisance complaints, increased property values)
as potential positive impacts. Staff identified displacement of current residents or residents no longer
being able to afford to live in the neighborhood as potential negative impacts. From that analysis, staff
developed recommendations to mitigate negative impacts and enhance positive impacts. These included
limiting tenant displacement by acquiring vacant properties; providing relocation assistance to displaced
tenants (per HOME requirements); giving current residents of the South District preference in purchasing
the homes; fostering partnerships with Habitat, Horizons, or related agencies for homeowner education
opportunities; continuing to work with Henry Harper for ongoing communication with neighborhood
residents; looking for additional opportunities for future investment in the neighborhood; and reviewing the
Equity Toolkit prior to undertaking any additional phase of the South District Partnership in the future.
Harms noted if these four rentals are turned into four owner -occupied homes, the rental percentage would
fall from 89% to 86% and wondered if the City has a goal of percentage of rentals. Kubly said there is no
specific goal set and rather take an incremental approach and see how this goes or identify if there is
more interest in homeownership opportunities. She noted they would not do more than 35% in the
neighborhood to ensure/preserve affordable rental options.
Alter asked if any preliminary data was collected on adjacent streets in that area and the percentage of
homeowners or property values in those areas. Kubly said they did not review that data. Eastham stated
when he reviewed the data earlier his opinion is Taylor and Davis have a much higher percentage of
rental permits than any of the surrounding areas. Lehmann directed them to the map of rental permits for
that area and it is significant in the Taylor/Davis area.
Housing and Community Development Commission
September 20, 2018
Page 7 of 11
Eastham directed to section S.II.132 of the report to the table labeled Douglass Court Neighborhood
Assessed Values and the discussion of a similar program that was done in the Douglass Court/Douglass
Street neighborhood where assessed values increased. Eastham does not believe that table proves
there was an increase in assessed values by this program, it is misleading, and the percentage of
increase for the assessed values for the properties in the Douglass Court area between 2011 and 2018 is
actually less than 2% per year which is close to the average increase throughout the City. Lehmann
noted perhaps it should show it stabilized assessments more so than increased them. Eastham said the
table should also so the comparison to the overall City's assessed values as the decline between 2006
and 2011 included the housing crisis time period. Kubly said they will revise the table.
Eastham also noted that in the report section Stage III.A Worksheet it shows potential positive impact and
neighborhood improvements and that is a general statement and doesn't refer to specific properties so he
doesn't understand how these four homes will aid in improving housing quality, fewer housing code
violations and fewer police calls at those four homes. Kubly said the impact is intended to be on the
neighborhood in general, not just those four properties. Eastham believes it is speculative. Brouse noted
that the goals of these programs often go beyond just the properties directly affected.
McKinstry asked if the City is collecting information on this neighborhood anyway, not just for this
analysis. Kubly said yes, they can track all this data, and they can find specific data on those four
properties with regards to housing code violations and police calls. She said they are working with the
Police Department to identify the problem properties, however the City cannot just acquire a property that
is not for sale, but having the information is helpful.
Eastham noted this area is tricky, they are dealing with an area that is primarily African American so he
asks that City Staff be very careful and deliberate about what they are saying about what the conditions
are now and what the conditions would be if this project moves forward.
Vaughn noted that four units may not make a difference regarding the number of police calls in a
neighborhood and it may take more units than that before an actual change was seen. McKinstry agreed
but noted at least there is a baseline for data. Lehmann noted this is part of a broader neighborhood
stabilization project and the benefit is not only on the four units that are changing from rental to owner -
occupied, there is a larger impact to gain. Kubly noted with project they are targeting units where the
mortgage would be comparable to the fair market rents to make it affordable homeownership. Eastham
noted the people in this area are predominately black and therefore the preference for the home
ownership should state the buyers will be black residents. Lehmann said that may not be possible, the
City attorney would have to be consulted. Alter noted that can be achieved by giving preference to the
residents of the neighborhood without stating a race preference since many residents in the
neighborhood are of one race.
Vaughn asked how the City will find the buyers for these homes once converted from rentals. Kubly said
that will come with communication with the neighborhood association and residents. And the priority
would be for residents already in the South District, which encompasses more than just Taylor and Davis
Streets.
Padron noted that the City can prioritize residents in the neighborhood but what if none of them want to
buy a house or qualify then it has to be available for others.
Harms asked if there was a possibility of someone buying the units and turning them into rentals.
Lehmann said it must be the buyer's primary residence and any sale within 10 years would have to be
approved by the City for an income qualified buyer.
Eastham asked about the Douglass Court/Douglass Street UniverCity project and how converting those
rentals into owner -occupied affect the racial equity in that neighborhood. Kubly did not have that data
readily available.
McKinstry thanked the Staff for gathering this data and presenting it, he is supportive of the transition of
rentals to owner -occupied and feels the impacts on racial equity will be seen after the project is complete.
Housing and Community Development Commission
September 20, 2018
Page 8 of 11
Harms asked if there are any other rental units the might possibility be available to be bought by the City
and transitioned to owner -occupied. Kubly said they are going to look at a unit next week, she is not sure
of the address, but before they move forward on any other units they want to make sure there is a
positive outcome on this particular project.
INTRODUCTION TO THE ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING
Lehmann shared with the Commission a presentation on the Fair Housing Study, what the study is, what
it entails and how the City plans to carry it out. The City strives to affirmatively further fair housing, which
is also a legal requirement as the City is the recipient of federal funds. However, fair housing does not just
apply to those items funded by federal funds but by any activity of the City. Affirmatively furthering fair
housing means the City has to take meaningful actions over historical patterns of segregation, promote
fair housing choice and strive to foster inclusive communities free from discrimination.
Fair housing means one has the right to choose housing free from discrimination and for housing
protections are stronger than for other categories such as credit or employment. In Iowa City, there are
more housing protections than are federally required and what the State requires, for example public
assistance as a source of income is a protected class in Iowa City in addition to age, disability, color,
race, marital or family status in addition to other. These protections extend to owners, renters, and even
includes those seeking financing or insurance for housing.
This Fair Housing Study will update one completed in 2014, the City tries to update it every five years,
and it will look at all barriers to fair housing, not just zoning laws, public regulations and policies the City
uses but also the private market (landlords, banks, insurance companies). The Study also looks at the
availability of affordable housing and range of unit sizes because that is an important component to fair
housing choices. Staff intends to complete this study by May 2019 so it can inform the update to the
Consolidated Plan the next year.
Lehmann noted when this study was conducted last year, five major barriers were identified. The
following are those barriers and what the City has done to address them, which is also reported to HUD:
1. Racial and ethnic concentrations in Iowa City. The City is trying to disperse affordable housing
throughout the city to avoid concentrations and since FY15 they have created 397 new affordable
units dispersed throughout the community; the Affordable Housing Location Model helps disperse
certain kinds of housing throughout the City by preventing concentrations of units-
2- The Affordable Housing Location Model disperses affordable housing but can reduce where new
affordable housing can be made. In 2017 HCDC and Council revised the Model and decreased
the areas in which affordable housing was restricted and this will continue to be an ongoing
conversation-
3- African American and Hispanic individuals may experience unfair treatment in home mortgage
loan denials and high -cost loans. This came up initially based on denial rates so the Office of
Equity and Human Rights reviewed the lending data with more detail and information than the
City originally had; their analysis showed banks classify any kind of loan not moving forward as a
denial, so there is an inflated percentage of denials for some of these groups and the Office of
Equity and Human Rights didn't find the same discrepancies as at first identified-
4- Barriers to mobility and free housing choice for protected classes and persons of low income.
This is the reason public assistance as a source of income (Housing Choice Voucher receipients)
became a protected class. Since that change, the City has seen 92 new landlords accept
Housing Choice Vouchers and there is less turnover of vouchers as people search for housing.
The City has also started surveying voucher holders about their experience using the program-
5- Fair housing violations go unreported either because there is a lack of confidence something will
change or someone doesn't know they are a protected class and there is some form of
discrimination going on. The City tries to do public education and make sure landlords are aware
of what are and are not violations, trying to ensure tenants know what their rights are and
publishing those things in multiple languages, and auditing sites for discriminatory ads.
Housing and Community Development Commission
September 20, 2018
Page 9 of 11
The City is starting the process and is collecting data, they have not begun analyzing data yet as they
want to also get some public input to find information. They are meeting with stakeholder groups, so far
the local Homeless Coordinating Board, and they are reaching out to landlords, realtors, home builders,
apartment owners, they attended a Job Fair to talk with people trying to find jobs, and will host a public
meeting on September 27. Lehmann noted there will also be a survey, so efforts are both broad and
targeted to experts. Once data is collected and analyzed, they will begin drafting the report and receiving
feedback. The timeline is to have an initial draft in February with a final draft in April and May.
Eastham noted that if this Commission is going to be making a recommendation to Council regarding this
study he hopes to see the document before May in order to have sufficient time to review. Lehmann
agreed and noted the Commission will be reviewing the document through the multiple drafts.
Lehmann asked the Commission their first blush feedback, any initial thoughts on what the City should
first examine, and what are barriers to fair housing the Commission sees. Lehmann encourages the
Commission to send him any comments.
Vaughn suggested Lehmann email the Commission the documentation thus far so they can review and
think about possible ideas and suggestions.
Eastham noted that he feels zoning has been a barrier to affordable housing but does feel in the past
couple years the Zoning Commission has not denied many multifamily zoning requests.
Padron noted that many of people who are opposed to affordable housing in their neighborhoods have
are very vocal with a good command of English and can prepare elaborate arguments whereas other
constituents may not have a way to attend Council meetings or be able to speak in public, so perhaps the
City can work for find a way to help those constituents be able to express their feelings and concerns.
McKinstry noted a report that was in the paper a few months ago about Hills Bank having a higher rate of
loan denials in Hispanic and Black applicants. McKinstry talked to Tim Feener at Hills Bank, and
suggests Lehmann talk to him as well, and he explained how the process of reporting is discretionary and
a lot of banks don't report denials on cases where people are have not even completed the application
process, and Hills Bank does report that even through it is not that the bank denied the loan, it is the
customer halting the procedures. Eastham added perhaps banks will deny people before any application
process is started and therefore there is no paper trail and no reporting.
Lehmann noted the public kickoff event for this study will be September 27 from 530 to 7:00 pm at the
Assembly Room at the Senior Center and encourages the Commission to attend.
CONSIDER APPROVAL OF THE FY18 CONSOLIDATED ANNUAL PERFORMANCE &EVALUATION
REPORT (CAPER)* — ONLINE AT www.icgov.org/actioni)lan
Lehmann shared with the Commission a revised PR26 report which is included as an appendix to the
CAPER to show the HUD income match what the City says because they are different standards of
accounting, accrual versus cash basis. The CAPER is a report that shows what the City has
accomplished in the past year and what projects from FY18 or earlier progressed or were completed.
Lehmann focused his report to the Commission on the summary tables in the report, first showed the
goals established in the Consolidated Plan which all funding decisions must meet. The table shows many
goals were modest, 90 homeowner units rehabilitated, 5 households having direct homeowner
assistance, and so forth; it also shows progress towards the goals and given what they expect in FY19
the City should reach its goals. The only category where it is unlikely to reach the goal is to Remove Slum
and Blight, initially the City was doing fagade programs for businesses downtown and there has been a
step back from that. There is still talk of doing fagade programs downtown but will not be funded through
CDBG funds. Not only are we reporting the number of organizations we fund each year, we report the
number of individuals we are assisting. The second table looks at specific projects from FY18, where
they stand, what is complete, what still needs to be completed. Many projects are done, especially those
for public facility and public service projects, affordable housing projects take longer to progress. The
Housing and Community Development Commission
September 20, 2018
Page 10 of 11
next table reports projects completed during FY18 by HOME and CDBG funds, regardless of the fiscal
year the project was awarded and the other table shows the projects that are still underway as of the end
of FY18.
Lehmann noted the Race and Ethnicity Composition table shows that about 36% of the households the
City assists are black or African American, about 47% are white, about 9% are Hispanic. Eastham asked
if the statistics in that table are for projects that are only assisted with HOME or CDBG funds. Lehmann
confirmed it was and showed only the projects completed in that particular fiscal year. He added public
facility projects like with the Crisis Center helps many people so it inflates the numbers somewhat.
The next table shows the resources available, in FY18 there were less new resources available, there
were some holdover funds which will be expended this upcoming fiscal year.
Eastham inquired if it was possible just to get a simple table to show for affordable housing the number of
beneficiaries that actually reduced cost burden. Lehmann stated cost burden is not reported in the
CAPER but it could be if it fits within the HUD structure of the report. Cost burden could be examined.
Alter moved to approve and submit to HUD the FY18 Consolidated Annual Performance &
Evaluation Report (CAPER), Eastham seconded the motion. A vote was taken and passed 7-0
STAFF/COMMISSION COMMENT:
Lehmann noted the next meeting is October 11 and will be looking at one LITHC application and CDBG
projects that don't have agreements. There may be a Consolidated Plan Amendment if an update is
needed, and the FY20 Aid to Agencies applications have been received so those will be sent out for
review. There is an affordable housing memo being drafted to show the progress the City has made in all
its affordable housing programs and that will be shared with the Commission. The Affordable Housing
Location Model memo is being forwarded to Council along with the South District Partnership Equity
Review.
ADJOURNMENT:
Eastham moved to adjourn. Brouse seconded. Passed 7-0.
Housing and Community Development Commission
September 20, 2018
Page 11 of 11
Housing and Community
Development Commission
Attendance Record
Name
Terms Exp.
7/10
9/20
Alter, Megan
7/1/21
X
X
Brouse, Mitch
7/1/21
X
X
Eastham, Charlie
7/1/20
X
X
Fixmer-Oraiz, Vanessa
7/1/20
X
O/E
Harms, Christine
7/1/19
X
X
Lamkins, Bob
7/1/19
O/E
O/E
McKinstry, John
7/1/17
X
X
Padron, Maria
7/1/20
X
X
Vaughan, Paula
7/1/19
X
X
• Resigned from Commission
Key:
X = Present
O = Absent
O/E = Absent/Excused
--- = Vacant
Agency
FY20 United Way
FY20 Iowa City
FY20 Coralville
4 Cs Community Coordinated Child Care
$35,000
$20,000
$3,000
Abbe Center for Community Mental Health
$30,000
Arc of Southeast Iowa
$50,000
$20,000
$5,000
Big Brothers Big Sisters of Johnson County
$50,000
$25,000
$6,500
Coralville Community Food Pantry
$16,000
$22,500
Crisis Center of Johnson County
$141,716
$66,000
$16,280
Domestic Violence Intervention Program
$74,550
$50,000
$6,000
Elder Services Inc.
$50,000
$40,000
$5,000
Free Lunch Program
$17,000
$16,000
Geriatric & Special Needs Dental Program
$10,000
Goodwill of the Heartland
$35,000
HACAP
$30,000
$25,000
$15,000
Handicare Inc.
$30,000
Healthy Kids School -Based Health Clinics
$80,000
Hillcrest Family Services
$10,000
Housing Fellowship
$50,000
Housing Trust Fund of Johnson County (HTFJC)
$30,000
$25,000
ICCSD Family Resource Centers
$30,000
Inside Out Reentry Community
$30,000
$30,000
Iowa City Free Medical Clinic/Dick Parrott Free Dental Clinic
$120,000
$17,500
$5,500
Iowa Legal Aid
$40,000
Iowa Valley Habitat for Humanity
$25,000
$25,000
$25,000
Joan Buxton School Children's Aid
$15,000
Johnson County Visiting Nurse Association
$70,000
National Alliance on Mental Illness of Johnson County
$10,000
Neighborhood Centers of Johnson County
$130,000
$55,000
$1,500
North Liberty Community Pantry
$40,000
Pathways Adult Day Health Center/ Aging Services, Inc.
