Fort Walton Beach Council agenda — 09-13-11 regular — reading text

Cyn,bie Taylor Packet Pg. 149 yura« ee. nw mnr: w ue- tv- mtt t ra 14. i. a aara. U. S eepartranot or Housing and Urban Development 41 Jdakwo Ik Ficid OtHcc churl. am. on Fnimal aullding 400 Weft any Shcct dew xte n' JUN 2. 9 2011. Ixksonvlsle, Florida 312014439 Ms. Susan Hall Berkadla Commercial Mortgage LLC 33 Inverness Center Parkway, Suite 140 Birmingham, AL 35242 Dear Ms. Hall: SUBJECT: MAP Invitation Letter Sound Side Apartments Project No. 063- 35325 -PM Section 221( d)( 4), New Construction 200 units Fort Walton Beach, Okaloosa County, Florida The Jacksonville Office staff has reviewed the MAP Preappiicatlon Exhibits for the subject proposal, and It Is our pleasure to extend to you an Invitation to submit an application for firm commitment for mortgage Insurance. The review of the limited appraisal and market study Indicates sufficient demand exists for the given number of units at this time. Final site acceptability will be determined at the firm review stage subject to the environmental conditions outlined herein. In the event you desire to continue with this project and submit an application for Finn Commitment, it is understood the project will have the following characteristics: Nine Buildings constructed In either a 3-Story Walk -up or 4 -story elevator type building. Amenities will include a fitness area, community room and swimming pool. The composition and rent structure are as follows: Monthly Rent p99 1 - BR, 1 BA 770 sq.ft. ( Section 8) 17 729 1 - BR, BA 770 sq.ft.(60 %a/ BO % AMI) 24 614 123 1- BR, 1BA 770sq.ft.(80 % AMI) 27 759 123 2 -BR, 2 BA 1, 158 sq. ft. ( Section 8) 18 820 2 -BR,2 BA 1, 158 sq. ft. (60 % 180 % d AMI) 25 737 148 2 -SR,2 BA 1, 158 sq. ft. (80% AMI) 29 1, 032 148 3- SR,2 BA 1, 384 sq. ft. ( Section 8) 12 1, 259 3 -BR,2 BA 1, 384 sq. ft. ( 60 %/ 80% AMI) 17 828 194 3-BR,2 BA 1, 384 sq. ft. (80 % AMI) 19 1, 169 194 4- BR,2 BA 1, 577 sq.ft. (Section 8) 3 1, 272 4- BR, 2 BA 1, 577 sq.ft. ( 60 %d / 80% AMI) 4 898 244 4- BR, 2 SA 1, 577 sq. ft. ( 80% AMI) 5 1, 276 244 1R/D4 mission G m create shong, sustainable, inclusion commanldes and gaalby, of7ordablO hOmOdfbr aiL www. bud. gov espenal. hud. gav Packet Pg. 150 euw UtlOOY M1uu IO. IC. VI VO- < Y - lVll [ 1- 14 Monthly Rents were reduced to reflect Maximum Seaton 8 FMR. Equipment and services Included in the rent include: range, oven, microwave, refrigerator, carpet, drapes/ blinds, air conditioning equipment, disposal, dishwasher, laundry hook -up and trash removal. Number of Parking Spaces: 407 open spaces Other Income: $ 7. 000 or ($35.00 per unit per month) Underwriting Occupancy: 93% Operating Expense estimate: $ 4. 700 Per unit Per annum ( RFR Included The total for all improvements appears to he within a reasonable range for this stage of processing. Attached is the current wage decision for this area. If there are any questions Please contact Jennifer DuPont, Labor Relations, at 303 -872 -5489 for any updates while preparing the application for firm commitment. Special Conditions to be incomorated Into a Firm Application submission: 1. Revision of the rent structure Is outlined above. The rents must be re-evaluated at the firm review stage to assure "affordability' of the project. (See # 14) 2. An adequate Initial Operating Deficit In anticipation of a 14 -month absorption period shall be required. 3. Project must comply with environmental conditions regarding Asbestos Removal and Lead Based Paint requirements. 4. Development Team should reconcile construction costs prior to submission of the firm application. 6. Use appropriate construction materials for substrate of exterior walls. 6. Submit complete and acceptable plans and specifications. 7. Submit evidence that the Housing Authority has the funds necessary to pay for the demolition. 8. Submit cost data for demolition that will be subject to approval by HUD's construction analyst. 9. Submit evidence that the Housing Authority Is In satisfactory standing and compliance with all requirements of HUD' s Office of Public Housing. 10. The third party architecture] reviewer must verify at firm application stage that the project complies with all requirements of the Section 504. Packet Pg. 151  4. i. a ry "ua eer nw ie: loos vo - r -ran , a 1 11. The cost of Builder' s Risk Insurance must be Included In Contractors General Requirements or HUD -92204, Line 55, Insurance. Do not Include in Other Fees. 12. In as much as possible, Include measures which will provide a buffer and /or screening between the apartment buildings and the adjacent single family neighbodtood and church property as requested by the West Florida Regional Planning Council. 13. The proposed market value of the land, $ 3, D00, 000, must be supported and re- evaluated at the firm application stage. 14. In accordance with HUD' s Risk Mitigation Notice 2010 -11, the project must meet the definition of "affordable" by having a recorded regulatory agreement in effect for at least 15 years after final endorsement and have at least 40% of the units restricted to tenants earning 00% of Area Median Income. Land value will be determined at the Firm Commitment stage. Excess costs resulting from any unusual site conditions Identified in the construction cost estimate at the Firm Commitment stage will be deducted from the fully improved value. The HUD environmental assessment and HUD previous participation ( Form HUD -2530) will not be completed until the Finn Commitment package is submitted to HUD. It Is Important to understand this letter is not to be construed as a commitment on the part of HUD /FHA to Insure a mortgage for this proposal. It Is Intended only to establish the general agreement on the basic concept, market, rents and expenses for this proposal. If the Firm Commitment application submitted Is consistent with the terms outlined in this letter, does not trigger thresholds for a more extensive review and no problems arise because of environmental or previous participation issues, HUD should be able to complete its review within the scheduled time. If there are significant changes from the concept agreed to at the pre -application submission, HUD will need more time and the result could be rejection of the Firm Commitment application. Significant changes would include changes in: a. Location, b. Building type, c. Market to be served, d. Rents, expenses, unit number, unit mix or gross project area great enough to affect market potential ( i. e. 5 percent and /or require a new market study and HUD review). Therefore, you are Invited to submit a Firm Commitment application for mortgage insurance, along with a fee of $3 per thousand of the mortgage amount, with the required MAP Lender deliverables, by not more than 120 days from the date of this letter. The term of this invitation may be extended for three 30-day periods, 9 more time Is required and good cause can be demonstrated. However, under no circumstances will this letter be extended more than 00 days beyond its original expiration date. Packet Pg. 152  14. i. a W423II60Y HUD m:, n: n ue - ev - eon 4, 4 You must advise HUD within 30 calendar days of the date of the letter of invitation whether or not you accept the terms outlined herein and plan to submit an application for the subject project. Failure to notify HUD within the required time frame will result in expiration of the invitation letter. If we can be of further