$60,000
$25,000
$5,000
Prelude Behavioral Services
$40,000
$20,000
$2,000
Rape Victim Advocacy Program
$35,000
$23,000
$9,000
Shelter House
$85,000
$85,000
$17,500
Table to Table
$49,000
$20,000
$6,500
United Action for Youth
$80,000
$33,000
$5,000
Total
$1,508,266
$605,500
$241,280
Proposal for Housing Trust Fund of
Johnson County
for Revolving Loan Program
NEX Apartments
September 14, 2018
Iowa City, Iowa
4*11";Uw
,S
Housing Trust Fund of Johnson County
Revolving Loan Fund Application
(Please remain within the given format of the application. Page layout may not be changed, but pages may be attached,)
Date: September 12, 2018 Project Name: NEX Apartments (Iowa City)
Type of Project and Number of Units
(Please indicate the number of each type of unit)
_ Development of Owner -Occupied Housing
X Development of Transitional/Rental Housing
Development of Emergency Shelter
Homeowner Assistance (Downpayment, etc.)
Other — Describe:
Lead Applicant Information
Rehab of Owner -Occupied Housing
Rehab of Transitional/Rental Housing
Rehab of Emergency Shelter
Name: IC Housing Group, LLC Federal Tax ID#: 8Z-33 850
Contact Person: Jamie Thelen Signatur�e��"
Title: Secretary/Treasurer Phone um per: 320-202-3100
Fax Number: 320-202-3139 E-mail Address: JJThelen((DSandCompanies.com
Address: 366 South Tenth Avenue, PO Box 727, Waite Park. MN 56387
Legal representative: Winthrop & Weinstine
Email: ipeterson(a)winthrop.com Phone number:
Organization Type of Lead Applicant (check one)
Community Housing Development Organization
Private Non-profit Organization
X Private For -profit Organization
Public Organization
Individual or Partnership Applicant
'-►Type of partnership
Funds Requested
Status
Total Amount Requested: $ $450,000 (from HTFJCI & $200,000 (from Iowa City)
Terms Requested (Must provide sufficient supporting information to comply with said terms)
Proposed repayment terms: 1% interest, 17-vear term, 35-vear amortization, outstanding
principal repaid in full at end of year 17
(Loan Requests Only, Elaborate on any unique circumstances)
Proposed term of affordability: 30 years compliance period through IFA's LIHTC Program
(Length of time income will be monitored)
Project Name: NEXApartments Project Neighborhood: NIA
Project Address / Street Boundaries: Herbert Hoover Highway, east of Eastbury Drive
Wet» 111111 [NeU IIIIII
Describe the applicant's mission, programs and years in existence. Provide a description of its experience with other
projects. Identify staff members who will be involved with the project. Include their past experience and their role in this
project. Attach list of Board Members and their occupations.
IC Housing Group, LLC (ICHG), combined with its managing member (SCI Associates, LLC) and
individual members, has over 20 years of experience as a low-income housing tax credit developer
with more than 25 projects completed to date consisting of over 1,500 units. ICHG works with Sand
Architects, LLC, Sand Construction, LLC and Sand Property Management, LLC (Sand) to design,
construct and manage its properties. Sand is a fully integrated real estate development company
with almost 25 years of experience. Recently, SCI Associates, LLC completed multiple LIHTC
projects in St. Paul, MN, St. Michael, MN and Dayton, MN, and Coralville, IA. Jamie Thelen, Megan
Carr and Nikki Sand will all be leading the development of this community. Jamie has almost 20
years, Nikki has been over 8 years and Megan has over 4 years of low income housing tax credit
development experience. Together the development team analyzes and determines the financials
and projections for the projects, works with local city and county government officials, local groups
and neighborhoods to determine the building and community design, arranges and solidifies financing
and brings the project to closing, and then finally works with the teams through construction and into
management to ensure a smooth transition and full lease -up of the community. During the
compliance period, our teams work together to ensure compliance and other requirements are met
for all financing sources. Attached are the Board Members and their occupations.
II. IDENTIFICATION OF PROJECT TEAM
Please provide complete relevant contact information, as applicable, for members of the overall project team such as
the Developer, General Partner, General Contractor, Architect, Property Management, etc. Complete as fully as
possible given the project team may not be fully formed.
Developer
St. Michael Development Group, LLC
366 South 101h Avenue, PO Box 727
Waite Park, MN 56387
Owner
IC Housing Group, LLC
366 South 101h Avenue, PO Box 727
Waite Park, MN 56387
Managing Members
IC Housing Partners, LLC
366 South 101h Avenue, PO Box 727
Waite Park, MN 56387
2
Belisle Development, LLC
12315 Heather Avenue North
Hugo, MN 55038
General Contractor
Sand Construction, LLC
366 South 101h Avenue, PO Box 727
Waite Park, MN 56387
Architect
Sand Architects, LLC
366 South 101h Avenue, PO Box 727
Waite Park, MN 56387
Property Management
Sand Property Management, LLC
366 South 101h Avenue, PO Box 727
Waite Park, MN 56387
III. PROJECT DESCRIPTION
If requested information is not available provide statement detailing project & status. Describe the major
components of the project (location, what will be accomplished, who will it serve, when will it start/finish, total project
cost). Describe neighborhood and surrounding community. Indicate why this site was selected. Attach Location
Map indicating project location. Attach Project Development Timetable that outlines the stages of the project (i.e.
acquisition of site, temporary relocation, financial closing, construction start, construction completion, rent up, etc.).
For assistance type programs (i.e. downpayment or rapid rehousing), include a detailed description of the criteria the
applicant will use to identify assistance recipients, how the program will be managed and who will be in charge of
administering it.
Tax credits from Iowa Finance Authority (IFA) were awarded to IC Housing Group, LLC in August 2018 and last year
the Housing Trust Fund of Johnson County awarded the project $325,000 for infrastructure improvements that need
to be kept outside of the housing project. This is an additional request for the Housing Trust Fund of Johnson
County to fill the remaining gap funding.
The proposed development in Iowa City is located on Herbert Hoover Highway, just east of Eastbury Drive on
approximately 2.25 acres. The development will consist of 36 units, within one building and will target general
occupancy, single heads of households with children, families/individuals of color, single men and women.
According to CITY STEPS, the most common housing problem in Iowa City is cost -burdened households with 8,155
renter occupied households with housing costs greater than 30% of their income. The current proposal targets these
household by providing a mixed income community consisting of 30% area median income, 40% area median
income, 60% area median income and market rate, which allows households at various income levels to find
affordable housing in Iowa City. The project with benefit low and moderate income residents in Iowa City and
Johnson County communities by providing affordable housing for individuals and families, which consists of one,
two, and three bedroom units.
Unit amenities will include Energy Star appliances, washer, dryer, dishwasher, and microwave, as well as HERS
rating less than 62, and meeting Olmstead goals through Iowa Finance Authority. Other resident amenities include a
community room, outdoor children's play area with picnic area, storage lockers and secure access. The building will
be three stories above grade and will incorporate wood frame construction. The exterior of the building will be
texture stone and steel or cement board siding and will incorporate accents and decorative louvers. All of these
features are designed to make the building accessible, affordable and sustainable.
Sand will develop, design, build and manage the property. Sand has twenty years of experience in low and
moderate income housing in Minnesota and Iowa. Currently Sand Property Management, LLC manages forty (1,567
units) housing communities, of which thirty-four are low and moderate income communities.
This request is for gap funding, since the project has already been awarded tax credits and $325,000 from the
Housing Trust Fund of Johnson County. If awarded funds from the Housing Trust Fund, land closing and
3
construction will likely commence in winter/spring 2019, with a spring 2020 opening. No tenants will be displaced by
this project.
Because this is an IFA LIHTC project, the application process will be very structured, formal and well documented.
All prospective tenants will have criminal background checks, credit checks and confirmation of rent/income
eligibility. This will be conducted by the management company, Sand Property Management, LLC who currently
manages 25+ LIHTC projects totaling approximately 1,500 units.
Additionally, under the Iowa City's Affordable Housing Location Model, the site meets all three of City Council's
goals for affordable housing. First, NEX is located in the Helen Lemme Elementary School zoning and according to
the Iowa Department of Education for 2016-2017 school year, Helen Lemme had a free and reduced lunch
participation rate of 30.67, which is below the maximum 50% under the Model. Second, NEX is not located within
400 feet of two or more existing subsidized units. Third and finally, the crime densities for the location of NEX are
not within the 95'h-percentile. While NEX site is not shown on the location map, it has become annexed after the
publication and given its proximity to other qualifying sites, NEX should meet the requirements.
VA11:10NAM] M0I:11:�
Describe the need for the activity proposed and demonstrate the need for the financial assistance requested. Without
the requested level of funding at the terms requested, what changes/modifications would be made to the project?
Describe how the proposed project meets a need not addressed by similar programs in Johnson County.
Iowa City lacks affordable housing to fulfill the growing needs of the community. The area is also restricted because of the
high acquisition costs and construction pricing, making it difficult to develop and build quality affordable housing. This
project would serve a great unmet demand and help with the absorption of future growth. In addition, it would reduce or
eliminate any financing gap, which would prevent the project from moving forward to closing and ultimately construction.
In addition, all of the other funding is in -place for NEX Apartments so it can quickly move forward with the land closing and
construction, which will get the project opened sooner than projects requesting tax credits in January 2019.
LWIAL1I:19111K
Identify the population and income groups to be served and services provided by the project.
The population to be served are individuals and families. There will be units set aside for persons at 30%, 40% and
60% AM as well as some market rate units. There will be a mix of one, two, and three bedroom units. Amenities
may include in -unit laundry, full kitchen, outdoor space, on -site parking, community room, on -site manager and
many others. IFA has conducted a formal market study and found a demand for the project.
VI. CONFLICT OF INTEREST
Describe any conflicts of interest that may exist between Applicant and members of the Board of Directors of the HTFJC.
There are no known interest conflicts between the Applicant and members of the Board of Directors of the HTFJC.
VI. PROJECT INFORMATION
Type of Activity (check all that apply):
Acquisition Conversion /Adaptive Re -Use Demolition _ Historic Pres. / Renov.
Y New Construction _ Refinance Rehabilitation
Other — Explain:
VII. BUILDING & SITE INFORMATION
Total Number of Buildings - 1
Total Site Area (Acres) - Approximately 2.35
acres
Year Built - 2019
IDensity (Units/Acres)- 15.3 units/acre
0
Number of Bedrooms per Unit
6 — 1 bedroom
Are Buildings Vacant or Occupied? N/A
12 — 2 bedroom
18 — 3 bedrooms
Total number of units per building - 36 units
VIII. SITE CONTROL
Does the applicant currently have site control of the property/building?
x Yes _ No
(Attach As -Is Appraisal, Attach Evidence of Site Control)
If yes, what type of site control: (Include Attachments III. A-B)
Own Date and Purchase Price
Lease Please Outline Terms
X Option Please Outline Terms Purchase Agreement, closing is anticipated in January
If no, explain your plans and timeline for obtaining site control:
IX. PROPERTY ZONING
Is the property in compliance with current zoning requirements? Yes X No
it no, please explain necessary zoning changes and the progress of the re -zoning process.
fhe site was annexed into the City and zoned Interium Development. Sand is working to rezone
he land to RM-12 or RM-20. Sand has met with the City of Iowa City and the City has indicated
hat the site could be used for multifamily housing per the zoning/overlay.
Are variances, conditional use permits, or special use permits required? Yes X No
Is property located in historic district or designated a historic building? Yes X No
Unusual Site Features (check all that apply)
30 year Flood Plain X None
100 year Flood Plain
Industrial / Envir. Hazard Explain:
Other Explain:
X. CURRENT INDEBTEDNESS OF PROPERTY
Are Property Taxes on the property/building(s) current? X Yes _ No
(If no. please include in the chart below)
Original
Name & Address of
Loan
Monthly
Int.
Fixed or
Unpaid
Maturity
Lender
Amount
Payment
Term
rate
Variable
Balance
Date
5
XI. CURRENT DEBTS OWED TO HTFJC
Original
Loan
Amount
Monthly
Payment
Term
Interest
rate
Maturity
Date
Not applicable.
TOTALS:
XII. PROPOSED SOURCES OF FUNDING
Identify proposed sources of funding for the project and the status of securing proposed funding.
Attach funding commitments, preliminary loan commitments, etc.
Describe
If No,
Type &
Committed
Expected
% Total
Funder/Pro ram
Amount
Uses
Terms 1
Y or N 2
Date
Sources
HTFJC — new request
$450,000
Construction
Loan, 17
N
9/28/2018
ears, 1%
HTFJC
$325,000
Infrastructure,
Loan, 17
Y
Construction
years, 1%
IOWA CITY
$200,000
Construction
Loan, 17
N
10/16/2018
LIHTC PROJECTS ONLY
ears, 1%
Permanent Mortgage
$1,425,000
Acquisition,
Loan, 17
Y
Constructions
years,
5.75%
LIHTC Equity
$5,710,960
Construction,
Y
Payment of
Construction Loan
Owner Equity/Deferred
$326,321
Construction and
Y
Developer Fee
Development Costs
TOTAL AMOUNT
$8,437,281
Total Cost Per Unit
$234,368
HTFJC Cost Per Unit
$21,527
(1). Deferred, Amortizing, Grant, Loan, etc., Maturity & Terms (2). An attachment is required for all committed funding
sources-
0
XIII. TAX INCREMENT FINANCING
Is Tax Increment Financing being considered? Describe proposed TIF assumptions and status of application.
No, the project inquired about tax increment financing and the City of Iowa City, at that time, did
not have any available.
XIV. ESTIMATED ANNUAL INCOME AND EXPENSES
(Transitional and Rental Only)
Attach the 10-year Cash Flow Proforma —PROGRAM TEMPLATE IS AVAILABLE AT WWW.HTFJC.ORG
(if mixed use: housing and commercial cash flows should be provided separately).
Unit Type Approx
(OBR, Size (Net Proposed Income
1BR, Rentable Monthly Limit Rent Limit
2BR, # of Sq. Ft.) of Contract (% AMI) if (% AMI) if
etc.) Units Units Rent/Unit applicable applicable
1 BR 1 719 $448 30% 30%
1 $611 40% 40%
2 $774 60% 60%
2 719-788 $937 MR MR
2 BR 1 1,100 $532 30% 30%
5 $728 40% 40%
5 $923 60% 60%
1 $1,119 MR MR
3 BR 2 1,421 $619 30% 30%
5 $837 40% 40%
10 $1,062 60% 60%
1 $1,288 MR MR
TOTALS 36
Utilities to be paid by occupant (excluding telephone/internet/ cable):
Water & Sewer By Landlord Heat - Type By Landlord
Hot Water By Landlord Air Conditioning By Tenant
Household Electric By Tenant Other - Specify Internet — By Landlord
XV. PROJECT BUDGET
NOTE: If mixed use, please separate Housing and Non -Housing Costs. Applicant may submit a development budget
created for another funding source for the same project. HTFJC may require additional information from applicants who
use alternative forms and for projects in excess of $500,000.
1. CONSTRUCTION COSTS HOUSING NON -HOUSING
a. Hard $5,491,618
b. Soft
c. Contingency $274,581
d. Construction Interest
TOTAL CONSTRUCTION $5,766,199
2. FEES
a. Architectural / Engineering $291,000
b. Developer's Fee $700,000
7
Utilities to be paid by occupant (excluding telephone/internet/ cable):
Water & Sewer By Landlord Heat - Type By Landlord
Hot Water By Landlord Air Conditioning By Tenant
Household Electric By Tenant Other - Specify Internet — By Landlord
XV. PROJECT BUDGET
NOTE: If mixed use, please separate Housing and Non -Housing Costs. Applicant may submit a development budget
created for another funding source for the same project. HTFJC may require additional information from applicants who
use alternative forms and for projects in excess of $500,000.
1. CONSTRUCTION COSTS HOUSING NON -HOUSING
a. Hard $5,491,618
b. Soft
c. Contingency $274,581
d. Construction Interest
TOTAL CONSTRUCTION $5,766,199
2. FEES
a. Architectural / Engineering $291,000
b. Developer's Fee $700,000
7
XV. PROJECT BUDGET
NOTE: If mixed use, please separate Housing and Non -Housing Costs. Applicant may submit a development budget
created for another funding source for the same project. HTFJC may require additional information from applicants who
use alternative forms and for projects in excess of $500,000.
1. CONSTRUCTION COSTS HOUSING NON -HOUSING
a. Hard $5,491,618
b. Soft
c. Contingency $274,581
d. Construction Interest
TOTAL CONSTRUCTION $5,766,199
2. FEES
a. Architectural / Engineering $291,000
b. Developer's Fee $700,000
7
7
c. Legal / Appraisal
$55,470
d. Other (Specify) — Syndicator Fees
$25,000
TOTAL FEESI
$1,071,470
3.OTHER HOUSING NON -HOUSING
a. Construction Period Interest
$150,000
b. Marketing
$22,200
c. Initial Equipment and Furniture Budget (Submit Detail)
$20,000
d. Real Estate Taxes During Construction
$10,000
e. Feasibility Study
$7,000
f. Appraisal
$10,000
g. Soil Borings
h. Lead Risk Assessment (For units built before 1978)
i. SAC/WAC Charges
j. Survey
$5,000
k. Rental Attainment Gap
ifference between income and expenses from corn7pretion of construction i.e.; Certificate of Occu anc
to breakeven .
I. Prepaid Interest
m. Interest Rate Buy Down
n. Relocation Expenses
o. Construction Contingency
See above
(10016 of [1. A. a.] for rehab; 3% of [1. A. a.] for new)
p. Off Site Construction Costs
(street) 325,000
q. Letter of Credit Fees (Specify)
r. Developer Fee
s. Developer Overhead (Please Submit Detail & Fee)
t. Debt Service Reserve
$163,000
u. Perm. Interest
v. Other— Insurance, construction loan origination, perm loan
origination, title and recording, environmental report, application
fee, IFA Pre -closing Review Fee, IFA Compliance Fee, Tax
Credit Reservation Fee, IFA Construction Monitoring Fee, 8609
Fee, Furnishings and Equipment
$202,912
TOTAL OTHERI
$590,112
4. LAND
a. Land Cost
$684,500
b. Value of Improvements on Land (Not Included Above)
c. Special Assessments
d. Demolition
e. Other (Specify)
TOTAL LAND
$684,500
5. TOTAL DEVELOPMENT COST OF PROJECT TOTAL 1-4
$8 437 281
XVI. CERTIFICATIONS
The undersigned applicant hereby certifies with respect to this application and the project for which the Housing Trust
Fund assistance is requested as follows:
All information and representations contained in this application and the attachments hereto are true and
accurate.
Applicant will comply with all the applicable federal, state, and local laws and regulations in completing and
operating the project/program, including, without limitation, local zoning laws and codes and Fair Housing Laws.
Applicant certifies that the funds requested will be used only for eligible costs associated with the
prorect,program.
Applicant has the ability and capacity to implement the project/program and have duly committed its own human
and financial resources to the project/program as described in the application.
8
• No costs for which HTFJC assistance is requested have been incurred by the applicant to the date hereof
(outside of costs associated with project feasibility), or will be incurred by applicants prior to HTFJC approval of
the project.
• Applicant has identified local housing needs in the area in which the project/program will be located, and the
project is designed to meet such needs and to be consistent with local laws, codes and housing plans.
• Applicant hereby gives permission to the HTFJC to research applicant's history, request additional financial
information and perform other related activities necessary for the reasonable evaluation of this application.
• Applicant certifies that they understand the RFP and all of its requirements and that this application will be
incorporated into the /Loan Agreement if approved for funding.
• Applicant understands that information submitted to the HTFJC relating to this application may be public
information.
• Applicant understands that awards are made at the discretion of the Board of Directors of the HTFJC.
Title: P(iM�vr T f'IAM
Telephone: ZJ W % . ?71 Ob
Date:
Ma"'O' � Meter
Initial Equipment and Furniture Detail:
Maintenance and Janitor Supplies $5,000
Maintenance Equipment (snow blower, shovels, power washer, leaf blower, etc.) $7,000
Office Supplies (computer, paper, ink, pens, files, etc.) $8,000
$20,000
XVII. ATTACHMENTS
Include the following clearly readable attachments. Attachments must be submitted in the following
sequence and be printed on 8.5" x 11" paper. If requested document is not available provide
detailed explanation to substantiate its absence.
I. Applicant Attachments
A. One of the following financial documents
1. HUD Previous Participation Form for general partner or applicant
2. Financial statement for most recent fiscal year
3. Audit letter
B. List of Board Members and their occupations
II. Project Description Attachments
A. Location Map
B. Project Timeline
III. Site Control Attachments (If applicable)
A. As -Is Appraisal (if new purchase)
B. Evidence of Site Control
C. Other (Explain)
IV. Documentation of Committed Funds
V. 10-year Cash Flow Projections - if mixed use, Housing and Commercial projections should be submitted separately
(transitional and rental projects only).
Application Instructions
The application deadline is 4:00 p.m. on September 14, 2018.
It is anticipated that funding decisions will be made no later than September 28, 2018.
Please submit one electronic copy of the application and one hard copy of the
application including all attachments; ccooper(cDhtfic.org and PO Box 2446, Iowa City,
IA 52244. Please note the change in contact information from previous applications.
Contact Casey Cooper at 358-0212 prior to submitting an application.
10
Exhibit I
Iowa City, Iowa
NEX Apartments
IC Housing Group, LLC
Housing Trust Fund of Johnson County
EXHIBIT I
Financial Documents:
Attached please find the HUD Previous Participation Form for SCI Associates, LLC. SCI Associates, LLC
is the member of the IC Housing Partners, LLC, who is the managing member of IC Housing Group,
LLC.
List of Board Members for Applicant and Occupation
Leo M. Sand, Chief Manager — Chairman of the Board for Sand Companies, Inc.
Jamie J. Thelen, Secretary/Treasurer — CEO/President for Sand Companies, Inc.
James W. Sand, Vice President — Retired
Nicole D. Sand, Vice President — Sr. Business Development Manager for Sand Companies, Inc.
Previous Participation Certification
US Department of Housing and Urban Development
Office of Housing/Federal Housing Commissioner
OMB Approval No. 2502-0118
US Department of Agriculture
Farmers Home Administration
Part I to be completed by Principals of Multifamily Projects (See instructions)
For HUD HQ/FmHA use only
Reason for submission:
1. Agency name and City where the application is filed
2. Project Name, Project Number, City and Zip Code
3. Loan or Contract amount $
4. Number of Units or Beds
5. Section of Act NA
6. Type of Project (check one)
❑Exist Ing El Rehabilitation XProosed(New)
7. List all proposed Principals sort attach organization chart for all organizations
Name and address of Principals and Affiliates (Name: Last, Fast, Middle Initial) proposing to participate
8 Role of Each Principal in Project
9. Expected %
Ownership in Project
10. SSN or IRS Employer
Number
IC Housing Group, LLC, , PO Box 727, Waite Park, MN 56387-0727
Owner
100%
82-3381850
IC Housing Partners, LLC, PO Box 727, Waite Park, MN 56387-0727
Managing Member
100%
82-3469366
SCI Associates, LLC, PO Box 727, Waite Park, MN 56387-0727
Member of Managing Member
51 %
27-0792471
.,c.,,.,.a--.,-y,uac,paga/ rumu a.c,c ucrcuy mpiy w HUn ur USDA rmrra, as me case mayme, for approval to participate as prmerpal(s) in me roles) and project listed above. The principal(s) each certify that all the
statements made on this form are true, complete and correct to the best of their knowledge and belief and are made in good faith, including any Exhibits attached to this form. Warning: HUD will prosecute false claims and
statements. Conviction may result in criminal and/or civil penalties. The principal(s) further certify that to the best of their knowledge and belief:
1. Schedule A contains a listing, for the last ten years, of every project assisted or insured by HUD, USDA FmHA and/or State and local government housing finance agencies in which the principal(s) have participated or are
now participating.
2. For the period beginning 10 years prior to the date of this certification, and except as shown on the certification:
a. No mortgage on a project listed has ever been in default, assigned to the Government or foreclosed, nor has it received mortgage relief From the mortgagee;
I. The principals have no defaults or noncompliance under any Conventional Contract or Turnkey Contract of Sale in connection with a public housing project;
c. There are no known unresolved findings as a result of HUD audits, management reviews or other Governmental investigations concerning the principals or their projects;
d. There has not been a suspension or termination of payments under any HUD assistance contract due to the principal's fault or negligence;
e. The principals have not been convicted of a felony and are not presently the subject of a complaint or indictment charging a felony. (A felony is defined as any offense punishable by imprisonment for a term exceeding one
year, but does not include any offense classified as a misdemeanor under the laws of a State and punishable by imprisonment of two years or less);
f. The principals have not been suspended, debarred or otherwise restricted by any Department or Agency of the Federal Government or of a State Government from doing business with such Department or Agency;
g. The principals have not defaulted on an obligation covered by a surety or performance bond and have not been the subject of a claim under an employee fidelity bond;
3. All the names of principals who propose to participate in this project are listed above.
4. None of the principals is a HUD/FmI-IA employee or a member of a HUD/FmHA employee's immediate household as defined in Standards of Ethical Conduct for Employees of the Executive Branch in 5 C.F.R. Part 2635
(57 FR 35006) and HUD's Standard of Conduct in 24 CYR- Part 0 and USDA's Standard of Conduct in 7 C.F.R. Part 0 Subpart B.
5. None of the principals is a participant in an assisted or insured project as of this date on which construction has stopped for a period in excess of 20 days or which has been substantially completed for more than 90 days and
documents for closing including final cost certification, have not been filed with HUD or FmHA.
6.None of principals have been found by HUD or FmHA to be in noncompliance with any applicable fair housing and civil rights requirements in 24 CFR 5.105(a). (If any principals or affiliates have been found to be in
noncompliance with any requirements, attach a signed statement explaining the relevant facts, circumstances, and resolution, if any).
7. None of the principals is a Member of Congress or a Resident Commissioner nor otherwise prohibited or limited by law fro contracting with the Government of United States of America.
8.Statements above (if any) to which the principal(s) cannot certify have been deleted by striking through the words with a pe , a d the levant principal(s) have initialed each deletion (if any) and have attached a true and
accurate signed statement (if applicable) to explain the facts and circumstances.
Name of Principal I Si natur al
Certification Dat mMdd/
Area Code and Tel. K.
IC Housing Group, LLC
9/11 Y2018
320-202-3100
IC Housing Partners, LLG
9111/201a
320-202-3100
SCI Associates, LLC
9/11/2018
320-202-310o
l
This form prepared b(print name Niwle saga Area Code and Tel. No.udmzamo
Previous editions are obsolete ref Handbook 4065.1 Form HUD-2530 (02/2013)
Pagel 0£2
Previous Participation Certification
OMB Approval No. 2502-0118
Schedule A: List of Previous Projects and Section 8 Contracts. Below is a complete list of the principals' previous participation projects and participation history in multifamily
Housing programs of HIID/FmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more space. Double check for accuracv. If no previous moiects- write by vour name_ "No nrevions nnrfirinnf;nn_ Firet FYnarirnra�
1. Principals Name Last, First
P ( )
2. List of previous projects Project name,
P P J (Project
project ID and, Govt. agency involved)
3.List Principals' Roles
P O
(indicate dates participated, and if
fee or identityof interest
participant)
4. Status of loanr
(current, defaulted,
assigned,
wed, foreclosed)
5. W as the Project ever
in default duringour
y
participation
Yes No If yes, explain
6. Last MOR rating and
Ph
Physical Insp. Score and
date
IC Housing Group, LLC
No Previous Participation, First Experience
IC Housing Partners, LLC
No Previous Participation, First Experience
Note: S is Satisfactory
Part H- For HUD Internal Processing Only
Received and checked by me for accuracy and cmmoletenes.s recommend nnnrnvnl nr refer to Headnnvrferc nftPr rh—r ina ann.nnr;, r hnv
Date (mm/dd/yyyy)
Tel No. and area code
❑A. No adverse information; form HUD-2530 approval ❑C. Disclosure or Certification problem
recommended.
Staff
Processing and Control
❑B. Name match in system ❑ D. Other (attach memorandum)
Supervisor
D¢ector ofHousingNirector, Multifamily Division
Approved
Date(mm/dd/yyyy)
❑ Yes ❑ No
Previous editions are obsolete ref Handbook 4065.1 Form HUD-2530 (0212013)
Page 2 of 2
Previous Participation Certification
OMB Approval No. 2502-0118
Schedule A: List of Previous Projects and Section 8 Contracts. Below is a complete list of the principals' previous participation projects and participation history in multifamily
Housing programs of HUD/FmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more space. Double check for accuracv. If no previous moiects. write by vour name_ "Nn nreviana nnr-fieinalirrn. Firef Frnor:on-13
1. Principals Name (Last, First)
2. List of previous projects (Project name,
project ID and, Govt. agency involved)
3.List Principals' Role(s)
(indicate dates participated, and if
fee or identityof interest
participant)
4. Status of loan
(current, defaulted,
assigned,
pied, foreclosed)
5. W as the Project ever
in default during Your
participation
YesNo If es,ex lain
6. Last MOR rating and
Physical insp. Score and
date
SCI Associates, LLC
D5959 Maple Village
General Contractor- 2009
Current
X
MHFA Mgmt:
Maple Grove, MN -MHFA
Developer - 2007
3/13/2017;5
General Partner 2007/2012
-Current
Managing Agent - 2009-Current
Identity of Interest
D6234 Hoffman Place
General Contractor-2009
Current
X
MHFA Mgmt:
White Bear Lake, MN - MHFA
Developer - 2008
7/12/2016; S
General Partner 2008/2012
-Current
Managing Agent - 2010-Current
Identity of Interest
D1382 Granite Hill Homes
General Contractor - 2014
Current
X
No Inspections.
Bartell, MN - MHFA
Managing Agent - 2010- Current
Developer - 2013
General Partner- 2010/2012-
-Current
Identity of Interest
D6233 Cornerstone Village
General Contractor -2010
Current
x
MHFA Mgmt:
t. Michael, MN - MHFA
Developer- 2009
8123/2017; S
General Partner - 2009/2012 -
Current
Managing Agent-2011-Current
Identity of Interest
Note: S is Satisfactory
Part H- For HUD Internal Processing Only
Received and checked by me for accumn,v and emmmletenessr recommend annrnval n f rm
Date (nun/dd/yyyy)
Tel No. and area code
❑A. No adverse information; form HUD-2530 approval ❑C. Disclosure or Certification problem
recommended.
Staff
Processing and Control
❑B. Name match in system ❑ D. Other (attach memorandum)
Supervisor
Director ofHousing/Director, Multifamily Division
Approved
Date(mm/dd/yyyy)
Ely" ❑ No
Previous editions are obsolete ref Handbook 4065.1 Form HUD-2530 (02/2013)
Page 2 of
Previous Participation Certification
OMB Approval No.2502-0118
(Exo. 02/29/20161
Schedule A: List of Previous Projects and Section 8 Contracts. Below is a complete list of the principals' previous participation projects and participation history in multifamily
Housing programs of HUD/FmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more space. Double check for accuracv. If no previous uroiects. write by vour name. "No previous narticinafrnn- First Fsnnrienre"
I. Principals Name (Last, First)
2. List of previous projects (Project name,
project ID and, Govt. agency involved)
3.List Principals' Role(s)
(indicate dates participated, and if
fee or identity of interest
4. Status of loan
(current, defaulted,
assigned, foreclosed)
5. Was the Project ever
in default during your
participation
Yes No If es, es lain
6. Last MOR rativg and
Physical Insp. Score and
to
date
SCI Associates, LLC
D6286 Maple Village II
General Contractor - 2012
Current
X
MHFA Mgmt:
Maple Grave, MN - MHFA
Developer - 2013
3/1312017; S
General Partner - 2013-Current
Managing Agent-2013-Current
Identity of Interest
D7570 Western U Plaza
General Contractor - 2014
Current
X
MHFA Mgmt:
t. Paul, MN - MHFA
Developer - 2014
811012017; S
General Partner - 2014-Current
Managing Agent-2016-Current
Identity of Interest
General Contractor - 2015
D7649 Tamarack Place
Developer - 2014
Current
X
New Construction in
Roseau, MN - MHFA
General Partner -2014-Current
2016. No inspections.
Managing Agent-2016-Current
Identity of Interest
D6680 West View Estates
General Contractor - 2012
Current
X
MHFA Mgmt:
Plymouth, MN -MHFA
Developer-2012
8/16/2017;S
General Partner - 2012-Current
Managing Agent-2013-Current
Identity of Interest
1477 Granite City Townhomes
General Contractor- 2013
Current
X
MHFA Mgmt:
t. Cloud, MN - MHFA
Developer - 2013
611412017; S
General Partner - 2013-Current
I
Managing Agent-2010-Current
Note: S is Satisfactory
Identity of Interest
Part H- For HUD Internal Processing Only
Received and checked by me for accunev and comoleteness: recommend anoroval or refer to Headvuarters after checkinv annmmiate hnr
Date mm/dd
( /yyyy)
Tel No. and area code
❑ A. No adverse information; form HUD-2530 approval ❑ C. Disclosure or Certification problem
recommended.
Staff
Processing and Control
❑B. Name match in system ❑ D. Other (attach memorandum)
Supervisor
Duector ofHousingNkemet, Multifamily Division
Approved
Date(mm/dd/yyyy)
❑ Yes ❑ No
Previous editions are obsolete ref Handbook 4065.1 Form HUD-2530 (02/2013)
Page 2 of 2
Previous Participation Certification
OMB Approval No. 2502-0118
Schedule A: List of Previous Projects and Section 8 Contracts. Below is a complete list of the principals' previous participation projects and participation history in multifamily
Housing programs of HUD/FmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more space. Double check for accuracv. If no previous moiects, write by vour name. "No Drevious Darticination. First Experience".
1. Principals Name (Last, First)
2. List of previous projects (Project time,
project ID and, Govt. agency involved)
3.List Principals' Role(s)
(indicate dates participated, and if
fee or identity of interest
participant)
4. Status of loan
(current, defaulted,
assigned, foreclosed)
5. Was the Project ever
in default during your
participation
Yes No If yes, esplain
6. Last MOR rating and
Physical Insp. Score and
date
SCI Associates, LLC
D7602 - Linden Grove Veteran Apartments
General Contractor - 2015
Current
X
MHFA Mgmt:
St. Cloud, MN -MHFA
Developer - 2015
6/1312017;5
General Partner - 2015-Current
Managing Agent-2016-Current
Identity of Interest
D1492- Woodland Village Townhomes
General Contractor -2015
Current
X
MHFA Mgmt
t. Cloud, MN -MHFA
Developer - 2015
6/13/2017;S
General Partner - 2010-Current
Managing Agent-2010-Current
Identity of Interest
D7736 - Cornerstone Village 11
General Contractor - 2016
Current
X
New Construction in
t. Michael, MN-MHFA
Developer-2016
2017.
General Partner-2016-Current
Managing Agent-2017-Current
Identity of Interest
D7865 - Balsam Apartments
General Contractor- 2016
Current
X
New Construction in
Dayton, MN -MHFA
Developer-2016
2017.
General Partner-2016-Current
Managing Agent-2017-Current
Identity of Interest
16-17 - Coral Ridge Apartments
General Contractor - 2016
Current
X
New Construction in
Coralville, IA - IFA
Developer - 2016
2018.
General Partner - 2016-Current
Managing Agent-2017-Current
Note: S is Satisfactory
Identity of Interest
Part H- For HUD Internal Processing Only
Received and checked by me for accuracy and completeness: recommend approval or refer to Headquarters after checkine ammopriate box
Date (mm/dd/yyyy)
Tel No. and area code
❑A. No adverse information; form I-IUD-2530 approval ❑ C. Disclosure or Certification problem
recommended.
Staff
Processing and Control
❑B. Name match in system ❑ D. Other (attach memorandum)
Supervisor
Director of Housing/Director, Multifamily Division
Approved
Date(nan/dd/yyyy)
❑ Yes ❑ No
Previous editions are obsolete ref Handbook 4065.1 Form HUD-2530
Page 2 of 2
Previous Participation Certification
OMB Approval No. 2502-0118
Schedule A: List of Previous Projects and Section 8 Contracts. Below is a complete list of the principals' previous participation projects and participation history in multifamily
Housing programs of HUD/FmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more space. Double check for accuracy. If no previous projects, write by vow time. "No previous participation. First Experience".
1. Principals Name (Last, First)
2. List of previous projects (Project time,
project ID and, Govt. agency involved)
3.List Principals' Roles)
(indicate dates participated, and if
fee or identity of interest
participant)
4. Status of loan
(curreni defaulted,
assigned, foreclosed)
5.Was the Project ever
in default during your
participation
Yes No If yes, explain
6. Last MOR rating and
Physical Insp. Score and
date
SCI Associates, LLC
D3007-School Square
General Partner -2011-current;
Current
X
Rural Development
Ibany, MN - USDA
Managing Agent - 2012-current
8/24/2017; S
Identity of Interest
Euclid View Flats
General Contractor- 2018
Current
X
New Construction in
St. Paul, MN - City of Saint Paul
Developer- 2017
2018.
General Partner - 2017-Current
Managing Agent-2018-Current
Identity of Interest
Note: S is Satisfactory
Part 11- For HUD Internal Processing Only
Received and checked by me for accuracy and completeness; recommend approval or refer to Head uarters after checking appropriate box
Date (mm/dd/yyyy)
Tel No. and area code
❑A. No adverse information; form I-IUD-2530 approval ❑C. Disclosure or Certification problem
recommended.
Staff
Processing and Control
❑B. Name match in system ❑ D. Other (anach memorandum)
Supervisor
Director of Housing/Director, Multifamily Division
Approved
Date(mm/dd/yyyy)
❑ Yes ❑ No
editions are obsolete ref Handbook 4065.1 Form HUD-2530
Page 2 of
Instructions for Completing the Previous
partnerships, corporations, trusts, non-profit • Projects to be financed according to Section
the State or local housing finance agency project or
Participation Certificate, form HUD-2530
organizations, any other public or private entity that
202 of the Housing Act of 1959 (Elderly and
contract number. Include all project or contract
Carefully read these instructions and the applicable
will participate in the proposed project as a sponsor,
Handicapped).
identification numbers that we relevant to the project.
regulations. A copy of those regulations published at
owner, prime contractor, turnkey developer,
• Projects in which 20 percent or more of the units are
Also enter the name of the city in which the project is
24 C.F.R 200.210 to 200.245 can be obtained from
managing agent, nursing home administrator or
to receive a subsidy as described in
located, and the ZIP Code.
the Multifamily Housing Representative at any HUD
operator, packager, or consultant. Architects and
24 C.F.R. 200.213.
Office. Type or print neatly in ink when filling out
attorneys who have any interest in the project other
. Purchase of a project subject to a mortgage insured
Block 3: Fill in the dollar amount requested in the
this form Mark answers in all blocks of the form. If
than an arm's length fee arrangement for professional
or held b the Secretary,
y ary of
proposed mortgage, or the annual amount of rental
the form is not filled completely, it will delay
services are also considered principals by HUD.
Purchase of a Secretary -owned project.
p
assistance requested.
approval of our application.
PP y PP
re the case of partnerships, all general partners
• Proposed substitution or addition of a principal or
Block 4: Fill in the number of apartment ands
Attach extra sheets as you need them. Be sure
y
regardless of theirpercentage interest and limited
g
principal participation m a different capacity from
Proposed, such as "40 units." For hospital projects or
indicate "Continued on Attachments" wherever
er
h
partners having a 25 percent or more interest in the
that previously approved for the same project.
nursing homes, fill in the number of beds proposed,
appropriate. Sign each additional page that you attach
partnership are considered principals. In the case of
. Proposed acquisition by an existing limited partner
such as "100 beds."
if it refers to you or your record.
public or private corporations or governmental
of an additional interest in a project resulting in a
Block 5: Fill in the section of the Housing Act under
Carefully read the certification before you sign it.
entities, principals include the president, vice
total interest of 25 percent or more or proposed
which the application is filed.
Any questions regarding the form or how to complete
president, secretary, treasurer and all other executive
acquisition by a corporate stockholder of an
Block 7: Definitions of all those who are considered
it can be answered by your HUD Office Multifamily
officers who are directly responsible to the board of
additional interest in a project resulting in a total
principals and affiliates are given above in the section
Housing Representative.
directors, or any equivalent governing body, as well
interest of 10 percent or more.
filled "Who Must Sign and File.._"
Purpose: This form provides HUD with a certified
as all directors and each stockholder having a 10
• Projects with U.S-D.A., Farmers Home Ad-
Block 8: Beside the time of each principal, fill in the
report of all previous participation in HUD
percent or more interest in the corporation.
ministration, or with state or local government
appropriate role. The following me examples of
multifamily housing projects b those parties making
y P g
housing finance agencies that include rental
Possible roles that the principals may assume:
application. The information requested in this form is
Affiliates are defined as any person or business
assistance under Section 8 of the Housing
g Act of
Owner/Mortgagor, Managing Agent, Sponsor,
used by HUD to determine if you meet the standards
concern that directly or indirectly controls the policy
shout For projects of this type, form HUD-2530
should be filed with the appropriate applications
Developer, General Con-tractoq Packager,
established to ensure that all principal participants in
of a principal or has the power to do so. A holding or
parent corporation would be an example of an affiliate
direct) to thosea encies.
y g
Consultant, Nursing Home Administrator etc.
HUD projects will honor their legal, fmancial and
contractual obligations and we acceptable risks from
if one of its subsidiaries is aprincipal.
Review of Adverse Determination: If approval of
Block 9: Fill in the percentage of ownership in the
the underwriting standpoint of an insurer, lender or
governmental agency. HUD requires that you certify
your record of previous participation in HUD/USDA-
FmHA, State and Local Housing Finance Agency
projects by completing and signing this farm, before
your project application or participation can be
approved.
HUD approval of your certification is a necessary
precondition for your participation in the project and
in the capacity that you propose. If you do not file this
certification, do not famish the information requested
accurately, or do not meet established standards, HUD
will not approve your certification.
Note that approval of your certification does not
obligate HUD to approve your project application,
and it does not satisfy all other HUD program
requirements relative to your qualifications.
Who Must Sign and File Form HUD-2530:
Form HUD-2530 must be completed and signed by all
principals applying to participate in HUD multifamily
housing projects, including those who have no
previous participation. The form must be signed and
filed by all principals and then affiliates who propose
participating in the HUD project. Use a separate form
for each role in the project unless there is an identity
of interest.
Principals include all individuals, joint ventures,
Exception for Corporations — All principals and
affiliates must personally sign the certificate except in
the following simation. When a corporation is a
principal, all of its officers, directors, trustees and
stockholders with 10 percent or more of the common
(voting) stock need not sign personally if they all have
the same record to report The officer who is
authorized to sign for the corporation or agency will
list the names and title of those who elect not to sign
However, any person who has a record of
participation in HUD projects that is separate from
that of his or her organization must report that activity
on this form and sign his or her time. The objective
is full disclosure.
Exemptions — The names of the following parties do
not need to be listed on form HUD-2530: Public
Housing Agencies, tenants, owners of less than five
condominium or cooperative units and all others
whose interests were acquired by inheritance or court
order.
Where and When Form HUD-2530 Must Be
Filed: The original of this form must be submitted to
the HUD Office where your project application will
be processed at the same time you file your initial
P
a
or
your participation m a HUD project is denied, proposed project tat each principal is expected to
withheld, or conditionally granted on the basis of your have.
record of previous participa[io , you will be notified
by the HUD Office. You may request reconsideration
by the HUD Review Committee. Alternatively, you
may request a hearing before a Hearing Officer.
Either request must be made in writing within 30 days
from your receipt of the notice of determination.
If you do request reconsideration by the Review
Committee and the reconsideration results in an
adverse determination, you stay then request a
hearing before a Hearing Officer. The Hearing Officer
will issue a report to the Review Committee. You will
be notified of the final ruling by certified mail.
Specific Line Instructions:
Reason for submitting this Certification: e.g.,
refinance, change in ownership, change in
management agent, transfer of physical assets, etc.
Block l: Fill in the name of the agency m which you
are applying. For example: HUD Office, Farmers
Home Administration District office, or the name of a
State or local housing finance agency. Below that, fill
in the name of the city where the office is located.
application. This farm must be filed with Block 2: Fill in the name of the project, such as
pplications for projects, or when otherwise required "Greenwood Apts." If the name has not yet been
n the situations listed below:
selected, write "Name unknown." Below that, enter
Projects to be financed with mortgages insured the HUD contract or project identification number,
under the National Housing Act (FHA), the Farmers Home Administration project number, or
Block 10: Fill in the Social Security Number or
IRS employer number of every principal listed,
including affiliates.
Instructions for Completing Schedule A:
Be sure that Schedule A is filled -in completely,
accurately and the certification is properly dated
and signed, because it will serve as a legal record
of your previous experience. All Multifamily
Housing projects involving HUD/ FmHA, and
State and local Housing Finance Agencies in which
you have previously participated must be listed.
Applicants are reminded that previous
participation pertains to the individual principal
within an entity as well as the entity itself. A newly
formed company may not have previous
participation, but the principals within the company
may have had extensive participation and disclosure
ofthzt activityis required.
Column 2. All previous projects most be fisted or your
cerafnadon cannot beprocesserl Include the name of a0
projeco, project number, city where it is located and the
governmental agency (HUD, USDA-FmHA or state or local
housingfnance agency) thatwas involved.
Column 3. List the mle(s) as a principal, dates participated
and if fee or identity ofinterest(IO1) with owners.
\Ammo 4. malcate me current 5latus oI we loan. J,xcepttor
current loan, the date associated with the stars is required.
Loans under a workout arringemern are considered
assigned. For all noncurrent loans, an explanation of the
arms is required.
Column 5. Explain any project defaults during you
participation.
Column 6. Provide the latest Management Review (MOR)
mtingand Physical Inspection score.
Certification: After you have completed all other parts of
loan HUD-2530, including schedule A, read the
Certification carefully. In the box below the statement ofthe
certification, fill in fie names of all principals and atEliatcs
as listed in block 7. Each principal should sign the
certification with the exception in some cases of individuals
associated with a corporation (see "Exception for
Corporations" in the section of the instructions tilled "Who
Must Sign and File Form HUD-2530). Principal who is
sighing on behalf of the entity should attach signalize
authority document Each principal who signs the form
should hit in the date of the signatur, and a telephone
number. By providing atelephone number, HUD can reach
you in the event ofany questions.
If you comae certify, and sign the certification as it is printed
because same statements do not correctly describe your
record, use apes to strike through those parts that differ with
your record, and than sign and certify.
Attach a signed statement of explanation of the items you
have shuck out on the certification. Item 2e. relates to felony
convictions within the past 10 years. Ifyou are convicted of
a felony within the past 10 years, strike out 2e. and attach
statement of explanation. A felony conviction will not
necessarily cause your participation at be disapproved unless
there is a criminal retard or other evidence that your
previous conduct ormethod ofdoing business has been such
thin your participation in the project would make it an
unacceptable risk from the underwriting stand point of an
insurer, lender or governmental agency.
The Department of Housing and Urban Development (HUD) is authorized to collect this information bylaw (42 U.S.C. 3535(d) and 24 C.F.R. 200.217) and by regulation at 24 CFR 200.210. This
information is needed so that principals applying to participate in multifamily programs can become HUD -approved participants. The information you provide will enable HUD to evaluate
your record with respect to established standards of performance, responsibility and eligibility. Without prior approval, a principal may not participate in a proposed or existing multifamily
project. HUD uses this information to evaluate whether or not principals pose an unsatisfactory underwriting risk. The information is used to evaluate the potential principals and approve
only individuals and organizations that will honor their legal, financial and contractual obligations.
Privacy Act Statement: The Housing and Community Development Act of 1987, 42 U.S.C. 3543 requires persons applying for a Federally -insured or guaranteed loan to furnish his/her Social Security
Number (SSN). HUD must have your SSN for identification ofyour records. HUD may use your S SN for automated processing of your records and to make requests for information about you and
your previous records with other public agencies and private sector sources. HUD may disclose certain information to Federal, State and local agencies when relevant to civil, criminal, or regulatory
investigations and prosecutions. It will not be otherwise disclosed or released outside of HUD, except as required and permitted by law. You must provide all of the information requested in this
application, including your SSN.
Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form,
unless it displays a currently valid OMB control number.
A response is mandatory. Failure to provide any of the information will result in your disapproval of participation in this HUD program.
Exhibit II
Iowa City, Iowa
NEX Apartments
IC Housing Group, LLC
Housing Trust Fund of Johnson County
Location Maps:
The site is near
( Groclriea
-
[xa lie
acne alY axa�+n x.vkel
�nM�s VCRGde d6
6yomart W9 Wrmm Yarte[
l3 F[dnrcdG
3♦
XM�W^YMYFOOEGrrG
].s�
$Ir14a�l iluilw�Ip�F1�u1
� �' -�
prW yp[p YLMp
s �Ri
•YaN WNeI
uaa
i.n'
/]rtn9 GNt6ry
I...
w:��x cp�rz�
annw
a[w se PoaX
iqii
Xa
W oavta. a..IZXa Yamx
ue w
'l
o....e
M[rePxals )
EXHIBIT II
J - �
I -e uni�m�c ry �
� x
ri
below.
9
O
o
k
.. o
k
•�n:�. mp.w, izovuo#a amnwm<
NEX Apartments
IC Housing Group, LLC
Housing Trust Fund of Johnson County
nm sl
we PPk
vna n Indkn'OaEk
nwN xartE vak
aglggaq.A.. p.k
1 .10 a..
o 11
• on.,gaava.a�.a�
E.vrn rnrcq w,.IX
x �n � Sn n�nkninnury uEgM
tn..
ryxn lm,
]3m
[1 nl•ry6Y.w1m
zso qs Mnea �.4.
.a�Yyn pm E.s�m
wvl�eaM �mw Elgn sngw
E a,atan l•le anunnlve ngn.un
Lane[ngw Ma�cnYry 5[�wl Em
EI] 5rymwra,. E.Em
nY%e •M� ad.+aary ¢rnw
i11 X0.n CeE3eY ].3m
E 155 [i[fortsE.U'nia,lary 5tl,ml E.'
6rnA WeW flen¢nWry9:Me1
Egg sam, y
The Ul .versily
"
5—N.e•.maa
•""'
-
_ of Iowa helms «
41
it
sp a}
G Ir
'`-�11:
e! ,` o F I i
EyHa 0i0EE bale rr—M.
}
w„
)
f
E
z --
[ m
a'^"'"""'°""^ O�•�.M,ti
the University
3
of lawa
i I.. Cie,
'
i
ufJ
�
0
J C•
Y
1"E�3
�W
e
Y f ^av a.a oven c�k. ,,..•.aw
( E..d,,
�Mqury eYMert
x00vkP
W-vM eEu9O<.e.
CAu91lI h Itv 11PI1
P
HJI BIL
-wy
—
.,
WMMIE Ml
Q !
•.
,e
CM.N .n S..
IwwOL YHpa SErAB1
LEMM�E
'
Mo
IlII all,Ill
ooc wzra mal•uE
Lc
.
,� , � .v ` saws Pa,E
' '� &
,..,
•
�
E,.•a,na�4.4
rva ago
I,y�
Y 5
,w n
NEX Apartments
IC Housing Group, LLC
Housing Trust Fund of Johnson County
Project Timeline:
NEX was awarded tax credits from Iowa Finance Authority in August 2018 and previously received
$325,000 from the Housing Trust Fund of Johnson County. Almost all of the financing is in place for
this project to start soon; however, there remains $650,000 gap after the Ownership/Developer
contribution of $326,221. The project is anticipated to start construction in early 2019 and there will
be approximately a 12 month construction timeline. Construction is anticipated to be complete in
early 2020.
Exhibit III
Iowa City, Iowa
NEX Apartments
IC Housing Group, LLC
Housing Trust Fund of Johnson County
EXHIBIT III
Site Control Attachments:
Attached is the purchase agreement for the property.
DocuSign Envelope ID: 4FF9D1DC-ADBF4F34-849F-66E75636B770
AMENDED AND RESTATED
PURCHASE AGREEMENT
THIS AMENDED AND RESTATED PURCHASE AGREEMENT ("Agreement") is made
and entered into as of this 13th day of August, 2018, by and between LYLE MARK LARSON AND
BETSY LARSON (collectively "Seller") and IC HOUSING GROUP, LLC or assigns ("Buyer").
WHEREAS, Seller is the fee owner of certain real property to be annexed into the City of Iowa
City ("City"), County of Johnson ("County"), State of Iowa ("State"), consisting of approximately 8.04
acres of land, PID No. 0907230001, legally described as Tegler Subdivision Lot 1, subject to Right -of -
Way Easement according to the plat thereof recorded in Book 25, Page 42, Plat Records of Johnson
County Recorder. Seller is willing to sell a portion of Seller's real property consisting of approximately
5.27 acres ("Property"), as shown on Exhibit A. The Property as defined herein shall include the
improvements, utilities, easements, hereditaments, rights and appurtenances on or relating to the
Property, including any future forfeitures of adjacent interest in real estate by any governmental
authority.
WHEREAS, Seller and Buyer entered into the Purchase Agreement dated November 15, 2017
("Original Purchase Agreement") and now wish to amend and restate the Original Purchase Agreement
in its entirety as set forth herein.
WHEREAS, Seller desires to sell, transfer and assign the Property to Buyer and Buyer desires to
purchase and accept the Property from Seller, on the terms and subject to the conditions set forth herein.
NOW THEREFORE, in consideration of the mutual covenants and conditions hereinafter
expressed, the adequacy and receipt of which are hereby acknowledged, Buyer and Seller agree as
follows:
1. PURCHASE AND SALE. Seller agrees to sell, transfer and assign the Property to Buyer and
Buyer agrees to purchase and accept the Property from Seller, on the following terms and subject
to the conditions set forth herein.
2. PURCHASE PRICE. The Purchase Price for the Property shall be One Million Two Hundred
Thousand and No/100 Dollars ($1,200,000.00).
3. PAYMENT OF PURCHASE PRICE AND EARNEST MONEY. Buyer shall deposit earnest
money in the amount of Ten Thousand and No/100 Dollars ($10,000.00) ("Earnest Money"),
within five (5) business days after this Agreement is fully executed by the parties, into a trust
account at Tri-County Abstract & Title Guaranty, at its St. Cloud, Minnesota office ("Title
Company"). The Earnest Money, except as otherwise specifically provided herein, is to be
credited to Buyer at Closing. The parties agree that Buyer shall have the unilateral right up to and
including the Contingency Date, as defined below, or a later date if so provided herein, to cause
the Title Company to release the Earnest Money together with any accrued interest to Buyer
upon Buyer's written notice to Seller and the Title Company of an unsatisfied contingency. The
Earnest Money shall in all events be refundable to Buyer in the event this Agreement does not
close as a result of an unsatisfied Buyer contingency or a breach of this Agreement by Seller.
The balance of the Purchase Price shall be paid by Buyer to Seller in cash at Closing.
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-849F-66E75636B770
4. DATE OF CLOSING AND CONTINGENCY DATE. The Date of Closing shall be on the
date of closing of Buyer's construction financing which shall be on or before January 31, 2019,
or earlier in the sole discretion of the Buyer ("Date of Closing" or "Closing"), on which date
Seller shall deliver a Warranty Deed for the Property and such other documentation referred to in
Section 9 hereof. Buyer would provide at least sixty (60) days' notice of Date of Closing if in its
sole discretion Buyer decides to close earlier than January 31, 2019. Time being of the essence,
in the event the transaction does not close on or before the Date of Closing due to a failure to
perform by Seller, Buyer may terminate this Agreement by written notice to Seller, and in that
event, this Agreement shall be null and void, Seller shall execute and deliver to Buyer a
Cancellation of the Purchase Agreement and all Earnest Money shall be promptly paid to Buyer.
The Contingency Date shall be November 30, 2018 ("Contingency Date"). Alternatively, Buyer
may at its option, extend the Contingency Date for a period of up to sixty (60) days to permit
Buyer to satisfy or waive its contingencies herein, including without limitation, to receive
government approvals or to close on its financing, or to allow Seller to satisfy its unfulfilled
obligations hereunder. hi that event, the Date of Closing shall be extended for the same period of
time as the Contingency Date is extended. If Buyer extends the Contingency Date for an
additional sixty (60) days as described herein, all of the Earnest Money shall become
nonrefundable and shall be paid to Seller upon exercise of said option to extend the Contingency
Date.
5. REAL ESTATE TAXES, SPECIAL ASSESSMENTS AND CLOSING COSTS.
5.1 Seller represents that all real estate taxes and installments of special assessments due and
payable in all years prior to the year of Closing are paid in full. Real estate taxes due and
payable in the year of Closing shall be prorated between the parties on a fiscal year basis
(July 1 - June 30).
5.2 Seller shall pay in full on or before Closing all unpaid levied, deferred and all pending
assessments (including installments not yet due and payable) existing, in process or of
record as of the Date of Closing. Buyer shall pay all real estate taxes as well as personal
property taxes due and payable subsequent to Closing.
5.3 Seller shall be responsible for half of the title closing fee, all payments of any state,
county or local documentary taxes or transfer fees attributable to the transfer or sale of the
Property. Seller will pay the cost of preparing and recording any documents necessary to
establish marketable title in Seller's name. Buyer shall be responsible for half of the title
closing fee, and all recording fees or charges for the deed conveying the Property. Buyer
shall be responsible for and pay the cost and expense of the title insurance policy for this
transaction.
6. DOCUMENT INSPECTION. Within thirty (30) days of the date this Agreement is executed
by all parties, Seller shall provide Buyer with the items indicated below. Seller does hereby
represent that all submitted items shall be true and correct in all material respects:
6.1 An Abstract of Title certified to date sufficient for the Title Company to issue a title
insurance commitment (current form) for an ALTA owner's title insurance policy from
2
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-849F-66E75636B770
Title Company, as agent for Buyer, ("Title Commitment") naming Buyer as the proposed
insured in the amount of the Purchase Price insuring marketability and subject only to
such matters as Buyer may approve. Said commitment shall include the following:
A. Itemization of all levied, pending or deferred special assessments or a statement that
there are none.
B. Itemization of all taxes affecting the Property and the year to which they relate.
C. A waiver of all general exceptions to the owner's policies, including exceptions for
(i) any mechanic's or materialmen's liens for work performed or materials furnished
prior to date of the policy, (ii) the rights of parties in possession and (iii) items that
arise or exist after the date of commitment and up to the date of recording of the
documents establishing title in Buyer.
D. Copies of all documents creating exceptions to title.
Buyer shall be allowed sixty (60) days after receipt of said Title Commitment and
exception documents for examination and making objections thereto. Said objections are
to be made in writing or deemed waived, subject, however, to Seller's obligation to
transfer marketable title to the Property to Buyer at the Closing. If any objections are so
made, Seller shall be allowed sixty (60) days to cure such objections. The Seller shall
make every reasonable effort to cure such objections. If Seller is unable to cure such
objections, then Buyer may, at its option: (i) terminate this Agreement without any
liability on its part, and receive a full refund of the Earnest Money; or (ii) waive its
objections and close this purchase and sale subject thereto without any reduction in the
purchase price. In the event Buyer in its sole discretion is not satisfied with the Title
Commitment or exception documents, Buyer may cancel this Agreement by written
notice to Seller any time on or before the Contingency Date and in such event this
Agreement shall be null and void and Seller shall immediately sign a cancellation of
Purchase Agreement and authorize and instruct the Title Company to release to Buyer
any and all Earnest Money. Buyer may request and receive an updated Title Commitment
prior to Closing and in the event there are any changes to the Title Commitment, Buyer
and Seller shall have the objection and cure rights set forth above with respect to such
changes; provided, however, that the objection and cure timeframes for such changes
shall be reduced from sixty (60) days to twenty (20) days.
6.2 Copies and electronic CAD versions of the most recent survey of the Property with
topographical features in Seller's possession or control, or in the possession or control of
Seller's agents or consultants and copies and electronic CAD versions of any as -built
surveys of the Property and related public and private improvements, in Seller's
possession or control, or in the possession or control of Seller's agents or consultants.
Seller discloses to Buyer that neither they nor their consultants or agents are in possession
or control of any of the documentation set forth in this paragraph.
3
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-849F-66E75636B770
6.3 Copies of any wetland delineation reports along with all correspondence with the local
watershed district, City, County, the Army Corp of Engineers, the Department of Natural
Resources and any other governmental agency having authority relating to wetland
issues, in Seller's possession or control, or in the possession or control of Seller's agents
or consultants.
Seller discloses to Buyer that neither they nor their consultants or agents are in possession
or control of any of the documentation set forth in this paragraph.
6.4 Copies of all easements, restrictions and other encumbrances or servitude's benefiting or
burdening the Property, in Seller's possession or control, or in the possession or control
of Seller's agents or consultants. Seller discloses to Buyer that any easements,
restrictions and other encumbrances or servitudes benefiting or burdening the Property
are recorded with the Johnson County Recorder and will be shown on the continued
Abstract of Title for the property. The parties are aware of a well, water line and septic
system on the Property. Seller is unsure whether there is a written, recorded easement(s)
for said well, water line and septic system. Buyer shall be responsible for the cost and
expense to vacate or remove any of said easements on the Property, if Buyer at its sole
discretion chooses to remove same. Buyer, at its sole discretion, may choose to cancel
this Agreement and not to remove such easements.
Buyer shall have until the later of (i) the Contingency Date, or thirty (30) days following Buyer's
receipt of the last of the above -described documents and information, to examine the same. If
Buyer in its sole discretion is dissatisfied with any of these documents, Buyer may cancel this
Agreement by written notice to Seller on or before the Contingency Date. hi such event, this
Agreement shall be null and void and Seller shall immediately sign a cancellation of Purchase
Agreement and authorize and instruct the Title Company to release to Buyer any and all Earnest
Money.
7. POSSESSION AND PHYSICAL INSPECTION.
7.1 Seller shall deliver possession of the Property to Buyer on the Date of Closing. Seller
shall deliver the Property, platted as a legal conforming lot. The subdivision or site plan
approval proceeding as well as all costs and expenses relating thereto in order to make
the Property as a platted, legal conforming lot shall all be the sole responsibility of Buyer.
7.2 Buyer may, at any time on and after the date hereof, with providing at least 48 hours'
notice, itself or by its officers, employees, agents, contractors or representatives, enter
upon the Property for the purpose of conducting thereon such soil or other investigations,
surveys, environmental audits, examinations or tests as Buyer may desire. Buyer shall
enter the Property subject to such reasonable rules as Seller may promulgate and Buyer
shall promptly restore any damage to or excavation of the Property. If Buyer in its sole
discretion is dissatisfied with the physical inspection of the Property, Buyer may cancel
this Agreement by written notice to Seller on or before the Contingency Date. In such
event, this Agreement shall be null and void and Seller shall immediately sign a
cancellation of Purchase Agreement and authorize and instruct the Title Company to
release to Buyer any and all Earnest Money.
4
DocuSign Envelope ID: 4FF9D1 DC-ADBF-4F34-849F-66E75636B770
Buyer will not suffer or permit any mechanic's liens to attach to or be filed against or
upon the Property or any part thereof by reason of any of the foregoing inspections, tests,
reviews or audits or site assessments and shall indemnify Seller for any costs they may
incur relating to any liens. Buyer shall be solely responsible for its employees and agents
in accessing the Property in the conduct of such tests and audits. Buyer shall indemnify
and hold Seller harmless from any damage or injury sustained by Buyer, its employees or
agents during its access upon and any testing carried out on the Property. Buyer shall
cause the Property to be returned to Seller in the same condition as existed prior to
Buyer's inspections, reasonable wear and tear excepted.
8. CONTINGENCIES TO BUYER'S OBLIGATIONS HEREUNDER. In addition to any other
contingencies set forth herein to Buyer's obligations hereunder, Buyer's obligations to perform
under this Agreement are further contingent upon the following:
8.1 Buyer obtaining all necessary approvals and commitments, to Buyer's satisfaction, of the
City, County and any other governmental agency relating to the intended development or
use by Buyer of the Property. Such approvals include, but are not limited to: site plan, tax
abatement or exemption, annexation, zoning, variances, preliminary/final plat,
conditional use or other permits, approval for signage and approval of grading, drainage
and utility plans.
8.2 Buyer's award and closing of federal low income housing tax credits and other grants and
loans from the Iowa Finance Authority and all other financing approvals and
commitments used to finance Buyer's development.
8.3 Buyer shall have received satisfactory confirmation that all utilities sufficient for Buyer's
intended development are or will be installed on or before the Closing at no additional
cost to Buyer. These utilities include, but are not limited to domestic water, sanitary
sewer, and all related connections together with electrical, natural gas, telephone and
cable television connections on or adjacent to the Property. Seller shall have no
responsibility whatsoever as to any cost or expense relating to the utilities described in
this subparagraph
8.4 Seller's performance of all of Seller's obligations as required hereunder.
8.5 Such inspections, reviews, surveys, examinations and environmental assessments of the
Property as Buyer deems necessary, with the results of each being satisfactory to Buyer
in its sole discretion.
8.6 There shall not have been any material adverse change in the condition of the Property or
any event which would materially affect Buyer's proposed use of the Property.
If Buyer in its sole discretion is not satisfied with any one or more of the foregoing
contingencies, Buyer may cancel this Agreement by written notice to Seller on or before the
Contingency Date. If such notice is provided by this date, this Agreement shall be null and void,
DocuSign Envelope ID: 4FF9DiDC-ADBF-4F34-849F-66E75636B770
Seller shall execute and deliver to Buyer a Cancellation of the Purchase Agreement and all
Earnest Money shall be promptly paid to Buyer.
9 DOCUMENTS TO BE DELIVERED ON DATE OF CLOSING. Subject to full, complete and
timely performance by Buyer of its obligations herein, Seller shall deliver the following documents
to Buyer on the Date of Closing:
9.1 An affidavit in the customary form by Seller indicating that on the Date of Closing there are
no outstanding unsatisfied judgments, tax liens, mechanic's liens, or bankruptcies against or
involving Seller, and there are no outstanding interests in the Property and non -foreign ownership
and that, if appropriate, there are no leases, maintenance agreements, or other agreements in force as
to the Property except as disclosed and that Seller knows of no unrecorded interests in the Property
of any kind, together with whatever standard owner's affidavit may be required by Buyer.
9.2 Warranty Deed duly executed and acknowledged by Seller including proper well and septic
system certification, if applicable.
9.3 Declaration of Value executed by Seller together with any state, county or local transfer taxes
attributable to the sale and transfer of the Property.
9.4 ISBA Groundwater Hazard Statement executed by Seller for the Property.
Seller agrees now and in the future to execute any further instruments, documents and agreements
reasonably necessary to assure Buyer has current and future marketable title to and the beneficial use
of the Property.
10. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller represents, warrants and
agrees now and as of the Date of Closing as follows:
10.1 That there are no agreements or understandings between it and any other parry that materially
affect the Property.
10.2 That Seller shall use its best efforts to cooperate and assist Buyer in obtaining such approvals,
permits or consents from applicable governmental agencies to facilitate and accomplish
Buyer's intended development, provided no such approved development or construction shall
begin on the Property until the closing has been completed. "Best effort" of Seller includes
meeting with local governmental officials, filing or joining where appropriate in petitions
requested by Buyer and necessary to accomplish Buyer's proposed development and use of
the Property, attending and speaking at public hearings and to take other steps which are
necessary to support Buyer's proposed development and use of the Property. However, Seller
shall not be obligated to incur costs in these efforts with the exception of the time required of
the Seller and its agents.
Notwithstanding the foregoing, the parties specifically agree that since Sellers reside in the
State of Colorado, any hearing or meeting at which their presence is requested by Buyer at a
time that Sellers are not otherwise in Iowa City, Iowa, shall be attended by an attorney from
the office of Anderson & Houghton, L.L.P., Iowa City, Iowa. The expense of said attorney
DocuSign Envelope ID: 4FF9D1DC-ADBF4F34-849F-66E75636B770
attending any such hearing or meeting shall be paid by Seller and such expense shall be
reimbursed to Seller by Buyer within 30 days of billing.
10.3 That the person(s) executing this Agreement on behalf of Seller has full authority to bind
Seller to this Agreement.
10.4 That there are no existing proceedings nor, to the best of Seller's knowledge, any threatened
proceedings against the Property or owners thereof, either administrative or judicial, on
account of any alleged violation of any laws, any rules, regulations or order, and that there is
no litigation or condemnation pending, nor to the best of Seller's knowledge, threatened,
which would affect the Property or the intended use thereof by Buyer. Seller knows of no
present or pending proceeding, which could cause special assessments against the Property
except as may be disclosed by the title commitment.
10.5 That Seller has or will have as of the Date of Closing, marketable title to the Property, subject
to beneficial easements and restrictive covenants of record, but free and clear of all liens,
claims, mortgages, charges rights of others and other encumbrances except as expressly
permitted hereunder.
10.6 Except as disclosed in the Title Commitment, there are no: (i) unrecorded agreements between
Seller and any third parties or governmental authorities which affect the Property. Seller
discloses that there is an oral month -to -month lease for the house located on the retained
property of Seller. Access to said house is obtained over the Property; (ii) variances or
special or conditional use permits with respect to the Property; (iii) unrecorded restrictions,
easements, licenses, rights, conditions, limitations or covenants specifically affecting the
Property which have been imposed upon the subject Property and/or the owner thereof by
any third party or governmental authority, whether imposed in connection with the platting,
subdivision, zoning, issuance of permits or certificates of occupancy or otherwise; or (iv)
underground or above ground storage tanks on the Property. Seller discloses that there is a
well on the subject Property and private sewage disposal systems on the Property.
10.7 By acquiring the Property, Buyer will not incur or be subjected to any liability for the
cleanup, removal or remediation of any hazardous substance or any liability, cost or expense
for the removal of any asbestos or underground storage tank from the Property which existed
prior to the Date of Closing. The term "hazardous substance" shall have the same meaning
and definition as set forth in Title 42 U.S.C. § 9601, et seq., and in any corresponding or
similar state statute or local ordinance, provided, however, that the term "hazardous
substance" as used herein shall also include "hazardous waste" as defined in 42 U.S.C. §
6903 and "petroleum" as defined in 42 U.S.C. §6991. The term "Superfund" as used herein
means the Comprehensive Environmental Response, Compensation and Liability Act, as
amended, being Title 42 U.S.C. § 9601, et seq., and any corresponding or similar state statute
or local ordinance applicable to the Property and all rules and regulations promulgated,
administered and enforced by any governmental agency or authority pursuant thereto. The
term "underground storage tank" as used herein shall have the same meaning and definition
as set forth in 42 U.S.C. §6991.
7
DocuSign Envelope ID: 4FF9D1 DC-ADBF-4F34-849F-66E75636B770
10.8 To the best of the Seller's knowledge, no representation or warranty of Seller and no document
or other information provided by Seller or Seller's agents to Buyer in connection with the
proposed purchase and sale of the Property contains or will contain any untrue, inaccurate or
misleading statement of a material fact or omits or will omit to state a material fact which
causes the statements contained therein, in light of the circumstances under which they were
made, to be misleading.
10.9 The subject Property shall be in substantially the same condition on the Date of Closing as on
the date hereof, except for normal wear and tear.
10.10 To the best of Seller's knowledge, no hazardous substance has been manufactured, refined,
stored, disposed of, produced, processed or installed on or in any part of the subject Property.
10.11 Seller has not been named a party in any proceeding or lawsuit for violation of federal, state
or local environmental laws.
10.12 The subject Property is not currently subject to investigation for alleged federal, state, county
or municipal environmental, pollution, health, fire, safety or building code violations.
10.13 The subject Property is not and will not at the Date of Closing be subject to any federal, state
or local superfund lien, proceeding, claim, liability or action, or the threat or likelihood
thereof, for the cleanup, removal or remediation of any hazardous substance from the subject
Property, and there will be no asbestos or underground storage tanks on the subject Property.
10.14 Seller acknowledges that Buyer is represented by a licensed Iowa and Minnesota real estate
broker, Leo M. Sand of Sand Companies, Inc. and Sand Property Management, LLC, who is
also one of the principals of the Buyer. Buyer also discloses that Jamie J. Thelen with Sand
Companies, Inc., who is also one of the principals of the Buyer is a licensed Minnesota real
estate agent and Nicole D. Sand with Sand Companies, Inc., who is also one of the principals
of the Buyer, is a licensed Iowa and Minnesota real estate agent.
10.15 Seller is represented by Jeff Edberg of Lepic-Kroeger Realtors and Buyer is represented by
Jeremy Tipton of NAI Iowa Realty Commercial. At closing, a 6% (six percent) commission
shall be paid out of Seller's proceeds at Closing and Shall be split equally between Lepic-
Kroeger Realtors and NAI Iowa Realty Commercial.
10.16 No representation or warranty of Seller and no document or other information provided by
Seller or Seller's agents to Buyer in connection with the proposed purchase and sale of the
Property contains or will contain any untrue, inaccurate or misleading statement of a material
fact or omits or will omit to state a material fact which causes the statements contained
therein, in light of the circumstances under which they were made, to be misleading.
10.17 Each of the representation and warranties herein contained shall constitute a material part of
the consideration hereunder and shall survive the Closing Date for two (2) years.
10.18 Other than the representations and warranties expressly stated in this Agreement, Seller makes
no other representations and/or warranties of any sort whatsoever. Buyer is relying entirely
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-849F-66E75636B770
on Buyer's own investigations and examinations as to the physical condition and every other
aspect of the Property. Buyer acknowledges that it has performed, or up until the
Contingency Date will perform, inspections of the Property, that any information provided or
made available or to be provided or made available to Buyer by Seller, its agents, members,
officers, directors, partners, representatives, or others, were provided or made available
solely as a courtesy, and that Buyer has the sole responsibility for determining the existence
or nonexistence of any fact material to Buyer's decision to purchase the Property. Buyer
acknowledges that Buyer is purchasing the Property on an "AS -IS, WHERE -IS" basis,
except as specifically represented and warranted in this Agreement, without any implied
warranties, and Buyer is completely at risk with respect to all attributes and conditions, latent
or otherwise, of the Property except as represented or warranted herein.
11. CONDEMNATION. The risk of loss from condemnation or threat thereof shall remain on Seller
until the Date of Closing. If all or any part of the Property is taken in condemnation proceedings
instituted under power of eminent domain or is conveyed in lieu thereof under threat of
condemnation at any time between the date of this Agreement and Closing, Buyer shall be entitled
upon written notice to Seller to terminate this Agreement, in which event this Agreement shall be
null and void, Seller shall execute and deliver to Buyer a Cancellation of the Purchase Agreement
and all Earnest Money, shall be promptly paid to Buyer. If Buyer does not terminate this
Agreement as provided above, then this Agreement shall remain in full force and effect, any and
all rights to the proceedings and the awards and compensation relating thereto shall be assigned to
Buyer.
12. MISCELLANEOUS.
12.1 Seller and Buyer do hereby acknowledge that time is of the essence of this Agreement.
This instrument shall not be effective until signed by and delivered to both Buyer and
Seller. This Agreement may be executed in counterparts and by different parties on
different counterparts with the same effect as if the signatures thereto were on the same
instrument. This Agreement shall be effective and binding upon all parties hereto when
all parties have executed a counterpart of this Agreement.
12.2 Except as otherwise specifically provided, whenever Buyer's or Seller's consent shall be
required herein, such approval or consent shall not be arbitrarily or unreasonably
conditioned, delayed or withheld and shall be deemed to have been given unless within
five (5) business days of the request, Buyer or Seller, as appropriate, notifies the
requesting party that Buyer or Seller, as appropriate, is denying such approval or consent,
stating in the notice the reasonable grounds therefore.
12.3 This Agreement shall be binding upon, the heirs, administrators, successors and assigns
of the parties hereto. No rights or remedy herein conferred on or reserved to Buyer or
Seller is intended to be exclusive of any other right or remedy herein or by law provided,
but each shall be cumulative in and in addition to every other right or remedy existing at
law, in equity or by statute, now or in the future.
12.4 This Agreement, and all of the rights and responsibilities of Buyer, pursuant to this
Agreement, is fully assignable by Buyer to any legal entity Buyer shall cause to be
9
DocuSign Envelope ID: 4FF9D1DC-ADBF4F34-849F-66E75636B770
organized with respect to the development of the Property; provided, however, Buyer
shall not be released from any of its obligations hereunder.
12.5 This Agreement shall be construed in accordance with the laws of the State of Iowa. Each
provision, section, sentence, clause, phrase, and word of this Agreement is intended to be
severable. If any provision, section, sentence, clause, phrase, and word hereof is illegal or
invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity
of the remainder of this Agreement.
12.6 Notwithstanding anything to the contrary herein, the terms and conditions of this
Agreement, together with any applicable warranties and representations contained herein
(each of such warranties and representations to be deemed related and to be true and
correct on the Date of Closing) shall survive the Date of Closing and not be merged by
Seller's execution or delivery of the Deed to Buyer, Buyer's acceptance of the Deed or
other document used in connection with the Closing of the sale, or the recording thereof.
12.7 If Buyer defaults under this Agreement, Seller shall have the right to terminate this
Agreement by giving written notice of such election to Buyer, which notice shall specify
the default. If Buyer fails to cure such default within thirty (30) days of the date of such
notice, Seller may as its sole and exclusive remedy, terminate this Agreement and retain
the Earnest Money and any interest accrued thereon. The termination of this Agreement
and retention of the Earnest Money shall be the sole remedy available to Seller for any
default by Buyer, and Buyer will not under any circumstances be liable for damages or
subject to an action for specific performance.
If Seller defaults under this Agreement, Buyer shall notify Seller by giving written notice
specifying the default. If Seller fails to cure such default within thirty (30) days of the
date of such notice, Buyer's remedies shall include without limitation, the right to: (i)
terminate this Agreement and receive a refund of the Earnest Money and any interest
accrued thereon, and/or (ii) pursue an action against Seller for specific performance of
this Agreement. In no event shall Buyer have the right to sue Seller for consequential or
punitive damages.
If either party fails to consent in writing to the return or payment of the Earnest Money,
either in connection with a default or a failed contingency, or if an action for specific
performance is commenced by Buyer, the prevailing party shall be entitled to obtain
judgment for costs and attorney's fees.
Seller hereby agrees to defend, indemnify and hold Buyer and its successors and assigns
harmless from and against any and all claims, liabilities, losses, damages, costs and
expenses, including without limitation, the cost of defense and attorneys' fees, relating to,
arising out of or due to a breach of any Seller representation or warranty set forth in this
Agreement or relating to, arising out of or due to Seller's ownership or operation of the
Property prior to Closing.
12.8 At Buyer's option, it may elect to effect a tax -deferred exchange in conformance with
Section 1031 of the IRS Code. Buyer may assign its rights in this Agreement to a
10
DocuSign Envelope ID: 4FF9D1 DC-ADBF-4F34-849F-66E75636B770
qualified intermediary for the purpose of effecting such exchange. Seller agrees to
cooperate and execute necessary documents to allow Buyer to effect such exchange,
provided such exchange does not cause Seller to incur any liability, does not require
Seller to take title to any other property, does not delay the closing and does not cause
Seller to incur any additional cost or expense. However, any warranties that may be
expressed in this Agreement shall remain in effect and be enforceable by and between the
parties to the Agreement as assigned.
12.9 All notices, demands and requests which may be given or served or which are required to
be given or served by either party to the other shall be in writing and shall be sent by (i)
United States mail, certified mail, return receipt requested, postage prepaid, or (ii) fax or
(iii) e-mail or (iv) a nationally recognized overnight carrier addressed as follows:
If to Seller: Lyle Mark Larson and Betsy Larson
22780 Hope Dale Avenue
Parker, CO 80138
Phone: (847) 858-3888
Email: larso=bjk@gmail.com
With a copy to: Anderson & Houghton, L.L.P.
Attention: Steven C. Anderson
568 Highway One West
Iowa City, IA 52246
Phone: (319) 351-8600
Fax: (319) 338-7627
Email: steve@iclaw.net
If to Buyer: IC Housing Group, LLC
Jamie J. Thelen
366 South 10't' Avenue
Waite Park, MN 56387
Phone: 320.202.3100
Email: JJThelen@SandCompanies.com
Notices, demand and requests by the Seller or Buyer in the manner aforesaid shall be
deemed sufficiently served or given for all purposes hereunder at the time of such notice,
demand or request shall be mailed, e-mailed or faxed. Either party may change the place
to which notice is to be sent by serving written notice thereof upon the other in
accordance with the terms hereof.
THIS AGREEMENT DRAFTED BY:
IC Housing Group, LLC
366 South 10' Avenue
Waite Park, MN 56387
320.202.3100
11
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-649F-66E75636B770
(Remaining Portion of Page Intentionally Left Blank— Signature Page to follow)
12
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-649F-66E75636B770
IN WITNESS WHEREOF, the parties hereto have executed this Agreement this 13 day of
August, 2018.
BUYER: IC HOUSING GROUP, LLC
I f?A
Secretary/Treasurer
(Remaining Portion of Page Intentionally Left Blank)
13
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-849F-66E75636B770
IN UTFNESS WHEREOF, the parties hereto have executed this Agreement this day of
August, 2018.
SELLER: LYLE MARK LARSON
DoeuSigned by:
ChA baylow 8/14/2018 1 12:13 PM CDT
By naanarane�na�n
Lyle Mark Larson
SELLER: BETSY LARSON
DacuSigned by:
tAysbvu 8/14/2018 1 11:02 AM CDT
By: �
Betsy Larson
(Remaining Portion of Page Intentionally Left Blank)
14
DocuSign Envelope ID: 4FF9D1 DC-ADl3F-4F34-849F-66E756366770
ACCEPTANCE OF EARNEST MONEY
The undersigned, Tri-County Abstract & Title Guaranty, hereby acknowledges receipt from Buyer the
sum of Ten Thousand and No/100 Dollars ($10,000.00) as Earnest Money and agrees to hold and
disburse the same in accordance with the terms and conditions of the Agreement set forth above in an
non -interest bearin¢ trust account.
TRI-COUNTY ABSTRACT & TITLE GUARANTY
By
Its: Coe -//I f'c I
Dated $— d �;- - i W
Sa41/Larson SAND Hoover PA 1.2.doc
15
DocuSign Envelope ID: 4FF9D1DC-ADBF4F34-849F-66E75636B770
Exhibit A
16
DS EL
DS
Exhibit IV
Iowa City, Iowa
Lincoln
SAVINGS BANK
November 14, 2017
IC Housing Group, LLC
Attn: Megan Sand Carr
366 South 10`h Ave
Waite Park, MN 56387
RE : Proposed Financing for the project known as NEX Apts in Iowa City
Dear Ms. Sand Carr:
Thank you for allowing Lincoln Savings Bank (LSB) the opportunity to propose financing for your
affordable housing project known as NEX, I am writing this letter to outline LSB's financing proposal.
Loan Amount: Total Construction Period Funding: $6,187,092
A- approximately $4,462,092 tax credit bridge loan
B- approximately $1,725,000 permanent loan (funded simultaneously with A)
Interest Rate: A- 5.25%variable at WSJ Prime + 1%
B- 5.32%for 17 years (based on FHLB DM Amortizing CIP Advance +2%).
Pricing will be fixed at the time of closing (up to 90 days prior) based on the
above index+ margin.
Maturity: A- 24 months, fully repaid by investor capital contributions
B-17 years
Payments: A- Monthly Interest
B- Monthly Interest for 24 months; converting to Principal and Interest after
Stabilization based on a 30 year amortization
Collateral: 1st Real Estate Mortgage on the subject property
Assignment of Leases and Rents
Assignment of Capital Contributions
Assignment of Managing Member's Interest
Guarantors: Sand Properties, Inc., Jamie Thelen, James Sand, Roger Gertken, and John
Belisle, during Construction and Stabilization only; Loans will be non -recourse
to the Borrower upon Stabilization.
Costs: Borrower would be responsible for all third -party closing costs.
Pre -Payment Penalty: The loan would a carry a Yield Maintenance Premium
Loan Fee: A-$42,000
B. $2,000
www.myLSB.com 1(800) 588-7551
Lincoln
SAVINGS BANK
Subject to: Tax credit allocation of approximately $6,200,000
Final review and approval of the finalized structure after allocation and
concurrent with the review leading up to admission of the Limited Partner
An appraisal indicating a value on the basis of restricted rents resulting in a
loan to value of less than 85%.
Senior collateral position on the property
The terms of this loan proposal expire on December 31, 2018.
Thank you for allowing me the opportunity to work with you on this request. Should you have any
questions, please call me at (515) 327-9905.
1 look forward to providing you financial services in the future for our mutual continued success.
Sincerely,
O l/ Ov-�
Daniel J Downs
Senior Vice President
Lincoln Saving Bank
Acceptance
I agree to the terms detailed in the loan proposal dated November 14, 2017 and authorize Lincoln
Savings Bank to proceed with loan approval and agree to reimburse the bank for all third party costs
even should the loan not be closed.
Accepted By:
IC Housing Group, LLC
By: IC Housing Part eCs, L , Managing Member
By: SO Associates, L C a aging Member
. Q
Thelen, Secretary/Treasurer
www.myLSB.com 1 (800) SS8-7551
wnc
November 16, 2017
Mr. Jamie Thelen
IC Housing Group, LLC
366 South Tenth Avenue
Waite Park, Minnesota 56387
Re: NEX
Iowa City, Iowa
Dear Mr. Thelen:
Thank you for giving us the opportunity to present this offer to provide equity financing for NEX. WNC
& Associates, Inc. has been investing in affordable housing for over 45 consecutive years and has capital
to invest in quality tax credit properties. We have acquired over $7.6 billion of real estate assets
representing more than 1,350 properties nationwide.
This Letter of Understanding is designed to address the basic business terms under which WNC, on behalf
of an affiliate (the "Investment Member") and WNC Housing, L.P., as the Special Member (the "SM"),
will acquire limited liability company interests in IC Housing Group, LLC (the "Project LLC') which owns
NEX. Based on the terms specified below, the Investment Member and the SM agree to make a capital
contribution payment to the Project LLC in the amount of $5,524,731 ("Capital Contribution") (includes
the SM's Capital Contribution) based on a price of $0.89 for each dollar of Tax Credits (based upon a
corporate tax rate of 25% commencing in 2018) allocated to the Investment Member over the Tax Credit
Period. The Capital Contribution will be payable in instalhnents based upon the schedule and conditions
set forth below:
1. $1,104,949 will be payable upon the Investment Member's admittance into the Partnership.
2. $4,143,546 will be payable upon the later of March 10, 2020 or the Investment Member's
receipt and approval of the following: (a) documents substantiating lien free construction
completion; (b) the issuance of a permanent certificate of occupancy; (c) payoff letter from
the contractor; and (d) insurance required during operations.
3. $251,236 will be payable upon the later of April 10, 2020 or the Investment Member's receipt
and approval of the following: (a) verification that all the conditions referenced above have
been met; (b) fully signed permanent mortgage documents; (c) verification the Project LLC
has maintained a debt service coverage of 1.15 for 90 consecutive days; (d) an updated title
insurance policy; (e) 100% tax credit qualified occupancy and 90% actual occupancy for 90
consecutive days; (1) construction cost certification; (g) an as -built survey; (h) tenant files to
determine that 100% of the tax credit apartment units in the Apartment Complex qualify
under Section 42 of the Internal Revenue Code; (i) a fully executed IRS Form 8609; O the
first year tax return in which Tax Credits are taken; and (k) a copy of the Project LLC's
property audited financial statement.
4. $25,000 will be payable upon the SM receipt and approval of initial tenant files.
714.662.5565 714.662 4412 F
27782Sky Park Circle, Irvine, California 92614
November 15, 2017
NEX
Page 2
Funds from the Capital Contribution payments through completion of construction will be used to pay
acquisition, hard and soft costs, including up to 20% of the cash portion of the development fee (subject to
underwriting). Funds will be held by WNC or the construction lender and disbursed to the Project Partnership
or the contractor upon the submission of draw requests.
A. ASSUMPTIONS
1. The Project LLC will own, or owns, a 36 unit, new apartment complex intended for use as
family housing in Iowa City, Iowa (the "Apartment Complex"). The Project LLC is duly formed under the
laws of the State of Minnesota and validly existing under the laws of the State of Minnesota and Iowa. The
Project LLC holds, or will hold, legal title to the Apartment Complex as evidenced by an Owners ALTA
Title Insurance Policy.
The managing member (the "Managing Member") and an acceptable guarantor (identified below)
shall have sufficient financial resources to meet the obligations required by the Investment LLC.
IC Housing Group, LLC
TBD
The Apartment Complex will be managed by a property management company (identified below)
that is experienced in managing tax credit properties.
• Sand Property Management, LLC
2. The Project LLC will obtain permanent mortgage financing from a qualified commercial
lender(s). Permanent mortgage loan(s) shall have a fixed interest rate and must be approved by the SM.
The Project LLC will maintain a debt service coverage of 1.15, excluding any "soft" debt that is payable
only from available cash flow based on an operating budget approved by the SM. The first mortgage loan
will be from Lincoln Savings Bank in the amount of $1,725,000 for a term of 17 years at an interest rate
equal to 5.32% and amortized over 360 months All of the permanent debt financing for the Project will be
nonrecourse to the Project LLC and its members. None of the permanent debt financing constitutes related
party debt. No financing secured in whole or in part by the property may be cross -collateralized or cross -
defaulted with any other financing. In addition, the permanent loan commitment or documents evidencing
the permanent loan must not require any ongoing debt coverage maintenance provisions.
We have utilized the above referenced loan terms in order to determine pricing. In the event that any of the
terms change prior to the Investment Partnership's admission into the Project Partnership, then an
adjustment in price may need to be made in order to ensure a consistent yield.
3. The housing tax credits, depreciation, operating profits, and losses shall be allocated
99.99% to the Investment Member and SM and 0.01% to the Managing Member. This allocation assumes
that the local state statutes allow for this structure.
4. The construction and rent -up schedule will be as follows:
Start Construction 3/1/2019
Complete Construction 3/l/2020
100% Qualified Occupancy 8/ l/2020
November 15, 2017
NEX
Page 3
5. The allocation of Tax Credits to the Apartment Complex, the Investment Member, and SM
shall be as follows:
(a) Total Tax Credits to Apartment $6,207,560
Complex during Tax Credit Period
(b) Total Tax Credits to Investment $6,206,939
Partnership and SLP during Tax
Credit Period (99.99%)
(c) Annual Tax Credits to Investment $258,622 for 2020
Partnership and SLP during Tax $620,694 for 2021 — 2029
Credit Period $362,071 for 2030
We have utilized this projected schedule in order to determine pricing. In the event that this schedule
changes prior to the Investment Member's admission into the Project LLC, then an adjustment in price may
need to be made in order to ensure a consistent yield.
6. During construction, the Project LLC shall obtain liability insurance and the Investment
Member shall be named as an additional insured. In addition, the Investment Member shall be named as
an additional insured on the contractor's builder's risk insurance and liability insurance. The contractor
shall also maintain workers' compensation. During operations, the Project LLC shall obtain liability
coverage, hazard coverage, business interruption coverage and worker's compensation (all insurance
collectively referred to as "insurance"). The Investment Member shall be a named insured on all the
insurance policies. All such insurance policies shall be purchased from a company rated A or better for
financial safety by A.M. Best or Standard & Poor's, and shall prohibit cancellation without at least a 30 day
prior written notice to the Investment Member. The Project LLC shall also carry an umbrella liability
insurance policy.
B. ADJUSTMENTS
1. The total Capital Contribution will be adjusted in the event that the total tax credits to the
Investment Member and the SM are different than the amount set forth above in Section A.5 (b) based upon
Form 8609. In this event the Investment Member's and the SM's capital contributions shall be adjusted so
that it equals $0.89 of the actual total tax credits allocated to the Investment Member and the SM during
the Tax Credit Period. Notwithstanding the foregoing, any increase in the Capital Contribution of the
Investment Member and the SM shall be subject to the following: (a) the Investment Member having funds
available to pay any such increase; (b) the price per credit will be the lesser of the actual price per credit
paid at the closing of the LLC Agreement or the current market price as determined by the Special Member;
and (c) in no event will the Investment Member's additional Capital Contribution exceed 5% of its
aggregate Capital Contribution.
2. In the event the tax credits received by the Investment Member and SM in 2020 and 2021
are less than the amount set forth in Section A.5(c) for these years, then the total Capital Contribution from
the Investment Member and SM shall be reduced by $0.79 of each dollar of tax credits below such amounts.
C. GUARANTEES AND RESERVES
November 15, 2017
NEX
Page 4
1. The Managing Member and an acceptable guarantor will guarantee: a) lien free completion
of construction at a fixed price amount in accordance with the plans and specifications and the construction
budget approved by the SM; (b) the lease -up of the property and ensure the Project LLC achieves three
consecutive months of 1.15 debt service coverage; (c) the conversion of all permanent mortgages
("Permanent Mortgage Commencement"); (d) funding of all required reserves; and (e) all covenants,
representations, and warranties of the Managing Member pursuant to the LLC Agreement. The Project
LLC shall bear the cost of the monthly construction inspections of the SM's third party engineer. The SM
will provide invoices to the Project LLC for payment and the Project LLC will reimburse the SM upon
completion of construction.
2. The Managing Member and acceptable guarantor will fund operating deficits ("Operating
Loans') for five years following the later of: (a) Permanent Mortgage Commencement or (b) The
achievement of three consecutive months of 1.15 debt service coverage (the "Operating Deficit Guarantee
Period"); provided however, the Operating Deficit Guarantee Period shall not expire unless the Apartment
Complex has achieved a 1.10 debt service coverage for the most recent period of 12 consecutive months
based on an audit. The guarantee is for a maximum cumulative amount equal to twelve months operating
expenses, including debt service and reserves. Such advances shall constitute interest -free loans repayable
out of fixture cash flow or sale or refinancing proceeds as described in Sections D and E below.
3. The Managing Member and an acceptable guarantor shall guarantee the annual Tax Credit
amount.
4. In the event of a recapture of Tax Credits, the Managing Member and an acceptable
guarantor will fund any loss of Tax Credit and associated costs that are incurred during the compliance
period.
5. In the event the development fee is not paid in full from loan proceeds and/or Capital
Contribution proceeds, then the unpaid portion of the development fee will be deferred, evidenced by a
development fee agreement and payable to the developer, or designee (the `Developer'). If on the 14'
anniversary of the placed -in-service date the deferred development fee has not been fully repaid, the
Managing Member and/or guarantor will be required to advance to the Project LLC, as a guarantee payment
an amount equal to the unpaid balance of the deferred development fee so that the deferred development
fee is repaid in full.
6. The Managing Member and the acceptable guarantor shall be obligated to repurchase the
LLC interests of the Investment Member and the SM in the Project LLC as more fully described in the LLC
Agreement.
7. The Managing Member and the acceptable guarantor hereby agree to indemnify and hold
harmless the Project LLC, the Investment Member, and the SM, and their respective partners, directors,
officers, employees, and agents from and against any and all liability directly or indirectly arising out of
the use, generation, manufacture, storage, or disposal of Hazardous Substance on, under or about the
November 15, 2017
NEX
Page 5
project. The foregoing indemnification obligation of the Managing Member and the acceptable guarantor
shall survive the termination of the compliance period.
8. The Managing Member shall cause the Project LLC to deposit into a rent up reserve
account an amount equivalent to four months of rental income. The rent up reserve will be released upon
3 consecutive months of stabilized operations.
9. The Project LLC will fund an operating deficit reserve account at closing in an amount
equal to six (6) months of operating expenses, debt service and reserves. This account is to be used
subsequent to the funding of all Operating Loans. Any unused portion of this reserve will be released to
the Project LLC upon the termination of the compliance period.
10. The Managing Member shall cause the Project LLC to deposit into a replacement and
reserve account an annual amount equal to a minimum of $400 per unit per year (to be funded in twelve
monthly installments) and escalated at 3% per year.
11. Intentionally Omitted [Project -Based Section 8 Re -tenanting Reserve]
D. FEES AND CASH FLOW
Fees and net cash flow (after payment of operating expenses, debt service and reserves) will be allocated
as follows:
1. To pay any Voluntary Funding made by the Investment Member;
2. To pay any unpaid tax credit adjusters;
3. To pay the Investment Member an annual Asset Management Fee equal to $3,600
increased by 3% per year, which shall accrue if not paid;
4. To pay the interest at 0% and then principal on the deferred development fee (as described
in Section C.5), if any;
5. To pay any Operating Loans made by the Managing Member (from 50% of the remaining
cash flow);
6. 90% of the remaining cash flow to pay the Managing Member Incentive Management Fee
and the Tax Credit Compliance Fee; and
7. The balance 99.98% to the Investment Member, 0.01% to the SM and 0.01% to the
Managing Member.
E. PROFITS, LOSSES, TAX CREDITS AND DISTRIBUTIONS
Profits, losses, and Tax Credits commencing with entry of the Investment Member and SM as the limited
members of the Project LLC shall be allocated 99.99% to the Investment Member and the SM and 0.01%
to the Managing Member. Proceeds upon sale or refinancing of the Apartment Complex shall be distributed
in the following sequence:
1. Retirement of mortgage debt (if applicable) and all expenses related to the transaction;
2. To pay any unpaid tax credit adjusters and any Voluntary Funding;
3. Payment of priority debts, Operating Loans, and reserves in accordance with state law; and
4. Thereafter 10% to the Investment Member and 90% to the Managing Member.
November 15, 2017
NEX
Page 6
F. FINANCIAL AND OTHER CONSIDERATIONS
1. By March I' of each calendar year, including during construction, the Managing Member
shall provide to the Investment Member a copy of the Project LLC's audited financial statement that shall
be issued by an accounting firm experienced in auditing Tax Credit properties and approved by the SM.
The cost of such audits shall be considered as a cost of operations for the Project LLC and shall be satisfied
out of cash flow.
2. By February 20' of each calendar year, the Managing Member will provide to the
Investment Member all information necessary for the preparation of the Investment Member's income tax
return. The Project will constitute "residential rental property" eligible for 27.5 year depreciation under the
Internal Revenue Code. In light of existing legislation the Project will elect bonus depreciation.
3. Prior to admission, the Project LLC, the Investment Member and/or the construction lender
will establish a procedure for the disbursement of construction funds.
4. Intentionally Omitted [P&P Bonds]
5. The Project Partnership shall be responsible for legal fees associated with the preparation
of the LLC Agreement and other related documents incorporating the terms of this Letter of
Understanding. Upon closing, the LLC will furnish an invoice for such costs, which shall be payable from
the first Capital Contribution. Additionally, in the event the Project LLC is closed by WNC prior to the
closing of the Investment LLC, the Managing Member will agree to additional commercially reasonable
modifications to the existing terms of the LLC Agreement at the time of closing if required by the investors
in the Investment LLC.
6. During rent -up, the Managing Member will send to the Investment Member: (a) copy of
the previous month's rent roll (through the last day of the month), (b) Tax Credit compliance certification
reports and tenant certifications, (c) worksheet with copies of all initial tenant files including completed
applications, completed questionnaires, documentation of third party verification of income and assets, and
executed lease agreements.
7. Within thirty days of the end of each quarter, the Managing Member will send to the
Investment Member a report on operations including (a) Tax Credit compliance report, (b) unaudited
income statement and balance sheet and (c) rent roll and schedule of reserves, as of the end of the previous
quarter. The Managing Member shall provide financial statements or trial balances in a consistent
electronic file format to WNC or its designee.
8. The Project LLC shall pay the SM a Due Diligence fee in the amount of $25,000 for
underwriting costs.
9. On or before November 1 of each calendar year, the Managing Member will send to the
Investment Member a copy of the following year's proposed operating budget Each such budget shall
contain an amount required for reserves and for payment of real estate taxes, insurance, debt service, and
other payments.
10. The Investment Member may provide voluntary loans or capital contributions ("Voluntary
Funding") to the Project LLC if it determines, in its sole discretion, that such funding would be of benefit
November 15, 2017
NEX
Page 7
to the Project LLC or the Apartment Complex. If such Voluntary Funding is provided in the form of a loan,
the terms of such loan shall be mutually satisfactory to the Managing Member and the Investment Member
and shall be evidenced by a written agreement.
G. DUE DILIGENCE REVIEW
1. Commencing upon the receipt in our offices of this executed Letter of Understanding and
terminating 45 days after the date WNC has received the documents listed in the Due Diligence Checklist
(provided by WNC's underwriting team) ("Project Documents"), WNC shall have the exclusive right to
acquire the interests in the Project Partnership. Accordingly, by executing this Letter of Understanding, you
agree on your own behalf and on behalf of any persons associated with or employed by you or the Project
LLC, not to disclose any of the terms or provisions in this letter to any other person or entity other than
those prospective parties having a direct and immediate need to review the information for the purpose of
evaluating and underwriting the transaction.
2. The acquisition of the Investment Member's interests in the Project LLC is subject to the
satisfactory review of the Project Documents by WNC's Underwriting Group, approval of the Project
Documents by WNC's Investment Committee and the admittance of the Investment Member into the
Project LLC through the execution of the LLC agreement for the Project LLC.
Again, thank you for considering WNC as your equity member for NEX. If this Letter of Understanding
meets with your approval, please execute and return via e-mail.
Very truly yours,
Dan Garrett
Vice President - Originations
ACCEPTED BY:
IC Housing Group, LLC
�;
C
Date: 11/16/2017
Housing Trust Fund
Johnsoof
n County
Board ofDirectors
Bob Dvorsky, President
State Senator, 370 District
Housing Trust Fund of Johnson County
322 East Second Street
Iowa City, IA 52240
Email: tacheribach@htfjc.org Website: ivww.htfj'c.olg
Office:319.358.0212 Fax:319.358.0053
Ellen FIabel, President Elect November 14, 2017
Cry ofGralville Jamie Thelen
Ron btavrias, Secretay SCI Associates, LLC
Private Citizen 366 South 10°i Ave
John Warren, Tmasarrr P O Box 727
Began KDV Waite Park, MN 56387-0727
Simon Andrew, Ciy of Iowa
RE: Iowa City Apartments Application and Award
City
Jerry Anthony, Unimrsity of
Dear Jamie:
Iowa, Urban & Regional Planning
Thank you for the application you submitted to the Housing Trust Fund of
Robert Brooks, Private Citizen
Johnson County (HTFJC) for the construction of 44, later amended to 32,
Molly Brown, Hills Bank &
affordable housing units in Iowa City. As you are aware, your application
Trwrt Company
request for funding was approved by the HTFJC Board of Directors at its
Bob Burns, Burns & Burns,
meeting on October 20, 2017, which will be the effective date of the agreement.
LC.
Listed below are the conditions of the award.
Crissy Canganelli, Shelter House
Maryann Dennis, Ex-o(/ieio
Iowa City Apartments Construction — Award is a loan for $325,000 to be used
The HousingFellmusbip
toward road and related infrastructure costs required for a newly -constructed
Kirsten Frey, Kennedy, Guise,
multi -family building on Herbert Hoover Highway, east of Eastbury Drive, in
Frey and Gebrer
Iowa City, as described in your application to HTFJC dated September 29, 2017.
Terms of the loan are a one percent loan for a 17-year term and amortized over
Steve Gordon, AMlVauagenent
35 years. Conditions of the award are that the annual household incomes of four
Steve Long, HBKEngineerin&
(4) of the tenants cannot exceed 30% AMI and twenty-eight (28) of the tenants
t t C
cannot exceed 80% AM] for the duration of the 30-year affordability period. The
award is contingent upon the funding sources and timelines described in your
Tracey ntulcahey, City OfNortli
application. Note that HTFJC will be utilizing only local match funding for the
Liberty
road and related infrastructure costs, and HTFJC will not process requests for
Phil O'Brien, Urban Acres Real
reimbursement for those costs until building construction costs equal to the
Estate
HTFJC award have been incurred and documented.
Scott Schroeder, rAtidllYestOne We look forward to working with you on this project, and we appreciate all your
Bank organization is attempting to do to promote safe and affordable housing in
Rod Sullivan, Jobnson County Johnson County.
Board ofSa0emisorr
Sind
Larry Nilson, Unhvrsity Heigbis i
CitlZen
Staff
Tracey Achenbach, Tracey Achettbaeh
Executive Director Executive Director
Casey Cooper,
Operations Coordinator
Housing Trust Fund
Johnsoof
n County
Board ofDirectors
Bob Dvorsky, President
State Senator, 370 District
Housing Trust Fund of Johnson County
322 East Second Street
Iowa City, IA 52240
Email: tacheribach@htfjc.org Website: ivww.htfj'c.olg
Office:319.358.0212 Fax:319.358.0053
Ellen FIabel, President Elect November 14, 2017
Cry ofGralville Jamie Thelen
Ron btavrias, Secretay SCI Associates, LLC
Private Citizen 366 South 10°i Ave
John Warren, Tmasarrr P O Box 727
Began KDV Waite Park, MN 56387-0727
Simon Andrew, Ciy of Iowa
RE: Iowa City Apartments Application and Award
City
Jerry Anthony, Unimrsity of
Dear Jamie:
Iowa, Urban & Regional Planning
Thank you for the application you submitted to the Housing Trust Fund of
Robert Brooks, Private Citizen
Johnson County (HTFJC) for the construction of 44, later amended to 32,
Molly Brown, Hills Bank &
affordable housing units in Iowa City. As you are aware, your application
Trwrt Company
request for funding was approved by the HTFJC Board of Directors at its
Bob Burns, Burns & Burns,
meeting on October 20, 2017, which will be the effective date of the agreement.
LC.
Listed below are the conditions of the award.
Crissy Canganelli, Shelter House
Maryann Dennis, Ex-o(/ieio
Iowa City Apartments Construction — Award is a loan for $325,000 to be used
The HousingFellmusbip
toward road and related infrastructure costs required for a newly -constructed
Kirsten Frey, Kennedy, Guise,
multi -family building on Herbert Hoover Highway, east of Eastbury Drive, in
Frey and Gebrer
Iowa City, as described in your application to HTFJC dated September 29, 2017.
Terms of the loan are a one percent loan for a 17-year term and amortized over
Steve Gordon, AMlVauagenent
35 years. Conditions of the award are that the annual household incomes of four
Steve Long, HBKEngineerin&
(4) of the tenants cannot exceed 30% AMI and twenty-eight (28) of the tenants
t t C
cannot exceed 80% AM] for the duration of the 30-year affordability period. The
award is contingent upon the funding sources and timelines described in your
Tracey ntulcahey, City OfNortli
application. Note that HTFJC will be utilizing only local match funding for the
Liberty
road and related infrastructure costs, and HTFJC will not process requests for
Phil O'Brien, Urban Acres Real
reimbursement for those costs until building construction costs equal to the
Estate
HTFJC award have been incurred and documented.
Scott Schroeder, rAtidllYestOne We look forward to working with you on this project, and we appreciate all your
Bank organization is attempting to do to promote safe and affordable housing in
Rod Sullivan, Jobnson County Johnson County.
Board ofSa0emisorr
Sind
Larry Nilson, Unhvrsity Heigbis i
CitlZen
Staff
Tracey Achenbach, Tracey Achettbaeh
Executive Director Executive Director
Casey Cooper,
Operations Coordinator
IC Housing Partners, LLC
366 South ao'6 Avenue, PO Box 727
Waite Park, MN56387
November 15, 2017
Iowa Finance Authority
Multifamily Lending
2015 Grand Avenue
Iles Moines, IA 50312
Re: Owner Cash Contribution
To Whom It May Concern:
The members of IC Mousing Partners, LLC hereby commits to make an unconditional cash contribution In
the amount of $ 284,000.00 to the project as a source of Funds, to meet the CAP Leverage jland
and/or Cash Contribution) per Section 6.4.7.1 of the 2018 9% OAP. This Is 3.5% of the total project costs
for Nex.
In addition, the members, will make an additional $100 cash contribution to meet the OAP requirement
for $100 minimum contribution per Section 43.1 of the 2018 9%CLAP. The total contribution made by
the members will be $ 284,100.00
IC Mousing Group, LLC, a Minnesota limited liability company
By: IC Housing Partners, LLC, a Minnesota limited liability company
Its: Managing Member
By: SCI Associates, LLC, a Minnesota limited liability company
Its: Managing Memb IC slog Partners, LLC
en, Secretary/Treasurer
By: Belisle Development, LLC, a Minnesota limited liability company
Its: Member of IC Housing Partners, LLC
ohn E. Belisle, Chief Manager
St. Michael Development Group, LLC
366 South 10th Avenue, PO Box 727
Waite Park, MN 56387
September 11, 2018
Iowa Finance Authority
Multifamily Lending
2015 Grand Avenue
Des Moines, IA 50312
Re: Deferred Developer Fee
To Whom It May Concern:
The developers of NEX commit to unconditionally defer $42,221 in developer fee as a source of funds
for the project. The developers and owner, IC Housing Group, LLC, will work together to look at other
funding options to potentially replace or reduce the deferred developer fee.
St. Michael DeveloRment.Group, LLC
Jamie J. Thelen, Secretary/Treasurer
Exhibit V
Iowa City, Iowa
GROSS POTENTIAL RENT
TOTAL GROSS POTENTIAL RENT
RENTAL LOSS
TOTAL VACANCY LOSS
TOTAL NET REVENUES
GENERAL & AOMIN ISTRATE EXPENSES
TOTAL G & A EXPENSES
REPAIRS & MAINTENANCE EXPENSES
TOTAL & M EXPENSES
UTILITIES
TOTALUTILITIES
OTHER OPERATING EXPENSES (Real EAafe Tares, Insurance)
TOTAL OTHER OPERAU NG EXPENSE
TOTALEXPENSES
Total Expenses Per Unit
NET OPERATING INCOME
Nex Apartments
Iowa City, Iowa
15 Year Proforma
September 11, 2019
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Year 2020 2022 2022 2023 20M 2025 2026 2027 20M 2029 20M 2032 2032 2033 20M
391,008 398,828 QEQW5 414,941 423,240 431,704 4 ,339 449,145 458,128 467,291 476,637 486,169 495,893 505,811 515,927
27,371
27,918
28,476
29,046
29,627
30,219
30,824
31,4
32,069
32,710
33,365
34,032
34,712
35,407
36,115
363,637
370,920
378,328
385,895
39%613
WIA85
409,515
427,705
@6,m
434,580
443,272
452,237
461,180
470,404
4T9,812
62,200
63,816
65,475
61,180
68,930
74727
72,573
14,468
76,415
78,415
M469
82,578
84,744
86,970
89,m
30,4U0
31,312
32,251
33,219
34,215
35,242
36,2%
31,388
38,510
39,665
4Q855
42,081
43,343
44,643
45,983
44,000
45,320
46,680
48,080
49,522
51,008
52,538
54,114
55,738
57,410
59,132
W,%6
62,733
64,615
66,554
56,208
57,894
59,631
61,420
63,263
65,160
67,115
69,129
71,203
73,339
J ,539
77,805
80,139
82,543
85,020
I%,"
198,342
204,U38
209,899
215,930
222,137
24526
235,100
2A1,666
2A8,829
255,995
26%370
270,960
278,T 2
286,812
5,356
5,510
5,60
5,831
5,998
6,170
6,348
6,531
6,218
6,912
2,111
2,316
2,527
2,244
2,962
270,829
172,568
174,291
175,996
1] ,683
1)9,348
180,989
182,605
1a4,1M
185,752
M,2T
188,768
190,220
292,02
193,000
NOTE: FOR DISCUSSION PURPOSES ONLY. THESE PROJECTIONS ARE BASED ON ESTIMATES. ACTUAL RESULTS MAY DIFFER OR MAYBE AFFECTED BY FUTURE